Northern District of Alabama
Press releases recorded for this federal judicial district.
Jefferson County Man Sentenced to 6 ½ Years in Prison for Possession of Child PornographyRead the Press Release
BIRMINGHAM, Ala. – A federal judge today sentenced a Jefferson County man on child exploitation charges, announced United States Attorney Prim F. Escalona and Federal Bureau of Investigation Special Agent in Charge Johnnie Sharp, Jr.
United States District Judge Madeline Hughes Haikala sentenced James Curtis Brasher, 49, of Warrior, to 78 months in prison followed by 15 years of supervised release for possession of child pornography. Brasher was also ordered to pay $69,000.00 in restitution to the victims. Brasher pleaded guilty to this charge in November 2020.
According to the plea agreement, Brasher accessed the Darknet through the use of the Tor application to view and obtain child pornography. A forensic examination of the digital devices located at Brasher’s residence revealed over 58,000 images of child pornography, including images of children under the age of 12 years old, and child erotica. This conviction will require Brasher to register as a sex offender in accordance with the Sex Offender Registration and Notification Act (SORNA).
FBI Birmingham's Child Exploitation Human Trafficking Task Force (CEHTTF) investigated the case, with the assistance of the Alabama Law Enforcement Agency and Warrior Police Department. Assistant United States Attorney R. Leann White prosecuted the case.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched by the Department of Justice in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ 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, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Childersburg Woman Sentenced to Two Years in Prison for Wire FraudRead the Press Release
BIRMINGHAM, Ala. – A Childersburg woman was sentenced today for engaging in a wire fraud scheme, announced U.S. Attorney Prim F. Escalona, and Federal Bureau of Investigation Special Agent in Charge Johnnie Sharp, Jr.
U.S. District Judge Annemarie Axon sentenced Tonya Bird Swain, 43, to 24 months in prison followed by three years of supervised release for wire fraud. Swain was also ordered to pay restitution in the amount of $532,724.48 to the victim. Swain pleaded guilty to the charges in January.
According to the plea agreement, Swain embezzled over $500,000 from her former employer, Recycle USA. Swain was employed as the Controller and/or Accounts Manager. She was responsible for ordering, receiving, and disbursing cash for company operations, and for making accounting entries in QuickBooks. On multiple occasions between 2015 and 2017, Swain ordered funds to be delivered via Loomis to Recycle USA. Swain manipulated QuickBooks entries and did not put all the cash in the vault, but instead kept the cash and used it to pay personal expenses.
“This defendant violated the trust bestowed upon her by her employer,” U.S. Attorney Escalona said. “This sentence sends a message that such schemes to defraud will result in federal prosecution and prison time.”
“Swain violated her employer’s trust when she defrauded them and went to great lengths to conceal her criminal activity,” SAC Sharp said. “This behavior is a serious federal crime and simply won’t be tolerated.”
The FBI investigated the case, which Assistant U.S. Attorney Robin Beardsley Mark prosecuted.
Armed Career Criminal Sentenced to 200 Months in PrisonRead the Press Release
BIRMINGHAM, Ala. – A federal judge yesterday sentenced an Armed Career Criminal to 200 months in prison, announced U.S. Attorney Prim F. Escalona and Bureau of Alcohol, Tobacco, Firearms, and Explosives Special Agent in Charge Mickey French.
U.S. District Judge Abdul K. Kallon sentenced Preston Chyenne Johnson, 38, for being a felon in possession of a firearm. Johnson, who was prohibited from having a firearm because of prior felony convictions, unlawfully possessed an Anderson AM-15 5.56mm rifle on October 31, 2019. Johnson pleaded guilty to the charge in January.
ATF investigated the case along with the Alabama Law Enforcement Agency and several other local law enforcement agencies. Assistant U.S. Attorney Robert J. Becher, Sr. prosecuted the case.
U.S. Attorney Prim F. Escalona Recognizes National Police WeekRead the Press Release
BIRMINGHAM, Ala. — In honor of National Police Week, U.S. Attorney Prim F. Escalona recognizes the service and sacrifice of federal, state, and local law enforcement. This year, the week is observed Sunday, May 9 through Saturday, May 15, 2021.
“This week is a time to honor our law enforcement officers who have made the ultimate sacrifice in service to our nation,” said Attorney General Merrick Garland. “I am constantly inspired by the extraordinary courage and dedication with which members of law enforcement act each day, putting their lives on the line to make our communities safer. To members of law enforcement and your families: we know that not a single day, nor a single week, is enough to recognize your service and sacrifice. On behalf of the entire Department of Justice, you have our unwavering support and eternal gratitude.”
“During Police Week, we honor the brave men and women in law enforcement for their selfless sacrifice to protect the citizens of the Northern District of Alabama, especially the six officers in our district who gave their lives in the line of duty,” said U.S. Attorney Escalona. “I extend my sincere thanks and gratitude for your courage and dedication.”
In 1962, President Kennedy issued the first proclamation for Peace Officers Memorial Day and National Police Week to remember and honor law enforcement officers for their service and sacrifices. Peace Officers Memorial Day, which every year falls on May 15, specifically honors law enforcement officers killed or disabled in the line of duty.
Each year, during National Police Week, our nation celebrates the contributions of law enforcement officers from around the country, recognizing their hard work, dedication, loyalty, and commitment to keeping our communities safe. This year the COVID-19 pandemic has highlighted law enforcement officers’ courage and unwavering devotion to the communities that they have sworn to serve. Based on data submitted to and analyzed by the National Law Enforcement Officer Memorial Fund (NLEOMF), of the law enforcement officers who died nationwide in the line of duty in 2020, nearly 60 percent succumbed to COVID-19. Additionally, according to statistics reported by the Federal Bureau of Investigation (FBI) through the Law Enforcement Officer Killed and Assaulted (LEOKA) Program, 46 law enforcement officers died as a result of felonious acts and 47 died in accidents in 2020. LEOKA statistics can be found on FBI’s Crime Data Explorer website.
The names of the 394 fallen officers who have been added in 2020 to the wall at the National Law Enforcement Officer Memorial will be read on Thursday, May 13, 2021, during a Virtual Candlelight Vigil, which will be livestreamed to the public at 8:00 pm EDT. The Police Week in-person public events, originally scheduled for May, have been rescheduled due to ongoing COVID-19 concerns to October 13-17, 2021. An in-person Candlelight Vigil event is scheduled for October 14, 2021.
Those who wish to view the Virtual Candlelight Vigil on May 13, 2021, can watch on the NLEOMF YouTube channel found at https://www.youtube.com/user/TheNLEOMF. The FOP’s Roll Call of Heroes can be viewed at www.fop.net. To view the schedule of virtual Police Week events in May, please view NLEOMF’s Police Week Flyer.
To learn more about National Police Week in-person events scheduled for October, please visit www.policeweek.org.
Bessemer Couple Sentenced for Producing Fake Prescription DrugsRead the Press Release
BIRMINGHAM, Ala. – A Bessemer couple was sentenced today for possessing pill presses used to make fake prescription drugs, announced U.S. Attorney Prim F. Escalona and U.S. Food and Drug Administration (FDA) Office of Criminal Investigations, Miami Field Office Special Agent in Charge Justin C. Fielder.
U.S. District Court Judge Annemarie Axon sentenced Earnest Lee Coleman, 44, and Tashana Lynn Sims, 38, husband and wife. Coleman was sentenced to 78 months in prison and Sims was sentenced to 36 months’ probation for their roles in the offenses. Coleman pleaded guilty to possessing punches, dies, and plates with the intent to defraud or mislead, being a felon in possession of a firearm, possessing controlled substances with the intent to distribute them, holding for sale and dispensing a counterfeit drug, and adulteration of a drug. Sims pleaded guilty to illegally possessing punches, dies, and plates. The couple pleaded guilty in February.
“The defendants used dangerous drugs to make counterfeit pills that looked like legitimate prescription drugs, misleading potential buyers and exposing them to unacceptable risks.” U.S. Attorney Escalona said. “My office will continue to prosecute those who take advantage of the opioid crisis to prey on vulnerable victims.”
“Counterfeiting unapproved and potentially dangerous opioids poses a serious threat to the U.S. public health and cannot be tolerated,” said Special Agent in Charge Justin C. Fielder, FDA Office of Criminal Investigations Miami Field Office. “The FDA is fully committed to doing our part to disrupt and dismantle illegal prescription drug manufacturing and distribution networks.”
According to their plea agreements, in April 2018, an international mail package from China was intercepted en route to 3300 Berkley Avenue, Bessemer, Alabama, the home of Coleman and Sims. The package contained two metal dies and a metal mold designed to be used to produce pressed pills. Authorities searched the Bessemer home, finding controlled substances, multiple firearms, and a pill press, powders and dyes used to make fake drugs. In October 2019, authorities again searched the home, finding an additional pill press, punch and die, and firearms. Coleman and Sims ran a counterfeit prescription pill operation out of their home in Bessemer in which Coleman used acetaminophen, fentanyl, heroin, and paverine to make pills similar in appearance to legitimate pharmaceuticals with markings such as “Lortab”, “Adderall”, “Soma”, “Xanax”, “Ecstasy”, “Oxycodone”, and “OxyContin.” Coleman sold or traded these pills to obtain other drugs.
The FDA investigated the case, which Assistant U.S. Attorneys Austin Shutt and Jonathan Cross prosecuted.
Alabama Doctor Sentenced for Conspiracy to Distribute a Controlled SubstanceRead the Press Release
An Alabama doctor and her husband were sentenced Tuesday to 52 and 30 months in prison, respectively, for prescribing and dispensing controlled substances without a legitimate medical purpose and outside the course of professional practice.
Elizabeth Korcz, M.D., 48, and Matthew Korcz, 47, both of Hoover, pleaded guilty to conspiracy to distribute and dispense a controlled substance on Dec. 16, 2020. According to court documents, the defendants admitted to providing dangerous doses of hydrocodone to patients who were not examined by a medical professional and while Dr. Korcz was absent from their clinic. The defendants owned and operated Hoover Alt MD, a purported medical clinic with an in-house dispensary. The defendants did not employ registered nurses or other qualified medical professionals, despite Dr. Korcz’s absences. The defendants admitted to allowing hydrocodone to be dispensed from their in-house dispensary while Dr. Korcz was out of state on multiple occasions.
“Doctors who abuse their position of trust to unlawfully prescribe opioids for profit are fueling our country’s epidemic,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “The devastation to our communities caused by that betrayal of trust requires just punishment, as the court imposed.”
“It is disheartening when trusted medical professionals are engaged in the diversion of controlled substances,” said Special Agent in Charge Brad L. Byerley of the Drug Enforcement Administration (DEA). “Doctors have an obligation to ensure that prescription medications are getting into the hands of legitimate patients. This investigation is the result of DEA’s continued commitment to hold accountable those who participate in illegally dispensing controlled substances in our communities.”
“Health care professionals should be trusted and not exploit their profession to line their pockets,” said Special Agent in Charge Johnnie Sharp Jr of the FBI’s Birmingham Field Office. “I applaud the sentence handed down that holds the Korczs accountable for their greed, fraud and deceit. The FBI and our law enforcement partners will continue to root out fraud in the health care industry at every level and protect the public from their illegal and potentially deadly schemes.”
The DEA and FBI investigated the case.
Trial Attorney Devon Helfmeyer of the Criminal Division’s Fraud Section and Assistant U.S. Attorney J.B. Ward of the Northern District of Alabama prosecuted the case.
The Fraud Section leads the Appalachian Regional Prescription Opioid (ARPO) Strike Force. Since its inception in October 2018, the ARPO Strike Force, which operates in 10 districts, has charged more than 85 defendants who are collectively responsible for distributing more than 65 million pills. Since its inception in March 2007, the Health Care Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for approximately $19 billion. In addition, the Health and Human Services (HHS) Centers for Medicare & Medicaid Services, working in conjunction with the HHS-Office of Inspector General, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Birmingham Man Sentenced to Prison for Illegal Possession of Firearms and Body ArmorRead the Press Release
BIRMINGHAM, Ala. – A federal judge this week sentenced a Birmingham man to 108 months in prison, announced U.S. Attorney Prim F. Escalona and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Mickey French.
U.S. District Judge Annemarie Carney Axon sentenced Eilone Austin Bland, 28, of Birmingham, to a total of 108 months in prison on two counts of being a felon in possession of a firearm and one count of being a violent felon in possession of body armor. Bland pleaded guilty to these charges in January 2021.
In June 2020, a federal grand jury indicted Bland for being a felon in possession of a firearm. That charge arose from a March 5, 2019 traffic stop by Birmingham police officers. The officers found a Taurus 9-millimeter pistol in Bland’s pocket. Bland had a 2016 state court conviction for attempted murder, which barred him from possessing firearms.
In July 2020, when the United States Deputy Marshals arrested Bland at his home, they found a .40 caliber Glock pistol and a body armor vest in his bedroom. A superseding indictment was filed charging him for possessing the second pistol and the body armor.
The ATF investigated the cases with the assistance of the Birmingham Police Department and the United States Marshals Service. Assistant U.S. Attorney Alan Baty prosecuted.
Tuscaloosa Man Sentenced to 72 Monts in Prison for Illegal Possession of a Machine GunRead the Press Release
BIRMINGHAM, Ala. – A federal judge this week sentenced a Tuscaloosa man for being a felon in possession of a machine gun, announced U.S. Attorney Prim F. Escalona and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Mickey French.
U.S. District Judge Annemarie Carney Axon sentenced Devontay Jerrod Hutt, 25, to 72 months in prison for being a felon in possession of a firearm and 72 months in prison for possessing a machine gun. Each count to be served concurrently with each other. Hutt pleaded guilty to these charges in January.
