Columbia, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that two Columbia men were sentenced to federal prison after pleading guilty to aiding and abetting the possession with intent to distribute and distribution of cocaine base.  Jamil Shamond Brennan, 26, of Columbia, was sentenced to more than 9 years in prison.  Tevin Brosia, 27, of Columbia, was sentenced to more than 11 years in prison.

Evidence presented to the Court showed that Brennan and Brosia helped facilitate the sale of cocaine base, commonly known as crack cocaine, to an undercover law enforcement officer who was posing as a drug buyer.  On February 25, 2020, the undercover officer made a controlled purchase of 25.7 grams of crack cocaine outside a residence in Columbia.  Brennan supplied the crack cocaine sold; Brosia was the middleman for the sale. 

Senior United States District Judge Cameron McGowan Currie sentenced Brennan to 110 months in federal prison and sentenced Brosia to 140 months in federal prison.  Both Brosia and Brennan’s prison terms will be followed by a six-year term of court-ordered supervision.  There is no parole in the federal system.

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Richland County Sheriff’s Department, and the Columbia Police Department. 

Assistant United States Attorney Katherine Flynn prosecuted the case.

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JOHNSTOWN, PA - A resident of Blair County, Pennsylvania, pleaded guilty in federal court to a charge of possession with intent to distribute multiple Schedule I and II controlled substances, Acting United States Attorney Stephen R. Kaufman announced today.

Jesse Daniel Ginter, 40, of Williamsburg, PA 16693 pleaded guilty on July 23, 2021, to one count before United States District Judge Kim R. Gibson.

In connection with the guilty plea, the court was advised that on March 12, 2018, Homeland Security Investigations agents and other law enforcement executed a federal search warrant on Ginter’s residence and recovered quantities of numerous controlled substances, including furanyl fentanyl, methoxyacetyl fentanyl, cyclopropyl fentanyl, U-47700, AMB-Fubinaca, carfentanil, fentanyl, marijuana, cocaine, and methamphetamine. The Court was further advised that investigators recovered firearms, ammunition, currency, a digital scale, stamp bags, and other indicia of drug trafficking from Ginter’s residence.

Judge Gibson scheduled sentencing for Nov. 23, 2021. The law provides for a maximum total sentence of 20 years imprisonment, a fine of not more than $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.

Assistant United States Attorney David Lew is prosecuting this case on behalf of the government.

The U.S. Postal Inspection Service; U.S. Department of Homeland Security, Immigration and Customs Enforcement, Homeland Security Investigations; Federal Bureau of Investigation; and Pennsylvania State Police conducted the investigation leading to the Indictment in this case.

WICHITA, KAN. – A federal grand jury in Wichita indicted a Wichita man on 17 counts of Failure to Pay Over Payroll Taxes.

According to court documents, Jesus Perez-Aguayo, 38, served as owner, operator, and president of two companies, JLP Construction and JP Remodeling. Between 2015 and 2019, Perez-Aguayo is accused of collecting but not forwarding hundreds of thousands of dollars in employee payroll taxes to the Internal Revenue Service. 

If there is a conviction, each count of Failure to Pay Over Payroll Taxes carries a penalty of up to five years in prison.

Internal Revenue Service Criminal Investigation is investigating the case.

Assistant U.S. Attorney Molly Gordon is prosecuting the case.

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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Tampa, Florida – U.S. District Judge William Jung has sentenced Gabriel Galvan (32, Sarasota) to seven years and two months in federal prison for possessing a firearm and ammunition as a convicted felon. The court also ordered Galvan to forfeit the firearm and ammunition used in the offense.

Galvan had pleaded guilty on April 27, 2021.

According to court documents, on February 10, 2020, Galvan was standing in the middle of the street in a Sarasota neighborhood, blocking traffic. When a driver blew his horn and gestured to Galvan to move out of the road, Galvan pulled a gun from his back pocket and fired two shots. The car drove off and Galvan fled the area.

Officers from the Sarasota Police Department then responded to the area, made contact with Galvan, and located the firearm hidden underneath an air conditioner, as well as two spent shell casings.

Galvan later confessed to possessing and firing the firearm. Further, a DNA analysis comparing Galvan’s DNA to a sample taken from the firearm concluded it was 700 billion times more likely that the sample came from Galvan than anyone else. At the time of the shooting, Galvan had several previous felony convictions and therefore was and is prohibited from possessing firearms or ammunition.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Sarasota Police Department. It was prosecuted by Assistant United States Attorney Charlie D. Connally.

This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, 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.

Myrtle Beach, South Carolina --- Acting United States Attorney M. Rhett Dehart announced today that a joint team of dozens of federal, state, and local law enforcement officers, led by the Drug Enforcement Administration (DEA), arrested six individuals who have been charged in federal court for their roles in an interstate drug trafficking organization that operated out of Myrtle Beach, Conway, Florence, and New York City.

This is the second round of indictments in Operation New Optix, which began with the related indictment of 26 alleged drug traffickers in December 2020.  Of the 35 defendants currently indicted, four remain at large and 22 have already pled guilty.  This multi-year operation specifically targeted members of this drug trafficking organization based on their interstate importation of large quantities of cocaine and crack cocaine into South Carolina from the New York area, and their use of firearms in furtherance of their drug trafficking crimes.  During this week’s arrests, agents seized approximately $272,546 in suspected drug proceeds, five vehicles, 11 firearms, more than 4.5 kilograms of suspected cocaine, more than 450 grams of suspected crack cocaine, and additional amounts of suspected fentanyl, heroin, marijuana, and other drugs. 

The following defendants were arrested this week:

• Jovan Steven GRAVES, a/k/a “Pablo,” 34, of Brooklyn, New York, is charged with conspiracy to possess with intent to distribute and distribute 5 kilograms or more of cocaine.  This charge carries a potential penalty of 10 years to Life imprisonment. 

