title: Former Correctional Officer Sentenced to Prison for Violating Inmate's Civil Rights

body_text: BOSTON – A former senior Correctional Officer at U.S. Bureau of Prisons Federal Medical Center in Devens (FMC Devens) was sentenced today in federal court in Boston for using excessive force on an inmate. Seth M. Bourget, 42, of Woodstock, Conn., was sentenced by U.S. District Court Judge Denise J. Casper to one year and one day in prison and two years of supervised release. In December 2022, Bourget was convicted by a federal jury of one count of deprivation of civil rights under color of law. On or about June 18, 2019, Bourget struck a handcuffed inmate suffering from severe mental disorders with a large protective shield with excessive force, causing serious head injuries. Specifically, on the day of the incident, the inmate was acting out and not prepared for his move to a different unit. Evidence at trial established that the inmate was sprayed in the face with pepper spray and locked in a cell with his hands cuffed behind his back for approximately 45 minutes. As a result, the inmate was in an agitated state and unable to consistently engage in a coherent conversation or understand regular verbal commands. Bourget and other officers prepared to conduct a use of force on the inmate involving a train of five men entering the cell – which Bourget volunteered to lead using a protective shield. Trial evidence established that, upon entry into the cell, Bourget thrust the protective shield upward and struck the handcuffed inmate in the chin area, snapping the inmate’s head back and causing the inmate to fall back onto the concrete cell floor. The resulting impact caused significant injury to the inmate’s head, including lacerations that required 12 staples and a gash on his lip that required six sutures. “Corrections officers are placed in a position of public trust and the overwhelming majority of correctional officers do their jobs with professionalism, respect and dedication to protect and serve. In this case, a jury unanimously found that Mr. Bourget abused his position of authority when he violently struck a mentally ill and defenseless inmate,” said Acting United States Attorney Joshua S. Levy. “This office will continue to hold accountable bad actors who abuse their power and violate the public’s trust in them.” “No inmate should experience abuse at the hands of a Federal Bureau of Prisons employee. Bourget assaulted an inmate using excessive force, and today’s sentencing shows that those who abuse their power will be held accountable for their actions,” said Ryan T. Geach, Special Agent in Charge of the Department of Justice Office of the Inspector General New York Field Office. “Corrections officer Seth Bourget betrayed the public trust when he violently struck a severely mentally ill inmate who was handcuffed inside a locked cell. Today’s sentence holds him accountable for his blatant disregard for the laws he swore to uphold, and the civil rights he violated,” said Christopher DiMenna. Acting Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “As law enforcement officers, we are all bound by oath to serve all citizens equally, with compassion, professionalism, dignity, and respect which clearly did not happen in this case.” Acting U.S. Attorney Levy; DOJ-OIG New York Field Office SAC Geach; and FBI Acting SAC DiMenna made the announcement today. Assistant U.S. Attorneys Neil J. Gallagher Jr. of the Public Corruption Unit and Torey B. Cummings of the Civil Rights & Human Trafficking Unit prosecuted the case.


title: Grand Jury Indicts Seven Defendants For Their Roles In Rochester Illegal Sports Gambling Business

component: USAO - New York, Western

body_text: ROCHESTER, N.Y. – U.S. Attorney Trini E. Ross announced today that a federal grand jury has returned an indictment charging seven individuals for their roles in an illegal gambling business headquartered in Rochester, NY. Named in the indictment are: Louis P. Ferrari II, Dominic Sprague, and Tomasso Sessa are charged with two counts of conspiracy, one count of transmission of wagering information, and two counts of operating an illegal gambling business. Anthony Amato, Joseph Lombardo, Jeffrey Boscarino, and James Civiletti are charged with one count of conspiracy, one count of transmission of wagering information, and one count of operating an illegal gambling business. Assistant U.S. Attorney Meghan K. McGuire, who is handling the case, stated that according to the indictment and a previously filed complaint, the defendants conspired to operate illegal poker games at 565 Blossom Road and an illegal sports betting operation through the website sport700.com. Defendants Ferrari and Sprague co-owned and operated the illegal poker games at 565 Blossom Road, and Ferrari operated the illegal sports betting book through sport700.com, managing individual bettors and overseeing sub-agents, including Sprague, who had their own books of individual bettors. In addition, Ferrari owns and operates Ferrari Excavating on Steel Street in Rochester, where he collected cash payment of gambling losses from players and then laundered the illegal proceeds through the Ferrari Excavating business. Sprague also owned and operated a pawn shop on Stone Road in Greece, NY, where he collected cash payments of gambling losses from bettors and paid gambling winnings to bettors. Defendant Amato administrated sport700.com and assisted Ferrari and others in creating accounts, usernames, and passwords, and managing individual bettors and overseeing sub-agents who had their own books of individual bettors on sport700.com. Defendant Sessa managed the day-to-day operations of the illegal gambling operation at 565 Blossom Road. Defendants Lombardo and Boscarino were sub-agents under Ferrari through sport700.com. Defendant Civiletti was an employee of Sprague’s pawn shop, collecting payments of gambling losses from people on behalf of Ferrari and Sprague. During the course of the investigation, investigators intercepted a series of calls and text messages between targets of the investigation, sub-agents and individual bettors discussing the placement of bets, collection of winnings, and payment of losses. The investigation revealed that Ferrari generated $1,241,172 in winnings, while Amato generated winnings totaling $8,945,629. On April 17, 2021, as investigators arrived to execute a search warrant at 565 Blossom Road, they interrupted an ongoing illegal card game, which sent individuals fleeing. An unknown number of individuals successfully fled, eight were temporarily detained. Investigators seized multiple items such documents, which included gambling ledgers and timestamped website printouts of online gambling player account activities. That same day, they also seized the cell phones of Ferrari and Sprague, which both contained evidence of sports bookmaking. Former New York State Trooper Thomas Loewke, who was charged separately in connection with this case, was previously convicted and is awaiting sentencing. Defendants Ferrari, Lombardo, and Civiletti were arraigned this afternoon before U.S. Magistrate Judge Mark W. Pedersen and were released on conditions. Defendants Sprague and Amato will be arraigned on July 11, 2023, and defendants Boscarino and Sessa will be arraigned on July 12, 2023. The indictment is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Matthew Scarpino, the Internal Revenue Service, Criminal Investigation, under the direction of Special Agent-in-Charge Thomas Fattorusso, the New York State Police, under the direction of Major Brian Ratajczak, the Greece Police Department, under the direction of Chief Michael Wood, and Rochester Police Department, under the direction of Chief David Smith. Additional assistance was provided by the Monroe County District Attorney’s Office. 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: Kratom Company and Owner Plead Guilty

component: USAO - California, Southern

body_text: NEWS RELEASE SUMMARY – July 10, 2023 SAN DIEGO – Nine2Five LLC and its owner, Sebastian Guthery, pleaded guilty in federal court today to felony crimes related to the illegal importation of kratom, an opioid-like plant, and the subsequent laundering of proceeds from the sale of the illegally imported product. Mitragyna speciosa , commonly known as kratom, is indigenous to Southeast Asia. Its leaves, when ingested, have both narcotic and stimulant-like effects. According to the U.S. Food and Drug Administration (FDA), the use of kratom is associated with serious health risks, including but not limited to seizures, liver damage, addiction, and death. Side effects may also include respiratory depression, nervousness, agitation, aggression, sleeplessness, hallucinations, delusion, tremors, loss of libido, constipation, nausea, vomiting, and severe withdrawal signs and symptoms. On February 28, 2014, the FDA issued Import Alert 54-15, which directed inspectors to detain products that appeared to contain kratom as well as named product from specified firms without inspection, and to deny them entry into the United States. The Import Alert stated that the FDA had determined kratom to be a new dietary ingredient under section 413(d) of the Act, and deemed products intended for human consumption containing kratom to be adulterated food under section 402(f)(1)(B) of the Act because there was inadequate information to provide reasonable assurance that the new dietary ingredient kratom did not present a significant or unreasonable risk of illness or injury. This Import Alert remains in effect. In pleading guilty, defendant Guthery admitted that, as the owner and operator of Nine2Five LLC, he caused the importation of 9,800 kg of kratom from Indonesia through a consignee named Middleton Central, LLC, by means of an invoice which falsely declared the product to be Flora Food Botanical Soil Conditioner ( Eucheuma spinosum )/fertilizer, without reasonable cause to believe that was true. The invoice submitted on May 16, 2018, with the entry package, stated that the value of the goods was $61,728. Defendant Nine2Five, LLC, in pleading guilty to money laundering, admitted that a Nine2Five, LLC. employee wired $60,000 from an account of Nine2Five, LLC at Wells Fargo Bank in San Diego, California, to Bank Mandiri in Indonesia for the cost of the purchase, transportation and importation of kratom from Indonesia on May 15, 2018. The funds constituted criminally derived proceeds of the illegal importation of kratom in the manner acknowledged by Guthery in his plea, which constituted a violation of Title 18, United States Code, Sections 542 and 545. “Making false declarations about the nature of products imported into the United States will not be tolerated,” said U.S. Attorney Randy Grossman. “The Department of Justice and our agency partners are committed to protecting our nation from importation crimes and related offenses.” Grossman thanked the prosecution team plus the Internal Revenue Service, Homeland Security Investigations, and Customs and Border Protection agents for their excellent work on this case. “HSI San Diego is deeply immersed in the global fight against illegal importation and money laundering,” said Chad Plantz, special agent in charge for HSI San Diego. “Attempting to smuggle even more harmful substances into our communities will not be tolerated. Further, deceiving law enforcement is illegal and by doing so only increases the severity of penalties. HSI is actively engaged with law enforcement partners and task forces to bring perpetrators who knowingly and willingly break the law to justice.” “Sebastian Guthery and Nine2Five LLC went unchecked by mislabeling imports of kratom to evade detection and inspection by U.S. authorities and laundering the criminally derived proceeds internationally to purchase more kratom. The import laws and regulations are in place to protect our citizens and our nation,” said Tyler Hatcher, Special Agent in Charge of IRS Criminal Investigation Los Angeles Field Office. “This should put the kratom industry on notice, illegally importing products into the United States for your own financial gain is a crime and disregarding U.S. import laws and import alerts will not go unnoticed, you will be held accountable.” Sentencing for both defendants is scheduled to take place on October 6, 2023 at 9:30 a.m. before U.S. District Judge Todd W. Robinson. DEFENDANTS Case Number 23cr179-TWR Nine2Five, LLC Formed: 2012 Carlsbad, CA Sebastian Guthery Age: 40 Carlsbad, CA SUMMARY OF CHARGES Defendant Sebastian Guthery Entry of Goods by Means of False Statement – Title 18, U.S.C., Section 542 Maximum Penalty: Two years in prison and/or $250,000 fine Defendant Nine2Five LLC Money Laundering – Title 18, U.S.C., Section 1957 Maximum penalty: Five years of probation and $500,000 fine for an organization AGENCIES Internal Revenue Service Homeland Security Investigations Customs and Border Protection


