PITTSBURGH, PA - A former resident of Pittsburgh, Pennsylvania, was sentenced in federal court to 33 months of imprisonment and three years of supervised release on her conviction of conspiracy to possess with intent to distribute heroin and fentanyl, United States Attorney Scott W. Brady announced today.

United States District Judge William S. Stickman, IV imposed sentence on April Price, 32.

According to information presented to the Court, in 2017, the Greater Pittsburgh Safe Streets Task Force initiated an investigation primarily targeting the Darccide/Smash 44, or DS44, neighborhood gang, and drug-trafficking activity in and around the South Side area of Pittsburgh. As part of this large-scale narcotics and firearms investigation, in February of 2019, the United States received authorization to conduct a federal wire investigation, which continued through June of 2019.

Intercepted communications revealed that Ms. Price was involved in the distribution of heroin and fentanyl, and communicated directly with Anthony Jetter and Christopher Highsmith, who are among her most culpable co-defendants, and discussed distributor level quantities of narcotics. The court was further informed that Ms. Price was seen on pole camera footage conducting a drug transaction with several co-conspirators at a stash house on April 25, 2019. As a condition of her guilty plea on February 12, 2020, Ms. Price accepted responsibility for the distribution of 60 grams of heroin and fentanyl.

Assistant United States Attorneys Christy C. Wiegand and Brendan McKenna prosecuted this case on behalf of the government.

The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Bureau of Alcohol Tobacco Firearms and Explosives, Allegheny County Adult Probation, Allegheny County Police Department, Allegheny County Sheriff’s Office, Pennsylvania Attorney General’s Office Bureau of Narcotics, Pittsburgh Bureau of Police, and the Wilkinsburg Police Department. Other assisting agencies include the Green Tree Police Department, New York City Police Department, Mount Oliver Police Department, Pennsylvania State Police, Yonkers Police Department, United States Marshals Fugitive Task Force, and the United States Postal Inspection Service.

This case is part of the Organized Crime Drug Enforcement Task Force program, known as OCDETF. OCDETF was established in 1982 to support comprehensive investigations and prosecutions of major drug trafficking and money laundering organizations. It is the keystone of the drug reduction strategy of the Department of Justice. By combining the resources and expertise of federal agencies and their state and local law enforcement partners, OCDETF identifies, disrupts, and dismantles the most serious drug trafficking, money laundering, and transnational criminal organizations.

NEW BERN, N.C. – A Fayetteville man was sentenced yesterday to 57 months in prison for possession of a firearm by a felon in connection with an August 2018 shooting.

According to court documents, Michael Prescott Bobbitt, 41, was charged with one count of felon in possession of a firearm.  Bobbitt pled guilty on September 18, 2019.

On August 11, 2018, Bobbitt, who had a prior federal conviction for possession of a firearm by a felon, arrived at a Fayetteville convenience store.  As Bobbitt approached the entrance to the store, he engaged in a verbal altercation with several other individuals parked nearby.  Bobbitt escalated the altercation when he returned to his vehicle, retrieved a firearm and began to approach the other individuals.  The other individuals fired before Bobbitt was able to do so, and Bobbitt was shot several times. 

Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”) and Fayetteville Police Department (“FPD”)  investigated the case and Assistant U.S. Attorney Bryan Stephany  prosecuted the case.

This case is also part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone.  The United States Attorney’s Office for the Eastern District of North Carolina implements the PSN Program through its Take Back North Carolina Initiative.  This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.

Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:19-CR-00090-FL.

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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.

Tampa, FL – The United States Department of Justice announced today that it has obtained a Temporary Restraining Order in federal court to combat fraud related to the coronavirus (COVID-19) pandemic.  The enforcement action, filed in Tampa, Florida, is part of the Justice Department’s ongoing efforts prioritizing the detection, investigation, and prosecution of illegal conduct related to the pandemic.  The action was brought based on an investigation conducted by United States Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), in coordination with the Vietnam Ministry of Public Security.

“The Department of Justice is committed to preventing fraudsters from exploiting this pandemic for personal gain,” said Acting Assistant Attorney General Ethan P. Davis of the Department of Justice’s Civil Division.  “We will use every resource at the government’s disposal to pursue scammers who are stealing money from citizens amidst the ongoing public health crisis.”

 “This action affirms our commitment to Attorney General Barr’s directive to prioritize fraud schemes arising out of the coronavirus pandemic,” said U.S. Attorney Maria Chapa Lopez of the Middle District of Florida.  “We will continue to aggressively investigate and shut down these scams that attempt to take advantage of our fellow American citizens, who are trying to keep their families safe and healthy during these very trying times.”

“Unfortunately the Global Pandemic has given criminals and criminal organizations a new opportunity to take advantage of our communities by targeting vulnerable populations through financial fraud schemes, the importation of counterfeit pharmaceuticals and medical supplies, and illicit websites defrauding consumers which continue to compromise legitimate trade and financial systems,” said HSI Tampa acting Special Agent in Charge Kevin Sibley. “Through our investigations under Operation Stolen Promise, HSI will continue to disrupt and dismantle these criminal networks as well as those who are exploiting the pandemic for their own financial gain.”

As detailed in the civil complaint and accompanying court papers filed on Monday, August 3, 2020, Defendants Thu Phan Dinh, Tran Khanh, and Nguyen Duy Toan, all residents of Vietnam, are alleged to have engaged in a wire fraud scheme seeking to profit from the COVID-19 pandemic.  According to the complaint, Defendants operated more than 300 websites that fraudulently purported to sell products that became scarce during the pandemic, including hand sanitizer and disinfectant wipes.  Thousands of victims in all fifty states attempted to purchase these items from Defendants’ websites.  Victims paid for items supposedly sold through the websites but never received the purchased products.  The complaint alleges that Defendants set up hundreds of email accounts and accounts with a U.S.-based payment processor to effectuate the scheme and keep it hidden from law enforcement.  Defendants are also alleged to have listed fraudulent contact addresses and phone numbers on the websites, causing unaffiliated individuals and businesses in the United States to receive numerous complaint calls from victims who had been defrauded by the scheme.  In response to the Department’s request for injunctive relief, U.S. District Judge Charlene Edwards Honeywell issued an emergency ex parte temporary restraining order requiring that the registrar and registries of Defendants’ fraudulent websites take immediate action to disable them.

The United States obtained the restraining order to shutter Defendants’ websites immediately while an investigation of Defendants’ scheme continues.  In so doing, the government is employing a federal statute that permits federal courts to issue injunctions to prevent harm to potential victims of fraudulent schemes.  In response to information provided by HSI, Vietnamese authorities have also conducted their own investigation and arrested the Defendants.

The Department of Justice recommends that Americans take the following precautionary measures to protect themselves from known and emerging scams related to COVID-19:

• Independently verify the identity of any company, charity, or individual that contacts you regarding COVID-19.

• Check the websites and email addresses offering information, products, or services related to COVID-19.  Be aware that scammers often employ addresses that differ only slightly from those belonging to the entities they are impersonating.  For example, they might use “cdc.com” or “cdc.org” instead of “cdc.gov.”

