MIL Security Engine-1

Source: US FBI

Stacy Margaritondo of Scotch Plains admitted to her role in embezzling more than approximately $350,000 from a Union County synagogue.

Source: US FBI

NEWARK, N.J. – An Elizabeth man was sentenced today to 60 months in prison for illegally possessing a firearm, U.S. Attorney John Giordano announced.

Stanley Claiborne, 28, of Elizabeth, New Jersey, previously pleaded guilty before U.S. District Judge Evelyn Padin to an Indictment charging him with possession of a firearm by a convicted felon. Judge Padin imposed the sentence in Newark federal court.   

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

On the morning of July 14, 2022, members of the United States Marshals Service apprehended Claiborne near Market and Broad Streets in downtown Newark based on two unrelated arrest warrants.  Claiborne was in possession of a loaded gun at the time of his arrest. Claiborne was previously convicted of unlawful possession of a handgun in New Jersey Superior Court, among other felony convictions, and is prohibited from possessing firearms and ammunition under federal law.

In addition to the prison term, Judge Padin sentenced Claiborne to 3 years of supervised release.

“This case is an excellent example of state and federal authorities partnering together to aggressively combat illegal gun possession in New Jersey” 

U.S. Attorney John Giordano

“The arrest of Stanley Claiborne and prosecution for possessing an illegal firearm is a testament to the U.S. Marshals Service and U.S. Attorney’s Office commitment to justice and safety for our communities throughout the state,” said Juan Mattos Jr., U.S. Marshal for the District of New Jersey.

U.S. Attorney John Giordano credited special agents of the Federal Bureau of Investigation (FBI) Newark Field Office, under the direction of Acting Special Agent in Charge Terence G. Reilly, the United States Marshals Service (USMS), under the direction of Marshal Juan Mattos Jr., and the Newark Police Department, under the direction of Public Safety Director Emanuel Miranda with the investigation leading to today’s sentencing.

The investigation was also conducted as part of the USMS’s New York/New Jersey Regional Fugitive Task Force (NY/NJ RFTF). The NY/NJ RFTF was formed in 2002 and has made an extraordinary impact on the investigation and apprehension of the region’s most dangerous and violent fugitives.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

This case is also part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).

The government is represented by Assistant U.S. Attorneys Clara Kim and Thomas S. Kearney of the Special Prosecutions Division in Newark.

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Defense counsel: Lorraine Gauli-Rufo, Verona, New Jersey

Source: US FBI

WASHINGTON—Rushan Lavar Reed, 47, and Celeste Nicole Reed, 28, both of Las Vegas, Nevada, were sentenced today in U.S. District Court to 51 months and 37 months in federal prison, respectively, for participating in a long-term sophisticated drug trafficking conspiracy that illegally distributed “pharmacy grade- not homemade pressed pills” nationwide across seven online darknet markets.

The sentences were announced by U.S. Attorney Edward R. Martin, Inspector in Charge Damon E. Wood of the U.S. Postal Inspection Service Washington Division, Inspector in Charge Glen Henderson of the U.S. Postal Inspection Service Phoenix Division, FBI Acting Special Agent in Charge Jeremy Schwartz of the Las Vegas Field Office, and FBI Special Agent in Charge Sean Ryan of the Washington Field Office Criminal and Cyber Division.

Rushan Reed, aka “Double R,” and Celeste Reed, aka “Calileone,” each pleaded guilty October 22, 2024, to conspiracy to distribute oxycodone, hydrocodone, and amphetamine. In addition to the prison terms, U.S. District Court Judge Carl J. Nichols ordered the couple to serve three years of supervised release.

According to court documents, for six years the married couple operated an online storefront called “MrsFeelGood” to illegally distribute a variety of narcotics across the United States, including the District of Columbia. They used darknet markets that included Monopoly, Versus, ASAP, AlphaBay, Wall Street, Archetyp, Bohemia, Empire, Dream, and White House. In addition to oxycodone, hydrocodone, and amphetamines, they also sold and distributed MDMA, codeine, Vyvanse, Dilaudid, and marijuana. Operating on the darkweb made it possible for the Reeds to hide their identities, hide the location of their computers, and hide their illegal sales. In addition, they used cryptocurrency to launder their money so that the illegal proceeds of their drug trafficking would be difficult to trace.

On October 11, 2023, law enforcement executed arrest warrants at the couple’s Las Vegas home and arrested them both. Officers recovered, among other things: multiple pills in prescription bottles, packaging materials; gloves; black Ziploc bags; and empty prescription pill bottles with the names of the defendants and other uncharged coconspirators. Officers also recovered an assortment of electronic devices and an AR-15 firearm. The laptop was set up to use an operating system designed to access the darknet and protect against surveillance.