title: Illinois Man Sentenced to Federal Prison for Possessing Over 900 Grams of Heroin and Fentanyl

component: USAO - Iowa, Northern

body_text: A man who possessed 975.7 grams of heroin and fentanyl was sentenced today to more than 7 years in federal prison. Matthew J. Moreno, age 43, from Riverdale, Illinois, received the prison term after a February 3, 2023 guilty plea to one count of possession with intent to distribute and aiding and abetting the possession with intent to distribute a controlled substance. Evidence at the plea and sentencing hearings showed that Moreno was a passenger in a car that the Iowa State Patrol stopped for speeding. The driver of the vehicle, Donald Ray Owens, fled from officers, and a high-speed chase followed before the car ultimately crashed. During the chase, someone threw a vacuum‑sealed package out of the car which contained 975.7 grams of heroin and fentanyl. Officers also found over $17,000 in cash in Moreno’s and Owens’s possession. Moreno was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Moreno was sentenced to 87 months’ imprisonment. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system. On March 15, 2023, Owens pled guilty to one count of possession with intent to distribute and aiding and abetting the possession with intent to distribute a controlled substance. Owens is scheduled to be sentenced on August 8, 2023. Moreno is being held in the United States Marshal’s custody until he can be transported to a federal prison. The case was prosecuted by Assistant United States Attorney Jason Norwood and Special Assistant United States Attorney Adam J. Vander Stoep and was investigated by the Iowa State Patrol, the Iowa County Sheriff’s Office, and the Iowa Division of Narcotics Enforcement. Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl . The case file number is 22-CR-32. Follow us on Twitter @USAO_NDIA.


title: Methamphetamine Trafficker Who Purchased Drugs from Mexico Sentenced to Federal Prison

body_text: A man who purchased two pounds of methamphetamine to sell in Iowa was sentenced today to more than twelve years in federal prison. Drew Scarborough, age 25, from Evansdale, Iowa, received the prison term after a December 28, 2022 guilty plea to conspiracy to distribute a controlled substance. Information at sentencing showed that, in 2020, Scarborough became involved in a large-scale drug trafficking organization with ties to organized crime in Mexico. Scarborough purchased two pounds of methamphetamine from a source in Mexico, but due to his failure to pay the source, he was unable to obtain additional methamphetamine. Scarborough had previously threatened to kill another member of the drug conspiracy on behalf of the source. Scarborough was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Scarborough was sentenced to 150 months’ imprisonment, and he must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system. Scarborough is being held in the United States Marshal’s custody until he can be transported to a federal prison. The case was prosecuted by Assistant United States Attorneys Dillan Edwards and Emily Nydle. This case was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Tri-County Drug Enforcement Task Force, the Federal Bureau of Investigation, the Iowa Division of Narcotics Enforcement, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Black Hawk County Sheriff’s Office, the Green County Sheriff’s Office, and the Elbert County, Colorado Sheriff’s Office. Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl . The case file number is 21-CR-02049. Follow us on Twitter @USAO_NDIA.


title: Marion Man Sentenced to Six Months in Federal Prison for Being a Felon in Possession of Firearms

body_text: A felon who possessed firearms was sentenced today to six months in federal prison. Tyler Maus, age 30, of Marion, received the sentence after a December 8, 2022 guilty plea to one count of being a felon in possession of firearms. At the plea hearing, Maus admitted that, on December 5, 2021, he possessed four pistols after having been convicted of four felonies. Maus was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Maus was sentenced to six months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. This case was brought as part of Project Safe Neighborhoods (PSN). PSN is 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 prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Hiawatha Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Marion Police Department, and the Iowa Division of Criminal Investigation. Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl . The case file number is CR 22-49. Follow us on Twitter @USAO_NDIA.


title: Upland Man Convicted of Felon in Possession of Firearms

component: Federal Bureau of Investigation (FBI)

body_text: Acting United States Attorney Susan T. Lehr announced that Donald Greuter, Jr., 57, of Upland, Nebraska, was sentenced on June 29, 2023, by Senior United States District Court Judge John M. Gerrard to a term of 114 months’ imprisonment following his conviction for being a felon in possession of firearms. After he completes his prison sentence, Greuter will also serve three years on supervised release. There is no parole in the federal system. In December of 2019, Greuter was on parole for a felony drug distribution conviction. As a convicted felon, Greuter was prohibited from possessing firearms and ammunition. On January 8, 2020, police and parole officers went to Greuter’s home in Upland to conduct a parole search of his property. At the time, Greuter resided with his significant other, Tricia Easley. While at Greuter’s home, investigators learned that he also owned the property next door, which contained a house. Greuter acknowledged that he owned that property and gave investigators the keys to make entry. Once inside, officers noticed several containers of live ammunition in various calibers. In the same room, officers saw a large combination safe that was locked. Between the safe and the wall, officers found two 12-gauge shotguns inside a gun case. Investigators obtained a search warrant for both properties and recovered 30 firearms, including eight pistols, eight shotguns, 16 rifles, and several thousand rounds of ammunition. Among the firearms located in the safe was a short shotgun, a defaced rifle, two stolen guns, a 50-caliber rifle, and three semiautomatic rifles with high-capacity magazines. In total, investigators located 32 firearms and more than 4,000 rounds of ammunition. Four of the firearms recovered by investigators were found to have been purchased at a Grand Island pawn shop. Greuter’s significant other, Tricia Easley, said she purchased these firearms at Greuter’s request and transferred the firearms to him. Greuter provided her with the money to pay for the guns and told her to pick them up from the pawn shop. Greuter was present during more than one of these gun purchases. Pawn shop employees, who were familiar with Greuter, observed him handle at least one of the firearms purchased. A special agent for the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) examined the guns and ammunition and determined that they were manufactured outside the State of Nebraska. For her part, Easley pleaded guilty to transferring a firearm to a prohibited person and is set to be sentenced on August 2, 2023. This case was investigated by the Nebraska State Patrol and the Trident Drug Task Force, which is made up of officers from the Grand Island Police Department, Hall County Sheriff, Hastings Police Department, Adams County Sheriff, Kearney Police Department, Buffalo County Sheriff, Nebraska State Patrol, Homeland Security Investigations, and the Federal Bureau of Investigation.


title: Muskogee Man Sentenced For Assault And Firearms Crimes

component: USAO - Oklahoma, Eastern

body_text: MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Michael Ray Zuniga, age 29, of Muskogee, Oklahoma, was sentenced to a term of imprisonment of 40 months for one count of Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country, and a term of imprisonment of 120 months for one count of Use, Carry, Brandish, and Discharge of a Firearm During and in Relation to a Crime of Violence. The sentences were ordered to run consecutively. The charges arose from investigations by the Muskogee Police Department and the Oklahoma State Bureau of Investigation. On July 19, 2022, Zuniga pleaded guilty to a superseding indictment of Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country, and Use, Carry, Brandish, and Discharge of a Firearm During and in Relation to a Crime of Violence. At the plea hearing, Zuniga admitted to striking the victim in the face with a 9 mm caliber firearm and firing the gun at the victim. The crimes occurred within the boundaries of the Muscogee (Creek) Nation Reservation, in the Eastern District of Oklahoma. The Honorable Timothy D. DeGiusti, Chief U.S. District Judge in the United States District Court for the Western District of Oklahoma, sitting by appointment, presided over the hearing in Muskogee, Oklahoma. Zuniga will remain in custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve the non-paroleable sentence. Assistant United States Attorney Benjamin D. Traster represented the United States at the sentencing hearing.


title: Idabel Resident Sentenced For Assault With The Intent To Commit Murder

body_text: MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Lawrence Samuel McKinney, age 36, of Idabel, Oklahoma, was sentenced to 210 months in prison for one count of Assault with the Intent to Commit Murder. The charges arose from investigations by the Choctaw Nation Tribal Police and the Federal Bureau of Investigation. On March 28, 2022, McKinney pleaded guilty to one count of Assault with the Intent to Commit Murder. At the plea hearing, McKinney admitted that he drove to Broken Bow, Oklahoma, and shot the victim with a shotgun with the specific intent to commit murder. The victim survived the shooting. The crime occurred in McCurtain County, within the boundaries of the Choctaw Nation Reservation, in the Eastern District of Oklahoma. The Honorable Patrick R. Wyrick, U.S. District Judge for the Western District of Oklahoma, sitting by appointment, presided over the hearing in Muskogee. McKinney will remain in custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration. Assistant United States Attorney Ryan Conway represented the United States.


