title: St. Louis County Man Sentenced to 15 Years in Prison for Selling Fake Pain Pills Containing Fentanyl

body_text: ST. LOUIS – U.S. District Judge John A. Ross on Thursday sentenced a man to 15 years in prison for selling the fake prescription pain pills containing fentanyl that killed a St. Charles County man last year. Andrew Kendall Edwards, 27, of St. Louis County, pleaded guilty in May to one count of distribution of fentanyl and one count of possession with the intent to distribute fentanyl. He admitted selling the pills containing fentanyl that killed the victim on Aug. 28, 2022. After the man was discovered dead, investigators from the St. Charles County Police Department and the St. Charles County Regional Drug Task Force found four tablets in his bedroom. Two were imitation oxycodone tablets that contained fentanyl. Investigators also found text messages between the victim and Edwards. They then used the victim’s phone, posing as the victim, to arrange the purchase of more drugs from Edwards. On Aug. 30, 2022, Edwards was arrested at the planned meeting spot with the tablets that he’d agreed to sell. He also had a Glock .40 caliber pistol and two more tablets in a bag inside the nearby building where he worked. Some of the tablets seized at Edwards’ arrest were imitation oxycodone tablets that contained fentanyl. Edwards then admitted in an interview with St. Charles County Regional Drug Task Force and Drug Enforcement Administration investigators that he’d sold purported prescription tablets to the victim, who was also his friend and coworker, at least ten times, including the day before his death. In a letter to Judge Ross, the victim’s mother wrote that her son had just started a new job and was on the road to recovery. His “life was changing, he just needed more time,” she wrote. She said her son knew the risks of fentanyl, and knew it could kill him, but was reassured by Edwards in a text message that the pills were real. The victim left behind a son, who was almost two years old at the time of the victim’s death. "The callous disregard drug traffickers have for human life is obvious when you hear about cases like this one," said Assistant Special Agent in Charge Colin Dickey, lead of Drug Enforcement Administration investigations in Eastern Missouri. "For a few dollars, this man's action took a life, someone who mattered to his family and friends. DEA’s efforts on overdose death investigations with partner agencies like the St. Charles County Regional Drug Task Force reminds drug dealers that their conduct has penalties, which include plenty of time in prison to think about the impact of their actions.” The case was investigated by St. Charles County Regional Drug Task Force and the Drug Enforcement Administration. Special Assistant U.S. Attorney Samantha Reitz prosecuted the case.


title: Illegal gun possession sends Great Falls felon arrested after standoff to prison

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

body_text: GREAT FALLS — A Great Falls felon who admitted to illegally possessing two firearms at his business following a standoff with law enforcement was sentenced today to 32 months in prison, to be followed by three years of supervised release, U.S. Attorney Jesse Laslovich said. Stephen Jeffrey Vogel, 35, pleaded guilty in May to prohibited person in possession of firearms. Chief U.S. District Judge Brian M. Morris presided. The government alleged in court documents that on Dec. 11, 2022, law enforcement attempted to conduct a welfare check on a woman, identified as Jane Doe, at a gas station near a business she shared with Vogel after receiving a report that Doe may have been assaulted and was attempting to hide. Officers arrived just after Doe left the gas station and crashed a vehicle in front of the business. Vogel was present but ignored commands from officers and locked himself inside the shared business. Doe, who had an injury on her forehead, reported that Vogel had threatened her with a firearm and assaulted her. Great Falls Police Department officers then engaged in a nearly three-hour standoff with Vogel before he peacefully surrendered. In a search of the business, officers located a loaded 9 mm semi-automatic pistol and a 12-gauge shotgun hidden above ceiling tiles. A review of Vogel’s jail calls confirmed he hid the firearms knowing law enforcement would seize them if discovered. Vogel was prohibited from possessing firearms because of a 2013 felony conviction. An assistant U.S. attorney prosecuted the case. The Bureau of Alcohol, Tobacco, Firearms and Explosives, Great Falls Police Department and Cascade County Sheriff’s Office conducted the investigation. 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. XXX


title: 13 Charged in St. Louis Drug Conspiracy

component: Drug Enforcement Administration (DEA)

body_text: ST. LOUIS – Thirteen people accused of involvement in a conspiracy to sell drugs including fentanyl and methamphetamine in the St. Louis area were arrested this week. The final defendant was arrested Thursday in Miami. The final St. Louis defendants pleaded not guilty to their charges Wednesday in U.S. District Court in St. Louis. Others were arrested in Texas and California. Stanley Harris, 49; Christopher Sosa, 31, of Los Angeles; Victor Medina, 41, of Los Angeles; Alvieno Johnson, 40; and Versail Freeman, 39; were indicted August 30 on one count of conspiracy to distribute and possess with the intent to distribute 50 grams of more of methamphetamine and 400 grams or more of fentanyl. Sosa; Neil Phifer, 38; Latasha Spellman, 34; Robert Smith, 64; Gary Pulcher, 71; Demetrius Gilmore, 37; Portia Everett, 35; and Michael Williams, 28; were indicted on one count of conspiracy to distribute and possess with the intent to distribute methamphetamine and fentanyl. Williams also faces a methamphetamine and fentanyl possession charge and Medina faces a fentanyl distribution charge. Everett is accused in the indictment of conspiracy to maintain drug-involved premises, namely a home in the 900 block of Rutger Street in St. Louis and a house in the 1100 block of Carraway Court in Collinsville. During the course of the investigation, a total of $111,685 in cash, seven handguns, and two vehicles were seized, the indictment says. A motion seeking to have Phifer and Spellman held in jail until trial says more than 25 kilograms of methamphetamine and 15 kilograms of fentanyl are directly attributable to the overall drug trafficking organization. Phifer and Spellman partnered with each other to import drugs and distribute them to others in St. Louis, the motion says. Investigators conducted several controlled purchases of multiple ounces of fentanyl which involved both people, and repeatedly seized drugs from where Phifer and Spellman were operating, the motion says. Investigators intercepted one package that had been mailed containing 4.5 kilograms of crystal methamphetamine. A detention motion for Sosa says investigators intercepted numerous drug parcels mailed by Sosa to distributors in St. Louis, and used an intermediary to buy about 15 pounds of crystal methamphetamine from Sosa. Marco Chavira, 35, of El Paso, Texas, was indicted separately with two counts: distributing and attempting to distribute in excess of 50 grams of methamphetamine and 500 grams or more of cocaine. A detention motion says investigators bought a kilogram of cocaine and 1.4 kilograms of methamphetamine from Chavira. Charges set forth in an indictment or a criminal complaint are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty. The Drug Enforcement Administration, the U.S. Postal Inspection Service, the FBI and the U.S. Marshals Service are investigating the case with assistance from officers with the North County Police Cooperative and police departments in St. Louis, St. Louis County, Shrewsbury, Ballwin and St. Charles City. Assistant U.S. Attorney Stephen Casey is prosecuting the case.


title: West Sacramento Man Indicted for Distributing Fentanyl and Being a Felon in Possession of a Gun

component: USAO - California, Eastern

body_text: SACRAMENTO, Calif. — A federal grand jury returned an eight-count indictment today against Kamaal Yusuf, 22, of West Sacramento, charging him with conspiracy to distribute and possession with intent to distribute 400 grams of fentanyl, distribution of fentanyl, possession with intent to distribute 400 grams of fentanyl, being a felon in possession of a firearm, and possession of an unregistered short-barrel rifle, U.S. Attorney Phillip A. Talbert announced. According to court documents, in May 2022 Yusuf was conspiring to distribute 400 grams of fentanyl in El Dorado, Sacramento, and Yolo Counties. On three occasions, twice in Sacramento County and once in Yolo County, he distributed fentanyl pills. Yusuf also possessed another 400 grams of fentanyl in Yolo County. Yusuf, who is a previously convicted felon, is also charged with illegally possessing a Glock handgun and an unregistered short-barreled rifle. This case is the product of an investigation by the West El Dorado Narcotics Enforcement Team, the El Dorado County District Attorney’s Office, the Yolo County District Attorney’s Office, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and Homeland Security Investigations. Special Assistant U.S. Attorney Matthew De Moura is prosecuting the case. If convicted, Yusuf faces a mandatory minimum of 10 years in prison, a maximum penalty of up to life in prison and a $10 million fine for conspiracy to distribute fentanyl; a maximum of 20 years in prison and a $1 million fine for distribution of fentanyl; and 10 years in prison and a $250,000 fine for the counts of being a felon in possession of a firearm and possession of an unregistered short-barrel rifle. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt. 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 U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.