According to court documents, on December 31, 2019, Hutt had an encounter with Tuscaloosa police officers at a restaurant in Tuscaloosa. Officers received a tip that Hutt possessed a firearm. When officers arrived at the restaurant, Hutt and another individual fled, eluding officers during a foot chase. Inspecting Hutt’s vehicle from the outside, officers could see two pistols and suspected drugs in plain view in the front seat. Officers searched the car and recovered a pistol that qualified as a machine gun, a second AR-style pistol, high capacity magazines, pills, and marijuana.
“Prosecuting felons who illegally possess weapons is a priority of my office,” U.S. Attorney Escalona said. “We commend the Tuscaloosa Police Department on their work to prevent violent crime and for the quick actions of the officers in this case.”
“Removing the criminal element that used a firearm to facilitate violent crimes is a priority of ATF,” SAC French stated. “ATF’s partnerships leveraged NIBIN technology that will have a lasting impact on the community.”
The ATF along with the Tuscaloosa Police Department investigated the case, which Assistant U.S. Attorney Alan Baty prosecuted.
Multiple Defendants Sentenced in a Major Compounding Pharmacy Fraud ConspiracyRead the Press Release
TUSCALOOSA, Ala. – This week, Chief U.S. District Judge L. Scott Coogler sentenced two dozen defendants who were part of a major conspiracy to commit health care fraud, announced U.S. Attorney Prim F. Escalona, Federal Bureau of Investigation Special Agent in Charge Johnnie Sharp, Jr., U.S. Department of Health and Human Services, Office of Inspector General, Special Agent in Charge Derrick L. Jackson, Defense Criminal Investigative Service Special Agent in Charge Cynthia Bruce, United States Postal Inspector in Charge, Houston Division, Adrian Gonzalez, and Internal Revenue Service Criminal Investigation Special Agent in Charge James E. Dorsey.
The defendants sentenced included an array of company executives and managers, a prescriber, billers, and sales representatives. Among those sentenced this week were:
John Jeremy Adams, 40, of Panama City Beach, Florida, the president and CEO of Global Compounding Pharmacy (Global), who directed the fraud and made millions from it, was sentenced to 170 months in prison on one count of conspiring to commit health care fraud and mail fraud, 19 counts of health care fraud, one count of conspiring to pay kickbacks to a prescriber, and 8 counts of spending the proceeds of health care fraud. Adams pleaded guilty to the charges in May 2020.
James A Mays, III, 45, of Winfield, Ala., was sentenced to 102 months in prison on one count of conspiring to commit health care fraud and mail fraud, twelve counts of health care fraud, and three counts of money laundering based on spending the proceeds of health care fraud. Mays was the pharmacist who handled Global’s compounding operation and made millions during the conspiracy. Mays pleaded guilty to the charges in February 2021.
Jessica Linton, 38, of Clearwater, Florida, was sentenced to 132 months in prison on one count of conspiracy, thirteen counts of health care fraud, three counts of mail fraud, and seven counts of aggravated identity theft. Linton was the manager in charge of Global’s billing center; she altered and added prescriptions, billed insurers for medically unnecessary prescriptions, and helped hide the fraud from auditors. In February 2021, a federal jury convicted Linton of these charges.
John Gladden, 51, of Tallahassee, Florida, was sentenced to 64 months in prison on one count of conspiracy, six counts of health care fraud, one count of mail fraud, and one count of aggravated identity theft. Gladden, a district manager for Global during most of 2015, directed his sales representatives to get medically unnecessary prescriptions for themselves and their family members and profited from the scheme. In February 2021, a federal jury convicted Gladden of these charges.
Phillip Marks, 52, of St. Augustine, Florida, was sentenced to 36 months in prison on one count of conspiracy and twelve counts of health care fraud. Marks served as a manager of the sales managers and, in 2015, pressured subordinates to get unnecessary prescriptions for themselves and their family members. Marks made more than $400,000 during his time at Global. He pleaded guilty to the charges in September 2018.
“The health care fraud conspiracy and scheme executed by these defendants caused health insurance companies to lose millions of dollars,” U.S. Attorney Escalona said. “These defendants manipulated the system for their own personal gain without regard for patient need or medical necessity. I applaud our prosecutors and law enforcement partners for their commitment and hard work on this complex investigation and prosecution.”
The sentencings came after an extensive investigation into a prescription drug billing scheme involving a Haleyville, Ala.-based pharmacy, Northside Pharmacy, doing business as Global Compounding Pharmacy. More than two dozen defendants pleaded guilty to charges, and two additional defendants went to trial in February 2021.
From 2013 to 2016, this large-scale conspiracy billed insurers for massive quantities of medically unnecessary prescription drugs. The scheme involved directing employees to get medically unnecessary drugs for themselves, family members, and friends, changing prescriptions to add non-prescribed drugs because insurance would pay for them, automatically refilling prescriptions regardless of patient need, routinely waiving and discounting co-pays to induce patients to get and keep medically unnecessary drugs, and billing for drugs without patients’ knowledge. When prescription drug administrators attempted to police this conduct, the conspirators hid their fraud and obstructed detection efforts—including by lying to auditors and diverting their billing through affiliated pharmacies. The scheme targeted multiple health insurance plans, including the pharmacy’s Blue Cross Blue Shield of Alabama plan, as well as plans providing health insurance to the elderly, disabled, members of the military, and veterans—Medicare, TRICARE, and CHAMPVA, among others.
The scheme resulted in pharmacy benefit managers paying Global nearly $50 million in claims in just a two-year period. Global received more than $13 million from prescriptions written by prescribers who were either paid cash to write them or whose spouses worked as Global sales reps. One nurse practitioner who wrote prescriptions was paid kickbacks in paper bags filled with thousands of dollars in cash and left in her car. Global also received over $8.4 million for prescriptions Global employees got for themselves—including from doctors they had never seen as patients. In some cases, Global was paid as much as $30,000 or more for a single tube of compounded cream.
The FBI, HHS-OIG, DCIS, USPIS, and IRS-CI investigated the cases. Assistant U.S. Attorneys J.B. Ward, Edward Canter, and Don Long prosecuted the case. The U.S. Department of Veterans Affairs Office of Inspector General, Criminal Investigations Division, aided in the investigation.
Warrior Man Indicted for Making a ThreatRead the Press Release
BIRMINGHAM, Ala. – A federal grand jury returned a one-count indictment yesterday charging a Warrior man with engaging in conduct with the intent to convey false and misleading information regarding the use of a weapon of mass destruction, announced U.S. Attorney Prim F. Escalona and FBI Special Agent in Charge Johnnie Sharp, Jr.
According to the indictment, Brian Steven Vest, 50, of Warrior, falsely reported that he had placed a bomb by a statue in Birmingham’s Linn Park on June 1, 2020.
If convicted, Vest faces a maximum of five years in prison, and a $250,000 fine.
The FBI, Birmingham Police Department, and Jefferson County District Attorney’s Office worked in partnership investigating the case. Assistant U.S. Attorney Henry Cornelius is prosecuting the case.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Two Huntsville Men Charged with Multiple Robberies in North AlabamaRead the Press Release
HUNTSVILLE, Ala. – A federal grand jury returned a 24-count indictment yesterday, charging two Huntsville men with committing a string of armed robberies across North Alabama, announced U.S. Attorney Prim F. Escalona and FBI Special Agent in Charge Johnnie Sharp, Jr.
According to the indictment, between August and October of 2019, Terrence Warren Jackson, 43, and Deonte Marquish Eddins, 25, committed 11 armed robberies at businesses across North Alabama. Jackson and Eddins robbed Family Dollar, Dollar General, MetroPCS, Verizon Wireless, and two GameStop stores. In a span of six days in October 2019, Jackson robbed Verizon Wireless, Marco’s Pizza, MetroPCS, and two GameStop stores. The indictment also charges the pair with brandishing a firearm and being felons in possession of a firearm.
The Hobbs Act prohibits actual or attempted robbery that affects interstate commerce and that involves the taking of property from another person by means of actual or threatened force or violence. If convicted of a Hobbs Act Robbery, the defendants face a maximum of 20 years in prison. If convicted of brandishing a firearm during and in relation to a violent crime, the defendants face a mandatory minimum of seven years in prison per count, to be served consecutively to any other sentence imposed for the crime. If convicted of being a felon in possession of a firearm, the defendants face a maximum of ten years in prison.
The FBI Violent Crimes Task Force, assisted by local law enforcement, investigated the case. Assistant U.S. Attorney Mary Stuart Burrell is prosecuting the case.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Two Former Chick-fil-A Employees Indicted for Scheme to Steal FundsRead the Press Release
BIRMINGHAM, Ala. – A federal grand jury yesterday indicted two former employees of a Birmingham-area Chick-fil-A restaurant franchise, alleging that they conspired to defraud their former employer, announced U.S. Attorney Prim F. Escalona and U.S. Secret Service Special Agent in Charge Patrick M. Davis.
A 16-count indictment filed in U.S. District Court charges Larry James Black, Jr., 37, of Center Point, the former Director of Hospitality at Chick-fil-A Five Points, and Joshua Daniel Powell, 40, of Moody, a former Manager at the same location, with conspiracy to commit wire fraud and wire fraud. Black was also charged with bank fraud and misuse of a social security number.
According to the indictment, Black and Powell devised and implemented a scheme to divert hundreds of thousands of dollars in customer payments between April 2018 and January 2020. Black and Powell used fraudulent email and digital payment accounts to trick customers and divert payments for catering orders and other restaurant sales to bank accounts under their personal control.
Before and during this period, Black is also alleged to have made a series of fraudulent representations to financial institutions. In January 2020, for example, Black applied for a mortgage loan. In connection with his loan application, Black forged payroll records and made misrepresentations regarding his income from the Chick-fil-A franchise. Black also provided a fictitious social security number to banks and credit unions where he held accounts. Ultimately, proceeds from the scheme to defraud Chick-fil-A Five Points were deposited into accounts at these same financial institutions.
If convicted, Black and Powell face a maximum sentence of 20 years in prison for conspiracy to commit wire fraud, and a maximum of 20 years in prison for wire fraud. Black also faces a maximum of 30 years in prison for bank fraud, and a maximum of five years in prison for misuse of a social security number.
The U.S. Secret Service Cyber Fraud Task Force investigated the case, which Assistant U.S. Attorney Edward J. Canter is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Mississippi Man Indicted for Wire Fraud and Health Care FraudRead the Press Release
BIRMINGHAM, Ala. – A federal grand jury returned an eight-count indictment yesterday charging a Mississippi man with wire fraud and health care fraud and with conspiracy to commit wire and health care fraud, announced U.S. Attorney Prim F. Escalona and Department of Health and Human Services, Office of Inspector General, Special Agent in Charge Derrick Jackson.
According to the indictment, in October 2016, Phillip Anthony Minga, 55, of Amory, MS, was excluded from providing services to Medicare participants. Minga also signed an agreement which provided that Medicare would not pay claims submitted by anyone who employed Minga in a management or administrative role. The indictment charges, however, that Minga and others concealed his ownership interests and managerial roles in multiple pharmacies and caused the submission of millions of dollars in claims for reimbursement to Medicare, in violation of his exclusion agreement.
If convicted, Minga faces a maximum of twenty years in prison for wire fraud and ten years in prison for health care fraud, and a $250,000 fine.
The Department of Health and Human Services, Office of Inspector General, investigated the case along with the State of Mississippi’s Office of the Attorney General and the State of Alabama’s State Board of Pharmacy. Assistant U.S. Attorneys Lloyd Peeples and Don Long are prosecuting the case.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
DEA Announces 20th National Prescription Drug Take Back DayRead the Press Release
BIRMINGHAM, Ala. – United States Attorney Prim F. Escalona announces support of DEA’s 20th National Prescription Drug Take Back Day to be held on April 24, 2021. Take Back Day is a bi-annual event that aims to provide a safe, convenient, and responsible means of disposing of prescription drugs, while also educating the public about the potential for abuse of medications.
DEA’s October 2020 Take Back Day brought in a record-high amount of expired, unused prescription medications, with the public turning in close to 500 tons of unwanted drugs. Over the 10-year span of Take Back Day, DEA has brought in more than 6,800 tons of prescription drugs.
According to the Centers for Disease Control and Prevention, the U.S. has seen an increase in overdose deaths during the COVID-19 pandemic, with 87,200 Americans dying as a result of a drug overdose in a one-year period (Sept. 1, 2019 to Sept. 1, 2020), the most ever recorded in a 12-month period. The increase in drug overdose deaths appeared to begin prior to the COVID-19 health emergency, accelerating significantly during the first months of the pandemic.
“Let’s do our part to protect our loved ones by disposing of those unused, unwanted or expired prescription drugs in our possession,” U.S. Attorney Escalona said. “It is the easiest and most effective thing we can do to combat the national opioid epidemic.”
“The rate of prescription drug abuse in the United States is alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs, said DEA Special Agent in Charge Brad Byerley. “Unfortunately, these prescription drugs are most often obtained from friends and family, who leave them in home medicine cabinets. Helping people dispose of potentially harmful prescription drugs is just one way DEA is working to reduce the addiction rates and overdose deaths plaguing this country. Please do your part to keep these drugs off the streets and help spread awareness in your community.”
The public can drop off potentially dangerous prescription medications at collection sites which will adhere to local COVID-19 guidelines and regulations in order to maintain the safety of all participants and local law enforcement.
DEA and its partners will collect tablets, capsules, patches, and other solid forms of prescription drugs. Liquids (including intravenous solutions), syringes and other sharp objects, and illegal drugs will not be accepted. DEA will continue to accept vaping devices and cartridges at its drop off locations provided lithium batteries are removed.
Learn more about the event at www.deatakeback.com, or by calling 800-882-9539.
Birmingham Man Sentenced to 65 Years in Prison on Child Pornography ChargesRead the Press Release
BIRMINGHAM, Ala. – A federal judge today sentenced a man on child pornography charges, announced U.S. Attorney Prim F. Escalona, Federal Bureau of Investigation Special Agent in Charge Johnnie Sharp, Jr., and U.S. Immigration and Customs Enforcement Homeland Security Investigations Special Agent in Charge Katrina W. Berger.