• Sean Lewis ADAMS, a/k/a “Lou,” 39, of Longs, is charged with conspiracy to possess with intent to distribute and distribute 5 kilograms or more of cocaine.  This charge carries a potential penalty of 10 years to Life imprisonment.

• Arthur Lee BUSBEE, JR., a/k/a “Bubba Jaws,” 39, of Conway, is charged with conspiracy to possess with intent to distribute and distribute 500 grams or more of cocaine.  This charge carries a potential penalty of 5 to 40 years imprisonment.

• Deondray Azell AZELL STANFIELD, a/k/a “Rich Black,” 43, of Myrtle Beach, is charged with conspiracy to possess with intent to distribute and distribute 500 grams or more of cocaine.  This charge carries a potential penalty of 5 to 40 years imprisonment. 

• Brodus Bernard GREGG, 68, of Conway, is charged with conspiracy to possess with intent to distribute and distribute 500 grams or more of cocaine.  This charge carries a potential penalty of 5 to 40 years imprisonment. 

• Dayvon Chadmar BEASE, a/k/a “T-Nochi,” 37, of Conway, is charged with conspiracy to possess with intent to distribute and distribute 500 grams or more of cocaine.  This charge carries a potential penalty of 5 to 40 years imprisonment. 

The following defendants who were charged in the first round of this investigation have pled guilty: 

• Shackeel COLEMAN, 29, of Myrtle Beach, pled guilty to conspiracy to possess with intent to distribute and distribute 5 kilograms or more of cocaine.  This charge carries a potential penalty of 10 years to Life imprisonment. 

• Harry BELLAMY, 41, of Myrtle Beach, pled guilty to conspiracy to possess with intent to distribute and distribute 5 kilograms or more of cocaine, 28 grams of cocaine base, and a quantity of marijuana.  This charge carries a potential penalty of 10 years to Life imprisonment. 

• Steven JEFFCOAT, 30, of Myrtle Beach, pled guilty to conspiracy to possess with intent to distribute and distribute 5 kilograms or more of cocaine and 28 grams of cocaine base.  This charge carries a potential penalty of 10 years to Life imprisonment. 

• Lenard HEMINGWAY, 53, of Myrtle Beach, pled guilty to conspiracy to possess with intent to distribute and distribute 500 grams or more of cocaine.  This charge carries a potential penalty of 5 to 40 years imprisonment. 

• Yenitza COLEMAN, 27, of Myrtle Beach, pled guilty to conspiracy to possess with intent to distribute and distribute 500 grams or more of cocaine.  This charge carries a potential penalty of 5 to 40 years imprisonment. 

• Jasamine MITCHELL, 32, of Conway, pled guilty to conspiracy to possess with intent to distribute and distribute 500 grams or more of cocaine.  This charge carries a potential penalty of 5 to 40 years imprisonment. 

• Bradley ADAMS, 26, of Myrtle Beach, pled guilty to conspiracy to possess with intent to distribute and distribute 500 grams or more of cocaine.  This charge carries a potential penalty of 5 to 40 years imprisonment. 

• Timothy MCCRAY, 31, of Conway, pled guilty to conspiracy to possess with intent to distribute and distribute 28 grams of cocaine base and a quantity of cocaine.  This charge carries a potential penalty of 5 to 40 years imprisonment

• Brandon PRAWL, 35, of Conway, pled guilty to conspiracy to possess with intent to distribute and distribute 500 grams or more of cocaine and 28 grams of more of cocaine base.  This charge carries a potential penalty of 5 to 40 years imprisonment. 

• Henry BOYD, 39, of Conway, pled guilty to conspiracy to possess with intent to distribute and distribute 28 grams of more of cocaine base and a quantity of cocaine.  This charge carries a potential penalty of 5 to 40 years imprisonment. 

• Timothy LEE, 27, of Myrtle Beach, pled guilty to conspiracy to possess with intent to distribute and distribute 28 grams of more of cocaine base.  This charge carries a potential penalty of 5 to 40 years imprisonment. 

• Jacqueline STRICKLAND, 59, of Conway, pled guilty to conspiracy to possess with intent to distribute and distribute 500 grams or more of cocaine.  This charge carries a potential penalty of 5 to 40 years imprisonment. 

• Venson STRICKLAND, 29, of Myrtle Beach, pled guilty to conspiracy to possess with intent to distribute and distribute 28 grams of more of cocaine base and a quantity of cocaine.  This charge carries a potential penalty of 5 to 40 years imprisonment. 

• James GRAHAM, 30, of Conway, pled guilty to conspiracy to possess with intent to distribute and distribute a quantity of cocaine.  This charge carries a potential penalty of up to 20 years imprisonment. 

• Alonzo Lee PIERCE, 37, of Galivants Ferry, pled guilty to conspiracy to possess with intent to distribute and distribute 28 grams of more of cocaine base and a quantity of cocaine.  This charge carries a potential penalty of 5 to 40 years imprisonment. 

• Gary JACKSON, 30, of Myrtle Beach, pled guilty to conspiracy to possess with intent to distribute and distribute 500 grams or more of cocaine.  This charge carries a potential penalty of 5 to 40 years imprisonment. 

• Alton BROWN, 41, of Florence, pled guilty to conspiracy to possess with intent to distribute and distribute a quantity of cocaine and a quantity of cocaine base.  This charge carries a potential penalty of up to 20 years imprisonment. 

• Joshua DARBY, 32, of Murrells Inlet, pled guilty to conspiracy to possess with intent to distribute and distribute a quantity of cocaine and a quantity of cocaine base.  This charge carries a potential penalty of up to 20 years imprisonment. 

• Travis ROGERS, 40, of Conway, pled guilty to conspiracy to possess with intent to distribute and distribute 28 grams of more of cocaine base.  This charge carries a potential penalty of 5 to 40 years imprisonment. 

• Kevin LINNEN, 33, of Myrtle Beach, pled guilty to conspiracy to possess with intent to distribute and distribute a quantity of cocaine.  This charge carries a potential penalty of up to 20 years imprisonment. 

