Category: Office of United States Attorneys

Source: Office of United States Attorneys

            WASHINGTON – An Illinois man was sentenced to prison today for his actions during the breach of the U.S. Capitol on Jan. 6, 2021. His actions and the actions of others disrupted a joint session of the U.S. Congress convened to ascertain and count the electoral votes related to the 2020 presidential election.

            Tyng Jing Yang, 61, of Hoffman Estates, Ill., was sentenced to six days in prison by U.S. District Court Judge John D. Bates for interfering with law enforcement officers during a civil disorder, a felony. The sentence is to be served intermittently, that is, three consecutive two-day weekends. Judge Bates also ordered Yang to serve 24 months of probation and pay $3,000 in restitution and fines.

            According to court documents, Yang traveled from his home near Chicago to Washington, D.C., to attend a rally at the Ellipse and show his support for the former President on Jan. 6, 2021. After the rally, Yang made his way to the U.S. Capitol and entered the building via the Upper West Terrance door at approximately 2:45 p.m.

            Once inside the Capitol, Yang walked up a set of stairs and entered the Rotunda, where he walked about taking pictures and videos on his cell phone. He then exited the Rotunda at approximately 2:47 p.m., only to return a short while later. Court documents say that Yang can be seen on closed-circuit television pumping his fist in the air and watching as an increasing number of police officers fill the Rotunda and pause to take selfie photographs with one another.

            At approximately 3:06 p.m., police officers formed a line near the north exit to expel the rioters from the Rotunda. Despite the advancing line of police officers, Yang refused to move back or to leave the area. Instead, beginning at approximately 3:07 p.m., Yang moved towards the line of police officers and was involved in several confrontations with law enforcement. In one instance, Yang rushed directly toward the line of officers and joined with other rioters in aggressively confronting them and obstructing their efforts to clear the U.S. Capitol building. Yang then physically grabbed one officer’s wrist while the officer was working to clear the Rotunda of rioters.           

            As rioters continued to confront the line of officers, Yang joined them in refusing to exit the Rotunda and pushing back against police. At about 3:09 p.m., one officer began pushing back against a rioter with a police baton. Yang, standing directly behind the rioter, reached around to physically grab ahold of the officer’s baton. The officer broke Yang’s grip on the baton, and shortly thereafter, Yang exited the Capitol at approximately 3:15 p.m.

            Yang was arrested on Nov. 16, 2022, in Hoffman Estates. 

            This case is being prosecuted by the U.S. Attorney’s Office for the District of Columbia and the Department of Justice National Security Division’s Counterterrorism Section. Valuable assistance was provided by the U.S. Attorney’s Office for the Northern District of Illinois.

            The case is being investigated by the FBI’s Chicago and Washington Field Offices. Valuable assistance was provided by the U.S. Capitol Police and the Metropolitan Police Department.

            In the 36 months since Jan. 6, 2021, more than 1,265 individuals have been charged in nearly all 50 states for crimes related to the breach of the U.S. Capitol, including more than 440 individuals charged with assaulting or impeding law enforcement, a felony. The investigation remains ongoing.

            Anyone with tips can call 1-800-CALL-FBI (800-225-5324) or visit tips.fbi.gov.

Source: Office of United States Attorneys

CHARLOTTESVILLE, Va. –  A Kroger Pharmacy and a Harris Teeter Pharmacy in Charlottesville, Virginia have both agreed to pay the United States a combined total of $1.3 million to settle civil claims that the stores violated the Controlled Substances Act (CSA).

“We have seen a record number of Americans lose their lives in recent years as a result of opioid poisoning,” United States Attorney Christopher R. Kavanaugh said today. “This epidemic remains ongoing, and we know that many individuals struggling with addiction are obtaining opioids and other addictive drugs from pharmacies who choose to look the other way. My Office continues to work with the DEA and others to hold accountable any pharmacy or doctor who illegally prescribes these highly-addictive and dangerous drugs.”

“Healthcare providers, including pharmacies, have a vital responsibility when it comes to dispensing medications to meet the health needs of their patients. Our goal is to ensure that healthcare providers are equipped with the necessary tools and knowledge to deliver high-quality care to their patients, while also preventing the diversion and misuse of prescription drugs for the safety and well-being of our citizens,” said Jarod A. Forget, Special Agent in Charge, DEA Washington Division.

Specifically, the United States contends the two pharmacies violated the CSA at least 160 times between February 2018 and April 2021 by filling invalid prescriptions for opioids and benzodiazepines that were written by a physician clearly acting outside the scope of his medical practice, and pharmacists at both locations should have known this information and refused to fill those illegal prescriptions.

United States Attorney Christopher R. Kavanaugh of the Western District of Virginia and Special Agent in Charge Jared A. Forget of the Drug Enforcement Administration – Washington Division made the announcement.

