NEWARK, N.J. – The owner of a scrap metal business in Morris County, New Jersey, today admitted that he underreported his income on his personal tax returns, avoiding paying more than $175,000 in taxes, U.S. Attorney Craig Carpenito announced.

Anthony Curto Jr., 51, of Succasunna, New Jersey, pleaded guilty before U.S. District Judge Katharine S. Hayden in Newark federal court to an information charging him with one count of making and subscribing a false tax return.

According to documents filed in the case and statements made in court:

Curto owned and operated Total Metal Transport, a business headquartered in Succasunna that purchased and transported scrap metal and other materials. Curto admitted that for tax years 2012 and 2013, he underreported and failed to report the gross receipts from Total Metal Transport, which he operated on a cash-only basis, on his personal tax return, avoiding more than $175,000 in taxes.

The count of making and subscribing a false tax return carries a maximum potential penalty of three years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for March 24, 2020.

U.S. Attorney Carpenito credited special agents of the IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorney Bernard J. Cooney of the Health Care & Government Fraud Unit.

WICHITA, KAN. - A Wichita man was sentenced today to 71 months in federal prison for a robbery in which more than 75 cell phones were stolen from a Sprint store, U.S. Attorney Stephen McAllister said.

Xavier Lopez, 26, Wichita, Kan., pleaded guilty to one count of robbery. In his plea, he admitted he served as a lookout while co-defendant Camarin McPherson, 26, Wichita, Kan., robbed a Sprint store at 530 S. West St. in Wichita. McPherson brandished a firearm and hog-tied a clerk with zip ties before taking 54 Apple iPhones and 24 Samsung Galaxy phones with a total estimated value of more than $60,000.

The robbers were arrested after a chase ended in a wreck at Kellogg and Meridian.

McPherson was sentenced last month to 162 months in federal prison. McAllister commended the Wichita Police Department, the FBI and Assistant U.S. Attorney Matt Treaster for their work on the case.

           WASHINGTON – Ronnie Simpkins, 67, a former government contract officer with the General Services Administration (GSA), pled guilty today to a federal bribery charge stemming from a scheme in which he accepted bribes from government contractors from August 2011 to August 2017.

           The announcement was made by U.S. Attorney Jessie K. Liu, Timothy M. Dunham, Special Agent in Charge, FBI Washington Field Office, Criminal Division, and Eric D. Radwick, Acting Special Agent in Charge, National Capital Region, Office of Investigations.

           Simpkins, of Lusby, Md., pled guilty in the U.S. District Court for the District of Columbia. The charge carries a statutory maximum of 15 years in prison and potential financial penalties. Under federal sentencing guidelines, Simpkins faces a likely range of 18 to 24 months in prison and a fine of up to $75,000. He also has agreed to pay approximately $12,108 in a forfeiture money judgement. The Honorable Trevor N. McFadden scheduled sentencing for March 18, 2020.

           According to the government’s evidence, from 1989 until May 2019, Simpkins was employed by the General Services Administration (“GSA”) as a Contract Specialist, informally known as a Contracting Officer, in procurement related positions, and between August 2013 and May 2019, he worked as a Contract Specialist assigned to GSA’s headquarters in Washington, D.C. As a Contract Specialist, Simpkins was deemed to be a public official as defined by 18 U.S.C. Section 201(a)(1), and as a senior Contract Specialist.

           From February 2010 to August 2017, Simpkins was assigned to a sub-division of the Federal Acquisition Service, which oversees the administration of GSA Schedule 70 contracts. “Schedules” are long-term government-wide contracts with commercial companies that provide access to commercial products and services at fair and reasonable prices to the government. “Schedule 70 contracts” provide IT solutions, services, and software to federal, state, and local customer agencies. GSA pre-negotiates the vendors’ pricing, terms, and conditions, to streamline the acquisition process while at the same time providing the best value to the end user agency.

           Company A was a corporation owned by Person 1 and Person 2 and was located in Northern Virginia. At times during the relevant time-period, the company’s website included a link entitled: “GSA Schedule,” which emphasized for prospective customers that the company was awarded a GSA Scheduled contract. Advertising its GSA Schedule status was seen as benefiting Company A when it sought contracting opportunities with other federal agencies, as those agencies may have considered Company A’s GSA status and GSA pricing in fashioning their own contracts.

           To maintain a GSA Schedule contract, Company A was required to have annual sales in excess of $25,000. GSA Schedule contracts are subject to cancellation if sales levels are not met. The annual sales requirement can be waived by the GSA Administrative Contracting Officer (“ACO”) for good cause after communicating with the contract vendor. If the contract vendor can demonstrate that it has potential, pending or unreported sales, the ACO normally will allow the contract to continue and withdraw the contract cancellation. In addition, contractors, such as Company A, are required to pay an Industrial Funding Fee (“IFF”) of 0.75% of all Schedule sales. The IFF is a fee to cover GSA’s cost of operating the Federal Supply Schedules program.

           Simpkins administered and oversaw Company A’s GSA contracts for years, beginning on or about June 3, 2009, while Company A held a GSA contract, and continuing through August 2017 when GSA awarded Company A with a replacement contract. Simpkins’ duties included executing contract modifications and ensuring contract compliance.  Company A maintained its GSA Schedule contract despite reporting no sales and not paying any IFFs since 2006.

           Beginning in or around August 2011, and continuing through in or around August 2017, Simpkins received and agreed to receive from Person 1 and Person 2 things of value, including cash, meals, and furniture, in return for, when the opportunity arose, using his official position at GSA to help Company A through the performance of official action, aiding in the commission of a fraud on the United States, and acting or failing to act in violation of his official duty.  

           Simpkins met Person 1 and/or Person 2 over a dozen times at various restaurants in Northern Virginia, at Person 1 and Person 2’s residence, and other places, often outside of normal GSA business hours and on weekends.  As Simpkins admitted to law enforcement, Person 1 and Person 2 paid for meals during their meetings at restaurants.  During some of their meetings (Simpkins estimated 15 times), Simpkins accepted cash payments totaling approximately “thousands of dollars into the teens.” After receiving the cash, Simpkins often deposited some or all of it into his Navy Federal Credit Union account. During the relevant period, Simpkins deposited $9,750.00 in cash into that account, consisting of the cash payments he accepted from Person 1 and Person 2.  In July of 2016, Simpkins also accepted furniture paid for by Person 1 and/or Person 2, valued at $2,358.91. Between the cash payments and furniture, not including meals paid for by Person 1 and/or Person 2, Simpkins admits to accepting at least $12,108.91 in things of value from Person 1 and Person 2.

           In exchange for these things of value, oftentimes soon before or after the meetings with Person 1 and Person 2, Simpkins took official action and/or provided improper assistance to benefit Company A’s GSA Schedule contracts.  Specifically, Simpkins recommended and signed Company A’s contracts with GSA, even though Company A failed to meet program requirements; willfully neglected to notify GSA, as he was obligated to do, when Company A’s contract under his supervision no longer met program requirements; and advised Company A about ways to avoid contract cancellation despite failing to meet GSA’s program requirements.

