MARTINSBURG, WEST VIRGINIA – Donald Mark Tillotson, of Burlington, West Virginia, was indicted today on firearms charges, Acting United States Attorney Randolph J. Bernard announced.

Tillotson, 24, was indicted on one count of “Unlawful Possession of a Firearm” “Possession of Stolen Firearm,” and one count of “Possession of Firearm with Obliterated Serial Number.” Tillotson, a person prohibited from having a firearm, is accused of having a .40 caliber pistol with an obliterated serial number, believed to be stolen, in January 2021 in Mineral County.

Stumps faces up to 10 years of incarceration and a fine of up to $250,000 for each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.

Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Mineral County Sheriff’s Office investigated.

An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
 

          LOS ANGELES– An Orange County man who led police on a high-speed car chase with more than 75 pounds of cocaine stashed in his vehicle was sentenced today to 186 months in federal prison.

          Anthony Martinez, 40, of La Habra, was sentenced by United States District Judge Michael W. Fitzgerald. Martinez pleaded guilty on January 15 to one count of possession with intent to distribute cocaine. Martinez is one of eight defendants charged in an indictment alleging a conspiracy to traffic cocaine throughout Southern California.

          On July 25, 2019 in Whittier, Martinez received two boxes from a co-defendant that contained 75.2 pounds (34.1 kilograms) of cocaine, placed the boxes in his car and drove off. When Whittier Police officers attempted to pull Martinez over, he initially pulled over, then sped away, refusing to stop, and led police on a car chase in which Martinez veered into oncoming traffic and drove on the wrong side of the road, the plea agreement states.

          “In so doing, [Martinez] recklessly created a substantial risk of death or serious bodily injury to individuals in the community and law enforcement by fleeing from officers,” prosecutors wrote in their sentencing memorandum.

          When police finally pulled Martinez over for good in Fullerton, they discovered the box of cocaine.

          Martinez also possessed 132.6 pounds (60.2 kilograms) of cocaine, separately wrapped in one kilogram “bricks” located in a storage locker, and 52.9 pounds (23.98 kilograms) of cocaine located inside a duffel bag.

          In total, Martinez admitted to possessing 260.6 pounds (118.2 kilograms) of cocaine.

          This case’s lead defendant, Jesus Manuel Landeros-Cisneros, 51, of Covina, pleaded guilty in August 2020 to one count of conspiracy to distribute cocaine. He is serving a 174-month federal prison sentence for that offense.

          Three other defendants in the case – Ryan Alexander Fischer, 23, a.k.a. “Flaco,” of Covina; Manuel Angel Landeros-Lopez, 43, of Covina; David Elgrably, 51, of Suisun City, California – are scheduled to go on trial on July 27. Three defendants – Harnidhan Bhangu, 30; Harmanjot Singh, 29; and Gurpreet Chahal, 41; all Canadian nationals – are fugitives.

          The Drug Enforcement Administration and Homeland Security Investigations investigated this matter. The investigation was conducted with the support of the Organized Crime Drug Enforcement Task Force (OCDETF). As to these seizures, substantial assistance was provided by the South Gate Police Department, the Brea Police Department, and the West Covina Police Department.

          Assistant United States Attorney Kathy Yu of the Violent and Organized Crime Section prosecuted this case.

CLARKSBURG, WEST VIRGINIA – Quadiri Ayodele, an inmate at FCI Gilmer in Glenville, West Virginia, was sentenced today to six months of additional prison time after admitting to a contraband charge, Acting U.S. Attorney Randolph J. Bernard announced.

Ayodele, 41, pleaded guilty to one count of “Attempt to Introduce a Prohibited Object (Tobacco).” Ayodele admitted to trying to bring in tobacco to the prison in April 2019 in Gilmer County.

Assistant U.S. Attorney Christopher L. Bauer prosecuted the case on behalf of the government. The Bureau of Prisons Special Investigative Services investigated.

U.S. Magistrate Judge Michael John Aloi presided.

TEXARKANA, Texas – Four individuals, including two Red River Army Depot (RRAD) officials, have been charged with federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.

Jimmy Scarbrough, 69, of Hooks, was an RRAD supervisor and is charged by criminal complaint with conspiracy to defraud the United States and 36 counts of bribery.  Scarbrough made an initial appearance before U.S. Magistrate Judge Caroline Craven today.

Jeffrey Harrison, 43, of Texarkana, and Justin Bishop, 50, of Clarksville, both RRAD vendors, are pleading guilty today to bribery charges.  

Devin McEwin, 41, of Avery, an RRAD official, has also been charged with bribery and is scheduled to plead guilty.

“The Red River Army Depot is a key component of our nation’s defense infrastructure and is the lifeblood of the surrounding community,” said Acting U.S. Attorney Nicholas J. Ganjei.  “Scarbrough, Harrison, Bishop, McEwin, and others exploited the public trust in order to line their own pockets, and undermined the warfighting mission of the Depot in the process.”