U.S. District Court Judge Abdul K. Kallon sentenced Guillermo Martin Lopez, 31, to 65 years in prison followed by 10 years of supervised release. Lopez pleaded guilty in December 2020 to two counts of production of child pornography and one count of possession of child pornography. This conviction will require him to register as a sex offender in accordance with the Sex Offender Registration and Notification Act (SORNA).
According to the plea agreement, in November 2019, the Internet Crimes Against Children Task Force (ICAC) received a cyber-tip from the National Center for Missing and Exploited Children (NCMEC) that included information received by Omegle – a free online chat website that allows users to socialize with others without the need to register. In September 2019, Omegle reported that a live streaming video containing child pornography was uploaded to an online Omegle account. Upon further investigation, a state search warrant was obtained for the residence of Lopez and electronic devices were seized by law enforcement. A forensic review of Lopez’s Apple MacBook laptop revealed at least 13 images and 6 videos of child pornography produced by Lopez.
“There is no more worthy cause than protecting children from predators seeking to exploit them,” said U.S. Attorney Escalona. “The success of cases like this come from the strong partnerships with our federal, state, and local law enforcement. We have one common goal – to pursue justice for child victims.”
“Lopez deserves every day of this sentence and I'm proud of the work of my agents and our partners to bring him to justice,” said FBI SAC Sharp.
“This sentence cannot restore the innocence that this predator stole, but it will ensure that he is not able to continue to produce and distribute this filth,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “Cases like this show our unyielding resolve to identify, arrest and prosecute those involved in this despicable crime.”
Federal Bureau of Investigation, Special Victims Unit/ ICAC Task Force investigated the case, along with U.S. Immigration and Customs Enforcement Homeland Security Investigations, the Alabama Law Enforcement Agency, and Birmingham Police Department. Assistant U.S. Attorneys R. Leann White and Lloyd C. Peeples, III prosecuted the case.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. 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, and to identify and rescue victims. For more information about Project Safe Childhood, please visit Project Safe Childhood
Fultondale Doctor, Demopolis Pharmacist, Tuscaloosa Sales Representative Sentenced in Health Care Fraud ConspiracyRead the Press Release
BIRMINGHAM, Ala. – A Tuscaloosa pharmaceutical sales representative was sentenced yesterday after pleading guilty to conspiracy to commit mail fraud in a scheme designed to fraudulently bill health insurance plans, announced U.S. Attorney Prim F. Escalona, DEA Assistant Special Agent in Charge Towanda R. Thorne-James, and FBI Special Agent in Charge Johnnie Sharp, Jr.
U.S. District Court Judge Annemarie C. Axon sentenced Brett Taft, 47, of Tuscaloosa, Ala., to 12 months in prison and 6 months of home detention and ordered him to pay a fine of $1,000 and restitution of approximately $2.2 million. Taft was the owner and sole member of the sales company BTAFT Medical, LLC. He pleaded guilty to one count of conspiracy to commit mail fraud related to a June 2019 Superseding Indictment involving Paul Roberts, M.D., of Fultondale, and pharmacist Stanley Reeves of Demopolis.
“This case is another unfortunate example of some in the medical field putting greed over patients’ welfare,” said U.S. Attorney Escalona. “We thank the many medical professionals who place patient health and ethical integrity first and will continue to prosecute those who instead choose to engage in criminal conduct for financial gain.”
“The FBI and our partners will continue to work tirelessly to ensure public and private health care dollars are used as intended, to promote the health and safety of all Americans and safeguard continued access to critical health care services,” FBI SAC Sharp said.
According to his plea agreement, Taft, along with Reeves, owner of F&F Drugs in Demopolis, and Roberts, a physician and co-owner of Southeast Urgent Care in Fultondale, participated in a scheme to fraudulently bill health insurance plans for medically unnecessary compounded drugs. To induce Roberts to issue prescriptions for these medically unnecessary drugs, Taft provided Roberts with pre-written prescription forms for the compounded drug recipes. Roberts then issued the prescriptions, sometimes without patients’ knowledge, and sent them to F&F Drugs, which then filled the prescriptions and billed the cost to health insurance plans. Reeves would then pay Taft a portion of the billing proceeds from these insurance plans, with Taft using some of those proceeds to make payments to Roberts. In addition, as part of the conspiracy and to induce patients to accept these medically unnecessary drugs, F&F Drugs would waive patient co-pays in violation of the health insurance plan rules. To maximize profit from each prescription, the co-defendants agreed that F&F Drugs would automatically refill the compounded drugs that Roberts referred regardless of whether patients needed those drugs. Between April 2012 and February 2014, F&F Drugs billed health insurance plans approximately $2.2 million for medically unnecessary compounded drugs issued as part of the conspiracy.
Roberts and Reeves previously pleaded guilty and were both sentenced in September 2020. Roberts pleaded guilty to 12 counts of prescribing controlled substances without a legitimate medical purpose, two counts of health care fraud conspiracy, and two counts of participating in a health care fraud scheme. Roberts stipulated to a 72-month sentence and agreed to surrender his Alabama medical license. He also agreed to pay a fine of $100,000 and restitution of $2.2 million.
Reeves pleaded guilty to one count of conspiring to commit the above-described compounded drug health care fraud scheme. According to his plea agreement, between April 2012 and February 2014, F&F Drugs billed health insurance plans approximately $10.5 million for medically unnecessary compounded drugs issued by various doctors, including those issued under the scheme involving Taft and Roberts. Reeves received a 38-month sentence and agreed to surrender his pharmacist license to the Alabama Board of Pharmacy. He also agreed to pay a fine of $100,000, restitution of $10.5 million, and forfeiture of $900,000 with $300,000 due on the date he was sentenced.
FBI and DEA investigated the cases, which Assistant U.S. Attorneys Lloyd C. Peeples, Austin Shutt, Kristen Osborne, and former AUSA Chinelo Dike-Minor prosecuted.
Federal Defendant Sentenced for Conspiracy to Distribute Methamphetamine and HeroinRead the Press Release
BIRMINGHAM, Ala. – A federal judge on Thursday sentenced a Newville man for conspiracy to possess and distribute methamphetamine and heroin, announced U.S. Attorney Prim F. Escalona and Homeland Security Investigations Special Agent in Charge Katrina W. Berger.
Chief U.S. District Judge L. Scott Coogler sentenced Tavara Gissendanner, 36, of Newville, to 40 years in prison and 20 years of supervised release. Gissendanner was found guilty by a federal jury in August 2020.
“This sentence serves as a warning to every individual involved in dealing illegal drugs,” Escalona said. “My office remains committed to working with our law enforcement partners to bring justice to those who sell dangerous and illegal drugs in our communities.”
“Gissendanner’s sentencing strikes a major blow to this drug trafficking operation that distributed dangerous drugs, including heroin and methamphetamine, throughout Alabama,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “The great relationships and collaboration we have with our law enforcement partners was the key to successfully removing this poison from our streets.”
Evidence at trial proved that in early 2019 Gissendanner directed a network of associates in trafficking quantities of narcotics – including heroin and methamphetamine – and money across the state. Gissendanner orchestrated the drug trafficking while in Alabama Department of Corrections custody, in part by using contraband cellular phones he obtained in prison. Beginning in early 2019, investigators intercepted shipments of drugs to associates of Gissendanner in the Birmingham area. In one instance, investigators replaced seized heroin with mock narcotics before arresting the recipient of the drugs in Bessemer. The intercepted heroin was worth an estimated $150,000. Additional seizures in the case included quantities of methamphetamine, cocaine, heroin-fentanyl mixtures, and cash.
The investigation was conducted through the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state, and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, which are primarily responsible for the nation’s illegal drug supply. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.
Homeland Security Investigations and the Alabama Law Enforcement Agency investigated the case with the assistance of the Alabama Department of Corrections. Assistant U.S. Attorneys Austin Shutt and Allison Garnett prosecuted the case.
Man and Woman Charged with Attempting and Conspiring to Provide Material Support to ISISRead the Press Release
Note: A full copy of the complaint can be found
here.WASHINGTON – A New York man and Alabama woman were arrested yesterday at a seaport in Newark, New Jersey on criminal charges related to their alleged attempt to provide material support to a designated foreign terrorist organization, the Islamic State of Iraq and Al-Sham (ISIS).
According to court documents, James Bradley, 20, of the Bronx, New York, and Arwa Muthana, 29, of Hoover, Alabama, are ISIS supporters who attempted to travel to the Middle East to join and fight for ISIS. As alleged in the complaint, Bradley has expressed his support for ISIS and his desire to join the group overseas or commit a terrorist attack in the United States. Bradley and his wife, who has also expressed her support for ISIS, were arrested while attempting to travel together by cargo ship to the Middle East to join and fight for ISIS. Bradley and Muthana were presented before U.S. Magistrate Judge Debra Freeman in Manhattan federal court today.
“As alleged, the defendants planned to travel overseas to join and support ISIS,” said Assistant Attorney General John C. Demers for the Justice Department’s National Security Division. “The threat of terrorism at home and abroad remains, and the National Security Division is committed to holding accountable those who would provide material support to foreign terrorist organizations. I want to thank the agents, analysts, and prosecutors who are responsible for this case.”
“James Bradley allegedly pledged devout allegiance to ISIS, expressing his desire to ‘fight among the rank[s] for the Islamic State.’ Suspecting he may be unable to travel, Bradley instead allegedly discussed conducting terrorist attacks along with his wife, Arwa Muthana, also an ISIS supporter, against the US Military Academy at West Point or another area university where Bradley knew military recruits to be training,” said U.S. Attorney Audrey Strauss for the Southern District of New York. “But in an alleged attempt to evade the watchful eye of law enforcement, the two ultimately planned to travel to Yemen by cargo ship to fulfill their wish to fight with the terrorist organization. As Bradley suspected, he and his wife were indeed on law enforcement’s radar – he was confiding in and planning their journey for terror with an undercover officer – and their plans to wage attacks against the United States have been thwarted.”
“Today’s announcement underscores the commitment of the FBI and its JTTF partners that anyone who chooses to turn their backs on the United States of America in support of ISIS and its violent agenda will be held accountable,” said Assistant Director Jill Sanborn of the FBI’s Counterterrorism Division. “The charges alleged that both defendants were attempting to travel overseas to join and fight for ISIS and one even expressed desire to commit a terrorist attack on U.S. soil. In doing so, both are accused of betraying this country and will now face the consequences of these actions in the U.S. justice system.”
“Like others who followed a similar path before them, Mr. Bradley and his wife Mrs. Muthana have now learned their alleged attempts to fight on behalf of ISIS, inside the U.S. or overseas, instead begin with two pairs of FBI JTTF handcuffs and court appearances in lower Manhattan,” said Assistant Director-in-Charge William F. Sweeney Jr. for the FBI New York Field Office. “Our goal is to interdict violence before it occurs, and once again I commend the work of the FBI-NYPD Joint Terrorism Task Force personnel who work 24/7 to keep their fellow citizens safe."
“James Bradley and his wife Arwa Muthana’s alleged determination to join ISIS and carry out terrorism against Americans overseas or here in New York is well documented in this multi-year investigation. It is yet another example of the effectiveness of the undercover operatives, detectives and analysts of the NYPD’s Intelligence Bureau working in seamless coordination with our partners at the FBI and the Joint Terrorism Task Force,” said Commissioner Dermot Shea of the New York Police Department.
Bradley and Muthana are charged with one count of attempting to provide material support to a designated foreign terrorist organization, which carries a maximum sentence of 20 years in prison; and one count of conspiring to provide material support to a designated foreign terrorist organization, which also carries a maximum sentence 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.
Since at least 2019, Bradley has expressed violent extremist views, including his desire to support ISIS by traveling overseas to join the group or committing a terrorist attack in the United States. In May 2020, Bradley stated to an undercover law enforcement officer (UC-1) that he believed that ISIS may be good for Muslims because ISIS was establishing a caliphate. Bradley further expressed his desire to conduct a terrorist attack in the United States and discussed potentially seeking to attack the United States Military Academy in West Point, New York. Bradley explained that if he could not leave the United States because he might be on a terrorism watch list, he would do “something” in the United States instead, referring to carrying out an attack.
In June 2020, Bradley stated to UC-1 that his plan to attack a military base was something he really wanted to do and that it would be his contribution to the cause of jihad. In January 2021, Bradley mentioned to UC-1 another university in New York State where he frequently saw Reserve Officer Training Corps (ROTC) cadets training. Bradley stated that he could use his truck in an attack, and that he along with Muthana could take all of the ROTC cadets “out.”
In late January 2021, Bradley married Muthana in an Islamic marriage ceremony. Beginning before and continuing after their marriage, Bradley and Muthana discussed, planned, and ultimately attempted to travel to the Middle East together in order to join and fight with ISIS. In or about early March 2021, Bradley traveled from New York to Alabama to visit Muthana. Bradley and Muthana subsequently traveled together to New York in order to begin their journey to join ISIS. Thereafter, Bradley raised the possibility of UC-1 helping Bradley and Muthana get on a cargo ship to travel to Asia or Africa for the purpose of ultimately joining and fighting for ISIS. UC-1 subsequently put Bradley in contact with a purported associate who could assist Bradley in making arrangements for Bradley and Muthana to travel to the Middle East via cargo ship. In reality, the purported facilitator was a law enforcement officer acting in an undercover capacity (UC-2).
Later in March 2021, Bradley met with UC-2 and expressed his desire to travel via cargo ship and to “fight among the rank[s] of the Islamic State.” In a subsequent meeting with UC-2, Bradley provided UC-2 $1,000 in cash as travel costs for Bradley and Muthana to take a cargo ship to Yemen. Bradley told UC-2 that he and Muthana both planned to be “fighting” after arriving in the Middle East. Bradley also told UC-2 that he had a dream that he had given “bay’ah,” an Arabic term meaning the oath of allegiance, to Abu Ibrahim al-hashimi al-Qurashi, the current leader of ISIS.
