Northern District of Alabama
Press releases recorded for this federal judicial district.
Joint Statement from U.S. Attorney Jay E. Town and FBI Special Agent in Charge Johnnie Sharp, Jr. Regarding the Noose Found in NASCAR’s Bubba Wallace’s Garage at Talladega SuperspeedwayRead the Press Release
“On Monday, fifteen FBI special agents conducted numerous interviews regarding the situation at Talladega Superspeedway. After a thorough review of the facts and evidence surrounding this event, we have concluded that no federal crime was committed.
The FBI learned that garage number 4, where the noose was found, was assigned to Bubba Wallace last week. The investigation also revealed evidence, including authentic video confirmed by NASCAR, that the noose found in garage number 4 was in that garage as early as October 2019. Although the noose is now known to have been in garage number 4 in 2019, nobody could have known Mr. Wallace would be assigned to garage number 4 last week.
The decision not to pursue federal charges is proper after reviewing all available facts and all applicable federal laws. We offer our thanks to NASCAR, Mr. Wallace, and everyone who cooperated with this investigation.”
Alabama Tax Preparer Indicted for Filing False ReturnsRead the Press Release
A federal grand jury in Birmingham, Alabama, returned an indictment today, charging an Alabama tax preparer with filing a false tax return for herself and preparing false tax returns for clients, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Jay E. Town for the Northern District of Alabama.
According to the indictment, Shuntan Renee Rue owned and operated Rue Tax Service, a tax return preparation business in Birmingham, Alabama. From at least 2014 to 2016, Rue allegedly falsified clients’ tax returns by claiming business losses and charitable gifts, as well as medical, unreimbursed employee, and education expenses that her clients did not incur, in order to fraudulently increase their refunds. The indictment further alleges that Rue falsely reported education expenses on her own 2013 tax return.
If convicted, Rue faces a maximum sentence of three years in prison on each count. Rue also faces a period of supervised release, restitution, and monetary penalties.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Town commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Michael Jones, Jessica Kraft, and Kevin Schneider of the Tax Division and Assistant U.S. Attorney Robert Posey, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
Alabama Tax Preparer Indicted for Filing False ReturnsRead the Press Release
A federal grand jury in Birmingham, Alabama, returned an indictment today, charging an Alabama tax preparer with filing a false tax return for herself and preparing false tax returns for clients, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Jay E. Town for the Northern District of Alabama.
According to the indictment, Shuntan Renee Rue owned and operated Rue Tax Service, a tax return preparation business in Birmingham, Alabama. From at least 2014 to 2016, Rue allegedly falsified clients’ tax returns by claiming business losses and charitable gifts, as well as medical, unreimbursed employee, and education expenses that her clients did not incur, in order to fraudulently increase their refunds. The indictment further alleges that Rue falsely reported education expenses on her own 2013 tax return.
If convicted, Rue faces a maximum sentence of three years in prison on each count. Rue also faces a period of supervised release, restitution, and monetary penalties.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Town commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Michael Jones, Jessica Kraft, and Kevin Schneider of the Tax Division and Assistant U.S. Attorney Robert Posey, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
Statement from U.S. Attorney Jay E. Town Regarding the Noose Found in NASCAR’s Bubba Wallace’s Garage at Talladega SuperspeedwayRead the Press Release
"The U.S. Attorney’s office for the Northern District of Alabama, FBI and the Department of Justice Civil Rights Division are reviewing the situation surrounding the noose that was found in Bubba Wallace’s garage to determine whether there are violations of federal law. Regardless of whether federal charges can be brought, this type of action has no place in our society."
Department of Justice Announces Launch of Civil Rights Reporting PortalRead the Press Release
WASHINGTON – The Department of Justice today announced the launch of the Civil Rights Reporting Portal. This new online tool will make it easier for the public to report a civil rights violation.
“The department is committed to upholding the civil and constitutional rights of all people in the United States,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Civil Rights Reporting Portal will make it easier for the public to connect with us, which in turn makes us more effective at upholding these important rights. I encourage the public to use this portal to report civil rights violations.”
The new Civil Rights Reporting Portal – located at civilrights.justice.gov – will consolidate over 30 unique reporting pathways. The portal will dramatically ease the burden on victims of civil rights violations to identify the proper reporting channel. The form is fully accessible to people with disabilities. It is also available in both English and Spanish, with more languages to be added over the next year.
Individuals who believe they may have been a victim of a civil rights violation can learn how to report violations to the Department by visiting civilrights.justice.gov. When appropriate, the Civil Rights Division staff will refer complainants to other agencies that are responsible for handling specific types of complaints.
Individuals who believe they are a victim of criminal violation of their civil rights, such as misconduct by law enforcement officers, a hate crime, or human trafficking, should contact their local FBI office.
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.
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Department of Justice Observes the 15th Annual World Elder Abuse Awareness DayRead the Press Release
BIRMINGHAM, Ala. – Today, U.S. Attorney Jay E. Town joined Attorney General William P. Barr and the entire Department of Justice in observing the 15th Annual World Elder Abuse Awareness Day. The Department echoes voices around the world condemning elder abuse, neglect and exploitation.
“Elder abuse is a serious crime against some of our most vulnerable citizens. Our seniors deserve our best efforts to prosecute those who profit from their vulnerabilities,” Town said. “We remain committed to protecting and pursuing justice for North Alabama’s seniors.”
The COVID-19 pandemic has created unprecedented challenges for our country and the world, but among those most severely affected by the threat of the novel virus are our senior citizens. During this time when seniors are most vulnerable and isolated from their families and loved ones by social distancing and quarantine restrictions, bad actors have immediately exploited this international tragedy to prey on the elderly through a whole host of scam and fraud schemes. As the world takes this day to remember the elderly during these uncertain times, the Department of Justice remains relentlessly committed, through its department-wide Elder Justice Initiative, to prevent and prosecute fraud on America’s seniors.
The Department will aggressively prosecute fraudsters exploiting the Covid-19 pandemic and targeting seniors offering them fake testing kits and fake help obtaining stimulus and Paycheck Protection Program Funds. On this day dedicated to recognizing our seniors, the Department of Justice sends a strong message that we continue the fight to keep seniors safe a top priority.
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.
Major strides have already been made to that end:
- National Elder Fraud Hotline: 833-FRAUD-11
Earlier this year Attorney General Barr launched a National Elder Fraud Hotline. Staffed by experienced case managers who provide personalized support to callers, the hotline serves to assist elders and caretakers who believe they have been a victim of fraud by reporting and providing appropriate services.
- Transnational Elder Fraud Strike Force: Established in June 2019 to combat foreign elder fraud schemes, the Strike Force is composed of the Department’s Consumer Protection Branch and six U.S. Attorneys’ Offices along with FBI special agents, Postal Inspectors, and numerous other law enforcement personnel. Since its inception, prosecutors in Strike Force districts brought cases against more than 140 sweep defendants.
- Money Mule Initiative: Since October 2018, the Department and its law enforcement partners began a concentrated effort across the country and around the world to disrupt, investigate, and prosecute money mule activity used to facilitate fraud schemes, especially those victimizing senior citizens. In 2019 actions were taken to halt the conduct of more than 600 domestic money mules, exceeding a similar effort against approximately 400 mules in the previous year.
- Holding foreign-based perpetrators and those that flee the United States accountable: Transnational criminal organizations are targeting our elder population in schemes including mass mailing fraud, grandparent scams, romance scams, lottery and sweepstakes scams, IRS and Social Security Administration imposter scams, and technical-support scams.
For more information on enforcement actions, training and resources, research, and victim services, please visit www.justice.gov/elderjustice.
- National Elder Fraud Hotline: 833-FRAUD-11
Statement from United States Attorney Jay E. Town on Fallen Moody Police Lt. Stephen WilliamsRead the Press Release
“Fallen Moody PD Lt. Stephen Williams was laid to rest today. Law enforcement from around Alabama and the entire country gathered to pay tribute to a brother whose end of watch came much too soon. I was honored to be among them. We must forever remember his sacrifice in the protection and service to his community. My thoughts and prayers are with the Williams family, Moody PD, and all who knew him.”
Statement from United States Attorney Jay E. Town on the Death of Moody Police Sergeant Stephen WilliamsRead the Press Release
BIRMINGHAM, Ala. – “Moody Police Sergeant Stephen Williams’ end of watch has come much too soon. Our condolences and prayers are with his family, friends, and fellow officers. His loss is a loss for all of Alabama. This serves as yet another heartbreaking and stark reminder of the perils encountered by law enforcement each day.”
Joint Statement on Vandalism to the Hugo L. Black United States Courthouse and Robert S. Vance Federal Building and United States CourthouseRead the Press Release
BIRMIMGHAM, Ala. – U.S. Attorney Jay E. Town, FBI Special Agent in Charge Johnnie Sharp, Jr. and United States Marshal Marty Keely today release the following statement:
“Those who cause any damage to federal property have committed a federal crime and will be prosecuted in a federal court. We have zero tolerance for those who incite, organize, encourage, or engage in civil unrest, violence, and destructive behavior anywhere in the Northern District of Alabama. And make no mistake, we will bring those individuals to justice who do.”
Romanian Man Sentenced to 34 months for Aggravated Identity Theft and Access-Device FraudRead the Press Release
BIRMINGHAM, Ala. – A federal judge yesterday sentenced a Romanian man for aggravated identity theft and access device fraud, announced U.S. Attorney Jay E. Town and U.S. Immigration and Custom Enforcement’s Homeland Security Investigations Assistant Special Agent in Charge for Alabama James G. Hernandez.
U.S. District Judge Liles C. Burke sentenced Alexandru Stoica, 35, to 34 months for aggravated identity theft and illegally possessing and using fraudulent access devices in Limestone County in October 2019.
According to court documents, Stoica knowingly used and attempted to use unauthorized access devices – gift cards – encoded with bank account numbers each issued to other persons, for the purpose of withdrawing money from the bank accounts.
“Credit card fraud and identity theft causes tremendous financial hardship and stress for the victims. It robs them of their privacy and sense of security,” Town said. “Those who engage in such cowardly behavior will continue to be prosecuted in a federal courtroom and, once convicted, continue on to federal prison.”
“This sentencing is a warning to other criminals that crime doesn’t pay. We will continue to identify and arrest individuals stealing from the hardworking people of this community,” said James Hernandez, Assistant Special Agent in Charge for Alabama. “Protecting the integrity of the nation’s financial systems is one of HSI’s top priorities and we will remain ever vigilant.”
Immigration and Custom Enforcement’s Homeland Security Investigations investigated the case, which Assistant U.S. Attorney Michael R. Pillsbury prosecuted.
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.
Birmingham Man Indicted for Gas Station RobberyRead the Press Release
BIRMINGHAM, Ala. – A federal grand jury yesterday indicted a Birmingham man in connection to an armed robbery of a Shell gas station, announced U.S. Attorney Jay E. Town and Federal Bureau of Investigation Special Agent in Charge Johnnie Sharp, Jr.
A two-count indictment filed in U.S. District Court charges Dennis Dewayne Dothard, 37, with one count of Hobbs Act Robbery and one count of carrying and brandishing a firearm during and in relation to a violent crime.
“The FBI once again showed its investigative prowess in swiftly investigating and solving this crime,” Town said. “We also offer our gratitude to our local law enforcement partners for smartly apprehending the defendant.”
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. The maximum penalty for Hobbs Act robbery is 20 years in prison.
Brandishing a firearm during and in relation to a violent crime carries a mandatory seven years in prison per count, to be served consecutively to any other sentence imposed for the crime.
FBI investigated the cases along with the Alabama Law Enforcement Agency, Jefferson County Sheriff’s Office and Hoover Police Department. Assistant U.S. Attorney Kevin Sanchez 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.
Convicted Felon Charged with Possessing a Pipe BombRead the Press Release
BIRMINGHAM, Ala. – A federal grand jury today indicted a Madison man for possessing a pipe bomb, announced U.S. Attorney Jay E. Town and Bureau of Alcohol, Tobacco, Firearms and Explosives Acting Special Agent in Charge Frank Haera.
