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Cincinnati police officer charged with lying to federal agents, submitting false tax returns

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CINCINNATI – A Cincinnati police officer was arrested today and charged with making a false statement to federal agents and filing false tax returns.

 

Quianna Campbell, 39, of Cincinnati, appeared in federal court on the charges at 3pm today, at which point the charges against her were unsealed.

 

According to court documents, the Cincinnati Police Department and IRS Criminal Investigation began investigating Campbell for various criminal offenses related to financial benefits she received as a result of her employment with the department.

 

Campbell has been employed with the Cincinnati Police Department for 11 years.

 

As part of an ongoing investigation into alleged money laundering and other crimes associated with area nightclubs, investigators discovered text message conversation between Campbell and a nightclub owner.

 

Campbell allegedly responded to a text from the nightclub owner asking if an individual was an undercover officer. According to the affidavit filed in support of the criminal complaint, Campbell confirmed via text message that the person was an undercover officer and discussed with the club owner the possible reasons that the police department might investigate the nightclub.

 

When federal agents questioned Campbell about the text conversation, she allegedly lied to the agents. Campbell told the agents she would never confirm if an individual was a police officer because if they were working in an undercover capacity it would put them in danger.

 

Campbell also allegedly failed to report on her federal tax returns cash income that she earned working off-duty details.

 

According to police records, Campbell earned more than $81,000 total working off-duty details in 2015, 2016 and 2017. She did not report an accurate income when filing her taxes.

 

Making a false statement to a federal agent in punishable by up to five years in prison. Willfully filing a false tax return carries a potential maximum penalty of up to three years in prison. Congress sets the maximum statutory sentence. Sentencing of the defendant will be determined by the Court based on the advisory sentencing guidelines and other statutory factors.

 

David M. DeVillers, United States Attorney for the Southern District of Ohio; Bryant Jackson, Special Agent in Charge, Internal Revenue Service-Criminal Investigation; and Cincinnati Police Chief Eliot K. Isaac announced the charges. Assistant United States Attorney Kenneth L. Parker is representing the United States in this case.

 

A criminal complaint merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.

 

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Thomas Louis Motisi Sentenced For Conspiracy To Distribute Methamphetamine

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Telford, Tennessee – On February 14, 2020, Thomas Louis Motisi, 51, currently of Staten Island, New York, was sentenced by U.S. District Judge Clifton L. Corker, in the United States District Court for the Eastern District of Tennessee at Greeneville.

Motisi was sentenced to 160 months in prison for his role in a conspiracy to distribute methamphetamine in the Eastern District of Tennessee.

In the spring of 2016, multiple local and federal agencies worked together to investigate potential suspects in a methamphetamine distribution conspiracy in Telford, Tennessee. Through the investigation, Motisi was found to be involved in the drug conspiracy. Motisi purchased methamphetamine from drug suppliers and redistributed the methamphetamine to other drug dealers and users. In November 2019, Motisi was found guilty at trial of conspiracy to distribute 50 grams or more of methamphetamine. 

This investigation was the product of a partnership between the Drug Enforcement Administration (DEA) and the Washington County Sheriff’s Department.

Assistant U.S. Attorneys Meghan L. Gomez and Emily M. Swecker represented the United States in court.  

The investigation is a result of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.

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Two Kokomo Men Indicted on Federal Firearms Charges

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INDIANAPOLIS – United States Attorney Josh J. Minkler announced today, Tarik Dordoni, 24, and Xavier Malone, 22, both of Kokomo, Ind., were indicted in separate complaints for unlawful possession of a firearm by a convicted felon. Dordoni was also charged with possession with intent to distribute marijuana and possession of a firearm during a drug trafficking crime. Both had previous felony convictions in Howard County Ind.

"My office has no tolerance for individuals who choose to break the law by selling drugs and illegally possessing firearms," said Minkler. "The U.S. Attorney’s Office is committed to reducing gun violence through its Project Guardian initiative. We are grateful to our collaborative partners, the Kokomo Police Department and Bureau of Alcohol Tobacco Firearms and Explosives who investigated and brought this to our attention."

At around 7:00 p.m. on Sept. 2, 2019, Kokomo Police received a call about shots fired near Studebaker Park in Kokomo, Ind. The suspect vehicle was described as a red pickup truck with black stripes. As officers were arriving to the area of the shooting, they saw a vehicle matching the description. Law enforcement initiated a traffic stop on the vehicle and once the vehicle came to a stop, Malone and Dordoni jumped from the vehicle and fled on foot. Malone was apprehended by officers shortly after he fled.

Kokomo Police K-9 located Dordoni inside a shed located in the backyard of a residence. The K-9 also located a backpack which contained a large bag of suspected marijuana and a loaded handgun.

Kokomo Police Department received a call that a handgun had be located in a yard. The location was close to the area of the shooting and along the route of where the red pickup truck fled. Law enforcement collected the firearm and other evidence from the yard.

This case was investigated by the Kokomo Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.

"The Kokomo Police Department appreciates our Federal law enforcement partners at the ATF," said Kokomo Police Department Captain Tonda Cockrell. "KPD is diligently investigating crimes involving the use of firearms in our community, especially those cases where children are placed in harm’s way. We will utilize our partnership with Federal Law Enforcement and the AUSA to ensure maximum penalties are sought for those individuals who choose to bring gun violence to the streets of Kokomo."

