Category: Office of United States Attorneys

Source: Office of United States Attorneys

Tacoma – A 21-year-old Taholah, Washington, man was sentenced today in U.S. District Court in Tacoma to 30 months in prison for abusive sexual contact in connection with the sexual assault of a teenager on the Quinault Nation reservation, announced U.S. Attorney Tessa M. Gorman. Jerimiah McCrory was arrested in July 2021, after a teen victim reported McCrory raped her after attending a gathering on the Quinault reservation. The investigation by Quinault Nation Police and the FBI revealed that other teens also had been sexually assaulted. U.S. District Judge Tiffany M. Cartwright rejected a defense request for a time-served sentence, saying the forcible rape followed an escalating pattern of the sexual abuse of others.

According to the plea agreement, the sexual assault of one teenager occurred on April 12, 2021, when McCrory and the victim were visiting a home on the Quinault Nation reservation. McCrory is a member of the Quinault Nation. McCrory admitted that he sexually assaulted the teen and pleaded guilty to abusive sexual contact in connection with that assault in October 2023. As part of the plea agreement, McCrory admitted to two other sexual assaults against teenage victims in 2019. Those facts were considered by the judge at sentencing as relevant conduct.

McCrory will be on 10 years of supervised release following prison and will be required to register as a sex offender.

The case was investigated by the Quinault Nation Police and the FBI.

The case is being prosecuted by Assistant United States Attorneys J. Tate London and Rebecca S. Cohen. Mr. London serves as a Tribal Liaison for the U.S. Attorney’s Office, Western District of Washington.

Source: Office of United States Attorneys

CAMDEN, N.J. – An Essex County, New Jersey, man today admitted conspiring with two others in a kickback scheme to defraud the owner of a condominium complex in Jersey City of $470,000, U.S. Attorney Philip R. Sellinger announced.

Jonathan Smith, 56, of Montclair, New Jersey, pleaded guilty before U.S. District Judge Karen M. Williams in Camden to an information charging him with one count of conspiracy to commit wire fraud.

Smith’s conspirator, Nathaniel Obedos, pleaded guilty on July 6, 2023, before Judge Williams and is awaiting sentencing. Ranaldo Bennett, Smith’s other conspirator, was arrested and charged for the same conduct, and his case is still pending.

According to the publicly filed documents and statements made in Court:

From November 2018 through July 2020, Smith conspired with Bennett and Obedos to engage in a kickback scheme to defraud the owner of the condominium complex. Bennett was the complex’s lead property manager and Smith was its superintendent. Bennett and Smith steered repair and maintenance work to Obedos and his company. Bennett and Smith requested and received kickbacks from Obedos. To fund these kickbacks, Bennett and Smith falsified invoices that grossly inflated the value of Obedos’s work. Relying on those fake invoices, the complex paid Obedos the inflated prices, and Obedos then used the excess money to pay Bennett and Smith kickbacks. The complex paid Obedos and his company over $1 million for work that was actually valued at $500,000. Obedos used the overpayments to pay $460,000 in kickbacks to Bennett and approximately $30,000 in kickbacks to Smith.

The charge of conspiracy to commit wire fraud carries a maximum potential penalty of 20 years and a maximum fine of $250,000, or twice the gross gain or loss from the offense, whichever is greatest. Sentencing for Smith is scheduled for June 10, 2024.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the today’s guilty plea.

The government is represented by Assistant U.S. Attorney Blake Coppotelli of the U.S. Attorney’s Office Economic Crimes Unit.

The charges and allegations against Bennett are merely accusations, and he is presumed innocent unless and until proven guilty.

Source: Office of United States Attorneys

TRENTON, N.J. – A Monmouth County, New Jersey, man was sentenced today to 45 months for defrauding 14 victims of more than $1.2 million and fraudulently obtaining a loan of approximately $96,000 meant for small businesses during the COVID-19 pandemic, U.S. Attorney Philip R. Sellinger announced.

Anthony Mastroianni Jr., 49, of Manalapan, New Jersey, pleaded guilty on Sept. 13, 2023, before U.S. District Judge Robert Kirsch to an information charging him with two counts of wire fraud. Judge Kirsch imposed sentence today in Trenton federal court. 

