Oklahoma City - TOMMY SAVANH NAMMIXAY, 41, of Oklahoma City, has been sentenced to serve a federal prison term of 180 months for conspiracy to distribute marijuana and money laundering, announced U.S. Attorney Timothy J. Downing.

According to an Indictment filed on June 19, 2019, Nammixay was charged with conspiring with others to distribute marijuana, possession with intent to distribute marijuana, maintaining a drug involved premises, money laundering, and being a convicted felon unlawfully in possession of a firearm.  It was alleged that Nammixay was the head of an organization that illegally imported marijuana from illegal grow operations in Colorado Springs to Oklahoma City where it was further illegally distributed across Oklahoma.  The organization maintained stash houses in south Oklahoma City where the marijuana was brought for repackaging and re-distribution.  When Nammixay and other co-defendants were arrested on May 20, 2019, agents seized marijuana 100 pounds of marijuana, over $100,000 in cash, and 45 firearms. 

On January 13, 2020, Nammixay pleaded guilty to drug conspiracy and money laundering.  In addition, Nammixay agreed to the forfeiture of the 45 firearms and cash along with a house located on N.W. 14^th Street and multiple vehicles used by the organization.  As part of the plea agreement, Nammixay also stipulated that he was responsible for importing between 1,000 and 3,000 kilograms of marijuana during the course of the conspiracy.

Earlier today, U.S. District Court Judge Scott L. Palk sentenced Nammixay to serve 180 months in prison, followed by four years of supervised release when he completes his prison term.  In announcing Nammixay’s sentence, Judge Palk emphasized Nammixay’s prior criminal history, which included a prior federal drug trafficking conviction, as well as his role as the leader and organizer of the group.

Eight of Nammixay’s co-defendants have already been sentenced:

• Terry Browne, 34, of Cleveland, Oklahoma, was sentenced to 12 months and one day in prison, on June 3, 2020.
• Lawrence Harden, 34, of Broken Arrow, Oklahoma, was sentenced to 12 months and one day in prison, on June 3, 2020.
• Johnnie Vinavong, 42, of Oklahoma City, was sentenced to 37 months in prison on June 3, 2020.
• Adam Barnhart, 37, of Oklahoma City, was sentenced to 24 months in prison on June 5, 2020.
• Nathan Belcher, 23, of Norman, was sentenced to 12 months and one day in prison, on June 5, 2020.
• Iliana Macias, 30, of Oklahoma City, was sentenced to 12 months and one day in prison, on June 5, 2020.
• Ralph Golden, 60, of Oklahoma City, was sentenced to 60 months probation on June 5, 2020.
• Andrew Eaves, Sr., 49, of Purcell, was sentenced to 36 months probation on July 23, 2020.

This case is the result of an investigation by the Drug Enforcement Administration’s Oklahoma City District Office, with assistance from the City of Norman Police Department, IRS Criminal Investigations Division, Canadian County Sheriff’s Department, Homeland Security Investigations Oklahoma City Office, District 21 Task Force, Oklahoma Highway Patrol, and DEA offices in Colorado Springs and Tulsa. Assistant United States Attorneys’ Thomas Snyder and David Petermann prosecuted the case.

SAVANNAH, GA:  The first-ever dedicated prosecutor from Fort Stewart and a specialized animal cruelty prosecutor represent historic appointments bolstering the ranks of the Southern District of Georgia U.S. Attorney’s Office.

Capt. Darron Hubbard, of Savannah, and Jessica Rock, of Jackson, Ga., have been sworn into office to serve the United States in the Southern District of Georgia U.S. Attorney’s Office, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. Hubbard will serve as a full-time Special Assistant U.S. Attorney (SAUSA) in the Savannah Office, while Rock will serve as an SAUSA dedicated to animal cruelty cases.

“Our office’s resounding prosecutorial success in leveraging outstanding U.S. Army JAG Corps attorneys to serve full-time assignments in the U.S. Attorney’s Office continues to reap benefits for our law enforcement efforts while providing valuable experience to military attorneys,” said U.S. Attorney Christine. “In addition, a prosecutor specializing in animal cruelty cases adds tremendous firepower in our work to eradicate animal fighting operations in the Southern District and beyond.”

The new appointees are:

• Capt. Darron Hubbard, a six-year veteran of the U.S. Army, served as trial defense counsel for the Army in Kaiserslautern, Germany, before joining the JAG Corps at Fort Stewart. A summa cum laude graduate of DePaul University College of Law, Hubbard served in the Army as a criminal prosecutor and defense counsel, and as personal civil counsel for soldiers. He previously served as a SAUSA for the Western District of Oklahoma U.S. Attorney’s Office, and is the first full-time dedicated SAUSA appointed from Fort Stewart.
• Jessica Rock represents only the second time in the nation that a dedicated animal cruelty prosecutor has joined a U.S. Attorney’s Office. In 2019, she was appointed as Georgia’s Statewide Animal Crimes Prosecutor and Trainer and serves as an Assistant District Attorney with the Towaliga Judicial Circuit. Rock provides statewide animal cruelty and animal fighting case assistance for law enforcement and prosecutors, and statewide and national training to law enforcement, animal control officers, prosecutors, judges and veterinarians. In 2004, she became Georgia’s first dedicated animal cruelty prosecutor, creating Georgia's first animal cruelty task force with law enforcement. For more than 16 years, Jessica has dedicated her career to the prosecution of animal crimes and education on the closely connected link between animal abuse and human violence. Rock is a graduate of the Emory University School of Law and a former clerk for a former Chief Justice of the Supreme Court of Georgia. She currently is assisting in the prosecution of two major cockfighting cases in the Southern District.

The U.S. Attorney’s Office for the Southern District of Georgia, led by U.S. Attorney Bobby L. Christine, prosecutes cases involving violations of federal laws, and represents the interests of the United States government and its agencies in criminal and civil matters.in the 43 counties of the Southern District.

HOUSTON – A 52-year-old pain management physician from Houston has paid $530,000 to resolve allegations he falsely billed Medicare for the use of electro-acupuncture devices, announced U.S. Attorney Ryan K. Patrick. 

From March 1, 2019, to Oct. 31, 2019, Dr. Syed Nasir billed Medicare for the implantation of neurostimulator electrodes–a surgical procedure that usually requires use of an operating room. Medicare pays thousands of dollars for this procedure.

However, Nasir did not perform these surgeries. Instead, he applied a device used for electro-acupuncture. This procedure involves inserting needles into patients’ ears with the neurostimulator taped behind them with an adhesive.  

Medicare does not reimburse for electro-acupuncture devices as implantable neurostimulators.

This is the second settlement of its kind involving electro-acupuncture billing the Southern District of Texas has resolved.

The Department of Health and Human Services – Office of Inspector General and the Centers for Medicare and Medicaid Services conducted the investigation with the assistance of Qlarant, the Unified Program Integrity Contractor for Medicare. Assistant U.S. Attorney Brad Gray handled the matter.

The claims resolved by this agreement are allegations only, and there has been no determination of liability.

