PHOENIX – Yesterday, Dillon Colton Wilson, 26, of Glendale, Ariz., was sentenced by U.S. District Judge Steven P. Logan to 21 months in prison followed by 3 years of supervised release.  Wilson had previously pleaded guilty to assault resulting in serious bodily injury. 

     Wilson admitted that while caring for the five-month-old infant victim in the Ak-Chin Indian Community, he forcefully jerked the victim by the left arm, resulting in a complete, mid-shaft break of the upper arm. Wilson is an enrolled member of the Tohono O’Odham Nation. 

     The investigation in this case was conducted by the Ak-Chin Police Department.  The prosecution was handled by Christine Ducat Keller, Assistant U.S. Attorney, District of Arizona, Phoenix.

CASE NUMBER:          CR-18-606-PHX-SPL

RELEASE NUMBER:    2019-011_Wilson

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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/

Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.

SAVANNAH, Ga: Three people, including two medical professionals, are among defendants recently prosecuted in federal court as part of continued efforts to crack down on opioid abuse.

Lisa Marie Douthit, 42, a pharmacy technician at a Walgreen’s in Bryan County, was sentenced to three months in prison by U.S. District Court Judge William T. Moore Jr. for stealing opioid pills Oxycodone and Hydrocodone from her employer, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia.

In addition, Jamie Mays, 19, of Hinesville, Georgia, a former medical assistant at a Bryan County pain clinic, awaits sentencing after pleading guilty to stealing prescriptions for the opioids Percocet and Oxycodone, and Reginald Eric Lee, 24, of Hinesville, Georgia, awaits sentencing after pleading guilty to stealing prescriptions for the opioids Percocet and Oxycodone and to conspiracy to possess with intent to distribute Percocet and Oxycodone.

“Opioid abuse is a crisis in our country and our community, and we are committed to targeting those individuals who divert those highly addictive drugs from their proper use,” said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. “It is especially troubling when these illegal activities are facilitated by people who exploit their access to the healthcare system, and we will not tolerate it.”

These cases were investigated by the Opioid Task Force, which includes the Drug Enforcement Administration (DEA), the FBI, the department of Health and Human Services Office of Inspector General (HHS), the Chatham County Narcotics Team (CNT), and the U.S. Attorney’s Office for the Southern District of Georgia. 

“The recklessness and greed exhibited by these individuals put citizens at significant risk of addiction and death,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “We will use every tool we have to stop criminals from exploiting the vulnerable by taking advantage of their professional access to these drugs.” 

Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Division stated, “The abuse of prescription drugs continues to be a major concern in America. The abuse of a trusted medical profession will not be tolerated. As the nationwide trend toward non-medical use of prescription drugs swells, the need for an organized, immediate, and effective response increases correspondingly. This is a perfect example of the success that can be accomplished when federal, state and local resources and subsequent prosecution by the United States Attorney’s Office are combined to present a united front.”   

Said Chatham-Savannah Counter Narcotics Team Director Everett Ragan, “We rely on the healthcare system and its professionals to aid us in fighting the war on the opioid crisis. I know the majority in the profession are doing that every day; however, we stand ready to arrest those who choose to further complicate this matter.”  

If you have any information regarding health care fraud or illegal opioid diversion, please contact the U.S. Attorney’s Office at (912) 652-4422.

Assistant United States Attorneys J. Thomas Clarkson and Jonathan Porter prosecuted the cases for the United. States.

HOUSTON – The last defendant charged in relation to a more than $40 million securities fraud “pump and dump” conspiracy has now been convicted, announced U.S. Attorney Ryan K. Patrick. With the guilty plea of John David Brotherton, 59, of League City, today, all seven defendants charged in the case now stand convicted.

Andrew Ian Farmer, 40, Thomas Galen Massey, 48, Eddie Douglas Austin Jr., 68, Carolyn Price Austin 64, and Charles Earl Grob, 38, all of Houston, and Scott Russell Sieck, 60, of Winter Park, Florida, all had previously entered pleas of guilty for their respective roles in the case.

Farmer, Massey, Eddie Austin, Brotherton, Sieck and Grob admitted they participated in a conspiracy to commit fraud in microcap securities. During the course of the conspiracy, these six defendants obtained control of the stock of numerous companies, then “pumped up” the price of the stock through false and misleading press releases and fraudulent trading techniques. They then “dumped” their shares of stock onto the market for a significant profit.

As part of her plea agreement, Carolyn Austin admitted she knew of the intended manipulation of the stock prices and acted to conceal this fact from law enforcement.

U.S. District Judge Vanessa D. Gilmore has set Brotherton’s sentencing for June 3, 2019, along with Sieck, Grob and Massey. Eddie and Carolyn Austin are set for June 17, while Farmer will be sentenced June 24. Farmer faces up 10 years in prison, while Carolyn Austin’s conviction carries a possible three-year-term of imprisonment. The remaining defendants face a maximum of five years.

All seven defendants could also be ordered to pay up to a $250,000 fine.

With the exception of Brotherton, who is in now in custody following violations of his conditions of release, the remaining defendants were permitted to remain on bond pending their respective sentencing hearings.

The FBI conducted the investigation with the assistance of the Securities and Exchange Commission and Financial Industry Regulatory Authority. Assistant U.S. Attorneys Justin R. Martin and Michael Chu are prosecuting the case.

          LOS ANGELES– A precious metals trader based in the Los Angeles Jewelry District pleaded guilty today to a money laundering charge after being caught in an undercover operation where he agreed to conceal what was described to him as more than $200,000 in drug trafficking proceeds.

          Saeed Elyahouzadeh, 53, of Westwood, who owns and operates R.S.D. Trading Co., entered his guilty plea to one felony money laundering charge before United States District Judge Dale S. Fischer.

          According to a plea agreement filed in this case, between April 2015 and December 2017 Elyahouzadeh took part in four financial transactions with the intent to launder illicit drug proceeds through the use of his jewelry business. An undercover federal agent told Elyahouzadeh that the proceeds being laundered were the result of drug trafficking, according to court documents.

          For example, on April 22, 2015, Elyahouzadeh met with an undercover law enforcement agent who asked him to “clean” $18,000 that was generated through cocaine sales, the plea agreement states. Elyahouzadeh agreed to launder the $18,000 in exchange for a $1,000 fee. In the weeks that followed that meeting, Elyahouzadeh arranged for multiple checks to be deposited into a bank account provided by the undercover agent, according to court documents. On three subsequent occasions – in June 2015, November 2017 and December 2017 – Elyahouzadeh agreed to launder a total of $200,000 from the undercover agent in exchange for a total of $11,000, court papers state. Typically, Elyahouzadeh would agree to launder the money in exchange for between 5 percent and 6 percent of the given amount. In the weeks following each of those meetings with the undercover agent, Elyahouzadeh arranged for multiple checks to be deposited into the bank account that the undercover agent provided, according to his plea agreement.

          Judge Fischer is scheduled to sentence Elyahouzadeh on July 15 at which time he will face a statutory maximum sentence of 20 years in federal prison.

          This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, IRS Criminal Investigation, and the Drug Enforcement Administration

          This matter is being prosecuted by Assistant United States Attorney Aron Ketchel of the Public Corruption and Civil Rights Section.

JOHNSTOWN, Pa. - A resident of Johnstown, Pa., has been sentenced in federal court to two years in prison and six years’ supervised release on his conviction of violating federal narcotics laws, United States Attorney Scott W. Brady announced today.

United States District Judge Kim R. Gibson imposed the sentence on Tony Charles Eppolito, 32.

According to information presented to the court, on Dec. 6, 2017, Eppolito distributed a quantity of heroin.

Assistant United States Attorney Stephanie L. Haines prosecuted this case on behalf of the government.

Mr. Brady commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force for the investigation that led to the successful prosecution of Eppolito.

ATLANTA, Ga. – Mewael Berhane, who communicated on the Internet to arrange to meet a minor girl for sex, has been sentenced to federal prison for enticing a minor to engage in illegal sexual activity.

“This case shines a light on some of the darkest corners of the Internet, where predators seek out minors to victimize,” said U.S. Attorney Byung J. “BJay” Pak.  “Through the vigilance of our law enforcement partners, Berhane is being held accountable for his depraved conduct.”