“These guilty pleas are a direct reflection of the tenacity and teamwork by MPFU special agents and our law enforcement partners,” said SA Ray Rayos, Special Agent-in-Charge of the Southwest Fraud Field Office, Major Procurement Fraud Unit (MPFU), U.S. Army CID. “Bribery and other fraud schemes have no place in the government contracting system and those who attempt it will be caught.”    

“Today’s announcement highlights a successful collaboration among partner agencies as we collectively hold these defendants accountable for allegedly creating a fraudulent and deceptive scheme against the government and the people of the United States. We remain committed to the aggressive pursuit of those who selfishly leverage government programs for their own personal gain,” said Dallas FBI Special Agent in Charge, Matthew J. DeSarno.

According to information presented in court, Scarbrough was the Equipment Mechanic Supervisor at the RRAD in Texarkana, Texas, a position he held from November 2001 until May 2019. Scarbrough is alleged to have directed more than $7 million in purchases from RRAD to Harrison and Bishop through the government purchase card (GPC) program.  In order to manipulate the GPC program, which is designed to ensure a competitive bidding process, Scarbrough told the vendors what to bid, including the item, the quantity, and the price.  By collecting fake bids from multiple vendors, Scarbrough was able to direct RRAD purchases to his select vendors, in this case Harrison and Bishop, while maintaining the appearance of a competitive bidding process. Scarbrough also defrauded the United States by falsely certifying that he had received the purchased items, therefore causing the RRAD to pay his select vendors.  However, the reality was that Scarborough instructed the vendors not to deliver certain RRAD-purchased items. 

Scarbrough demanded hundreds of thousands of dollars in bribes from his selected vendors. Scarbrough accepted bribes in various forms, including receiving at least $116,000.00 in U.S. Postal Service money orders from Harrison. Scarbrough also had Harrison and Bishop purchase at least $135,000.00 in car parts or services for his hot rod collection, which included a red and black 1936 Ford Tudor, an electric green 1932 Ford Coupe, a cherry red 1951 Ford F-1 truck, and more. Scarbrough received more than $27,000.00 worth of firearms from Bishop, including rare Colt handguns and Wurfflein dueling pistols. Finally, Scarbrough directed at least $32,000.00 in donations to the Hooks Volunteer Fire Department while he was the Capitan of Operations. In total, Scarbrough received more than $300,000.00 in bribe payments from Harrison and Bishop.

Scarbrough is not the only official at RRAD who accepted bribes. Devin McEwin accepted more than $21,000.00 in bribes from Harrison, including hunting trips, donations directed to the Annona Volunteer Fire Department, and the refurbishment of his 1964 Ford truck.

Under federal statutes, the defendants each face up to 15 years in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.

This case is being investigated by the U.S. Army Criminal Investigation Command, Major Procurement Fraud Unit; the Federal Bureau of Investigation-Dallas Division, Tyler Resident Agency, and the U.S. Postal Inspection Service.  This case is being prosecuted by Assistant U.S. Attorney Jonathan R. Hornok.

Criminal complaints, informations and indictments are merely allegations and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

###

KANSAS CITY, Mo. – Project Safe Neighborhoods, a nationwide initiative operated locally by a community task force, released a public service video today to bring attention to combating violent crime. Today’s video emphasizes that, among 751 people who have been murdered in Kansas City, Missouri, in the last five years, 28 victims have been children.

“Violent crime takes a terrible toll on the families who are directly impacted and on the wider community,” said Acting U.S. Attorney Teresa Moore. “The toll is heaviest when children are victims of violence. By focusing on children, this public service video underscores the need for our community to work together for safer neighborhoods.

“The Project Safe Neighborhoods Task Force hopes that this video will be widely seen and shared over social media, and will inspire its viewers to action against violent crime,” Moore added, “because every kid deserves to be a kid.”

The public service video can be viewed online at:

https://www.justice.gov/usao-wdmo/video/project-safe-neighborhoods

The video will also be promoted through the social media accounts of task force members.

“The unacceptable level of violence in our city is hurting our children and so many others,” said Kansas City Police Chief Rick Smith. “We work closely with federal and community partners to hold accountable those who carry out violent acts. Every Kansas Citian - especially children - deserves to feel safe.”

“Every person should be able to live where they feel safe and free from harm and our children deserve to have the opportunity to grow, learn and play without fear of violence,” said Timothy Langan, Special Agent in Charge of the FBI Kansas City Division. “The FBI and our law enforcement partners are committed to working together to combat violent crime, to protect our community, protect our children and protect our future.”

“Our children deserve safe streets, parks and playgrounds, free from the constant threat of gun fire,” said Frederic Winston, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, Kansas City Field Division. “While every day, ATF uses our expertise to battle gun violence, it is only with the community’s help that law enforcement can make every neighborhood a safer place to live, work and play.”

Today’s public service video promotes the Greater Kansas City Crime Stoppers TIPS Hotline. The anonymous TIPS Hotline is operated by the Kansas City Metropolitan Crime Commission, a member of the Project Safe Neighborhoods Task Force and the fiscal agent to channel federal funding for the public service video and other initiatives of Project Safe Neighborhoods.