According to Assistant United States Attorney Lawrence D. Hilton who is prosecuting this case, Tarik Dordoni faces a maximum of life imprisonment if convicted. Xavier Malone faces a maximum sentence of 10 years if convicted.

This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted this case with support from the following Project Guardian partners: Kokomo Police Department and the Bureau of Alcohol Tobacco Firearms and Explosives. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.

An indictment is only a charge and not evidence of guilt. All defendants are presumed innocent until proved otherwise in federal court.

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 targeting the District’s most violent geographic areas for the adoption of reactive federal drug and firearm prosecutions. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 2.2.

Canadian Man Sentenced to 15 Months for Conspiracy to Commit Bank Fraud

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          CONCORD –Tharushan Nirmalachandran, 30, of Ile-Bizard, Quebec, was sentenced to 15 months in federal prison for participating in a conspiracy to commit bank fraud, United States Attorney Scott W. Murray announced today. Nirmalachandran faces likely removal to Canada after the completion of his prison sentence.

          According to court documents and statements made in court, in April 2019, Nirmalachandran, Syed Hoque, and Ajitharan Raveendran, conspired with others to withdraw money from other persons’ bank accounts by using cloned debit cards at ATMs.  A “cloned” debit card is a gift card or other type of card that has been re-encoded to contain other persons’ debit card information.  Blank credit and debit or gift cards can be encoded with stolen credit and debit card information using an “MSR” or “Magnetic Stripe Reader” machine.  An MSR machine can read and write the information stored in the magnetic stripe on the back of credit and debit cards. 

           On Friday, April 26, 2019, a witness reported to the Hudson Police Department that a man later identified as Hoque drove his car through an ATM in Hudson, New Hampshire, several times to make withdrawals.  The Hudson Police responded and found Hoque in his car at the ATM. The officer saw that Hoque was holding a cell phone that was displaying several sets of numbers on the screen and saw a large amount of cash on the front passenger seat of his car and several ATM or credit cards on the center console. 

          A search of Hoque’s phone revealed text messages in an application called “WhatsApp” from the weekend of April 24 through 26, 2019.  One group message chain from April 26, 2019, showed members of the conspiracy coordinating their activities as they withdrew money from  ATMs with the cloned debit cards.

          The trio was operating out of a hotel room in Methuen, Massachusetts.  Hotel surveillance video showed that, early in the morning on April 27, 2019, Nirmalachandran and Raveendran carried large duffle bags out of their hotel room.  Investigators later found duffle bags during a search of Nirmalachandran’s car that contained (i) a portable MSR machine; (ii) 103 Visa, American Express, and MasterCard gift cards, 96 of which contained cloned debit card information; (iii) over $51,000 United States currency; and (iv) a Hewlett Packard laptop computer.  A later search of the computer revealed text files that contained over 170 debit card numbers.

          In total, from April 25, 2019, through April 27, 2019, members of the conspiracy successfully withdrew at least $43,980.00 and attempted to withdraw an additional $69,900.00 from other people’s bank accounts using cloned debit cards. 

          Nirmalachandran previously pleaded guilty on November 4, 2019.   In addition to his prison sentence, Nirmalachandran was ordered to pay $$43,980.  The defendants in the case also have been ordered to forfeit over $61,000. 

          Hoque pleaded guilty December 13, 2019 and is scheduled to be sentenced on April 1, 2020.

          Raveendran pleaded guilty on November 14, 2019 and will be sentenced on February 28, 2020.

            “Those who commit bank fraud cause serious damage by stealing money from their victim’s bank accounts, driving up business costs, and undermining confidence in the banking system,” said U.S. Attorney Murray.  “We will not hesitate to seek federal prison sentences for those who attempt to steal hard-earned money from innocent victims.  I am grateful to the law enforcement officers whose excellent work led to this successful prosecution.”

            “The U.S. Secret Service appreciates the coordination between local, federal and international partners.  This cooperation is crucial when investigating trans-national criminal organizations that operate under the assumption they will not be detected in another country,” said Timothy Benitez, Resident Agent in Charge of the U.S. Secret Service, Manchester Resident Office.

             This matter was investigated by the United States Secret Service, with assistance from the Hudson and Methuen Police Departments.  The case is being prosecuted by Assistant U.S. Attorney Matthew Hunter.

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Fresno County Man Indictment for Large-Scale Marijuana Cultivation

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FRESNO, Calif. — A federal grand jury returned a two-count indictment today against Diego Garcia Lua, 61, of Orange Cove, charging him with cultivating marijuana and maintaining a drug-involved premises, U.S. Attorney McGregor W. Scott announced.

According to court documents, Lua used his orange orchard to disguise the presence of approximately 6,305 marijuana plants he was growing there.

This case is the product of an investigation by the Tulare County Sheriff’s Office and the Drug Enforcement Administration. Assistant U.S. Attorneys Kathleen A. Servatius and Katherine E. Schuh are prosecuting the case.

If convicted, Lua faces a maximum statutory penalty of life in prison and a $10 million fine on count one and a 20-year maximum penalty and $250,000 fine on count two. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

Sex Offender Sentenced for Producing Images of Child Sexual Abuse

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NORFOLK, Va. – A previously convicted child sex offender was sentenced today to 25 years in prison for producing images of child sexual abuse.

