An Austin man who crashed a truck full of undocumented immigrants following a high-speed police chase has been federally charged, announced Acting U.S. Attorney Prerak Shah.

Adrian Vargas-Ladinos, 20, was arrested on May 15, charged via criminal complaint with transportation of illegal aliens. He will make his appearance before U.S. Magistrate Judge John R. Parker on May 18.

According to the complaint, a police officer stopped Mr. Vargas-Ladinos for speeding in Sutton County, Texas on May 15. During the stop, the officer called for backup, at which point Mr. Vargas-Ladinos allegedly sped away, leading police on a chase that lasted almost eight minutes.

He crossed several medians before crashing the truck, causing it to roll over with passengers still in both the cab and bed.

Ten of the passengers – including one woman who was rushed to the ICU with head injuries and two men who were hospitalized with serious injures – were identified as citizens of Honduras, Guatemala, and El Salvador in the United States unlawfully. The hospitalized passengers were treated and have been stabilized. 

Mr. Vargas-Ladinos initially claimed he was merely helping a few immigrants he had encountered in Eagle Pass, Texas during a visit to a friend. He told investigators he could not recall the friend’s name.

He later admitted, however, that a smuggler offered to pay him $25,000 to transport undocumented immigrants to Austin, Texas. A search of his cell phone allegedly confirmed that he was involved in human smuggling.

Mr. Vargas-Ladinos allegedly told law enforcement that based on directions provided by the smuggler, he drove to an abandoned home in Eagle Pass, honked the horn, and allowed the undocumented immigrants into his truck. He then allegedly drove them around a Border Patrol checkpoint in Eagle Pass.

One of his undocumented passengers told law enforcement that when Mr. Vargas-Ladinos realized he was being pulled over, he told the immigrants that he was going to bail out of the vehicle. Two passengers told law enforcement that they were scared during the police chase.

Mr. Vargas-Ladinos allegedly admitted to law enforcement he felt sorry for the undocumented immigrants who were hurt during the crash, but stated that he told them to run away so that they could get to Austin and he could get paid.

A criminal complaint is merely an allegation of wrongdoing, not evidence. Like all defendants, Mr. Vargas-Ladinos is presumed innocent until proven guilty in a court of law.

If convicted, he faces up to 20 years in federal prison on the transportation charge. He has also been charged by Sutton County with evading arrest, which carries a penalty of 10 years in state prison.

Homeland Security Investigations and U.S. Customs & Border Protection conducted the investigation with the assistance of the Sonora Police Department and Texas Department of Public Safety. Assistant U.S. Attorney Ryan Redd is prosecuting the case.

PLANO, Texas – A Denton, Texas, woman has been sentenced for student loan fraud in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.

Tiffany O’Neal, 47, pleaded guilty on Nov. 19, 2020, to student loan fraud and was sentenced to five years of federal probation and ordered to pay restitution in the amount of $234,113.00 by U.S. District Judge Sean D. Jordan on May 17, 2021. 

“Funds earmarked for student financial aid provide critical educational and professional opportunities for students,” said Acting U.S. Attorney Nicholas J. Ganjei.  “The Eastern District of Texas is committed to ensuring that those funds serve that purpose.  However, when those funds are diverted or stolen, this case shows that EDTX, along with its law enforcement partners, will take action and hold those responsible.”

“Ms. O’Neal knowingly and willfully abused her position of trust for personal gain and in doing so, defrauded the school, the Federal student aid program, and America’s taxpayers. She’ll now be held accountable for her criminal actions,” said Edd Cole, Special Agent in Charge of the U.S. Department of Education Office of Inspector General’s (OIG) Southwestern Regional Office.  “OIG Special Agents will continue to work with our law enforcement partners to aggressively pursue those who seek to enrich themselves with Federal education funds. America’s students, their families, and taxpayers deserve nothing less.”

According to court documents, between 2012 and 2017, O'Neal was both a student at the University of North Texas as well as an employee in their financial aid office.  In this role, she had the ability to approve and reject financial aid awards and grants.  During this time, she submitted fictitious expenses relating to her husband's financial aid application, approved financial aid awards to her husband to which he was not otherwise entitled, and awarded monetary grants to her husband that he should not have received.  In addition, she fraudulently obtained additional funds in her own financial aid packages.  In sum, she misappropriated approximately $230,000 in funds that were earmarked for federal financial aid grants.     

This case was investigated by the Department of Education Office of Inspector General and prosecuted by the Plano office of the United States Attorney’s Office for the Eastern District of Texas. 

CORPUS CHRISTI, Texas – A federal jury has convicted a 24-year-old non-citizen residing in Houston for attempting to transport an alien, announced Acting U.S. Attorney Jennifer B. Lowery.

The jury deliberated for less than four hours before convicting Bakunduwukize Desire following a two-day trial of attempting to transport an alien to Houston on Dec. 8, 2019. 

Testimony revealed Desire arrived at the Falfurrias Checkpoint claiming he had a fight with his girlfriend and needed a ride back to Houston. His friend offered him a vehicle in exchange for driving the alien to Houston. He also accepted $800 as payment.

The jury heard Desire picked up the alien at a stash house in the valley and coached him to act like he was asleep once they got to the checkpoint.

The defense attempted to convince the jury that he did not know the alien was illegally present in the United States. They did not believe those claims and found Desire guilty as charged.

U.S. District Judge Drew B. Tipton presided over trial and set sentencing for Aug. 12. At that time, Desire faces up to five years of imprisonment and a possible $250,000 maximum fine.

Desire was permitted to remain on bond pending sentencing.

Border Patrol conducted the investigation. Assistant U.S. Attorneys Barbara J. De Pena and Amanda Gould prosecuted the case.

McALLEN, Texas – A federal jury has convicted a 49-year-old Mission resident for conspiracy and possession with intent to distribute more than 500 grams of meth, announced Acting U.S. Attorney Jennifer B. Lowery.

The jury deliberated for approximately 40 minutes before convicting Eugenio Perez Jr. following a two-day trial which included three witnesses.

According to the testimony, authorities discovered 1.6 kilograms of meth while investigating a drag racing incident that resulted in a two-car collision.  

At trial, the jury heard from a local police officer who explained how Perez crashed into an SUV pulling out of a parking lot. The officer approached Perez after observing him pull a bag from his truck’s cab and place it into the bed of the truck. He instructed Perez not take anything from the vehicle.

Perez’s daughter arrived on the scene. At that time, she took the bag from the bed of the truck and placed it in her car, according to testimony.