ABINGDON, Va. – Jeremy Mallory, a Big Stone Gap man who was one of 21 defendants charged with conspiring to distribute 500 grams or more of methamphetamine, was sentenced yesterday in U.S. District Court in Abingdon to 168 months in federal prison, United States Attorney Thomas T. Cullen announced.

Mallory, 42, pleaded guilty in 2019 to conspiracy to distribute and possess with the intent to distribute 500 grams or more of methamphetamine.

According to court documents, Mallory was one of the 21 defendants who conspired to distribute methamphetamine in Lee and Wise counties, and elsewhere, between July 1, 2016 and May 1, 2019. To date, all 21 defendants have been convicted via plea agreement or jury trial.

A complete list of the defendants and charges can be found here.

The investigation of the case was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Southwest Virginia Drug Task Force, which is comprised of the Scott County Sheriff’s Office, Lee County Sheriff’s Office, Wise County Sheriff’s Office, Dickenson County Sheriff’s Office, Norton Police Department, Big Stone Gap Police Department, and the Virginia State Police.  Assistant United States Attorneys Lena Busscher, Anthony P. Giorno, and Jonathan Jones prosecuted the case for the United States.

MISSOULA — A California man who admitted blackmailing an individual for years by threatening to inform on the person if he wasn't paid money was sentenced today  to five years of probation, U.S. Attorney Kurt Alme said.

Bryan Gregg Waterfield Nash, 57, of Woodside, CA, pleaded guilty in May to blackmail,a misdemeanor.

U.S. Magistrate Judge Kathleen L. DeSoto presided.

The prosecution said in court documents that the blackmail began in December 2013 and ran until about June 2019 in Whitefish and in northern California. Nash knew the victim, identified as John Doe 1, for many years. Beginning in about December 2013, Nash frequently communicated with John Doe 1 in person and electronically and with his family, friends and colleagues.

Nash demanded money from John Doe 1, accused the victim of committing federal crimes, including tax fraud, and repeatedly asked for financial assistance.

When John Doe 1 stopped responding to Nash, Nash intensified communications with the victim's family, friends, employees and privately-retained lawyers. Many of the messages referenced the victim being investigated by the IRS or FBI, and Nash repeatedly asked to meet with the victim's lawyers to "settle" with the victim. Nash's requests to settle with John Doe 1 were in consideration for not filing a civil complaint against the victim or reporting his alleged crimes to law enforcement.

Assistant U.S. Attorneys Tim Racicot and Ryan Weldon prosecuted the case, which was investigated by the FBI.

XXX

From on or about November 25, 2018, and continuing until on or about April 23, 2019, MOSES STRICKLAND, JR., ANTHONY HOLEYFIELD and ANTWON HOLEYFIELD (and others known and unknown to authorities) conspired to steal, receive, possess, conceal, store, barter, sell, and traffic as many as 15 stolen firearms.

Moses Strickland, Jr., age 22, from Decatur, Illinois, was sentenced on August 21, 2020 to over six years in prison after a March 11, 2020, guilty plea to one count of conspiracy to possess stolen firearms, one count of possession of stolen firearms, and one count of possession of a firearm by a prohibited person.

Antwon Holeyfield, age 25, from Sioux City, Iowa, was sentenced on January 24, 2020 to over three years in prison after a August 12, 2019, guilty plea to one count of conspiracy to possess stolen firearms and one count of possession of stolen firearms.

Anthony Holeyfield, age 21, from Sioux City, Iowa, was sentenced on January 31, 2020, to 8 months in prison after a September 23, 2019, guilty plea to one count of conspiracy to possess stolen firearms and one count of possession of stolen firearms.

Evidence presented by the United States at the detention, change of plea, and sentencing hearings in this case revealed, on November 26, 2018, Antwon Holeyfield and Strickland broke into a victim’s Woodbury County, Iowa home using an axe.  Once inside the two stole valuables including 15 firearms.  After leaving the victim’s residence, Antwon Holeyfield and Strickland went to Anthony

Holeyfield’s residence where Anthony Holeyfield helped them move all of the stolen firearms and other stolen items into his house.  Then men worked together over the next several months to sell the stolen firearms.  The men conducted deals at Anthony Holeyfield’s home and other places to people who lived in and out of Iowa.  Stickland even attempted to sell some to the firearms in Chicago, Illinois before his firearms were interdicted by police.  Despite law enforcement’s best efforts a number of the stolen firearms are still unrecovered.  

Strickland was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand.  Strickland was sentenced to 72 months’ imprisonment.  He was ordered to make $14,034.78 joint and several in restitution. He must also serve a 3-year term of supervised release after the prison term.  There is no parole in the federal system.

Antwon Holeyfield was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand to 42 months’ imprisonment.  He was ordered to make $14,034.78 joint and several in restitution. He must also serve a 3-year term of supervised release after the prison term.  There is no parole in the federal system.

Anthony Holeyfield was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand to 8 months’ imprisonment.  He was ordered to make $14,034.78 joint and several in restitution. He must also serve a 2-year term of supervised release after the prison term.  There is no parole in the federal system.

Strickland is being held in the United States Marshal’s custody until he can be transported to a federal prison.

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

This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted this case with support from our Project Guardian partners.  For more information about Project Guardian, please see https://www.justice.gov/ag/page/file/1217186/download.

The case was investigated by the Sioux City, Iowa and the Chicago, Illinois Police Department, Woodbury County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives and was prosecuted by Assistant United States Attorney Forde Fairchild. 

Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. 

The case file number is 19-4027.

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PROVIDENCE – A registered sex offender previously convicted in Rhode Island state court for indecent solicitation of a child was arraigned today on new federal charges of enticement of a minor to engage in sexual conduct, and possessing and distributing child pornography.

According to court documents, in January 2020, members of the Rhode Island State Police Internet Crimes Against Children (ICAC) Task Force received information from the National Center for Missing and Exploited Children that an individual uploaded an image of child pornography from an IP address in Rhode Island. An investigation by members of the ICAC determined that the IP address belonged to an Internet subscriber in West Warwick.

Further investigation by members of the ICAC determined that Robert H. King, 35, of Cranston, who was staying with a friend in West Warwick, allegedly sent several messages on social media platforms, contacting juveniles and sending them sexual messages. Among the alleged online conversations was a sexually explicit conversation King had with a girl who allegedly informed him that she was twelve years old. It is alleged that King solicited the pre-teen to engage in sexual activity.

On March 26, 2020, members of the ICAC Task Force executed a court-authorized search of the West Warwick residence where King was staying and took possession of his cell phone. A forensic audit of King’s cell phone allegedly revealed approximately 135 images of child pornography.

King, charged previously in Rhode Island state court in this matter, appeared today before U.S. District Court Magistrate Judge Lincoln D. Almond and was ordered detained in federal custody on a federal criminal complaint charging him with coercion/enticement of a minor to engage in sexual conduct, possession of child pornography, and distribution of child pornography, announced United States Attorney Aaron L. Weisman, Rhode Island State Police Superintendent Colonel James M. Manni, and Homeland Security Investigations Acting Special Agent in Charge Michael S. Shea.

A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.

The case is being prosecuted by Assistant U.S. Attorney Ronald R. Gendron.

