BOSTON – The former Vice President of Investor Relations for PixarBio Corp., a Boston-based biotech company, was sentenced yesterday on securities fraud charges in connection with a scheme to manipulate trading in the company’s shares and obstruction of proceedings before the Securities and Exchange Commission (SEC). 

Kenneth Stromsland, 48, of Rumson, N.J., was sentenced by U.S. Senior District Court Judge Douglas P. Woodlock to six months in home detention, three years of supervised release during which time he must complete 200 hours of community service per year, and ordered to pay a fine of $60,000 and forfeiture of $25,700. In September 2018, Stromsland pleaded guilty to one count of securities fraud through manipulative trading, one count of obstructing an agency proceeding and agreed to cooperate with the government. In April 2018, Stromsland was charged with co-defendant Frank Reynolds, the former chief executive officer of PixarBio. Reynolds was convicted by a federal jury in October 2019, and sentenced on Feb. 18, 2020, to seven years in prison.

Stromsland admitted that beginning in or about November 2016, he engaged in manipulative trades in PixarBio stock that simulated market interest in the stock and artificially pushed up the trading price. These trades included orders to buy at a price much higher than the price of the preceding market transaction.

Stromsland also admitted that during a 2017 SEC investigation into manipulative trading in PixarBio’s stock, he testified falsely before the SEC. In his testimony on three different days, Stromsland falsely denied that he had purchased shares of PixarBio to affect the share price and falsely denied that he had been instructed to do so by PixarBio’s then Chief Executive Officer.

United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Carl W. Hoecker, Inspector General of the U.S. Securities and Exchange Commission Office of Inspector General, made the announcement. Assistant U.S. Attorneys Sara Miron Bloom and Leslie A. Wright of Lelling’s Securities and Financial Fraud Unit prosecuted the case.

LAS VEGAS, Nev. – A Pennsylvania resident has been charged for allegedly kidnapping and killing a woman whom he led to believe was his girlfriend, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada and Special Agent in Charge Aaron C. Rouse for the FBI.

John Matthew Chapman, 40, was charged by criminal complaint in the District of Nevada on February 20, 2020 with one count of kidnapping resulting in death. Chapman is currently in state custody at Allegheny County jail in Pennsylvania, where he awaits his initial court appearance in federal court on the Nevada criminal complaint. The initial appearance is scheduled for March 2, 2020 in the Western District of Pennsylvania.

According to information contained in the criminal complaint, on November 14, 2019, the Bethel Park Police Department in Pennsylvania conducted a welfare check on the victim at the request of a friend. During the welfare check, neighbors stated that they had not seen the victim or her van in approximately two months, but they had recently observed a person whom they believed to be her boyfriend (Chapman) entering and leaving the victim’s residence. Inside the victim’s residence, officers found a fake CIA identification card with Chapman’s name and photograph, the victim’s cellular telephone, multiple zip ties, and a roll of duct tape.

A family member of the victim told investigators that she was communicating with the victim’s Facebook messenger account. Law enforcement determined that Chapman was pretending to be the victim, including responding to messages as the victim after her death.

On November 15, 2019, Chapman was arrested and interviewed by Bethel Park Police Department detectives. During the interview, Chapman admitted that in September 2019 he drove the victim from Bethel Park, Pennsylvania to Las Vegas, Nevada. He further admitted that he misled the victim to believe the trip was a vacation and they would potentially purchase a residence in Las Vegas. Chapman, however, had planned to kill the victim and had a “kill kit” ready before their departure to Nevada.

Chapman told investigators that he drove the victim out to the desert in Lincoln County, Nevada. Under the pretext of a photo shoot, he bound her hands and feet with plastic zip ties and affixed her to a signpost. He then applied duct tape to her mouth and nose, and watched her die from asphyxiation. After the victim’s body was later discovered, she was a “Jane Doe” unknown decedent until she was later positively identified by the Clark County Office of the Coroner/Medical Examiner through dental records.

The investigation revealed that Chapman returned to Pennsylvania afterwards, and continuously used the victim’s residence following her death and passed it off as his own.

If convicted, the maximum penalty is life in prison. A complaint is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

The case is the product of an investigation by the FBI. Assistant U.S. Attorneys Lisa Cartier-Giroux and Allison Reese are prosecuting the case.

The publicly filed criminal complaint can be found here.

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          RIVERSIDE, California– A San Bernardino County man who worked as a bankruptcy petition preparer (BPP) was arrested today on federal criminal charges that allege he acted as an unlicensed attorney in bankruptcy cases, charged fees well over those permitted by law and then repeatedly lied to the United States Bankruptcy Court.

          Richard Allen Mease, 62, of Victorville, was taken into custody this morning by special agents with the FBI. Mease is scheduled to be arraigned on an indictment this afternoon in United States District Court in Riverside.

          The indictment, which was returned Wednesday by federal grand jury, charges Mease with four counts of making a false statement in a bankruptcy proceeding. The indictment alleges that, on at least four separate occasions, Mease concealed his identity as a BPP on bankruptcy petitions he prepared on behalf of clients.

          Under applicable law and regulations, a BPP is permitted to charge fees of up to $200 to prepare and file a bankruptcy petition, but is not permitted to offer or provide legal advice.

          Mease repeatedly violated these laws and regulations since at least September 2009, charging clients fees well over the legally permitted limit and acting as an unlicensed lawyer, the indictment alleges. In response to these violations, a bankruptcy court in 2011 barred him from acting as a BPP after he had charged a client more than $1,000 for BPP services and provided legal advice, according to the indictment. In 2013, the bankruptcy court issued another order holding Mease in contempt of court for continuing to prepare bankruptcy petitions in violation of the injunction.

          But Mease allegedly continued to break the law and violate the court’s injunction against him. On four occasions between November 2016 and May 2018, Mease charged his clients multiple times over the amount permitted by law to prepare their bankruptcy petitions and caused false statements to be filed in their petitions, the indictment alleges.