Assistant U.S. Attorney Justin Lugar and the DEA Richmond District Office investigated the matter.

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

Source: Office of United States Attorneys

Tampa ― U.S. Attorney Roger B. Handberg announced today that the Middle District of Florida (MDFL) has collected $78,043,065 related to local criminal and civil matters in the fiscal year ending September 30, 2023 (FY 2023). Of this amount, $36,767,863 was collected in criminal cases and $28,641,442 was collected in civil actions.    

The MDFL’s Civil Division, led by Civil Chief Randy Harwell, recovered a total of $41,230,830 on behalf of federal agencies and programs in affirmative civil enforcement cases during the last fiscal year. This amount has two components. In addition to its efforts in local civil cases noted above, the District’s Civil Division also joins forces with other U.S. Attorney’s Offices and with the Department of Justice Civil Frauds Section to address fraud schemes and illegal practices extending beyond district boundaries. The MDFL’s Civil Division recovered an additional $12,589,388 in these jointly handled cases. 

“We will continue to work with our law enforcement partners to investigate and prosecute those who seek to illegally exploit federal government programs by fraudulent means,” said U.S. Attorney Roger B. Handberg. “The funds recovered in the previous fiscal year will help victims recover from their losses and assist law enforcement in pursuing justice.”

U.S. Attorneys’ Offices, along with the Department’s litigation divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.

The MDFL’s Asset Recovery Division, led by Chief Anita Cream, recovered a total of $55,930,305. This amount has two components―criminal monetary penalties and forfeiture. First, in addition to the $36,767,863 in criminal monetary penalties collected in cases prosecuted by the District, the Asset Recovery Division worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $44,372 in criminal monetary penalties pursued jointly by these offices.

Additionally, the District’s Asset Recovery Division, working with partner agencies, forfeited $19,118,070 from criminal and civil asset forfeiture actions in FY 2023. For instance, in FY 2023, almost $44 million forfeited in the MDFL was returned to victims of the criminal offenses, and more than $3 million was shared with federal, state, and local law enforcement agencies. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.

Significant Affirmative Civil Enforcement Cases

United States ex rel. Sanchez v. Smart Pharmacy, et al., Case no. 3:14cv1493 (M.D. Fla.).  The United States intervened in two related qui tam cases in June 2018 and litigated the government’s claims against a large Jacksonville area compounding pharmacy, Smart Pharmacy, and one of its principal owners, Gregory Balotin, claiming that the pharmacy billed the Tricare program for millions of dollars in reimbursement for medically unnecessary pain creams. Specifically, the intervenor complaint alleged the pharmacy created compounded creams using an anti-psychotic agent, Ariprazole, for no medical purpose and solely to boost reimbursement. The complaint also alleged that the pharmacy routinely waived patient co-payments, without regard to patient need, to improperly incentivize prescriptions for the unnecessary pain creams. In June 2023, we announced a settlement of all claims in exchange for $7.4 million.

Press release: https://www.justice.gov/opa/pr/two-jacksonville-compounding-pharmacies-and-their-owner-agree-pay-least-74-million-resolve   

United States ex rel. Bomar v. Bayfront HMA Medical Center, et al., Case no. 8:16cv3310 (M.D. Fla.). 

An investigation arising from this qui tam case determined that the Lakeland Regional Medical Center (LRMC) had defrauded the Florida Medicaid program through a complex scheme involving sham donations to local government organizations. These donations increased Medicaid payments to LRMC, by freeing up funds for the local government to make payments to the State as the state share of Medicaid payments to LRMC. The state share was “matched” by the federal government before being returned to LRMC as Medicaid payments. Through this scheme, Medicaid payments LRMC received were thus funded by the federal government and LRMC’s own donations, in violation of the prohibition on non-bona fide donations. In March 2023, LRMC agreed to pay $4 million to resolve these allegations. 

Press release: https://www.justice.gov/opa/pr/florida-s-lakeland-regional-medical-center-agrees-pay-4-million-settle-common-law-allegations  

United States ex rel. Improta v. Ocenture, Case no. 3:19cv358 (M.D. Fla.).

The United States intervened in this qui tam case that alleged a kickback scheme arising from genetic testing services. The complaint alleged that Ocenture and a subsidiary company, Carelumina, solicited genetic testing samples from Medicare beneficiaries directly and through marketers. Ocenture and Carelumina then paid physicians to falsely attest that the genetic testing was medically necessary and arranged for laboratories to process the tests and receive reimbursement from Medicare, with a portion of that reimbursement being paid to Ocenture and Carelumina. In December 2022, we announced a settlement of all claims in return for $3 million.