           In announcing the plea, U.S. Attorney Liu, Special Agent in Charge Dunham, and Acting Special Agent in Charge Radwick, commended the work performed by those who investigated the case from the FBI’s Washington Field Office and GSA Office of Inspector General. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Amanda Rohde and Quiana Dunn-Gordon, former Assistant U.S. Attorney Denise Simmonds, and Assistant U.S. Attorney Virginia Cheatham, who is prosecuting the case.

Tampa, Florida – Two pharmacists, a physician, and two marketers have been sentenced for conspiring to pay and receive health care kickbacks for prescriptions for compounded creams billed to TRICARE.

On December 17, 2019, U.S. District Judge Mary S. Scriven sentenced Dr. Anthony Baldizzi (56, Treasure Island) to one year and a day in federal prison for his role in the conspiracy. Baldizzi was ordered to forfeit $100,000, including a BMW that he had received as a kickback. On March 7, 2018, Baldizzi had pleaded guilty to conspiracy to commit healthcare fraud and receive kickbacks, and one count of receiving healthcare kickbacks. He will be surrendering his license to practice medicine in January 2020.

On October 18, 2019, U.S. District Judge Elizabeth A. Kovachevich sentenced pharmacist Carlos Mazariegos (42, Palm Harbor) to one year and a day in federal prison for his role in the conspiracy. On April 10, 2017, Mazariegos had pleaded guilty to conspiracy to commit health care fraud. He is no longer a licensed pharmacist. 

On November 6, 2019, U.S. District Judge Susan C. Bucklew sentenced pharmacist Benjamin Nundy (42, Ruskin) to a five-year term of probation for his role in the conspiracy. On July 13, 2017, Nundy had pleaded guilty to conspiracy to commit health care fraud. He is no longer a licensed pharmacist. 

Mazariegos and Nundy paid $6,404,793.24 in restitution to the United States and forfeited $6,404,793.24 in cash.

On December 18, 2019, U.S. District Judge Mary S. Scriven sentenced the owners of the marketing firm Centurion Compounding, Inc., Frank V. Monte and Kimberley S. Anderson, to 24 months and 18 months in federal prison, respectively. Monte and Anderson also forfeited more than $3 million in property and luxury vehicles, including a Lamborghini, a Porsche, a Ferrari, a Ford GT racing car, a McLaren, and a Mercedes.

According to court documents, in 2014 and 2015, Centurion, a marketing firm located in Pasco County, was operated by Monte and Anderson. Centurion employed sales representatives to market compounded prescription medications—specifically, creams for pain and scars—to beneficiaries of healthcare plans, especially TRICARE. These creams typically ranged in price from $900 to $21,000 for a one-month supply. Centurion representatives marketed the creams to individuals living and working at MacDill Air Force Base in Tampa.

In May 2014, Centurion entered into an exclusive, illegal kickback arrangement with Pinellas County-based LifeCare pharmacy, whereby Centurion and LifeCare agreed to share equally in the profits from the claims paid by health benefit programs, including TRICARE, for compounded medications prescribed to beneficiaries. Baldizzi agreed with Monte, Anderson, and the owners of LifeCare pharmacy (Mazariegos and Nundy), that, in exchange for kickbacks, he would write prescriptions for compounded creams marketed by Centurion to TRICARE beneficiaries. Between May and November 2014, LifeCare billed health insurers, including TRICARE, more than $12.4 million for compounded cream prescriptions written by Baldizzi and marketed by Centurion. LifeCare realized a profit of more than $10 million, which it shared with Baldizzi, Monte, and Anderson.

Even after LifeCare closed and Baldizzi withdrew from the conspiracy, Centurion transferred the existing refills from Baldizzi’s prescriptions to a new pharmacy, which filled the prescriptions and billed TRICARE. In all, Centurion caused TRICARE to be billed more than $50 million for compounded creams prescribed to patients that it had recruited. Following the execution of a federal search warrant in February 2015, Centurion ceased operations, and the United States facilitated the repayment or reversal of more than $48 million in claims to TRICARE.

This case was investigated by the Federal Bureau of Investigation, the U.S. Department of Health and Human Services Office of the Inspector General, the Defense Criminal Investigation Service, and the U.S. Air Force Office of Special Investigations, with assistance from the U.S. Army Criminal Investigation Command, the Naval Criminal Investigative Service, and the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorneys Mandy Riedel and Colin McDonell, with assistance from Assistant United States Attorneys Suzanne Nebesky and Holly Gershow.

Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that Dale Johnson, 57, of Anchorage, has been charged with one count of conspiracy for his role in a scheme to defraud the U.S. Department of Veterans Affairs (VA) into issuing Service-Disabled Veteran-Owned Small Business (SDVOSB) government “set-aside” contracts to unqualified private contractors.  A plea agreement has also been filed in this case, and Johnson is currently awaiting his Change of Plea hearing to be scheduled.

Johnson’s co-conspirators, Richard Vaughan, 72, and Donald Garner, 47, have been charged in a separate 31-count indictment with bribery and wire fraud charges in connection with the scheme.

Vaughan was a VA contract officer representative and was responsible for awarding and managing numerous contracts awarded by the VA, including certain SDVOSB “set-aside” contracts.  Johnson was the owner of ADALECO General LLC, and Garner was the owner of Veteran Ability, which were both government contractors that provided various services to the U.S. government, including the VA in Anchorage. 

The United States Small Business Administration (SBA) is an independent agency of the federal government responsible for aiding, counseling, assisting and protecting the interests of small business concerns.  The SBA and VA administered a program to award SDVOSB “set-aside” contracts, which could only be awarded to small business concerns owned and controlled by qualified Service-Disabled Veterans (SDVs).

In October 2014, ADALECO had an SDVOSB certification, while Veteran Ability did not.  According to court documents, Johnson falsely certified to the VA that his company ADALECO would perform a majority of the work on a snow removal contract awarded in October 2014, which was a “set-aside” contract for a certified SDVOSB contractor.  The investigation revealed, however, that it was actually Garner and Veteran Ability, along with other non-SDVOSB companies, who performed 100% of the work under the snow removal contract.  Johnson received 5-10% of every payment under the contract as a “kickback” for allowing Garner to use ADALECO’s SDVOSB certification, which amounted to approximately $54,302.  Johnson also made other misrepresentations to the VA in furtherance of the fraudulent scheme. 

The Federal Bureau of Investigation (FBI), the U.S. Department of Veterans Affairs Office of the Inspector General, Small Business Administration Office of the Inspector General, and General Services Administration Office of the Inspector General, conducted the investigation leading to the charges in this case.  This case is being prosecuted by Assistant U.S. Attorneys Ryan D. Tansey and Kyle Reardon.