• Mario WILLIAMS, 41, of Florence, pled guilty to conspiracy to possess with intent to distribute and distribute a quantity of cocaine and a quantity of marijuana.  This charge carries a potential penalty of up to 20 years imprisonment. 

• Robert HOOKER, 40, of Myrtle Beach, pled guilty to conspiracy to possess with intent to distribute and distribute a quantity of cocaine.  This charge carries a potential penalty of up to 20 years imprisonment. 

The following defendants from the first round are in custody pending trial or plea:

• Quentin SMITH, 29, of Conway, is charged with conspiracy to possess with intent to distribute and distribute 28 grams of more of cocaine base.  This charge carries a potential penalty of 5 to 40 years imprisonment.  He is also charged with possession of a firearm in furtherance of a drug trafficking crime which carries a potential penalty of 5 years consecutive to any other penalty imposed.

• Kimo FELTON, 41, of Conway, is charged with conspiracy to possess with intent to distribute and distribute 5 kilograms or more of cocaine.  This charge carries a potential penalty of 10 years to Life imprisonment.

• Curtis MCARTHUR, 35, of Longs, is charged with conspiracy to possess with intent to distribute and distribute a quantity of cocaine.  This charge carries a potential penalty of up to 20 years imprisonment. 

Operation New Optix is the latest in a series of joint federal/state investigations targeting violent crime in Myrtle Beach and Horry County.  In 2017, Operation Silver Sunset targeted 29 associates of the Billy Bloods street gang, a subset of the United Blood Nation.  In 2018, Operation Rise and Shine targeted 33 associates of G-Shine/SMG, another subset of the Bloods.  In 2020, Operation Broken Branch targeted 31 members of a drug trafficking organization in the Cedar Branch area of Horry County.  The recent arrests mark the latest, but not the last, joint investigation targeting violent crime in this area. 

Agents with the DEA’s Florence Resident Office led the investigation, with significant participation from the Bureau of Alcohol Tobacco, Firearms, and Explosives (ATF), United States Marshal Service, Myrtle Beach Police Department, Horry County Police Department, North Myrtle Beach Police Department, Florence County Sheriff’s Office – Special Operations Group, Georgetown County Sheriff’s Office, 15th Circuit Drug Enforcement Unit, Conway Police Department, and Horry County Sherriff’s Office. 

“As this office has made clear time and again, violent criminals will find no safe harbor in South Carolina,” said Acting U.S. Attorney DeHart. “Because of the work of our federal, state, and local partners, we have obtained more than 100 convictions and been able to dismantle violent gangs across the Pee Dee Region.”

“These convicted notorious gang-related drug dealers distributed poison to the community and caused fear through means of violence and intimidation,” said the Special Agent in Charge of the DEA Atlanta Field Division Robert J. Murphy. “Step by step, the government disrupted and dismantled this once-thriving criminal network. This case has been successful because of spirited level of cooperation between DEA and its law enforcement counterparts.”

“Thank you to everyone involved for preparing and prosecuting these cases,” said Myrtle Beach Police Chief Amy Prock. “Our community is safer because of their hard work and dedication.”

Assistant United States Attorney Everett McMillian, Lead Task Force Attorney for the Organized Crime Drug Enforcement Task Force (OCDETF), is prosecuting the case in coordination with the 15th Circuit Solicitor’s Office. 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.

All defendants who have not pled are presumed innocent until and unless proven guilty.

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            Audrey Strauss, the United States Attorney for the Southern District of New York, and Dermot Shea, Police Commissioner for the City of New York (“NYPD”), announced the unsealing of a Superseding Indictment charging VICTOR RIVERA, 30, and JOHAN ARAUJO, 40, with conspiracy to commit robbery, robbery, attempted robbery, attempted extortion, interstate transportation of stolen property, money laundering, and firearms offenses.  ARAUJO was arrested on July 23 and presented and arraigned before United States Magistrate Judge Katharine H. Parker.  RIVERA was previously charged in an Indictment in November 2020 and is currently in custody.  This case is assigned to United States District Judge Alvin K. Hellerstein.           

U.S. Attorney Audrey Strauss said: “As alleged in the Indictment, the defendants committed a series of armed robberies and attempted robberies of jewelers and other owners of luxury watches in and around New York City.  In one of these robberies, a victim was shot.  Thanks to the outstanding work of the NYPD and Special Agents of our Office, time ran out on the defendants, who now face federal charges for their alleged crimes.”

NYPD Commissioner Dermot Shea said: “The charges show that while criminals often believe they can operate in plain sight with apparent impunity, the NYPD and our law enforcement partners exist to shatter that notion and bring those responsible to justice.  I thank our colleagues at the United States Attorney’s Office in the Southern District of New York for their dedication and hard work building this case and ensuring these two alleged dangerous criminals will be held to account.”

As alleged in the Indictment unsealed last Friday in Manhattan federal court and based on statements made in court proceedings and filings[1]:

From at least in or about October 2019 up to and including November 2020, RIVERA, ARAUJO, and others known and unknown agreed to rob victims of luxury watches worth up to hundreds of thousands of dollars each.  The watches owned by victims targeted in the robberies included Richard Mille, Rolex, Audemars Piguet, and Patek Philippe as part of the jewelers’ businesses based in Manhattan’s Diamond District.  RIVERA used guns to commit several of the robberies, and in one robbery, shot a victim, who survived. 

