Assistant U. S. Attorneys C. Seth Askins (619) 546-6692 and Lyndzie M. Carter (619) 546-8780    

NEWS RELEASE SUMMARY– April 6, 2022

SAN DIEGO – Antonio Hurtado pleaded guilty in federal court today to charges stemming from a May 2, 2021, maritime smuggling incident in which three people aboard the vessel he was piloting died.    

In a hearing before U.S. Magistrate Judge William V. Gallo, Hurtado admitted that on the evening of May 1, 2021, and into the following morning, he piloted a vessel from Mexico into the United States. Aboard the vessel were 32 individuals who had agreed to pay between $15,000 and $18,000 each to be brought into the United States illegally, including three unaccompanied minors.

Hurtado admitted in his plea agreement that during the journey, he repeatedly used controlled substances, to the point that he lost consciousness on at least one occasion, and the vessel drove in circles for more than an hour until the other people on board were able to wake him. At approximately 6:00 a.m., the vessel suffered engine failure, and the defendant was unable to restart the engine. The weather conditions that morning were rainy with large ocean swells, and the vessel began to drift toward land until it ran aground approximately 50 yards from shore near the Point Loma tidepools.

As the boat was struck by waves and began to list on its side, the defendant jumped into the water and made his way to shore, abandoning the vessel and its 32 occupants. The vessel quickly broke apart from the pounding of the surf, sending the individuals on board – almost all of whom had been hiding below deck and in the cabin at the defendant’s direction – into the cold and rough water. Personnel with the National Park Service, along with many civilians who were in the area, immediately began trying to help, and various agencies immediately responded to conduct a massive rescue operation. Unfortunately, three of the individuals – identified as Mexican citizens Maricela Hernandez-Sanchez, Victor Perez-Degollado, and Maria Eugenia Chavez-Segovia – died as a result of this incident.

After he was identified as the pilot of the vessel, Hurtado was taken to a local hospital for treatment and then transported to the Imperial Beach Border Patrol Station for processing. Hurtado admitted that while there, he assaulted a Border Patrol agent by striking the agent in the head with his knee while the agent was attempting to apply an ankle restraint.

The trial was scheduled to begin on May 3, 2021, one year and one day from the date of the incident.  Instead, the defendant pleaded guilty to three counts of Attempted Bringing in Illegal Aliens Resulting in Death (each of which carries a maximum sentence of life in prison); three counts of Attempted Bringing in Illegal Aliens for Financial Gain (which carry a five-year mandatory minimum sentence); and one count of Assault on a Federal Officer. 

“This was a horrific tragedy that never should have happened,” said U.S. Attorney Randy Grossman. “Because of the incomprehensible and stunning recklessness of the defendant on that terrible day, three people died and many others had to be rescued from rough seas. The defendant’s boat was packed with way too many people, and he then repeatedly used illicit drugs to the point of losing consciousness. When the boat capsized and passengers were desperately trying to survive, the defendant swam to safety, leaving them all behind. It was a shocking and callous series of events. If not for the heroism of stunned witnesses who swung into action, and that of first responders, others would have died. I have said it many times, and I will say it again: Never trust a smuggler. They care only about money. They care nothing for your safety. It’s not worth risking your life.” Grossman thanked the prosecution team and all the private citizens and members of local and federal agencies who participated in life-saving efforts on that terrible day, and also those who investigated the case to achieve justice.

“Callous disregard for migrant safety is a common trait among smugglers,” said Brandon Tucker, Director of Air and Marine Operations in San Diego. “All too often, these dangerous decisions have fatal consequences.  I’ve made it my mission to go after the smugglers that put migrant lives at risk.”

“That unscrupulous smugglers put lives in danger to support their criminal activity is reprehensible,” said Chad Plantz, special agent in charge for HSI San Diego. “These deaths could have been prevented were it not for this individual concerned more for his own greed rather than the safety of others. HSI remains committed to working with our law enforcement partners, and utilizing our unique investigative authorities, to bring to justice those responsible for horrible tragedies like this.”

Hurtado is scheduled to be sentenced on July 1, 2022, at 9 a.m. before U.S. District Judge Janis L. Sammartino.

DEFENDANT                                               Case Number 21-cr-01615                           

Antonio Hurtado                                             Age: 40                       San Diego, CA

SUMMARY OF CHARGES

Attempted Bringing in Illegal Aliens Resulting in Death and Aiding and Abetting

Title 8, U.S.C., Section 1324(a)(1)(A)(i), (v)(II), and (a)(1)(B)(iv)

Maximum penalty: Life in prison and $250,000 fine

Attempted Bringing in Illegal Aliens for Financial Gain and Aiding and Abetting

            Title 8, U.S.C., Section 1324(a)(2)(B)(ii) and Title 18, U.S.C., Section 2

            Maximum penalty: Fifteen years in prison and $250,000 fine

Assault on a Federal Officer

            Title 8, U.S.C., Section 111(a)(1) and (b)

            Maximum penalty: Twenty years in prison and $250,000 fine

AGENCIES

Homeland Security Investigations

United States Border Patrol

Air and Marine Operations (CBP)

National Park Service

United States Coast Guard

San Diego Harbor Police Department

San Diego Fire-Rescue Department

San Diego Lifeguard Services

BOSTON – An Auburn man pleaded guilty today in federal court in Worcester to child pornography offenses.

Jesse Laino, 26, pleaded guilty to one count of distribution of child of child pornography and one count of possession of child pornography. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for Oct. 5, 2022. Laino was arrested and charged by criminal complaint in July 2020. He was subsequently indicted in September 2020 and later charged in a superseding indictment in June 2021.