• Be wary of unsolicited emails offering information, supplies, or treatment for COVID-19 or requesting your personal information for medical purposes.  Legitimate health authorities will not contact the general public this way.

• Do not click on links or open email attachments from unknown or unverified sources.  Doing so could download a virus onto your computer or device.

• Make sure the anti-malware and anti-virus software on your computer is operating and up to date.

• Ignore offers from suspicious sources for a COVID-19 vaccine, cure, or treatment.  Remember, if a vaccine becomes available, you won’t hear about it for the first time through an email, online ad, or unsolicited sales pitch.

• Check online reviews of any company offering COVID-19 products or supplies.  Avoid companies whose customers have complained about not receiving items.

• Research any charities or crowdfunding sites soliciting donations in connection with COVID-19 before giving any donation.  Remember, an organization may not be legitimate even if it uses words like “CDC” or “government” in its name or has reputable looking seals or logos on its materials.  For online resources on donating wisely, visit the Federal Trade Commission (FTC) website.

• Be wary of any business, charity, or individual requesting payments or donations in cash, by wire transfer, gift card, or through the mail.  Don’t send money through any of these channels.

• Be cautious of “investment opportunities” tied to COVID-19, especially those based on claims that a small company’s products or services can help stop the virus.  If you decide to invest, carefully research the investment beforehand.  For information on how to avoid investment fraud, visit the U.S. Securities and Exchange Commission (SEC) website.

For the most up-to-date information on COVID-19, consumers may visit the Centers for Disease Control and Prevention (CDC) and World Health Organization (WHO) websites.  The public is urged to report suspected fraud schemes related to COVID-19 (the Coronavirus) to the National Center for Disaster Fraud (NCDF) hotline by phone at (1-866-720-5721) or via an online reporting form available at www.justice.gov/disaster-fraud/webform/ncdf-disaster-complaint-form.     

The enforcement action taken today is being prosecuted by Assistant U.S. Attorney Carolyn B. Tapie of the Middle District of Florida and Trial Attorney Kathryn A. Schmidt of the Civil Division’s Consumer Protection Branch.  HSI’s Tampa office is conducting the investigation.

The claims made in the complaint are allegations that, if the case were to proceed to trial, the government must prove to receive a permanent injunction against the defendants.     

Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch.  For more information about the United States Attorney’s Office for the Middle District of Florida, visit its website at www.justice.gov/usao-mdfl.  For information about the Department of Justice’s efforts to stop COVID-19 fraud, visit www.justice.gov/coronavirus.

Tampa, Florida – United States Attorney Maria Chapa Lopez announces the unsealing of an indictment charging Wilmer Rosales (22, Plant City), a/k/a “DoubleU,” and Joel Sierra (25, Plant City), a/k/a “Jojo,” with conspiring to traffic in controlled substances, conspiring to commit robbery, and robbery. The indictment charges Rosales with using a firearm and murdering an individual (G.U.) during the drug conspiracy, possessing a firearm and ammunition as a convicted felon, and possessing a firearm and ammunition in a school zone. If convicted on all counts, Rosales faces a maximum penalty of life in federal prison, or the death penalty. Sierra faces a maximum penalty of 45 years in federal prison.

According to court documents, Rosales and Sierra planned to rob G.U. Under the guise of making a drug purchase, Rosales and Sierra lured G.U. to a park located next to an elementary school, where armed co-conspirators waited nearby. Sierra then stole the drugs from G.U. and ran. When G.U. attempted to chase Sierra, Rosales shot G.U. repeatedly with an AK-47 from behind, and Rosales and Sierra left the scene. While others gathered around G.U., who lay bleeding, Rosales returned to the scene and again fired his AK-47 at G.U. Another person attempted to cover G.U.’s body with her own.

An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hillsborough County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Natalie Hirt Adams.

This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.       

ALBANY, NEW YORK – Michael T. Mann, age 50, of Saratoga County, New York, pled guilty today to orchestrating a years-long fraud that caused more than $100 million in losses to banks, financing companies, and other businesses.

The announcement was made by United States Attorney Grant C. Jaquith and Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).

Mann operated ValueWise Corporation, based in Clifton Park, New York, as well as subsidiary companies including MyPayrollHR.com LLC.  In pleading guilty, he admitted that from 2013 to September 2019, he engaged in a fraudulent scheme to deceive banks and financing companies into loaning his companies tens of millions of dollars. Because Mann could not repay the loans with legitimate business revenues, he expanded the fraud, by stealing and diverting millions of dollars that were entrusted to his payroll companies, and engaging in the daily kiting of millions of dollars among bank accounts he controlled.

Mann’s scheme collapsed in early September 2019, when one of his banks froze his accounts, setting off a chain of events that left his payroll companies unable to make payroll for hundreds of small business customers nationwide.

United States Attorney Grant C. Jaquith stated: “Michael Mann’s fraud was staggering.  He caused more than $100 million in losses and wove a web of deception so complex that it eventually ensnared hundreds of small businesses and several thousand workers across the country. Today’s plea is the start of holding him accountable for the terrible harm he inflicted on these victims, as well as the banks and other companies that trusted him with their money and believed his sophisticated lies.”

FBI Special Agent in Charge Thomas F. Relford stated: “Michael Mann’s deception directly impacted thousands of people across the country. Helping himself to those funds left the businesses who trusted him with their payroll unable to pay their employees who survive on timely paychecks. While many of the businesses were able to recover, others experienced irreparable hits to their reputations. Today’s admission of guilt is a small step forward in their process to rebuild. The FBI will continue to work with our law enforcement partners to aggressively pursue and charge those who willingly defraud our citizens and banking institutions.”

Mann pled guilty to one count of conspiracy to commit wire fraud, one count of aggravated identity theft, nine counts of bank fraud, and one count of filing a false tax return.

Mann’s scheme had multiple layers, including: 

• Mann obtained tens of millions of dollars in loans from three financing companies, located in New York, Colorado and California, respectively, by falsifying his companies’ revenues and receivables. Mann falsely told the financing companies that Minnesota-based UnitedHealth Group Incorporated (“UHG”) and its subsidiary OptumInsight Inc. (“Optum”), owed millions of dollars to his companies.  Mann created fake invoices reflecting the fictitious debt and assigned them to the financing companies as collateral for the loans.

• Mann fraudulently obtained a line of credit (“LOC”) from several Capital Region banks, which had grown to $42 million by 2019.  To obtain the LOC, Mann created companies whose sole purpose was to further the fraud by generating fake invoices, disguising sources of funds, and artificially inflating his assets; falsely represented to the banks that his fake businesses had revenues and receivables based on consulting work for Optum/UHG and other well-known companies, including 3M, Best Buy and T-Mobile; hid the tens of millions of dollars in loans he was receiving from the financing companies, and that he was using the LOC to pay down these loans; and provided false financial statements, and individual and corporate tax returns, to his outside auditor, which in turn made inaccurate reports to the banks.