title: LeFlore County Resident Pleads Guilty To Possession With Intent To Distribute Methamphetamine

component: Drug Enforcement Administration (DEA)

body_text: MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that David Glen Berryhill, Jr., age 50, of LeFlore County, Oklahoma entered a guilty plea to an Indictment of one count of Possession with Intent to Distribute Methamphetamine. The Indictment alleged that on or about January 25, 2023, Berryhill possessed at least 500 grams of a mixture and substance containing a detectable amount of methamphetamine. The charge arose from an investigation by the Drug Enforcement Administration, the Oklahoma Bureau of Narcotics, and the Oklahoma Highway Patrol. According to law enforcement reports, Berryhill was stopped by an Oklahoma Highway Patrol Trooper for a traffic violation on Highway 69 near Checotah, Oklahoma. During the stop, a certified drug dog alerted on Berryhill’s vehicle for the presence of narcotics. Troopers subsequently found approximately 2 kilograms of methamphetamine in the vehicle. The Honorable Gerald L. Jackson, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report. Berryhill will remain in the custody of the U.S. Marshal pending sentencing. Assistant United States Attorney Erin Cornell represented the United States.


title: Carter County Resident Pleads Guilty To Multiple Counts Of Distributing Methamphetamine

body_text: MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Justin Earl Wilson, age 37, of Ardmore, Oklahoma, pleaded guilty plea to five counts of Distribution of Methamphetamine. The Indictment alleged that in late 2021 and early 2022 Wilson distributed methamphetamine on five separate occasions from two houses located in Ardmore, Oklahoma. The charges arose from an investigation by the Carter County Sheriff’s Office, the Oklahoma Bureau of Narcotics, and the Drug Enforcement Administration. The Honorable Gerald L. Jackson, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report. Wilson will remain in the custody of the U.S. Marshal pending sentencing. Assistant United States Attorney Richard Lorenz represented the United States.


title: White Earth Felon Sentenced to Five Years in Prison for Fentanyl Trafficking and Illegal Possession of a Firearm

component: USAO - Minnesota

body_text: MINNEAPOLIS – A Ponsford man has been sentenced to 60 months in prison followed by four years of supervised release for possessing a firearm as a felon and distributing fentanyl on the White Earth Indian Reservation, announced United States Attorney Andrew M. Luger. According to court documents, in January 2022, law enforcement received information that Francis Edward Durant, 52, was selling controlled substances from his residence on the White Earth Reservation. Law enforcement executed a search warrant at Durant’s residence and recovered quantities of fentanyl, a loaded Smith & Wesson .45 caliber handgun, $9,612 in cash, and other drug trafficking paraphernalia. Because Durant has prior felony convictions, he is prohibited from possessing a firearm or ammunition at any time. Durant pleaded guilty on December 5, 2022, to one count of possession with intent to distribute fentanyl and one count of possessing a firearm as a felon. Durant was sentenced today in U.S. District Court before Senior Judge Joan N. Ericksen. This case was the result of an investigation conducted by the White Earth Police Department and the Paul Bunyan Drug Task Force. This case was prosecuted by Assistant U.S. Attorney Bradley M. Endicott.


title: 2 Central Ohio men arrested in robbery incident that resulted in shooting of Columbus police officer

component: USAO - Ohio, Southern

body_text: COLUMBUS, Ohio – Two Central Ohio men have been arrested and charged federally for their alleged roles in robberies that resulted in the July 6 shooting of a Columbus police officer. Aden Abdullahi Jama, 20, of Reynoldsburg, was arrested this afternoon at Chicago O’Hare International Airport by United States Marshals and HSI agents. Jama had purchased a flight leaving at 12:35pm for the country of Turkey. Fazsal M. Darod, 23, of Columbus, was arrested in the early morning hours of July 7 outside his residence in Columbus by the United States Marshals’ Southern Ohio Fugitive Apprehension Strike Team. Both men are charged with aiding and abetting a bank robbery and aiding and abetting the use of a firearm during a crime of violence. According to affidavits filed in support of criminal complaints, on July 6 at approximately 2:13pm, Jama, Darod and a third suspect allegedly stole a black Porsche SUV from Byer Imports Car Lot on North Hamilton Road in Columbus. The defendants then allegedly participated in a robbery at approximately 4pm at the Fifth Third Bank on Hilliard Rome Road in Hilliard. An armed suspect stole thousands of dollars before fleeing in a black Porsche SUV. A few minutes later, Columbus police officers encountered the stolen vehicle and suspects on Interstate 70 East near West Mound Street. During the encounter, a Columbus police officer was struck by gunfire and seriously wounded. One of the suspects was also shot and died at the scene. Jama and Darod allegedly fled from the scene on foot and avoided immediate apprehension. Officers recovered two firearms from the scene: a Glock handgun with an extended magazine and a semiautomatic handgun. Aiding and abetting a bank robbery is a federal crime punishable by up to 20 years in prison. Aiding and abetting the use of a firearm during a crime of violence carries a potential penalty of at least five years and up to life in prison. Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Daryl S. McCormick, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives; Columbus Police Chief Elaine Bryant; the United States Marshals in Columbus and Chicago; ICE and HSI Chicago; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; the Whitehall, Minerva Parka and Upper Arlington police departments; and Franklin County Sheriff Dallas Baldwin announced the charges. Assistant United States Attorney Noah R. Litton is representing the United States in this case. A criminal complaint merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law. # # #


title: Florida Man Pleads Guilty to Federal Hate Crimes for Racially Motivated Attacks on Two Black Women

component: Civil Rights - Criminal Section

body_text: A Florida man pleaded guilty yesterday to two federal hate crimes for attacking two Black women with a gun. According to the plea agreement, using force or a threat of force, Frederick Eugene Pierallini III, 27, willfully intimidated the victims and interfered with their enjoyment of federally protected activities because of their race and color. Victim 1 was enjoying her private employment, and Victim 2 was enjoying a facility provided by the state of Florida. Specifically, on Sept. 10, 2022, Pierallini went to Daily’s Place, a convenience store, located at 620 Chaffee Road South in Jacksonville, Florida. Victim 1 was working there as a clerk at the register. Pierallini attempted to buy snacks at the register, but his card was declined. He then attempted to walk out of the store with unpaid merchandise. Pierallini ultimately returned, scolding Victim 1 for not knowing how to do her job and directing racial slurs at her. Pierallini left the store, retrieved a shotgun from his car, pointed it at Victim 1 and cocked it by pulling the slide back to open the chamber and load a bullet into it. Victim 1 ran away in fear. Pierallini used racial slurs throughout the encounter. Two days later, on Sept. 12, 2022, Pierallini approached Victim 2 as she was sitting in her walker on the public sidewalk near 1571 University Boulevard West. He directed racial slurs at her and told her that she could not sit where she was. Pierallini also threatened to kill Victim 2. He then left, returned with a shotgun and fired a single shot. “The defendant is being held accountable for targeting two Black women with a gun on two separate days because of their race and because they were engaging in federally protected activities,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Racially motivated threats and acts of violence have no place in our society today. The Justice Department stands ready to investigate and prosecute individuals who target Black people with threats and acts of violence.” “The defendant in this case committed a vile assault on two women with a dangerous weapon because of their race,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “These actions were repugnant and endangered the women’s and the public’s safety. We will continue to work with our law enforcement partners to counter crimes like these with the full force of the law.” “Investigating these acts and seeking justice remains a top priority for the FBI and our partners because hate crimes are not only an attack on the victim – they are meant to threaten and intimidate an entire community,” said Special Agent in Charge Sherri E. Onks of the FBI Jacksonville Field Office. “There is no place for hate and racism, and no one should ever fear they could be targeted in an act of violence based on how they look, where they’re from or any part of their identity. The team at FBI Jacksonville is proud to work alongside our partners at the Jacksonville Sheriff’s Office to protect all members of this community.” A sentencing hearing has not yet been scheduled. For each count, Pierallini faces a maximum of 10 years in prison, three years of mandatory supervised release and a fine up to $250,000. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Assistant Attorney General Clarke, U.S. Attorney Handberg and Special Agent in Charge Onks made the announcement. The FBI Jacksonville Field Office and the Jacksonville Sheriff’s Office investigated the case. Assistant U.S. Attorney Ashley Washington for the Middle District of Florida and Trial Attorney Anna Gotfryd of the Civil Rights Division’s Criminal Section are prosecuting the case.