The officer further testified that he stopped her from leaving the area and asked her to show him what was inside the bag. The daughter opened the bag which was found to contain approximately 1.6 kilograms of meth.

The defense attempted to convince the jury that law enforcement had rushed to judgment and did not perform an adequate and thorough enough investigation to convict Perez. The jury disagreed and found him guilty as charged.

U.S. District Judge Randy Crane presided over trial and set sentencing for July 27, 2021. At that time, Perez faces a minimum of 10 years and up to life in prison as well as a possible $10 million fine.

Previously released on bond, Perez was taken into custody following the sentencing today where he will remain pending that hearing.

The Drug Enforcement Administration conducted the investigation with the assistance of Palmview Police Department. Assistant U.S. Attorneys Michael Mitchell and M. Alexis Garcia prosecuted the case.

BOSTON – A Dominican national, formerly residing in Lynn, was sentenced today in federal court in Boston for theft of government money and making a false statement on an application for Social Security benefits.

Rafael Bautista Abreu, 63, was sentenced by U.S. Senior District Court Judge George A. O’Toole Jr. to 18 months in prison and two years of supervised release. Bautista Abreu was also ordered to pay restitution of $15,840 to MassHealth and of $12,222 to the Massachusetts Department of Transitional Assistance. Bautista Abreu will face deportation proceedings upon completion of his sentence.

In February 2021, Bautista Abreu pleaded guilty to two counts of theft of government money and one count of making a false statement on an application for Social Security benefits.

Bautista Abreu unlawfully used the identity of a U.S. citizen for at least 12 years, during which time he fraudulently received public assistance benefits to which he was not entitled. He stole approximately $15,840 in MassHealth benefits from October 2008 to July 2016, and $12,222 in Supplemental Nutrition Assistance Program (SNAP) benefits (previously known as Food Stamps) from September 2009 to July 2016. Additionally, in July 2019, Bautista Abreu used the stolen identity when he applied for benefits with the Social Security Administration. 

Acting United States Attorney Nathaniel R. Mendell; Tonya Perkins, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Boston Field Office; William S. Walker, Acting Special Agent in Charge of Homeland Security Investigations in Boston; and Suzanne M. Bump, State Auditor of the Commonwealth of Massachusetts made the announcement today. Special Assistant U.S. Attorney Karen Burzycki of Mendell’s Major Crimes Unit prosecuted the case.

NASHVILLE – Four Houston, Texas men are facing federal charges after a lengthy investigation by the FBI into a series of Automated Teller Machine (ATM) thefts in middle Tennessee and elsewhere, announced U.S. Attorney Mary Jane Stewart for the Middle District of Tennessee. 

Elijah Diaz, 19; Troy Alan Parker, 18; Willie Charles White, 21; and Abraham Woods, 32, were arrested on the morning of April 26, at a hotel in Holladay, Tennessee, and charged with conspiracy and bank larceny, following the theft from an ATM machine in Mount Juliet, Tennessee, hours earlier. 

According to the criminal complaint, for more than a year, the FBI Violent Crimes Task Force in Nashville has been investigating ATM thefts.  Typically, the method of these thefts involve crews of individuals who steal a heavy duty capacity pickup truck, obtain large J-hooks and an industrial chain and then scout a free-standing ATM to target.  These crews then use the stolen truck and approach the ATM in the early morning hours, wearing hoodies and masks.  The shell of the ATM is then pried open and the J-hooks are attached to the safe and to the truck.  The truck is then used to pull open the safe door, allowing access to the cash inside.  After travelling to a pre-determined location, the crews offload the cash into other vehicles and abandon the stolen truck to avoid detection and apprehension. 

On April 4, 2021, an ATM theft occurred at a Wilson Bank & Trust in Murfreesboro, Tenn.  Video surveillance shows two suspects wearing dark clothing and ski masks arriving at the bank at 1:14 a.m. driving a Chevrolet 2500 pickup.  The suspects then pried open the shell of the ATM and used the chain and hooks to force open the safe, before taking the cash and fleeing. 

The investigation determined that the Chevrolet truck used in this theft had been stolen earlier in the evening on April 3^rd.  A review of the surveillance footage in the hours preceding the theft, identified a black Dodge Durango with a Texas license plate and the driver appeared to have been casing the machine.  The FBI has also been coordinating the ATM theft investigations with the FBI Houston Office and the Houston Police Department Major Offenders Criminal Apprehension Team.  The video was shared with Houston law enforcement and Willie White was quickly identified as the driver of the black Dodge Durango.  Investigators also determined that the Murfreesboro Police Department had conducted a traffic stop of the Durango on April 2, 2021 and identified Elijah Diaz and Troy Parker as the occupants.  Officers also noticed crowbars and chains in the rear of the vehicle. 

On April 25, 2021, Houston law enforcement informed the Nashville FBI that White and others were in Nashville and were preparing for an ATM theft.  At 2:27 a.m. on April 26^th, an ATM theft occurred at the Wilson Bank & Trust in Mount Juliet, Tennessee.  Surveillance cameras captured the theft where an individual in a hooded sweatshirt pried open the shell of the machine while another individual positioned a stolen pickup truck, attached hooks to the safe and drove forward, ripping open the safe.  Both individuals then fled the scene with the cash from the ATM.  The stolen pickup truck was found abandoned in Wilson County and contained several money cartridges from an ATM, scattered $20 bills, and crowbars.  A review of the surveillance video preceding the theft also showed a black dodge Durango which appeared to be casing the ATM at 9:35 p.m. the previous evening. 

Later in the morning on April 26^th, the Dodge Durango was located at the Days Inn Hotel, near Interstate 40 in Holladay, Tenn.  Shortly thereafter, the four defendants were arrested and investigators recovered more than $88,000 in cash.  Investigators had also determined that the four had stayed at the Westin Hotel when they arrived in Nashville before carrying out the ATM theft and recovered several surveillance photos of the defendants and the vehicles used, including the Dodge Durango.

If convicted, the defendants face up to 10 years in prison.

The FBI continues to investigate ATM thefts across the region.  If you have any information related to the thefts, please contact the Nashville FBI Office at 615-732-7500.

A criminal complaint is merely an accusation.  All defendants are presumed innocent until proven guilty in a court of law. 

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            Montgomery, Ala. –    On Thursday, May 13, 2021, Charles Gregory Hardy, Jr., 37, of Montgomery, Alabama, appeared in federal court and pleaded guilty to one count of obstructing a criminal investigation as an officer of a financial institution, announced Acting United States Attorney Sandra J. Stewart.