In May 2019, Laino utilized the Kik platform to upload and distribute two images of sexually explicit images of minors. During a search of Laino’s residence in June 2020, two phones and one laptop were seized, which he admitted contained child pornography. Laino also admitted to using a cloud storage service to store and share links to images and videos of child pornography, as well as to using Chatous, a social media application, to connect with other users for the purpose of obtaining and distributing the images. Chatous records revealed that from about January 2019 to July 2020, Laino participated in hundreds of chats and distributed over 1,700 images of child pornography, including images of infants and toddlers being sexually abused.

The charge of distribution of child pornography provides for a sentence of at least five and up to 20 years in prison, at least five and up to a lifetime of supervised release and a fine of up to $250,000. The charge of possession of child pornography provides for a sentence of up to 20 years in prison, at least five years and up to a lifetime of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

United States Attorney Rachael S. Rollins; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston; Auburn Police Chief Andrew J. Sluckis, Jr.; and Worcester Police Chief Steven M. Sargent made the announcement. Assistant U.S. Attorney Kristen M. Noto of Rollins’ Criminal Division is prosecuting the case.

The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.

CORPUS CHRISTI, Texas – A federal jury in Corpus Christi has convicted  26-year-old local man for conspiring to distribute narcotics and possessing a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney Jennifer B. Lowery.

The jury deliberated for approximately two hours before convicting Jonathan Rodriguez, Corpus Christi, following a three-day trial. 

At trial, the jury heard that Rodriguez was a co-conspirator in a multi-person crack cocaine trafficking scheme. From 2016 to 2019, Rodriguez managed a Corpus Christi residence from where drugs were distributed.

In May 2019, law enforcement responded to reports of gunfire between rival drug dealers at the property. A search of the residence revealed various amounts of crack cocaine and meth.

The jury also heard that Rodriguez had maintained a commercial storage unit in Corpus Christi. A search of the unit revealed $1.26 million in U.S. currency, more than 600 grams of cocaine, 52 rifles, shotguns and pistols.

At trial, the defense attempted to convince the jury Rodriguez was merely a narcotics user, not a distributor and the evidence was insufficient. However, they saw video evidence of Rodriguez distributing narcotics within the house and surveillance footage at the commercial storage unit.

The jury did not believe defense claims and found him Rodriguez guilty as charged.  

U.S. District Judge Davis S. Morales presided over trial and set sentencing for June 29. At that time, Rodriguez faces up to life in federal prison and a possible $10 million maximum fine.

Rodriguez has been and will remain in custody pending that hearing.

The Drug Enforcement Administration conducted the investigation with the assistance of Corpus Christi Police Department. Assistant U.S. Attorneys John Marck and Dennis E. Robinson prosecuted the case.

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams, together with federal, state and local law enforcement officials, announced that six defendants were arrested and charged with federal carjacking and other violent crimes in connection with incidents that occurred in Philadelphia and its surrounding counties:

• Christopher Robinson, 20, of Philadelphia, PA, was charged by Criminal Complaint with (1) carjacking, (2) carrying and using a firearm during a crime of violence; in connection with three armed carjackings on December 9, 2021, January 5, 2022, and January 11, 2022, all in West Philadelphia.

The carjacking victims in these three separate incidents were caught off guard while on the phone sitting in their parked vehicles or filling their gas tank.

• Tarik Chambers, 19, and Nikeem LeachHilton, 21, both of Philadelphia, PA, were charged by Criminal Complaint with (1) carjacking, (2) carrying and using a firearm during a crime of violence; in connection a carjacking on December 19, 2021, in Delaware County.

The defendants allegedly used a privately-made “ghost” gun to carjack the victim in the rear parking lot of a retail store along Baltimore Pike in Springfield. The defendants fled from the police, leading officers on a high-speed car chase through Delaware County before crashing into another motorist’s car, who suffered severe, life-threatening injuries including broken bones and significant head trauma.

• Dayon Hackett, 19, of Philadelphia, PA, was charged by Indictment with (1) carjacking, (2) carrying and using a firearm during a crime of violence; in connection with an armed carjacking that occurred in the Bridesburg section of Northeast Philadelphia and a second armed carjacking and shooting in South Philadelphia, both of which occurred on December 22, 2021.

The second carjacking incident occurred while the victim was sitting in his parked car waiting for a parking space to open. The victim and two offenders exchanged gun fire and the victim sustained serious injuries including severed arteries, shattered bones, and bullets lodged near internal organs.

• Sean Allen, 23, of Camden, NJ, was charged by Indictment with (1) carjacking, (2) carrying and using a firearm during a crime of violence; in connection with two armed carjackings on January 4, 2022, and January 6, 2022, in Northeast Philadelphia.

The carjacking incidents occurred after victims posted their vehicles for sale on Facebook Marketplace and were contacted by an account claiming to have an interest in purchasing the vehicles.

• CameronStyles, 20, of Philadelphia, PA, was charged by Indictment with (1) carjacking, (2) carrying and using a firearm during a crime of violence; in connection with two carjackings on February 10 and February 11, 2022, in Northeast Philadelphia.

The carjacking incidents occurred while the first victim was waiting for a train, and while the second victim was parked at a gas station.

Additionally, and as previously announced, in February 2022, Alex Fernandez-Pena and Juan Jose Rodriguez were charged by Indictment with carjacking and brandishing a firearm during a crime of violence stemming from their alleged involvement in a carjacking incident of a rideshare vehicle earlier this year in the Parkside section of Philadelphia, during which the victim shot both defendants while they tried to flee. These arrests bring the total number of carjacking suspects taken into federal custody in the last several weeks in the Eastern District of Pennsylvania up to eight.