Press release: https://www.justice.gov/opa/pr/ocenture-llc-and-carelumina-llc-settle-allegations-false-claims-unnecessary-genetic-testing

Skyetec

The U.S. Environmental Protection Agency – Office of Inspector General accused a Jacksonville area company, SMC Systems, Inc. d/b/a Skyetec, of violating the Financial Institutions Reform, Recovery and Enforcement Act of 1989 through a scheme whereby Skyetec would falsely certify that newly constructed homes met certain energy efficiency requirements and qualified for EPA’s “Energy Star” rating. The certifications were alleged to have been given to homes in many instances where Skyetec had performed incomplete tests on homes, or had run no tests at all. In September 2023, Skyetec agreed to settle our claims for $2.35 million.

Press release: https://www.justice.gov/opa/pr/smc-systems-inc-pay-235-million-resolve-allegations-false-statements-relating-energy-star

United States ex rel. Graham, et al. v. Florida Cardiology, P.A., et al., Case no. 6:18cv1444 (M.D. Fla.) 

The United States intervened in this qui tam case in June 2022, and alleged that an Orlando area cardiology practice, Florida Cardiology, P.A., and 10 of its cardiologists―Sandeep Bajaj, Abbas Ali, Karan Reddy, Claudio Manubens, Milan Kothari, Saroj Tampira, Sayed Hussain, Raviprasad Subraya, Harish Patil, and Edwin Martinez―defrauded Medicare through a variety of schemes, including the submission of false claims for more interventional stints that were actually inserted into patients, claims for radiofrequency ablations that were not performed by the billing provider and in some instances that were not performed by a qualifying provider, and claims for services performed while the billing provider was outside of the country. In February 2023, the defendants agreed to settle all claims in the case in exchange for $2 million.   

Press Release: https://www.justice.gov/usao-mdfl/pr/florida-cardiology-pa-and-10-physicians-agree-pay-2-million-settle-false-claims-act​​​​​​​ 

Source: Office of United States Attorneys

Earlier today, in federal court in Brooklyn, Alan John Hanke, the sole member of IOLO Capital (IOLO), was arraigned before United States Magistrate Judge Joseph A. Marutollo on a nine-count indictment charging him with securities fraud conspiracy, wire fraud conspiracy, money laundering conspiracy, wire fraud, bankruptcy fraud, and filing a false bankruptcy declaration, in connection with schemes to induce investors to purchase speculative investments, to misappropriate the funds, and then to use the bankruptcy system to discharge his debts to his victims.  Hanke was arrested on January 25, 2024, in Cape Canaveral, Florida, as he was boarding an international cruise.  The defendant made his initial appearance on January 26, 2024 in United States District Court for the Middle District of Florida and was released on a $250,000 bond.

Breon Peace, United States Attorney for the Eastern District of New York, James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation (FBI), New York Field Office, and David Walker, Special Agent-in-Charge, FBI, Tampa Field Office, announced the arrest and charges.

“As alleged, the victims trusted Hanke with millions of dollars for what they were assured would be safe investments,” stated United States Attorney Peace.  “In reality, the defendant deceived the victims and used their money to enrich himself with vacations and a luxury car, and then sought to abuse bankruptcy proceedings to shield his ill-gotten gains.  This Office will hold the defendant accountable for his criminal acts of greed and dishonesty and seek justice for his victims.” 

Mr. Peace thanked the Office of the United States Trustee for the Northern District of Illinois and the United States Attorney’s Office for the Middle District of Florida for their assistance in the matter.  

As alleged in the indictment, between November 2018 and August 2021, Hanke persuaded numerous investors, often in meetings in New York City, to invest in IOLO or related Hanke-run companies.  Hanke promised investors high returns within short periods of time by investing in, among other things, “standby letters of credit,” “medium term notes,” and “high yield bonds.”  Hanke also assured investors that their investments would be insured against losses.  However, nearly all of the money that the victims invested with Hanke went to the defendant’s personal expenses, including cruises, airfare, hotels, gambling expenses, and a luxury car.  Hanke also paid co-conspirators and other investors with money that he wrongfully obtained during the scheme.  The indictment further alleges that Hanke filed a bankruptcy petition in June 2021 in Illinois, in which he sought to discharge the debts that he owed to his victims.  In the bankruptcy petition, Hanke disclosed that he was paid monthly Social Security and Disability checks, but did not disclose the millions of dollars of income he received from his victims.  Hanke also did not disclose the proceeds from the sale of an airplane, or that he used the proceeds for personal expenses, including gambling and repairs to a close relative’s home, as well as $180,000 that was withdrawn in cash. 

If convicted, Hanke faces a maximum sentence of 20 years’ incarceration on the wire fraud, wire fraud conspiracy, and money laundering conspiracy counts and five years’ imprisonment on the securities fraud conspiracy, bankruptcy fraud, and false bankruptcy declaration charges.