This case was investigated by the FBI Washington Field Office, the FBI Las Vegas Field Office, the USPIS Washington Division, and USPIS Phoenix Division.

The matter is being prosecuted by Assistant United States Attorney Peter V. Roman with valuable assistance provided by Special Assistant U.S. Attorney Isabelle Sun, former Special Assistant U.S. Attorney Gary Crosby, and former Assistant U.S. Attorney Andy Wang.

Source: US FBI

RENO – A Sacramento, Calif., resident was sentenced yesterday by United States District Judge Miranda M. Du to 15 years in prison to be followed by five years of supervised release for committing two armed robberies of financial institutions.

Devon Jones, 32, pleaded guilty to one-count each of interference with commerce by robbery, bank robbery, and discharging a firearm during and in relation to a crime of violence.

According to court documents and admissions made by Jones, on January 24, 2022, he robbed a money lending business in Reno. During the robbery, he pointed a semi-automatic 9mm pistol at an employee and demanded money. Jones then fired a round and fled the scene with cash. Later, on January 27, 2022, Jones robbed a bank in Carson City. After he entered the bank, he started yelling and fired a shot. Then, he approached a teller and demanded money. Jones fired another shot after noticing alarm lights flashing. He ordered all the employees to the ground and fired another shot before leaving the bank with the stolen cash.

United States Attorney Jason M. Frierson for the District of Nevada and Special Agent in Charge Spencer L. Evans for the FBI made the announcement.

The case was investigated by the FBI. Assistant United States Attorney Megan Rachow prosecuted the case.

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Source: US FBI

LAS VEGAS — A Nevada man was sentenced yesterday to 51 months in prison and was ordered to pay $6.1 million in restitution stemming from his role in a years-long fraud scheme.

According to court documents, Mykalai Kontilai, formerly Michael Contile, 55, of Las Vegas, facilitated an investment fraud scheme involving his company, Collector’s Coffee Inc., doing business as Collector’s Café (Collector’s Coffee), a company incorporated in California and headquartered in Las Vegas. From 2012 to 2018, Kontilai made or caused to be made numerous materially false and misleading representations to induce victims to invest in Collector’s Coffee — a company he claimed was on the verge of launching an online auction house for third-party owned collectibles, such as Hollywood and sport memorabilia. As a result of Kontilai’s numerous false and misleading statements, including that investor funds would be used for legitimate business purposes, that Kontilai had personally invested millions of his own money in the company, and that he did not take a salary, Kontilai successfully raised approximately $23 million from Collector’s Coffee investors. However, rather than using the proceeds as represented, Kontilai stole approximately $6.1 million for his own personal use, including for the purchase of luxury goods, apartments, and vehicles.

The U.S. Securities and Exchange Commission (SEC) began investigating Kontilai for misappropriating investor funds in or around 2017. Kontilai obstructed the investigation by forging documents that he caused to be transmitted to the SEC and lied under oath to the SEC. Kontilai was charged in connection with this conduct both in the present case on June 3, 2020, and in a separate case in the District of Colorado on March 10, 2020. While under investigation but prior to charging, Kontilai fled to Russia and was ultimately arrested on an Interpol Red Notice in Germany in 2023. He was extradited back to the United States to face the pending charges in May.

On Nov. 21, Kontilai pleaded guilty to one count of wire fraud. As part of the plea agreement in this case, the government has moved to dismiss the Colorado case.

Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Jason M. Frierson for the District of Nevada; Special Agent in Charge Spencer L. Evans of the FBI Las Vegas Field Office; and Special Agent in Charge Carissa Messick, IRS Criminal Investigation (IRS-CI)’s Phoenix Field Office made the announcement.

FBI and IRS-CI investigated the case. The Justice Department’s Office of International Affairs provided significant assistance in securing the extradition from Germany of Kontilai.

Trial Attorneys Brandon Burkart and Sara Hallmark of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Jessica Oliva for the District of Nevada prosecuted this case. Former Fraud Section Trial Attorney Emily Scruggs provided valuable assistance.

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Source: US FBI

LAS VEGAS – A Las Vegas resident was sentenced today by United States District Judge Gloria M. Navarro to 51 months in prison to be followed by three years of supervised release for orchestrating a scheme to defraud loan lenders and cause more than $7 million in losses.