“Since the inception of the TIPS Hotline, over 159,250 anonymous tips have been taken by our program and more than $1.5 million in cash rewards paid,” said Barry Mayer, vice president of the Kansas City Metropolitan Crime Commission. “Tips have resulted in over 11,450 felony arrests, 25,462 cases cleared, $36,555,571 in recovered property and narcotics, 3,899 fugitives arrested, and 1,848 firearms recovered.

“Our program is credited with 662 solved homicides,” Mayer added. “Included in that is 20 homicides in Kansas City, Mo., that have been solved since we increased our KCMO homicide reward to $25,000 on June 21, 2019.”

Tips can be submitted 24/7 via phone (816-474-8477), mobile app and web at www.KCCrimestoppers.com.  Tips are completely anonymous. The identity of a tipster has never been discovered. Rewards are also paid completely anonymously.

Project Safe Neighborhoods is a Department of Justice initiative that brings together federal, state, and local law enforcement with community partners to reduce violent crime and make neighborhoods safer for everyone.

In addition to the U.S. Attorney’s Office, members of the Project Safe Neighborhoods Task Force include the Kansas City Metropolitan Crime Commission, the Kansas City, Mo., Police Department, the Jackson County Prosecutor’s Office, the Jackson County Sheriff’s Department, and the Independence Police Department. Federal partners on the task force include the FBI, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the U.S. Marshals Service, and Homeland Security Investigations.

          CONCORD - James Coughlin, 38, of Sanbornville, was sentenced to 63 months in federal prison for methamphetamine trafficking and unlawful possession of firearms and ammunition, Acting United States Attorney John J. Farley announced today.

             According to court documents and statements made in court, Coughlin conspired with individuals in California to have quantities of “ice” methamphetamine shipped to him at his Sanbornville residence.  During the investigation, law enforcement agents intercepted a package containing approximately 460 grams of “ice” methamphetamine intended for Coughlin. In 2019, an individual who was cooperating with the New Hampshire Attorney General’s Drug Task Force made seven controlled purchases of “ice” methamphetamine from Coughlin at his Sanbornville residence. On January 14, 2020, federal and state law enforcement officers executed a federal search warrant at Coughlin’s residence and seized approximately 61 grams of “ice” methamphetamine, cash, firearms, and ammunition.  Because Coughlin previously had been convicted of a felony, it was unlawful for him to possess the firearms and ammunition.

             Coughlin previously pleaded guilty on February 4, 2021.

            “Methamphetamine trafficking poses a significant risk to communities throughout New Hampshire,” said Acting U.S. Attorney Farley.  “The risk to public safety is further heightened when drug traffickers are armed.  Thanks to the hard work of a team of federal, state, and local law enforcement officers, this individual will no longer be able to endanger the citizens of the Granite State.”

             “Coughlin presented a danger to the public in many forms, the Court’s sentence ensures he will not be able to continue his crimes”, said William S. Walker, Acting Special Agent In Charge, Homeland Security Investigations, Boston. “We credit the strong commitment of the U.S. Attorney’s Office for New Hampshire and our numerous local, state, and federal partners for their contributions to this investigation.”

              “Drugs and guns are a deadly combination,” said Special Agent in Charge Brian D. Boyle.  “DEA is committed to bring to justice methamphetamine traffickers like Mr. Coughlin.  This investigation demonstrates the strength of collaborative law enforcement efforts in New Hampshire.”

              This matter was investigated by the Drug Enforcement Administration, Homeland Security Investigations, the U.S. Postal Inspection Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Marshals Service, the New Hampshire State Police Narcotics Investigation Unit and Mobile Enforcement Team, the New Hampshire Attorney General’s Drug Task Force the  Dover Police Department, the Portsmouth Police Department, the University of New Hampshire Police Department, the Somersworth Police Department, the Hampton Police Department, and the York, Maine Police Department. The case is being prosecuted by Assistant U.S. Attorney Jennifer Cole Davis.

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

   ###

SAN ANTONIO – U.S. District Judge Fred Biery today sentenced 23-year-old Felipe Jesus Duron of Atascosa to 29 years in federal prison followed by 11 years of supervised release for coercing minors into engaging in sexually explicit conduct. 

“Thanks to the efforts of our law enforcement partners and the prosecutor in this case, the defendant will no longer be able to commit such unspeakable acts against children,” said U.S. Attorney Hoff.  “Today’s sentence reflects the seriousness of the defendant’s despicable conduct and shines a light on the strength of a 14-year-old victim who had the courage to report the defendant’s actions.  I commend the social media platform and National Center for Missing and Exploited Children for bringing this matter to the attention of law enforcement.”

On July 14, 2020, Duron pleaded guilty to one count of coercion and enticement of a child, one count of production of child pornography, one count of receipt of child pornography and one count of extortion.  According to court records, Duron used internet accessible devices between February 2019 and March 2019 to entice multiple minors, primarily ages 13 to 14, into sending nude photographs wherein they were engaged in sexually explicit conduct.  Duron used those photographs to extort the minors, claiming he would release the sexually explicit photographs to their family and friends if they did not provide additional images of sexual activity. He also required them to enter real time video chat rooms where they were coerced into performing sexual acts for adult males as Duron watched.

