A man who illegally possessed a firearm and a high-capacity magazine was sentenced on July 20, 2022, in federal court in Cedar Rapids, Iowa.  Dennis Earl Williams, Jr., age 32, from Chicago, Illinois, pled guilty on January 13, 2022, to being an unlawful drug user in possession of a firearm.

Evidence in the record showed that Williams was traveling through Dubuque, Iowa, with a loaded Glock, Model 19, 9mm caliber pistol along with a 50‑round drum magazine.  Williams had marijuana in his system during the same time frame. 

Sentencing was held before United States District Court Judge C.J. Williams.  Williams was sentenced to serve 57 months’ imprisonment and must serve a three‑year term of supervised release following his term of incarceration.  There is no parole in the federal system.

The case was prosecuted by Special Assistant United States Attorney Devra T. Hake and Assistant United States Attorney Jason D. Norwood and was investigated by the Dubuque Drug Task Force and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. 

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

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

The case file number is 21‑CR‑01030.

TUCSON, Ariz. –Last week, a federal jury found Jeffrey D. McHatton, 68, of Chandler, Arizona, and Robert B. Sproat, 60, of Mesa, Arizona, guilty on 10 counts of Securities Fraud. The case was tried before United States District Judge Rosemary Márquez. Sentencing is scheduled for September 28, 2022. Prior to trial, a third co-defendant, Robert Moss, 56, of Gilbert, Arizona, pleaded guilty to his involvement in the scheme and was sentenced to 30 months in prison.

Evidence presented at trial demonstrated that, between 2012 and 2014, McHatton, Sproat, and Moss used a religious charitable organization as a front to entice victims to invest over $1.2 million. Several of the victims targeted in the scheme were elderly. McHatton, Sproat, and Moss fraudulently promoted investments in the recovery of low alpha lead from Central America, gold from the Philippines, and diamonds from Africa, though none of the items were ever produced. McHatton, Sproat, and Moss used large portions of the investment funds for their own personal use. The victims never received a return on investments other than minimal “interest” payments derived from other victims’ money.

The FBI and the Arizona Corporation Commission conducted the investigation in this case. The United States Attorney’s Office, District of Arizona, Tucson, handled the prosecution.

CASE NUMBER:            CR-18-2220-TUC-RM
RELEASE NUMBER:    2022-122_McHatton et al.

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For more information on the U.S. Attorney’s Office, District of Arizona, visit Justice.gov/AZ

Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.

BOSTON – A Dracut man pleaded guilty today in federal court in Boston in connection with the armed robbery of three convenience stores in Lowell and Tewksbury on Dec. 24, 2020.

Michael Vangpa, 33, pleaded guilty to one count of interfering with commerce by robbery and one count of using a firearm in furtherance of a crime of violence. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for Oct. 14, 2022. Vangpa was charged by criminal complaint in August 2021 and subsequently indicted by a federal grand jury in October 2021.

“Mr. Vangpa’s acts of violence spread panic across the communities he violated and terrorized by committing multiple armed robberies. Residents should be able to visit their local businesses without fear,” said United States Attorney Rachael S. Rollins. “My office is committed to ensuring the safety of this Commonwealth. We will continue to work with our law enforcement partners to hold violent individuals accountable and more so when they use firearms during their crimes.”

“Convicted felon Michael Vangpa’s crime spree on Christmas Eve during which he committed three commercial armed robberies within an hour, brandishing a handgun, put the store clerks in fear for their lives, and the public in danger,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “Removing violent criminals like him from our communities is the top priority of FBI Boston's Violent Crimes Task Force.”

“Armed robberies at neighborhood stores make citizens fearful to carry out their daily business in our community,” said James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division. “ATF and our law enforcement partners are committed to pursuing violent offenders to ensure that those who commit violent crimes will be held accountable for their actions.”

On Dec. 24, 2020, Vangpa robbed three nearby convenience stores—two in Lowell and one in Tewksbury—within an hour. In each of the robberies, Vangpa brandished a firearm and demanded money from the store clerks. During one of the robberies, Vangpa discharged the firearm into cardboard boxes under the register while demanding money.  In the other robberies, he used the firearm to strike the cashier in the head and make a store customer get on the ground.

The charge of interference with commerce by robbery provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000. The charge of discharging a firearm in furtherance of a crime of violence provides for a mandatory sentence of 10 years in prison to be served consecutively to any other sentence imposed and up to life in prison. 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.

U.S. Attorney Rollins, FBI SAC Bonavolonta, ATF SAC Ferguson and Colonel Christopher Mason, Superintendent of the Massachusetts State Police made the announcement. The Lowell, Tewksbury, Dracut and Nashua (N.H.) Police Departments provided valuable assistance. Assistant U.S. Attorney Charles Dell’Anno of Rollins’ Major Crimes Unit is prosecuting the case.

BLUEFIELD, W.Va. – A Mercer County man was sentenced today to two years and six months in prison, to be followed by three years of supervised release, for distribution of hydromorphone.