According to court documents, from February 1, 2017 to October 1, 2018, Brandon David Sattler, 47, devised a scheme to defraud and obtain loans from three individual lenders. As part of the scheme, Sattler made false representations that his company needed loans to fulfill renovation contracts that he had with one hotel and casino and claimed to hold with other hotels and casinos. Sattler altered information from his bank to show his bank account held more than it actually did in order to influence the three individual lenders to loan money to his company. After obtaining the loans, Sattler made misrepresentations in order to extend the maturity date of the loans and delay the deadline for repayment. In total, Sattler caused a loss of more than $7 million.

Sattler pleaded guilty to one count of wire fraud. He has two prior convictions for fraud in California and Texas.

United States Attorney Jason M. Frierson for the District of Nevada and Special Agent in Charge Spencer L. Evans for the FBI made the announcement.

This case was investigated by the FBI, and Assistant United States Attorney Daniel Schiess prosecuted the case.

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Source: US FBI

LAS VEGAS – A Nevada man pleaded guilty yesterday to one count of wire fraud stemming from his role in a years-long fraud scheme, during which he stole more than $6.1 million in victim investor funds.

According to court documents, Mykalai Kontilai, formerly Michael Contile, 55, of Las Vegas, facilitated an investment fraud scheme involving his company, Collector’s Coffee Inc., doing business as Collector’s Café (Collector’s Coffee), a company incorporated in California and headquartered in Las Vegas. From 2012 to 2018, Kontilai made or caused to be made numerous materially false and misleading representations to induce victims to invest in Collector’s Coffee — a company he claimed was on the verge of launching an online auction house for third-party owned collectibles, such as Hollywood and sport memorabilia. As a result of Kontilai’s numerous false and misleading statements, including that investor funds would be used for legitimate business purposes, that Kontilai had personally invested millions of his own money in the company, and that he did not take a salary, Kontilai successfully raised approximately $23 million from Collector’s Coffee investors. However, rather than using the proceeds as represented, Kontilai stole approximately $6.1 million for his own personal use, including for the purchase of luxury goods, apartments, and vehicles.

The U.S. Securities and Exchange Commission (SEC) began investigating Kontilai for misappropriating investor funds in or around 2017. Kontilai obstructed the investigation by forging documents that he caused to be transmitted to the SEC and lied under oath to the SEC. Kontilai was charged in connection with this conduct both in the present case on June 3, 2020, and in a separate case in the District of Colorado on March 10, 2020. While under investigation but prior to charging, Kontilai fled to Russia and was ultimately arrested on an Interpol Red Notice in Germany in 2023. He was extradited back to the United States to face the pending charges in May. As part of the plea agreement in this case, the government will move to dismiss the Colorado case at sentencing.

Kontilai pleaded guilty to one count of wire fraud. He is scheduled to be sentenced on Dec. 4 and faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Jason M. Frierson for the District of Nevada; Special Agent in Charge Spencer L. Evans of the FBI Las Vegas Field Office; and Special Agent in Charge Carissa Messick of IRS Criminal Investigation (IRS-CI) made the announcement.

The FBI and IRS-CI are investigating the case. The Justice Department’s Office of International Affairs provided significant assistance in securing the extradition from Germany of Kontilai.

Trial Attorneys Brandon Burkart and Sara Hallmark of the Criminal Division’s Fraud Section (FRD) and Assistant U.S. Attorney Jessica Oliva for the District of Nevada prosecuted this case. Former FRD Trial Attorney Emily Scruggs provided valuable assistance. 

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Source: US FBI

ST. LOUIS – Two men were convicted Wednesday of all charges related to their laundering of money in the St. Louis area for the Sinaloa drug cartel.

Carl Von Garrett, 54, of St. Charles, Missouri and Tobiyyah Israel, 38, of Ohio, were each found guilty by a jury in U.S. District Court in St. Louis of one count of conspiracy to commit money laundering and one count of money laundering. Von Garrett was also found guilty of one additional count of money laundering. The trial began on May 12.

Two others have already pleaded guilty and been sentenced in the case. Luis Miguel Hernandez, 38, of Phoenix, pleaded guilty to one count of conspiracy to commit money laundering and two counts of money laundering and Antonio Jones, 51, of Florissant, Missouri, pleaded guilty to two counts of money laundering. Hernandez was sentenced in January to 87 months in prison and Jones was sentenced to 37 months in prison.

As part of his plea agreement, Hernandez admitted being driven by Von Garrett to a meeting with an undercover Drug Enforcement Administration task force officer in St. Louis on March 1, 2021, to deliver $100,095 in drug proceeds. Hernandez then arranged a series of meetings between Jones and the task force officer. On March 8, 2021, Jones handed over $100,000. Jones delivered $150,030 on March 17 and $100,000 on March 31. On April 8, Jones delivered $109,740 and $100,100 on May 18. On May 25, 2021, Jones delivered $100,100.