The charges against Johnson are merely allegations, and he is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

ALBANY, NEW YORK – Richard J. Sherwood, age 59, of Guilderland, New York, was sentenced today to 54 months in federal prison for conspiring to steal approximately $11.8 million from estates for which he served as an attorney and fiduciary. 

The announcement was made by:

• United States Attorney Grant C. Jaquith;
• New York Attorney General Letitia James;
• James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and
• Jonathan D. Larsen, Special Agent in Charge of the New York Field Office of IRS-Criminal Investigation.

Senior United States District Judge Lawrence E. Kahn also ordered Sherwood to serve a 1-year term of supervised release, to pay $5,560,505 in restitution, and to forfeit the following as proceeds of his crimes: 12 bank and brokerage accounts, and a house overlooking Galway Lake in Saratoga County.

In a related case prosecuted by the New York Attorney General’s Office, Sherwood pled guilty, in Albany County Court, to grand larceny in the first degree, and is scheduled to be sentenced this afternoon to a concurrent term of 3 to 10 years in state prison.

Sherwood’s co-conspirator, Thomas K. Lagan of Cooperstown, New York, was sentenced on December 11 to 78 months in federal prison, to run concurrent with a state sentence of 4 to 12 years in prison.

United States Attorney Grant C. Jaquith stated: “Our society depends on attorneys to be honest and ethical.  Richard Sherwood desecrated that trust when he stole millions of dollars from clients who relied on him to transfer their money to churches and other beneficiaries after they died.  His seven-year criminal conspiracy is all the more disturbing because Sherwood was also Guilderland Town Justice at the time.  Today’s sentence punishes Sherwood for his despicable conduct and requires him to repay every last dime that he stole.”

FBI Special Agent in Charge James N. Hendricks stated: “Richard Sherwood stole millions of dollars from estates meant for charities, churches, and civic organizations, while at the same time serving as an elected judge. Today’s sentencing affirms that the FBI has zero tolerance for attorneys who exploit their clients, and we will continue to work with our partners to make sure these criminals are brought to face justice.”

IRS-CI Special Agent in Charge Jonathan D. Larsen stated: “As demonstrated by the sentencing of co-conspirator Thomas Lagan last week and now Mr. Sherwood’s sentence today, IRS-Criminal Investigation continues to make tax law enforcement a key priority. Protecting victims is also one of our most important objectives. The sentences imposed in these cases illustrate the consequences of lying and stealing from the federal government and innocent taxpayers. They also underscore the government’s commitment to prosecuting tax fraud. Today’s sentence should serve as a warning and deterrent to others.”

Sherwood practiced primarily in the area of trusts and estates.  Starting in about 2006, he provided estate planning and related legal services to Capital Region philanthropists Warren and Pauline Bruggeman, and to Pauline’s sister, Anne Urban, all of Niskayuna, New York.  Sherwood was advising the Bruggemans when, in 2006, they signed wills directing that all their assets go to charities, churches and civic organizations, aside from bequests to Anne Urban and Julia Rentz, Pauline’s other sister.

Warren Bruggeman died in April 2009, and Pauline died in August 2011.  At the time of her death, Pauline had personal and trust assets valued at approximately $20 million.

In pleading guilty to charges of money laundering conspiracy and filing a false tax return, Sherwood admitted that after Pauline Bruggeman’s death, he and Lagan conspired to steal millions of dollars from her estate as well as from Anne Urban, who died in 2013.  Their conspiracy came to include the diversion and transfer to themselves of several million dollars belonging to Julia Rentz, a resident of Ohio, who was suffering from dementia at the time of the thefts and died in 2013. 

Sherwood admitted that he and Lagan stole $11,831,563, and that nearly $3.6 million was transferred outright to him, with an additional $1.96 million transferred to an entity, Empire Capital Trust, LLC, that he and Lagan controlled.  Sherwood also admitted that he transferred to himself the Bruggeman family camp located on Galway Lake. 

Sherwood admitted that he and Lagan induced Anne Urban to create a trust whose purpose, unknown to her, was to allow him and Lagan to transfer Bruggeman/Urban assets to themselves.  Sherwood and Lagan also set up more than 10 bank accounts, and created a limited liability company (Empire Capital Trust, LLC), to first conceal the theft of the money and then transfer the money to themselves. 

Sherwood pled guilty to filing false federal tax returns in 2013 and 2015.  These returns were false because he did not report, as other income, about $4.7 million that he received from the fraudulent scheme. 

Sherwood served as Guilderland Town Justice from 2014 until his arrest on February 23, 2018.  He resigned his position on March 5, 2018. He was disbarred on September 13, 2018.

The federal case was investigated by the FBI and IRS-CI, and was prosecuted by Assistant U.S. Attorney Michael Barnett.  Assistant U.S. Attorneys Adam J. Katz and Alicia G. Suarez prosecuted the asset forfeiture aspects of the case.

The state case was prosecuted by Assistant Attorneys General Christopher Baynes and Matthew Peluso of the Attorney General’s Public Integrity Bureau, under the supervision of Bureau Chief Travis Hill.  The Criminal Justice Division is led by Chief Deputy Attorney General Jose Maldonado.  The investigation was led by Investigator Mark Spencer of the Attorney General’s Investigations Bureau, under the supervision of Deputy Chief Investigator Antoine Karam.  The Investigations Bureau is led by Acting Chief John Reidy.  Financial analysis was provided by Principal Auditor Investigator Meaghan Scotellaro of the Forensic Audit Section under the supervision of Deputy Chief Auditor Sandy Bizzarro and Chief Auditor Edward J. Keegan, Jr.  Senior Analyst Sara Pogorzelski assisted in the investigation.

ALBANY, NEW YORK – John R. Paeglow III, age 63, of Troy, New York, was arraigned today on 10 counts of wire fraud, and one count of embezzling funds from an employee benefit plan. 

The announcement was made by United States Attorney Grant C. Jaquith and Michael C. Mikulka, Special Agent in Charge, New York Region, United States Department of Labor, Office of Inspector General (DOL-OIG).

Paeglow was arraigned today in Albany before United States Magistrate Judge Christian F. Hummel, and released on conditions pending trial before Senior United States District Judge Frederick J. Scullin, Jr.

According to the indictment, Paeglow fraudulently solicited and received over $400,000 on behalf of his now-closed Castleton, New York-based book printing business Integrated Book Technology, Inc./Hamilton Printing (“IBT/Hamilton”), by orchestrating the submission of fraudulent invoices and forged shipping documents to a New Jersey-based commercial finance company.  Paeglow obtained funding based on his false promises that he expected payment for the sales of books that, in fact, had not been sold or shipped.

Paeglow is also charged with embezzling employee contributions to his company’s health plan.

The charges in the indictment are merely accusations.  The defendant is presumed innocent unless and until proven guilty.

The charges filed against Paeglow carry a maximum sentence of 20 years in prison, a fine of up to the greater of $250,000 or twice the pecuniary gain to the defendant or the loss to any victim, and a term of supervised release of up to 3 years.  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.