United States Attorney Aaron L. Weisman thanks the Rhode Island Department of the Attorney General for their assistance in the preparation of this matter for prosecution in federal court.

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A man who illegally possessed a gun pled guilty and was sentenced August 24, 2020, to more than nine years’ in federal prison. 

Robert Anderson, 27, from Denver, Colorado, pled guilty to being a felon in possession of a firearm.  Anderson had been previously convicted of three felony crimes in Texas, in 2012, 2015 and 2018, respectively.

Evidence at the detention, change of plea, and sentencing hearing revealed the following.  On December 5, 2019, Anderson, who was already a three-time felon, attempted to carjack an innocent victim in front of the Hard Rock Casino and succeeded in robbing the victim at gunpoint.  The weapon used was a handgun that was loaded (and designed to use) .410 shotgun shells.

Sentencing was held before United States District Court Chief Judge Leonard T. Strand.  Anderson remains in custody of the United States Marshal until he can be transported to a federal prison.  Anderson was sentenced to 112 months’ imprisonment.  He must also serve a term of 3 years of supervised release following the imprisonment.  There is no parole in the federal system.

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

This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see https://www.justice.gov/ag/page/file/1217186/download.

The case was investigated by the Sioux City, Iowa Police Department and prosecuted by Assistant United States Attorney Forde Fairchild.

Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. 

The case file number is 20-4013.  Follow us on Twitter @USAO_NDIA.

An employee of the State of Michigan’s Unemployment Insurance Agency and a Detroit Woman were charged in a criminal complaint for their alleged role in a $1.8 million unemployment insurance fraud scheme aimed at defrauding the State of Michigan and the U.S. Government of funds earmarked for unemployment assistance during the COVID19 pandemic, announced United States Attorney Matthew Schneider.

Joining in the announcement were Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General, Special Agent in Charge Douglas J. Zloto, US Secret Service and Jeffrey Frost, Special Fraud Advisor, Unemployment Insurance Agency, Michigan Dept. of Labor and Economic Opportunity.

Charged are Jermaine Rose, 41, and Serenity Poynter 36.

According to the complaint, Jermaine Rose was a Lead Claims Examiner for the State of Michigan Unemployment Insurance Agency.  His duties included reviewing, processing and verifying the legitimacy of unemployment insurance claims.

Beginning in May, 2020, it is alleged that Rose used his insider access to release payment on hundreds of fraudulent claims. Specifically, Rose is alleged to have used his network credentials to override “fraud stops” on unemployment insurance claims that the State computer system had identified as potentially fraudulent. Rose’s actions resulted in the fraudulent disbursement of over $1.1 million of federal and state funds intended for unemployment assistance during the pandemic. Rose attempted to override another $761,000 in fraudulent unemployment claims, but the State was able to prevent payment on those additional claims.

Rose is alleged to have worked with outside co-conspirators as part of his fraud scheme. One of those alleged co-conspirators is Detroit resident Serenity Poynter.  Poynter, an associate of Rose’s, is alleged to have filed at least 25 fraudulent claims seeking over $350,000 in unearned unemployment insurance benefits. Poynter allegedly used variations of her own name and bogus social security numbers to support these fraudulent claims. The State’s automated system identified many of those claims as potentially fraudulent, but Rose is alleged to have overridden many of those fraud-stops, leading to approval of numerous fake unemployment insurance claims.

“At a time when thousands of people in Michigan are out of work because of the pandemic, the defendants are charged with stealing unemployment benefits that should have gone to Michiganders trying to feed their families.  Anyone who steals unemployment funds steals from the people of Michigan,” stated United States Attorney Matthew Schneider.

“An important mission of the Office of Inspector General is to investigate allegations relating to unemployment insurance fraud. We will continue to work with our law enforcement partners to investigate these types of allegations,” stated Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.”

“The defendants in this case took advantage of the good will and generosity of the American people. Out of greed and blatant disregard for those suffering during this pandemic, the perpetrators manipulated the Michigan Unemployment Insurance Agency system for personal gain. We will continue to work with our law enforcement partners throughout Michigan to bring these criminals to justice,” said Douglas J. Zloto, Special Agent in Charge, U.S. Secret Service, Detroit Field Office.

“It’s disheartening that a public servant would abuse the trust of Michiganders because of their own greed, especially during a time when workers need this financial assistance the most. We thank the US Attorney’s office and our other state and federal law enforcement partners for their efforts to protect workers and the integrity of the unemployment system,” stated Jeffrey Frost, Special Fraud Advisor, Unemployment Insurance Agency, Michigan Dept. of Labor and Economic Opportunity.

This is the third unemployment insurance fraud scheme charged by the United States Attorney’s Office in just over a month. On July 17, 2020, State of Michigan contract employee Bandi Hawkins was charged with participating in scheme to defraud the State of Michigan out of approximately $2 million in unemployment insurance funds. Last week, Southfield resident Samuel George Baker was similarly charged with offenses arising out of an unemployment insurance scheme allegedly targeting the States of Michigan and Pennsylvania. Those cases remain pending.

A complaint is only a charge and is not evidence of guilt.  Trial cannot be held on felony charges in a complaint.  When the investigation is completed a determination will be made whether to seek a felony indictment.

The case is being prosecuted by Assistant United States Attorney John K. Neal. The investigation is being conducted jointly by the Department of Labor, Office of Inspector General, the United States Secret Service, and the Unemployment Insurance Agency, Michigan Department of Labor and Economic Opportunity

A man who illegally possessed stolen and loaded guns was sentenced on July 30, 2020 to more than five years in federal prison.          

James Patrick Murphy, age 38, from Algona, Iowa, received the prison term after a February 26, 2020, guilty plea to two counts of being a felon, drug user, and domestic abuse misdemeanant in possession of a firearm, and one count of possession of a stolen firearm. 

Evidence presented by the United States at the detention, change of plea, and sentencing, hearings revealed Murphy was a felon, recidivist domestic abuser, and drug user.  Each of these three facts precluded Murphy from lawfully possessing guns.  Murphy’s unlawful possession was discovered when law enforcement received a report of a person who appeared to be sleeping behind the steering wheel of his pickup truck.  Law enforcement arrived at the reported location in Algona, Iowa, and recognized the person as Murphy.  As law enforcement approached the pickup, they observed an AR-15-style rifle and a semiautomatic pistol on the seat next to the defendant.  Murphy was removed from the pickup.  Items seized from defendant’s truck included the AR-15 rifle with a fully loaded 20 round magazine, a scope, a Taurus pistol with a fully loaded magazine and a round in the chamber, a small baggie of methamphetamine, a pouch containing a cellophane wrapper with four small pills and four guitar picks, a United States passport for the defendant, and a cellphone. Subsequent investigations revealed that the guns were stolen. 

Murphy was sentenced in Sioux City by United Stats Court Chief Judge Leonard T. Strand.  Murphy was sentenced to 64 months’ imprisonment.  He must also serve a 3-year term of supervised release after the prison term.  There is  no parole in the federal system.

Murphy is being held in the United States Marshal’s custody until he can be transported to a federal prison.      

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

This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted this case with support from its Project Guardian partners.  For more information about Project Guardian, please see https://www.justice.gov/ag/page/file/1217186/download.       