During closing arguments Tuesday, Assistant U.S. Attorney Jim Delworth told jurors that Von Garrett was the “focal point” of the conspiracy and Israel was a courier, like Jones. On April 14, Israel picked up $221, 020 from Von Garrett. Von Garrett was stopped by investigators, who found six phones and a ledger that contained dates and amounts of money roughly corresponding to cash drops, Delworth said. Israel told investigators that he’d been promised $1,000 to pick up the cash, and that he’d done so once before.

The money drops continued. On May 18, Jones delivered $110,100 and $100,100 one week later.

Both men are scheduled to be sentenced on August 21.

The Drug Enforcement Administration, IRS-Criminal Investigation, the FBI, the St. Louis County Police, the Bridgeton Police Department, the St. Louis Metropolitan Police Department, and the St. Charles County Police Department investigated the case. Assistant U.S. Attorneys Jim Delworth and Ricardo Dixon are prosecuting the case.

This prosecution is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

Source: US FBI

ST. LOUIS – Five Romanian nationals have admitted installing skimming devices on St. Louis area ATMs to harvest bank account information from customers and commit fraud.

Mihai Vlaicu, 48, and Mihai Florin Marinescu, 37, pleaded guilty Wednesday in U.S. District Courtin St. Louis to one count of conspiracy to commit bank fraud.

Laurentiu Miguel Ivan, 33, pleaded guilty to the same charge in March and Nelu Nae, 37, and Venera Isabelle Dumitru, 28, pleaded guilty to the charge in April. A sixth person indicted in the case, Ianus Nita, 53, has not yet been arrested.

In their plea agreements, the five admit stealing bank account information via skimming devices and then using, or attempting to use, that information to withdraw money from ATMs.

Around January of 2024, Vlaicu and Marinescu installed skimming devices on at least two bank ATMs, one in Clayton and one in Frontenac. They obtained the information of at least six victims, and then used cloned cards to try and withdraw cash.

On five days in April, Dumitru and Ivan used account information from two other victims to withdraw cash from ATMs in St. Louis. Ivan obtained $1,421 and Dumitru obtained $1,070.50.

On April 25, Dumitru and Ivan tried to withdraw cash from a St. Louis County ATM using an account number belonging to another victim. On April 30, Vlaicu tried to withdraw money from a St. Louis County ATM using the banking information of six victims.

On May 2, Marinescu unsuccessfully tried to install a skimming device on an ATM in south St. Louis County. Nae retrieved the device the next day.

On May 9, Marinescu installed a skimming device on an ATM in Wildwood. On May 11, Nita withdrew cash belonging to two victims from a St. Louis County ATM.

On May 28, Marinescu and Nae installed a skimming device on an ATM in St. Louis, which was located and removed by law enforcement before Nita and Vlaicu could retrieve it.

The conspirators were using an Airbnb in St. Louis County as a base for their criminal activity. Investigators found a laptop computer there containing hundreds of videos of customers entering their PINs when they used an ATM outfitted with a skimming device. They also found skimming devices, installation tools, a large amount of cash and numerous gift cards at the rented residence.

Ivan is scheduled to be sentenced June 25, Dumitru on July 10, Nae on July 23 and Marinescu and Vlaicu on August 20. The charge carries a penalty of up to 30 years in prison, a $1 million fine or both prison and a fine.

Ivan, Dumitru, Marinescu are not legally in the United States.

The FBI, the St. Louis Metropolitan Police Department, the Webster Groves Police Department, the Clayton Police Department and the Frontenac Police Department investigated the case with assistance from the St. Louis County Police Department. Assistant U.S. Attorney Gwen Carroll is prosecuting the case.

Source: US FBI

A Texas rheumatologist was sentenced to 10 years in prison and three years of supervised release for perpetrating a health care fraud scheme involving over $118 million in false claims and the payment of over $28 million by insurers as a result of him falsely diagnosing patients with chronic illnesses to bill for tests and treatments that the patients did not need. Jorge Zamora-Quezada M.D., 68, of Mission, also falsified patient records to support the false diagnoses after receiving a federal grand jury subpoena. Following a 25-day trial, Zamora-Quezada was convicted of one count of conspiracy to commit health care fraud, seven counts of health care fraud, and one count of conspiracy to obstruct justice. In addition to his prison term, Zamora-Quezada was ordered to forfeit $28,245,454, including 13 real estate properties, a jet, and a Maserati GranTurismo.

