Geoffrey S. Berman, the United States Attorney for the Southern District of New York, James P. O’Neill, the Commissioner of the Police Department for the City of New York (“NYPD”), Angel M. Melendez, the Special Agent-in-Charge of the New York Field Office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (“HSI”), Ashan M. Benedict, the Special Agent-in-Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms & Explosives (“ATF”), and James J. Hunt, the Special Agent-in-Charge of the New York Field Division of the Drug Enforcement Administration (“DEA”), announced charges today against 25 members and associates of the “Hooly Gang,” a crew operating primarily in the vicinity of Fox Street and Leggett Avenue in the Bronx, New York. The defendants are charged with narcotics conspiracy in Superseding Indictment S1 17 Cr. 449 (KPF).
Manhattan U.S. Attorney Geoffrey S. Berman said: “The defendants are charged with narcotics conspiracy. What they allegedly did was annex a residential neighborhood, including two playgrounds, and make it a virtual open-air bazaar for dangerous and potentially lethal drugs. We commend our partners at the NYPD, HSI, ATF, and DEA for working together to restore our neighborhoods to the law-abiding people who deserve to live without fear of gangs and the violence they often bring.”
NYPD Commissioner James P. O’Neill said: “As alleged, the defendants in this case plied their poison, including heroin and oxycodone, across two Bronx playgrounds, endangering the lives of many in the neighborhood. Our focus on crime—and violence—is unwavering. And it is exhibited clearly in today’s action. I am thankful for the efforts of detectives, agents, and prosecutors whose work resulted in the arrest of dozens this morning and the unsealing of this superseding indictment.”
HSI Special Agent-in-Charge Angel M. Melendez said: “The individuals arrested during this operation are alleged to sell crack and heroin around playgrounds. They have a clear disregard for law enforcement and clearly no regard for the communities in which they live. HSI and its law enforcement partners will continue to arrest and remove gang members, like those today, off our city streets.”
ATF Special-Agent-in-Charge Ashan M. Benedict said: “The Hooly Gang and its members, as alleged, turned playgrounds into open air drug markets where narcotics were more common than the sights and sounds of children laughing and playing. Thank you to all of the federal, state and local partners that helped create a force multiplier effect to help rid the streets of violent narcotics traffickers thus sending a message to the community that the rule of law runs the streets. I would like to extend my gratitude to the United States Attorney’s Office for their work in prosecuting the case.”
DEA Special Agent-in-Charge James J. Hunt said: “Allegedly, the Hooly Gang was a feared drug supplier in the Longwood section of the Bronx. Their products - ranging from crack, heroin, marijuana, and oxycodone - invited gang wars into the surrounding communities and enabled drug addiction. This unique law enforcement partnership, targeting gang violence in our city, led to today’s arrests.”
According to the Superseding Indictment[1] unsealed today in Manhattan federal court and other publicly filed documents:
The Superseding Indictment arises from a joint investigation, beginning in 2017, by the NYPD, HSI, DEA, and ATF into a crew operating in the vicinity of Fox Street and Leggett Avenue in the Bronx called the “Hooly Gang.” Members and associates of the Hooly Gang operated an open-air drug market in this residential neighborhood – including within and around two playgrounds – and sold, among other things, crack, heroin, oxycodone, and marijuana. In order to protect its drug turf and advance its aims, members and associates of the Hooly Gang also committed acts of violence, including shootings.
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Defendants arrested in New York yesterday and early this morning will be presented later this afternoon in Manhattan federal court. Defendant MELVIN ALSTON is presently in custody on state charges and will be transferred to federal custody. Defendants ANTHONY RODRIGUEZ, a/k/a “Ant,” ROBERTO JORGE, and GIOVANNI TORRES are already in federal custody on related charges.
Each defendant is charged with one count of narcotics conspiracy, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life imprisonment. The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants would be determined by the judge.
The case is assigned to U.S. District Judge Katherine Polk Failla.
Mr. Berman praised the outstanding investigative work of the NYPD’s Bronx Gang Squad, HSI’s Violent Gang Unit, ATF’s Joint Firearms Task Force, and the New York Field Division of the DEA, as well as the United States Marshals’ Service and the New York State Division of Parole for their assistance in today’s arrests. He also thanked the Bronx County District Attorney’s Office and the New York City Department of Investigation for their support in the investigation of this matter.
The Office’s Violent and Organized Crime Unit is overseeing the case. Assistant U.S. Attorneys Rachel Maimin, Jessica Feinstein, and Danielle Sassoon are in charge of the prosecution.
The charges contained in the Superseding Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Superseding Indictment and the descriptions of the Superseding Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.
HOUSTON – A 57-year-old Houston man has appeared in federal court for conspiracy to commit mail and wire fraud, mail fraud, wire fraud and engaging in monetary transactions in criminally derived property, announced U.S. Attorney Alamdar S. Hamdani.Jesus Carlos Silva made his initial appearance before U.S. District Judge Yvonne Ho at 2 p.m. According to the indictment filed Dec. 17, Silva ran a scheme to defraud immigrants from March 2022 until December 2024. He allegedly falsely promised to help them obtain U.S. citizenship or legal immigration status. The charges allege Silva made false statements and misrepresentations to persuade victims to pay him thousands of dollars. He allegedly posed as an immigration attorney affiliated with Houston-based law firm, despite not being an attorney. It is alleged that Silva targeted victims, most of whom lacked legal immigration status, and claimed he could secure their citizenship or legal status. He allegedly told some victims he had a close contact at U.S. Citizenship and Immigrations Services (USCIS) who would expedite their applications. Silva charged victims between $7000 and $15,000 each, according to the charges. The indictment further alleges Silva did not provide any assistance to victims regarding their immigration status and failed to secure legal status for them. Instead, he allegedly offered excuses for the lack of progress on their applications and eventually cut off communications. The charges allege Silva repeatedly instructed victims to travel to Houston for fake appointments with USCIS. When they arrived, Silva allegedly gave excuses for his absence, and they discovered no such appointments had been scheduled.If convicted, Silva faces up to 20 years in federal prison and a possible $250,000 maximum fine.The FBI conducted the investigation with the assistance of the U.S. Marshals Service and Houston Police Department. Assistant U.S. Attorney Jessica Feinstein and Rodolfo Ramirez are prosecuting the case. An information is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
CORPUS CHRISTI, Texas – A Corpus Christi health care company has agreed to pay $990,478.46 to resolve allegations they violated the False Claims Act by submitting claims to Medicare for non-covered hospice services, announced U.S. Attorney Jennifer B. Lowery.
The settlement resolves allegations that Familia Healthcare Services Inc. dba Del Cielo Hospice and Palliative Care knowingly submitted false claims from May 12, 2017, through Jan. 31, 2022. The claims allegedly involved hospice services for patients who were not eligible for, and did not qualify for, the hospice benefit in violation of the False Claims Act.
“This office is committed to pursuing providers who put profits ahead of patients,” said Lowery. “The decision to provide hospice services should be prompted by a patient’s terminally ill medical diagnosis, not a hospice provider’s desire to boost its profits.”
Hospice care is special, end-of-life care intended to comfort terminally ill patients. To be eligible for the Medicare hospice benefit, a patient must be “terminally ill,” meaning that the patient has a medical prognosis that their life expectancy is six months or less if the illness runs its normal course.
“The Medicare trust fund is not a piggy bank to be used at will by those intent on stealing from it,” said Acting Special Agent in Charge Jason Meadows, Department of Health and Human Services-Office of Inspector General (DHHS-OIG). We, along with our law enforcement partners, will use all available investigative tools and means of recovery to return stolen Medicare money to its rightful place. We implore citizens who are aware of Medicare fraud to come forward.
“Del Cielo Hospice didn’t just unscrupulously rob the Medicare program out of hundreds of thousands of dollars, it also took advantage of ill patients who were unknowingly used for its scam,” said Special Agent in Charge James Smith of the FBI. “This type of health care fraud affects everyone - individuals and businesses alike. It raises our health insurance premiums, exposes patients to unnecessary medical procedures, harms patients and increase taxes, not to mention the billions of dollars in losses every year. The FBI will continue to work with our partners, including the private sector, to identify and disrupt health care fraud.”
The settlement includes the resolution of claims a former employee of Del Cielo Hospice brought under the qui tam or whistleblower provisions of the False Claims Act. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The whistleblower will receive 16% of the proceeds from the settlement with Del Cielo Hospice.
The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to the Department of Health and Human Services (DHHS) at 800-HHS-TIPS (800-447-8477).
The U.S. Attorney’s Office jointly conducted the investigation with DHHS – Office of Inspector General and FBI. Assistant U.S. Attorney Melissa Green handled the matter.
The claims resolved by this settlement are allegations only, and there has been no determination of liability.
BROWNSVILLE, Texas – A federal jury has returned a guilty verdict against a Mexican citizen residing in the Brownsville area for conspiracy with intent to deliver cocaine, heroin and fentanyl, announced U.S. Attorney Alamdar S. Hamdani.
The jury deliberated for approximately three hours before finding Gilberto Almaraz-Muniz, 55, guilty on one count of conspiracy and three counts of possession with intent to distribute various controlled substances following a five-day trial.
Law enforcement conducted a narcotics seizure in Klegberg County on March 10, 2022. At that time, authorities arrested co-conspirator Pedro Venegas Jr., 24, Brownsville. Once law enforcement noticed tampering within the engine, they took his truck to a secure location to remove the engine’s manifold and other components. The exposed internal workings of the engine revealed 23 bundles of heroin, cocaine and fentanyl. The truck’s 6-cylinder engine had modifications to appear as an 8-cylinder to keep the drugs hidden within those areas.
Further evidence showed co-conspirator Jetzrael Saldana, 25, Brownsville, recruited Venegas as driver on behalf of Almaraz-Muniz who was a law enforcement official in Mexico and operated as the drug supplier. At trial, witnesses testified that Almaraz-Muniz would ask Saldana to recruit drivers to take drug loads past the immigration checkpoint for distribution in Houston and other areas. Almaraz would then arrange for the vehicles to be titled in the drivers’ names and have them do “dry runs” crossing the port of entry several times before hiding drugs within the vehicle.
The jury also heard evidence on two other drug seizures where Almaraz-Muniz hired drivers to deliver narcotics. The seizures included 83 kilograms of liquid meth at the Gateway International bridge in Brownsville on July 17, 2022, and a 24-kilogram seizure of black tar heroin in Robstown Sept. 26, 2022.
“This case removed over 100 kilograms off our streets,” said Hamdani. “My office will continue to prosecute not only those individuals caught transporting dangerous drugs but also those that provide and involve others in the illicit drug trade.”
Venegas and Saldana pleaded guilty June 1, 2022, and July 26, 2023, respectively, and their sentencing hearings are set for May 1 and May 8.
U.S. District Judge Rolando Olvera presided over the trial and has set sentencing for July 17 for Almaraz-Muniz. At that time, he faces up to life imprisonment and a possible fine of up to $10 million.
Almaraz-Muniz has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigation with the assistance of the South Texas Narcotics Task Force in Kingsville and Homeland Security Investigations. Assistants U.S. Attorneys Oscar Ponce and Victoria Aranda are prosecuting the case.
McALLEN, Texas – Two men have been sentenced for their roles in a cocaine smuggling operation, announced U.S. Attorney Alamdar S. Hamdani.
Argelio Chavero, 51, Alton, and Agustin Romero Jr., 41, U.S. citizen residing in Mexico, pleaded guilty April 24, 2023, and Dec. 19, 2022, respectively, to importing 12 kilograms of cocaine from Mexico.
Chief U.S. District Judge Randy Crane has now imposed a 188-month-term of imprisonment for Chavero, while Romero received 57 months. Both must also serve five and three years of supervised release, respectively, following their sentences. At the hearing, the court heard additional evidence of Chavero’s lengthy criminal history which includes a prior attempt to smuggle 14 kilograms of marijuana in a vehicles’ spare tires and gas tank through the Falfurrias Border Patrol checkpoint. In addition, the court heard that drug trafficking runs in the Chavero family as his brother is also in federal custody for a 2021 conviction of importing meth. In handing down the sentence, the court noted that Chavero has led a life crime.
On April 24, 2021, Romero drove to the Hidalgo Port of Entry attempting to enter the United States from Mexico. Upon an x-ray inspection of the vehicle, law enforcement noticed anomalies in the gas tank. Further inspection revealed, four kilograms of marijuana and 12 kilograms of meth concealed within 33 packages inside the gas tank.
Chavero recruited Romero and provided him with a vehicle at the Mexican entrance to the Port of Entry. Chavero initially denied knowledge of Romero and the vehicle; however, authorities confronted Chavero with photographs of him driving the vehicle with Romero as passenger.
Both will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Laura Garcia prosecuted the case.
CORPUS CHRISTI – A Greek shipping company has pleaded guilty and was sentenced for violating the Act to Prevent Pollution from Ships (APPS) and falsification of records, announced U.S. Attorney Nicholas J. Ganjei.Eurobulk Ltd. admitted to violating APPS in April 2023 during a port call by the Good Heart in the port of Corpus Christi as well as falsification of records during that same port call.U.S. District Judge Nelva Gonzales Ramos has now ordered the company to pay a criminal fine of $1.125 million. The company must also serve a four-year-term of probation during which it will be subject to an environmental compliance plan with a monitorship to ensure future compliance.“It is crucial that we strive to eliminate threats to our waters through holding overseas corporations accountable,” said Ganjei. “Our office will continue to seek justice when foreign vessels fail to comply with the APPS and then seek to cover it up. The environmental harm inflicted and falsification of records merit the sentence imposed today.”“This outcome directly reflects our dedication to holding those who violate laws designed to prevent pollution of the marine environment accountable," said Rear Admiral David Barata, commander of the USGC’s Eighth District. “The Coast Guard and our partners remain resolute in our mission to protect our waters, and we encourage the public to continue reporting any suspicious activities as every report is essential in our ongoing effort to preserve the health of our marine ecosystems.”The charges arose out of a United States port call in which a crew member of the Liberia-flagged Motor Vessel Good Heart presented false records to the U.S. Coast Guard (USCG) to conceal illegal transfers and discharges of oily bilge water from the vessel.The Good Heart’s former chief engineer, Greek national Christos Charitos, 72, previously pleaded guilty and was sentenced for an APPS charge for failing to record discharges in the vessel’s Oil Record Book (ORB). Christos was ordered to pay a $2,000 fine.According to court documents and statements made in court, the Good Heart is an ocean-going bulk carrier registered in Liberia that Eurobulk operated. On at least two occasions in April 2023, Charitos ordered lower ranking engine personnel to discharge the contents of the duct keel (a pipe tunnel that begins in the engine room and runs forward under the cargo holds) directly into the sea without using the Oily Water Separator (OWS). The discharges contained oil.Also in April 2023, Charitos ordered the second engineer to make a fresh water connection to the OWS. By making such a connection, the oil content meter on the OWS was “tricked” so that the OCM could not verify the actual oil content of the discharge from the OWS. All of these discharges should have been recorded in the ORB. However, no entries were made.The USCG’s Investigative Service (CGIS) investigated the case.Assistant U.S. Attorneys John Marck and Liesel Roscher and Senior Trial Attorney Kenneth E. Nelson of the Justice Department’s Environmental Crimes Section of the Department of Justice prosecuted the case.