On March 25, 2021, UC-2 told Bradley that the cargo ship would be leaving on Wednesday, March 31, from a seaport in Newark, New Jersey. Bradley praised Allah and confirmed he and Muthana planned to travel on the ship.
On March 31, 2021, Bradley and Muthana met with UC-2 en route to the seaport. During the course of this meeting, Muthana confirmed to UC-2 that she was traveling to the Middle East to fight for ISIS. Bradley and Muthana were arrested as they walked on a gangplank to board the cargo ship. After Muthana was arrested, she waived her Miranda rights and stated during an interview that she was willing to fight and kill Americans if it was for Allah. Also on March 31, 2021, in connection with a court-authorized search, the FBI seized from a bedroom previously used by Bradley what appears to be a hand-drawn image of a jihadi flag commonly used by ISIS and a hand-drawn map of the Pakistan region.
U.S. Attorney Strauss praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force, which consists of investigators and analysts from the FBI, HIS, the NYPD and over 50 other federal, state and local agencies; the NYPD’s Intelligence Division; and U.S. Customs and Border Patrol New York Field Office Director of Field Operations (DFO) Marty C. Raybon. Ms. Strauss also thanked the Counterterrorism Section of the Department of Justice’s National Security Division, as well as the FBI’s Birmingham, Alabama Field Office, and the U.S. Attorney’s Office for the Northern District of Alabama.
Assistant U.S. Attorneys Andrew J. DeFilippis and Jason A. Richman of the Terrorism and International Narcotics Unit are prosecuting the case with the assistance of Trial Attorneys Jennifer Burke and Andrew Sigler of the National Security Division’s Counterterrorism Section.
A complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Owner of A Plus Tax Experts and Financial Services Indicted on Tax ChargesRead the Press Release
BIRMINGHAM, Ala. – A federal grand jury on Monday indicted the owner and operator of a Birmingham tax preparation service on tax charges, announced U.S. Attorney Prim F. Escalona, and IRS Criminal Investigations Atlanta Field Office Special Agent in Charge James Dorsey.
A 37-count indictment filed in U.S. District Court charges Ametra Q. Wooden, 33, of Birmingham, with 35 counts of aiding and assisting in the preparation of false and fraudulent tax returns and two counts of willfully failing to file personal income tax returns.
According to the indictment, Wooden owned and operated A Plus Tax Experts & Financial Services, a tax preparation firm with locations in Birmingham and Jasper, Alabama. The indictment alleges that Wooden knowingly and willfully aided and assisted in the preparation of 35 fraudulent tax returns on behalf of clients for the tax years 2014 through 2017. In 2014 and 2016, Wooden allegedly failed to file personal income tax returns despite being required to do so by law.
The penalty for aiding and assisting in the preparation of false and fraudulent tax returns is a maximum of three years in prison and a $250,000 fine. The penalty for willfully failing to file a tax return is a maximum of one year in prison and a fine of $100,000.
IRS Criminal Investigations Atlanta Field Office is conducting the investigation and Assistant U.S. Attorney Edward J. Canter is prosecuting the case.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Piedmont Man Sentenced to 50 Years in Prison for Possession and Production of Child PornographyRead the Press Release
BIRMINGHAM, Ala. – A federal judge today sentenced a Piedmont man for possession and production of child pornography, announced U.S. Attorney Prim F. Escalona, Federal Bureau of Investigation Special Agent in Charge Johnnie Sharp, Jr., and U.S. Immigration and Customs Enforcement Homeland Security Investigations Special Agent in Charge Katrina W. Berger.
U.S. District Court Judge R. David Proctor sentenced Matthew Allan Smyth, 37, to 600 months in prison followed by 120 months of supervised release. Smyth pleaded guilty in December 2020 to one count of production of child pornography and one count of possession of child pornography. This conviction will require him to register as a sex offender in accordance with the Sex Offender Registration and Notification Act (SORNA).
According to the plea agreement, Smyth admitted that he enticed a minor victim to engage in sexually explicit conduct for the purpose of producing child pornography between November 2016 and January 2018. On March 27, 2018, electronic devices seized from Smyth pursuant to a search warrant were received by U.S. Immigration and Customs Enforcement Homeland Security Investigations for forensic examination. The forensic review of the devices revealed a total of 15 pornographic videos and 161 pornographic images of the minor victim. All the videos and images were produced by Smyth.
“Today’s sentence sends a strong message to all other sexual predators,” USA Escalona said. “Smyth stole the innocence of this young child. Children are our most vulnerable victims, and my office will do everything in our power to seek justice for them.”
“These crimes are disgusting, and our investigators will remain ever vigilant in protecting victims,” SAC Sharp said. “Thank you to the collaborative efforts of our state and local law enforcement partners to remove yet another child predator from our community.”
“This sentence ensures that Smyth will not be able to hurt anyone else with his filth and the community can rest a little easier in that knowledge,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama.
FBI and U.S. Immigration and Customs Enforcement Homeland Security Investigations investigated the case, along with the Alabama Law Enforcement Agency, Piedmont Police Department, and the Oxford Police Department. Assistant U.S. Attorney R. Leann White prosecuted the case.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. 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, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The U.S. Department of Homeland Security and U.S. Immigration & Customs Enforcement (ICE) also encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) 347-2423. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online by visiting their website at www.ice.gov/exec/forms/hsi-tips/tips.asp or through the Operation Predator smartphone application www.ice.gov/predator/smartphone-app. Tips may be submitted anonymously.
West Virginia Man Sentenced to 15 Years in Prison for Traveling to Alabama with the Intent to Engage in Illicit Sexual Conduct with a MinorRead the Press Release
BIRMINGHAM, Ala. – A federal judge today sentenced a West Virginia man for child exploitation, announced U.S. Attorney Prim F. Escalona, and U.S. Immigration and Customs Enforcement Homeland Security Investigations Special Agent in Charge Katrina W. Berger.
U.S. District Court Judge Liles C. Burke sentenced Andrew Scott Davis, 37, to 180 months in prison followed by a lifetime of supervised release. Davis pleaded guilty in December 2020 to one count of traveling with the intent to engage in illicit sexual conduct with a minor. According to the plea agreement, Davis travelled from Circleville, West Virginia to Madison County, Alabama between November 2019 and January 2020, and met with the minor five times. Davis began an online relationship with the minor through Snapchat. This conviction will require him to register as a sex offender in accordance with the Sex Offender Registration and Notification Act (SORNA).
“Protecting our children will always be a top priority of my office,” USA Escalona said. “In today’s world of technology, it is important that parents educate their children about safe and appropriate online behavior and immediately report inappropriate contact between an adult and their child to law enforcement.”
“Social media and the internet are great tools for entertainment, education and collaboration, but they can also be great tools for predators looking to victimize our children,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “HSI and its law enforcement partners are dedicated to finding, arresting, and prosecuting those involved in this heinous crime.”
U.S. Immigration and Customs Enforcement Homeland Security Investigations investigated the case, along with the Huntsville Police Department, and the Madison County Sheriff’s Office. Assistant U.S. Attorney R. Leann White prosecuted the case.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. 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, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The U.S. Department of Homeland Security and U.S. Immigration & Customs Enforcement (ICE) also encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) 347-2423. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online by visiting their website at www.ice.gov/exec/forms/hsi-tips/tips.asp or through the Operation Predator smartphone application www.ice.gov/predator/smartphone-app. Tips may be submitted anonymously.
Couple Sentenced for Child Exploitation OffensesRead the Press Release
HUNTSVILLE, Ala. – A Limestone County couple has been sentenced on child exploitation charges, announced United States Attorney Prim F. Escalona and U.S. Immigration and Customs Enforcement Homeland Security Investigations Special Agent in Charge Katrina W. Berger.
United States District Judge R. David Proctor today sentenced Bethany Leigh Siniard, 37, of Elkmont to 235 months in prison followed by 60 months of supervised release. Gregory Wade Anderson, 49, of Athens, was sentenced on January 25th to 240 months in prison to be followed by 240 months of supervised release. In August 2019, Siniard pleaded guilty and in November 2019, Anderson pleaded guilty to two counts of production of child pornography and one count of possession of child pornography.
“These sentences send a message that exploiting vulnerable children will result in federal incarceration,” U.S. Attorney Escalona said. “The collaborative work of our federal, state, and local law enforcement partners exemplifies our commitment to investigate and prosecute those engaged in exploitation of innocent children.”
"Today's sentencing should send a strong and clear message that the exploitation of children will not be tolerated,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “HSI remains committed to working with our law enforcement partners to investigate these crimes, hold the perpetrators accountable and to ensure justice for our nation's most vulnerable population."
U.S. Immigration and Customs Enforcement Homeland Security Investigations investigated the case, along with the Limestone County Sheriff’s Office. Assistant United States Attorney R. Leann White prosecuted the case.
The 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 U.S. Attorneys’ 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.
Federal Jury Convicts Felon in Possession of a FirearmRead the Press Release
BIRMINGHAM, Ala. – A federal jury on Tuesday convicted a Columbiana man for being a felon in possession of a firearm, announced U.S. Attorney Prim F. Escalona and Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Mickey French.
The jury returned its guilty verdict against Joshua Lee Jones, 36, of Columbiana, after 2 days of testimony before U.S. District Judge Abdul K. Kallon. Jones was prohibited from owning a firearm because he had prior Illinois state court convictions for Murder, Second Degree, Unlawful Delivery of a Controlled Substance, and Unlawful Possession of a Weapon by a Felon.
“Prosecuting felons with guns is a priority of my office,” U.S. Attorney Escalona said. “Felons who possess firearms pose a threat to the safety and security of our community. Citizens of the Northern District of Alabama deserve to feel safe in their communities.”
“Removing the criminal element that uses a firearm to facilitate violent crimes is a priority of ATF. ATF’s crime gun intelligence partnerships leveraging NIBIN technology will have a lasting impact within this community.”
The maximum punishment for being a felon in possession of a firearm is 10 years in prison.
The ATF investigated the case. Assistant U.S. Attorneys Brittney Plyler and Alan Baty are prosecuting the case.
Bessemer Man Sentenced on Child Pornography ChargesRead the Press Release
BIRMINGHAM, Ala. – A federal judge today sentenced a Bessemer man on child pornography charges, announced U.S. Attorney Prim F. Escalona and U.S. Immigration and Customs Enforcement Homeland Security Investigations Special Agent in Charge Katrina W. Berger.
U.S. District Court Judge Annemarie C. Axon sentenced Michael Lawrence Garcia-Torres, 29, to 188 months in prison followed by a lifetime of supervised release. In September 2020, Garcia-Torres pleaded guilty to one-count of transportation of child pornography and one-count of possession of child pornography. This conviction will require him to register as a sex offender in accordance with the Sex Offender Registration and Notification Act (SORNA).
According to the plea agreement, Dropbox reported to the National Center for Missing and Exploited Children (NCMEC) that images and videos of child pornography were uploaded between September 21, 2017 and February 15, 2018, to an account belonging to Garcia-Torres. As a result, a federal search warrant was obtained for his Dropbox account which revealed 405 images and 19 videos of child pornography. Federal agents also obtained a search warrant for his residence, and Garcia-Torres possessed 1,295 images and 85 videos of child pornography on his electronic devices.
“Today’s sentence is the result of the continued dedication by our prosecutors and law enforcement partners to protect the victims of child exploitation,” U.S. Attorney Escalona said. “I encourage anyone who may have information about possible child sexual exploitation, including posts on social media, to report it to the NCMEC at CyberTipline.org or by calling 1-800-THE-LOST.”
“Child exploitative material is a major threat to our community and something we must all work to eradicate,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “Every time these images are viewed or shared it continues to victimize and steal the innocence of the subject.”
U.S. Immigration and Customs Enforcement Homeland Security Investigations investigated the case, along with the Alabama Law Enforcement Agency and Bessemer Police Department. Assistant U.S. Attorney R. Leann White prosecuted the case.
Talladega County Man Sentenced for Possession of Child PornographyRead the Press Release
BIRMINGHAM, Ala. – A federal judge sentenced a Childersburg man yesterday for possession of child pornography, announced United States Attorney Prim F. Escalona and FBI Special Agent in Charge Johnnie Sharp, Jr.
United States District Judge R. David Proctor sentenced Seth Thompson, 41, to 168 months in prison followed by 240 months supervised release. In September 2020, Thompson pleaded guilty to possession of child pornography. This conviction will require him to register as a sex offender.
“Children are the most vulnerable victims and my Office will do everything in our power to prosecute criminals who victimize our children through the internet, videos, or photos,” U.S. Attorney Escalona said.
“I am pleased with the sentence handed down today that now holds Thompson accountable for these sickening crimes,” SAC Sharp said. “I encourage anyone who may have information about possible child sexual exploitation, including posts on social media, to report it to the National Center for Missing and Exploited Children (NCMEC) at CyberTipline.org or by calling 1-800-THE-LOST. This case emphasizes the importance of concerned citizens making those reports.”
According to the plea agreement, law enforcement received Cyber-Tips from the National Center for Missing and Exploited Children ("NCMEC") that images of child pornography had been uploaded to certain Facebook and Google accounts registered to Thompson. Thompson was located and arrested by Childersburg police on unrelated charges, and a federal search warrant was obtained for Thompson’s cell phones. During a forensic review of Thompson’s cell phones, a total of 153 images and 69 videos of children being sexually exploited were identified. Thompson admitted he had seen images of child pornography and that he had received certain images and videos in a Kik group.
The FBI investigated the case, along with Alabama Law Enforcement Agency and with the assistance of Childersburg Police Department. Assistant United States Attorney R. Leann White prosecuted the case.
The 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 U.S. Attorneys’ 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, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Tennessee Man Sentenced to 17 ½ Years in Prison for Possession of Guns and DrugsRead the Press Release
BIRMINGHAM, Ala. – A federal judge today sentenced a Tennessee man for possession with the intent to distribute cocaine and heroin, and possession of a firearm, announced U.S. Attorney Prim F. Escalona and DEA Special Agent in Charge Brad L. Byerley.
