Northern District of Oklahoma
Press releases recorded for this federal judicial district.
Sand Springs Police and IRS Snare Man for False Tax ReturnsRead the Press Release
A Sand Springs man pleaded guilty today in federal court for filing a fraudulent tax return which resulted in a $3,800 tax refund, announced U.S. Attorney Trent Shores.
Kevin Glenn Petty, 54, pleaded guilty to theft of government property before Chief U.S. District Judge John E. Dowdell. In the plea agreement, Petty admitted to opening multiple financial accounts in order to receive the direct deposit refunds resulting from fraudulent federal income tax filings.
“Tax refund identity theft is a significant and growing problem. In fact, the IRS has previously identified it as the number one tax fraud scam they see,” said U.S. Attorney Trent Shores. “Tax refund identity theft can be a financially lethal combination for victims causing delays in their return or problems with future filings.”
In 2017, Petty filed a fraudulent 2016 income tax return using the name of a taxpayer who was unaware of the filing of the false document. The $3,800 tax refund amount was deposited into a Green Dot card account, which funded a Green Dot pre-paid debit account. Petty also filed five additional fraudulent returns, under different names, which were intercepted by the IRS. The six false returns filed by Petty sought a total of $12, 303 in fraudulent refunds.
At the time of his arrest by Sand Springs Police in 2017, Petty was found to be in possession of personal identifying information of multiple individuals. The information in Petty’s possession at the time of his arrest included credit and debit cards in the names of other individuals, as well as a list of names with social security numbers and dates of birth. Another document in Petty’s possession at the time of his arrest also included e-mail addresses and passwords, phone numbers, mailing addresses, and routing and bank account information for other individuals.
Chief Judge Dowdell set sentencing for Jan. 6, 2020.
The Sand Spring Police Department, IRS-Criminal Investigation and the U.S. Postal Inspector conducted the investigation. Assistant U.S. Attorney Charles M. McLoughlin prosecuted the case.
Jury Finds Tulsa Man Guilty of Federal Firearms and Drug Trafficking CrimesRead the Press Release
United States Attorney Trent Shores announced that a jury found Evan Jamon Woodard, 34, of Tulsa, guilty on Wednesday of multiple crimes, including intent to distribute cocaine, marijuana, and heroin, while carrying a firearm.
"I thank the jury for their service. Justice was done today. A gun-toting drug dealer who had seven prior felony convictions is off the streets and headed to federal prison," stated U.S. Attorney Trent Shores. "Guns and drugs are a dangerous combination that often lead to violence. That is why our Project Safe Neighborhoods initiative focuses on these types of offenses. I commend Assistant U.S. Attorneys Victor Regal and Edward Snow for successfully prosecuting this case, and the ATF and TPD for their thorough investigation. This guilty verdict is a direct reflection of the excellent collaborative law enforcement partnerships we have in northern Oklahoma."
Ultimately, the jury found Woodard guilty of 7 total felony charges. U.S. District Judge Gregory K. Frizzell presided over the trial and will sentence Woodward on December 30, 2019. Woodard faces a maximum penalty of 10 years in prison and a $250,000 fine for the felon in possession of firearm and ammunition charge; a maximum penalty of 20 years in prison and a $1,000,000 fine for the possession with intent to distribute cocaine and heroin charges; a maximum penalty of 5 years in prison and a $250,000 fine for the possession with intent to distribute marijuana charges; and a maximum penalty of life in prison and a $250,000 fine for possessing a firearm in furtherance of drug trafficking crimes.
Project Safe Neighborhoods is the nationwide federal initiative to disrupt gun violence strategically and comprehensively, using all available enforcement and prosecutive tools. The initiative involves a partnership of federal, state, and local authorities, uniting their efforts and leveraging existing and new resources at all levels. Each United States Attorney’s Office will create a specialized unit that tailors its approach to the unique needs of its own district, and targets the most significant gun crime problems within that district to maximize the impact of the initiative and help ensure the safety of the community.
Woodard’s arrest and conviction were the result of a coordinated effort involving the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Tulsa Police Department, and Assistant U.S. Attorneys Victor Regal and Edward Snow.
Tulsa Man Pleads Guilty to Bankruptcy FraudRead the Press Release
A Tulsa resident pleaded guilty today to making a false statement in a bankruptcy proceeding, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney R. Trent Shores.
According to the information and written plea agreement filed in the case, Michael J. Fletcher, of Tulsa, filed a bankruptcy petition in August of 2011 in which he stated that he had no legal or equitable interest in any real property. In November 2011, the Department of Justice filed a complaint objecting to the discharge of Fletcher’s federal income tax debts on the grounds that Fletcher had concealed his interest in real property located on 110th Street in Tulsa, Oklahoma. During the trial in that matter in October 2014, Fletcher testified that his parents owned the house on 110th Street and that the down payment for the purchase was funded by a loan from his daughters to his father. In pleading guilty Fletcher admitted that he was the source of the funds used for the down payment, and that he lied during his bankruptcy court testimony when he denied this fact
“By effectively combating white collar crime and prosecuting individuals like Mr. Fletcher, we can protect the U.S. Bankruptcy Court and creditors from fraud,” said U.S. Attorney Trent Shores. “Moreover, I hope this prosecution signals a warning to others who would seek to commit fraud. I know that deterrence requires enforcement. That’s why we will continue to uphold our oath and enforce the laws of the United States. From white collar criminals to violent criminals, they can expect us to diligently pursue justice.”
United States District Court Judge John Dowdell scheduled Fletcher’s sentencing for December 23, 2019.
The case was investigated by special agents of IRS-Criminal Investigation. Assistant Chief Andrew Kameros of the Tax Division and Assistant U.S. Attorney Victor Régal are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Tulsa Man Pleads Guilty to Bankruptcy FraudRead the Press Release
A Tulsa resident pleaded guilty today to making a false statement in a bankruptcy proceeding, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney R. Trent Shores for the Northern District of Oklahoma.
According to the information and written plea agreement filed in the case, Michael J. Fletcher, of Tulsa, Oklahoma, filed a bankruptcy petition in August of 2011 in which he stated that he had no legal or equitable interest in any real property. In November 2011, the Department of Justice filed a complaint objecting to the discharge of Fletcher’s federal income tax debts on the grounds that Fletcher had concealed his interest in real property located on 110th Street in Tulsa, Oklahoma. During the trial in that matter in October 2014, Fletcher testified that his parents owned the house on 110th Street and that the down payment for the purchase was funded by a loan from his daughters to his father. In pleading guilty Fletcher admitted that he was the source of the funds used for the down payment, and that he lied during his bankruptcy court testimony when he denied this fact.
United States District Court Judge John Dowdell scheduled Fletcher’s sentencing for Dec. 23, 2019.
The case was investigated by special agents of IRS-Criminal Investigation. Assistant Chief Andrew Kameros of the Tax Division and Assistant U.S. Attorney Victor Regal are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Jury Convicts Tulsa Man of Gun ChargeRead the Press Release
On Thursday, a federal jury convicted Ira Lee Wilkins, 38, of Tulsa, for being a felon in possession of a Hi-Point C9 9 mm pistol and associated ammunition, announced U.S. Attorney Trent Shores.
“Felons who possess firearms pose a threat to the safety and security of our community. This prosecution was a part of our Project Safe Neighborhoods initiative. I am thankful for the service of the jurors. They rendered their verdict, and Mr. Wilkins was found guilty beyond a reasonable doubt,” said U.S. Attorney Shores. “The evidence in this case was strong, including a Tulsa Police officer’s body-worn camera. I commend the work of the investigative agencies and federal prosecutors who pursued justice in this case.”
In May 2019, a local business contacted authorities after a disturbance involving the defendant. Officers from the Tulsa Police Department answered the call and discovered that Wilkins had outstanding warrants and was previously convicted of multiple felonies. Upon his arrest, officers found the loaded pistol in his front pants’ pocket.
The Tulsa Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorneys Scott Proctor and Shannon Cozzoni prosecuted the case.
Attorney General Barr Appoints Nine New U.S. Attorneys to Advisory CommitteeRead the Press Release
Attorney General William P. Barr today announced the appointment of the following nine U.S. Attorneys to serve on the Attorney General’s Advisory Committee (AGAC): David Anderson, Northern District of California; Scott Brady, Western District of Pennsylvania; Maria Chapa Lopez, Middle District of Florida; Halsey Frank, District of Maine; Erica MacDonald, District of Minnesota; Christina Nolan, District of Vermont; Zach Terwilliger, Eastern District of Virginia; Tom Kirsch, Northern District of Indiana; and Nicholas Trutanich, District of Nevada.
“I am pleased to appoint these nine outstanding U.S. Attorneys to this key advisory committee. I am confident that they will serve with distinction,” Attorney General William P. Barr said. “The U.S. Attorneys who comprise the Attorney General’s Advisory Committee play a critical role in carrying out the Department of Justice’s important work, including its efforts to reduce violent crime, combat the opioid crisis, protect the most vulnerable, and enforce the rule of law.”
U.S. Attorney Trent Shores and five other U.S. Attorneys will continue serving on the committee.
“I am honored to continue to serve on the Attorney General’s Advisory Committee. Attorney General Barr is a dynamic leader with an unshakeable devotion to justice and the rule of law,” said U.S. Attorney Shores. “I will strive to represent with honor and integrity the Northern District of Oklahoma, as well as all of my U.S. Attorney colleagues in the Tenth Circuit. From reducing violent crime to combating elder fraud to confronting the opioid epidemic, the Attorney General’s priorities are my priorities. Together, we will do all we can to pursue justice for the American people.”
The Attorney General also thanked the following U.S. Attorneys who have completed their terms and are rotating off the committee: Louis Franklin, Middle District of Alabama; Robert Higdon, Eastern District of North Carolina; John Huber, District of Utah; Rob Hur, District of Maryland; Jeff Jensen, Eastern District of Missouri; Andrew Lelling, District of Massachusetts; Joshua Minkler, Southern District of Indiana; Richard Moore, Southern District of Alabama; Bryan Schroder, District of Alaska; and David Weiss, District of Delaware.
Attorney General Barr also announced that U.S. Attorney for the Northern District of Texas Erin Nealy Cox, a current member, will replace U.S. Attorney John Huber as the Vice Chair of the AGAC.
Chaired by U.S Attorney for the District of Columbia, Jessie K. Liu, the AGAC represents the voice of the U.S. Attorneys and provides advice and counsel to the Attorney General on policy, management, and operational issues impacting U.S. Attorneys’ Offices.
Three Tulsans Charged for Supplying Patients with Illegal Opioid PrescriptionsRead the Press Release
TULSA, Okla. – A federal grand jury has indicted a Tulsa doctor and his two employees for conspiring to illegally distribute prescription opioids to patients, announced U.S. Attorney Trent Shores. Agents from the Drug Enforcement Administration (DEA) arrested the trio this morning.
Dr. Christopher V. Moses, 66, Melisa D. Million, 49, and Kay Speir, 54, are charged with drug conspiracy and aiding and abetting each other to distribute Oxycodone, Fentanyl, Carisoprodol, Clonazepam, Morphine Sulfate, Hydrocodone, and Tramadol. In court filings, the United States alleged that three patients died as a result from opioids prescribed by Dr. Moses.
The defendants distributed the prescriptions from January 2010 to January 2018 at the Southside Medical Clinic in Tulsa. The indictment alleges that Dr. Moses prescribed highly addictive and often abused opioids to his patients without valid medical purpose or for reasons outside of his scope of practice and that Moses and Speir also illegally made pre-signed prescriptions for the medications available to patients when Moses was absent.
“The opioid epidemic has taken a deadly toll on communities across our nation, including here in Oklahoma. As alleged in the indictment, Dr. Moses and his co-conspirators operated a ‘pill mill’ through which they distributed highly addictive opioids without a medical purpose,” said U.S. Attorney Trent Shores. “In fact, the United States has sought detention for Dr. Moses in this case because, in part, we believe he presents a danger to our community here in Northern Oklahoma where his alleged illegal prescribing actions resulted in three people dying from opioid-related overdoses. Make no mistake, my office will vigorously prosecute unscrupulous doctors and their cohorts who enrich themselves by illegally distributing opioids.”
“The DEA is actively battling the opioid epidemic that we are facing as a nation,” said John P. Scott, Assistant Special Agent in Charge of the Drug Enforcement Administration’s Oklahoma District. "DEA Tulsa is committed to combating the opioid problem in Northeast Oklahoma and recognizes the community impact the overprescribing of opioids plays in this epidemic. Hopefully these arrests will act as a reminder that the DEA will continue to investigate corrupt doctors, pharmacies, and/or manufacturers who illegally distribute these highly addictive drugs.”
The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
The Drug Enforcement Administration is the investigative agency. Assistant U.S. Attorney Joel-lyn McCormick is prosecuting the case. AUSA McCormick serves as the lead attorney for the United States Attorney’s Organized Crime Drug Enforcement Task Forces.
Bartlesville Woman Sentenced for Stealing Almost $400,000 from Family-Owned BusinessRead the Press Release
A Bartlesville woman was sentenced today in federal court for stealing $394,058.20 from her employer and submitting a false tax return, announced U.S. Attorney Trent Shores.
U.S. District Judge Gregory K. Frizzell sentenced Gina Lisa Preble, 59, of Bartlesville, to 26 months in federal prison followed by five years of supervised release for bank fraud and subscribing to a false tax return. The court further ordered Preble to pay $394,058.20 in restitution.
“With five fraud related convictions since 1981, Gina Preble has made a career out of white collar crime,” said U.S. Attorney Trent Shores. “It is not only armed robbers who cause economic harm to our community. Fraudsters like Gina Preble must be prosecuted and dealt serious consequences. Enough is enough. Not only will she be required to pay back the money she stole from the victim, but she will also spend some hard time in federal prison.”
Preble was employed as a clerk at TransWood Carriers Incorporated from 2011 until her termination in 2017. In an effort to disguise her thefts, Preble created fraudulent “draft checks” which she mixed in with legitimate business expense “draft checks” in order to trick her supervisor into signing them. Preble deposited fraudulent draft checks totaling $394,058.20 into her personal checking account, and used the funds for her own personal gain. Additionally in 2016, Preble signed and submitted a false tax return, omitting the stolen funds as income.
The Financial Litigation Unit at the U.S. Attorney’s Office for the Northern District of Oklahoma will pursue the restitution owed to the victim.
IRS-Criminal Investigation and the FBI conducted the investigation. Assistant U.S. Attorney Charles M. McLoughlin prosecuted the case.
Five Men Charged with Heroin ConspiracyRead the Press Release
Five men have been charged in separate Criminal Complaints this week for allegedly conspiring to distribute heroin in the Northern District of Oklahoma, announced U.S. Attorney Trent Shores.
Pablo Soriano-Villareal, Diego Carrillo-Lopez, Felix Gil-Cardenas, David Hernandez-Perez, and Oscar Delgado-Trujillo were apprehended by authorities in Tulsa, on Wednesday, as part of a joint operation which began in June 2019. The Criminal Complaint alleges that the defendants were involved in a drug trafficking organization that sold heroin in Tulsa.
“Drug traffickers working in Oklahoma should know that the DEA and U.S. Attorney’s Office will relentlessly pursue them to disrupt and dismantle their organizations,” said U.S. Attorney Shores. “These types of cases involve collaborative investigative efforts. I commend the DEA for their role as the lead agency in this case and am appreciative of the important contributions by the FBI and Tulsa Police Department as well. We must get heroin off our streets.”
A Criminal Complaint is a set of allegations that, if the case were to proceed to trial, the government would need to prove beyond a reasonable doubt. Defendants are presumed innocent until proven guilty in a court of law.
The Drug Enforcement Administration, FBI, and Tulsa Police Department are the investigative agencies. Assistant U.S. Attorney Eric O. Johnston is prosecuting the case.
Federal Grand Jury Criminal Indictments AnnouncedRead the Press Release
United States Attorney Trent Shores announced today the results of the September 2019 Federal Grand Jury B.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Christian Alvarado Morales; Anderson Garces Lopez. Conspiracy to Transfer Identification Documents; Aggravated Identity Theft; Possession With Intent to Use and Transfer Five or More Documents and Authentication Features; Unlawful Reentry of Removed Alien. Alvarado, 30, and Garces, 29, both of Tulsa, are charged with conspiring to create and sell fraudulent identification cards, including falsified U.S. Permanent Resident Cards and U.S. Social Security Cards. Garces is also charged with two counts of aggravated identity theft. Alvarado is also charged with three counts of aggravated identity theft, and he is charged with possession with intent to transfer five or more falsified identification documents. Alvarado is further charged with reentry of a removed alien, having returned to the United States unlawfully after being deported March 25, 2008, at or near Laredo, Texas. Immigration and Customs Enforcement’s Homeland Security Investigations and Enforcement and Removal Operations are the investigative agencies.
Ivan Arroyo. Interstate Communication With Intent to Extort. Arroyo, 27, of Broken Arrow, is charged with extortion using social media. Arroyo allegedly threatened to harm the reputation of another individual if the victim did not comply with his demands. The Cherokee Nation Marshal Service and FBI are the investigative Agencies.