            According to court documents, during the spring of 2020, Hardy was an employee of Valley National Bank. In April of that year, the bank received a grand jury subpoena from the Drug Enforcement Administration (DEA) seeking records pertaining to the accounts of one of the bank’s customers.

            Grand jury subpoenas are confidential documents and bank employees are, in most cases, prohibited by federal law from disclosing a subpoena’s existence to the customer whose records are being sought.

            As a bank employee, Hardy learned about the subpoena. Afterwards, Hardy sent a text message to the customer named in the subpoena that read, “I got a subpoena for your financial records.” A few days later, Hardy went to the customer’s office and, while there, sent a photo of a part of the grand jury subpoena from his personal telephone to the customer. By sending the subpoena to the customer, Hardy informed the customer of the existence of an otherwise confidential federal grand jury investigation.

            At some date in the coming months, Hardy will be scheduled for a sentencing hearing where he faces a maximum sentence of one year in prison, as well as monetary penalties.

            “Every day, across the country, law enforcement agents and prosecutors rely on bank employees to maintain the utmost discretion when dealing with grand jury subpoenas for financial records,” stated Acting United States Attorney Stewart. “Such financial records can provide valuable evidence of criminal activity. However, disclosure—like that which occurred here—can cause targets to destroy evidence or, even worse, threaten witnesses I hope that this case is a reminder of the duty of secrecy that is placed on all bank employees who receive grand jury subpoenas.”

            “This investigation has shown the unfortunate reality that people in all professional positions can become involved in criminal activity,” stated DEA Assistant Special Agent in Charge Towanda Thorne-James. “People who commit such crimes will be held accountable.”

            The DEA’s Tactical Diversion Squad investigated this case, with assistance from the Shelby County, Alabama Sheriff’s Office. Assistant United States Attorneys Jonathan S. Ross and Alice S. LaCour are prosecuting the case.

NORFOLK, Va. – A former Chesapeake doctor was sentenced today to 59 years in prison after a jury convicted him on 52 counts of health care fraud and other charges arising from his performance of irreversible hysterectomies, improper sterilizations, and other medically unnecessary surgeries and procedures on his patients over a decade.

According to court records and evidence presented at trial and at sentencing, Javaid Perwaiz, approximately 71 years old, an obstetrician-gynecologist (OB/GYN) who practiced in Hampton Roads since the 1980s, executed a scheme to defraud health insurance programs between at least 2010 and 2019. During that period, Perwaiz caused approximately $20.8 million dollars in losses to private and government health care insurers for irreversible hysterectomies and other surgeries and procedures that were not medically necessary for his patients. In many instances, Perwaiz would falsely tell his patients that they needed the surgeries because they had cancer, or to avoid cancer, in order to induce them to agree to the surgeries. Many of the surgeries occurred within days of the false diagnoses.

“Motivated by his insatiable and reprehensible greed, Perwaiz used an arsenal of horrifying tactics to manipulate and deceive patients into undergoing invasive, unnecessary, and devastating medical procedures,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “These fraudulent and destructive surgeries caused irreversible damage to the victims. In many instances, the defendant shattered their ability to have children by using fear to remove organs from their bodies that he had no right to take. Despite having to endure immeasurable physical and emotional pain, the victims showed resilience, strength, and courage by speaking out and sharing their stories to hold the defendant accountable for his heinous crimes. While no prosecution can undo the lifelong trauma that Perwaiz cruelly inflicted on his patients, today’s sentence ensures that the victims and their families have the last word.”

“This individual not only defrauded our healthcare system out of millions of dollars, he did so by performing unnecessary surgeries on women and putting their health and safety at risk,” said Mark R. Herring, Attorney General of Virginia. “Doctors should never take advantage of the trust that their patients put in them, and those who do should be held accountable. I want to thank my team for their hard work on this case and I also want to thank our local, state, and federal partners for their ongoing collaboration and partnership on this and other important cases.”

“Today’s sentence is a significant step toward justice for the women Perwaiz preyed upon and harmed through his deception, betrayal, and greed,” said Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office. “The FBI is committed to stopping predators like Perwaiz who abuse their position of trust, but this outcome was ultimately made possible by the brave victims and nurses who deserve our gratitude for coming forward and exposing his horrible criminal conduct.”

“When unscrupulous healthcare providers such as Perwaiz put greed above patient care, they not only violate public trust, they stain the profession.” said Christopher W. Dillard, Special Agent in Charge of the Defense Criminal Investigative Service’s Mid-Atlantic Field Office. “DCIS is committed to working alongside our investigative partners in rooting out criminal malpractice and bringing to justice those who put the public and community at risk.”

The evidence also demonstrated that Perwaiz falsified records for his obstetric patients so that he could induce their labor early, prior to the recommended gestational age that minimizes risk to the mother and baby, to ensure he would be reimbursed for the deliveries. Perwaiz also violated the 30-day waiting period Medicaid requires for elective sterilizations by submitting backdated forms to falsely make it appear as if he had complied with the waiting period. Perwaiz billed insurance hundreds of thousands of dollars for diagnostic procedures that he only pretended to perform at his office.

The witnesses at trial included more than 25 former patients, some of whom testified to the complications they continue to endure as a result of the unnecessary surgeries Perwaiz performed. In addition, the Court received over 60 Victim Impact Statements and the FBI received hundreds of tips through its hotline concerning Perwaiz’s actions. Witnesses also included nurses who worked at the hospitals where Perwaiz performed his surgeries, who testified that they repeatedly complained about his practices to their supervisors.

On November 9, 2020, a federal jury convicted Perwaiz of 52 counts of health care fraud and false statements. In total, Perwaiz was responsible for $20.8 million worth of false and fraudulent billings for both himself and the hospitals where he performed the surgeries.

Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office; Chris Dillard, Special Agent in Charge for the Defense Criminal Investigative Service’s (DCIS) Mid-Atlantic Field Office; and Maureen R. Dixon, Special Agent in Charge of the Office of Inspector General for the U.S. Department of Health and Human Services, made the announcement after sentencing by Senior U.S. District Judge Rebecca Beach Smith.

Assistant U.S. Attorneys Elizabeth Yusi, E. Rebecca Gantt, and John F. Butler prosecuted the case.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:19-cr-189.

A criminal complaint was unsealed today in federal court in Brooklyn charging Bryan Abraham, Carlos Vazquez, Angel Cabrera, Armani Miller, Johan Santos, Gianni Stewart, Andre Ruddock and Seth Golding with conspiracy to commit access device fraud in connection with a scheme to obtain millions of dollars in unemployment insurance benefits funded, in whole or in part, by COVID-19 pandemic assistance programs.  Six defendants were arrested this morning and will make their initial appearance this afternoon before United States Magistrate Judge Ramon E. Reyes. Miller and Santos remain at large.