“The federal investigation and subsequent prison sentence clearly reflects the threat Berhane posed to the community,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Fortunately, he connected with an undercover FBI agent and not a child. Let it be a warning to sexual predators who think the anonymity of the internet keeps them protected from detection.”

According to U.S. Attorney Pak, the charges and other information presented in court: In October 2017, Berhane posted an ad on Craigslist that was titled “Very Taboo-something different.”  In the ad, he expressed his interest in finding mothers and daughters who wanted to have sex with the same man. 

An agent with the FBI responded, posing as the “mother” of an 11-year-old girl.  The “mother” wrote that she was looking for someone to teach her 11-year-old daughter how to be with a man sexually.  Berhane told her that he would “definitely be up for that.” 

Berhane continued communicating with the girl’s “mother” on the cell phone app “Kik messenger” and graphically described the sex acts which he planned to engage in with the 11-year-old girl.  Berhane asked the mother to send him photos of her 11-year-old daughter on multiple occasions.  He even sent her a photo of himself wearing only his underwear.

On November 7, 2017, Berhane made arrangements to meet the mother and the girl for the purpose of engaging in sex with the child.  That same day, the defendant drove from his office in Decatur to Duluth, Georgia, in rush hour traffic to meet the girl.  He was arrested when he arrived at the pre-arranged location.   

Mewael Berhane, 40, of Stone Mountain, Georgia, has been sentenced to ten years in prison, to be followed by ten years of supervised release.  He will also be required to register as a sex offender when he is released from prison.  Berhane was convicted on these charges on October 22, 2018, after he pleaded guilty.

This case was investigated by the FBI.

Assistant U.S. Attorneys William G. Traynor and Leanne M. Marek prosecuted the case.

This case is being brought as part of Project Safe Childhood.  In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse.  Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children.  For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced former Baltimore Police Detective Momodu Bondeva Kenton Gondo, age 36, of Owings Mills, Maryland, today to 10 years in prison, followed by four years of supervised release, for one count of racketeering conspiracy and one count of conspiracy to distribute and possess with intent to distribute 100 grams or more of a mixture or substance containing heroin.

The sentence was announced by United States Attorney Robert K. Hur; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office; Chief Terrence B. Sheridan of the Baltimore County Police Department; and Sheriff Jeffrey R. Gahler of the Harford County Sheriff’s Office.

“This prosecution demonstrates that no one is above the law. When we have evidence of wrongdoing, we will follow that evidence and prosecute you--whether you wear a badge or not,” said Maryland U.S. Attorney Robert K. Hur.  “Momodu Gondo and the other corrupt officers in the GTTF betrayed the public’s trust and dishonored their badge. Their federal prison sentences are just punishment for their crimes”

Momodu Gondo joined the Baltimore Police Department (BPD) on November 29, 2005 and was later assigned to the Gun Trace Task Force (GTTF), a division of the Baltimore Police Department. According to his plea agreement, Gondo conspired to steal money, property, and narcotics by detaining victims, entering residences, conducting traffic stops, and swearing out false search warrant affidavits. In addition, Gondo prepared and submitted false official incident and arrest reports, reports of property seized from arrestees, and charging documents, which concealed the fact that Gondo and his co-conspirators stole money, property, and narcotics from individuals.

According to his plea agreement, Gondo admitted participating in eight robberies from March 2015 through July 2016.  Gondo robbed civilians whom he detained and in some cases arrested and stole money and drugs from them.  Gondo shared the proceeds with co-defendants and fellow BPD officers Jemell Rayam, Wayne Jenkins, Daniel Hersl, Marcus Taylor, and others, and on other occasions, he kept all of the proceeds for himself.  In each robbery, Gondo was armed with his BPD service firearm, individual victims of the robberies were physically restrained to facilitate the commission of the offense, and he authored false incident reports and other official documents, in some cases in order to conceal his criminal conduct and otherwise obstruct justice.

On October 5, 2015, Gondo and his co-conspirators robbed a drug dealer after Gondo and Rayam placed a tracking device on the victim’s car without court authorization so that they could rob his apartment when he was not home.  Gondo acted as a lookout while Rayam and Glen Kyle Wells entered the victim’s apartment.  Rayam and Wells stole a Rolex watch, a firearm, $12,000 to $14,000 in cash, and at least 800 grams of heroin.  After the robbery, Gondo and his co-conspirators split the money they had stolen.  Wells took the Rolex, the gun, and the drugs and sold some of the drugs.  Rayam also sold some of the drugs and shared proceeds with Gondo.

Gondo admitted to committing multiple robberies with Sergeant Thomas Allers.  For example, on March 11, 2015, Gondo, Rayam, and Allers searched a residence and discovered a large quantity of cash.  Gondo, Rayam, and Allers each took some of the cash.  Gondo took between $8,000 and $10,000. 

Gondo further admitted that he sold a seized gun and marijuana to a drug dealer.  In June 2016, Gondo, Rayam, and Jenkins conducted a car stop and then went to the driver’s residence, without a warrant, and seized a 9mm handgun and a pound of marijuana.  After Jenkins directed the sale of the gun and marijuana in order to repay a debt Rayam owed Jenkins for drugs, Gondo arranged for an associate of his, a drug dealer, to buy the marijuana and handgun. 

On July 8, 2016, Gondo and his co-defendants Hersl and Rayam detained two victims after a car stop.  Gondo stole money from one of the victims. At Jenkins’s direction, Hersl, Rayam, and Gondo transported the two victims to a BPD office to interrogate them.  Jenkins told his co-conspirators to treat him like he was the U.S. Attorney.  After speaking with one of the individuals, Jenkins, Hersl, Gondo, and Rayam then transported both of the victims to their home and robbed them of $20,000.  Jenkins, Hersl, Rayam, and Gondo divided the $20,000. 

In a separate seven-count indictment, Gondo and five co-defendants were charged with conspiracy to distribute and possess with intent to distribute heroin as part of the Shropshire drug trafficking organization (“DTO”).  Gondo admitted that he provided sensitive law enforcement information to other conspirators in order to help the DTO and protect his co-conspirators. According to his plea agreement, Gondo admitted to providing protection, information and tips to his co-conspirator and co-defendant Antonio Shropshire about how to avoid being arrested.  For example, on March 31, 2016, Gondo alerted Shropshire, who along with his co-conspirators, primarily distributed heroin near the Alameda Shopping Center in Baltimore, that the Drug Enforcement Administration had installed a GPS tracking device on his vehicle.  Shropshire, under Gondo’s instruction, then removed the GPS device and placed it on another vehicle.

According to his plea agreement, Gondo also admitted that he routinely submitted fraudulent individual overtime reports defrauding the Baltimore Police Department and the citizens of Maryland.  On these reports, Gondo falsely certified that he worked his entire regularly assigned shifts, when he did not, and that he worked additional hours for which he received overtime pay, when he had not worked all and in some cases any of those overtime hours.  Gondo also admitted that he submitted false and fraudulent overtime reports on behalf of his co-defendants.

Lastly, Gondo admitted to obstructing law enforcement by alerting his co-defendants about potential investigations of their criminal conduct, coaching them to give false testimony to investigators from the Internal Investigations Division of the BPD, and turning off his body cameras to avoid recording encounters with civilians. 

Former Baltimore Police Sergeant Wayne Earl Jenkins, age 38, of Middle River, Maryland was sentenced to 25 years in federal prison for a racketeering conspiracy, racketeering, two counts of robbery, destruction, alteration, or falsification of records in a federal investigation, and four counts of deprivation of rights under color of law.  Former Detectives Daniel Thomas Hersl, age 49, of Joppa, Maryland and Marcus Roosevelt Taylor, age 32, of Glen Burnie, Maryland, were convicted after a three-week trial and were each sentenced to 18 years in federal prison, for racketeering conspiracy and racketeering offenses, including overtime fraud, and robbery. Former Sergeant Thomas Allers, age 49, of Linthicum Heights, Maryland was sentenced to fifteen years in prison, for racketeering conspiracy and racketeering offenses, including nine robberies.  Former Detective Jemell Lamar Rayam, age 38, of Owings Mills, Maryland, previously pleaded guilty to racketeering conspiracy, including multiple robberies, and overtime fraud, and is scheduled for sentencing on March 8, 2019 at 10:00 a.m.