Paul B. Bowker. Failure to Account for and Pay Over Withholding and FICA (Social Security and Medicare) Taxes (7 counts); Bank Fraud (100 counts). Bowker, 56, of Lancashire, United Kingdom, was chief financial officer and vice president for finance at a company that maintained offices in the Northern District of Oklahoma. While working in this position, Bowker was living in Tulsa. Per United States tax law, the company was responsible for withholding income taxes and FICA taxes from employees’ paychecks and for paying the monies over to the U.S. Internal Revenue Service (IRS). Bowker is charged with failure to collect and pay more than 3.6 million in income and FICA taxes from April 2014 through January 2016. In addition, Bowker is charged with 100 counts of bank fraud. As chief financial officer, Bowker was entrusted with a company credit card and was responsible for paying the monthly credit card bill by authorizing electronic transfer of funds from the company’s checking account at Mabrey Bank, in Bixby, to the company’s Visa account. From January 2014 through December 2015, Bowker is alleged to have fraudulently used the Visa credit card to make $130,000 worth of purchases for his own benefit then paying for those charges with the company’s checking account at Mabrey Bank. The IRS Criminal Investigation Division and FBI are the investigative agencies.
Neville David Ewell and Larry Latwan Walker. Possession of Cocaine With Intent to Distribute; Maintain Drug-Involved Premises; Felon in Possession of Firearms and Ammunition; Destruction or Removal of Property to Prevent Seizure; Unlawful User of Controlled Substances in Possession of Firearm and Ammunition; Drug Conspiracy; Possession of Methamphetamine With Intent to Distribute; Possession of Firearm in Furtherance of Drug Trafficking Crimes; and Destruction or Removal of Property to Prevent Seizure (Superseding Indictment). Ewell, 45, of Broken Arrow, is charged with possessing with intent to distribute cocaine and maintaining a drug-involved premises. Ewell is alleged to have used and maintained a premises in Tulsa for the purpose of manufacturing, distributing, and using cocaine. He is also charged with being a felon in possession of a Pietro Beretta 9x19mm caliber semi-automatic pistol and ammunition. Walker, 29, of Tulsa, is charged with being a felon in possession of a Smith & Wesson .40 caliber semi-automatic pistol and ammunition; and he is charged with possessing the Smith & Wesson pistol knowing he was an unlawful user of a controlled substance. Walker is further charged with possessing the Smith & Wesson pistol in furtherance of drug trafficking crimes. Ewell and Walker are both charged with conspiring to distribute and to possess with intent to distribute methamphetamine. Both men are further charged with possessing methamphetamine with intent to distribute; and they are charged with destroying, damaging, or removing property to prevent its seizure by law enforcement. The Tulsa Police Department, FBI, and Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigative agencies.
Richard Blake Holbrook. Attempted Coercion and Enticement of a Minor. Holbrook, 23, of Bristow, is charged with attempting to persuade and entice an individual whom he believed to be a minor to engage in sexual activity. The Bristow Police Department is the investigative agency.
Edward Leiva-Alvarez. Drug Conspiracy. Leiva-Alvarez, 37, residing at the Oklahoma State Penitentiary in McAlester, is charged with conspiring to possess with intent to distribute and to distribute 500 grams or more of methamphetamine. The Drug Enforcement Administration, FBI, Oklahoma Highway Patrol, Grand River Dam Authority and Miami Police Department are the investigative agencies.
Early Livestock. Failure to Register as a Sex Offender. Livestock, 48, of Tulsa, is charged with failing to register as a sex offender since July 2, 2018. The U.S. Marshals Service and Tulsa Police Department are the investigative agencies.
Clinton Eugene Rose. Felon in Possession of a Firearm. Rose, 43, of Cleveland, is charged with being a felon in possession of a Hi-Point .45ACP caliber semi-automatic pistol. According to the Indictment, Rose has previously been convicted of 24 different felonies. The Tulsa Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigative authorities.
Lucas Shane Vann. Sexual Exploitation of a Child (Superseding Indictment). Vann, 19, of Salina, is charged with knowingly producing an image of a minor engaging in sexually explicit conduct. The Delaware County Sheriff’s Office and FBI are the investigative agencies.
Jalil Charles Edward West. Felon in Possession of Firearm and Ammunition. West, 30, of Tulsa, is charged with being a felon in possession of a Zastava 7.62X39mm semi-automatic pistol and 70 rounds of associated ammunition. The Tulsa Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigative agencies.
Two Sapulpa Women Plead Guilty to Illegally Collecting More Than $350,000 in Death BenefitsRead the Press Release
Two Sapulpa women pleaded guilty today in U.S. District Court to illegally taking more than $350,000 in Social Security and military retirement benefits that were meant for their mother, announced U.S. Attorney Trent Shores.
Patricia Lee Kendall, 66, and Peggy Lee Larue, 63, both of Sapulpa, pleaded guilty to two-counts of aiding and abetting each other to illegally take and conceal government property in the form of money from both the Social Security Administration and the Department of Defense Military Retirement Fund. The women admitted in court that they failed to notify authorities of their mother’s death in December 2000. Previously, their mother had received the death benefit payments as a result of her husband’s military service. After their mother passed away, the payments should have ceased.
“Illegally taking the Social Security death benefits and military retirement benefits meant for their mother, long after she passed away, is shameful,” said U.S. Attorney Trent Shores. “Fraud investigations performed by inspectors general are crucial to identifying waste, abuse, or fraud. I applaud the efforts of the investigators and Assistant U.S. Attorneys Scott Proctor and Shannon Cozzoni in this case.”
Kendall and Larue illegally took money from the Social Security Administration in the aggregate value of $224,237 in Social Security income as well as money from the Department of Defense Military Retirement Fund in the aggregate value of $129,765 in military retirement funds. The two are subject to a criminal forfeiture money judgement in the amount of $354,002.
U.S. District Judge Gregory K. Frizzell set sentencing for Dec. 4, 2019.
The Social Security Administration- Office of Inspector General and Department of Defense Criminal Investigative Service conducted the investigation. Assistant U.S. Attorneys Scott Proctor and Shannon Cozzoni are prosecuting the case.
Bernice Man Sentenced for Dealing MethamphetamineRead the Press Release
A Bernice man was sentenced today in U.S. District Court for possession with intent to distribute methamphetamine, announced U.S. Attorney Trent Shores.
Chief Judge John E. Dowdell sentenced Kenneth James Thunderburk, 38, to five years in federal prison. Thunderburk pleaded guilty to the charge in May 2019.
“Methamphetamine continues to be Oklahoma’s number one problem drug. Kenneth Thunderburk exacerbated that problem by dealing meth to addicts in our community. My concern is not only for the users who struggle daily with addiction, but also for their family and friends. Children who live in a household with a meth-addicted parent are often neglected and subjected to dangerous, unpredictable conditions,” said U.S. Attorney Shores. “Dealers like Kenneth Thunderburk must be put out of business and held accountable for the drug fueled misery they spread.”
Thunderburk was arrested in December 2018 after security at the Hard Rock Hotel and Casino in Catoosa reported him as trespassing to authorities. He had been banned from the premises in 2017. When a Catoosa police officer located the defendant at a near-by smoke shop, he searched the defendant and discovered methamphetamine and a large amount of cash. The officer who conducted the search is cross-commissioned with the Cherokee Nation Marshal Service. After reviewing Hard Rock security footage, investigators concluded that Thunderburk’s behavior while in the casino and during questioning indicated that he was dealing the drug.
“This investigation is a great example of the excellent multi-jurisdictional relationships we have in northeastern Oklahoma,” U.S. Attorney Shores said. “Because of the cross commissions that were in place, local, tribal, and federal officers worked seamlessly together to investigate Kenneth Thunderburk. This is what collaborative policing looks like, and there isn’t any better example in the United States than Northern Oklahoma.”
The Catoosa Police Department, Cherokee Nation Marshal Service, Bureau of Indian Affairs, and Drug Enforcement Administration are the investigative agencies. Assistant U.S. Attorney Scott M. Proctor prosecuted the case.
Attorney General’s Advisory Subcommittee on Native American Issues Convenes in New MexicoRead the Press Release
U.S. Attorney Trent Shores, along with fellow members of the Attorney General’s Advisory Subcommittee on Native American Issues (NAIS), are meeting this week in Santa Ana Pueblo, New Mexico, to discuss public safety and law enforcement issues that impact Native American and Alaska Native communities.
The annual meeting started today and will run through Aug. 30. The NAIS will engage with tribal leaders and develop strategies and best practices to address missing and murdered indigenous people, drug trafficking, needed law enforcement resources, and safeguarding children from sexual abuse in Indian country.
The most common crimes investigated in Indian country include child sexual abuse, violent assaults, and adult sexual assaults, followed by homicide, other forms of child abuse, drug, and property crimes. According to a 2016 study funded by the National Institute of Justice, more than four in five American Indian and Alaska Native adults have experienced some form of violence in their lifetime, and more than half of all American Indian and Alaska Native women have experienced violence from an intimate partner. Native women and girls suffer a high rate of violence, including murder.
“United States Attorneys nationwide are committed to improving public safety in Indian country and rural Alaska. The work of Attorney General Barr’s Native American Issues Subcommittee is focused on reducing violent crime, improving law enforcement resources, and combating the distribution of methamphetamine and opioids,” said U.S. Attorney Shores, Chair of the NAIS. “The disproportionate rates of violence affecting Native American and Alaska Native women is particularly troubling to me. With Attorney General Barr’s leadership, we will continue working with tribal leaders to find solutions to the epidemic of violence against indigenous women.”
Panel discussions will also focus on the Indian Arts and Crafts Act and preserving Native American cultural patrimony. The Indian Arts and Crafts Act of 1990 is a truth-in-advertising law that prohibits misrepresentation in the marketing of Indian arts and crafts products within the United States. It is illegal to offer or display for sale, or sell any art or craft product in a manner that falsely suggests it is Indian produced, an Indian product, or the product of a particular Indian or Indian tribe or Indian arts and crafts organization, resident within the United States.
U.S. Attorney John Anderson of the District of New Mexico is hosting the three-day meeting.
The NAIS consists of 53 U.S. Attorneys serving in districts that include Indian Country or one or more federally recognized tribes and makes policy recommendations to the Attorney General. The NAIS has identified four priority areas: 1) Violent crime 2) Law enforcement resources 3) Drug trafficking and substance abuse, and 4) White collar crime. It is the longest standing subcommittee to the Attorney General’s Advisory Committee and helps develop, shape, and otherwise implement justice policies affecting Native Americans and Alaska Natives. U.S. Attorney Kurt Alme of the District of Montana is the Vice Chair.
In fiscal year 2018, the Department of Justice awarded $113 million in grant awards to improve public safety, serve victims of crime, combat violence against women, and support youth programs, to 134 Indian tribes and Alaska Native villages. In addition, the Department awarded a total of 154 grants totaling $88 million as part of the first-ever Tribal Victim Service Set-Aside program; these awards were supported by the Crime Victims Fund, a repository of federal criminal fines, fees, and special assessments. The awards will help tribes develop, expand and improve services to victims of crime by providing funding, programming and technical assistance. Even more funding will be available – up to $168 million – under the set-aside this year.
In July 2019, the Department announced a new tool giving tribal governments the ability to input data directly and gain access to the FBI’s National Sex Offender Registry (NSOR) using the Tribe and Territory Sex Offender Registry System (TTSORS). TTSORS is a fully functioning registry system that complies with Sex Offender Registration and Notification Act requirements. The system connection will be available to all tribal governments already participating in the Tribal Access Program (TAP), which allows information sharing between tribal and federal government criminal information systems. TAP has been instrumental in assisting tribes with ongoing implementation of SORNA. In fiscal year 2019, the department expanded TAP to 25 more tribes, for a total of more than 70 participating tribes across the country.
Former Oklahoma Probation Officer Pleads Guilty to Sexual AssaultRead the Press Release
Steven Powers, 35, a former probation and parole officer with the Oklahoma Department of Corrections, pleaded guilty today in federal court in Tulsa, Oklahoma, to two counts of violating the civil rights of two female probationers whom he supervised when he subjected them to unwanted sexual contact.
According to court documents, during the course of supervising the victim listed in Count One, from on or about Nov. 3, 2015 through Jan. 19, 2017, Powers engaged in sexually inappropriate behavior, culminating in sexual assault. During the course of supervising the victim listed in Count Two, from on or about Nov. 2, 2015 through April 30, 2017, Powers likewise engaged in sexually inappropriate behavior, culminating in sexual contact against the victim’s will. In each of these instances, the defendant admitted that he knew what he was doing was wrong and against the law, yet he did so anyway.
“The Department of Justice will not tolerate probation officers who exploit their authority by sexually assaulting individuals under their supervision,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “We will continue to vigorously prosecute those who abuse their power in this way.”
“Steven Powers is not above the law. Rather, he took an oath to uphold it. In fact, he betrayed the trust placed in him by the State of Oklahoma to fulfill his duties as a probation and parole officer,” said U.S. Attorney Trent Shores of the Northern District of Oklahoma. “He egregiously abused his authority by sexually assaulting the victims, violating their civil rights and ultimately damaging the integrity our justice system. For his despicable crimes, we will hold him accountable.”
This case is being investigated by the Oklahoma City Division of the FBI and the Oklahoma State Bureau of Investigation in cooperation with the Oklahoma Department of Corrections and the Tulsa County District Attorney’s Office. It is being prosecuted by Assistant United States Attorney Jarrod Leaman of the Northern District of Oklahoma and Special Litigation Counsel Fara Gold of the Civil Rights Division of the U.S. Department of Justice
Former Oklahoma Probation Officer Pleads Guilty to Sexual AssaultRead the Press Release
Steven Powers, 35, a former probation and parole officer with the Oklahoma Department of Corrections, pleaded guilty today in federal court in Tulsa, Oklahoma, to two counts of violating the civil rights of two female probationers whom he supervised when he subjected them to unwanted sexual contact.
According to court documents, during the course of supervising the victim listed in Count One, from on or about Nov. 3, 2015 through Jan. 19, 2017, Powers engaged in sexually inappropriate behavior, culminating in sexual assault. During the course of supervising the victim listed in Count Two, from on or about Nov. 2, 2015 through April 30, 2017, Powers likewise engaged in sexually inappropriate behavior, culminating in sexual contact against the victim’s will. In each of these instances, the defendant admitted that he knew what he was doing was wrong and against the law, yet he did so anyway.
“The Department of Justice will not tolerate probation officers who exploit their authority by sexually assaulting individuals under their supervision,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “We will continue to vigorously prosecute those who abuse their power in this way.”
“Steven Powers is not above the law. Rather, he took an oath to uphold it. In fact, he betrayed the trust placed in him by the State of Oklahoma to fulfill his duties as a probation and parole officer,” said U.S. Attorney Trent Shores of the Northern District of Oklahoma. “He egregiously abused his authority by sexually assaulting the victims, violating their civil rights and ultimately damaging the integrity our justice system. For his despicable crimes, we will hold him accountable.”
This case is being investigated by the Oklahoma City Division of the FBI and the Oklahoma State Bureau of Investigation in cooperation with the Oklahoma Department of Corrections and the Tulsa County District Attorney’s Office. It is being prosecuted by Assistant United States Attorney Jarrod Leaman of the Northern District of Oklahoma and Special Litigation Counsel Fara Gold of the Civil Rights Division of the U.S. Department of Justice.
Former Fugitive Pleads Guilty to Firearms ChargeRead the Press Release
A former fugitive from Arkansas who was arrested in Delaware County pleaded guilty to a federal firearms charge, announced U.S. Attorney Trent Shores.
Levi Owen Handle, 30, of Gravette, Arkansas, pleaded guilty today in U.S. District Court to being a fugitive in possession of firearms. A Mossberg 12-gauge shotgun and a Ruger .22 caliber pistol were discovered in Handle’s vehicle during his arrest.
On June 14, 2019, an individual contacted authorities after hearing a gunshot the previous night and discovering Handle’s vehicle on private property in Jay. When a Delaware County Sheriff’s Office deputy questioned Handle, he initially refused to provide his name and attempted to flee on foot. He was eventually subdued and handcuffed. After the deputy ran a check on Handle, he was placed under arrest for multiple active warrants and for attempting to escape arrest for a felony. Handle faces charges in Arkansas for making terroristic threats, domestic battery, violating a no-contact order, and failure to appear.
“Federal law prohibits nine categories of people from possessing firearms, including fugitives, felons, and convicted domestic abusers,” said U.S. Attorney Shores. “It is my experience as a career prosecutor that when prohibited persons possess guns, bad things can happen. That’s why cases like this one are important to prosecute. Levi Handle was a fugitive who was fleeing allegations of domestic abuse and terroristic threats in Arkansas. I commend the Delaware County Sheriff’s Office and Assistant U.S. Attorney Victor Régal for their diligence in pursuing this case and holding Levi Handle accountable.”
