Category: MIL-OSI

Source: United States Department of Justice Criminal Division

United States Attorney for the Southern District of New York, Jay Clayton, announced that CHRISTIAN LUGO, a/k/a “Coco,” was sentenced today to 19 years in prison for LUGO’s leadership role in a racketeering conspiracy that used fraud and violent intimidation to run a tow truck and auto repair shop known as Certified Auto.  

Source: United States Department of Justice Criminal Division

COLUMBUS, Ga. – The last remaining defendant in a pandemic-related tax fraud investigation costing U.S. taxpayers millions has pleaded guilty.Christopher Upshaw, aka “Troub,” 26, of Columbus, pleaded guilty to one count of mail fraud on Feb. 4, and faces a maximum of 30 years in prison to be followed by three years of supervised release and a $1 million fine.

Source: United States Department of Justice Criminal Division

BOSTON – John Oliveira & Sons Stamp Concrete, Inc., a corporation doing business in East Freetown, Mass. pleaded guilty yesterday in federal court in Boston to willfully violating Occupational Safety and Health Administration (OSHA) safety standards in a 2023 incident that led to a worker’s death.

Source: United States Department of Justice Criminal Division

Greenbelt, Maryland – A Lexington Park, Maryland, man pled guilty in federal court today, to drug trafficking and weapons crimes. Dominick Mackall, 37, is charged with possessing firearms and ammunition as a felon and possession with intent to distribute fentanyl and cocaine.

Source: United States Department of Justice Criminal Division

John Calvin Harris, 29, a convicted felon residing in the District of Columbia, was sentenced today in U.S. District Court to 36 months in prison in connection with his illegal possession of a firearm and trafficking amphetamines and crack cocaine.

Source: United States Department of Justice Criminal Division

BOSTON – A New York man has been arrested and charged for allegedly conspiring to infiltrate email accounts of legitimate truck-load carriers, using the hacked accounts to book cargo with shippers and selling the items for illicit profit. The goods allegedly stolen include over 33,000 pounds of frozen snow crab, pallets of blueberries and more than $400,000 of designer cologne.

Source: United States Department of Justice Criminal Division

SALT LAKE CITY, Utah – A federal grand jury returned an indictment charging a Venezuelan national who was residing in the United States illegally with sex trafficking by force, fraud, or coercion after he allegedly threatened a commercial sex worker prior to transporting the alleged victim to Utah to continue doing commercial sex work under threat of force. 

Source: United States Department of Justice Criminal Division

The owner of a company that produces and sells renewable fuel and fuel credits pleaded guilty yesterday in U.S. District Court for the Southern District of Florida to conspiracy for his role in a scheme that generated over $7 million in fraudulent Environmental Protection Agency (EPA) renewable fuels credits and sought over $6 million in fraudulent tax credits connected to the purported production of biodiesel.

According to court documents, Christopher Burdett, 59, owned a biofuel company based in Fort Pierce, Florida, that claimed to turn various feedstocks into biodiesel. However, when reporting to the IRS and the EPA the number of gallons they produced, Burdett and his company vastly overstated their production volume to generate more credits. When auditors sought more information from the company, Burdett and general manager Royce Gillham, who was sentenced last year to 37 months in prison, provided false information about their fuel production and customers.

“The defendant’s fraud undermines the integrity of EPA’s Renewable Fuel Standard and hurts farmers and refiners who follow the law,” said Principal Deputy Assistant Attorney General Adam Gustafson of the Justice Department’s Environment and Natural Resources Division (ENRD). “This guilty plea is another example of the Justice Department’s broader efforts to hold those accountable, like Burdett and Gillham, who defraud American taxpayers.”

“The defendants compromised the core of a program designed to secure abundant renewable fuel. By claiming credit (RINs) for fuel they never produced or sold, the defendants not only defrauded American fuel producers and consumers but also compromised our energy security,” said Assistant Administrator Jeffrey A. Hall of EPA’s Office of Enforcement and Compliance Assurance. “Lying to the federal government and to others under federal programs for profit is an elemental federal crime and intolerable in our society.”

“This was not a paperwork error or a regulatory misunderstanding — it was fraud,” said U.S. Attorney Jason A. Reding Quiñones for the Southern District of Florida. “The defendant inflated production numbers to steal millions in fuel and tax credits, taking money straight from taxpayers. Working closely with our partners at EPA and IRS, we will continue to hold accountable anyone who lies, cheats, and tries to game federal programs for personal profit.”

“Fraudulent tax schemes erode trust in our tax system and harm every honest taxpayer,” said Ron Loecker, Special Agent in Charge of IRS Criminal Investigation, Florida Field Office. “Our mission is to ensure that those who attempt to exploit tax credits are identified and brought to justice, protecting the integrity of our nation’s tax laws.”

Burdett pleaded guilty to conspiring to commit wire fraud and to file false claims. He is scheduled to be sentenced in the coming months. The conspiracy count has a maximum penalty of five years in prison and a $250,000 fine. A federal district court judge will determine whether to accept the plea agreement after considering the U.S. Sentencing Guidelines and other statutory factors.

The EPA’s Criminal Investigation Division and IRS Criminal Investigations investigated the case.

Senior Trial Attorney Adam Cullman of ENRD and Assistant U.S. Attorney Daniel Funk for the Southern District of Florida are prosecuting this case.

ENRD is a member of the Department of Justice Trade Fraud Task Force, a cross-agency law enforcement effort that also involves the Criminal and Civil Divisions’ Fraud Sections, the Department of Homeland Security, and U.S. Attorney’s Offices nationwide. The Task Force was created to leverage all of the Department’s tools and authorities to prevent trade fraud that deprives the government of vital revenue, threatens critical domestic industries, undermines consumer confidence, and weakens national security. The Task Force is designed to pursue enforcement actions against parties who seek to evade tariffs and other duties, as well as smugglers who seek to import prohibited goods into the American economy. The Justice Department encourages whistleblowers to alert the government to credible allegations of fraud, including utilizing the qui tam provisions of the False Claims Act or through the Criminal Division’s Corporate Whistleblower Program at CorporateWhistleblower@usdoj.gov using the form available here.