This case is being jointly investigated by the U.S. DOL-OIG and the New York State Police Financial Crimes Unit, and is being prosecuted by Assistant U.S. Attorney Emmet J. O’Hanlon.

INDIANAPOLIS – United States Attorney Josh J. Minkler announced today that two drug-trafficking organizations with fifteen total members were indicted by a grand jury for charges of drug-trafficking, unlawful use of a communication facility, and being a felon in possession of a firearm. The cases were investigated and prosecuted by the Organized Crime Drug Enforcement Task Force (OCDETF).

"If you choose to make a living by selling drugs, promoting violence, and illegally possessing firearms in furtherance of those crimes, we will find you, and you will be prosecuted, federally" said Minkler. "The U.S. Attorney’s Office is committed to keeping our neighborhoods safe by removing violent crime organizations and individuals from our communities."

According to the superseding indictment, Defendants Tavares Hutcherson, Stefantatos, Mathews, Roshel, Jones, Eyre, Cox, and Carson conspired to distribute methamphetamine. Jones supplied methamphetamine to Hutcherson for re-distribution. Stefanatos acted as a middle-man for Jones and supplied drugs to Hutcherson. Hutcherson and Mathews distributed methamphetamine to each other as well as others in the Terre Haute area, including Cox, Roshel, and Carson. Eyre assisted Hutcherson in distributing drugs and collecting drug proceeds. The superseding indictment further alleges that Hutcherson, Mathews, and Jones possessed firearms

to protect themselves, their drugs, and their drug proceeds. With respect to Grindle, the superseding indictment states that Grindle took over 200 grams of methamphetamine and firearms from Mathews, prompting Mathews to enlist the help of co-conspirators to attempt to recover the drugs and guns.

According to a second superseding indictment arising out of the same investigation, Defendant James Briscoe, Page, Clephane, Bays, Pugh, and Bell conspired to distribute methamphetamine and marijuana. Pugh arranged for methamphetamine to be shipped from California to Indiana for re-distribution by Briscoe and Bell. In addition, Briscoe obtained methamphetamine from Page who operated out of Anderson, Indiana. Briscoe in turn supplied methamphetamine and marijuana to Bell, Clephane, Bays, and others. The superseding indictment also alleges that Briscoe, Page, Clephane, and Pugh possessed firearms, including a Hi-Point, 9mm pistol, a Mossberg, 12 gauge shotgun, a Micro Draco, 7.62 caliber pistol, a LLAMA, .45 caliber pistol, and an AK-style, short barrel rifle.

The indicted defendants, their ages, and residences are as follows:

Tavares Hutcherson, 42, Terre Haute, Ind.

Timothy Stefanatos, 40, Indianapolis, Ind.

Brock Mathews, 29, Terre Haute, Ind.

Deena Roshel, 52, Terre Haute, Ind.

Kyra Grindle, 19, Terre Haute, Ind.

Brad W. Jones, 35, Indianapolis, Ind.

Travis Eyre, 30, Terre Haute, Ind.

Robert Cox, 33, Terre Haute, Ind.

Zachary Carson, 25, Terre Haute, Ind.

James Briscoe, 36, Muncie, Ind.

Damarus Page, 37, Anderson, Ind.

Bradley Clephane, 35, Gosport, Spencer, Ind.

Christopher Bays, 33, Brazil, Ind.

Jamar Pugh, 26, Muncie, Ind.

James Bell, 40, Muncie, Ind.

The lead investigative agencies were the Drug Enforcement Administration, U.S. Postal Inspection Service, Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Federal Bureau of Investigation. Other agencies that assisted in the investigation include the Indiana State Police, Indianapolis Metropolitan Police Department, Terre Haute Police Department, Muncie Police Department, Anderson Police Department, Madison County Drug Task Force, Vigo County Sheriff’s Department, Vigo County Drug Task Force, Clay County Sheriff’s Department, and the Owen County Sherriff’s Department.

"The individuals arrested during this complex investigation were responsible for transporting large quantities of methamphetamine into the Wabash Valley area," said DEA Assistant Special Agent in Charge Michael Gannon. "Throughout the course of this investigation, agents seized approximately 23 pounds of methamphetamine, and 13

firearms. DEA commends the outstanding work that was done by the Terre Haute Police Department, the Indiana State Police, the Vigo County Drug Task Force, the Federal Bureau of Investigation and the United States Attorney’s Office. This violent drug trafficking organization showed complete disregard for the fine citizens of Terre Haute and utilized fear and intimidation to aid their criminal activity. All drug dealers need to take notice that the newly formed DEA Terre Haute Office along with our law enforcement partners will utilize all available resources to take investigations to the highest levels and steam roll drug dealers who are peddling garbage into our communities."

"The United States Postal Inspection Service is committed to the protection of our nation’s mail system, and to ridding the criminals’ use of the mail for the transportation of illegal drugs. This case is a great example of how working together with our law enforcement partners, we are able to make progress in getting the drugs off the streets in Indiana and California. The arrest and indictment of these defendants should serve as a warning to others who seek to commit drug-trafficking through the U.S. Postal Service." said Inspector in Charge Edward Gallashaw of the Detroit Division, U.S. Postal Inspection Service.

Indiana State Police Superintendent Doug Carter commented, "I am extremely proud of our participation in the Organized Crime Drug Enforcement Task Force." Carter continued, "The hard work of our assigned investigators, in collaboration with other member representatives, speaks to the dedication of state, county, local and federal law enforcement partners who work daily to make Indiana communities safer for everyone to enjoy."

"Too often, violence in our city is connected to the trafficking of illegal narcotics. These bad actors are willing to profit from crime and violence in our neighborhoods, and working closely with law enforcement partners to remove them from our community is crucial to making Indianapolis a safer place for all to call home," said IMPD Chief Bryan Roach.

"We are always eager to partner with federal law enforcement in an effort to aggressively investigate the predatory practices of those who seek to exploit the weak and drug-addicted for their own personal financial gain," said Sergeant Chad Boynton, Anderson Police Department K9 Supervisor and Madison County Drug Task Force Supervisor. "This investigation has undoubtedly produced a positive impact within Central Indiana, having resulted in the arrest of several significant drug traffickers."

According to Assistant United States Attorney M. Kendra Klump, who is prosecuting these cases for the government, defendants, if convicted, each face up to life in prison, except for Grindle, who faces up to 40 years in prison.

An Indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.

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 those who engage in organized drug and violent crime.  See United States Attorney's Office, Southern District of Indiana Strategic Plan 2.1.

NEWPORT NEWS, Va. – A former Hampton police detective pleaded guilty yesterday to conspiracy to distribute cocaine.

According to court documents, Deangelo Freeman, 31 conspired with local drug dealers while he was a detective in the Special Investigations Unit of the Hampton Police Division. Specifically, Freeman was associated with a number of individuals who were selling large quantities of cocaine. These individuals included Alex Burnett who owned 9Rounds Gym in Hampton Town Center.  Freeman admitted to providing information to Burnett about an ongoing federal criminal investigation. Freeman learned of this information while serving as a narcotics detective and participating in the investigation of Burnett. The information provided by Freeman included the identity of a confidential informant. Freeman provided the information to compromise the investigation and to help Burnett’s drug distribution activities.