Mark J. Lesko, Acting United States Attorney for the Eastern District of New York; Philip R. Bartlett, Inspector-in-Charge, United States Postal Inspection Service, New York Division (USPIS); Nikitas Splagounias, Acting Special Agent-in-Charge, U.S. Department of Labor, Office of Inspector General, New York Region (DOL-OIG); and Roberta Reardon, Commissioner, New York State Department of Labor (NYS DOL), announced the arrests and charges.

“As alleged, the defendants not only fraudulently obtained $2 million in pandemic-related unemployment benefits using information from third-party victims, they audaciously displayed the proceeds of their fraud – large amounts of stolen cash – on social media,” stated Acting United States Attorney Lesko.  “This Office will not hesitate to bring the full weight of the law against defendants who would pocket public funds that are intended to alleviate the hardship of others.”  Mr. Lesko also expressed his grateful appreciation to the New York City Police Department for their assistance during the investigation.

“Unfortunately, as the government rolled out various CARES Act programs, fraudsters were ‘At the Ready’ to take full advantage of these programs through a variety of fraud schemes, ripping off the American public of millions in taxpayer dollars, and clogging the system for those who honestly are in need. These arrests are an example of the commitment of law enforcement to bring those to justice for scamming the system” stated USPIS Inspector-in-Charge Bartlett.

“An important mission of the Office of Inspector General is to investigate allegations relating to pandemic-related unemployment benefits. We will continue to work with our law enforcement partners to investigate these types of allegations,” stated DOL-OIG Acting Special Agent-in-Charge Splagounias.

“There is never an excuse to knowingly commit fraud and steal from a system that was designed to help New Yorkers in a time of need,” stated NYS DOL Commissioner Reardon.  “However, it’s even more despicable when these thieves steal a lifeline from New Yorkers in the midst of a public health pandemic. We have no tolerance for criminals, and if you break the law, you will be held accountable. I commend our partners in the U.S. Attorney’s Office and all levels of law enforcement for their commitment to helping us fight Unemployment Insurance fraud.”

In response to the COVID-19 pandemic, Congress has enacted laws to establish programs and provide additional funding for unemployment insurance benefits for unemployed persons.  These include the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), signed into law on March 27, 2020, which created programs for pandemic unemployment assistance and federal pandemic unemployment compensation. 

As alleged in the complaint, between June 2020 and April 2021, the defendants submitted fraudulent claims to the New York State Department of Labor for unemployment insurance benefits.  They used the personal identifying information of third-party victims to fraudulently receive unemployment insurance benefits funded, in whole or in part, by COVID-19 pandemic assistance programs.  The defendants’ scheme allegedly resulted in approximately $2 million in unemployment benefits being distributed to the defendants and others.  Cabrera, Golding, Stewart and Vazquez posted photos of themselves on social media in which they were holding and fanning out large sums of cash.

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

The government’s case is being handled by the Office’s General Crimes Section.  Assistant United States Attorney Tara McGrath is in charge of the prosecution with assistance from Assistant United States Attorney Brendan G. King of the Office’s Asset Forfeiture Section. 

The Defendants:

BRYAN ABRAHAM
Age:  18
Brooklyn, New York

CARLOS VASQUEZ
Age:  20 
Brooklyn, New York

ANGEL CABRERA
Age:  18
Brooklyn, New York

ARMANI MILLER
Age:  24
Brooklyn, New York

JOHAN SANTOS
Age:  19
Brooklyn, New York

GIANNI STEWART
Age:  19
Brooklyn, New York

ANDRE RUDDOCK
Age:  25
Brooklyn, New York

SETH GOLDING
Age:  18
Brooklyn, New York

E.D.N.Y. Docket No. 21-MJ-593

SAN JUAN, Puerto Rico – On May 13, 2021, a federal grand jury returned a three-count indictment charging brothers Jonathan Amill Peña and Yosef Ricardo Cruz Peña with an attempted carjacking of an off-duty police officer, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. 

According to the Government’s allegations, on March 10, 2021 around 5:00 a.m., a female police officer leaving her shift stopped to assist Yosef Ricardo Cruz Peña with an apparently broken-down vehicle on a bridge in Yabucoa. Cruz Peña was a United States Marine on leave in Puerto Rico.  Once the police officer stopped her car to help Cruz Peña, his brother Jonathan Amill Peña approached her car from behind with a gun.  The police officer and carjacker exchanged gun fire, with over 19 shots being fired.  One of the carjackers, Jonathan Amill Peña, was injured, and his cohorts fled to take him to the hospital.  The police officer was not physically injured. 

Assistant U.S. Attorney Luis Valentin of the Violent Crimes and National Security Section is in charge of the prosecution of the case. The Bureau of Alcohol, Tobacco, Firearms and Explosives is in charge of the investigation.  If convicted, the defendants face a sentence in excess of ten years in prison.  

An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

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SAN JUAN, Puerto Rico – The Justice Department announced that a Puerto Rico man was sentenced to two months in federal prison for felony violations of the Lacey Act that involved the trafficking and false labeling of protected reef creatures as part of an effort to subvert Puerto Rican laws designed to protect coral reef organisms.

Luis Joel Vargas Martell (Vargas), a resident of San Sebastian, Puerto Rico, pleaded guilty in November 2020 to export smuggling and two felony violations of the Lacey Act for collecting, purchasing, falsely labeling, and shipping protected marine invertebrate species as part of an effort to subvert Puerto Rican law designed to protect corals and other reef species.

After retiring from the Puerto Rico Police Department, Vargas opened an online aquarium business from his home. During 2014 through 2016, Vargas was the co-owner of the saltwater aquarium business, Carebbean Reefers (spelling error intentional) that also operated online through the EBay store “Redragon1975”. A large part of the business was devoted to the sale of native Puerto Rican marine species that are popular in the saltwater aquarium trade.

Vargas sent illegally collected live specimens to customers in the mainland United States and foreign countries by commercial courier services.  One of the most popular items that Vargas and his business sent off-island was an organism from the genus Ricordea. These animals are known as “rics,” “polyps,” or “mushrooms” in the aquarium industry.  Members of the genus form part of the reef structure and spend their adult lives fastened in place to the reef. These animals are colorful in natural light, but what makes them particularly interesting to aquarium owners is that they “glow” under the UV lights that are typically used in high-end saltwater aquariums.