• Mann misappropriated payroll monies, entrusted to MyPayrollHR and another company, by changing the instructions for digital Automated Clearing House (“ACH”) files that were supposed to transmit payroll from MyPayrollHR’s customers (employers) to the employees of the customers.  Although his companies’ contracts with Cachet Financial Services specified that ACH transfers would route payroll funds from the employers’ accounts to a designated Cachet trust account and then directly to the customers’ employees, Mann changed the instructions inside digital ACH files provided to Cachet, in order to divert payroll funds from MyPayrollHR’s customers into accounts he controlled at Pioneer Bank. When Pioneer Bank froze Mann’s corporate accounts on or about August 30, 2019, it froze the payroll funds in those accounts, and caused several thousand people across the country to not receive a payroll payment. Cachet, as the guarantor of the payroll funds, paid about $7.2 million to the employees of MyPayrollHR’s customers.

Mann is scheduled to be sentenced on December 10, 2020 by Senior United States District Judge Lawrence E. Kahn.  He will be sentenced to 2 years in prison on the aggravated identity theft conviction, and, on the other charges, faces maximum terms of 3 years (filing a false tax return), 20 years (wire fraud conspiracy), and 30 years (bank fraud). A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.

Mann has agreed to entry of an order requiring him to pay $101,038,793.31 in restitution, and to forfeit assets including $14,522,474.90 already seized by the Government, 30,000 common shares of Pioneer Bancorp Inc. already seized by the Government, and a 2020 Jeep Gladiator.

Mann is the second person to plead guilty in connection with this fraud.  On February 6, 2020, former Optum employee Luke E. Steiner, age 32, of Minneapolis, Minnesota, pled guilty to conspiring with Mann to defraud two financing companies out of millions of dollars.

This case is being investigated by the FBI, as well as Internal Revenue Service-Criminal Investigation, and is being prosecuted by Assistant U.S. Attorneys Michael Barnett and Cyrus P.W. Rieck. 

United States Attorney Ron Parsons announced that an Anthem, Arizona, man has been indicted by a federal grand jury for Failure to Pay Child Support.

Jacob A. Tate, age 44, was indicted on June 6, 2018.  He appeared before U.S. Magistrate Judge Veronica L. Duffy on August 7, 2020, and pled not guilty to the Indictment.

The maximum penalty upon conviction is up to 2 years in federal prison and/or a $250,000 fine, 1 year of supervised release, and up to $500 to the Federal Crime Victims Fund.  Restitution may also be ordered.

The Indictment alleges that from October 1, 2012, through August 7, 2020; from March 1, 2015, through August 7, 2020; from February 1, 2014, through August 7, 2020; from June 1, 2015, through August 7, 2020; and from July 1, 2014, through August 7, 2020, Tate willfully and unlawfully failed to pay past due child support obligations to his 5 children.

The charges are merely accusations and Tate is presumed innocent until and unless proven guilty. 

The investigation is being conducted by the Office of the Inspector General.  Assistant U.S. Attorney Jennifer D. Mammenga is prosecuting the case.   

Tate was released on bond pending trial, which has been set for October 13, 2020.

United States Attorney Ron Parsons announced that a Rosebud, South Dakota, man convicted of Influencing a Federal Officer by Threat was sentenced on August 10, 2020, by Chief Judge Roberto A. Lange, U.S. District Court.

Anthony One Star, Jr., a/k/a Tony One Star, a/k/a Sonny One Star, age 32, was sentenced to 26 months in federal prison, followed by 3 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.

One Star was indicted by a federal grand jury on January 22, 2020.  He pled guilty on May 19, 2020.

The conviction stemmed from an incident that occurred on December 15, 2019, in the Two Strike Community near Rosebud.  On that date, a Rosebud Sioux Tribe Law Enforcement Services Officer responded to a report of an intoxicated male walking in the roadway.  When the officer arrived in the area, he observed One Star dressed in all black and walking in the middle of the roadway.  One Star was arrested for public intoxication and disorderly conduct.  While he was being transported to the Rosebud Sioux Tribe Adult Correctional Facility, One Star remarked that he was a cop killer and that he was going to find and kill the officer when the officer was off duty.

This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services.  Assistant U.S. Attorney Kirk Albertson prosecuted the case.

One Star was immediately turned over to the custody of the U.S. Marshals Service.

United States Attorney Ron Parsons announced that a Mission, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person was sentenced on August 10, 2020, by Chief Judge Roberto A. Lange, U.S. District Court.

Bryan Herman, age 55, was sentenced to 18 months in federal prison, followed by 3 years of supervised release, restitution in the amount of $575, and a special assessment to the Federal Crime Victims Fund in the amount of $100.

Herman was indicted by a federal grand jury on September 10, 2019.  He pled guilty on February 26, 2020.

The conviction stemmed from an incident that occurred in South Dakota on July 15, 2016.  Herman took possession of a .45 caliber, semi-automatic pistol that day, and sold it at a pawn shop in Nebraska.  Herman was an unlawful user of and addicted to prescription painkillers at that time, controlled substances under federal law.  Herman used the proceeds from the sale of the firearm to continue fueling his drug habit after losing employment due to a failed drug test.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone.  The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent 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. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.            

This case was investigated by the Federal Bureau of Investigation and Bureau of Alcohol, Tobacco, Firearms and Explosives.  Assistant U.S. Attorney Michael Elmore prosecuted the case.

Herman was immediately turned over to the custody of the U.S. Marshals Service.

KNOXVILLE, Tenn. – On August 11, 2020, Randall F. Henry, 49, of Sunbright, Tennessee, plead guilty before Magistrate Judge C. Clifford Shirley, Jr., to a felony count for falsifying records to conceal his illegal purchases of ginseng prior to the legal harvest season in 2015, violating the Lacey Act, a federal law enacted to combat the illegal trafficking of plants and wildlife. 

The plea agreement will require Henry to pay restitution to the State of Tennessee and perform 100 hours of community service. Sentencing is set for December 8, 2020, before the Honorable Pamela L. Reeves, Chief U.S. District Court Judge. Henry faces a maximum term of imprisonment of up to five years.                                      

American Ginseng (Panax quinquefolius) is a slow-growing perennial species of plant found throughout the Northeast, Midwest, and Appalachian regions of the United States. Wild American Ginseng has substantial commercial value because there is a national and international market for its use as an ingredient in food, drinks, and traditional medicines. American Ginseng is protected under the Convention on International Trade in Endangered Species of Wild Fauna and Flora of 1973 (CITES) and the Endangered Species Act (ESA). The purpose of CITES is to monitor, control, and restrict, as necessary, the international trade of certain wild plant and animal species in an effort to prevent adverse impacts and ensure continued existence of those species in their natural habitat. 

In Tennessee, the Tennessee Department of Environmental Conservation (TDEC) has responsibilities—under CITES, the ESA, and state law—to regulate and monitor the commercial harvest of wild American Ginseng and to ensure that populations are not imperiled. Accordingly, American Ginseng dealers are required to routinely submit paperwork to TDEC to document their ginseng purchases. Henry admitted to falsifying such documents in 2015 after purchasing American Ginseng before the opening of the established season. The USFWS investigates illegal ginseng trafficking associated with the international and interstate trade under the Lacey Act. 