The case was investigated by the United States Department of Justice’s Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Kossuth County Sheriff’s Office and Algona, Iowa Police Department.  The case was prosecuted by Assistant United States Attorney Forde Fairchild. 

Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. 

The case file number is 19-3042.

Follow us on Twitter @USAO_NDIA.

A convicted felon who possessed a gun while also using drugs was sentenced to six years in federal prison.

Curtis Eugene Koesters, age 40, received the prison term after a February 20, 2020 guilty plea to one count of possession of a firearm by a felon and a drug user.

Evidence presented at the change of plea and sentencing hearings in this case revealed that defendant was a recidivist drug dealer, with a history of dangerousness, who unlawfully possessed a gun in connection with his felonious drug trafficking activities.  When he was discovered in possession of the gun, he was also in possession of a methamphetamine pipe, approximately 7 grams of methamphetamine, $561 in US Currency, a syringe containing methamphetamine, and a digital scale, among other items.

Koesters was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand.  Koesters was sentenced to 72 months’ imprisonment.  He must also serve a 3-year term of supervised release after the prison term.  There is no parole in the federal system.

Koesters is being held in the United States Marshal’s custody until he can be transported to a federal prison.

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

This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.  For more information about Project Guardian, please see https://www.justice.gov/ag/page/file/1217186/download.

The case was investigated by the Sioux City Police Department and prosecuted by Assistant United States Attorney Forde Fairchild.

Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. 

The case file number is 19-CR-4078.

Follow us on Twitter @USAO_NDIA.

PITTSBURGH – United States Attorney Scott W. Brady and Pennsylvania Attorney General Josh Shapiro today announced that 33 individuals, including inmates at eight state and county jails and prisons in western Pennsylvania and their accomplices, have been charged in federal and state criminal complaints for illegally obtaining Coronavirus Aid, Relief, and Economic Security Act (CARES) Act was signed into law on March 27, 2020.

U.S. Attorney Brady stated, "The unprecedented scope and audacity of this inmate unemployment compensation fraud is appalling. These benefits were intended to help Pennsylvania workers make it through a difficult time. These inmates and their accomplices took advantage of this national emergency to line their pockets through fraud. Their conduct is despicable at any time, but particularly in a time of a national emergency. As these charges make clear, this conduct will not go unpunished, and my office will continue to work with our federal, state and local law enforcement partners to bring these criminals and their co-conspirators to justice. The message to those who engaged in this fraud is clear: if you submitted a fraudulent application for unemployment benefits, withdraw it. If you got a check or debit card through fraud, return it. If you don’t, expect to hear a knock on your door very soon."

"These defendants took advantage of a public health emergency to cash in on the backs of working people across our Commonwealth. They rip-offed off a program meant for everyday people whose lives were uprooted by COVID-19, some doing so from jail cells in local Pennsylvania prisons," said PA Attorney General Shapiro. "Our work here is not done. We will continue to root out scammers taking advantage of a system put in place to help during a trying time."

"An important mission of the Office of Inspector General is to investigate allegations of fraud that threaten the integrity of the Unemployment Insurance program. We will continue to work with our law enforcement partners to investigate this alleged criminal activity," said Derek Pickle, Acting Special Agent-in-Charge, Philadelphia Region, U.S. Department of Labor Office of Inspector General.

"Defrauding U.S. government programs intended to provide economic relief to disaster victims is not simply a matter of theft of U.S. tax dollars. It is far more: it undermines the security and wellbeing of our most vulnerable communities at a time when they are in the greatest in need of assistance," said Timothy Burke, Special Agent in Charge of the U.S. Secret Service’s Pittsburgh Field Office. "The U.S. Secret Service is committed to working with all of our partners, both in government and in the financial sector, to detect and arrest all those that engage in such crimes."

"The people accused today cooked up this scheme from behind bars to steal unemployment benefits that should’ve gone to families in our area who are out of work and trying to feed their families," said FBI Pittsburgh Special Agent in Charge Michael Christman. "At a time when people across the country are already struggling, this group capitalized on the hardships created by the pandemic. We know there are more out there and we will not stop our investigation until those who thought they could get some free money are brought to justice."

The following individuals were named in 16 separate criminal complaints filed this week in the U.S. Court for the Western District of Pennsylvania:

Levi Stroud, 24, incarcerated at Pennsylvania State Correctional Institution (SCI) -Greene since approximately January 22, 2018, and Christina Marie Weigner, of 389 Steubenville Pike, Burgettstown, PA 15021, are charged with knowingly filing, or aiding and abetting the filing, of a claim for PUA benefits that contained materially false, fictitious, and fraudulent statements and conspiracy to commit fraud in connection with a major disaster or emergency benefit.

Anthony Lee, 40, incarcerated at Allegheny County Jail since September 29, 2019, and Amara Ramsey (Lee’s girlfriend and claim filer), 38, of 2418 Aliquippa Street, Apt. 404, Pittsburgh, PA 15213, are charged with knowingly filing, or aiding and abetting the filing, of a claim for PUA benefits that contained materially false, fictitious, and fraudulent statements.

Lamont Wilford, 49, incarcerated at Allegheny County Jail since November 28, 2019; Casey Norrick (Wilford’s girlfriend), 44, of 9 Spruce Street, Natrona Heights, PA; and Amara Ramsey (claim filer) 38, of 2418 Aliquippa Street, Apt. 404, Pittsburgh, PA 15213, are charged with knowingly filing, or aiding and abetting the filing, of a claim for PUA benefits that contained materially false, fictitious, and fraudulent statements.

Orlando Grandison, 30, incarcerated at Allegheny County Jail since August 7, 2019; Nathaniel Weatherspoon, 28, currently incarcerated at Allegheny County Jail and has been since approximately October 5, 2017; and Andrea Zenmon (claim filer), 24, of 217 Rolling Woods Drive, North Versailles, PA 15137, are charged with knowingly filing, or aiding and abetting the filing, of a claim for PUA benefits that contained materially false, fictitious, and fraudulent statements.

Marcenia Massey, 38, of 221 Ormsby Avenue, Pittsburgh, PA 15210, is charged with knowingly filing, or aiding and abetting the filing, of a claim for PUA benefits that contained materially false, fictitious, and fraudulent statements. The claim was filed in the name of her incarcerated son, Isaiah Sterdivant, who is currently incarcerated at ACJ and has been since approximately March 20, 2019.

Shicon Jordan, 46, an SCI-Greene inmate incarcerated since March 12, 2015; Dennis Hill (aka Dennis Jordan - brother and currently on parole until November 20, 2020) 33, of Philadelphia, PA; and Niya Hill (claim filer), 35, of 511 Lloyd Court, Johnstown, PA 15906, are charged with conspiracy to commit fraud in connection with a major disaster or emergency benefit, and knowingly filing, or aiding and abetting the filing, claims for PUA benefits that contained materially false, fictitious, and fraudulent statements.

Jerome Dockblandi Poole, 33, an inmate at SCI-Greene and Tracy Ann Stankiewicz (ex-girlfriend and claim filer), of 1927 Woodmont Avenue, New Kensington, PA, are charged with knowingly filing, or aiding and abetting the filing, of a claim for PUA benefits that contained materially false, fictitious, and fraudulent statements.

