John H. Durham, United States Attorney for the District of Connecticut, announced that STANLEY HUGOCHUKWU NWOKE, also known as “Stanley Banks,” “Banks,” “Hugo Banks,” “Banky,” and “Jose Calderon,” 28, a citizen of Nigeria, was sentenced today by U.S. District Judge Janet C. Hall in New Haven to 36 months of imprisonment for his role in a business e-mail compromise scheme.

According to court documents and statements made in court, Nwoke conspired with Adeyemi Odufuye and others in a business compromise scheme that targeted hundreds, if not thousands, of CFOs, controllers and others at businesses, nonprofit organizations, and schools in Connecticut and across the United States.  As part of the scheme, Odufuye, Nwoke and others, including Olumuyiwa Yahtrip Adejumo, sent e-mails addressed to executives that were made to appear to be sent from the legitimate e-mail address of the CEO or other executive from the business.  The emails were sent with the intent of having the recipients send or wire money to bank accounts used by members of the conspiracy.

The investigation revealed that scheme participants controlled multiple e-mail and social media accounts used in the scheme and, in certain instances, sent e-mails and attachments containing malware to the intended recipients.

In late 2015, Odufuye and others sent or caused to be sent dozens of e-mails to the controller of a company in Torrington, Connecticut.  In the e-mails, Odufuye posed at the real CEO of the victim company and instructed the controller to send multiple wire transfers exceeding a total of $1 million from the company’s accounts to various individuals and purported entities.  The company then sent five wire transfers totaling more than $500,000 to accounts in Virginia, Florida, Washington, D.C., and Hong Kong.

The investigation revealed that Odufuye and others also targeted a company headquartered in Waterbury, Connecticut, as part of this scheme.

Judge Hall ordered Nwoke to pay restitution of $662,053.87.

Nwoke was arrested in Mauritius on May 8, 2018, was extradited to the U.S., and has been detained since his arrest.  On May 7, 2019, he pleaded guilty to one count of conspiracy to commit wire fraud.

Odufuye, formerly residing in Sheffield, United Kingdom, and Adejumo, formerly residing in Toledo, Ohio, both citizens of Nigeria, previously pleaded guilty to related charges.  On December 12, 2018, Odufuye was sentenced to 45 months of imprisonment and was ordered to pay restitution of $921,497.87 to victims of the scheme.  On August 17, 2018, Adejumo was sentenced to 15 months of imprisonment.

This matter was investigated by the Federal Bureau of Investigation and the Connecticut Cyber Task Force.  The case was prosecuted by Assistant U.S. Attorney David T. Huang.

U.S. Attorney Durham thanked the Department of Justice’s Office of International Affairs, the United Kingdom’s National Crime Agency, the United Kingdom’s Metropolitan Police, and the Mauritius Police Force’s Central Criminal Investigation Department for their assistance in this case.  

To contact the Connecticut Cyber Task Force, please call the FBI in New Haven at 203-777-6311.

St. Louis, MO – James Flannel, 37, of St. Louis, MO, pleaded guilty this morning to one count of discharging a firearm in furtherance of carjacking that resulted in the death of Boris Iouioukine, a Laclede Cab Company driver.  Flannel appeared before U.S. District Judge E. Richard Webber who accepted his plea and set his sentencing date for October 31, 2019.

According to the plea agreement, Flannel was in the possession of a nine-millimeter firearm and magazine on June 25, 2018.  Flannel called the Laclede Cab Company and ordered a taxi.  A red minivan taxi being driven by victim Boris Iouioukine responded to Flannel’s request.  Flannel got into the taxi at approximately 8:52 p.m.  Flannel was armed with the nine millimeter firearm when he entered the taxi.

At approximately 9:14 p.m. while inside the taxi, Flannel shot and killed Boris Iouioukine with the nine-millimeter pistol.  The shooting occurred inside the cab while the taxi was present in 2500 block of East Dodier within the City of St. Louis.  Boris Iouioukine’s body was left in the street by Flannel.  Flannel drove the taxi from the area after the shooting.  Flannel drove the taxi to the area of Castle Point in Saint Louis County, Missouri.  Flannel parked the taxi at the driveway of a residence in the 10000 block of Duke Drive and fled. 

At approximately 9:26 p.m., the St. Louis Metropolitan Police Department received calls for help relative to a man down in the middle of the street.  Police and the fire department responded and located Boris Iouioukine.  Paramedics pronounced Boris Iouioukine dead at the scene.   

Victim Borsi Iouioukine’s taxi was located by police on the morning of June 26, 2018.  Among other things, a nine-millimeter shell casing was located and seized from the driver’s side floorboard.  Other items were seized from inside the taxi, including a water bottle.  Analysis of the water bottle located Flannel’s print on it.  Flannel was charged by way of federal complaint on June 27, 2018.   

On August 10, 2018, investigators initiated an investigation within Spanish Lake Park in an effort to locate and recover the nine millimeter firearm utilized by Flannel during the armed carjacking and murder.  A search within the park eventually located a Taurus make, Millennium G2 model, nine millimeter semi-automatic pistol.  The firearm was operable and loaded with 13 rounds.  It was seized.  Subsequent ballistic analysis of the firearm confirmed that the shell casing recovered from the within taxi was fired from the nine millimeter firearm located and seized from within Spanish Lake Park.       