“The collaborative efforts of USFWS and the Department of Justice work to deter individuals from violating the laws and regulations designed to protect our natural ginseng resources, and from engaging in these types of illegal practices that threaten this resource. We will pursue any companies or persons who engage in similar unlawful conduct,” said J. Douglas Overbey, United States Attorney for the Eastern District of Tennessee.

“Breaking up international and domestic smuggling rings that specifically exploit native plants and animals is a very important part of the U.S. Fish and Wildlife Service Office of law Enforcement’s work,” said FWS Acting Special Agent in Charge Stephen Clark.

This plea is the result of “Operation Green Gold,” a multi-jurisdiction investigation conducted by the U.S. Fish and Wildlife Service (USFWS) into the illegal harvesting, trafficking, and smuggling of American Ginseng.

The USFWS conducted the investigation in this case. The United States is represented in Court by Assistant United States Attorney Matthew T. Morris and Environmental Crimes Section Senior Trial Attorney Todd Gleason.

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Florence, South Carolina --- United States Attorney Peter M. McCoy, Jr. announced today that Antonio Thelwell, 30, was sentenced to more than three years in federal prison after pleading guilty to a conspiracy to commit wire fraud, which swindled more than 150 mostly elderly victims out of almost $850,000.

Evidence presented in court established that Thelwell, who is a native of Jamaica, was one of 18 defendants involved in a large telemarketing fraud conspiracy beginning in 2010 which targeted elderly victims. Thelwell and his conspirators would contact elderly individuals and falsely inform them that they had won a sweepstakes, but had to pay the taxes and fees in order to claim their bogus winnings.  Through this scam, Thelwell and others were able to persuade victims to wire them significant amounts of money by various means.  In order to make the scam appear legitimate, the perpetrators sent letters which appeared to be from government agencies informing victims that their payments had been received.  Not only did Thelwell contact victims directly, but he also recruited other individuals to contact victims, receive money from those victims, and wire the illegally obtained funds to him in Jamaica.  Thelwell was directly involved in scamming victims out of over $124,000, and the conspiracy as a whole swindled 157 victims out of over $839,000.     

The successful prosecution of Thelwell in the United States required that he be extradited from his native country of Jamaica.  His extradition to the United States was made possible through the efforts of the case agents, the Department of Justice’s Office of International Affairs, and Jamaican authorities.

Chief United States District Judge R. Bryan Harwell sentenced Thelwell to 38 months in federal prison, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system.

This case was the result of an investigation by the United States Postal Inspection Service and Homeland Security Investigations. Assistant United States Attorney Brad Parham of the Florence office prosecuted the case.

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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.

Three separate criminal complaints were unsealed yesterday in federal court in Brooklyn charging defendants Richard Arline, Jr., Donnell Russell and Michael Williams, respectively, with crimes relating to their efforts to harass, intimidate, threaten or corruptly influence individuals named as alleged victims in the racketeering case against Robert Sylvester Kelly, also known as “R. Kelly,” currently pending in the Eastern District of New York (the Kelly case). 

Arline, Jr. is charged with attempting to corruptly persuade the testimony of an alleged victim in the Kelly case, identified in the complaint as “Jane Doe,” and engaging in misleading conduct towards the victim, with intent to influence, delay and prevent her testimony in the Kelly case, as well as corruptly offering something of value to the victim, with the intent to influence her testimony as a witness upon a trial, hearing and other proceeding.  Arline, Jr. was arrested earlier today in Dolton, Illinois, and his initial appearance took place yesterday afternoon before United States Magistrate Judge Young B. Kim at the federal courthouse in Chicago, Illinois.

A second criminal complaint charges Russell with using the mail, the internet and cellular telephones to attempt to cause emotional distress to another individual identified in the complaint as “Jane Doe,” an alleged victim in the Kelly case, as well as Jane Doe’s mother, with the intent to harass and intimidate Jane Doe and her mother.  Russell’s initial appearance will take place before a United States Magistrate Judge in the Eastern District of New York at a date to be determined in the near future.

A third criminal complaint charges Williams with using and attempting to use intimidation and threats against an alleged victim in the Kelly case, with intent to influence, delay and prevent her testimony in the Kelly case.  The complaint also charges Williams with maliciously damaging and destroying a vehicle by means of fire and an explosive.  Williams was arrested yesterday in Pompano Beach, Florida, and his initial appearance is scheduled for this morning at the federal courthouse in Fort Lauderdale, Florida. 

Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, Peter C. Fitzhugh, Special Agent-in-Charge, Homeland Security Investigations (HSI), New York Field Office, and Dermot F. Shea, Commissioner, New York City Police Department (NYPD), announced the charges.  

“The defendants are separately charged with engaging in multiple crimes that were intended to undermine and subvert the integrity of the criminal justice system and victimize the women who have come forward with serious allegations of criminal conduct against the defendant R. Kelly,” stated Acting United States Attorney DuCharme.  “Efforts to illegally influence pending federal cases, whether through threats of violence, intimidation, damage to property, or payments to buy a potential witness’s silence, will not be tolerated.” 

Mr. DuCharme expressed his grateful appreciation to the HSI Field Offices in Chicago, Illinois, Fort Lauderdale, Florida, Long Beach, California, and Tampa, Florida; the Bureau of Alcohol, Tobacco, Firearms and Explosives Field Offices in Savannah, Georgia, and Tampa, Florida; the Florida Bureau of Fire, Arson & Explosives Investigations; the Broward County Sheriff’s Office, Florida, the Lowndes County Sheriff’s Office, Florida, the Polk County Sheriff’s Office, Florida and the Valdosta Police Department, Georgia, for their assistance in these cases.

“These crimes shock the conscience.  The men charged today allegedly have shown that there is no line they will not cross to help Kelly avoid the consequences of his alleged crimes—even if it means re-victimizing his accusers.  These acts not only fly in the face of human decency, they insult the very rule of law.  HSI will continue to bring the full force of our investigative powers to pursue those seeking to attack witnesses and pervert the cause of justice.  To the victims of these and other crimes: we stand with you.  We will meet your bravery with our resolve to keep you safe to tell your story,” stated HSI Special Agent-in-Charge Fitzhugh.

“The bribery, intimidation and violence alleged in these complaints reflects a nationwide pattern of criminality that further victimized civilian witnesses in a federal case. Such behavior can never be accepted and I commend the NYPD investigators, federal agents and prosecutors from the U.S. Attorney’s Office for the Eastern District of New York in bringing these charges,” stated NYPD Commissioner Shea.

The Arline, Jr. Complaint

As alleged, between January 9, 2020 and June 2020, Arline, Jr., a self-proclaimed longtime friend of Kelly, attempted to illegally influence the cooperation and testimony of an alleged victim in the Kelly case.  After learning of Arline Jr.’s plan, the victim contacted law enforcement, and under the supervision of law enforcement authorities, continued to communicate with him.  During a series of consensually recorded telephone calls, as well as in calls and texts captured pursuant to a judicially authorized wiretap, Arline, Jr. discussed a scheme in which the victim would receive compensation, including a proposed payment of $500,000, to keep her from cooperating with the government.  During one of the recorded telephone calls, Arline, Jr. claimed that he had communicated with Kelly while Kelly was incarcerated via a three-way call with another individual. 