The charges in the indictment are allegations, and Hanke is presumed innocent unless and until proven guilty. 

The government’s case is being handled by the Office’s Business and Securities Fraud Unit.  Assistant United States Attorneys Nicholas J. Moscow and Matthew Skurnik are in charge of the prosecution, with assistance from Paralegal Specialist Madison Bates. 

The Defendant:

ALAN JOHN HANKE
Age: 50
Crystal Lake, Illinois

E.D.N.Y. Docket No. 24-CR-27 (RER)

Source: Office of United States Attorneys

A federal grand jury in San Diego returned a superseding indictment on Feb. 2, charging a California man with wire fraud, conspiracy to commit wire fraud, tax evasion, filing false tax returns, conspiracy to defraud the United States, conspiracy to commit money laundering and failing to file tax returns.  

According to the indictment, Leronce Suel was the majority owner of Rockstar Dough LLC and Chicken Feed LLC, both of which operated restaurants in the San Diego area. He allegedly conspired with his business partner to underreport over $1.7 million in gross receipts on Rockstar Dough LLC’s 2020 corporate tax return filed with the IRS. The indictment alleges that from March 2020 to June 2022, Suel and the business partner then used this false corporate tax return to qualify for the COVID-19-related Paycheck Protection Program and Restaurant Revitalization Funding loans. Suel also allegedly falsely certified on loan forgiveness applications that he spent the money his restaurants received from these programs only for payroll. The indictment charges that Suel and his co-conspirator made substantial cash withdrawals from their business bank accounts to launder the fraudulently obtained funds. As part of the conspiracy, Suel and his co-conspirator allegedly concealed more than $2.4 million in cash at their residence.

The indictment further charges that Suel failed to report income he received from his businesses, including millions of dollars in cash and personal expenses paid for by the businesses, such as the rent for his home. In 2023, Suel also allegedly filed original and amended tax returns for prior tax years that included false depreciable assets and business losses.

If convicted, Suel faces a maximum penalty of 30 years in prison for each count of wire fraud and conspiracy to commit wire fraud, 10 years in prison for each count of conspiracy to commit money laundering, five years in prison for tax evasion and conspiracy to defraud the United States, three years in prison for each count of filing false tax returns and one year in prison for each count of failing to file tax returns. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Tara K. McGrath for the Southern District of California made the announcement.

IRS Criminal Investigation is investigating the case.

Trial Attorney Julia Rugg of the Justice Department’s Tax Division and Assistant U.S. Attorney Christopher Beeler for the Southern District of California are prosecuting the case.

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

Source: Office of United States Attorneys

ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Jeffrey C. Boshek II, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, announced today that Leif Everett Hayman pled guilty to one count of use of interstate commerce facilities in the commission of murder-to-hire. Hayman, 33, of Las Cruces, will remain in custody pending sentencing, which has not been scheduled.

A federal grand jury indicted Hayman on July 20, 2022. According to publicly available court records, between April 10, 2022, and continuing through May 11, 2022, Hayman solicited a hitman to murder his girlfriend’s mother by submitting three service requests on the website “rentahitman.com.” In his first service request, Hayman stated that he wanted to “hurt” the victim and wrote “I want her gone now, too much that I don’t like about her she’s controlling my wife.” As part of these service requests, Hayman provided the website with the identity of the intended victim including the victim’s physical address and photographs of the victim and stated, “this is the target person if you don’t do it I will do it myself I’m already thinking about just doing it myself I want her gone now.” Following those three service requests, Hayman sent numerous follow-up emails to the website between April 20 and May 2, 2022. In those emails, Leif expressed that he was losing patience with how long the process was taking.

On May 5, 2022, an ATF agent, acting in an undercover capacity contacted Hayman. During the conversation, Hayman expressed that he wanted the victim “gone off the Earth.” The agent and Hayman discussed various ways to carry out the killing including the use of a gun, baseball bat, knives, and rocks. On May 6, 2022, Hayman followed up with the undercover agent via text message and provided him with the victim’s physical address and a photograph. On May 9, 2022, Hayman had a telephone conversation with the undercover agent. During that call, Hayman indicated to the agent that he lived with staff and that the undercover agent/hitman would also have to harm his caretaker in order for him to leave the home. Hayman ultimately agreed to pay the undercover agent/hitman approximately $200 to murder the victim.

On May 11, 2022, the undercover agent went to Hayman’s house under the auspices of picking him up to carry out the hit on the victim. When the agent showed up, Hayman emerged from the residence with his caretaker in tow. Hayman indicated to the agent that he wanted something done to the caretaker and stated to the agent “this is part of the deal.” The caretaker and Hayman began shoving each other and the undercover agent aborted the operation and drove away.

At sentencing, Hayman faces up to 10 years in prison.