title: Former President of Beauty Career Training School Sentenced to Federal Prison

component: USAO - Louisiana, Western

body_text: SHREVEPORT, La. - United States Attorney Brandon B. Brown announced that Janola Massaquoi , 41, of Shreveport, Louisiana was sentenced late yesterday by United States District Judge S. Maurice Hicks, Jr. for making false statements to a federal agency in connection with the application for a CARES Act loan. Massaquoi was sentenced to 12 months and 1 day in prison and ordered to pay restitution in the amount of $250,000. She will serve 3 years of supervised release following her release from prison. In March 2020 Congress enacted the Coronavirus Aid, Relief and Economic Security (CARES) Act which was designed to provide emergency financial assistance to the millions of Americans who were suffering the economic effects caused by the COVID-19 pandemic. As part of the CARES Act, the Small Business Administration (SBA) provided Economic Injury Disaster Loans (EIDL), which were low-interest financing to small businesses, renters and homeowners in regions affected by declared disasters. The CARES Act also provided authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through a program referred to as the Paycheck Protection Program (“PPP”). In 2018, Massaquoi formed the Jane Elizabeth Education Group (JEEG) and also served as the president of a beauty career training company. In 2020, she applied to the SBA for an EIDL in the name of JEEG d/b/a Company 1 seeking approximately $500,000 in EIDL Program funds. At the same time, she applied for a PPP loan in the name of JEEG d/b/a Company 1 seeking $178,750. As part of the EIDL application process, in April 2020, Massaquoi electronically submitted to the SBA a Loan Authorization and Agreement in which she certified to the SBA that “[JEEG] will not, without the prior written consent of SBA, make any distribution of Borrower’s assets, or give any preferential treatment, make any advance, directly or indirectly, by way of loan, gift, bonus, or otherwise to any owner or partner…” She also certified that the loan funds would be used solely as working capital for JEEG. Both loan applications were subsequently approved. Based on her material misrepresentations set forth in the false Loan Authorization and Agreement, the SBA disbursed approximately $500,000 in EIDL benefits to a bank account held by Company 1. On April 23, 2020, approximately $178,750 in PPP loan benefits were disbursed to a bank account held by Company 1. In reality and unbeknownst to the SBA, Massaquoi intended to make a large advance directly to herself and did not intend to use the EIDL funds solely as working capital for JEEG. After obtaining the loan benefits, Massaquoi transferred funds from Company 1’s bank account to other bank accounts she personally controlled and used the funds for a variety of personal expenses including a down payment on the purchase of a personal residence and mortgage payments. Massaquoi also withdrew over $30,000 in cash, transferred over $50,000 to friends and family members, and used approximately $83,000 to fund her personal investment and retirement accounts. In total, Massaquoi used $250,000 of the EIDL proceeds for her personal use. “Because of the selfish actions of this defendant and her choice to defraud the government out of over $250,000 for her own personal gain, she now rightfully stands as a convicted felon and will spend time behind bars,” said U.S. Attorney Brandon B. Brown. “These types of cases are part of why we have been called to do what we do at the United States Attorney’s Office. It is our sole responsibility to investigate and prosecute these types of cases. The CARES Act was designed to help those with businesses that were suffering due to the COVID-19 pandemic, not to line their own personal pockets to the detriment of the American taxpayer. We will bring those who steal federal taxpayer dollars to justice as these types of cases remain a priority for our office and the department. Our office will continue to aggressively prosecute these offenders in Shreveport, Monroe, Alexandria, Lafayette, Lake Charles and all points in between.” “Massaquoi represents a growing number of people who fraudulently received funds under the CARES Act and utilized them for personal gain,” said Demetrius Hardeman, Acting Special Agent in Charge, Atlanta Field Office. “However, IRS Criminal Investigation and our federal law enforcement partners uncovered her deceitfulness and her sentencing is evidence that greed does not pay." The case was investigated by the Department of Treasury, Inspector General for Tax Administration, and Internal Revenue Service-Criminal Investigation and prosecuted by Assistant U.S. Attorney Seth D. Reeg. On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department of Justice’s response to the pandemic, please visit https://www.justice.gov/coronavirus . Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form . # # #


title: Johnston Man Arrested, Federal Firearm Charges Filed in Seizure of Firearm Silencers and Device to Convert an AR-15 to an Automatic Weapon

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

body_text: PROVIDENCE – Federal charges have been filed against a Johnston man following the seizure of two firearm silencers, one of which was attached to a rifle, and a “lightning link” auto sear (a device used to turn a semi-automatic rifle into an automatic weapon), announced United States Attorney Zachary A. Cunha. Alessio Dandrea, 27, has been charged by way of a federal criminal complaint with possession of an unregistered firearm silencer and unlicensed importation/transportation of a machine gun from foreign commerce. According to charging documents, on June 14, 2023, U.S. Customs and Border Protection intercepted a parcel shipped from China addressed to Dandrea that, upon inspection, was found to contain an AR-15 “lightning link” auto sear. The seized lightning is classified as a machine gun by the ATF and is designed to modify the semi-automatic function/capability of an AR-15, rendering it capable of firing as an automatic weapon. The possession or transfer of an unregistered drop-in auto sear is prohibited by the National Firearms Act. A court-authorized search of Dandrea’s residence on Thursday by agents and officers from Homeland Security Investigations, ATF, and the Johnston Police Department resulted in the seizure of six firearms and two firearm silencers, one of which was attached to a rifle. An investigation into Dandrea revealed that the two silencers were not registered to him, rendering their possession illegal under federal law. Dandrea is scheduled to make an initial appearance before U.S. District Court Magistrate Judge Patricia A. Sullivan today at 2:00 pm. A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty. The case is being prosecuted by Assistant U.S. Attorney G. Michael Seaman. The matter was investigated by Homeland Security Investigations, U.S Postal Inspection Service, Bureau of Alcohol Tobacco Firearms and Explosives, with assistance from the Johnston, Warwick, Providence, Central Falls, and Pawtucket Police Departments. 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. ### dandrea_criminal_complaint.pdf


title: National Grid Agrees to Pay $5.38 Million For Natural Resource Damages

component: Energy and Natural Resources Division

body_text: National Grid has agreed to pay $5.38 million to federal and state natural resource trustees to resolve claims for natural resource damages from releases of hazardous chemicals connected to the former Gloucester Gas Light Company located in Gloucester, Massachusetts. Between 1854 and 1952, the former Gloucester Gas Light Company operated a manufactured gas plant along the Gloucester waterfront. The plant used industrial processes to produce manufactured gas from coal and oil. Manufactured gas plants, which were common before the development of natural gas pipelines, often yielded by-products such as tars, sludges, and oils. Production at the gas plant ended in the early 1950s, and ownership changed to the North Shore Gas Company, a predecessor of the current owner, National Grid. Hazardous chemicals released by the former manufactured gas plant contaminated soils and groundwater, as well as sediment in the adjacent Gloucester Harbor. Those contaminants resulted in injuries to natural resources in Gloucester Harbor. “This settlement will provide funding for federal and state agencies to undertake critical habitat restoration work in the coastal areas in the vicinity of the former impacted by Gloucester Gas Light Company’s plant,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “Coastal wetlands provide vital habitat for many species of fish and wildlife as well as protect neighboring communities from storm surges and rising sea levels from climate change,” said Acting Regional Director Kyla Hastie of the Fish and Wildlife Service Northeast Region. “The settlement will allow the trustees to fund restoration projects in Coastal Massachusetts to make communities safer and improve wildlife habitat for impacted species.” “This settlement is an important step toward addressing years of pollution in Gloucester Harbor that injured the community's natural resources,” said Director for Habitat Conservation for Fisheries Carrie Selberg Robinson of the National Oceanic and Atmospheric Administration (NOAA). “We look forward to working with the other trustees to restore habitat that will support Gloucester well into the future.” “Gloucester Harbor provides vital maritime, recreational, and ecological services to the public. This settlement will ensure that the public is compensated for the natural resource injuries that resulted from the decades-long release of hazardous substances into the Harbor,” said Massachusetts Attorney General Andrea Joy Campbell. “We thank our state and federal partners for working with us to achieve this important outcome.” “This settlement will meaningfully address decades of environmental harm and restore wetlands and other aquatic resources. The Commonwealth and its trustee partners will ensure that stakeholders and officials in Gloucester will be active participants in the process to utilize these funds for restorative environmental projects,” said Secretary Rebecca Tepper of the Massachusetts Executive Office of Energy and Environmental Affairs. “We appreciate the work of the Department of Justice and Attorney General Campbell in bringing about this resolution for the Gloucester Harbor.” Under the Comprehensive Environmental Response, Compensation, and Liability Act, parties that have disposed of hazardous substances at a site are liable for damages, injury to, destruction of, or loss of natural resources. The natural resource trustees for the site are the U.S. Department of the Interior, through the U.S. Fish and Wildlife Service, the NOAA, and the Secretary of the Massachusetts Executive Office of Energy and Environmental Affairs. Massachusetts state law affords the Commonwealth a similar right to recover damages for injuries to natural resources. The trustees determined that the hazardous substances released from the former Gloucester Gas Light Company’s manufactured gas plant contaminated waters and sediments in Gloucester Harbor, resulting in injury to these natural resources that serve as habitats for fish and wildlife species. National Grid is remediating those contaminants under Massachusetts state law. In settlement of the trustees’ natural resource damages claims, National Grid has agreed to pay $80,000 to reimburse federal and state trustees for damage assessment costs and $5.3 million to compensate the public for natural resource injuries to Gloucester Harbor, which the trustees, working with the public, will use to implement one or more natural resource restoration projects. The defendant previously paid about $475,000 to reimburse federal and state trustees for prior damage assessment costs incurred at the site. The Justice Department is seeking public comments on the settlement for a period of 30 days from publication of a notice of the settlement, which will appear in the Federal Register. View a copy of the settlement here . For more information about the Former Gloucester Gas Light Company case, see www.darrp.noaa.gov/hazardous-waste/former-gloucester-gas-light-company.