The 11 robberies and attempted robberies included the following: 

1. On October 3, 2019, RIVERA and a co-conspirator robbed a jeweler in Long Island City, New York, of, among other things, a Richard Mille watch worth over $250,000.
2. On October 25, 2019, RIVERA and a co-conspirator robbed a jeweler in Jamaica, New York, of, among other things, a Rolex watch worth over $150,000.
3. On December 10, 2019, RIVERA, ARAUJO, and a co-conspirator robbed a jeweler in Brooklyn, New York, of, among other things, a Patek Philippe watch worth over $160,000 and a diamond necklace worth over $77,000.  During the robbery, a firearm was shown to the victim.
4. On January 14, 2020, RIVERA and a co-conspirator robbed of a jeweler in Rego Park, New York, of, among other things, a Richard Mille watch worth over $500,000.
5. On February 16, 2020, RIVERA and ARAUJO robbed a jeweler in Jamaica Estates, New York, of, among other things, an Audemars Piguet watch worth over $28,000.
6. On February 20, 2020, RIVERA and a co-conspirator robbed an individual in Long Island City, New York, of, among other things, an Audemars Piguet watch worth over $125,000.
7. On June 11, 2020, RIVERA and ARAUJO robbed a jeweler in Brooklyn, New York, of, among other things, a Richard Mille watch worth over $148,000.  During the robbery, a firearm was shown to the victim and a victim was shot.
8. On July 6, 2020, RIVERA and a co-conspirator robbed a jeweler in Hoboken, New Jersey, of, among other things, a Richard Mille watch worth over $81,000.  Following the robbery, RIVERA and others transported the stolen watch from New Jersey to New York.
9. On July 20, 2020, RIVERA and a co-conspirator participated in an attempted robbery of a jeweler in Queens, New York, attempting to steal a Richard Mille watch worth over $180,000.
10. On August 2, 2020, RIVERA and a co-conspirator robbed an individual in the vicinity of Englewood Cliffs, New Jersey, of, among other things, a Richard Mille watch worth over $250,000.  During the robbery, a firearm was shown to a victim.  Following the robbery, RIVERA and others transported the stolen watch from New Jersey to New York.
11. On October 27, 2020, RIVERA and a co-conspirator robbed a jeweler in the vicinity of Woodbury, New York, of, among other things, an Audemars Piguet watch worth over $26,000 and assorted jewels and gold links worth over $60,000.  During the robbery, a firearm was shown to a victim.           

*                *                *

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

Ms. Strauss praised the outstanding investigative work of the New York City Police Department and the Special Agents of the U.S. Attorney’s Office for the Southern District of New York.  Ms. Strauss also thanked the Bergen County Prosecutor’s Office, the Englewood Cliffs Police Department, the Weehawken Police Department, and the Nassau County Police Department for their assistance.

This case is being handled by the Office’s Violent and Organized Crime Unit.  Assistant United States Attorneys Mathew Andrews, Andrew K. Chan, and Celia Cohen are in charge of the prosecution.           

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

Tampa, Florida – U.S. District Judge William Jung has sentenced Ariel Tillman (37, Tampa) to two years and eight months in federal prison for credit card fraud and aggravated identity theft. As part of her sentence, the court also entered a money judgment of $225,271.04, the proceeds of the fraud.

Tillman had pleaded guilty on December 3, 2019.

According to court documents, from approximately July through October 2018, Tillman and others devised and executed a scheme whereby they obtained stolen credit card numbers and used those account numbers to purchase stamps at night from self-service kiosks at various U.S. Post Offices. They then sold the stamps on the secondhand market.  During the course of its investigation, the U.S. Postal Inspection Service obtained dozens of surveillance photos of Tillman using counterfeit credit cards to make purchases at Post Offices in Brandon, Brandon-Bloomingdale, Riverview, Sun City Center (Ruskin), Temple Terrace, Carrollwood (Tampa), Dunedin, Forest Hills, St. Petersburg, New Tampa, and Pinellas Park.

This case was investigated by the United States Secret Service, the United States Postal Inspection Service, and the Lee County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Rachel Jones.

Tampa, Florida – U.S. District Judge William Jung has sentenced Dr. Richard Davidson (Delray Beach, 42) to six years in federal prison for conspiracy to commit health care fraud. As part of his sentence, the court ordered Davidson to forfeit approximately $650,000 in funds traceable to the offense or as substitute assets. The court also entered a money judgment of $2.47 million and ordered $10.72 million in restitution. Davidson lost his medical license due to his conviction.

Davidson had pleaded guilty on September 16, 2020.

According to court documents, in 2018, Davidson and his conspirators established a conglomerate of durable medical equipment (“DME”) supply companies. During the creation of the companies, they lied to Medicare to secure billing privileges. The scheme involved placing the companies in the names of straw owners. By concealing the companies’ true ownership, the conspirators secretly gained control of multiple companies. This enabled the conspirators to submit high volumes of illegal DME claims while attempting to evade law enforcement scrutiny. In one year, through the conglomerate, Davidson and his conspirators submitted more than $20 million in illegal DME claims, resulting in more than $10 million in payments from Medicare and the Civilian Health and Medical Program of the Department of Veterans Affairs (“CHAMPVA”).

To attain such high volumes of claims, the conspirators used bribes and kickbacks. Specifically, Davidson and his conspirators illegally purchased thousands of DME claims from so-called “marketers.” The marketers, for their part, had generated the claims under the guise of “telemedicine,” but no telemedicine had actually occurred. Instead, the “marketers” had bribed doctors to sign the DME brace orders that supported the claims. Davidson and his conspirators paid millions to secure the illegal DME claims for submission to Medicare and CHAMPVA.

This case was investigated by the U.S. Department of Health and Human Services – Office of Inspector General, the Federal Bureau of Investigation, the Department of Veterans Affairs – Office of Inspector General, and the Internal Revenue Service – Criminal Investigation, Tampa Field Office. It was prosecuted by Assistant United States Attorneys Kristen A. Fiore and James A. Muench.

Memphis, TN – Caery Gorman, 45, has been sentenced to 121 months in federal prison for distribution of methamphetamine and for being a convicted felon in possession of firearms. Acting U.S. Attorney Joseph C. Murphy Jr., announced the sentence today.

According to information presented in court, between April and June 2018, agents with the DEA and ATF were investigating Gorman as a heroin and methamphetamine supplier here in the Western District of Tennessee, as part of a larger investigation into the Grape Street Crips Street Gang. Agents utilized a Confidential Informant in conjunction with an Undercover Agent (UCA) on three separate occasions to purchase heroin, methamphetamine and firearms directly from Gorman.