It is illegal to harvest Ricordea, zoanthids, and anemones in Puerto Rico if the specimens are going to be sent off-island or otherwise sold commercially, nor is there a permit available to do so. Vargas personally collected much of the Ricordea and other reef creatures that he sold off-island.  On multiple occasions, he would accompany his business partner, and they would snorkel from the shoreline in search of Ricordea. Because Ricordea are attached to the reef substrate, the pair would utilize a chisel to break off the animals, and in doing so, take chunks of the reef with them. This was detrimental to the marine environment as it caused physical degradation of the underlying reef structure.

In order to cover up the nature of his shipments and to avoid detection from governmental inspection authorities, the scheme included falsely labelling many of the live shipments as inanimate objects.  From January 2014 to March 2016, Vargas sent or caused to be sent at least 40 shipments of marine species that were illegally harvested in the waters of Puerto Rico. While there is some variation in the price of Ricordea depending on coloration, size, and other factors, the aggregate retail value of illegal Ricordea shipped by Vargas was worth at least $90,000.

In addition to the prison time, Vargas was sentenced to a supervised release term of three years and three hundred hours of community service. The court also banned Vargas from collecting or procuring marine life, shipping marine life off-island and scuba diving and snorkeling in Puerto Rico. He was also required to surrender his fishing permits and to pay a criminal fine of $10,000 and restitution of $15,000. In a related matter, in December 2020, Raymond Torres was sentenced to five years of probation with similar bans on marine activity, 300 hours of community service, and financial penalties of $35,000.

This case was investigated as part of Operation Rock Bottom and Operation Borinquen Chisel by Special Agents of the U.S. Fish and Wildlife Service and the National Oceanic and Atmospheric Administration with support from the USFWS Inspectors. The case is being prosecuted by Christopher L. Hale of the Environment and Natural Resources Division’s Environmental Crimes Section along with Assistant U.S. Attorney Carmen Marquez of the U.S. Attorney’s Office for the District of Puerto Rico.

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PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Christopher May, 32, of Paoli, PA, was sentenced to one year and four months in prison, and two years of supervised release by United States District Judge Timothy J. Savage for engaging in an embezzlement scheme through which he stole more than $1.2 million from his former employer.

In February 2021, the defendant pleaded guilty to two counts of wire fraud stemming from this scheme which he perpetrated over the course of about eight months. From roughly October 2019 until May 2020, while employed as a staff accountant at a local e-commerce automotive parts retailer based in Paoli, PA, May made more than 50 unauthorized Paypal transfers of his employer’s funds into his personal accounts. In total, he stole $1,213,500. He immediately spent nearly this entire amount gambling on sports and making payments to pornographic web camera models whom he met on the internet.

To hide and prolong his fraud, the defendant doctored his employer’s bank statements and created fake financial records. He abruptly resigned from his position in June 2020, after an audit at the company raised questions about discrepancies in these documents.

As part of the Court’s sentence, the defendant will be required to pay back all the money that he stole from his employer. When released from prison, May will also be required to attend mental health treatment to address underlying issues that may have contributed to his crimes.

“Our Office takes offenses like embezzlement and financial fraud very seriously,” said Acting U.S. Attorney Williams. “The defendant stole more than a million dollars by abusing his position handling finances for his former employer. We will continue to work with our law enforcement partners to protect innocent individuals and businesses from being victimized by this type of fraud.”

The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Sean P. McDonnell.

BOSTON – A Georgia man was sentenced on May 13, 2021 in federal court in Boston for illegal possession of a semi-automatic pistol.

Herbert Palmer, 39, of Decatur, Ga., was sentenced by U.S. District Court Judge Denise J. Casper to 32 months in prison and three years of supervised release. On Jan. 15, 2021, Palmer pleaded guilty to one count of being a felon in possession of a firearm and ammunition.

On Aug. 12, 2020, police were dispatched to an apartment in New Bedford following a report of a disturbance where a man had a gun and was pointing it to a woman’s head. After police arrived, the man, later identified as Palmer, exited the apartment and told police that he had a knife on his person. A search of Palmer revealed he had a folding knife and firearm magazine loaded with four rounds of .380 caliber ammunition, which Palmer claimed to be carrying because it did not fit his BB gun, although he denied having a gun.

A witness informed police that Palmer had pointed a small black gun at individuals while inside the apartment that evening and that when Palmer manipulated the firearm, the magazine dropped out of the firearm and fell to the floor. Palmer picked up the magazine and then proceeded to the second floor to change his clothing.

Police searched the apartment and located a Lorcin, Model 380. .380 caliber semi-automatic pistol in a second floor bedroom. Authorities confirmed the ammunition recovered from Palmer’s person was the same caliber as the firearm.

Palmer was convicted in 2010 of assault and battery with a dangerous weapon and is therefore prohibited from possessing firearms and ammunition.

Acting United States Attorney Nathaniel R. Mendell; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and New Bedford Police Chief Joseph C. Cordeiro made the announcement. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Mendell’s Major Crimes Unit prosecuted the case.

This case is part of 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.

BOSTON – A New Bedford man was indicted last week by a federal grand jury on charges of illegally possessing a firearm and selling cocaine.   

Khyron Thompson, 32, was indicted on one count of being a felon in possession of firearm and ammunition and one count of distribution of and possession with intent to distribute cocaine.

According to the indictment, on Feb. 13, 2020, Thompson allegedly possessed a loaded .32 caliber Hi-Point pistol firearm. It is further alleged that Thompson sold a quantity of cocaine on that same date. Federal law prohibits Thompson from possessing a firearm or ammunition due to a prior felony conviction.

The charge of being a felon in possession of firearm and ammunition provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. The charge of distribution of and possession with intent to distribute cocaine provides for a sentence of up to 20 years in prison, up to a lifetime of supervised release and a fine of $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

Acting United States Attorney Nathaniel Mendell; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and New Bedford Police Chief Joseph C. Cordeiro made the announcement. Assistant U.S. Attorney Evan Gotlob of Mendell’s Major Crimes Unit 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.

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

Greenbelt, Maryland – Bruce Thomas, age 53, of Germantown Maryland, pleaded guilty late on May 14, 2021, to paying gratuities to a public official in exchange for official acts.  Thomas is the owner and operator of Pinnacle Orthopedic Services, Inc., also located in Germantown.

The guilty plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Christopher Dillard of the Defense Criminal Investigative Service - Mid-Atlantic Field Office; Special Agent in Charge Maureen Dixon, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; and Acting Special Agent in Charge Rachel Byrd of the Federal Bureau of Investigation, Baltimore Field Office.