The intercepted communications also include Arline, Jr. discussing plans to pay the victim “to be quiet,” explaining that “if I had a way to talk to Rob [Kelly], being next to him, and telling him what’s going on, without nobody listening to, no feds, nobody, he gonna pay her . . . off to be quiet” because “[s]he got too much.  She got too much.” 

The Russell Complaint

As alleged, between November 2018 and February 2020, Russell, a self-described manager, advisor and friend of Kelly, used the mail, telephones and the internet to harass and intimidate Jane Doe, an alleged victim in the Kelly case, and her mother after Jane Doe filed a civil lawsuit against R. Kelly.  Specifically, Russell threatened to reveal sexually explicit photographs of Jane Doe and to publicly reveal her sexual history if she did not withdraw her lawsuit against Kelly and “cease her participation and association with the organizers” of a “negative campaign” against Kelly.  In November 2018, Russell caused a letter with attachments purportedly written by Kelly to be mailed to Jane Doe’s Brooklyn-based lawyer at the time.  The attachments included cropped nude photographs of Jane Doe with the following text: “the next two pictures have been cropped for the sake of not exposing her extremities to the world, yet!!!”  In December 2018, Russell, using his alias “Colon Dunn,” sent a series of text messages to Jane Doe and her mother, which contained the same photographs of Jane Doe, and stating “Just a sample.  We will seek criminal charges.  You’ve been warned,” as well as “Publishing soon” and “[T]his is Colon.”   

On January 3, 2019, Russell allegedly sent additional text messages to Jane Doe and her mother, stating, “Pull the plug or you will be exposed.”  On January 6, 2019, Russell, using the Colon Dunn alias, created a Facebook Page named “Surviving Lies,” a play on the title of Lifetime’s “Surviving R Kelly” documentary, and posted screen shots of text messages between Kelly and Jane Doe, which contained the same sexually explicit photographs of Jane Doe.  In late January 2020, Russell appeared on two live interviews with “vloggers” discussing Kelly’s legal troubles, which were streamed live on the internet via YouTube.  Russell again displayed the same sexually explicit photographs of Jane Doe and broadcast them publicly over the internet.  

The Williams Complaint

As alleged, on or about June 11, 2020, Williams, a relative of an individual who once served as a publicist for Kelly, set fire to an SUV parked outside a residence in Florida where an alleged victim in the Kelly caseand others were staying.  The vehicle, leased by the victim’s father, was heavily damaged.  Fire investigators also detected an accelerant along the outside perimeter of the residence.  Cell site records, surveillance footage, toll records and photographs, and Williams’ internet searches for the victim’s address, revealed that Williams had driven from Georgia to the Florida residence.  Williams also performed internet queries about the detonation properties of fertilizer and diesel fuel, witness intimidation and witness tampering, and countries that do not have extradition with the United States.

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

The government’s case is being handled by the Office’s Civil Rights Section. Assistant United States Attorneys Elizabeth A. Geddes, Nadia I. Shihata and Maria Cruz Melendez are in charge of the prosecution. 

The Defendants:

RICHARD ARLINE, JR.
Age:  31
Dolton, IL

DONNELL RUSSELL, also known as “Don Russell” and “Colon Dunn”
Age:  45
Chicago, IL

MICHAEL WILLIAMS
Age: 37
Valdosta, GA

E.D.N.Y. Docket Nos: 20-MJ-239; 20-MJ-629; 20-MJ-630

PROVIDENCE – A Dominican national living in Providence admitted to a federal court judge today that he led a conspiracy in Rhode Island in 2014 to import multiple kilograms of heroin and cocaine from California, and that he conspired with individuals working at his direction to store, process, and package the drugs at an apartment in West Warwick he rented and used as a stash house.

On at least three occasions, Rhode Island DEA agents intercepted packages containing one or more kilograms of heroin or cocaine shipped from California, earmarked for delivery to addresses in Warwick, Pawtucket and Providence. Rafael Lara Sanquintin, 37, of Providence, admitted that he directed others to retrieve the packages, and that members of the conspiracy he recruited worked at his direction at the stash house to prepare, package, and deliver the drugs to others.

On at least two occasions DEA agents stopped vehicles after leaving the stash house containing individuals working at the direction of Sanquintin. On those occasions, DEA agents seized 653 grams and 1,114 grams of heroin.

Sanquintin was indicted in this matter on November 22, 2016. He was arrested by Customs and Border Patrol agents on December 12, 2016, as he attempted to disembark from a cruise ship in West Palm Beach, FL, and illegally reenter the United States from his native Dominican Republic. He was convicted in the United States District Court in the Southern District of Florida on a charge of attempted illegal reentry after deportation by an aggravated felon and sentenced in March 2017 to 14 months of incarceration.

Appearing today before U.S. District Court Judge William E. Smith, Sanquintin admitted that he conspired with others to possess and distribute at least 10 kilograms of heroin and 5 kilograms of cocaine, pleading guilty to conspiracy to possess with intent to distribute 100 grams or more of heroin and conspiracy to possess with intent to distribute 500 grams or more of cocaine, announced United States Attorney Aaron L. Weisman and Special Agent in Charge of the Drug Enforcement Administration’s New England Field Division Brian D. Boyle.

Sanquintin, detained in federal custody since completing his term of incarceration for illegally reentering the United States, is scheduled to be sentenced on November 12, 2020.

The case is being prosecuted by Assistant U.S. Attorney Paul F. Daly, Jr.

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LAS VEGAS, Nev. — Eight defendants, who are all Las Vegas residents indicted on June 30, 2020, have been arrested in connection with firearms and drug trafficking (in addition to other firearms offenses) as part of “Operation Nora,” announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada, Special Agent in Charge Patrick Gorman of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Sheriff Joseph Lombardo of the Las Vegas Metropolitan Police Department (LVMPD).

“Operation Nora exemplifies the kind of impactful multi-defendant prosecutions that play a critical role in our office’s strategy to reduce violent crime in our communities,” said U.S. Attorney Trutanich. “We appreciate the opportunity to work with ATF and the Las Vegas Metropolitan Police Department to take drugs, ammo, and over two dozen guns off the streets through one investigation.”

“ATF is on the frontline in the fight against violent crime, particularly through the disruption and dismantling of firearms trafficking operations which are a large source and supply of crime guns to offenders,” said Special Agent in Charge Gorman. “Throughout Operation Nora, ATF worked side by side with our partners to fulfill ATF’s mission of protecting the public by investigating the criminal misuse and trafficking of firearms in Las Vegas. The trafficking of firearms to violent criminals, gangs and drug trafficking organizations presents a grave threat to public safety, and ATF remains dedicated to making this city a safer place.”

“This is a major win for law enforcement,” said Sheriff Joe Lombardo. “Metro will continue working hard to stop criminals from bringing drugs and violence into our neighborhoods. Because of multi-agency partnerships like this one, we are making it harder for violent criminals to do business.”