According to court documents, Lavelle Mayfield, 55, of Portsmouth, is a registered sex offender, having been previously convicted of several criminal sexual assaults against minors. The victim in this case, Jane Doe, 16, met Mayfield at church and developed a sexual relationship with him. At one point, Jane Doe ran away to stay with Mayfield. During that time, Mayfield produced numerous sexually explicit images and videos of Jane Doe.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the 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.justice.gov/psc.

G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C.; and Angela Greene, Chief of Portsmouth Police, made the announcement after sentencing by Senior U.S. District Judge Rebecca Beach Smith. Assistant U.S. Attorney Elizabeth M. Yusi prosecuted the case.

The Chesapeake Police Department provided significant assistance to this investigation.

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. 2:19-cr-92.

Man Sentenced to 15 Years for Trafficking “Ghost Guns” and Drugs

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ALEXANDRIA, Va. – A North Carolina man was sentenced today to 15 years in prison for trafficking methamphetamine, cocaine, and firearms without serial numbers, also known as “ghost guns”, from North Carolina to Virginia.

According to court documents, Flavio Lopez Garcia, 27, trafficked over 140 grams of methamphetamine, over 57 grams of cocaine, and seven firearms from North Carolina to Virginia. Five of the firearms were “ghost guns”, as they did not have serial numbers or other identifying markers. Two additional firearms destined for Virginia were recovered during Garcia’s arrest in North Carolina. After bringing the contraband over state lines, Garcia sold the items in a combined drug and gun trafficking scheme in exchange for profit.

This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. Click here for more information about Project Guardian.

G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Mark Herring, Attorney General for Virginia; and Ashan M. Benedict, Special Agent in Charge of the ATF’s Washington Field Division, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema. Special Assistant U.S. Attorney/Assistant Attorney General Karolina Klyuchnikova prosecuted the case.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-319.

Two Men Plead Guilty To Selling Methamphetamine On The White Earth Reservation

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United States Attorney Erica H. MacDonald today announced the guilty pleas of MICHAEL JACOB BLANDFORD, 28, and MATTHEW JON LEIGLAND, 26, to one count each of possession with intent to distribute methamphetamine. BLANDFORD and LEIGLAND, who were initially charged on April 26, 2019, entered their guilty pleas before Judge Nancy E. Brasel in U.S. District Court in St. Paul, Minnesota.

According to the defendants’ guilty pleas and documents filed with the court, BLANDFORD and LEIGLAND admitted to traveling from the White Earth Indian Reservation to the Twin Cities to purchase methamphetamine from a source and bring it back to the Reservation to distribute. On March 18, 2019, in Motley, Minnesota, a Minnesota State Trooper conducted a traffic stop of a vehicle for speeding and for having loud exhaust. BLANDFORD was identified as the driver and LEIGLAND was identified as the lone passenger. During the stop, the State Trooper observed drug paraphernalia and BLANDFORD showed signs of recent drug use. When asked to step out of the vehicle, BLANDFORD fled on foot and tossed an item out of his pocket, which was later found to be approximately 10 grams of methamphetamine. The State Trooper apprehended BLANDFORD and placed him in custody. A subsequent search of the vehicle revealed a methamphetamine smoking device, used razor blades, a small digital scale, two measuring cups, and a gallon Ziploc bag containing approximately 480 grams of methamphetamine.

This case was the result of an investigation conducted by the West Central Minnesota Drug & Violent Crimes Task Force, the Becker County Sheriff’s Office, the Minnesota State Patrol, the Motley Police Department, and the FBI Headwaters Safe Trails Task Force.

Special Assistant U.S. Attorney Gina L. Allery prosecuted the case.

 

Defendant Information:

MICHAEL JACOB BLANDFORD, 28

Monticello, Minn.

Convicted:

  • Possession with intent to distribute methamphetamine, 1 count

 

MATTHEW JON LEIGLAND, 26

Ponsford, Minn.

Convicted:

  • Possession with intent to distribute methamphetamine, 1 count

 

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United States Attorney’s Office, District of Minnesota: (612) 664-5600


Aliquippa Man Sentenced for Conspiring to Distribute Drugs

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PITTSBURGH – Darren Martin was sentenced to 27 months in federal prison for conspiring to distribute cocaine and fentanyl, United States Attorney Scott W. Brady announced today.

Martin, age 31 of Aliquippa, Pennsylvania, was sentenced by United States District Judge J. Nicholas Ranjan. Judge Ranjan also sentenced Martin to serve three years of supervised release upon his release from prison.

Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.

The Drug Enforcement Administration, the Internal Revenue Service, the federal Bureau of Prisons, and the Pennsylvania Office of Attorney General led the multi-agency investigation that also included the United States Postal Inspection Service, the Beaver County District Attorney’s Office, the Department of Homeland Security/Homeland Security Investigations, the Pittsburgh Police Department, the United States Marshals Service, the Pennsylvania State Police, the Munhall Police Department, the Robinson Township Police Department, the McKees Rocks Police Department, the Stowe Township Police Department, the Etna Police Department, and the Erie County District Attorney’s Office.

The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.

Project Guardian: Three Appear in Federal Court for Gun Crimes

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CHARLESTON, W.Va. –  Defendants in three separate Project Guardian cases appeared in federal court this week announced United States Attorney Mike Stuart. 