On April 26, 2018, the UCA arranged to purchase ICE ("methamphetamine") from Gorman at his home. This substance tested positive for methamphetamine with a weight of 77 grams. Further testing at the DEA lab, confirmed it was methamphetamine with a 98% purity. The second buy, on June 5, 2018, the UCA met again at Gorman’s home in Memphis to purchase 178 grams of suspected heroin for $3600 and a Sig Sauer 9 mm pistol for $450. On June 14, 2018, the UCA purchased 85 grams of suspected heroin for $2400 and 4 guns- a S&W .40 caliber, a 7.62x39 mm AK style pistol, and two Taurus .380 caliber pistols. The guns were confirmed to be manufactured outside the state of Tennessee and therefore traveled in interstate commerce.

Gorman is a convicted felon, having previously been convicted of possession of cocaine with the intent to distribute. As a result of his prior felony convictions, he is prohibited by federal law from possessing firearms or ammunition.

On April 13, 2021, the defendant pled guilty to distribution of methamphetamine (50 grams or more) as well as being a convicted felon in possession of multiple firearms on two separate occasions.

On July 22, 2021, U.S. District Judge Sheryl H. Lipman sentenced Gorman to 121 months in federal prison to be followed by five years’ supervised release. There is no parole in the federal system.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).

Assistant U.S. Attorney Melanie Cox prosecuted this case on behalf of the government.

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LAREDO, Texas – A 42-year-old resident of Covington, Georgia, has pleaded guilty in Laredo federal court to conspiracy to transport undocumented aliens, announced Acting U.S. Attorney Jennifer B. Lowery.

Jonathan Kyle Price admitted he had agreed to smuggle 117 aliens past a Border Patrol (BP) checkpoint.

On Feb. 19, Price arrived at the BP checkpoint on Interstate Highway 35 approximately 29 miles north of Laredo in a tractor-trailer. However, he drove away before his immigration inspection was complete. Law enforcement pursued and quickly stopped him

A service K-9 then detected an odor within the trailer. Authorities conducted a thorough inspection and found 117 undocumented aliens.

U.S. District Judge Marina Garcia Marmolejo will impose sentencing Oct. 25. At that time, Price faces up to 10 years in prison. He was permitted to remain on bond pending that hearing.

Homeland Security Investigations conducted the investigation with the assistance of BP. Assistant U.S. Attorney David Fawcett is prosecuting the case.

Greenbelt, Maryland – A federal jury convicted Devell Lincoln, age 55, of Washington, D.C., of conspiring to commit theft of public money, theft of public money and aggravated identity theft.  The jury returned its verdict late on July 23, 2021.    

The conviction was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division; and Acting Special Agent in Charge Darrell J. Waldon of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.

According to court documents and the evidence introduced at trial, from 2011 to 2013, Devell Lincoln conspired with Stephanie Twyman and others to cash tax refund checks fraudulently obtained by filing false federal income tax returns in the names of other individuals with the IRS. In total, the conspirators cashed more than $500,000 in fraudulent refunds at a check-cashing business and Lincoln deposited more than $150,000 in fraudulent refunds using bank accounts under his control.

From 2011 to 2013, false federal income tax returns were filed with the IRS using the names and Social Security numbers of unwitting taxpayers and seeking fraudulent refunds. When the refunds were received, Lincoln and his co-conspirators cashed the checks at a check-cashing business.  In addition, from 2010 to 2014, Lincoln deposited fraudulent refunds into bank accounts under his control.  While two of these accounts were in Lincoln’s name, one bank account was held in the name of a third-party, who was deceased, and one was in the name of a company registered under the deceased person’s name, with the deceased person as the signatory.

Twyman, age 49, of Clinton, Maryland, pleaded guilty to theft of government money and aggravated identity theft on July 3, 2019, for her role in the refund scheme. She is expected to be sentenced at a later date.

Lincoln is scheduled to be sentenced at a later date and faces a mandatory two years in federal prison, consecutive to any other sentence imposed, for aggravated identity theft; a maximum sentence of five years in prison for conspiracy; and a maximum sentence of ten years in prison for theft of public money. U.S. District Judge Paul W. Grimm will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting United States Attorney Jonathan F. Lenzner and Acting Deputy Assistant Attorney General Stuart M. Goldberg commended the IRS-CI for its work in the investigation.  Mr. Lenzner thanked Assistant U.S. Attorneys Jessica C. Collins and Trial Attorney Abigail Burger Chingos of the Tax Division, who are prosecuting the case.

For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.

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TRENTON, N.J. – A Burlington County, New Jersey, man is expected to make his initial appearance today after being charged with trafficking over three kilograms of methamphetamine and illegally possessing unregistered firearms as a previously convicted felon, Acting U.S. Attorney Rachael A. Honig announced.

Nicholas Layton, 41, of Mount Holly, New Jersey, is charged by complaint with one count of conspiracy to distribute 50 grams or more of methamphetamine, one count of possession with intent to distribute 50 grams or more methamphetamine, three counts of unlawful possession of unregistered firearms and one count of possession of firearms by a convicted felon. He is scheduled to appear today before U.S. Magistrate Judge Douglas E. Arpert.

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

In December 2018, Layton and an unnamed conspirator were driving separate vehicles from Arizona back to New Jersey. Both vehicles were the subject of a motor vehicle stop in Crawford County, Arkansas. Subsequent investigation revealed that the conspirator’s vehicle contained four wrapped bundles of suspected narcotics, later confirmed to be approximately three kilograms of methamphetamine. According to receipts located in both vehicles, Layton rented both cars and the cars traveled together through multiple states before being stopped in Arkansas. Both Layton and his conspirator were charged by the State of Arkansas in connection with the methamphetamine; Layton was released by authorities.