Freeman pleaded guilty to conspiracy to distribute more than 500 grams of cocaine and faces a mandatory minimum sentence of five years in prison and a maximum of 40 years in prison when sentenced on April 23, 2020. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.

G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office; and Terry L. Sult, Chief of Hampton Police Division, made the announcement. after U.S. Magistrate Judge Robert Krask accepted the plea. Assistant U.S. Attorney Eric M. Hurt is prosecuting the case.

The Hampton Police Division has fully cooperated and provided significant assistance with this investigation. The Idaho State Police provided assistance with the arrest of Freeman in Idaho.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:17-cr-111.

LAS VEGAS, Nev. – U.S. Attorney Nicholas A. Trutanich announced today that the District of Nevada collected $14,158,816.85 in criminal and civil actions in Fiscal Year 2019. Of this amount, $8,506,018.90 was collected in criminal actions and $5,652,797.95 was collected in civil actions. These amounts are approximately double the criminal and civil amounts that the District of Nevada collected in Fiscal Year 2018.

Additionally, the District of Nevada worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $11,775,021.59 in cases pursued jointly by these offices. Of this amount, $1,200 was collected in criminal actions and $11,773,821.59 was collected in civil actions.         

“The U.S. Attorney’s Office for the District of Nevada is grateful for the extraordinary performance of the dedicated public servants in our Civil Division, particularly the Financial Litigation Unit and the Asset Forfeiture Unit,” said U.S. Attorney Trutanich. “Due to their efforts, our office is able to contribute significant funds for victim compensation, victim assistance, and law enforcement purposes.”

For example, in May, the District of Nevada recovered $1.76 million prior to sentencing as part of a joint criminal and civil case against pharmacy owner Nelson Mukuna. The matter arose out of allegations that Mukuna paid kickbacks to nurse practitioners, inducing them to prescribe medically unnecessary products to be filled at Mukuna’s pharmacy. In August, the District of Nevada also recovered $2.5 million as part of the settlement in the civil case of United States ex rel. Arik v. Nevada Heart & Vascular, Inc. That case was brought by a whistleblower under the False Claims Act and involved allegations that Nevada Heart & Vascular Center received kickbacks to order medically unnecessary genetics tests.

The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.

Further, the U.S. Attorney’s office in the District of Nevada, working with partner agencies and divisions, collected $1,431,518 in asset forfeiture actions in FY 2019. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.

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CHARLOTTE, N.C. – Michael Edwin Dorcas, 56, of Huntersville, N.C., was sentenced today to 120 months in prison for enticement of a minor, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina.  In addition to the prison term imposed, U.S. District Judge Robert J. Conrad Jr. also ordered Dorcas to serve 30 years of supervised release and to register as a sex offender.

According to court documents and today’s court proceedings, on January 29, 2016, Dorcas befriended a 12-year-old female online and began chatting with her. Over the course of their communication, Dorcas – who knew the victim was 12 years old– suggested they communicate via video chat. Dorcas led the minor to believe that he was a 15-year-old male, and convinced the minor to use her web cam, which allowed him to see her.  Dorcas lied to the minor, telling her that his video cam was not working, and instead sent her pictures of a teenage male claiming it was him. Court records show that during their exchange, Dorcas convinced the minor to expose herself by removing articles of clothing.

On April 7, 2016, agents with the North Carolina State Bureau of Investigation (SBI) executed a search warrant at Dorcas’ residence, and seized electronic devices.  A forensic examination of the devices revealed that, in addition to the 12-year-old victim, Dorcas had chatted with other minors as well.

Dorcas pleaded guilty on February 28, 2019, to enticement of a minor. He will be ordered to report to the Federal Bureau of Prisons to begin serving his sentence upon designation of a federal facility.  Federal sentences are served without the possibility of parole.

In making today’s announcement, U.S. Attorney Murray commended the SBI for their investigation of this case and thanked Homeland Security Investigations for the assistance. 

Assistant United States Attorney Cortney Randall, with the U.S. Attorney’s Office in Charlotte, prosecuted the case.

The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorney’s Office and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

United States Attorney Brandon J. Fremin announced that Cristian Constantin, age 20, and Mihaela Stancu, age 25, both of Romania, pled guilty before U.S. Chief Judge Shelly D. Dick.  Constantin pled guilty to illegal possession of device making equipment and possession of fifteen or more counterfeit or unauthorized access devices.  M. Stancu pled guilty to possession of fifteen or more counterfeit or unauthorized access devices.  Earlier, on October 30, 2019, Petre Stancu and Antonio Serdaru pled guilty to possession of fifteen or more counterfeit access devices.  As a result of their guilty pleas, these defendants face significant terms of imprisonment, fines, and a period of supervised release

On March 9, 2019, a bank fraud investigator with Capital One Bank began following the progress of a group of Romanians driving about Shreveport, Louisiana, using fraudulent credit cards to withdraw sums of cash from various Capital One Bank ATMs.  The investigator then followed their progress from Shreveport to Baton Rouge, Louisiana, where the group continued to use those fraudulent cards to withdraw cash at Bank One locations in Baton Rouge.

Upon receiving this information from the investigator, Secret Service immediately passed it on to state and local law enforcement agencies, urging those agencies to rush personnel to those ATM locations to find and apprehend those suspects.

The investigator supplied information surrounding the vehicle makes, license plate numbers, and photographs of individuals in this group.  Those photographs included one of a white Honda Accord, a black Mercedes, and a GMC Terrain.  The investigator shared video stills depicting P. Stancu, Serdaru, and Constantin making fraudulent withdrawals at various Capitol One Bank ATM locations, as well as M. Stancu, marking those cards used by her brother, P. Stancu, to make those fraudulent withdrawals.

Secret Service received information of fraudulent activity occurring at the Bank One ATM at or near 6581 Siegen Lane/Industriplex.  A deputy rushed to that location and found Constantin and a pregnant juvenile in a GMC Terrain.  Law enforcement agents found over one hundred counterfeit credit cards, an encoder device, false identification documents for Constantin, and approximately $5,200. 

Constantin later confessed that he used the credit cards to make fraudulent withdrawals from various Bank One ATM locations.

On March 11, 2019, Livingston Parish Sheriff’s Office deputies found and stopped the black Mercedes, driven by P. Stancu, and occupied by his sister, M. Stancu, Serdaru, and a juvenile in Walker, Louisiana.   During this encounter, the juvenile female falsely claimed to be pregnant and requested deputies to allow her to go to the restroom.  After deputies told the juvenile female to wait for an ambulance, she tried to hide a boost bag she was carrying beneath the Mercedes.