U.S. District Judge Annemarie Carney Axon sentenced Jason Jeremiah Jones, 39, to 210 months in prison after he pleaded guilty in November 2020 to two counts of possession with the intent to distribute a controlled substance, and one count of being a felon in possession of a firearm.
On July 24, 2017, Huntsville/Madison County Strategic Counterdrug Team/HIDTA Task Force obtained a search warrant of Jones’s residence in Huntsville. Agents searched the premises and seized approximately 9 grams of heroin and 85 grams of cocaine, and a Colt .380 pistol.
“This prosecution is a great example of local and federal law enforcement’s teamwork approach to stopping drug dealers and taking guns out of the hands of criminals,” U.S. Attorney Escalona said. “We will use all the tools we have under federal law to assist local agencies working to make our communities safer.”
“This outstanding collaboration between federal and local law enforcement agencies illustrates the continuing unified goal to keeping our community safe,” said DEA Special Agent in Charge Brad L. Byerley. This lengthy sentence closes the door on a career criminal who felt untouchable and beyond the reach of law enforcement. DEA and our law enforcement partners stand firmly to ensure that criminals who peddle in these illegal and dangerous drugs will never escape from facing the consequences of their criminal activities.”
The DEA investigated the case, along with the Huntsville/Madison County Strategic Counterdrug Team/HIDTA Task Force. Assistant U.S. Attorney Robert J. Becher, Sr. prosecuted the case.
Birmingham Man Sentenced to 20 Years in Prison for Carjacking and RobberyRead the Press Release
BIRMINGHAM, Ala. – A federal judge today sentenced a Birmingham man to federal prison for carjacking and for robbing a business engaged in interstate commerce, announced U.S. Attorney Prim F. Escalona and Federal Bureau of Investigation Special Agent in Charge Johnnie Sharp, Jr.
U.S. District Judge Annemarie Carney Axon sentenced ALBERT WARD, III, to 240 months in prison after he pleaded guilty in September 2020 to carjacking, use of a firearm during the carjacking, and an unrelated robbery of a business. As a result of his guilty plea, Ward received concurrent sentences of 156 months on the carjacking and the robbery. He received a mandatory minimum 84-month consecutive sentence for using a firearm to commit the carjacking. Ward had multiple prior felony convictions in state court, including convictions for Robbery First Degree, and Assault First Degree, arising from a burglary in 2012.
On the morning of December 6, 2018, Ward used a pistol to carjack a female shopper outside a retail establishment in Hoover, Alabama. On the evening of December 8, 2018, Ward robbed a convenience store in northeast Jefferson County, beating the store clerk with a screwdriver and taking the cash register before fleeing. Blount County Sheriff’s deputies apprehended Ward approximately an hour later when they responded to a call of a suspicious motorist who had run out of gas. Those deputies arrived to find Ward driving off after generous citizens put gas in his vehicle. Having just received a be-on-the-lookout bulletin that matched the driver and vehicle pulling away from them, the deputies quickly pulled Ward over and took him into custody. The cash register was found in weeds near where Ward’s vehicle ran out of gas. Jefferson County Sheriff’s investigators contacted Hoover Police a few days later after realizing that Ward fit the description of the Hoover carjacker. The carjacking victim subsequently identified Ward as the perpetrator after a Hoover detective showed her a photographic lineup.
“We were able to prosecute these cases because of great investigative work by all the law enforcement agencies involved,” U.S. Attorney Escalona said. “The Jefferson County Sheriff’s Office quickly responded to the robbery scene, reviewed the security video and issued the alert to other agencies. The Blount County Sheriff’s Office recognized the vehicle and suspect as matching the robbery alert. The Hoover Police Department worked its case to develop an accurate description of the suspect.”
“We are pleased to take another dangerous individual off the street,” SAC Sharp said. “The cases that we pursue federally often start with dedicated efforts by local law enforcement, this case is an excellent example of law enforcement cooperation.”
FBI investigated the case along with the Hoover Police Department, the Blount County Sheriff’s Office, and the Jefferson County Sheriff’s Office. Assistant U.S. Attorney Alan Baty prosecuted the case.
Federal Jury Convicts Last Two Defendants in Prescription Fraud ConspiracyRead the Press Release
BIRMINGHAM, Ala. – A federal jury today convicted two defendants in a long-running investigation into a prescription drug billing scheme involving a Haleyville, Ala.-based pharmacy, Northside Pharmacy doing business as Global Compounding Pharmacy. U.S. Attorney Prim F. Escalona, Federal Bureau of Investigation Special Agent in Charge Johnnie Sharp, Jr., U.S. Department of Health and Human Services, Office of Inspector General, Special Agent in Charge Derrick L. Jackson, Defense Criminal Investigative Service Special Agent in Charge Cynthia Bruce, United States Postal Inspector in Charge, Houston Division Adrian Gonzalez, and Internal Revenue Service-Criminal Investigation Acting Special Agent in Charge Andrew Thornton.
The jury returned its guilty verdict against Jessica Linton, 37, of Clearwater, Florida, the manager of the billing team at Global, and John Gladden, 50, of Tallahassee, Florida, a district manager supervising sales representatives at Global, after five days of testimony before Chief U.S. District Judge L. Scott Coogler. Linton was convicted on one count of conspiracy, thirteen counts of health care fraud, three counts of mail fraud, and seven counts of aggravated identity theft. Gladden was convicted on one count of conspiracy, six counts of health care fraud, one count of mail fraud, and one count of aggravated identity theft.
“Today’s convictions brought closure to a long-running illegal prescription drug billing scheme,” said U.S. Attorney Escalona. “These convictions add to the number of defendants who have previously pleaded guilty. Thank you to the prosecutors and our law enforcement partners for their continued efforts in bringing these defendants to justice. We especially want to thank the jury for their time and service.”
Linton and Gladden participated in a scheme to cause the pharmacy they worked at to bill for medically unnecessary prescription drugs. Linton served as the person in charge of billing for the drugs Global made, marketed, and sold; Gladden served as a district manager who supervised a team of sales reps. The scheme involved directing employees to get medically unnecessary drugs for themselves, family members, and friends, altering prescriptions to add non-prescribed drugs, automatically refilling prescriptions regardless of patient need, routinely waiving and discounting co-pays to induce patients to obtain and retain medically unnecessary drugs, and billing for drugs without patients’ knowledge. When prescription drug administrators attempted to police this conduct, conspirators evaded and obstructed those efforts, including by providing false information in response to audits and diverting their billing through affiliated pharmacies. The scheme targeted multiple health insurance plans, including the pharmacy’s Blue Cross Blue Shield of Alabama plan, as well as plans providing health insurance to the elderly, disabled, members of the military, and veterans—Medicare, TRICARE, and CHAMPVA, among others.
Evidence showed that the scheme resulted in pharmacy benefit managers’ paying Global nearly $50 million in claims in just a two-year period. During this period, prescribers who were either paid cash to write prescriptions or whose spouses were employed as sales reps by Global wrote over $13.3 million in Global prescriptions. In addition, Global was paid over $8.4 million for prescriptions obtained by Global employees. For instance, in August 2014, a provider, who was paid cash to write Global prescriptions, wrote a prescription for over one pound of compound cream indicated to treat yeast, ring worm, athlete’s foot, or fungus for a Global employee who was not that prescriber’s patient. Global was paid over $30,000 for that tube of cream. The provider and employee pleaded guilty prior to trial.
The maximum punishment for conspiracy to commit health care and mail fraud is 20 years in prison and a $250,000 fine. The maximum penalty for health care fraud is 10 years in prison and a $250,000 fine. The maximum penalty for mail fraud is 20 years in prison and a $250,000 fine. The penalty for aggravated identity theft is an additional two years in prison.
The FBI, HHS-OIG, DCIS, USPIS, and IRS-CI investigated the cases. Assistant U.S. Attorneys J.B. Ward, Edward Canter, and Don Long prosecuted the case. The Veteran Affairs Office of Inspector General Criminal Investigations Division aided in the investigation.
Birmingham Man Pleads Guilty for Fraud on Fallen Huntsville Police Officer’s Memorial FundRead the Press Release
BIRMINGHAM, Ala. – A Birmingham man pleaded guilty today to fraud on customers of the U.S. Postal Service, and fraud on the memorial fund set up to provide aid to the family of a fallen Huntsville Police officer, announced U.S. Attorney Prim F. Escalona, U.S. Postal Inspector In Charge, Houston Division, Adrian Gonzalez, and FBI Special Agent in Charge Johnnie Sharp, Jr.
DEVONTE LEMOND HAMMONDS, 27, pleaded guilty to one count of access device fraud and one count of wire fraud. In December 2019, Hammonds devised a scheme to fraudulently obtain money from the Billy Clardy Memorial Fund. Billy Clardy was a Huntsville Police officer killed in the line of duty in 2019. After Officer Clardy’s death, a memorial fund was established to collect contributions and provide aid to his family.
According to the plea agreement, Hammonds used the identity of another person to open a bank account and transfer funds from the Billy Clardy Memorial Fund bank account to the fictitious account for his own use. Hammonds also devised a scheme to defraud customers of the U.S. Postal Service. Hammonds used the U.S. Postal Service website to reroute mail from numerous U.S. Postal Service customers to addresses in Birmingham that he could access, used the rerouted mail to obtain personal identifying information of those customers, and used that information to pay bills, make purchases, and open new accounts.
The maximum penalty for access device fraud is ten years in prison and a $250,000 fine. The maximum penalty for wire fraud affecting a financial institution is thirty years in prison and a $250,000 fine.
The FBI and USPIS investigated the case, which Assistant U.S. Attorneys J.B. Ward and Michael Pillsbury are prosecuting.
Tuscaloosa Man Sentenced to 5 ½ Years in Prison for Possession of Guns and MarijuanaRead the Press Release
BIRMINGHAM, Ala. – A federal judge yesterday sentenced a Tuscaloosa man to federal prison for possession of marijuana and guns used in furtherance of drug dealing, announced U.S. Attorney Prim F. Escalona and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Mickey French.
U.S. District Judge Annemarie Carney Axon sentenced MONTRELL LEROBERT WHITE, 20, to 66 months in prison after he pleaded guilty in September 2020 to one count of possessing marijuana with intent to distribute and one count of possessing firearms in furtherance of a drug trafficking crime. As a result of his guilty plea, White received a sentence of 6 months on the drug charge and a mandatory minimum of 60 months for the firearms count. On October 9, 2019, Tuscaloosa Police Department officers and Tuscaloosa County Sheriff’s deputies, assisted by ATF and the United States Marshal’s Service, went to White’s residence to arrest him on a warrant. Individuals inside the residence permitted officers to come inside to confirm White’s absence. While walking through the apartment, officers smelled marijuana and observed firearms, ammunition, and drug paraphernalia in White’s bedroom. As a result, they obtained a search warrant and seized four pistols, various magazines, ammunition, marijuana, and other evidence of drug distribution activities. Subsequent search warrants revealed White’s communications evidencing drug sales.
The ATF investigated the case along with the Tuscaloosa Police Department and Tuscaloosa Sheriff’s Office. Assistant U.S. Attorney Alan Baty prosecuted the case.
Former Co-Owner of Pharmacy Pleads Guilty in Prescription Drug Billing SchemeRead the Press Release
BIRMINGHAM, Ala. – Today an additional defendant pleaded guilty in a long-running investigation into a prescription drug-billing scheme involving a Haleyville, Ala.-based pharmacy, Northside Pharmacy doing business as Global Compounding Pharmacy. U.S. Attorney Prim F. Escalona, Federal Bureau of Investigation Special Agent in Charge Johnnie Sharp, Jr., U.S. Department of Health and Human Services, Office of Inspector General, Special Agent in Charge Derrick L. Jackson, Defense Criminal Investigative Service Special Agent in Charge Cynthia Bruce, United States Postal Inspector in Charge, Houston Division Adrian Gonzalez, and Internal Revenue Service-Criminal Investigation Special Agent in Charge James Dorsey announced the guilty plea.
James A Mays, III, 44, of Winfield, Ala., entered a guilty plea before U.S. District Judge L. Scott Coogler to one count of conspiring to commit health care and mail fraud, twelve counts of health care fraud, and three counts of money laundering based on spending the proceeds of health care fraud.
Between August 2013 and November 2014, Mays co-owned the operations of Global Medical Equipment and Supplies, Inc. (GMES). In October 2014, Mays became co-owner of Affiliate Pharmacy Strickland. After Jeremy Adams and Jeffrey Black purchased GMES and Northside Pharmacy in November 2014, Mays continued as a pharmacist at Global and directed pharmacy operations at Global and Affiliate Pharmacies. May’s guilty plea brings the total number of defendants who have pleaded guilty in the larger investigation to 26. Those who have previously pleaded guilty include two nurse practitioners, the CEO, the COO, a vice president of sales, an operations manager, multiple district managers, and multiple sales representatives. The remaining defendants are set for trial on February 22, 2021:
- Jessica Linton, 37 of Clearwater, Florida, the manager of the billing team at Global, charged in twenty-four counts;
- John Gladden, 50, of Tallahassee, Florida, a district manager supervising sales representatives at Global, charged in nine counts.
According to the plea agreement, between August 2013 and June 2016, Mays participated in a scheme to cause the pharmacy he worked at to bill for medically unnecessary prescription drugs. He participated in a scheme to direct employees to get medically unnecessary drugs for themselves, family members, and friends, to alter prescriptions to add non-prescribed drugs, to automatically refill prescriptions regardless of patient need, to routinely waive and discount co-pays to induce patients to obtain and retain medically unnecessary drugs, and to bill for drugs without patients’ knowledge. According to the plea agreement, when prescription drug administrators attempted to police this conduct, the defendants evaded and obstructed those efforts, including by providing false information in response to audits and diverting their billing through affiliated pharmacies. The scheme targeted multiple health insurance plans, including the pharmacy’s Blue Cross Blue Shield of Alabama plan, as well as plans providing health insurance to the elderly, disabled, members of the military, and veterans—Medicare, TRICARE, and CHAMPVA, among others.