Joseph Thomas Gainer, 28, an SCI-Greene inmate; Jonetta Meneffe Davis (friend) of 1410 Franklin Avenue, Pittsburgh, PA; and Joshua Calibe Lowry (aka El Rocco, claim filer), are charged with knowingly filing, or aiding and abetting the filing, of a claim for PUA benefits that contained materially false, fictitious and fraudulent statements; Gainer, Davis and Lowry are also charged with conspiracy to commit fraud in connection with a major disaster or emergency benefit; and Gainer is charged with making a materially false, fictitious, or fraudulent statement or representation to federal agents of the U.S. government.

Amasa Lamont Camp, 23, an inmate at SCI-Fayette, is charged with knowingly filing, or aiding and abetting the filing, of a claim for PUA benefits that contained materially false, fictitious, and fraudulent statements. According to the complaint, Camp used Global Tel-Link electronic messages to provide his personal identifiers to a member of his family for the purpose of fraudulently applying for PUA benefits on his behalf.

Izona Punch, of 7403 Race Street, Pittsburgh, PA, is charged with knowingly filing a claim for PUA benefits that contained materially false, fictitious, and fraudulent statements in the name of SCI - Fayette inmate "RP" without his knowledge.

Jerrell Huddleston, who was incarcerated at Lawrence County Jail from approximately March 17, 2020 to July 24, 2020, then transferred to the Northeast Ohio Correction Facility where he is currently located, and Kalaurie Elahdy (claim filer), age, of 101 W. Ridge Ave., Sharpsville, PA 16150, are charged with knowingly filing, or aiding and abetting the filing, of a claim for PUA benefits that contained materially false, fictitious, and fraudulent statements and conspiring to commit fraud in connection with a major disaster or emergency benefits.

Tylan Huddleston, 25, incarcerated at Lawrence County Jail since June 5, 2020, and Paris Davis (claim filer), 23, of 10 W. Reynolds Street, New Castle, PA, are charged with knowingly filing, or aiding and abetting the filing, of a claim for PUA benefits that contained materially false, fictitious, and fraudulent statements; and Huddleston and Davis are also charged with conspiring to commit fraud in connection with a major disaster or emergency benefit.

Clifford Yoders, 40, incarcerated at Butler County Prison since June 11, 2020, is charged with knowingly filing, or aiding and abetting the filing, of a claim for PUA benefits that contained materially false, fictitious, and fraudulent statements. According to the complaint, Yoders used a jail phone to direct a relative to file the claim.

Lisa Lutz, 60, of 113 Snow Shoe Lane, Greensburg, Pennsylvania 15601, is charged with knowingly filing, or aiding and abetting the filing, of a claim for PUA benefits that contained materially false, fictitious, and fraudulent statements. The claim was filed on behalf of her daughter, Terra Rager, an inmate at Westmoreland County Prison. According to the complaint, the funds received were utilized to pay her daughter’s expenses, including her attorney fees and her rent and to make deposits onto her commissary at the Westmoreland County Prison.

Gary Clanton, 33, an inmate at SCI-Fayette since July 3, 2014, is charged with knowingly filing, or aiding and abetting the filing, of a claim for PUA benefits that contained materially false, fictitious, and fraudulent statements. According to the complaint, Clanton used Global Tel-Link electronic messages to provide his personal identifiers to an unidentified male for the purpose of fraudulently applying for PUA benefits on his behalf.

Jamelle Fairfax, 32, an inmate at SCI-Fayette since March 30, 2020, and he was still incarcerated at the time of the application filing, and Amanda Fairfax (wife and claim filer), 35, of Uniontown, PA 15402, are charged with knowingly filing, or aiding and abetting the filing, of a claim for PUA benefits that contained materially false, fictitious, and fraudulent statements, and with conspiring to commit fraud in connection with a major disaster or emergency benefit.

According the affidavits filed in these cases, the Pandemic Unemployment Assistance program is a new federal program created as part of the CARES Act. The PUA program provides unemployment benefits to workers who have lost their jobs as a result of the coronavirus pandemic. In Pennsylvania, the PUA program is administered by the Pennsylvania Department of Labor & Industry (DLI), but its benefits are funded in large part by the federal government. PUA benefits are paid in connection with the President’s declaration that the COVID-19 pandemic constitutes an emergency under the Robert T. Stafford Disaster Relief and Emergency Assistance Act.

Individuals are only eligible for PUA benefits if they are both unemployed for reasons related to the COVID-19 pandemic and available to work. In order to receive benefits, an individual must access the PUA website and file a PUA claim. The applicant is required to enter personally identifiable information as well as answer the eligibility questions. Individuals who are serving a sentence of incarceration, or who are detained pending a criminal trial, are neither available for work nor unemployed for reasons related to the COVID-19 pandemic. As a result, they are not eligible to receive PUA benefits for the period of their incarceration.

The criminal complaints detail the defendants’ alleged roles in the acquisition of PUA benefits. In general, the inmates used jail phones or other inmate communications to direct or assist persons outside the prison to file claims online using the inmate’s accurate Personal Identifying Information (PII), including full name, date of birth, and Social Security number, but falsely asserting that the inmate is available to work and is unemployed as a result of the COVID 19 pandemic. The benefits were then directed to the applicants’ on-file addresses outside of the correctional facility. Once approved, applicants were required to provide weekly certifications to continue to receive PUA program benefits.

Several of the federal complaints filed contain transcripts of jail calls or other inmate communications that allege the defendants knew that the statements or representations being made were false, and that financial benefits would be awarded.

Title 18, United States Code, Section 1040(a)(2), prohibits fraud in connection with emergency benefits; Title 18, United States Code, Section 371, prohibits two or more people conspiring to commit a federal crime or defraud the United States; and Title 18 United States Code, prohibits lying to a federal law enforcement agent in the course of an investigation. For a violation of Title 18, United States Code, Section 1040(a)(2), the law provides for a maximum total sentence of 30 years in prison, a $250,000 fine, or both. For violations of Title 18, United States Code, Section 371 and Title 18, United States Code, Section 1001, the law provides for a maximum total sentence of five years in prison, a $250,000 fine, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.

Assistant U.S. Attorneys Brendan McKenna, Jonathon Lusty, Benjamin Risacher, Christopher Cook, and Michael Ivory are prosecuting these cases on behalf of the federal government.

The following individuals were named in criminal complaints filed in the Pennsylvania Courts of Common Pleas and will be arrested this week by the Pennsylvania Office of Attorney

Jessica Rae Conrad and Homer Mizenko of Kiskiminetas Township, PA, have been fraudulently signing people up for PUA benefits who they know are not eligible to receive the benefits. In exchange for signing the people up for benefits, Conrad and Mizenko are being paid by the people they are registering. Typically, $1,000 per person. Conrad and Mizenko are being charged with 1 count of Conspiracy (F-2) and 1 count of Theft by Deception (F-2).