HOUSTON – A 21-year-old man has been sentenced for illegal possession of a machine gun, announced U.S. Attorney Alamdar S. Hamdani.Latravion Knighten aka pg_tray pleaded guilty on April 29.U.S. District Judge Sim Lake has now ordered Knighten to serve 33 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the court observed social media posts where Knighten bragged about the sound of his “switch” and appeared armed. In handing down the sentence, the court noted that a sentence at the higher end of the guidelines consecutive to his state court probation violation was appropriate in this case.On May 10, 2023, law enforcement conducted surveillance on Knighten, a documented Problem Gang member, who was staying at an AirBNB location and had a warrant for his arrest. They witnessed flashes from a green light, akin to the type used as laser sights on firearms, on the wall within the back porch of the residence.The next day, law enforcement saw Knighten leave the location and enter a silver Pontiac Grand Prix with a handgun in the waistband of his pants. As authorities began surveilling the vehicle, the Pontiac proceeded to make what appeared to be “heat runs,” signaling to law enforcement that the occupants of the vehicle noticed their mobile surveillance.Authorities observed Knighten exit the vehicle and run to the side of the street where they saw him concealing something in an overgrown area around a tree. Knighten suddenly turned and ran into the path of the oncoming surveillance vehicle. The vehicle struck him, causing his feet to go over his head. Despite being hit, Knighten immediately stood up and approached authorities, proclaiming his innocence.After placing him under arrest, law enforcement returned to the tree and found a .40 caliber Glock model 23 with a machine gun conversion device with attached green laser sight. Authorities also seized an extended magazine capable of accepting 17 rounds of ammunition.They test fired the firearm and confirmed it met the definition of a machine gun.Knighten has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.The Bureau of Alcohol, Tobacco and Firearms and the Houston Police Department investigated the case. Assistant U.S. Attorneys Richard Hanes and Kelly Zenon-Matos prosecuted the case.This case was investigated as part of the Houston Law Enforcement Violent Crime Initiative, which combines personnel and resources from numerous federal, state and local agencies to include the Harris County District Attorney’s Office referring violent offenders released on state bonds to the U.S. Attorney’s Office for possible federal prosecution. The goal is to reduce violent crime across the Greater Houston area by targeting the region’s most violent offenders, augmenting investigative and prosecutorial efforts and enhancing training, public awareness and education. It stems from the Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Under the PSN umbrella, 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 partners focus enforcement efforts on the most violent offenders and work with locally based prevention and reentry programs for lasting reductions in crime.
BROWNSVILLE, Texas – A 56-year-old Mexican citizen residing in the Brownsville area has been sentenced following his conviction for conspiracy with intent to deliver cocaine, heroin and fentanyl, announced U.S. Attorney Alamdar S. Hamdani.
A federal jury convicted Gilberto Almaraz-Muniz April 26 on one count of conspiracy and three counts of possession with intent to distribute various controlled substances following a five-day trial.
U.S. District Judge Rolando Olvera has now ordered him to serve 250 months in federal prison to be immediately followed by five years of supervised release. At the hearing, the court heard additional information detailing the extensive elements of the conspiracy Almaraz-Muniz lead. In handing down the sentence, the court noted Almaraz-Muniz specifically made use of younger individuals to carry out the transportation of the drugs.
Law enforcement conducted a narcotics seizure in Klegberg County March 10, 2022. At that time, authorities arrested co-conspirator Pedro Venegas Jr., 24, in Brownsville.
Once law enforcement noticed tampering within the engine, they took his truck to a secure location to remove the engine’s manifold and other components. The exposed internal workings of the engine revealed 23 bundles of heroin, cocaine and fentanyl. The truck’s 6-cylinder engine had modifications to appear as an 8-cylinder to keep the drugs hidden within those areas.
Further evidence showed co-conspirator Jetzrael Saldana, 26, Brownsville, recruited Venegas as driver on behalf of Almaraz-Muniz who was a law enforcement official in Mexico and operated as the drug supplier.
During the trial, witnesses testified that Almaraz-Muniz would ask Saldana to recruit drivers to take drug loads past the immigration checkpoint for distribution in Houston and other areas. Almaraz-Muniz would then arrange for the vehicles to be titled in the drivers’ names and have them do “dry runs,” crossing the port of entry several times before hiding drugs within the vehicle.
At the time of the trial, the jury heard additional evidence about two other drug seizures during which Almaraz-Muniz hired drivers to deliver narcotics. The seizures included 83 kilograms of liquid meth at the Gateway International bridge in Brownsville on July 17, 2022, and a 24-kilogram seizure of black tar heroin in Robstown Sept. 26, 2022.
Almaraz-Muniz has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigation with the assistance of the South Texas Narcotics Task Force in Kingsville and Homeland Security Investigations. Assistant U.S. Attorneys Oscar Ponce and Victoria Aranda prosecuted the case.
HOUSTON – Two Assistant U.S. Attorneys will lead the efforts of the U.S. Attorney’s Office in the Southern District of Texas (SDTX) in connection with early voting in Texas, which runs through Nov. 1, and the upcoming Nov. 5 general election, announced U.S. Attorney Alamdar S. Hamdani.Civil Chief Daniel Hu has been appointed to serve as the election officer for civil matters, while Deputy Criminal Chief Sharad Khandelwal is the criminal election officer. In their capacities, both are responsible for overseeing the SDTX’s handling of election related complaints related to voting rights, such as limiting access to the polls, threats of violence to election officials or staff and election fraud.“Every citizen must be able to vote without interference or discrimination and to have that vote counted in a fair and free election,” said Hamdani. “Similarly, election officials and staff must be able to serve without being subject to unlawful threats of violence. My office will always work tirelessly to protect the integrity of the election process.”The Department of Justice has an important role in deterring and combatting discrimination and intimidation at the polls, threats of violence directed at election officials and poll workers and election fraud. The department will address these violations wherever they occur. The department’s longstanding Election Day Program furthers these goals and also seeks to ensure public confidence in the electoral process by providing local points of contact within the department for the public to report possible federal election law violations.Federal law protects against such crimes as threatening violence against election officials or staff, intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from interference, including intimidation, and other acts designed to prevent or discourage people from voting or voting for the candidate of their choice. The Voting Rights Act protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or inability to read or write in English). “The franchise is the cornerstone of American democracy,” said Hamdani. “We all must ensure that those who are entitled to the franchise can exercise it if they choose, and that those who seek to corrupt it are brought to justice.”In order to respond to complaints of voting rights concerns and election fraud during the upcoming election and to ensure that such complaints are directed to the appropriate authorities, Khandelwal and Hu will be on duty in this district while the polls are open and can be reached at 713-567-9345 and 713-567-9518, respectively.In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The main number in Houston is 713-693-5000, while South Texas residents can contact the San Antonio office at 210-225-6741.Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by complaint form at https://civilrights.justice.gov/ or by phone at 800-253-3931.“Ensuring free and fair elections depends in large part on the assistance of the American electorate,” said Hamdani. “It is important that those who have specific information about voting rights concerns or election fraud make that information available to DOJ.”Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities. State and local police have primary jurisdiction over polling places and almost always have faster reaction capacity in an emergency.
LAREDO, Texas – A 34-year-old Laredo man has admitted guilt in a multi-year conspiracy to smuggle aliens for financial gain, announced U.S. Attorney Nicholas J. Ganjei.Since March 2023, Danny Nunez operated and coordinated an organization in Laredo that smuggled and harbored hundreds of aliens.The investigation tied Nunez to coordinating numerous smuggling events such as one involving over 100 aliens Dec. 2, 2023. On that date, law enforcement observed several people being loading into a white trailer in a warehouse parking lot. A subsequent search resulted in the discovery of 101 aliens locked inside the trailer, including 12 unaccompanied children. Multiple people reported they had difficulty breathing and feared for their life due to the conditions in the trailer.Juan Manuel Aguirre, 49, Laredo, pleaded guilty to conspiracy to smuggle aliens in the United States, admitting his role in the transportation and smuggling of this group.At the time of Nunez’s arrest, authorities also conducted a search of his residence resulting in the seizure of cell phones and ledgers documenting the aliens Nunez and others had smuggled over the course of the conspiracy. They also found over $36,000 in resulting proceeds and two illegal aliens on the premises.“The road to a secure border runs through the Southern District of Texas,” said Ganjei. “Human smuggling is a terrible practice, one that the Department is focused on eradicating. My advice to those in the human smuggling business is to find a new line of work.”Both Nunez and Aguirre face up to 10 years in prison for conspiracy to smuggle aliens in the United States. They could also be ordered to pay up to $250,000 in fines. They will remain in custody pending sentencing.Homeland Security Investigations, FBI, Texas Department of Public Safety. and Border Patrol conducted the Organized Crime Drug Enforcement Task Forces (OCDETF) operation with the assistance of Customs and Border Protection, the Laredo Police Department, Drug Enforcement Administration and Webb County Sheriff’s Office. 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 on the Department of Justice’s OCDETF webpage. Assistant U.S. Attorney Brandon Scott Bowling is prosecuting the case.
McALLEN, Texas – A 35-year-old Mexican national has admitted to possessing with intent to distribute over 40 kilograms of cocaine, announced U.S. Attorney Ryan K. Patrick.
On March 17, authorities conducted surveillance on what they suspected to be a drug stash house in McAllen. There, they observed Hugo Cristobal Garza-Ornelas departing the location in a possible load vehicle.
Later, they witnessed Ornelas conducting “heat runs,” which are unpredictable routes meant to evade law enforcement, and began pursuit. He attempted to flee from his vehicle on foot, but authorities quickly apprehended him.
A search of the abandoned load vehicle led to the discovery of approximately 14.68 kilograms of cocaine. Law enforcement also searched the stash house Garza-Ornelas operated and seized another 26.74 kilograms of cocaine as well as a rifle and ammunition.
The drugs had an estimated street value of $1.025 million.
U.S. District Judge Ricardo Hinojosa will impose sentencing Feb. 21, 2021. At that time, Garza-Ornelas faces a minimum of 10 years and up to life in federal prison and a possible $10 million maximum fine. He has been and will remain in custody pending that hearing.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Matthew Redavid is prosecuting the case.
SAN ANTONIO - U.S. Attorney Jaime Esparza for the Western District of Texas announced Wednesday, separate civil settlements totaling $513,168.10 to resolve allegations that two area medical practices violated the False Claims Act (“FCA”) by improperly billing Medicare for P-Stim devices. The U.S. Attorney’s Office for the Western District of Texas has now obtained more than $2 million related to improperly billed P-Stim devices since June 2021.
P-Stim is an electro-acupuncture device that is affixed behind a patient’s ear using an adhesive. Needles are inserted into the patient’s ear and affixed using another adhesive. Once activated, the device provides intermittent stimulation by electrical pulses. It is a single-use, battery-powered device designed to be worn for approximately four days until its battery runs out, at which time the device is thrown away. Medicare does not reimburse for P-Stim devices.
Alamo City Pain Consultants LLC, d/b/a The Institute for Functional Health, a San Antonio medical practice, billed Medicare for P-Stim devices between May 2018 and January 2020. Ronald Moore, DNP, Theresa Lambert, DNP, through their Austin area business entities Psych Dimensions Inc., and Lambert & Moore Enterprises Inc., billed Medicare for P-Stim devices to beneficiaries between December 2018 and March 2019. The United States alleged that the medical practices fraudulently obtained payment from Medicare by falsely claiming they had implanted neuro-stimulators, a surgical procedure that usually requires an operating room and is reimbursable by federal healthcare programs.
Under the terms of the separate settlement agreements in these cases, Institute for Functional Health has agreed to pay $357,913.18 and Moore and Lambert have agreed to pay $155,254.92 to resolve their respective liability under the FCA for these claims.
The settled civil claims are allegations only and do not constitute admissions of liability by the settling parties.
These matters were investigated by the U.S. Department of Health and Human Services Office of the Inspector General. Assistant U.S. Attorney Erin M. Van De Walle negotiated the settlements on behalf of the United States.
A Virginia man was sentenced today to 78 months in prison for tax crimes and his wire fraud scheme.According to court documents and statements made in court, Rick Tariq Rahim, of Great Falls, owned and operated several businesses, including laser tag facilities and an Amazon reseller. From 2015 to 2021, Rahim did not pay the IRS the taxes withheld from his employees’ paychecks or file the required quarterly employment tax returns reporting those withholdings.Between October 2010 and October 2012, Rahim filed two personal income tax returns on which he reported owing substantial taxes, but did not pay all the taxes due. When the IRS attempted to collect the unpaid taxes, Rahim submitted a false statement that omitted valuable assets he owned, including a helicopter, a Bentley, a Lamborghini, and real estate in Great Falls. Approximately two weeks later, Rahim transferred ownership of the Great Falls property to his wife. He also paid personal expenses from his business bank accounts, including more than $889,000 toward his mortgages and more than $669,000 to purchase or lease cars, including three different Lamborghinis. Rahim withdrew more than $1.1 million in cash in amounts less than $10,000 to avoid triggering currency transaction reports from the bank. Rahim has not filed a personal income tax return since 2012 despite earning more than $34 million in gross income.In total, Rahim caused a loss to the IRS of at least $4.4 million.Rahim also defrauded customers who invested using his automated trading bots and by “copying” Rahim’s supposed trading activities that he posted to Discord. He marketed his products on websites named BotsforWealth, TradeAutomation, ProChartSignals, OptionCopier, CopyAndWin, SnipeAlgo, and QQQtrade. Rahim charged customers a subscription fee to access his bots and other software, and to copy his supposed trades. Rahim also offered a “lifetime membership” to which customers received access to Rahim’s private Discord channel, some of his products, and his “in-office” trading days. Rahim personally traded stocks for at least two individuals, claiming “We'll hit home runs and make $500k+ per day very very often.” Instead, Rahim lost over $300,000 of his clients’ funds in eight months. Rahim induced customers to subscribe to his products by using social media tools, including TikTok, YouTube, and Discord. He also sought to induce customers by claiming he was extremely wealthy, boasting about trading millions of dollars and posting about his large home, pool, and luxury cars, including his Lamborghini. He posted false information to his websites and to his social media accounts claiming to “beat the stock market every day” and promising extreme profit margins. His claim of regularly beating the market was exaggerated. In reality, he did not post his trades that lost money. In fact, Rahim realized over $500,000 in losses from February 2021 through December 2022, and did not earn millions in the market during this time period as he had claimed. As part of his fraud scheme, Rahim also created at least 20 Discord user profiles where he posted emojis, likes, and symbols showing agreement and excitement regarding Rahim’s posts. Rahim earned at least $1,397,000 in subscription fees during the course of his schemes.In addition to Rahim’s prison sentence, he agreed to forfeit over $1.3 million and must pay restitution to the IRS and to his investment fraud victims.Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division and U.S. Attorney Erik S. Siebert for the Eastern District of Virginia made the announcement.IRS Criminal Investigation investigated Rahim’s tax fraud and FBI investigated his investment fraud. The case was consolidated for sentencing.Trial Attorneys William Montague and Ashley Stein of the Tax Division and Assistant U.S. Attorney Kimberly Shartar for the Eastern District of Virginia prosecuted Rahim for his tax fraud. Assistant U.S. Attorney Shartar prosecuted Rahim for his investment fraud.
Kelly Thornton (619) 546-9726 or Cindy Cipriani (619) 546-9608
NEWS RELEASE SUMMARY – January 16, 2019
SAN DIEGO – Robert S. Brewer, Jr., a decorated Vietnam War veteran, former prosecutor and prominent San Diego litigator for decades, was sworn in today as the United States Attorney for the Southern District of California by Chief U.S. District Court Judge Barry Ted Moskowitz.
Mr. Brewer took the oath of office in federal court this morning before an audience that included family members, lifelong friends, members of the legal community, judges and staff from the court and the U.S. Attorney’s Office. As the United States Attorney, Mr. Brewer is the chief federal law enforcement officer responsible for prosecuting and defending the interests of the United States in one of the busiest judicial districts in the nation.
“It is one of my life’s great honors to serve as the United States Attorney for the Southern District of California,” Mr. Brewer said in a statement. “I am committed to fairness, equality, justice and above all the rule of law. I will draw on my valuable life experiences to uphold these principles and protect our community and our border. It will be a privilege to work with the skillful and dedicated attorneys and staff in the office. I also want to highly commend Adam Braverman who served as U.S. Attorney for the past 14 months and Alana Robinson who served as U.S. Attorney from January to November 2017. Both served with distinction and brought great credit to the office.”
President Trump nominated Mr. Brewer to serve as U.S. Attorney for this district on June 25, 2018, upon the recommendation of U.S. Senators Kamala Harris and Dianne Feinstein. The full Senate unanimously confirmed his appointment on January 2, 2019.
During today’s swearing in, Judge Moskowitz noted Mr. Brewer’s many contributions to his country and community – from heroic actions as a combat veteran in Vietnam to volunteer work for the American Red Cross, the San Diego Humane Society and Canine Companions for Independence.
He also praised Mr. Brewer’s legal accomplishments. “I’ve known Bob Brewer for 33 years,” Judge Moskowitz said. “He is one of the five best lawyers I have ever met.”
Until recently, Mr. Brewer, a native of Ithaca, New York, was a litigation attorney at Seltzer Caplan McMahon Vitek. He previously served as a Deputy District Attorney in Los Angeles County from 1975 to 1977, and as an Assistant United States Attorney in the Central District of California from 1977 to 1982, where he successfully prosecuted a variety of cases including espionage, bank robbery, murder for hire and aircraft hijacking. He also held various management positions, including Assistant Chief of the Criminal Division. He received the Attorney General’s Commendation Award in 1981.