title: Former Montana Department of Public Health and Human Services employee admits stealing money from federal aid programs

component: USAO - Montana

body_text: MISSOULA — A former employee with the Montana Department of Public Health and Human Services (DPHHS) in Butte admitted today to stealing federal funding for assistance programs by submitting false information on applications, U.S. Attorney Jesse Laslovich said. Heather Marie Bugni, 34, of Butte, pleaded guilty to theft of government money, property or records. Bugni faces a maximum of 10 years imprisonment, a $250,000 fine and three years of supervised release. U.S. Magistrate Judge Kathleen L. DeSoto presided. Sentencing was set for Feb. 1, 2024 before U.S. District Judge Dana L. Christensen. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Bugni was released pending further proceedings. In court documents, the government alleged that Bugni was employed by the Montana Department of Public Health and Human Services as a client services coordinator from October 2015 to July 2021. Bugni processed applications, conducted interviews and approved benefits for multiple public assistance programs, including the federal programs Medicaid, which is medical assistance for low-income persons, and the Supplemental Nutrition Assistance Program (SNAP), which is a nutrition assistance program for low-income individuals and families. The government further alleged that Bugni approved applications, entered false information and incorrect wage information that resulted in her boyfriend’s mother receiving $13,869 in Medicaid benefits and $848 in SNAP benefits and her boyfriend’s father receiving $63,303 in Medicaid benefits. Bugni also applied for SNAP benefits on behalf of her daughter and filled out the application posing as her boyfriend. Bugni intentionally provided an incorrect address for them and later called DPHHS, posing as the boyfriend’s mother, and verified the incorrect address. Bugni knew that if she had provided the correct address, her own income would have made her daughter and boyfriend ineligible for SNAP benefits. Bugni received $11,309 in SNAP benefits from this conduct. Assistant U.S. Attorney Michael A. Kakuk is prosecuting the case. The U.S Department of Health and Human Services Office of Inspector General conducted the investigation. XXX


title: Vallejo Man Indicted for Assaulting Federal Agents with a Firearm and Being a Felon in Possession of a Firearm and Ammunition

body_text: SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment today against Sean Thomas Delapp, 37, of Vallejo, charging him with assaulting federal officers with a deadly weapon and being a felon in possession of a firearm and ammunition, U.S. Attorney Phillip A. Talbert announced. According to court documents, Delapp assaulted two FBI special agents by chasing them with his car, pulling up alongside them, and aiming a firearm at them through the window, making a recoil motion with the firearm. A subsequent search warrant at his residence resulted in the discovery of a Glock 29 firearm, ammunition, and various firearm parts. Delapp is prohibited from possessing firearms or ammunition because he was previously convicted of a felony evasion offense. This case was the product of an investigation by the Federal Bureau of Investigation, the California Highway Patrol, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Adrian T. Kinsella is prosecuting the case. If convicted, Delapp faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt. 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 U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.


title: Federal Government Takes Title and Ownership of An Oakland Park House Used to Store and Distribute Drugs

component: USAO - Florida, Southern

body_text: MIAMI – On September 20, 2023, U.S. District Judge William P. Dimitrouleas, in Fort Lauderdale, issued a Final Order of Forfeiture, which vested all right, title, interest, ownership, and possession of an Oakland Park house to the U.S. Government. The U.S. Government was able to forfeit the Oakland Park residence after law enforcement executed a federal search warrant at the house. At the time of the federal search warrant, defendant Daniel Joe Williams, a/k/a “Daniel Williams,” was living at, as well as using the house to store and distribute drugs. During the execution of the search warrant, law enforcement found various amounts of powder and crack cocaine, scales, a firearm, and ammunition, all of which were further evidence that the house was being used to facilitate the drug crimes. Williams pled guilty to possession with intent to distribute cocaine and possession of a firearm in furtherance of a drug trafficking crime. Williams has multiple past felony convictions for distributing drugs. Following Williams’ guilty plea, and after providing notice to the public and the homeowner, the U.S. Government sought and obtained a Final Order of Forfeiture, which vested all right, title, and interest in the house to the U.S. Government. Markenzy Lapointe, U.S. Attorney for the Southern District of Florida, and Christopher A. Robinson, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), made the announcement. The ATF Miami Field Office investigated the case. Assistant U.S. Attorney Deric Zacca prosecuted the criminal case, and Assistant U.S. Attorney Mitchell Evan Hyman and Assistant U.S. Attorney Emily R. Stone handled forfeiture. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 23-cr-60008. ###


title: Philip George Turner Sentenced To 17 Years For Distribution And Possession Of Child Pornography And Felon In Possession Of A Firearm

body_text: KNOXVILLE, Tenn. – On September 21, 2023, Philip George Turner, 39, currently of Kingston, TN, was sentenced to 204 months by the Honorable Katherine A. Crytzer, United States District Judge, in the United States District Court for the Eastern District of Tennessee at Knoxville. As part of the plea agreement filed with the court, Turner waived an indictment by a Federal Grand Jury and agreed to plead guilty to an information charging him with, one count of distribution of child pornography in violation of 18 U.S.C. § 2252A(a)(1)(2); one count of possession of child pornography in violation of 18 U.S.C. § 2252A(a)(5)(B); and, one count of felon in possession of a firearm and ammunition in violation of 18 U.S.C. § 922(g)(1). Following his incarceration, Turner will be on supervised release for 20 years and will be required to register with state sex offender registries and to comply with special sex offender conditions. According to court records, in May 2022, local law enforcement received a tip from an out of state undercover officer that Turner was distributing child pornography on an Internet site. The Federal Bureau of Investigation (FBI) became involved as the FBI was also investigating a Cybertip that asserted Turner uploaded 120 files of child pornography containing still images and videos. As the investigation progressed, law enforcement learned that Turner was on parole for convictions from Illinois. In June 2022, law enforcement went to Turner’s home with a search warrant. Upon entering, multiple firearms were seen lying about the residence to which Turner admitted he was going to attempt to sell. The seizure yielded five pistols and ammunition, and child pornography. U.S. Attorney Francis M. Hamilton III of the Eastern District of Tennessee; Special Agent in Charge, Joseph E. Carrico, of the FBI; and Special Agent in Charge, Marcus Watson of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) made the announcement. The criminal information was the result of an investigation by Agent Cortny Dugger and Criminal Investigator Chanel Finnell with the Tennessee Ninth Judicial District Attorney General Office-Internet Crimes Against Children’s Unit, the FBI, and ATF. Assistant United States Attorney Jennifer Kolman represented the United States. This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006, by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about PSC, please visit www.justice.gov/psc . For more information about internet safety education, please visit www.justice.gov/psc/resources.html and click on the tab "resources.” ###


title: Oklahoman gets more than 37 years for kidnapping estranged wife by gunpoint

component: USAO - Texas, Southern

body_text: CORPUS CHRISTI, Texas – A 32-year-old resident of Yukon, Oklahoma, has been ordered to federal prison after his conviction of kidnapping and brandishing a firearm during the crime, announced U.S. Attorney Alamdar S. Hamdani. The federal jury sitting in Corpus Christi deliberated for approximately three hours before convicting Joshua Anthony Wallin June 29 on both counts following a four-day trial. U.S. District Judge David S. Morales has now ordered Wallin to serve 365 months in federal prison for the kidnapping charge to be immediately followed by 84 months for brandishing a firearm which must be served consecutively to the other term imposed. The total 449-month-term will be immediately followed by five years of supervised release. He was also ordered to pay the victim restitution. Before sentencing, Judge Morales took exception to Wallin’s statement that no one had been hurt. In imposing the prison term, the court into account all the pain Wallin caused to the victim and her family. In the early morning hours of June 23, 2021, Wallin confronted his estranged wife at her home in Crescent, Oklahoma, holding her at gunpoint and subjecting her to a two-day ordeal. The jury heard how he took her and their one-year-old son on an arduous journey that culminated at a Corpus Christi restaurant. The victim provided testimony describing her fear and how she was sexually assaulted before they left Oklahoma and again along the way. She also told the jury that at one point during the trip, Wallin said “at the end of the day someone is going to die.” As they traveled though Texas, Wallin was aware of law enforcement, called 911 and began a series of conversations with them. He repeatedly made threatening statements about killing his wife and child, telling authorities they should not get too close. His driving became erratic, and law enforcement was able to use a tire deflation device to flatten a rear tire. He eventually crashed into a local restaurant. They eventually arrived in Corpus Christi, at which time Wallin grabbed his son from the mother’s arms and carried him into the restaurant while pointing a gun at his son’s head. Upon entry, Wallin fired one shot into the ceiling and ordered the occupants out of the restaurant. A two-hour stand-off then ensued. Wallin did speak with negotiators, but became increasingly agitated. As authorities gained entry, Wallin shot himself. The child was unharmed. Wallin recovered from his self-inflicted wound. At trial, testimony revealed Wallin had performed internet searches on his phone the day before the kidnapping in an attempt to locate his estranged wife and to learn how people react when kidnapped. The defense attempted to convince the jury that Wallin and the victim were on a vacation when things went horribly wrong. The jury did not believe those claims and found Wallin guilty as charged. Wallin has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. The Corpus Christi Police Department and FBI conducted the investigation. Assistant U.S. Attorneys Michael Hess and Ashley Martin prosecuted the case.