The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case. Assistant U.S. Attorneys Maria Y. Armijo and Ry Ellison are prosecuting the case.

# # #

24-57

Source: Office of United States Attorneys

HOUSTON – Three men have been indicted on multiple crimes in relation to violent armed robberies of local restaurant chains, announced U.S. Attorney Alamdar S. Hamdani.

Christopher Djuan Roberts, 27, and Xavier Edward Jones, 28, both of Houston, are set to appear for their detention hearings at 10 a.m. before make their initial appearances before U.S. Magistrate Judge Peter Bray. Wesley James Thomas, 29, currently in custody in another jurisdiction, will make his initial appearance in Houston in the near future.

The indictment, returned Jan. 24, alleges interference with commerce by threat or force, brandishing of a firearm in relation to a crime of violence and felon in possession of a firearm.

In the early morning hours of Oct. 15, 2023, the three men allegedly robbed a Waffle House located at 635 Rankin Road. Immediately after the robbery, the trio proceeded to rob a Denny’s located at 11320 North Freeway, according to the charges. During both robberies, the men allegedly brandished handguns while taking money from Waffle House employees and both employees and customers of Denny’s.

Roberts and Thomas are both convicted felons and are prohibited from possessing a firearm per federal law.

If convicted of brandishing of a firearm in relation to a crime of violence, the men face up to life imprisonment while the interference with commerce by threat or force carries a possible sentence of up to 20 years. Additionally, Roberts and Thomas face up to 15 years in prison if convicted for being felons in possession of a firearm. All charges also carry a possible penalty of up to $250,000.

The Bureau of Alcohol, Tobacco and Firearms (ATF) through the collaborative efforts of the ATF Strike Force conducted the investigation along with the Harris County Sheriff’s Office and Houston Police Department. Assistant U.S. Attorney Brian J. Hrach is prosecuting the case.

An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.

Source: Office of United States Attorneys

Damian Williams, the United States Attorney for the Southern District of New York; Merrick B. Garland, the Attorney General of the United States; Jocelyn E. Strauber, the Commissioner of the New York City Department of Investigation (“DOI”); Ivan J. Arvelo, the Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”); Rae Oliver Davis, the Inspector General of the U.S. Department of Housing and Urban Development, Office of Inspector General (“HUD OIG”); and Jonathan Mellone, the Special Agent in Charge of the Northeast Region of the U.S. Department of Labor, Office of Inspector General (“DOL-OIG”), announced the unsealing of bribery and extortion charges against 70 current and former employees of the New York City Housing Authority (“NYCHA”).  66 of the 70 defendants were arrested this morning in New York, New Jersey, Connecticut, and North Carolina.  Defendants who were arrested in the New York area are scheduled to appear before U.S. Magistrate Judges Stewart D. Aaron, Sarah L. Cave, Valerie Figueredo, Sarah Netburn, Katharine H. Parker, Gary Stein, and Ona T. Wang in Manhattan federal court later today. 

U.S. Attorney Damian Williams said: “Instead of acting in the interests of NYCHA residents, the City of New York, or taxpayers, the 70 defendants charged today allegedly used their jobs at NYCHA to line their own pockets.  This action is the largest single-day bribery takedown in the history of the Justice Department.  NYCHA residents deserve better.  My Office is firmly committed to cleaning up the corruption that has plagued NYCHA for far too long so that its residents can be served with integrity and have the high-quality affordable homes that they deserve.  The culture of corruption at NYCHA ends today.”

Attorney General Merrick B. Garland said: “The Justice Department will prosecute to the fullest extent of the law those who abuse their positions in public service in order to enrich themselves.  The crimes alleged in this case are serious violations of the public trust, and I am grateful to the agents and our partners across government who worked on this case, and to the prosecutors in the Southern District of New York for their tireless efforts to root out corruption.” 

DOI Commissioner Jocelyn E. Strauber said: “As charged, these 70 current and former NYCHA supervisors and other staff used their positions of public trust and responsibility to pocket bribes in exchange for doling out no-bid contracts.  The extensive bribery and extortion alleged here calls for significant reforms to NYCHA’s no-bid contracting process, which DOI has recommended and NYCHA has accepted.  I thank the U.S. Attorney’s Office for the Southern District of New York and our federal law enforcement partners for their commitment to protect scarce public resources intended to maintain public housing, and to hold accountable public servants who abuse their authority, and NYCHA’s senior leadership for its cooperation in this important investigation.”

HSI Special Agent in Charge Ivan J. Arvelo said: “These 70 defendants are accused of demanding kickbacks and bribes for access to no-bid contracts and lucrative, under-the-table deals.  Make no mistake, this alleged pervasive corruption had the biggest impact on NYCHA residents themselves, who may have been cheated out of better services and programs.  I commend the outstanding work of HSI New York’s Document and Benefit Fraud Task Force for today’s historic operation.  As one of the largest investigative agencies, the public can rest assured: Homeland Security Investigations will pursue all avenues of justice for the people of this great city.”