Bari Myricks, 47, of Dunbar, was sentenced to 96 months in prison for possession with intent to distribute 40 or more grams of fentanyl and for being a felon in possession of a firearm.  Myricks previously admitted that on May 7, 2018, the vehicle he was driving was stopped by law enforcement officers due to a traffic violation.  He further admitted that after a police K-9 trained in drug detection indicated narcotics were present in his vehicle, police conducted a search of his vehicle, finding heroin in a plastic bag.  Officers with the Metropolitan Drug Enforcement Network Team (MDENT) later searched Myricks’ residence on Roxalana Road, finding over 100 grams of fentanyl, marijuana, over $12,000 in cash and two firearms.  Myricks knew he was prohibited from possessing the firearms due to prior felony convictions.  MDENT conducted the investigation.  Senior United States District Judge John T. Copenhaver, Jr. presided over the hearing.   Assistant United States Attorney Andrew J. Tessman handled the prosecution.

Clayton Cato, 36, of Brooklyn, New York, was sentenced to 24 months in prison for possessing a firearm as a convicted felon.  On November 20, 2018, Cato was a passenger in a vehicle that was stopped on the East End of Charleston for a defective light. Upon officers approaching the vehicle, they smelled marijuana. All occupants were asked to step out of the vehicle. Cato stepped out of the vehicle and ran from the traffic stop on foot. While fleeing, he put his hands near his hoody pocket and was apprehended. During a pat-down for officer safety, officers located a Smith & Wesson 32 caliber pistol. Cato admitted he knew he was prohibited from possessing a firearm because of a 2003 felony conviction for distribution of cocaine base.  The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Charleston Police Department conducted the investigation.   United States District Judge Joseph R. Goodwin presided over the hearing.  Assistant United States Attorney Ryan A. Saunders handled the prosecution.

Brashan Beverly, 32, of Dunbar, pled guilty to being a felon in possession of a firearm.  Beverly admitted that on January 3, 2019, he possessed a firearm, that is a SCCY, Model CPX-2, 9mm semi-automatic pistol, in Tornado, Kanawha County, West Virginia. At the time he possessed the firearm, he knew he was prohibited from possessing firearms because of a prior drug conviction. Beverly faces up to 10 years in prison when sentenced on May 11, 2020.  The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Kanawha County Sheriff’s Department, and the Nitro Police Department conducted the investigation.   United States District Judge Robert C. Chambers presided over the hearing.  Assistant United States Attorneys Ryan A. Saunders and Joseph F. Adams are handling the prosecution.

These cases are part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted these cases with support from the Project Guardian partners referenced above.  For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.            

 

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13 Defendants Charged With Submitting Millions Of Dollars In False Transportation Claims To Medicaid

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Geoffrey S. Berman, United States Attorney for the Southern District of New York, Peter C. Fitzhugh, Special Agent in Charge of the New York Field Office of the Department of Homeland Security Investigations (“HSI”), Scott J. Lampert, Special Agent in Charge of the New York Regional Office of the U.S. Department of Health and Human Services, Office of the Inspector General (“HHS-OIG”), and Dennis Rosen, New York State Medicaid Inspector General (“OMIG”), announced the unsealing of a Complaint charging thirteen defendants with participating in a scheme to steal millions of dollars from New York State’s Medicaid program through fraudulent claims related to transportation services.

U.S. Attorney Geoffrey S. Berman said:  “As alleged, these defendants exploited and abused Medicaid, billing millions of dollars for phantom medical transportation services.  Medicaid is intended to provide financial assistance to those in need.  These defendants allegedly treated the Medicaid program that pays for medical transport as an opportunity to steal from Medicaid, which is indirectly stealing from American taxpayers.  Now they face prosecution for their alleged crimes.”

HSI Special Agent in Charge Peter C. Fitzhugh said:  “It is alleged that these individuals schemed to defraud the Medicaid program out of millions of dollars, in turn robbing all those who rely on it for their vital healthcare needs.  More than a dozen were involved in this plan to charge for services not rendered, and HSI working with its law enforcement partners arrested those who sought to make a profit at the expense of those in need and will continue to do so.”

HHS-OIG Special Agent in Charge Scott J. Lampert said:  “Millions of people in New York depend on Medicaid for vital services, and taxpayers across the country pay for that care.  We will continue close cooperation with our State and Federal law enforcement partners to preserve this essential funding.”

NYS Medicaid Inspector General Dennis Rosen said:  “Today’s arrests send an unmistakable message to those who seek personal gain by preying upon vulnerable New Yorkers and exploiting the Medicaid program.  My office will continue to work closely with our federal partners to protect Medicaid recipients, save taxpayer dollars, and hold wrongdoers fully accountable.”

As alleged in the criminal Complaint unsealed today:[1] 

From in or about August 2017 to February 2020, KJ Transportation C Services Inc. (“KJ”) was paid more than $20 million for providing transportation services for Medicaid enrollees in the New York City area.

JORGELINA ABREU GIL, 32, of Yonkers, New York, is the owner of KJ.  Her husband, JULIO ALVARADO, 59, of Yonkers, is a manager at the company.  Beginning in August 2017, KJ began submitting claims to Medicaid for purported medical transportation services for eligible people in the New York area.  From August 2017 to February 2020, KJ submitted more than 100,000 claims related to hundreds of thousands of trips.  However, a large percentage of those claims were fraudulent.  In some instances, the Medicaid recipient was deceased or out of the country when KJ claimed it was transporting that person to medical appointments.  In other instances, the Medicaid recipient had never heard of KJ and had never taken any rides with the company.  In yet other instances, the Medicaid recipient had received unlawful “kickbacks” from defendants in exchange for either giving KJ his/her Medicaid information, or for fraudulently scheduling trips he/she did not take.