Federal law has long barred convicted felons and fugitives, as well as individuals subject to certain domestic violence protective orders or convicted of domestic violence misdemeanors, from possessing firearms. Research shows that abusers with a gun in the home are five times more likely to kill their partners than abusers who do not have that same access to a firearm.
Also prohibited are aliens unlawfully in the United States, those dishonorably discharged from military service, individuals with certain mental illness diagnoses, and those who are unlawful users of controlled substances. Individuals are also prohibited from purchasing firearms on behalf of anyone who fits within the above categories.
The Delaware County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney Victor A.S. Régal is prosecuting the case
Man Sentenced to 382 Months in Prison for Firing on Federal AgentsRead the Press Release
A man who fired shots at FBI agents attempting to arrest him in Delaware County on Oct. 1, 2018, was sentenced today in U.S. District Court, announced U.S. Attorney Trent Shores.
U.S. District Judge Claire V. Eagan sentenced Brian Kirk Marshall, 50, of Pattonsburg, Missouri, to 382 months in federal prison to be followed by five years of supervised release. Marshall pleaded guilty on June 5, 2019, to assaulting federal officers, obstruction of justice by attempting to kill witnesses, and carrying, using and discharging a firearm during and in relation to a crime of violence.
“As is evident from the headlines of the last few days, the men and women of law enforcement face life and death situations every day. There are ever-present threats to their safety and security. Defendant Brian Marshall was one of those threats. Not only did he have a history of threatening law enforcement via the internet, but Marshall picked up a gun and fired at FBI special agents attempting to arrest him in northeastern Oklahoma," said U.S. Attorney Shores. "You don’t do that in this district nor anywhere else without serious consequences. I am pleased with the substantial and lengthy prison sentence handed down today by United States District Court Judge Eagan. To the men and women of law enforcement who keep crime at bay in northeastern Oklahoma, thank you for all that you do to serve and protect our community. The United States Attorney’s Office has zero tolerance for threats and violent acts against law enforcement.”
During his plea hearing, Marshall admitted to firing shots at FBI agents after the FBI SWAT Team had appropriately identified themselves and attempted to call all occupants safely out of the residence. The FBI returned fire in accordance with protocol, resulting in Marshall surrendering to authorities. In total, Marshall admitted to firing eight rounds at FBI agents. At the time of the incident, the FBI was attempting to execute a federal search warrant for Marshall’s Delaware County residence; as well as an arrest warrant for interstate communication of threats Marshall allegedly made, in which he threatened to kill police officers.
Marshall remains in custody of the U.S. Marshals Service until transfer to a U.S. Bureau of Prisons facility.
The FBI is the investigative agency. Assistant U.S. Attorney Robert T. Raley is prosecuting the case. AUSA Raley is the National Security Anti-Terrorism (ATAC) Prosecutor for the U.S. Attorney’s Office in the Northern District of Oklahoma
Federal Grand Jury Indictments AnnouncedRead the Press Release
United States Attorney Trent Shores announced today the results of the August 2019 Federal Grand Jury B.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Joshua William Beyerl. Felon in Possession of Firearm and Ammunition; Tampering With a Witness by Physical Force or Threat; Carrying, Using, and Brandishing a Firearm During and in Relation to a Crime of Violence. Beyerl, 36, of Jay, is charged with being a felon in possession of a Savage Arms .22 LR rifle and associated ammunition. He is also charged with threatening to use physical force against a Delaware County Undersheriff, and with brandishing a firearm during the incident. The Delaware County Sheriff’s Office, Grand River Dam Authority, and Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigative agencies.
Jeffrey Scott Bruce. Attempted Bank Robbery. Bruce, 55, of Tulsa, is charged with attempting to rob a JP Morgan Chase Bank on July 25, 2019. The Tulsa Police Department and FBI are the investigative agencies.
Thomas Dustin Daughtry. Sexual Exploitation of a Child; Possession of Child Pornography; Coercion and Enticement. Daughtry, 42, of Sperry, is charged with coercing a minor to engage in sexually explicit conduct for the purpose of producing pictures. He is further charged with possessing and accessing pornographic images, including at least one with a prepubescent minor. He is finally charged with knowingly coercing a minor to engage in sexual activity. The Tulsa Police Department and FBI are the investigative agencies.
Thomas Lawrence Dean. Bank Robbery Using a Dangerous Weapon; False Information on Hoaxes; Felon in Possession of Firearm and Ammunition. Thomas Lawrence Dean, 50, of Tulsa, is charged with two counts of bank robbery using a dangerous weapon, conveying false information on hoaxes, and being a felon in possession of a FIE Corp. TITAN TIGER BLU .38 Special Caliber Revolver and associated ammunition. Dean allegedly robbed an International Bank of Commerce (IBC) on July 1, 2019, and an Arvest Bank on July 10, 2019. In the IBC robbery, he is alleged to have approached a teller and handed her a note demanding money. In the note, Dean indicated that he was in possession of a bomb and firearm. Later, at Arvest Bank, Dean also demanded money, indicating in a note that he had a firearm. The Tulsa Police Department and FBI are the investigative agencies.
John Samuel Glenn. Possession of Methamphetamine With Intent to Distribute; Possession of a Firearm in furtherance of a Drug Trafficking Crime. Glenn, 29, of Tulsa, is charged with possessing with intent to distribute methamphetamine. He is also charged with possessing a Smith & Wesson 9x19 caliber semiautomatic pistol in furtherance of his drug trafficking crime. The Tulsa Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigative agencies.
Keith Ingram. Drug Conspiracy; Possession of Methamphetamine With Intent to Distribute; Distribution of Methamphetamine (2 counts); Possession of a Firearm in Furtherance of Drug Trafficking Crimes; Felon in Possession of a Firearm. From May 28 to May 29, 2019, Ingram, 34, of Tulsa, is alleged to have conspired with others to possess with intent to distribute and to distribute methamphetamine; he is also charged with two counts of knowingly possessing with intent to distribute methamphetamine while aiding and abetting others. He is further charged with possessing a firearm to further his drug trafficking crimes and with being a felon in possession of a Taurus .45 caliber semi-automatic pistol. The Tulsa Police Department is the investigative agency.
Carnell Lovette Matthews. Attempted Coercion and Enticement of a Minor; Receipt of Child Pornography. From April 30 to May 2, 2019 Matthews, 43, of Tulsa, is alleged to have attempted to persuade, induce, coerce, and entice a minor to engage in sexual activity. He is further charged with receiving images of a minor engaged in sexually explicit conduct. The FBI and Broken Arrow Police Department are the investigative agencies.
Alexander Joshua Milner. Possess, Receive, Conceal, Store, Barter, Sell and Dispose of Stolen Firearms; Theft of a Firearm From a Federal Firearm Licensee. Milner, 31, of Sand Springs, is charged with knowingly possessing the following stolen firearms: a Beretta .40 S&W caliber semi-automatic pistol; a Herbert Schmidt .22 caliber revolver; a Mossberg 12 gauge pump-action shotgun; a Remington 12 gauge semi-automatic shotgun; a Benelli 12 gauge semi-automatic shotgun; a Weatherby .22 caliber semi-automatic rifle; and an Anderson Manufacturing 5.56mm caliber semi-automatic rifle. He is further charged with stealing the firearms in July 2019 from a federal firearms licensee in Tulsa. The Osage County Sheriff’s Office and Bureau of Alcohol, Tobacco, Firearms, and Explosives are the investigative agencies.
Kameron Todd Myers, Chelsey Sky Inman, and Colby Murphy. Carjacking (2 counts); Carrying, Using, and Brandishing a Firearm During and in Relation to a Crime of Violence (2 counts); Accessory After the Fact; Felon in Possession of Firearm and Ammunition. Myers, 32, and Murphy, 21, both of Tulsa, are charged with carjacking a 2002 Mercedes-Benz on June 2, 2019. Myers is further charged with brandishing a firearm during the carjacking. Myers is also charged with carjacking a 1999 Jeep Grand Cherokee on June 4, 2019, and with brandishing a firearm during the crime. Finally, Myers is charged with being a felon in possession of a Glock .45ACP caliber semi-automatic pistol. Inman, 26, of Tulsa, is charged with being an accessory after the fact for assisting Myers and Murphy in order to prevent their apprehension and future trial regarding the June 2, 2019, carjacking. The Tulsa Police Department and FBI are the investigative agencies.
Casey Adam Parker. Attempted Coercion and Enticement of a Minor. From July 1 to July 2, 2019, Parker, 39, of Afton, allegedly attempted to knowingly persuade and entice an individual he believed to be a minor to engage in sexual activity. The Tulsa Police Department and FBI are the investigative agencies.
Dawn M. Setser. Unlawful User of a Controlled Substance in Possession of a Firearm. Setser, 39, of Rose, is charged with being an unlawful user of a controlled substance in possession of an Amadeo Rossi .38 special revolver. The Delaware County Sheriff’s Office and Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigative agencies.
Jason Ray Smith. Attempted Coercion and Enticement. Smith, 40, of Sapulpa, is charged with attempting to persuade and entice an individual whom he believed to be a minor to engage in sexual activity. The Tulsa Police Department and FBI are the investigative agencies.
Lee Charles Smith. Destruction of an Energy Facility (6 Counts). In September 2018, Smith, 32, of Wynona, is alleged to have damaged six oil pumping rigs throughout Osage County by removing motors and other equipment from the pumpjack rigs. In total, Smith is alleged to have caused in excess of $30,000 worth of damages. The Osage County Sheriff’s Office and Oklahoma Bureau of Investigation are the investigative agencies.
Carl Thomas Spaeth. Attempted Coercion and Enticement of a Minor. From July 5 to July 10, 2019, Spaeth, 35, of Broken Arrow, is alleged to have persuaded and enticed an individual whom he believed to be a minor to engage in sexual activity. The Tulsa Police Department and FBI are the investigative agencies.
Jimmy Townsend. Possession of Methamphetamine With Intent to Distribute. Townsend, is charged with possessing with intent to distribute 500 grams or more of methamphetamine. The Tulsa Police Department, Drug Enforcement Administration, and U.S. Postal Inspection Service are the investigative agencies.
Lucas Shane Vann. Sexual Exploitation of a Child. Vann, 19, of Salina, is charged with knowingly enticing a minor to engage in sexually explicit conduct for the purpose of producing sexual images. The Delaware County Sheriff’s Office and FBI are the investigative agencies.
Brent Kenneth Whinery. Felon in Possession of Firearm and Ammunition. Whinery, 28, of Avant, is charged with being a felon in possession of a Rohn GMBH .22 caliber revolver and 90 rounds of ammunition. The Skiatook Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigative agencies.
Tulsa Man Who Fled from Smuggling Charge Pleads GuiltyRead the Press Release
A Tulsa man pleaded guilty Wednesday to smuggling ecstasy into the United States from a German supplier in December 2018, announced U.S. Attorney Trent Shores.
Jeremy Daniel Singer, 36, stated in a signed plea agreement that he placed an order for 3, 4-methylenedioxymethamphetamine, commonly known as “MDMA” or ecstasy, through an encrypted site on the “dark web” and had it shipped to his Tulsa home under a pseudonym. Singer stated that he planned to sell the ecstasy for profit. Customs and Border Protection officials intercepted the package containing the pills when it entered the United States. Undercover agents with Homeland Security Investigations, the Oklahoma Bureau of Narcotics, and the Tulsa County Sheriff’s Office later delivered the package to Singer’s home in Tulsa and arrested Singer when he signed for the package.
While on bond awaiting a hearing on state drug charges relating to the ecstasy shipment, Singer agreed to appear in federal court on March 12 on federal drug charges and the smuggling charge. Instead of appearing in court, Singer fled the state. Authorities searched for Singer for nearly a month, when, on April 9, authorities in Johnson County Wyoming attempted to stop Singer’s vehicle. Singer led them on an off-road chase before abandoning his vehicle and disappearing into nearby fields. He was found the next day and attempted to elude authorities on a bulldozer he had stolen, before he was finally arrested.
“The ‘dark web’ is a one-stop shop for goods and services not found in legitimate streams of commerce. Singer used the ‘dark web’ to illegally purchase and smuggle ecstasy into the United States,” said U.S. Attorney Shores. “As Mr. Singer now knows, our collaborative law enforcement network in northeastern Oklahoma is a highly effective partnership. We will enforce our nation’s drug laws to protect Oklahomans from Darknet purchases.”
U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Oklahoma Bureau of Narcotics, Tulsa County Sheriff’s Office, U.S. Marshals Service, U.S. Postal Inspection Service and U.S. Customs and Border Protection conducted the investigation. Assistant U.S. Attorney Thomas E. Duncombe is prosecuting the case.
Tulsa Man Charged with Two Bank RobberiesRead the Press Release
A federal grand jury indicted a man this week for two bank robberies during which he claimed he had a bomb and firearms, announced Trent Shores.
Thomas Lawrence Dean, 50, of Tulsa, is charged with two counts of bank robbery using a dangerous weapon, conveying false information on hoaxes, and being a felon in possession of a FIE Corp. TITAN TIGER BLU .38 Special Caliber Revolver and associated ammunition.
Dean allegedly robbed an International Bank of Commerce (IBC) on July 1, 2019, and an Arvest Bank on July 10, 2019. In the IBC robbery, he is alleged to have approached a teller and handed her a note demanding money. In the note, Dean indicated that he was in possession of a bomb and firearm. Later, at Arvest Bank, Dean also demanded money, indicating in a note that he had a firearm.
“Ensuring public safety is paramount for state and federal law enforcement. Robbing banks by threatening to use guns and bombs is going to draw our combined attention,” said U.S. Attorney Shores. “Perpetrators of violence and threatened violence will find themselves front and center in a court of law. The allegations in this case will be vigorously pursued.”
The Tulsa Police Department and FBI are the investigative agencies. Assistant U.S. Attorney Robert T. Raley is prosecuting the case. AUSA Raley is the National Security Anti-Terrorism (ATAC) Prosecutor for the U.S. Attorney’s Office in the Northern District of Oklahoma.
A return of an indictment is a method of informing a defendant of alleged federal crimes, which the government would need to prove beyond a reasonable doubt. Defendants are presumed innocent until proven guilty in a court of law.
Innocence Lost National Initiative and Operation Independence Day 2019Read the Press Release
The Department of Justice announced Tuesday the FBI-led recovery or identification of 103 child victims and the arrest of 67 sex traffickers through Operation Independence Day. This initiative — a revamping of a previously successful program — was executed during the month of July through 161 operations conducted nationwide.
Operation Independence Day relied on the 86 FBI-led Child Exploitation and Human Trafficking Task Forces (CEHTTFs), which leveraged the resources and intelligence of other federal, state, local, and tribal partners. Overall, more than 400 agencies participate in these task forces.
Operation Independence Day prioritized locating and rescuing missing minors who are at great risk for sexual exploitation, and arresting the traffickers exploiting them. To that end, through its partnership with the National Center for Missing and Exploited Children (NCMEC), FBI special agents and intelligence analysts reviewed information provided through NCMEC’s CyberTipline, to identify missing minor children at risk for sexual exploitation, and then worked with state and local partners to execute law enforcement activity designed to recover those children and arrest traffickers.
The health and welfare of recovered minor and adult trafficking victims was a further priority. To facilitate these efforts, the FBI’s Victim Services Division and victim specialists stationed in each of our 56 field offices also worked closely with the task forces during the operation to ensure recovered children received the help they needed. Victim specialists put internal and external resources in place before the operation to ensure victim assistance was a priority in the aftermath of the law enforcement operations.
“This initiative has two crucial goals: rescuing children being sold for sex and prosecuting their adult traffickers,” said Attorney General William P. Barr. “Child sex trafficking is a heinous crime that preys on the most vulnerable in our society. Perpetrators victimize children in communities throughout the country, and we are determined to find and rescue them. Through the FBI’s leadership, we have recovered thousands of child victims, and this latest operation adds to the success of that decades-long effort.”
“Make no mistake, the FBI is fiercely focused on recovering child victims and arresting the sex traffickers who exploit them,” said FBI Director Christopher Wray. “Through operations like this, the FBI helps child victims escape the abusive life of sex trafficking. Our agents, intelligence analysts, professional staff, and victim specialists work tirelessly before, during and after these operations to make sure that victims get the help they need to reclaim their lives.”
“The National Center for Missing & Exploited Children is proud to be part of this extraordinary partnership with the FBI. The FBI and the Department of Justice have been instrumental in spearheading multi-agency collaboration between organizations to locate and provide resources to victims of child sex trafficking,” said John Clark, President and CEO of NCMEC. “We know this horrendous crime impacts communities across our country every day and we applaud the FBI for continuing to work tirelessly to locate these victims and hold accountable those who are selling children for sex.”
As part of Operation Independence Day, the U.S. Attorney’s Office for the Northern District of Oklahoma and the FBI Oklahoma City Division announced charges against nine individuals in U.S. District Court.