In May and June of 2019, Layton sold methamphetamine on three separate occasions to confidential informants under the surveillance of law enforcement in Pemberton and Mount Holly, New Jersey.

On July 17, 2019, law enforcement executed a search warrant at Layton’s residence in Mount Holly where they located:

1) a black “AR” style, 5.56 x 45mm semi-automatic rifle, having no visible serial number, which law enforcement later determined was a Privately Made Firearm (“PMF”);

2) a 9mm semi-automatic rifle, having no visible serial number, which law enforcement later determined was a PMF;

3) a firearm silencer, having no visible serial number, which law enforcement later determined was a PMF; and

4) eight “M-Class” explosive devices

On July 17, 2019, law enforcement executed a search warrant at another residence associated with Layton in Southampton, New Jersey, where they located:
5) a Norcino, SKS type, 762 caliber, semi-automatic rifle (the “Norcino”), bearing serial number 244931DUP;

6) a 12-gauge caliber Browning shotgun (the “Browning”), bearing serial number 13324 S69; and

7) nine “M-Class” explosive devices

Layton was not found at either location during the execution of the search warrants. On or about Aug. 4, 2019, Layton was found at a residence in Marlton, New Jersey. At the time of his arrest, Layton was found in possession of approximately 200 grams of methamphetamine and an additional explosive device.
The conspiracy and the possession with intent to distribute methamphetamine counts are punishable by a mandatory minimum of 10 years in prison, a maximum of life in prison and a fine of $10 million; the possession of an unregistered firearm is punishable by a maximum of 10 years in prison and a fine of $10,000; and the charge of being a felon in possession of a firearm is punishable by a maximum of 10 years in prison and fine of $250,000.

Acting U.S. Attorney Honig credited special agents of the Drug Enforcement Administration (DEA), Camden Resident Office, under the direction of Special Agent in Charge Susan A. Gibson in Newark; the DEA Fort Smith Post of Duty under the supervision of Special Agent in Charge Brad Byerley, Arkansas; special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Acting Special Agent in Charge Toby C, Taylor, Newark Field Division; the New Jersey State Police, under the direction of Col. Patrick J. Callahan; the Burlington County Prosecutor’s Office, under the direction of Prosecutor Scott A. Coffina; and officers of the Arkansas State Police, under the direction of Chief William J. Bryant, with the investigation leading to today’s charges.

The government is represented by Assistant U.S. Attorney Michelle S. Gasparian of the Criminal Division in Trenton

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

Defense counsel: Brian P. Reilly, Assistant Federal Public Defender, Trenton

Baltimore, Maryland – Chief U.S. District Judge James K. Bredar sentenced Harshe Shende, age 57, of Hanover, Maryland, to 15 months in federal prison, followed by two years of supervised release, for willful failure to pay over employment taxes.  Chief Judge Bredar also found that Shende failed to pay to the IRS a total of $1,690,000 in federal employment and employer taxes and ordered Shende to pay restitution in that amount to the IRS.  Chief Judge Bredar imposed the sentence late on July 23, 2021.

The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner and Acting Special Agent in Charge Darrell J. Waldon of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.

According to his guilty plea, Shende was the sole owner and resident agent of Progressive Rehab Services, LLC, which employed physical and occupational therapists who went to nursing homes to render services to patients.  Shende was the sole signatory on two bank accounts he opened for the corporation at separate banks in 2008 and 2013, respectively.  Shende accrued large liabilities for Progressive Rehab by filing forms with the IRS which showed the amount of income tax withholding he collected from Progressive Rehab’s employees and their Medicare and Social Security withholding (collectively employment taxes) but by failing to pay the employment taxes to IRS.  Shende also failed to pay the employers’ portion of employment taxes to the IRS. The IRS pursued collection activities against Progressive Rehab.

As detailed in his plea agreement, on March 16, 2006, Shende and his then wife incorporated Progressive Health Group, Inc., (“Progressive Health”) in Maryland, with the stated purpose to provide rehab to nursing homes, hospitals, assistive living and home health.  Shende was listed as Executive Director on two bank accounts he opened for the corporation at separate banks in 2008 and 2012, respectively.  Shende listed the same address in Columbia, Maryland, for Progressive Health as he did for Progressive Rehab.

Shende admitted that he caused Progressive Rehab’s employees to perform the same work but billed for their work using the name Progressive Health and paid their salaries using Progressive Health’s bank account.   Progressive Health withheld payroll taxes from its employees’ paychecks, including federal income taxes, Medicare and social security (“FICA”) taxes.  As he did with Progressive Rehab, Shende filed forms with the IRS for Progressive Health showing the amount of employment taxes withheld.  However, as he did with Progressive Rehab, Shende willfully chose not to pay the taxes withheld from Progressive Health’s employees’ wages to the IRS, nor did he pay the employer’s portion of the employment taxes.

As a result, Shende failed to pay to the IRS a total of $155,838.15 in employment taxes withheld in tax years 2014 and 2015 and failed to pay the IRS a total of $103,066.85, which was the employer’s share of employment taxes for tax years 2014 and 2015. 

Acting United States Attorney Jonathan F. Lenzner commended the IRS-CI for its work in the investigation.  Mr. Lenzner thanked Assistant U.S. Attorney Joyce K. McDonald, who prosecuted the case.

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NEWARK, N.J. – A Newark man was sentenced today to 78 months in prison for his role in a carjacking in which a firearm was brandished, Acting U.S. Attorney Rachael Honig announced today.

Raquin Tanner, 25, of Newark, previously pleaded guilty by videoconference before U.S. District Judge Madeline Cox Arleo to one count of aiding and abetting the carjacking. Judge Arleo imposed the sentence today in Newark federal court. His co-defendant, Rakeem McNair, 21, of Roselle, New Jersey, also previously pleaded guilty to an information charging him with one count each of carjacking and brandishing a firearm in furtherance of the carjacking and is scheduled to be sentenced in November 2021.