From 1982 through the present, Mr. Brewer has been in private practice, including from 1991 to 2009 as a partner at McKenna Long & Aldridge LLP, and from 2009 to 2014 as a partner at Jones Day. Before attending law school, Mr. Brewer served in the United States Army as an Airborne Ranger Infantry Officer and received the Silver Star and two Bronze Stars for his combat service in the Vietnam War. Mr. Brewer has been a Fellow in the American College of Trial Lawyers since 1999. He received the Daniel T. Broderick Award from the San Diego County Bar Association in 2009 and the Distinguished Graduate Award from the University of San Diego School of Law in 2016. Mr. Brewer earned his B.A. from St. Lawrence University, and his J.D. from the University of San Diego School of Law.
Brewer is married to retired U.S. District Judge Irma Gonzalez, the nation’s first Mexican-American female federal judge.
Because of the lapse in appropriations, information about possible media availability will be provided at the conclusion of the government shutdown.
Assistant U. S. Attorneys Connie Wu (619) 546-8592 and Cindy Cipriani (619) 546-9608
NEWS RELEASE SUMMARY – October 19, 2021
SAN DIEGO – To address an increase in violent crime, the U.S. Attorney’s Office and its law enforcement partners in the Southern District of California have launched an effort to strategically prosecute the region’s most violent and prolific offenders who are believed to be most responsible for the spike, including those with criminal history and criminal gang affiliation who commit gun crimes.
According to data released in July by the San Diego Police Department (SDPD), gang-related shootings increased 129 percent in the first half of 2021, compared to 2020, and more than 1,000 guns were recovered pursuant to criminal investigations. Responding to this spike, federal gun-related prosecutions in the Southern District of California increased in FY 2021 by almost 50 percent – to the highest levels seen in this office. Most of the defendants were charged with Dealing in Firearms without a license; Possession of Firearms by Prohibited Persons; or Possession of a Firearm in Furtherance of a Drug Trafficking Crime or Crime of Violence.
“Our overriding goal is to reduce violent crime strategically, rather than merely increasing the number of arrests and prosecutions,” said Acting U.S. Attorney Randy Grossman. “Together with our federal, state and local law enforcement partners, we continually direct our focus to the most dangerous people, those responsible for endangering neighborhoods and driving up the violent crime rate.”
“The Bureau of Alcohol, Tobacco, Firearms and Explosives is the lead federal law enforcement agency involved in investigations of firearm trafficking,” said ATF Los Angeles Field Division Special Agent in Charge Monique Villegas. “ATF’s highest priority is reducing gun-related violence. When firearms make their way into the criminal element, violence occurs. ATF’s goal is to reduce violent crime by restricting the flow of firearms to prohibited persons, violent criminals and across the border to Mexico. By focusing on firearms trafficking through intelligence-driven investigations, ATF aims to keeps guns out of the hands of those criminals pulling the trigger.”
“The FBI is committed to working with our law enforcement partners to root out violent, criminal groups who terrorize our communities,” said FBI Special Agent in Charge Suzanne Turner. “The FBI's multiple interagency task forces have proven to be well-versed in identifying, investigating, and mitigating those violent threats and taking guns off the streets to make our communities safer.”
“I’m proud to partner with the U.S. Attorney’s Office and our law enforcement partners to strategically address the spike in gang violence in San Diego,” said San Diego County District Attorney Summer Stephan. “The DA’s Office has seen gang homicide cases nearly triple in the last year. We want to be part of the solution by working with law enforcement partners to curb violent gang crimes, while also investing in prevention efforts with our community members to redirect our youth into positive and healthy lifestyles.”
“Now more than ever, it is essential that we work together to prevent and respond to violent crime. This partnership sends a message to would-be criminals that keeping San Diego safe is a priority,” said Chief David Nisleit. “I'd like to thank our longstanding community and law enforcement partners for joining us in this effort to fight violent crime.”
Consistent with the comprehensive strategy announced by the Attorney General and Deputy Attorney General in May 2021, the Southern District of California has taken several steps to get guns out of the hands of the most violent offenders and prevent violence in our communities. These efforts include firearm prosecutions initiated against dangerous felons known to be members of gangs. These gun prosecutions involve various types of firearms, and many of the defendants committed the firearm offenses while on probation or parole for prior crimes, including drug trafficking, carjacking, robbery, burglary, false imprisonment, and domestic violence. Two cases recently resulted in lengthy sentences:
In August 2021, Jason John Clipper, aka “Smokey,” a member of the East Side San Diego criminal street gang with ties to the Mexican Mafia prison gang, was sentenced in federal court to 15 years in prison for unlawfully possessing a firearm, possessing methamphetamine and heroin with the intent to distribute, and possessing a firearm in furtherance of a drug trafficking offense. At the time of his arrest, San Diego County Probation officers found Clipper in possession of approximately 20 grams of methamphetamine, 8 grams of heroin, and a loaded firearm. Clipper was on Post Release Community Supervision for a previous narcotics and firearm conviction in the California Superior Court. (https://www.justice.gov/usao-sdca/pr/san-diego-gang-member-sentenced-15-years-prison-dealing-methamphetamine-and-heroin).
In September 2021, Joseph Anthony Martino, a convicted felon with a long criminal history that prevents him from legally owning guns, was sentenced in federal court to 10 years in prison for kidnapping and possessing firearms. Martino admitted that on April 1, 2019, he held three people hostage at his Lakeside home, pointing loaded guns – including a fully automatic assault rifle - at their heads and threatening them (https://www.justice.gov/usao-sdca/pr/convicted-felon-sentenced-10-years-prison-kidnapping-and-possessing-firearms).
These cases are part of the DOJ’s initiative to reduce gun violence known as Project Safe Neighborhoods. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders works together to identify the most pressing violent crime problems in the community and develops comprehensive prosecution and community outreach solutions to address them.
To ensure our firearm prosecutions maintained strategic focus on the most significant threats to public safety, Acting U.S. Attorney Grossman and the district’s PSN Coordinator, Assistant U.S. Attorney Connie Wu, joined forces with the District Attorney’s Office Gangs Division leadership to convene state, local, and federal law enforcement agencies for the Combatting Gang Violence to Restore Public Safety Summit this past summer. This summit, which will now occur quarterly, is a collaborative effort to identify and address the most significant drivers of violent crime in our district.
In addition to individual firearm prosecutions, the U.S. Attorney’s Office has conducted a number of large-scale takedowns with federal and local law enforcement partners that have made a direct impact on public safety in San Diego.
In April 2021, a federal grand jury indicted 47 people allegedly associated with illegal gambling establishments that were closely tied to gangs, drugs and violence and had become magnets for a wide variety of criminal activity. Many were charged with Felon in Possession of a Firearm and felon in possession of ammunition. In all, 35 people were arrested, and 44 firearms, more than 12 pounds of methamphetamine, $263,000 in cash, and 640 gambling machines were seized during the two-year investigation. Please see https://www.justice.gov/usao-sdca/pr/forty-seven-defendants-charged-illegal-gambling-and-drug-indictments.
In May 2021, 23 documented gang members and associates were charged with heroin, methamphetamine and firearms trafficking. This yearlong investigation involved federal wiretaps, dozens of undercover drug and gun buys and extensive surveillance. Many of the defendants are documented members or associates of violent South Bay street gangs operating out of National City, San Ysidro, and elsewhere. Many of these gang have long-standing ties to the Mexican Mafia. In total, authorities seized 2.1 kilograms of methamphetamine, 160 grams of heroin, and nine firearms tied to these defendants during the investigation. Please see https://www.justice.gov/usao-sdca/pr/twenty-three-gang-members-charged-crackdown-south-bay-heroin-methamphetamine-and.
In June 2021, 60 alleged members of a San Diego-based international methamphetamine distribution network tied to the Sinaloa Cartel were charged with drug trafficking, money laundering and firearms offenses. In addition to these arrests, law enforcement has seized more than 220 pounds of methamphetamine and other illegal drugs; 90 firearms; and more than $250,000 in cash. Please see https://www.justice.gov/usao-sdca/pr/sixty-defendants-charged-nationwide-takedown-sinaloa-cartel-methamphetamine-network.
The federal effort to fight violent crime is not limited to prosecutions. “We are using every tool – not just enforcement, but also prevention and intervention – to make our community safer,” Grossman said. “One of our greatest weapons in combatting violent crime is to combine proven law enforcement methods and expertise with the resources of credible “lived experience” messengers and trusted community organizations.”
To that end, the district’s Project Safe Neighborhoods Task Force has made an unprecedented investment in public safety by awarding more than $1 million in federal over the last two years for distribution to local law enforcement and community organizations to prevent gun violence, facilitate reentry, reduce gang membership, foster safer neighborhoods and research/measure program effectiveness. The most recent grants, approved by DOJ’s Bureau of Justice Assistance last week, include:
The San Diego City Attorney’s Office received money to help fund its Gun Recovery Impact Program, known as GRIP, which proactively seeks Gun Violence Restraining Orders, a life-saving tool created by California’s “red flag” law to prevent predictable acts of gun violence by removing firearms from individuals who pose a threat to themselves or others. Following a hearing in open court, a judge can prohibit the individual from possessing or purchasing firearms or ammunition for at least one year.
Rise Up Industries’ (RUI) Reentry Program opened in Santee in March 2016. It helps previously incarcerated, formerly gang-involved individuals to successfully reenter society; thereby reducing the gang population and the recidivism rate. RUI’s Reentry Program provides comprehensive services including employment, job-training, case management, tattoo removal, counseling, mentoring, education assistance, financial literacy, life skills training, and work ethic development. RUI pays full-time wages to Reentry Program members as they work their way through the program.
San Diego Association of Governments, the regional clearinghouse for crime data, received a grant to enhance its tracking of crimes that involve firearms around the region. This would include the use of a firearm in violent crime and providing information regarding where these crimes are occurring, tracking calls for service related to the use of firearms, and interviewing arrestees regarding their use of firearms and ghost guns.
Vista Community Clinic received a grant to support its “Resilience” program, which helps justice system-involved youth chart a more positive life course. The program serves teens in the City of Oceanside which faces challenges created by multiple gangs with hundreds of members, many of them minors.
The PSN Task Force awarded additional grants in prior months to several mentoring and/or reentry organizations, including Boys & Girls Club of Oceanside; Education COMPACT; El Centro Police Athletic League; the Imperial County Gang Intelligence Coalition; Inner City Athletics; Reality Changers; Star Pal; UPAC; Vista Community Clinic and Youth Empowerment. Moreover, the Kroc Institute for Peace and Justice received a research grant to recommend data collection protocols, measure program effectiveness, and research best practices for “lived experience” mentoring programs.
In addition to PSN grants, the Southern District of California runs two prevention programs that focus on character building and mentoring. Project LEAD – San Diego, an adaptation of the program started in Los Angeles, is an 8-week program designed to help fifth-grade students understand that the choices they make today can affect their lives forever. Since 2016, the U. S. Attorney’s office has recruited 286 volunteer teachers who have reached 2,816 students. Several local and federal agencies were involved in this effort in addition to the U.S. Attorney’s Office, including: the U.S. Coast Guard, DEA, the San Diego City Attorney’s Office, the U.S. Marshals Service, Customs and Border Protection, U.S. Secret Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Food and Drug Administration, San Diego Police Department, U.S. Probation, Pretrial Services, the State Department, Department of Corrections, Homeland Security Investigations, and the Internal Revenue Service.
While currently on hold due to the pandemic, for more than five years the office also ran the Success Agents mentoring program at Porter Elementary. At the Success Agents weekly workshop, law enforcement mentors worked in a fun and interactive way to help 4th and 5th grade students improve life skills, build confidence and promote a positive relationship with law enforcement. The program also supports families through resource referrals, parent meetings and holiday dinners offered by program partners.
The U.S. Attorney’s office is also a longstanding member of the Community Assistance Support Team (CAST), an organization that works to prevent gang-related gun violence and support victims. By building relationships and communicating directly with gang members, residents and law enforcement, CAST volunteers identify the sources of gun violence in specific neighborhoods and connect individuals with the help they may need, such as gang exit resources, mental health services or alternative methods to resolving conflicts. During the recent violent crime spike, the office supported and participated in CAST Season of Peace events calling for an end to gun violence.
Assistant U. S. Attorney Amanda T. Muskat (619) 546-6495
NEWS RELEASE SUMMARY – November 9, 2021
SAN DIEGO – Leobardo Soto-Toledo, a foot guide who led a group of 14 undocumented migrants into the United States through an underground drainage pipe during heavy rains, resulting in a death and a near-drowning, was sentenced in federal court yesterday to 45 months in prison.
As reflected in the court records, on January 29, 2021, the group of migrants entered the United States near Chula Vista, California, by either climbing over the international boundary fence or traversing through a drainage pipe that runs underground approximately one-quarter mile from Mexico into the United States. The storm drain is capped on the United States side by a mechanical grate, located approximately one-and-a-half miles east of the San Ysidro, California Port of Entry.
The defendant acted as a foot guide, leading the undocumented migrants into the United States by crossing the boundary fence close to the grate. Thereafter, the defendant entered the drainage pipe and guided the undocumented migrants behind him through the approximately 5-foot diameter pipe, eventually reaching the mechanical grate at the end, which can only be opened on the United States side. Stormy conditions caused water to rush through the drainpipe at a high speed. A digital intrusion device captured an image of individuals at the mouth of the grate.
According to court records, the defendant’s role was to travel to the grate and attempt to convince U.S. Border Patrol personnel to open the grate by yelling for help amidst the flowing water, allowing the migrants behind him to exit the open grate and further their entry into the United States.
When Border Patrol agents responded to the scene, they opened the grate, and the migrants flowed out on the rushing water. Border Patrol agents located one individual floating in the water who was deceased, and was later identified as the defendant’s brother and fellow foot guide. Border Patrol agents located another individual floating unconscious after traveling through the grate and managed to resuscitate her and transport her to a hospital.
“Human smuggling efforts that result in a death and endanger lives are tragic and deeply disturbing,” explained Acting U.S. Attorney Randy S. Grossman. “We will continue to use all means at our disposal to hold accountable those placing human beings at substantial risk of injury and death.” Grossman thanked prosecutor Amanda Muskat and the U.S. Border Patrol for their excellent work on this case.
“We are grateful for the resolve and perseverance that our law enforcement community demonstrated during the past several months, including that of the United States Attorney’s office,” said Chief Patrol Agent Aaron Heitke. “Collaboratively, the efforts of our men and women resulted in Leobardo Soto-Toledo’s arrest, conviction, and just sentencing.”
When handing down the sentence, U.S. District Court Judge Cynthia Bashant noted that this event was “a tragedy for all involved.” Judge Bashant held that the migrants were placed at substantial risk of death or great bodily injury and applied a sentencing enhancement due to the fatality caused by the defendant’s conduct.
DEFENDANT Case Number 21cr607-BAS
Leobardo Soto-Toledo Age: 54 Residence: Mexico
SUMMARY OF CHARGES
8 U.S.C. § 1324(a)(1)(A)(i) and (v)(II) – Bringing in Illegal Aliens and Aiding and Abetting (Counts 1, 12, and 17)
Maximum Penalties: Ten years in prison; $250,000 fine
ALBUQUERQUE, N.M. – Jose Carlos Cisneros-Legarda, 22 of Albuquerque, made his initial appearance in federal court on Jan. 28 where he was charged with possession with intent to distribute heroin, possessing a firearm during the commission of a drug trafficking crime and being a felon in possession of a firearm. Cisneros-Legarda will remain detained pending a preliminary hearing scheduled for Feb. 1.
Cisneros-Legarda is a state probationer whose probation term runs through September 2022 for 2017 convictions for armed robbery and conspiracy to commit armed robbery. According to a criminal complaint, between late January and early April 2020, Cisneros-Legarda allegedly posted multiple photos of himself on social media with large amounts of money. He also allegedly utilized Facebook Live to stream live videos of himself driving in multiple vehicles, not all of which were equipped with an interlock device as required by his probation terms.
On April 8, 2020, Cisneros-Legarda allegedly was live streaming video on Facebook Live in which he was observed in possession of a firearm. On April 9, 2020, a New Mexico Corrections Department Probation-Parole Division Officer along with members of the FBI Violent Crime Task Force and the Bernalillo County Metropolitan Detention Center Security Threat Intelligence Unit went to Cisneros-Legarda’s residence to conduct a search of his home pursuant to his probation conditions. A search of the premises uncovered three loaded handguns and approximately 26.7 grams of heroin.