“I have zero tolerance for child predators and will use every tool available to identify and prosecute them. They will feel the full weight of law. Child victims will be given a voice. Justice for these victims will be our constant pursuit,” said U.S. Attorney Trent Shores. “Operation Independence Day was a success because of the multi-jurisdictional partnerships who came together in common cause and mission. For that, I am grateful, and I know that children in northern Oklahoma are safer as a result.”
"The law enforcement actions taken by the FBI and our law enforcement partners, in support of Operation Independence Day, epitomizes our dedication to apprehending those who choose to engage in criminal activity that exploits innocent children," said Melissa Godbold, Special Agent in Charge of the FBI Oklahoma City Division. "The alleged actions exhibited by each of these subjects not only violate the law but have the potential to cause irreparable harm to the mental and physical well-being of their victims."
Individuals charged federally are as follows:
Christopher Cervantes, 48, of Skiatook: Attempted Coercion and Enticement of a Minor
Thomas Dustin Daughtry, 42, of Sperry: Sexual Exploitation of a Child, Possession of Child Pornography, and Coercion and Enticement.
Carnell Lovette Matthews, 43, of Tulsa: Attempted Coercion and Enticement of a Minor
Casey Adam Parker, 39, of Afton: Attempted Coercion and Enticement of a Minor
Jason Ray Smith, 40, of Sapulpa: Attempted Coercion and Enticement of a Minor
Carl Thomas Spaeth, 35, of Broken Arrow: Attempted Coercion and Enticement of a Minor
Lucas Shane Vann, 18, of Salina, Oklahoma: Sexual Exploitation of a Child
Corey Daniel Vessar, 30, of Skiatook, Attempted Coercion and Enticement of a Minor
Thomas Kyle Williams, 40, of Sand Springs: Attempted Coercion and Enticement of a Minor; Receipt of Child Pornography; Possession of Child Pornography
As part of the operation, the Tulsa County District Attorney’s Office has charged multiple other defendants for alleged sex crimes against children.
In June 2003, the FBI, in conjunction with the Justice Department Criminal Division’s Child Exploitation and Obscenity Section and NCMEC, launched the Innocence Lost National Initiative (ILNI). This combined effort was aimed at addressing the growing problem of domestic sex trafficking of children in the United States. In the years since its inception, the ILNI has expanded to 86 dedicated CEHTTFs. These task forces, with the U.S. Attorney’s Offices and the FBI’s Victim Services Division, have worked successfully to rescue thousands of children.
Through ILNI, the FBI, along with its local law enforcement partners, uses task forces to leverage resources and intelligence to identify and recover child victims and prosecute those responsible for their exploitation. This collaborative effort has led to the recovery or identification of more than 6,600 child victims. The initiative has also led to more than 2,750 convictions, including more than 15 life sentences and many other sentences ranging from 25 years to life.
In 2008, the ILNI initiated Operation Cross Country (OCC)—a focused, national campaign that targeted the venues where children were the victims of commercial sex trafficking. Since 2008, there have been 11 iterations of OCC, recovering more than 900 child victims and arresting nearly 1,400 traffickers. The last operation was held in October 2017 with 78 task forces participating.
The FBI determined that after 11 years of OCC success, it was time to re-evaluate the program. The newly renamed Operation Independence Day was conducted over an entire month, rather than a few days, but continued to focus on the recovery of child victims from commercial sex trafficking and pursuing those who exploit them.
The FBI’s Crimes Against Children and Human Trafficking Unit and DOJ coordinated the operation. For additional information on Operation Independence Day and the Innocence Lost initiative, please visit www.fbi.gov/oid2019.
Former Narcotics Supervisor Sentenced for Stealing Drug Evidence for his Personal UseRead the Press Release
A former narcotics supervisor from the Mayes County Sheriff’s Office was sentenced Friday for stealing methamphetamine that had been seized as evidence during multiple law enforcement investigations, announced U.S. Attorney Trent Shores.
U.S. District Judge Gregory K. Frizzell sentenced Brett Alan Mull, 48, of Pryor, to six months in federal prison followed by six months home detention for tampering with or destruction of evidence and for acquiring methamphetamine through deception. Following imprisonment, Mull will serve two years on supervised release. Mull pleaded guilty to the felony charges on April 3, 2019.
The defendant used his position as a supervisor of the Criminal Interdiction Unit to gain access to methamphetamine in order to support his addiction. In 2017, Mull began removing OSBI evidence submittal envelopes containing the illicit drug before the evidence was booked into the property room. On July 3, 2018, investigators discovered altered evidence submittal envelopes, drug paraphernalia, and methamphetamine during searches of Mull’s residence and workplace.
“There is a social contract between the public and the police that is built on mutual trust, respect and accountability. Brett Mull violated that contract, and for that, there must be consequences,” said U.S. Attorney Shores. “Mull fell into the clutches of addiction and then repeatedly broke the law. He altered evidence. He confiscated methamphetamine from suspects and then used that same meth to get high. Today, he faced the consequences for his actions. I am proud of the integrity of the entire prosecution team to bring these offenses to light and pursue justice.”
The FBI and investigators from Mayes County District Attorney Matt Ballard’s Office conducted the investigation. Assistant U.S. Attorney Ryan M. Roberts prosecuted the case.
Probation Officer Charged with Violating Civil Rights of Two Individuals He SupervisedRead the Press Release
U.S. Attorney Trent Shores today announced that a Probation and Parole Officer from the Oklahoma Department of Corrections was charged with civil rights violations against two individuals he supervised while they were on probation.
“No individual or group of individuals is above the law. I am committed to identifying and eradicating civil rights abuses by law enforcement and others,” said U.S. Attorney Trent Shores. “The defendant in this case was an Oklahoma Probation and Parole Officer. The civil rights violations he is alleged to have perpetrated upon two female victims are not only stomach churning, but an affront on our justice system.”
According to the Information, Steven Michael Powers, 35, of Broken Arrow, is charged with two counts of Deprivation of Rights Under Color of Law based on events that occurred on or between Nov. 3, 2015, and Jan. 19, 2017. In one incident, Powers allegedly forced his penis upon a victim’s mouth against her will. In a separate incident, he allegedly exposed himself to a second victim, touched her shoulder with his penis, and masturbating in front of her. In both incidents, it is alleged that Mr. Powers willfully deprived the two victims of liberty without due process of law, which includes the right to bodily integrity, a right secured and protected by the Constitution and laws of the United States.
"While in his capacity as an Oklahoma Probation and Parole Officer, Steven Powers' conduct was an abuse of the authority and trust bestowed upon him,” said Special Agent in Charge Melissa Godbold of the FBI Oklahoma City Division. “The civil rights violations in which Powers is alleged to have committed not only violate the Constitutional rights of his victims, but undermines the integrity of our judicial system. This investigation epitomizes the FBI’s commitment to addressing incidents in which an officer's actions betray the public’s trust."
US Attorney Shores commended the thorough investigation by the Federal Bureau of Investigation and Oklahoma Department of Corrections. He also noted the diligence and victim-oriented approach of Assistant United States Attorney Jarrod Leaman in bringing this prosecution.
“I cannot underscore enough the importance of the work done by these investigators and AUSA Leaman to curb civil rights abuses. To those who think they can violate and abuse the civil rights of others: this aggression will not stand. Our system will not tolerate your criminal transgressions.”
An Information is a formal accusation of criminal conduct, not evidence of guilt. The defendant is presumed innocent unless and until proven guilty.
The FBI and Oklahoma Department of Corrections conducted the investigation. Assistant U.S. Attorney Jarrod Leaman is prosecuting the case.
Methamphetamine Dealer Convicted for Drug Conspiracy and Firearms ViolationsRead the Press Release
Following a two-day trial in U.S. District Court, a jury convicted a Tulsa man of methamphetamine distribution and firearms violations, announced U.S. Attorney Trent Shores.
The jury found Veng Xiong, 32, guilty on Tuesday of conspiring to possess with intent to distribute and to distributing 500 grams or more of methamphetamine, possession of a rifle and a short-barreled shotgun in furtherance of a drug trafficking crime, and being a felon in possession of firearms.
“The jury has spoken, and Veng Xiong is guilty as charged. Veng, a felon with a history of drug dealing, was convicted of crimes associated with trafficking methamphetamine and firearms. I hope this federal conviction will get the message through to him that Oklahoma is not open for his business,” said U.S. Attorney Shores. “Sadly, meth continues to afflict far too many of our neighborhoods in Northern Oklahoma, due in no small part to dealers like Xiong. This just result is a direct reflection of excellent work of a multi-agency investigative team and two top-notch federal prosecutors, Ryan Roberts and Chris Nassar.”
During a methamphetamine trafficking investigation, Osage County Sheriff’s Deputies covertly set up a drug deal with an individual who agreed to sell thirty-three pounds of methamphetamine for $500,000.
The United States presented evidence that showed the individual entered into a conspiracy with Veng Xiong, who had been referred to him by associates as a known drug dealer. Upon their initial meeting, Xiong showed the co-conspirator a large amount of methamphetamine and four firearms. Xiong then provided the co-conspirator with two of the firearms to carry during the drug deal.
On April 9, 2018, the parties met at a predesignated location in rural Osage County in order to exchange the methamphetamine for cash. Xiong, along with three co-conspirators, arrived in two separate vehicles. At that time, the Osage County and Osage Nation Joint Tactical Response Team conducted a takedown and arrested the four suspects, including Xiong. Upon search of the vehicles, deputies found multiple firearms, including a Glock .40 caliber semi-automatic pistol, a Taurus .38 caliber special revolver, a Winchester 12 gauge shotgun with a sawed-off barrel, and a WASR-10, which is an AK-47 style 7.62x39mm semi-automatic rifle. Both the rifle and the shotgun were found in Xiong’s vehicle. Deputies discovered the handguns and more than five pounds of methamphetamine in the other car.
Xiong was also convicted on two previous occasions in Tulsa County District Court for trafficking in illegal drugs as well as convictions for possessing a firearm while in commission of a felony and for driving under the influence of alcohol.
The Osage County Sheriff’s Office; Osage Nation Tribal Police; FBI; Pawhuska Police Department; Bureau of Alcohol, Tobacco, Firearms and Explosives; and Oklahoma Bureau of Narcotics investigated the case. Assistant U.S. Attorneys Christopher J. Nassar and Ryan M. Roberts prosecuted the case.
Tulsa Man Pleads Guilty to Stealing More than $420,000 from his EmployerRead the Press Release
A former American Parking employee pleaded guilty in U.S. District Court Wednesday to bank fraud.
Jerry Albert Wiley, 70, of Tulsa, admitted to defrauding BancFirst and his employer American Parking of $426,220.32 from January to April 2018. U.S. District Judge Clair V. Eagan accepted the plea and set sentencing for Oct. 23.
“The U.S. Attorney’s Office is dedicated to protecting the integrity of the marketplace by prosecuting white collar criminals like Mr. Wiley,” said U.S. Attorney Trent Shores. “Like in so many financial crimes, Mr. Wiley took advantage of the trust placed in him, resulting in American Parking losing more than $420,000. There is never justification to steal from an employer, and perpetrators who act otherwise will find themselves face-to-face with a federal prosecutor.”
In his position as controller at American Parking, Wiley directed authorized funds transfers related to business expenses from the company’s corporate checking account at BancFirst. Starting Jan. 5, 2018, Wiley knowingly abused his position by transferring funds from American Parking’s accounts at BancFirst to accounts owned and controlled by one of Wiley’s acquaintances. The defendant contends he lost the funds after sharing them with an online acquaintance to pursue a personal investment opportunity. The Information contains a forfeiture allegation by which the United States seeks a money judgment of at least $426,220.
The FBI conducted the investigation; Assistant U.S. Attorney Richard M. Cella is prosecuting the case.
Three Sentenced for Crimes Associated with Mail TheftRead the Press Release
TULSA, Okla. – Three individuals were sentenced this week in U.S. District Court for crimes associated with stealing money, gift cards and credit cards from the mail, announced U.S. Attorney Trent Shores.
“The mail is regarded as sacred. It’s personal. Unfortunately, unscrupulous thieves see the mail as a source of income. They steal credit cards, checks, and personal financial information from mailboxes and then proceed to plunder individual bank accounts and cheat merchants,” said U.S. Attorney Trent Shores. “The impact on individual victims can be devastating, costing countless hours of backtracking on fraudulent spending and fixing personal credit. Vigilance is key to thwarting these criminals. So are enforcement and accountability. When you see someone raiding a neighbor’s mailbox or notice suspicious activity in your financial accounts, immediately make a report to the U.S. Postal Inspection Service at 918-732-6616 as well as local law enforcement. The criminals investigated will be vigorously prosecuted by this U.S. Attorney’s Office.”
Christopher Jacob Froehlich, 33, of Salisaw, was sentenced to two years in federal prison for aggravated identity theft. Froehlich purchased items using a stolen credit card, therefore assuming the owner’s identity. Following his prison sentence, he will serve one year on supervised release. Froehlich was arrested on Nov. 30, 2018 after Broken Arrow police officers attempted to initiate a traffic stop. Instead of stopping, Froehlich accelerated and led officers on a 17-minute pursuit, running stoplights at major intersections and reaching speeds of 90 mph. The driver and two passengers also threw multiple items from the car until they crashed into a fire hydrant. Upon their arrest and subsequent investigation, officers discovered several grams of methamphetamine and a Walmart receipt totaling $1,058.29 on Froehlich’s person. The corporate credit card, previously stolen from a mailbox, was used to purchase the items at Walmart just before the traffic stop. Froehlich admitted to stealing checks and credit cards from mailboxes over a 30-day period and fraudulently utilizing the credit card.
The United States Secret Service and Broken Arrow Police Department conducted the investigation. Assistant U.S. Attorney Richard M. Cella prosecuted the case.
Cory Blake Ackley and Jennifer Kathryn Steffen were sentenced this week for possession of stolen mail as well as a revocation of supervised released in a previous mail theft case from 2016. Ackley, 29, of Tulsa, was sentenced to a total of 17 months in federal prison to be followed by three years of supervised release. Steffen, 35, of Tulsa, was sentenced to a total of 33 months in federal prison to be followed by three years of supervised release. On Dec. 27, 2018, Tulsa Police Department officers initiated a traffic stop after observing Ackley and Steffen stealing mail from multiple residential mailboxes in South Tulsa. After searching the vehicle, officers found 391 pieces of unopened mail that originated from 51 separate addresses and included billing statements, credit card applications, gift cards, financial and bank statements, insurance and tax information, Amazon packages and other documents. Ackley and Steffen have multiple convictions related to stealing mail.
The Tulsa Police Department and the U.S. Postal Inspection Service conducted the investigation. Assistant U.S. Attorney Charles M. McLoughlin prosecuted the case.
Protecting yourself from mail theft and related crimes:
- Never put outgoing mail in your residential mailbox for pick up.
- Promptly remove incoming mail from your residential mailbox.
- Rent a post office box.
- Consider purchasing a locking residential mailbox.
- Don’t send cash in the mail.
- File a change of address if you move.
- Have packages held at the post office for pick up.
- Have the recipient sign for important mailed items.
- Deposit outgoing mail in collection locations inside the post office.
Report mail fraud, mail theft, and identity theft to the U.S. Postal Inspection service at https://www.uspis.gov/report/.
Federal Grand Jury Criminal Indictments AnnouncedRead the Press Release
TULSA, Okla. – United States Attorney Trent Shores announced today the results of the July 2019 Federal Grand Jury B.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Miguel Angel Benitez. Unlawful Reentry of Removed Alien. Benitez, 51, of Tulsa, is charged with reentry of a removed alien, having returned to the United States unlawfully after being deported Aug. 13, 2010, at Del Rio, Texas. U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) and ICE- Enforcement and Removal Operations (ICE- ERO) are the investigative agencies.
Ricardo Bra-Torres and Jamie Lee Hughes. Methamphetamine with Intent to Distribute; Interstate Travel in Aid of Racketeering. Bra-Torres, 30, and Hughes, 33, both of Tulsa, are charged with possessing with intent to distribute 500 grams or more of methamphetamine. They are also charged with traveling from Oklahoma to Texas while possessing methamphetamine with intent to distribute and with distributing the drug. The Tulsa Police Department and Drug Enforcement Administration are the investigative agencies
Christopher Michael Cervantes. Attempted Coercion and Enticement of a Minor. Cervantes, 48, of Sperry, is charged with using the internet to attempt to coerce and entice a minor to engage in criminal sexual activity. The Tulsa Police Department and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations are the investigative agencies..
Levi Owen Handle. Fugitive in Possession of Firearms and Ammunition. Handle, 30, of Gravette, Arkansas, is charged with being a fugitive from justice and possessing a Mossberg 12-guage shotgun, a Ruger .22 caliber pistol, and ammunition. The Delaware County Sheriff’s Office and Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigative agencies.
Tyler Aaron Holmes. Felon in Possession of Firearm and Ammunition; Possession of Methamphetamine With Intent to Distribute; Possession of Firearm in Furtherance of a Drug Trafficking Crime. Holmes, 21, of Miami, is charged with being a felon in possession of a Sturm, Ruger & Co., Inc., .357 Magnum caliber revolver and associated ammunition. He is further charged with possession with intent to distribute methamphetamine and with possessing the .357 Magnum in furtherance of a drug trafficking crime. The Oklahoma Bureau of Narcotics and Dangerous Drugs; Delaware County Sheriff’s Office, Delaware County District Attorney’s Office, Drug Enforcement Administration and Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigative Agencies.