The swift action to investigate and federally charge these defendants is the result of the newly formed Philadelphia Carjacking Task Force, which is comprised of members of the U.S. Attorney’s Office Violent Crime Unit; the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Philadelphia Police Department. The goal of the Taskforce is to stem the wave of armed carjackings and violent crimes through investigative and enforcement techniques meant to identify and refer for federal prosecution all who terrorize innocent victims through commission of these offenses within Philadelphia and surrounding areas.

“It has been nearly a year since we launched our ‘All Hands On Deck’ initiative, and in that year our Office and our federal partners have doggedly pursued every opportunity to support the Philadelphia Police Department, which now includes the recently-created joint carjacking task force,” said U.S. Attorney Williams.“I have said repeatedly that if you commit a violent offense like a carjacking at gunpoint, federal authorities are coming for you. In just weeks we have arrested and charged eight people, and there’s much more to come.”

“The rash of carjackings we’ve seen in and around Philadelphia is unacceptable,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division.“That’s why this task force is united in our efforts to find those responsible and get them off the street. The potential penalties for federal carjacking charges are severe, so if people want to keep committing these crimes, they should know that the carjacking task force will make it a priority to put them in cuffs and behind bars for a good long time. We simply won’t stand for criminals terrorizing innocent people like this.”

“These indictments exemplify the strength of our newly established carjacking task force,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division.“Over the past year we have witnessed a spike in carjackings throughout the Commonwealth, and the announcement of these indictments should send a clear message to those who are thinking about committing violent acts.  The public should know we are working closely together with our local, state, and federal partners to seek justice for those responsible for these types of crimes.”

“There are far too many in this city who think that they can commit violent crimes with impunity, and that law enforcement will sit idly by while our communities are traumatized,” said Philadelphia Police Commissioner Danielle Outlaw.“These latest arrests prove yet again that criminal behavior will not be tolerated, and sends the message that if you’re doing wrong, if you’re engaging in illegal activities, the PPD along with our local, state, and federal law enforcement agencies will find you, arrest you, and you will be charged to the fullest extent of the law.”

“Carjackings are dangerous, violent acts that strike fear into our communities and threaten public safety,” said Pennsylvania Attorney General Josh Shapiro.“We will continue to share available intel to collaborate with our law enforcement partners so we can use every resource available to hold individuals who commit these crimes accountable. I’m thankful for the hard work of the agents in our office, as well as our local, state, and federal partners in this important task force.”

If convicted, each defendant faces a maximum possible sentence of life in prison, as well as a mandatory minimum sentence of seven years in prison.

These cases were investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Federal Bureau of Investigation; and the Philadelphia Police Department; with assistance from the Pennsylvania Office of Attorney General; and are being prosecuted by Assistant United States Attorneys Kelly Fallenstein, Justin Oshana, Robert Eckert, Jeanette Kang, Michael Miller and Special Assistant United States Attorneys Sandy Urban and Tracie Gaydos.

An indictment, information, or criminal complaint is an accusation.  A defendant is presumed innocent unless and until proven guilty.

WHEELING, WEST VIRGINIA – Myron Henderson, of Euclid, Ohio, was sentenced today to 110 months of incarceration for a drug charge, United States Attorney William Ihlenfeld announced.

Henderson, also known as “Charlie,” age 41, pleaded guilty in November 2021 to one count of “Distribution of Methamphetamine within 1000 feet of a Protected Location.” Henderson admitted to selling methamphetamine near North Park Apartments in June 2019 in Ohio County.

Assistant U.S. Attorney Shawn M. Adkins prosecuted the case on behalf of the government. The Ohio Valley Drug Task Force, a HIDTA-funded initiative, which includes the Drug Enforcement Administration, West Virginia State Police, the Ohio County Sheriff’s Office, and the Wheeling Police Department, investigated. The Belmont County Sheriff’s Office and the St. Clairsville Police Department assisted.

U.S. District Judge John Preston Bailey presided.

Jacksonville, Florida – United States District Judge Timothy J. Corrigan has sentenced Samuel Maldonado (48, New York City) to 5 years and 10 months in federal prison for failing to register as a convicted sex offender after absconding from parole in New York and moving to Jacksonville. Maldonado was also ordered to serve a 10-year term of supervised release. Maldonado has been in custody since his arrest on December 15, 2016, in New York City. He had pleaded guilty on February 24, 2022.         

According to court documents and information provided in open court, in 2009, Maldonado was convicted in New York of sexual misconduct with a 16-year-old child. In 2011, Maldonado was convicted in New York of first-degree sexual abuse of a 14-year-old child. After being released from prison in New York in 2014, Maldonado was placed on parole. At that time, he was advised of his ongoing duty to register as a sex offender and signed documentation acknowledging that he understood his obligation to do so, including if he relocated to another state.

On March 4, 2016, authorities in New York issued a warrant for Maldonado's arrest for violating his parole by failing to check in with his parole officer. In January 2016, Maldonado had absconded from supervision, left New York, and moved to Jacksonville. After establishing residence in Florida, he knowingly failed to register as a sex offender as required by both federal and Florida law.

On August 8, 2016, Maldonado was arrested in Jacksonville on a warrant based on his New York parole violation and was extradited back to New York. On December 15, 2016, Maldonado was arrested by the U.S. Marshals Service in New York City on a warrant issued by a Florida state court. During an interview, Maldonado admitted that he had several criminal convictions, including his two prior child sexual offense convictions. He also acknowledged that he did not inform his parole officer that he was moving to Florida, and further that he did not register as a sex offender in the state of Florida.  