title: Alex Murdaugh Pleads Guilty to Federal Conspiracy, Wire Fraud, Bank Fraud, and Money Laundering Charges

component: USAO - South Carolina

body_text: CHARLESTON, SOUTH CAROLINA — Richard Alexander “Alex” Murdaugh, 55, of Hampton, has pleaded guilty in federal court to all 22 charges pending against him, including conspiracy to commit wire fraud and bank fraud; bank fraud; wire fraud; and money laundering. “Alex Murdaugh’s financial crimes were extensive, brazen, and callous,” said U.S. Attorney Adair F. Boroughs. “He stole indiscriminately from his clients, from his law firm, and from others who trusted him. The U.S. Attorney’s Office, the FBI, and SLED committed to investigating and prosecuting Murdaugh’s financial crimes when they first came to light. Today marks our fulfillment of that promise.” Murdaugh was a personal injury attorney at a law firm in Hampton, South Carolina. He admitted to engaging in three different schemes to obtain money and property from his personal injury clients. In one scheme, Murdaugh admitted that from in or around July 2011 until at least October 2021, Murdaugh conspired with his banker, Russell Laffitte, to commit wire fraud and bank fraud. Murdaugh asked Laffitte to serve as personal representative or conservator for numerous personal injury clients. Laffitte collected hundreds of thousands of dollars in fees as personal representative or conservator for Murdaugh’s personal injury clients. As part of the scheme, Murdaugh directed law firm employees to make settlement checks payable to “Palmetto State Bank.” The checks were drawn on Murdaugh’s law firm’s trust account and identified the personal injury clients on the memo lines. Murdaugh then had the checks delivered to Laffitte, who distributed the checks for Murdaugh’s benefit, including to pay off personal loans and for personal expenses and cash withdrawals. Murdaugh pleaded guilty to one count of conspiracy to commit wire and bank fraud, one count of bank fraud, and two counts of wire fraud associated with this scheme. In November 2022, Laffitte was convicted on six federal charges for conspiracy to commit wire and bank fraud, bank fraud, wire fraud, and misapplication of bank funds for his role in this scheme. In August 2023, Laffitte was sentenced to 7 years in federal prison. In a second scheme, from at least September 2005 until at least September 2021, Murdaugh obtained money from his clients and his law firm by means of false pretenses. As part of the scheme, he routed and redirected clients’ settlement funds to personally enrich himself, including by: Drafting, or directing law firm employees to draft, disbursement sheets to send settlement funds to Murdaugh’s bank accounts without proper disclosure or client or law firm approval; Claiming funds held in the law firm’s trust account as attorney’s fees and directing the disbursement of those funds for his benefit; Claiming and collecting attorney’s fees on fake or nonexistent annuities; Creating fraudulent “expenses” that were never incurred on client matters and directing the disbursement of settlement funds to pay the cited costs, including claimed medical expenses, construction expenses, and airline expenses; Directing other attorneys with whom he was associated on client matters to disburse attorney’s fees directly to him, rather than appropriately routing the fees through the law firm; and Intercepting insurance proceeds intended for beneficiaries and depositing them directly into his personal account. Murdaugh admitted that in September 2015, he created a bank account in the name of “Forge,” presenting as a legitimate corporation for structuring insurance settlements. Murdaugh was the owner of and the only authorized signer on this “fake Forge” account. From in or around May 2017 through at least July 2021, Murdaugh funneled stolen personal injury settlements through the “fake Forge” account. Murdaugh pleaded guilty to three counts of wire fraud and 14 counts of money laundering relating to the theft of client money using the “fake Forge” account. Finally, Murdaugh admitted that, from in or around February 2018 until at least October 2020, Murdaugh conspired with Beaufort personal injury attorney Cory Fleming to defraud the estate of Murdaugh’s former housekeeper and Murdaugh’s homeowner’s insurance carriers. In February 2018, Murdaugh’s housekeeper passed away after a fall at Murdaugh’s home. Murdaugh recommended that the housekeeper’s estate hire Fleming to represent them and file a claim against Murdaugh to collect from his homeowner’s insurance policies. Murdaugh’s insurance companies settled the estate’s claim for $505,000 and $3,800,000. Murdaugh admitted that he directed Fleming to retain hundreds of thousands of dollars in settlement funds for their own personal benefit, representing those funds as “prosecution expenses” to the state court. Murdaugh and Fleming knew the funds did not belong to them and that there were no legitimate prosecution expenses. Murdaugh and Fleming reduced Fleming’s attorney’s fees, and Murdaugh knew he would steal the additional funds. Murdaugh directed Fleming to draft three checks totaling $3,483,431.95 made payable to “Forge.” Murdaugh then deposited the checks into his “fake Forge” account and used the funds for his own personal enrichment. The estate did not receive any of the settlement funds. Murdaugh pleaded guilty to conspiracy to commit wire fraud for his role in this scheme. Fleming pleaded guilty to a conspiracy charge for his role in this scheme. In August 2023, he was sentenced to 46 months in federal prison. As part of his guilty plea, Murdaugh agreed to waive his appeal and post-conviction rights, with narrow exceptions. He has also agreed to be fully truthful with federal, state, and local law enforcement agencies. Provided Murdaugh fully complies with the plea agreement, the Government has agreed—consistent with the recommendation of the United States Sentencing Guidelines—to recommend that Murdaugh’s federal prison sentence run concurrent to any state sentence imposed for the same conduct. Murdaugh faces the following penalties: Conspiracy to commit wire fraud and bank fraud is punishable by up to 30 years in prison and a fine of up to $1,000,000; Bank fraud is punishable by up to 30 years in prison and a fine of up to $1,000,000; Two counts of wire fraud are punishable by up to 30 years in prison and a fine of up to $1,000,000; Three counts of wire fraud are punishable by up to 20 years in prison and a fine of up to $250,000; Conspiracy to commit wire fraud is punishable by up to 20 years in prison and a fine of up to $1,000,000; and Money laundering is punishable by up to 20 years in prison and a fine of up to $500,000. The case was investigated by the Federal Bureau of Investigation and the South Carolina Law Enforcement Division. Assistant U.S. Attorneys Emily Limehouse, Kathleen Stoughton, and Winston Holliday are prosecuting the case. The case against Murdaugh is No. 9:23-cr-396 (D.S.C.). The case against Laffitte is No. 9:22-cr-658 (D.S.C.). The case against Fleming is No. 9:23-cr-394 (D.S.C.). ###


title: Maryland Man Working for the Government Charged  with Espionage

component: Federal Bureau of Investigation (FBI)

body_text: WASHINGTON – A government contractor is charged by criminal complaint, unsealed today, with espionage. Abraham Teklu Lemma, 50, a naturalized U.S. citizen of Ethiopian descent living in Silver Spring, Maryland, is charged with gathering or delivering national defense information to aid a foreign government; conspiracy to gather or deliver national defense information to aid a foreign government; and having unauthorized possession of national defense information and willfully retaining it. The charges were announced by United States Attorney Matthew M. Graves, Assistant Attorney General Matthew G. Olsen, of the Justice Department’s National Security Division, and Assistant Director in Charge David Sundberg of the FBI’s Washington Field Office. Lemma worked as an IT administrator for the Department of State, and as a Management Analyst for the Department of Justice. In those positions, Lemma was granted a TOP SECRET security clearance and granted access to classified systems. According to the criminal complaint, between December 19, 2022, and August 7, 2023, Lemma copied classified information from Intelligence Reports and deleted the classification markings from them. Lemma then removed the information, which was classified as SECRET and TOP SECRET, from secure facilities at the Department of State against protocol. The materials related to a specific country and/or geographic region. Lemma accessed, copied, removed, and retained this information without authorization. It is further alleged that Lemma used an encrypted application to transmit classified national defense information to a foreign official associated with the specific country’s intelligence service. In these communications, Lemma expressed an interest and willingness to assist the foreign official in providing information. In one communication, the foreign official stated stated, “[i]t’s time to continue ur support.” Lemma responded, “Roger that!" In another chat, the foreign official praised Lemma’s efforts, stating “[a]lways this beautiful country have [sic] some special people who scarify [sic] their life to protect our proud history. You always remembered. It doesn’t matter the results.” The two espionage charges carry a potential sentence of death or any term of years up to life, and the retention charge carries a maximum sentence of ten years. A federal judge will determine any sentence based on the U.S. Sentencing Guidelines and other statutory factors. This case is being investigated by the FBI’s Washington Field Office, the State Department's Diplomatic Security Service, and the Justice Department's Office of the Inspector General. It is being prosecuted by Assistant U.S. Attorneys Tejpal Chawla and Alexandra Hughes for the District of Columbia, Trial Attorneys Heather Schmidt and Kathryn DeMarco of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case. A criminal complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: Convicted Sex Offender Charged With Possession Of Child Pornography

component: USAO - New York, Western

body_text: ROCHESTER, N.Y. -- U.S. Attorney Trini E. Ross announced today that Jeffrey Swartz, 41, of Rochester, NY, was arrested and charged by criminal complaint with possession of child pornography by an individual with a prior sex offense, which carries a mandatory minimum penalty of 10 years in prison, and a maximum of 20 years. Assistant U.S. Attorney Meghan K. McGuire, who is handling the case, stated that according to the complaint, in October 2009, Swartz was convicted in New York State Court of Rape 3rd: Victim Less than 17 Years Old. In September 2010, he was convicted in Federal Court of attempted production of child pornography and sentenced to serve 180 months in prison. In January 2020, Swartz was released from prison and began a 15-year term of supervised release. A condition of his release was that he must obtain authorization to use any internet accessible device and he must submit to monitoring of any such authorized device. In August 2023, the FBI was notified that Swartz was viewing child pornography on a monitored cellular telephone, which was confiscated by U.S. Probation. A review of the phone recovered images and videos of child pornography. Swartz made an initial appearance before U.S. District Judge David G. Larimer and was detained. The complaint is the result of an investigation by the Federal Bureau of Investigation, Child Exploitation and Human Trafficking Task Force, under the direction of Special Agent-in-Charge Matthew Miraglia, and the U.S. Probation Department, under the direction of Chief Probation Officer Timothy Englert. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty. # # # #


title: Four Time Felon Pleads Guilty To New Drug And Gun Charges

body_text: BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Ivan Morales, 48, of Buffalo, NY, pleaded guilty before U.S. District Judge John L. Sinatra. Jr. to possession with intent to distribute 500 grams or more of cocaine and being a felon in possession of firearms. The charges carry a mandatory minimum penalty of 10 years in prison, a maximum of life and an $8,000,000 fine. Assistant U.S. Attorneys Louis A. Testani and Casey Chalbeck, who are handling the case, stated that on October 13, 2022, law enforcement officers executed a search warrant at Morales’s Ideal Street residence and seized suspected marijuana, a digital scale, and approximately $2,546.00 in U.S. currency. They also searched a Shanley Street apartment associated with Morales and seized approximately 1.5 kilograms of cocaine of cocaine, 12 clear bags containing cocaine, suspected MDMA pills, eight firearms, numerous magazines and ammunition, drug paraphernalia, and 250 $100 bills, for a total of $25,000.00 in U.S. currency. In 1998, 2004, 2006, and 2020, Morales was convicted of felonies in state and federal court and is legally prohibited from possessing firearms. The plea is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Matthew Scarpino and the Buffalo Police Department, under the direction of Commissioner Joseph Gramaglia. Sentencing is scheduled for January 16, 2024, before Judge Sinatra.