“The sentence imposed today shows the U.S. Justice Department’s commitment to ensure the safety and innocence of our nation’s children,” said FBI Special Agent in Charge Christopher Combs, San Antonio Division. “The FBI and its law enforcement partners remain dedicated to protecting our nation’s future by ensuring our children can prosper where individuals like Duran do not threaten their welfare.”

The San Antonio FBI’s Crimes Against Children Task Force and the Texas Attorney General’s Office conducted this investigation.  Duron has remained in federal custody since his arrest on October 5, 2019.

Assistant U.S. Attorney Bettina Richardson prosecuted this case.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice.  Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims.  For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

###

PITTSBURGH, PA -- A resident New Jersey pleaded guilty in federal court to a violation of the federal narcotics laws, Acting United States Attorney Stephen R. Kaufman announced today.

James Vance, 36, of Jersey City, New Jersey, pleaded guilty to conspiracy to distribute five kilograms or more of cocaine before United States District Judge J. Nicholas Ranjan. Mr. Vance was indicted and charged with drug trafficking following a months-long wiretap investigation targeting narcotics trafficking activity in Washington County, Pennsylvania.

In connection with the guilty plea, the Court was advised that Mr. Vance’s criminal conduct was detected through a wiretap investigation conducted by the Federal Bureau of Investigation and Pennsylvania State Police beginning in April 2020. Through judicially authorized wiretaps utilized by members of a drug trafficking organization operating in Washington County, PA, along with extensive physical surveillance in both Pennsylvania and New Jersey, agents gathered evidence showing that Mr. Vance met with and distributed kilogram quantities of cocaine, and quantities of heroin-fentanyl mixtures, to alleged codefendants, which were then transported back to Washington County, PA and redistributed.

Judge Ranjan scheduled sentencing for September 14, 2021 at 10 a.m. The law provides for a total sentence of not less than ten years and up to life in prison, a fine of up to $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.

Assistant United States Attorneys Jerome A. Moschetta and Mark V. Gurzo are prosecuting this case on behalf of the government.

The Federal Bureau of Investigation and the Pennsylvania State Police Drug Law Enforcement Division conducted the investigation that led to the prosecution of Mr. Vance. This prosecution is a result of an Organized Crime Drug Enforcement Task Force ("OCDETF") investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

WHEELING, WEST VIRGINIA – Erick Lamont Stanback Singleton, of Cleveland, Ohio, was sentenced today to 41 months of incarceration for a drug charge, Acting U.S. Attorney Randolph J. Bernard announced.

Singleton, also known as “Gotti,” age 26, pled guilty in January 2021 to one count of “Distribution of Heroin within 1000 feet of a Protected Location.” Singleton admitted to selling heroin near Madison Elementary School on Wheeling Island in February 2020.

Assistant U.S. Attorneys Shawn M. Adkins and Clayton J. Reid prosecuted the case on behalf of the government. The Ohio Valley Drug and Violent Crimes Task Force, a HIDTA-funded initiative, which includes the Drug Enforcement Administration, West Virginia State Police, Ohio County Sheriff’s Office, and the Wheeling Police Department, investigated. The U.S. Marshal Service, Columbus Police Department Gang Crimes Unit, the Martins Ferry Police Department, and the Bellaire Police Department also assisted.

U.S. District Judge John Preston Bailey presided.

Find related press release here: https://www.justice.gov/usao-ndwv/pr/26-charged-drug-conspiracy-involving-heroin-fentanyl-crack-cocaine-and-meth-wheeling
 

ST. LOUIS – United States District Judge E. Richard Webber sentenced Jordan Perry to 60 months in prison today. The 32-year-old St. Louis County, Missouri resident pleaded guilty, in February, to one count of being a felon in possession of a firearm. 

On July 9, 2019, officers from the St. Louis County Police Department tried arresting Perry because he was wanted on several outstanding felony warrants. Perry fled and led officers first on a vehicle pursuit and then on a foot chase. While fleeing from police, Perry drove through a backyard causing an officer to take immediate action to avoid being struck. During the vehicle pursuit, Perry drove at high rates of speed and failed to stop at multiple stop signs. A tire on Perry’s vehicle eventually deflated, so Perry abandoned the vehicle and ran from police. Officers eventually caught and arrested Perry.

Officers saw on the passenger seat of Perry’s vehicle, a.22-caliber High Standard Double-Nine revolver and three bags containing cocaine base. During an inventory search of the vehicle, officers located a fourth clear bag containing a cocaine base and 91 rounds of .22-caliber ammunition.

Prior to July 9, 2019, Perry was a convicted of a felony.

The St. Louis County Police Department investigated this case. Assistant United States Attorney Jillian Anderson is handling the case.