In hundreds of instances, defendants called Medicaid’s transportation management company for the New York City area and scheduled trips on behalf of Medicaid enrollees.  On these calls, the defendants tried to schedule reoccurring trips several times per week that would go on for months, allowing them to bill dozens of trips to Medicaid without having to schedule each trip individually.  In other instances, defendants scheduled trips online.  ABREU GIL attested to nearly all of the trips, fraudulently certifying that the trips actually took place when, in fact, most did not.

HECTOR SALAZAR HERRERA, 27, of the Bronx, New York, ZORAIDA GONZALEZ, 44, of Yonkers, New York, YESENIA RODRIGUEZ,  37, of Yonkers, JOSE RIVERA, 26, of the Bronx, FABIAN MORGAN, 39, of the Bronx, VICTORIA PALMA BREA, 32 of the Bronx, CRISTOPHER SANTOS FELIX, 28, of the Bronx, JOHN MANUEL MEJIA, 41, of the Bronx, JOSE JIMENZ HIDALGO, 42, of the Bronx, FRANCISCO SALAZAR, 68, of the Bronx, and NELSON DIAZ, a/k/a “Abdul Alamin,” 56, of the Bronx, acted as “drivers” or “recruiters” of Medicaid enrollees.  As detailed in the Complaint, the defendants variously paid Medicaid enrollees to schedule fraudulent trips, paid unlawful kickbacks to Medicaid enrollees, and fraudulently scheduled trips that never took place.  In exchange for their work, the “drivers” or “recruiters” were paid up to hundreds of thousands of dollars.

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ABREU GIL, ALVARADO, GONZALEZ, RODRIGUEZ, RIVERA, MORGAN, PALMA BREA, MEJIA, JIMENEZ HIDALGO, SALAZAR, and DIAZ were arrested this morning and will be presented later today before U.S. Magistrate Judge Robert W. Lehrburger in Manhattan federal court.  SANTOS FELIX was already in federal custody on unrelated charges and will be presented at a later date.           

ABREU GIL, ALVARADO, SALAZAR HERRERA, GONZALEZ, RODRIGUEZ, RIVERA, MORGAN, PALMA BREA, SANTOS FELIX, MEJIA, JIMENZ HIDALGO, SALAZAR, and DIAZ are each charged with one count of submitting false claims, in violation of 18 U.S.C. § 287; one count of theft of government funds, in violation of 18 U.S.C. § 641; one count of aggravated identity theft, in violation 18 U.S.C. § 1028A; one count of wire fraud, in violation of 18 U.S.C. § 1343; one count of health care fraud, in violation of 18 U.S.C. § 1347; one count of conspiracy to commit wire fraud and health care fraud, in violation of 18 U.S.C. § 1349; and one count of violating the Anti-Kickback Statute, 42 U.S.C. § 1320a-7b.  In addition, ABREU GIL and ALVARADO are each charged with one count of money laundering, in violation of 18 U.S.C. § 1957.

The crime of submitting false claims carries a maximum sentence of five years in prison. The crimes of theft of government funds, health care fraud, money laundering, and violating the Anti-Kickback Statute each carry a maximum sentence of 10 years in prison. The crime of wire fraud carries a maximum sentence of 20 years in prison.  The crime of aggravated identity theft carries a mandatory two years in prison.  The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.

On February 14, 2020, law enforcement officers also executed seizure warrants in an effort to recover millions of dollars in fraud proceeds obtained by the defendants.

Mr. Berman praised the outstanding work of HSI, HHS-OIG, and OMIG.  He also thanked the City of Yonkers Police Department, the New York City Police Department, the New York Attorney General’s Medicaid Fraud Control Unit, and United States Customs and Border Protection for their assistance in the case.

This case is being handled by the Office’s General Crimes Unit.  Assistant United States Attorney Kedar S. Bhatia is in charge of the prosecution.

 

[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein are only allegations, and every fact described should be treated as an allegation.

San Francisco Resident Indicted on Sex Tourism Related Charges

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SAN FRANCISCO – Paul Marshall Bodner was arrested on charges related to sex tourism in Vietnam, announced United States Attorney David L. Anderson and Homeland Security Investigations (HSI) Special Agent in Charge Tatum King.  In an indictment filed on January 30, 2020, and unsealed yesterday, a federal grand jury charged Bodner with repeatedly traveling to Vietnam in order to engage in illicit sexual conduct.  

According to the indictment, Bodner, 64, of San Francisco, Calif., traveled to Vietnam during the period from July 2015 through August 2016, where he engaged in illicit sexual conduct.  The indictment also states that Bodner traveled to Vietnam in March and July 2016 for the purpose of engaging in illicit sexual conduct.  According to information presented to the court at his initial appearance on February 13, 2020, Bodner met Vietnamese boys as young as 11 or 12 years old and engaged in sex acts with them at a hotel located in Ho Chi Minh City when he traveled to Vietnam.  