title: Buffalo Man Who Traveled To Rochester To Have Sex With A 13 Y/O Girl Going To Prison

body_text: ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Mohammed Uddin, 36, of Buffalo, NY, who was convicted of attempted receipt of child pornography, was sentenced to serve 72 months in prison by U.S. District Judge Frank P. Geraci, Jr. Assistant U.S. Attorney Kyle P. Rossi, who handled the case, stated that Uddin engaged in sexually explicit online and text communications with an undercover law enforcement officer, who he believed was a 13-year-old girl. Over a period of approximately three weeks, Uddin discussed engaging in sexual relations with the child, sent pornography to the child, talked about taking the child’s virginity, attempted to induce the child to produce and send him sexually explicit photos and videos, and formed a plan to meet the child at her Rochester home for sex. On August 18, 2022, Uddin traveled from Cheektowaga to an address in Rochester that he believed was the child’s residence and was immediately taken into custody, at which time investigators located Uddin’s cell phone and candy that he purchased as a gift for the child. The sentencing is the result of an investigation by the Federal Bureau of Investigation, Child Exploitation Human Trafficking Task Force, under the direction of Special Agent-in-Charge Matthew Miraglia and the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter. # # # #


title: Plainview Man Sentenced for Filing a False Tax Return

component: USAO - Nebraska

body_text: Acting United States Attorney Susan Lehr announced that Joseph T. Pearce, II, 41, of Plainview, Nebraska, was sentenced on September 20, 2023, in federal court in Omaha, Nebraska, for filing a false tax return. United States District Judge Brian C. Buescher sentenced Pearce to four years’ probation. Judge Buescher also order Pearce to pay $200,411.33 in restitution. Pearce owned and operated a painting and maintenance business between 2014 and 2018 in Nebraska and Texas. Pearce’s tax returns for 2014 through 2018 reported profit from the painting and maintenance business. Pearce signed each of the tax returns under penalties of perjury, declaring that he examined a copy of the tax returns and that they were true, correct, and complete. At the time Pearce made the written declaration for each tax year, Pearce knew the reported income in the tax returns for each tax year was not correct. An investigation conducted by the Internal Revenue Service determined that for tax years 2014 through 2018, Pearce filed tax returns that reported substantially less income than had been actually paid to Pearce’s painting and maintenance business. The Internal Revenue Service’s investigation included interviews of Pearce’s clients and review of Pearce’s financial records. The Internal Revenue Service determined that Pearce’s tax returns failed to report $760,629 in income from between 2014 and 2018. Taxes owed to the Internal Revenue Service on the unreported income total $200,411. This case was investigated by the Internal Revenue Service, Criminal Investigations.


title: Omaha Man Sentenced to 10 Years for Drug Trafficking Conspiracy and Possession of a Firearm

body_text: Acting United States Attorney Susan Lehr announced that Glenn Lemar Cass, 52, of Omaha, Nebraska, was sentenced today in Omaha by United States District Judge Brian C. Buescher for Conspiracy to Distribute more than 40 grams of fentanyl and Possessing a Firearm in Furtherance of a Drug Trafficking Crime. Cass was sentenced to 120 months in prison and will also serve 5 years on supervised release. There is no parole in the federal system. On Dec. 29, 2021, the Omaha Police Department executed a search warrant on Cass’s North Omaha residence. Officers encountered Cass in the main floor hallway and secured him in handcuffs. Officers searched the residence and found 164 grams of fentanyl, a loaded .40 caliber handgun, and drug dealing paraphernalia in Cass’s bedroom closet. In the basement, officers located 782 grams of marijuana, 8.9 grams of heroin, more than 6 grams of fentanyl and $23,411. The money was found to be drug trafficking proceeds and forfeited to the United States at sentencing. This case was investigated by the Omaha Police Department.


title: Nigerian Citizen Fined $1,500 for Making False Representations to Government Agents at the Cyril E. King Airport

component: USAO - Virgin Islands

body_text: St. Thomas, USVI – United States Attorney Delia L. Smith announced today that on September 8, 2023, Ifeoma Inneh, a 42-year-old citizen of Nigeria, was sentenced by District Court Chief Judge Robert A. Malloy to pay a $1,500 fine for making false representations to Customs and Border Protection (CPB) officers at the Cyril E. King Airport. According to court documents, on June 4, 2021, Inneh was a ticketed passenger on a United Airlines Flight departing from St. Thomas to Newark, NJ. During CBP inspection, Inneh presented a Pennsylvania driver’s license and stated that she is a citizen of the United States. Inneh further stated that she entered the United States on a student visa and had subsequently become a lawful permanent resident and naturalized United States citizen. CBP officers then conducted a record check and determined that Inneh was neither a lawful permanent resident nor a citizen of the United States, and that her presence in the United States was unlawful. This case was investigated by Homeland Security Investigations and CBP. It was prosecuted by Assistant United States Attorney Natasha Baker.


title: St. Thomas Man Sentenced to 30 Months in Prison for Firearm Charges

body_text: St. Thomas, USVI – U.S. Attorney Delia L. Smith announced today that on September 8, 2023, St. Thomas resident Nijontea Walker, 21, was sentenced by Chief District Court Judge Robert A. Malloy to 30 months imprisonment followed by 30 months supervised release for possessing a firearm with an obliterated serial number and for possessing a firearm within 1,000 feet of a school zone. According to court documents, Walker was arrested after an April 8, 2020 incident which occurred while Virgin Islands Police Department (VIPD) officers were patrolling the Hospital Ground neighborhood in St. Thomas due to recent shootings. VIPD officers pursued a group of individuals, including Walker, after the group ran when officers approached. Walker was observed holding a black bag containing an AK-47 firearm with an obliterated serial number. The bag and firearm were later recovered after being abandoned during the pursuit. This case was investigated by VIPD and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and prosecuted by Assistant United States Attorney Kyle Payne. This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.


title: St. Croix Man Pleads Guilty to Firearm Charge

body_text: St. Croix, USVI – United States Attorney Delia L. Smith announced that Victor Hugo Cannegieter, II, 31, pleaded guilty in U.S. District Court in St. Croix to illegal possession of a machine gun. U.S. Magistrate Judge Emile A. Henderson, III set a sentencing date for January 5, 2024, Cannegieter faces a maximum sentence of 10 years in prison. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. According to court documents, during the evening hours of June 7, 2023, Cannegieter arrived at Castaways Restaurant, located at Estate Solitude on St. Croix, in an inebriated state. Cannegieter engaged in a verbal altercation with two men, before being asked to leave Castaways by the bartender. Later that same evening, Cannegieter returned to Castaways and engaged in a physical brawl with two women. During that brawl, Cannegieter attempted to pull a .40 caliber Glock pistol out of his waistband. The bartender wrestled the pistol from Cannegieter and kept it away from him. Virgin Islands Police Department (VIPD) officers subsequently arrived at the scene and placed Cannegieter under arrest. Upon examination, law enforcement authorities determined that the pistol had been fitted with a “chip,” which is a part designed and intended for use in converting a firearm into a weapon capable of fully automatic fire, without manual reloading, by a single function of the trigger. The pistol was fully operable and it had been fitted with an extended magazine that had been loaded with 27 rounds of ammunition. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) investigated this case with the assistance of the VIPD. Assistant U.S. Attorney Evan Rikhye is prosecuting the case. ###


title: Latest U.S. Marshals Operation Nabs More Than 4,400 Fugitives

component: Office of the Attorney General

body_text: The U.S. Marshals Service arrested 4,455 violent fugitives during the latest phase of its high-impact fugitive apprehension initiative, dubbed Operation North Star III (ONS III). ONS III targeted violent offenders in 20 cities and resulted in the clearance of 2,818 violent warrants, to include homicide, forcible sexual assault, robbery, aggravated assault, and firearms violations. During this 3-month enforcement effort, investigators also seized 555 firearms, more than $1 million in U.S. currency, and 85 kilograms of illegal narcotics. The primary jurisdictions of ONS III were Albuquerque; Baltimore; Buffalo, New York; Chicago; Cleveland; Columbus, Ohio; Detroit; Houston; Indianapolis; Jackson, Mississippi; Kansas City, Missouri; Los Angeles; Memphis, Tennessee; Milwaukee; New Orleans; New York; Oakland, California; Philadelphia; Puerto Rico; and Washington, D.C. “Together with our law enforcement partners across the country, the Justice Department is zeroing in on the violent fugitives responsible for the greatest crime in our communities,” said Attorney General Merrick B. Garland. “The U.S. Marshals Service conducted Operation North Star III to target the most violent criminals, and together with state and local law enforcement arrested over 4,400 fugitives across 20 cities in just three months.” “ONS is an evidence-based strategy that targets the drivers of violence in our communities,” said U.S. Marshals Service Director Ronald Davis. “ONS is part of the Attorney General’s violent crime reduction strategy, and its success is based on community partnerships and collaboration with our local and state law enforcement partners. I want to thank the outstanding work of the women and men of the USMS and our partnering law enforcement agencies. Together with the community, these efforts have contributed to successful violence reduction efforts in ONS cities.” This enforcement action marks the third ONS since July 2022. In total, U.S. Marshals have apprehended more than 6,700 wanted fugitives, including 900 charged with homicide, in addition to removing more than 900 weapons associated to violent crime. The concept behind interagency law enforcement operations such as ONS evolved largely from regional and district fugitive task forces. Since the 1980s, the U.S. Marshals Service has combined their resources and expertise with local, state, and federal agencies to find and apprehend dangerous fugitives. For more information visit www.usmarshals.gov .