#####

WILMINGTON, N.C. – Latisha Harron, a Las Vegas resident, was sentenced today to 170 months in federal prison and ordered to pay $13,396,921.64 in restitution to the North Carolina Medicaid Program on charges of Conspiracy to Commit Health Care Fraud and Wire Fraud, in violation of Title 18, United States Code, Section 1349; Aggravated Identity Theft, in violation of Title 18, United States Code, Section 1028A; and (5) Conspiracy to Commit Money Laundering, in violation of Title 18, United States Code, Section 1956(h).  The court also sentenced Harron to forfeit various assets as a part of her case.  Court documents reflect that forfeitable items include up to $13,396,921.64 in cash, a British Aerospace Bae 125-800A Aircraft, a 2017 Aston Martin DB 11 sports car; a 2016 Ford F-150 Super-Crew pickup truck; real property held in the name of Assured Healthcare Systems in Hertford County, North Carolina; real property located in Charles County, Maryland; as well as various other items of designer jewelry and luxury items seized from the defendant’s penthouse condominium in Las Vegas.

Acting United States Attorney G. Norman Acker, III, stated, “This case demonstrates the resolve of this office to bring healthcare fraud artists to justice – wherever they are found; pandemic or no pandemic.  The ultimate reward of fraud is not a life of luxury, but years of life lost to federal prison.”

According to court documents, Harron, also known as Latisha Reese Holt, 44, originally from Eastern North Carolina, admitted to conspiring with her husband to carry out a massive fraud upon the North Carolina Medicaid Program (“NC Medicaid”) by billing the government for fictitious home health services.  Harron admitted to then working with her husband to launder the proceeds of the fraud into, among other things, a private jet, luxury jewelry and clothing, and properties in Ahoskie and Rich Square, North Carolina.

According to the charges, Harron created, and was operating, Agape Healthcare Systems, Inc. (“Agape”) an alleged Medicaid home health provider, in Roanoke Rapids, North Carolina.  As charged, to enroll Agape as a Medicaid provider, Harron fraudulently concealed her prior felony conviction for Identity Theft.  In 2012, Harron moved out of North Carolina to Maryland.  Despite that move, Harron continued to bill NC Medicaid as though Agape was providing home health services to North Carolina recipients.

As charged, in May of 2017, Harron moved to Las Vegas, Nevada to live with codefendant Timothy Mark Harron, and that the two were married in 2018.  The indictment alleges that Timothy Harron was also a previously convicted felon, and that this fact was concealed from the NC Medicaid on enrollment documents.  Latisha Harron pleaded guilty to allegations that Harron and her husband then worked together to expand the Agape fraud upon NC Medicaid, by fraudulently billing the program for more than $10 Million, just in the period between 2017 and 2019.

As charged, Harron admitted that she and her husband carried out the fraud by exploiting an eligibility tool that was entrusted only to NC Medicaid providers.  Specifically, Harron and her husband searched publicly available sources, such as obituary postings on the internet by North Carolina funeral homes, to locate recently deceased North Carolinians.  Harron admitted that the two would then extract from the obituary postings certain personal information for the deceased, including their name, date of birth, and date of death.  Then, utilizing the extracted information, the defendants would then query the NC Medicaid eligibility tool to determine whether the deceased individual had a Medicaid Identification Number.  If the deceased North Carolinian had a valid Medicaid Identification Number and was otherwise eligible for Medicaid coverage during their life, the defendants would use that individual’s identity to “back-bill” NC Medicaid, through Agape, for up to one year of fictitious home health services that were allegedly rendered prior to the death of the individual.  NC Medicaid then disbursed millions to Agape, all of which flowed into accounts controlled by the Harron and her husband.

Harron admitted that she and her husband carried out the fraud via the internet from locations around the globe, including their corporate office building in Las Vegas, their penthouse condominium in Las Vegas, a corporate office in North Carolina, and from various hotels and luxury resorts in and outside of the United States.

Harron further pled guilty to laundering the proceeds of the Agape fraud into various luxury items.  These expenses included a $900,000 wire for the purchase of a British Aerospace Bae 125-800A private jet, hundreds of thousands of dollars in Tiffany & Co. and Brioni clothing and jewelry, thousands of dollars on Eastern North Carolina business properties, and thousands of dollars in gym equipment.

G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina, made the announcement after U.S. District Judge Richard E. Myers II announced the sentence.  The Federal Bureau of Investigation, the United States Department of Health and Human Services Office of the Inspector General, the Internal Revenue Service Criminal Investigation, and the North Carolina Attorney General’s Office Medicaid Investigations Division, all investigated the case.  Assistant U.S. Attorney William M. Gilmore served as the prosecutor.  Assistant U.S. Attorney John Harris represented the United States with respect to forfeiture aspects of the case.

Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 2:20-cr-00005-M-1.

BOISE – Douglas Wold, 48, of Meridian, pleaded guilty to one count of wire fraud, one count of mail fraud, and one count of money laundering based on schemes to defraud his employer, Fry Foods, Inc., during the height of the COVID-19 pandemic, announced Acting U.S. Attorney Rafael M. Gonzalez, Jr., today. Sentencing is set for August 27, 2021, before Chief U.S. District Judge David C. Nye at the federal courthouse in Boise.

According to court records, Wold worked as a Human Resources Manager for Fry Foods, Inc. in Ontario, Oregon, and executed two separate schemes.