          For example, in November 2016, Mease allegedly charged one client $950 for BPP services. According to the indictment, Mease caused a false statement to be made under penalty of perjury in the bankruptcy petition which stated “No” to the question, “Did you pay or agree to pay someone who is not an attorney to help you fill out your bankruptcy forms?”

          On another bankruptcy petition that contained a similar false statement, Mease charged his clients $1,550 in fees for BPP services, the indictment alleges.

          If convicted of all charges, Mease would face a statutory maximum sentence of 20 years in federal prison.

          An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

          The case was investigated by the FBI, which received substantial assistance from the Office of the United States Trustee.

          This case is being prosecuted by Assistant United States Attorney Natasha Haney of the Riverside Branch Office.

BOSTON – Utility Workers Union of America, Local 369 has rerun its 2017 election of officers under the supervision of the Department of Labor as part as a settlement resolving allegations that Local 369 failed to guarantee its members the right to vote.

The allegations of election violations were filed in April 2018, by the U.S. Attorney’s Office on behalf of the Department of Labor. The Labor-Management Reporting and Disclosure Act, which regulates labor unions, imposes certain requirements on unions in conducting their officers’ elections, including that every member has the right to vote and requiring that the union employ adequate safeguards to ensure a fair election. The Secretary alleged that Local 369 did not employ adequate safeguards and denied some members the right to vote in its 2017 officers’ election.

Local 369 and the United States Department of Labor reached a settlement agreement in September 2019. As a result of the settlement agreement, Local 369 reran one of the races from the 2017 election under the supervision of the Department of Labor. On Jan. 16, 2020, the Secretary of Labor certified the results of the election to the court as required by the settlement agreement. Last week, the court entered a final judgment in the matter, recognizing the certified results.

“The government takes these violations seriously and will hold unions accountable for ensuring that all members’ voices are heard during elections,” said United States Attorney Andrew E. Lelling.

U.S. Attorney Lelling made the announcement today. Assistant U.S. Attorneys Alexandra Brazier and Evan Panich of Lelling’s Affirmative Litigation Unit handled the matter.

McALLEN, Texas – Two local women have admitted to conspiring with each other to import approximately 50 kilograms of 99% pure meth from Mexico, announced U.S. Attorney Ryan K. Patrick.

Helen Garza, 43, Rio Grande City, and Herminia Cantu-Garcia, 43, Roma pleaded guilty today and Feb. 26, respectively.

The woman planned to import the narcotics Dec. 4, 2019. On that date, Garza drove a car from Mexico and attempted to enter the United States through the Roma Port of Entry. Authorities inspected the vehicle and found hidden compartments within its tires. Upon further examination, they ultimately found multiple bundles containing 50 kilograms of meth with a value of approximately $170,000.

Garza admitted she knew there were drugs in the car.

Further investigation revealed Cantu-Garcia had coordinated the drug trafficking with Garza and other individuals.

U.S. District Judge Randy Crane accepted the pleas and has set sentencing for May 4 and 12 for Cantu-Garcia and Garza, respectively. At that time, both women face up to life in federal prison and a possible $10 million fine.

They both have been and will remain in custody pending that hearing.

Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with assistance from Border Patrol and Customs and Border Protection. Assistant U.S. Attorney Kristina Pekkala is prosecuting the case.

John H. Durham, United States Attorney for the District of Connecticut, announced that ZIMER KALICI, 56, of Waterbury, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to two years of probation, the first three months of which Kalici must serve in home confinement, for theft of Social Security benefits.

According to court documents and statements made in court, individuals are not eligible for Social Security benefits when they permanently relocate to live outside of the U.S., and eligibility for Social Security benefits terminates upon death.  An investigation by the Social Security Administration Office of Inspector General (“SSA OIG”) revealed that Kalici’s father, a Social Security benefits recipient, relocated from the U.S. to Macedonia in 2009, and died in January 2010.  Kalici did not report his father’s death to the Social Security Administration and, between 2009 and 2018, deposited approximately $52,417.84 worth of Social Security checks intended for his father into his own personal bank account.

In November 2018, during an interview with SSA OIG investigators, Kalici stated that his father was still alive and had left the U.S. for Macedonia in May 2018.  Kalici subsequently provided SSA OIG with a false funeral internment certificate that represented his father had died on November 26, 2018.

Judge Meyer ordered Kalici to pay full restitution.

On September 23, 2019, Kalici pleaded guilty to one count of theft of public money.

Kalici also must perform 250 hours of community service while on probation.

This case was investigated by the Social Security Administration Office of Inspector General and was prosecuted by Assistant U.S. Attorney Margaret M. Donovan.

SALT LAKE CITY – A federal grand jury returned an indictment Thursday afternoon charging a Price, Utah, resident with one count of tax evasion and eight counts of aiding and assisting in the preparation of false/fraudulent documents.  At the time of the alleged crimes, he lived in Draper and Bluffdale.

The indictment alleges James Cunningham attempted to evade payment of federal income taxes he and his spouse owed for calendar years 2000, 2001, and 2013 – an amount of approximately $450,000 in income tax, penalties, and interest. The charges allege Cunningham took several affirmative steps to evade paying taxes, including having a person identified in the indictment as M.C. open a personal bank account at Nevada Bank & Trust which he used for his own purposes.  M.C. never used or accessed the account, according to the indictment.

Cunningham used the bank account to receive commissions he earned from his sale of insurance products.  As an example, the indictment alleges a deposit of $3,874.50 was made around May 15, 2013.  By depositing the money into an account he controlled but was not named on, Cunningham concealed his income from the United States.  In another instance, the indictment alleges that in June 2014 Cunningham caused $99,999.99 of his commissions to be deposited into a bank account held by J.C.

The indictment also alleges Cunningham used other people to obtain insurance licenses so he could sell insurance products and earn income under other names. In one instance, according to the indictment, he had M.C. obtain a life insurance license.  Cunningham, the indictment alleges, used M.C.’s license to earn commissions totaling $18,891.02. Cunningham also used and controlled bank accounts belonging to other people to receive commission income.