According to court documents and statements made in court, Eric Hendricks, 46, of Bluefield, admitted he sold four hydromorphone pills for $100 to a confidential informant in the Bluefield area on February 26, 2018. Hendricks further admitted to selling four hydromorphone pills to a confidential informant on February 21, 2018, and again on March 7, 2018.

United States Attorney Will Thompson made the announcement and commended the investigative work of the Southern Regional Drug and Violent Crime Task Force.

Senior United States District Judge David A. Faber imposed the sentence. Assistant United States Attorney John L. File prosecuted the case.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 1:18-cr-90.

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NEWARK, N.J. – A Hudson County, New Jersey man today admitted conspiring to distribute and possessing with intent to distribute cocaine, U.S. Attorney Philip R. Sellinger announced today.

Jerome Powell, 43, of Jersey City, New Jersey, pleaded guilty by videoconference before U.S. District Court Judge Susan D. Wigenton to a superseding information charging him with one count of conspiracy to distribute cocaine and one count of possession with intent to distribute cocaine. 

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

From August 2019 through Feb. 2, 2020, Powell and others agreed to possess and distribute narcotics in Jersey City. Upon his arrest, Powell had 400 vials of cocaine in his pocket.

The charges of conspiracy to distribute cocaine and possession with intent to distribute cocaine each carry a maximum penalty of 20 years in prison and a maximum fine of $1 million. Sentencing is scheduled for Dec. 8, 2022.

U.S. Attorney Sellinger credited special agents and task force officers of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson, New Jersey Division; and members of the Jersey City Police Department, under the direction of Public Safety Director James Shea, with the investigation leading to the charges.

This investigation was conducted as part of the Jersey City Violent Crime Initiative (VCI). The VCI was formed in 2018 by the U.S. Attorney’s Office for the District of New Jersey, the Hudson County Prosecutor’s Office, and the Jersey City Police Department, for the sole purpose of combatting violent crime in and around Jersey City. As part of this partnership, federal, state, county, and city agencies collaborate to strategize and prioritize the prosecution of violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the Drug Enforcement Administration’s (DEA) New Jersey Division, the U.S. Marshals, the Jersey City Police Department, the Hudson County Prosecutor’s Office, the Hudson County Sheriff’s Office, New Jersey State Parole, the Hudson County Jail, and the New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center.

The government is represented by Assistant U.S. Attorney Tracey Agnew of the U.S. Attorney’s Office in Trenton.

DES MOINES, IOWA – A federal grand jury in Des Moines returned an indictment on July 20, 2022, charging a West Des Moines man with exploiting minors to produce child pornography and attempting to entice and persuade other minors to do the same thing.

According to court documents, Jonathan Francis Speidel, age 30, used the social media application Snapchat to manipulate and entice numerous children to produce child pornography for him. Speidel had multiple Snapchat usernames, including “Letssbang” and “SD_Backupacct.”

Speidel is charged with twenty-eight crimes, including seven counts of Sexual Exploitation and Attempted Sexual Exploitation of a Minor, eight counts of Enticement and Attempted Enticement of a Minor, four counts of Transportation of Child Pornography, five counts of Receipt of Child Pornography, one count of Possession of Child Pornography, and three counts of Transfer and Attempted Transfer of Obscene Material to a Minor.

Speidel has been ordered to remain in custody until his trial or sentencing. If convicted, Speidel faces a mandatory minimum fifteen-year prison sentence and a maximum penalty of life in prison.

If you have information relevant to this investigation, please contact JSpeidel@fbi.gov, an email account dedicated to identifying possible victims.

The prosecution is the result of an investigation by the FBI Human Trafficking and Child Exploitation Task Force, the Iowa Division of Criminal Investigations (DCI) Internet Crimes Against Children Task Force, the North Olmsted (Ohio) Police Department, and the Gladstone (Oregon) Police Department. The investigation remains ongoing.

U.S. Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. Assistant U.S. Attorney Kyle Essley is prosecuting the case.

The case was 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. Attorney’s Offices and the Department of Justice’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

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

BLUEFIELD, W.Va. – A Raleigh County man was sentenced today to 10 years and one month in prison, to be followed by 15 years of supervised release, for attempted enticement of a West Virginia minor to engage in sexual activity. Kenneth Owens, 58, of Surveyor, must also register as a sex offender.

A federal jury found Owens guilty of attempted enticement of a minor on April 7, 2022. Evidence at trial established that Owens attempted to entice a 15-year-old female relative to take and send him sexually explicit photos of herself from April 1, 2020 through Jan. 12, 2021. Owens provided the minor with cigarettes, vapes and alcohol in exchange for the images. Owens initially communicated with the minor female relative through Facebook, and then by cell phone.

United States Attorney Will Thompson made the announcement and commended the investigative work of the U.S. Department of Homeland Security-Homeland Security Investigations (HSI), the West Virginia State Police Internet Crimes Against Children (ICAC) Task Force, and the Beckley Police Department.

Senior United States District Judge David A. Faber imposed the sentence. Assistant United States Attorneys Kristin Scott and Steve Loew prosecuted the case.

This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s 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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 1:21-cr-236.