The maximum punishment for conspiracy to commit health care and mail fraud is 20 years in prison and a $250,000 fine. The maximum penalty for health care fraud is 10 years in prison and a $250,000 fine. The maximum penalty for spending the proceeds of health care fraud is 10 years in prison and a $250,000 fine.
The FBI, HHS-OIG, DCIS, USPIS, and IRS-CI investigated the cases. Assistant U.S. Attorneys J.B. Ward, Edward Canter, and Don Long are prosecuting. The Veteran Affairs Office of Inspector General Criminal Investigations Division provided assistance in the investigation.
Supervisory Paramedic Sentenced for Tampering with Drug VialsRead the Press Release
HUNTSVILLE, Ala. – A federal judge yesterday sentenced a supervisory paramedic for theft of fentanyl from a local ambulance service, announced U.S. Attorney Prim F. Escalona and Special Agent in Charge Justin C. Fielder, U.S. Food and Drug Administration Office of Criminal Investigations Miami Field Office.
U.S. District Judge R. David Proctor sentenced Michael Greenhaw, 43, of Arab, to 51 months in prison. Greenhaw pleaded guilty to on one-count of tampering with a consumer product in October 2019.
“Greenhaw put vulnerable patients in grave danger by replacing fentanyl citrate with saline in vials that he knew were intended to be administered to critically ill or injured patients,” said U.S. Attorney Escalona. “Greenhaw’s criminal conduct undermines the tireless efforts of first responders who work hard to make sure that patients receive the necessary emergency medical care.”
“The FDA is fully committed to the vigorous criminal prosecution of any individual who threatens the safety and security of the U.S. drug supply and compromises patient health and comfort,” said Justin C. Fielder, Special Agent in Charge, FDA’s Office of Criminal Investigations’ Miami Field Office. “The sentencing in this case should send a clear signal that this kind of illicit tampering activity will not be tolerated.”
According to the plea agreement, Greenhaw tampered with approximately 129 vials of fentanyl citrate from April 2018 through August 2018, while employed as a supervisory paramedic at First Response Ambulance Service in Decatur, Alabama. Greenhaw had access to the narcotics vault where the fentanyl was stored. During his shift, Greenhaw removed fentanyl citrate from vials using a syringe and replaced the fentanyl with saline. The vials filled with saline were placed back into the narcotics safe. Greenhaw stole the fentanyl for personal use.
U.S. Food and Drug Administration Office of Criminal Investigations Miami Field Office investigated the case, along with the Decatur Police Department and Arab Police Department. Assistant U.S. Attorney Mary Stuart Burrell prosecuted the case.
Registered Sex Offender Sentenced for Distribution of Child PornographyRead the Press Release
HUNTSVILLE, Ala. – A federal judge sentenced a Pinson man today for distribution of child pornography, announced United States Attorney Prim F. Escalona, FBI Special Agent in Charge Johnnie Sharp, Jr., and U.S. Immigration and Customs Enforcement Homeland Security Investigations Special Agent in Charge Katrina W. Berger.
United States District Judge R. David Proctor sentenced Chadwick Rice, 48, to 188 months in prison followed by a lifetime of supervised release. In March 2020, Rice pleaded guilty to distribution of child pornography. Rice was previously convicted of three (3) counts of possession of child pornography in Jefferson County, Alabama, in 2016. This conviction required him to register as a sex offender.
“There is zero tolerance for those who continue to break the law to engage in the sexual exploitation of children,” said U.S. Attorney Escalona. “Law enforcement will continue to vigilantly monitor the internet using every method available to us in order to uncover evidence of child exploitation and abuse so that we can protect children from such offenders.”
“This case not only exemplifies the great work of my agents and our partners, but also the importance of citizens saying something when they see something of concern,” said FBI SAC Sharp. "Thanks in part to information provided by a citizen tip to the National Center for Missing and Exploited Children (NCMEC) CyberTip Line, law enforcement was able to stop Rice from victimizing any other children."
“The community can rest a little easier knowing that this serial offender is no longer free to spread the filth that victimizes our most vulnerable population, said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “HSI and its law enforcement partners remain committed to find, arrest and prosecute those who seek to steal the innocence of our youth.”
According to the plea agreement, during an authorized Peer-to-Peer ("P2P") operation in December 2017, an agent downloaded images of suspected child pornography from a specific IP address. In February 2018, the agent received Cyber-Tips from the National Center for Missing and Exploited Children ("NCMEC") that images of child pornography had been uploaded from the same IP address. Further investigation revealed that the IP address was registered to Rice. In March 2018, a search warrant was executed at Rice’s home in Pinson, where child pornography was located on Rice’s Samsung Galaxy cell phone. During a forensic review of Rice’s cell phone, 771 images of children being sexually exploited were identified. Rice admitted he had various apps on his cell phone that he used to trade videos of child pornography with other individuals.
The FBI investigated the case, along with U.S. Immigration and Customs Enforcement Homeland Security Investigations, Alabama Law Enforcement Agency and Vestavia Hills Police Department. Assistant United States Attorney R. Leann White prosecuted the case.
The 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 U.S. Attorneys’ 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.
Birmingham Man Sentenced to 204 Months in Prison for Shooting Carjacking VictimRead the Press Release
BIRMINGHAM, Ala. – A federal judge on Tuesday sentenced a Birmingham man for a carjacking and shooting that occurred in Birmingham in 2019, announced U.S. Attorney Prim F. Escalona and Bureau of Alcohol, Tobacco, Firearms, and Explosives Special Agent in Charge Mickey French.
U.S. District Judge R. David Proctor sentenced JOSHUA J. YOUNG, 22, to 204 months in prison. Young pleaded guilty in December 2019 to one count of carjacking, one count of discharging a firearm during a crime of violence, and one count of being a felon in possession of a firearm.
According to the plea agreement, on January 22, 2019, the carjacking victim gave Young a ride to show him a property that needed painting. During the ride, Young pulled a pistol and demanded the victim’s vehicle and money. The victim attempted to flee the vehicle, but Young shot him. Young then drove off in the vehicle. Individuals at a nearby business found the victim and called an ambulance. The victim survived the shooting. The next day, Birmingham Police responded to a caller who was following the victim’s vehicle away from the scene of another crime. Officers located the stolen vehicle at a convenience store, with Young in the driver’s seat. A semi-automatic pistol matching the description given by the carjacking victim was found on the driver’s floorboard.
“Carjacking is a senseless act of violence that we will not tolerate in our district,” said U.S. Attorney Escalona. “I want to thank the Birmingham Police officers for their quick response in apprehending Young. We will continue to work with our federal, state and local law enforcement partners to prevent the unlawful possession of firearms by violent criminals.”
“Removing the criminal element that uses a firearm to facilitate violent crimes such as carjacking is a priority of ATF,” said Special Agent in Charge, Mickey French. “The partnerships with the public safety departments and the U.S. Attorney’s office were crucial in resolving this case”.
ATF and the Birmingham Police Department investigated this case, which was prosecuted by Assistant U.S. Attorney Alan Baty.
Jefferson County Man Charged with Aiming a Laser Pointer at HelicopterRead the Press Release
BIRMINGHAM, Ala. – A federal grand jury today indicted a Jefferson County man for aiming the beam of a laser pointer at a helicopter, announced U.S. Attorney Prim F. Escalona and Federal Bureau of Investigation Special Agent in Charge Johnnie Sharp, Jr.
A one-count indictment filed in U.S. District Court charges Gabriel Lopez Mathews, 26, of Pinson, with aiming the beam of a laser pointer at an aircraft. According to the indictment, on April 11, 2020, Mathews aimed the beam of a laser pointer at a helicopter operated by the Jefferson County Sheriff’s Office.
The maximum penalty for aiming a laser pointer at an aircraft is five years in prison.
The Federal Bureau of Investigation investigated the case, along with the Jefferson County Sherriff’s Office and the Birmingham Police Department. Assistant U.S. Attorney Alan Baty is prosecuting the case.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Birmingham Man Arrested in Mississippi for Unlawful Dealing in FirearmsRead the Press Release
BIRMINGHAM, Ala. – On Thursday, January 14, 2021, a Birmingham man was arrested in the Southern District of Mississippi, announced U.S. Attorney Prim F. Escalona and Bureau of Alcohol, Tobacco, Explosives, and Firearms (ATF) Special Agent in Charge Mickey French.
A 21-count indictment filed in U.S. District Court charges JECOREY TYSHAWN EDWARDS ALLEN, 26, with one count of dealing in firearms without a license, one count of traveling across state lines while dealing in firearms without a license, and 19 counts of falsifying information on firearm acquisition records. A federal grand jury in the Northern District of Alabama indicted Allen on January 29, 2020.
According to the indictment, between November 2018 through July of 2019, Allen purchased at least 19 pistols from several licensed Birmingham firearm dealers and traveled out of state to sell the illegally purchased guns. Allen falsified the ATF form 4473, specifically stating that he was the actual purchaser when in fact he was purchasing the firearms for other individuals. ATF form 4473 is a form purchasers must complete when buying a gun from a licensed firearm dealer.
The maximum penalty for dealing in firearms without a license is five years in prison, a $250,000 fine, and no more than three years of supervised release. The maximum penalty for crossing state lines while dealing in firearms without a license is 10 years in prison, a $250,000 fine, and no more than three years of supervised release. The maximum penalty for each count of falsifying information on ATF form 4473 is 10 years in prison, a $250,000 fine, and no more than three years of supervised release.
The ATF investigated the case, which Assistant U.S. Attorney Jonathan Cross is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Houston Woman Arrested for Lottery Fraud SchemeRead the Press Release
BIRMINGHAM, Ala. – On Wednesday, January 6th, federal agents arrested a woman for her role in a lottery fraud scheme, announced U.S. Attorney Prim F. Escalona, FBI Special Agent in Charge Johnnie Sharp, Jr., and U.S. Postal Inspection Service Inspector-In-Charge, Houston Division, Adrian Gonzalez.
A five-count indictment filed in U.S. District Court charges Gloria Kirk Edmonson, 75, of Houston, Texas, with one count of conspiracy, two counts of wire fraud, one count of mail fraud, and one count of conspiracy to commit money laundering.
According to the indictment, from January 2019 through December 2020, Edmonson was a part of a lottery fraud scheme that persuaded individuals, often vulnerable elderly individuals, to send money and/or valuable property via mail. The individuals were led to believe they had won the lottery and need only pay their taxes or fees to receive their winnings. Edmonson deposited the money into bank accounts that she controlled. The funds were transferred to other accounts that her co-conspirators had access to via a debit card, which they used to withdraw cash from financial institutions in Jamaica.
The maximum penalty for conspiracy is five years in prison. The maximum penalty for wire fraud, mail fraud, and the money laundering conspiracy is 20 years in prison.
FBI and the U.S. Postal Inspection Service investigated the case. Assistant U.S. Attorney Kristen S. Osborne is prosecuting the case.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Birmingham Man Pleads Guilty to Conspiracy for Making Unapproved Drug Products in His Kitchen and WarehouseRead the Press Release
BIRMINGHAM, Ala. – A Birmingham man today pleaded guilty to making unapproved drug products in his kitchen and warehouse, and marketing and selling them as a cancer treatment, announced U.S. Attorney Prim F. Escalona and U.S. Food and Drug Administration (FDA) Office of Criminal Investigations, Miami Field Office Special Agent in Charge Justin C. Fielder.
PATRICK CHARLES BISHOP, 54, pleaded guilty before U.S. District Court Judge Karon O. Bowdre to one count of conspiracy for fraudulently introducing adulterated drugs and misbranded drugs into interstate commerce. A sentencing date has been set for May 5, 2021.
According to the plea agreement, Bishop owned and operated Patrick, LLC, an entity organized in Nevada. Between 2015 and 2016, Bishop purchased, manufactured, labeled, marketed, sold, and distributed drug products purportedly containing a peptide called PNC-27. PNC-27 has not been approved by the FDA for use in the United States as a drug to treat any disease, including cancer, nor has PNC-27 undergone clinical trials in the United States. Bishop took steps to conceal these activities from the FDA and others. Bishop used the business name Best Peptide Supply, LLC, to buy PNC-27 from GL Biochem, a manufacturer based in China, and used the business name Immuno Cellular Restoration Program, Inc., to sell PNC-27 products to others. He described his distribution of PNC-27 products as part of a research effort, and made false representations to FDA personnel and others.
Bishop paid GL Biochem more than $600,000 for the product. Bishop repeatedly assured the manufacturer that he would use the peptide solely for laboratory research purposes. But instead, he used the peptide to make homemade suppositories in his kitchen in Birmingham, and at a warehouse he rented in Pelham. The facilities were not sterile, and did not comply with current good manufacturing practices. Customers who purchased suppositories from Bishop reported finding pieces of hair in their suppository packs.
Bishop marketed the PNC-27 drug products to alternative-medicine doctors, cancer patients, and others as an effective treatment for cancer. Bishop sold PNC-27 drug products to Hope4Cancer, a holistic cancer treatment center with clinics in Mexico. Bishop shipped the products to a location in California, and Hope4Cancer would use the products to treat patients at its Mexico clinics. Bishop also sold PNC-27 drug products to patients and others in the United States.
The maximum punishment for conspiracy is five years in prison and a $250,000 fine.
The FDA investigated the case, which Assistant U.S. Attorney J.B. Ward is prosecuting.
Ensley Man Indicted for Four Armed RobberiesRead the Press Release
BIRMINGHAM, Ala. – A federal grand jury indicted an Ensley man in connection with four armed robberies, announced U.S. Attorney Prim F. Escalona and Bureau of Alcohol, Tobacco, Explosives, and Firearms (ATF) Special Agent in Charge Mickey French.