title: Former Eastern Kentucky Correctional Supervisor Indicted for Covering Up the Assault of a Restrained Inmate

component: Civil Rights Division

body_text: A former Eastern Kentucky Correctional Complex (EKCC) sergeant was indicted by a federal jury in Lexington, Kentucky, for three counts of obstruction based on his efforts to cover up the assault of a restrained inmate by multiple officers that he supervised. The indictment alleges that on July 24, 2018, Sgt. Eric L. Nantell, 47, watched lower-ranking EKCC correctional officers assault a nonviolent inmate who was lying face-down, wearing handcuffs and leg shackles, and isolated in a prison shower cell. The indictment specifically alleges that Nantell, who at that time held the rank of sergeant, stood outside of the shower during the assault and that he later attempted to cover up what happened by lying to the EKCC supervisor assigned to investigate the incident, a Kentucky State Police (KSP) detective, and a special agent of the FBI. Nantell faces a maximum of 20 years in prison for each charge alleging that he lied to Kentucky state officials. Nantell faces a maximum of five years in prison for lying to the FBI. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division; U.S. Attorney Carlton S. Shier IV for the Eastern District of Kentucky; Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division; Special Agent in Charge Jodi Cohen of the FBI Louisville Field Office; and Colonel Phillip Burnett Jr. Commissioner of the KSP made the announcement. The FBI, the KSP and the Kentucky Justice and Public Safety Cabinet conducted the investigation. Assistant U.S. Attorney Zach Dembo and Mary Melton for the Eastern District of Kentucky and Trial Attorney Thomas Johnson of the Civil Rights Division’s Criminal Section are prosecuting the case. An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: Collin County Man Sentenced for Federal Violations Related to Health Care Fraud Scheme

body_text: PLANO, Texas – A Frisco man has been sentenced to federal prison for wire fraud violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today. Oscar Simon Ndereva, 45, pleaded guilty to wire fraud and was sentenced to 54 months in federal prison by U.S. District Judge Sean D. Jordan. According to information presented in court, Ndereva was involved in an intricate scheme to defraud private pay health insurance payors. Specifically, he used a fraudulent healthcare pharmacy called “Healogix” to submit fraudulent claims. Ndereva caused the fraudulently obtained funds to be paid directly to bank accounts he opened in the name of another individual. Over the course of the scheme, Ndereva moved money through various accounts in order to conceal the nature and source of those funds, and also structured check cashing transactions to avoid financial reporting requirements and to evade law enforcement detection. In all, Ndereva's company Healogix submitted over 780 fraudulent claims totaling over $5 million. This case was investigated by the FBI and Health and Human Service – Office of Inspector General. ###


title: Canadian Man Sentenced To 40 Months’ Imprisonment For Conspiracy To Commit Fraud And Money Laundering

component: USAO - Pennsylvania, Middle

body_text: HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that William Nneji, age 56, of Canada, was sentenced to 40 months’ imprisonment for conspiracy to commit mail fraud, wire fraud, and money laundering. According to United States Attorney Gerard M. Karam, William Nneji conspired with his codefendant brother, Chima Nneji, codefendant Alex Mgbolu, and other unnamed individuals between July 2002 and May 2010 to commit mail fraud, wire fraud, and money laundering by receiving money transfers from victims of international mass marketing fraud, processing those transfers using fictitious names, pooling the proceeds of those fraud induced money transfers, and then laundering those proceeds to coconspirators in the United States and Nigeria. William Nneji agreed that he was responsible for approximately $606,967 in losses to victims processed through two companies, including one owned by his brother, codefendant Chima Nneji, and one owned by his wife. At sentencing, William Nneji was ordered to pay $156,615.65 in restitution to victims. The lower restitution amount is due, in part, to monies compensated to victims as part of the 2012 United States v. MoneyGram deferred prosecution agreement, which established a $100 million restitution fund for MoneyGram customers that were victims of consumer fraud. Codefendants Chima Nneji and Alex Mgbolu both previously pleaded guilty to the same charge. Chima Nneji and Alex Mgbolu were sentenced to terms of imprisonment in 2016 and 2017, respectively. Both codefendants were extradited to the United States from Canada, whereas William Nneji, from the time of his indictment until November 2021, had been a fugitive. The case was investigated by the U.S. Postal Inspection Service. Assistant U.S. Attorney Ravi Romel Sharma prosecuted the case. # # #


title: U.S. Army Financial Counselor Charged With Defrauding Gold Star Families

component: USAO - New Jersey

body_text: TRENTON, N.J. – A Monmouth County, New Jersey, financial counselor with the United States Army and major in the U.S. Army Reserves who allegedly defrauded two dozen Gold Star families has been indicted, U.S. Attorney Philip R. Sellinger announced today. Caz Craffy, a/k/a “Carz Craffey,” 41, of Colts Neck, New Jersey, is charged by indictment with six counts of wire fraud and one count each of securities fraud, making false statements in a loan application, committing acts furthering a personal financial interest, and making false statements to a federal agency. Craffy is expected to make his initial appearance today before U.S. Magistrate Judge Tonianne J. Bongiovanni at the Trenton Federal Courthouse. “Stealing from Gold Star families whose loved ones made the ultimate sacrifice in service to our nation is a shameful crime,” said Attorney General Merrick B. Garland. “As alleged in the indictment, the defendant in this case used his position as an Army financial counselor to defraud Gold Star families, steal their money, and enrich himself. Predatory conduct that targets the families of fallen American service members will be met with the full force of the Justice Department.” “The families of our fallen service members have laid the dearest sacrifice on the altar of freedom,” U.S. Attorney Sellinger said. “These Gold Star families deserve our utmost respect and compassion, as well as some small measure of financial security from a grateful nation. They must be off-limits for fraudsters. But, as the indictment alleges, this defendant took advantage of his role as an Army financial counselor to prey upon these families, using lies and deception to steer their investments in a way that would make him money. There is no room for those who seek to rip off families of fallen servicemembers to make a buck. We will use every means at our disposal to ensure that those who defraud military families are held accountable.” “Those who prey on the family members of fallen soldiers, will be sought out and held accountable,” said Special Agent in Charge Joel Kirch, Department of the Army Criminal Investigation Division, Northeast Field Office. “The hard work, long hours, and dedication of our partners within the Task Force, from the United States Attorney’s Office, Defense Criminal Investigative Service, FBI, Homeland Security Investigations, and our own investigative analyst, resulted in this investigation’s swift resolution.” “The families of service members who lost their lives while serving their country deserve to be treated with compassion, dignity and respect by individuals entrusted to assist them in obtaining survivor benefits,” said James R. Ives, Principal Deputy Director of the Defense Criminal Investigative Service, the law enforcement arm of the DoD Office of Inspector General. “Today’s announcement reflects DCIS and our law enforcement partners’ steadfast commitment to holding accountable those who use their official positions to take advantage of grieving military families.” "Gold Star families are given a title no one would choose because it means they’ve paid the ultimate sacrifice for this country,” said Special in Charge James E. Dennehy of the Newark FBI. The soldier, sailor, marine or airman they loved died during a time of conflict – defending this nation. They are given money and assistance to help ease the burden that comes with losing their loved one, however no amount of money can replace what they’ve lost. We allege Craffy took advantage of his position and defrauded families already going through a tremendous amount of suffering.” “Craffy disgraced the position he was entrusted in to care for our nation’s military families when he allegedly took advantage of them during a vulnerable time of grief,” said Homeland Security Investigations Newark Special Agent in Charge Ricky J. Patel. “No family, especially our Gold Star families, should have to face further heartache after a loved one’s death by having their financial security ripped out from under them by fraudsters.” According to documents filed in this case and statements made in court: When a member of the Armed Services dies during active duty, his or her surviving beneficiary, now a member of a Gold Star family, is entitled to a $100,000 death gratuity and the soldier’s life insurance of up to $400,000. These payments are disbursed to the beneficiary in a matter of weeks or months following the servicemember’s death. To assist the beneficiaries in this time of need, the military provides a number of services to the servicemember’s family, including the assistance of a financial counselor. From November 2017 to January 2023, Craffy was a civilian employee of the U.S. Army, working as a financial counselor with the Casualty Assistance Office. He was also a major in the U.S. Army Reserves, where he has been enlisted since 2003. Craffy was responsible for providing general financial education to the surviving beneficiaries. He was prohibited from offering any personal opinions regarding the surviving beneficiary’s benefits decisions. Craffy was not permitted to participate personally in any government matter in which he had an outside financial interest. However, without telling the Army, Craffy simultaneously maintained outside employment with two separate financial investment firms. Craffy used his position as an Army financial counselor to identify and target Gold Star families and other military families. He encouraged the Gold Star families to invest their survivor benefits in investment accounts that he managed in his outside, private employment. Based upon Craffy’s false representations and omissions, the vast majority of the Gold Star families mistakenly believed that Craffy’s management of their money was done on behalf of and with the Army’s authorization. From May 2018 to November 2022, Craffy obtained more than $9.9 million from Gold Star families to invest in accounts managed by Craffy in his private capacity. Once in control of this money, Craffy repeatedly executed trades, often without the family’s authorization. These unauthorized trades earned Craffy high commissions. During the timeframe of the alleged scheme, the Gold Star family accounts had lost more than $3.4 million, while Craffy personally earned more than $1.4 million in commissions, drawn from the family accounts. The wire fraud and securities fraud charges are each punishable by a maximum of 20 years in prison. The charge of submitting a false statement on a loan application is punishable by a maximum of two years in prison. The charges of acts affecting a personal interest and false statements to a federal agent are each punishable by five years in prison. All counts but the securities fraud count are also punishable by a maximum fine of either $250,000 or twice the gain or loss from the offense, whichever is greatest. The securities fraud count is punishable by a maximum fine of either $5 million or twice the gain or loss from the offense, whichever is greatest. The U.S. Securities and Exchange Commission (SEC) also filed a civil complaint against Craffy today based on the same and additional conduct. Craffy has been permanently prohibited from association with any member of the Financial Industry Regulatory Authority Inc. (FINRA). U.S. Attorney Sellinger credited special agents of the Department of the Army Criminal Investigation Division, under the direction of Special Agent in Charge Kirch; special agents of DCIS, under the direction of Principal Deputy Director Ives; special agents of the FBI, under the direction of Special Agent in Charge Dennehy; and special agents of Homeland Security Investigations Newark, under the direction of Special Agent in Charge Patel with the investigation leading to the indictment. He also expressed appreciation for the Securities and Exchange Commission, under the direction of Gurbir S. Grewal, Director, Division of Enforcement, and FINRA, under the direction of Acting Head of Enforcement Christopher J. Kelly. The government is represented by Assistant U.S. Attorneys Martha K. Nye of the Criminal Division in Trenton, and Carolyn Silane of the Criminal Division in Newark. The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty. craffy.indictment.pdf usa_sellinger_remarks.pdf