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

On Aug. 13, 2019, the victim parked her car, which she used for her work as an Uber driver, on Summer Avenue in Newark. At approximately 11:00 p.m., the victim was sitting in the driver’s seat when three males approached her car. 

Video surveillance from the scene showed that Tanner walked with the other two males around the corner. As they neared the victim’s car, Tanner spoke to the other two, then went ahead of them, looked into the passenger seat of the car, and upon seeing the lone female driver, signaled the other two males to begin the carjacking.

One of the other males pointed a firearm through the driver’s side window, opened the door and attempted to physically remove the victim from the car. A struggle ensued, and McNair went around the car to aid his conspirator in dragging the victim from the car. McNair and the unidentified male threw the victim violently to the ground and drove away with the vehicle.

In addition to the prison term, Judge Arleo sentenced Tanner to three years of supervised release.

Acting U.S. Attorney Honig credited the Newark Police Department, under the direction of Public Safety Director Brian O’Hara; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II; and special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s sentencing.

The government is represented by Senior Litigation Counsel Robert Frazer of the Organized Crime and Gangs Unit in Newark.

Defense counsel:

Tanner: Joseph R. Rubino Esq., Union, New Jersey

McNair: Lisa Mack Esq., Assistant Federal Public Defender, Newark

SAN JUAN, Puerto Rico – United States Attorney W. Stephen Muldrow announces that on July 22, 2021, a federal jury convicted Jean Carlos Polaco-Hance of being a convicted felon in possession of a firearm and ammunition and of unlawful possessing a machinegun. He faces a sentence of up to 10 years of imprisonment.

According to court documents and evidence presented at trial, on September 10, 2020, in San Anton Ward, Carolina,  Jean Carlos Polaco-Hance, a convicted felon, unlawfully possessed a Glock pistol, model 32C, .357 caliber that had been modified so that it was capable of firing as a machine gun.

On that date, agents from the Puerto Rico Police Bureau, Carolina Intelligence Unit were traveling on Saint Just Street in Carolina in an unmarked vehicle.  As the officers passed in front of an auto-repair shop, they noted that Polaco-Hance was staring at the officer’s vehicle while reaching into a bag in what the officers recognized as a threating gesture reaching for a weapon. 

The officers returned to the auto-repair shop to investigate.  The officers dismounted the vehicle, announced themselves as police officers and approached Polaco-Hance. As the agents approached, Polaco-Hance ran from the officers and tossed a black bag over a fence.  The officers pursued him and eventually placed Polaco-Hance under arrest. The officers recovered the bag, which contained a Glock pistol, modified to fire in fully automatic mode.  In addition, the bag contained 5 magazines and a total of 111 rounds of .357 caliber, two cellphones and $640.00 US dollars. The officers contacted agents from the Federal Bureau of Investigations (FBI), who investigated the case and presented it to the United States Attorney’s Office for prosecution. 

The case was investigated by the PRPB, FBI and the Homeland Security Investigations (“HSI”) Computer Forensic Laboratory, which assisted in the investigation of the case.

The case was prosecuted by Assistant U.S. Attorney Jonathan Gottfried, Chief of the Violent Crimes and National Security Section and Assistant U.S. Attorney Carlos R. Cardona.

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NORFOLK, Va. – The former president of an escrow and title company was sentenced today to 18 months in prison for misappropriating $715,000 of closing funds in connection with 48 real estate transactions for which she served as the settlement agent.

According to court documents, Tammy Hamrin, formerly known as Tammy A. Cheek, 58, of Virginia Beach, was a licensed title and settlement agent and was the president, secretary, and treasurer of Preferred Escrow and Title, Inc. During 48 real estate transactions in January 2018, Hamrin misappropriated $715,000 of closing funds that had been deposited by various lenders and individual buyers into the company’s escrow account. She did so by making seven unauthorized wire transfers of funds from the escrow account to certain entities at the request of a person with whom Hamrin had an online personal relationship.

During this period, Hamrin partially replenished the funds that she had misappropriated by depositing approximately $199,000 of her own money into the escrow account, resulting in a remaining shortage of approximately $516,000. As a result, all 48 closings were affected. Among others, losses were sustained by sellers, buyers, business entities, financial institutions, various lienholders, municipal clerks of court and treasurer offices, and a title insurance company.

Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson.

Assistant U.S. Attorney Alan M. Salsbury 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. 2:21-cr-2.

Detroit, MI – The United States Attorney’s Office for the Eastern District of Michigan announced today that it has reached a settlement with Westborn Inc., owner and operators of Westborn Markets in Plymouth, Dearborn, Livonia, and Berkley, MI, to resolve an allegation that it improperly interrogated an individual with a disability accompanied by a service animal.  The investigation began after the US Attorney’s Office received a complaint through its Civil Rights Hotline from a man with a disability who uses a service animal who alleged that an Westborn employee demanded written proof that his dog was a service animal and was asked to leave the market when he refused. 

“People with disabilities who use service animals should not have to suffer through invasive questions or provide written documentation for their dogs in order to go grocery shopping or engage in other activities of daily living,” said Saima Mohsin, Acting U.S. Attorney for the Eastern District of Michigan. “If it is not obvious that a dog is a service animal, a store may ask only two questions: 1) Is the animal required because of a disability? and 2) What work or tasks has the animal been trained to perform? Anything beyond that is a violation of the Americans with Disabilities Act.”

Under the settlement agreement, Westborn Inc. will adopt a non-discrimination policy with specific service animal provisions, train all of its employees on the ADA, and prominently display in each store a notice indicating that service animals are welcome.

The ADA prohibits discrimination against people with disabilities by public accommodations, such as grocery stores and retail markets. Public accommodations must allow people with disabilities the full and equal enjoyment of their goods, services, and facilities, which includes making reasonable modifications of their policies, practices, and procedures to permit people with disabilities to be accompanied by service animals. 