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ALBANY, NEW YORK – JoAnne Natalie, age 64, of Saratoga Springs, New York, was indicted earlier this month for misappropriating the funds of a veteran declared legally incompetent, as well as stealing from the U.S. Department of Veterans Affairs.  The announcement was made by United States Attorney Carla B. Freedman and Christopher F. Algieri, Special Agent in Charge of the Northeast Field Office for the United States Department of Veterans Affairs Office of Inspector General.

The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.

The charges filed against Natalie carry a maximum sentence of 10 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. The indictment also seeks forfeiture of $50,174.42, representing the amount allegedly stolen. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.

Natalie was arraigned today in Albany, before United States Magistrate Judge Daniel J. Stewart, and released pending a trial scheduled before Chief United States District Judge Glenn T. Suddaby.

This case is being investigated by the United States Department of Veterans Affairs Office of Inspector General, and is being prosecuted by Assistant U.S. Attorney Alexander P. Wentworth-Ping.

This case is part of the Elder Justice Initiative. The mission of the Elder Justice Initiative is to support and coordinate the Department’s enforcement and programmatic efforts to combat elder abuse, neglect and financial fraud and scams that target our nation’s older adults. Anyone with information about allegations of attempted fraud involving elders can call the National Elder Fraud Hotline at 1-833-372-8311.

BLUEFIELD, W.Va. – A Mercer County man was sentenced today to six years and six months in prison, to be followed by 20 years of supervised release, for possessing child pornography.

According to court documents and statements made in court, on November 17, 2021, law enforcement officers executed a search warrant at the Bluefield residence of Christopher Paul Knight, 56, and seized a laptop computer. A forensic review of the computer revealed more than 1,000 image and video files of suspected child pornography. Knight admitted to downloading and possessing the images and videos of child pornography, which included prepubescent minors engaged in sexual intercourse and other sexually explicit conduct.

United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) Violent Crimes Against Children Task Force.

Senior United States District Judge David A. Faber imposed the sentence. Assistant United States Attorney Jennifer Rada Herrald prosecuted the case.

This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s 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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 1:21-cr-262.

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Tampa, Florida – U.S. District Judge Virginia Hernandez Covington has sentenced Lazaro Adrian Quintana Martinez (27, Tampa) to four years and three months in federal prison for conspiracy to commit access device fraud and aggravated identity theft. Quintana Martinez had pleaded guilty on January 13, 2022.

According to court documents, Quintana Martinez and others conspired to obtain breached and stolen credit card and debit card account information and then use the stolen information to manufacture counterfeit credit cards. The conspirators used the counterfeit credit cards at retailers throughout the United States. The total loss from the conspirators’ use of the counterfeit credit cards is at least $435,000.

Quintana Martinez is the last of six conspirators to be sentenced. His codefendant, Lazaro Jesus Izquierdo (29, Tampa), was sentenced to six years and nine months’ imprisonment. Four other conspirators were sentenced in related cases as follows:

• On July 10, 2020, Yosvani Concepcion Izquierdo (33, Tampa) was sentenced to four years’ imprisonment.
• On November 10, 2020, Greisy Alfonso Lujan (29, Tampa) was sentenced to two years and eight months’ imprisonment.
• On December 7, 2021, Jany Angelica Hernandez Guerra (28, Tampa) was sentenced to two years and six months’ imprisonment.
• On January 26, 2022, Michael William Perez Castillo (32, Brandon) was sentenced to two years’ imprisonment.

“I would like to thank our agents, analysts, local, interstate, federal agencies and business partner for their hard work in solving this case. This complex, sophisticated fraud scheme case began in 2016 and spanned multiple counties in Florida and into other states. The collaboration between the public and private sectors made it possible to identify and dismantle this criminal organization,” said Florida Department of Law Enforcement Mark Brutnell, Special Agent in Charge, Tampa.

This case was investigated by the U.S. Secret Service and the Florida Department of Law Enforcement. It was prosecuted by Assistant United States Attorney Jennifer L Peresie.

VALDOSTA, Ga. – A Valdosta man who produced child sexual assault material involving two young children was sentenced to the statutory maximum prison sentence of 60 years in prison today.

Henry Theodore Salmons aka Ted, 48, of Valdosta, Georgia, was sentenced to serve a total of 720 months in prison (the statutory maximum of 360 months imprisonment per count) to be followed by 25 years of supervised release and pay $150,000 in restitution to each of the two minor victims by U.S. District Judge Hugh Lawson after he previously pleaded guilty to two counts of producing child pornography. In addition, Salmons will have to register as a sex offender upon his release from federal prison. There is no parole.

“Ted Salmons will spend the rest of his life in prison where he will no longer be able to sexually assault children and film their horrific suffering,” said U.S. Attorney Peter D. Leary. “Our office and our law enforcement partners have an unwavering commitment to protect children from exploitation; we will use every resource at our disposal to track down dangerous sex offenders who target children and bring them to justice.”

“Finding and stopping predators like Salmons, that not only victimize innocent children, but also share those horrific images with others who delight in viewing this filth is one of our highest priorities,” said Special Agent in Charge Katrina Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “Thanks to the great work done by our agents along with our state, local and federal partners we were able to remove a serious threat from our community and we will continue to pursue those who commit these evil acts.”