First, beginning in at least May 2020 and continuing through August 2020, Wold committed wire fraud by submitting fraudulent payroll requests for individuals who never worked at Fry Foods or who no longer worked at Fry Foods at the time of the payroll requests. Payroll checks were processed based on Wold’s requests. Wold then deposited these fraudulent payroll checks into his own bank accounts.

Second, Wold committed mail fraud with respect to a COVID-19 testing program at Fry Foods’ Weiser, Idaho location in May 2020. Wold issued a fraudulent invoice to Fry Foods in the name of his business, Hala Lallo Health, for $39,995 when, in fact, the testing was provided by another entity and at a greatly lower cost. When Fry Foods paid Hala Lallo Health for the testing, Wold deposited the funds into a bank account he controlled and the company that actually provided the testing was not paid.

Wold committed the offense of engaging in monetary transactions in property derived from unlawful activity by transferring $69,116.48 in proceeds from his frauds for the purchase a speedboat and trailer.

Wire fraud and mail fraud carry a penalty of up to 20 years in federal prison, a maximum fine of $250,000, and up to three years of supervised release. Money laundering carries a penalty of up to ten years in federal prison, a maximum fine of $250,000, and up to three years of supervised release.

This case was investigated by Internal Revenue Service – Criminal Investigation and the Malheur County Sheriff’s Office.

For information about the Department of Justice’s efforts to stop illegal COVID-19-related activity, visit www.justice.gov/coronavirus. For the most up-to-date information on COVID-19, consumers may visit the Centers for Disease Control and Prevention (CDC) and WHO websites.

The public is urged to report suspected fraud schemes related to COVID-19 (the Coronavirus) to the National Center for Disaster Fraud (NCDF) hotline by phone at (1-866-720-5721) or via an online reporting form available at www.justice.gov/disaster-fraud/webform/ncdf-disaster-complaint-form

# # #

Leonard C Boyle, Acting United States Attorney for the District of Connecticut, Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration for New England, and David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that four men were arrested today on federal charges related to the distribution of oxycodone pills, counterfeit pills containing fentanyl, and other drugs in the Hartford area.

Each of the following individuals is charged by criminal complaint with conspiracy to possess with intent to distribute, and to distribute, controlled substances:

REY URENA, also known as “Rueben,” 21, of Waterbury
YAN REYES, 34, a citizen of the Dominican Republic residing in Hartford
RAMON VARGAS, 20, of Hartford
JOSE LORA, 27, of Hartford

Reyes, Vargas and Lora are also charged with possession with intent to distribute, and distribution of, controlled substances.  The four defendants are in custody and detention hearings are scheduled, beginning May 21.

As alleged in court documents and statements made in court, the DEA Tactical Diversion Squad and the FBI Northern Connecticut Gang Task Force have been investigating the distribution of oxycodone pills, counterfeit oxycodone pills containing fentanyl, and other drugs from neighborhood grocery stores in New Britain and Hartford.  Between January 2020 and March 2021, investigators made several controlled purchases of illegal pills at the Washington Market, formerly located at 453 Washington Street in Hartford; JZ Tobacco, located at 25 New Britain Avenue in Hartford, and Prestige Market, located at 23 New Britain Avenue in Hartford.  Urena supervised the illegal enterprise, Reyes and Vargas sold pills from JZ Tobacco and Prestige Market, and Lora served as a runner and lookout for the organization.

It is further alleged that, on December 20, 2020, investigators stopped a vehicle registered to Urena and found approximately 4,000 oxycodone pills and $51,000 in cash in a hidden “trap” beneath the front passenger seat of the car.

In connection with today’s arrests, investigators executed multiple search warrants.  It is alleged that a search of an apartment on Colonial Street in Hartford that was used by the drug trafficking organization revealed approximately one kilogram of suspected cocaine, approximately one kilogram of suspected fentanyl or heroin, more than 5,000 real and counterfeit oxycodone pills, approximately 2,000 xanax pills, items used to process and package narcotics, and two handguns.  A search of Urena’s residence in Waterbury revealed approximately $54,000.

Acting U.S. Attorney Boyle stressed that a complaint is only a charge and is not evidence of guilt.  Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.

The DEA’s New Haven Tactical Diversion Squad includes officers from the Bristol, East Windsor, Hamden, Meriden, New Britain, West Haven and Watertown Police Departments.  The FBI’s Northern Connecticut Gang Task Force includes members of the Hartford Police Department, East Hartford Police Department, New Britain Police Department, West Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.

This case is being prosecuted by Assistant U.S. Attorney John T. Pierpont, Jr.

KANSAS CITY, Mo. – A Braymer, Missouri, man was indicted by a federal grand jury today for a $215,000 cattle fraud scheme that he attempted to cover up by murdering two Wisconsin brothers.

Garland Joseph Nelson, 27, was charged in an indictment returned by a federal grand jury in Kansas City, Mo.

The indictment charges Nelson with one count of mail fraud for a scheme in which he allegedly shot and killed two men whom he had defrauded of $215,000 in a cattle contract. Nelson has been charged with two counts of murder in a separate state case that is scheduled for trial in June 2022.