A three-count indictment filed in U.S. District Court charges Joshua Andrew Quillin, 29, with possessing the destructive device, which was not registered to him in the National Firearms Registration and Transfer Record, as required by law. Quillin possessed a pipe bomb on April 23, 2020, in Madison County, according to the indictment.
“The defendant’s brazen act could have resulted in a devastating outcome,” Town said. “We will continue to prosecute violent criminals to the fullest extent of the law in an effort to keep our communities safe.”
“ATF’s focus on removing alleged illegal destructive devices from individuals’ aid is reducing the potential for violent crime,” Haera said.
The maximum penalty for possessing a destructive device is 10 years in prison and a $10,000 fine.
The maximum penalty for being a felon in possession of a destructive device is 10 years in prison and a $250,000 fine.
ATF investigated the case, along with Huntsville Police Department. Assistant U.S. Attorney Mary Stuart Burrell 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.
Justice Department Files Statement of Interest Regarding Section 201 of the Voting Rights ActRead the Press Release
The Department of Justice filed a Statement of Interest Monday in an Alabama federal court to promote the proper and uniform interpretation of the Voting Rights Act. The Statement of Interest is part of the Department of Justice’s continuing efforts around the country to enforce our nation’s federal voting rights laws.
The lawsuit in question, brought by private plaintiffs, includes constitutional and statutory challenges to Alabama’s witness requirement for absentee ballots. Although certain of private plaintiffs’ claims relate to the COVID-19 pandemic, plaintiffs have also asked the court to enjoin Alabama’s witness requirement permanently as a violation of Section 201 of the Voting Rights Act.
The Statement of Interest explains that Section 201 prohibits denial of the right to vote to citizens who fail to prove their qualifications by the voucher of registered voters or members of any other class. Alabama’s absentee witness requirement, however, does not violate Section 201. The Statement of Interest does not take a position on any of the private plaintiffs’ other claims.
“The Voting Rights Act outlaws certain practices that deprive Americans of the right to vote because of race and other protected traits. The Voting Rights Act does not outlaw all voting-related requirements enacted by the States,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “Congress has entrusted the U.S. Department of Justice with enforcement of the Voting Rights Act and the other federal voting rights laws. These laws protect the right of Americans to vote for their preferred candidates. We will continue to enforce them fairly, including by explaining to courts the legal framework that governs challenges to the voting laws enacted by the States.”
Section 201 of the Voting Rights Act is a permanent, nationwide prohibition on the use of tests and devices in our elections. These unlawful procedures include literacy tests, educational achievement or knowledge tests, good moral character requirements, and voucher requirements.
More information about the Voting Rights Act and other federal voting rights laws is available on the Department of Justice website at https://www.justice.gov/crt/voting-section. Complaints about possible violations of the federal voting rights laws may be reported to the Justice Department’s Civil Rights Division at 1-800-253-3931.
U.S. Attorney Jay E. Town Recognizes Police WeekRead the Press Release
BIRMINGHAM, Ala. — In honor of National Police Week, U.S. Attorney Jay E. Town will recognize the service and sacrifice of federal, state, and local, law enforcement. The week will be observed Sunday, May 10 through Saturday, May 16, 2020.
“There is no more noble profession than serving as a police officer,” said Attorney General William P. Barr. “The men and women who protect our communities each day have not just devoted their lives to public service, they’ve taken an oath to give their lives in order to ensure our safety. And they do so not only in the face of hostility from those who reject our nation’s commitment to the rule of law, but also in the face of evolving adversity – such as an unprecedented global health pandemic. This week, I ask all Americans to join me in saying ‘thank you’ to our nation’s federal, state, local, and tribal law enforcement officers. Their devotion and sacrifice to our peace and security will not be taken for granted.”
“During this unprecedented time, it is especially important that we recognize our men and women of the badge for the sacrifices they make each day. They have continued to put the safety of the citizens of Northern Alabama at the forefront and are the very best among us,” Town said. “It’s noble work It’s tough work. They have to be at their best, especially when the worst among us are at their worst. We must never forget that the line of duty is endowed by sacrifice, selflessness, and courage. It’s Police Week. Back the Blue!”
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 from around the country, recognizing their hard work, dedication, loyalty and commitment to keeping our communities safe. This year the COVID-19 pandemic has underscored law enforcement officers’ courage and unwavering devotion to the communities they swore to serve.
Based on data collected and analyzed by the FBI’s Law Enforcement Officer Killed and Assaulted (LEOKA) Program, 89 law enforcement officers died nationwide in the line of duty in 2019, including 3 officers here in the Northern District of Alabama.
Comprehensive data tables about these incidents and brief narratives describing most of the fatal attacks are included in the sections of Law Enforcement Officers Killed and Assaulted, 2019.
The first officer fatality this year from the State of Alabama involved an officer in the Northern District of Alabama who was fatally shot while on duty. Kimberly Police Department Officer Nick O’Rear’s end of watch was on February 5, 2020.
The names of the fallen officers who have been added in 2020 to the wall at the National Law Enforcement Memorial will be read on Wednesday, May 13, 2020, during a Virtual Annual Candlelight Vigil. Because public events have been suspended as a result of COVID-19, the vigil will be livestreamed to the public at 8:00 pm (EDT). The online event can be viewed at https://www.youtube.com/user/TheNLEOMF.
To learn more about National Police Week, please visit: www.policeweek.org.
To register for the virtual candlelight vigil, please visit: www.nleomf.org.
Department of Justice public service announcement: Honoring the Sacrifices of Law Enforcement during Police Week 2020 – https://youtu.be/cFG52fcUIZc
Former Co-Owner and CEO of Pharmacy Pleads Guilty in Prescription Drug Billing SchemeRead the Press Release
BIRMINGHAM, Ala. – Today an additional defendant pled 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 Jay E. Town, 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 announced the guilty plea.
John Jeremy Adams, 39 of Panama City Beach, Florida entered a guilty plea before U.S. District Judge L. Scott Coogler to one count of conspiring to commit health care and mail fraud, 16 counts of health care fraud, one count of conspiring to pay kickbacks to a prescriber, and seven counts of spending the proceeds of health care fraud. According to the plea agreement, Adams stipulated to a 10-year sentence.
Adams is the former owner and chief executive officer of Northside Pharmacy doing business as Global Compounding Pharmacy. Mr. Adam’s guilty plea brings the total number of defendants who have pled guilty in the larger investigation to 23. Those who have previously pled guilty include two nurse practitioners, the COO, a vice president of sales, an operations manager, a district manager, and multiple sales representatives. Trial against the four remaining defendants is set for June 29, 2020:
- James A. Mays, III, 44 of Winfield, Alabama, a pharmacist, charged in 20 counts;
- Jessica Linton, 37 of Clearwater, Florida, the manager of the billing team at Global, charged in 24 counts;
- Lisa Holmes, 41 of Troy, Alabama, a district manager supervising sales representatives at Global, charged in 12 counts; and
- John Gladden, 50, of Tallahassee, Florida, a district manager supervising sales representatives at Global, charged in nine counts.
“Our Office and partner agencies intend to investigate and prosecute all those who treat our health insurance plans as their personal piggy banks,” lead prosecutor Chinelo Diké-Minor said. “It may take time, but we intend to see that justice is done.”
“These defendants committed a reprehensible federal crime when they chose to steal funds designated to care for the sick,” United States Attorney Jay Town said. “Especially in this day and time where our health care system has the potential to be overwhelmed, we can ill afford to allow the wellness of many to be sacrificed by the greed of a few. I want to thank our partner agencies for their continued efforts to put a stop to health care fraud. We will continue to stand with them to not only uncover these frauds...but see them prosecuted in a federal courtroom.”
“It is sad to think that there are those who are so greedy they would steal from the sick,” FBI Special Agent in Charge Sharp said. “Today, Adam's has admitted to his greed and now, he along with his partners in crime, will be held accountable.”
“It’s more important than ever that we thoroughly investigate and bring to justice those who seek Federal health care programs as a way to line their own pockets,” said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. “Together with our law enforcement partners we will continue to flush out the health care fraud.”
"I trust this sentence sends a message to those who would exploit government programs intended to help current and former military members and their families," DCIS Special Agent in Charge Cynthia Bruce said. "The DCIS, with our law enforcement partnerships, will dedicate all the time that is needed and resources available to bring these offenders to justice."
“In addition to undermining public health and safety, health care fraud cheats Americans out of more than eighty billion dollars a year in higher premiums and increased out-of-pocket expenses,” said Adrian Gonzalez, Postal Inspector in Charge, Houston Division. “The United States Postal Inspection Service is committed to investigations with our law enforcement partners whenever health care fraudsters try to involve the U.S. Mail in their nefarious schemes, as in this case against John Jeremy Adams, who was doing business as Global Compounding Pharmacy.”
According to the plea agreement, Mr. Adams participated in a scheme to cause the pharmacy he co-owned to bill for medically unnecessary prescription drugs. He paid prescribers to issue prescriptions and directed 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.
According to the plea agreement, Mr. Adams as directed the scheme and also joked about it. It describes a text exchange between him and another defendant in which they discuss altering prescriptions. She tells him she will be getting him white out as a birthday gift, and he responds “Yep. Made us money.”
The maximum punishment for the 18 U.S.C. § 1349 health care and mail fraud conspiracy charge 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 the 18 U.S.C. § 371 kickback conspiracy charge is 5 years in prison and a $250,000 fine. The maximum penalty for the 18 U.S.C. § 1957 spending statute charge is 10 years in prison and a $250,000 fine.
The FBI, HHS-OIG, DCIS, USPIS, IRS-CI, investigated the cases, which Assistant U.S. Attorneys Chinelo Dike-Minor, Don Long, and Edward Canter are prosecuting. The Veteran Affairs Office of Inspector General Criminal Investigations Division provided assistance in the investigation.
Fultondale Doctor Pleads Guilty to Prescribing Controlled Substances and Health Care Fraud; Demopolis Pharmacist Pleads Guilty to Health Care FraudRead the Press Release
BIRMINGHAM, Ala. – A Fultondale doctor today pleaded guilty to prescribing controlled substances without a legitimate medical purpose and engaging in health care fraud announced U.S. Attorney Jay E. Town, DEA Assistant Special Agent in Charge Clay Morris, and FBI Special Agent in Charge Johnnie Sharp, Jr.
PAUL ROBERTS, M.D., 48, of Fultondale, Ala, a physician and former co-owner of Southeast Urgent Care (“SEUC”) in Fultondale, pled guilty before U.S. District Court Judge Annemarie Axon to 16 counts stemming from a June 2019 Second Superseding Indictment. According to the plea agreement, Roberts stipulated to a 72-month sentence and agreed to surrender his Alabama and other State medical licenses. He also agreed to pay a fine of $100,000 and restitution of $2.2 million.
“We have recently heard many stories about the sacrifices made by physicians and pharmacists to care for patients during this difficult time. Unfortunately, there are also those who have chosen to sacrifice patient care for pure greed,” First Assistant United States Attorney Lloyd Peeples said. “Those who engage in such unlawful practices unnecessarily drive up healthcare costs and destroy lives in our communities.”
“The only cure for the pain caused by pill mill doctors, like Roberts, is public awareness, victims who come forward, and a determined fleet of FBI agents coupled with our great partners who will arrest and prosecute these unscrupulous practitioners when they choose to sell their ethics, betray their oath, and break the law,” Sharp said.
“This guilty plea is yet another example of DEA’s efforts to rid Alabama of doctors who place greed and personal wealth over the well-being of Alabamians,” Morris said. “The DEA, FBI and the United States Attorney’s Office stand steadfast in our fight against the opioid epidemic in Alabama. We will continue to investigate, arrest and prosecute drug dealers who prey on those struggling with addiction and hide behind their veil of a professional practice.”