Antonio Shropshire, a/k/a Brill, B, and Tony, age 33, to 25 years in prison for conspiracy to distribute and possession with intent to distribute heroin and cocaine relating to the drug trafficking organization in North Baltimore. Co-defendants Alexander Campbell, a/k/a Munch, age 30, and Glen Kyle Wells, a/k/a Lou, and Kyle, age 31, both of Baltimore were sentenced to 196 months and 188 months in prison, respectively, for their participation in the drug trafficking organization. 

United States Attorney Robert K. Hur commended the FBI, the DEA, the Baltimore County Police Department, and the Harford County Sheriff’s Office for their work in the investigation.  U.S. Attorney Hur also thanked Assistant U.S. Attorneys Leo J. Wise and Derek E. Hines, who prosecuted this Organized Crime Drug Enforcement Task Force case.

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Jackson, Miss. - Jefferson Medical Associates, a now dissolved, multi-specialty medical practice group in Laurel, and Dr. Aremmia Tanious, have agreed to pay the United States $817,635.06 to resolve claims under the False Claims Act arising from Medicare overpayments to Jefferson Medical Associates and Dr. Tanious, announced U.S. Attorney Mike Hurst.

This settlement resolves allegations that from January 1, 2012, through December 31, 2014, Jefferson Medical Associates and Dr. Tanious violated the False Claims Act by failing to return overpayments they received from Medicare on claims. In addition, from February 1, 2013, through June 30, 2017, it was alleged that Jefferson Medical Associates and Dr. Tanious billed Medicare using multiple medical codes when the medical documentation did not support the use of such billing practices.

During the course of the government’s investigation, Jefferson Medical Associates and Dr. Tanious provided assistance through voluntary disclosures to the U.S. Attorney’s Office after they discovered through audits of patient files and claims data that Medicare had been overbilled for certain services.

"This settlement should serve as a reminder to medical providers receiving Medicare funds that they must timely report and return any overpayments owed to Medicare or be subject to liability under the False Claims Act. I applaud our healthcare fraud investigators and prosecutors, as well as agents with the Office of Inspector General for Health and Human Services, for their diligent work in recovering the public’s money," said U.S. Attorney Hurst.

This matter was investigated by the U.S. Attorney’s Office Healthcare Fraud Investigator Ron Jefferson and U.S. Department of Health and Human Services Office of Inspector General. Assistant U.S. Attorney Kristi H. Johnson handled the matter for the United States.

The claims resolved by this settlement are allegations only, and there has been no determination of civil liability.

WICHITA, KAN. – A Cherokee County man pleaded guilty Tuesday to unlawful possession of a rifle stolen during a burglary at a gunsmith’s residence, U.S. Attorney Stephen McAllister said.

Nathan J. Moss, 32, Columbus, Kan., pleaded guilty to one count of unlawful possession of a firearm by a convicted felon. In his plea, Moss admitted he was arrested Aug. 18 after police chased the vehicle he was driving from Crawford to Cherokee County. In the vehicle, police officers found an Anderson Model AM-15 5.56-caliber rifle. The rifle was stolen four days earlier from M and M Tactical Gunsmithing in Arma, Kan.

Moss, who had a prior felony conviction, was prohibited by federal law from possessing a firearm.

Sentencing is set for April 29. Both parties have agreed to recommend a sentence of five years in federal prison. McAllister commended the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Pittsburg Police Department, the Cherokee County Sheriff’s Department, the Arma Police Department and Assistant U.S. Attorney Lanny Welch for their work on the case.

INDIANAPOLIS - United States Attorney Josh J. Minkler announced today that a federal grand jury has indicted Kevin Kuhnash, 57, and Jason Jimerson, 44, formerly the Chief Executive Officer and Chief Operating Officer of Lucent Polymers, Inc., an Evansville-based plastics manufacturer. The two men were arrested today by the FBI. The indictment alleges that they committed fraud when they orchestrated the sale of Lucent to another company but concealed critical defects in Lucent’s business, including fraud that Lucent was committing on its customers.  Also today, the U.S. Securities and Exchange Commission announced that it also charged Kuhnash and Jimerson with fraud.

“Corporate officials who put deviousness over good faith degrade the integrity of our markets and impugn the reputation of American industry,” said Minkler. “This office will continue to prioritize the investigation and prosecution of corrupt corporate executives who enrich themselves through fraud and deception.”

The indictment alleged that a key aspect of Lucent’s business was its purported ability to design and manufacture custom plastics products that met customers’ exact specifications at very low prices. Lucent’s customers included manufacturers and suppliers of automobiles, automobile air bags, electrical boxes, ceiling fans, kitchen appliances, and heating and air conditioning units.  Their specifications often included the plastic’s flame resistance, color, strength and durability, and certification by Underwriter’s Laboratories (“UL”).

According to the indictment, Lucent’s internal testing allegedly showed that its low-cost products often did not meet its customers’ specifications or UL certification standards.  Nevertheless, Lucent employees allegedly created and submitted to customers false records stating that the internal testing confirmed that the products were within spec, when they were not. Even when customers complained, Lucent employees allegedly continued to conceal that they had altered the test results.

The indictment alleged that in 2013, Kuhnash and Jimerson, as CEO and CFO, were involved in trying to sell Lucent’s business to another company. Kuhnash and Jimerson allegedly both owned stock in Lucent and stood to, and allegedly did, receive hundreds of thousands of dollars’ worth of compensation when the sale was completed. 

According to the indictment, in September of 2013, if not before, both Kuhnash and Jimerson were allegedly made aware that Lucent was routinely deceiving its customers regarding its products. As an example, the indictment referenced an email from a Lucent employee that both Kuhnash and Jimerson received that discussed data manipulation, changing UL-certified product formulations, and customer complaints. The indictment further alleged that, in discussing the email amongst themselves, Kuhnash and Jimerson stated that they would not let anyone see or have knowledge of the employee’s email. 

The indictment alleged that neither did Kuhnash or Jimerson take any meaningful steps to stop the Lucent’s alleged fraud on its customers, nor did they disclose the existence of the fraud to the company that was acquiring Lucent’s business. Lucent was acquired shortly thereafter, and Kuhnash and Jimerson allegedly received the significant compensation for their Lucent stock.  That compensation allegedly included stock in the company that bought Lucent.

Additionally, the indictment alleged that, even after the acquisition was completed,  Kuhnash and Jimerson did not take meaningful steps to stop Lucent’s fraud on its customers and did not disclose the existence of the fraud, including to the acquiring company’s outside auditors.

According to the indictment, in 2015, the acquiring company was itself acquired by a larger, publicly traded company. Both men allegedly owned significant stock, and as a result of the second acquisition, both allegedly received hundreds of thousands of dollars. In total, the indictment alleges that Kuhnash and Jimerson personally received approximately $2 million from the two acquisitions of their stock.

The indictment further alleges that Lucent’s fraud on its customers was discovered by the publicly traded company a few months after acquiring Lucent’s business. On the day the publicly traded company disclosed the existence of Lucent’s fraud to investors, its stock dropped 25%.   

Finally, the indictment alleges that Jimerson obstructed justice and made false statements to the FBI by stating he was not aware of Lucent’s fraud on its customers and did not receive the employee email, when he allegedly did.

According to Assistant United States Attorneys Nicholas J. Linder and Steve DeBrota, who are prosecuting the case for the government, the defendants face possible sentences of up to between five and twenty years of imprisonment for each count.

This case is being jointly investigated by the Internal Revenue Service-Criminal Investigation Division and the Federal Bureau of Investigation.

 Gabriel Grchan, Special Agent in Charge of IRS Criminal Investigation said, “Business executives that cheat, lie, and steal stain the fabric of the American economy. These Lucent executives filled their pockets through fraud and numerous acts of deceit. As in this case and countless others our agents will find corruption and bring it to justice.” 