The indictment charges Bodner with three counts of travel with intent to engage in illicit sexual conduct, in violation of 18 U.S.C. § 2423(b); and one count of engaging in illicit sexual conduct in foreign places, in violation of 18 U.S.C. § 2423(c).

Bodner was arraigned in federal court before the Honorable Joseph C. Spero, U.S. Magistrate Judge.  Judge Spero scheduled a hearing for today, February 14, 2020, to determine Bodner’s detention status pending trial. 

Anyone with information about Bodner or his alleged sexual interest in children should contact the HSI Tip Line at 1-866-DHS-2-ICE and ask to be directed to the case agent.   

An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.  If convicted on the charges in the indictment, the defendant would face for each count a maximum sentence of 30 years imprisonment, a life term of supervised release, and a fine of $250,000, plus restitution if appropriate.  However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553. 

Assistant U.S. Attorney Lina Peng is prosecuting the case with the assistance of Morgan Byrne.  The prosecution is the result of an investigation by HSI.

Thomas Louis Motisi Sentenced For Conspiracy To Distribute Methamphetamine

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Telford, Tennessee – On February 14, 2020, Thomas Louis Motisi, 51, currently of Staten Island, New York, was sentenced by U.S. District Judge Clifton L. Corker, in the United States District Court for the Eastern District of Tennessee at Greeneville.

Motisi was sentenced to 160 months in prison for his role in a conspiracy to distribute methamphetamine in the Eastern District of Tennessee.

In the spring of 2016, multiple local and federal agencies worked together to investigate potential suspects in a methamphetamine distribution conspiracy in Telford, Tennessee. Through the investigation, Motisi was found to be involved in the drug conspiracy. Motisi purchased methamphetamine from drug suppliers and redistributed the methamphetamine to other drug dealers and users. In November 2019, Motisi was found guilty at trial of conspiracy to distribute 50 grams or more of methamphetamine. 

This investigation was the product of a partnership between the Drug Enforcement Administration (DEA) and the Washington County Sheriff’s Department.

Assistant U.S. Attorneys Meghan L. Gomez and Emily M. Swecker represented the United States in court.  

The investigation is a result of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.

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Pike County Woman Sentenced to 420 Months for Production and Distribution of Child Pornography

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PIKEVILLE, Ky.- A Pikeville woman, Christina Brook Mitchell, 31, was sentenced on Friday to 420 months in federal prison, by U.S. District Judge Karen Caldwell, for production and distribution of child pornography.

Mitchell previously admitted that she took explicit photographs of two minor female victims and sent the images via Facebook Messenger to Johnathan Manigault. Mitchell admitted that Manigault instructed her how to take the images and that she agreed to photograph additional underage victims for Manigault. 

Manigault, Mitchell’s co-defendant, will be sentenced on April 10.

Under federal law, Mitchell must serve 85 percent of her prison sentence and will be under the supervision of the U.S. Probation Office for life.  

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and James Robert Brown, Special Agent in Charge for FBI, Louisville Field Office, jointly made the announcement. 

This 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 U.S. Attorneys' Offices 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.

The investigation was directed by the FBI. The United States was represented by Assistant U.S. Attorneys Jenna Reed.

The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

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Petersburg Man Sentenced for Firearms and Drug Trafficking

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RICHMOND, Va. – A Petersburg man was sentenced today to over five years in prison for possessing a firearm as a convicted felon and distributing a mixture and substance containing fentanyl and acetylfentanyl.

According to court documents, Jacoby Williams, 34, is a previously convicted felon. In September 2018, Williams sold a confidential source a mixture and substance containing fentanyl and acetylfentanyl after the confidential source ordered heroin from Williams. Shortly thereafter, Williams sold a .357 Ruger revolver and ammunition to the confidential source. During the encounter, Williams wiped his fingerprints off of the firearm, and indicated that he had more firearms for sale.

This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. Click here for more information about Project Guardian.

G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Ashan M. Benedict, Special Agent in Charge of the ATF’s Washington Field Division; and Kenneth A. Miller, Director of Public Safety, Petersburg Bureau of Police, made the announcement after sentencing by Senior U.S. District Judge Henry E. Hudson. Assistant U.S. Attorneys Angela Mastandrea-Miller and Kenneth Simon, Jr. prosecuted the case.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:19-cr-040.


New York Men Found Guilty of Federal Drug Conspiracy

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Portland, Maine: Two Brooklyn, New York men were convicted of conspiring to distribute and possess with intent to distribute cocaine base and heroin following a jury trial, U.S. Attorney Halsey B. Frank announced.

A federal jury returned a guilty verdict against Melquan Jordan, (a/k/a “Squirrel”), 30, and Edward Canty III (a/k/a “Demo”), 31,on October 23, 2019, but today U.S. District Judge Jon D. Levy denied the defendants’ motions for judgment of acquittal.

According to evidence presented at trial, Jordan and Canty conspired to possess with intent to distribute cocaine base and heroin transported from outside Maine for distribution in Portland and Lewiston. Jordan’s distribution involved more than 100 grams of heroin. The other conspirators named in the indictment, Lamale Lawson (a/k/a “Bishop” and “King Bishop”), 28, of Brooklyn; Akeem Cruz (a/k/a “Vibe” and “Mello”), 29, of Brooklyn; and Christopher Rickett (a/k/a “Chris”), 32, of Portland, pleaded guilty in August 2019 to participating in the conspiracy. Sierrha Frisbie (a/k/a “Cici”), 27, of Portland, pleaded guilty in December 2018.