The charge of discharging a firearm in furtherance of a crime of violence resulting in death carries a mandatory minimum term of imprisonment of 10 years to life.  In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.  As part of Flannel’s plea agreement, the parties will recommend at the time of sentencing that a sentence of life imprisonment be imposed.

"We continue to work tirelessly to reduce violence and the number of murders that occur within our community.  Our entire office is dedicated to it.  When a guilty plea like this is achieved, it is important to acknowledge the hard work and dedication our law enforcement partners expend to bring the culprit to justice as soon as a murder, or any crime for that matter, occurs,” said United States Attorney Jeff Jensen following Flannel’s guilty plea.  “Boris Iouioukine was a superb, hardworking, valued member of our community.  His murder was senseless.  We hope today’s guilty plea brings some measure of solace to Mr. Iouioukine’s family, co-workers, and all of those who loved him.”

“The St. Louis Metropolitan Police Department greatly appreciates the continued assistance of the U.S. Attorney’s Office. This partnership, coupled with the perseverance of all the law enforcement agencies involved in this investigation, led to today’s guilty plea. I hope this display of justice will help us combat these violent incidents that occur in our region,” said Chief John Hayden, St. Louis Metropolitan Police Department.

This case was made possible, in part, by investigative leads generated from the Bureau of Alcohol, Tobacco, Firearms and Explosives’ National Integrated Ballistic Information Network (NIBIN). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.

“This case demonstrates the effectiveness of using ballistic intelligence to identify those using firearms to commit violent crimes in our community.  By targeting these offenders we are able to disrupt the shooting cycle that fuels violence and instantly make neighborhoods safer,” said Marino Vidoli, ATF Special Agent in Charge.

The St. Louis Metropolitan and St. Louis County Police Departments; United States Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Metro West Fire Protection District’s Dive/Rescue Response Team investigated this case.

Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Jonathan D. Larsen, Special Agent in Charge of the New York Office of the Internal Revenue Service, Criminal Investigation Division (“IRS-CI”), and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the arrests today of MEHDI MOSLEM and SAAED MOSLEM, father-and-son operators of the Exclusive Motor Sports car dealership in Central Valley, New York.  The defendants will be presented before United States Magistrate Judge Lisa Margaret Smith. 

U.S. Attorney Geoffrey S. Berman said:  “As alleged, Mehdi and Saaed Moslem defrauded the United States by understating income and inventory of their auto dealership, and they defrauded lenders by overstating their net worth in loan applications.  Whether allegedly understating or overstating, father and son were falsifying – and committing crimes.”           

IRS-CI Special Agent in Charge Jonathan D. Larsen said:  “Today’s arrests show that underreporting business gross receipts to conceal millions of dollars of income is a serious criminal offense.  IRS Criminal Investigation will pursue those individuals who break the law and violate the American tax system.”

FBI Assistant Director William F. Sweeney Jr. said:  “Lying to financial institutions and skirting the regulations put in place by U.S. tax laws is a violation of federal law, crimes both Mehdi and Saaed Moslem are charged with today.  The popular saying about certainties in life omits a third guarantee – when the FBI and IRS catch you engaging in fraudulent behavior and illegal business practices, you will be charged.”           

As alleged in the Indictment, which was unsealed today in White Plains federal court:[1]

From 2009 through 2016, MEHDI MOSLEM and SAAED MOSLEM conspired to defraud the United States by concealing millions of dollars of profits relating to Exclusive Motor Sports from the IRS.  To falsely lower their business income, MEHDI MOSLEM and SAAED MOSLEM caused their accountant to prepare partnership tax returns that significantly understated Exclusive Motor Sports’ gross receipts and inventory.  The fraudulent business income figures passed through to MEHDI MOSLEM’s and SAAED MOSLEM’s personal tax returns filed with the IRS, resulting in a substantial underreporting of the amount of tax due.  SAAED MOSLEM then used his fraudulent income tax returns and made other false statements to conceal his assets from creditors when he filed for bankruptcy in 2015.

From 2011 through 2017, MEHDI MOSLEM and SAAED MOSLEM also conspired to defraud multiple financial institutions by submitting falsely inflated net worth statements and fabricated tax returns in connection with loan applications, including for a $1.2 million mortgage on the Exclusive Motor Sports property in Central Valley, on which they later defaulted. 

*                *                *

MEHDI MOSLEM, 70, of Central Valley, New York, and SAAED MOSLEM, 35, of Central Valley, New York, are each charged with one count of conspiracy to defraud the United States, which carries a maximum sentence of five years in prison, and one count of bank fraud conspiracy, which carries a maximum sentence of 30 years in prison.  SAAED MOSLEM is also charged with two counts of making false statements to a lender, each of which carries a maximum sentence of 30 years in prison, and one count of concealing assets and making false declarations in a bankruptcy case, which carries a maximum sentence of five years.  The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.

Mr. Berman praised the outstanding investigative work of the IRS-CI and the FBI.

This case is being handled by the Office’s White Plains Division.  Assistant United States Attorney Daniel Loss is in charge of the prosecution.

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

WHEELING, WEST VIRGINIA – Former Ohio County Magistrate Harry A. Radcliffe, III, was sentenced today to four months incarceration to be followed by two months of home confinement for tax fraud, United States Attorney Bill Powell announced.

“Defendants are not treated differently because they are elected officials. In fact, elected officials know better than most people about the rule of law.  We have done our duty and the court has now imposed its sentence.  We will continue to investigate violations of the public trust,” said Powell.