An eight-count indictment filed in U.S. District Court charges Eric Tyree Blanding, 46, with four counts of Hobbs Act Robbery, three counts of carrying and brandishing a firearm during and in relation to a crime of violence, and one count of being a felon in possession of a firearm.
According to the indictment, Blanding committed four robberies at three different Family Dollar stores in Birmingham by brandishing a firearm at store employees and taking cash and other property. The robberies occurred in May and June of 2019.
The Hobbs Act prohibits the obstruction of commerce by robbery and carries a maximum penalty of up to 20 years in prison and a $250,000 fine.
Brandishing a firearm during and in relation to a crime of violence carries a mandatory penalty of not less than 7 years in prison.
Being a felon in possession of a firearm carries a maximum penalty of 10 years in prison.
ATF investigated the case. Assistant U.S. Attorney Kristy Peoples is prosecuting the case.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Northern Alabama Doctor and Practice Manager Convicted for Conspiring to Unlawfully Distribute OpioidsRead the Press Release
BIRMINGHAM, Ala. – A Northern Alabama doctor and her husband, who also served as her practice manager, pleaded guilty today for their roles in unlawfully distributing opioids and other controlled substances while the doctor was absent from the clinic.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Prim F. Escalona of the Northern District of Alabama, Special Agent in Charge Brad L. Byerly of the U.S. Drug Enforcement Administration’s (DEA) New Orleans Field Division, and Special Agent in Charge Johnnie Sharp Jr. of the FBI’s Birmingham Field Office made the announcement.
Elizabeth Korcz, M.D., 47, a licensed physician, and Matthew Korcz, 47, her husband and former practice manager, both of Hoover, Alabama, pleaded guilty to conspiracy to unlawfully distribute controlled substances. As part of the plea, the defendants also agreed to forfeit $46,181.79.
The defendants owned and operated Hoover Alt MD, a purported medical clinic with an in-house dispensary. As part of their guilty pleas, the defendants admitted to providing dangerous doses of hydrocodone to patients who were not first examined by a medical professional, and at times when Dr. Korcz was absent from their clinic. The defendants did not employ registered nurses or other qualified medical professionals to examine patients, despite Dr. Korcz’s frequent absences. According to the plea agreement, the defendants admitted to allowing hydrocodone to be dispensed from their in-house dispensary on multiple occasions when Dr. Korcz was out of state.
Austin Haskew, 31, of Leeds, a pharmacy technician at Hoover Alt MD, pleaded guilty to unlawful distribution of a controlled substance. DEA and FBI investigated the case. Trial Attorney Devon Helfmeyer of the Criminal Division’s Fraud Section and Assistant U.S. Attorney J.B. Ward of the Northern District of Alabama are prosecuting the case.
The Fraud Section leads the Appalachian Regional Prescription Opioid (ARPO) Strike Force and the Health Care Fraud Strike Force. Since its inception in October 2018, the ARPO Strike Force, which operates in 10 districts, has charged more than 85 defendants who are collectively responsible for distributing more than 65 million pills. Since its inception in March 2007, the Health Care Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for approximately $19 billion. In addition, the Health and Human Services (HHS) Centers for Medicare & Medicaid Services, working in conjunction with the HHS-Office of Inspector General, are taking steps to increase accountability and decrease the number of fraudulent providers.
Individuals who believe that they may be a victim of this crime should visit the Fraud Section’s Victim Witness website for more information.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Northern Alabama Doctor and Practice Manager Convicted for Conspiring to Unlawfully Distribute OpioidsRead the Press Release
A Northern Alabama doctor and her husband, who also served as her practice manager, pleaded guilty today for their roles in unlawfully distributing opioids and other controlled substances while the doctor was absent from the clinic.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Prim F. Escalona of the Northern District of Alabama, Special Agent in Brad L Byerly of the U.S. Drug Enforcement Administration’s (DEA) New Orleans Field Division, and Special Agent in Charge Johnnie Sharp, Jr. of the Federal Bureau of Investigation’s (FBI) Birmingham Field Office made the announcement.
Elizabeth Korcz, M.D., 47, a licensed physician, and Matthew Korcz, 47, her husband and former practice manager, both of Hoover, Alabama, pleaded guilty to conspiracy to unlawfully distribute controlled substances. As part of the plea, the defendants also agreed to forfeit $46,181.79. Sentencing will be scheduled at a later date.
As part of their guilty pleas, the defendants admitted to providing dangerous doses of hydrocodone to patients who were not examined by a medical professional and while Dr. Korcz was absent from their clinic. The defendants owned and operated Hoover Alt MD, a purported medical clinic with an in-house dispensary. The defendants did not employ registered nurses or other qualified medical professionals, despite Dr. Korcz’s absences. The defendants admitted to allowing hydrocodone to be dispensed from their in-house dispensary while Dr. Korcz was out of state on multiple occasions, according to the plea agreement.
DEA and FBI investigated the case. Trial Attorney Devon Helfmeyer of the Criminal Division’s Fraud Section and Assistant U.S. Attorney J.B. Ward of the Northern District of Alabama are prosecuting the case.
The Fraud Section leads the Appalachian Regional Prescription Opioid (ARPO) Strike Force. Since its inception in October 2018, the ARPO Strike Force, which operates in 10 districts, has charged more than 85 defendants who are collectively responsible for distributing more than 65 million pills. Since its inception in March 2007, the Health Care Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for approximately $19 billion. In addition, the Health and Human Services (HHS) Centers for Medicare & Medicaid Services, working in conjunction with the HHS-Office of Inspector General, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website for more information.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Alabama Man Sentenced to Prison for Tax EvasionRead the Press Release
BIRMINGHAM, Ala. – An Alabama man was sentenced to serve 12 months in prison for tax evasion, Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Prim F. Escalona for the Northern District of Alabama announced today.
According to court documents and statements made in court, John P. Cooney of Jefferson County, Alabama, disclosed to the IRS in December 2011, through late-filed tax returns, that he owed approximately $780,000 to the IRS for the 2008 to 2010 tax years. Despite acknowledging he owed these taxes, Cooney never paid them. Instead, Cooney sought to conceal income he was earning by setting up a nominee corporation, GVA Advisors LLC (GVA), and arranging for payments to be made to GVA, rather than directly to him. From 2013 through 2016, Cooney deposited more than $435,000 into the GVA account, concealing the income from the IRS and evading payment of his outstanding tax liabilities. As a result of his actions, Cooney currently owes more than $1.3 million in outstanding balances, penalties, and interest to the IRS.
“Today’s sentence should send a clear message that those who execute schemes to evade payment of federal income tax will be prosecuted and could face prison time,” said U.S. Attorney Escalona.
“Mr. Cooney knowingly and willfully committed a series of affirmative acts, constituting attempts to evade the payment of his income taxes, and designed to conceal his income from the IRS,” said IRS-Criminal Investigation Special Agent in Charge James E. Dorsey. “The sentence issued today is the penalty for those actions. Taxpayers looking to willfully evade the payment of taxes should know that they will be prosecuted for those actions.”
Cooney previously pleaded guilty to one count of tax evasion on Feb. 18, 2020.
In addition to the term of imprisonment, Cooney was ordered to serve three years of supervised release and to pay $1,311,904.70 in restitution to the IRS.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Escalona commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Kathryn Sparks and Alexander Effendi of the Tax Division and Assistant U.S. Attorney Catherine Crosby, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Three Arrested with Conspiracy to Commit Bank FraudRead the Press Release
BIRMINGHAM, Ala. – On Wednesday, December 9th, federal agents arrested three individuals for using stolen personal identifying information to open fraudulent online bank accounts and loans, announced U.S. Attorney Prim Escalona and FBI Special Agent in Charge Johnnie Sharp, Jr.
A 26-count indictment filed in U.S. District Court charges Kristen Miyamoto, 39, La Verne, California, Shawn Adame, 46, La Verne, California, and Veronica James, 41, Pomona, California, with conspiracy to commit bank fraud and aggravated identity theft. Miyamoto was also charged with unlawful production of identification documents or authentication features.
According to the indictment, from March 2017 through October 2020, Miyamoto, Adame, and James stole personal identifying information of individuals in various locations within the United States. Miyamoto, Adame, and James used the stolen personal identifying information to open fraudulent bank accounts and create numerous email accounts with various providers, often using account names that would match the stolen identities. These email accounts were used for online banking and submitting online loan applications. As part of the scheme, Miyamoto created false California driver’s licenses to facilitate opening bank accounts under the stolen identities for herself and her co-conspirators.
Miyamoto, Adame, and James face a mandatory minimum of two years and up to 30 years in prison. Their actions affected numerous individuals, including residents of the Northern District of Alabama, as well as significant banking activity important to the economy of the district.
FBI investigated the case. Assistant U.S. Attorney Kristen S. Osborne is prosecuting the case.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Northern District of Alabama Federal Law Enforcement Agencies Part of Global Crackdown Against Money Laundering and Transnational FraudRead the Press Release
BIRMINGHAM, Ala. – Today, North Alabama federal law enforcement agencies announced their participation and continuing engagement in the global law enforcement action against transnational money laundering and fraud perpetrated by “money mules”. The local North Alabama offices of the United States Attorney’s Office, Federal Bureau of Investigation, United States Postal Inspection Service, and U.S. Secret Service took part in the global enforcement action, which has acted against more than 2,300 suspected money mules. U.S. federal law enforcement agencies and Europol worked simultaneously in the Money Mule Initiative and the European Money Mule Action.
Over the last two months, U.S. law enforcement agencies took action against over 2,300 money mules. Northern District of Alabama law enforcement agencies are continuing to investigate and engage suspected money mules. This year’s Money Mule Initiative is the third annual crackdown against money mules involved in a wide range of schemes including lottery fraud, romance scams, government imposter fraud, technical support fraud, business email compromise or CEO fraud, and unemployment insurance fraud that tend to target the elderly and other vulnerable populations.
Money mules are people who receive and move money obtained from victims of fraud. Some money mules know they have been recruited to assist criminal activity, but others become money mules without realizing their activity is benefiting fraudsters. Often, money mules are engaged by responding to a seemingly legitimate advertisement or social media post that promises easy money for little effort, or by helping someone they have met online or over the phone by agreeing to receive and transfer money, packages, gift cards, or virtual currency that support the global movement and laundering of criminal goods and finances.
“Federal law enforcement agencies continue to work tirelessly to protect victims from the many complex criminal schemes that seek to defraud consumers, businesses, and vulnerable populations,” said U.S. Attorney Prim F. Escalona. “Federal prosecutors and law enforcement remain determined in their fight against both the root and branch of criminal enterprises that deceive and harm our communities and citizens. Our office and our Elder Justice Coordinator will continue to reach out to North Alabama communities to educate citizens and communities on how best to recognize money mules and prevent financial fraud.”
“Acting as a money mule—allowing others to use your bank account, or conducting financial transactions on behalf of others, jeopardizes your financial security and compromises your personally identifiable information,” said Johnnie Sharp, Jr., Special Agent in Charge, FBI Birmingham Division. “Protect yourself by refusing to send or receive money on behalf of individuals and businesses for which you are not personally and professionally responsible. To report suspicious activity, please visit the FBI’s Internet Crime Complaint Center at ic3.gov.”
“The U.S. Postal Inspection Service (USPIS) is charged with defending the nation’s mail system from illegal use, no matter where those crimes originate,” said Adrian Gonzalez, Inspector-in-Charge of the Houston Division. “The number and variety of schemes that target our most vulnerable populations, including the elderly, are numerous and the effects of those schemes can be devastating to the victim and their families. Today’s challenging economy deems it critical that we give consumers tools to guard against losing their hard-earned money to these money mules. Postal Inspectors will continue to work with the U.S. Attorney’s Office as well as our local, state and federal law enforcement partners in investigating these crimes and bringing the perpetrators to justice.”
“The U.S. Secret Service remains steadfast in its investigative pursuit of money mules who are either knowingly or unknowingly attempting to hide and/or transfer illicit funds,” said Patrick M. Davis, Special Agent in Charge of the Birmingham Field Office. “The U.S. Secret Service will continue to work with our law enforcement partners to thoroughly investigate these crimes, seize unlawfully obtained funds and/or goods, and seek federal prosecution for those involved.”
Earlier this year Attorney General Barr declared “Prevention and Disruption of Transnational Elder Fraud” to be an Agency Priority Goal, making it one of the Department’s four top priorities. The best method for prevention of elder fraud is sharing information about the various types of elder fraud schemes with relatives, friends, neighbors, and other seniors who can use that information to protect themselves. To find public education materials, as well as information about how fraudsters use and recruit money mules, please visit the Department of Justice’s Money Mule Initiative website - Don't Be A Mule. More information about the Department’s efforts to help American seniors is available at its Elder Justice Initiative webpage (https://www.justice.gov/elderjustice). If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311).
Justice Department Files Lawsuit Against the State of Alabama for Unconstitutional Conditions in State's Prisons for MenRead the Press Release
BIRMINGHAM, Ala. – Today, Justice Department filed suit against the State of Alabama and the Alabama Department of Corrections. The complaint alleges that the conditions at Alabama’s prisons for men violate the Constitution because Alabama fails to provide adequate protection from prisoner-on-prisoner violence and prisoner-on-prisoner sexual abuse, fails to provide safe and sanitary conditions, and subjects prisoners to excessive force at the hands of prison staff.
“The United States Constitution requires Alabama to make sure that its prisons are safe and humane,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “The Department of Justice conducted a thorough investigation of Alabama’s prisons for men and determined that Alabama violated and is continuing to violate the Constitution because its prisons are riddled with prisoner-on-prisoner and guard-on-prisoner violence. The violations have led to homicides, rapes, and serious injuries. The Department of Justice looks forward to proving its case in an Alabama federal courtroom.”