title: Tracy Resident Charged With Computer Attack On Discovery Bay Water Treatment Facility

component: USAO - California, Northern

body_text: OAKLAND – A federal grand jury has indicted Rambler Gallo, charging him with intentionally causing damage to a protected computer after he allegedly accessed the computer network for the Discovery Bay Water Treatment Facility, located in the Town of Discovery Bay, Calif., and intentionally uninstalled the main operational and monitoring system for the water treatment plant and then turned off the servers running those systems causing a threat to public health and safety, announced United States Attorney Ismail J. Ramsey and Federal Bureau of Investigation Special Agent in Charge Robert K. Tripp. According to the indictment, filed June 27, 2023, and unsealed earlier today, prior to the attack on the Discovery Bay Water Treatment facility, Gallo, 53, of Tracy, Calif., was a full-time employee of a private Massachusetts-based company identified in the indictment as Company A. Company A contracted with Discovery Bay to operate the town’s wastewater treatment facility; the facility provides treatment for the water and wastewater systems for the town’s 15,000 residents. During his employment with Company A, from July of 2016 until December of 2020, Gallo was the company’s “Instrumentation and Control Tech,” with responsibility for maintaining the instrumentation and the computer systems used to control the electromechanical processes of the facility in Discovery Bay. The indictment alleges that while Gallo was employed with Company A, he installed software on his own personal computer and on Company A’s private internal network that allowed him to gain remote access to Discovery Bay’s Water Treatment facility computer network. Then, in January of 2021, after Gallo had resigned from Company A, he allegedly accessed the facility’s computer system remotely and transmitted a command to uninstall software that was the main hub of the facility’s computer network and that protected the entire water treatment system, including water pressure, filtration, and chemical levels. The indictment charges Gallo with one count of transmitting a program, information, code, and command to cause damage to a protected computer, in violation of 18 U.S.C. §§ 1030(a)(5)(A) and (c)(4)(B)(i).If convicted, Gallo faces a maximum statutory penalty of 10 years in prison and a fine of $250,000. In addition, as part of any sentence, the court may order an additional term of supervised release, additional assessments, and restitution, if appropriate. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing imposition of a sentence, 18 U.S.C. § 3553. The charges contained in an indictment are mere allegations. As in any criminal case, the defendant is presumed innocent unless and until proven guilty in a court of law. Gallo made his initial federal court appearance this morning before U.S. Magistrate Judge Kandis A. Westmore. Gallo’s next appearance is scheduled for July 20, 2023 before Judge Westmore for further hearing on release conditions. Assistant United States Attorney Cynthia Frey is prosecuting this case with assistance from Kathy Tat and Kevin Costello. The case is being investigated by the FBI.


title: Six Defendants Indicted for Meth Conspiracy, Illegal Firearms

component: USAO - Missouri, Western

body_text: SPRINGFIELD, Mo. – Six southern Missouri residents have been indicted by a federal grand jury for their roles in a conspiracy to distribute methamphetamine as well as illegally possessing firearms. Robert Jason Smith, 47, Terry M. Schenks, 53, Randy L. Johns, 45, and Jill M. Matthews, 45, all of Ozark, Mo.; Michael R. Goodwin, 41, of Springfield; and Evelyn J. Dame, 48, of Lebanon, Mo., were charged in a 19-count indictment returned under seal by a federal grand jury in Springfield on June 28, 2023. That indictment was unsealed and made public on Wednesday, July 5, upon the arrests and initial court appearances of the defendants. The federal indictment alleges that all six defendants participated in a conspiracy to distribute methamphetamine in Christian and Greene counties from Dec. 16, 2020, to June 2, 2022. In addition to the drug-trafficking conspiracy, Goodwin is charged with two counts of possessing 500 grams or more of methamphetamine with the intent to distribute, three counts of possessing 50 grams or more of methamphetamine with the intent to distribute, one count of possessing fentanyl with the intent to distribute, one count of possessing a firearm in furtherance of a drug-trafficking crime, and three counts of being a felon in possession of a firearm. Goodwin allegedly possessed a Glock 9mm semi-automatic pistol on June 30, 2021, a SARS Arms 9mm semi-automatic pistol on Sept. 2, 2021, and a North American Arms .22 magnum revolver on Dec. 13, 2021. Schenks also is charged with one count of possessing 50 grams or more of methamphetamine to distribute, one count of distributing methamphetamine, and one count of being a felon in possession of firearms. Schenks allegedly possessed a Spike’s Tactical .223-caliber/5.56mm semi-automatic rifle, a DPMS .223-caliber/5.56mm semi-automatic rifle, two Maverick 12-gauge shotguns, a SCCY 9mm semi-automatic pistol, and a Bersa .380-caliber semi-automatic pistol on June 2, 2022. Smith also is charged with one count of distributing methamphetamine, one count of possessing 50 grams or more of methamphetamine with the intent to distribute, and one count of being a felon in possession of ammunition. Dame is also charged in one count of possessing 500 grams or more of methamphetamine with the intent to distribute. Johns and Matthews also are charged together in one count of possessing 50 grams or more of methamphetamine with the intent to distribute. The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence. This case is being prosecuted by Assistant U.S. Attorney Jessica R. Eatmon. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Christian County, Mo., Sheriff’s Department, the Springfield, Mo., Police Department, the Federal Bureau of Investigation, the Drug Enforcement Administration, and the Greene County, Mo., Sheriff’s Department. Organized Crime and Drug Enforcement Task Force This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.


title: Three Arrested for Drug Distribution at Rutland Motel

component: USAO - Vermont

body_text: Burlington, Vermont – The Office of the United States Attorney for the District of Vermont announced that Bradley Saldi, 43, Tina-Marie Mound, 61, and Brittany Fields, 31, have been charged with the distribution of cocaine base and fentanyl by criminal complaint. All three were arrested Thursday morning, July 6, 2023, in Rutland, Vermont during the execution of federal search warrants at the Highlander Motel. All three were living at the Highlander Motel at the time of their arrest and are scheduled to appear this afternoon before United States Magistrate Judge Kevin J. Doyle. According to court records, law enforcement conducted numerous controlled purchases from multiple people at the Highlander Motel between December 2022 and June 2023. Saldi is alleged to have distributed cocaine base on May 15, May 16, June 12, and June 14, 2023, and fentanyl on May 15, 2023. Mound is alleged to have distributed fentanyl on December 7 and December 9, 2022, and on February 17, 2023. Fields is alleged to have distributed fentanyl on January 31, 2023, and cocaine base on June 14, 2023. All of these controlled purchases occurred on the premises of the Highlander Motel. The United States Attorney’s Office emphasizes that a criminal complaint contains allegations only, and that Saldi, Mound, and Fields remain presumed innocent until and unless they are convicted of a crime. Each defendant faces a maximum sentence of 20 years of imprisonment if convicted. The actual sentence would be determined with reference to Federal Sentencing Guidelines. United States Attorney Nikolas P. Kerest commended the investigatory efforts of the Vermont State Police’s Narcotics Investigation Unit, the Federal Bureau of Investigation, the Rutland City Police Department, and Homeland Security Investigations. He also thanked the Vermont State Police’s Field Force and Tactical Services Unit for vital assistance. The prosecutors are Assistant United States Attorneys Jason Turner and Jonathan Ophardt. Saldi, Mound, and Fields have not yet been appointed counsel.