     “These individuals learned of significant fraudulent practices at the company they led and let it continue. Even during and after the sale of the company, they chose not to reveal the fraud in order to enrich themselves from the sale of their stock,” said Grant Mendenhall, Special Agent in Charge of the FBI’s Indianapolis Division. “This case is a result of the strong partnership and working relationship between the FBI, federal prosecutors, and the IRS-Criminal Investigations Division to combat a significant fraud scheme impacting private and publicly-traded companies.”

In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s firm commitment to prosecuting complex, large-scale fraud schemes, particularly those that exploit positions of trust. See United States Attorney’s Office, Southern District of Indiana Strategic Plan 5.1

Jackson, Miss. – Randy Lamar Anderson, 46, of Conehatta, Kevin Edwards, 47, of Walnut Grove, and Roderick Bell, 40, of Philadelphia, were recently indicted by a federal grand jury for theft or embezzlement and wire fraud in separate schemes to defraud the Mississippi Band of Choctaw Indians government with false claims for travel reimbursement payments, announced United States Attorney Mike Hurst and Christopher Freeze, Special Agent in Charge of the Federal Bureau of Investigation in Mississippi.

Anderson and Edwards are each separately charged with one count of theft and two counts of wire fraud. Bell is charged with one count of theft and one count of wire fraud.

According to the indictments, between March 2015 and December 2017, the three men are alleged to have forged hotel bills and receipts and submitted those documents to the Tribal government for reimbursement for official business travel.

Edwards will appear before United States Magistrate Judge Linda R. Anderson in Jackson, Mississippi, today, Tuesday, February 12, 2019, at 1:30 pm for his arraignment. Anderson and Bell will appear before Judge Anderson for their arraignment on February 13, 2019, at 1:30 pm.

Theft or embezzlement from a Tribal Organization carries a maximum sentence of imprisonment of five years. Wire fraud carries a maximum term of imprisonment of twenty years. Each charge can merit a fine of up to $250,000 and up to three years of supervised release.

U.S. Attorney Hurst commended the work of the Special Agents with the FBI’s Jackson Division who investigated the case. The Sheriff’s Offices in Leake, Neshoba and Newton Counties assisted with the arrests. The case is being prosecuted by Assistant United States Attorney Theodore Cooperstein and Special Assistant United States Attorney Kevin Payne.

The public is reminded that an indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent unless and until proven guilty in a court of law.

Geoffrey S. Berman, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Jonathan D. Larsen, the Acting Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced that MUFTAU ADAMU, a/k/a “Muftau Adams,” a/k/a “Muftau Iddrissu,” pled guilty today to one count of conspiracy to commit wire fraud in connection with a fraud scheme based in the Republic of Ghana (“Ghana”) involving the theft of over $10 million through business email compromises and romance scams that targeted the elderly from at least in or about 2014 through in or about 2018.  ADAMU is the fifth defendant to plead guilty in the case.  Four other defendants – TOUREY AHMED RUFAI, a/k/a “Joe Thompson,” a/k/a “Joe Terry,” a/k/a “Rufai A Tourey,” a/k/a “Ahmed Rufai Tourey,” PRINCE NANA AGGREY, ABDUL RASHID MASOUD, and MUBARAK BATURI, a/k/a “Eben Karsah,” were arrested in 2018 and also pled guilty earlier this year.  RUFAI, AGGREY, and BATURI pled guilty on January 9, January 28, and February 8, 2019, respectively, to one count of conspiracy to commit wire fraud.  MASOUD pled guilty on January 18, 2019, to one count of receiving stolen property.  ADAMU pled guilty before U.S. Magistrate Judge Kevin Nathaniel Fox.  The case is assigned to U.S. District Judge Denise L. Cote. 

Manhattan U.S. Attorney Geoffrey S. Berman said:  “These five defendants admitted to participating in a conspiracy that involved stealing millions of dollars from U.S. businesses and individuals across the United States and laundering that money to their co-conspirators in Ghana through a network of bank accounts in the Bronx, many of which were opened using fake names and businesses.  The conspiracy’s commission of fraud through business email compromises and the targeting of elderly victims through romance scams is particularly egregious.  These defendants now await sentencing for their crimes.”     

FBI Assistant Director William F. Sweeney Jr. said:  “There’s often a misconception that financial schemes, such as those detailed in this case, are easy to spot.  This is especially true for companies with a high level of awareness about business email compromises, and those individuals who are caught off guard by a scammer willing to capitalize on their trust and compassion.  This fraud alone involved the alleged theft of more than $10 million, proving there’s often a way around the general safeguards put in place by businesses and individuals alike.  Today’s announcement is a good reminder for all to stay alert and remember, if something doesn’t feel right, chances are it’s the wrong thing to do.”

IRS-CI Acting Special Agent in Charge Jonathan D. Larsen said:  “Every defendant in today’s announcement shares one trait in common – greed. This desire for money drove them to prey upon the vulnerable in our society. Thanks to the financial expertise and diligence of IRS-CI special agents, who worked side-by-side with our law enforcement partners to uncover these schemes, these criminals are off the street and will now face the consequences of their actions.”

According to allegations in the Complaints and the Indictment filed in the case:

Between 2014 and 2018, ADAMU, RUFAI, AGGREY, MASOUD, and BATURI were members of a criminal enterprise (the “Enterprise”) based in Ghana that committed a series of business email compromises and romance scams against individuals and businesses located across the United States, including in the Southern District of New York. 

The objective of the Enterprise’s business email compromise fraud scheme was to trick and deceive businesses into wiring funds into accounts controlled by the Enterprise.  First, members of the Enterprise created email accounts with slight variations of email accounts used by employees of a victim company or third parties engaged in business with a company, to “spoof” or impersonate those employees or third parties.  These fake email accounts were specifically designed to trick other employees of the company with access to the company’s finances into thinking the fake email accounts were authentic.  The fake email accounts were used to send instructions to wire money to certain bank accounts and also included fake authorization letters for the wire transfers that contained forged signatures of company employees.  By using this method of deception, the Enterprise sought to trick the victims into transferring hundreds of thousands of dollars to bank accounts the victims believed were under the control of legitimate recipients of the funds as part of normal business operations, when in fact the bank accounts were under the control of members of the Enterprise, including ADAMU, RUFAI, AGGREY, MASOUD, and BATURI.

The Enterprise conducted the romance scams by using electronic messages sent via email, text messaging, or online dating websites that deluded the victims, many of whom were vulnerable men and women over the age of 60 who lived alone, into believing the victims were in romantic relationships, when in fact the correspondents were members of the Enterprise using fake identities.  Once members of the Enterprise had gained the trust of the victims using the fake identity, they used false pretenses, such as a shipment of gold or receiving a portion of an investment, to cause the victims to wire money to bank accounts the victims believed were controlled by their romantic interests, when in fact the bank accounts were controlled by members of the Enterprise.  At times, the members of the Enterprise also used false pretenses to cause the victims to receive funds into the victims’ bank accounts, which, unbeknownst to the victims, were fraud proceeds, and to transfer those funds to accounts under the control of members of the Enterprise.  The members of the Enterprise, posing as the romantic interests of the victims, also introduced the victims to other individuals purporting to be, for example, consultants or lawyers, who then used false pretenses to cause the victims to wire money to bank accounts controlled by members of the Enterprise. 

ADAMU, RUFAI, AGGREY, MASOUD, BATURI, and their co-conspirators received or otherwise directed the receipt of over $10 million in fraud proceeds from victims of the Enterprise in bank accounts that they controlled in the Bronx, New York.  Some of these bank accounts were opened using fake names, stolen identities, or shell companies in order to avoid detection and hide the true identities of the members of the Enterprise controlling those accounts.  Once the defendants received the fraud proceeds in bank accounts under their control, the defendants withdrew, transported, and laundered those fraud proceeds to other members of the Enterprise, including those located in Ghana.     

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ADAMU, 30, RUFAI, 33, AGGREY, 43, and BATURI, 29, all of the Bronx, New York, pled guilty to one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison.  MASOUD, 36, of the Bronx, New York, pled guilty to one count of conspiracy to receive stolen money, which carries a maximum sentence of five years. 

The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.