As a convicted felon, Cisneros-Legarda cannot legally possess a firearm or ammunition.
A complaint is only an allegation. A defendant is considered innocent unless and until proven guilty. If convicted, Cisneros-Legarda faces a minimum of five years and up to twenty years in prison.
The FBI, the New Mexico Corrections Department, and the Bernalillo County Metropolitan Detention Center Security Threat Intelligence Unit investigated this case. Assistant U.S. Attorney Jaymie L Roybal is prosecuting the case.
The U.S. Attorney’s Office for the Southern District of Florida will co-host two upcoming Town Hall events in support of United Against Hate Week (which officially runs September 23-27). United Against Hate Week is orchestrated as a call for local civic action, to stop the hate and biases that pose a dangerous threat to the safety and civility of our diverse South Florida communities.
“Hate crimes don’t just harm individuals, they fracture communities. Preventing and prosecuting hate crimes are one of the highest priorities for our office. Hate can divide us, but coming together as a community unites us,” said U.S. Attorney Markenzy Lapointe. “These outreach programs are critically important to building trust, fostering community, and promoting awareness. Our office remains deeply committed to fighting hate in our communities and in the courtroom.”
The U.S. Attorney’s Office will co-host a public outreach event and interactive discussion focused on identifying and reporting hate crimes on September 25, at 6:00 p.m., at the Coral Gables Public Library located at 3443 Segovia Street. Participants will include members of the U.S. Attorney’s Office, FBI, Miami-Dade State Attorney’s Office, Miami-Dade Police Department, City of Miami Police, Miami Hate Crimes Task Force, Miami Dade County Community Advocacy Advisory Boards, and Coral Gables Police Department.
The U.S. Attorney’s Office will co-host another public outreach event and interactive discussion addressing hate crimes on October 8, at 6:00 p.m., at the Pride Center located at 2040 N. Dixie Highway in Wilton Manors. Participants will include members of the U.S. Attorney’s Office, FBI, Broward State Attorney’s Office, Broward Sheriff’s Office, Broward Hate Crimes Task Force, Wilton Manors Police Department, and Fort Lauderdale Police Department.
Additional Hate Crimes Town Halls are being planned throughout the Southern District of Florida in October and November.
United Against Hate is a Department of Justice initiative aimed at combating unlawful acts of hate by educating the public about federal hate crimes and anti-discrimination statutes. The program encourages the reporting of hate crimes, hate incidents, and unlawful discrimination to a local, county, and/or state law enforcement agency and the Department of Justice. For more information about the Department of Justice’s United Against Hate Program, visit https://www.justice.gov/hatecrimes/spotlight/united-against-hate.
The U.S. Attorney’s Office for the Southern District of Florida and FBI are working with our local counties to establish Hate Crimes Task Forces to guide and unite communities against hate. For more information on the U.S. Attorney’s Office efforts to fight hate crimes and resources to fight hate crimes in your community, visit https://www.justice.gov/usao-sdfl/hate-religious-crimes.
To register for the upcoming Town Halls visit https://events.humanitix.com/hates-crimes-town-hall (Miami Hate Crimes Town Hall) TownhallHateCrime.eventbrite.com (Broward Hate Crimes Town Hall).
To report a hate crime to the FBI, please call 1-800-CALL-FBI, submit a tip at https://tips.fbi.gov/home, or contact your local FBI field office.
Civil rights violations occurring in the Southern District of Florida can be reported to the U.S. Attorney’s Office using the complaint form located at or the U.S. Department of Justice at https://civilrights.justice.gov.
MIAMI – Adam Runsdorf and his companies, Florida-based drug wholesaler Woodfield Distribution, LLC and associated operations in Texas, surrendered their seven Drug Enforcement Administration (DEA) registrations and agreed to pay $2.475 million in civil fines to resolve violations of the Controlled Substances Act (CSA). These CSA requirements are designed to prevent the diversion of controlled substances.
Beginning in 2013 through 2016, Woodfield Distribution’s Florida location violated multiple CSA provisions, and as a result entered into a Memorandum of Agreement with the DEA to prevent future CSA violations. In 2018 and 2020, the DEA discovered additional CSA violations at Woodfield Distribution’s Florida and Texas locations. These CSA violations included: failure to account for over 120 million dosage units of controlled substances; failure to design and operate a system for monitoring suspicious orders; failure to notify the DEA of over 200,000 dosage units of stolen controlled substances; falsifying importation documents and the illegal importation of over 200 million dosage units of controlled substances; failure to properly store and secure controlled substances; lack of complete and accurate records; and failure to report controlled substance transactions and sales.
In August 2021, the DEA issued three Immediate Suspension Orders (ISO) for Woodfield Distribution’s Texas Distributor and Importer Registrations, as well as Manufacturer Registration for Woodfield Pharmaceuticals, LLC. The ISOs were issued for Woodfield’s failure to maintain effect controls and procedures against the theft and diversion of controlled substances and the imminent danger to public health and safety. ‘
In August 2022, a separate criminal investigation by DEA resulted in Adam Runsdorf and Woodfield Pharmaceuticals pleading guilty in the Eastern District of Texas to criminal charges of conspiracy, trafficking in counterfeit drugs, and money laundering conspiracy. According to the criminal indictment, from April 2014 until August 2021, Runsdorf, the owner and President of Woodfield Pharmaceutical based in Boca Raton, Florida, conspired with drug traffickers in Houston, Texas, to distribute misbranded and counterfeit cough syrup.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas, Special Agent in Charge Deanne L. Reuter of the DEA Miami Division, and Daniel Comeaux, Special Agent in Charge of the DEA Houston Division announced the resolution.
The DEA Miami Field Division, West Palm Beach District Office; DEA Houston Division Office, and DEA Galveston Resident Office investigated this matter. Assistant U.S. Attorney Mark Lavine from the Southern District of Florida and Assistant U.S. Attorney Jill Venezia from the Southern District of Texas handled the civil matter. Assistant U.S. Attorneys John Ross, Jonathan Lee, and Robert Austin Wells from the Eastern District of Texas prosecuted the criminal case.
A copy of the agreement is available at the link below.
Miami, Florida – Friday, Miami resident Ramon Caridad Rodriguez, 28, made his first appearance in South Florida federal court to face a grand jury indictment charging him with defrauding his former employer, a religious charity organization that runs after-school programs for underprivileged immigrant children to help them avoid gangs and gang violence.
According to the indictment, Rodriguez abused the company’s trust by using a company credit card to make thousands of dollars’ worth of personal purchases and then attempted to conceal those purchases through lies and altered bank statements. Some of these purchases included items like lawn chairs, bug spray, tiki torches, and personal groceries. He used over $160,000 of the company’s money for his personal gain, says the indictment.
The indictment charges Rodriguez with nine counts of wire fraud. If convicted, Rodriguez faces up to 20 years in federal prison on each charge.
Juan Antonio Gonzalez, Acting United States Attorney for the Southern District of Florida, Brian Swain, Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, and Art Acevedo, Chief, City of Miami Police Department made the announcement.
USSS Miami and City of Miami PD investigated the case. Assistant United States Attorney Yara Dodin is prosecuting it.
An indictment contains mere allegations. A defendant is innocent until proven guilty beyond a reasonable doubt in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov, under case number 21-cr-20472.
This month, three defendants pled guilty in the Southern District of Florida in connection with their participation in a $4.4 million dollar federal prison sentencing scheme. The fraudulent scheme targeted federal inmates and their families in Miami-Dade County and elsewhere by promising them assistance in obtaining a Rule 35 sentencing reduction, in exchange for money. Rule 35 of the Federal Rules of Criminal Procedure allows the court, upon the government’s motion, to reduce a defendant’s sentence if the defendant is found to have provided substantial assistance in investigating or prosecuting another person. Neither the government nor the court system charges inmates or their relatives a fee for requesting a sentencing reduction when an inmate provides substantial assistance.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, Robert A. Bourbon, Special Agent in Charge, Department of Justice, Office of the Inspector General (DOJ-OIG), and Perrye K. Turner, Special Agent in Charge, Federal Bureau of Investigation (FBI), Houston Field Office, made the announcement.
“Sentencing reduction fraud schemes that prey on the desperation, vulnerability and trust of federal inmates and their families exploit both the victims and the justice system,” stated Acting U.S. Attorney Benjamin G. Greenberg. “The U.S. Attorney’s Office in South Florida and our federal partners across the nation will continue to target such schemes and prosecute the offenders.”
“Conning relatives of federal inmates into thinking that they must pay money for their loved ones to receive a sentence reduction that is actually based solely on how much an inmate assists the government is an outrageous way to defraud innocent victims,” said Special Agent in Charge Robert Bourbon. “Even more importantly, it runs the risk of soiling the reputation of our federal criminal justice system, which prides itself on delivering just results, regardless of an individual’s wealth or access to those in power.”
“If you are a victim, it is critical that you reach out to us,” said FBI Special Agent in Charge Perrye K. Turner. “This case highlights that justice is blind and underscores the FBI’s impartiality when investigating cases.”
Colitha Patrice Bush, 36, and Alvin James Warrick, 40, both of Beaumont, Texas, as well as Ronald Bennett Shepherd, 32, of Houston, Texas, each pled guilty to a single count of conspiracy to commit mail fraud and wire fraud, in violation of Title 18, United States Code, Section 1349, in connection with their participation in the multi-year fraud scheme. In addition to the Southern District of Florida matter (Case No. 16-CR-20698-JAL)), Warrick and Bush also pled guilty to one count of conspiracy to commit wire fraud in a related case originally brought in the Eastern District of Texas, and subsequently transferred to Florida (Case No. 17-CR-20194-JAL).
Bush’s sentencing for both cases is scheduled for June 7, 2017, at 3:00 p.m. before U.S. District Judge Joan A. Lenard. Warrick’s sentencing is scheduled for May 31, 2017, at 3:00 p.m., and Shepherd’s sentencing is scheduled for May 24, 2017, at 3:00 p.m., also before U.S. District Judge Joan A. Lenard. The defendants each face a statutory maximum penalty of 20 years in prison as to each count.
According to court documents, from 2009 through September 7, 2016, Warrick, Bush, Shepherd, and others held themselves out as owners and operators of Private Services, a company that reportedly worked with a network of informants and law enforcement personnel to identify and provide information and third party cooperation that could be credited to federal inmates in Rule 35 proceedings. Using aliases such as “Peter Candlewood,” “Diane Lane,” and “Diane Rice,” the defendants targeted federal inmates and their families by promising that they could provide substantial assistance services, which would be used to help secure the early release of the inmates. In return, the defendants required relatives of the federal inmates to make periodic payments via cash, check, wire, and electronic fund transfer, in order for the third party cooperation process to supposedly be conducted. Overall, more than $4.4 million was paid to the defendants by at least twenty-two victims.
As part of the scheme, Warrick and Bush also provided fake invoices and fraudulent documents allegedly showing agreements between various U.S. Attorney’s Offices, including the Eastern District of New York and the Southern District of New York, and a company affiliated with Private Services. In fact, the agreements were fake, the prosecutors’ signatures were forged, and no substantial assistance was provided on behalf of these inmates. Instead, Warrick, Bush and Shepherd simply received payments from relatives of federal inmates, and used the fraudulently obtained funds for their personal use and benefit, including the purchase of luxury automobiles, vacations, and gambling activities.
Mr. Greenberg commended the investigative efforts of the DOJ-OIG, the FBI, the Houston Police Department, and the U.S. Attorney’s Offices in the Eastern District of New York, Northern District of New York, Southern District of New York, Eastern District of Texas, and Eastern District of Virginia, who provided significant and valuable support to this joint investigation. The Southern District of Florida case is being prosecuted by Assistant United States Attorney Anne P. McNamara. The Eastern District of Texas case is being prosecuted by Assistant United States Attorney Robert L. Rawls.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Health and Palliative Services of the Treasure Coast, Inc., The Hospice of Martin and St. Lucie, Inc., and Hospice of the Treasure Coast, Inc. have paid $2.5 million to settle allegations that they violated the False Claims Act by submitting false claims to Medicare for hospice patients.
“When individuals file false claims, they defraud Medicare’s hospice benefit program and divert taxpayer monies away from vital services,” stated U.S. Attorney for the Southern District of Florida Benjamin G. Greenberg. “The U.S. Attorney’s Office will continue to aggressively pursue all health care providers who violate statutory and regulatory provisions that are designed to protect the citizens who depend upon the legitimate care provided by government-sponsored healthcare programs.”
“Those who would exploit Medicare’s hospice benefit to boost their profits in lieu of patient care expropriate precious tax dollars intended for terminal patients in a time of great need,” said Special Agent in Charge Shimon R. Richmond of the U.S. Health and Human Services, Office of the Inspector General (HHS-OIG). “Our Special Agents will relentlessly pursue health care professionals who threaten the integrity of Federal health care programs."
According to the record, Health and Palliative Services of the Treasure Coast, Inc., The Hospice of Martin and St. Lucie, Inc., and Hospice of the Treasure Coast, Inc. (“the defendants”) are providers of hospice services, in that they, among other things, operate and maintain hospice care facilities and provide home hospice care and hospice services in assisted living facilities and skilled nursing homes throughout the "Treasure Coast” of Florida (an area located on the state's Atlantic coast, comprised of Indian River, St. Lucie, and Martin Counties). The settlement, recently made public, resolved allegations that between 2005 and 2011, the defendants knowingly submitted or caused to be submitted false claims to Medicare, for services to hospice patients who were not eligible for all or part of their hospice care under Medicare requirements. Medicare’s hospice benefit is available for patients who elect palliative treatment (medical care focused on the patient’s relief from pain and stress) for a terminal illness and have a life expectancy of six months or less if their disease runs its normal course. Patients who elect the hospice benefit forgo the right to curative care (medical care focused on treating the patient’s illness).
The allegations settled in this case arose from a lawsuit filed by whistleblowers, John Simons, M.D. and Lewis Cook, M.D., under the qui tam provisions of the False Claims Act. Under the False Claims Act, private citizens can bring suit on behalf of the government for false claims and share in any recovery. The whistle blowers in this matter were medical doctors formerly employed by the defendants. The doctors alleged that the defendants’ hospice centers were submitting false claims to the United States in relation to hospice care for Medicare patients. The whistle blowers’ complaint alleged that the defendants billed for patients who were not terminally ill and thus did not qualify for the hospice benefit. The doctors received $476,373.73 from the announced recovery.
This case is captioned United States ex rel. John Simons and Lewis Cook v. Health and Palliative Services of the Treasure Coast, Inc., 11-14328-Martinez (S.D. Fla.). This matter was handled by Southern District of Florida Assistant U.S. Attorney Mark Lavine and HHS-OIG.
Related court documents may be found on the website of the District Court for the southern District of Florida at www.flsd.uscourts.gov. or http://pacer.flsd.uscourts.gov.