The eight counts of aiding or assisting in the preparation of false or fraudulent documents charge Cunningham with willfully aiding and assisting in the preparation and submission of several different tax forms that were submitted to the IRS. The indictment alleges the returns were materially false and fraudulent and that at the time of preparation and submission to the IRS, Cunningham knew the taxpayers were not entitled to claim deductions in the claimed amounts and that the reported income was false.

A summons will be issued to Cunningham to appear for an initial appearance on the charges. The tax evasion count carries a potential maximum penalty of five years in prison.  Each of the eight counts of aiding and assisting a fraudulent tax return carries a three year maximum sentence.

Indictments are not findings of guilt.  Individuals charged in indictments are presumed innocent unless or until proven guilty in court.

The U.S. Attorney’s Office in Salt Lake City is prosecuting the case.  IRS-Criminal Investigation special agents are conducting the investigation.

Jim Lundi, 38, of Miami, was sentenced to a total of 300 months in prison by U.S. District Judge Robert N. Scola, Jr. after pleading guilty to sex trafficking a minor.

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, FBI’s Miami Field Office, and Alfredo Ramirez, Director, Miami-Dade Police Department (MDPD), made the announcement.

According to the court record, in November 2017, the defendant met the 16-year-old victim, who was homeless and addicted to drugs, and saw an opportunity. The victim began living with him in an abandoned house in Miami.  Shortly thereafter, the defendant discussed going into “business” with the victim.  The defendant taught the victim how to use websites such as Backpage to advertise sex for money.  He took nude photographs of the victim and then posted them on various websites including Backpage and listed his phone number in the advertisements as the method of contact.The defendant communicated with potential customers who responded to the advertisements and set up dates for the victim.  Before meeting with a customer, the defendant often told the victim, “condoms, money, don’t play games.”  He set the prices for the commercial sex acts and kept all of the money.  The defendant regularly beat the victim for not making enough money from commercial sex acts or for trying to keep some of the money that she had earned.  He  frequently only gave the victim small amounts of drugs at a time, knowing that she had a strong addiction, in order to maintain control over her. 

Also according to the court record, sometime in January 2018, the defendant transported the victim to a motel in Hollywood, Florida, where they stayed for approximately two weeks. During this time, the victim engaged in commercial sex acts inside the motel room while the defendant hid in the closet.  The defendant then took the victim back to Miami because he wanted to make more money.  After returning to Miami, the victim escaped from the defendant after he beat her and dragged her down a street.  The victim broke away from the defendant and ran into a nearby restaurant – scraped, battered, and without pants.  A good samaritan called the police and the victim was transported to a hospital. 

Following his release from prison, Lundi will be on supervised release for 25 years and must register as a sexual offender (Case No. 19cr20075).

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 case was investigated by the FBI’s Child Exploitation and Human Trafficking Task Force, in partnership with MDPD’s Human Trafficking Squad, and assistance from the FBI Behavioral Analysis Unit and Operational Technology Division, National Center for Missing and Exploited Children, and the Miami-Dade State Attorney’s Office.

U.S. Attorney Fajardo Orshan commended the investigatory efforts of the FBI Miami Child Exploitation and Human Trafficking Task Force, MDPD, and all those who assisted in this matter.  This case was prosecuted by Assistant U.S. Attorneys Jessica Kahn Obenauf and Rilwan Adeduntan.

To report suspected human trafficking or to obtain resources for victims, please call 1-888-373-7888; text “BeFree” (233733), or live chat at HumanTraffickingHotline.org.  The toll-free phone, SMS text lines, and online chat function are available 24 hours a day, 7 days a week, 365 days a year.  Help is available in English, Spanish, Creole, or in more than 200 additional languages.  The National Hotline is not managed by law enforcement, immigration or an investigative agency.  Correspondence with the National Hotline is confidential and you may request assistance or report a tip anonymously.

To learn more about the National Resource Hotline visit www.humantraffickinghotline.org.  To learn more about the U.S. Department of Justice’s efforts to combat human trafficking visit www.justice.gov/humantrafficking.

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

KAUAI, Hawaii – Kenji M. Price, the United States Attorney for the District of Hawaii, Jonathan E. Blais, Special Agent in Charge of the Seattle Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”), Todd Raybuck, Chief of the Kauai Police Department (“KPD”), and Lucia Cabral-Dearmas, Department of Homeland Security, Homeland Security Investigations, Honolulu Office (“HSI”) announced the unsealing of an Indictment today charging ARTHUR BRUN, and 11 other defendants with conspiring to distribute methamphetamine. The Indictment also charges substantive drug trafficking offenses, an assault on a federal law enforcement officer, witness tampering, evidence tampering, and firearm offenses. As alleged in the Indictment, BRUN participated in these offenses while serving as an elected member of the Kauai County Council.

Eleven of the defendants were arrested yesterday and will be arraigned in federal court later today before the Honorable Rom Trader, United States Magistrate Judge. The twelfth defendant, ORLANDO MANGUCHEI, was already in federal custody serving a sentence for violating the terms of supervised release.

As alleged in the Indictment unsealed yesterday[1]:

From at least June 2019, and continuing to in or about January 2020, ARTHUR BRUN, aka “Ata,” MALUELUE UMU, aka “Malu,” KELVIN KAUWILA KAI, aka “Kauwila,” STEVEN KELIIKULI, KANIU HUIHUI, SHEENA MILLARE, EFREN YANOS, KIRSTEN MAKANOE AYAU, aka “Makanoe,” ORLANDO MANGUCHEI, aka “Ole,” ROBBY SILVA, HAIDEE SUEYASU, and PHRYSTAL BACIO, the defendants, and others known and unknown, conspired to distribute and possess with intent to distribute a mixture and substance containing a detectable amount of methamphetamine.

BRUN ran this drug trafficking conspiracy while, at the same time, serving as an elected member of the Kauai County Council and the Vice Chair of its Public Safety & Human Services Committee. One of BRUN’s suppliers of methamphetamine was UMU, who was a “shot caller,” or leader, of the United Samoan Organization, a gang that operates both inside and outside of the prison system in the State of Hawaii.