Radcliffe, age 61, pled guilty to one count of “Conspiracy to Impede the Internal Revenue Service” in April 2019. In tax years 2013, 2014, and 2015, Radcliffe accepted a total of approximately $22,000 in cash payments from William W. Seelbach, then owner of W&S Bail Bonding d/b/a A Bail Bonding by ABC (“ABC”), which payments were offered by Mr. Seelbach as bribes.  These payments were made and received in cash, at least in part, in an effort to impede the Internal Revenue Service in the collection of income taxes.  Radcliffe willfully failed to report this income to the Internal Revenue Service, resulting in a total tax loss of $5,500.00.  He also failed to report this extra-judicial income to the Supreme Court of Appeals of West Virginia.

Radcliffe was ordered to pay $5,500 in restitution to the Internal Revenue Service.

Assistant U.S. Attorneys Jarod J. Douglas and Shawn M. Adkins prosecuted the case on behalf of the government. The Federal Bureau of Investigation, the Internal Revenue Service, the West Virginia Commission on Special Investigations, and the West Virginia State Police investigated. 
 
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.

NEWARK, N.J. – An Afghani citizen and United States Lawful Permanent Resident was indicted today by a federal grand jury for his role in a scheme to smuggle undocumented aliens from Afghanistan to the United States. 

U.S. Attorney Craig Carpenito of the District of New Jersey, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Special Agent in Charge Anthony Salisbury of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Miami, and Special Agent in Charge Brian Michael of HSI Newark, made the announcement.

Mujeeb Rahman Saify, 32, is an Afghanistan national who received a Special Immigrant Visa and became a U.S. Lawful Permanent Resident in 2009, after serving as an interpreter for the U.S. military in Afghanistan.  Since 2009, Saify has resided in New York and Newark. Saify was charged in the District of New Jersey with conspiracy to smuggle aliens to the United States, encouraging and inducing alien smuggling, and attempting to bring aliens to the United States.  If convicted, Saify faces a maximum sentence of 10 years in prison and a $250,000 fine, as well as forfeiture. 

According to the indictment, between July 2016 through February 2017, Saify conspired with members of an Afghanistan and Pakistan-based smuggling network to smuggle two Afghanistan nationals to the United States.  The Afghanistan nationals did not have prior authorization to enter the United States and one had been denied a U.S. visa.  The indictment alleges that Saify made contact with the aliens and arranged meetings with the co-conspirators to discuss smuggling arrangements.  Further, according to the indictment, Saify received payment, gave instructions to the aliens to facilitate the smuggling venture, and he used email and phone communications to facilitate and coordinate the criminal operation.  

The case is being investigated by HSI Miami, with valuable assistance provided by HSI Newark and HSI’s Human Smuggling Unit and the Department of Homeland Security’s Homeland Identities, Targeting, and Exploitation Center (HITEC). The investigation is being conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI.  The ECT program focuses on human smuggling networks that may present particular national security or public safety risks, or present grave humanitarian concerns.  ECT has dedicated investigative, intelligence and prosecutorial resources.  ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.

This case is being prosecuted by Senior Trial Counsel Margaret Ann Mahoney of the U.S. Attorney’s Office of the District of New Jersey, and Trial Attorney Jay Bauer of the Human Rights and Special Prosecutions Section of the DOJ Criminal Division. 

An indictment is merely a formal accusation. Defendants are presumed innocent unless proven guilty in a court of law.

Memphis, TN – On July 23, 2019, a federal grand jury indicted 18 individuals for federal drug charges. U.S. Attorney D. Michael Dunavant announced the indictment today.

The indictment charges that the defendants conspired to commit bank fraud in violation of Title 18, United States Code, Section 1349, and conspiracy to distribute controlled substances in violation of Title 21, United States Code, Section 846. The indictment also requests the forfeiture of a total of $1,243,000 in criminal proceeds from the defendants.

The defendants charged in the indictment and are currently in custody are:

Nashon Baldwin, 24, Los Angeles, California

Carterrio Bogan, 27, Memphis, Tennessee

Terrell Boyland, 30, Memphis, Tennessee

Quinton Chaffin, 28, Memphis, Tennessee

Cortavious Culp, 22, Memphis, Tennessee

Deandre Evans, 20, Memphis, Tennessee

Allon Gates, 23, Memphis, Tennessee

Marcell Glass, 26, Memphis, Tennessee

Jimmy Gause, 25, Memphis, Tennessee

Aaron Henderson, 42, Memphis, Tennessee

Marticus Hill, 29, Memphis, Tennessee

Ledarious Hope, 25, Memphis, Tennessee

Nickelle Jackson, 24, Memphis, Tennessee

Marquice Lester, 24, Memphis, Tennessee

Cordney Smith, 23, Memphis, Tennessee

Marcolm Watson, 26, Memphis, Tennessee

Carlos Whitten, Jr., 23, Memphis, Tennessee

Karlyss Williams, 25, Memphis, Tennessee

The indictment charges that all 18 defendants were members or associates of Fast Cash Boyz Entertainment. According to the indictment, Fast Cash Boyz Entertainment was a music label and, over time, the members "began exploiting the brand by engaging in criminal activity such as bank fraud and drug trafficking to earn "FAST CASH" for the enterprise."