Description: The fiscal year of the data file obtained from the AOUSC
Format: YYYY
Description: The code of the federal judicial circuit where the case was located
Format: A2
Description: The code of the federal judicial district where the case was located
Format: A2
Description: The code of the district office where the case was located
Format: A2
Description: Docket number assigned by the district to the case
Format: A7
Description: A unique number assigned to each defendant in a case which cannot be modified by the court
Format: A3
Description: A unique number assigned to each defendant in a case which can be modified by the court
Format: A3
Description: A sequential number indicating whether a case is an original proceeding or a reopen
Format: N5
Description: Case type associated with the current defendant record
Format: A2
Description: A concatenation of district, office, docket number, case type, defendant number, and reopen sequence number
Format: A18
Description: A concatenation of district, office, docket number, case type, and reopen sequence number
Format: A15
Description: The status of the defendant as assigned by the AOUSC
Format: A2
Description: A code indicating the fugitive status of a defendant
Format: A1
Description: The date upon which a defendant became a fugitive
Format: YYYYMMDD
Description: The date upon which a fugitive defendant was taken into custody
Format: YYYYMMDD
Description: The date when a case was first docketed in the district court
Format: YYYYMMDD
Description: The date upon which proceedings in a case commenced on charges pending in the district court where the defendant appeared, or the date of the defendant’s felony-waiver of indictment
Format: YYYYMMDD
Description: A code used to identify the nature of the proceeding
Format: N2
Description: The date when a defendant first appeared before a judicial officer in the district court where a charge was pending
Format: YYYYMMDD
Description: A code indicating the event by which a defendant appeared before a judicial officer in the district court where a charge was pending
Format: A2
Description: A code indicating the type of legal counsel assigned to a defendant
Format: N2
Description: The title and section of the U.S. Code applicable to the offense committed which carried the highest severity
Format: A20
Description: A code indicating the level of offense associated with FTITLE1
Format: N2
Description: The four digit AO offense code associated with FTITLE1
Format: A4
Description: The four digit D2 offense code associated with FTITLE1
Format: A4
Description: A code indicating the severity associated with FTITLE1
Format: A3
Description: The title and section of the U.S. Code applicable to the offense committed which carried the second highest severity
Format: A20
Description: A code indicating the level of offense associated with FTITLE2
Format: N2
Description: The four digit AO offense code associated with FTITLE2
Format: A4
Description: The four digit D2 offense code associated with FTITLE2
Format: A4
Description: A code indicating the severity associated with FTITLE2
Format: A3
Description: The title and section of the U.S. Code applicable to the offense committed which carried the third highest severity
Format: A20
Description: A code indicating the level of offense associated with FTITLE3
Format: N2
Description: The four digit AO offense code associated with FTITLE3
Format: A4
Description: The four digit D2 offense code associated with FTITLE3
Format: A4
Description: A code indicating the severity associated with FTITLE3
Format: A3
Description: The title and section of the U.S. Code applicable to the offense committed which carried the fourth highest severity
Format: A20
Description: A code indicating the level of offense associated with FTITLE4
Format: N2
Description: The four digit AO offense code associated with FTITLE4
Format: A4
Description: The four digit D2 offense code associated with FTITLE4
Format: A4
Description: A code indicating the severity associated with FTITLE4
Format: A3
Description: The FIPS code used to indicate the county or parish where an offense was committed
Format: A5
Description: The date of the last action taken on the record
Format: YYYYMMDD
Description: The date upon which judicial proceedings before the court concluded
Format: YYYYMMDD
Description: The date upon which the final sentence is recorded on the docket
Format: YYYYMMDD
Description: The date upon which the case was closed
Format: YYYYMMDD
Description: The total fine imposed at sentencing for all offenses of which the defendant was convicted and a fine was imposed
Format: N8
Description: A count of defendants filed including inter-district transfers
Format: N1
Description: A count of defendants filed excluding inter-district transfers
Format: N1
Description: A count of original proceedings commenced
Format: N1
Description: A count of defendants filed whose proceedings commenced by reopen, remand, appeal, or retrial
Format: N1
Description: A count of defendants terminated including interdistrict transfers
Format: N1
Description: A count of defendants terminated excluding interdistrict transfers
Format: N1
Description: A count of original proceedings terminated
Format: N1
Description: A count of defendants terminated whose proceedings commenced by reopen, remand, appeal, or retrial
Format: N1
Description: A count of defendants pending as of the last day of the period including long term fugitives
Format: N1
Description: A count of defendants pending as of the last day of the period excluding long term fugitives
Format: N1
Description: The source from which the data were loaded into the AOUSC’s NewSTATS database
Format: A10
Description: A sequential number indicating the iteration of the defendant record
Format: N2
Description: The date the record was loaded into the AOUSC’s NewSTATS database
Format: YYYYMMDD
Description: Statistical year ID label on data file obtained from the AOUSC which represents termination year
Tampa, Florida – United States Attorney Roger Handberg announces the successful extraditions of Akinola Taylor of the United Kingdom, Olayemi Adafin of the United Kingdom, Olakunle Oyebanjo of the United Kingdom, and Kazeem Olanrewaju Runsewe of Sweden. These individuals have been charged in the Middle District of Florida with conspiracy to commit wire fraud, filing false claims with the United States, theft of public money or property, and aggravated identity theft. Taylor, Adafin, and Runsewe were arrested on November 30, 2022, and Oyebanjo was arrested on December 2, 2022. Taylor, Adafin, and Oyebanjo were apprehended in London, United Kingdom at the request of the United States, and Runswewe was apprehended in Malmo, Sweden at the request of the United States. In connection with the arrests, foreign authorities conducted searches of the residences of Taylor and Runsewe. These individuals first appeared in the Middle District of Florida in May and June 2023. Another related defendant, Ogunlana Oluwarotimi of Texas, was arrested in Texas in January 2023 and is currently pending trial.
If convicted, each faces a maximum penalty of 20 years in federal prison for the wire fraud conspiracies, as well as additional penalties for the remaining counts. The indictments also notify the defendants that the United States intends to forfeit assets which are alleged to be traceable to proceeds of the offenses.
According to their indictments, Taylor and Runsewe obtained unauthorized access to United States businesses’ computer servers, participated in stealing from those servers the personally identifying information (PII) of U.S. residents, and used that information to file false and fraudulent IRS Form 1040, U.S. Individual Income Tax Returns (“Form(s) 1040”) seeking income tax refunds from the IRS. Adafin, Oyebajno, Ogunlana, and others assisted in the collection of fraud proceeds directed to prepaid debit cards in their possession or to addresses or bank accounts they controlled or to which they had access and transferred a share of the fraud proceeds to other conspirators.
One of the places that Taylor and Runsewe had obtained unauthorized access to computer servers was the xDedic Marketplace, a website that operated for years and was used to sell access to compromised computers worldwide and the PII of U.S. residents. The xDedic administrators strategically maintained servers all over the world to facilitate the operation of the website.
The xDedic Marketplace was taken down as part of coordinated, global enforcement operations led by the FBI Tampa Division, the IRS-CI Tampa Field Office, and the U.S. Attorney’s Office for the Middle District of Florida.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This investigation was led by the IRS-CI Cyber Crimes Unit in Washington, D.C. Substantial assistance was provided by the IRS-CI Tampa Field Office, the FBI Tampa Division, the Department of Justice’s Office of International Affairs, IRS-CI International Operations at Mission UK and Canada, Homeland Security Investigations (HSI), the United Kingdom’s National Extradition Unit, the United Kingdom’s Eastern Region Special Operation Unit, the United Kingdom’s North West Regional Organized Crime Unit, and the Swedish Economic Crime Authority. The cases will be prosecuted by Assistant United States Attorney Rachel Jones.
Fort Myers, FL – United States Attorney Maria Chapa Lopez announces today that Hope Hospice has agreed to pay the United States $3.2 million to resolve allegations that it knowingly submitted false claims to Medicare, Medicaid, and TRICARE for hospice care provided to beneficiaries who did not qualify for the service. Founded in 1979, Hope Hospice is a subsidiary of Hope Healthcare. Hope Healthcare is a not-for-profit organization that provides a variety of programs for the elderly in Lee, Hendry, and Glades Counties, including hospice and palliative care services.
Hospice care is special end-of-life care for terminally ill patients intended to comfort the dying. Patients admitted to hospice care generally stop receiving coverage for traditional medical care intended to cure their illnesses and instead receive medical care focused on providing them with relief from the symptoms, pain, and stress of a terminal illness. Medicare patients are considered to be terminally ill and hospice eligible when they have a life expectancy of six months or less if their illness runs its normal course.
This settlement resolves allegations that Hope Hospice knowingly submitted false claims to Medicare for hospice services for patients who were not terminally ill. According to the settlement agreement, the United States alleged that from July 1, 2012 to June 30, 2016, Hope Hospice billed Medicare for four or more years of hospice care for certain patients who were not terminally ill for at least a portion of their greater than four year hospice stay.
The settlement also resolves allegations that Hope Hospice knowingly submitted false claims to Medicare, Medicaid, and TRICARE for general inpatient (“GIP”) hospice care in circumstances where that higher level of care was not medically necessary. Medicare, Medicaid, and TRICARE reimburse for four different levels of hospice care: routine home care, continuous home care, inpatient respite care, and GIP. GIP is for pain control or symptom management that cannot be managed in other settings, such as a patient’s home. GIP is intended to be short-term and is reimbursed at a higher rate than routine home care or inpatient respite care. According to the settlement agreement, the United States alleged that Hope Hospice knowingly submitted false claims from January 1, 2011 to June 30, 2016, to Medicare, Medicaid and TRICARE for unnecessary GIP hospice care for certain patients for whom Hope Hospice billed for over two weeks of GIP care.
As part of the settlement, Hope Hospice has agreed to enter into a Corporate Integrity Agreement (CIA) with HHS OIG. The CIA promotes compliance with the statutes, regulations, program requirements, and written directives of Medicare, Medicaid, and all other federal health care programs, specifically dealing with, among other things, the proper billing and submission of reimbursement claims by Hope Hospice.
“Our seniors rely on the hospice program to provide them with quality care, dignity and respect, when they are terminally ill and need end-of-life care,” said United States Attorney Maria Chapa Lopez. “This investigation and settlement demonstrates our continued commitment to combating health care fraud and protecting the financial solvency of this critical benefit.”
Attorney General Ashley Moody said, “Hospice care has brought peace of mind and reduced suffering for so many Floridians and their families. It is vital that we ensure this compassionate health care service is not exploited and that Medicaid recipients nearing the end of their journey are able to access these end-of-life resources to help bring dignity and peace to those with terminal illnesses. I am proud to work with our federal partners to preserve the integrity of hospice care in Florida.”
“Hospice care is designed to provide quality end-of-life care and is only medically appropriate – and reimbursable by Medicare – for terminally ill patients,” said Special Agent in Charge Omar Pérez Aybar of the U.S. Department of Health and Human Services Office of Inspector General (HHS OIG). “HHS OIG, in concert with our investigative and prosecutive partners, will continue to vigorously pursue and hold accountable providers who knowingly submit fraudulent claims to Medicare and Medicaid.”
"This settlement is representative of quality, uncompromising work by DCIS, our investigative partners and the U.S. Attorney's Office to ensure the integrity of the Department of Defense’s Healthcare system, commented Cynthia A. Bruce, Special Agent in Charge, Southeast Field Office, Defense Criminal Investigative Service. We are committed to fully investigating allegations of fraud, waste and abuse, which jeopardize our military families’ precious healthcare resources."
The settlement concludes a lawsuit originally filed in the United States District Court for the Middle District of Florida by Margaret Peters who formerly worked at Hope Hospice as the Director of Hospice Care. Peters sued under the qui tam, or whistleblower, provisions of the False Claims Act permitting a private citizen to sue on behalf of the United States for false claims and to share in the recovery. The case is captioned U.S. and the State of Florida ex rel. Margaret Peters v. Hope Hospice and Community Services, et al, No. 2:16-cv-6-FtM-99MRM. The Act also allows the United States to intervene and prosecute the action. Peters will receive 19% of the proceeds from the settlement with Hope Hospice.
The investigation was handled by the Fort Myers Division of the U.S. Attorney’s Office for the Middle District of Florida and Trial Attorney Holly H. Snow from the Civil Division’s Commercial Litigation Branch, with assistance from the U.S. Department of Health and Human Services – Office of Inspector General, Defense Criminal Investigative Service, and the State of Florida Medicaid Fraud Control Unit Civil Enforcement Bureau. The claims resolved by the settlement are allegations only, and there has been no determination of liability.
The government’s action in this matter illustrates the emphasis on combating health care fraud, and one of the most powerful tools in this effort is the False Claims Act. Tips from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
WASHINGTON – The Justice Department today announced the unsealing of eight indictments in the Middle and Southern Districts of Florida charging China-based companies and their employees with crimes relating to fentanyl and methamphetamine production, distribution of synthetic opioids, and sales resulting from precursor chemicals.
The indictments build on prosecutions announced in June and mark the second set of prosecutions to charge China-based chemical manufacturing companies and nationals of the People’s Republic of China (PRC) for trafficking fentanyl precursor chemicals into the United States.
The indictments complement actions taken today by the Department of the Treasury’s Office of Foreign Assets Control (OFAC) to designate 28 individuals and entities involved with the international proliferation of illicit drugs.
“We know that the global fentanyl supply chain, which ends with the deaths of Americans, often starts with chemical companies in China,” said Attorney General Merrick B. Garland. “The United States government is focused on breaking apart every link in that chain, getting fentanyl out of our communities, and bringing those who put it there to justice.”
“The international dimension to the deadly scourge of fentanyl requires the all-of-government response that we are delivering today,” said Secretary of Homeland Security Alejandro Mayorkas. “Through the dedication and investigative abilities of agents and officers from HSI, CBP, and our federal partners, we are bringing accountability to ruthless organizations and individuals resident in the People’s Republic of China and to the cartel members that seek to profit from the death and destruction that fentanyl causes.”
“The charges announced today are another down payment on the Justice Department’s pledge to every American family that has lost a loved one to fentanyl poisoning,” said Deputy Attorney General Lisa O. Monaco. “Just as we did in the fight against terrorists and cybercriminals, we are deploying a whole-of-government approach – sharing intelligence, combining resources, and relentlessly pursuing justice – to attack the global supply chain fueling the fentanyl crisis. We will not rest until we have rid our communities of this poison.”
“Fentanyl is the deadliest drug threat our nation has ever faced. These eight cases are the result of DEA’s efforts to attack the fentanyl supply chain where it starts — in China. Chinese chemical companies are fueling the fentanyl crisis in the United States by sending fentanyl precursors, fentanyl analogues, xylazine, and nitazenes into our country and into Mexico. These chemicals are used to make fentanyl and make it especially deadly,” said Drug Enforcement Administration (DEA) Administrator Anne Milgram. “DEA will not stop until we defeat this threat. We are grateful to our law enforcement partners whose collaboration and dedication have made these actions possible. I am also deeply grateful for the incredible work by the DEA Miami Field Division. Their pursuit of these organizations demonstrates the drive and determination of the men and women, who are working as one DEA, to defeat the cartels and their entire global supply chain.”
“This investigation of a narcotics trafficker utilizing counterfeit postage labels highlights the unique jurisdiction of the Postal Inspection Service,” said Chief Postal Inspector Gary R. Barksdale of the U.S. Postal Inspection Service (USPIS). “This indictment is a win in our battle against counterfeit postage and those seeking to use the nation’s mail system to distribute dangerous substances.”
The DEA led the investigations brought in both districts and used its unique authority to specially schedule protonitazene and metonitazene as Schedule I controlled substances, which was necessary as their adverse health effects, including death, pose an imminent threat to public safety. As a result of that order, the regulatory controls and administrative, civil, and criminal sanctions applicable to Schedule I controlled substances can be imposed on persons who handle or propose to handle these substances. In addition, Homeland Security Investigations (HSI) and U.S. Customs and Border Protection (CBP) seized more than 1,000 kilograms of fentanyl-related precursor chemicals, and the USPIS also traced packages containing the precursor chemicals mailed through the U.S. mail and analyzed their contents after seizure.
Fentanyl is the deadliest drug threat facing the United States. Not only is fentanyl 50 times more potent than heroin and 100 times more potent than morphine, a dose of as little as two milligrams can kill a grown adult. Fentanyl analogues are similar in chemical structure and effects as fentanyl. Fentanyl is the leading cause of death for Americans ages 18 to 49. From February 2022 to January, at least 105,263 Americans died of drug overdoses, the majority of which involved synthetic opioids such as fentanyl and fentanyl analogues.
Protonitazene and metonitazene are synthetic opioids that were emergency listed as Schedule I controlled substances in April 2022. There are no approved medical uses for protonitazene and metonitazene in the United States, or anywhere else in the world. Drug traffickers typically mix protonitazene and metonitazene with other opioids, such as fentanyl, to create new and more powerful cocktails of dangerous opioids. Methamphetamine overdose deaths are also surging in the United States. Methamphetamine is becoming more deadly because it is more frequently being mixed with highly potent fentanyl. There are currently no FDA-approved medications for treating methamphetamine use disorder or reversing overdoses. Drug overdose deaths involving psychostimulants, primarily methamphetamine, rose from 547 deaths in 1999 to 32,537 deaths in 2021.
The manufacture of fentanyl and methamphetamine begins with raw chemicals, known as precursors. Fentanyl and methamphetamine precursors, opioid additives, and synthetic opioids are manufactured and distributed by China-based chemical companies, many of which openly advertise on the internet. These China-based manufacturers ship fentanyl and methamphetamine precursors, opioid additives, and synthetic opioids around the world, including to the United States and Mexico, where drug cartels and traffickers combine the chemicals and then distribute fentanyl and methamphetamines throughout the United States to individual users.