On or about October 29, 2019, BRUN assaulted a state law enforcement officer who was acting in cooperation with and under the control of federal officers. BRUN committed this assault during a traffic stop in an effort to conceal methamphetamine that he had in his possession at the time. The officer asked BRUN to get out of his car and gave him other instructions. Instead of complying with the officer’s commands, BRUN placed the vehicle in drive and sped off, injuring the police officer, who had his hand and shoulder in the car as he tried to remove the keys from the ignition. BRUN then led the police on a high speed chase during which he threw a backpack containing approximately one pound of methamphetamine out of the car.

After the assault, BRUN made efforts to conceal the methamphetamine to avoid its use in any official proceeding by attempting to corruptly persuade another person to provide false information to the KPD about the ownership of the backpack.

Multiple defendants possessed or conspired to possess firearms or ammunition. In January 2020, KELIIKULI possessed a Smith and Wesson .38 Special, and six rounds of ammunition, after having been convicted of a felony. Also in January 2020, SILVA possessed various sizes, calibers, and types of ammunition after having been convicted of a felony. In about October 2019, BRUN conspired to supply a firearm and ammunition to MANGUCHEI, despite both men having previously been convicted of a felony.

* * *

Charts containing the name, ages, charges, and maximum penalties for the defendants are set forth below. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.

U.S. Attorney Price praised the outstanding investigative work of the ATF, KPD, and HSI. He also thanked the United States Marshals Service Fugitive Task Force, the Federal Bureau of Investigations, the United States Postal Inspection Service, and the Coast Guard Investigative Service for their assistance.

Assistant U.S. Attorneys Sean Van Demark and Micah Smith are handling the prosecution.

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

_________________

[1] As the introductory phrase signifies, the entirety of the text of the Indictment is merely an accusation and that the defendant(s) are presumed innocent until and unless proven guilty.

Hattiesburg, Miss. – Brothers Victor Smith, 43, and Michael Smith, 42, of Hattiesburg, were found guilty on Wednesday of possession of marijuana with the intent to distribute and possession of stolen firearms, announced U.S. Attorney Mike Hurst, Special Agent in Charge Kurt Thielhorn with the Bureau of Alcohol, Tobacco, Firearms and Explosives, and Special Agent in Charge Michelle A. Sutphin with the Federal Bureau of Investigation in Mississippi.  The jury returned the verdict following a two-day trial before Senior U.S. District Judge Keith Starrett in Hattiesburg.

On August 25, 2016, Hattiesburg Police officers, supported by other law enforcement agencies, responded to a call for service at the Southern Village Apartments in Forrest County.  Upon arrival, officers were directed to the Smith brothers’ apartment, where they found over half a pound of marijuana bagged for distribution, scales, and five firearms, two of which were stolen.  On April 3, 2019, Victor Smith and Michael Smith were charged in a federal criminal indictment.

Victor and Michael Smith will be sentenced by Judge Starrett on June 10, 2020, beginning at 10:00 a.m. in Hattiesburg. 

The case was investigated by the Hattiesburg Police Department, Bureau of Alcohol Tobacco, Firearms, and Explosives, and the Federal Bureau of Investigation.  The case is being prosecuted by Assistant United States Attorneys Andrew W. Eichner and Erin Chalk.

This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. 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.

Indianapolis – United States Attorney Josh J. Minkler announced today Sandra M. Urich, 54, Indianapolis, was sentenced in federal court for her role in a scheme to steal over $770,000 from her Indianapolis-based employer. Urich was sentenced to 27 months in federal prison by U.S. District Court Judge James R. Sweeney II.

 “Businesses must be able to trust their employees,” said Minkler. “This case should serve as a reminder that those who steal from their employer by exploiting that trust, must be, and will be, held accountable.”

For almost 20 years, Urich was a trusted employee who handled order processing and payments for an Indianapolis business that manufactured and distributed products throughout the United States.

In 2011, Urich began secretly diverting customers’ credit card payments to her personal bank accounts. After receiving a customers’ credit card order, Urich would process “refunds” for certain orders. Instead of refunding the money to the customer’s credit card account, she entered her personal debit card numbers so the money was “refunded” to her personal bank accounts.

Urich’s scheme went undetected until the company uncovered her fraud in 2019. Over several years, Urich had taken multiple steps to cover her tracks. For instance, while she ensured that customers actually received the products they ordered, she also erased any reference to the customers’ orders she stole in the company’s shipping and accounting systems.

She would offer discounts to customers if they paid for shipping costs, to avoid the company incurring shipping costs for stolen orders that had been erased from the system.

To avoid detection, she stole relatively small amounts at a time, often just a few hundred dollars, and used specific dollar figures so as to not raise suspicions with the banks and credit card companies.

 In over seven years, Urich diverted customer credit card payments nearly 1,000 times, and stole $771,927.04, which she spent largely on personal meals, clothing, and vacations.

This case was investigated by the Federal Bureau of Investigation and the Indianapolis Metropolitan Police Department.

“Ms. Urich abused her position of trust for one reason – simple greed. The fraud scheme she perpetrated not only jeopardized her employer’s business and reputation, but unsuspecting customers whose money she pocketed over the years,” said Special Agent in Charge, Grant Mendenhall, FBI Indianapolis. “This sentence sends a clear message that such illegal practices will not be tolerated. The FBI and our law enforcement partners will continue to aggressively pursue individuals who steal from honest, hardworking Americans.”

According to Assistant United States Attorney Nick Linder, who prosecuted the case for the government, Urich was sentenced to 27 months imprisonment, ordered to pay $771,927.04 in restitution, and serve 2 years of supervised release.

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

United States Attorney Matthew D. Krueger announced that on February 27, 2020, a jury found Brian Whitton of Waukesha, Wisconsin, guilty of arson of a commercial business, mail fraud, use of fire to commit another felony offense, and making a false statement to federal law enforcement agent.   After a four-day trial before the Honorable William C. Griesbach, Whitton was found guilty of intentionally setting fire to his business, a bar called “The Stage Off Main,” on March 25, 2017.  The bar was located at 854 Martin Street in Waukesha, Wisconsin. 