Count 1 of the indictment charges that Carterrio Bogan, Cortavious Culp, Allon Gates, Marcel Glass, Marquice Lester, Karlyss Williams, Cordney Smith, Marcolm Watson, Carlos Whitten, Jr., Quinton Chaffin, Deandre Evens, and Nickell Jackson all conspired to defraud Regions Bank in order to obtain "monies, funds and assets, and credits." According to the indictment, The defendants would deposit, or cause to be deposited, worthless checks into accounts at Regions Bank. After making these deposits, they would withdraw cash from these accounts before Regions and the other banks involved discovered the checks deposited by the defendants were worthless. The conspiracy operated from November, 2017 until July, 2019. As a result of the defendants’ illegal acts, Regions lost a total of $243,000.

Count 2 of the indictment charges that Nashon Baldwin, Carterrio Bogan, Terrell Boyland, Jimmy Gause, Marcel Glass, Aaron Henderson, Marticus Hill, Ledarious Hope, and Cordney Smith conspired to possess with intent to distribute and distribute more than 100 kilograms of marijuana. The indictment charges that the drug conspiracy operated from February, 2016 until October 31, 2018.

The indictment also contains a forfeiture count that seeks the forfeiture of the $243,000 in criminal proceeds generated by the bank fraud conspiracy and at least $1,000,000 in proceeds generated by the drug conspiracy.

"Drug dealing and fraud schemes that distribute poison into our streets and steal money from financial institutions must be stopped. We thank and commend the outstanding investigative work and collaboration by our federal and local law enforcement partners to dismantle the "Fast Cash" criminal enterprise, and our office looks forward to the prosecution of this case that will hold these defendants accountable."

"No matter where you bank, we encourage everyone to be on guard and report it immediately if someone asks for private account information or for access to your account," said Don White, head of Corporate Security for Regions Bank. "At Regions, we work around the clock to detect and prevent fraud. When we see suspicious activity, our investigators work hand-in-hand with law enforcement to get to the bottom of the issue. Today’s announcement shows the result of that partnership. We appreciate the work of each agency involved in bringing this matter to justice."

If convicted of the bank fraud conspiracy, each charged defendant faces a possible sentence of up to 30 years imprisonment and a $1,000,000 fine. If convicted of the drug conspiracy, each charged defendant faces a mandatory minimum sentence of 5 years imprisonment and a possible fine of up to $5,000,000.

The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), U.S. Postal Inspection Service, United States Secret Service, Federal Bureau of Investigation, Drug Enforcement Administration, U.S. Marshals Service, Memphis Police Department’s Violent Crime Unit and Multi-Agency Gang Unit, and the Shelby County Sheriff’s Office investigated this case.

Assistant U.S. Attorneys Michelle Kimbril-Parks and Gregory Allen are prosecuting this case on behalf of the government.

The charges and allegations contained in the indictments are merely accusations, and the defendants are considered innocent unless and until proven guilty.

###

LEXINGTON, Ky.– A Federal grand jury sitting in Lexington has indicted a former employee of the Kentucky Commission (now Office) for Children With Special Health Care Needs, on charges arising from allegations of theft from that agency.  Diana Baker, 53, of Louisville, was charged with one count of mail fraud, one count of aggravated identity theft, and four counts of theft from the state agency.  

Baker was a 28-year employee of the Commission, which is an agency within the Kentucky Cabinet for Health and Family Services that assists families with children with special health care needs in obtaining funding and care.    The indictment alleges that between 2007 and 2018, Baker, who was an Administrative Branch Manager in the Louisville office, manipulated software programs, to generate fraudulent payment vouchers, which purported to reimburse the families of special needs children for out of pocket expenses or pay third party vendors for services to children.  These vouchers were sent in the regular course of business to the Kentucky State Treasurer’s Office, which issued checks that were actually used to make payments on Baker’s credit card accounts, to pay doctors and dentists for services to Baker’s family, and, in one instance, to pay a carpenter for work on a dock for lakefront property owned by Baker.    The amount of the alleged theft is approximately $45,000.   

The investigation leading to the indictment was conducted by the Kentucky Cabinet for Health and Family Services, Office of the Inspector General and the FBI.

Any indictment is an accusation only. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.

PROVIDENCE – The owner of an East Providence automobile transport company was arraigned in U.S. District Court in Providence today on charges he falsified U.S. Department of Transportation (DOT) - Federal Motor Carrier Safety Administration (FMCSA) records, fraudulently obtained more than $400,000 from a various financial institutions, utilized another person’s personal identifying information to continue to illegally operate his auto hauling business after being ordered to shut down by the FMCSA for safety violations, and took numerous evasive steps to avoid paying personal income taxes to the IRS.

Michael Chaves, 39, owner of CAT Inc., was arraigned in U.S. District Court in Providence today before U.S. District Court Magistrate Judge Lincoln D. Almond on a ten-count information that charges him with falsification of records, aggravated identity theft, five-counts of bank fraud, two-counts of wire fraud, and tax evasion, announced United States Attorney Aaron L. Weisman, Special Agent in Charge of Internal Revenue Service Criminal Investigation Kristina O'Connell, and Special Agent in Charge of the Region II U.S. Department of Transportation Office of Inspector General Douglas Shoemaker.