ADAMU is scheduled to be sentenced on June 7, 2019, at 10:30 a.m.  RUFAI is scheduled to be sentenced on April 12, 2019, at 11:00 a.m.  MASOUD is scheduled to be sentenced on April 19, 2019, at 11:00 a.m.  BATURI and AGGREY are scheduled to be sentenced on May 10, 2019, at 10:30 a.m. and 2:00 p.m., respectively.  Each of the defendants will be sentenced by Judge Cote.

Any businesses or individuals who believe they may have been the victim of a business email compromise or a romance scam or have information regarding such crimes should file a complaint with the FBI’s Internet Crime Complaint Center (“IC3”) at https://www.ic3.gov or contact their local FBI office.

Mr. Berman praised the outstanding investigative work of the FBI and IRS-CI.  Mr. Berman also thanked U.S. Customs and Border Protection, Ghana’s Economic and Organised Crime Office, and the FBI Legal Attaché in Accra, Ghana, for their helpful assistance with the investigation.

The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit.  Assistant United States Attorneys Sagar K. Ravi and Andrew D. Beaty are in charge of the prosecution.

BROOKLYN, N.Y. – Joaquin Archivaldo Guzman Loera, known by various aliases, including “El Chapo” and “El Rapido,” was convicted today by a federal jury in Brooklyn of being a principal leader of a continuing criminal enterprise – the Mexican organized crime syndicate known as the Sinaloa Cartel – a charge that includes 26 drug-related violations and one murder conspiracy.  Guzman Loera was convicted of all 10 counts of the superseding indictment, including narcotics trafficking, using a firearm in furtherance of his drug crimes and participating in a money laundering conspiracy.  The verdict followed a 12-week trial before United States District Judge Brian M. Cogan. Guzman Loera faces a mandatory sentence of life imprisonment.

Matthew G. Whitaker, Acting Attorney General; Richard P. Donoghue, United States Attorney for the Eastern District of New York; Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida; Brian A. Benczkowski, Assistant Attorney General of the Justice Department’s Criminal Division; Uttam Dhillon, Acting Administrator, U.S. Drug Enforcement Administration (DEA); Christopher A. Wray, Director, Federal Bureau of Investigation (FBI); Kirstjen Nielsen, Secretary, United States Department of Homeland Security; Derek Benner, Executive Associate Director, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Bryan T. Mullee, Acting U.S. Marshal, Eastern District of New York; and James P. O’Neill, Commissioner, New York City Police Department, announced the verdict.

The Evidence at Trial

As proven at trial, Guzman Loera was a principal leader of the Sinaloa Cartel, a Mexico-based international drug trafficking organization responsible for importing and distributing vast quantities of cocaine, marijuana, methamphetamine and heroin in the United States.  The evidence at trial, including testimony from 14 cooperating witnesses; narcotics seizures totaling over 130,000 kilograms of cocaine and heroin; weapons, including AK-47s and a rocket-propelled grenade launcher; ledgers; text messages; videos; photographs and intercepted recordings, detailed the drug trafficking activity of Guzman Loera and his co-conspirators over a 25-year period from January 1989 until December 2014.  Guzman Loera was repeatedly referred to by witnesses as one of the leaders of the Sinaloa Cartel. 

Guzman Loera oversaw the smuggling of narcotics to wholesale distributors in New York, Miami, Atlanta, Chicago, Arizona, Los Angeles and elsewhere.  The billions of illicit dollars generated from drug sales in the United States were then clandestinely transported back to Mexico.  Guzman Loera used “sicarios,” or hit men, who carried out hundreds of acts of violence in Mexico to enforce Sinaloa’s control of territories and to eliminate those who posed a threat to the Sinaloa Cartel.

Drug Trafficking                     

In the course of the decades-long drug trafficking conspiracy, the Sinaloa Cartel transported tens of thousands of kilograms of narcotics from Central and South America for distribution in the United States.  Guzman Loera used various methods to transport the cartel’s narcotics into the United States, including submarines, carbon fiber airplanes, trains with secret compartments and transnational underground tunnels.  Multiple witnesses testified about seizures by law enforcement officers of massive amounts of cocaine, heroin and marijuana linked to the Sinaloa Cartel.  One of the largest seizures of drugs bound for the U.S. involved over seven tons of cocaine concealed in jalapeño cans. 

The jury also heard recordings of Guzman Loera’s own damning words discussing his drug trafficking, corruption and violence.  calls included Guzman Loera discussing sending “ice,” meaning methamphetamine, to Ohio, Tucson, Minneapolis and Los Angeles. 

Communications Network

Guzman Loera also utilized a sophisticated encrypted communications network to operate the global narcotics trafficking operation.  As an information technology engineer testified at trial, Guzman Loera paid him one million dollars to purchase and set up a network to enable the defendant to communicate via Internet with his drug-trafficking associates in Colombia, Ecuador, Canada and the United States without fear of being intercepted by law enforcement or his rivals.   The witness devised a secret and secure system, consisting of encrypted cell phones and encrypted apps.

Cartel Violence

The success of the Sinaloa Cartel relied upon the use of violence to maintain their power throughout the region and beyond.  Numerous co-conspirators testified that Guzman Loera directed his hitmen to kidnap, interrogate, torture and shoot members of rival drug organizations, at times carrying out acts of violence himself.  A former hitman testified that Guzman Loera beat two men with a tree branch until their bodies “were completely like rag dolls,” before shooting the men and ordering their bodies to be tossed into a bonfire.  The former hitman also testified that Guzman Loera interrogated a rival drug cartel member, shot him and ordered that he be buried alive.  In an intercepted call, the jury heard Guzman Loera order one of his sicarios to kidnap rival cartel members, but not to kill them without first checking with him.

Weapons

The Sinaloa Cartel had unfettered access to weapons.  A law enforcement witness showed the jury over 40 AK-47s that were seized in El Paso, Texas before they could be delivered to Guzman Loera in Mexico.  Additionally, witnesses identified photographs of various weapons, including grenades and a rocket-propelled grenade launcher utilized by the Sinaloa Cartel.  Guzman Loera’s personal arsenal included a gold plated AK-47 and three diamond-encrusted .38 caliber handguns, one emblazoned with his initials, “JGL.” 

Corruption

The evidence presented at trial demonstrated that to further the interests of the Sinaloa Cartel, Guzman Loera and his organization took advantage of a vast network of corrupt government officials.  These officials ranged from local law enforcement officers, prison guards, state officials, high ranking members of the armed forces, as well as politicians.  These corrupt officials assisted Guzman Loera and his organization in exchange for millions of dollars’ worth of bribery payments.  For example, according to the testimony of several witnesses, in many instances, Guzman Loera and his workers were warned of pending law enforcement operations which allowed Guzman Loera to avoid capture on multiple occasions.  In other instances, Guzman Loera, through his employees, paid officials to turn a blind eye to trafficking activities in an effort to facilitate the shipment of drugs, weapons and bulk cash. 

Money Laundering

Guzman Loera’s lucrative drug trafficking business generated billions of dollars in illicit proceeds.  Guzman Lorea used various methods to launder money including bulk cash smuggling from the United States to Mexico.  One of the largest seizures was of $1.26 million seized from hidden compartments in a truck driven by Guzman Loera’s brother in Arizona in 1989.  In addition to the bulk cash smuggling, Guzman Loera oversaw numerous shell companies, including a juice company and a fish flour company, to launder the cartel’s narcotics trafficking proceeds.

“I am pleased that the Department has brought Joaquin Guzman Loera (El Chapo) to justice by securing a conviction against this drug kingpin, who was a principal leader of the Sinaloa Cartel,” said Acting Attorney General Whitaker.  “As was clear to the jury, Guzman Loera’s massive, multi-billion dollar criminal enterprise was responsible for flooding the streets of the United States with hundreds of tons of cocaine, as well as enormous quantities of other dangerous drugs such as heroin and methamphetamine. The trial evidence also overwhelmingly showed that Guzman’s unceasing efforts to expand his cartel’s control and consolidate its power left a wake of corruption and violence in communities in both Mexico and the United States.  This case demonstrated the extraordinary reach of the U.S. government, our tenacity and commitment to pursuing kingpins like Guzman whom — if their power is unchecked — will, like Guzman, develop what for 25 years was an almost unstoppable capacity to move massive quantities of drugs into our country.  Guzman had the capital to absorb huge losses and run his enterprise with impunity; the enormous power to corrupt; and the capability to employ violence on a massive scale.  This case, and more importantly, this conviction serves as an irrefutable message to the kingpins that remain in Mexico, and those that aspire to be the next Chapo Guzman, that eventually you will be apprehended and prosecuted. Finally, this verdict demonstrates that the United States, working in close partnership with the Mexican government, will continue to bring all possible resources to bear in its fight against international drug traffickers and their violent organizations.”