“This defendant admitted defrauding investors by taking the money they entrusted to him and using it for his personal benefit, rather than investing it. He did this after already having agreed never to work as broker. Investors need to know their money is being used for their best interest, and not to line the pockets of criminals. Mastroianni is now realizing the price that must be paid for stealing from innocent victims.”

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

In 2016, Mastroianni consented to being permanently barred by the Financial Industry Regulatory Authority (FINRA), which prohibited him from acting as a broker or intermediary in securities transactions. Despite that debarment, Mastroianni admitted that from January 2017 to August 2022 he defrauded victim investors, many of whom were senior citizens, by falsely and fraudulently claiming that he would generate large investment profits for them through his company, Global Business Development & Consulting Corporation. Instead of investing the money as promised, Mastroianni used victim funds on personal expenses. In total, Mastroianni defrauded 14 victims of approximately $1.2 million.

Mastroianni also exploited the ongoing global pandemic by submitting a false and fraudulent application to obtain approximately $96,300 from a federal COVID-19 emergency relief loan meant for distressed small businesses. As with his investment fraud scheme, Mastroianni misused the loan proceeds to make personal purchases and cash withdrawals.

In addition to the prison term, Judge Kirsch also sentenced Mastroianni to three years of supervised release and ordered restitution of $1.3 million.

U.S. Attorney Sellinger credited special agents of the U.S. Attorney’s Office, under the direction of Special Agent in Charge Thomas Mahoney in Newark, with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorney Carolyn Silane of the Economic Crimes Unit in Newark.

Source: Office of United States Attorneys

NEWARK, N.J. – A Florida man today admitted his role in a multimillion-dollar durable medical equipment (DME) kickback scheme, Attorney for the United States Vikas Khanna, District of New Jersey, and U.S. Attorney Markenzy Lapointe, Southern District of Florida, announced.

Kareem Memon, 34, of Coral Springs, Florida, pleaded guilty before U.S. District Court Judge Raag Singhal in the Southern District of Florida to an information charging him with one count of conspiracy to commit health care fraud and one count of conspiracy to violate the federal Anti-Kickback Statute.

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

Memon and his conspirators owned and operated marketing call centers and telemedicine companies through which they obtained doctors’ orders for DME for Medicare beneficiaries without regard to medical necessity. Memon and his conspirators provided doctors’ orders in exchange for bribes from DME companies that provided the braces to Medicare beneficiaries.  Memon and his conspirators caused losses to Medicare in excess of $11 million.

On Sept. 21, 2023, Memon pleaded guilty to wire fraud, money laundering, and felon in possession charges in a separate case before Judge Singhal.  Memon submitted fraudulent loan applications seeking more than $451,000 in forgivable Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act and used those funds for personal gains. At the time of Memon’s arrest he was a felon and found to be unlawfully in possession of an arsenal of 12 firearms and ammunition.

The health care fraud conspiracy charge is punishable by a maximum of 10 years in prison and the kickback conspiracy charge is punishable by a maximum of five years in prison. Both charges are also punishable by a fine of $250,000, or twice the gross gain or loss from the offense, whichever is greatest. Sentencing is scheduled for March 26, 2024.

Attorney for the United States Khanna and U.S. Attorney Lapointe credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark and Acting Special Agent in Charge is Maged Behnam in Miami, Florida; the Department of Health and Human Services-Office of Inspector General, under the direction of Acting Special Agent in Charge Naomi Gruchacz; the U.S. Department of Defense, Office of the Inspector General, Defense Criminal Investigative Service, under the direction of Acting Special Agent in Charge Brian J. Solecki; and the U.S. Department of Veterans Affairs Office of Inspector General, under the direction of Special Agent in Charge Christopher F. Algieri with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorney Matthew Specht of District of New Jersey and Assistant U.S. Attorney Robin Waugh of the Southern District of Florida.

Source: Office of United States Attorneys

SAN JOSE – A federal grand jury has indicted Victoriano Romero, charging him with conspiracy and related charges in connection with an alleged scheme to steal high-end performance bicycles from residents in the Bay Area and transport the bicycles to Mexico for resale.