At the time of the fire, the building housed both Whitton’s bar and an occupied rental unit.  Whitton was also convicted of executing a mail fraud scheme premised  upon his submission of a fraudulent, sworn proof of loss claim to his insurance carrier, United States Liability Insurance Company, LLC, in which falsely claimed that the fire was the result of an accident.   Finally, the jury found Whitton guilty of lying to an agent of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”) during the course of the investigation. 

The United States Attorney commented, “Arson is an extremely dangerous crime that puts the lives of the public and first responders in danger.  This conviction is a testament to the strong partnership between ATF, the Waukesha Police and Fire Departments, and the United States Attorney’s Office.  Together with our law enforcement partners, the United States Attorney’s Office is committed to utilizing all available resources to bring dangerous arsonists like Brian Whitton to justice.”  

Whitton is scheduled to be sentenced on May 8, 2020.  He faces a mandatory minimum sentence of 5 years’ imprisonment for the arson conviction, to be followed by a consecutive, mandatory minimum sentence of 10 years’ imprisonment for the use of fire to commit another felony conviction.  The maximum penalty for the mail fraud conviction is 20 years in prison, a $250,000 fine, and a term of supervised release.  Whitton also faces up to 5 years’ imprisonment, a $250,000 fine, and a term of supervised release for the false statement conviction. 

The successful prosecution of Whitton was the direct result of a lengthy investigation conducted by ATF, the Waukesha Police Department and the Waukesha Fire Department.  The case was prosecuted by Assistant United States Attorneys Kelly B. Watzka and Timothy W. Funnell.      

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PHILADELPHIA – United States Attorney William M. McSwain announced that Joseph Johnson, Jr., 49, of Fort Washington, Maryland, was sentenced to 32 months’ imprisonment and three years’ supervised release by United States District Court Judge Harvey Bartle III for aggravated identify theft and making false statements in a federal court filing, stemming from his attempt to interfere in a civil lawsuit between Andrea Constand and former Montgomery County District Attorney Bruce Castor.

The defendant was convicted after trial in November 2019 for stealing the identity of Constand’s lawyer and using her identity to make a false filing in federal court in the civil case. In January 2016, Johnson sent harassing emails Constand’s lawyer threatening to expose Constand’s home address and that of one of her family members because Johnson believed her allegations against Bill Cosby to be false.

Then, on February 1, 2016, the defendant filed a false document in the civil suit. In order to make the filing appear legitimate, Johnson forged the signature of Constand’s counsel to make the filing appear to have been submitted as part of the litigation. United States District Court Judge Eduardo Robreno, before whom the case was pending, struck the document from the civil case docket after learning of the fraud perpetrated by the defendant.

“This trial conviction and subsequent sentence highlights our Office’s continued vigilance to ensure the integrity of our federal courts,” said U.S. Attorney McSwain. “The role of attorneys in the justice system is of paramount importance. Attempting to impersonate one -- as the defendant did here -- is an affront to our collective understanding of justice and is worthy of serious punishment.”

“While the nature of this identity theft may seem more unusual than most, it’s no less consequential,” said Tara A. McMahon, Acting Special Agent in Charge of the FBI’s Philadelphia Division. “Joseph Johnson filed a false legal document under a real lawyer’s name. Fraudulent interference in federal court cases poses a clear threat to the nation’s justice system. Mr. Johnson now will be held to account for his actions.”

The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Linwood C. Wright, Jr.

Seattle – A couple who resided on the Upper Skagit Indian Reservation pleaded guilty today and yesterday to conspiracy to distribute heroin, announced U.S. Attorney Brian T. Moran.  RYAN ERIC FLETCHER, 30, pleaded guilty on February 27, 2020, and Upper Skagit member LINNETTE TORRES, 29, pleaded guilty today in U.S. District Court in Seattle.  Both face up to twenty years in prison when sentenced by U.S. District Judge Robert S. Lasnik on May 15, 2020.

“The FBI and Upper Skagit Police Department worked closely and collaboratively on this case to remove a chronic source of heroin from the Upper Skagit community,” said U.S. Attorney Brian T. Moran.  “I am committed to working with our Tribal partners to combat the scourge of drug addiction in our communities.”

According to records filed in the case, FLETCHER was known to law enforcement in the Upper Skagit and had been ordered excluded from the reservation.  Nevertheless, he violated that exclusion order and with TORRES conspired to sell heroin in the community.  Last summer a person working with law enforcement purchased heroin from both FLETCHER and TORRES.  On August 21, 2019, law enforcement served a court-authorized search warrant on the couple’s home and on a storage unit they controlled.  In the home, they found heroin, a loaded Glock pistol, a rifle, and various types of ammunition.  In the storage unit, they found an AR-15 style firearm, another Glock, and a variety of pills, as well as other drug dealing paraphernalia.

The case was investigated by the FBI and the Upper Skagit Police Department.

The case is being prosecuted by Assistant United States Attorneys Chantelle Dial and J. Tate London.

PHILADELPHIA – United States Attorney William M. McSwain and Principal Deputy Assistant Attorney General Richard E. Zuckerman, announced that Nvahbulai “Kosh” Quisiah, 44, of Philadelphia, PA was convicted today after a jury trial on charges of preparing false tax returns, aggravated identity theft and related crimes.

As the owner and operator of a Philadelphia-based tax preparation business on Woodland Avenue, First Premier Tax Service also d/b/a Kosh & Associates, the defendant prepared tax returns for clients that fraudulently inflated itemized deductions, claimed fictitious Schedule C businesses, and claimed false dependents for tax years 2009 through 2016.  This resulted in inflated tax refunds for his clients to which the clients were not entitled. Quisiah also bought and sold the personal identifying information of children in order to falsely claim the children as dependents on tax returns.

“Today’s verdict serves as a reminder to tax preparers (and tax payers) as we find ourselves in the middle of tax season: don’t try to defraud the federal government,” said U.S. Attorney McSwain. “When tax preparers fraudulently inflate tax refunds, every honest American tax payer loses. My Office will continue to work with our federal partners here and in Washington D.C. to investigate and prosecute these crimes.”