Operation Nora is a joint investigation by the ATF and the LVMPD, focusing on the Sherwood Forest and Naked City areas in Las Vegas. During the operation, ATF seized 30 guns, ammunition, over 50 grams of heroin, 117 grams of methamphetamine, 492 grams of cocaine, and 446 grams of crack cocaine.

According to the allegations in the indictments, the defendants sold a total of nearly 2.5 pounds of heroin, methamphetamine, cocaine, and crack cocaine. They also sold firearms without a license. Further, four of the defendants — Alexander Fitwi, Durrell Melchor, Prentice Moreland, and Antione Thomas — unlawfully possessed firearms, including numerous semi-automatic handguns and rifles, despite prior felony convictions that prohibited them from owning or possessing guns.

Below is a list of the arrested defendants and the criminal charges they face:

• Alexander Fitwi, 32, of Las Vegas, is charged with two counts of felon in possession of a firearm. As a result, Fitwi faces an aggregate statutory maximum penalty of 20 years imprisonment and a fine of not more than $500,000.
• Durrell Melchor,33, of Nevada, is charged with one count of dealing in firearms without a license, two counts of felon in possession of a firearm, one count of conspiracy to distribute a controlled substance, and one count of distribution of a controlled substance. As a result, Melchor faces an aggregate statutory maximum penalty of 45 years imprisonment and a fine of not more than $1,750,000.
• Prentice Moreland, 55, of Las Vegas, is charged with two counts of distribution of a controlled substance-cocaine, four counts of distribution of a controlled substance-cocaine base, and one count of felon in possession of a firearm. As a result, Moreland faces an aggregate statutory maximum penalty of 210 years imprisonment and a fine of not more than $22,250,000.
• Ozzie Morrison, 33, of Las Vegas, is charged with one count of dealing in firearms without a license and two counts of distribution of a controlled substance-cocaine. As a result, Morrison faces a statutory maximum penalty of 45 years imprisonment and a fine of not more than $2,250,000.
• Antione Thomas, 47, of Las Vegas, is charged with one count of dealing in firearms without a license, four counts of felon in possession of a firearm, and one count of distribution of a controlled substance-crack cocaine. As a result, Thomas faces an aggregate statutory maximum penalty of 85 years imprisonment and a fine of not more than $6,250,000, with an aggregate statutory minimum penalty of five years imprisonment.
• Jose Wade, 37, of North Las Vegas, is charged with three counts of distribution of a controlled substance-cocaine. As a result, Wade faces an aggregate statutory maximum penalty of 60 years imprisonment and a fine of not more than $3,000,000.
• Brenton Williams, 38, of Nevada, is charged with one count of conspiracy to distribute a controlled substance and one count of distribution of a controlled substance-cocaine. As a result, Williams faces an aggregate statutory maximum penalty of 20 years imprisonment and a fine of not more than $1,000,000.
• Jessica Williams 28, of Las Vegas, is charged with one count of distribution of a controlled substance-methamphetamine and three counts of distribution of a controlled substance-crack cocaine. As a result, Williams faces an aggregate statutory maximum penalty of life imprisonment and a fine of not more than $17,000,000, with an aggregate statutory minimum penalty of 15 years imprisonment.

The minimum and maximum statutory sentences are prescribed by Congress and are provided here for informational purposes only. The sentencing of a defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.

An indictment merely alleges that crimes have been committed. Every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

This case is the product of an investigation by the ATF and LVMPD. Assistant U.S. Attorneys Allison Reese, Brett Ruff, and Melanee Smith are prosecuting the cases.

Operation Nora was conducted as part of Project Safe Neighborhoods (PSN), a nationwide program by the Department of Justice that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, the Department announced the reinvigoration of PSN. For more information about PSN, visit www.justice.gov/usao-nv.

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WILMINGTON, N.C. – A Raleigh man was sentenced today to 168 months in prison for conspiring with others to distribute and possess with the intent to distribute over 1,000 kilograms of marijuana and engaging in a money laundering conspiracy.  He was also ordered by the court to forfeit $2,708,000 in laundered drug proceeds.

According to court documents, Richard Dwight Alston, 39, engaged in a multi-year and cross-country conspiracy to traffic in large amounts of marijuana and to distribute that high-grade marijuana to associates in Raleigh.  After several years of investigation by the Drug Enforcement Administration and Internal Revenue Service, on November 2, 2017, federal agents executed a search warrant for apartments that were suspected to be stash locations for Alston’s large-scale marijuana organization.  During the search, agents located over 40 pounds of marijuana and $371,670.00 in United States currency.  Agents were then able to arrange for the delivery of Alston’s next drug shipment on November 6, 2017.  On that date, agents arrested two individuals who were responsible for transporting the marijuana intended for Alston and others.  A search of their vehicle revealed 7 large duffel bags containing almost 200 kilograms of marijuana, along with $67,814 in United States currency.  A financial investigation conducted by the IRS revealed that Alston had laundered drug proceeds of over $2.7 million through a business bank account over a period of several years.

The investigation was part of OCDETF Operation Pick Six. An Organized Crime Drug Enforcement Task Force (OCDETF) is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.

Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Richard E. Myers II.  The Drug Enforcement Administration (DEA) and the Internal Revenue Service (IRS) led the investigation, with assistance from the Raleigh Police Department.   Assistant U.S. Attorney Laura S. Howard  prosecuted the case.

A copy of this press release is located on our website. Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:20-CR-00005-M.

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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.

United States Attorney Ron Parsons announced that a Martin, South Dakota, woman who pled guilty to Conspiracy to Distribute a Controlled Substance was sentenced on July 31, 2020, by U.S. District Court Judge Jeffrey L. Viken.  

Julissa Poor Bear, age 31, was sentenced to a total of 16 years in federal prison, followed by 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. 

From approximately January 2015 to August 2016, Poor Bear distributed over 1.5 kilograms of methamphetamine in Rapid City and the east side of the Pine Ridge Reservation. Poor Bear worked with others to bring methamphetamine to South Dakota from California.  During the course of her dealing, Poor Bear threatened people, possessed firearms, and attempted to intimidate a witness by posting about that witness on Facebook. 

Several co-conspirators have already been sentenced. One additional co-conspirator, Wicahpe Milk, is pending trial. 

This case was investigated by the Badlands Safe Trails Drug Enforcement Task Force, which is comprised of agents from the Federal Bureau of Investigation, South Dakota Division of Criminal Investigation, Bureau of Indian Affairs Division of Drug Enforcement, Martin Police Department, and the Oglala Sioux Tribe Department of Public Safety.  Assistant U.S. Attorney Kathryn N. Rich prosecuted the case. 

Poor Bear, who has been in custody since April 2019, was immediately returned to the custody of the U.S. Marshals Service.

Greenville, South Carolina --- United States Attorney Peter M. McCoy, Jr. announced today that Fernando Lara, 45, of Marietta, Georgia, was sentenced to 25 years in federal prison, marking the thirteenth and final defendant to be sentenced in a large methamphetamine trafficking conspiracy in Georgia and the Upstate region of South Carolina. The sentences, which total 145 years in federal prison, come after twelve guilty pleas and Lara’s conviction at trial.