HUD OIG Inspector General Rae Oliver Davis said: “The pay-to-play bribery schemes alleged in the complaints unsealed today waste millions of dollars and risk residents staying in unacceptable living conditions.  The alleged conduct identified during this investigation harms the effectiveness of housing programs that support more than 200,000 residents.  It also poses a significant risk to the integrity of the HUD rental assistance programs that support housing assistance in New York City and erodes the trust of NYCHA residents in HUD’s programs.  We will continue our work with the U.S. Attorney’s Office and our law enforcement partners to prevent and detect these and other schemes.”

DOL-OIG Special Agent in Charge Jonathan Mellone said: “An important part of our mission is to investigate corruption and fraud involving matters within the jurisdiction of the Office of Inspector General.  We are committed to working closely with our law enforcement partners to investigate those who exploit governmental programs and the American workers.”

According to the allegations in the Complaints and publicly filed documents in these cases:[1]

NYCHA is the largest public housing authority in the country, providing housing to 1 in 17 New Yorkers in 335 developments across the City and receiving over $1.5 billion in federal funding from the U.S. Department of Housing and Urban Development every year.  When repairs or construction work require the use of outside contractors, services must typically be purchased via a bidding process.  However, at all times relevant to the Complaints, when the value of a contract was under a certain threshold (up to $10,000), designated staff at NYCHA developments could hire a contractor of their choosing without soliciting multiple bids.  This “no-bid” process was faster than the general NYCHA procurement process, and selection of the contractor required approval of only the designated staff at the development where the work was to be performed. 

The defendants, all of whom were NYCHA employees during the time of the relevant conduct, demanded and received cash in exchange for NYCHA contracts by either requiring contractors to pay up front in order to be awarded the contracts or requiring payment after the contractor finished the work and needed a NYCHA employee to sign off on the completed job so the contractor could receive payment from NYCHA.  As alleged, the defendants typically demanded approximately 10% to 20% of the contract value—between $500 and $2,000 depending on the size of the contract—but some defendants demanded even higher amounts.  In total, these defendants demanded over $2 million in corrupt payments from contractors in exchange for awarding over $13 million worth of no-bid contracts.  The map below shows the developments affected by the alleged conduct:

If you believe you have information related to bribery, extortion, or any other illegal conduct by NYCHA employees, please contact OIGNYCHA@doi.nyc.gov or (212) 306-3356.  If you were involved in such conduct, please consider self-disclosing through the SDNY Whistleblower Pilot Program at USANYS.WBP@usdoj.gov.

*                *                *

The names of the defendants, the charges against them, their ages, and their cities and states of residence are set forth below. 

The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.

Mr. Williams praised the outstanding investigative work of DOI, HSI, HUD OIG, and DOL-OIG, which work together collaboratively as part of the HSI Document and Benefit Fraud Task Force, as well as the special agents and task force officers of the U.S. Attorney’s Office for the Southern District of New York.  Mr. Williams thanked the New York City Police Department and the U.S. Marshals Service for their assistance with today’s arrest operations.  Mr. Williams also expressed appreciation for the cooperation and support of NYCHA’s senior executive leadership and thanked NYCHA Federal Monitor Bart Schwartz for his assistance with the investigation.

These prosecutions are part of an Organized Crime Drug Enforcement Task Forces (“OCDETF”) operation.  OCDETF identifies, disrupts, and dismantles criminal organizations using a prosecutor-led, intelligence-driven, multi-agency approach.  Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

These cases are being handled by the Office’s Public Corruption Unit.  Assistant U.S. Attorneys Jerry J. Fang, Jacob R. Fiddelman, Meredith Foster, Catherine Ghosh, and Sheb Swett are in charge of the prosecutions.