According to the indictment, filed January 23, 2024, and unsealed earlier today, Romero, 53, from San Jose, participated in a complex international fencing operation that involved stealing bicycles from homes in San Francisco and Redwood City, Calif., during nighttime burglaries, and then transporting the stolen bicycles to Jalisco, Mexico, for resale. The indictment alleges Romero owns an automotive shop in San Jose where he received the stolen bicycles, took pictures of them, disassembled them, packaged them for delivery, and then had them transported to a co-conspirator in Mexico. Romero allegedly sent the pictures to his co-conspirator who used the pictures for online advertisements to sell the bicycles. Further, the indictment alleges Romero received a share of the profits from the international bicycle fencing scheme.

The indictment contains a description of nine of the bicycles that were stolen between April 2020 and April 2021. The bicycles, ranging in value from $3,000 to $9,000, included notable manufacturers such as a Serotta Titanium bicycle, a Bulls Grinder Evo bicycle, and a Cervelo C3 Carbon bicycle.

The indictment also describes additional details about the participation of Romero’s alleged co-conspirator in the scheme. For example, the indictment alleges the unindicted co-conspirator posted pictures of the stolen bicycles on a Facebook sales page using a virtual private network (or similar method) so that only persons in Mexico could see that the bicycles were for sale. In addition, the indictment describes how the co-conspirator reassembled the bicycles in Mexico before selling them and maintained a ledger listing the profits from the sales of the bicycles.

In sum, Romero is charged with one count of conspiracy to transport stolen goods in foreign commerce, in violation of 18 U.S.C. §§ 371 and 2314, and two counts of transportation of stolen goods in foreign commerce, in violation of 18 U.S.C. §§ 2314 and 2.

An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. The maximum statutory penalty for the conspiracy charge is five years in prison. The maximum statutory penalty for the substantive transportation charges is 10 years, per count. In addition, as part of any sentence, the court could order defendant to serve an additional term of supervised release to begin after a prison term, additional fines, and restitution, if appropriate. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.

Romero made his initial federal court appearance to face the charges this morning before U.S. Magistrate Judge Peter H. Kang. He was released on bond. His next scheduled court appearance is scheduled for April 10, 2024, before P. Casey Pitts, United States District Judge, for status.

The announcement was made by U.S. Attorney Ismail J. Ramsey and Federal Bureau of Investigation Special Agent in Charge Robert K. Tripp.

Assistant U.S. Attorney Michael Lagrama is prosecuting the case. The prosecution of this case is the result of an investigation by the FBI and the San Francisco Police Department.

Source: Office of United States Attorneys

TOLEDO – A federal grand jury in Toledo returned an indictment on February 7, 2024, charging Daniel R. Hitlan, of Huron, Ohio, with three counts of bank fraud and five counts of money laundering related to filing false applications for Paycheck Protection Program loans.

The indictment charges that between April 14, 2020 and May 13, 2020, Hitlan submitted three false PPP loan applications and received funding totaling $2,578,318.  Hitlan applied for the loans using two businesses that he owned: Sailor Sales, LLC and Daniel Robert Hitlan.  Hitlan applied for the loans at three separate banks.  In each instance, he falsely stated the number of employees for the businesses and claimed to have payroll expenses when in fact the businesses had no payroll expenses.  Hitlan supported the PPP loan applications by creating and submitting fictitious payroll documents and payroll forms with his application. 

It is further alleged that Hitlan used the proceeds to conduct several financial transactions to include a check for $88,811.27 for the purchase of a 2020 Cadillac Escalade, another check for $48,232.63 for the purchase of a 1968 Chevrolet Corvette, two wires for the purchase of real estate in the amounts of $179,013.97 and $248,423.89, and a debit card transaction for $20,000 to a jeweler for the purchase of Rolex watches. 

An indictment is only a charge and not evidence of guilt.  A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum, and, in most cases, it will be less than the maximum.

The investigation was conducted by IRS–Criminal Investigations and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Gene Crawford.