“The U.S. Marshals and our K-9 unit helped us track down and take this defendant into custody; and thanks to our federal partners, we were able to build a good case against him. With this sentence, Ted Salmons will not see the light of day in Lowndes County again,” said Lowndes County Sheriff Ashley Paulk.

According to court documents, Salmons admitted that he enticed two minor children under the age of ten years old to engage in sexually explicit acts which were filmed or photographed in April and July 2021. For the protection of the minor victims, Salmon’s guilty plea was sealed by the Court at the request of the U.S. Attorney’s Office.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. 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.

The case was investigated by the U.S. Department of Homeland Security (HSI) and the Lowndes County Sheriff’s Office, with assistance from the U.S. Marshals.

Assistant U.S. Attorney Katelyn Semales prosecuted the case with support from Assistant U.S. Attorney Robert McCullers.

Tampa, Florida – U.S. District Judge Susan C. Bucklew today sentenced Eurich Griffin III to four years and nine months in federal prison for conspiring to defraud the United States by preparing false and fraudulent tax returns. In addition to the term of imprisonment, the court also ordered Griffin to pay more than $1.6 million in restitution to the United States. Griffin had pleaded guilty on March 14, 2022.

According to court documents, Griffin was involved in a conspiracy that recruited clients by convincing them that their mortgages and other debts entitled them to tax refunds and prepared false tax returns on the clients’ behalf. Between 2013 and 2018, as part of the conspiracy, Griffin helped prepare and file tax returns for clients that sought more than $5.2 million in fraudulent tax refunds. The tax returns falsely claimed that banks and other financial institutions had withheld large amounts of income tax from the clients, thereby entitling the clients to a refund. In reality, the financial institutions had not paid any income to, or withheld any taxes from, these individuals. To make the refund claims appear legitimate, however, Griffin and his co-conspirators filed fraudulent tax documents with the IRS that matched the withholding information listed on the tax returns, making them appear as if they had been issued by the banks. As part of the conspiracy, Griffin also submitted fraudulent promissory notes to the IRS totaling more than $1.35 million in which he falsely purported to pay the clients’ tax debts.

“Let’s call this scheme what it is – stealing. Griffin and his co-conspirators attempted to steal millions of dollars from the government by submitting fabricated tax returns,” said Brian Payne, Special Agent in Charge of the Tampa IRS Criminal Investigation (IRS-CI) Field Office. “Thanks to the investigative work of our IRS-CI agents, we were able to shut this scheme down and prevent tax refunds from going to undeserving fraudsters.”

This case was investigated by IRS-Criminal Investigation. It is being prosecuted by Assistant United States Attorney Jennifer L Peresie.

ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced that Raynorma Rae Billy was arraigned on July 20 on an indictment charging her with conspiracy to commit assault with a dangerous weapon and assault with a dangerous weapon with the intent to do bodily harm. Billy, 34, and an enrolled member of the Navajo Nation, will remain on conditions of release pending trial, which has not been scheduled.

A grand jury indicted Raynorma Billy and co-defendants Raydell Billy and Alvin White on May 24. According to the indictment and other court records, on April 11, Raynorma allegedly drove Raydell and White to a residence at South Side Non-profit Housing in Shiprock with the intent to assault a victim, identified as John Doe. After they entered the residence, Raynorma allegedly prevented the other occupants of the residence from intervening while Raydell and White assaulted John Doe. The indictment alleges that White threatened John Doe with a machete and both Raydell and White allegedly beat John Doe with their fists.

The alleged assault occurred on the Navajo Nation.

Raydell Billy was arraigned on May 27. White was arraigned on May 31. Raydell Billy and White will remain in custody pending trial.

An indictment is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Raydell, Raynorma and White each face up to five years in prison for conspiracy and up to ten years in prison for assault with a dangerous weapon with the intent to do bodily harm.

The Farmington Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Department of Criminal Investigations. Assistant United States Attorney Mark Pfizenmayer is prosecuting the case.

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PHILADELPHIA –United States Attorney Jacqueline C. Romero announced that Brandon Segers, 34, of Philadelphia, PA, was sentenced to two years and nine months in prison, 3 years of supervised release, and was ordered to pay $142,069 in restitution for fraudulently applying for and obtaining emergency unemployment benefits related to the COVID-19 pandemic. Specifically, Segers and others submitted false applications claiming that prison inmates lost employment as a result of the pandemic, and false weekly certifications that inmates were available to work full-time despite their incarceration.

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law. The CARES Act created the Pandemic Unemployment Assistance (PUA) program, which provides unemployment benefits to individuals not eligible for regular unemployment compensation or extended unemployment benefits, including individuals, families, and businesses affected by the COVID-19 pandemic. Eligibility to receive weekly PUA benefits is predicated on an applicant’s unemployment for reasons related to the pandemic, and it requires that the applicant was able to work each day and, if offered a job, would have been able to accept it. Once an applicant is approved to receive benefits, the applicant is required to submit weekly certifications indicating that he or she: was ready, willing and able to work each day; was seeking full time employment; did not refuse any job offers or referrals; and had reported any employment during the week and the gross pay or other payments received.