Jordan faces between 10 and 40 years in prison, a $5,000,000 fine and between four years and life on supervised release. Canty faces up to 20 years in prison, a $1,000,000 fine and between three years and life on supervised release. All six defendants will be sentenced following preparation of presentence reports by the U.S. Probation Office.

The Portland and South Portland Police Departments; the Maine Drug Enforcement Agency; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the FBI investigated the case.

Pikeville Man Convicted of Firearm Offenses

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PIKEVILLE, Ky. – A Pikeville man was convicted by a federal jury on Thursday evening, for being a felon in possession of a pistol and sawed-off shotgun.

According to testimony at trial, the Kentucky State Police responded to a complaint that Richard Starghill had refused to leave another person’s residence. He was then found in possession of a loaded revolver and a sawed – off shotgun. Starghill has a lengthy criminal history involving multiple convictions for drug trafficking and a recent conviction for felony assault.

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; James Robert Brown, FBI Louisville Field Office; and Rodney Brewer, Kentucky State Police Commissioner, jointly announced the conviction.

The investigation was conducted by FBI and KSP. The U.S. Attorney’s Office was represented in the case by Assistant U.S. Attorney Nick Rabold. 

Starghill will appear for sentencing on June 12, 2020. He faces up to a maximum of life in prison. However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal sentencing statutes before imposing a sentence.

This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, U.S. Attorney Robert Duncan Jr., coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.

 This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. Click here for more information about Project Guardian.      

The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

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U.S. Attorney Mike Hurst Announces Department of Justice Grant Awards of Nearly $300,000 to Local Mississippi Police Departments

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Jackson, Miss. – U.S. Attorney Mike Hurst announced today that the U.S. Department of Justice has awarded grants in the amount of $149,900 to the Cities of Biloxi and Natchez under the DOJ’s Bureau of Justice Assistance Gulf States Regional Law Enforcement Technology Training and Technical Assistance Initiative.

“This money will go a long way in helping our partners fight crime at the local level and keep their citizens safe.  I am excited about these awards because it furthers our partnership with our local law enforcement by giving officers and prosecutors more tools to investigate and prosecute the criminal element. These cities and their men and women in law enforcement should be commended for pursuing these grants in order to better their cities,” said U.S. Attorney Hurst.

“The Biloxi Police Department is thrilled to have been awarded this grant. The funds will greatly enhance law enforcement’s ability to conduct investigations using cutting edge technologies,” said Biloxi Police Chief John Miller.  “Thanks to our friends at the U.S. Department of Justice and U.S. Attorney Mike Hurst for realizing and supporting the needs of local law enforcement.”

“This is a huge crime-fighting tool that we will have at our disposal that has already proven to be very successful throughout the year of 2019.  We had some major reduction in many of the crime categories last year. I would like to think U.S. Attorney Mike Hurst and his office’s Project EJECT, Sheriff Travis Patton, and all of the State, federal and local partners,” said Natchez Police Chief Walter Armstrong.

This initiative is an innovative new program designed to provide resources and technology to law enforcement jurisdictions within the five Gulf States (Florida, Alabama, Louisiana, Mississippi, and Texas) to assist with information and intelligence sharing to reduce crime and illegal drug trafficking. 

The grants awarded under this initiative are expected to enhance information and criminal intelligence sharing between local law enforcement agencies and their local fusion centers. Awardees are expected to work toward sharing this type of information with federal and state agencies with the intention to reduce crime.

For more information about this grant or other grant opportunities, contact the Office of Justice Program's Office of Communications at (202) 307-0703 or by visiting https://www.ojp.gov.

 

Methamphetamine Dealing Couple Pleads Guilty to Distributing Ketamine Which Resulted in the Death of a Teenager Whose Body Was Found Floating in a Texas Bayou

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NEW ORLEANS –  U.S. Attorney Peter G. Strasser announced that CARLOSMARIO CANTU-COX, age 48, and his husband, CHRISTOPHER CANTU-COX, age 37, both of Pasadena, Texas, pleaded guilty on Tuesday, February 4, 2020 for distributing ketamine that resulted in the death of a Slidell, Louisiana teenager.  The eighteen year old’s dead body was found floating in a Texas bayou.

As described in court documents, the CANTU-COXES were large-scale methamphetamine suppliers to the Houston and New Orleans area.  One of their customers was an eighteen year old from Slidell, Louisiana, who frequently traveled to Texas to stay at their home.  During one of these visits, the teenager was arrested for unlawful possession of a firearm and the CANTU-COXES posted his $6000 bond.

The teenager did not appear for his Texas court appearances and the CANTU-COXEStold their New Orleans customers that they wanted the teenager so they could transport him back to Texas and recover their bond.  Williams Harrison Farris, age 39, a New Orleans-based methamphetamine dealer and user who was supplied by the CANTU-COXES learned that the couple was looking for the teenager and were offering freemethamphetamine to anyone who successfully led them to him.

Farris had previously dated Kacie Doucet, aged 37, another New Orleans-based drug user.  Farris knew that Doucet was connected to the teenager on Facebook.  At the direction of Farris, Doucet contacted the teenager over Facebook on multiple occasions and suggested that they meet for a sexual encounter.  Farris and Doucet enlisted the help of Leilani Aspuria, age 25, of Jefferson Parish, the only one of the three with a car.