Roberts pleaded guilty to 12 counts of prescribing controlled substances without a legitimate medical purpose. According to the plea agreement, on days Roberts was out of the office, he allowed unqualified staff, including an x-ray technician, to prescribe controlled substances to patients using prescriptions that Roberts pre-signed. The plea agreement also states that Roberts illegally prescribed controlled substances, including oxycodone, to two women. He issued them to one in exchange for sexual favors and to the other even though he knew that she was abusing controlled substances.
Roberts also pleaded guilty to two health care fraud conspiracies and two counts of participating in a health care fraud scheme. The first focused on fraudulently billing for office visits. According to the plea agreement, on dates he was absent from the office, Roberts caused unqualified staff to see patients, and then caused SEUC to bill Blue Cross Blue Shield of Alabama as though Roberts had provided those services.
The second conspiracy and scheme focused on fraudulently billing health insurance plans through their third-party administrators for compounded drugs. According to the plea agreement, beginning in 2012, Roberts entered into an unlawful agreement with his co-defendants, Stanley Reeves, a pharmacist and owner of F&F Drugs, a Demopolis-based pharmacy, and Brett Taft, a Tuscaloosa-based sales representative, to fraudulently bill these health insurance plans for medically unnecessary compounded drugs. To induce Roberts to issue these medically unnecessary drugs, Taft paid Roberts kickbacks. Roberts then issued the prescriptions, sometimes without patients’ knowledge, and sent them to F&F Drugs, which then filled and billed the prescriptions to insurance plans. Reeves would then pay Taft a portion of the billing proceeds, with Taft using some of those proceeds to pay Roberts kickbacks. In addition, to induce patients to accept these medically unnecessary drugs, Roberts and his co-defendants agreed that F&F Drugs would waive patient co-pays, and did so in violation of the health insurance plan rules. And, to maximize profit from each prescription, Roberts and his co-defendants also 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 by Roberts.
Town, Morris and Sharp also announced that last week, one of Roberts’s co-defendants, STANLEY REEVES, 62, of Demopolis, Ala, pharmacist and owner of F&F Drugs in Demopolis, pleaded guilty to one count of conspiring to commit the above-described compounded drug health care fraud conspiracy and scheme. Reeves did so via a simultaneously filed information. According to the 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 Roberts. Under the terms of the plea agreement, Reeves stipulated to 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 is sentenced.
The maximum punishment for the dispensing controlled substances charges is 20 years in prison and a $1,000,000 fine. The maximum penalty for the health care fraud and conspiracy charges is 10 years in prison and a $250,000 fine.
FBI and DEA investigated the cases, which Assistant U.S. Attorneys Chinelo Dike-Minor, Austin Shutt, Kristen Osborne, and Lloyd C. Peeples are prosecuting.
Birmingham Man Sentenced for Bank Robbery of Wells Fargo BankRead the Press Release
BIRMINGHAM, Ala. – A federal judge today sentenced a Birmingham man for bank robbery, announced U.S. Attorney Jay E. Town and FBI Special Agent in Charge Johnnie Sharp, Jr.
U.S. District Judge Annemarie Axon sentenced James Earl Crenshaw, 49, to 100 months in prison. In September 2019, Crenshaw robbed the Wells Fargo Bank located in downtown Birmingham. In January, Crenshaw pled guilty to one count of robbing a federally insured bank.
“Those who rob banks and threaten the lives of innocent employees are exactly the violent criminals we will remove from free society and relocate to prison,” Town said. “Crenshaw will have plenty of time to reflect on his dangerous actions while sitting in a federal prison cell.”
“Thanks to the great cooperative work between the FBI and our local partners, Crenshaw is off the street and won’t be able to threaten innocent lives for years to come,” Sharp said.
The FBI investigated the case, which Assistant U.S. Attorney Britteny Bucak prosecuted.
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.
U.S. Attorney Jay E. Town and the Federal Bureau of Investigation Warn of Online Child Exploitation During COVID-19 PandemicRead the Press Release
BIRMINGHAM, Ala. – U.S. Attorney Jay E. Town and Federal Bureau of Investigation Special Agent in Charge Johnnie Sharp, Jr. warn parents and caregivers of the dangers of online child sexual exploitation, especially during a time when children will have an increased online presence.
“Due to COVID-19, children are online more than ever increasing their susceptibility to dangerous predators lurking online,” Town said. “Parents are, and remain, the best first line of defense to the practice of digital and cyber hygiene and making certain that online predators cannot access our children. Stay safe at home. Stay safe online.”
“The internet, for all its benefits, also gives criminals and predators an easy way to reach young people,” Sharp said. “I want to encourage parents to have open and ongoing conversations about safe and appropriate online behavior and immediately report any inappropriate contact between an adult and your child to law enforcement.”
Every year thousands of children become victims of crime, whether through kidnappings, violent attacks, sexual abuse or online predators.
- In FY 2019, the FBI opened more than 3,070 Crimes Against Children cases, arrested more than 2,300 individuals involved in the sexual exploitation of children, and located and identified more than 2,450 child victims.
- In FY 2018, the FBI opened more than 3,175 Crimes Against Children cases, arrested more than 2,380 individuals involved in the sexual exploitation of children, and located and identified more than 2,670 child victims.
U.S Attorney Town and FBI SAC Sharp offer the following recommendations to help educate and prevent children from becoming victims of child predators and sexual exploitation during this time of national emergency:
Online Child Exploitation
- Discuss Internet safety with children of all ages when they engage in online activity.
- Review and approve games and apps before they are downloaded.
- Make sure privacy settings are set to the strictest level possible for online gaming systems and electronic devices.
- Monitor your children’s use of the Internet; keep electronic devices in an open, common room of the house.
- Check your children’s profiles and what they post online.
- Explain to your children that images posted online will be permanently on the Internet.
- Make sure children know that anyone who asks a child to engage in sexually explicit activity online should be reported to a parent, guardian, or other trusted adult and law enforcement.
- Remember that victims should not be afraid to tell law enforcement if they are being sexually exploited. It is not a crime for a child to send sexually explicit images to someone if they are compelled or coerced to do so.
To report suspicious activity or instances of child sexual exploitation, contact your local FBI field office or submit a tip online at tips.fbi.gov. Reports can also be filed with the National Center for Missing & Exploited Children (NCMEC) or online at www.cybertipline.org.
For more information on the FBI’s guidance on child exploitation and protecting your kids visit https://www.fbi.gov/scams-and-safety/protecting-your-kids.
Former Bureau of Prisons Officer Pleads Guilty to Sexually Assaulting Two Women on Multiple Occasions and Lying to InvestigatorsRead the Press Release
BIRMINGHAM, Ala. – Adrian L. Stargell, 39, a former Bureau of Prisons (BOP) Correctional Officer who worked as an Education Specialist at the FCI-Aliceville facility in Aliceville, Alabama, pleaded guilty today before U.S. District Judge L. Scott Coogler, announced DOJ Civil Rights Division Assistant Attorney General Eric Dreiband, U.S. Attorney Jay E. Town and Special Agent in Charge of the OIG Miami Field Office James F. Boyersmith. Stargell pleaded guilty to two counts of violating the rights of two women whom he sexually assaulted on multiple occasions and one count of making false statements to federal agents from the United States Department of Justice Office of the Inspector General (OIG).
“The Department of Justice will not tolerate prison officials who abuse their positions of power to sexually assault individuals in their custody,” said Assistant Attorney General Eric Dreiband. “The Civil Rights Division will continue to vigorously prosecute these cases and secure justice for victims of these despicable crimes.”
“Sexual assault is as despicable as it is illegal,” said U.S. Attorney Jay E. Town. “We will not tolerate this abhorrent behavior. Our resolve must instead be to bring the full weight of our system of justice to every predator among us.”
“Stargell’s job was to help advance inmates’ rehabilitation through education,” said James F. Boyersmith, Special Agent in Charge of the OIG Miami Field Office. “Instead, he abused his power, sexually assaulted two inmates, and lied to try to cover up his actions. This kind of conduct will not be tolerated. Special Agents at the Department of Justice Office of the Inspector General will continue to ensure that anyone who commits these kinds of despicable acts are brought to justice.”
According to court documents, during 2017 and 2018, while on-duty as an Education Specialist, Stargell sexually assaulted two different women who were incarcerated at FCI-Aliceville. Stargell admitted that he knew what he was doing was wrong and against the law, yet he did it anyway. When OIG agents interviewed Stargell about the allegations of sexual misconduct, Stargell lied by falsely denying having any sexual contact with the victims.
Stargell will be sentenced on Aug. 27, 2020.
This case was investigated by the Miami Division of the DOJ OIG. Assistant United States Attorney Robert Posey of the Northern District of Alabama and Special Litigation Counsel Fara Gold and Trial Attorney Anna Gotfryd of the Criminal Section of the Civil Rights Division of the U.S. Department of Justice are prosecuting the case.
Alabama United States Attorneys Announce $9,645,679 Award to Address Covid-19 Pandemic in AlabamaRead the Press Release
BIRMINGHAM, Ala. – United States Attorney Jay E. Town, Northern District of Alabama, United States Attorney Louis V. Franklin for the Middle District of Alabama, and United States Attorney Richard W. Moore for the Southern District of Alabama today announced that the State of Alabama received $9,645,679 in Department of Justice grants to respond to the challenges posed by the outbreak of COVID-19.
The grant is available under the Coronavirus Emergency Supplemental Funding program, authorized by the recent stimulus legislation signed by President Trump. In addition, to the state award, over $4.8 million has been allocated to local agencies throughout Alabama, with $2,954,663 being set aside for twenty-five jurisdictions in the Northern District. Those jurisdictions can find out if they are eligible and apply immediately by visiting this website. The Justice Department is moving quickly, awarding grants on a rolling basis and aiming to have funds available for drawdown as soon as possible after receiving applications. Jurisdictions not listed for individual allocations may be eligible to apply for part of the state funding through the Alabama Department of Economic and Community Affairs.
“The COVID- 19 pandemic has created many challenges for law enforcement and our first responders to safely perform important duties,” Town said. “These funds from DOJ will be used to ensure that our brave men and women of the badge can continue the mission of safeguarding the citizens of our great state.”
“As the coronavirus crisis continues, every day law enforcement officers and first responders knowingly put themselves at risk of exposure as they do their jobs serving and protecting the community,” stated U.S. Attorney Louis V. Franklin, Sr. “This funding will help the State of Alabama and numerous local agencies that are struggling with limited resources to address many critical needs. I encourage all agencies eligible to apply for funding to do so.”
“The outbreak of COVID-19 and the public health emergency it created are sobering reminders that even the most routine duties performed by our nation’s public safety officials carry potentially grave risks,” said Katharine T. Sullivan, Principal Deputy Assistant Attorney General for the Office of Justice Programs. “These funds will provide hard-hit communities with critical resources to help mitigate the impact of this crisis and give added protection to the brave professionals charged with keeping citizens safe.”
The law gives jurisdictions considerable latitude in the use of these funds for dealing with COVID-19. Potential uses include hiring personnel, paying overtime, purchasing protective equipment and distributing resources to hard-hit areas. Funds may also be used to help correctional facilities cover costs related to COVID-19, including, but not limited to, sanitation, contagion prevention and measures designed to address the related medical needs of inmates, detainees and correctional personnel.
Agencies that were eligible for the fiscal year 2019 State and Local Edward Byrne Memorial Justice Assistance Grant Program are candidates for the emergency funding. Local units of government and tribes will receive direct awards separately according to their jurisdictions’ allocations. For a list of all awards thus far, visit the Coronavirus Emergency Supplemental Funding program webpage.
U.S. Attorney Jay E. Town Sends Letter to Law Enforcement PartnersRead the Press Release
Birmingham, Ala. — U.S. Attorney Jay E. Town sent a letter to law enforcement partners in Northern Alabama today, encouraging continued partnerships in preventing a public health crisis from becoming a public safety crisis.
“While this pandemic has brought to the fore the very best among us, we are unfortunately becoming increasingly aware of myriad coronavirus-related criminal activities in our District and around the country,” Town said. “The COVID-19 pandemic has created many legal challenges for every member and layer of law enforcement. I am proud of the partnerships that we have forged and it is precisely those relationships that will provide the citizens of Alabama the best ability to avoid becoming victims of coronavirus-related frauds and crimes. Together we will resolve to prevent a public health crisis from becoming a public safety crisis.”