“Guzman Loera’s bloody reign atop the Sinaloa Cartel has come to an end, and the myth that he could not be brought to justice has been laid to rest.  Today, Guzman Loera has been held accountable for the tons of illegal narcotics he trafficked for more than two decades, the murders he ordered and committed, and the billions of dollars he reaped while causing incalculable pain and suffering to those devastated by his drugs,” stated EDNY United States Attorney Donoghue.  “Today’s verdict is the culmination of the tireless work of countless brave members of law enforcement, here and abroad, and we congratulate them.  The Department of Justice is committed to eradicating criminal organizations that fuel America’s drug epidemic, and our mission will continue until it is completed.”

“The conviction of former Sinaloa Cartel leader Joaquin Guzman Loera strips the power from a man who employed horrific acts of violence to infect communities, throughout the United States and abroad, with the venom of illicit drugs,” stated SDFL United States Attorney Fajardo Orshan.  “Today’s verdict is a reminder to all, that our international borders do not protect narco-traffickers and the cartels’ criminal enterprises from federal prosecution.  U.S. Attorney’s Offices across the nation stand united with our domestic and foreign law enforcement partners, as we continue our fight against transnational criminal organizations.”

“Today’s conviction of Joaquin “El Chapo” Guzman demonstrates the dedication and determination of the men and women of DEA to bring the world’s most dangerous and prolific drug trafficker to justice,” stated DEA Acting Administrator Dhillon. “Those who bring drugs and violence into the United States that destroy lives and communities will not be tolerated, nor evade our reach. The success of this case is a testament to the strength of our relationship with our Mexican counterparts. DEA will continue to pursue justice worldwide and protect Americans.”

“The reign of Joaquin Guzman Loera’s crime and violence has come to an end,” said FBI Director Christopher Wray.  “As leader of the Sinaloa Cartel, Guzman Loera carried out and directed acts of brazen violence as he oversaw the import and distribution of vast amounts of illegal drugs throughout the United States.  But today, through the steadfast determination and collective efforts of the FBI and our law enforcement partners both domestic and abroad, and due to our continuing partnership with the government of Mexico, justice has been served.”

“The guilty verdict against Joaquin Guzman Loera, one of the most violent and feared drug kingpins of our time, is a testament to the hard work and courage of America’s frontline law enforcement personnel, including ICE’s Homeland Security Investigations. They gathered substantial evidence over multiple investigations, which made his extradition to the United States and a successful prosecution possible,” stated United States Department of Homeland Security Secretary Nielsen.  “Today’s verdict sends an unmistakable message to transnational criminals: you cannot hide, you are not beyond our reach, and we will find you and bring you to face justice.  Like Guzman, you will suffer the consequences of your criminal behavior.  I applaud the brave men and women at DHS who helped make this conviction possible and thank our interagency and international partners for their exceptional work.”

“HSI is committed to using our unique border authority to target and dismantle transnational criminal organizations responsible for trafficking narcotics and bringing violence into the United States,” said HSI Executive Associate Director Benner.  “Through collaboration with local, federal and international law enforcement partners, HSI special agents were able to bring an end to Joaquin Guzman Loera’s criminal activities, and help ensure he was brought to justice.”

“The conviction of Joaquin “El Chapo” Guzman demonstrates what is possible when law enforcement works collectively and coordinates their efforts. The United States Marshals Service ensured the integrity of the judicial process in this case.  From providing safe and secure detention and transportation of the world’s most notorious drug kingpin to ensuring the anonymity of the jury, protecting the judge, attorneys, witnesses and the public, the Marshals Service proudly played its important role in the process,” said Acting U.S. Marshal Mullee of the Eastern District of New York.  “I would like to express my gratitude to all of our law enforcement partners who worked tirelessly in support of our mission.  They are the talented men and women of the New York City Police Department, Federal Protective Service, 24th Civil Support Team of the New York National Guard, and the Federal Bureau of Prisons. The U.S. Marshals take our responsibility of protecting the federal judicial process very seriously. We must anticipate and deter threats, while continuously developing and employing innovative protective tactics. We carry out these responsibilities with precision every day across the country. The successful prosecution of Joaquin “El Chapo” Guzman stands as a shining example of our mission.”

“Just over two years ago, we announced the arrival of this notorious drug kingpin on U.S. soil, where he would face American justice and finally answer for his many years of illegal behavior.  And today, I commend the members of the jury for their dedication to this important case, as well as the lawyers of the Eastern District and all of our domestic and foreign law-enforcement colleagues, who continue to be our great partners in so many efforts.  In close cooperation with members of the DEA, the FBI, the U.S. Marshals Service, Homeland Security Investigations, the New York State Police and more, NYPD detectives on the Drug Enforcement Task Force tirelessly investigated Mr. Guzman Loera’s criminal enterprise for years,” stated NYPD Commissioner O’Neill.  “Today’s guilty verdict shows that, collectively, we never shelve an unfinished case.  He operated a drug-trafficking network responsible for perpetuating a murderous, toxic scourge that forever altered lives, tore apart families and netted billions of dollars in illicit revenue.  I thank the investigators for their hard work, and I remind the people we serve that New York City and America will always stand with our colleagues around the world in the fight against any individual or criminal group that venerates illegal profit above all else.”

When sentenced by Judge Cogan, Guzman Loera faces a mandatory life sentence without the possibility of parole for leading a continuing criminal enterprise, and a sentence of up to life imprisonment on the seven remaining drug counts.  After the verdict, the government will seek a forfeiture money judgment for billions of dollars constituting the cartel’s illegal drug-trafficking proceeds.

The government’s case is being prosecuted by Assistant U.S. Attorneys Gina Parlovecchio, Andrea Goldbarg, Michael Robotti, Patricia Notopoulos and Hiral Mehta from the Eastern District of New York; Assistant U.S. Attorneys Adam Fels and Lynn Kirkpatrick from the Southern District of Florida; and Trial Attorneys Amanda Liskamm, Anthony Nardozzi, Michael Lang and Brett Reynolds of the U.S. Department of Justice Criminal Division’s Narcotic and Dangerous Drug Section.

The case was investigated by the DEA, ICE and the FBI, in cooperation with Mexican, Ecuadorian, Netherlands, Dominican and Colombian law enforcement authorities.  Substantial assistance was provided by the U.S. Attorneys’ Offices in the Northern District of Illinois, the Western District of Texas, the Southern District of New York, the Southern District of California and the District of New Hampshire.  The Department of Justice Office of International Affairs also played an integral role in securing the extradition of Guzman Loera to the United States, in cooperation with authorities of the Mexican government, without which his extradition and prosecution would not have been possible.  The investigative efforts in this case were coordinated with the Department of Justice Special Operations Division, comprising agents, analysts and attorneys from the Criminal Division’s Narcotic and Dangerous Drug Section, DEA New York, DEA Miami, FBI Washington Field Office, FBI New York Field Office, FBI Miami Field Office, ICE HSI New York, ICE HSI Nogales, Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Marshals Service, Internal Revenue Service - Criminal Investigation, U.S. Bureau of Prisons, NYPD and New York State Police.

This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies.  The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.

Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and David E. Beach, the Special Agent-in-Charge of the New York Field Office of the United States Secret Service (“USSS”), announced today that EMEKA NNAWUBA, a/k/a “Benjamin Alabie,” who is a member of the United States Army Reserves, has been charged with participating in a scheme to defraud banks and launder the proceeds of frauds perpetrated against dozens of victims.  NNAWUBA was arrested late yesterday, and will be presented today before Chief United States Magistrate Judge Erin L. Wiedemann in Fayetteville, Arkansas.  The case has been assigned to United States District Judge Katherine Polk Failla.