“These armed drug dealers posed a serious threat to the people of South Carolina and Georgia, which is reflected in the more than a century of federal prison time imposed,” said U.S. Attorney McCoy. “Along with our federal, state, and local partners we brought this criminal enterprise to an end and we will continue to vigorously prosecute those who endanger their communities.”

“Methamphetamine continues to ravage many communities in our nation,” said Drug Enforcement Administration (DEA) Atlanta Field Division Special Agent in Charge Robert J. Murphy. “Because of the positive results yielded in this case, other methamphetamine manufacturers in the upstate of South Carolina and elsewhere should be put on notice that DEA, its law enforcement partners and the U.S. Attorney’s Office will not tolerate their continued efforts to manufacture and distribute this insidious drug.”

“Cases like this have an immediate and positive impact on the community,” said Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Charlotte Special Agent in Charge Vince Pallozzi. “A substantial number of firearms have been recovered, a large amount of narcotics seized and taken off the streets, and, most important, numerous individuals that threatened our communities are now in prison. This is a collaborative win for public safety.”

Evidence presented at Lara’s trial established that he was a methamphetamine trafficker from Georgia who would sell pure methamphetamine in kilogram quantities to a co-defendant, Angela G. Skelton, 41, of Starr, who would bring the methamphetamine back into the Upstate region of South Carolina for distribution. Lara would often offer a better price on methamphetamine in exchange for firearms from Skelton. On January 16, 2019, Lara and Skelton were pulled over on Interstate 85 in Anderson County with approximately two kilograms of methamphetamine and a loaded pistol in the vehicle.

As to the other co-defendants, evidence presented to the court established that beginning in or around August 2017, co-defendant Briand F. Zapata-Rodriguez, 45, of Sandy Springs, Georgia, would transport kilogram quantities of methamphetamine from around Atlanta into the Upstate region of South Carolina, primarily into Anderson and Abbeville Counties. Zapata-Rodriguez would then use a network of runners and distributors to break up and distribute the methamphetamine throughout the Upstate. Several of the traffickers illegally possessed firearms and ammunition during the course of their drug trafficking activity. During the course of the investigation, agents seized over 30 kilograms of methamphetamine, 36 firearms, more than 1,000 rounds of ammunition, and more than $157,000 in cash. Evidence presented to the court indicated that this drug trafficking organization was responsible for the distribution of over 214 kilograms of methamphetamine during its time operating in Georgia and South Carolina.

United States District Judge Donald C. Coggins, Jr., presided over the case. In addition to Lara’s 300-month sentence, to be followed by a five-year term of court-ordered supervision, the following Defendants were sentenced in the case:

• Skelton: 52 months, to be followed by a five-year term of court-ordered supervision;
   
• Zapata-Rodriguez: 280 months, to be followed by a five-year term of court-ordered supervision;
   
• Christopher C. Presley, 29, of Honea Path: 145 months, to be followed by a five-year term of court-ordered supervision;
   
• Jonathan E. Gilmer, 37, of Starr: 360 months, to be followed by a five-year term of court-ordered supervision;
   
• Tara M. Thomason, 41, of Iva: 108 months, to be followed by a ten-year term of court-ordered supervision;
   
• Tena M. Todd, 47, of Calhoun Falls: 72 months, to be followed by a five-year term of court-ordered supervision;
   
• Randy N. Gilliam, 60, of Honea Path: 48 months, to be followed by a five-year term of court-ordered supervision;
   
• Michael R. Mitchem, 55, of Iva: 80 months, to be followed by a five-year term of court-ordered supervision;
   
• Matthew J. Green, 41, of Belton: 48 months, to be followed by a five-year term of court-ordered supervision;
   
• Christian D. Black, 30, of Honea Path: 96 months, to be followed by a five-year term of court-ordered supervision;
   
• Jesse L. Williams, 30, of Honea Path: 125 months, to be followed by a four-year term of court-ordered supervision; and
   
• Florence A. Gilmer, 43, of Anderson: 36 months of court-ordered supervision.
   

There is no parole in the federal system. This case was investigated by the DEA, ATF, Anderson County Sheriff’s Office, City of Anderson Police Department, Abbeville County Sheriff’s Office, and City of Greenwood City Police Department. This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN), 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.

Assistant United States Attorney Sloan P. Ellis of the Greenville office prosecuted the case.

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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.

COLUMBUS, Ohio – A Cincinnati man who paid $3,000 for a tiger skin rug pleaded guilty in U.S. District Court today to violating the Endangered Species Act.

According to court documents, in August 2018, Ryan J. Gibbs, 44, of Cincinnati, contacted a man in the United Kingdom about buying a tiger skin rug. The man told Gibbs he could not legally ship a tiger skin to the United States, but knew someone in Minnesota who had tiger skins.

Gibbs started emailing and calling the person, who was actually an undercover Special Agent with the U.S. Fish and Wildlife Service, and said he wanted to buy a tiger skin and a mounted flamingo. Gibbs and the agent discussed the illegality of buying and selling tiger parts across state lines. Gibbs and the agent met near Jeffersonville, Ohio in December 2018 where Gibbs bought three mounted birds – a tufted puffin, a horned puffin and a flamingo for a total of $1,200.

Over the next several months, Gibbs and the agent communicated intermittently about the tiger skin. Gibbs and the agent met again near Jeffersonville in August 2019 where Gibbs paid $3,000 for the tiger skin.

The plea agreement requires Gibbs to serve one year of probation and perform 80 hours of community service. If possible, the community service should be directed toward assistant a non-profit or governmental organization in Ohio working on wildlife conservation. The agreement also calls for Gibbs to pay $100,000 to the Lacey Act Reward Account. Gibbs also agreed to abandon a stuffed lion, two stuffed puffins, a panther skin and a sawfish rostrum which he owns.

The Code of Federal Regulations lists tigers (panthera tigris) as endangered wherever they are found.

David M. DeVillers, United States Attorney for the Southern District of Ohio; Jeffrey Bossert Clark, Assistant Attorney General, Department of Justice Environmental and Natural Resources Division; Erryl Wolgemuth, Supervisor with the US Fish and Wildlife Service; and Franklin County Prosecutor Ron O’Brien announced the plea entered today before Senior U.S. District Judge James L. Graham.

Special Assistant United States Attorney J. Michael Marous and Adam C. Cullman, Trial Attorney with the Department of Justice Environment and Natural Resources Division, are representing the United States in this case.

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CAMDEN, N.J. – The chief executive officer of Central Rexall Drugs Inc., a Louisiana pharmacy used by numerous individuals to defraud New Jersey health benefits programs and other insurers out of more than $50 million, has admitted her guilt, U.S. Attorney Craig Carpenito announced.

Hayley Taff, 37, of Hammond, Louisiana, pleaded guilty by videoconference before U.S. District Judge Robert B. Kugler to an information charging her with one count of conspiracy to commit healthcare fraud.