“The Justice Department and the IRS will continue to vigorously investigate and prosecute corrupt tax return preparers,” said Principal Deputy Assistant Attorney General Richard E. Zuckerman.  “Preparing false tax returns for clients, and using minors’ identities to do so, will not be tolerated.”

“When people like Mr. Quisiah cheat the tax system, they victimize the hard-working taxpayers of America”, said Guy Ficco, Special Agent in Charge of IRS-Criminal Investigation.  “Today’s verdict hopefully shows other potential criminals that the Special Agents of IRS-CI are working every day to protect the integrity of the tax system.”  

The defendant faces a mandatory minimum sentence of two years’ imprisonment for aggravated identity theft, and up to a maximum of 89 years’ imprisonment for the other convictions of conspiracy, wire fraud, and preparing false tax returns.

The case was investigated by the Internal Revenue Service’s Criminal Investigation Division and is being prosecuted by Assistant United States Attorney Anthony Wzorek and Department of Justice Tax Division Attorney Ann M. Cherry.

BOSTON – The U.S. Attorney’s Office announced today that pharmaceutical company Sanofi-Aventis U.S., LLC (“Sanofi”), has agreed to pay $11.85 million to resolve allegations that it violated the False Claims Act by paying kickbacks to Medicare patients through a purportedly independent charitable foundation, The Assistance Fund (“TAF”). 

When a Medicare beneficiary obtains a prescription drug covered by Medicare Part B, the beneficiary may be required to make a partial payment, which may take the form of a co-payment, co-insurance, or deductible (collectively “co-pays”). These co-pay obligations may be substantial for expensive medications. Congress included co-pay requirements in the Medicare program, in part, to encourage market forces to serve as a check on health care costs, including the prices that pharmaceutical manufacturers can demand for their drugs. The Anti-Kickback Statute prohibits pharmaceutical companies from offering or paying, directly or indirectly, any remuneration – which includes money or any other thing of value – to induce Medicare patients to purchase the companies’ drugs.   

Sanofi sells Lemtrada, a multiple sclerosis drug that costs nearly $100,000 per patient per year. Medicare co-pays for Lemtrada can be many thousands of dollars per year. The cost of the drug often presents significant barriers to access for Medicare patients.

The government alleged that TAF, an entity claiming 501(c)(3) status for tax purposes, operates funds, including a fund for MS patients, that pay the co-pays of certain patients, including Medicare patients, who were prescribed Lemtrada. TAF allegedly raised its maximum per-patient grant allocation to $20,000 specifically to accommodate Lemtrada patients. During the relevant time period, TAF’s MS fund frequently ran out of funding and was closed to new patients. If any patients applied for co-pay assistance at a time when the MS fund was out of funding and closed to new patients, TAF did not maintain a wait list of such patients. As a consequence, whenever TAF’s MS fund opened to new patients, the fund provided grants to the patients who applied immediately after the opening and did not provide grants to patients who had sought to apply earlier but at a time when the fund was closed.

The United States further alleged that Sanofi made payments to TAF not with a charitable purpose but rather with the intention of using TAF as a conduit to pay the financial obligations, including Medicare co-pay obligations, of patients taking Lemtrada, and that Sanofi’s payment through TAF of Medicare co-pays for Lemtrada violated the Anti-Kickback Statute. To effectuate its scheme, Sanofi worked with its third-party reimbursement hub to identify Medicare patients for whom physicians had prescribed Lemtrada, but who had not yet received infusions of the drug because they lacked sufficient funds to afford the co-pays for Lemtrada. Sanofi made nine payments to TAF during 2015 and 2016. At the times Sanofi made eight of these nine payments, TAF’s MS fund had run out of funding, and was closed to new patients. In conjunction with its payments to TAF, and knowing that TAF’s MS fund did not maintain wait lists and would fund the first patients who applied for assistance after the fund received new funding, Sanofi instructed its hub quickly to refer as many Lemtrada patients as possible to the TAF MS fund. As a result, when TAF’s MS fund opened with funding from Sanofi, Lemtrada patients received a disproportionately large share of the Medicare co-pay grants TAF issued and patients taking MS drugs other than Lemtrada received a disproportionately small share of the Medicare co-pay grants TAF issued. 

“According to the allegations in today’s settlement agreement, Sanofi used a supposed charity as a conduit to funnel money to patients taking Sanofi’s very expensive drug, all at the expense of the Medicare program,” said United States Attorney Andrew E. Lelling.  “This office will continue to pursue drug companies for violations of the anti-kickback laws.  We commend Sanofi for swiftly resolving the government’s allegations.” 

“Sanofi sought to undermine the Medicare program through its use of kickbacks disguised as routine charitable donations aimed at helping patients battling multiple sclerosis and who were struggling with costly copays,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “They rigged the system so those taking its drug Lemtrada gained an unfair advantage over patients using other medications, and with today’s settlement, they are finally being held accountable for their actions.”

Sanofi has also entered into a corporate integrity agreement (CIA) with the Department of Health and Human Services Office of Inspector General (HHS-OIG). The CIA requires, among other things, that Sanofi implement measures designed to ensure that arrangements and interactions with third-party patient assistance programs are compliant with the law. In addition, the CIA requires reviews by an independent review organization, and compliance-related certifications from company executives and Board members.

A limited liability partnership formed by a former employee of Sanofi’s predecessor, Genzyme Corporation, brought these allegations through a whistleblower lawsuit. Under the qui tam provisions of the False Claims Act, private individuals, known as relators, can sue on behalf of the government for false claims and share in any recovery.  In connection with today’s announced settlement, the partnership will receive approximately $2.7 million of the recovery. 

U.S. Attorney Lelling, HHS-OIG Chief Counsel Demske and FBI SAC Joseph Bonavolonta made the announcement today. The matter was handled by Assistant U.S. Attorneys Gregg Shapiro and Evan Panich of Lelling’s Office, with assistance from Kelley Hauser, Trial Attorney with Department of Justice’s Civil Division.