U.S. Attorney Geoffrey S. Berman said:  “Emeka Nnawuba allegedly laundered money for a scheme that trolled dating websites in order to steal money from the accounts of unsuspecting women.  Especially so close to Valentine’s Day, this case serves as a cautionary reminder to be especially wary of those who view dating sites as a predatory opportunity.  Nnawuba’s alleged luck in love has run out, as he potentially faces a lengthy period of time alone . . . in federal prison.”

U.S. Secret Service White Plains Resident Agent-in-Charge Julie Goodwin said:  “The charges announced today illustrate the Secret Service's commitment to aggressively investigating financial crimes.  I would like to thank HSI and the U.S. Attorney's Office for their cooperation and partnership in this case.”

According to the allegations in the Superseding Indictment[1]:

From at least 2016 until 2018, NNAWUBA participated in a scheme to defraud banks and launder the proceeds of frauds perpetrated against dozens of victims.  Among other things, NNAWUBA used false identities and false passports to open bank accounts; received or attempted to receive nearly $1,000,000 in fraud proceeds; withdrew tens of thousands of dollars of fraud proceeds in cash; and transferred hundreds of thousands of dollars of fraud proceeds to bank accounts controlled by co-conspirators in an effort to conceal the source of funds.

The funds laundered by NNAWUBA were procured principally by (a) romance scams, in which members of the scheme trolled dating websites to find unsuspecting women and stole their money on false pretenses; and (b) business compromise scams, in which members of the scheme impersonated individuals, professionals, or businesses in the course of otherwise ordinary financial transactions, and then fraudulently induced the counterparties to those transactions to transfer funds to bank accounts controlled and operated by NNAWUBA or other members of the scheme.

*                      *                      *

NNAWUBA, 29, of Fayetteville, Arkansas, is charged with one count of participating in a conspiracy to commit bank fraud, which carries a maximum sentence of 30 years in prison, and one count of participating in a conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison.  The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.  

Five other individuals previously were charged and pled guilty in connection with their participation in the scheme. 

On February 12, 2018, Ifeanyi Ezeji pled guilty to participating in a conspiracy to commit money laundering.  On May 31, 2018, Judge Failla sentenced IFEANYI EZEJI to 40 months in prison and three years of supervised release, and ordered him to forfeit $2,080,347.14 and pay restitution in the amount of $873,891.31.

On May 31, 2018, Christopher Ezeji pled guilty to passport counterfeiting.  On October 4, 2018, Judge Failla sentenced Christopher Ezeji to five years of probation, and ordered him to forfeit $500.00 and pay restitution in the amount of $873,891.31.

On June 22, 2018, Peter Abbah pled guilty to aggravated identity theft.  On October 2, 2018, Judge Failla sentenced Abbah to 24 months in prison and one year of supervised release, and ordered him pay restitution in the amount of $218,498.76.

On July 27, 2018, Michael Akhiero pled guilty to participating in a conspiracy to commit bank fraud.  Akhiero is scheduled to be sentenced by Judge Failla on March 14, 2019.

On January 11, 2019, Okechukwu Peter Ezika pled guilty to engaging in monetary transactions in property derived from specified unlawful activity.  Ezika is scheduled to be sentenced by Judge Failla on April 10, 2019.

*                      *                      *

Mr. Berman praised the outstanding investigative work of the USSS, and thanked United States Immigration and Customs Enforcement’s Homeland Security Investigations for its assistance. 

The prosecution is being handled by the Office’s General Crimes Unit.  Assistant United States Attorneys Juliana N. Murray and Robert B. Sobelman are in charge of the prosecution. 

The charges contained in the Superseding Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

St. Louis, MO – Dionne Lamont Gatling, a/k/a “Cuffy,” 53, of St. Charles, MO, pled guilty to various drug trafficking charges and the use of firearms resulting in death.  Gatling appeared today before U.S. District Judge Rodney W. Sippel who accepted his plea and set his sentencing date for May 17, 2019.

According to court documents, Dionne Gatling was the leader and organizer of the Gatling Drug Trafficking Organization which brought heroin, cocaine, methamphetamine and other drugs to the St. Louis area from 2009 to 2014.  Gatling arranged for the murders of Theodis Howard and Terrance Morgan.  Gatling organized the 2010 murder of Howard as retaliation for Howard’s previous cooperation against Gatling’s brother for drug trafficking.  Gatling directed Andre Rush, another conspirator, to kill Morgan in 2013 in order to prevent Morgan from cooperating in the present investigation.

Gatling pled guilty to the following charges:  1) conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine; 2) conspiracy to distribute and possess with intent to distribute 1 kilogram or more of heroin; 3) attempt to possess with intent to distribute one kilogram or more of heroin; 4) attempt to possess with intent to distribute five kilograms or more of cocaine; and 5) possession of one or more firearms in furtherance of drug-trafficking crime, with deaths resulting.  Each of the charges includes a penalty of not less than ten years imprisonment up to life, with the firearms offense required by law to run consecutively to the drug trafficking charges.  The parties have recommended a total term of imprisonment of 27 years for all of the offenses.  United States District Judge Rodney W. Sippel will determine the appropriate sentenced to be imposed.  In determining any actual sentence to be imposed, a judge is required to consider the United States Sentencing Guidelines, which provide recommended sentencing ranges. 

This case was investigated by the St. Louis Metropolitan Police Department, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Internal Revenue Service.

BOSTON – A Brazilian national pleaded guilty yesterday in federal court in Boston to charges of ATM skimming in towns north of Boston.

Alexandre Kawamura, 43, pleaded guilty to two counts of using counterfeit access devices (debit and credit cards), four counts of possessing device-making equipment (ATM skimming devices and pinhole cameras), and two counts of aggravated identity theft. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for April 17, 2019. Kawamura, who legally entered the U.S. on a tourist visa, will be subject to deportation after he completes his sentence.

Kawamura placed hidden skimming devices and pinhole cameras on Eastern Bank ATMs in Saugus, Stoneham, Medford, and Everett, every day between February 25 and March 16, 2018, when he was arrested. The purpose of the skimming devices was to record bank account information on the magnetic strips of debit and credit cards that unwitting victims inserted into the ATMs. The purpose of the pinhole cameras was to capture the victims’ PINs as they were entered on the ATM keypads.

On March 8, 2018, Kawamura possessed a counterfeit debit card with a magnetic strip that contained the stolen bank account number of a Milton woman. At an ATM in Malden, Kawamura used the card and the victim’s PIN to withdraw $500 cash from the victim’s account.

On March 16, 2018, Kawamura used a counterfeit credit card to buy clothing at a sporting goods store in Medford. The name on the card was an alias, and the card’s magnetic strip contained the stolen Eastern Bank account number of a Medford man, whose account had been compromised the day before.

Kawamura was arrested on March 16 after a bank customer called police to report that he had found a skimming device on a drive-up ATM at an Eastern Bank branch in Stoneham. Police responded and discovered that the pinhole camera was still attached to the ATM. They set up surveillance and waited for the suspect to return. Kawamura drove up to the ATM in a rental car shortly before 11 pm. He appeared to look for the skimming device and then drove off. Stoneham police stopped the car and discovered that the driver had a Brazilian passport in his real name and had rented the car under an alias. Kawamura was in possession of the counterfeit credit card that he had just used to buy clothing at the sporting goods store.  

The charging statute for using a counterfeit access device provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of up to $250,000. The charge of possessing device-making equipment provides for a sentence of no greater than 15 years in prison, three years of supervised release, and a fine of $250,000. The charging statute for aggravated identity theft provides for a mandatory sentence of two years in prison, to be served consecutive to any other sentence imposed, up to one year of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office, made the announcement. Assistant U.S. Attorney Christine Wichers of Lelling’s Major Crimes Unit is prosecuting the case. 

ALBANY, NEW YORK – Arshad Nazir, age 54, of Ticonderoga, New York, pled guilty today to conspiring to defraud Medicaid, and conspiring to pay bribes and kickbacks to Medicaid beneficiaries who used his medical transportation service.  He admitted to causing at least $550,000 in losses, and to paying at least $95,000 in bribes and kickbacks. 