In April 2022, the defendant pleaded guilty to charges including conspiracy to commit wire fraud, wire fraud, conspiracy to defraud the United States, and theft of government money. As part of his guilty plea, Segers acknowledged that applications were filed on behalf of inmates who did not lose their job due to COVID. Co-defendant and incarcerated individual, Michael Matthews, transmitted the necessary inmate information for the filing of PUA applications to Segers, a former federal inmate who was previously incarcerated with Matthews, via phone and email. Segers would then file the fraudulent applications and weekly certifications in the name of Matthews and other inmates Matthews provided. Segers compensated Matthews for providing the inmate information by depositing money into his federal prison commissary account. Matthews previously pleaded guilty to related charges and is due to be sentenced on July 22, 2022. Co-defendant Dionne Segers’ case is pending.

“Pandemic Unemployment Assistance and small business loan funds are intended to help working Americans and small business owners continue to pay their bills and make ends meet, even when revenues have dropped dramatically due to the pandemic,” said U.S. Attorney Romero. “Thieves who attempt to take these funds are taking advantage of others’ misfortune – ripping them off while also ripping off all taxpayers who fund the program. Segers and Matthews fraudulently obtained thousands of dollars in funds that could have helped struggling businesses and individuals.”

“Today, Brandon Segers has been held accountable for using deceit and fraud to line his pockets with PUA funds,” said IRS Criminal Investigation Special Agent in Charge Yury Kruty. “This is a warning to those out there who think the PUA program is a slush fund. IRS CI, along with our partners, remains committed to investigating those who fraudulently target the PUA program.”

This case was investigated by the United States Department of Labor – Office of Inspector General, and the Internal Revenue Service – Criminal Investigation. The case is being prosecuted by Assistant United States Attorney Timothy Lanni.

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 Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form. 

TYLER, Texas – The Department of Justice announced criminal charges against 36 defendants in 13 federal districts across the United States for more than $1.2 billion in alleged fraudulent telemedicine, cardiovascular and cancer genetic testing, and durable medical equipment (DME) schemes.

In connection with this national effort, the U.S. Attorney’s Office for the Eastern District of Texas has charged 21 individuals, including doctors, laboratory executives, hospital executives, and marketers for their involvement in healthcare kickback and money laundering conspiracies.  Former True Health Diagnostics LLC CEO Christopher Grottenthaler, former Boston Heart Diagnostics Corporation Susan L. Hertzberg, former Rockdale Hospital d/b/a Little River Healthcare CEO Jeffrey Paul Madison, and others are defendants in a False Claims Act lawsuit captioned United States ex rel. STF, LLC v. True Health Diagnostics, LLC, et al., No. 4:16-cv-547 (E.D. Tex.).  Additionally, 33 doctors and healthcare executives have agreed to pay over $32 million in order to resolve False Claims Act allegations for their involvement in the scheme.  The criminal and civil cases allege that the defendants unlawfully enriched themselves by paying and receiving illegal kickbacks in exchange for laboratory referrals. 

Criminal Cases

U.S. v. Hertzberg, et al

Susan L. Hertzberg, 64, of New York,  Matthew John Theiler, 56, of Mars, Pennsylvania, David Weldon Kraus, 64, Loudon, Tennessee, Jeffrey Paul Parnell, 54, of Tyler, Texas, Thomas Gray Hardaway, 49 of San Antonio, Texas, Laura Spain Howard, 48, of Allen, Texas, Jeffrey Paul Madison, 47, Georgetown, Texas, Todd Dean Cook, 57, Wimauma, Florida, William Todd Hickman, 59, of Lumberton, Texas, Christopher Roland Gonzales, 45, of McKinney, Texas, Ruben Daniel Marioni, 37, of Spring, Texas, Jordan Joseph Perkins, 38, of Conroe, Texas, Elizabeth Ruth Seymour, 39, of Corinth, Texas, Linh Ba Nguyen, 58, of Dallas, Texas, Thuy Ngoc Nguyen, 54, of Dallas, Texas,  Joseph Gil Bolin, 50, of Dallas, Texas, Heriberto Salinas, 62, of Cleburne, Texas, and Hong Davis, 54, of Lewisville, Texas were indicted for conspiracy to commit illegal remunerations in violation of the Anti-Kickback Statute.  The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid, and other federal health care programs.  The defendants were charged for their roles in a conspiracy through which physicians were incentivized to make referrals to critical access hospitals and an affiliated lab in exchange for kickbacks which were disguised as investment returns; and in which marketers were incentivized to order, arrange for, or recommend the ordering of services from critical access hospitals and an affiliated lab in violation of the Anti-Kickback Statute.