title: Former Lieutenant for the Newport News Fire Department Sentenced for Coercion and Enticement of a Child and Receipt of Child Pornography

body_text: NEWPORT NEWS, Va. – A Newport News man was sentenced yesterday to over 33 years in prison for coercion and enticement of a child and receipt of child sexual abuse material (CSAM). According to court documents, in February 2022, Christopher Scott Jones, 43, used the internet to entice and coerce a minor to engage in sexual activity. During the investigation of this offense, the FBI discovered several children who may have been victims of Jones’ conduct. The minors were forensically interviewed and three made disclosures of sexually explicit contact with Jones. One minor disclosed Jones engaging with them over the course of nine months in physical and sexual conduct, to include inappropriate sexual contact and the mutual exchange of sexually explicit images to one another. Forensic examinations of his devices and lawful searches of his accounts confirmed the illicit relationships. In addition, in July 2022, Jones traveled to meet an undercover individual posing as a 12-year-old for sex. On May 18, Jones pleaded guilty to using a communication facility to knowingly persuade, induce, entice, and coerce a minor to engage in sexual activity. Jones also pleaded guilty to receiving child pornography of his victim.Jones was formerly a lieutenant with the Newport News Fire Department. Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Jamar K. Walker. James City County Police Department assisted in this investigation. Assistant U.S. Attorney Peter Osyf prosecuted the case. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc . A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:23-cr-32.


title: Sanderson Man Sentenced For Trying to Meet Minor for Sex

component: USAO - Texas, Western

body_text: DEL RIO, Texas – A Sanderson man was sentenced in a federal court in Del Rio Tuesday to 15 years in prison for sexual exploitation of children. According to court documents, Pedro Chalambaga Olivares, 54, attempted to elicit inappropriate photos of a seventeen year-old girl in June 2018, prompting the girl’s mother to contact the Texas Department of Public Safety (TX DPS) Internet Crimes Against Children Task Force, who then began working with the Terrell County Sheriff’s Office (TCSO). Olivares contacted what he thought was a 16 year-old girl and attempted to obtain sexually explicit photos of her and arrange a meeting to engage in unlawful sexual conduct. Having been told she was a minor in high school, Olivares requested sexually graphic photos, drove by her residence in an attempt to see her, described his intentions with her, and suggested how the minor could escape her father’s home to meet. On June 17, 2018, Olivares advised the minor to meet him at a football field. Agents observed Olivares waiting in the bleachers for approximately 20 minutes before they arrested him. Agents recovered three condoms from the front pocket of his shorts, along with a soft drink and a bag of candy the minor had requested. Olivares was arrested for online solicitation of a minor for sexual conduct. He pleaded guilty on Sept. 16, 2021 to one count of sexual exploitation of children. “This defendant will spend the next 15 years in federal prison for criminal desires he fully intended to act on,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “This case opened when a young girl raised concerns to her mother and those concerns were relayed to law enforcement. I commend both of them and our partners for their part in putting this predator away and protecting our communities.” TX DPS and the TCSO investigated the case with assistance from Office of the Texas Attorney General Criminal Investigations Division Child Exploitation Unit. Assistant U.S. Attorney Rex Beasley prosecuted the case. This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc . ###


title: CHRISTOPHER J. WILSON, UNITED STATES ATTORNEY - EASTERN DISTRICT OF OKLAHOMA, WILL BE AVAILABLE TO THE PRESS REGARDING SCHEDULED ANTI-TERRORISM ADVISORY COUNCIL (ATAC) MEETING & TRAINING EVENT

component: USAO - Oklahoma, Eastern

body_text: MUSKOGEE, OKLAHOMA - Christopher J. Wilson, United States Attorney for the Eastern District of Oklahoma, will be available to the press regarding a scheduled Anti-Terrorism Advisory Council (ATAC) meeting & training event for law enforcement officers, security professionals, and school personnel who might find themselves in a first-responder role during an active-shooter event within their respective community or place of work. WHEN 9:30 am Thursday, September 21, 2023 WHERE Martin Luther King Jr. Community Center 300 W Martin Luther King St. Muskogee, OK 74401 OPEN PRESS NOTE: Press should arrive 30 minutes prior to appointment time to allow for camera set-up, etc. Press should also call the contact number (918) 684-5100 before making an appointment to confirm parameters of this press availability event.


title: U.S. Attorney Alexander M.M. Uballez Announces Commencement of the District of New Mexico’s First Federal Reentry Court

component: USAO - New Mexico

body_text: ALBUQUERQUE, N.M. – United States Attorney for the District of New Mexico Alexander M.M. Uballez, Federal Public Defender Margaret A. Katze, and Chief Probation Officer Ron Travers, announced today the commencement of the District of New Mexico’s first federal reentry court. Reentry through Integrated Opportunities, or RIO , is an intensive 52-week program for individuals returning to the Albuquerque community from federal prison. Over the past nine months, a working group consisting of the Chief United States District Court Judge, a United States Magistrate Judge, the United States Attorney, the Federal Public Defender, the Chief Probation Officer, and representatives from each office and the United States Department of Veterans Affairs researched, developed, and proposed a unique reentry court for New Mexico. The final plan, approved by the United States District Court Judges in July 2023, will support a pilot group of participants identified as most at risk for violating the terms of their supervised release or committing new crimes. The inaugural cohort of eight voluntary participants met yesterday for their first hearing in federal court in front of Chief United States District Court Judge William P. Johnson. Those participants will continue to meet, as a group, with the Reentry Court Judge every other week to discuss all aspects of their supervision. This intense oversight is augmented by focused resources from the U.S. Probation & Pretrial Office as well as treatment providers and social services that will provide accountability, support, and bridge the needs of participants. The Reentry Court Judge will have the authority to levy sanctions for noncompliance. Those who successfully complete the 52-week program will receive a recommendation to the sentencing judge for a reduced term of supervision. Collaboration is at the heart of this program. Before each hearing, the reentry court team will convene and review the individual progress of each participant and assess noncompliance or other needs inhibiting success. Treatment providers, community partners and stakeholders will aid participants in areas of employment, housing, education, treatment, veteran’s resources, and any other medical or governmental assistance programs. The goals of this non-adversarial process are to ensure compliance, identify resources, and provide a highly structured support system that will ensure the safety and success of the participants and, therefore, the safety of the community. “Justice, often invoked through retribution, is perfected in redemption,” said U.S. Attorney Uballez. “No matter what wrong landed a person in federal prison, once they have paid their debt to society, they return to be our neighbors. In that, their success on supervised release and their ability to live a life free from crime is directly tied to the safety of our community. From retribution to redemption, from punishment to promise, we are here to build a better and safer community for all of us.” The reentry court team will review the program annually for effectiveness and statistical data will be collected and published by the U.S. Attorney’s Office. RIO is modeled after and in collaboration with problem-solving Courts and programs implemented in the Eastern District of Pennsylvania, the Middle District of Tennessee, the Western District of Oklahoma, and the District of Utah. ### 23-229


title: U.S. Attorney’s Office for the District of Utah Celebrates Funding Awarded for Community Responses to Gender-Based Violence

component: USAO - Utah

body_text: Salt Lake City, UT – In commemoration of the 29th anniversary of the original enactment of the Violence Against Women Act (VAWA), the Justice Department announced nearly $193 million in formula and discretionary grant awards to support crucial services and justice responses for survivors of domestic violence, dating violence, sexual assault, and stalking, including $1,982,667 for the Utah Office for Victims of Crime in the District of Utah. For nearly three decades, VAWA provided the tools and resources to protect and serve survivors of domestic violence, dating violence, sexual assault, and stalking. To commemorate the 29th anniversary of VAWA, the U.S. Attorney’s Office for the District of Utah is proud to announce that the Department of Justice Office on Violence Against Women (OVW) awarded $1,982,667 in the District of Utah to support community responses to gender-based violence. United States Attorney Trina A. Higgins commented: “I am pleased to announce that funding has been awarded in the District of Utah from the Office on Violence Against Women. These funds will help further advocate for the rights and needs of crime victims in Utah.” VAWA’s signature program is the STOP (Services, Training, Officers, and Prosecutors) Violence Against Women Formula Grants Program, which awards funds to every U.S. state and territory to promote a coordinated community response among law enforcement, prosecution, courts, victim services organizations, and other community services to ensure the safety of survivors. OVW is awarding $1,982,667 under the STOP Program to Utah to enhance the capacity for communities across the country to develop programs to end gender-based violence and hold offenders accountable. “Prior to the enactment of VAWA, survivors were primarily left to fend for themselves, often cycling in and out of dangerous environments with little help from legal systems or service providers.” OVW Director Rosie Hidalgo said. “VAWA has changed this landscape by supporting a coordinated community response to address domestic violence, sexual assault, dating violence, and stalking in a more comprehensive manner. It emphasizes survivor-centered, trauma-informed, and community-based approaches and ensures that services are available across every state and territory.” ### OVW provides leadership in developing the nation’s capacity to reduce violence through implementing VAWA and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities nationwide that are developing programs, policies, and practices to end domestic violence, dating violence, sexual assault, and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw.