According to the evidence presented at trial, Zamora-Quezada falsely diagnosed his patients with rheumatoid arthritis and administered toxic medications in order to defraud Medicare, Medicaid, TRICARE, and Blue Cross Blue Shield. The fraudulent diagnoses made the defendant’s patients believe that they had a life-long, incurable condition that required regular treatment at his offices. After falsely diagnosing his patients, Zamora-Quezada administered unnecessary treatments and ordered unnecessary testing on them, including a variety of injections, infusions, x-rays, MRIs, and other procedures—all with potentially harmful and even deadly side effects. To receive payment for these expensive services, Zamora-Quezada fabricated medical records and lied about the patients’ condition to insurers.

“Dr. Zamora-Quezada funded his luxurious lifestyle for two decades by traumatizing his patients, abusing his employees, lying to insurers, and stealing taxpayer money,” said Matthew R. Galeotti, Head of the Justice Department’s Criminal Division. “His depraved conduct represents a profound betrayal of trust toward vulnerable patients who depend on care and integrity from their doctors. Today’s sentence is not just a punishment—it’s a warning. Medical professionals who harm Americans for personal enrichment will be aggressively pursued and held accountable to protect our citizens and the public fisc.”

“Through the false diagnoses and excessive false billing, Dr. Zamora-Quezada abused both patient trust and public resources,” said Special Agent in Charge Jason E. Meadows of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “It is imperative to investigate and address this form of fraud — not only to protect vulnerable individuals from harm but to uphold the integrity of the federal health care system and safeguard the use of public funds.”

“The FBI is dedicated to working with all of our partners to address health care fraud,” said Special Agent in Charge Aaron Tapp of the FBI’s San Antonio Field Office. “This case was not only a concern to us because of the financial loss — the physical and emotional harm suffered by the patients and their families was alarming and profound. We hope this significant sentence will help bring closure to the many victims in this case.”

Evidence at trial established that Dr. Zamora-Quezada falsely diagnosed patients in order to defraud insurers and enrich himself. Other rheumatologists in the Rio Grande Valley testified at trial that they saw hundreds of patients previously diagnosed with rheumatoid arthritis by Zamora-Quezada who did not have the condition, prompting one physician to explain that for “most” it was “obvious that the patient did not have rheumatoid arthritis.” Zamora-Quezada’s false diagnoses and powerful medications caused debilitating side effects on his patients, including strokes, necrosis of the jawbone, hair loss, liver damage, and pain so severe that basic tasks of everyday life, such as bathing, cooking, and driving, became difficult. As one patient testified, “Constantly being in bed and being unable to get up from bed alone, and being pumped with medication, I didn’t feel like my life had any meaning.” One mother described how she felt that her child served as a “lab rat,” and others described abandoning plans for college or feeling like they were “living a life in the body of an elderly person.”

Former employees detailed how Zamora-Quezada imposed strict quotas for procedures, leading to a climate of fear. Zamora-Quezada referred to himself as the “eminencia” — or eminence, threw a paperweight at an employee who failed to generate enough unnecessary procedures, hired employees he could manipulate because they were on J-1 visas and their immigration status could be jeopardized if they lost their jobs, and fired those who challenged him. Testimony also revealed Zamora-Quezada’s obstruction of insurer audits by fabricating missing patient files, including by taking ultrasounds of employees and using those images as documentation in the patient records. Testimony at trial established that Zamora-Quezada told employees to “aparecer” the missing records — “to make them appear.” Former employees also recounted being sent to a dilapidated barn to attempt to retrieve records. There, files were saturated with feces and urine, rodents, and termites that infested not only the records but also the structure.

Zamora-Quezada’s patient file storage facility

Zamora-Quezada used proceeds from his crimes to fund a lavish lifestyle, replete with real estate properties across the country and in Mexico, a jet, and a Maserati.

One of Zamora-Quezada’s luxury properties

Zamora-Quezada’s jet

FBI, HHS-OIG, Texas HHS-OIG, and the Texas Medicaid Fraud Control Unit investigated the case, with assistance from the Defense Criminal Investigative Service.

Principal Assistant Chief Jacob Foster and Assistant Chiefs Rebecca Yuan and Emily Gurskis of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Laura Garcia for the Southern District of Texas prosecuted the case. Assistant U.S. Attorney Kristine Rollinson handled asset forfeiture. Fraud Section Assistant Chief Kevin Lowell initially handled the prosecution. The prosecution team thanks the Fraud Section’s Data Analytics Team, whose work initiated the investigation, Victim Witness Specialist Olga De La Rosa of the U.S. Attorney’s Office for the Southern District of Texas, and the Texas Department of Insurance.

The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,800 defendants who collectively have billed federal health care programs and private insurers more than $30 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.