It is alleged in court documents that Chaves attempted to influence and impede FMCSA investigations and administrative compliance reviews by falsifying U.S. DOT records. FMCSA inspections include a review of driver’s hours of service, maintenance and inspection, driver qualification, commercial drivers (CDL) license requirements, financial responsibilities, accidents, hazardous materials, and other safety and transportation records.

It is also alleged in court documents that Chaves operated various schemes to fraudulently obtain loans and funds from several banks and credit unions. It is alleged that Chaves fraudulently obtained loans from at least six different financial institutions totaling $332,000, by providing fraudulent earning statements, tax returns, motor vehicle purchase contracts, and Department of Motor Vehicle documents.

It is also alleged that Chaves employed a fraudulent check scheme by submitting 15 fraudulent checks he allegedly created to an automobile seller’s bank account from which he withdrew $64,453 and that he allegedly caused the fraudulent wire transfer between financial institutions of $72,864.28.

It is also alleged in court documents that Chaves received taxable income that he did not report to the Internal Revenue Service and that he took several steps to evade income taxes by, among other things, commingling business and personal expenses; using a check casher to divert third-party income; creating fraudulent third-party checks and cashing them using a check casher, rather than a bank; and maintaining approximately 15 different bank accounts using at least 5 different company names.

An information is merely an accusation. A defendant is presumed innocent unless and until proven guilty.

The case is being prosecuted by Assistant U.S. Attorney Dulce Donovan.

The matter was investigated by Internal Revenue Service Criminal Investigations and the U.S. Department of Transportation Office of Inspector General, with the assistance of the East Providence Police Department and the National Crime Insurance Bureau.

###

COUNCIL BLUFFS, Iowa - United States Attorney Marc Krickbaum announced on July 31, 2019, Kevin Lee Longo, age 46, was sentenced by United States District Court Judge Rebecca Goodgame Ebinger for Prohibited Person in Possession of a Firearm. Longo was sentenced to 46 months in prison, to be followed by a term of supervised release for three years.

On September 20, 2018, Council Bluffs Police responded to a call about a man who had pointed a gun and fired a round into the air. An investigation revealed the Defendant and a victim had an exchange regarding a former girlfriend of Longo’s, after which Longo pulled out a firearm and threatened the victim. Officers received permission to search Longo’s vehicle and located a pellet gun, marijuana, methamphetamine, crushed pills, pipes, a scale, bb’s, CO2 cartridges, and .380 ammunition. A subsequent search yielded a loaded black and silver Walther PK380 firearm Longo had hidden in a shed.

This case was investigated by the Council Bluffs Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone.

COUNCIL BLUFFS, Iowa - United States Attorney Marc Krickbaum announced on July 31, 2019, Andrew Steven Newport, age 31, was sentenced by United States District Court Judge Rebecca Goodgame Ebinger for Coercion and Enticement of a Minor. Newport was sentenced to 10 years in prison to be followed by a term of supervised release of 10 years.

In September 2018, Council Bluffs Police received a call from a concerned parent who had received messages through Facebook from Newport and thought Newport was communicating with her thirteen year old daughter. The mother gave the Facebook information to the Council Bluffs Police and an undercover officer continued to communicate with Newport. Newport asked who he believed to be the minor girl to meet him at the Council Bluffs Library and offered her $200 to have sex. Council Bluffs Police Officers met Newport at the arranged meeting place and arrested him. Newport had his phone, a pocket knife, airsoft gun with light mount, and a fraudulent FBI investigator card. Newport admitted he went to the library to meet a 13 year old girl for sex. Newport pleaded guilty to this charge in March 2019.

This case was investigated by the Council Bluffs Police Department. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.

Fort Myers, Florida – Tony Wilson, Jr. (31, Lehigh Acres) has pleaded guilty to conspiracy to distribute controlled substances, including cocaine base, fentanyl, heroin, and multiple firearms charges. Wilson faces a maximum penalty of life in federal prison. A sentencing date has not yet been set.

According to court documents, from 2013 through 2018, Wilson, known a/k/a “Big Homie” and “Caine,” was the head of a large-scale drug distribution ring operating in the Suncoast Estates neighborhood of North Fort Myers. The drug organization occupied several houses and trailer homes in the neighborhood, inside which dealers worked side-by-side to distribute controlled substances to customers.

During the investigation, law enforcement officers conducted dozens of undercover drug purchases from the dealers at the drug houses. They also executed multiple search warrants resulting in the seizure of tens of thousands of dollars in cash, multiple firearms, and large quantities of cocaine base, heroin, and fentanyl. Investigators believe that the organization often generated more than $10,000 per day in sales.

To date, eighteen members of the ring have been federally charged. Wilson is the fourteenth member to plead guilty.

The following is a list of individuals who have been charged in connection with this case:

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Lee County Sheriff’s Office. It is being prosecuted by Assistant United States Attorneys Michael Leeman and Trent Reichling.

Ocala, Florida – A federal jury today found Eric Pedro Valdez (39, Atlanta) guilty of conspiracy to distribute 500 grams or more of methamphetamine. He faces a minimum mandatory penalty of 10 years, and up to life, in federal prison. Valdez was indicted on October 11, 2017.

According to testimony and evidence presented at trial, between November 2015 and May 2016, Valdez conspired with others to distribute more than 70 kilograms of methamphetamine. On March 23, 2016, Valdez hand-delivered 4 kilograms of methamphetamine to two co-conspirators at a business in the Atlanta- area. The methamphetamine was intended for distribution in Sumter County.