Thaddeus Crumbley and Steven Ashby are incarcerated at Forest State Correctional Institution. The

investigation uncovered that they both falsely filed for PUA benefits and have been fraudulently filing for others at the prison in exchange for drugs and/or money. Crumbly and Ashby are charged with 1 count of Conspiracy (F-2) and 1 count of Theft by Deception (F-2).

Robert Currington is incarcerated in Somerset County Correctional Facility. He, with the help of an unidentified woman outside of prison, filed fraudulent PUA claims for himself and other inmates at the prison. Currington is charged with 1 count of Conspiracy (F-2) and 1 count of Theft by Deception (F-2).

Under Pennsylvania law, they each face up to 20 years in jail and fines and penalties up to $50,000. Ms. Conrad and Mr. Mizenko face 30 years in jail and $75,000 because of additional identity theft charges.

These cases are being prosecuted by Chief Deputy Attorney General Brian Zarallo and Senior Deputy Attorney General Katherine Wymard.

Members of the Western Pennsylvania COVID-19 Fraud Task Force conducted the investigation leading to the charges in these cases. The Task Force was formed in March 2020 to investigate and prosecute coronavirus-related fraud. Task Force members include representatives from the United States Attorney’s Office, the Pennsylvania Office of the Attorney General, the Federal Bureau of Investigation, the United States Secret Service, the U.S. Postal Inspection Service, Internal Revenue Service – Criminal Investigations, U.S. Immigration and Customs Enforcement (ICE)/Homeland Security Investigations (HSI), U.S. Department of Labor – Office of Inspector General, Social Security Administration – Office of Inspector General, the U.S. Department of Education – Office of Inspector General and the Pennsylvania State Police.

The United States Secret Service played an important role in these prosecutions, as did investigators from the Pennsylvania Department of Corrections and the individual county jails, including the Allegheny County Jail. Investigators from the Allegheny County Jail, who are detectives with the Allegheny County Police, were among the first investigators who uncovered the fraud of Wilford and Norris and brought it to the attention of federal authorities.

United States Attorney Scott W. Brady and Pennsylvania Attorney General Josh Shapiro urged those who have filed fraudulent claims to withdraw them and further urged those who received a check or debit card as a result of that fraud to return those items. Both Mr. Brady and Mr. Shapiro expect further prosecutions as a result of this fraud.

If you believe you have been a target or victim of coronavirus-related fraud, please report it to the Task Force at:

• Western Pennsylvania COVID-19 Fraud Task Force’s Toll Free Hotline:

1-888-C19-WDPA or 1-888-219-9372

• Western Pennsylvania COVID-19 Fraud Task Force’s email address:

• Pennsylvania Attorney General’s price gouging email address:

pricegouging@attorneygeneral.gov

A criminal complaint is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.

A convicted felon who illegally possessed a gun during a brief standoff with police was sentenced August 21, 2020, to 20 months in federal prison.

Antoine Argue, 38, from Park Forest, Illinois, received the prison term after a guilty plea to illegally possessing a firearm as a felon. 

Evidence presented by the United States at the detention, change of plea, and sentencing hearings showed that law enforcement made a traffic stop of a vehicle on June 15, 2019 in which Argue was a passenger.  Argue was uncooperative when officers repeatedly ordered him to show his hands and to keep his hands up. Eventually as Argue exited the vehicle, law enforcement heard a metal object hit the pavement, which was identified as a loaded Taurus .45 caliber handgun. 

Argue was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand.  Argue was sentenced to 20 months’ imprisonment.  He must also serve a two-year term of supervised release after the prison term.  There is no parole in the federal system.

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

This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.  For more information about Project Guardian, please see https://www.justice.gov/ag/page/file/1217186/download.

The case was investigated by the Sioux City, Iowa Police Department and prosecuted by Assistant United States Attorney Forde Fairchild.    

Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. 

The case file number is 19-CR-4047.

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A woman who illegally obtained SNAP and SSI funds was sentenced August 24, 2020, to time served.

Aracely Batres-Alonzo, age 26, from Guatemala received the prison term after an October 21, 2019, guilty plea to two counts of theft of U.S. government funds. 

In a plea agreement, Batres-Alonzo admitted that between about January 1, 2016 and May 31, 2019, she used $43,346.00 in the form of Supplemental Nutrition Program (SNAP), formerly Food Stamps; and Family Investment Program (FIP) funds, to which the she was not entitled to.  She fraudulently reported on her Iowa Department of Human Services (DHS) applications and review/recertification eligibility documents (RREDs) that she and her spouse (father of her children) were not employed. The investigation showed her spouse had been working under an assumed name. The investigation also shows that Batres-Alonzo had been employed with several different companies since April 2015, and never reported her or her spouse’s income to DHS.  This unreported income would have made the household ineligible for benefits.    

Batres-Alonzo, the representative payee for her minor child’s Supplemental Security Income (SSI) benefit, administered by the Social Security Administration (SSA), concealed material information from the SSA in her capacity as her minor child’s representative payee.  She failed to report her full household income to the SSA, causing her minor child to be overpaid $1,829.29 between April 1, 2018 and March 30, 2019. 

Batres-Alonzo was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand.  Batres-Alonzo was sentenced to 2 days’ time served.  She was ordered to make $43,346 in restitution to the Department of Human Services and $1,829.29 in restitution to the Social Security Administration.            

The case was prosecuted by Assistant United States Attorney Kevin C. Fletcher and investigated by United States Department of Agriculture, Office of Inspector General (USDA-OIG), the Department of Homeland Security, Bureau of Immigration and Customs Enforcement (ICE), the Social Security Administration, Office of Inspector General (SSA-OIG), and the Iowa Department of Inspections and Appeals (IDIA). 

Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. 

The case file number is 19-CR-03028.

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ALEXANDRIA, Va. – An Ashburn man pleaded guilty today to defrauding the Paycheck Protection Program (PPP), a federal initiative designed to help businesses pay their employees and meet their basic expenses during the COVID-19 pandemic.

“During a time of national crisis, the federal government set aside money to help struggling businesses pay their hardworking employees and keep their doors open,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Tarik Jaafar planned and executed a scheme to steal money from this essential program and use it for his own personal benefit. This office will continue to work with our law enforcement partners to make sure that federal economic assistance provides relief for beleaguered businesses and not profits for devious criminals.”

According to court documents, Tarik Jaafar, 42, conspired with his wife, Monika Magdalena Jaworska, to create four shell companies. These companies conducted no legitimate business and existed solely as a means to execute the scheme to defraud. From April 13 to May 6, Jaafar and Jaworska applied for 18 separate PPP loans in the names of the four shell companies valued at approximately $6.6 million, falsely claiming, among other things, that the businesses had employees and they needed the loans to pay their employees’ salaries. Jaafar and Jaworska fraudulently induced banks to distribute approximately $1.4 million in loans which they intended to use for their personal benefit.

“The Paycheck Protection Program was developed to aide small businesses during these challenging times,” said Hannibal “Mike” Ware, Inspector General of the Small Business Administration. “Our office will remain relentless in the pursuit of bad actors who seek to exploit SBA’s vital economic programs. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and commitment to seeing justice served.”