title: Conway Man and Texas Man Sentenced to Multi-Year Terms in Federal Prison for Drug Trafficking and Related Activity

body_text: FLORENCE, SOUTH CAROLINA — Martine Garcia, 32, of Conway, was sentenced to more than 3 years in federal prison after pleading guilty to possession with intent to distribute cocaine and methamphetamine. Ulisses Jair Perez Guillen, 20, of Forth Worth, Texas, was sentenced to ten years in prison after pleading guilty to possession with intent to distribute cocaine and possessing a firearm in furtherance of drug trafficking. Evidence presented to the court showed that, on July 7, 2022, law enforcement executed a search warrant at a home in Conway from which Garcia had previously sold methamphetamine. Garcia and Perez Guillen were located inside the home, where law enforcement found approximately 450 grams of methamphetamine and 700 grams of cocaine. Inside a car Perez Guillen had driven to the home, law enforcement found nearly a kilogram of cocaine and a 9mm SCCY handgun. Further investigation revealed a hidden compartment in the car, which contained approximately 3.5 kilograms of additional suspected cocaine. United States District Judge Joseph Dawson, II, sentenced Garcia to 41 months in prison, with 4 years of court-ordered supervision to follow. Judge Dawson sentenced Perez Guillen to 120 months in prison, with 5 years of court-ordered supervision to follow. There is no parole in the federal system. This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. This case was investigated by Horry County Police Department and the Drug Enforcement Administration. Assistant U.S. Attorney Katherine Flynn prosecuted the case. ###


title: Charleston County Man Sentenced to 5 Years in Federal Prison for Wire Fraud

body_text: CHARLESTON, SOUTH CAROLINA — Amir Golestan, 40, of Charleston, was sentenced to 5 years in federal prison after pleading guilty to 20 counts of wire fraud. Evidence presented to the court showed that Golestan operated a company, Micfo, LLC, that represented itself as providing hosting services and providing customers with technologies and services needed for a website or webpage to be viewed on the Internet. As part of its business, Micfo applied and registered for IPv4 addresses through the American Registry of Internet Numbers (“ARIN”). IPv4 addresses are numerical labels assigned to each device connected to a computer network that uses the Internet for communication. ARIN is a nonprofit organization that administers IP address rights, allocations, and transfers in the United States, Canada, and parts of the Caribbean. To obtain an IP address allocation from ARIN, an entity has to provide a need-based justification. As ARIN’s pool of IPv4 addresses has depleted, a secondary market has developed where prices for a single IPv4 address have increased dramatically. After Micfo no longer qualified to procure additional IPv4 addresses based on ARIN’s policies and procedures, Golestan created fake companies, which he referred to as “Channel Partners,” to procure them. Through the Channel Partners, Golestan made fraudulent representations to ARIN, and ARIN relied on those misrepresentations in granting the Channel Partners rights to IPv4 addresses. Golestan made over $3 million selling rights to those IPv4 addresses on the secondary market before his fraudulent scheme was caught. “Like many corporate wrongdoers, Amir Golestan tried to obscure his criminal conduct by using fake companies and complex transactions,” said U.S. Attorney Adair F. Boroughs. “The U.S. Attorney’s Office stands ready to unwind these schemes and prosecute those who exploit critical technologies to line their own pockets. We are grateful to the FBI and to ARIN for their assistance in holding Golestan accountable.” “Golestan’s criminal activities caused significant harm to his customers who put their trust in his hands,” said Paul “Reid” Davis, Assistant Special Agent in Charge of the FBI Columbia Field Office. “His betrayal of that trust is being met by the weight of justice with this sentence. The FBI, along with its law enforcement partners, are committed to investigating and dismantling fraudulent schemes designed to take advantage of critical technologies.” United States District Judge Richard M. Gergel sentenced Golestan to 60 months in prison, to be followed by a 2-year term of court-ordered supervision. There is no parole in the federal system. The court also ordered restitution be paid to ARIN in the amount of $76,978.25. This case was investigated by the Federal Bureau of Investigation (FBI). Assistant U.S. Attorney Amy F. Bower is prosecuting the case. ###


title: U.S. Attorney’s Office for the District of Alaska Celebrates $3M Awarded to Alaska Department of Public Safety for Criminal Records System Updates

component: Office of Justice Programs (OJP)

body_text: ANCHORAGE, Alaska – The U.S. Attorney’s Office for the District of Alaska is proud to announce that the Department of Justice’s Office of Justice Programs (OJP) awarded over $3.3 million in grants to the Alaska Department of Public Safety to improve criminal records systems. OJP awarded roughly $1.8 million through the FY2023 National Instant Criminal Background Check System (NICS) Act Record Improvement Program, and $1.5 million through the FY2023 National Criminal History Improvement Program (NCHIP). The funds from the NCHIP will help DPS and the Alaska Court System continue to work together, ensuring that the state’s criminal history repository is accurate and complete. The grant will also help fund the replacement of Alaska’s outdated mainframe repository, known as the Alaska Public Safety Information Network (APSIN), with a new repository that will improve service to Alaska’s law enforcement officers and dispatchers. The funds from the NICS Act Record Improvement Program will help DPS keep Alaska’s contributions to the FBI’s National Instant Criminal Background Check System accurate and up to date. This ensures that Alaskans without federal disqualifying criminal convictions can purchase firearms at legal gun sale locations in a timely manner. “We are proud to announce this funding for the Alaska Department of Public Safety as it helps state law enforcement continue to improve their systems and responses,” said U.S. Attorney S. Lane Tucker for the District of Alaska. “Working with state and local law enforcement to improve public safety in Alaska is one of our main priorities, and these funds are just a small portion of our continued collaboration to keep our communities safe and serve the people of Alaska.” “This federal funding will ensure that Alaska’s criminal records systems are accurate and available to serve both Alaskans and our law enforcement officers across the state,” said Alaska Department of Public Safety Commissioner James Cockrell. “The investments enabled by these grants will keep our state on the cutting edge of technology, while protecting Alaskans’ U.S. and state constitutional rights.” OJP provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, advance equity and fairness in the administration of justice, assist victims and uphold the rule of law. More information about OJP and its components can be found at www.ojp.gov . ###


title: Albuquerque Man Sentenced to 10 Years in Prison for Drug Trafficking and Federal Firearms Offenses

body_text: ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Eric Castañeda, Acting Special Agent in Charge of the Drug Enforcement Administration’s El Paso Division, announced today that Leonardo Garcia was sentenced to 10 years in prison. Garcia, 39, of Albuquerque, pled guilty to possession with intent to distribute 500 grams and more of a mixture and substance containing cocaine and using and carrying a firearm during and in relation to a drug trafficking crime on March 17, 2023. According to court records, on the morning of September 8, 2021, DEA agents arrived at Garcia’s residence ahead of executing a search warrant on the premises. While waiting, agents observed Garcia conducting multiple transactions out of his residence. When agents executed the search warrant, Garcia was arrested without incident and a search of his residence revealed 3,594.3 grams of cocaine and multiple firearms. In his plea agreement, Garcia admitted that he possessed the cocaine with the intent of distributing it and the firearms in furtherance of his intent to distribute the cocaine. Upon his release from prison, Garcia will be subject to 5 years of supervised release. The Drug Enforcement Administration investigated this case. Assistant U.S. Attorney Joseph M. Spindle is prosecuting the case. # # # 23-230


title: San Fernando Valley Man Sentenced to More Than 6 Years in Prison for Masterminding Check-Kiting Scheme that Defrauded Major Banks

component: USAO - California, Central

body_text: LOS ANGELES – The ringleader and mastermind of a check-kiting scheme who conspired with his wife and other family members to defraud major banks out of more than $1.7 million has been sentenced to 81 months in federal prison, the Justice Department announced today. Ara Malkhasyan, 52, of Winnetka, was sentenced late Tuesday by United States District Judge Dolly M. Gee, who will schedule restitution hearing in the coming weeks. Malkhasyan pleaded guilty in April 2021 to one count of conspiracy to commit bank fraud and one count of aggravated identity theft. From May 2015 to September 2017, Malkhasyan and his co-conspirators obtained genuine Armenian passports issued to other people, altered the passports to include the photos of themselves, and used the fraudulent documents to obtain other identity documents and to open bank accounts at the victim banks. Malkhasyan and his accomplices used the bank accounts, which were opened in the names that appeared on the altered passports, to write bad checks to other fraudulently obtained bank accounts. They exploited bank rules that allowed them to transfer money from one account to another, and then to immediately withdraw funds at ATMs in Las Vegas casinos and other locations before the checks bounced. In total, Malkhasyan and his co-conspirators used 331 fraudulently altered Armenian passports to unlawfully obtain $1,304,307 from Bank of America. In a separate scheme, from April 2017 to May 2019, Malkhasyan conspired with his brother-in-law, Smbat Khechumyan, 41, of North Hollywood, to conduct similar forged and fraudulent check scheme in which one of them would open a Wells Fargo account using a stolen Armenian passport, counterfeit Ukrainian or Belarusian passport, deposit forged checks into the account, and then withdraw funds from the account through ATMs at Las Vegas casinos. Wells Fargo suffered a loss of $401,420. Khechumyan pleaded guilty in October 2021 to one count of conspiracy to commit bank fraud and one count of aggravated identity theft. He is serving a two-year prison sentence for his crimes. Sveta Khechumyan, 49, of Winnetka, Malkhasyan’s wife and Smbat’s sister, pleaded guilty in April 2021 to one count of conspiracy to commit bank fraud and one count of aggravated identity theft. Her sentencing hearing is scheduled for November 3. In total, prosecutors have secured nine guilty pleas in this case. Homeland Security Investigations investigated this matter and received substantial assistance from the Los Angeles Police Department, the Los Angeles County Sheriff’s Department, and the FBI. Assistant United States Attorney Kevin J. Butler of the Violent and Organized Crime Section prosecuted this case.