On April 5, 2018, Maldonado was convicted in Florida state court of the lewd or lascivious molestation of a minor child based on conduct that had occurred in July and August 2016 in Jacksonville.  

This case was investigated by the U.S. Marshals Service in New York City and Jacksonville, the Jacksonville Sheriff’s Office, and the Florida Department of Law Enforcement. It was prosecuted by Assistant United States Attorney D. Rodney Brown.

The Sex Offender Registration and Notification Act (SORNA) is part of the Adam Walsh Child Protection and Safety Act of 2006. The Adam Walsh Act also provides for the use of federal law enforcement resources, including the United States Marshals Service, to assist state and local authorities in investigating, locating, apprehending, and prosecuting non-compliant sex offenders who fail to register as required by SORNA.

This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.

Tampa, FL — A woman in Florida pleaded guilty today to a federal racketeering conspiracy that victimized Mexican agricultural workers admitted into the United States under the H-2A temporary visa program. Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division and U.S. Attorney Roger B. Handberg for the Middle District of Florida made the announcement.

According to the plea agreement, Christina Gamez, 43, from March 2016 through August 2017, while working as a bookkeeper, manager, and supervisor for Los Villatoros Harvesting (LVH), a labor contracting company employing Mexican H-2A workers harvesting fruits and vegetables in Florida, Kentucky, Indiana, Georgia and North Carolina, conspired with LVH’s owner and others to commit racketeering offenses, including subjecting LVH’s H-2A workers to forced labor, harboring LVH’s H-2A workers in the United States after their visas had expired for financial gain, and committing visa fraud and fraud in foreign labor contracting. Gamez admitted that she and her co-conspirators used coercive means to obtain thousands of hours of physically demanding agricultural labor from the victimized H-2A workers, all for de minimis pay. The coercive means used included confiscating the workers’ passports; subjecting the workers to crowded, unsanitary and degrading living conditions; isolating the workers and limiting their ability to interact with anyone other than LVH employees; and subjecting the workers to debt manipulation. Gamez also admitted that, while working for LVH, she knowingly prepared and sent falsified records to federal investigators to conceal aspects of the criminal enterprise.

A date for Gamez’s sentencing hearing has not yet been set. Gamez faces a maximum penalty of 20 years in federal prison and a fine of up to $250,000. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. As part of her plea agreement, Gamez has agreed to pay more than $9,000 in restitution to the victims. 

This case was investigated by the Palm Beach County Human Trafficking Task Force (including the FBI, Homeland Security Investigations and the Palm Beach County Sheriff's Office), with assistance from the Department of Labor Office of the Inspector General and the Department of State Diplomatic Security Service. Assistant U.S. Attorney Frank Murray for the Middle District of Florida and Trial Attorneys Avner Shapiro, Maryam Zhuravitsky and Matthew Thiman of the Justice Department’s Civil Rights Division are prosecuting the case.

WASHINGTON – BayCare Health System Inc. and entities that operate four affiliated Florida hospitals (collectively BayCare) have agreed to pay the United States $20 million to resolve allegations that BayCare violated the False Claims Act by making donations to the Juvenile Welfare Board of Pinellas County (JWB) to improperly fund the state’s share of Medicaid payments to BayCare. The four hospitals are Morton Plant Hospital, Mease Countryside Hospital, Mease Dunedin Hospital and St. Anthony’s Hospital.

The Florida Medicaid program provides medical assistance to low-income individuals and individuals with disabilities, and is jointly funded by the federal and state governments. Under federal law, Florida’s share of Medicaid payments must consist of state or local government funds, and not “non-bona fide donations” from private health care providers, such as hospitals. A non-bona fide donation is a payment — in cash or in kind — from a private provider to a governmental entity that is then returned to the private provider as the state share of Medicaid. The private provider’s donation triggers a corresponding federal expenditure for the federal share of Medicaid, which is also paid to the private provider. This unlawful conduct causes federal expenditures to increase without any corresponding increase in state expenditures, since the state share of the Medicaid payments to the provider comes from and is returned to the provider. The prohibition of this practice ensures that states are in fact paying a share of Medicaid payments and thus have an incentive to curb Medicaid costs and prevent unnecessary services.  

The United States alleged that between October 2013 and September 2015, BayCare knowingly caused false claims for federal Medicaid matching funds to be submitted to the United States. Specifically, the United States alleged that during this time, BayCare made improper, non-bona fide cash donations to JWB knowing that JWB would and then did transfer a portion of the cash donations to the State of Florida’s Agency for Health Care Administration for Florida’s Medicaid Program. The funds transferred by JWB to the state were “matched” by the federal government before being returned to the BayCare hospitals as Medicaid payments, and BayCare was thus able to recoup its original donations to JWB and also receive federal matching funds, in violation of the federal prohibition on non-bona fide donations. BayCare’s donations to JWB increased Medicaid payments received by BayCare, without any actual expenditure of state or local funds.

“Medicaid is a partnership between the federal government and state governments,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “When the federal government provides Medicaid matching funds, there must be a corresponding expenditure by the state, or a local unit of government. When private parties make unlawful, non-bona fide donations to state or local governments, they undermine a key safeguard for ensuring the integrity of the Medicaid program.”

“Millions of Floridians depend on the Medicaid Program for medical care and related services,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “Our office is committed to protecting the integrity of the Medicaid Program, and we will use all available civil remedies to recover the ill-gotten gains obtained by those who defraud it and other government health care programs.” 