“Tarik Jaafar pleaded guilty to defrauding the Paycheck Protection Program while millions of Americans are suffering, physically and financially, and using the money to his own benefit,” said Robert E. Bornstein, Acting Special Agent in Charge of the FBI Washington Field Office Criminal Division. “The FBI will not tolerate anyone who schemes and steals government funds designed to provide much-needed relief to American business owners. The FBI is committed to tackling COVID-related fraud head on with our local and federal partners.”

On June 20, Jaafar and Jaworska were arrested at John F. Kennedy International Airport as they attempted to flee to Poland. The majority of the funds were recovered by the banks and by law enforcement.

Jaafar pleaded guilty to conspiracy to defraud the United States, and faces a maximum penalty of five years in prison when sentenced on November 13. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.

G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Hannibal “Mike” Ware, Inspector General of the Small Business Administration (SBA); and Robert E. Bornstein, Acting Special Agent in Charge of the FBI Washington Field Office Criminal Division, made the announcement after Senior U.S. District Judge Claude M. Hilton accepted the plea. Assistant U.S. Attorneys Kimberly Shartar and William Fitzpatrick are prosecuting the case.

This investigation was conducted by the FBI Washington Field Office’s Financial Institution Fraud squad and the Small Business Administration Office of Inspector General, who work identify, investigate, and prosecute egregious misuses of the Payroll Protection Plan. Tips regarding financial and government fraud schemes can be reported to the FBI at tips.fbi.gov.

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. 1:20-cr-185.

Audrey Strauss, the Acting United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today that SEPEHR SARSHAR was charged this morning with securities fraud and other fraud offenses in connection with SARSHAR’s scheme to provide inside information to his friends and family so they could trade in the securities of a pharmaceutical company SARSHAR founded and of which he was a member of the board of directors.

Acting Manhattan U.S. Attorney Audrey Strauss said:  “As alleged, Sepehr Sarshar, aware of an impending tender offer for his company, tipped off friends and a close relative, enabling them to reap nearly three-quarters of a million dollars in illegal profits.  My Office and the FBI remain resolute in our commitment to policing and prosecuting insider trading.”

FBI Assistant Director William F. Sweeney Jr. said:  “It seems intuitive that material nonpublic information should never be shared with the public, or traded on, prior to shareholder knowledge. Still, time and time again we see where those privy to a company’s inside information pass it on to family and friends. As alleged today, Sepehr Sarshar, a founder and board member of Auspex Pharmaceuticals, Inc., tipped off his own inner circle to an anticipated tender offer for the company. His associates traded on this information, and profited by the hundreds of thousands. Upsetting the market balance in this way puts all investors at a disadvantage. I think the message here is pretty clear – insider trading is risky business, and it’s a crime that’s typically met with hefty fines or significant jail time.”  

According to the Complaint^[1] unsealed today Manhattan federal court:    

Between in or about January 2015 and March 2015, SARSHAR, a founder, former chief executive officer, and member of the board of directors of Auspex Pharmaceuticals, Inc. (“Auspex”), misappropriated material nonpublic information (“MNPI”) from Auspex relating to an anticipated tender offer for Auspex by Teva Pharmaceutical Industries Ltd. (“Teva”).  SARSHAR passed that MNPI on to friends and family – including a college friend, his then girlfriend, another long-time friend, and a close family relative  (collectively, the “Associates”) – so they could execute profitable securities trades based on that MNPI, and otherwise caused the Associates to execute trades based on the MNPI he misappropriated.  In turn, the Associates’ trading in the shares of Auspex generated an aggregate of more than approximately $700,000 in illicit profits.

To conceal his illegal scheme, SARSHAR later lied to the Financial Industry Regulatory Authority (“FINRA”) in an investigation conducted by FINRA into insider trading in Auspex securities during the period preceding Teva’s tender offer for Auspex.  Among other things, SARSHAR falsely stated that he could recall no contact with two of the Associates during the period preceding the tender offer whereas, in truth and in fact, SARSHAR had substantial communications with those individuals, including regarding the forthcoming tender offer.  

SARSHAR will be presented later today in federal court in San Diego.

*                *                *

SARSHAR, 53, of Encinitas, California, is charged with one count of securities fraud, one count of wire fraud, and one count of fraud in connection with a tender offer.  The securities fraud count carries a maximum sentence of 25 years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense.  The wire fraud count carries a maximum sentence of 20 years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense.  The fraud in connection with a tender offer count carries a maximum sentence of 20 years in prison and a maximum fine of $5 million.  The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

Ms. Strauss praised the investigative work of the FBI and thanked the Philadelphia Regional Office of the SEC, which has filed civil charges against SARSHAR in a separate action.  She added that the FBI’s investigation is ongoing.

This case is being handled by the Office’s Securities and Commodities Fraud Task Force.  Assistant U.S. Attorneys Elisha J. Kobre and Martin Bell are in charge of the prosecution.

The allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

John H. Durham, United States Attorney for the District of Connecticut, announced that ALEXANDER OLIVEIRA, 32, of Stamford, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 96 months of imprisonment, followed by five years of supervised release, for child exploitation offenses.

According to court documents and statements made in court, an FBI special agent working in an undercover capacity communicated with Oliveira on an internet message board and through email.  During those conversations, Oliveira discussed his interest in child pornography.  On one occasion, Oliveira told the undercover agent that he possessed a “ton of pics & vids of kids ages 4-12,” and then proceeded to send multiple pornographic images of children in that age range to the undercover agent.  Oliveira also stated that he would provide the undercover agent with his entire “collection” of child-sex-abuse images in exchange for in-person access to a child.

Oliveira was arrested on March 5, 2019.  A search of computer media seized at the time of his arrest revealed approximately 2000 images and videos depicting the sexual abuse of children, including more than 600 images of children who have been identified during the course of this and numerous other child pornography investigations.

The investigation also revealed that, in approximately 2016, Oliveira enticed a 16-year-old girl to send him sexually explicit photos of herself, and then he traveled to New York several times to have sexual intercourse with the same girl.  The age of consent in New York is 17.

On October 2, 2019, Oliveira pleaded guilty to one count of distribution of child pornography.

Oliveira, who is released on a $100,000 bond, is required to report to prison on September 24, 2020.

This matter was investigated by FBI Child Exploitation Task Force in New Haven, with the assistance of the Stamford Police Department.  The case was prosecuted by Assistant U.S. Attorney Joseph Vizcarrondo.

This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation.  For more information about Project Safe Childhood, please visit www.justice.gov/psc.

To report cases of child exploitation, please visit www.cybertipline.com.

A Gilmore City, Iowa man who owned and operated a tax return preparation business was sentenced July 13, 2020 to more than 1 year in federal prison.

David Miller, age 52, from Gilmore City, IA, received the prison term after pleading guilty to three counts of aiding and assisting in the preparation and presentation of false and fraudulent income tax returns and three counts of receiving stolen government money or property.

In a plea agreement, Miller admitted that he owned and operated a tax return preparation business.  He further admitted that while operating that business, he prepared fraudulent income tax returns.  The fraudulent returns that Miller prepared between 2011 and 2016 resulted in a total loss to the government of $125,954.  Miller also stole money from his clients by depriving them of part of their tax refunds.  Miller also failed to report the stolen funds as income, which resulted in an additional tax obligation for himself of $30,752.  In his plea agreement, Miller agreed to pay a total of $156,706 in restitution to the Internal Revenue Service.