The letter was sent to law enforcement in Northern Alabama, as part of a coordinated, nationwide effort to combat COVID-19 related fraud. On March 20, Attorney General William Barr directed all 93 U.S. Attorneys to prioritize the investigation and prosecution of COVID-19 fraud.
U.S. Attorney Town encourages the public to report COVID-19 related fraud to the National Center for Disaster Fraud (NCDF) hotline at 1-866-720-5721or to the email address [email protected].
Read U.S. Attorney Town’s letter to law enforcement partners below.
Sheltering in a Crime SceneRead the Press Release
American society’s discussion on crime typically focuses on those who threaten our communities and hurt us – the crooks, the abusers, the bad guys, the worst among us. But what those in law enforcement know is that the victims of heinous acts belong at the forefront as well. After all the crime victim drives our criminal justice system.
Ronald Reagan proclaimed the first Victims’ Rights Week in 1981, putting crime victims' rights, needs, and concerns in a prominent spot on the American agenda. He also established the President's Task Force on Victims of Crime, which laid the groundwork for a national network of services and legal safeguards for crime victims. President Trump and his administration have implemented historic levels of support for victim assistance and victim compensation.
While most violent crime is continuing to decrease during the pandemic, domestic violence calls for service are on the rise. People are more isolated. Abusive partners are under more stress. The options for escape are limited, if not cut off entirely.
Victims of crime are also without support services during this pandemic. Courts, shelters, or even other family members are frequently out of reach. Victims of domestic abuse are then forced to stay with their abusers.
Conversely, while domestic violence calls to law enforcement are increasing, protection from abuse orders are decreasing and becoming more difficult to secure as courts grapple with continuing operations while balancing the health of courthouse and courtroom personnel.
It is no solution to await the eventual end of social distancing to address the on-going and ever-present dangers endured by victims of domestic abuse. The public’s trust in our justice system hinges upon protecting victims and holding offenders accountable. Overcoming the challenges that a pandemic presents to our society and its public institutions demands our best. Our resolve to maintain the rule of law must not be one of the casualties of the coronavirus.
Prosecutors and law enforcement have proven that resolve, and shown their mettle, during this pandemic. Together, they stand at the ready to defend victims and seek justice against their abusers. But we are doing more than just arresting and prosecuting criminals.
Indeed, the hope and relief that our justice system provides should never be out of reach of victims just because they cannot physically pass through the doors of a courthouse. The recently enacted Coronavirus Aid, Relief, and Economic Security Act – or CARES Act – provides $850 million dollars in Justice Department grants to aid in building and supporting community-based responses to the coronavirus.
In fact, the Justice Department makes hundreds of millions of dollars available each year to support victim services – the most, by far, in the history of the Crime Victims Fund. Most of that funding supports domestic violence shelters, rape crisis centers, child advocacy programs, homicide support groups, identity theft services, and local victim assistance programs.
Also, through initiatives such as Project Guardian and Project Safe Neighborhoods, the Justice Department is using more data, resources, and technology than ever before to prevent firearms from illegally coming into possession of known domestic abusers and violent offenders. And because of the partnerships forged between state and federal prosecutors, those defendants are going to federal prison…where there is no sanctuary of parole.
Being stuck inside has many challenges for all of us. But this National Crime Victims’ Rights Week, and moving forward, we need to remember that there are those among us, perhaps unknown to us, who are simply stuck. The justice system must continue to provide legal options for victims of crime, especially victims of domestic violence and abuse, during this pandemic.
U.S. Attorney General William Barr noted this week that: “Every year, millions of Americans suffer the shock and trauma of criminal victimization, affecting their well-being and sense of security and dignity.” He affirmed the Department of Justice’s “unwavering commitment to supporting them in their hour of need.” Indeed, this week is an opportunity for the men and women of the Department to recommit ourselves once again to ensuring that crime victims are protected and continue to have a voice in our legal system.
Especially at the time of the coronavirus, a public health crisis must not be allowed to expand into a public safety crisis. While all victims of crime are priorities of the criminal justice system, it is critical that we consider how sheltering in place can be especially challenging for victims of domestic violence or abuse. Their homes, too often, are neither shelters nor safe spaces.
They are crime scenes.
U.S. Attorney Jay E. Town and Homeland Security Investigations Recognize National Child Abuse Prevention MonthRead the Press Release
BIRMINGHAM, Ala. – April is National Child Abuse Prevention Month, a time to focus on the safety and well-being of our children. U.S. Attorney Jay E. Town and U.S. Immigration and Custom Enforcement’s Homeland Security Investigations Assistant Special Agent in Charge for Alabama James G. Hernandez remind parents to be vigilant of their children’s online activity.
“During this time of uncertainty, one thing remains certain is that our office and law enforcement partners remain vigilant in protecting victims of abuse. Our resolve must especially protect our children,” Town said. “Our justice system will not tolerate those who prey on innocent children. Parents are, and remain, the best first line of defense to the practice of digital and cyber hygiene and making certain that online predators cannot access our children.”
“During this time when kids are at home and online, parents need to be more vigilant about monitoring what their children are doing and who they are interacting with because there are many dangerous predators lurking online,” said James Hernandez, HSI Assistant Special Agent in Charge for Alabama. “Identifying and catching these predators is one of HSI’s top priorities, but we can’t do it alone and need your help to keep children safe.”
U.S. Attorney Town and HSI offer the following tips to help protect children online:
- Review and approve games and apps before they are downloaded
- Make sure privacy settings are set to the strictest level possible for online gaming systems and electronic devices.
- Monitor your children’s use of the internet and check profiles and what they post online.
- Keep electronic devices in a common area of the house.
- Explain to your children that images posted online will be permanently on the internet.
- Make sure that children understand online risks, only chat with people they know, block people they don’t know or trust, and trust their instinct—if something makes them feel uncomfortable, tell a parent, guardian or other trusted adult about it.
To report suspicious activity or instances of child sexual exploitation, contact your local law enforcement agency. Tips can be submitted online at www.ice.gov/tipline, by phone at 866-DHS-2-ICE or by contacting your local HSI office. Reports can also be filed with NCMEC at 1-800-THE-LOST or online at www.cybertipline.org.
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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.
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Department of Justice Commemorates National Crime Victims’ Rights WeekRead the Press Release
BIRMINGHAM, Ala. – U.S. Attorney Jay E. Town joins the Department of Justice and communities nationwide in observing National Crime Victims’ Rights Week, celebrating victims’ rights, protections and services throughout the week. This year’s observance takes place April 19-25 and features the theme, “Seek Justice| Ensure Victims' Rights | Inspire Hope.”
“Every year, millions of Americans suffer the shock and trauma of criminal victimization, affecting their well-being and sense of security and dignity,” said Attorney General William P. Barr. “To these victims, we affirm our unwavering commitment to supporting them in their hour of need. We also commend the thousands of victim advocates and public safety professionals who labor tirelessly to secure victims’ rights and support survivors.”
“As we observe National Crime Victims’ Rights Week, let us remember not only crime victims and survivors, but also take time to recognize those who work diligently each day to provide services and support to victims of crime,” Town said. “Our system of justice must not only provide access to the courts and an opportunity for their voice to be heard, but also to provide hope to those seeking their own courage to come forward out of the breach.”
“While we have made tremendous progress driving down crime and violence across the country, far too many Americans continue to suffer the pain and loss of criminal victimization,” said Katharine T. Sullivan, Principal Deputy Assistant Attorney General of the Office of Justice Programs. “This week, we stand by these survivors and their families, and we pledge our ongoing support to the countless men and women who serve them with such extraordinary skill and compassion.”
Ronald Reagan proclaimed the first Victims’ Rights Week in 1981, putting crime victims' rights, needs, and concerns in a prominent spot on the American agenda. He also established the President's Task Force on Victims of Crime, which laid the groundwork for a national network of services and legal safeguards for crime victims. President Trump and his administration have implemented historic levels of support for victim assistance and victim compensation.
Some 3.3 million Americans age 12 and older were victims of violent crime in 2018, according to the National Crime Victimization Survey. The Office for Victims of Crime (OVC), part of the Justice Department’s Office of Justice Programs, supports more than 7,000 local victim assistance programs and victim compensation programs in every state and U.S. territory. Funds for these programs come from the Crime Victims Fund, which is made up of federal criminal fines, penalties and bond forfeitures.
During National Crime Victims’ Rights Week, victim advocacy organizations, community groups and state, local and tribal agencies traditionally host rallies, candlelight vigils, and other events to raise awareness of victims’ rights and services. This year, many communities are organizing virtual gatherings and online public awareness campaigns.
This year’s commemoration began yesterday, 25 years to the day when a truck bomb exploded in front of the Alfred P. Murrah Federal Building in Oklahoma City, Oklahoma, taking the lives of 168 people, including 19 children, as well as injuring hundreds of others. The mass murder remains the worst act of domestic terrorism in our nation’s history and led to the establishment of the Antiterrorism Emergency Reserve, which is administered by OVC, and has been used to provide direct services to hundreds of victims of mass violence and terrorism.
“Crime victims deserve to know that they have the encouragement and support of the American people,” said OVC Director Jessica E. Hart. “I hope that citizens throughout the nation will take the opportunity this week to remember all victims of crime and their heroic stories of survival. I encourage everyone to also find meaningful ways to express their appreciation to the many committed and compassionate service providers across the country who work tirelessly supporting these survivors.”
This year, the annual National Crime Victims’ Service Awards Ceremony will be postponed until a time when we can honor this year’s award recipients in person. During the ceremony, OVC will present awards recognizing individuals and organizations from across the nation for their outstanding service on behalf of crime victims. The awardees will be selected from public nominations in 11 categories, including federal service, special courage, public policy, and victim services. Visit www.ovc.gov/gallery to learn more about past recipients.
For more information on how to create your own public campaigns to raise awareness about crime victims’ rights online and at events throughout the year, please visit: https://ovc.ncjrs.gov/ncvrw2020/overview.html.
U.S. Attorney Jay Town Seeks Help from Local Hospitals in Reporting Hoarding and Price-Gouging of Medical SuppliesRead the Press Release
Birmingham, Ala. — U.S. Jay E. Town sent a letter to hospital executives in Northern Alabama today, encouraging employees and medical professionals to report individuals and companies that may be acquiring or selling medical supplies for the purpose of hoarding and/or price-gouging.
“While this pandemic has brought to the fore the very best among us, we are unfortunately becoming increasingly aware of myriad coronavirus-related criminal activities in our District and around the country,” Town said. “In relevant part to the medical providers, these crimes include Medicaid/Medicare billing manipulations, the sale of fake or counterfeit personal protective equipment, sale of bogus medicines related to COVID-19, and the hoarding and/or price gouging of critical medical supplies and materials. These practices are not only morally repugnant in light of the pandemic we are facing, but also, if left unchecked, can inhibit hospitals, physicians and other health care professionals, government agencies, and the public from fully implementing measures designed to save lives and mitigate the spread of the novel coronavirus.”
The letter was sent to hospitals and healthcare systems in Northern Alabama, as part of a coordinated, nationwide effort to combat COVID-19 related fraud. On March 20, Attorney General William Barr directed all 93 U.S. Attorneys to prioritize the investigation and prosecution of COVID-19 fraud.
U.S. Attorney Town encourages the public to report COVID-19 related fraud to the National Center for Disaster Fraud (NCDF) hotline at 1-866-720-5721or to the email address [email protected].
Read U.S. Attorney Town's letter to hospital leadership below.