Two Texas critical access hospitals, Little River Healthcare (LRH) based in Rockdale, Texas, and Stamford Memorial Hospital based in Stamford, Texas, partnered with Boston Heart Diagnostics (BHD), a clinical laboratory based in Framingham, Massachusetts, that specialized in blood testing.  For a fee, BHD allowed the hospitals to bill their blood tests to insurers as purported hospital outpatient services, with the hospitals charging insurers a much higher rate than BHD could receive as a clinical laboratory.  The hospitals utilized a network of marketers who in turn operated management services organizations (MSOs) that offered investment opportunities to physicians throughout the State of Texas.  In reality, the MSOs were simply a means to facilitate payments to physicians in return for the physicians’ laboratory referrals.  Pursuant to the alleged kickback scheme, the hospitals paid a portion of their laboratory revenues to marketers, who in turn kicked back a portion of those funds to the referring physicians who ordered BHD tests from the hospitals or from BHD directly.  BHD executives and sales force personnel leveraged the MSO kickbacks to gain and increase referrals and, in turn, to increase their revenues, bonuses, and commissions.  Between July 1, 2015, and January 9, 2018, at least $11,256,241.68 in illegal kickback payments were exchanged by the defendants in furtherance of the conspiracy.

On May 24, 2022, Laura Howard pleaded guilty to her involvement in the kickback conspiracy. 

On July 20, 2022, Ruben Marioni pleaded guilty to his involvement in the kickback conspiracy.

U.S. v. Peter Bennett

Peter Bennett, 47, of Houston, Texas, was indicted for conspiracy to commit money laundering, in violation of 18 U.S.C. § 1956(h) for his role in laundering the proceeds of the kickback conspiracy.  To that end, he allegedly created sham trusts and shell corporations through which he laundered the kickback proceeds, and in furtherance of the money laundering conspiracy, Bennett laundered at least $2,724,080.41 in kickback proceeds.

U.S. v. Stephen Kash

Stephen Kash, 48, of Winnie, Texas, was indicted for conspiracy to commit money laundering, in violation of 18 U.S.C. § 1956(h) for his involvement in the money laundering conspiracy.  Kash allegedly had kickback proceeds laundered on his behalf and, at times various times, obtained proceeds from the kickback conspiracy. 

U.S. v. Robert O’Neal

Robert O’Neal, 63, of San Antonio, Texas, was charged by information with conspiracy to commit illegal remunerations, in violation of Anti-Kickback Statute, and with conspiracy to commit money laundering, in violation of 18 U.S.C. § 1956(h).  O’Neal was charged for his involvement in the kickback conspiracy and money laundering conspiracy.  His role in the kickback conspiracy was to arrange for physician referrals and recommend the ordering of services to critical access hospitals and an affiliated lab.  O’Neal also had kickback proceeds laundered on his behalf and, at times various times, obtained proceeds from the kickback conspiracy. 

On January 18, 2022, O’Neal pleaded guilty to his involvement in the kickback conspiracy and the money laundering conspiracy.

The criminal cases were investigated by the Defense Criminal Investigative Services (DCIS), U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), Veteran Affairs, Office of Inspector General (VA-OIG), and the Federal Bureau of Investigation Dallas – Frisco Resident Agency.  They are being prosecuted by Assistant U.S. Attorneys Nathaniel C. Kummerfeld and J. Kevin McClendon.

Civil Cases and Settlements

Boston Heart Diagnostics Corporation, 33 doctors, and healthcare executives have agreed to pay over $32 million to resolve False Claims Act allegations for their involvement in a scheme to pay and receive illegal kickbacks in exchange for laboratory referrals.  Former True Health CEO Christopher Grottenthaler, former Boston Heart CEO Susan L. Hertzberg, former Little River CEO Jeffrey Paul Madison, and others are defendants in a False Claims Act lawsuit captioned United States ex rel. STF, LLC v. True Health Diagnostics, LLC, et al., No. 4:16-cv-547 (E.D. Tex.).  The United States filed an amended complaint in May 2022.

The civil settlements resolve allegations that doctors and healthcare executives violated the Anti-Kickback Statute by receiving thousands of dollars in remuneration from nine MSOs in exchange for ordering laboratory tests from Little River, True Health, and/or Boston Heart.  Little River allegedly funded the remuneration to certain doctors in the form of volume-based commissions paid to independent contractor recruiters, who used MSOs to pay numerous doctors for their referrals.  The MSO payments to the doctors were allegedly disguised as investment returns but in fact were based on, and offered in exchange for, the doctors’ referrals.

The civil settlements are the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Texas and the Civil Division’s Commercial Litigation Branch, Fraud Section, with assistance from HHS-OIG, DCIS, and VA-OIG.  The civil cases are being handled by Assistant U.S. Attorneys James Gillingham, Adrian Garcia, and Betty Young, Senior Trial Counsel Christopher Terranova, and Trial Attorney Gavin Thole.

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

Any patients who believe that they have been contacted as part of a fraudulent telemedicine, clinical laboratory, or DME scheme should call to report this conduct to HHS-OIG at 1-800-HHS-TIPS.

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PITTSBURGH – Price Montgomery has been sentenced in federal court to life in prison plus 80 years after having been found guilty at trial of retaliation against a witness by murder for the killing of Tina Crawford, attempted murder to silence a witness for the shooting of Patsy Crawford, use of a firearm during a federal crime of violence, conspiracy to distribute more than one kilogram of heroin, and money laundering, United States Attorney Cindy K. Chung announced today.