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

Defendant	Age	Residence	Charges and Potential Maximum Prison Term
James Baez	58 years	Valley Stream, NY	Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years
Selwyn Barley	61 years	Brooklyn, NY	Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years
Gwendolyn Bell	38 years	Baldwin, NY	Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years
Nymiah Branch	44 years	Elmont, NY	Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years
Marc Buckner	54 years	Stroudsburg, PA	Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years
Patrick Butler	58 years	Brooklyn, NY	Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years
Roberto Cartagena	48 years	Union City, NJ	Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years
Vernon Chambers	45 years	Brooklyn, NY	Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years
Rigoberto Charriez, a/k/a “Ricky”	34 years	Toms River, NJ	Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years
Hector Colon	45 years	Bronx, NY	Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years
Craig Copney	55 years	Brooklyn, NY	Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years
Michael Davis	54 years	Groton, CT	Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years
Victor De Los Santos	54 years	Bushkill, PA	Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years
Mauricio Escobar	55 years	East Elmhurst, NY	Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years
Jose Espinal	57 years	Howard Beach, NY	Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years
Joseph Fuller	42 years	Brooklyn, NY	Conspiracy to Solicit and Receive a Bribe: 5 years Solicitation and Receipt of a Bribe: 10 years Conspiracy to Commit Extortion Under Color of Official Right:  20 years Extortion Under Color of Official Right: 20 years
Manuel Garcia	59 years	Lecanto, FL	Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years
Tuesdai Gaskin	57 years	Staten Island, NY	Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years
Corey Gilmore	45 years	Garnerville, NY	Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years
Lateisha Harley	48 years	Bronx, NY	Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years
Joy Harris	48 years	Bushkill, PA	Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years
Jose Hernandez	57 years	New York, NY	Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years
Veronica Hollman	47 years	Brooklyn, NY	Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years
Deshon Hopkins	47 years	Bethlehem, PA	Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years
Nena Huntley	36 years	Bronx, NY	Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years
Michael Johnson	58 years	Staten Island, NY	Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years
George Kemp	49 years	Irvington, NJ	Conspiracy to Solicit and Receive a Bribe: 5 years Solicitation and Receipt of a Bribe: 10 years Conspiracy to Commit Extortion Under Color of Official Right:  20 years Extortion Under Color of Official Right: 20 years
Jaime Lan, a/k/a “Jimmy”	57 years	Stewartsville, NJ	Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years
Dexter Lino	51 years	Rockaway Park, NY	Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years
Nirmal Lorick	58 years	South Richmond Hill, NY	Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years
Tara Lucas	50 years	Linden, NJ	Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years
Vincent Machado, a/k/a Vincent Arcelay	30 years	New York, NY	Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years
Marlon Mackey	51 years	Jamaica, NY	Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years
Danny Matos	48 years	Effort, PA	Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years
Nakia McCoy	49 years	Brooklyn, NY	Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years
Erik McCreary	55 years	Far Rockaway, NY	Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years
Henry McPhatter	44 years	Bronx, NY	Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years
Joacim Mendez	47 years	Milford, CT	Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years
Juan Mendez	52 years	Stroudsburg, PA	Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years
Juan Mercado	49 years	West Babylon, NY	Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years
James Miller	55 years	Stroudsburg, PA	Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years
Daniel Muniz	64 years	Long Island City, NY	Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years
Denise Newby-Bovian	54 years	New York, NY	Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years
Alexis Nieves	41 years	Stratford, CT	Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years
Raymond Nunez	56 years	Glendale, NY	Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years
Evelyn Ortiz	55 years	Freeport, NY	Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years
Brett Owens	49 years	New York, NY	Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years
Orlando Pardo	56 years	Maywood, NJ	Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years
Jorge Perez	54 years	Bronx, NY	Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years
Curtis Priester	58 years	Bronx, NY	Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years
Eddie Quetell	57 years	Philadelphia, PA	Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years
Carmen Rivera	53 years	Long Pond, PA	Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years
Jaime Rivera	50 years	Bronx, NY	Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years
John Rivera	56 years	Bronx, NY	Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years
Herbert Rosa	45 years	New York, NY	Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years
Dwarka Rupnarain	63 years	Middletown, NJ	Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years
Chrisie Salter	46 years	Brooklyn, NY	Conspiracy to Solicit and Receive a Bribe: 5 years Solicitation and Receipt of a Bribe: 10 years Conspiracy to Commit Extortion Under Color of Official Right:  20 years Extortion Under Color of Official Right: 20 years
Clarence Samuel	53 years	Irvington, NJ	Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years
Tanisha Sands	51 years	Brooklyn, NY	Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years
Carolyn Scott	58 years	East Stroudsburg, PA	Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years
Garth Small	55 years	Mount Vernon, NY	Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years
Charles Starks	57 years	Elmont, NY	Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years
Elizabeth Tapia	54 years	Pocono Summit, PA	Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years
Alex Tolozano	57 years	Maywood, NJ	Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years
Luis Torres	38 years	Bronx, NY	Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years
Segundo Torres	56 years	Blakeslee, PA	Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years
Frankie Villanueva	51 years	Bronx, NY	Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years
Lindsay Wade	53 years	Brooklyn, NY	Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years
Angela Williams	64 years	Fayetteville, NC	Conspiracy to Solicit and Receive a Bribe: 5 years Conspiracy to Commit Extortion Under Color of Official Right:  20 years Destruction of Evidence: 20 years False Statements: 5 years
Willie Williams	60 years	Staten Island, NY	Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years
Calvin Wright	52 years	Brooklyn, NY	Solicitation and Receipt of a Bribe: 10 years Extortion Under Color of Official Right: 20 years

Source: Office of United States Attorneys

Two individuals have been sentenced to a combined 20+ years in federal prison for trafficking fentanyl in the Fort Worth area, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.