title: U.S. Army Financial Counselor Charged with Defrauding Gold Star Families

component: Office of the Attorney General

body_text: A Monmouth County, New Jersey, financial counselor with the U.S. Army and major in the U.S. Army Reserves who allegedly defrauded two dozen Gold Star families has been indicted. Caz Craffy, aka Carz Craffey, 41, of Colts Neck, New Jersey, is charged by indictment with six counts of wire fraud and one count each of securities fraud, making false statements in a loan application, committing acts furthering a personal financial interest, and making false statements to a federal agency. Craffy is expected to make his initial appearance today before U.S. Magistrate Judge Tonianne J. Bongiovanni at the Trenton Federal Courthouse. “Stealing from Gold Star families whose loved ones made the ultimate sacrifice in service to our nation is a shameful crime,” said Attorney General Merrick B. Garland. “As alleged in the indictment, the defendant in this case used his position as an Army financial counselor to defraud Gold Star families, steal their money, and enrich himself. Predatory conduct that targets the families of fallen American service members will be met with the full force of the Justice Department.” “The families of our fallen service members have laid the dearest sacrifice on the altar of freedom,” said U.S. Attorney Phillip R. Sellinger for the District of New Jersey. “These Gold Star families deserve our utmost respect and compassion, as well as some small measure of financial security from a grateful nation. They must be off-limits for fraudsters. But, as the indictment alleges, this defendant took advantage of his role as an Army financial counselor to prey upon these families, using lies and deception to steer their investments in a way that would make him money. There is no room for those who seek to rip off families of fallen servicemembers to make a buck. We will use every means at our disposal to ensure that those who defraud military families are held accountable.” “Those who prey on the family members of fallen soldiers, will be sought out and held accountable,” said Special Agent in Charge Joel Kirch of the Department of the Army Criminal Investigation Division, Northeast Field Office. “The hard work, long hours, and dedication of our partners within the Task Force, from the U.S. Attorney’s Office, Defense Criminal Investigative Service, FBI, Homeland Security Investigations, and our own investigative analyst, resulted in this investigation’s swift resolution.” “The families of service members who lost their lives while serving their country deserve to be treated with compassion, dignity and respect by individuals entrusted to assist them in obtaining survivor benefits,” said Principal Deputy Director James R. Ives of the Defense Criminal Investigative Service (DCIS), the law enforcement arm of the DoD Office of Inspector General. “Today’s announcement reflects DCIS and our law enforcement partners’ steadfast commitment to holding accountable those who use their official positions to take advantage of grieving military families.” “Gold Star families are given a title no one would choose because it means they’ve paid the ultimate sacrifice for this country,” said Special in Charge James E. Dennehy of the Newark FBI. “The soldier, sailor, marine or airman they loved died during a time of conflict – defending this nation. They are given money and assistance to help ease the burden that comes with losing their loved one, however no amount of money can replace what they’ve lost. We allege Craffy took advantage of his position and defrauded families already going through a tremendous amount of suffering.” “Craffy disgraced the position he was entrusted in to care for our nation’s military families when he allegedly took advantage of them during a vulnerable time of grief,” said Special Agent in Charge Ricky J. Patel Homeland Security Investigations Newark. “No family, especially our Gold Star families, should have to face further heartache after a loved one’s death by having their financial security ripped out from under them by fraudsters.” According to documents filed in this case and statements made in court: When a member of the Armed Services dies during active duty, his or her surviving beneficiary, now a member of a Gold Star family, is entitled to a $100,000 death gratuity and the soldier’s life insurance of up to $400,000. These payments are disbursed to the beneficiary in a matter of weeks or months following the servicemember’s death. To assist the beneficiaries in this time of need, the military provides a number of services to the servicemember’s family, including the assistance of a financial counselor. From November 2017 to January 2023, Craffy was a civilian employee of the U.S. Army, working as a financial counselor with the Casualty Assistance Office. He was also a major in the U.S. Army Reserves, where he has been enlisted since 2003. Craffy was responsible for providing general financial education to the surviving beneficiaries. He was prohibited from offering any personal opinions regarding the surviving beneficiary’s benefits decisions. Craffy was not permitted to participate personally in any government matter in which he had an outside financial interest. However, without telling the Army, Craffy simultaneously maintained outside employment with two separate financial investment firms. Craffy used his position as an Army financial counselor to identify and target Gold Star families and other military families. He encouraged the Gold Star families to invest their survivor benefits in investment accounts that he managed in his outside, private employment. Based upon Craffy’s false representations and omissions, the vast majority of the Gold Star families mistakenly believed that Craffy’s management of their money was done on behalf of and with the Army’s authorization. From May 2018 to November 2022, Craffy obtained more than $9.9 million from Gold Star families to invest in accounts managed by Craffy in his private capacity. Once in control of this money, Craffy repeatedly executed trades, often without the family’s authorization. These unauthorized trades earned Craffy high commissions. During the timeframe of the alleged scheme, the Gold Star family accounts had lost more than $3.4 million, while Craffy personally earned more than $1.4 million in commissions, drawn from the family accounts. The wire fraud and securities fraud charges are each punishable by a maximum of 20 years in prison. The charge of submitting a false statement on a loan application is punishable by a maximum of two years in prison. The charges of acts affecting a personal interest and false statements to a federal agent are each punishable by five years in prison. All counts but the securities fraud count are also punishable by a maximum fine of either $250,000 or twice the gain or loss from the offense, whichever is greatest. The securities fraud count is punishable by a maximum fine of either $5 million or twice the gain or loss from the offense, whichever is greatest. The U.S. Securities and Exchange Commission (SEC) also filed a civil complaint against Craffy today based on the same and additional conduct. Craffy has been permanently prohibited from association with any member of the Financial Industry Regulatory Authority Inc. (FINRA). U.S. Attorney Sellinger credited special agents of the Department of the Army Criminal Investigation Division, under the direction of Special Agent in Charge Kirch; special agents of DCIS, under the direction of Principal Deputy Director Ives; special agents of the FBI, under the direction of Special Agent in Charge Dennehy; and special agents of Homeland Security Investigations Newark, under the direction of Special Agent in Charge Patel with the investigation leading to the indictment. He also expressed appreciation for the Securities and Exchange Commission, under the direction of Gurbir S. Grewal, Director, Division of Enforcement, and FINRA, under the direction of Acting Head of Enforcement Christopher J. Kelly. The government is represented by Assistant U.S. Attorneys Martha K. Nye of the Criminal Division in Trenton, and Carolyn Silane of the Criminal Division in Newark. The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty. Craffy Indictment


title: Federal Court Orders Florida Pain Clinic to Close, Physician and Clinic Owners to Pay Civil Penalties for Alleged Role in Unlawful Opioid Distribution

component: Civil Division

body_text: A federal court ordered a Tampa-area pain management clinic to close and entered judgments against the clinic’s owners and its former physician to restrict their ability to prescribe or distribute opioids in a case alleging violations of the Controlled Substances Act (CSA), the Justice Department announced today. In a complaint filed in October 2022, the United States alleged that Dr. Vivian Herrero, Christopher Ferguson, and Patricia Ferguson violated the CSA by issuing prescriptions for controlled substances without a legitimate medical purpose. The complaint also alleged that the Fergusons used Phoenix Medical Management Care Centers Inc., a Tarpon Springs, Florida pain clinic, to unlawfully distribute controlled substances through the issuance of the illegitimate prescriptions. The complaint further alleged that two Phoenix patients died soon after receiving opioid prescriptions issued by Dr. Herrero, and that drug toxicity played a role in those deaths. “Medical professionals who facilitate the unlawful use of opioids ignore their obligations under the law,” said Principal Deputy Assistant Attorney General Brian Boynton, head of the Justice Department’s Civil Division. “The Department of Justice will continue to work with its law enforcement partners to stop the illegal prescribing, dispensing and distribution of potentially dangerous prescription drugs.” “Civil enforcement under the Controlled Substances Act continues to be a top priority for our district,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “We will pursue those who seek to gain financially and otherwise from the unlawful distribution of controlled substances and, where appropriate, we will work to put them out of the controlled substances business.” “When medical professionals fail to comply with the federal laws set forth in the Controlled Substances Act, they jeopardize the safety and health of our communities,” said Special Agent in Charge Deanne L. Reuter for the DEA Miami Field Division. “The DEA Miami Field Division remains committed to working with our law enforcement and regulatory partners to ensure compliance with these rules and regulations.” The court’s order, entered on June 29 pursuant to agreed stipulations, permanently prohibits the Fergusons from employment involving the distribution of controlled substances. The order prohibits Dr. Herrero from prescribing controlled substances for 10 years and permanently prohibits her from prescribing controlled substances relating to pain management, in addition to other restrictions. The complaint alleged that Herrero wrote illegitimate prescriptions for powerful opioids and other drugs despite obvious signs of abuse or diversion and without a legitimate medical basis. The court also ordered the defendants to pay nearly $20,000 in civil penalties based on the defendants’ ability to pay. U.S. District Judge Stephen Merryday entered the consent decree in U.S. District Court for the Middle District of Florida. DEA’s Tactical Diversion Squad in the Tampa District Office conducted the investigation. The case was handled by Assistant U.S. Attorneys Lindsay S. Griffin and Kelley Howard-Allen and Trial Attorneys Scott B. Dahlquist and Thomas S. Rosso of the Justice Department’s Consumer Protection Branch. The claims made in the complaint are merely allegations that the United States would need to prove if the case proceeded to trial.