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

Central Rexall was a retail pharmacy in Louisiana that prepared compounded medications, which are specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Hayley Taff was Central Rexall’s chief executive officer and 22 percent owner. In 2013, Taff entered into an agreement with two individuals, identified as Individual 1 and Individual 2, to expand the compounding business, with Individual 1 and 2’s company receiving 90 percent of the profits.

Taff and her conspirators learned that certain insurance plans administered by an entity referred to in the information as the “Pharmacy Benefits Administrator” would reimburse thousands of dollars for a one-month supply of certain compounded medications – including pain, scar, antifungal, and libido creams, as well as vitamin combinations. The health plans for New Jersey state and local government and education employees, including teachers, firefighters, municipal police officers, and state troopers, had this insurance coverage.

Taff’s conspirators designed compounded medications and manipulated the ingredients in the medications in order to obtain high insurance reimbursements rather than serve the medical needs of patients. To determine which ingredients and combinations resulted in the high insurance reimbursement, Taff’s conspirators sent the Pharmacy Benefits Administrator false prescription claims to test out different combinations of ingredients, but the prescriptions did not exist. By trial and error use of these false claims, Taff’s conspirators designed compounded medications with combinations of ingredients that were chosen solely based on the amount of money that insurance would pay rather than on the medications’ ability to serve the medical needs of patients. At Taff’s direction, Central Rexall sent compounded medications to patients based solely on financial gain.

When the Pharmacy Benefits Administrator stopped covering one combination, Central Rexall would develop a compounded medication with a different combination of ingredients based solely on the insurance reimbursement and without considering the medical necessity or effectiveness of the new combination. Central Rexall then would send that new compounded medication to patients, even though the new combination of ingredients was not medically equivalent to the combination originally prescribed for the patients and without telling the patients or their doctor about the differences.

Taff admitted that during the conspiracy, Central Rexall stopped being concerned about the health of its compounded medication patients or the medical necessity of its compounded medications. Instead, she admitted, Central Rexall devoted itself solely to making money.

At Taff’s direction, Central Rexall also stopped requiring that patients make copayments in order to receive medications, even though Central Rexall told the Pharmacy Benefits Administrator that it was collecting copayments. Taff admitted that Central Rexall continued shipping medications to individuals who had not paid their copayments because Central Rexall was making so much money on its medications.

Taff and her conspirators caused numerous fraudulent insurance claims for compounded medications that were not medically necessary. The Pharmacy Benefits Administrator paid Central Rexall over $50 million for compounded medications shipped to New Jersey. Taff received $1,553,616 from Central Rexall during the conspiracy.

Taff faces a maximum of 10 years in prison and a $250,000 fine, or twice the gain or loss from the offense. As part of the plea agreement, Taff must pay restitution of $51,670,251 and forfeiture of $1,553,616. Sentencing for is scheduled for Dec. 1, 2020.

U.S. Attorney Carpenito credited agents of the FBI’s Atlantic City Resident Agency, under the direction of Acting Special Agent in Charge Joe Denahan in Newark; IRS – Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez in Newark; and the U.S. Department of Labor, Office of Inspector General, New York Region, under the direction of Special Agent in Charge Michael C. Mikulka, with the investigation leading to the guilty plea. He also thanked the Division of Pensions and Financial Transactions in the State Attorney General’s Office, under the direction of Attorney General Gurbir S. Grewal and Division Chief Aimee Nason, for its assistance in the investigation.

The government is represented by Assistant U.S. Attorneys R. David Walk Jr. and Christina O. Hud of the U.S. Attorney’s Office in Camden and Assistant U.S. Attorney Barbara Ward, Senior Trial Counsel of the Asset Recovery and Money Laundering Unit.

Defense counsel: J. Garrison Jordan Esq., Hammond, Louisiana

John H. Durham, United States Attorney for the District of Connecticut, and Kristina O’Connell, Special Agent in Charge of IRS Criminal Investigation in New England, today announced that LOUIS DEMAIO, 69, of Guilford, waived his right to be indicted and pleaded guilty yesterday before U.S. District Judge Janet Bond Arterton to tax evasion and obstruction offenses.

Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the court proceeding occurred via videoconference.

According to court documents and statements made in court, DeMaio was employed as an accountant in East Haven and, from approximately 2010 to 2018, also operated Almatt LLC, a temporary employment agency that provided day laborers to construction companies.  Although DeMaio listed an individual (“Individual A”) on paper as the owner of Almatt, Almatt was effectively owned and run by DeMaio.

As part of Almatt’s operating procedures, Almatt invoiced construction companies for the cost of labor provided and, from the payments received from the companies, paid the employees for services rendered.  Almatt and DeMaio then provided the employees with W-2 forms reflecting that Almatt had undertaken required federal tax withholdings.  However, Almatt and DeMaio failed to withhold taxes and subsequently failed to pay over those withholdings to the IRS.  Almatt also never filed yearly income tax returns or quarterly 941 forms reflecting federal withholding and payroll taxes owed.

In addition, DeMaio issued hundreds of thousands of dollars of checks from Almatt made out to himself and to family members who did not work at the business.  From 2010 through 2018, DeMaio and his family received more than $2.5 million from Almatt.  DeMaio failed to report any of these distributions on his federal personal income tax returns.

In 2015, the IRS initiated a civil examination of Almatt, and then expanded the examination to evaluate the completeness of DeMaio’s personal income tax returns.  When the IRS confronted DeMaio about his failure to report income paid to him by Almatt, DeMaio fabricated a story that a substantial portion of the payments he received from Almatt were loan repayments from Individual A.  DeMaio also provided an IRS revenue agent with a false notarized document that DeMaio had created to support his story.  When the civil investigation was referred to IRS Criminal Investigation, DeMaio confirmed the fake loan repayment story in an interview with IRS special agents.

The tax loss as a result of DeMaio’s criminal conduct is $1,132,398.  DeMaio has agreed to pay full restitution, as well as interest and penalties.

DeMaio pleaded guilty to one count of tax evasion, which carries a maximum term of imprisonment of five years, and one count of obstructing and impeding the due administration of Internal Revenue laws, which carries a maximum term of imprisonment of three years.  Judge Arterton scheduled sentencing for November 3, 2020.

DeMaio is released on a $100,000 bond pending sentencing.

This matter is being investigated by the Internal Revenue Service – Criminal Investigation Division.  The case is being prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.

SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on August 11, 2020, a federal grand jury indicted Robert Andrewsh, Jr., age 25, of Dunmore, Pennsylvania, with methamphetamine trafficking and firearms offenses.

According to United States Attorney David J. Freed, the indictment charges Andrewsh with conspiring to distribute over 50 grams of methamphetamine in November and December 2019, with distributing and possessing with intent to distribute methamphetamine on three different occasions, and with possessing a firearm in furtherance of his narcotics trafficking.

The matter was investigated by the Drug Enforcement Administration, the Scranton Police Department, and the City of Carbondale Police Department.  Assistant United States Attorney Phillip J. Caraballo is prosecuting the case.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

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.

Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.

A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.

The penalties under federal law for the most serious drug offense are a minimum 10 years and maximum life of imprisonment, and for the firearms offense a minimum five years and maximum life of imprisonment, to run consecutive to any other sentenced imposed, and a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.

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