“When health care providers participate in fraud schemes to boost federal payments, they do so at the expense of federal health care programs,” said Special Agent in Charge Omar Pérez Aybar of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “Our agents will continue to coordinate with our law enforcement partners to root out health care fraud and hold bad actors accountable for their actions.”

The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Larry Bomar, a former hospital reimbursement manager in Florida. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned United States ex rel. Bomar v. Bayfront HMA Medical Center LLC, et al., Civil Action No. 8:16-cv-03310-MSS-JSS (M.D Fla.). Mr. Bomar will receive $5 million as his share of the settlement.

The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the Middle District of Florida, with assistance from HHS-OIG.

The investigation and resolution of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).

The matter was handled by Civil Division Fraud Section Attorneys Alison B. Rousseau and Jonathan T. Thrope and Assistant U.S. Attorney Carolyn B. Tapie for the Middle District of Florida.

The claims resolved by the settlement are allegations only and there has been no determination of liability.

INDIANAPOLIS – Rodney Varela, 38, of Columbus, Indiana, was sentenced late yesterday to twenty years in federal prison after pleading guilty to possession with the intent to distribute methamphetamine and carrying a firearm during and in relation to a drug trafficking crime.

According to court documents, on March 10, 2020, Varela was found to be in possession of approximately 135 grams of methamphetamine and a loaded pistol while driving his vehicle.  After further investigation, law enforcement officers executed a search warrant at Varela’s residence where agents seized approximately 700 grams of pure methamphetamine and five additional firearms.

Varela has numerous prior felony convictions in California and Indiana and is prohibited from possessing a firearm. He was also on parole at the time of the offense.

Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, Matthew A. Myers, Sheriff of Bartholomew County, and Michael Gannon, Assistant Special Agent in Charge of the Drug Enforcement Administrationmade the announcement.

The Bartholomew County Sheriff’s Office and Drug Enforcement Administration investigated the case. The sentence was imposed by U.S. District Judge Richard L. Young. As part of the sentence, Judge Young ordered that the defendant be supervised by the U.S. Probation Office for five years following his release from federal prison.

U.S. Attorney Myers thanked Assistant U.S. Attorney Pamela S. Domash who prosecuted this case.

INDIANAPOLIS – Rodney Varela, 38, of Columbus, Indiana, was sentenced late yesterday to twenty years in federal prison after pleading guilty to possession with the intent to distribute methamphetamine and carrying a firearm during and in relation to a drug trafficking crime.

According to court documents, on March 10, 2020, Varela was found to be in possession of approximately 135 grams of methamphetamine and a loaded pistol while driving his vehicle.  After further investigation, law enforcement officers executed a search warrant at Varela’s residence where agents seized approximately 700 grams of pure methamphetamine and five additional firearms.

Varela has numerous prior felony convictions in California and Indiana and is prohibited from possessing a firearm. He was also on parole at the time of the offense.

Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, Matthew A. Myers, Sheriff of Bartholomew County, and Michael Gannon, Assistant Special Agent in Charge of the Drug Enforcement Administrationmade the announcement.

The Bartholomew County Sheriff’s Office and Drug Enforcement Administration investigated the case. The sentence was imposed by U.S. District Judge Richard L. Young. As part of the sentence, Judge Young ordered that the defendant be supervised by the U.S. Probation Office for five years following his release from federal prison.

U.S. Attorney Myers thanked Assistant U.S. Attorney Pamela S. Domash who prosecuted this case.

BIRMINGHAM, Ala. – A Bessemer man was convicted Tuesday on drug and gun charges, announced U.S. Attorney Prim F. Escalona and Federal Bureau of Investigation Special Agent in Charge Johnnie Sharp, Jr.

After two days of testimony, United States District Court Judge Karon O. Bowdre returned a guilty verdict against Christopher James Moton, 42, at a bench trial. Moton was convicted of possession with intent to distribute methamphetamine and heroin and possession of a firearm by a felon.

According to court documents and evidence presented at trial, Moton was found in possession of a firearm despite being a prohibited felon. A search conducted at Moton’s residence found trafficking amounts of methamphetamine and black tar heroin. Evidence at trial revealed that Moton intended to distribute these controlled substances to drug users in the community.

“Yesterday’s verdict is another success in law enforcement’s efforts to eliminate the distribution of dangerous drugs in our communities and remove firearms from the hands of convicted felons,”  U.S. Attorney Escalona said.  “We will continue to work with our law enforcement partners to investigate and prosecute those who intend to devastate our communities and ruin lives.”

“This conviction was an outstanding example of law enforcement partnerships working together to remove dangerous criminals from our neighborhoods,” SAC Sharp said.  “Thanks to the great work of my agents and the Jefferson County Sheriff’s Office, Moton has been held responsible for his crime.”

The maximum penalty for possession of a firearm by a convicted felon is 10 years. The maximum penalty for possession with intent to distribute more than 50 grams of methamphetamine is life in prison.

The Federal Bureau of Investigation investigated the case along with the Jefferson County Sheriff’s Office.  Assistant U.S. Attorneys Gregory R. Dimler and Allison J. Garnett are prosecuting the case. 

CHARLESTON, SOUTH CAROLINA - George Junior Hall, 50, an inmate in the federal Bureau of Prisons, has been sentenced to 120 months in federal prison after a federal jury found him guilty in November 2021 of assault with a dangerous weapon with intent to cause injury and assault resulting in serious injuries.