This case was investigated by the Drug Enforcement Administration and the Sumter County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney William S. Hamilton.

Orlando, Florida – Bryan L. Brewer (44, Winter Park) has pleaded guilty to wire fraud, bank fraud, and money laundering. He faces a maximum penalty of 20 years in federal prison for the wire fraud count, up to 30 years’ imprisonment for the bank fraud count, and up to 10 years’ imprisonment for the money laundering count. Brewer has also agreed to pay restitution to his victims and a money judgment has been entered for more than $9 million.

According to court documents, Brewer engaged in two fraud schemes that resulted in him receiving more than $9 million. In one scheme, Brewer solicited an individual to invest in a company that manufactured paddleboards by the name of USBoardco (also known as WatersEdge). As part of the scheme, Brewer sent the victim copies of bank statements, tax returns, and other financial documents that had been falsified to inflate the sales, profits, income, and bank account balance for the company. Relying upon those and other misrepresentations, the victim invested over $1 million.

The second scheme related to real estate located in Seminole County. In 2012, an investor loaned more than $4 million to assist Brewer in the purchase of the property. In return, the investor obtained a mortgage on the property. A couple of years later, Brewer defrauded a bank into lending his companies $7.75 million that involved Brewer forging documents and using a fake email account that he had created for his investor. This scheme consisted of two parts. First, Brewer forged a letter that transferred the mortgage from his investor to an entity that Brewer controlled. Second, Brewer forged an estoppel letter from his investor that falsely promised that the investor would release his mortgage for $3.5 million. Brewer used a fake email account that he had established for the investor to send the forged estoppel letter and to pretend to be the investor in communications with the bank. Relying upon the forged letters and his other misrepresentations, the bank loaned one of Brewer’s companies $7.75 million. 

This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation. It was prosecuted by Assistant United States Attorney Roger B. Handberg.

LEXINGTON, Ky.— Dominique Jamar McCann, 24, of Lexington, was sentenced yesterday, to 80 months in federal prison, by United States District Judge Karen C. Caldwell, for possession with intent to distribute heroin and possession of a firearm in furtherance of a drug trafficking crime. 

In May 2018, officers with the Lexington Police Department, attempted to stop the vehicle being operated by Dominique McCann.  McCann fled from the police at a high rate of speed and collided with another vehicle.  McCann then fled on foot but was quickly apprehended.  McCann was in possession of approximately one ounce of heroin and a Glock handgun.  During his plea, McCann admitted to drug trafficking and possessing the firearm in furtherance of his drug trafficking.            

Under federal law, Middlebrooks must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the United States Probation Office for three years.

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Stuart Lowrey, Special Agent in Charge of the ATF Louisville Field Division; and Lawrence Weathers, Chief of the Lexington Police Department, jointly made the announcement.

The ATF and the Lexington Police Department conducted the investigation.  The United States was represented by Assistant United States Attorney Cynthia T. Rieker.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The PSN program was reinvigorated as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

BOSTON – An alleged member of the transnational criminal gang MS-13, or La Mara Salvatrucha, was arrested yesterday and charged in federal court in Boston with RICO conspiracy.

Manuel Adan Yanez Cruz, a/k/a “Rocky” or “Flaco,” 19, a Salvadoran national who had been residing in East Boston, was charged in an indictment unsealed yesterday with conspiracy to conduct enterprise affairs through a pattern of racketeering activity, commonly referred to as racketeering or RICO conspiracy. Yanez Cruz was in immigration custody at the time of his federal criminal arrest. Yanez Cruz was detained following an initial appearance in federal court in Boston yesterday. 

As alleged in the indictment, MS-13 is a violent street gang with members in Massachusetts and across the United States. Members of MS-13 and their associates commit and conspire to commit acts of violence to enhance the gang’s prestige, control and expand the gang’s territory, keep others in fear of the gang, and ensure compliance with the gang’s rules. Until at least October 2018, Yanez Cruz allegedly conspired with other MS-13 members and associates to engage in criminal activity to support the criminal organization.

More than 50 MS-13 members and associates in Massachusetts have been convicted of multiple acts of violence, including murder, attempted murder, robbery, and assault, as well as other criminal activity, including narcotics trafficking, firearms possession, witness tampering, and witness retaliation.  

The charge of RICO conspiracy provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000. The defendant also faces deportation upon completion of any sentence imposed. Sentences are imposed by a federal District Court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Boston Police Commissioner William Gross; Chelsea Police Chief Brian A. Kyes; Lynn Police Chief Michael Mageary; and Revere Police Chief James Guido made the announcement today.

The details contained in the indictment are allegations and the defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

John H. Durham, United States Attorney for the District of Connecticut, Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration for New England, Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, and Vernon Police Chief James Kenny today announced that a federal grand jury in Hartford returned an indictment yesterday charging three individuals with offenses related to the illegal acquisition and distribution of oxycodone obtained through fraudulent prescriptions.  JAYSON KEMP, 42, of East Windsor, ORAL WELBORN, 58, of Columbia, South Carolina, and MARIA PIRULLI, 42, of New Haven, were arrested this morning.