title: One Detroit Partnership Announces Results of Unified Summer Enforcement, Prevention, and Reentry Strategy Targeting Designated High Crime Areas in Detroit

component: USAO - Michigan, Eastern

body_text: DETROIT – Today, United States Attorney Dawn N. Ison, along with Detroit Mayor Mike Duggan, Wayne County Prosecuting Attorney Kym Worthy, and Detroit Police Chief James E. White as part of the One Detroit Violence Reduction Partnership announced the results of the targeted strategy aimed at reducing gun violence in Detroit’s neighborhoods with the highest incidence of violent crime – Detroit’s 8 th and 9 th Precincts. The strategy had three components—prevention, enforcement, and reentry—and is a part of the One Detroit partnership announced earlier this year. One Detroit is a coalition of community and law enforcement partners working together to develop and execute the best strategies to reduce violent crime. Joining in the announcement were Alvin Stokes, President, Citywide Citizens Police Community Relations, Acting Special Agent in Charge Devin J. Kowalski, Federal Bureau of Investigation, Detroit Division, Bishop Edgar Vann, II, Second Ebenezer Church, Special Agent in Charge James Deir, Bureau of Alcohol, Tobacco, Firearms and Explosives, Kenyatta Stephens, CEO Black Family Development, Special Agent in Charge Orville Greene, Drug Enforcement Administration, Detroit Division, and Beverly Smith, Assistant Deputy Director, Operations Office, Michigan Department of Corrections. The initiative began on Memorial Day and ended on Labor Day. One part of the effort was an enforcement strategy designed to prosecute the most violent individuals and crimes in federal court when that was possible. This effort resulted in 22 defendants being charged with federal firearms offenses including being a felon in possession of a firearm, illegal possession of a machine gun, possession of a stolen firearm and possession of a firearm with an obliterated serial number. Of those charged, 13 defendants have been detained pending trial, three defendants have pleaded guilty to charges, and 18 defendants are pending trial. According to Detroit Police Department statistics, from June 1 to August 31, there was nearly a 20% reduction in target violent offenses in the 8 th Precinct, an 11% reduction in the 9 th Precinct, and a nearly 6% reduction citywide compared to the same time last year. The One Detroit partnership also engaged in preventing crime in the targeted areas through Peacenics, a collective gathering of the community and law enforcement where we shared in food, fellowship and fun in the name of peace. The events featured vendors offering a variety of resources, including job training, literacy programs, mental health and medical screenings, utility assistance, educational and vocational opportunities, tutorial, career development. The Peacenics allowed residents to have fun, engage with law enforcement, and obtain resources to improve the quality of their lives. Approximately, 4800 Detroit residents attended the two Peacenics held on July 8 in O’Hair Park and July 15 in Heilmann Park. Finally, the One Detroit partnership also focused on reentry as a way of preventing recidivism by empowering returning citizens to become stable, contributing members of the Detroit community. As a result of these efforts, 50 returning citizens participated in community roundtables intended to provide motivation and insight about taking advantage of second chances after a criminal conviction. At the events, family members of probationers were also invited to participate in breakout sessions to discuss barriers to stability. One Detroit partners also assisted with employment needs and helped connect attendees with resources. United States Attorney Dawn N. Ison stated, “We are encouraged about the progress we made toward our goal to make this city safer, but there is still work to do. My office and our One Detroit Partners won’t stop working until we can meaningfully reduce violence in this city.” Mayor Duggan stated, "We've never had a US Attorney here in Detroit as passionate about crime prevention in our neighborhoods than Dawn Ison, and the results of her strategy speak for themselves. We saw a nearly 20% reduction in violent crime in the 8th Precinct alone this summer. The balanced approach of strict multi-agency enforcement against those who commit acts of violence and support for those willing to participate in programs that keep them out of trouble, surely made a big difference." “This partnership is something that we must continue. It is always vitally important to work together to reduce crime and improve the quality of life in Detroit. The initiative has wisely included supporting our returning citizens. This component is a welcome addition that will pay dividends in the future,” said Wayne County Prosecutor Kym Worthy. “We’re encouraged by the results of this year’s One Detroit Partnership, which brought agencies at all levels of the system and members of the community together to keep people safe in some of the city’s neighborhoods that are most impacted by crime,” said Chief James E. White. “I look forward to continued collaboration with these partners in our mission to make Detroit a safer place for all.”


title: Armed Fentanyl Dealer Sentenced to Ten Years in Prison

component: USAO - Rhode Island

body_text: PROVIDENCE – A Pawtucket man who previously admitted to a federal judge that he was in possession of more than two kilos of fentanyl, a loaded Glock handgun, and nearly $80,000 in cash when he was arrested in October 2019 during a Pawtucket Police Department Project Safe Neighborhoods investigation was sentenced today to ten years in federal prison, announced United States Attorney Zachary A. Cunha. Adrian Montalvo, 36, pleaded guilty in April in federal court to charges of possession with intent to distribute 40 grams or more of fentanyl and possession of a firearm in furtherance of a drug trafficking crime. He was sentenced today by U.S. District Court Judge Mary S. McElroy to ten years of incarceration to be followed by four years of supervised release. According to information presented to the court, members of the Pawtucket Police Department’s Special Squad /Narcotics Unit developed information that Montalvo, previously convicted multiple times in state courts for trafficking narcotics, was selling large quantities of fentanyl within the city of Pawtucket. Following an investigation that included surveillance of Montalvo and his residence, Pawtucket Police requested and received a court-authorized search warrant for his residence. A search of Montalvo’s residence on October 1, 2019, yielded 2,118.35 grams of fentanyl; $79,106 in cash; a Glock 9mm semi-automatic pistol with an obliterated serial number; and items used in the preparation and packaging of fentanyl for distribution. In addition to the term of incarceration imposed by the court, the court also ordered Montalvo to forfeit the cash and firearm seized by law enforcement, as well as proceeds realized by his drug trafficking activity, including a 2017 Jeep Wrangler, three widescreen televisions, miscellaneous jewelry, and a projector system. The case was prosecuted by Assistant U.S. Attorney Ronald R. Gendron. This case was investigated and prosecuted in federal court as part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. In 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. ###


title: Jefferson County Man Sentenced to 7 Years in Prison on Child Pornography Charge

body_text: ST. LOUIS – U.S. District Judge Audrey G. Fleissig on Wednesday sentenced a man from Jefferson County, Missouri to seven years in prison on a child pornography charge and ordered him to pay $57,000 to victims. Matthew Thilges, 60, pleaded guilty June 7, 2023, to one count of receipt of child pornography. He admitted possessing images containing child sexual abuse on his cell phone and computer. The investigation began after Thilges made a series of threats to kill employees of tech companies, including YouTube, Google, Facebook and Twitter, his plea agreement says. In the beginning of October 2020, Thilges began threatening law enforcement and children. A court-authorized search of Thilges’ home near House Springs, Missouri later that month found electronic devices, a child-like sex doll, eight assault rifles, one handgun and ammunition. Investigators found over 10,000 images containing child pornography on Thilges’ cell phone and computer and concerning images he had taken of a minor child in his home. Judge Fleissig on Wednesday overruled Thilges’ objections to paying restitution to the victims who have been identified in the images and videos that he possessed. Those victims were notified about Thilges’ possession of the images and his criminal charge, and 17 victims requested restitution to compensate them for mental health treatment and other medical services, as well as other expenses and losses. The FBI investigated the case. Assistant U.S. Attorney Colleen Lang prosecuted the case. This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice 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 exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc .


title: Twice-Convicted Accountant Is Charged With Embezzling More Than $1.1 Million From Employer

component: USAO - North Carolina, Western

body_text: CHARLOTTE, N.C. – A federal grand jury in Charlotte has indicted Mandy Deann Urban, 47, formerly of Charlotte, with wire fraud, for allegedly embezzling more than $1.1 million from her employer, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. U.S. Attorney King is joined in making today’s announcement by Ronnie Martinez, Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department. According to allegations in the indictment, from January 2019 to June 2022, Urban was employed as a senior staff accountant for a Charlotte-based company. In that capacity, Urban was responsible for maintaining the company’s general ledger, preparing financial statements, and reconciling the company’s accounts payable and receivable and bank statements. The indictment alleges that Urban executed a scheme to defraud her employer by misusing her access to make multiple transfers from the company’s bank accounts to accounts under Urban’s control. Urban also allegedly falsified the company’s books and records to conceal the scheme. As alleged in the indictment, Urban made more than 245 fraudulent transfers from the accounts of the company totaling $1,115,344.73. According to allegations in the indictment, Urban used the embezzled funds to pay for personal expenses, including tens of thousands of dollars for mortgage, car, education, and vacation expenses, and to buy cryptocurrency. Additionally, it is alleged that Urban transferred significant amounts of embezzled funds to family members. The wire fraud charge carries a maximum penalty of 20 years in prison and a $250,000 fine. Court records show that Urban is currently in custody in Florida, serving a prison sentence for defrauding a previous employer of more than $283,000, and using the embezzled money to pay for court-ordered restitution for a prior embezzlement. The charges in the indictment are allegations and the defendant is presumed innocent unless and until proven guilty beyond reasonable doubt in a court of law. In making today’s announcement, U.S. Attorney King commended HSI and CMPD for their investigation of the case. Assistant U.S. Attorney Jenny G. Sugar of the U.S. Attorney’s Office in Charlotte is prosecuting the case.