According to his plea agreement, from at least 2012 to 2019, Pinnacle provided prosthetics and orthotics materials to the Prosthetics and Orthotics Department at Walter Reed National Military Medical Center (Walter Reed), the largest joint military medical center in the United States, in return for payments from the government.  Walter Reed provides health services to military families and individuals serving on active duty, individuals returning from war, veterans, and elected officials.  The Walter Reed Prosthetics and Orthotics Department provided a full range of prosthetic and orthotic services, including state of the art prosthetic limbs, and nationwide support of wounded warriors.  From about 2011 to 2017, Thomas and Pinnacle received more than $20 million in payments from the Prosthetics and Orthotics Department at Walter Reed for prosthetics and orthotics materials. 

From about 2009 until May 2019, David Laufer (Laufer) was a public official and civilian employee of the Department of Defense, working as the Chief of the Prosthetics and Orthotics Department at Walter Reed.  As such, Laufer represented Walter Reed in ordering and purchasing prosthetics and orthotics materials, including purchases made from Thomas and Pinnacle.

Thomas admitted that from about 2012 to 2017, he gave and promised things of value to Laufer for, and because of, official acts performed by Laufer.  Specifically, Thomas provided Laufer with cash, airlines flights, meals, entertainment, and other benefits because of Laufer’s official acts as the Chief of the Walter Reed Prosthetics and Orthotics Department, and Laufer’s official acts in connection with the purchase of prosthetics and orthotics materials from Pinnacle. 

As detailed in the plea agreement, from 2010 until May 2019, the Walter Reed Prosthetics and Orthotics department used Blanket Purchase Agreements (BPAs) to order and purchase prosthetics and orthotics materials.  This allowed the department to obligate funds to purchase materials so that employees could order materials without charging a credit card each time or engaging in a formal contract for each purchase of materials.  Thomas regularly interacted with Laufer about Pinnacle’s business with Walter Reed, including the award of BPAs, future BPA funding, orders charged against the BPAs, and fulfillment of orders.  Pinnacle was awarded multiple BPAs by Walter Reed, which the Prosthetics and Orthotics department used to order and purchase prosthetics and orthotics materials from Pinnacle. 

Thomas admitted that between 2012 and 2016, he provided Laufer with things of value, including cash gratuities on a regular basis, totaling at least $20,000; food, drinks, and other financial benefits; airline travel; lodging benefits; and entertainment tickets.  In exchange, Laufer undertook official acts in connection with the gratuities including sending multiple purchase requests obligating at least $14.75 million to Pinnacle for prosthetics and orthotics materials and personally ordering and causing to be ordered prosthetics and orthotics material from Pinnacle.

Laufer also restricted the availability of BPAs to some of the manufacturers and distributors from whom Pinnacle purchased products, thereby inhibiting those companies from doing business directly with Walter Reed, and actively encouraged and directed those companies to sell to Walter Reed through Pinnacle. As detailed in Laufer’s plea agreement, Laufer knew that having the other companies sell to Walter Reed through Pinnacle would result in a higher price to the government. 

Thomas faces a maximum sentence of two years in federal prison for paying a gratuity to a public official, in exchange for an official act.  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.  U.S. District Judge Theodore D. Chuang has scheduled sentencing for September 9, 2021, at 9:30 a.m.

On October 20, 2020, David Laufer, age 63, of Pittsburgh, Pennsylvania, formerly of Bethesda, Maryland, pleaded guilty to acceptance of gratuities by a public official, and faces a maximum of two years in federal prison.  He is awaiting sentencing.

Acting United States Attorney Jonathan F. Lenzner commended the DCIS, HHS OIG, and the FBI for their work in the investigation and thanked the Veterans Administration Office of Inspector General, the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit, the Office of Personnel Management Office of Inspector General, DOD Cyber Crimes Center Defense Cyber Forensics Laboratory, and the Defense Contract Audit Agency for their assistance.  Mr. Lenzner thanked Assistant U.S. Attorneys Harry M. Gruber and Dana Brusca, who are prosecuting the case.

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BOSTON – Two New Bedford men were indicted by a federal grand jury last week on fentanyl and firearm offenses. 

David Acosta, 25, and Marquise Thompson, 34, were indicted on one count each of possession with intent to distribute 40 grams or more of fentanyl. Acosta was also charged with one count of carrying a firearm during and in relation to, and possession of a firearm in furtherance of, a drug trafficking crime. Following an initial appearance on Friday, May 14, 2021, Acosta and Thompson were detained pending a detention hearing scheduled for May 19, 2021.

According to the indictment, on Oct. 22, 2020, Acosta and Thompson possessed more than 40 grams of fentanyl, intending to sell those narcotics. Additionally, Acosta was allegedly in possession of a loaded Glock .45 caliber pistol during and in relation to his fentanyl possession.

The charge of possession with intent to distribute more than 40 grams of fentanyl provides for a mandatory minimum sentence of five years and up to 40 years in prison, up to a lifetime of supervised release and a fine of up to $4 million. The charge of possession of a firearm in relation to or in furtherance of drug trafficking provides for a mandatory minimum sentence five years and up to life in prison, five years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

Acting United States Attorney Nathaniel Mendell; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and New Bedford Police Chief Joseph C. Cordeiro made the announcement. Assistant U.S. Attorney Evan Gotlob of Mendell’s Major Crimes Unit 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.

The details contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

Baltimore, Maryland – Chief U.S. District Court Judge James K. Bredar sentenced Fermin Gomez-Jimenez, age 23, of Annapolis, Maryland, to 38 years in federal prison, followed by five years of supervised release, for his role in a conspiracy to participate in a racketeering enterprise and for using, carrying, and discharging a firearm during a crime of violence, in connection with his MS-13 gang activities. 

The sentence was announced by Acting U.S. Attorney Jonathan F. Lenzner; Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Special Agent in Charge James Mancuso of Homeland Security Investigations (HSI) Baltimore Office; Special Agent in Charge Timothy Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Chief Amal Awad of the Anne Arundel Police Department; Chief Edward Jackson of the Annapolis Police Department; and State’s Attorney Anne Colt Leitess of the Anne Arundel County State’s Attorney Office.