The CANTU-COXES were aware that Doucet’s offer of a sexual encounter with the teenager was a ruse, and that the real purpose of picking up the teenager in Slidell at his grandfather’s house was to provide him with a cocktail of powerful drugs and thus render him incapacitated so he could be delivered to the CANTU-COXES who were staying at a hotel in downtown New Orleans.  The CANTU-COXES supplied the drug cocktail, which contained ketamine, as well as instructions on how to mix the drugs with alcohol so that it could be administered to the teenager without him knowing what he was taking.

Doucet and Aspuria picked up the teenager on February 23, 2016 and gave him the CANTU-COXES’s drug cocktail, which the couple referred to as an “elixir.”  Eventually, the teenager passed out, at which point Doucet and Aspuria drove to the parking garage of Harrah’s Casino in New Orleans.  Farris had been following Doucet and Aspuria on his motorcycle.  The teenager’s body was then transferred to the CANTU-COXES’ car.  The CANTU-COXES then drove back to Texas, with the teenager passed out in their back seat. 

Somewhere near the Louisiana-Texas border, the CANTU-COXES realized that the teenager was no longer breathing.  The CANTU-COXES continued driving to their home in Pasadena, Texas and parked in their driveway.  Because it was still daylight, they left the teenager’s body in the car.  At nightfall, the CANTU-COXES drove to a bridge over Sims Bayou in the Houston area and put the teenager’s body into the bayou.  The teenager’s body washed to the shore of Sims Bayou a week later.  The CANTU-COXES later paid Farris a quantity of methamphetamine for his efforts in capturing the teenager. 

U.S. District Court Judge Wendy B. Vitter will sentence the CANTU-COXES onMay 5, 2020.   The CANTU-COXES face up to twenty years in prison.   Farris, Doucet, and Aspuria have all plead guilty to the same charge.  U.S District Judge Jane Triche Milazzo sentenced Aspuria to ten years of imprisonment on February 7, 2020.  Farris will be sentenced on March 18, 2020.  Doucet will be sentenced on April 8, 2020.

U.S. Attorney Strasser praised the work of the United States Postal Inspection Service, Louisiana State Police, Houston Police Department, and the Drug Enforcement Administration.  Assistant United States Attorneys David Howard Sinkman and Brandon S. Long and are in charge of the prosecution.      

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Delaware County Business Owner Sentenced to 4+ Years in Prison for Stealing Funds from Clients, Filing False Forms with the IRS

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PHILADELPHIA – United States Attorney William M. McSwain announced that Myles Hannigan, 48, of Newtown Square, PA was sentenced to 52 months’ incarceration, one year supervised release, and ordered to pay $3,270,566 in restitution by United States District Judge Chad F. Kenney for filing false tax information with the Internal Revenue Service on behalf of his clients. At the conclusion of today’s sentencing hearing, Mr. Hannigan was immediately taken into custody and sent to federal prison.

The defendant pleaded guilty in July 2019 to obstructing the due administration of the IRS and seventeen counts of preparing materially false income tax returns, in connection with owning and operating Payroll Professionals, Incorporated (“PPI”) located in Media, Pennsylvania. PPI is a third-party payroll processor, which assists its clients by issuing payroll checks and forwarding tax payments to federal, state, and local authorities. PPI’s clients were small- to medium-sized businesses, and the clients relied on Hannigan to prepare and file tax Form 941, among others, with the IRS. Form 941 details employee wages that were paid by a company, and payroll tax withheld and paid to the IRS based on those wages. 

Beginning in January 2012 and continuing up to December 2016, Hannigan prepared and submitted Forms 941 that falsely reported information to the IRS. In particular, Hannigan reported depositing more money to pay tax debt than he had actually sent to the IRS, causing 35 of PPI’s client companies (who are considered victims in this case) to collectively underpay the IRS $3,270,566.89 for those tax years. These victims/companies gave Hannigan access to all necessary funds to pay the full tax debt, but Hannigan failed to do so. Hannigan hid his behavior from these victims/companies by presenting bogus documents that purported to be confirmation of payments he had made to the IRS on their behalf, and by re-directing IRS correspondence to his business address.

“This defendant – an accountant whose business it was to handle payroll taxes – committed fraud and stole from clients and the United States government,” said U.S. Attorney McSwain. “He also stole from the pockets of all taxpayers who do the right thing every year by paying their taxes. As we enter tax season this year, let this sentence serve as a warning to anyone who might be considering trying to get away with cheating the IRS: don’t do it – because it will not end well.”

“As the third-party payroll processor, Mr. Hannigan’s clients trusted him to prepare accurate employment tax returns and remit their payroll taxes to the IRS. Instead, he prepared fraudulent employment tax returns, lied to his clients and failed to remit their payroll taxes,” stated John R. Tafur, Special Agent in Charge, IRS Criminal Investigation, Newark Field Office. “Today’s sentencing holds Mr. Hannigan accountable for his crimes and shows how serious IRS Criminal Investigation is about pursuing individuals who intentionally cheat not only their clients but the entire taxpaying public.”

The case was investigated by the IRS and the Treasury Inspector General for Tax Administration, and is being prosecuted by Assistant United States Attorney Jason Bologna.

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