title: Charlotte Behavioral Health Services Provider Is Indicted For Defrauding The South Carolina Medicaid Program And COVID-19 Relief Fraud

body_text: CHARLOTTE, N.C. – A Charlotte behavioral health services provider has been indicted on federal charges for allegedly defrauding the South Carolina Medicaid Program (SC Medicaid) and falsely obtaining COVID-19 relief funds, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. The 16-count federal indictment charges Ashley Nicole Cross, 41, of Charlotte, with healthcare fraud, making false writings relating to a healthcare matter, making false statements relating to a healthcare matter, promotion money laundering, wire fraud, wire fraud conspiracy, and wire fraud affecting a financial institution. Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, joins U.S. Attorney King in making today’s announcement. The Healthcare Fraud Scheme The federal indictment alleges that Cross owned and operated Odyssey Health Group (OHG), a Charlotte-based company, that was enrolled with SC Medicaid and provided outpatient behavioral health services to eligible Medicaid beneficiaries in South Carolina. From 2016 to 2021, Cross carried out an extensive healthcare fraud scheme involving the fraudulent submissions of fraudulent reimbursement claims to SC Medicaid and its contracted managed care organizations for rehabilitative behavioral health services that were never provided. The indictment alleges that Cross paid for the personal identifying information (PII) of qualified SC Medicaid beneficiaries. Cross then allegedly used the PII to file fraudulent reimbursement claims totaling at least $400,000. To further the scheme and to give the appearance that OHG’s fraudulent claims were legitimate, Cross allegedly instructed OHG employees to create fictitious patient files and clinical service notes in the names of beneficiaries. According to allegations in the indictment, in September 2019, Cross was informed of an audit into OHG’s claims. The indictment alleges that Cross submitted fictitious patient medical records and made false statements to the auditor in order to cover up the fraud. The indictment also alleges that Cross engaged in money laundering and used some of the fraudulent proceeds to promote the scheme by paying for Medicaid beneficiary names and PII. The COVID-19 Fraud Scheme According to allegations in the indictment, from April 3, 2020, to May 14, 2022, Cross executed a scheme to obtain fraudulent Paycheck Protection Program (PPP) loans on behalf of OHG and Gucci International Inc. (Gucci), a purported event planning business owned by a co-conspirator. To obtain the PPP loans, Cross submitted loan application and supporting documents that contained false statements regarding OHG’s and Gucci’s payroll expenses, number of employees, and other misrepresentations. As a result of the fraudulent PPP loan applications and supporting documents, Cross and her coconspirator obtained more than $120,000 in COVID-19 relief funds for OHG and Gucci. At the time of Gucci’s loan application, the company’s owner was under indictment for a federal offense. The charges against Cross are allegations. A defendant is presumed innocent until proven guilty beyond reasonable doubt in a court of law. A summons has been issued and Cross will appear in federal court for her initial appearance. The healthcare fraud offense carries a maximum penalty of 10 years in prison for each count in the indictment. The offense of making false writings and false statements relating to a healthcare matter carries a maximum prison sentence of five years. The promotion money laundering and wire fraud charges each carry a maximum statutory sentence of 20 years in prison per count. And the charge of wire fraud conspiracy affecting a financial institution carries a maximum penalty of 30 years in prison. The FBI investigated the case with the substantial assistance of the South Carolina Attorney General’s Office, Medicaid Fraud Investigations. Assistant U.S. Attorney Michael E. Savage of the U.S. Attorney’s Office in Charlotte is prosecuting the case.


title: Three Albuquerque Residents Indicted for COVID-19 Fraud

body_text: ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, Albert Childress, Special Agent in Charge, IRS Criminal Investigation, and Francisco B. Burrola, Special Agent in Charge of Homeland Security Investigations El Paso, announced today that Jacqueline Rascon-Chacon, Bryan Gardea, and Ricardo Landeros were indicted by a federal grand jury on charges of bank fraud, conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and engaging in monetary transactions in property derived from specified unlawful activity. All three defendants appeared in federal court today and will remain on conditions of release pending trial, which has not been scheduled. According to the indictment, Rascon-Chacon, Gardea, and Landeros allegedly obtained more than $1 million in loans and grants from programs authorized by Congress in the Coronavirus Aid, Relief, and Economic Security (CARES) Act by fraudulent means. The CARES Act was intended to provide emergency financial assistance for millions of American small businesses suffering from economic harm caused by the COVID-19 pandemic. These programs included the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) program. The United States Small Business Administration (SBA) directly paid EIDLs and grants (EIDGs) to eligible small businesses experiencing substantial financial disruptions from the COVID-19 pandemic. PPP loan applications were processed by participating lenders. Lenders funded PPP loans using their own funds, with the loans subject to a federal guaranty by the SBA. PPP loans were subject to loan forgiveness under certain circumstances. The indictment charges Rascon-Chacon and Gardea with two counts of bank fraud in relation to two business loans, each for $20,000, that were obtained by Rascon-Chacon and Gardea prior to the COVID-19 pandemic. The indictment alleges that the loan applications submitted by Rascon-Chacon and Gardea contained false information about the operations of the businesses in whose names the loans were taken out as well as false representations regarding how the proceeds of the loans would be used. The wire fraud conspiracy alleged in the indictment involved Rascon-Chacon, Gardea, and Landeros submitting loan applications containing false representations and fabricated supporting documentation to PPP lenders and the SBA. The indictment alleges that Rascon-Chacon, Gardea, and Landeros submitted loan applications in the names of defunct companies and that the applications included falsified revenue, payroll, and employment data as well as fabricated tax documents. According to the indictment, many of the applications were approved, resulting in loan proceeds being disbursed. Rascon-Chacon, Gardea, and Landeros then used these funds for unauthorized expenditures including paying off personal credit card debt, chartering a private jet from Albuquerque to Las Vegas, Nevada, and hiring a mariachi band. In addition to the wire fraud conspiracy, the indictment alleges a money laundering conspiracy in which Rascon-Chacon, Gardea, and Landeros arranged to use loan proceeds to purchase vacant lots of real property in New Mexico, fund the construction of houses on those lots, then sell the properties to home buyers for a profit. The indictment also alleges that Landeros used proceeds of a fraudulently obtained COVID-19 relief loan he obtained in the name of a defunct company to invest in a separate company he owned and operated. “During the global COVID-19 pandemic, trillions of dollars in relief flowed to those in need,” said US Attorney Alexander Uballez. “But a selfish few exploited the good will of the American people and took advantage of a once-in-a-generation public health emergency to enrich themselves. We will investigate and prosecute these fraudsters and recoup money stolen from the American people.” “Homeland Security Investigations continues to bring every asset to bear against opportunistic individuals who sought to exploit the COVID-19 pandemic for their own financial gain,” said HSI El Paso Special Agent in Charge Francisco B. Burrola. “This case exemplifies HSI’s commitment to collaborating with our law enforcement partners to investigate those who would perpetrate such financial schemes during a global health crisis.” “The IRS Criminal Investigation Phoenix Field Office is proud to fight against COVID-related fraud,” said IRS Criminal Investigation Special Agent in Charge Albert Childress. “Anyone who plans to exploit the CARES Act should know that there are serious consequences to such criminality, and our agency works diligently to ensure those individuals are held to account.” An indictment is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, each of the three defendants faces a maximum penalty of thirty years in prison and a $1 million fine, in addition to asset forfeiture and restitution. The Albuquerque Field Office of Homeland Security Investigations and the Phoenix Field Office of IRS Criminal Investigation investigated this case with assistance from the Department of Labor Office of the Inspector General and the Small Business Administration Office of the Inspector General. Assistant United States Attorney Taylor F. Hartstein is prosecuting the case. # # # 23-231


title: Fayette County Man Sentenced to 48 Months for Possession of a Firearm by a Convicted Felon

component: USAO - Kentucky, Eastern

body_text: FRANKFORT, Ky. — A Lexington man, Cleotis Wade, 50, was sentenced to 48 months in federal prison on Tuesday, by U.S. District Judge Gregory VanTatenhove, for possession of a firearm by a convicted felon. According to his plea agreement, on May 29, 2022, law enforcement encountered Wade after being dispatched to an apartment complex in Lexington. According to a witness, a man matching Wade’s description had attempted to enter her apartment, then retrieved a firearm from his vehicle and fired one or more shots into the air. Law enforcement located Wade outside the complex in a car, observed a firearm behind the passenger seat, and found a fired shell casing outside the driver side door. Wade had multiple prior felony convictions in Fayette Circuit Court, including for heroin trafficking in 2014 and burglary in 2011. As a convicted felon, Wade was prohibited from possessing a firearm. Wade pleaded guilty to the current charge in March 2023. Under federal law, Wade must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the U.S. Probation Office for three years. Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Shawn Morrow, Special Agent in Charge, ATF, Louisville Field Division; and Chief Lawrence Weathers, Lexington Police Department, jointly announced the sentence. The investigation was conducted by ATF and the Lexington Police Department. The United States was represented by Assistant U.S. Attorney Cindy Rieker. This case was prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, U.S. Attorney Shier coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials. -END-