“The violence perpetrated by Gomez-Jimenez and his fellow MS-13 members was brutal and tragic and is totally unacceptable.  The U.S. Attorney’s Office in Maryland and our federal, local and state partners are working together to remove these violent gang members and to keeping our communities safe from the deadly threat of MS-13,” said Acting U.S. Attorney Jonathan F. Lenzner.  “We continue to work with our counterparts here and abroad to bring to justice these transnational gangs.  The 38-year sentence for this defendant should serve as a reminder to the community that we will not relent in our pursuit of justice.”

“Gang-related violence and criminal activity present an ongoing challenge for law enforcement everywhere. HSI’s efforts to dismantle gangs are much more effective in areas where partnership with local law enforcement is strongest,” said James Mancuso, Special Agent in Charge for Homeland Security Investigations’ (HSI) Baltimore field office. “This significant sentence is the result of the hard work and collaboration between federal and local partners to bring members of MS-13 to account.”

According to his plea agreement and other court documents, from about 2015 through 2017, Gomez-Jimenez was a member and associate of the Hempstead clique of MS-13, and participated in a racketeering conspiracy that included assaults, murder, attempted murder, robbery, and drug trafficking.  Specifically, Gomez-Jimenez admitted that he participated in the murder of a suspected rival gang member, and conspired and attempted to murder two victims in Annapolis.  In addition, between January 2016 and February 2017, Gomez-Jimenez and other MS-13 members/associates sold marijuana to raise funds for the gang. The drug proceeds were used for, among other purposes, the purchase of more narcotics, weapons, and to send to MS-13 members and associates in other states and in El Salvador.

As part of the racketeering conspiracy, Gomez-Jimenez admitted that on March 11, 2016, he and other MS-13 members and associates planned and agreed to murder Victim 1, whom the gang suspected of being a rival gang member.  Co-conspirator 1 and another MS-13 associate lured Victim 1 to Quiet Waters Park in Annapolis, Maryland, and once Victim 1 arrived at the park, members of the gang struck Victim-1 in the head with a branch or stick.  Gomez-Jimenez, using a knife borrowed from a co-conspirator, along with co-defendants Moises Reyes-Canales, Marlon Cruz-Flores, and other members and associates of MS-13, then stabbed Victim 1 repeatedly, killing him.  While Gomez-Jimenez and other members of the gang stabbed Victim 1, Co-conspirator 1 and other MS-13 members/associates stood watch outside of the park to ensure no one entered or left the park, and to watch for police presence, so that the gang could complete the murder of Victim 1.  During this time, Co-conspirator 1 communicated by phone and through text messages with Cruz-Flores and Reyes-Canales inside the park, to let them know no one entered the park and they could complete the murder.  After Victim 1 was killed, Gomez-Jimenez left the park to stand watch, so that other MS-13 associates could enter the park help bury Victim 1 in a shallow grave inside the park.  Law enforcement did not locate Victim 1’s body until August 28, 2017, when it was exhumed by law enforcement.

As detailed in his plea agreement, on October 23, 2016, Gomez-Jimenez along with other members and associates of the MS-13 Hempstead clique in Annapolis, devised a plan to murder Victim 2, an unlicensed taxi driver.  Gomez-Jimenez, Reyes-Canales, Cruz-Flores, Manuel Martinez-Aguilar, and other members and associates of MS-13, met at Quiet Waters Park to discuss the plan to murder Victim 2.  At the meeting, each member of the conspiracy was assigned a task to complete the murder and dispose of the evidence.  The group planned to use machetes, knives, and guns to kill the victim.  Cruz-Flores and another Reyes-Canales each had a firearm and all the members of the conspiracy were aware that guns would be used in the murder. 

A co-conspirator called Victim 2 using another member’s cell phone to arrange for an unlicensed taxi ride.  Victim 2 arrived with another passenger, Victim 3.  Cruz-Flores asked Victim 2 to drive to the area of the 700 block of Annapolis Neck Road in Annapolis.  When they arrived, Reyes-Canales approached the vehicle and pointed a gun at the victims and Cruz-Flores also produced a gun and pointed it at the victims.  Victim 3 attempted to run away and Cruz-Flores shot Victim 3 in the leg, while another MS-13 member repeatedly attacked Victim 3 with a machete.  Victim 2 also tried to run.  Co-defendant Martinez-Aguilar and another MS-13 member took Victim 2’s vehicle and attempted unsuccessfully to run him over with the car.  Co-conspirators chased Victim 2 and Gomez-Jimenez repeatedly stabbed Victim 2 with a knife.  The conspirators fled when they heard police sirens.  A short time later, police arrested Gomez-Jimenez nearby with Victim 2’s blood on his hands and clothes.  A surveillance camera in the area captured Gomez-Jimenez assaulting Victim 2 and the attempt to run over Victim 2 with Victim 2’s vehicle.  DNA subsequently confirmed that the blood on Gomez-Jimenez’ hands matched Victim 2’s blood.  Both victims were transported to the University of Maryland Shock Trauma Center with life threatening injuries.  Both victims survived but have permanent injuries as a result of the attack.

Co-defendants Marlon Cruz-Flores, age 25, Reyes-Canales, age 23, and Manuel Martinez-Aguilar, a/k/a “El Lunatic” and “Zomb,” age 21, all of Annapolis, Maryland, previously pleaded guilty to the racketeering conspiracy and gun charge.  Cruz-Flores was sentenced to 38 years in federal prison and Martinez-Aguilar was sentenced to 24 years in federal prison.  Sentencing for Reyes-Canales is set for September 17, 2021.  Co-defendant David Diaz-Alvarado, age 20, also of Annapolis, pleaded guilty to murder in aid of racketeering in connection with his MS-13 gang activities.  A fourth co-defendant, Juan Carlos Sandoval-Rodriguez, age 23, of Annapolis was convicted on October 31, 2019, of murder in aid of racketeering and conspiracy to commit murder in aid of racketeering after an 11-day jury trial for the murder of Victim 1.  All of the defendants remain detained.

MS-13 is a gang composed primarily of immigrants or descendants of immigrants from El Salvador, with members operating in the State of Maryland, including Anne Arundel County, Montgomery County, Prince George’s County, and Frederick County, and throughout the United States.  Branches or “cliques” of MS-13 often work together cooperatively as “Programs,” with the purpose of increasing the gang’s levels of organization, violence, extortion, and other criminal activity, and to assist one another in avoiding detection by law enforcement.  In Maryland and the surrounding area, these cliques include Hempstead Locos Salvatruchas (“HLS”), Parkview Locos Salvatrucha (“PVLS”), Normandie Locos Salvatrucha (“NLS” or “Normandie”), Sailors Locos Salvatrucha Westside (“SLSW” or “Sailors”), Langley Park Salvatrucha (“LPS”), Weedoms Locos Salvatrucha (“Weedoms”), and Cabanas Locos Salvatruchas (“Cabanas”).  A person within the participating cliques is selected as the Program leader.