Department of Justice Makes $850 Million Available to Help Public Safety Agencies Address COVID-19 PandemicRead the Press Release
bja_fy_2020_ndal_coronavirus_emergency_supplemental_funding.pdf BIRMINGHAM, Ala. – U.S. Attorney Jay E. Town announced today that the Department of Justice today announced that it is making $850 million available to help public safety agencies respond to the challenges posed by the outbreak of COVID-19. The Coronavirus Emergency Supplemental Funding program, authorized by the recent stimulus legislation signed by President Trump, will allow eligible state, local and tribal governments to apply immediately for these critical funds. The department is moving quickly to make awards, with the goal of having funds available for drawdown within days of the award.“Law enforcement and our first responders are – and always have been very best among us. They continue to solidify that fact during this pandemic,” Town said. “It is important that our state and local partners have the resources they need to ensure public safety during this time. These additional resources will allow that to continue.”
“This is an unprecedented moment in our nation’s history and an especially dangerous one for our front-line law enforcement officers, corrections officials, and public safety professionals,” said Office of Justice Programs Principal Deputy Assistant Attorney General Katharine T. Sullivan. “We are grateful to the Congress for making these resources available and for the show of support this program represents.”
The solicitation, posted by the Bureau of Justice Assistance in the Justice Department’s Office of Justice Programs (OJP), will remain open for at least 60 days and be extended as necessary. OJP will fund successful applicants as a top priority on a rolling basis as applications are received. Funds may be used to hire personnel, pay overtime costs, cover protective equipment and supplies, address correctional inmates’ medical needs and defray expenses related to the distribution of resources to hard-hit areas, among other activities. Grant funds may be applied retroactively to Jan. 20, 2020, subject to federal supplanting rules.
Agencies that were eligible for the fiscal year 2019 State and Local Edward Byrne Memorial Justice Assistance Grant Program are candidates for this emergency funding. A complete list of eligible jurisdictions and their allocations can be found at https://bja.ojp.gov/program/fy20-cesf-allocations.
For more information about the Coronavirus Emergency Supplemental Funding program, please visit https://bja.ojp.gov/funding/opportunities/bja-2020-18553. For more information about the Office of Justice Programs, please visit https://www.ojp.gov/.
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.
U.S. Attorney Jay E. Town Announces More Than $163 Million Available to Fight Addiction CrisisRead the Press Release
BIRMINGHAM, Ala. – U.S. Attorney Jay E. Town today announced that more than $163 million in Department of Justice grants is available to help communities address America’s addiction crisis.
“The opioid addiction in our communities, both urban and rural, is profound,” Town said. “In Alabama, there is a need to fund programming and diversionary courts to address the crisis of addiction. This $163 million in grant funding opportunities demonstrates the Department of Justice’s unwavering commitment to ensure our law enforcement and community partners have access to essential resources to combat this crisis.”
“Our nation is facing the difficult challenge of curbing substance addiction, which threatens public safety and is among the Administration’s top domestic priorities,” said Katharine T. Sullivan, Principal Deputy Assistant Attorney General for the Office of Justice Programs. “The Department of Justice is front and center in the fight to meet this challenge. OJP is making historic amounts of grant funding available to ensure that our communities have access to innovative and diverse solutions.”
The funding is available through OJP, the federal government’s leading source of public safety funding and crime victim assistance in state, local and tribal jurisdictions. OJP’s programs support a wide array of activities and services, including programs designed to prevent overdose deaths and break the cycle of addiction and crime.
A number of funding opportunities that address the addiction crisis are currently open:
Adult Drug Court and Veterans Treatment Court Discretionary Grant Program
https://bja.ojp.gov/funding/opportunities/bja-2020-17098
Total Available $1.75 million Deadline 5/14/2020
Comprehensive Opioid, Stimulant, and Substance Abuse Site-based Program
https://bja.ojp.gov/COSSAP20
Total Available $27 million Deadline 5/21/2020
Enhancing Community Responses to America's Addiction Crisis: Serving Our Youngest Crime Victims
https://www.ovc.gov/grants/pdftxt/fy-2020-enhancing-community-responses-to-drug-crisis.pdf
Total Available: $19 million Deadline: 5/4/2020
Family Drug Court Program
https://ojjdp.ojp.gov/funding/opportunities/ojjdp-2020-17090
Total Available $18.2 million Deadline 4/8/2020 (Extended)
Harold Rogers Prescription Drug Monitoring Program
https://bja.ojp.gov/funding/opportunities/bja-2020-17754
Total Available $28.1 Deadline 5/5/2020
Juvenile Drug Treatment Court Program
https://ojjdp.ojp.gov/funding/opportunities/ojjdp-2020-17051
Total Available $7.2 million Deadline 4/13/2020 (Extended)
Mentoring Opportunities for Youth Initiative
https://ojjdp.ojp.gov/funding/opportunities/ojjdp-2020-16930
Total Available $48 million Deadline 4/13/2020
Opioid Affected Youth Initiative
https://ojjdp.ojp.gov/funding/opportunities/ojjdp-2020-17352
Total Available $9 million Deadline 4/20/2020
Research and Evaluation on Drugs and Crime https://nij.ojp.gov/funding/opportunities/nij-2020-17275
Total Available $1 million Deadline 4/20/2020
Residential Substance Abuse Treatment for State Prisoners
https://bja.ojp.gov/RSAT20
Total Available $4.5 million Deadline 4/6/2020
For more information regarding all OJP funding opportunities, visit https://www.ojp.gov/funding/explore/current-funding-opportunities.
Former Co-Owner and COO of Pharmacy Pleads Guilty in Prescription Drug Billing SchemeRead the Press Release
BIRMINGHAM, Ala. – Today an additional defendant pled 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 Jay E. Town, 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 announced the charges.
Jeffrey Black, 55, of Destin, Florida, entered a guilty plea before U.S. District Judge L. Scott Coogler to one count of conspiring to commit health care fraud, eight counts of health care fraud, one count of conspiring to pay kickbacks to a prescriber, and one count of spending the proceeds of health care fraud. Black is the former co-owner, vice president and chief operating officer of Northside Pharmacy doing business as Global Compounding Pharmacy.
“Health care fraud is estimated to be in the hundreds of billions each year. We are seeing just how intolerable and critical the effects of frauds related to health care can be,” U.S. Attorney Jay E. Town said. “This plea—and the 21 before it just in this investigation—should send a message to would-be fraudsters that those who choose to steal from our health insurance plans will be held accountable.”
“Black conspired with others and compromised his integrity to line his pockets with the proceeds of false claims,” FBI Special Agent in Charge Johnnie Sharp, Jr. said. “I commend the outstanding work conducted by my agents and our great partners to hold Black and others accountable who work to defraud American taxpayers through health care fraud schemes.”
"The Defense Criminal Investigative Service (DCIS) is committed to pursue unscrupulous individuals like Jeffrey Black intent on defrauding and cheating TRICARE, the healthcare system serving our military and veterans. DCIS appreciates the efforts of the U.S. Attorney's Office in the Northern District of Alabama requiring restitution to TRICARE for prescriptions that were not medically necessary or even utilized by many of the beneficiaries," stated Special Agent in Charge Cynthia A. Bruce, DCIS, Southeast Field Office."
“Today’s guilty plea is the result of a significant team effort to safeguard a multitude of federally funded healthcare programs,” Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta Derrick L. Jackson said. “The OIG is committed to dismantling elaborate fraud schemes such as this one.”
“With our nation focused on public health and safety, Jeffrey Black’s guilty plea is a reminder that Americans are cheated out of more than eighty billion dollars a year in higher premiums and out-of-pocket expenses through health care fraud,” Adrian Gonzalez, Postal Inspector in Charge, Houston Division said. “The United States Postal Inspection Service is committed to investigations with our law enforcement partners whenever health care fraudsters try to involve the U.S. Mail in their nefarious schemes, as in this case against Northside Pharmacy of Haleyville, Alabama, doing business as Global Compounding Pharmacy.”
“Today’s plea should serve as a warning to any medical professional considering exploiting their patients for profit: you will be caught, you will be prosecuted, and you will pay a steep price for your actions,” Acting Special Agent in Charge IRS Criminal Investigation, Atlanta Field Office Andrew Thornton, Jr. said. “IRS-CI remains committed to working with our law enforcement partners to bring those seeking to enrich themselves at the expense of the government and their patients, to justice."
“As detailed in the plea agreement, Black’s actions and role in the fraud scheme took advantage of veterans for personal financial gain,” David Spilker, Special Agent in Charge, VA Office of Inspector General stated. “VA OIG is committed to working with our law enforcement partners to identify and investigate those who commit healthcare fraud against VA programs.”
Mr. Black’s guilty plea brings the total number of defendants who have pled guilty in the larger investigation to 23. Those who have previously pled guilty include two nurse practitioners, a vice president of sales, an operations manager, a district manager, and multiple sales representatives.
According to the plea agreement, Mr. Black was participating in a multi-faceted scheme to cause the pharmacy he co-owned to bill for medically unnecessary prescription drugs. Aspects of the scheme included paying prescribers to issue prescriptions; directing employees to get medically unnecessary drugs for themselves, family members, and friends, to be filled and billed by Global and other related pharmacies; 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. 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. In addition, the scheme targeted the health insurance plan of Medtronic, a medical device company, where Black previously worked. Black would hire individuals known to be on Medtronic’s health insurance plans, and direct them to get prescriptions for medically unnecessary drugs for themselves, family members, and friends, and then pay them a commission for these prescriptions. Black and a family member personally got a number of these medically unnecessary prescriptions for scar and wound creams, including several for over $20,000 per tube.
The maximum penalty for health care and mail fraud conspiracy 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 kickback conspiracy is 5 years in prison and a $250,000 fine. The maximum penalty for spending proceeds of healthcare fraud is 10 years in prison and a $250,000 fine.
The FBI, HHS-OIG, DCIS, USPIS, IRS-CI, and a United States Attorney’s Office investigator investigated the cases, which Assistant U.S. Attorneys Chinelo Dike-Minor and Don Long are prosecuting. The Veteran Affairs Office of Inspector General Criminal Investigations Division provided assistance in the investigation.
U.S. Attorney Jay E. Town Urges the Public to Report Suspected COVID-19 FraudRead the Press Release
BIRMINGHAM, Ala. – U.S. Attorney Jay E. Town today urged the public to report suspected fraud schemes related to COVID-19 (the Coronavirus) by calling the National Center for Disaster Fraud (NCDF) hotline (1-866-720-5721) or to the NCDF e-mail address [email protected].
In coordination with the Department of Justice, Attorney General William Barr has directed U.S. Attorneys to prioritize the investigation and prosecution of Coronavirus fraud schemes.
“Alabamians and Americans need to remain vigilant and not fall for the fraudsters, hucksters, and con artists. The Department of Justice and all of our law enforcement partners resolve to investigate and prosecute anyone seeking to illegally gain from this crisis,” Town said. “Our elder population are often targets. Let’s not wash away our common sense. Be aware! Be alert! Be sensible! We resolve to be vigilant.”
Some examples of these schemes include:
- Individuals and businesses selling fake cures for COVID-19 online and engaging in other forms of fraud.
- Phishing emails from entities posing as the World Health Organization or the Centers for Disease Control and Prevention.
- Malicious websites and apps that appear to share Coronavirus-related information to gain and lock access to your devices until payment is received.
- Seeking donations fraudulently for illegitimate or non-existent charitable organizations.
- Medical providers obtaining patient information for COVID-19 testing and then using that information to fraudulently bill for other tests and procedures.
In a memorandum to U.S. Attorneys issued March 19, Deputy Attorney General Jeffrey Rosen also directed each U.S. Attorney to appoint a Coronavirus Fraud Coordinator to serve as the legal counsel for the federal judicial district on matters relating to the Coronavirus, direct the prosecution of Coronavirus-related crimes, and to conduct outreach and awareness activities. The Northern District of Alabama Coronavirus Fraud Coordinator is Assistant United States Attorney Robert O. Posey.
The NCDF can receive and enter complaints into a centralized system that can be accessed by all U.S. Attorneys, as well as Justice Department litigating and law enforcement components to identify, investigate and prosecute fraud schemes. The NCDF coordinates complaints with 16 additional federal law enforcement agencies, as well as state Attorneys General and local authorities.
To find more about Department of Justice resources and information, please visit www.justice.gov/coronavirus.