These China-based chemical companies often attempt to evade law enforcement by using re-shippers in the United States, false return labels, false invoices, fraudulent postage, and packaging that conceals the true contents of the parcels and the identity of the distributors. In addition, these companies tend to use cryptocurrency transactions to conceal their identities and the location and movement of their funds.
The primary distributors of fentanyl and fentanyl analogues in North America are the Sinaloa Cartel based in Sinaloa, Mexico, and the Cartel Jalisco Nueva Generación based in Jalisco, Mexico. These two transnational criminal organizations have significant presences throughout Mexico, maintain distribution hubs in various cities across the United States, and control smuggling corridors into the United States.
Organizations such as the Sinaloa Cartel and Cartel Jalisco Nueva Generación receive fentanyl precursors from China that are then synthesized within clandestine laboratories into finished fentanyl at scale. China-based precursor chemical manufacturers ship precursors from mainland China by, among other methods, mislabeling the products being shipped and using containers and other packaging to mask their illicit contents.
Middle District of Florida
Five indictments were unsealed in the Middle District of Florida charging five Chinese corporations and eight Chinese nationals with the illegal importation of fentanyl and fentanyl-related chemicals into the United States.
According to the indictments, the defendants openly advertised their ability to thwart U.S. customs and deliver the chemicals used to make fentanyl to the Middle District of Florida and elsewhere in the United States. The defendants used fake shipping labels and special delivery procedures to ensure the illicit chemicals went undetected. The defendants played various roles, such as coordinators and suppliers, and eight defendants are also charged with international money laundering. According to the indictments, the Chinese companies demonstrated past success delivering a stable supply of product to clients in Mexico for years.
“The protection of our country from the deadly scourge of fentanyl is a key priority of the Department of Justice and my office,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “We will continue to pursue cases against Chinese chemical companies who are knowingly manufacturing and exporting fentanyl precursors to profit on the pain and suffering of people in the United States. We thank our partners at the Drug Enforcement Administration for their tireless efforts in support of these prosecutions.”
Hebei Shenghao Import and Export Company, based in Shijiazhuang, Hebei Province, China, is charged with fentanyl trafficking conspiracy, along with Chinese nationals Qingshun Li, 29, who allegedly negotiates the sale of precursor chemicals and maintains a bank account for the receipt of payments; Qingsong Li, 32; and Chunhui Chen, 33, both of whom allegedly maintain cryptocurrency wallets for the remittance of payments of precursor chemicals; Chunzhou Chen, 30, who allegedly received Western Union payments on behalf of Hebei Shenghao.
Lihe Pharmaceutical Technology Company, based in Wuhan, Hebei Province, China, was charged with fentanyl trafficking conspiracy and international money laundering, along with Chinese nationals Mingming Wang, 34, who is the alleged holder for three bitcoin accounts shared by sales agents for Lihe Pharmaceutical, and Xinqiang Lu, 40, the alleged recipient of funds via Western Union on the company’s behalf.
Henan Ruijiu Biotechnology Company, based in Zhengzhou, Henan Province, China, was charged with attempted importation of fentanyl precursor and attempted international money laundering, along with Chinese national Yongle Gao, 30, who is the alleged registered owner of the bitcoin wallet associated with Henan Ruijiu.
Xiamen Wonderful Biotechnology Company, based in Xiamen, Fujian Province, China, was charged with attempted importation of fentanyl precursor and attempted international money laundering, along with Chinese national Guo Liang, 34, the alleged registered owner of the bitcoin wallet associated with Xiamen Wonderful.
Anhui Ruihan Technology Company, based in Hefei, Anhui Province, China, was charged with attempted importation of fentanyl precursor and attempted international money laundering.
DEA investigated these cases.
Assistant U.S. Attorney Daniel Baeza and Special Assistant U.S. Attorney Michael Leath for the Middle District of Florida are prosecuting the cases.
Southern District of Florida
Three indictments were unsealed in the Southern District of Florida charging three Chinese companies and four officers and employees with fentanyl trafficking, synthetic opioid trafficking, precursor chemical importation, defrauding the U.S. Postal Service, and making and using counterfeit postage.
“Targeting those who fuel the opioid epidemic, regardless of who they are and where they are operating from, is one of our district’s top priorities,” said U.S. Attorney Markenzy Lapointe for the Southern District of Florida. “Today, we announced charges against the Chinese companies and employees that manufacture and introduce the raw chemicals at the start of the fentanyl and methamphetamine supply chain. This is only the beginning of our fight. The precursors and synthetic opioids that are being marketed, sold, and shipped to the United States and Mexico are being mixed and re-distributed into our local communities as powerful and potentially deadly cocktails of controlled substances. We commend our partner agencies for their skill and resourcefulness, as we work collectively to prosecute the sources of the poison and protect the public.”
Hanhong Medicine Technology Company, a pharmaceutical company located in Wuhan, Hubei Province, China, was charged in a four-count indictment, along with Chinese nationals Changgen Du, 30, and Xuebi Gan, 28. According to the indictment, Hanhong has exported large quantities of fentanyl precursors and non-opioid additives, like xylazine, to the United States and Mexico, including to a drug trafficker in Pennsylvania and to a drug trafficker in the Sinaloa cartel for the manufacture of fentanyl in Mexico for eventual distribution in the United States. Xylazine is often mixed with fentanyl to increase the effects of the drug for users. Xylazine is a non-opioid drug approved for veterinary use for purposes of sedation, anesthesia, muscle relaxation, and pain relief in horses, cattle, and other animals. It is not approved for human use. Many opioid users are unaware they are taking xylazine. Overdose deaths involving xylazine have steadily increased year over year. Drug users who inject xylazine, or drug mixtures containing xylazine, often develop necrotic tissue resulting in disfiguring wounds or amputation.
The Du Transnational Criminal Organization is listed on the United States Attorney General’s Consolidated Priority Organization Target (CPOT) list. The CPOT list identifies the most significant transnational criminal organizations presenting a priority threat to the United States, including those international drug and money laundering organizations affecting the illicit drug supply of the United States. The CPOT list identifies those criminal organizations by the name(s) of their leaders. Du, as the criminal organization’s leader, is the director of Hanhong and allegedly negotiates sales with customers. Gan is an alleged sales representative. Du and Gan each operated a crypocurrency wallet that accepted payment for Hanhong’s sales. The four-count indictment charges Hanhong, Du, and Gan with conspiracy to manufacture and distribute fentanyl; conspiracy to manufacture and distribute a fentanyl precursor with intent to unlawfully import it into the U.S.; manufacturing and distributing a fentanyl precursor with intent to unlawfully import it into the U.S.; and conspiracy to commit money laundering.
Jiangsu Bangdeya New Material Technology Company, a pharmaceutical company located in Jiangsu, China, was charged in an eight-count indictment, along with Jiantong Wang, 40, a Chinese national and alleged owner and operator of Bangdeya. The indictment alleges that Bangdeya advertises openly online as an export company for chemicals, including synthetic opioids protonitazene and metonitazene. The introduction of these synthetic opioids into the illicit drug market threatens to exacerbate the overdose problem in the United States. Drug traffickers typically mix protonitazene and metonitazene with other opioids, such as fentanyl, to create new and more powerful cocktails of dangerous opioids. Bengdeya has imported large quantities of these synthetic opioids into the U.S., including to a drug trafficker in the Southern District of Florida.
Bangdeya and Wang were charged with conspiracy to import protonitazene and metonitazene; conspiracy to distribute protonitazene and metonitazene; multiple counts of distribution of protonitazene; conspiracy to defraud the United States and make and use forged and counterfeited postage; and making and printing unauthorized postage meter stamps.
Hubei Guanlang Biotechnology Company, a chemical company located in Shijaizhuang, Hebei Province, China, was charged in a two-count indictment, along with Chinese national Wei Zhang, 28, who allegedly runs the day-to-day operations of the company and operates a cryptocurrency wallet that accepts payment for the company’s sales of fentanyl precursors and opioid additives.
According to the indictment, Guanlang openly advertises online and sells an array of chemicals, including methamphetamine precursors like methylamine HCL, to customers in the United States and Mexico. Methylamine HCL is an essential precursor chemical that Mexican cartels use to manufacture highly pure and potent methamphetamine. Currently, most of the methamphetamine supply in the United States is produced by drug trafficking cartels in Mexico.
Guanlang and Zhang are charged with conspiracy to manufacture and distribute a methamphetamine precursor and unlawfully import into the U.S. and conspiracy to unlawfully import a methamphetamine precursor into the U.S. with the intent to manufacture methamphetamine; and the manufacture and distribution of a methamphetamine precursor that was unlawfully imported into the United States.
The DEA Miami Field Division, HSI Miami, USPIS-Miami, IRS-CI Miami, and FBI Miami Field Office investigated these cases.
Assistant U.S. Attorney Monique Botero and Jon Juenger for the Southern District of Florida are prosecuting the cases. Assistant U.S. Attorney Michell Hyman for the Southern District of Florida is handling asset forfeiture.
The U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) provided assistance with the indictments brought in both districts.
The indictments are a result of Organized Crime Drug Enforcement Task Forces (OCDETF) investigations. The OCDETF mission is to identify, disrupt, and dismantle the highest-level criminal organizations that threaten the United States, using a prosecutor-led, intelligence-driven, multi-agency task force approach. OCDETF synchronizes and incentivizes prosecutors and agents to lead smart, creative investigations targeting the command-and-control networks of organized criminal groups and the illicit financiers that support them. Additional information about the OCDETF Program may be found at www.justice.gov/OCDETF.
Members of the South Florida High Intensity Drug Trafficking Area (HIDTA) Task Force carried out this case and prosecution. HIDTA was established in 1990. This program, which is made up of federal, state, and local law enforcement agencies, fosters intra-agency cooperation among law enforcement agencies in South Florida and involves them in developing a strategy to target the region's drug-related and violent crime threats to public safety, as with the opioid epidemic, fentanyl, and the cocaine threat to our nation. The South Florida HIDTA uses the funding provided by the Office of National Drug Control Policy, out of the Executive Office of the President of the United States, that sponsors a variety of law enforcement initiatives that target the region's illicit drug and violent crime threats to our community.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
WASHINGTON - Four men from Kentucky, North Carolina, Texas, and Virginia were sentenced to various terms after they were convicted of multiple felony and misdemeanor charges related to their conduct during the Jan. 6, 2021, breach of the U.S. Capitol. Their actions and the actions of others disrupted a joint session of the U.S. Congress convened to ascertain and count the electoral votes related to the 2020 presidential election. Sentenced on Sept. 19, 2024, by U.S. District Judge Jia M. Cobb are Stephen Chase Randolph, 34, of Harrodsburg Kentucky; James Tate Grant, 31, of Cary, North Carolina; Jason Benjamin Blythe, 28, of Fort Worth, Texas; and Paul Russell Johnson, 38, of Lanexa, Virginia. Randolph was sentenced to 8 years in prison, 36 months of supervised release, and ordered to pay $2,000 in restitution. Grant was sentenced to 36 months in prison, 36 months of supervised release, and ordered to pay $2,000 in restitution. Blythe was sentenced to 30 months in prison, 36 months of supervised release, and ordered to pay $2,000 in restitution. Johnson was sentenced to five years of probation, conditions of which include, intermittent confinement on the weekends for the first year, followed by two years of home and ordered to pay a $25,000 fine and $2,000 in restitution. A fifth defendant, Ryan Samsel, 40, of Bristol, Pennsylvania, will be sentenced on February 4, 2025 All five defendants were convicted of civil disorder. Ryan Samsel and Steven Chase Randolph were found guilty of assaulting Officer C.E. with a deadly or dangerous weapon and inflicting bodily injury (a metal crowd control barrier). James Tate Grant, Paul Russell Johnson, and Benjamin Blythe were found guilty of assaulting Officer D.C. with a deadly or dangerous weapon (a metal crowd control barrier). Randolph was convicted of an additional felony charge of assaulting, resisting, or impeding Officer D.C. Samsel was convicted of additional felony charges of civil disorder, assaulting, resisting, or impeding certain officers; and assaulting, resisting, or impeding certain officers using a dangerous weapon (a wooden plank). According to evidence presented during the trial, the group participated in the first breach of the restricted Capitol grounds on Jan. 6, 2021, and led the initial attack on United States Capitol Police (USCP) officers. Their attack paved the way for thousands of rioters to storm the Capitol grounds. At approximately 12:40 p.m., the five men joined with other rioters at the Peace Circle, across from the Capitol grounds. Here, the sidewalk at the edge of the Capitol grounds across the street from the Peace Circle was blocked by linked bike-rack barricades. A second set of bike rack barricades, with signs that read “Area Closed By Order of the United States Capitol Police Board” and reinforced with snow fencing and zip ties, barred the way up the Pennsylvania Walkway, a footpath that runs from the Capitol to the sidewalk across the street from the Peace Circle. At about 12:50 p.m., Samsel approached the first barricade, opened a section, entered the restricted grounds, and approached the Capitol via the Pennsylvania Walkway. This marked the first breach of the restricted perimeter. Grant followed closely behind Samsel and waived the crowd forward onto the restricted grounds. Defendants Johnson, Blythe, Randolph, and others in the crowd followed Grant and Samsel past the first barricade and walked toward the officers standing behind the second barricade. At around that same time, Johnson shouted a series of exclamations, including “Let’s go!” “We pay your bills!” and “You back the f— off!” over his megaphone. Samsel and Grant then began to forcibly push and pull on the second barricade while officers held it in place. Samsel stopped pushing long enough to remove his denim jacket, hand it to someone off-camera, and turn his red “Make America Great Again” hat around backward. Johnson handed off his megaphone and backpack to someone behind him in the crowd. Randolph began to forcibly push and pull on the fence directly across from USCP officers. Johnson, Grant and Samsel joined Randolph in lifting the linked metal bike rack barricade off the ground. Blythe moved forward and grabbed the barricade with the other four defendants, and the five drove the metal bike rack barricade into a line of USCP officers. As they drove the metal bike rack barricade at the police line, one officer was struck in the face. The force of the strike threw the officer backward and caused the officer to slam their head twice: first against a metal handrail, then against the stairs. The officer lost consciousness and suffered a concussion. Another officer was driven several feet backward by the metal bike rack barricade until the back of their body ran into the stairwell and handrail behind them. After the five defendants pushed the metal bike rack barricade into the USCP officers, Randolph jumped over the barricade and grabbed an officer. By this point, the barricades were down, and the officers outmanned. The defendants and the rest of the rioters quickly overwhelmed the police line, and the USCP officers retreated backward toward the Capitol building. The rioters, including the five defendants, then walked to the Capitol building.Each of the five men continued to fuel the riot on January 6th. Samsel assaulted other officers, Johnson incited the crowd over a megaphone, and Grant entered the Capitol building, while Blythe and Randolph climbed to the Upper West Terrace. The five remained at the Capitol for hours. Samsel’s additional assaultive and destructive conduct included grabbing the riot shield of a law enforcement officer while rioters were attempting to overtake police, tearing through the tarp in the scaffolding on the Capitol grounds, waving a flag in the officers’ faces, and taking a 2x4 plank of wood from the scaffolding and throwing it at a group of Metropolitan Police Department (MPD) officers as they struggled to maintain a police line. Defendant Grant climbed through one of the broken windows next to the Senate Wing door and into the Capitol building at approximately 2:50 p.m. He then stormed the halls with other rioters and was recorded with others inside Senator Merkley’s office. Blythe stayed on the Capitol grounds for hours. He climbed the media tower at the steps of the Capitol and joined others in resisting officers who were attempting to clear rioters. Johnson moved with rioters to the West Plaza. Using his megaphone, Johnson loudly and continuously shouted commands to the crowd, alerted them to what he perceived to be happening inside the building, and encouraged them to take action to stop the Congressional proceedings from taking place. Randolph also remained on Capitol grounds for hours, eventually climbing onto the Upper West Terrace, where he observed law enforcement engaged in a struggle with rioters inside and outside the inaugural archway, also known as the Tunnel. This case was prosecuted by the U.S. Attorney’s Office for the District of Columbia and the Department of Justice National Security Division’s Counterterrorism Section. Valuable assistance was provided by the U.S. Attorney’s Office for the Eastern District of Pennsylvania, Eastern District of North Carolina, Eastern District of Virginia, Eastern District of Kentucky, and the Northern District of Texas. This case was investigated by the FBI field offices in Philadelphia, Charlotte, Norfolk, Louisville, Dallas, and Washington, D.C. Valuable assistance was provided by the United States Capitol Police and the Metropolitan Police Department. Samsel was identified as BOLO #51, Grant #50, Johnson #49, Randolph #168, and Blythe #52 on the FBI’s seeking information photos. In the 44 months since Jan. 6, 2021, more than 1,504 individuals have been charged in nearly all 50 states for crimes related to the breach of the U.S. Capitol, including more than 560 individuals charged with assaulting or impeding law enforcement, a felony. The investigation remains ongoing. Anyone with tips can call 1-800-CALL-FBI (800-225-5324) or visit tips.fbi.gov.