Chief United States District Judge Mark R. Hornak imposed the sentence on Montgomery, 42, previously of the Pittsburgh’s Mount Washington section.

Evidence presented during a two-week jury trial in 2018 established that, from April 2013 until June 2014, in the Western District of Pennsylvania and elsewhere, Montgomery and co-defendant James Perrin conspired to distribute large quantities of heroin. On June 8, 2014, Montgomery and Perrin, who both had prior felony convictions, possessed 16 firearms in furtherance of that drug trafficking crime. Montgomery also conspired to commit money laundering by using the proceeds of his illegal drug trafficking to purchases items, including cars and lease-to-purchase agreements on homes. Finally, the evidence proved that approximately an hour before Tina Crawford was scheduled to appear at the U.S. Attorney’s Office to discuss her role as a courier in the Montgomery drug distribution organization, Price Montgomery shot and killed her and severely wounded her mother, Patsy, in the garage area of the Hill District home they shared.

“Price Montgomery, a heroin dealer and convicted felon who illegally possessed firearms, murdered Tina Crawford because she was a federal witness. Montgomery killed Crawford and severely wounded her mother just as they were walking to their car to drive to the U.S. Attorney’s Office for an interview,” said U.S. Attorney Chung. “We hope that this prosecution brought justice and closure for the Crawford family. This prosecution also served to preserve the integrity of our justice system by prosecuting to the full extent of the law a murder aimed at silencing a witnesses.”

“This sentencing sends a clear message to anyone who chooses to commit murder, especially a murder which directly impacts the fabric of our justice system,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Office. “There is no sentence that can ease the pain of the victim’s family, but this case highlights the impact multiple agencies can have when they join forces to make certain justice is served.”

“The extreme violence that Montgomery demonstrated through the murder of Tina Crawford and the shooting of her mother is absolutely reprehensible,” said Thomas Hodnett, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “Anyone who harms, or attempts to harm, a federal witness will experience the full consequences of federal criminal prosecution. For Crawford’s murder and his drug-trafficking and firearms activities, Montgomery will well-deservedly spend the rest of his life in a federal prison cell.”

“Today’s sentencing holds Price Montgomery accountable for the worst of crimes,” said Yury Kruty, Special Agent in Charge of IRS-Criminal Investigation. “The Special Agents of IRS-CI are adept at tracing the illegal proceeds involved in drug trafficking organizations. We will continue to provide our financial expertise as we work hand in hand with our law enforcement partners to bring criminals like this to justice.”

“There was great collaboration between local and federal law enforcement agencies in finding this fugitive who was on the run for several months after shooting and killing this innocent female witness,” added Phil Cornelious, Acting United States Marshal for the Western District of Pennsylvania.

“Price Montgomery will spend the rest of his life in prison for committing this heinous murder. Let this case send a clear message -- anyone who seeks to interfere in a prosecution and bring harm to a witness will face the full force of the law,” said Attorney General Josh Shapiro.

“The sentence for Price Montgomery demonstrates a steadfast commitment to justice and underscores the responsibility of all of our law enforcement partners to continue to work together - no matter how much time has passed - to ensure that the families of victims of violent crime receive the redress they deserve,” said Acting Pittsburgh Police Chief, Thomas Stangrecki.

Assistant United States Attorneys Heidi M. Grogan and Shaun E. Sweeney prosecuted this case on behalf of the government.

U.S. Attorney Chung commended the Western Pennsylvania Office of the Bureau of Alcohol, Tobacco, Firearms & Explosives, the IRS Criminal Investigation Division, the Drug Enforcement Administration, the U.S. Marshals Service, the Pennsylvania Office of the Attorney General and the Pittsburgh Bureau of Police for the investigation leading to the successful prosecution of Price Montgomery.

A man who unlawfully possessed a firearm was sentenced July 20, 2022, to more than five years in federal prison.

Terrence Roby, Jr., age 24, from Waterloo, Iowa, received the prison term after a December 22, 2021, guilty plea to one count of possession of a firearm by a felon.

In a plea agreement, Roby admitted that, on March 29, 2021, he knowingly possessed a firearm, a Smith and Wesson SD40 .40 caliber pistol, as a prohibited person.  Roby was prohibited from possessing a firearm because he was previously convicted on February 17, 2020, of attempted burglary in the second degree in the Iowa District Court for Black Hawk County, a felony.  On March 29, Roby was a passenger in a vehicle which led officers on a high-speed chase reaching speeds of 60 mph in a 30-mph zone in a residential area.  After about 5 minutes, the driver stopped the vehicle and all the occupants fled on foot.  Roby ran from the vehicle carrying the pistol which he disposed of between two homes.  Roby also admitted that, on July 8, 2021, he possessed a Smith and Wesson 9x19mm caliber pistol and a Kel-Tec .40 caliber rifle.  These weapons were found during the execution of a search warrant at Roby’s residence.

Roby was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams.  Roby was sentenced to 63 months’ imprisonment.  He must also serve a three-year term of supervised release after the prison term.  There is no parole in the federal system.

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

The case was prosecuted by Assistant United States Attorney Lisa C. Williams and investigated by the Waterloo Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). 

Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.  The case file number is 21-CR-2058.

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A man who punched his victim repeatedly in the head and face was sentenced today to more than 3 years in federal prison.

Kiedis Oldbear, age 29, from Tama, Iowa, received the prison term after a January 27, 2022 guilty plea to assault resulting in substantial bodily injury to a dating partner.

Information from the case shows that, on September 28, 2021, Oldbear was parked in a car on the Meskwaki Settlement near Tama.  The victim of the assault, a woman that Oldbear was dating, was with him in the car.  Oldbear assaulted the victim by punching her in the head and face repeatedly, causing substantial injuries to her.  The victim was eventually able to get out of the car and run for help.

Oldbear has an extensive criminal history and has been convicted of over 15 crimes as an adult.  He has prior convictions for interference with official acts, operating while intoxicated, domestic abuse causing bodily injury, child endangerment, possession of a firearm as a felon, eluding, possession of cocaine with intent to deliver, assault on a police officer, and willful injury.

Oldbear was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams.  Oldbear was sentenced to 41 months’ imprisonment.  He must also serve a three-year term of supervised release after the prison term.  There is no parole in the federal system.

Oldbear is being held in the United States Marshal’s custody until he can be transported to a federal prison.  The case was prosecuted by Assistant United States Attorney Lisa Williams and investigated by the Federal Bureau of Investigation and the Meskwaki Nation Police Department.  Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.  The case file number is 21-CR-78.

Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that DOUGLAS SENERTH, 33, of South Windsor, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 18 months of imprisonment, followed by three years of supervised release, for stealing approximately $679,000 from his grandparents.  Judge Chatigny also ordered Senerth to serve the first six months of his supervised release in home confinement.

According to court documents and statements made in court, between 2011 and 2019, Senerth defrauded his grandmother and his late grandfather by falsely claiming to be a college student and inducing them to give him approximately $419,000 to pay for nonexistent college tuition and other related expenses, and an additional approximately $260,000 by falsely claiming that he would invest their money into an investment fund run by one of his nonexistent professors.  As part of the scheme, Senerth created fraudulent college transcripts, letters and email accounts that he used to corroborate his lies.

Judge Chatigny ordered Senerth to pay restitution of $679,944.

Senerth has been detained in state custody since February 10, 2021, when he was arrested on unrelated charges.  On February 23, 2022, he pleaded guilty in federal court to one count of wire fraud.

Senerth’s state case is pending.  His federal sentence will begin when his state case is resolved.

This investigation was conducted by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Heather Cherry.

The Justice Department has established a National Elder Fraud Hotline to provide services to seniors who may be victims of financial fraud.  The Hotline is staffed by experienced case managers who can provide personalized support to callers.  Case managers assist callers with reporting the suspected fraud to relevant agencies and by providing resources and referrals to other appropriate services as needed.  When applicable, case managers will complete a complaint form with the Federal Bureau of Investigation Internet Crime Complaint Center (IC3) for Internet-facilitated crimes and submit a consumer complaint to the Federal Trade Commission on behalf of the caller.  The Hotline’s toll-free number is 833-FRAUD-11 (833-372-8311).  For more information, please visit: https://ovc.ojp.gov/program/stop-elder-fraud/providing-help-restoring-hope.

NEW ORLEANS, LOUISIANA– KYLE ARMSTRONG, age 20, a resident of New Orleans, Louisiana, pled guilty on July 20, 2022 before United States District Judge Susie Morgan to an indictment charging him with theft or receipt of stolen mail matter in violation of Title 18, United States Code, Sections 1708 and 2 and with unlawful possession of a postal key in violation of Title 18, United States Code, Sections 1704 and 2, announced U.S. Attorney Duane A. Evans.

According to court documents, on December 9, 2021, ARMSTRONG and co-defendant Kareem Madison were stopped by law enforcement after using a United States Postal Service (“USPS”) “Arrow Key” to make unlawful entry into three blue collection boxes at the Metairie Main Post Office located in Metairie, LA. ARMSTRONG removed the U.S. mail articles from the boxes and placed them into a duffel bag while Madison stood near the corner of a nearby strip mall. After stopping the vehicle, law enforcement observed a black Adidas duffel bag containing a significant amount of U.S. mail matter on the floorboard of the vehicle. A search of the black duffel bag led to the discovery of approximately 424 pieces of stolen U.S. mail and approximately 20 checks stolen from the Greater New Orleans area and Metairie.

For count 1, ARMSTRONG faces a maximum term of five (5) years imprisonment, followed by up to three (3) years of supervised release, up to a $250,000.00 fine, and a mandatory special assessment fee of $100.00. For count 2, ARMSTRONG faces a maximum term of ten (10) years imprisonment, followed by up to three (3) years of supervised release, up to a $250,000.00 fine, and a mandatory special assessment fee of $100.00.

U.S. Attorney Evans praised the work of the U.S. Postal Service Inspection Service and Jefferson Parish Sheriff’s Office in investigating this matter. Assistant U. S. Attorneys Rachal Cassagne and Dall Kammer are in charge of the prosecution.