Statement from U.S. Attorney Jay E. Town Regarding Operations as a Result of COVID-19Read the Press Release
BIRMINGHAM, Ala. – “During this time of uncertainty, what is certain is our resolve to protect the citizens of the Northern District of Alabama. We continue to work closely with our federal, state and local partners to protect the public and ensure that mission-critical operations remain constant. The Birmingham and Huntsville offices are open and our operations are in lockstep with guidance issued by the Office of Management and Budget, the Department of Justice, and the federal courts. I am thankful for all of the dedicated public servants who are committed to ensure that the mission of the office is carried out at all times. Members of law enforcement, first responders, and medical personnel continue to race the sunrise each day to keep us safe. We should all be eternally grateful.”
Athens Man Sentenced to 20 Years in Prison for Trafficking MethamphetamineRead the Press Release
BIRMINGHAM, Ala. – A federal judge yesterday sentenced an Athens man for conspiracy to distribute methamphetamine, announced U.S. Attorney Jay E. Town, DEA Assistant Special Agent in Charge Clay Morris and Bureau of Alcohol Tobacco and Firearms Special Agent in Charge Marcus Watson.
U.S. District Judge Madeline H. Haikala sentenced David Matthew Pugh, to 20 years in prison for his role in a drug conspiracy in Morgan, Madison, and Lauderdale counties between January 2017 and July 2017. In August 2018, Pugh pled guilty to conspiracy to distribute and possess with intent to distribute 50 grams or more of methamphetamine. Pugh also pled guilty to possession with the intent to distribute 50 grams or more of methamphetamine, and to possessing multiple firearms in furtherance of a drug-trafficking crime and being a felon in possession of a firearm.
“Those individuals who engage in drug trafficking belong in federal prison,” Town said. “This sentence assures the citizens of the Northern District that yet another peddler of this poison has been removed from the community and that criminals who plague our streets with drugs and guns will continue to be targets of federal prosecution.”
“This is yet another example of DEA’s unwavering commitment to keeping drug dealers from selling poison in our communities,” Morris said. “Drugs and guns are a deadly combination that often end with violent acts. This sentence should send a resounding message to all drug dealers in Alabama. We will target you, investigate you, and ensure that you go to prison in order to make our communities safe.”
ATF Special Agent in Charge Marcus Watson stated “ATF’s crime gun intelligence partnerships focused on the prohibited individual who used firearms to facilitate violent crimes.”
The DEA and ATF investigated the case, along with the Madison-Morgan County Strategic Counter-Drug Team (STAC), which Assistant U.S. Attorney Robert J. Becher, Sr. prosecuted.
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 Salesman Pleads Guilty to Tax EvasionRead the Press Release
BIRMINGHAM, Ala. – A Hoover, Alabama, salesman and tax defier pleaded guilty on Friday to tax evasion, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division, U.S. Attorney Jay E. Town and Acting Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office, Andrew Thornton, Jr.
According to court documents and statements made in court, Ivan Scott “Scott” Butler was an automobile industry consultant and sold automobile warranties as an independent salesman. In 1993, Butler stopped filing tax returns and attended tax defier meetings and purchased tax defier materials. Starting in 1998, Butler used several Nevada nominee corporations to receive his income. In around 1999, Butler moved hundreds of thousands of dollars, some in precious metals, to bank accounts in Switzerland and concealed his assets in offshore insurance policies held in the name of non-U.S. insurance providers, disguising his ownership of the funds. Such accounts, which generally are used as investment vehicles, are commonly known as “insurance wrappers.”
In 2014, Butler converted some of his insurance annuities into precious metals, which were shipped to Butler and another individual in the United States. Some of those precious metals were given to friends and family for safekeeping. In total, Butler caused a tax loss to the Internal Revenue Service (IRS) of $1,093,400.
“Those who attempt to defy the laws of the United States, and believe themselves to be above complying with their duties as tax payers, will quickly find that no one is above the law,” Town said. “The Department of Justice will continue to federally charge those who continue to do so.”
“At IRS Criminal Investigation, our top priority is protecting the integrity of our nation’s tax system,” Thornton said. “Today’s guilty plea should send a clear message that orchestrating a scheme to not file tax returns and conceal assets will result in your prosecution.”
U.S. District Judge Annemarie Carney Axon scheduled sentencing for June 24, 2020. At sentencing, Butler faces a maximum sentence of five years. Butler also faces a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Town commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Senior Litigation Counsel Nanette Davis of the Tax Division and Assistant U.S. Attorneys Allison Garnett and Robin Mark, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
Alabama Salesman Pleads Guilty to Tax EvasionRead the Press Release
A Hoover, Alabama, salesman and tax defier pleaded guilty Friday to tax evasion, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Jay E. Town for the Northern District of Alabama.
According to court documents and statements made in court, Ivan Scott “Scott” Butler was an automobile industry consultant and sold automobile warranties as an independent salesman. In 1993, Butler stopped filing tax returns and attended tax defier meetings and purchased tax defier materials. Starting in 1998, Butler used several Nevada nominee corporations to receive his income. In or around 1999, Butler moved hundreds of thousands of dollars, some in precious metals, to bank accounts in Switzerland and concealed his assets in offshore insurance policies held in the name of non-U.S. insurance providers, disguising his ownership of the funds. Such accounts, which generally are used as investment vehicles, are commonly known as “insurance wrappers.”
In 2014, Butler converted some of his insurance annuities into precious metals, which were shipped to Butler and another individual in the United States. Some of those precious metals were given to friends and family for safekeeping. In total, Butler caused a tax loss to the Internal Revenue Service (IRS) of $1,093,400.
U.S. District Judge Annemarie Carney Axon scheduled sentencing for June 24, 2020. At sentencing, Butler faces a maximum sentence of five years. Butler also faces a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Town commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Senior Litigation Counsel Nanette Davis of the Tax Division and Assistant U.S. Attorneys Allison Garnett and Robin Mark, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
Federal Grand Jury Indicts Birmingham Man for CarjackingRead the Press Release
BIRMINGHAM, Ala. – A federal grand jury recently indicted a Birmingham man for an armed carjacking, announced U.S. Attorney Jay E. Town and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Marcus Watson.
A two-count indictment filed in U.S. District Court charges Tadarrius Lawaun Smith, 21, with the carjacking and carrying and brandishing a firearm during and relation to a violent crime on December 4, 2019.
“Carjacking is one of the most terrifying crimes that we prosecute,” Town said. “We will not sit idly by and allow criminals to intimidate our citizens with such violence. We will find you and we will prosecute you. We are thankful that this victim survived and for the assistance of the citizens who provided information to the Birmingham Police Department.”
“Removing the criminal element that uses a firearm to facilitate violent crimes such as a carjacking is a priority of ATF,” Watson said.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted this case with support from the following Project Guardian partners: Bureau of Alcohol, Tobacco, Explosives and Firearms. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
The maximum penalty for carjacking is 10 years in prison. The maximum penalty for brandishing a firearm during and in relation to a violent crime carries a mandatory seven years in prison per count, to be served consecutively to any other sentence imposed for the crime.
The ATF investigated the case, along with 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.
Convicted Felon Charged with Illegal Firearms PossessionRead the Press Release
BIRMINGHAM, Ala. – A federal grand jury on Thursday indicted an Addison man for being a felon in possession of a firearm, announced U.S. Attorney Jay E. Town and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Marcus Watson.
A three-count indictment filed in U.S. District Court charges Preston Cheyenne Johnson, 37, of Addison, with being a felon in possession of a firearm.
According to the indictment, Johnson, who is prohibited from having a firearm because of prior felony convictions, is accused of unlawfully possessing an Anderson AM-15 5.56mm rifle on October 31, 2019, a Norcino Mak90 7.62mm rifle on February 4, 2020, and a Glock Model 19 9mm pistol on February 5, 2020.
“Violent convicted felons with firearms will answer to federal charges in the Northern District of Alabama,” Town said. “We are indebted to the brave law enforcement officers who put themselves in harm’s way to ensure that this violent criminal was brought to justice.”
“ATF’s focus on removing illegally possessed firearms from prohibited individual’s aids in reducing the potential for violent crime,” Watson said.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted this case with support from the following Project Guardian partners: Bureau of Alcohol, Tobacco, Explosives and Firearms. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
The maximum penalty for being a felon in possession of a firearm is 10 years in prison and a $250,000 fine.
ATF investigated the case along with Alabama Law Enforcement Agency and several other local law enforcement agencies, which Assistant U.S. Attorney Robert J. Becher, Sr. is prosecuting.
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.
Romanian Man Pleads Guilty to Access-Device Fraud and Aggravated Identity TheftRead the Press Release
BIRMINGHAM, Ala. – A Romanian man pled guilty on Wednesday to multiple counts of access device fraud and aggravated identity theft, announced U.S. Attorney Jay E. Town and U.S. Immigration and Custom Enforcement’s Homeland Security Investigations Assistant Special Agent in Charge James G. Hernandez.
A nine-count indictment filed in U.S. District Court charges Alexandru Stoica, 35, with three counts of illegally possessing and using fraudulent access devices and six counts of aggravated identity theft in Limestone County in October 2019.
According to the plea agreement, Stoica knowingly used and attempted to use unauthorized access devices – gift cards – encoded with bank account numbers each issued to other persons, for the purpose of withdrawing money from the bank accounts.
“Stoica and the criminal element with whom he works specifically target our communities here in the Northern District of Alabama because of a perceived weakness in ATM security. That perception was proven wrong with his guilty plea,” Town said. “He will now have plenty of time to reconsider that strategy.”
“The hardworking people of this community can rest easier now that this fraudster is no longer able to steal their money,” said James Hernandez, Assistant Special Agent in Charge for Alabama. “Catching and prosecuting criminals that attack the integrity of the United States’ financial system is one of HSI’s top priorities.”
The maximum penalty for fraudulent use of a counterfeit access device is 10 years in prison and a fine of $250,000 or twice the gross gain, whichever is greater. The maximum penalty for both using and attempting to use a counterfeit access device is 15 years in prison and a fine of $250,000 or twice the gross gain or loss and a possible fine of $250,000 or twice the gross gain or loss, whichever is greater., whichever is greater. Aggravated identity theft carries a mandatory two-year prison sentence per count. At least one count must run consecutively to the other sentences and the remaining counts can run either concurrently or consecutively to each other.
Immigration and Custom Enforcement’s Homeland Security Investigations investigated the case, which Assistant U.S. Attorney Michael R. Pillsbury is prosecuting.
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.
Last of Three Defendants Involved in Two Armed Robberies Sentenced to More than 17 Years in PrisonRead the Press Release
BIRMINGHAM, Ala. – A federal judge today sentenced the getaway driver in two armed robberies in Tuscaloosa, announced U.S. Attorney Jay E. Town and Bureau of Alcohol Tobacco and Firearms Special Agent in Charge Marcus Watson.
U.S. District Judge L. Scott Coogler sentenced Jemarkus Vonsha Thompson, 25, of York, to 214 months in prison for Hobbs Act Robbery and carrying and brandishing a firearm during and in relation to a violent crime. Thompson was convicted by a federal jury in October 2019.
“Thompson’s involvement in this robbery as the “get-away driver” is treated no differently under our laws than those who placed innocent citizens at gunpoint,” Town said. “Thompson shares responsibility in this crime and he will share a cell in a federal penitentiary for 214 months as a result.”
“ATF’s Crime Gun Intelligence partnerships with the Tuscaloosa Police Department as part of Project Guardian, continue to focus on reducing violent crime by those individuals who commit armed robberies,” Watson said.
“The Tuscaloosa Police Department’s investigators, ATF’s agents, and the U.S. Attorney’s Office all worked very hard on this case,” said Captain Brad Mason, Tuscaloosa Police Department. “I am happy that we are able to bring this to a resolution where a violent criminal will be off of the streets for a long time. We would like to thank the ATF and the U.S. Attorney’s Office for their work on this case. We look forward to working together in the future.”