As alleged in the indictment, between 2012 and 2014, Kemp obtained blank prescription paper from employees of various Connecticut medical practices, including from Pirulli, who formerly resided in Newington and was employed as an assistant and bookkeeper at a medical practice in Hartford.  Kemp kept some of the prescription paper for himself and also sold some of the prescription paper, for thousands of dollars, to other individuals, including Welborn, who formerly resided in Hartford.  Kemp, Welborn and another co-conspirator then recruited “runners,” who typically were individuals who received Medicaid and Medicare benefits, to fill fraudulent prescriptions at various pharmacies.  Kemp, Welborn and the other coconspirator filled out each prescription with the runner’s identifying information and forged a doctor’s signature on the prescription.  The runner then filled the fraudulent prescription at a pharmacy, generally using their Medicaid or Medicare benefits, and provided the pills to Kemp, Welborn and their co-conspirator in exchange for approximately $50 per prescription.  Kemp, Welborn and their co-conspirator then sold the pills to individuals suffering from opioid addictions.

It is alleged that Kemp, Welborn and their co-conspirator were responsible for filling at least 150 fraudulent prescriptions for oxycodone, almost all of which were for 150 30-mg oxycodone pills.

The indictment charges Kemp with one count of conspiracy to distribute narcotics, which carries a maximum term of imprisonment of 20 years; one count of conspiracy to commit health care fraud, which carries a maximum term of imprisonment of 10 years; and two counts of health care fraud, which carries a maximum term of imprisonment of 10 years on each count.

Welborn is charged with one count of conspiracy to distribute narcotics and one count of conspiracy to commit health care fraud, and Pirulli is charged with one count of conspiracy to distribute narcotics.

U.S. Attorney Durham stressed that an indictment is not evidence of guilt.  Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.

This matter is being investigated by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad, the U.S. Department of Health and Human Services Office of the Inspector General, and the Vernon Police Department.

This case is being prosecuted by Assistant U.S. Attorney John T. Pierpont, Jr.

KANSAS CITY, Mo. – A Warrensburg, Missouri, man was sentenced in federal court today for his role in a conspiracy to distribute methamphetamine.

Stacy A. Lyman, 40, of Warrensburg, was sentenced by U.S. Chief District Judge Greg Kays to 17 years and one month in federal prison without parole. Lyman was sentenced as an armed career criminal due to his prior felony convictions.

On June 8, 2018, Lyman pleaded guilty to his role in the drug-trafficking conspiracy and to being a felon in possession of a firearm. Lyman admitted that he participated in a conspiracy to distribute methamphetamine that lasted approximately from August 2014 to March 2016.

Co-defendant Davita Ann Kelly, 39, of Warrensburg, was sentenced on Oct. 9, 2018, to 18 years and nine months in federal prison without parole. Co-defendant Matthew Waylon Newman, 34, of Warrensburg, was sentenced on May 31, 2018, to 17 years and seven months in federal prison without parole.

According to court documents, Lyman was Kelly’s source for methamphetamine. Kelly then distributed methamphetamine to others, including an undercover law enforcement officer. Lyman distributed approximately 373 grams of methamphetamine between Dec. 7, 2015, and Jan. 19, 2016.

The investigation began after law enforcement officers executed a search warrant at Kelly’s residence and seized methamphetamine, hydromorphone pills, marijuana, heroin and drug paraphernalia. Warrensburg police officers also executed a search warrant at a storage facility rented by Kelly and seized several firearms from the unit, including a .38-caliber revolver, a 9mm pistol and two .22-caliber rifles.

On April 29, 2016, officers executed a search warrant at Lyman’s residence and seized an H. Koon, Inc., .410-gauge shotgun and 21.61 grams of methamphetamine hidden in a can in his bedroom. Officers also seized $7,000 that was found inside the pocket of a coat in Lyman’s Pontiac G6.

Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Lyman has been previously convicted of six felony drug offenses and two misdemeanor drug-related offenses in four separate cases. He also has a prior felony conviction for burglary and a misdemeanor conviction for disorderly conduct. Each time he was on supervision for a felony offense, his probation/parole was revoked as a result, in part, of the commission of a new felony offense. In each instance, he had multiple supervision violations (and, in all but one case, multiple conduct violations while in custody).

This case was prosecuted by Assistant U.S. Attorney Alison D. Dunning. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Johnson County, Mo., Sheriff’s Department and the Warrensburg, Mo., Police Department.

Project Safe Neighborhoods
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Missouri. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone. Project Safe Neighborhoods is an evidence-based program that identifies the most pressing violent crime problems in the community and develops comprehensive solutions to address them. As part of this strategy, Project Safe Neighborhoods focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

BOSTON – A law enforcement officer from Texas who was charged in federal court in Worcester earlier this week with cyberstalking, is now also charged with sexual exploitation of a minor.

Pasquale T. Salas, 25, a/k/a Gino, a deputy sheriff with the Matagorda County Sheriff’s Office, was charged with one count of sexual exploitation of a minor. Salas was arrested in Bay City, Texas, on Wednesday, July 31, 2019, and charged with cyberstalking a girl he met while playing the videogame Minecraft. A detention hearing is scheduled for Monday, Aug. 5, 2019, in federal court in Houston, Texas. He will appear in federal court in Worcester at a later date.

According to the charging document, Salas met the victim through an online video game website in 2014, when the minor was 12 years old. Salas and the girl communicated on a private chat room and then moved those communications to various other platforms, including text messaging, Skype and Snapchat. Salas repeatedly solicited the minor to transmit sexually explicit images and videos of herself.   