Deputies seized the bag and found it contained approximately $3,860 and 191 counterfeit cards.  These cards contained re-encoded account numbers of customers who did their banking with Capital One and Regions Bank.  During their search of the Mercedes, authorities found $931, four gift cards with re-encoded account numbers (counterfeit cards), and a cellular phone.

P. Stancu, M. Stancu and Serdaru admitted to authorities that they used those counterfeit cards to make fraudulent withdrawals from various ATM machines.  Additionally, P. Stancu and Serdaru led authorities to the Honda Accord they left in a parking lot of the Home Depot in Denham Springs, Louisiana.

U.S. Attorney Fremin stated, “Access device fraud is a serious crime that can put citizens in great financial distress.  This office will always take these crimes seriously and work with all of our partners to bring offenders to justice.  I want to commend our prosecutor, the Secret Service, the Livingston Parish Sheriff’s Office, the East Baton Rouge Sheriff’s Office, and the investigators from Capital One Bank, whose quick action resulted in the arrest and conviction of these fraudsters.”

Tara McLeese, Resident Agent in Charge of the United States Secret Service in Baton Rouge, praised the quick response of local law enforcement.  McLeese said, “Our partners in state and local law enforcement are critical to suppressing fraudulent financial activities.  Through the Secret Service led Southwest Louisiana Financial Crimes Task Force, there are robust protocols and procedures in place to identify and capture individuals who choose to defraud the public.”

Livingston Parish Sheriff Jason Ard stated, “This case shows that agencies working together and sharing information can lead to great success.  This type of crime heavily impacts these victims - not only taking their money, but targeting their way of living.  When we can work together to take down a group of cowards attacking our hard-working citizens, it is a success in law enforcement.”

This matter is being investigated by the United States Secret Service, with critical assistance from the Livingston Parish Sheriff’s Office and East Baton Rouge Sheriff’s Office, and is being prosecuted by Assistant United States Attorney Robert W. Piedrahita.  

Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that Tiffany Jamil Flenaugh, 29, of Fairbanks, has been named in two separate federal indictments for crimes including attempted credit union robbery, receipt of a firearm while under felony indictment, and possession of a stolen firearm.  Flenaugh is currently in custody in Fairbanks, and is awaiting her first court appearance on the charges. 

The federal indictment alleges that, on Nov. 19, 2019, Flenaugh was in possession of a stolen firearm, while knowingly under indictment by the State of Alaska for multiple felony offenses.  Specifically, according to state court documents, Flenaugh allegedly stole a firearm from the Rabinowitz Courthouse in Fairbanks, which was being used as evidence for a trial in which Flenaugh was the defendant.  It is alleged that Flenaugh then fled the courthouse with the firearm, a Taurus 450 Titanium .45 caliber revolver.  Flenaugh was apprehended by officers with the Fairbanks Police Department shortly after, and the firearm was located in a nearby park.   

A separate federal indictment alleges that, on Sept. 3, 2019, Flenaugh attempted to rob the Spirit of Alaska Federal Credit Union in Fairbanks. 

If convicted of the firearm offenses, Flenaugh faces a maximum of up to ten years in federal prison for the most serious charges alleged.  If Flenaugh is convicted of attempted credit union robbery, she faces a maximum of up to 20 years in federal prison.  Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.

The Federal Bureau of Investigation (FBI), Fairbanks Police Department (FPD) and the Alaska State Troopers (AST) conducted the investigation leading to the charges against Flenaugh for her alleged firearm offenses.  The FBI and FPD conducted the investigation leading to the charge against Flenaugh for attempted credit union robbery.  Both cases are being prosecuted by Assistant U.S. Attorney Ryan D. Tansey.

The charges in the indictments are merely allegations, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

          WASHINGTON — The Department of Justice announced today that Van Andel Research Institute (VARI) has agreed to pay $5,500,000.00 to resolve allegations that it violated the False Claims Act by submitting federal grant applications and progress reports to the National Institutes of Health (NIH) in which VARI failed to disclose Chinese government grants that funded two VARI researchers.  The settlement further resolves allegations that in a Dec. 21, 2018 letter, VARI made certain factual representations to NIH with deliberate ignorance or reckless disregard for the truth regarding the Chinese grants.

          Andrew Birge, U.S. Attorney for the Western District of Michigan, said, “Our local institutions, like VARI, serve a vital role in raising West Michigan’s profile as a national player in cutting-edge biomedical research, but institutions everywhere must deal honestly and transparently when applying for U.S. government funding and respond appropriately when compliance issues arise. It’s unfair to other grant applicants and to the NIH for any institution to withhold requested information about whether the research that an institution wants the NIH to support may be getting funding from outside sources, specifically including foreign governments. False Claims Act penalties are harsh by design. I sincerely hope the word gets out on the importance of full disclosure with the government.”

          “It is imperative that recipients of NIH grant funds properly report all sources of research support, financial interests and affiliations of individual researchers to ensure the proper and effective use of taxpayer dollars,” said Lamont Pugh III, Special Agent in Charge of HHS-OIG’s Chicago Region.  “HHS-OIG will continue to investigate allegations of failures to properly report information to ensure the integrity of Departmental programs.” 

          Obtaining research funding from NIH is a highly competitive process, with only a small portion of eligible applications receiving funding each year.   Nondisclosures and false statements to granting agencies are especially harmful because they distort competition, disadvantage applicants who play by the rules, and undermine agencies’ decision-making on the use of their limited resources. 

          As part of its grants application process, NIH requires recipient institutions to disclose all financial resources—including any other research grants—that are available to researchers and other key research personnel in support of their research endeavors (known as “Other Support” disclosures).  Other Support disclosures allow NIH to independently evaluate, among other things, whether research submitted for taxpayer support is being funded by another source.  During the term of a grant, NIH also requires recipient institutions to disclose whether certain aspects of federally-funded research will be, or have been, performed outside of the United States (known as “Foreign Component” disclosures). Research institutions, which apply for NIH grants on behalf of researchers and groups of collaborating researchers, make these Other Support and Foreign Component disclosures on or in connection with NIH forms.

          VARI is an independent research institute in Grand Rapids, Michigan.  Between Jan. 1, 2012, and Aug. 31, 2019, VARI received NIH grants for two researchers, including a researcher identified here as “Professor 1.”  The government alleged that in applying for the NIH grants, and in submitting claims for federal grant funds, VARI did not disclose any foreign research funding for those researchers or any foreign components of their NIH-sponsored research.  The government alleged, however, that both researchers received research funding from Chinese sources while VARI was applying for and receiving NIH funds on their behalf.  The government specifically alleged that between Jan. 2012 and Dec. 2018, Professor 1 received grants and research support from a variety of Chinese sources, including the People’s Republic of China’s Thousand Talents Program.  The Thousand Talents Program is in place with the purpose of returning talent, research, and technology to China for China’s benefit.      