According to the indictment, Nelson – an employee of J4s Farm Enterprises, Inc., a business started by his mother – agreed to care for cattle belonging to Diemel’s Livestock, LLC, located in Shawano County, Wisconsin. Nicholas and Justin Diemel were principals in Diemel’s Livestock, which invested and traded in cattle and other livestock. Nelson agreed to feed and pasture the cattle, then sell the cattle and send Diemel’s Livestock the proceeds (minus the costs of raising the cattle).

The Diemels sent several loads of cattle to Nelson from November 2018 through April 2019. Nelson sold some loads of cattle and paid the Diemels. However, Nelson allegedly sold, traded, and/or killed many of the Diemels’s cattle without remitting the payments to the Diemels. Nelson continued to fraudulently bill the Diemels for feed and yardage for cattle that had been sold, traded, or had died.

Nelson, the indictment says, did not properly care for cattle due to incompetence, neglect, or maltreatment. Cattle entrusted to Nelson had high death rates dues to underfeeding, neglect, and/or maltreatment. Nelson fed cattle inadequately and poorly. For example, he dropped hay bales in a pasture for calves but did not remove the plastic covering so that calves ate the plastic and died. In another example, in December 2018, Nelson was entrusted with feeding and caring for 131 calves he co-owned with a Kansas farmer. On May 23, 2019, Nelson dropped off 35 calves at the co-owner’s farm in Kansas, apparently all that survived of the 131. Of the surviving 35 calves, many were emaciated and had ringworm. Some calves had their ears torn as though identifying ear tags had been removed.

Throughout the spring of 2019, Nicholas Diemel pressed Nelson for payment for his cattle.  He sent no more loads of cattle to Nelson while he awaited his payment.

To deprive the Diemels of their cattle or their money and to prevent them from recovering either their cattle or their money, in June 2019 Nelson fraudulently sent the Diemels a bad check for $215,936 while the account had a balance of 21 cents. The check had been intentionally torn and damaged so that it could not be submitted for payment.

Nicholas Diemel determined to come to Missouri to retrieve his money. On July 17, 2019, Nicholas Diemel bought two round-trip airline tickets from Milwaukee to Kansas City. On July 20, 2019, Nicholas and Justin Diemel arrived in Kansas City and rented a pickup truck from Budget.

On July 21, 2019, the Diemels drove their rental truck to Nelson’s mother’s farm in Braymer, the indictment alleges, where Nelson killed them both and attempted to dispose of their bodies.

Today’s indictment also contains a forfeiture allegation, which would require Nelson to forfeit to the government any property obtained from the proceeds of the alleged fraud scheme, including $215,936.

The charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.

This case is being prosecuted by Assistant U.S. Attorney Kathleen D. Mahoney. It was investigated by the FBI, the U.S. Department of Agriculture – Office of Inspector General, the Caldwell County, Mo., Sheriff’s Department, the Bourbon County, Kan., Sheriff’s Department, and the Missouri State Highway Patrol.

            ALBUQUERQUE, N.M. – Ivan Allen, 40, of Moreno Valley, California, was sentenced on May 17 in federal court to 21 months in prison for assaulting federal officers. Allen was indicted on April 24, 2019, and pleaded guilty on Nov. 14, 2019.

            Allen, who is non-Indian, assaulted two officers of the Pueblo of Laguna Tribal Police Department, who are commissioned as Special Law Enforcement Officers by the Bureau of Indian Affairs’ Office of Justice Services. Allen committed the offense on March 26, 2019, on the Pueblo of Laguna in Cibola County, New Mexico.

            In his plea agreement, Allen admitted that on March 26, 2019, he was driving eastbound on Interstate 40 at a high rate of speed with the headlights of his vehicle off.  An officer with the Pueblo of Acoma Police Department attempted to conduct a traffic stop, but Allen increased his speed and fled.  Allen hit a concrete barrier and two officers with the Pueblo of Laguna Police Department responded to the scene.  The officers used their public address system to command Allen to step out of his vehicle, which he initially ignored.  Eventually, Allen complied with the officers’ commands.  Upon reaching one of the police vehicles, Allen stiffened and fell backward onto the vehicle.  When the officers approached Allen to render assistance, Allen began to fight the officers. After almost ten minutes of resistance, Allen was subdued and arrested.

            Upon his release from prison, Allen will be subject to three years of supervised release.

            The FBI’s Albuquerque Field Office investigated this case with assistance from the Bureau of Indian Affairs and Pueblo of Laguna Tribal Police Department. Assistant U.S. Attorneys Raquel Ruiz-Velez and Kyle T. Nayback prosecuted the case.

HONOLULU – Jonathan Tai, 36, of Kurtistown, Hawaii, made his initial appearance yesterday in United States District Court in Honolulu on methamphetamine and firearm charges filed in a criminal complaint. United States Magistrate Judge Kenneth J. Mansfield ordered him detained pending a detention hearing on Thursday, May 20.