Jimmy Gene Kelly, Jr. Felon in Possession of Firearm. Kelly, Jr., 49, of Miami, is charged with being a felon in possession of a Savage 12-guage shotgun after having previously been convicted in federal court of second degree murder in 1992. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and U.S. Marshals Service are the investigative agencies.
Patricia Lee Kendall and Peggy Lee Larue. Concealment of Government Property (Two Counts). Kendall, 66, and Larue, 63, both of Sapulpa, are charged with aiding and abetting each other to illegally take and conceal government property in the form of money from the Social Security Administration in the aggregate value of $224,237 in Social Security income. They are also charged with aiding and abetting each other to illegally take and conceal government property in the form of money from the Department of Defense Military Retirement Fund in the aggregate value of $129,765 in military retirement funds. The Social Security Administration- Office of Inspector General and Department of Defense Criminal Investigative Service are the investigative agencies.
Johnny Xavier Mendez. Failure to Register as a Sex Offender. Mendez, 42, of Tulsa, is charged with failure to register as a sex offender. He allegedly did not register nor update his registration when he moved to Oklahoma in February 2015. The Tulsa Police Department and U.S. Marshals Service are the investigative agencies.
Alexander Payne. Drug Conspiracy. Payne, age unavailable, of Hemet, California, is charged with conspiring with others to possess with intent to distribute 500 grams or more of methamphetamine and with distributing 500 grams or more of methamphetamine. The Tulsa Police Department and Drug Enforcement Administration are the investigative agencies.
Rogelio Hernandez Rodriguez. Sexual Exploitation of a Child; Possession of Child Pornography. Rodriguez, 30, of Wagoner, is charged with sexually exploiting a child and inducing the minor to engage in sexually explicit conduct for the purpose of producing visual depictions of the conduct. Rodriguez is further charged with knowingly possessing and accessing with intent to view child pornography in one or more graphic image files and video files. The sexually graphic images were stored on hard drives and multiple SD cards and allegedly involved the use of at least one prepubescent minor and a minor that had not attained 12 years of age. The Wagoner Police Department and FBI are the investigative agencies.
Deandre Marcel Simon. Felon in Possession of Firearms. Simon, 28, of Tulsa, is charged with being a felon in possession of a Forjas Taurus S.A. .25 ACP caliber semi-automatic pistol and associated ammunition. The Tulsa Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigative agencies.
David Jason Thomas. Felon in Possession of Firearm and Ammunition. Thomas, 46, of Vinita, is charged with being a felon in possession of a Glock, 9 x 19 caliber pistol and ammunition. The Delaware County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigative agencies.
Corey Daniel Vessar. Attempted Coercion and Enticement of a Minor. Vessar, 30, of Skiatook, is charged with using the internet to attempt to coerce and entice a minor to engage in criminal sexual activity. The Tulsa Police Department and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations are the investigative agencies.
Thomas Kyle Williams. Attempted Coercion and Enticement of a Minor; Receipt of Child Pornography; Possession of Child Pornography. Williams, 40, of Sand Springs, is charged with knowingly attempting to persuade a minor to engage in sexual activity. He is further charged with knowingly receiving child pornography and is also charged with possessing child pornography on one or more image files and video files. The Tulsa Police Department and FBI are the investigative agencies.
Shelvon Williams. Felon in Possession of a Firearm and Ammunition. Williams, 25, of Tulsa, is charged with being a felon in possession of Glock 21 pistol and ammunition. The Tulsa Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigative agencies.
Department of Justice Enables Direct Tribal Access to FBI National Sex Offender RegistryRead the Press Release
The U.S. Department of Justice announced today a new tool giving tribal governments the ability to directly input data and gain access to the FBI’s National Sex Offender Registry (NSOR) using the Tribe and Territory Sex Offender Registry System (TTSORS). U.S. Attorney Trent Shores of the Northern District of Oklahoma applauded the decision, which provides a critical tool to combat sexual violence in Indian country. The system connection will be available to all tribal governments already participating in the Tribal Access Program (TAP), which allows information sharing between tribal and federal government criminal information systems.
TTSORS is a no-cost registry system provided by the Justice Department’s Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking (SMART). The Department’s Office of the Chief Information Officer (OCIO) developed the connections which allows tribes to seamlessly submit new and updated sex offender information directly from TTSORS to NSOR.
“The Department of Justice is dedicated to addressing the public safety crisis in American Indian and Alaska Native communities, including the high rates of sexual violence against women and children,” said Attorney General William P. Barr. “Providing a direct connection to the FBI National Sex Offender Registry gives tribal law enforcement the information they need to investigate and prevent these heinous offenses.”
U.S. Attorney Trent Shores, Chair of the Attorney General’s Advisory Subcommittee on Native American Issues (NAIS) and citizen of the Choctaw Nation stated, “Access to information, especially sex offender registries, is essential to keeping tribal communities safe. Indian country is not a safe haven of anonymity for sex offenders. Tribal governments - like their state and local counterparts - should know when sex offenders have moved into their community. I applaud Attorney General Barr’s continued focus on improving public safety in Indian country.”
American Indian and Alaska Native people suffer persistently high rates of victimization, including from sexual assault. According to a 2016 study funded by the National Institute of Justice, more than four in five American Indian and Alaska Native adults have experienced some form of violence in their lifetime, and more than half of all American Indian and Alaska Native women have experienced violence from an intimate partner. In June, the department extended a deadline for tribes to apply for up to $167 million in federal funds through August 16, 2019, to support crime victims throughout Indian country.
“The direct connection between the National Sex Offender Registry and Tribe and Territory Sex Offender Registry System provides increased resources for identifying, tracking, and sharing information about persons convicted of committing these crimes,” said Gwendena L. Gatewood, Chairwoman of the White Mountain Apache Tribe of the Fort Apache Indian Reservation. “It will also allow for further improvements in providing a safer community for all involved to integrate tribal law, custom, tradition and practices in a comprehensive fashion consistent with holding offenders accountable.”
“Standing Rock has always had a priority of ensuring public safety,” said Mike Faith, Chairman of the Standing Rock Sioux Tribe. “Technological advances to our systems ensure that our SORNA staff are able to input offender information and get back in the field while ensuring compliance is maintained.”
The Sex Offender Registration and Notification Act, Title I of the Adam Walsh Child Protection and Safety Act of 2006, requires that, when an offender initially registers or updates his or her information in a jurisdiction, that the state, tribe, territory or District of Columbia must submit immediately the information to NSOR as well as other jurisdictions where the offender has to register. TTSORS is a fully functioning registry system that complies with SORNA requirements. TTSORS was created to assist the Indian tribes that have elected to implement SORNA.
Since 2015, the SMART Office, OCIO, the FBI, the Office of Tribal Justice, Community Oriented Policing Services and the Office for Victims of Crime, have worked together to develop the Tribal Access Program to provide tribes direct access to national crime information systems for both criminal and non-criminal justice purposes. This includes the ability to directly enter NSOR data and enhance the capacity to collect and submit fingerprints and palm prints to the FBI. TAP has been instrumental in assisting tribes with ongoing implementation of SORNA. In fiscal year 2019, the department expanded TAP to 25 more tribes, for a total of 72 participating tribes.
Tulsa Software Developer Pleads Guilty to Payroll Tax FraudRead the Press Release
A computer software development company owner pleaded guilty Monday to failing to account for and pay over employment taxes withheld from his employees’ wages announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney R. Trent Shores for the Northern District of Oklahoma.
According to documents and information provided to the Court, as the owner and operator of Tulsa-based Zealcon Corporation, Earenest J. Grayson Jr. was responsible for withholding, accounting for and paying over to the Internal Revenue Service (IRS) payroll taxes and withholdings due on the wages paid to Zealcon employees. For the period, January 2014 through June of 2016. Grayson intentionally caused a total tax loss of more than $1 million by intentionally not paying to the IRS income, Social Security and Medicare taxes withheld from Zealcon employees’ wages and Social Security and Medicare taxes due from Zealcon on those wages.
“Failing to account for or pay payroll taxes is not acceptable.” said Principal Deputy Attorney General Zuckerman of the Justice Department’s Tax Division. “The Department of Justice, working with the IRS, will ensure that our tax system is fairly enforced throughout the country.”
“Earenest Grayson is a dishonest employer who cheated both his employees and the United States government of more than $1 million in stolen payroll taxes. Some of those taxes were payments for the Social Security and Medicare coverage of the employees,” said U.S. Attorney Trent Shores. “I hope Mr. Grayson’s potential prison sentence will dissuade other business owners from trying to cheat the system. Millions of honest small businesses pay their fair share of taxes to finance government operations as well as Social Security and Medicare for the elderly. Unfortunately, Mr. Grayson’s choice not to do so has subjected him to criminal penalties.”
United States District Court Judge Claire V. Eagan scheduled Grayson’s sentencing for Oct. 3, 2019.
The case was investigated by special agents of IRS-Criminal Investigation. Assistant Chief Andrew Kameros of the Tax Division and Assistant U.S. Attorneys Victor A.S. Régal and Charles M. McLoughlin are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Tulsa Man Sentenced for Six Armed Robberies as Part of Project Safe Neighborhoods ProsecutionRead the Press Release
United States Attorney Trent Shores announced that Treveon Montrell Vaughn, 27, of Tulsa, was sentenced in U.S. District Court for obstructing commerce by robbery and to brandishing a firearm during six different robberies at local donut and Dollar General stores.
Chief U.S. District Judge John E. Dowdell sentenced Vaughn to 319 months in federal prison and further ordered him to pay restitution to the businesses in the amount of $60,000.
“Treveon Vaughn was a gun-toting serial armed robber whose crime spree was brought to an end by dedicated police work and diligent prosecution. Vaughn also admitted to influencing juveniles to participate in his criminal transgressions. Alpha Criminals like Vaughn are exactly who Project Safe Neighborhoods was designed to identify and hold accountable,” said U.S. Attorney Trent Shores “No longer will Vaughn be able to corrupt youths in our community nor violently rob our local businesses.”
Vaughn committed six armed robberies between June 24, 2018, and August 17, 2018, and at one point committed three robberies in one day. In each of the robberies, Vaughn wore a mask and brandished a firearm, threatening store employees and stealing cash from registers. Vaughn’s crime spree ended when Tulsa police officers were called to the scene of a robbery in progress at a Dollar General store on August 17, 2018, and Vaughn became trapped inside the store. At one point during the resulting stand-off with officers, the defendant started a small fire, trying to destroy evidence. He eventually surrendered and was taken into custody. He eventually admitted to influencing and leading a group of juveniles into his criminal activity, stating they would do anything for money.
The Tulsa Police Department and the FBI conducted the investigation. Assistant U.S. Attorney Ryan Roberts prosecuted the case.
This prosecution is a result of the Project Safe Neighborhoods (PSN) initiative. PSN was reinvigorated in 2017 as part of the Justice Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership the local community and with federal, state, local and tribal law enforcement to develop effective, locally-based strategies to reduce violent crime.
Mexican Citizen Pleads Guilty to Firearms and Illegal Re-entry ChargesRead the Press Release
A Mexican citizen unlawfully living in Tulsa pleaded guilty Tuesday to being an alien unlawfully in the United States in possession of a firearm and ammunition and to reentry of a removed alien, announced U.S. Attorney Trent Shores.
Edgar Raul Sanchez-Miranda, 42, also known as Raul Sanchez-Sanchez, was convicted of being an alien unlawfully in the United States in possession of a Lorcin .380 caliber semi-automatic pistol and associated ammunition. Sanchez-Miranda returned to the United States unlawfully after being deported on May 7, 2016, at or near Laredo, Texas. The Tulsa Police Department- Special Investigations Division arrested Sanchez-Miranda on April 1, 2019, after an extensive investigation of methamphetamine trafficking that involved the use of court ordered tracking devices and a search warrant. He later pleaded guilty in Tulsa County District Court for possession of a controlled drug with intent to distribute and for maintaining a place for keeping/selling controlled drugs.
"Sanchez-Miranda wasn’t “just” an illegal alien living in our country, he was an illegal alien who had been previously deported and snuck back into the United States to deal drugs on our streets. He also armed himself with a semi-automatic gun to protect his house that he used for dealing drugs,” said U.S. Attorney Trent Shores. “Sanchez-Miranda is the poster boy for cooperation between the Tulsa County Sheriff’s Office and ICE. Specially trained Tulsa County detention officers at the David L. Moss Detention Center were able to promptly identify Sanchez-Miranda as an alien who had illegally re-entered the United States. That quick identification directly led to the Alien Unlawfully in the United States in Possession of a Firearm charge.”
Chief U.S. District Judge John E. Dowdell accepted the plea and set sentencing for Oct. 9, 2019.
The Tulsa Police Department, Tulsa County Sheriff’s Office, Department of Homeland Security’s Immigration and Customs Enforcement, and Department of Justice’s Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney Charles M. McLoughlin is prosecuting the case.
Tulsa Man Pleads Guilty to Payroll Tax FraudRead the Press Release
A computer software development company owner pleaded guilty today to failing to account for and pay over employment taxes withheld from his employees’ wages announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney R. Trent Shores for the Northern District of Oklahoma.
According to documents and information provided to the Court, as the owner and operator of Tulsa-based Zealcon Corporation, Earenest J. Grayson Jr. was responsible for withholding, accounting for and paying over to the Internal Revenue Service (IRS) payroll taxes and withholdings due on the wages paid to Zealcon employees. For the period, January 2014 through June of 2016, Grayson intentionally caused a total tax loss of more than $1 million by intentionally not paying to the IRS income and social security taxes withheld from Zealcon employees’ wages and social security taxes due from Zealcon on those wages.
“Failing to account for or pay payroll taxes is not acceptable,” said Principal Deputy Assistant Attorney General Zuckerman of the Justice Department’s Tax Division. “The Department of Justice, working with the IRS, will ensure that our tax system is fairly enforced throughout the country.”
“Earenest Grayson is a dishonest employer who cheated both his employees and the United States government of more than $1,000,000 in stolen payroll taxes. Some of those taxes were payments for the Social Security and Medicare coverage of the employees,” said U.S. Attorney Trent Shores. “I hope Mr. Grayson’s potential prison sentence will dissuade other business owners from trying to cheat the system. Millions of honest small businesses pay their fair share of taxes to finance government operations as well as Social Security and Medicare for the elderly. Unfortunately, Mr. Grayson’s choice not to do so has subjected him to criminal penalties.”
United States District Court Judge Claire V. Eagan scheduled Grayson’s sentencing for Oct. 3, 2019.
The case was investigated by special agents of IRS-Criminal Investigation. Assistant Chief Andrew Kameros of the Tax Division and Assistant U.S. Attorneys Victor Régal and Charles McLoughlin are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
New York Doctor Will Pay Nearly $130,000 for Allegedly Engaging in an Illegal Kickback SchemeRead the Press Release
A New York doctor has agreed to pay the government $127,072.34 for allegedly accepting illegal kickback payments from OK Compounding, L.L.C., announced U.S. Attorney Trent Shores.
The U.S. Attorney’s Office in the Northern District of Oklahoma entered into a settlement agreement with George Lehner, 46, a medical doctor, in an effort to recoup the costs to the U.S. government resulting from the illegal kickbacks. This civil settlement resulted from an investigation into numerous health care providers writing prescriptions for pain creams compounded and sold by OK Compounding in return for kickback payments.
“OK Compounding was an epicenter of criminal and civil healthcare fraud in northeastern Oklahoma. Another week, another physician being held accountable. My team won’t rest until they’ve rooted out the corruption,” said U.S. Attorney Trent Shores.
Beginning in 2014 and continuing into 2015, Dr. Lehner prescribed compounded pain creams for his patients, facilitating the sale and distribution of the creams. As compensation for his services, OK Compounding paid Dr. Lehner what was characterized by the parties as “medical director fees” based upon an hourly rate. However, the payments Dr. Lehner received from the company were, in actuality, “kickbacks.” Because Dr. Lehner’s patients were insured with Medicare, a federal health insurance program for people over 65 years of age and for certain younger individuals with some disability status, the kickbacks were in violation of the False Claims Act. It is illegal to pay or receive “kickbacks” in conjunction with federal health care insurance.
Prohibitions against kickbacks are crucial to insure that financial motives do not undermine the medical judgment of physicians and other health care providers. The civil False Claims Act is an important tool used to protect the integrity of taxpayer-funded health care programs.
The settlement resolves allegations that Dr. Lehner had an illegal financial relationship with OK Compounding, concerning pain creams from April of 2014 through March of 2015.
Affirmative Civil Enforcement (ACE) refers to filing civil lawsuits on behalf of the United States. The purpose of these civil actions is to recover government money lost to fraud or other misconduct or to impose penalties for violations of Federal health, safety, civil rights or environmental laws.