According to evidence at trial, Thompson was the driver of the suspect vehicle used to rob the Quick Stop Tobacco and Snack and Subway on Old Greensboro Road in Tuscaloosa. Watson and Rodgers robbed the two stores at gun point using an assault style rifle, while Thompson remained in the vehicle. Cell phone tower information placed Thompson at the scene of both crimes. Watson, Rodgers, and Thompson were stopped by Tuscaloosa police minutes after the robberies, where evidence of both crimes were found in their possession, including money, receipts, and the firearms.
Quartaius Deandrew Rodgers, 24, Cuba, Ala., pled guilty in July 2019. In November 2019, U.S. District Court L. Scott Coogler sentenced Rodgers to 95 months in prison for Hobbs Act Robbery and carrying and brandishing a firearm during and in relation to a violent crime.
Ladarius Maurice Watson, 23, Tuscaloosa, pled guilty in July 2019. In January, U.S. District Court Judge L. Scott Coogler sentenced Watson to 180 months in prison for Hobbs Act Robbery and carrying and brandishing a firearm during and in relation to a violent crime.
ATF investigated the case along with the Tuscaloosa Police Department, which Assistant U.S Attorney Brad Felton and Allison Garnett prosecuted.
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.
Last of Four Defendants in Conspiracy Trafficking Methamphetamine Sentenced to 15 Years on PrisonRead the Press Release
BIRMINGHAM, Ala. – A federal judge today imposed a 15-year sentence on the last of four defendants in a North Alabama conspiracy to distribute methamphetamine, announced U.S. Attorney Jay E. Town, DEA Assistant Special Agent in Charge Clay Morris and Bureau of Alcohol Tobacco and Firearms Special Agent in Charge Marcus Watson.
U.S. District Judge Madeline H. Haikala sentenced, Marcus Leo Kyle to 180 months in prison for his role in a North Alabama drug conspiracy. Kyle pled guilty in April 2019 to conspiracy to distribute and possess with intent to distribute 50 grams or more of methamphetamine between January 2016 and February 2018. Kyle also pled guilty to possession with the intent to distribute 50 grams or more of methamphetamine in March 2018 and to possessing a Taurus 709 Slim 9mm semi-automatic pistol in furtherance of a drug-trafficking crime and being a felon in possession of a firearm.
“This defendant organized and delivered large amounts of methamphetamine into the Northern District of Alabama and now he will spend the next 15 years in prison,” Town said. “Thanks to the work by the DEA, ATF and other law enforcement partners, we have dismantled yet another drug conspiracy, closing the pipeline of deadly drugs into our communities and sending four drug traffickers to prison.”
“Just like so many other drug dealers, Kyle will spend the next 15 years in federal prison,” Morris said. DEA, ATF and the United States Attorney’s Office is committed to the relentless pursuit of those who destroy our communities and ruin lives. Highly addictive methamphetamine is flooding into Alabama at historic levels. We will not stop in our combined efforts to identify, investigate and put drug dealers in federal prison.
“ATF’s Crime Gun Intelligence partnerships effective in removing the criminal element that endangers our communities,” Watson said.
In January, Judge Haikala sentenced Melvin “Froggy” Rolin, the leader of the North Alabama drug conspiracy to 24 years and 7 months in prison and Barry Williams to 12 ½ years in prison.
In December 2019, Judge Haikala sentenced Britney Michelle Black to 78 months in prison for possession with the intent to distribute 50 grams or more of methamphetamine in March 2018. Black pled guilty to the charge last year.
The DEA and ATF investigated the case, along with the Madison County Sheriff’s Office, Morgan County Sheriff’s Office, and Cullman County Sherriff’s Office investigated the case, which Assistant U.S. Attorney Robert J. Becher, Sr. prosecuted.
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.
Four Men Indicted for Huntsville Jewelry Store RobberyRead the Press Release
BIRMINGHAM, Ala. – A federal grand jury in January indicted four men in connection to an armed robbery of a local jewelry store in Huntsville, announced U.S. Attorney Jay E. Town and Bureau of Alcohol, Tobacco, Explosives and Firearms Special Agent in Charge Marcus Watson.
A four-count indictment filed in U.S. District Court charges Alexander Langford, 26, Huntsville, Nakeel Darrel Davis, 34, Huntsville, Tre Michael Smith, 26, Harvest, and Tyrus Rashad Ray, 26, Huntsville, of crimes under the Hobbs Act, a federal robbery statute, as well as federal firearms charges. According to the indictment, the defendants entered the Loring and Company jewelry store armed and brandishing firearms in broad daylight and stole luxury watches.
“These defendants are yet another example that my office and our district’s law enforcement community will be relentless in the pursuit of violent criminals,” Town said. “Let those considering acts of violence and any brazen disregard for the safety of our community know that we will use any and all federal tools available to us to ensure they are dealt with swiftly and justly. Our community demands this, and we will deliver.”
“Law enforcement partnerships instrumental on the arrests of this crew that endangered the community by committing an armed robbery during business hours,” ATF Special Agent in Charge Marcus Watson stated. Law enforcement resources were effective in the capture despite that the criminal element knows no geographical boundaries.”
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. The maximum penalty for Hobbs Act robbery is 20 years in prison. Brandishing a firearm during and in relation to a violent crime carries a mandatory seven years in prison per count, to be served consecutively to any other sentence imposed for the crime.
ATF investigated the cases along with United States Marshal Service, Madison County Sheriff’s Office and Huntsville Police Department. Assistant U.S. Attorney Kevin Sanchez is prosecuting.
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.
Birmingham Man Sentenced to 41 Months in Prison in Complex Financial Fraud SchemeRead the Press Release
BIRMINGHAM, Ala. –A federal judge today sentenced a Birmingham man with a wire fraud scheme, announced U.S. Attorney Jay E. Town and U.S. Secret Service Special Agent in Charge Patrick Davis.
U.S. District Judge Annemarie Axon sentenced Michael Charles Vines, to 41months in prison for wire fraud. Vines pled guilty to that charge in September 2019.
“The defendant exploited his position of trust with conduct that was deliberate and deceptive,” Town said. “Abuse of trust and misuse of funds is unacceptable and those who consider engaging in these types schemes should know that it can lead to federal prison.”
“The investigation conducted by the U.S. Secret Service revealed Michael Charles Vines defrauded The Country Club of Birmingham of over $630,000,” said Patrick Davis, Special Agent in Charge, Birmingham Field Office. “Mr. Vines was a tenured employee. He not only violated the trust of his employer, but also that of the members of The Country Club of Birmingham.”
According to court documents, beginning in May 2002 through June 2018, Vines worked as the accounts receivable clerk for The Country Club of Birmingham. In 2008, Vines was promoted to management information systems and accounts receivable clerk. As accounts receivable clerk, Vines managed the cash and checks received from members and outside vendors or visitors. He was responsible for preparing the receivable portion of the monthly bank account. In 2015, all responsibility for the monthly bank account reconciliation process was transferred to Vines. Between 2007 and 2018, Vines engaged in a scheme to steal cash and other proceeds from the County Club of Birmingham. Vines concealed the scheme by making false and fraudulent entries into the financial management system and making false and fraudulent representations in person and in emails to the Country Club of Birmingham management and the outside auditor. Vines’ scheme resulted in him stealing over $630,000 from The Country Club of Birmingham.
The U.S. Secret Service investigated the case, which Assistant U.S. Attorney Robin Beardsley Mark prosecuted.
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.
U.S. Attorney Jay E. Town to Serve as Working Group Co-Chair on the Presidential Commission on Law Enforcement and the Administration of JusticeRead the Press Release
BIRMINGHAM, Ala. – U.S. Attorney Jay E. Town will serve as a Co-Chair of the Criminal Justice System Personnel Intersection Working Group on the Presidential Commission on Law Enforcement and the Administration of Justice. The working group will examine how police, judges, prosecutors, defense attorneys, and correctional authorities intersect so that the system of criminal justice can enhance its ability to prevent and control crime and serve the victims of crime.
“I am humbled and honored to serve as working group Co-Chair on the Presidential Commission on Law Enforcement and the Administration of Justice,” Town said. “The Criminal Justice System Personnel Intersection Working Group will address a multitude of issues seeking to broaden the relationships between every layer of law enforcement, improve relations between the community and the justice system, and find innovative ways to reduce crime as a result. I look forward to joining my colleagues in this incredibly important and collective effort to help this Administration identify effective and systemic criminal justice reforms that will reduce and prevent crime in America.”
On October 28, 2019, President Donald J. Trump signed Executive Order No. 13896, authorizing and designating the Attorney General to create such a Commission that would explore modern issues affecting law enforcement that most impact the ability of American policing to reduce crime. Attorney General William P. Barr announced the establishment of the Commission on January 22, 2020.
The Executive Order instructs the Commission to conduct its study by focusing on the law enforcement officers who are tasked with reducing crime on a daily basis. It also directs the Commission to research “important current issues facing law enforcement and the criminal justice system,” and recommends a variety of subjects for study, such as, but not limited to:
- The challenges to law enforcement associated with mental illness, homelessness, substance abuse, and other social factors that influence crime and strain criminal justice resources;
- The recruitment, hiring, training, and retention of law enforcement officers, including in rural and tribal communities;
- Refusals by State and local prosecutors to enforce laws or prosecute categories of crimes;
- The need to promote public confidence and respect for the law and law enforcement officers; and
- The effects of technological innovations on law enforcement and the criminal justice system, including the challenges and opportunities presented by such innovations.
In studying these issues, the Commission will be assisted by “working groups.” These working groups will consist of subject matter experts across the federal and state government and have a particularized focus on distinct issues the Commission will review (e.g. “Technology”). They will assist and facilitate the Commission’s study of these issues, and provide advice and counsel on their specific subject. The working groups, which will include our federal partners from the Departments of Homeland Security, Health and Human Services, Interior, Agriculture, Housing and Urban Development, and other federal agencies, will provide much needed expertise and insight on the important issues affecting law enforcement. This Commission requires a team effort. Such a rich variety of federal and state government participation is essential to the work at hand. Once the Commission completes its study, it will recommend the best measures to empower American law enforcement to combat the criminal threats of our time, and to restore the utmost public confidence in our law enforcement to protect and serve.
In forming the Commission, the Department of Justice has marshaled together the expertise and experiences of all sectors of the law enforcement community—urban police departments, county sheriffs, state attorneys general and prosecutors, elected officials, United States Attorneys, and federal law enforcement agencies. They come from distinct states, cities, counties, and towns across the country but share a common mission of safeguarding their respective communities from a variety of threats.
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 Pleads Guilty to Tax EvasionRead the Press Release
A Birmingham man pleaded guilty today to tax evasion, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Jay E. Town for the Northern District of Alabama.
According to court documents and statements made in court, in 2011, John P. Cooney, 70, filed delinquent tax returns for 2008 through 2010, in which admitted that he owed the Internal Revenue Service (IRS) approximately $780,000, but did not include any payment. Rather, to evade his tax obligation, Cooney created a nominee entity, GVA Advisors, LLC (GVA), and directed that income from his employer and dividends from his investments be paid to an account in GVA’s name, rather than to him directly. From 2013 through 2016, Cooney deposited more than $435,000 into the GVA account, concealing the funds from the IRS. In all, as result of his actions, Cooney owed by 2017 more than $1.3 million in outstanding balances, penalties, and interest to the IRS.
Sentencing is scheduled for May 28, 2020. At sentencing, Cooney faces a statutory maximum sentence of five years in prison. He also faces a period of supervised release and monetary penalties. Pursuant to the plea agreement, Cooney has agreed to pay restitution of $1,311,904 to the United States.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Town commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Catherine Crosby Long and Trial Attorneys Alexander Effendi and Kathryn Sparks of the Tax Division, who are prosecuting this case.
Jackson County Man Sentenced to 7 ½ Years in Prison for Possessing Child PornographyRead the Press Release
BIRMINGHAM, Ala. – A federal judge today sentenced a Jackson County man for possession of child pornography, announced U.S. Attorney Jay E. Town and U.S. Immigration and Custom Enforcement’s Homeland Security Investigations Assistant Special Agent in Charge James G. Hernandez.