title: Waldorf Man Sentenced to Over Three Years in Federal Prison for Impersonating a Deputy U.S. Marshal and for Being a Felon in Possession of a Firearm

component: USAO - Maryland

body_text: Greenbelt , Maryland – U.S. District Judge Theodore D. Chuang today sentenced Antione William Tuckson, age 38, of Waldorf, Maryland, to 37 months in federal prison, followed by three years of supervised release, for false impersonation of an officer and employee of the United States and for being a felon in possession of a firearm. The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; U.S. Marshal Johnny Hughes; Postal Inspector in Charge Damon E. Wood of the U.S. Postal Inspection Service - Washington Division; and Chief Malik Aziz of the Prince George’s County Police Department. As detailed in the plea agreement, beginning in at least December 2018, Tuckson undertook a scheme to impersonate a Deputy United States Marshal (“DUSM”). On December 27, 2018, Tuckson used a vehicle with emergency lights to interfere in a robbery in Charles County, Maryland, identifying himself to investigators from the Charles County Sheriff’s Office as a United States Marshal during the incident. In December 2020, Tuckson registered the trademark “USMS Special Services,” with the State of Maryland and registered multiple vehicles in that name, using forged Maryland Motor Vehicle Administration records to make it appear that the vehicles were registered as emergency vehicles in Maryland. The vehicles were equipped with red and blue flashing lights as if they were law enforcement vehicles. According to the plea agreement, in early 2022, Tuckson impersonated a DUSM to secure employment as an armed security guard at a restaurant in District Heights, Maryland. Tuckson identified himself as a United States Marshal to the part-owner of the restaurant to get the job. On March 6, 2022, Tuckson showed up for work at the restaurant wearing a vest marked “POLICE,” a tactical belt with a 9mm semi-automatic pistol and multiple ammunition clips, and brought a dog which was also outfitted in police K-9-style gear. Tuckson also possessed a fake Department of Justice (“DOJ”) identification card, a United States Marshals Service (“USMS”) law enforcement badge, handcuffs, and a taser. That evening, two women at the restaurant got into a dispute over their bill and Tuckson intervened, identifying himself to the patrons as a United States Marshal. Tuckson followed the women after they ran from the restaurant. Tuckson then falsely held himself out as a DUSM to Prince George’s County Police Department (“PGPD”) officers whom he encountered at a park while pursuing the two women. After returning to the restaurant Tuckson encountered additional PGPD officers who had reported to the scene. When questioned by the officers, Tuckson continued to identify himself as a DUSM and displayed his fake badge. Tuckson told the officers that the USMS could verify his employment and officers asked him to put them in touch with a supervisor that would confirm his employment. Tuckson called an individual who claimed to be a supervisor of Tuckson at a security company and then called a co-conspirator, who also claimed to be a DUSM and Tuckson’s supervisor. Both falsely told officers that Tuckson was a DUSM. After further investigation revealed that Tuckson was not a DUSM, he was arrested and officers recovered the 9mm semi-automatic pistol that was loaded with 11 rounds of ammunition. Tuckson knew that he had a previous felony conviction and was prohibited from possessing a firearm or ammunition. 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. United States Attorney Erek L. Barron commended the U.S. Marshals Service, the U.S. Postal Inspection Service, and the Prince George’s County Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Timothy F. Hagan, and Special Assistant U.S. Attorney Peter L. Cooch, who are prosecuting the federal case. For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psn and https://www.justice.gov/usao-md/community-outreach . # # #


title: Camden Man Sentenced to 48 Months in Federal  Prison for Conspiracy to Commit Bank Fraud

component: USAO - Mississippi, Southern

body_text: Jackson, Miss. – A Camden man was sentenced to 48 months in federal prison and ordered to pay $71,601 in restitution for conspiracy to commit bank fraud, announced U.S. Attorney Darren LaMarca, Special Agent in Charge Patrick M. Davis of the U.S. Secret Service, Birmingham Field Office, and Mississippi Attorney General Lynn Fitch. According to court documents and statements made in court, Arthur Jerome Eldridge, Jr., 25, of Camden, Mississippi conspired with others to print counterfeit U.S. Treasury Checks, deposit them at area banks, and withdraw funds from those accounts. Eldridge was indicted by a federal grand jury and he pled guilty on March 22, 2023, to conspiracy to commit bank fraud. U.S. Attorney Darren LaMarca praised the investigative efforts and coordination of the U.S. Secret Service and the Mississippi Attorney General’s Office who investigated the case through their partnership in the Cyber Fraud Task Force. “The United States Secret Service works to protect and safeguard our nation’s financial infrastructure. This case shows a coordinated effort amongst our Federal partners to help preserve the integrity of the US economy,” said Resident Agent in Charge Kyle Smith of the U.S. Secret Service, Jackson Resident Office. "I established Mississippi’s first Cyber Fraud Task Force with our U.S. Secret Service partners to protect Mississippians from the many ways that bad actors use the online world to commit the kinds of crimes that not only victimize individuals, but wreak havoc on the financial system as a whole," said Attorney General Lynn Fitch. "This case is a great example of how, working together, we can stop a predator doing more harm to individuals, businesses, and the underlying financial system we all depend upon.” Mia Peterson, Eldridge’s co-defendant, is scheduled for trial on September 5, 2023. She is charged with bank fraud and conspiracy to commit bank fraud. If convicted, she faces a maximum penalty of 30 years in prison and a $1,000,000 fine. Assistant U.S. Attorney Kimberly T. Purdie prosecuted the case.


title: Tacoma man sentenced to three years in prison for defrauding union retirement plans

component: USAO - Washington, Western

body_text: Seattle – A 52-year-old resident of Tacoma who worked as a Third Party Administrator for union health and welfare and pension plans was sentenced today in U.S. District Court in Seattle to three years in prison for wire fraud and aggravated identity theft for stealing more than $200,000 from a union member’s account and other plans, announced Acting U.S. Attorney Tessa M. Gorman. Erik A. Read was indicted in April 2022 and pleaded guilty in March 2023. At the sentencing hearing, U.S. District Judge Ricardo S. Martinez said, Read “had a position of trust that he utilized to steal money…. This was not a onetime event…. he put together an elaborate scheme to steal money.” “Mr. Read used his specialized knowledge to steal the money a commercial painter had paid into his pension plan, hoping his theft would go undetected,” said Acting U.S. Attorney Gorman. “Read’s conduct was a highly detailed scheme involving forged records, fake IDs, and lies to colleagues. It didn’t just harm the victim financially, it also created great stress when the worker saw his pension vanish.” According to records filed in the case, Read worked as a third party administrator for three different union plans from which he improperly diverted funds: the Western Washington Painter Defined Contribution Pension Plan, the International Brotherhood of Electrical Workers Local 191 Health and Welfare Plan, as well as the Washington State Plumbing and Pipefitting Industry Plan. Court records detail how he stole from the account of one of the members of the painters’ union – a person who was listed as a “missing participant,” meaning he was no longer actively participating in the plan. Between April 2018 and May 2019, Read falsified records, forged signatures, and doctored a driver’s license to make it appear that the victim wanted his funds withdrawn from the fund to pay for medical treatment for a terminal illness. Read claimed to his coworkers that he was going to deliver the checks by hand to the victim and his family. In fact, Read deposited the checks into his own bank account. Even as he was earning $150,000 a year, he was improperly taking funds from the pension plans that he worked on. Read has agreed to pay $294,251 to the victim pension plans or their insurers. In asking for a four-year prison term, prosecutor Brian Wynne wrote to the court, “While the financial impacts of Read’s crimes were great, the non-financial impacts on both individuals Read worked for and on behalf of are unquantifiable. The impacts include the stress on (one victim) upon learning his retirement had been stolen and his efforts to recoup it. The impacts also include the stress experienced by Read’s colleagues who unwittingly helped Read carry out the fraud and the stress and managerial impacts on the trusts whose plans Read administered.” The case was investigated by the U.S. Department of Labor. The case was prosecuted by Assistant United States Attorneys Sok Tea Jiang, Brian J. Wynne, and Jehiel I. Baer.


title: Owner of Chester Unlicensed Group Home Sentenced for Medicaid and VRS Fraud

component: Federal Bureau of Investigation (FBI)

body_text: RICHMOND, Va. – A Chester woman was sentenced today to 51 months in prison for conspiracy to commit health care fraud, health care fraud, and wire fraud, all stemming from her operation of a Richmond metro-area health care services company. According to court documents, between 2014 and 2021, Sharon Johnson, 58, owned and operated “Sharon Y. Johnson & Associates” (SYJA). Johnson’s company purportedly provided Medicaid-reimbursed services that included both Service Facilitator services—supervising a Medicaid recipient’s personal care plan and provider—and personal care services—home health care aid services designed to allow a recipient to remain at home, rather than entering a nursing home or group home. Johnson signed up numerous of her Service Facilitator clients, often without their awareness or informed consent, to receive personal care services from her company. Johnson utilized her personal residence in Chester—a single-story, three-bedroom, 1,326-square foot structure—as an unlicensed group home, housing up to a half-dozen Medicaid recipients, in addition to Johnson and another SYJA employee, at any given time. Between 2014 and 2021, Johnson fraudulently billed Medicaid for personal care services purportedly provided to at least 14 of her patients, knowingly submitting timesheets to Medicaid that falsely claimed that certain SYJA aides had provided services, when, in fact, those purported SYJA employees had not provided home health care services to the patients in question. To execute this fraud scheme, Johnson and her co-conspirators created online patient portal accounts in the names of her patients, and thereafter assumed those patients’ identities when “approving” and routing billing requests for SYJA home health care services that had not, in fact, been provided. Separately, Johnson also executed a scheme to defraud the Virginia Retirement System (VRS) of pension payments paid by the VRS to one of Johnson’s unlicensed group home residents. To obtain control over her patient’s financial affairs, Johnson submitted fraudulent documents to the VRS including a “Medical Power of Attorney” form, and, after her patient’s death, changed the direct deposit location of her now-deceased patient’s VRS pension payments to Johnson’s own bank account. VRS thereafter paid at least 8 monthly pension payments into Johnson’s bank account before belatedly confirming the patient’s death. Johnson, knowing she was not entitled to those VRS funds, spent those payments for her own purposes. Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Stanley M. Meador, Special Agent in Charge of the FBI Richmond Field Office, made the announcement after sentencing by U.S. District Judge M. Hannah Lauck. Assistant U.S. Attorneys Thomas A. Garnett and Shea Gibbons prosecuted the case. A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:22-cr-16.