To report fraud and abuse against the Federal government in the Northern District of Oklahoma, please contact the U.S. Attorney’s Office at 918-382-2700 and speak to a member of the ACE Unit.
This settlement was the result of a coordinated effort by Assistant U.S. Attorney Marianne Hardcastle for the Northern District of Oklahoma; the Defense Criminal Investigative Service; Department of Labor– Office of Inspector General (OIG), IRS– Criminal Investigation Division; U.S. Postal Service– OIG; FBI; Department of Veterans Affairs– OIG and the Department of Health and Human Services– OIG.
The claims resolved by the settlement are allegations only; there has been no determination of liability.
Denver Man Pleads Guilty for Making Violent Threats Against Locations in Tulsa and PryorRead the Press Release
A Denver man pleaded guilty Wednesday to making multiple threats of violence against county, federal and Shriners employees in northeastern Oklahoma from April 24, 2017 to Aug. 8, 2017, announced U.S. Attorney Trent Shores.
Jose Rawdon Trujillo, 44, of Denver, Colorado, pleaded guilty to interstate communication of a threat and to making threats to injure by means of explosives. U.S. District Judge Gregory K. Frizzell accepted the plea and set sentencing for Oct. 4, 2019.
“Whether through the use of a cell phone or social media, spewing violent and terroristic threats has real world consequences. Mr. Trujillo learned this the hard way. He made nine threats of violence to individuals and organizations in northern Oklahoma. He threatened to ‘blow the Sheriff’s Office up like 9/11’ and to cut Akdar Shrine employees from ‘ear to ear,’” said U.S. Attorney Trent Shores. “Protecting our communities in northeastern Oklahoma is my highest priority. If you make violent or terroristic threats on social media, then we will take you at your word and prosecute accordingly. I encourage victims who have been violently threatened or cyberstalked via social media to report these crimes to law enforcement before there is an escalation to physical violence.”
Trujillo pleaded guilty to nine counts according to court documents.
Count One: April 24, 2017. Interstate Communication of a Threat. Communicating threats by cell phone to blow up the Tulsa County Sheriff’s Office (TCSO) and to cut the throats and heads off any officer who came to him.
Count Two: April 24, 2017. Threatening to Injure by Means of Explosive. By cell phone, threatened to kill, injure and intimidate individuals employed by the TCSO and to destroy their building by means of explosives.
Count Three: May 3, 2017. Threatening to Injure by Means of Explosive. By cell phone, threatened to kill, injure, and intimidate an employee of the U.S. Marshals Service and to destroy the federal courthouse in Tulsa by means of explosives.
Count Four: June 21, 2017. Threatening to Injure by Means of Explosive. By cell phone, threatened to kill, injure, and intimidate employees at the Akdar Shrine office building in Tulsa and destroy their building by means of explosives.
Count Five: June 21, 2017. Interstate Communication of a Threat. Used social media to threaten Akdar Shrine employees by stating he might cut them from “ear to ear” and “gut” them.
Count Six: June 27, 2017. Threatening to Injure by Means of Explosive. By cell phone, threatened to kill, injure, and intimidate employees of the U.S. Court Clerk’s Office and destroy the federal courthouse in Tulsa by means of explosives.
Count Seven: July, 10, 2017. Threatening to Injure by Means of Explosive. By cell phone, threatened to kill, injure, and intimidate employees of the Mayes County Sheriff’s Office and to destroy their building in Pryor by means of explosives.
Count Eight: Aug. 3, 2017. Interstate Communication of a Threat. Communicating a threat using a cell phone to kill a TCSO employee and his or her family.
Count Nine: Aug. 8, 2017. Threatening to Injure by Means of Explosive. By cell phone, threatened to kill, injure, and intimidate employees of the TCSO and destroy their building by means of explosives.
In August 2017, an arrest warrant was issued for Trujillo, and law enforcement was alerted to be on the look-out for the suspect. On Aug. 21, 2017, an Oklahoma Highway Patrol Trooper stopped Trujillo traveling eastbound on Interstate 44. At that time, Trujillo was taken into custody.
The FBI conducted the investigation. Assistant U.S. Attorney Allen J. Litchfield is prosecuting the case. AUSA Litchfield is the Chief of the Criminal Division at the U.S. Attorney’s Office in the Northern District of Oklahoma.
Tulsa Man Sentenced to 33 Years in Prison for Multiple Armed RobberiesRead the Press Release
TULSA, Okla. – A man convicted of three armed robberies in Tulsa was sentenced Tuesday for his crimes, announced U.S. Attorney Trent Shores. In March 2019, a jury found Melvin Louis Bailey, 26, of Tulsa guilty of obstructing commerce by robbery; carrying, using and brandishing a firearm during a crime of violence; and Hobbs Act conspiracy.
U.S. District Judge Gregory K. Frizzell sentenced Bailey to 33 years in federal prison to be followed by five years of supervised release. The Court denied Bailey’s request for downward variance and further ordered the defendant to pay $7,968 in restitution for his crimes.
“Melvin Bailey committed so many armed robberies in Tulsa and Texas that he lost count of the total number of offenses. His armed robbery crime spree has earned him 33 years in federal prison,” said U.S. Attorney Trent Shores. “The Tulsa Police Department and the Federal Bureau of Investigation joined with Assistant U.S. Attorneys Dennis Fries and Ryan Roberts to form a formidable investigative and prosecution team. This is justice achieved through another Project Safe Neighborhoods prosecution.”
From April 2015 to January 2018, the defendant committed three separate armed robberies of two Walgreens’ locations in Tulsa. During the crimes, Bailey brandished a shotgun or handgun to intimidate Walgreens’ employees. In January 2018, he also conspired with a juvenile to rob the pharmacy. As part of the conspiracy, Bailey provided a mask and firearm to the juvenile, and the two discussed strategy to commit the crime. Afterward, he and his co-conspirator met at Bailey’s apartment and divided the stolen money. Beyond his conviction in the Northern District of Oklahoma, Bailey has been named as a suspect in numerous other armed robberies.
Bailey remains in the custody of the U.S. Marshals Service pending transfer to a U.S. Bureau of Prisons facility.
The Tulsa Police Department and FBI conducted the investigation. Assistant U.S. Attorneys Dennis A. Fries and Ryan M. Roberts prosecuted the case.
Project Safe Neighborhoods is the nationwide federal initiative to disrupt gun violence strategically and comprehensively, using all available enforcement and prosecutive tools. The initiative involves a partnership of federal, state, and local authorities, uniting their efforts and leveraging existing and new resources. The U.S. Attorney’s Office and its partners tailor their efforts to meet their own district’s unique needs, helping ensure the safety of communities in the Northern District of Oklahoma.
Track Coach Sentenced for Assaulting Student AthleteRead the Press Release
A former private track coach was sentenced Monday to federal prison for transporting a minor with intent to engage in criminal sexual activity during a 2017 college visit in Tulsa, announced U.S. Attorney Trent Shores.
U.S. District Judge Claire V. Eagan sentenced Kerry Sloan, 56, of Harker Heights, Texas to 180 months in prison. He will serve 10 years on supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to minors. Sloan will also be ordered to register as a sex offender.
“Young athletes look to their adult coaches not only for athletic instruction, but also for life advice as mentors. Today, former track coach Kerry Sloan was sentenced to 180 months in federal prison because he exploited that special coach-athlete relationship for his sexual gratification,” said U.S. Attorney Trent Shores. “It takes tremendous courage for victims to come forward to report these crimes. This young lady not only spoke up for herself but she also gave a voice to the past victims who were discovered during the investigation. I am extremely proud of her tenacity and strength.”
During his plea hearing, Sloan admitted that while he had told the teenage minor victim that he was driving her from Texas to Tulsa for meetings with college coaches, his true intent was to sexually assault her. He also admitted to ultimately sexually assaulting the victim during the car ride and raping her at a Tulsa hotel. After these incidents, Sloan then began driving the victim back to Texas but would not let her out of his car. The victim was eventually able to contact her family, who called 911. Pittsburg County Sheriff's Deputies stopped the vehicle and rescued the victim. During the ensuing investigation, victims dating back to 1990 came forward to report similar incidents involving Sloan while he was serving in the U.S. Army.
Sloan was remanded into the custody of the U.S. Marshals until transfer to a U.S. Bureau of Prisons facility.
The Tulsa Police Department, Immigration and Customs Enforcement’s Homeland Security Investigations, Army Criminal Investigation Division, Pittsburg County Sheriff’s Office, and Killeen Police Department conducted the investigation. Assistant U.S. Attorney Christopher J. Nassar prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Mexican National Pleads Guilty to Drug and Gun ChargesRead the Press Release
A 29-year-old Mexican national, arrested as part of an operation led by the Justice Department’s Organized Crime Drug Enforcement Task Force (OCDETF), pleaded guilty Monday to possession with attempt to distribute methamphetamine and to possession of firearms in furtherance of drug trafficking crimes, announced U.S. Attorney Trent Shores.
During Monday’s plea hearing, Jesus Ponce Dominguez admitted to possessing with intent to distribute 500 grams or more of methamphetamine. He also admitted to possessing 12 firearms that he used while trafficking the drug in Tulsa. In total, Dominguez possessed a combination of seven pistols, one shotgun and four rifles. Dominguez was arrested in December 2018 after it was discovered that he was distributing methamphetamine transported from Mexico into the Northern District of Oklahoma. Investigators later discovered 17 pounds of methamphetamine, two pounds of heroin, and multiple firearms at an apartment and storage unit Dominguez rented in Tulsa.
“The United States must disrupt the flow of drugs over the border from Mexico and dismantle the organizations trafficking them,” said U.S. Attorney Trent Shores. “Heroin and methamphetamine are modern day plagues on society. Shame on Mr. Dominguez for profiting off of other people’s addictions.”
U.S. District Judge Gregory K. Frizzell accepted Dominguez’s plea and set sentencing for Oct. 1, 2019.
The Tulsa Police Department, Drug Enforcement Administration and Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigative agencies. Assistant U.S. Attorney Thomas E. Duncombe is prosecuting the case.
The OCDETF Program was established in 1982 as a multi-agency, nationwide effort to pursue comprehensive, intelligence-driven, multi-jurisdictional investigations of major criminal organizations trafficking drugs and laundering the illicit proceeds. The OCDETF Program forms the centerpiece of the Justice Department’s counternarcotics strategy, and uses prosecutor-led, multi-agency task forces to combat drug cartels.
Three Marketers Plead Guilty to Violations of Federal Anti-Kickback StatutesRead the Press Release
Three marketers have pleaded guilty in U.S. District Court to offering or paying illegal kickbacks to physicians in relation to the government health care insurance programs Medicare, TRICARE, and the FECA Program, announced U.S. Attorney Trent Shores
Daniel Richard Ferguson, 47, of Broken Arrow; John Richard Frohrip, 52, of Tulsa; and Kevin Ellis Partin, 49, of Bixby, were charged this month in three separate Informations with offering or paying health care kickbacks. The men caused federal health care insurance programs to pay reimbursement costs for expensive compounding drug prescriptions written by recruited doctors in return for kickback payments. The defendants would then use the reimbursed funds for their own financial gain.
“Kickback schemes undermine the integrity of government healthcare programs and raise healthcare costs for Americans. These greed fueled schemes frustrate patient-oriented decision-making because doctors make prescription and pharmacy decisions based on their personal financial enrichment,” said U.S. Attorney Trent Shores. “Professionals in the healthcare market in northern Oklahoma should be on notice by now that kickback schemes will be exposed and those involved held accountable.”
In their plea agreements, the men acknowledged offering to pay kickbacks to physicians and that on March 30, 2015, they allegedly paid a physician, Dr. John Main, of Tulsa, a $15,000 check payment from an account controlled by Brookhaven Specialty Pharmacy, LLC, which constituted a kickback in return for the physician referring patients to Brookhaven for compounding prescriptions that would be reimbursed by the federal health care program Tricare.
Violating the anti-kickback statute carries up to five years in prison and a $250,000 possible fine.
Assistant U.S. Attorneys Melody N. Nelson and Richard M. Cella are prosecuting the cases. The IRS- Criminal Investigation; U.S. Postal Service- Office of Inspector General (OIG); Department of Veterans Affairs- OIG; FBI; Department of Health and Human Services- OIG; Defense Criminal Investigative Service; and Department of Labor- OIG conducted the investigation.
Attorney General’s Advisory Subcommittee on Native American Issues Meets to Discuss Violent Crime in Indian CountryRead the Press Release
Attorney General William P. Barr’s Advisory Subcommittee on Native American Issues (NAIS) convened this week during the U.S. Attorney’s National Conference in Washington, D.C., to discuss a wide range of justice issues affecting Indian Country, announced U.S. Attorney Trent Shores, Chair, and U.S. Attorney Kurt Alme, Vice Chair.
“The Native American Issues Subcommittee is focused on reducing violent crime against women and children in Indian Country, including missing and murdered indigenous persons,” said U.S. Attorney Trent Shores. “I am thankful for Attorney General Barr’s leadership on these issues. He understands the law enforcement and jurisdictional challenges faced by Native Americans and Alaska Natives. We look forward to working with him and with our federal, tribal, state and local partners to find viable solutions that will improve public safety in Indian country.”
On Tuesday, the NAIS met with Tara Katuk Mac Lean Sweeney, Assistant Secretary of Indian Affairs, Department of the Interior, and discussed cross-agency collaboration in order to provide more responsive and effective justice services to Indian Country. They further discussed Indian Country case investigations, case intake and tracking databases, and tribal law enforcement resource allocation. The NAIS also reviewed President Trump’s priorities for Indian Country justice. Those priorities include protecting Native American children in the Indian Health Services system, collaboration among Department of Justice, the Department of the Interior, and tribal law enforcement agencies, reducing violent crime, and providing services to help victims to overcome trauma.
On Wednesday, Trent Shores, NAIS Chair and U.S. Attorney for the Northern District of Oklahoma, moderated a panel titled Murdered and Missing Indigenous Women: A Crisis in Urban America & Indian Country. Panelists included Charles Addington, Director of the Office of Justice Services, Bureau of Indian Affairs; Kurt Alme, U.S. Attorney for the District of Montana; Tracy Toulou, Director of the Office of Tribal Justice; Laura Rogers, Acting Director of the Office on Violence Against Women; and Bryan Vorndran, Deputy Assistant Director of the FBI. The panel discussed the development and implementation of protocols to investigate murdered and missing indigenous persons and how to more accurately measure the scope of the problem in both urban America and Indian Country in order to develop strategies to address it.
In August, the subcommittee is scheduled to reconvene in Indian Country in New Mexico.
The NAIS consists of the approximately 53 U.S. Attorneys serving in districts that include Indian Country or one or more federally recognized tribes. The subcommittee focuses exclusively on Indian Country issues, both criminal and civil, and makes policy recommendations to the Attorney General regarding public safety and legal issues that impact tribal communities.
The NAIS is the longest standing subcommittee to the Attorney General’s Advisory Committee and helps develop, shape, and otherwise implement justice policies affecting Native Americans and Alaska Natives. The NAIS has identified four priority areas: 1) Violent crime 2) Law enforcement resources 3) Drug trafficking and substance abuse, and 4) White collar crime.
U.S. Attorney Shores Announces the Hiring of a Violent Crime Paralegal Specialist and Asset Forfeiture Assistant U.S. AttorneyRead the Press Release
TULSA, Okla. – United States Attorney Trent Shores announced today the hiring of Elizabeth Dick as the Violent Crime Paralegal Specialist and Reagan Reininger as Assistant U.S. Attorney in the Asset Forfeiture Unit. Both will be part of the Criminal Division of the U.S. Attorney’s Office for the Northern District of Oklahoma.
“We are enthused to have Liz Dick and Reagan Reininger on our staff,” said U.S. Attorney Trent Shores. “It’s great to have Liz on our legal team as a research and writing expert. Liz’s professionalism and get-it-done attitude are welcome additions. Reagan joins our Asset Recovery Unit where her background as both a criminal and civil litigator will be a real asset. Her diverse experience makes her a valuable member of our prosecution team. I am confident that both attorneys will make a positive impact in our community.”
Ms. Dick has been a practicing attorney since 2012. Most recently, she practiced as a research and writing contract attorney for numerous firms in Tulsa while simultaneously teaching mathematics at Jenks Public Schools. While there, Ms. Dick was named Freshman Academy Teacher of the Year in 2016, and she was the first Creative Learning Systems STEM facilitator in the state. Previously, Ms. Dick was legal intern for the U.S. Attorney’s Office from September 2011 to April 2012. Ms. Dick received her undergraduate degree from Michigan Technological University and her Juris Doctorate from the University of Tulsa College of Law.
Ms. Reininger has been a practicing attorney since 2008 and will be handling Asset Forfeiture matters for the U.S. Attorney’s Office. Most recently, she worked as an Associate Attorney at the law firm of Richards & Connor in Tulsa. Previously, she worked major cases, including homicide and robbery, as Assistant District Attorney with the Oklahoma, Rogers, and Tulsa County District Attorneys’ Offices. Ms. Reininger received her undergraduate degree from Oklahoma State University and her Juris Doctorate from the Oklahoma City University School of Law.