“Our office is committed to ensuring that all citizens’ constitutional rights are respected” stated Acting U.S. Attorney for the Northern District of Alabama William R. Chambers, Jr. “We will continue to work tirelessly to correct the constitutional deficiencies identified by our investigation into the state prison system.”
“The results of the investigation into safety and excessive force issues within Alabama’s prisons are distressing and continue to require real and immediate attention,” U.S. Attorney for the Middle District of Alabama Louis V. Franklin, Sr. “We hope the filing of this complaint conveys the Department’s continued commitment to ensuring that the Department of Corrections abides by its constitutional obligations.”
“The COVID-19 pandemic has reminded us that one of the primary responsibilities of government is to keep our citizens safe,” said U.S. Attorney for the Southern District of Alabama Richard W. Moore. “That responsibility extends to citizens incarcerated within Alabama prisons. Our investigation has demonstrated that constitutionally required standards have not been met in Alabama prisons and this must be corrected. I am disappointed that the efforts of both Alabama officials and DOJ officials to find appropriate solutions have not resulted in a mutually agreed upon resolution. Our oath as public officials now requires us to follow the Constitution and to pursue justice in the courts.”
The lawsuit is the result of a multi-year investigation into allegations of constitutional violations within Alabama’s prisons for men conducted by the department’s Civil Rights Division and the U.S. Attorney’s Offices for the Northern, Middle, and Southern Districts of Alabama. As required by the Civil Rights of Institutionalized Persons Act (CRIPA), the department provided the state with written notice of the supporting facts for these alleged conditions, and the minimum remedial measures necessary to address them in Notice Reports issued on April 2, 2019 and July 23, 2020. CRIPA authorizes the department to act when it has reasonable cause to believe there is a pattern or practice of deprivation of constitutional rights of individuals confined to correctional facilities operated by or on behalf of state or local government. For over 20 months the department has engaged in negotiations with the State without achieving a settlement that would correct the deficiencies identified by the department’s investigation.
Today’s lawsuit seeks injunctive relief to address deficient conditions identified by the department’s investigation. The complaint contains allegations of unconstitutional conditions of confinement, which must be proven in federal court. The lawsuit does not seek monetary damages.
This investigation was conducted by attorneys with the Special Litigation Section of the Justice Department’s Civil Rights Division and the U.S. Attorney’s Offices for the Northern, Middle, and Southern Districts of Alabama. Individuals with relevant information are encouraged to contact the department by phone at (877) 419-2366 or by email at [email protected].
Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt.
U.S. Department of Justice Recognizes U.S. Attorney’s Office for the Northern District of Alabama for Its Work with Project Safe NeighborhoodsRead the Press Release
BIRMINGHAM, Ala. – Today, the Department of Justice recognized the U.S. Attorney’s Office for the Northern District of Alabama for Outstanding Individual Contribution in support of the Project Safe Neighborhoods (PSN) Initiative.
“Mr. Town’s vision to implement the P3 program enhanced the coordination and communication between federal and state prosecutorial agencies and law enforcement nationwide,” U.S. Attorney Escalona said.” “Prosecutors at all levels will be able to collectively target worst offenders for years to come.”
Jay E. Town, Former U.S. Attorney, was recognized for the outstanding work in support of the PSN Program through his design and successful implementation of the Prosecutor to Prosecutor Program (P3). The P3 Program, created in January 2018 by Mr. Town, was designed to enhance Project Safe Neighborhoods strategic plans and focus on the worst offenders in a given area or district. P3 is a six-step process in which state and federal prosecutors make joint decisions on whether a criminal case should be prosecuted by the U.S. Attorney's Office. Since P3 was implemented in 2018 in the Northern District of Alabama, there have been more than 300 cases referred to federal law enforcement from local P3 team members, of which more than half have been selected for federal prosecution. The robust success of the P3 team and its implementation of the P3 program have led to a 64% increase in violent crimes prosecutions since 2016. Specifically, there has been a 73% increase in the number of 922(g) and 924(c) firearms matters received by the Northern District of Alabama U.S. Attorney’s Office since its implementation. The Prosecutor to Prosecutor Program is recognized by the Department of Justice as a best practice and national model for each federal district. P3 has since been replicated and effectively implemented by numerous U.S. Attorney’s Offices across the country.
Revitalized in 2017, PSN is a critical piece of the Department’s crime reduction efforts. PSN has focused on prosecuting those individuals who most significantly drive violence in our communities, and supports and fosters partnerships between law enforcement and schools, the faith community, and local community leaders to prevent and deter future criminal conduct
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Federal Jury Convicts Talladega County Employee on Drug ChargesRead the Press Release
Birmingham, Ala. – A federal jury today convicted a Talladega man on drug charges, announced United States Attorney Prim F. Escalona and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Mikey French.
The jury returned its guilty verdict against Anthony Lamon Frazier, 38, after 2 days of testimony before U.S. District Judge Corey L. Maze.
“Frazier’s conviction sends the message to those dealing drugs – you will get caught, and you will be held responsible for pushing this poison in our communities,” USA Escalona said. “I want to commend the Talladega County Drug Task Force and the prosecution team for their hard work on this case. I also want to thank the jurors for their time and service.”
“The partnerships with the public safety departments and the U.S. Attorney’s office were crucial in reducing the potential for violent crime in this case,” SAC French said.
Evidence at trial proved that Frazier agreed to deliver almost two pounds of methamphetamine to an individual, and ultimately did deliver that methamphetamine. Frazier used his Talladega County work truck to distribute the narcotics, and evidence at trial showed that a narcotics canine indicated on Frazier’s work truck numerous times for the presence of drugs.
The maximum penalty for possession with the intent to distribute more than 50 grams of methamphetamine is life in prison.
ATF investigated the case, along with the Talladega County Drug Task Force. Assistant U.S. Attorneys Blake Milner and Allison Garnett prosecuted the case.
Justice Department Sues Northern Alabama Housing Authority and Property Owners for Housing Discrimination on the Basis of RaceRead the Press Release
The Justice Department announced today that it has filed a lawsuit alleging that the Housing Authority of Ashland, Alabama, which manages seven federally funded low-income housing complexes, violated the Fair Housing Act by intentionally discriminating on the basis of race or color against applicants for housing.
The department’s complaint alleges that the Housing Authority denied African-American applicants the opportunity to live in overwhelmingly White housing complexes, while steering White applicants away from properties whose residents were predominantly African-American.
The lawsuit also names as defendants Southern Development Company of Ashland Ltd., Southern Development Company of Ashland #2 Ltd., and Southern Development Company LLC, which are the private owners and managing agent of one of those housing complexes.
“On April 11, 1968, one week after the assassination of the Rev. Dr. Martin Luther King Jr., the United States enacted the Fair Housing Act to outlaw race, color, and other forms of discrimination in housing. Denying people housing opportunities because of their race or color is a shameful and blatant violation of the Fair Housing Act,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The United States has made great strides toward Dr. King’s dream of a nation where we will be judged by content of our character and not by the color of our skin. The dream remains at least partially unfulfilled because we have not completely overcome the scourge of racial bias in housing. Discrimination by those who receive federal taxpayer dollars to provide housing to lower-income applicants is particularly odious because it comes with the support and authority of government. The U.S. Department of Justice will not stand for this kind of unlawful and intolerable discrimination. The Justice Department will continue to fight to protect the rights of all Americans to rent and own their homes without regard to their race or color.”
“Individuals and families should not have their rights affected by their race or national origin,” said U.S. Attorney Prim F. Escalona for the Northern District of Alabama. “Our office is committed to defending the civil rights of everyone.”
Today’s lawsuit, filed in the U.S. District Court for the Northern District of Alabama, alleges that since at least 2012, the defendants have maintained segregated housing properties by denying African-American housing applicants the opportunity to live at three overwhelmingly White housing complexes, known as Ashland Heights, Clay Circle and East Side, and denying White applicants the opportunity to live at West Side and Pine View, two properties whose residents are predominantly African-American. All of these complexes are located in Ashland, Alabama.
The lawsuit seeks damages to compensate victims, civil penalties to the government to vindicate the public interest, and a court order barring future discrimination and requiring action to correct the effects of the defendants’ discrimination.
Individuals who believe they have been victims of housing discrimination at the defendants’ properties should contact the department toll-free at 1-800-896-7743, mailbox 9997, or by email at [email protected]. Individuals who have information about this or another matter involving alleged discrimination may submit a report online at civilrights.justice.gov.
The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. More information about the Civil Rights Division and the civil rights laws it enforces is available at www.justice.gov/crt.
The complaint contains allegations of unlawful conduct, which must be proven in federal court.
Justice Department Sues Northern Alabama Housing Authority and Property Owners for Housing Discrimination on the Basis of RaceRead the Press Release
BIRMINGHAM, Ala. – The Justice Department announced today that it has filed a lawsuit alleging that the Housing Authority of Ashland, Alabama, which manages seven federally funded low-income housing complexes, violated the Fair Housing Act by intentionally discriminating on the basis of race or color against applicants for housing. The Department’s complaint alleges that the Housing Authority denied African-American applicants the opportunity to live in overwhelmingly White housing complexes, while steering White applicants away from properties whose residents were predominantly African-American.
The lawsuit also names as defendants Southern Development Company of Ashland, Ltd., Southern Development Company of Ashland #2, Ltd., and Southern Development Company, LLC, which are the private owners and managing agent of one of those housing complexes.
“On April 11, 1968, one week after the assassination of the Rev. Dr. Martin Luther King, Jr., the United States enacted the Fair Housing Act to outlaw race, color, and other forms of discrimination in housing. Denying people housing opportunities because of their race or color is a shameful and blatant violation of the Fair Housing Act,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The United States has made great strides toward Dr. King’s dream of a nation where we will be judged by content of our character and not by the color of our skin. The dream remains at least partially unfulfilled because we have not completely overcome the scourge of racial bias in housing. Discrimination by those who receive federal taxpayer dollars to provide housing to lower-income applicants is particularly odious because it comes with the support and authority of government. The United States Department of Justice will not stand for this kind of unlawful and intolerable discrimination. The Justice Department will continue to fight to protect the rights of all Americans to rent and own their homes without regard to their race or color.”
“Individuals and families should not have their rights affected by their race or national origin,” said U.S. Attorney Prim F. Escalona for the Northern District of Alabama. “Our office is committed to defending the civil rights of everyone.”
Today’s lawsuit, filed in the U.S. District Court for the Northern District of Alabama, alleges that since at least 2012, the defendants have maintained segregated housing properties by denying African-American housing applicants the opportunity to live at three overwhelmingly White housing complexes, known as Ashland Heights, Clay Circle and East Side, and denying White applicants the opportunity to live at West Side and Pine View, two properties whose residents are predominantly African-American. All of these complexes are located in Ashland, Alabama.
The lawsuit seeks damages to compensate victims, civil penalties to the government to vindicate the public interest, and a court order barring future discrimination and requiring action to correct the effects of the defendants’ discrimination.
Individuals who believe they have been victims of housing discrimination at the defendants’ properties should contact the department toll-free at 1-800-896-7743, mailbox 9997, or by email at [email protected]. Individuals who have information about this or another matter involving alleged discrimination may submit a report online at civilrights.justice.gov.
The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. More information about the Civil Rights Division and the civil rights laws it enforces is available at www.justice.gov/crt. The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
The complaint contains allegations of unlawful conduct, which must be proven in federal court.
Two Separate and Unrelated Indictments Charge Individuals in Connection with Business Email Compromise Fraud SchemesRead the Press Release
BIRMINGHAM, Ala. – Prim F. Escalona, the United States Attorney for the Northern District of Alabama, and Johnnie Sharp, Jr. the Special Agent in Charge of the Birmingham Field Office of the Federal Bureau of Investigation (“FBI”), announced two indictments against four defendants charged for their roles in separate and unrelated business email compromise fraud schemes.
On November 17, 2020 a federal grand jury indicted Oyedele Aro Benjamin, 26, of Chicago, Illinois, and Adetona Lala, 37, of Country Club Hills, Illinois, with conspiracy to commit wire and bank fraud, wire fraud, bank fraud, aggravated identity theft, and conspiracy to commit money laundering. The indictment alleges that from September 2018 to May 2019, Benjamin and Lala were part of an international criminal conspiracy that targeted companies throughout the United States of America with business email compromise schemes. Members of the conspiracy tricked and deceived victims into sending payments for legitimate business services to bank accounts that were controlled by the defendants and used for money laundering. The defendants executed this fraudulent scheme by, among other things, using fake names, false identity documents, and shell companies to open bank accounts used to receive fraud proceeds and then to launder those funds. The charges of conspiracy to commit bank fraud and bank fraud each carry a maximum penalty of 30 years in prison. The charges of conspiracy to commit wire fraud, wire fraud and conspiracy to commit money laundering each carry a maximum penalty of 20 years in prison. Benjamin and Lala are also charged with one count of aggravated identity theft, which carries a mandatory sentence of two years in prison.
The FBI investigated the case, with assistance from the U.S. Attorney’s Office for the Northern District of Illinois and former Assistant United States Attorney Jonathan Keim. Assistant United States Attorneys Edward J. Canter and Catherine L. Crosby are prosecuting the case.
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On November 17, 2020, a federal grand jury indicted Ohimai Asikhia, 36, of Glassboro, New Jersey, and Paulinus Ebhodaghe, 39, of Clementon, New Jersey with conspiracy to commit money laundering. The indictment alleges that from June 2018 through November 2018, Asikhia and Ebhodaghe conspired to launder the proceeds of various fraud schemes, including business email compromise fraud schemes and online romance scams. If convicted Asikhia and Ebhodage face a maximum penalty 20 years in prison and a fine of $500,000 or both for conspiracy to commit money laundering.
The FBI investigated the case, with assistance from the U.S. Attorney’s Office for the District of New Jersey and former Assistant United States Attorney Jonathan Keim. Assistant United States Attorney Edward J. Canter is prosecuting the case.
The charges contained in the indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.