ALEXANDRIA, Va. – A Nigerian woman was sentenced today to 10 years in prison and ordered to pay over $377,000 in restitution for leading a conspiracy to import more than five kilograms of cocaine into the United States, as well as to her role in a separate bank fraud scheme, and to making false statements relating to fraudulent claims submitted to Medicaid for reimbursement.

“Temitope Ayoni Olaiya, aka “Tammy”, engaged in multiple schemes carried out against the United States, implicating our healthcare system, financial system, our borders, and drug enforcement regime,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Despite coming to this country legally more than a decade ago and living on a green card, Olaiya chose to flout the law in pursuit of a diverse portfolio of criminal activities.”

According to court documents, Olaiya, 41, who resided in Hyattsville, Maryland, and is a legal permanent resident, recruited men from the greater Washington, D.C. area to act as drug couriers; i.e., to travel to foreign countries to obtain drugs to bring back into the United States. Olaiya opened bank accounts in the couriers’ names, assisted them in obtaining passports and visas, and booked their travel arrangements. The couriers that Olaiya recruited traveled primarily to São Paulo, Brazil, where they picked up kilogram quantities of cocaine hidden in the lining of soft-sided briefcases or attaché cases. Altogether, law enforcement seized nearly seven kilograms of cocaine at three different United States airports from three separate couriers recruited by Olaiya.

In addition to the cocaine importation scheme, Olaiya also submitted falsified and fraudulent claims to the D.C. Department of Health Care Finance (DHCF), a health care benefit program funded by Medicaid. Olaiya worked as a personal care aide for various home health agencies in the Washington D.C. area, and in order to receive payment for services rendered, Olaiya was required to submit timesheets signed by her clients documenting the services rendered. Instead of submitting time sheets for time actually worked providing health care services, Olaiya recruited Medicaid recipients to act as her “patients” and to sign her falsified timesheets in return for a small amount of money as a kickback. On multiple occasions, Olaiya billed DHCF for home health services she claimed to have provided while she was out of the country.

Separate and apart from the cocaine importation and the home health services scheme, Olaiya also used her African goods business in Maryland to carry out a bank fraud. Olaiya used accounts with payment platforms Square and Stripe to make fraudulent charges on stolen credit card numbers. Between June and December 2017, Olaiya submitted, or caused to be submitted, $381,500 in fraudulent credit card charges to the Stripe account. Thereafter, Olaiya switched over to Square, and in the course of about two months, racked up more than $100,000 in fraudulent charges. When Square informed Olaiya that the true account holder had challenged the transaction, Olaiya created handwritten, falsified invoices documenting items purportedly purchased by the account holder, and provided the fake invoices to Square.

This case was prosecuted as part of Organized Crime Drug Enforcement Task Force (OCDETF) Operation Girl From Ipanema. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.  The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.

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 Maureen R. Dixon, Special Agent in Charge of the Office of Inspector General for the U.S. Department of Health and Human Services (HHS), made the announcement after sentencing by U.S. District Judge Liam O'Grady. Assistant U.S. Attorney Katherine E. Rumbaugh 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-294 and 1:19-cr-323.

U.S. Attorney Mark A. Klaassen issued a statement today on the Northern Arapaho Tribe’s Resolution Declaring a State of Emergency of Methamphetamine Usage on the Wind River Reservation. 

“Methamphetamine distribution and abuse has been a problem in Wyoming and on the Wind River Reservation for a long time, and I understand the frustration, the concern, and the sense of urgency on this issue,” said U.S. Attorney Klaassen.  “Here in Wyoming, methamphetamine is by far our most significant drug issue.  The production and trafficking of ever-purer forms of the drug from Mexico have lowered prices and made this addictive substance even more prevalent in our communities – with devastating consequences.  We are not alone in this fight, as many western states have seen a re-emergence of methamphetamine as a drug of particular concern.”

Northern Arapaho Tribal leaders and elders announced yesterday a resolution and formation of a tribal task force to combat the distribution and abuse of methamphetamine on the Reservation.  Members of the Tribe’s Business Council, elders, judges, social services and law enforcement all described the ravages caused by methamphetamine abuse on the Reservation community and voiced their joint support for the tribal task force.

“The reality is there are no quick and easy answers, and the methamphetamine problem will not be solved through law enforcement alone,” said U.S. Attorney Klaassen.  “So many factors contribute to drug abuse and the demand it creates for these substances.  We must address the problem from all sides and understand the root causes.  All of us must work to create strong families, communities, schools and other social structures that provide positive environments – places that encourage drug resistance and provide paths to economic opportunity.  We also need effective social services, mental health, and addiction recovery programs to help those who seek a path out of addiction toward a more productive life.  I appreciate that the tribal resolution recognizes the need for this multi-faceted approach.”    

The U.S. Attorney’s office is responsible for prosecuting drug trafficking across the State of Wyoming and on the Wind River Reservation, in conjunction with federal, state and tribal law enforcement.  Working with a multi-agency and multi-jurisdictional investigative task force that is responsible for the investigation of drug traffickers, both on and off the Reservation, the U.S. Attorney’s office aggressively prosecutes all drug crime with the overarching goal of shutting down and disrupting the supply, distribution, use and abuse of controlled substances, including methamphetamine.

Recent successful felony prosecutions involving the Wind River Indian Reservation have resulted in the prosecution of ten drug-trafficking defendants.  These prosecutions include defendants operating off-reservation who supplied persons on the Reservation involved in distributing user quantities of methamphetamine to addicted persons residing on tribal lands. 

“We have had some recent success, but there is always more that can be done,” said U.S. Attorney Klaassen.  “My office is committed to doing our part and working with the Tribes to improve our collective efforts to combat drug crime, particularly methamphetamine, on the Wind River Indian Reservation and across the state.  We look forward to working with the Northern Arapaho Task Force as an opportunity to re-evaluate our efforts and make sure we are dedicating the federal resources necessary and taking the right approach to the fight against methamphetamine.”