Tampa, Florida – Today, the Justice Department announced the launch of the department’s new Combatting Redlining Initiative. Redlining is an illegal practice in which lenders avoid providing services to individuals living in communities of color because of the race or national origin of the people who live in those communities. The new Initiative represents the department’s most aggressive and coordinated enforcement effort to address redlining, which is prohibited by the Fair Housing Act and the Equal Credit Opportunity Act.
“Lending discrimination runs counter to fundamental promises of our economic system,” said Attorney General Merrick B. Garland. “When people are denied credit simply because of their race or national origin, their ability to share in our nation’s prosperity is all but eliminated. “Today, we are committing ourselves to addressing modern-day redlining by making far more robust use of our fair lending authorities. We will spare no resource to ensure that federal fair lending laws are vigorously enforced and that financial institutions provide equal opportunity for every American to obtain credit.”
“Enforcement of our fair lending laws is critical to ensure that banks and lenders are providing communities of color equal access to lending opportunities. Equal and fair access to mortgage lending opportunities is the cornerstone on which families and communities can build wealth in our country,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “We know well that redlining is not a problem from a bygone era but a practice that remains pervasive in the lending industry today. Our new Initiative should send a strong message to banks and lenders that we will hold them accountable as we work to combat discriminatory race and national origin-based lending practices.”
“Discriminatory practices such as Redlining rend the fabric of our society by destroying one of our nation’s foundational principles – equal opportunity for all,” said Acting U.S. Attorney Karin Hoppmann for the Middle District of Florida. The deliberate denial of economic and housing opportunities to individuals based upon race, ethnicity, or nationality is strictly prohibited under the law. The U.S. Attorney’s Office works and will continue to work diligently, with its partners, to enforce our nation’s Fair Housing laws and to prosecute those who engage in criminal discriminatory practices.”
Redlining, a practice institutionalized by the federal government during the New Deal era and implemented then and now by private lenders, has had a lasting negative impact. For American families, homeownership remains the principal means of building wealth, and the deprivation of investment in and access to mortgage lending services for communities of color have contributed to families of color persistently lagging behind in homeownership rates and net worth compared to white families. The gap in homeownership rates between white and Black families is larger today than it was in 1960, before the passage of the Fair Housing Act of 1968.
This Initiative, which will be led by the Civil Rights Division’s Housing and Civil Enforcement Section in partnership with U.S. Attorney’s Offices, will build on the longstanding work by the Division that seeks to make mortgage credit and homeownership accessible to all Americans on the same terms, regardless of race or national origin and regardless of the neighborhood where they live. The Initiative will:
Utilize U.S. Attorneys’ Offices as force multipliers to ensure that fair lending enforcement is informed by local expertise on housing markets and the credit needs of local communities of color.
Expand the department’s analyses of potential redlining to both depository and non-depository institutions. Non-depository lenders are not traditional banks and do not provide typical banking services, but engage in mortgage lending and now make the majority of mortgages in this country.
Strengthen our partnership with financial regulatory agencies to ensure the identification and referrals of fair lending violations to the Department of Justice.
Increase coordination with State Attorneys General on potential fair lending violations.
Individuals may report lending discrimination by calling the Justice Department’s Housing Discrimination Tip Line at 1-833-591-0291, or submitting a report online.
Tampa, Florida – United States Attorney Roger B. Handberg announces the unsealing of four indictments charging Akinola Taylor (Nigeria), Olayemi Adafin (United Kingdom), Olakunle Oyebanjo (Nigeria), and Kazeem Olanrewaju Runsewe (Nigeria), with conspiracy to commit wire fraud, filing false claims with the United States, theft of public money or property, and aggravated identity theft. Taylor, Adafin, and Runsewe, were each arrested on November 30, 2022, and Oyebanjo was arrested on December 1, 2022. Taylor, Adafin, and Oyebanjo were apprehended in London, United Kingdom, and Runswewe was apprehended in Malmo, Sweden. Each will face extradition proceedings. In conjunction with the arrests, foreign authorities conducted searches of the residences of Taylor and Runsewe.
If convicted, each faces a maximum penalty of 20 years in federal prison for the wire fraud count, as well as additional penalties for the remaining counts. The indictments also notify the defendants that the United States intends to forfeit assets which are alleged to be traceable to proceeds of the offense.
According to the indictments, Taylor and Runsewe obtained unauthorized access to United States businesses’ computer servers, participated in stealing from those servers the personally identifying information of United States residents and used that information to file false and fraudulent Internal Revenue Service (IRS) Form 1040, United States Individual Income Tax Returns (“Form(s) 1040”) seeking income tax refunds with the IRS. Adafin and Oyebanjo assisted in the collection fraud proceeds directed to prepaid debit cards in their possession or to addresses or bank accounts they controlled or to which they had access and transferred a share of the fraud proceeds to other conspirators.
One of the places that Taylor and Runsewe had obtained unauthorized access to computer servers was the xDedic Marketplace, a website that operated for years and was used to sell access to compromised computers worldwide and personally identifiable information of U.S. residents. The xDedic administrators strategically maintained servers all over the world to facilitate the operation of the website.
The xDedic Marketplace was taken down as part of coordinated, global enforcement operations led by the FBI (Tampa Division) the IRS-CI (Tampa Field Office) and the U.S. Attorney’s Office for the Middle District of Florida.
The investigation was led by the IRS-CI Cyber Crimes Unit (Washington, D.C). Substantial assistance was provided by the IRS-CI Tampa Field Office, the FBI Tampa Division, the Department of Justice’s Office of International Affairs, IRS-CI International Operations at Mission UK and Canada, Homeland Security Investigations (HSI), the United Kingdom’s National Extradition Unit, the United Kingdom’s Eastern Region Special Operation Unit, the United Kingdom’s North West Regional Organized Crime Unit, and the Swedish Economic Crime Authority.
The cases will be prosecuted by Assistant United States Attorney Rachel Jones.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell today sentenced Chase A. Davis (20, Alva) to six months in federal prison for making a threat over the internet to kill an individual. The court also sentenced Davis to serve 400 hours of community service, to pay $1,440 in restitution to the American Family Association, and to serve a three-year term of supervised release.
Davis had pleaded guilty on November 27, 2019.
According to court documents, on May 22, 2019, Davis transmitted two threats over the internet from Pompano Beach, Florida to Tupelo, Mississippi, to the American Family Association’s Facebook page. The posts contained the following language:
“i am coming to tupelo unexpected with a group of people and we are going to kill every single person who runs your group,” and
“you are the most disgusting people in america. i have put together a group to have you pieces of [expletive] obliterated into dust. yes, i literally mean killing all of you. you people are nothing but disgusting, worn out, and old excuses of human life.”
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Jeffrey F. Michelland.
Two Puerto Rican men were sentenced today to 33 months in prison and three years of supervised release each for federal charges of conspiracy to commit a hate crime and obstruction of justice, arising out of an assault with a dangerous weapon against a transgender woman because of her gender identity.
“The defendants have been held accountable for assaulting a Latina transgender woman because of her gender identity and then trying to obstruct an investigation into that assault,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “No one should live in fear of hate-fueled violence because of who they are. The Justice Department is committed to investigating and prosecuting people who target LGBTQI+ people with acts of violence or who try to obstruct investigations into these heinous crimes. We hope that this prosecution makes clear to LGBTQI+ victims and survivors that we see them, and we hear them, and we will stand up for them when they are targeted by hate-fueled violence.”
“The defendants’ attack endangered and terrified their victim, and such actions have no place in our community,” said U.S. Attorney W. Stephen Muldrow for the District of Puerto Rico. “Bias-motivated violence not only runs contrary to our values but violates federal civil rights laws. We recognize the very real threats and acts of violence faced by the LGBTQI+ community and are determined to use every tool available to preserve the life, safety, and dignity of this community. The U.S. Attorney’s Office will continue to seek justice for all victims of hate crimes and will vigorously prosecute anyone who commits unlawful acts of hate-fueled violence.”
“Every human being should be treated with respect and dignity,” said Special Agent in Charge Joseph Gonzalez of the FBI San Juan Field Office. “There are no minor offenses when it comes to hate crimes. We at the FBI reiterate our position of zero tolerance for hate and ask anyone who has been a victim or a witness to a hate crime, to report it either by calling your local FBI field office or by leaving a tip online through tips.fbi.gov.”
According to court documents, on Feb. 24, 2020, at around 12:29 a.m. ET, Jordany Rafael Laboy-Garcia and Christian Yamaurie Rivera-Otero, along with their former co-defendant Anthony Steven Lobos-Ruiz, were out driving together in Toa Baja, Puerto Rico, when they saw the victim, identified as A.N.L., standing under a tent near the side of the road. The defendants recognized A.N.L. from social media posts concerning an incident that had occurred the day prior at a McDonald’s in Toa Baja. During that incident, A.N.L. had used a stall in the McDonald’s women’s restroom.
Upon recognizing A.N.L., Lobos-Ruiz used his iPhone to record a video of himself yelling, “la loca, la loca,” as well as other disparaging and threatening comments to A.N.L. from inside the car. The defendants then decided to get a paintball gun to shoot A.N.L. and record another iPhone video. Within 30 minutes, they retrieved a paintball gun and returned to the location where they had last seen A.N.L., who was still at that location. Lobos-Ruiz then used his iPhone to record Laboy-Garcia shooting at A.N.L. multiple times with the paintball gun. After the assault ended, Lobos Ruiz shared the iPhone video recordings with others.
Several hours later, Rivera-Otero and Lobos-Ruiz exchanged text messages, in which they told each other to delete the evidence of their harassment and paintball gun assault of A.N.L., in order to conceal their involvement. Following this message exchange, Lobos-Ruiz deleted the videos on his iPhone of himself yelling at A.N.L. and of Laboy-Garcia firing paintballs at A.N.L.
As part of the plea agreement, Laboy-Garcia pleaded guilty to conspiring to commit a hate crime and admitted that he shot paintballs at A.N.L. because she was, and was perceived to be, transgender. Rivera-Otero pleaded guilty to obstruction of justice and admitted to directing his co-defendant to delete video recordings of the biased motivated assault and harassment of A.N.L.
Lobos-Ruiz previously pleaded guilty to committing a hate crime, admitting that he participated in assaulting A.N.L. because she was, and was perceived to be, transgender and was sentenced to 33 months in prison.
The FBI San Juan Field Office investigated the case.
Assistant U.S. Attorney Jose A. Contreras for the District of Puerto Rico and Trial Attorney Laura Gilson of the Civil Rights Division’s Criminal Section prosecuted the case.
Seattle - A felon from Georgia, with a domestic violence conviction and no contact order in Washington State, was arrested yesterday charged with arson and weapons crimes for his conduct during civil unrest on May 30, 2020, announced U.S. Attorney Brian T. Moran. TYRE WAYNE MEANS JR will make his initial appearance in federal court at 2:00 today on a criminal complaint charging him with four federal felonies: arson, possession of a stolen firearm, and two counts of unlawful possession of a firearm.
“This is just the latest in a series of cases where our office has brought federal criminal charges related to civil disorder, and should be a wake-up call for those who think they can commit crimes hidden by a crowd,” said U.S. Attorney Moran. “Federal law enforcement and local police are piecing together publicly available video and photographic evidence to identify and ultimately prosecute those who thought they could escape accountability for their actions. In this case it means a felon, who is legally barred from possessing firearms, now faces tough federal sanctions.”
According to the criminal complaint, just after 4:00 p.m. on May 30, 2020, MEANS JR was captured on video lighting a paper towel and placing it in the back of a Seattle Police patrol car parked outside of Nordstrom on 6th Avenue in downtown. Other persons in the crowd fed the fire with lighter fluid and other accelerants and the vehicle was destroyed by fire. After he lit one patrol car on fire, MEANS JR is observed on video reaching through the destroyed rear window of a different patrol car and removing a rifle bag. MEANS JR opens the bag, and looks inside. MEANS JR is seen fighting with an unidentified man who tries to retrieve the rifle bag before MEANS JR runs from the scene. A subsequent surveillance video on Pine Street, around the corner from where the rifle was stolen, shows MEANS JR in a fight with another man. While MEANS JR and the man are throwing punches, an unidentified man picks up the rifle bag and ultimately walks away. Later that day the rifle was anonymously returned to the Seattle Police West Precinct.
MEANS JR was identified as the suspect in the video by his distinctive clothing, jewelry, tattoos, and association with a female who also had distinctive tattoos and a significant social media presence. MEANS JR was arrested in Bremerton, Washington, where he was meeting with his Washington State Department of Corrections probation officer.
MEANS JR is prohibited from possessing firearms due to two felony convictions in the state of Georgia: serious injury by vehicle and obstructing law enforcement by use of threats or violence. In Washington, MEANS JR has a felony conviction for domestic violence that includes a no-contact order–that order also prohibits him from possessing firearms.
Arson is punishable by a mandatory minimum 5 years in prison and up to 20 years in prison. All three firearms charges are punishable by up to 10 years in prison.
The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the FBI and the Seattle Police Department.
The case is being prosecuted by Assistant United States Attorney Todd Greenberg.
Seattle – The U.S. Department of Justice today resolved double billing allegations against Evergreen Treatment Services, announced U.S. Attorney Tessa M. Gorman. The settlement is on behalf of the U.S. Department of Health and Human Services (HHS) which runs the Medicare program and other government health plans. Evergreen Treatment Services will pay the government $1,453,982 to resolve the matter.
“I want to commend the data analysis work done by our Affirmative Civil Enforcement unit and HHS-OIG to identify the double billing,” said U.S. Attorney Gorman. “We want to be sure taxpayer dollars are safeguarded so they can legitimately go to critical services such as drug treatment.”
“Providers that participate in Medicare are obligated to bill for services honestly and lawfully. Submitting false claims diverts funding from essential health services, including critical drug treatment, which puts both patient well-being and federal health care programs at risk,” said Special Agent in Charge Steven J. Ryan of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “This settlement shows that HHS-OIG will continue to work with our law enforcement partners to detect and deter actions that threaten the Medicare program and its enrollees.”
According to the settlement agreement, in January 2020, Medicare began paying for drug treatment services including medically assisted treatment. Evergreen, a non-profit based in Seattle, submitted claims in 2020 for the period January 1, 2020, to July 2020 and those claims were paid. The claims are paid weekly, and services are bundled: medications, counseling, therapy, toxicology testing, intake activities and periodic assessments are billed under one billing code.
Evergreen then knowingly resubmitted bills that had already been paid. This conduct continued from January 8, 2021, to February 26, 2021. Evergreen was improperly reimbursed for these services. These double billings totaled $726,991.
Of the $1,453,982 settlement, $726,991 is restitution and the rest is a penalty under the False Claims Act.
This matter was handled by Assistant United States Attorney Matt Waldrop and Ryan Hardy, investigative analyst with the U.S. Attorney’s Office. HHS-OIG and the DEA Diversion Control Division provided significant investigative assistance.
A long-time professional fishing guide who attempted to conceal the fact that he had killed two protected wild salmon was fined $7,500 today in U.S. District Court in Tacoma for violating the Endangered Species Act, announced U.S. Attorney Annette L. Hayes. BILLY SWANN, 52, owner and operator of Swanny’s Guided Fishing service which operates on the Lower Columbia and Cowlitz rivers, pleaded guilty to the misdemeanor charge last year. At the sentencing hearing Magistrate Judge Karen Strombom described his conduct as “shocking” and told him, “You had a responsibility and you failed miserably at it.”
“With so many putting so much into bringing back our cherished wild salmon runs in the Pacific Northwest, this conduct is particularly offensive,” said U. S. Attorney Annette L. Hayes. “A salmon fishing guide who makes his living off our natural resources should have respected the rules that are meant to ensure those resources will always be there for all of us. The fact that he was willing to ignore those rules knowing others were watching makes his conduct all the more troubling.”