          The government claimed that between Jan. 2012 and June 2018, VARI should have known about these foreign grants and disclosed them to NIH.  The government alleged that while VARI had institutional policies and procedures in place to address conflicts of interest, VARI did not take adequate additional steps to investigate the researchers’ foreign funding sources despite receiving specific information about their Chinese affiliations.  The government claimed, for example, that a Chinese institution sent VARI a letter stating that Professor 1 was receiving “generous support” from the Chinese Thousand Talents Program.  The government also alleged that VARI knew that Professor 1 held a directorship at a Shanghai-based research institute—a collaboration between VARI and the Shanghai Institute of Materia Medica—that would involve Professor 1 applying for Chinese research grants to support work at the foreign institution.

          The government claimed that VARI learned about certain of Professor 1’s Chinese grants in June 2018 while reviewing a press release for one of Professor 1’s publications.  The government claimed that rather than confirming and disclosing the information to the NIH, VARI removed references to those grants from the proposed funding attributions in its press release.  The government alleged that shortly thereafter, VARI received an Aug. 20, 2018 letter from NIH Director Francis S. Collins, M.D., Ph.D. that reminded recipient institutions of the need to disclose “support coming from foreign governments or other foreign entities” for their researchers.  The government alleged that VARI then received a Nov. 30, 2018 e-mail from NIH that cited specific concerns about potential nondisclosures relating to Professor 1.  The government claimed that VARI did not disclose Professor 1’s Chinese grants to NIH even after receiving this correspondence. 

          The government claimed that VARI instead retained an outside consulting firm, and, relying on that firm’s advice, sent a Dec. 21, 2018 letter to NIH in which VARI stated that it was not required to disclose information about Professor 1’s foreign grants because “there was no undisclosed overlap of any budgetary resources, commitment, or scientific endeavor” between the Chinese grants and the NIH grants.  NIH, however, requires disclosure of all financial resources available in support of an individual’s research endeavors.  The government further alleged that VARI, in representing to the agency that “there was no undisclosed overlap” between the Chinese grants and the NIH grants, did not know whether that statement was true.

          U.S. Attorney Birge added that institutions concerned about a prior statement on a grant application should know that it is Department of Justice policy that entities or individuals that make “proactive, timely, and voluntary self-disclosures to the Department about misconduct will receive credit during the resolution of a False Claims Act case.”

          This case was a cooperative effort among HHS-OIG, the FBI, and the U.S. Attorney’s Office for the Western District of Michigan.  Assistant U.S. Attorney Adam B. Townshend represented the United States

          The claims resolved by the settlements are allegations only.  There has been no determination of liability.          

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A former supervisor of the Broward County School Board Physical Plant Operations Division has been charged with bribery and extortion under color of official right.

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida and George L. Piro, Special Agent in Charge of the FBI’s Miami Field Office made the announcement.

Richard Allen Ellis Jr., 49, of Hollywood, Florida, was charged in an 8-count indictment with bribery concerning programs receiving federal funds and extortion under color of official right (Case No. 19cr60369). Yesterday, he was arraigned on the charges before U.S. Magistrate Judge Alicia O. Valle in Fort Lauderdale.

The indictment alleges, between September 26, 2018, and December 17, 2018, Ellis, while working as a Broward County School Board employee in the Custodial/Grounds Department, accepted four cash payments from an individual who worked for a contractor who did work at various Broward County public schools.  The indictment further states that these payments had been occurring as early as 2016.  The payments were made to Ellis, to ensure a steady flow of work for the contractor and the individual, and timely payment of the contractor’s invoices.  Ellis is alleged to have accepted bribe payments wrongfully induced by his official position. 

An indictment is a formal accusation of criminal conduct, not evidence of guilt.  The defendant is presumed innocent unless and until proven guilty in a court of law.

U.S. Attorney Fajardo Orshan commended the FBI for its investigative efforts.  This case is being prosecuted by Assistant U.S. Attorney Cynthia R. Wood. 

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.

PITTSBURGH, PA - A federal grand jury returned a Superseding Indictment today against a resident of New Castle, Pennsylvania, on charges of violating the federal narcotics laws, United States Attorney Scott W. Brady announced today.

The three-count Superseding Indictment, returned on Dec. 17, named Zaamar Stevenson, aka Scrap, age 40, as the sole defendant.

According to the Superseding Indictment, on or about November 9, 2015, the defendant conspired to distribute and to possess with intent to distribute 28 grams or more of crack cocaine, a Schedule II controlled substance, and a quantity of a mixture and substance containing a detectable amount of heroin, a Schedule I controlled substance. In addition, the Superseding Indictment charges the defendant with possessing with intent to distribute both of those drugs on that date.

The law provides for a maximum total sentence of not less than five years and up to 40 years in prison, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.

Assistant United States Attorney Shanicka L. Kennedy is prosecuting this case on behalf of the government.

The Butler County District Attorney's Drug Task Force and the Federal Bureau of Investigation conducted the investigation leading to the Superseding Indictment in this case.

A superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.

John H. Durham, United States Attorney for the District of Connecticut, announced that CAREEMA LEWIS, 33, of Waterbury, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to three years of probation for stealing mail while employed by the U.S. Postal Service.  Judge Bolden ordered Lewis to perform 100 hours of community service while she is on probation.

According to court documents and statements made in court, between September 2018 and January 2019, while she was employed as a postal worker at the U.S. Post Office in Plymouth, Lewis stole numerous pieces of mail, specifically, greeting cards that contained gift cards or other items of value.  When confronted by investigators in January 2019, Lewis admitted that she stole “between 20 and 50” gift cards from the mail.  Lewis subsequently surrendered approximately 10 gift cards that she had stolen from greeting cards, and approximately 17 pieces of stolen mail that she had in her vehicle and her purse.

On September 26, 2019, Lewis pleaded guilty to one count of theft of mail by a postal employee.

Restitution will be determined after additional court proceedings.

This matter was investigated by the U.S. Postal Service Office of the Inspector General and was prosecuted by Assistant U.S. Attorney Margaret M. Donovan.

Individuals who believe they are a victim of mail theft may file a complaint by calling 888-USPS-OIG or by clicking this link.

Tampa, FL – The Justice Department’s Office of Justice Programs has announced awards of more than $333 million to help communities affected by the opioid crisis. $4,149,896 will help public safety and public health professionals in the Middle District of Florida combat substance abuse and respond effectively to overdoses. OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan made the announcement during a visit with local, state and federal officials in West Virginia, one of the states hardest hit by the epidemic.

“The opioid crisis has destroyed far too many lives and left too many Americans feeling helpless and hopeless,” said PDAAG Sullivan. “This epidemic—the most deadly in our nation’s history—is introducing new dangers and loading public health responsibilities onto the public safety duties of our law enforcement officers. The Department of Justice is here to support them during this unprecedented and extremely challenging time.”

With more than 130 people dying from opioid-related overdoses every day, the Department of Justice has made fighting addiction to opioids—including heroin and fentanyl—a national priority. The Trump Administration is providing critical funding for a wide range of activities—from preventive services and comprehensive treatment to recovery assistance, forensic science services and research—to help save lives and break the cycle of addiction and crime.