At the time of the offense, Hall was an inmate finishing a sentence at the Federal Correctional Institution in Estill, South Carolina. Evidence presented to the jury, including graphic video footage, showed Hall attacking another inmate from behind with a prison weapon known as a “lock-in-a-sock,” a nylon belt attached to a metal combination lock slipped inside of a sock. Hall struck the victim in the back of the head and knocked him to the ground, then stood over him beating him repeatedly with the weapon until he fled. Prison officials found the victim bleeding in his cell after following a trail of blood from the scene of the attack. The victim survived but was hospitalized with numerous lacerations, a fractured skull, and a subarachnoid hemorrhage, and he suffered temporary hearing loss and permanent scarring.

Hall has a long history of violence, including a 1993 Florida conviction for aggravated battery arising from an incident where he shot his own brother. At the time of the prison assault, Hall was serving a twenty-year sentence on federal convictions for attempted murder and assault on a United States Postal carrier arising from a 1996 incident where he shot a mail carrier while attempting to steal welfare checks. Disciplinary records presented to the Court showed that Hall continued this pattern of violence while incarcerated, assaulting a cellmate with hot grits, striking a prison guard with a lock-in-a-sock, and trying to smother another inmate with a mattress, beating him, and biting off a part of his ear.

United States District Judge Richard M. Gergel granted the Government’s motion for an “upward departure,” increasing the sentencing guidelines to account for Hall’s history of violence while incarcerated. The Court observed that “[t]he record firmly establishes a persistent pattern of extreme violence over the entirety of [Hall’s] adult life.”

The case was investigated by the FBI with assistance from the United States Bureau of Prisons. Former Acting United States Attorney Rhett DeHart and Assistant United States Attorney Chris Schoen tried the case on behalf of the United States.

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WILMINGTON, Del. – David C. Weiss, U.S. Attorney for the District of Delaware, announced that a Wilmington man was sentenced yesterday to 11 years in prison for possessing a firearm in furtherance of drug trafficking. U.S. District Judge Leonard P. Stark pronounced the sentence.  This was Jackson’s third firearms conviction.

According to court documents, on September 17, 2020, Javon Jackson, 26, was arrested by the Wilmington Police Department (“WPD”). At the time, Jackson was wanted for cutting off his ankle bracelet and absconding from Delaware Probation and Parole’s supervision for a prior assault conviction.  Jackson was sitting in the driver’s seat of a parked car when WPD officers found him.  Jackson got out of the car and ran from the police. Inside the car, WPD officers found a fully loaded semi-automatic pistol and 455 baggies of heroin.

U.S. Attorney Weiss stated, “Illegally possessing a firearm while dealing dangerous drugs perpetuates both violent crime and drug addiction, each of which threatens the health, safety, and vitality of our neighborhoods. Together with our law enforcement partners, we will continue to work diligently to keep our communities safe.”

“It is a threat to the community any time someone prohibited from possession a firearm finds a way to obtain one, but this defendant’s actions put the community at even greater risk. Not only was he wanted for violating parole for a previous violent conviction, he was caught by police selling drugs while possessing a loaded firearm,” said ATF Special Agent in Charge Toni M. Crosby.  “Law-abiding citizens deserve to the chance to thrive in stable communities. ATF and our law enforcement partners will continue work relentlessly to identify those individuals who threaten the safety of those communities.”

Assistant U.S. Attorney Edmond Falgowski prosecuted the case, which was investigated by the Wilmington Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. 

A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 21-cr-38.

Miami, Florida - A Florida man was sentenced today in the Southern District of Florida to 200 months in prison for illegally distributing opioids at his pain management clinic in Miami.

Habib Geagea Palacios, 40, of Miami, owned General Care Center Inc., a cash-only pain management clinic. At General Care, Palacios paid doctors to prescribe opioids to nearly all patients who visited the clinic, resulting in the illegal distribution of more than three million oxycodone pills and generating $9 million in cash. Seven doctors who worked at General Care have been charged in connection with their unlawful prescribing practices at the clinic, and six have pleaded guilty to date.    

Palacios pleaded guilty on Nov. 9, 2021, to one count of conspiracy to distribute a controlled substance and one count of distributing a controlled substance. In addition to the term of imprisonment, Palacios was sentenced to serve three years of supervised release. 

U.S. Attorney Juan Antonio Gonzalez of the Southern District of Florida; Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; Special Agent in Charge Omar Pérez Aybar of the Department of Health and Human Services, Office of the Inspector General (HHS-OIG), Miami Regional Office; Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division; Special Agent in Charge George L. Piro of the FBI’s Miami Field Office; Special Agent in Charge Deanne L. Reuter of the DEA’s Miami Field Office; and Special Agent in Charge Brian Swain of the U.S. Secret Service (USSS), Miami Field Office, made the announcement.

HHS-OIG, FBI, DEA, and USSS investigated the case.

Assistant U.S. Attorney Kevin J. Larsen for the Southern District of Florida and Trial Attorney Alexander Thor Pogozelski of the Criminal Division’s Fraud Section  prosecuted the case.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.

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PITTSBURGH, PA – A resident of Houston, Texas, pleaded guilty in federal court to violating federal narcotics laws related to a nine-month Title III wiretap investigation into drug trafficking in and around the counties of Jefferson, Clearfield, and Allegheny, United States Attorney Cindy Chung announced today.

Adrian Alvarez, age 28, pleaded guilty to one count of conspiracy and one count of possession with intent to distribute five kilograms or more of cocaine before United States District

Judge Christy Criswell Wiegand. Alvarez was one of 47 defendants charged in six related indictments as part of the Return to Sender investigation.

In connection with the guilty plea, the court was advised that on October 22, 2020, Alvarez and three other individuals chartered a private plane and transported six kilograms of cocaine from Houston to Pittsburgh International Airport. Investigators obtained a search warrant for the plane and seized the cocaine from two pieces of luggage.