According to records filed in the case, on October 1, 2014 SWANN led a promotional fishing trip on the Cowlitz River with the top salespeople from a national fishing bait company. The trip was being broadcast over the internet. SWANN encouraged two men on the trip to catch two native Coho salmon. Native Coho on the Cowlitz are protected by the Endangered Species Act and Washington law, and may not be removed from the water. After the clients landed the fish, SWANN clubbed both of them and then cut off the adipose fins on each fish to make it appear they were hatchery fish and therefore legal to catch and keep. However, the catching and clubbing of the wild and protected fish was caught on the web broadcast, and the illegal conduct was reported to the Washington State Department of Fish and Wildlife. When contacted by authorities, SWANN first lied about the conduct saying the photos of the fish with the adipose fin still intact could have been ‘photo-shopped’.
“NOAA Fisheries has worked hard to rebuild the salmon population in the Pacific Northwest,” said Samuel D. Rauch III, acting assistant administrator for NOAA Fisheries. “This kind of illegal action by a guide, who should be setting an example, undermines the progress we’ve made in restoring salmon and squanders an invaluable resource that belongs to all of us.”
The case was investigated by the NOAA Fisheries Office of Law Enforcement with assistance from the Washington State Department of Fish and Wildlife - Police.
The case was prosecuted by Assistant United States Attorney Seth Wilkinson.
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that on January 8, 2025, the U.S. District Judge Sarah S. Vance sentenced GERNELL HANKTON (“HANKTON”), age 34, a resident of New Orleans, to 135-months imprisonment. As to Counts 1 and 2 of the indictment against him, charging him with being a felon in possession of a firearm, in violation of 18 U.S.C. §§ 922(g)(1) and 924(a)(2), HANKTON was sentenced to 120 months imprisonment per count, to run concurrently. As to Count 3, charging him with making a false statement during the purchase of a firearm, in violation of 18 U.S.C. §§ 922(a)(6) and 924(a)(2), The Court sentenced HANKTON to a term of imprisonment of 15 months imprisonment which runs consecutive to the 120 months imposed in Counts 1 and 2.Following imprisonment, HANKTON will also be supervised by the U.S. Probation Office for 3 years. HANKTON was also ordered to pay a mandatory special assessment fee of $300.According to court records, on July 20, 2019, HANKTON was involved in a hit and run vehicular accident when he struck an occupied vehicle in the drive-thru of the McDonald’s restaurant located at 2856 Claiborne Avenue in New Orleans. When the victim exited his vehicle, HANKTON and the victim argued. HANKTON then drove away and ran over the victim’s girlfriend’s foot with his truck. HANKTON also struck a security guard who was standing in parking lot.The victim pursued HANKTON’s truck and called 911. Upon reaching a nearby intersection, HANKTON exited his truck, brandished and fired a .40 caliber firearm approximately seven (7) times at the vehicle occupied by the victim. The victim, however, was not injured.On August 7, 2019, members of the New Orleans Police Department (NOPD) located HANKTON’s truck in the 1800 block of Laurel Street. A black firearm was positioned on the floorboard of the truck. HANKTON was observed exiting a nearby residence and was arrested. NOPD obtained a search warrant for HANKTON’s truck, and seized the Glock Model 23, .40 caliber pistol. Ballistic analysis of the firearm and the seven (7) casings recovered from the scene of the shooting confirmed it was the same firearm discharged by HANKTON.On August 8, 2019, the Bureau of Alcohol, Tobacco, Firearms, and Explosives was notified of an attempted straw purchase of a firearm from the Gurvich Detective Agency, a federal firearms licensee. Gurvich records revealed that HANKTON’s then-girlfriend, purchased a Century Arms, Model C39V2 classic pistol and unsuccessfully attempted to pick up the firearm from Gurvich. Later, HANKTON arrived at Gurvich asking for the pistol on behalf of his girlfriend. HANKTON was instructed to have the original purchaser complete the ATF 4473 form.Days later, HANKTON returned to Gurvich with an ATF 4473 form that he claimed had been completed by his girlfriend as purchaser of the weapon. HANKTON was informed a second time that only A.S. could receive the firearm because she was the listed purchaser on the ATF 4473 form. Days later, a Gurvich employee contacted HANKTON’s girlfriend. When contacted by a Gurvich employee, HANKTON’s girlfriend admitted that she was not the purchaser of the firearm. Thereafter, HANKTON admitted he was the real purchaser and had made a false statement on the ATF 4473 form to get the pistol. However, HANKTON was not allowed to legally possess, or purchase this weapon since he was a convicted felonThis 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.The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the New Orleans Police Department. It is being prosecuted by Assistant United States Attorney Brittany Reed of the Public Integrity Unit.
Seattle – Two men – both involved with firearms and fentanyl -- pleaded guilty this week in U.S. District Court in Seattle to federal charges that carry a mandatory minimum of five years in prison, announced Acting U.S. Attorney Tessa M. Gorman. Jade Alexander Beavin, 33, of Everett will be sentenced by U.S. District Judge Richard A. Jones on October 20,2023. Lavonta Austin, 30, of Seattle will be sentenced by U.S. District Judge James L. Robart on October 17, 2023.
“Our office and our investigative partners work every day to stop the flow of fentanyl into our community,” said Acting U.S. Attorney Gorman. “We pursue large cartel-connected drug rings that import hundreds of thousands of pills, as well as individual dealers whose criminal conduct with guns and drugs undermines the safety of our community. These two defendants who pleaded guilty this week, were caught repeatedly with drugs and guns, conduct that ultimately landed them in federal court.”
Jade Beavin was arrested by Everett Police on July 27, 2021, with three kilos of fentanyl powder in the trunk of his car. In the interior of the car was a loaded 9mm handgun. A court authorized search of the car also resulted in the seizure of a scale, ammunition, and drug ledger. Beavin was also arrested with narcotics and a revolver in January 2020 and was arrested with a third firearm in February 2022. When he is sentenced, prosecutors will recommend no more than ten years in prison and the defense has agreed to recommend no less than eight years in prison.
Lavonta Austin was first contacted by Seattle Police at 3rd Avenue and Pike Street in downtown Seattle on August 4, 2022. After selling fentanyl pills to an undercover officer, Austin attempted to run from police when they took him into custody. Austin had methamphetamine, fentanyl, more than $2,000 in cash and a loaded 45 caliber handgun. A few months later, on October 9, 2022, Austin was arrested at a Seattle motel with fentanyl, methamphetamine, $1,770 in cash and a loaded 9mm handgun. Both the prosecutors and defense will recommend a 5-year sentence.
In both cases the judge is not bound by the recommendation and can impose any sentence allowed by law.
Both men pleaded guilty to possession of controlled substance with intent to distribute, and possession of a firearm in furtherance of a drug trafficking crime. The drug possession charge is punishable by up to 20 years in prison. The gun crime is punishable by a mandatory minimum five years in prison that runs consecutive to the sentence imposed on the drug possession charge.
U.S. v. Beavin was investigated by the Everett Police Department and the FBI. U.S. v. Austin was investigated by the Seattle Police Department and the Drug Enforcement Administration (DEA). Both cases are being prosecuted by Assistant United States Attorney Cecelia Gregson.
Seattle – A Washington man was sentenced today in federal court for committing a hate crime in connection with an arson at a nightclub and event space in Seattle, Washington.
Kalvinn Garcia, 26, of Sedro Woolley, Washington, was sentenced to 48 months in prison followed by three years of supervised release for his bias-motivated arson at Queer/Bar, a nightclub and event space in Seattle.
According to facts admitted in his guilty plea, on Feb. 24, 2020, Garcia set fire to the contents of a dumpster in the alley directly behind Queer/Bar. Garcia was arrested only minutes after setting the fire. Garcia admitted to law enforcement that he set the fire and that he targeted Queer/Bar because it angered him to see a sign that said “queer.” Garcia also told officers, “I think it’s wrong that we have a bunch of queers in our society.” A few weeks after the incident, Garcia told a stranger that his intent in setting the fire was to trap and hurt the people inside. Garcia admitted that, through the use of fire, he willfully attempted to cause bodily injury to the occupants of Queer/Bar because of their actual or perceived sexual orientation or gender identity.
“The defendant committed an act of violence targeting innocent victims inside Queer/Bar, a known safe space for the LGBTQI+ community,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Bias-motivated violence runs contrary to our values and violates our federal civil rights laws. This sentence should send the message that every person in our nation deserves equal protection under the law regardless of who they love or how they identify and that those carrying out similar acts of violence against the LGBTQI+ community will be brought to justice.”
At the sentencing hearing, U.S. District Judge John C. Coughenour said, “The potential for panic and trampling and death is incredible… Hate is hate, whether it is impacted by mental health or not.”
“Mr. Garcia endangered the lives of more than 100 people because of his hatred for members of our LGBTQI+ community,” said Acting U.S. Attorney Tessa M. Gorman for the Western District of Washington. “We work diligently with our federal, state and local partners to investigate and prosecute acts of hatred against people because of their sexuality or gender identity. This work is a priority because the effect of these hate crimes can linger in communities and traumatize the members of the targeted community for weeks, months or years after.”
“Mr. Garcia admitted to setting the fire in an effort to hurt people based on his own bias,” said Special Agent in Charge Richard A. Collodi of the FBI Seattle Field Office. “No person in the United States should fear for their safety based on their sexual orientation or gender identity. I am proud of the continued work of the FBI and our partners in protecting the civil rights of all people.”
The FBI Seattle Field Office and the Seattle Police Department investigated the case.
Assistant U.S. Attorney Will Dreher for the Western District of Washington and Trial Attorney Matthew Tannenbaum of the Civil Rights Division’s Criminal Section prosecuted the case.
For more information and resources about the department’s work to combat hate crimes, visit www.justice.gov/hatecrimes.
Seattle – A 33-year-old Auburn, Washington, man was arrested last night on a federal criminal complaint charging firearms and drug distribution crimes, announced U.S. Attorney Tessa M. Gorman. Andy Peter Vongdala was charged by criminal complaint after he was caught with large quantities of controlled substances and multiple firearms on April 26, 2024. At the time of his arrest, Vongdala was booked on outstanding warrants and subsequently posted bail. Vongdala will be detained on the federal charges pending additional hearings.
According to the criminal complaint, Vongdala was a suspect in a series of commercial burglaries in Renton, Washington. Renton Police worked with King County prosecutors and obtained a search warrant for Vongdala’s residence to search for distinctive clothing from the burglary investigation.
When police served the search warrant, they encountered Vongdala leaving his two-bedroom apartment. In a backpack he carried, police found a stolen Glock firearm and more than two kilograms of MDMA. Some of the drugs were in smaller bags inside a larger zip lock bag labeled “sample.”
A search of Vongdala’s residence revealed an additional firearm and firearm parts along with ammunition and body armor. In his bedroom, police recovered 61 kilograms of MDMA, more than 2300 fentanyl pills, nearly a kilogram of methamphetamine, and smaller amounts of suspected heroin, cocaine, and alprazolam.
Law enforcement seized a rifle with a casing catcher – a device that keeps shell casings from being left on the ground after the gun is fired. There were also numerous firearm magazines including extended magazines and a drum magazine. Suspected armor piercing bullets were seized as well.
Vongdala is charged with two counts of possession of controlled substances with intent to distribute, and one count of possession of a firearm in furtherance of a drug trafficking crime.
Due to the quantity of drugs seized in this case, the penalties include a mandatory minimum ten years in prison. Possession of a firearm in furtherance of a drug trafficking crime is punishable by an additional five years in prison which runs consecutive to any other sentence imposed in the case.
The charges contained in the criminal complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the Renton Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF).
The case is being prosecuted by Assistant United States Attorney Celia Lee.
A Seattle man sentenced for mail fraud and wire fraud in 2009, changed his name and committed a new round of frauds resulting today in a 61 month federal prison sentence, three years of supervised release and restitution in the amount of $349,164, announced U.S. Attorney Annette L. Hayes. EDWARD BUI, 48, aka Micah Buitron pleaded guilty in August 2017 to mail fraud, wire fraud, and aggravated identity theft. BUI defrauded shipping and internet payment companies of $349,164. U.S. District Judge Richard A. Jones noted at the sentencing hearing that he had previously sentenced BUI to two years in prison for his 2009 conviction. At today’s hearing Judge Jones said that Bui “shows complete disregard of the Court, the law and the criminal justice system . . . and callous disregard of damage to businesses and individuals. (He) essentially had the mantra ‘catch me if you can.’”
According to records filed in the case, less than a year after his release from federal custody, BUI began putting pieces of his most recent fraud together. He created a company, Operture, Inc., that was at the center of his mail and wire fraud schemes. BUI created multiple accounts with UPS and online payment processing companies using false names, email addresses, physical addresses and bank accounts. He mailed multiple packages using his UPS accounts to addresses in Nevada and then filed more than 260 claims alleging damage to the packages. He was able to defraud UPS of $31,200.
BUI defrauded online payment processing companies by posing as both the buyer and seller of goods and then claiming refunds. When the payment processor tried to get the ‘refunded’ money back from the supposed seller, the account had been drained leaving the payment processor with a loss. BUI engaged in what is essentially a check kiting scheme using online payment processers. With this scheme he defrauded Google Wallet, Stripe and buy.com of nearly $318,000.
BUI used the identity of a person he knew to conduct some of the fraud. For that conduct, he pled guilty to aggravated identity theft which carries a two year sentence that runs consecutive to any other sentence imposed for the other charges.
BUI used the proceeds of his scheme to invest in real estate in Las Vegas. Some of his investments took advantage of a loophole in Nevada law which allowed him to purchase properties for the outstanding homeowners association payments. In this way BUI was able to buy and flip properties as the real estate market recovered, and ultimately purchased a property worth more than $1 million. The property will be forfeited to the government and its sale will be used to pay off BUI’s victims from this fraud case as well as the fraud case from 2009.
In the 2009 case, BUI fraudulently used the credit card and personal information of more than 60 people and defrauded some 68 businesses. BUI used some 20 aliases to purchase everything from remodeling supplies to expensive home furnishings. BUI used some of the materials to remodel the four properties he owned. Some of the items he resold through his businesses or on other web sites. In all, the fraud or attempted fraud totaled $350,000. BUI also double and triple billed some of his customers for items they purchased from his web site, filed false damage claims with shippers and false claims with his own credit card company.
The case was investigated by the U.S. Secret Service and the Seattle Police Department.
The case was prosecuted by Assistant United States Attorney Matthew Diggs.
RIVERSIDE, California – Four Inland Empire residents have been arrested on a federal criminal complaint alleging they organized and ran cockfighting events in San Bernardino County.
The following defendants, who were arrested Sunday at a cockfighting event, are charged with aiding, abetting, inducing, and willfully causing another person to sponsor and exhibit an animal in an animal fighting venture and are expected to make their initial appearances this afternoon in United States District Court in Riverside:
Isidro Chaparro Sanchez, 59, of Corona;
Luis Octavio Angulo, 61, of Rialto;
Sergio Jimenez Maldonado, 51, of San Bernardino; and
Eva Anilu Pastor Uriostegui, 53, of Moreno Valley.
Law enforcement is looking for Cirilo Esquivel Alcantar, 56, of San Bernardino, who also is charged in this case.
According to an affidavit filed with the complaint, the defendants organized and facilitated cockfighting events in Muscoy. The defendants held events on Sundays during the cockfighting “season,” which generally runs from January to August. Individuals brought roosters to fight (i.e., cockfighters) and spectators attended the events, which at times drew more than 100 attendees.
Attendees parked – at the cost of $20 – at a different location nearly one mile away from the event location. Attendees were then shuttled to the cockfighting location, where they paid another fee – usually $40 – to enter the arena where the cockfights took place. Attendees could also place bets on the cockfights and participate in a raffle.
Cockfighters paid a fee to enter their roosters into fights – $1,000 for four roosters – and then entered the fighting arena with their roosters when it is their turn to fight. Several cockfights took place on a given day. Before the fights, a sharp blade, known as a “gaff” and usually curved and approximately 1.5 inches in length, was often attached to each rooster’s leg. At times, the fights ended in the death of one or both roosters.
A criminal complaint is merely an allegation, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
If convicted, the defendants would each face a statutory maximum sentence of five years’ imprisonment.
The FBI is investigating this matter.
Assistant United States Attorneys Cory L. Burleson of the Riverside Branch Office and Dennis Mitchell of the Environmental Crimes and Consumer Protection Section are prosecuting this case.