The Civil Rights Unit of the U.S. Attorney’s Office for the Eastern District of Michigan was established in 2010 with the mission of prioritizing federal civil rights enforcement. For more information on the Office’s civil rights efforts, including a copy of settlement agreement with Westborn Inc., please visit https://www.justice.gov/usao-edmi/programs/civil-rights.  ADA complaints may be emailed to usamie.civilrights@usdoj.gov or by contacting the U.S. Attorney's Office’s Civil Rights Hotline at (313) 226-9151.

More information about the ADA is available at the Justice Department’s toll free ADA Information line at (800) 514 0301 or (800) 514 0383 (TTY) and on the ADA website at www.ada.gov. 

BOSTON – Two Nigerian nationals were indicted on Tuesday, July 20, 2021, in connection with their roles in expansive online fraud schemes targeting individuals in the United States, including romance scams and pandemic unemployment assistance fraud.

Osakpamwan Henry Omoruyi, 36, and Osaretin Godspower Omoruyi, 34, who previously resided in Canton, were each indicted on one count of conspiracy to commit bank and wire fraud, three counts of wire fraud and one count of engaging in unlawful monetary transactions. In March 2021, the defendants were charged by criminal complaint.

According to the charging documents, the defendants, along with other co-conspirators, allegedly participated in a series of romance and other online scams designed to defraud victims into sending money to accounts and debit cards they controlled. Romance scams occur when a criminal adopts a fake online identity to gain a victim’s affection and trust. The scammer then uses the illusion of a romantic or close relationship to manipulate and/or steal from the victim.

To carry out the schemes, the defendants allegedly used fake passports in the names of others to open numerous bank accounts and directed victims to send money to these accounts. They allegedly used the accounts to collect fraudulent pandemic unemployment benefits in the names of beneficiaries who did not apply for such benefits.

The charge of conspiracy to commit bank and wire fraud provides for a sentence of up to 30 years in prison, five years of supervised release, a fine of up to $1 million or twice the gross gain or loss, whichever is greater, and forfeiture. The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release, a fine of up to $250,000 or twice the gross gain or loss, whichever is greater, and forfeiture. The charge of unlawful monetary transactions provides for a sentence of up to 10 years in prison, three years of supervised release, a fine of $250,000, or twice the value of the criminally derived property, whichever is greater, and forfeiture. 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 R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Joshua McCallister, Acting Inspector in Charge of the U.S. Postal Inspection Service; and Jonathan Davidson, Special Agent in Charge of the U.S. Department of State’s Diplomatic Security Service made the announcement. Assistant U.S. Attorneys Sara Miron Bloom and Ian Stearns of Mendell’s Securities, Financial & Cyber Fraud Unit are prosecuting the case. 

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

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.

BOSTON – A Nigerian national residing in Boston has been charged and has agreed to plead guilty in connection with online fraud schemes.

Macpherson Osemwegie, 32, agreed to plead guilty to one count of conspiracy to commit bank and wire fraud. A plea hearing has not yet been scheduled by the court.

According to the charging document, Osemwegie allegedly conspired with others to participate in a series of romance and other online scams designed to defraud victims into sending money to accounts and debit cards that Osemwegie and others controlled. Romance scams occur when a criminal adopts a fake online identity to gain a victim’s affection and trust. The scammer then uses the illusion of a romantic or close relationship to manipulate and/or steal from the victim.

To carry out the schemes, Osemwegie and his co-conspirators used false foreign passports in others’ names to open numerous bank accounts, and in turn directed the victims to send money to these accounts. 

The charge of conspiracy to commit bank and wire fraud provides for a sentence of up to 30 years in prison, five years of supervised release, a fine of up to $1 million or twice the gross gain or loss, whichever is greater, restitution and forfeiture. 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 R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Joshua McCallister, Acting Inspector in Charge of the U.S. Postal Inspection Service; and Jonathan Davidson, Special Agent in Charge of the U.S. Department of State’s Diplomatic Security Service made the announcement. Assistant U.S. Attorneys Sara Miron Bloom and Ian Stearns of Mendell’s Securities, Financial & Cyber Fraud Unit are prosecuting the case. 

 On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

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

BOSTON – The owner of a firm that provided payroll and payroll tax services to small businesses in New England was sentenced on Thursday, July 22, 2021 for defrauding clients by diverting the funds her clients set aside for payroll taxes. 

Patricia Lindau, 65, of Newburg, Maine, was sentenced by U.S. District Court Judge Denise J. Casper to three years in prison and two years of supervised release. Lindau was also ordered to pay restitution of $1,422,122 and forfeiture of $1,121,292. On Feb. 24, 2021, Lindau pleaded guilty to one count of wire fraud and one count of tax evasion.

Between 2017 and the spring of 2020, Lindau engaged in a scheme to defraud many of her clients by failing to pay over to the Internal Revenue Service (IRS) and Massachusetts Department of Revenue (DOR) the payroll taxes that she withdrew from her clients’ bank accounts. Lindau used her access to her clients’ accounts to transfer funds that her clients intended to use to satisfy their payroll tax liabilities into her firm’s business checking account. Lindau then sent each client a weekly report falsely indicating that she had paid the funds over to the IRS and DOR.  

When Lindau’s clients received letters from the IRS and DOR indicating that their payroll taxes had not been paid, Lindau lied to the clients and falsely told them that the letters were a mistake and that she would take care of it. In some instances, she then paid the taxes late.

Lindau’s scheme continued into the first quarter of 2020 when most of her clients closed due to COVID-19 and then discovered that their employees’ payroll taxes had not been and were not being paid. 

Over the course of the scheme, Lindau failed to pay over when due more than $2 million and caused a net loss to her clients of over $1.1 million.  

Acting United States Attorney Nathaniel R. Mendell; Ramsey E. Covington, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation; and John Hayes, Director of the Criminal Investigations Bureau, Massachusetts Department of Revenue made the announcement today. Assistant U.S. Attorneys Sara Miron Bloom and Mackenzie Queenin of Mendell’s Securities, Financial & Cyber Fraud Unit prosecuted the case.