Judge Wiegand scheduled sentencing for August 23, 2022, at 10:00 a.m. The law provides for a maximum total sentence of not less than 10 years to a maximum of life in prison, a fine not to exceed $10,000,000, 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, if any, of the defendant.

Pending sentencing, the court continued the defendant on bond.

Assistant United States Attorneys Jonathan D. Lusty and Michael R. Ball are prosecuting this case on behalf of the government.

The Drug Enforcement Administration led the multi-agency investigation of this case, which also included the Homeland Security Investigations, United States Postal Service – Office of Inspector General, United States Postal Inspection Service, Internal Revenue Services, Pittsburgh Bureau of Police, Allegheny County Police, and Pennsylvania State Police. Also assisting were the Jefferson County District Attorney’s Office, Clearfield County District Attorney’s Office, and the Clarion Borough Police Department.

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.

National Crime Victims’ Rights Week (NCVRW) will be observed April 24–30, 2022. NCVRW is an opportunity to celebrate and acknowledge the hard and dedicated work of victim advocates, as well as to promote victims’ rights and services. The U.S. Attorney’s Office for the District of Vermont in partnership with the Center for Crime Victim Services will host a virtual commemoration of NCVRW on April 29, 2022. The themes for NCVRW this year are rights, access, and equity for all victims. These priorities underscore the importance of helping crime survivors by:

•    enforcing victims’ rights,
•    expanding access to services, and
•    ensuring equity and inclusion for all.

The speakers at this year’s event will focus on the importance of inclusion and equity in all aspects of victim services. The agenda for the event is as follows:

•    Welcome: Jennifer Poehlmann, Executive Director, Vermont Center for Crime Victim Services
•    Opening Remarks: Nikolas P. Kerest, United States Attorney, District of Vermont
•    Introduction of Keynote Speaker: Major Ingrid Jonas (retired) of Vermont State Police 
•    Keynote Address: Dr. Etan L.J. Nasreddin-Longo, Co-Director, Fair and Impartial Policing and Community Affairs, Vermont State Police, and Equity Advisor, Department of Public Safety, will present “The Perils of Cultural Competency.”
•    Raffle: The victim advocates who participate in the day’s events will be eligible for entrance in a raffle full of incredible prizes as a gesture of appreciation for their invaluable work. 
•    Crime Victim Service Award Ceremony: Victim service professionals will be celebrated for their achievements.

To register for this event, click: https://us06web.zoom.us/meeting/register/tZAqcOyprj8jEtCUtYHRHyfYrnFV-YKTwgCv

For additional information about this year’s NCVRW event please contact Aimee.Stearns@usdoj.gov.

NEW BERN, N.C. – A Rocky Mount man was sentenced today to 52 months in prison for possessing a handgun as a convicted felon.  On November 16, 2021, Raekwon Laderek Briggs pled guilty to the charges.

According to court documents and other information presented in court, Raekwon Briggs, 26, possessed two handguns during a high-speed chase in Edgecombe County.  On March 21, 2019, a deputy pulled Briggs over for an expired registration. Briggs stopped his car and then accelerated when the deputy opened the door to his patrol car.  Several law enforcement officers pursued Briggs.  During the chase, Briggs sped through two school zones, ran a stoplight, and crossed the center line into oncoming traffic several times, which forced one car off the road.  Briggs eventually stopped, and deputies observed two handguns on the dashboard.  Both firearms were loaded with 28 rounds each.  After his arrest, Briggs told the deputies that he knew the firearms were in the vehicle.  Briggs also said he would have ended the chase in a shootout if Rocky Mount police officers had been involved in the chase.

Briggs had previously been convicted of several felonies, including robbery with a dangerous weapon and attempted possession of a firearm as a felon.  Briggs was also validated by the North Carolina Department of Public Safety as a member of the Bloods street gang. 

Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Edgecombe County Sheriff’s Office, the Nash County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case and Assistant U.S. Attorney John Parris  prosecuted 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. 4:20-CR-00010-FL.

PROVIDENCE, RI – A Dominican national living in Providence faces sentencing in U.S. District Court and deportation proceedings after pleading guilty today to drug trafficking, firearm, and illegal reentry charges, announced United States Attorney Zachary A. Cunha.

Stevens Morales-Rivera, 46, who previously identified himself using several aliases, pleaded guilty to possession of cocaine with the intent to distribute, possession of a firearm by a prohibited person, and illegally re-entry of a removed alien.

According to charging documents, in August 2021, a Newport Police Department Detective and other members of the Rhode Island DEA Drug Task Force began a Project Safe Neighborhoods investigation into Morales-Rivera’s drug trafficking activities. The investigation included several DEA supervised purchases of cocaine from the defendant.

On October 19, 2021, members of the DEA Task Force conducted a court-authorized search of Morales-Rivera’s residence and seized six kilograms of cocaine, a .25 caliber semiautomatic pistol, a kilogram-press, $8,995 in cash, and various items used in the preparation and distribution of narcotics.

According to information presented to the court, at the time of his arrest, Morales-Rivera was found to have fingerprints on file with law enforcement under a different name; he had criminal records under two names, including a conviction in Massachusetts for trafficking cocaine; and he had been deported and re-entered the United States illegally.

Morales-Rivera, detained since his arrest in October 2021, is scheduled to be sentenced by U.S. District Court Judge Mary S. McElroy on June 23, 2022. The defendant’s sentence will be determined by a federal district judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.

The case is being prosecuted by Assistant U.S. Attorney G. Michael Seaman.