“Miller abused his position as a tax preparer to steal from both the American taxpayer and Miller’s own clients,” said United States Attorney Peter E. Deegan, Jr.  “I thank the Internal Revenue Service for its hard work in protecting the integrity of the tax system.  Together, the United States Attorney’s Office and the Internal Revenue Service will continue to hold tax preparers accountable when they commit fraud and abuse.”    

“Today’s sentencing of Mr. Miller again emphasizes that the Internal Revenue Service and U.S. Attorney’s Office will continue their pursuit of those who would attempt to defraud America’s tax system,” said Acting Special Agent in Charge Adam Steiner. “Taxpayers should be careful in selecting the tax professional who prepares their returns.”

Miller was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand.  Miller was sentenced to 12 months’ and 1 day imprisonment.  He was ordered to pay restitution to the victims in this case—numerous individual tax payers and the IRS.  He must also serve a 2-year term of supervised release after the prison term.  There is no parole in the federal system.  Miller will report the Bureau of Prison’s as directed by the United States Marshals Service. 

This case was prosecuted by Assistant United States Attorney Ron Timmons and investigated by the Department of Treasury and the Internal Revenue Service. 

Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. 

The case file number is 20-CR-3004.

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          LOS ANGELES– A chiropractor was sentenced today to 46 months in federal prison for conspiring to defraud a labor union’s health care benefit plan by offering kickbacks to patients for attending the clinic and by submitting approximately $4.8 million in sham billings.

          Mahyar David Yadidi, 38, of West Los Angeles, was sentenced by United States District Judge R. Gary Klausner, who also ordered him to pay $1,976,832 in restitution.

          In November 2019, Yadidi pleaded guilty to one count of conspiracy to commit health care fraud.

          Yadidi operated Philips San Pedro Chiropractic – formerly known as Synergy Healthcare and Wellness Center – in San Pedro. From July 2016 to October 2018, Yadidi operated a scheme to defraud the International Longshore and Warehouse Union – Pacific Maritime Association (ILWU-PMA) health care benefit plan. Yadidi worked with co-conspirators Ivan Semerdjiev, 41, of Irvine, a chiropractor who worked for Yadidi, and Julian Williams, 45, of San Pedro, a personal trainer who also worked for Yadidi.

          ILWU-PMA health care plan members were induced by Yadidi to visit his clinic with offers of $50 in cash for each visit, according to a one-count criminal information filed in this case. Yadidi also paid plan members to allow him to bill the plan when members did not visit his clinic.

          Yadidi offered monetary incentives to Williams, Semerdjiev, and other employees, as well as to patients, to recruit additional plan members to visit his clinic. Williams induced plan members to visit the clinic by falsely informing them that they could receive personal athletic training services from him that the plan would pay for.

          Once plan members either visited Yadidi’s clinic or agreed to allow him to submit claims to the plan for non-existent visits, Yadidi billed and caused his employees to bill the plan for services that were not rendered, services that were not medically necessary, and chiropractic and physical therapy services that were performed by

          Williams, who was neither licensed nor otherwise qualified to be performing those services.

          At his instruction, Yadidi’s employees falsified records, including sign-in sheets that listed the dates plan members purportedly received services from Philips Chiropractic. Yadidi instructed Semerdjiev to falsify patient files to support the clinic’s fraudulent billing. Yadidi and his co-conspirators also created false entries in the name of plan members’ relatives, knowing that the union’s health care benefit plan allowed them an additional number of covered visits as well.

          Yadidi continued to operate his scheme after he was terminated as an authorized provider by the ILWU-PMA plan in August 2017, six months after it conducted an audit of his clinic.

          To continue the conspiracy, Yadidi changed the name of his clinic – which previously was called “Synergy” and falsely held out another person as the clinic’s primary owner and operator, when in fact, Yadidi continued to own, operate, and financially benefit from the clinic. Yadidi continued to submit claims to the plan in the sham owner’s name.

          During the conspiracy’s duration, Yadidi’s clinic submitted $4,756,284 in fraudulent claims to the ILWU-PMA plan, for which the plan paid $1,976,832.

          Williams and Semerdjiev each pleaded guilty to one count of conspiracy to commit health care fraud and were sentenced to six months and one year in federal prison, respectively.

          This matter was investigated by the U.S. Department of Labor, Office of Inspector General, and the U.S. Department of Labor, Employee Benefits Security Administration.

          This case was prosecuted by Assistant United States Attorney Alexander C.K. Wyman of the Major Frauds Section.

Indianapolis – United States Attorney Josh J. Minkler announced today, William Beard, 58, Columbus, Ind., was sentenced to 41 months in federal prison for Unlicensed Firearms Dealing and Falsification of Records in Bankruptcy.

“Beard’s illegal activities introduced hundreds of firearms into the underground gun economy,” said Minkler. “At least twenty three of those guns were recovered from crime scenes in Indianapolis neighborhoods. This office will continue to investigate, arrest and prosecute those who illegally put guns on the streets of our district. Mr. Beard found that out today”

Starting in early 2013 and continuing through October 2017, Beard engaged in systematic unlicensed firearms dealing that resulted in the illegal sale or transfer of over 320 guns. Beard profited significantly from those illegal sales. 

 On numerous occasions, Beard engaged in “multiple sale” transactions in which he bought multiple firearms on the same day or within several days of one another. Through his pattern of unlicensed firearms dealing, Beard sold, traded, or otherwise disposed of all but a handful of the 320-plus firearms that he purchased between 2013 and 2017. He would sell the guns at various locations, including numerous gun and/or trade shows throughout Indiana. In not one instance did Beard conduct a background check or complete the required ATF paperwork that is required if he were a legally operating Federal Firearms Licensee.

 Approximately 23 firearms that Beard purchased and or sold have been recovered from crime scenes. The circumstances of the firearm recoveries ranged from armed robberies to drug search warrants.

On June 18, 2018, Beard filed a Chapter 13 bankruptcy petition in the Southern District of Indiana. He failed to disclose income made from selling and trading firearms. He also did not disclose the facts that he had been criminally indicted, thus willfully obstructing the administration of justice, namely, the proper administration of a bankruptcy proceeding.

This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives.

“Selling firearms illegally is just as much a crime as using them illegally,” stated Roland Herndon, Special Agent in Charge of ATF’s Columbus Field Division. “William Beard bought hundreds of firearms, and then sold them without a license. Several of those firearms later showed up in crimes. By diverting firearms from legal to illegal commerce, by helping certain individuals avoid records and background checks, Beard is responsible for fueling violence in our community. Now he will not be able to purchase firearms, and his role in feeding the violence is at an end.”

According to Assistant United States Attorneys Kendra Klump and Amanda Kester, who prosecuted this case for the government, Beard must also serve 2 years of supervised release following his sentence.

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 sentencing demonstrates the office’s firm commitment to target, investigate, and prosecute defendants committing violent crimes involving firearms trafficking, robbery, and carjacking. (See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 2.3)