The announcement was made by:

• United States Attorney Grant C. Jaquith;
• James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI);
• New York State Police Acting Superintendent Keith M. Corlett;
• New York State Workers’ Compensation Fraud Inspector General Catherine Leahy Scott; and
• Rensselaer County District Attorney Mary Pat Donnelly.

Today’s plea is the result of a state and federal investigation into Medicaid fraud committed by the owners and operators of medical transportation companies based in Essex County.

Nazir operated Capital Medallion, Inc. d/b/a Avalanche Taxi Service (“Avalanche Taxi”), a Medicaid-funded transportation company based in Ticonderoga.  The New York State Department of Health (“DOH”) paid Nazir’s company at least $2.45 million for Medicaid-funded transportation between 2014 and 2018. 

As part of his plea, Nazir admitted that he committed a variety of frauds against Medicaid and DOH, including: billing Medicaid and receiving payment for trips where beneficiaries drove themselves to their own medical appointments, and falsifying the identities of the drivers for those trips; billing Medicaid and receiving payment for roundtrips to and from medical appointments when the beneficiaries took only one-way trips with Avalanche Taxi; and falsifying pick-up and drop-off locations, in order to increase the purported distances traveled and therefore be able to claim and receive higher Medicaid payments.

Nazir also admitted that he agreed to pay kickbacks and bribes to Medicaid beneficiaries in order to get the beneficiaries to schedule and keep scheduling medical transportation appointments with Avalanche Taxi.  Kickbacks included cash, cigarettes and tobacco, and free goods at Nazir’s convenience store in Ticonderoga. 

Nazir faces up to 10 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of up to 3 years, when he is sentenced on June 18, 2019 by Senior United States District Judge Thomas J. McAvoy.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors. 

Nazir has also agreed to pay $550,000 in restitution to the New York State Department of Health, and to plead guilty to charges of grand larceny and failure to secure workers’ compensation in a parallel case pending in Essex County Court, brought by the Rensselaer County District Attorney as Special Prosecutor.  

Charges remain pending against several other defendants.  Those defendants are presumed innocent unless and until proven guilty.

The federal charges are being investigated by the FBI and the New York State Police’s Special Investigations Unit, and are being prosecuted by Assistant U.S. Attorney Michael Barnett.

The state charges are being investigated by the New York State Police’s Special Investigations Unit, as well as the Office of the New York State Inspector General, and are being prosecuted by Rensselaer County Assistant District Attorney Carl Rosenkranz.

Additional agencies assisted in this investigation, including the United States Attorney’s Office-Civil Division; Essex County District Attorney’s Office; New York State Police-Troop B; the Office of the New York State Comptroller, Division of Investigations; New York State Attorney General’s Office, Medicaid Fraud Control Unit (MFCU); Essex County Sheriff’s Office; Homeland Security Investigations (HSI); the Office of Inspector General for the U.S. Department of Health and Human Services (HHS-OIG); and the New York State Department of Labor.

Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. has sentenced Cedrick Antwain Gant (28, Orlando) to 23 years in federal prison for carjacking and brandishing a semiautomatic assault weapon during an attempted carjacking. Gant had pleaded guilty on June 28, 2018.

According to court documents, on September 25, 2017, Gant, brandishing a loaded semiautomatic assault rifle, approached an individual as they drove into their driveway at a home in Eustis. As the victim exited the vehicle, Gant demanded the victim’s keys and wallet. Gant then unsuccessfully attempted to carjack the victim’s vehicle. 

Approximately an hour later, as another individual exited their vehicle at a home in Apopka, Gant approached the individual brandishing the same semiautomatic assault rifle and demanded that the victim drop their keys. In fear for their life, the victim threw the car keys to the ground, ran away, and called 911. Gant then drove off with the vehicle and attempted to flee from law enforcement in a subsequent car chase. Officers were successful in stopping the vehicle in the area of US 441 and Roger Williams Road, but Gant fled on foot and entered a residence occupied by a third victim and demanded a change of clothes and to use a telephone. After securing the third victim’s residence, law enforcement officers located Gant hiding in a wooded area behind the home.

This case was investigated by the FBI, the Apopka Police Department, and the Eustis Police Department. It was prosecuted by Assistant United States Attorney Sean P. Shecter.

John H. Durham, United States Attorney for the District of Connecticut, announced that LATOYA McKREITH, 36, of Chicopee, Massachusetts, pleaded guilty today before U.S. District Judge Janet Bond Arterton in New Haven to one count of conspiracy to distribute, and to possess with intent to distribute, 500 grams or more of cocaine.

According to court documents and statements made in court, on May 30, 2018, McKreith and Laprese Gollman were arrested after they drove to New Haven in an attempt to purchase four kilograms of cocaine.  Investigators seized approximately $100,000 from Gollman at the time of his arrest.

Judge Arterton scheduled sentencing for May 8, 2019, at which time McKreith faces a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years.  McKreith is released on a $100,000 bond pending sentencing.

Gollman, of Springfield, Massachusetts, previously pleaded guilty to the same charge and, on October 15, 2018, was sentenced by U.S. District Judge Victor A. Bolden in Bridgeport to 120 months of imprisonment, followed by eight years of supervised release.

This matter was investigated by the Drug Enforcement Administration’s New Haven Task Force and the New Haven and Hamden Police Departments.  This case is being prosecuted by Assistant U.S. Attorney Jocelyn Courtney Kaoutzanis.

BOSTON – A Ludlow couple pleaded guilty yesterday in federal court in Springfield to mail fraud, identity theft, and tax evasion.

Joanne Murray, 54, and James Murray, 53, each pleaded guilty to an Information charging them with one count of conspiracy to commit mail fraud, aggravated identity theft, and tax evasion. 

From approximately 2010 through 2015, the Murrays, along with others, engaged in a scheme to defraud the Federal Home Loan Mortgage Corporation, commonly known as Freddie Mac. Joanne worked at a Springfield real estate brokerage, which managed hundreds of foreclosed properties owned by Freddie Mac. 

In the scheme, Joanne, James, and others, agreed to submit fraudulent “reimbursements” by the brokerage to Freddie Mac for James’ company, amounting to approximately $1,372,099 in repair, improvement, and maintenance projects. After Freddie Mac paid the purported reimbursements, the brokerage paid James approximately 90% of those amounts and retained an approximate 10% skim. Joanne ensured that James’s company would win these projects by submitting fraudulent bids to Freddie Mac by purported competitors. To avoid detection by Freddie Mac, Joanne submitted bids in a friend’s name, without his knowledge, instead of James’ company, for work that was ultimately performed by James’ company. The Murrays also agreed to submit similar fraudulent requests for reimbursement of minor cleaning projects for James’ relative, amounting to approximately $68,960, in exchange for the brokerage’s retention of approximately 10% of the relative’s payments.  

In addition, from 2012 through 2014, the Murrays willfully evaded payment on outstanding federal tax debts based upon their 2008, 2009, 2010, and 2011 tax years by cashing numerous checks from the brokerage totaling approximately $461,030 rather than depositing those checks into their bank accounts. Lastly, in 2014, the Murrays jointly filed an individual federal income tax return that under-reported their gross receipts by approximately $151,178. 

The conspiracy charge provides for a sentence of no greater than five years in prison, up to five years of supervised release, and a fine of $250,000. The aggravated identity theft charges provide for a mandatory two year sentence consecutive to any other term of imprisonment. The tax evasion charge provides for a sentence of no greater than of five years in prison, a maximum of five years of supervised release, and a fine of $100,000. Sentences are imposed based upon the U.S. Sentencing Guidelines and other statutory factors.   

United States Attorney Andrew E. Lelling; Robert Manchak, Acting Special Agent in Charge of the Federal Housing Finance Agency; Kristina O’Connell, Special Agent In Charge of the Internal Revenue Service, Criminal Investigation, New England Field Division; John Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division, made the announcement. Assistant U.S. Attorneys Steven H. Breslow and Deepika Shukla of Lelling’s Springfield Branch Office are prosecuting the case.