“We plan to continue to use every tool in our arsenal to combat the illegal distribution and use of opioids in our community,” said U.S. Attorney Maria Chapa Lopez. “These additional resources will increase the ability of our partners to save the lives of those affected by this dangerous epidemic.”

The awards announced today support an array of activities designed to reduce the harm inflicted by these dangerous drugs. Grants will help law enforcement officers, emergency responders and treatment professionals coordinate their response to overdoses. Funds will also provide services for children and youth affected by the crisis and will support the nationwide network of drug and treatment courts. Other awards will address prescription drug abuse, expand the capacity of forensic labs and support opioid-related research.

The following awards were made to organizations in the Middle District of Florida.

In addition, the following statewide awards were made to organizations in Florida.

Information about the programs and awards announced today is available here. For more information about OJP awards, visit the OJP Awards Data webpage.

The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training and technical assistance, and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.

NEWARK, N.J. – A Newark man was sentenced today to 120 months in prison for being convicted of being a felon in possession of a firearm, U.S. Attorney Craig Carpenito announced.

Jamar Battle, 31, was previously convicted after a three-day trial before U.S. District Judge William J. Martini on one count of being a felon in possession of a firearm and ammunition. The jury deliberated two hours before delivering the guilty verdict. Judge Martini imposed the sentence today in Newark federal court.

According to documents filed in this case and the evidence at trial:

On the evening of July 4, 2018, Battle was involved in an argument with his girlfriend and was waiting for her outside of her home. After she arrived near her home, Battle fired six shots at the car she had been riding in as it pulled away. He did not hit his intended target, but did hit a 5-year old girl who had been walking with her father after watching a neighborhood fireworks display. The child survived the shooting but suffered a major injury that required immediate medical attention.

Prior to this shooting, Battle had been convicted of six felonies. In 2015, Battle was sentenced to New Jersey State Prison on two firearms offenses and had just been released from prison in May 2018.

In addition to the prison term, Judge Martini sentenced Battle to three years of supervised release.

U.S. Attorney Carpenito credited law enforcement officers of the Newark Police Department, under the direction of Public Safety Director Anthony F. Ambrose; special agents of the Department of Alcohol Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Charlie J. Patterson in Newark; special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark; and the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens 2nd, with the investigation leading to today’s sentencing.

The government was represented by Senior Trial Counsel Robert Frazer and Special Assistant U.S. Attorney Naazneen Khan of the U.S. Attorney’s Office Violent Crimes Unit in Newark.

Defense counsel: Michael P. Koribanics Esq., Clifton, New Jersey

NEWARK, N.J. – A Passaic County, New Jersey, man was charged today for a multi-million dollar bank fraud and securities fraud scheme operated through his company, Cash Flow Partners LLC (Cash Flow), U.S. Attorney Craig Carpenito announced.

Edward Espinal, 44, of Wayne, New Jersey, was charged by complaint with one count of conspiracy to commit bank fraud and one count of securities fraud. He is scheduled to have his initial appearance this afternoon before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court.

According to documents filed in this case and statements made in court:

The Bank Fraud Conspiracy

Espinal was the founder and chief executive officer (CEO) of Cash Flow, and controlled the company’s operations. From March 2016 through December 2019, Espinal led and directed a bank fraud conspiracy designed to obtain millions of dollars in loans from banks on the basis of false representations. To attract customers, Cash Flow released internet advertisements and held seminars offering to assist customers with low-paying salaries in obtaining loans. These advertisements included promotional videos featuring Espinal and a former telenovela actor. Customers contacted Cash Flow and were routed to the company’s sales department.

Employees in the sales department then encouraged customers to sign up for various loan programs that Cash Flow provided and to enter into contracts with Cash Flow. Under those contracts, employees would help customers obtain loans from banks. The Cash Flow contracts permitted customers to keep a portion of the loan proceeds and customers agreed to provide the remaining percentage of the proceeds to Cash Flow. Cash Flow agreed to pay off the loans on behalf of its customers.

Cash Flow then used false information and fraudulent document to obtain loans for its customers for which they otherwise would not have qualified, and posed as the customers in communications with the banks.

The Securities Fraud Scheme

From July 2016 through September 2019, Espinal obtained more than $5 million in investments from victim investors on the basis of false and fraudulent pretenses and representations.

Espinal solicited investments from prospective customers using a marketing campaign on Spanish language television channels and the internet, the “Cash Flow TV” YouTube page, and live presentations in Cash Flow’s offices and elsewhere. Espinal also solicited investments from individuals who obtained loans through Cash Flow’s bank fraud conspiracy, encouraging loan customers to invest loan proceeds in Cash Flow’s investment program. Once investors agreed to invest in Cash Flow, Espinal issued “promissory notes” to investors that guaranteed monthly investment returns between 1.25 percent and 4 percent. The promissory notes stated that Cash Flow would return investors’ principal either one year from the date of the promissory note, or 60 days after investors demanded payment. Espinal and other Cash Flow employees signed the promissory notes on behalf of Cash Flow.

Espinal made a number of misrepresentations to investors. He told investors that he would pool their funds with the funds of other investors in investments related to real estate, real estate companies, a gold mine in Ecuador, and construction projects in countries outside of the United States. In reality, Espinal used investor funds to pay returns to earlier investors, to pay for personal expenses for himself, his family, and another Cash Flow employee, to perpetuate the bank fraud scheme, and to market the bank fraud and investment scheme to future victims. Espinal falsely claimed that Cash Flow’s purported real estate fund, Cash Flow Capital, was “licensed” by the Securities and Exchange Commission. He guaranteed monthly returns on investment based on the purported proceeds from the sale of properties in Cash Flow’s investment portfolio. In reality, Espinal did not sell Cash Flow properties, so no profits were derived from the sale of Cash Flow properties.

Two other individuals, Raymundo Torres and Jennie Frias, have previously been charged for their roles in the Cash Flow bank fraud conspiracy. Torres has pleaded guilty.

The conspiracy to commit bank fraud charge carries a maximum potential penalty of 30 years in prison and a $1 million fine. The securities fraud counts carry a maximum penalty of 20 years in prison and a $5 million fine.

Individuals who believe they may have information about this case may contact the FBI at 1-800-CALL-FBI (225-5324).

The U.S. Securities and Exchange Commission (SEC) also filed a civil complaint against Espinal today based on the allegations underlying the securities fraud charge.

U.S. Attorney Carpenito credited special agents of the FDIC-Office of the Inspector General (FDIC-OIG), under the direction of Special Agent in Charge Patricia Tarasca in New York, and special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, with the investigation leading to today’s charges. He also thanked the SEC for the assistance provided by its Enforcement Division.

The government is represented by Assistant U.S. Attorneys Ari B. Fontecchio of the Economic Crimes Unit and J. Stephen Ferketic of the U.S. Attorney’s Office Opioid Abuse Prevention and Enforcement Unit in Newark.

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

Defense counsel: Telesforo Del Valle Esq., New York