Beginning as early as 2016, it is alleged that Salas intimidated the victim into maintaining contact with him and sending additional sexually explicit material by threatening that he would send the minor’s sexually explicit images and videos to her family and her friends. As recently as May 2019, when the victim attempted to terminate contact with Salas, he repeatedly sent threatening communications to the victim, using web-based applications to disguise the source of the communications.

It is alleged that at the time of Salas’ arrest, he was in possession of a smartphone, which contained at least one video, transmitted via social media, of the minor performing sexually explicit acts that Salas had coerced her to perform.  

Members of the public who have questions, concerns, or information about this case should contact the U.S. Attorney’s Office in Boston at 617-748-3274. 

The charge of sexual exploitation of a minor carries a mandatory minimum sentence of 15 years and up to 30 in prison, five years of supervised release and a fine of up to $250,000. The charge of cyberstalking carries a sentence of up to five years in prison, up to three years 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; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Douglas Police Chief Nick Miglionico made the announcement today. Valuable assistance was provided by the United States Attorney’s Office for the Southern District of Texas, the Federal Bureau of Investigation, Houston Field Office, the Matagorda (Texas) County Sheriff’s Office and the Worcester Police Department. Assistant U.S. Attorney Kristen Noto from Lelling’s Worcester Branch Office is prosecuting the case. 

 The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.

The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

BOSTON – A Worcester man pleaded guilty today in federal court in Worcester to Social Security fraud and aggravated identity theft.

Jose Lopez Rosado, 51, pleaded guilty to one count of false representation of a Social Security number and one count of aggravated identity theft. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for Oct. 31, 2019. Lopez Rosado was arrested and charged in a July 2018 federal law enforcement sweep of 25 individuals accused of document and benefit fraud.

According to court documents, the defendant escaped from prison in Puerto Rico in 1994 while serving a 40-year sentence for second degree murder. He is currently in state custody on unrelated charges. His true identity was not known until he was arrested in July 2018.

Dubbed “Double Trouble,” the July 2018 investigation was conducted by Homeland Security Investigation’s Document and Benefit Fraud Task Force (DBFTF), comprised of local, state and federal agencies with expertise in detecting, deterring and disrupting organizations and individuals involved in various types of document, identity and benefit fraud schemes. 

On Feb. 9, 2016, Lopez Rosado applied for a duplicate Massachusetts driver’s license using the name and Social Security number of another U.S. citizen. Based on the application, Lopez Rosado was issued a duplicate driver’s license in the name of the other U.S. citizen. Lopez Rosado also used that name and Social Security number to receive MassHealth benefits.

The charge of false representation of a Social Security number provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000.  The charge of aggravated identity theft provides for a mandatory sentence of two years in prison, one year of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.  

United States Attorney Andrew E. Lelling; Jason Molina, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General, Northeast Regional Office; Michael Mikulka, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Office of Investigations; William B. Gannon, Special Agent in Charge of the U.S. Department of State, Diplomatic Security Service, Boston Field Office; Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; and Massachusetts State Auditor Suzanne M. Bump made the announcement. Special Assistant U.S. Attorney Karen Burzycki of Lelling’s Major Crimes Unit is prosecuting the case. 

SAN JUAN, Puerto Rico – On July 31, 2019, a Federal Grand Jury in the District of Puerto Rico returned an indictment charging Dr. Antonio REYES-VIZCARRONDO with one count of conspiracy to commit health care fraud and one count of health care fraud. The defendant was arrested today, announced U.S. Attorney Rosa Emilia Rodríguez-Vélez of the District of Puerto Rico. The Office of Inspector General for the United States Department of Health and Human Services (HHS-OIG) and the Federal Bureau of Investigation (FBI) are in charge of the investigation.

According to the indictment, from in or about 2008 to through in or about 2015, Dr. Antonio REYES-VIZCARRONDO enriched himself by submitting or causing to be submitted false and fraudulent claims to health care benefits programs, including Medicare and Medicaid.  The claims submitted by REYES-VIZCARRONDO were for services using procedural codes that he was aware he could not use pursuant to the contractual terms of his employment, services rendered that were, in fact, rendered by other physicians. Defendant concealed the submission of these false and fraudulent claims to health care benefit plans and the receipt and transfer of the resulting fraudulent proceeds, and diverted these fraudulently obtained proceeds for his personal use and benefit. 

Dr. REYES-VIZCARRONDO submitted and/or caused to be submitted to Medicare and Medicaid a total of 8,159 claims using prohibited medical codes, including prohibited codes for services not rendered, totaling $882,608.91. Dr. REYES-VIZCARRONDO is facing a health care fraud forfeiture allegation of $601,783.47, which constitutes the amount of money Medicare and Medicaid paid the defendant.

“The submission of false claims to health care benefit programs is unacceptable and a waste of taxpayer funds,” said U.S. Attorney Rosa E. Rodriguez- Vélez. “Today’s arrest shows the Department of Justice and its law enforcement partners’ firm commitment to protect public funds and to safeguard the well-being of Medicare and Medicaid beneficiaries.”

Pursuant to the charges, the defendant faces possible sentences of up to 10 years for the health care fraud and conspiracy to commit health care fraud. This case was investigated by HHS-OIG and the FBI, and is being prosecuted by Assistant U.S. Attorney Scott Anderson.

Indictments contain only charges and are not evidence of guilt.  The defendant is presumed innocent unless and until proven guilty.