U.S. District Judge Anne Marie Axon sentenced Joshua Taylor Holcomb, to 7 ½ years in prison to be followed by 10 years supervised. Holcomb pled guilty in October to possessing more than 2700 images of child pornography and 351 videos on his laptop and thumb drive. Holcomb will have to comply with the Sex Offender Registration and Notification Act (SORNA).
“Criminals who victimize our children through digital pixels, videos or photos expect a visit from federal law enforcement,” Town said. “He will now spend the next 7 ½ years looking at prison bars instead of a computer screen.”
HSI investigated the case along with Alabama Law Enforcement Agency, State Bureau of Investigations, which Assistant U.S. Attorney R. Leann White prosecuted.
Attorney General William P. Barr Makes Announcement on Sanctuary Cities at the National Sheriffs' Association ConferenceRead the Press Release
BIRMINGHAM, ALA. – Attorney General William P. Barr has announced further actions the Department of Justice will take to protect the American people by ensuring the proper and lawful functioning of our nation’s federal immigration system. Attorney General William Barr said, “Let us state the reality up front and as clearly as possible: When we are talking about sanctuary cities, we are talking about policies that are designed to allow criminal aliens to escape. These policies are not about people who come to our country illegally but have otherwise been peaceful and productive members of society. Their express purpose is to shelter aliens whom local law enforcement has already arrested for other crimes. This is neither lawful nor sensible.”
Read the Attorney General’s full remarks at this link: https://www.justice.gov/opa/speech/attorney-general-william-p-barr-delivers-remarks-national-sheriffs-association-winter
“Our federal, state, and local law enforcement within the Northern District of Alabama are steadfast in their commitment to enforce all the laws of our state and federal justice systems,” Town said. “This commitment is due to the support and coordination local law enforcement has with their federal partners. Through the Prosecutor-to-Prosecutor Program my office has prioritized improving the quality and reliability of the assistance that we provide to our local law enforcement partners. Our continued partnership has developed mutual respect and support by federal and local law enforcement for the mission and work of their counterparts. One of the many benefits of this common purpose and allegiance between federal, state, and local law enforcement has been a shared adherence to respect all federal immigration laws and keeping our communities safe.”
Examples of illegal aliens prosecuted in this office:
Felipe Martinez-Arrellanes, a citizen of Mexico, was removed from the United States to Mexico in June 2013 following a felony conviction. In January 2018, Martinez-Arrellanes was arrested under the name “Felipe Martinez” by the Tuscaloosa Police Department and charged with Soliciting Prostitution. Martinez-Arrellanes was taken into ICE custody. Martinez-Arrellanes pled guilty to Illegal Re-entry After Deportation or Removal in April 2018.
Mike Sierra, a citizen of Mexico, was removed from the United States to Mexico in February 2016 and July 2014. Before, during and after those removals, Sierra, often using an alias, was convicted two times for Driving Under the Influence and two times for Illegal Entry into the United States. Following his most recent conviction in January 2018, for Driving Under the Influence in Northport, Ala., the defendant was taken into ICE custody. Sierra pled guilty to Illegal Re-Entry Deportation or Removal in March 2018.
Jose Hernandez Hernandez, a citizen and national of Mexico, illegally possessed a Rossi 38 caliber pistol in June 2018, in Madison County. Hernandez pled guilty to Possession of a Firearm by an Illegal Alien in October 2018.
Federal Jury Convicts Vestavia Hills Doctor on Charges of Producing and Possessing Child PornographyRead the Press Release
Birmingham, Ala. – A federal jury today convicted a Birmingham-area doctor for producing and possessing child pornography, announced U.S. Attorney Jay E. Town and FBI Special Agent in Charge Johnnie Sharp, Jr.
The jury returned its guilty verdict against Dr. Ronald Tai Young Moon, Jr., after 5 days of testimony before U.S. District Judge Annemarie Axon. Moon has worked as a physical medicine doctor at The Industrial Athlete located in Birmingham.
“The jury returned a verdict which gives Moon’s victims justice for these crimes, which stretched across two decades in Hoover and Vestavia,” stated First Assistant United States Attorney Lloyd C. Peeples, III. “We appreciate the hard work of the federal agencies which exposed the crimes that Moon committed with hidden cameras.”
“FBI is committed to protecting those among us that are the most vulnerable,” Sharp said. “I am proud of the work done by my agents and our partners to hold Moon accountable for these crimes.”
Evidence at trial proved that between the mid-1990s and about 2012, Moon secretly recorded neighbors and guests in his own home, including minors as young as 12 and 13 years. Some of those individuals were filmed naked, both dressing and undressing.
These videos were discovered during an investigation into potential health care fraud violations. The health care fraud investigation was led by the DEA, HHS, and FBI. The FBI, with assistance from the DEA, led the investigation into the child pornography charges.
Producing child pornography carries a penalty of 15 to 30 years in prison, and a maximum $250,000 fine. The maximum penalty for possessing child pornography is 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney John B. Ward and First Assistant U.S. Attorney Lloyd C. Peeples, III prosecuted the case for the United States.
Birmingham Woman Convicted for Conspiracy to Commit Mail and Wire Fraud and Intimidating a WitnessRead the Press Release
Birmingham, Ala. – Following a three-day bench trial, a Birmingham woman was convicted on charges of conspiracy to commit mail and wire fraud and intimidating a witness, announced U.S. Attorney Jay E. Town and IRS Criminal Investigation Special Agent in Charge Andrew M. Thornton, Jr.
After three days of testimony, U.S. District Court Judge R. David Proctor convicted Quincetta Yvonne Cargill, 48, of one count of conspiracy to commit mail and wire fraud and one count of witness tampering. Cargill represented herself and also took the stand to testify.
“This case was about greed at the expense of too many,” Town said. “The finding of guilt for this individual should forewarn anyone that would commit fraud on the taxpayers by filing false tax returns will be prosecuted to the fullest extent. Thanks to the hard work of the prosecutors and agents the defendant has been brought to justice.”
“Individuals who commit refund fraud and identity theft of this magnitude and with this degree of trickery, dishonesty and deceit, deserve to be punished to the fullest extent of the law," Thornton said. "IRS Criminal Investigation, along with our law enforcement partners and the United States Attorney's Office, remain vigilant in identifying, investigating and prosecuting those individuals who seek to willfully defraud the United States Treasury and blatantly disregard the victims of their schemes.”
Evidence at trial, including witness testimony, bank records, and IRS tax returns, proved that Cargill obtained the names, dates of birth, and social security numbers of individuals, told them she was submitting their information for a federal grant program, and instead caused fraudulent tax returns to be filed with their information. Cargill then directed others to open bank accounts, and used her own bank accounts, to receive tax refund checks from those fraudulently filed returns. In total, Cargill and her co-conspirators obtained more that $1 million from refunds from fraudulent tax returns. Evidence at trial also proved that Cargill attempted to intimidate a witness in her case by sending information about the witness and their potential testimony to members of a motorcycle club, in order to influence or prevent that witness from testifying at trial.
The maximum penalty for conspiracy to commit mail and wire fraud is 20 years in prison and a $250,000 fine. The maximum penalty for witness tampering is 20 years in prison and a $250,000 fine.
IRS-CID investigated the case, which Assistant U.S. Attorney Allison Garnett and Blake Milner are prosecuting.
Statement from United States Attorney Jay E. Town on the Death of Kimberly Police Department Officer Nick O’RearRead the Press Release
BIRMINGHAM, Ala. – “Kimberly PD Officer Nick O’Rear’s end of watch has come to soon. Our thoughts and prayers are with his family, friends and fellow officers. This tragedy is yet another heartbreaking reminder of the dangers all law enforcement face while we enjoy the safety they provide us. We must ask ourselves how we can all join together to bridge the respect deficit for law enforcement that is directly and indirectly leading to violence against our brave men and women of the badge. Enough is enough.”
Alabama Physician Pleads Guilty to Drug Distribution Charges for Prescription of OpioidsRead the Press Release
BIRMINGHAM, Ala. – A family medicine physician pleaded guilty today of drug distribution charges arising out of her prescription of opioid drugs from a medical clinic she operated in Alabama.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Jay E. Town of the Northern District of Alabama, Special Agent in Charge Derrick L. Jackson for the Office of Inspector General of the U.S. Department of Health and Human Services and Special Agent in Charge Brad L. Byerley of the Drug Enforcement Administration’s New Orleans Field Division made the announcement.
Celia Lloyd-Turney (Turney), M.D., 66, of Toney, Alabama, who operated Choice Medicine Clinic, pleaded guilty to one count of unlawful distribution of controlled substances. Sentencing has been scheduled for June 8, 2020 before U.S. District Judge Liles C. Burke of the Northern District of Alabama.
"Turney operated a family medicine clinic, mass-prescribing opioids without medical justification and taking advantage of patients, many of whom are addicted to opioids, with no regard to the larger pain brought to those individuals, families and communities,” Town said. “After the government had rested its case, and faced with the mountain of evidence presented against her, Dr. Turney didn’t wait for the verdict. She pleaded guilty, which is the strongest form of proof in our system. I am grateful to the trial team, Main Justice Criminal Fraud Section, Criminal Division AAG Brian Benczkowski, and the entire ARPO Strike Force team for their efforts in this case. The citizens of Alabama are safer as a result and the message is clear to medical providers who over-prescribe opioids: the white coat is no shield to federal prosecution.”
"Prescription drug abuse remains a significant problem in this country that destroys countless lives. DEA is fully committed to the pursuit of any individual who abandons their oath as a medical practitioner,” DEA Special Agent in Charge Brad L. Byerley said. “DEA will continue to work with all of our law enforcement partners, the medical community and the public to identify and stop those responsible for endangering lives in our communities and bring them to justice.”
The plea came after a trial while the jury was deliberating, but before they reached a verdict. At trial, evidence showed that from 2015 to 2017, Turney wrote multiple prescriptions for controlled substances to purported patients who were actively abusing other drugs, suffering from addiction, and selling the pills.
This case was investigated by HHS-OIG and the DEA, with the assistance of the Huntsville, Alabama Police Department. Trial Attorneys Louis Manzo and Ann Weber Langely 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 Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare 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 nearly $19 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
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 70 defendants who are collectively responsible for distributing more than 40 million pills.
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.
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Alabama Physician Pleads Guilty to Drug Distribution Charges for Prescription of OpioidsRead the Press Release
A family medicine physician pleaded guilty today of drug distribution charges arising out of her prescription of opioid drugs from a medical clinic she operated in Alabama.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Jay E. Town of the Northern Distrcit of Alabama, Special Agent in Charge Derrick L. Jackson for the Office of Inspector General of the U.S. Department of Health and Human Services and Special Agent in Charge Brad L. Byerley of the Drug Enforcement Administration’s (DEA) New Orleans Field Division made the announcement.
Celia Lloyd-Turney (Turney), M.D., 66, of Toney, Alabama, who operated Choice Medicine Clinic, pleaded guilty to one count of unlawful distribution of controlled substances. Sentencing has been scheduled for June 8, 2020, before U.S. District Judge Liles C. Burke of the Northern District of Alabama.
The plea came after a trial while the jury was deliberating, but before they reached a verdict. At trial, evidence showed that from 2015 to 2017, Turney wrote multiple prescriptions for controlled substances to purported patients who were actively abusing other drugs, suffering from addiction, and selling the pills.
This case was investigated by HHS-OIG and the DEA, with the assistance of the Huntsville, Alabama Police Department. Trial Attorneys Louis Manzo and Ann Weber Langely 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 Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare 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 nearly $19 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
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 70 defendants who are collectively responsible for distributing more than 40 million pills.
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.
U.S. Attorney Jay E. Town Statement on Closing of Holman FacilityRead the Press Release
“The Department of Justice learned this morning that the Holman facility was to be closed and that the majority of the prisoners housed in that prison would be transferred to other facilities. I am disappointed that we were not privy to the decision to close Holman at the time such a decision was being considered. We will continue to forge ahead in our good faith negotiations.”