Judith A. Philips, Acting United States Attorney, said the appearance followed Tai’s arrest on May 14, 2021, at his residence in Kurtistown after execution of a search warrant for that location. According to court documents, law enforcement authorities recovered approximately 4,600 gross grams of a substance testing positive for methamphetamine from two mail parcels addressed to a post office box in Mountain View pursuant to a search warrant issued on May 4, 2021. No one picked up those parcels, but a review of video surveillance of the same post office showed an individual strongly resembling Tai previously picking up two other mail parcels, and Tai was also previously identified as an individual who received mail at the same post office box to which the searched mail parcels were addressed.

Law enforcement authorities obtained a search warrant for Tai’s Kurtistown residence and, on May 13, pursuant to that warrant, recovered 240 gross grams of a substance testing positive for methamphetamine, more than 2,600 rounds of ammunition, more than $100,000 in U.S. currency, and a bump-stock device allowing a shooter of a semi-automatic firearm to initiate a continuous firing cycle with a single pull of the trigger. Also recovered at the time of the search and Tai’s arrest were a semi-automatic handgun and five “ghost guns,” generally defined as unserialized firearms that are often sold through kits and assembled at home.

Tai is charged in the criminal complaint with one count of methamphetamine trafficking and one count of possessing the semi-automatic handgun during and in relation to the methamphetamine trafficking. If indicted and convicted on those charges, Tai faces a mandatory minimum term of imprisonment of ten years and a maximum penalty up to life imprisonment on the methamphetamine charge and, on the firearm charge, a mandatory term of five years in prison consecutive to the imprisonment on the drug charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

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

ST. LOUIS – Leonard Elliston Thomas, 36, of  St. Louis Missouri, pleaded guilty to one count of being a felon in possession of a firearm. Thomas appeared, today, before United States District Court Judge Sarah E. Pitlyk.

In February 2020, agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) received information, from a source, Thomas and a co-defendant were attempting to purchase fully automatic firearms. The co-defendant was a Bureau of Prisons inmate at the time.

Thomas and his co-defendant negotiated a deal to purchase multiple firearms and Glock switches from undercover ATF agents in exchange for cash and methamphetamine. The co-defendant arranged a deal via telephone and Thomas met with agents. Both were arrested and multiple firearms and drugs were seized.

The Bureau of Alcohol, Tobacco, Firearms & Explosives investigated the case. Assistant U.S. Attorney Allison Behrens is handling the case.

#####

PEORIA. Ill. – A grand jury today indicted a Central Illinois man, John W. Beck, 54, of Mechanicsburg, Ill., for allegedly committing four robberies over a two-week period in April 2021.

The indictment alleges that Beck committed four robberies in three Central Illinois counties from April 8 to April 20, 2021. The robberies include the April 8, 2021 robbery of the Dollar General in Buffalo, Ill., in Sangamon County; robbery of the Odell Bank, Odell, Ill., in Livingston County, on April 9, 2021; robbery of the Fast Stop Store, also in Odell, Ill., on April 17, 2021; and, the armed bank robbery of Elmwood Community Bank, in Elmwood, Ill, Peoria County, on April 20, 2021.

Beck was arrested in Springfield, Ill. on April 21, 2021 on warrants issued by Livingston County and the Illinois Department of Corrections. He has remained in the custody of law enforcement in Livingston County. His date for appearance in federal court has not been set.

If convicted, the maximum statutory penalties for the alleged crimes charged are up to 25 years in prison for armed bank robbery (one count) and up to 20 years in prison for two counts of interference with commerce by robbery, known as the Hobbs Act, and one additional count of bank robbery.

Agencies participating in the investigation include the FBI-Springfield Division; the U.S. Marshals Service; the sheriffs’ offices for Livingston, Edgar, Sangamon, Peoria and DeWitt counties, the Springfield Police Department, and the Elmwood Police Department. Supervisory Assistant U.S. Attorney Darilynn J. Knauss is representing the government in the prosecution.

Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty. 

CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051

ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Jordan Sowersby, 27 of Painted Post, NY, pleaded guilty before U.S. District Judge Charles J. Siragusa to possessing child pornography depicting prepubescent minors, after having sustained a prior child pornography conviction. The charge carries a minimum penalty of 10 years in prison, a maximum of 20 years, a lifetime period of supervised release, and a $250,000 fine.

Assistant U.S. Attorney Kyle P. Rossi, who is handling the case, stated that in January and February 2021, an undercover FBI Special Agent located the defendant offering child pornography for download on the internet. The undercover agent downloaded child pornography directly from Sowersby, which enabled the FBI to determine the defendant’s location in Painted Post. Subsequent investigation revealed that Sowersby is a registered sex offender as a result of a prior New York State child pornography conviction. 

On February 26, 2021, the FBI, accompanied by members of the Steuben County Sheriff’s Office and the New York State Police, executed a federal search warrant at the defendant’s home and seized multiple digital devices. A forensic analysis recovered hundreds of images and videos of child pornography.

The plea is the result of an investigation by the Corning, NY, Office of the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia; the Steuben County Sheriff’s Office, under the direction of Sheriff James Allard; and the New York State Police, under the direction of Major Barry Chase. 

Sentencing is scheduled for August 24, 2021, at 10:00 am before Judge Siragusa.

# # # #