Tulsa Man Sentenced for Defrauding Bank of Nearly $5 MillionRead the Press Release
United States Attorney Trent Shores announced today that a Tulsa man was ordered to federal prison for defrauding a bank of nearly $5 million and for bankruptcy fraud. In December, Zealand Benjamin Thigpen III, 68, pleaded guilty in U.S. District Court to defrauding Arvest Bank of $4,754,488 from 2015 to 2017.
U.S. District Judge Claire V. Eagan sentenced Thigpen to 33 months in prison to be followed by five years of supervised release. Judge Eagan further ordered a criminal forfeiture money judgement in the sum of $4,754,488.40 representing proceeds obtained through his crimes.
“Thigpen swindled millions. He perpetrated a fraud on both Arvest Bank and the Small Business Administration. While he sits in federal prison for the next 33 months, the United States Attorney’s Office will return his illegally begotten proceeds to the victims of his fraud,” said U.S. Attorney Shores. “I commend the investigators from the Department of Treasury and Small Business Administration, along with Assistant U.S. Attorney Kevin Leitch. They discovered and exposed Thigpen’s scheme, then brought him to justice.”
As part of his scheme, Thigpen owned and operated Julimar Trading, LLC., which bought and sold refined metal alloys, principally for the production of steel. Julimar’s operations were funded by Avrest Bank and, in part, guaranteed by the Small Business Administration. The bank financing was secured by his company’s inventory and accounts receivable, as well as Thigpen’s personal guarantees. When submitting financial documentation to the bank on October 4, 2016, Thigpen provided false information about the value of Julimar’s inventory and accounts receivable, explaining the inventory was worth $5,816,335. As a result, Arvest and Small Business Administration continued his line of credit under false pretenses. In fact, the accounts receivable and inventory were nearly non-existent.
Later, on November 18, 2016, Thigpen filed pursuant to Chapter 7 in U.S. Bankruptcy Court, and once again lied about Julimar’s inventory, stating that it was worth just over $3.3 million, when he was fully aware it only totaled only a few thousand dollars.
Thigpen was remanded int0 the custody of the U.S. Marshals Service until transfer into a U.S. Bureau of Prisons facility.
This case resulted from a joint investigation performed by the Offices of Inspectors General of the Department of the Treasury and the Small Business Administration and was prosecuted by Assistant U.S. Attorney Kevin C. Leitch
Deputy Attorney General Recognizes Assistant U.S. Attorney Shannon Cozzoni for her Work as Tribal LiaisonRead the Press Release
Assistant U.S. Attorney Shannon Cozzoni, Tribal Liaison for the U.S. Attorney’s Office in the Northern District of Oklahoma, was one of 172 members of the Department of Justice recognized by Deputy Attorney General Jeffrey Rosen, and Executive Office for U.S. Attorneys (EOUSA) Director James Crowell, IV, at the 35th Director’s Awards Ceremony today in Washington, D.C.
The Northern District of Oklahoma was one of 31 districts represented at the ceremony held in the Great Hall at the Robert F. Kennedy Department of Justice Building. Cozzoni was recognized for her superior performance as Tribal Liaison in Indian Country.
Deputy Attorney General Jeffrey Rosen addressed the recipients and guests, saying, “Today’s honorees have earned the esteem of their colleagues. But most importantly, you have earned the gratitude of your fellow citizens — whose communities you have made safer, whose lives you have improved, and whose trust you have rewarded.”
“The Department of Justice is in truth a deployed force,” said EOUSA Director James Crowell to the recipients. “Your work isn’t easy, but it is vital to the functioning and enduring nature of our democracy. As federal prosecutors, we are held to a higher standard, a standard that requires us to ensure that we uphold the rule of law and the fundamental rules of fairness in every trial, every settlement, every plea, and every legal argument in which we are involved.”
Cozzoni is a stalwart advocate for justice as the Tribal Liaison to fourteen tribes in the Northern District of Oklahoma. Cozzoni has strengthened the relationship between the U.S. Attorney’s Office and the Tribes, and likewise, she has expanded the collaborative partnership between federal, state, local, and tribal authorities.
“Assistant U.S. Attorney Shannon Cozzoni isn’t just a great Indian Country prosecutor, she’s a great person. This national recognition was well deserved and hard earned. I am incredibly proud to have her on our team,” said U.S. Attorney Trent Shores of the Northern District of Oklahoma. “AUSA Cozzoni exhibits excellence in the courtroom and shows genuine care for victims of violent crime. She regularly goes above and beyond the call of duty to help Native American women and children who are victims of domestic violence or sexual abuse. As our Tribal Liaison, she ensures that the United States upholds its federal trust responsibilities to Native Americans. AUSA Cozzoni does it all. She is truly an outstanding advocate for justice in Indian Country.”
As Tribal Liaison, Cozzoni prosecutes cases involving Native American victims and defendants, and she educates legal and law enforcement professionals on justice issues affecting communities in Indian Country. During the past year, Cozzoni organized and led victim service roundtables for tribal and state law enforcement and victim service providers. She also developed and taught accredited, joint training courses to tribal and local police departments in eleven counties, covering topics like cross-deputization agreements, domestic violence, and the opioid epidemic. Cozzoni further orchestrated three days of meetings for the Native American Issues Subcommittee to the Attorney General’s Advisory Committee, which were held at the Muscogee (Creek) and Cherokee Nations in Oklahoma. In hosting the 32 U.S. Attorneys who serve Native American and Alaska Native communities, Cozzoni developed an agenda focused on violent crime reduction, opioid abuse enforcement, victims’ rights, and white-collar crimes in Indian Country.
EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.
Two Assistant United States Attorneys Named Prosecutors of the Year by the Oklahoma Gang Investigators AssociationRead the Press Release
Two Assistant United States Attorneys have been named Prosecutors of the Year by the Oklahoma Gang Investigators Association (OGIA), announced Trent Shores, U.S. Attorney for the Northern District of Oklahoma, and Timothy Downing, U.S. Attorney for the Western District of Oklahoma. The recipients were announced at the OGIA’s 23rd Annual Gang Conference on Jun. 18, in Tulsa.
Assistant U.S. Attorneys Dennis A. Fries and Nicholas J. Patterson were recognized for their extensive prosecutorial work involving members and associates of the Universal Aryan Brotherhood (UAB), a “whites only” prison-based gang with members operating inside and outside of state prisons throughout Oklahoma. Investigations in the Northern and Western Districts of Oklahoma have resulted in the federal prosecution of dozens of UAB members. Fries’ and Patterson’s efforts demonstrate unwavering commitment to the security of communities across Oklahoma and the administration of justice.
“I am pleased to see Assistant U.S. Attorney Dennis Fries recognized for his exemplary work prosecuting gang cases,” said U.S. Attorney Shores. "From prosecuting white supremacist prison gangs to violent street gangs and international drug trafficking organizations, Dennis has proven himself to be a dedicated public servant and stalwart advocate for justice. We are proud of his efforts to keep Oklahomans safe from organized crime.”
“AUSA Patterson has served the people of Oklahoma well by establishing a strong working relationship with federal, state, and local law enforcement and by prosecuting violent UAB members vigorously,” said U.S. Attorney Downing. “My office will continue to bring criminal cases with hefty sentences against violent gang members to make our entire district safer.”
In the Northern District of Oklahoma, Fries indicted 18 key members and associates of the Universal Aryan Brotherhood for their roles in operating and supporting a racketeering enterprise. The indictment, unsealed in February 2019, alleged that the UAB committed nine overt acts of murder, kidnapping, the trafficking of methamphetamine and firearms, money laundering, assault, and robbery as part of their racketeering enterprise. While in prison, members of the gang’s main council are alleged to have used contraband cell phones to communicate their orders and further their enterprise. Fries worked extensively with investigators from Homeland Security Investigations and IRS-Criminal Investigation to navigate the complex and considerable processes associated with developing a racketeering prosecution. The lengthy investigation into the UAB’s operations began in 2012, but evidence gathered dates as far back as 2006.
In the Western District of Oklahoma, Patterson has led the successful prosecution of more than 20 UAB members and associates, many of whom had lengthy histories of violent crime. Three of these cases involved guilty verdicts after jury trials. Patterson’s UAB cases have generally involved the illegal possession of firearms and drug distribution; they have resulted in the seizure of more than 70 firearms, including machine guns and silencers, as well as large quantities of methamphetamine and heroin. In just the past two weeks, for example, Patterson’s work has involved the seizure of approximately four kilograms of methamphetamine. In addition to charging defendants in the Oklahoma City metropolitan area, Patterson has contributed to community safety in more rural areas by charging UAB defendants in, for example, Woodward, Beckham, and Garfield Counties.
These prosecutions are a part of the Project Safe Neighborhoods initiative, the centerpiece of the Department of Justice’s violent crime reduction efforts. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions.
The Oklahoma Gang Investigators Association was established more than 20 years ago. OGIA has taken the lead in gang training around the state. The association is led by federal, state, and local law enforcement gang experts and educates law enforcement as well community groups on the nature and operations of gangs. The group is also involved in charitable donations to gang intervention and prevention organizations.
Owasso Man Sentenced for Distributing More than 100 Kilograms of MarijuanaRead the Press Release
United States Attorney Trent Shores announced that Andrew Wade Wyrrick, 24, of Owasso, was ordered to prison today for possession with intent to distribute marijuana and to possessing a firearm in furtherance of a drug trafficking crime.
Chief U.S. District Judge John E. Dowdell sentenced Wyrrick to five years in federal prison followed by three years of supervised release.
“I am often asked whether the United States Attorney’s Office prosecutes violations of federal drug laws involving marijuana. This prosecution should answer that question. Andrew Wyrrick dealt large quantities of marijuana on Tulsa’s streets and carried a gun while doing so. His illegal operation facilitated the transportation and distribution of nearly 200 pounds of marijuana to Tulsa communities,” said U.S. Attorney Shores. “Illegal narcotics distribution operations pose a threat to the safety and security of Tulsa’s neighborhoods. There is a societal toll associated with drug addiction that accompanies large-scale distribution operations. Addiction impacts families, relationships, and even economic opportunity. The U.S. Attorney’s Office wants to keep addiction out of our community while also helping to ensure those in need of addiction related treatment are aware of local resources.”
Tulsa police officers initially made contact with Wyrrick during a suspected drug deal. When officers searched his vehicle and questioned the defendant, they found a handgun, more than $2,000, and discovered he was dealing marijuana. They also discovered that he had pleaded guilty just two days earlier to drug distribution. Wyrrick was arrested and later released on bond. Afterward, investigators monitored Wyrrick’s activity, noting that he was continuing to distribute marijuana. He was eventually arrested in April 2018 when he returned from Colorado with duffel bags full of marijuana. At his plea hearing, Wyrrick admitted to traveling to Pueblo, Colorado, in April 2018, to purchase marijuana for the purpose of selling it in northeastern Oklahoma.
Wyrrick is currently in the custody of the U.S. Marshals Service until transfer to a U.S. Bureau of Prisons facility.
The Tulsa and Owasso Police Departments and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney Ryan Roberts prosecuted the case.
US. Attorney Highlights Recent Project Safe Childhood ConvictionsRead the Press Release
Over the past two weeks, five defendants have pleaded guilty or have been sentenced in the Northern District of Oklahoma for sex crimes involving minors, announced U.S. Attorney Trent Shores. The prosecutions are part of the Department of Justice’s Project Safe Childhood initiative and come on the heels of Operation Broken Heart, a two-month, nationwide operation that netted almost 1,700 suspected online child sex offenders and identified 308 offenders who either produced child pornography or committed child sexual abuse.
The Project Safe Childhood initiative marshals federal, state, and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and identifies and rescues victims.
“Our Project Safe Childhood initiative is crucial to ferreting out criminal deviants who try to sexually exploit minors. We conduct local undercover sting operations as well as use cyber-based investigative techniques to identify these child predators,” said U.S. Attorney Shores. “As a prosecutor, I sought justice for victims of child sexual abuse, human trafficking, and child pornography. I know just how important these cases are, which is why we continue to prioritize them. We must get child predators off our streets and behind bars. I’m thankful for the aggressive prosecution of these cases by Assistant U.S. Attorneys Chris Nassar and Shannon Cozzoni. Moreover, our partnerships with local, state, and federal investigators are crucial to protecting children in northern Oklahoma. There is no more righteous cause than protecting children.”
Levi William Welker, 29, of Tulsa, was sentenced to 17 years in federal prison followed by seven years on supervised release for distribution of child pornography, enticing a minor, and tampering with a witness and evidence. In February 2016, Welker shared child pornography using a bit torrent file sharing network. Investigators initially discovered 68 images on a torrent file which was traced to Welker’s IP address. During a search, investigators located more than 7,000 image and video files of child pornography. Welker also admitted that he later used multiple social media apps and communications devices to manipulate and lure two minor children to engage in sexual activity with him. He pretended to be 16 years old and provided the victims with cell phones in order to secretly communicate. When one of the children’s parents became suspicious, they reported Welker to the Tulsa Police Department. After the investigation commenced, police discovered that Welker messaged one of the victim’s social media accounts, asking her to lie to police and destroy evidence. He also destroyed other digital evidence in an effort to thwart the investigation. The Court remanded Welker into the custody of the U.S. Marshals Service pending transfer to a U.S. Bureau of Prisons facility. The FBI and Tulsa Police Department investigated these crimes.
Kenny Wayne Brown, 52, of Gainesville, Texas, was sentenced to 10 years in federal prison followed by 10 years on supervised release for attempted coercion and enticement of a minor. From Sept. 6 to Sept. 28, 2018, Brown unknowingly initiated contact with an Internet Crimes Against Children task force officer from the Bristow Police Department who was posing as a minor female. Using social media, he engaged the “girl” in explicit sexual conversation and sent pornographic images of himself to the “girl.” He eventually arranged to travel from Texas to Bristow, Oklahoma, in order to engage in sexual activity. During the arrest at the arranged location, Brown attempted to flee from officers nearly striking them with his vehicle until he was eventually stopped and arrested. Investigators discovered that Brown was also charged with online solicitation in May 2018 in Texas. The Bristow Police Department conducted the investigation.
Jeffrey Scott Cooper, 46, of Broken Arrow, was sentenced to 87 months in federal prison followed by five years on supervised release for attempted receipt of child pornography. From Dec. 18 to Dec. 20, 2018, Cooper unknowingly made contact with an officer from the Tulsa Police Department’s Cyber Crimes Task Force posing as a minor female. Using a social media app, Cooper started the conversation with what he believed to be a minor female. He then engaged the “girl” in explicit sexual conversation, eventually arranging to meet in order to engage in sexual activity. On Dec. 20, 2018, investigators arrested Cooper after he arrived in his company car at the arranged meeting location. The Tulsa Police Department and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation.
Sean Clarke McCain, 32, of Tulsa, was sentenced to 87 months in federal prison followed by five years on supervised release for attempted receipt of child pornography. From Dec.18 to Dec. 20, 2018, McCain unknowingly made contact with an officer from Tulsa Police Department’s Cyber Crimes Task Force posing as a minor female using an online messaging app and attempted to receive photographs of the “minor” engaged in sexually explicit conduct. He then engaged the “girl” in explicit sexual conversation, eventually arranging to meet in order to engage in sexual activity. McCain was later arrested at the arranged meeting location. The Tulsa Police Department and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation.
Robert Shawn Thomas Davis, 26, of Owasso, pleaded guilty on June 11, to attempted coercion and enticement of a minor. On March 25, 2019, Davis unknowingly initiated contact with an FBI Task Force Officer who was posing as a minor female. Davis engaged the “minor” in sexually explicit conversation, asking to meet her and to bring other children along to engage in sexual activity. He eventually arranged to meet the “minor.” At his plea hearing, Davis admitted that from March 25 to April 4, 2019, he used a social media app on his phone to attempt to persuade, induce and coerce and entice a what he believed was a 13-year-old girl to engage in sexual activity with him. The Court set sentencing for Sept. 24, 2019. Davis faces a minimum sentence of 10 years in prison The Tulsa Police Department and FBI conducted the investigation.
Following their federal prison sentences, all convicted sex offenders are required to comply with requirements designed to restrict their access to children and to register as sex offenders.
Assistant U.S. Attorney Christopher J. Nassar prosecuted these crimes.
Three Physicians and Five Marketers Charged for Violations to Federal Anti-Kickback StatutesRead the Press Release
TULSA, Okla. – Three physicians and five marketers have been charged in U.S. District Court with violations of the federal anti-kickback statute and other criminal offenses, announced U.S. Attorney Trent Shores. The men allegedly caused federal health care insurance programs to pay reimbursement costs for fraudulent and expensive compounding drug prescriptions written by recruited doctors in return for kickback payments. The defendants would then use the reimbursed funds for their own financial gain.