Baltimore, Maryland – U.S. District Judge Richard D. Bennett today sentenced Ivanovich Constanzo Mercedes-Soriano, a/k/a German Pena-Lopez, age 31, of Aberdeen, Maryland, to 63 months in federal prison, followed by one year of supervised release, for conspiring to distribute heroin and cocaine and for making a false claim to U.S. citizenship.  

The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge John Eisert of Homeland Security Investigations (HSI) Baltimore; and Colonel Woodrow W. Jones III, Acting Superintendent of the Maryland State Police (MSP).

According to his plea agreement, Mercedes-Soriano was born in the Dominican Republic and is illegally in the United States. At least as early as June 2017 and continuing until September 26, 2018, Mercedes-Soriano conspired with Elvin Solano-Pena, a/k/a Joseph Allen Fields, and Herme Soriano, a/k/a Miguel Urraca-Gonzalez, and others to distribute crack cocaine and 1000 grams or more of heroin to drug users that lived primarily in Cecil County, Maryland. 

In July 16, 2018, Maryland State Police (MSP) developed information that drug users were using a designated phone number, referred to as the “dispatch phone,” to purchase drugs. On July 23, 2018, a drug user called the dispatch phone and spoke to a man who told the customer to meet him at a grocery store in Elkton.  Mercedes-Soriano arrived in a black Honda Civic and sold the customer one gram of heroin and .4 grams of crack cocaine.   

On August 3, 2018, the same drug user called the dispatch phone and spoke to Solano-Pena.  After the call, Soriano arrived at the agreed meeting place and sold the customer .6 gram of heroin and .6 gram of crack cocaine.  MSP stopped the vehicle; Soriano was driving, and MSP identified him as the man who sold the drugs.  After searching the car, MSP recovered another .4 gram of heroin and $648 in cash, as well as a crack pipe and burnt cocaine.  Soriano provided a false name at the time.  MSP used social media to attempt to identify him and found pictures of Soriano with Mercedes-Soriano.  The two men were later identified as brothers.

Mercedes-Soriano and Soriano were illegal aliens using fraudulently obtained driver’s licenses in their respective alias names.  On September 6, 2018, both men were taken into custody by Immigration and Customs Enforcement (ICE) following a traffic stop of the black Honda Civic they were driving.  Both men produced fraudulent documents and lied as to their identity, citizenship, and travel to the United States.  Both Mercedes-Soriano and Soriano were interviewed by ICE officers after being advised of their rights in Spanish and falsely swore that they were U.S. citizens, born in Puerto Rico.  In fact, both men are citizens of the Dominican Republic.

A towing company retrieved the black Honda Civic and stored it in Cecil County.  The car was registered in the name of co-defendant Oscar Pilarte-Rivera, a close friend of Mercedes-Soriano, Solano-Pena, and Soriano.  Pilarte-Rivera provided assistance to the drug dealers, among other things, by allowing them to use a car registered in his name, knowing the men were involved in drug trafficking.  Pilarte claimed possession of the black Honda from police custody.

On September 25, 2018, Mercedes-Soriano called Pilarte-Rivera from jail.  The call was in Spanish but Mercedes-Soriano indicated he had tried to call Pilarte-Rivera three times but that he had not answered the phone.  The men discussed items in Mercedes-Soriano’s apartment that needed to be picked up.  As a result, HSI obtained a federal search warrant for Mercedes-Soriano’s apartment on Stevens Circle in Aberdeen, Maryland and executed it on September 26, 2018.  In addition to identity documents for Mercedes-Soriano and other records, law enforcement recovered drugs packaged for distribution.  After laboratory testing, it was determined the drugs seized included approximately 160 grams of heroin, 222 grams of heroin and fentanyl, and approximately 32 grams of crack cocaine.  The packaging tested positive for Mercedes-Soriano’s DNA.   

In his plea agreement, Mercedes-Soriano admitted he sold between one and three kilograms of heroin.  Mercedes-Soriano’s phone records reflect the frequency of calls with drug customers and corroborated their individual testimony about drug sales.

As part of his plea agreement and sentence, Mercedes-Soriano will be deported to the Dominican Republic upon his release from prison.

Pilarte-Rivara, Solano-Pena, and Soriano previously pleaded guilty to federal charges for their respective roles in the drug conspiracy and received sentences ranging from time served to four years in federal prison.

United States Attorney Robert K. Hur commended the HSI Baltimore and the Maryland State Police for their work in the investigation and thanked U.S. Immigration and Customs Enforcement’s Enforcement Removal Operations for its assistance.  Mr. Hur thanked Assistant U.S. Attorneys Sandra Wilkinson and Paul Riley, who prosecuted the case.

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BOSTON – A Hyde Park man was charged yesterday in federal court in Boston with bank robbery.

Paul Whooten, 56, was charged in a criminal complaint with one count of armed bank robbery. Whooten was detained following an initial appearance before U.S. District Court Magistrate Judge M. Page Kelley. 

 According to the charging documents, on Dec. 21, 2019, an individual wearing black clothing and a mask walked into a branch of Rockland Trust Bank in Hyde Park with what appeared to be a firearm. The robber pointed the firearm at the teller and said, “Give me all of your money.” The teller filled the robber’s bag with cash, and the robber fled the bank on foot. Bank surveillance cameras captured images of the robber wearing a long dark coat, black reflective jacket, a black knit hat, black sunglasses and gloves. A police officer stationed inside of the bank broadcast a description of the robber.

 As alleged in the complaint, another police officer observed an individual matching the description of the robber walking down Truman Parkway. The officer issued verbal commands to the robber to drop the gun and get on the ground. The robber complied and was apprehended by law enforcement. A black rifle-type BB gun and bag of cash were recovered from the robber, who was identified as Whooten.

 The charging statute provides for a sentence of up to 25years in prison, five years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

 United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Boston Police Commissioner William Gross made the announcement. Assistant U.S. Attorney Adam W. Deitch of Lelling’s Major Crimes Unit is prosecuting the case.

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