First, Rhance Guerin, 27, was charged in August 2023 via criminal complaint and pleaded guilty in October to one count of conspiracy to possess of a controlled substance with intent to distribute. He was sentenced yesterday by U.S. District Judge Reed C. O’Connor to 108 months in prison.  

According to court documents in Mr. Guerin’s case, on August 2, 2023, based on information that Mr. Guerin was selling fentanyl pills, the Johnson County STOP Special Crimes Unit (STOP SCU) conducted an arrest and search warrant operation in Fort Worth, Texas resulting in the arrest of Mr. Guerin and the seizure of 425.05 grams of fentanyl, 3.923 kg of marijuana, 14.65 grams of cocaine, 253.90 grams of psylocibin, and 3 firearms. Mr. Guerin is a documented Crips gang member.

Second, Willie Bryant, 39, was charge in May 2023 via criminal complaint and pleaded guilty in October to one count of conspiracy to possess of a controlled substance with intent to distribute. He was sentenced on February 2, 2024 by U.S. District Judge Mark Pittman to 135 months in prison.

According to court documents in Mr. Bryant’s case, on May 25, 2023, a Crime Stoppers Tip was received that Bryant was distributing black tar heroin, cocaine, crack, fentanyl, China white heroin, Xanax, and ecstasy from a Fort Worth residence. Law Enforcement obtained a search warrant for the residence and located approximately 24 grams of methamphetamine, 15 grams of black tar heroin, 51 fentanyl pills, 5 grams of cocaine and 1.65 ounces of marijuana near the location where Mr. Bryant was located. A search of the bathroom revealed a large cutout in the wall behind a mirror that contained 10 firearms, drivers licenses, identification cards, bank cards and social security cards issued to 10 different individuals. A doctor’s prescription pad, two bricks of fentanyl, a brick of heroin, a clear plastic Tupperware container containing methamphetamine, two plastic containers containing ecstasy pills, two plastic containers containing black tar heroin, and a small plastic container with additional fentanyl powder were also located in the cutout.

Homeland Security Investigations conducted the investigations. Assistant U.S. Attorney Shawn Smith prosecuted the cases.

Source: Office of United States Attorneys

NEWS RELEASE SUMMARY—February 5, 2024

SAN DIEGO— Derek Neal Turfler of San Diego was sentenced in federal court today to 97 months in prison for his role in selling fentanyl pills to a 27-year-old woman who fatally overdosed on May 9, 2022.

According to his plea agreement, Turfler arranged a meeting to deliver fentanyl to the victim, Faithe Sioban Thogode, who died later that morning after using the fentanyl he provided. According to the government’s sentencing memorandum, the defendant was addicted to fentanyl, knew how deadly the drug was, and knew the consequences for selling the drug and causing another’s death, yet he sold her the drug anyway. 

Turfler also knew that the victim worked at a drug and alcohol treatment center, had just celebrated five years of sobriety, and was going through a drug relapse when he sold her the deadly pills. 

According to the sentencing memo, this was not the first time the defendant had seriously hurt someone due to fentanyl. In 2019, he was convicted in California state court of driving under the influence of fentanyl and causing great bodily harm and was on formal probation for that felony conviction at the time he sold the deadly pills to Thogode.

“Faithe Thogode is not a statistic. She was a loving daughter and a devoted friend to dozens of people who appeared in court today to show their lasting appreciation for her infectious laugh and kind heart,” said U.S. Attorney Tara McGrath. “The U.S. Attorney’s office is committed to our partnership with the DEA and the Overdose Response Team to hold accountable dealers—like this defendant—who deliver a fatal overdose.”

“Fentanyl kills and those who sell this lethal drug must be brought to justice,” said DEA Acting Special Agent in Charge Paul Abosamra.

Special Agents and Task Force Officers with the Drug Enforcement Administration’s Overdose Response Team (formerly known as Team 10) led the investigation into Thogode’s death. This case is the result of ongoing efforts by the U.S. Attorney’s Office, the Drug Enforcement Administration, the San Diego Police Department and the California Department of Health Care Services to investigate and prosecute the distribution of illegal drugs—fentanyl in particular—that results in overdose deaths.  The Drug Enforcement Administration created the Overdose Response Team as a response to the increase in overdose deaths in San Diego County.

This case was prosecuted by Assistant U.S. Attorney Patrick C. Swan.

DEFENDANT                                   Case Number: 23-cr-175-LL

Derek Neal Turfler                             Age: 29                                   San Diego, CA

SUMMARY OF CHARGES

Distribution of Fentanyl – Title 18, United States Code, Section 841(a)(1)

Maximum penalty: Twenty years in prison

AGENCIES

Drug Enforcement Administration

San Diego Police Department

State of California Department of Health Care Services