Source: Office of United States Attorneys

MINNEAPOLIS – A Royalton man has been sentenced to 192 months in prison followed by 15 years of supervised release for producing sexually explicit images of a minor, announced United States Attorney Andrew M. Luger. 

According to court documents, in November 2022, Andrew John Groen, 35, contacted a minor victim using the messaging application TextMe. Groen, who knew the victim was a minor, identified himself in messages as a 19-year-old man named “Tyler.” On multiple occasions, Groen coerced the minor to send sexually explicit images. Groen also sent the minor victim obscene images and links to pornography and encouraged the minor victim to have sex with an adult man identified in messages.

On August 24, 2023, Groen pleaded guilty to one count of production and attempted production of child pornography. Groen was on February 6, 2024, in U.S. District Court by Judge Jerry W. Blackwell.

This case was the result of an investigation conducted by the FBI and the Willmar Police Department.

Assistant U.S. Attorney Hillary A. Taylor prosecuted the case.

Source: Office of United States Attorneys

MINNEAPOLIS – A Minneapolis man has been sentenced to 120 months in prison followed by five years of supervised release for possession with intent to distribute cocaine, announced United States Attorney Andrew M. Luger. 

According to court documents, on April 11, 2023, law enforcement executed a search warrant on a Minneapolis home belonging to Luis Fernando Cervantes, 37. As a result of the search, law enforcement found seven one-kilogram packages of cocaine and a firearm.

On October 18, 2023, Cervantes pleaded guilty to possession with intent to distribute cocaine. Cervantes was sentenced yesterday in U.S. District Court by Judge Michael J. Davis.

This case was the result of an investigation conducted by the Drug Enforcement Agency and the Hennepin County Sheriff’s Office.

Assistant U.S. Attorney Campbell Warner prosecuted the case.

Source: Office of United States Attorneys

NEW ORLEANS – U.S. Attorney Duane A. Evans announced today that on February 6, 2024 MAX CORY JOHNSON, JR. (“JOHNSON”), age 21, of Harvey, pled guilty to Possession of Materials Involving the Sexual Exploitation of Minors, in violation of Title 18, United States Code, Sections 2252(a)(4)(B) and (b)(2). JOHNSON faces up to twenty (20) years imprisonment, and/or up to a fine of $250,000.00, or the greater of twice the gross gain to the defendant or twice the gross loss to any person of the offense. In addition, JOHNSON faces no less than five (5) years of supervised release and up to life, following release from prison.

According to court documents, the case against JOHNSON stemmed from an undercover online investigation that sought to identify those individuals who were sharing Child Sexual Abuse Material (“CSAM”). On July 20, 2023, Homeland Security Investigations (“HSI”) special agents, and Jefferson Parish Sheriff’s Office deputies, executed a federal search warrant at JOHNSON’s residence in Harvey. JOHNSON confessed to agents that he both, possessed and saved, CSAM to his computer using a specialized network. Sentencing is scheduled for before United States District Judge Wendy B. Vitter.

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 United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

The U.S. Attorney’s Office would also like to acknowledge the assistance of the U.S. Department of Homeland Security, Homeland Security Investigations, and the Jefferson Parish Sherriff’s Office with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Chief of the Financial Crimes Unit.

Source: Office of United States Attorneys

HAMMOND – Guadalupe Guerra, 70 years old, of Gary, Indiana, was sentenced by United States District Court Senior Judge Jon E. DeGuilio after pleading guilty to Possession of Material Involving the Sexual Exploitation of Minors, announced United States Attorney Clifford D. Johnson.

Guerra was sentenced to 120 months in prison, 5 years of supervised release and ordered to pay $33,000 in restitution to the victims of the offense.

According to documents in the case, on or about January 31, 2023, Guerra possessed material involving the sexual exploitation of minors while having a previous conviction for aggravated criminal sexual assault.

This case was investigated by the United States Department of Homeland Security, Homeland Security Investigations with assistance from the Indiana Internet Crimes Against Children Task Force, the Indiana State Police Digital Forensics Unit, and the United States Marshals Service Great Lakes Regional Fugitive Task Force.  The case was prosecuted by Assistant United States Attorney Emily Morgan.

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. 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.