The Rhode Island DEA Drug Task Force is comprised of personnel from the DEA; United States Postal Service Office of Inspector General; Rhode Island Attorney General’s Office Bureau of Criminal Identification and Investigation; Rhode Island State Police; the East Providence, Cranston, Coventry, Newport, North Kingstown, Pawtucket, Providence, South Kingstown, Warwick, West Warwick, and Woonsocket Police Departments; and Amtrak Police Department.

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

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Memphis, TN- Kalonji Warren, 26, has been sentenced to 70 months in federal prison for a carjacking. Joseph C. Murphy, Jr., United States Attorney, announced the sentence today.

According to information presented in court, on July 17, 2019, the victim was seated inside his vehicle at the Pump and Munch gas station on East Shelby Drive in Memphis, TN. Kristopher Harris and Kalonji Warren drove Warren’s tan Jeep SUV to the gas station and pulled alongside the victim's vehicle.

Harris pointed a semi-automatic handgun at the victim, firing one shot into the front passenger-side window of the vehicle. After the victim fled, Warren entered the victim's vehicle and drove away. One shell casing left at the scene was collected as evidence.

Video surveillance captured the suspect’s vehicle in the area and showed Warren enter the gas station prior to the carjacking. Part of the carjacking incident was also captured on video surveillance. During the investigation Kristopher Harris was positively identified.

Kristopher Harris and Kalonji Warren pled guilty to the carjacking charge on October 22, 2021.

On January 21, 2022, United States District Judge Thomas L. Parker sentenced Warren to 70 months in federal prison to be followed by three years’ supervised release. On April 1, 2022, United States District Judge Thomas L. Parker sentenced Harris to 97 months imprisonment and two years’ supervised release.

The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) investigated this case.

Assistant United States Attorneys Wendy K. Cornejo and Gregory A. Wagner prosecuted this case on behalf of the government.

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JOHNSTOWN, Pa. – A former resident of North Carolina has been sentenced in federal court to a total of 70 months’ in prison followed by 3 years of supervised release on his conviction of theft from a federal firearms licensee, United States Attorney Cindy K. Chung announced today.

Senior United States District Judge Kim R. Gibson imposed the sentence on David R. Shahriari, a/k/a ‘David Anderson,” 39, of North Carolina.

In connection with the guilty plea, on August 29, 2011, Shahriari did knowingly steal and unlawfully take, eight firearms from L.B. Toney’s Alamo Gun Shop in DuBois, PA, which is a business licensed to deal in firearms.

Assistant United States Attorney Arnold P. Bernard, Jr. prosecuted this case on behalf of the government.

Ms. Chung commended the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Pennsylvania State Police, and the DuBois City Police for the investigation that led to the successful prosecution of Shahriari.

TRENTON, N.J. – A Monmouth County, New Jersey, man today admitted defrauding lenders of approximately $50 million dollars in connection with an invoice factoring scheme perpetrated over nearly a decade, U.S. Attorney Philip R. Sellinger announced.

Vincent Galano, 59, of Oceanport, New Jersey, pleaded guilty by videoconference before U.S. District Judge Zahid N. Quraishi to an information charging him with one count of wire fraud.

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

Accounts receivable factoring (factoring), also known as invoice financing, is a financial transaction through which a company obtains cash by selling its unpaid invoices, ordinarily at a discount, to a factor. Factoring clients send their debtors notices of assignment naming the factor as the assignee of the debt owed on the invoices. The factor, in turn, collects invoiced amounts owed by the clients’ debtors and, upon collection of the entire invoiced amount, pays its clients the balance of the invoice, deducting the factor’s fees.

Galano formed Prime Financial Funding LLC (PF Funding) in 1996 for the purpose of factoring accounts receivables for various corporate clients. In 2007, PF Funding entered into a secured lending relationship with a single-purpose entity created to finance PF Funding’s factoring business.  Shortly thereafter, the factoring lender established a line of credit as a means to provide PF Funding capital to grow its receivables portfolio. Over the next several years, PF Funding grew its factoring business by drawing from the line of credit while maintaining as current its loan obligations to the factoring lender. However, beginning in 2011, Galano, through PF Funding, purchased increasingly greater numbers of invoices for which he was unable to collect the debt owed on the receivables. To justify PF Funding’s continued draws from the line of credit, Galano concealed this bad debt from the factoring lender by misrepresenting the bad invoices as collectible on reports he routinely provided to the factoring lender. In other instances, Galano mischaracterized invoices that had already been paid and collected as outstanding and capable of being factored, in essence double-counting to drive up the outstanding receivables. In the reports provided to the factoring lender, Galano manipulated the overall value of PF Funding’s portfolio of outstanding invoices in an amount proportional to the funds he needed to draw from the unsecured line of credit to maintain as current the principal and interest payments on his outstanding loans.   

Engaging in this pattern of misrepresentation over nearly a decade, by 2020 PF Funding had ultimately defaulted under its loan obligations, owing approximately $50 million to its lenders by virtue of the scheme. During a May 2020 telephone call with his lenders, Galano admitted that he had concealed significant losses suffered by PF Funding over many years. He further admitted that he had routinely distributed to lenders over that prolonged period fabricated reports that overstated the number and value of outstanding invoices which the reports represented as payable.   

The wire fraud charge to which Galano pleaded guilty carries a maximum penalty of 20 years in prison and a fine of $250,000, or twice the gross pecuniary gain/loss from the scheme, whichever is greatest. Sentencing is scheduled for July 14, 2022. 

U.S. Attorney Sellinger credited 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 guilty plea.

The government is represented by Assistant U.S. Attorney Eric A. Boden of the U.S. Attorney’s Office’s Criminal Division in Trenton.