To protect the gang and to enhance its reputation, MS-13 members and associates are expected to use any means necessary to force respect from those who show disrespect, including acts of intimidation and violence.  MS-13’s creed is based on one of its mottos, “Mata, roba, viola, controla,” which translates to, “kill, steal, rape, control.”  One of the principal rules of MS-13 is that its members must attack and kill rivals, known as “chavalas,” whenever possible.

Anyone with information about MS-13 is encouraged to provide their tips to law enforcement.  The FBI and Homeland Security Investigations both have nationwide tiplines that you can call to report what you know.  You can reach the FBI at 1-866-STP-MS13 (1-866-787-6713), or you can call HSI at 1-866-DHS-2-ICE.

This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation.  OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

Acting U.S. Attorney Jonathan F. Lenzner commended HSI, the ATF, the Anne Arundel Police Department, the Annapolis Police Department, and the Anne Arundel State’s Attorney Office for their work in the investigation and prosecution.  Mr. Lenzner thanked Assistant U.S. Attorney Zachary Stendig, and Trial Attorneys Matthew Hoff and Samantha Mildenberg Loiero of the Criminal Division’s Organized Crime and Gang Section, who are prosecuting the case.

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BIRMINGHAM, Ala. – A Childersburg woman was sentenced  today for engaging in a wire fraud scheme, announced U.S. Attorney Prim F. Escalona, and Federal Bureau of Investigation Special Agent in Charge Johnnie Sharp, Jr.

U.S. District Judge Annemarie Axon sentenced Tonya Bird Swain, 43,  to 24 months in prison followed by three years of supervised release for wire fraud.  Swain was also ordered to pay restitution in the amount of $532,724.48 to the victim.  Swain pleaded guilty to the charges in January.

According to the plea agreement, Swain embezzled over $500,000 from her former employer, Recycle USA. Swain was employed as the Controller and/or Accounts Manager.  She was responsible for ordering, receiving, and disbursing cash for company operations, and for making accounting entries in QuickBooks.  On multiple occasions between 2015 and 2017, Swain ordered funds to be delivered via Loomis to Recycle USA.   Swain manipulated QuickBooks entries and did not put all the cash in the vault, but instead kept the cash and used it to pay personal expenses. 

“This defendant violated the trust bestowed upon her by her employer,” U.S. Attorney Escalona said.  “This sentence sends a message that such schemes to defraud will result in federal prosecution and prison time.”

“Swain violated her employer’s trust when she defrauded them and went to great lengths to conceal her criminal activity,” SAC Sharp said.  “This behavior is a serious federal crime and simply won’t be tolerated.”

The FBI investigated the case, which Assistant U.S. Attorney Robin Beardsley Mark  prosecuted.

EL PASO -- U.S. District Judge Kathleen Cardone today sentenced 40-year-old Barrio Azteca member and career offender William “Happy” Haywood of El Paso to 16 years in federal prison followed by five years of supervised release for conspiring to import and distribute methamphetamine and possession of a firearm by a person under indictment. 

On February 19, 2020, Haywood pleaded guilty to one count of conspiracy to import a controlled substance, one count of importation of a controlled substance, one count of conspiracy to possess with intent to distribute a controlled substance and one count of possession with intent to distribute a controlled substance. 

Judge Cardone sentenced Haywood to 15 years imprisonment on the drug charges.  She also sentenced Haywood to two years imprisonment, with one year to run consecutive to the drug case, based on a supervised release revocation for possession of a firearm by a person under indictment.  According to court records, Haywood was on supervised release for a period of three years for a federal firearms conviction when he committed the above drug offenses. 

According to court records, Customs and Border Protection officers at the Fabens Port of Entry arrested Brian Kizer, a 46-year-old U.S. citizen living in Juarez, Mexico, on May 21, 2019, while attempting to smuggle approximately three pounds of crystal methamphetamine into the U.S.   Kizer intended to deliver the methamphetamine to Haywood just as he had done on three prior occasions.  The FBI then conducted an operation culminating in a controlled delivery to Haywood at his residence.  Haywood paid Kizer about $3,600, then unsuccessfully attempted to dispose of the evidence just prior to being arrested by law enforcement.  

U.S. Attorney Ashley C. Hoff and FBI Acting Special Agent in Charge Jeffrey Coburn made today’s announcement.

“Today’s sentencing shows the FBI’s resolve to target individuals that are bringing methamphetamine and other dangerous drugs into the El Paso area,” said FBI Acting Special Agent in Charge Coburn.  “Today, along with our law enforcement partners, we have shown that distribution of this poisonous drug will not be tolerated and affirm our commitment in keeping our community safe.”

On the same day Haywood pleaded guilty to the charges, Judge Cardone sentenced Kizer to four years in federal prison followed by five years of supervised release and ordered him to pay a $250 fine after pleading guilty to conspiracy to import a controlled substance.

The El Paso FBI’s Safe Streets Task Force investigated this case.  Task Force agencies include: FBI, U.S. Customs and Border Protection West Texas, Texas Alcoholic Beverage Commission, U.S. Bureau of Prisons, Homeland Security Investigations, El Paso Police Department, El Paso County Sheriff’s Office, Texas Department of Criminal Justice–Office of Inspector General, Socorro Police Department and the El Paso Independent School District Police Department.  Assistant U.S. Attorney Michael Osterberg prosecuted this case.

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PORTLAND, Maine—A Sanford woman was sentenced today in federal court for conspiring to distribute fentanyl resulting in death and serious bodily injury, Acting U.S. Attorney Donald E. Clark announced.

U.S. District Judge D. Brock Hornby sentenced Jennifer Adams, 40, to 12 years in prison and four years of supervised release. Adams pleaded guilty on December 18, 2019.

According to court records, between August 2017 and April 2018, Adams and others acquired fentanyl in Massachusetts for distribution in York County. Two people who received fentanyl from members of the conspiracy died and another person suffered serious bodily injury. 

On April 11, 2018, law enforcement officers seized approximately 150 grams of fentanyl from members of the conspiracy. A later search of Adams’ residence resulted in the seizure of fentanyl, a digital scale, approximately $2,500 in cash and a “finger press” designed to compress fentanyl for further distribution.

The U.S. Drug Enforcement Administration and the Maine Drug Enforcement Agency investigated the case, with assistance from the Biddeford and Sanford Police Departments.

This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.