“Sadly, the American taxpayer ends up paying the price when unscrupulous medical professionals fraudulently bill federal health insurance. In these cases, patients believed they were receiving a compounded cream that fit their specific medical need. In actuality, the charges allege that the drug mixtures prescribed and received by the patients were designed to line the pockets of criminally corrupt doctors with illegally begotten funds,” said U.S. Attorney Shores. “Every dollar we recover from those who defraud federal health insurance programs will be a dollar that goes back to providing healthcare for Americans served by these programs.”
Dr. Krishna Balarma Parchuri, 44, of Tulsa, is charged in a superseding Indictment along with Christopher R. Parks, 57, of Tulsa, Dr. Gary Robert Lee, 58, of Tulsa, and Dr. Jerry May Keepers, 65, of Kingwood, Texas, with conspiracy to commit health care fraud. Keepers and Parchuri are also charged with soliciting and receiving illegal bribes and kickback payments. Parchuri is further charged with obstructing the criminal investigation into the health care offenses.
The criminal indictment alleges that since November 2012, Parks and Lee, engaged in a conspiracy to unlawfully pay kickbacks and bribes to physicians in order to induce the physicians to write expensive compounding prescriptions to pharmacies they controlled, including OK Compounding LLC, in Skiatook, One Stop RX LLC in Tulsa and NBJ Pharmacy LLC and Airport McKay Pharmacy, both in Houston. The defendants then allegedly submitted large claims for payment to federal health care programs and divided the profits. The defendants are accused of causing Tricare to pay reimbursement for false claims in the total amount of $3,207, 514.97; Medicare in total of $285,776.87; FECA Program in total of $552,544.55; and CHAMPVA in total of $310,273.64.
Compounding prescriptions is a practice in which a pharmacist or physician combines ingredients of multiple drugs to create a medication that is tailored to the specific needs of a patient. These medications are prescribed when standard Food and Drug Administration (FDA) approved drugs are unsuitable for the patient. They are also more expensive and reimbursed at a far higher rate by federal and private insurance companies. Compounded drugs are not to be mixed or marketed in bulk.
The charges allege that, in some cases, physicians were provided pre-printed prescription pads that listed compounding formula choices. Participating physicians allegedly checked a box with their preferred selection and then faxed it directly to the associated pharmacies, rather than writing a prescription tailored to the patient who could then take it to a pharmacy of their choice.
Parchuri, an orthopedic surgeon practicing in Tulsa, Oklahoma, and a doctor of osteopathic medicine licensed in Arizona, Kansas, Oklahoma, Florida, and Texas, received kickbacks and bribes in varying amounts up to $50,000 per month from Parks and Lee in exchange for writing compounded drug prescriptions that were submitted to pharmacies controlled by the two men.
Keepers allegedly solicited and received more than $860,000 in illegal bribe and kickback payments from Parks and Lee.
According to the indictment, kickback payments were disguised through various sham business arrangements, including contracts where physicians purported to serve as “medical directors” or “consulting physicians” for the pharmacies. Doctors were also recruited as “medical directors” for a university study. In actuality, the sham arrangements were meant to conceal the fact doctors were receiving kickback payments for writing prescriptions. Additionally, limited liability companies (“LLCs”) were created, owned and operated by the corrupt pharmacies/marketers and physicians who submitted the compounding prescriptions. After the pharmacies received payments for the illegal prescriptions, the conspirators transferred the profits to the LLCs to be divided among the conspirators.
Jonathon Yates Boyd III, 47, of Sugarland, Texas, is charged in an Information for conspiring to pay health care kickbacks. In 2012, Boyd formed R&A Marketing LLC, in Houston, Texas, and began recruiting physicians to write prescriptions for compounded drugs. From November 2012 to September 2014, Boyd conspired to pay kickbacks and bribes to physicians to induce them to write prescriptions for expensive compounded drugs and to submit those prescriptions to pharmacies controlled and operated by Parks and Lee. The conspirators then submitted large claims for payment to various federal health care programs and divided the profits from the federally-paid claims. Boyd was paid a commission based upon the reimbursed prescriptions.
The kickback payments were allegedly disguised through fraudulent business arrangements. Contracts were created between the corrupt pharmacies and physicians for services as “medical directors” or “consulting physicians” to the pharmacies. In actuality, the doctors did not provide the services. The sham arrangements were meant to conceal the fact doctors were receiving kickback payments for writing prescriptions. R&A Marketing and the pharmacies were each responsible for their prearranged portion of the kickback payments.
Daniel Richard Ferguson, 47, of Broken Arrow; John Richard Frohrip, 52, of Tulsa; and Kevin Ellis Partin, 49, of Bixby are charged in three separate Informations with offering or paying health care kickbacks. On March 30, 2015, the men allegedly paid a physician a $15,000 check payment from an account controlled by Brookhaven Specialty Pharmacy, LLC, which constituted a kickback in return for the physician referring patients to Brookhaven for compounding prescriptions that would be reimbursed by the federal health care program Tricare.
Conspiracy to violate the anti-kickback statute carries a possible maximum sentence of five years in prison and a $250,000 fine, while violating the anti-kickback statute carries up to 10 years in prison and a $100,000 possible fine. A conviction of health care fraud without injury or death also carries a possible maximum of 10 years in prison, but if resulting in injury or death, the maximum penalty climbs to 20 years or life in prison, respectively.
Assistant U.S. Attorneys Melody N. Nelson and Richard M. Cella are prosecuting the cases. The Department of Labor- Office of Inspector General (OIG), IRS - Criminal Investigation, U.S. Postal Service- OIG, Department of Veterans Affairs- OIG, FBI, the Department of Health and Human Services-OIG, and Defense Criminal Investigative Service conducted the investigation.
Federal Grand Jury Indictments AnnouncedRead the Press Release
United States Attorney Trent Shores announced today the results of the June 2019 Federal Grand Jury B.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Ken Lee, Veng Xiong, Xiongkou Her, and Kosh Kash Cannady Lor- Superseding Indictment. Drug Conspiracy; Possession of Firearms in Furtherance of a Drug Trafficking Crime (2 Counts); Felon in Possession of a Firearm. Ken Lee, 24; Veng Xiong, 32; Xiongkou Her, 23; and Kosh Kash Cannady Lor, 24, all of Tulsa, are charged with conspiring to possess with intent to distribute and to distribute 500 grams or more of methamphetamine. Lee and Her are also charged with possessing a Glock .40 caliber semi-automatic pistol and a Taurus .38 caliber special revolver in furtherance of their drug trafficking crimes. Xiong and Lor are charged with possessing a Winchester 12 gauge shotgun and associated ammunition in furtherance of their drug trafficking crimes. Xiong is further charged with being a felon in possession of a Winchester 12 gauge shotgun, a ROMARM/CUGIR 7.62x39 mm semi-automatic rifle, a Glock .40 caliber semi-automatic pistol, and a Taurus .38 caliber special revolver. The investigative agencies are the Osage Nation Tribal Police, Osage County Sheriff’s Office; FBI; Bureau of Alcohol, Tobacco, Firearms and Explosives; Oklahoma Bureau of Narcotics and Dangerous Drugs, and Oklahoma Highway Patrol.
Krishna Parchuri, Christopher Parks, Gary Lee, and Jerry Keepers- Superseding Indictment. Conspiracy to Offer and Pay, and Solicit and Receive Health Care Kickbacks; Conspiring to Commit Health Care Fraud; Soliciting and Receiving Health Care Kickbacks; Obstruction of Criminal Investigations of Health Care Offense. Parchuri, 44, of Tulsa, Parks, 57, of Tulsa, Lee, 58, of Tulsa, and Keepers, 65, of Kingwood, Texas, are charged with conspiring to offer and pay, and solicit and receive health care kickbacks; and conspiring to commit health care fraud. Keepers and Parchuri are also charged with soliciting and receiving illegal bribes and kickback payments. Parchuri is further charged with obstructing the criminal investigation into the health care offenses. The Department of Labor- Office of Inspector General (OIG), IRS- Criminal Investigation, U.S. Postal Service- OIG, Department of Veterans Affairs- OIG, FBI, the Department of Health and Human Services- OIG, and Defense Criminal Investigative Service conducted the investigation.
Claremore Man Sentenced to 25 Years in Prison for Drug, Firearms, and Obstruction of Justice OffensesRead the Press Release
A Claremore man was sentenced today in U.S. District Court for maintaining a drug-involved premises, being a felon in possession of firearms and ammunition, and obstruction of justice by using the threat of physical force against a witness.
U.S. District Judge Gregory K. Frizzell sentenced James Kent Patrick Hill, 58, to 25 years in prison to be followed by three years of supervised release.
Hill previously pleaded guilty to the charges on March 12, 2019. During the plea hearing, he admitted to maintaining his Claremore residence for the purpose of using controlled substances such as methamphetamine, marijuana, alprazolam and diazepam. Hill further admitted to being a felon in possession of 10 firearms, including shotguns, rifles and pistols and more than 1,000 rounds of associated ammunition. Hill also stated that after he was arrested on Sept. 20, 2018, he threatened the use of force against Corporal John Haning, of the Rogers County Sheriff’s Office, when he reached for and nearly unholstered the Corporal’s firearm while being transported to the Rogers County Jail. By grabbing Haning’s firearm, Hill intended to influence, delay, and prevent the testimony of Haning and others in official proceedings.
“James Hill will have 25 years to reflect on his crimes while he serves his sentence in prison,” said U.S. Attorney Shores. “My team is focused on making northeastern Oklahoma neighborhoods safer by targeting drug and gun related crimes through Project Safe Neighborhoods. James Hill made a bad situation worse when he attempted to grab the service weapon of the deputy who had arrested him. Assaults on law enforcement officers and agents will be prosecuted by my office. If there is jurisdiction over the assault, then criminals should expect to meet a federal prosecutor. There is no better partner than the ATF to help us investigate these types of cases. I’m thankful the Rogers County Deputy in this case did not suffer serious injury or worse.”
Hill was remanded into the custody of the U.S. Marshals Service while awaiting state charges.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Verdigris Police Department and Rogers County Sheriff’s Office are the investigative agencies. Assistant U.S. Attorney Mark Morgan prosecuted the case
Department of Justice and U.S. Attorney Remind the Public to Be Aware of Fraud When Disaster Strikes and Report it to the National Center for Disaster FraudRead the Press Release
As severe weather continues across the United States and this year’s hurricane season begins, the Department of Justice and U.S. Attorney Trent Shores remind the public to be on the lookout for fraud against natural disaster victims and to report it to the National Center for Disaster Fraud (NCDF).
“Committing fraud against natural disaster victims is an inexcusable crime,” said Deputy Attorney General Jeff Rosen. “It is important for people to be on the lookout for fraudsters who seek to profit from natural disasters through identity theft schemes and solicitations for fake charities. The Department of Justice is committed to detecting this type of fraud, and we will aggressively prosecute the offenders. Through our National Center for Disaster Fraud, and in conjunction with our law enforcement partners, we are working to keep Americans from becoming victims of these schemes.”
“In Oklahoma, ten counties were recently approved to receive federal disaster assistance due to the severe weather and flooding that began in May,” said U.S. Attorney Shores. “As Oklahomans recover and rebuild, they should be wary of fraudsters and con artists who would seek to exploit victims of this extreme weather season. I strongly encourage the public to contact the Justice Department’s National Center for Disaster Fraud at 1-866-720-5721 to report any instances of fraud.”
The Department of Justice established the NCDF in the wake of Hurricane Katrina, when billions of dollars in federal disaster relief poured into the Gulf Coast region, which opened opportunities for criminals to exploit people during vulnerable times. The NCDF, a national coordinating agency within the Department’s Criminal Division, operates a call center at Louisiana State University in Baton Rouge and serves as a centralized clearinghouse for disaster fraud complaints and information relating to both natural and man-made disasters. The NCDF seeks to improve and further the detection, prevention, investigation, and prosecution of fraud related to natural and man-made disasters, and to advocate for victims of such fraud. More than 20 federal, state, and local agencies participate in the NCDF, which allows them to forward on complaints to the appropriate agency for investigation.
Numerous U.S. Attorneys’ offices in districts impacted by hurricanes have established task forces comprised of local, state and federal agencies in their respective areas to combat disaster fraud.
"The Department of Justice and the NCDF is committed to ensuring each report of disaster fraud reaches the appropriate investigative agency. Do not let disaster strike twice. Report suspected disaster fraud to the NCDF, which has an excellent staff of investigators, analysts, call center operators, and managers who are well prepared to handle the anticipated volume of complaints during hurricane season,” said U.S. Attorney Brandon J. Fremin for the Middle District of Louisiana, who is also the NCDF’s Executive Director.
Eighteen major disaster declarations have already been declared in 2019 for events including recent storms, tornadoes, and flooding across the Midwest; Typhoon Wutip in Guam; and severe winter storms and mudslides in Oregon, California. Unfortunately, and inevitably, natural and man-made disasters will continue to occur across our great nation. These terrible and often tragic events leave many people without food, water, or shelter, and often cause devastating damage to life and property. Nevertheless, there are criminals ready to take advantage of victims before, during, and especially after a natural disaster. They are looking to strike those at their most vulnerable time.
While compassion, assistance, and solidarity are generally prevalent in the aftermath of natural disasters, unscrupulous individuals and organizations also use these tragic events to take advantage of those in need. Examples of illegal activity being reported to the NCDF and law enforcement include:
- Impersonation of federal law enforcement officials;
- Identity theft;
- Fraudulent submission of claims to insurance companies and the federal government;
- Fraudulent activity related to solicitations for donations and charitable giving;
- Fraudulent activity related to individuals and organizations promising high investment returns via profits from recovery and cleanup efforts;
- Price gouging;
- Contractor Fraud;
- Debris removal fraud;
- Theft, looting, and other violent crime
Members of the public are reminded to be extremely cautious before providing personal identifying or financial information to anyone, especially those who may contact you after a natural disaster. They are also reminded to report suspected waste, fraud, abuse, or allegations of criminal conduct. If members of the public believe they have been the victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, they are strongly encouraged to contact the National Center for Disaster Fraud Hotline toll free by phone at (866) 720-5721, email at [email protected], or fax at (225) 334-4707. The telephone line is staffed by live operators 24 hours a day, seven days a week.
To learn more about the NCDF please visit the website at www.justice.gov/disaster-fraud and watch a public service announcement.
Attorney General William Barr and U.S. Attorney Trent Shores Announce the Creation of a Working Group on Prosecuting Gun Crimes to Stop and Reduce Domestic ViolenceRead the Press Release
Attorney General William P. Barr and U.S. Attorney Trent Shores today announced the formation of a Domestic Violence Working Group aimed at keeping guns out of the hands of convicted domestic abusers, using the tools of federal prosecution to stop and prevent domestic violence. The group will operate under the auspices of the Attorney General’s Advisory Committee (AGAC) and be comprised of nine U.S. Attorneys across the country, chaired by U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
“Too often, domestic abusers start with threats and abuse, and end up committing extreme violence and even homicide, with devastating impact on families and the community around them,” said Attorney General Barr. “I have directed this working group to examine this issue and determine the best way to use federal gun prosecutions and other appropriate tools to supplement state, local and tribal efforts to address domestic violence.”
“Domestic violence abusers often escalate from fists to firearms. They drive-up violent crime numbers across a number of categories, including sexual assault and homicide. I am honored Attorney General Barr asked me to join this domestic violence working group,” said U.S. Attorney Shores. “As a career prosecutor, I have seen firsthand the tragic effects of domestic violence not only on the victim, but also on children in the household. It is not uncommon that those children are also severely impacted for the rest of their lives. Moreover, domestic violence is a particular problem in Indian Country, as Native American women and children are often victimized at higher rates than other demographics in America.”
Federal law has long barred convicted felons, as well as individuals subject to certain domestic violence protective orders or convicted of domestic violence misdemeanors, from possessing firearms.
Offenders with domestic violence in their past pose a remarkably high risk of homicide. Research shows that abusers with a gun in the home are five times more likely to kill their partners than abusers who don’t have that same access to a firearm. And according to one recent study, more than half of America’s mass shootings are cases of extreme domestic violence.
Keeping guns from domestic abusers legally prohibited from possessing them would significantly reduce violence in America, a major priority of the Justice Department.
However, federal gun cases involving domestic violence present unique challenges. In some states, the federal and state definitions of domestic violence differ, requiring complex legal analysis that varies based on the location of conviction.
“Our working group will look at how to strategically use federal gun prosecutions involving domestic abusers to protect victims, prevent homicides, and generally lower our violent crime rates in America. We recently instituted a localized federal domestic violence prosecution initiative in partnership with the Tulsa Police Department, Tulsa County Sheriff’s Office, and Bureau of Alcohol, Tobacco, Firearms, and Explosives,” continued U.S. Attorney Shores. “Assistant United States Attorney and Tribal Liaison Shannon Cozzoni is helping to lead that effort for our office. She is an experienced and talented prosecutor who is passionate about this topic and understands the value of community based services to advocate for victims and deter domestic violence.”
U.S. Attorneys’ offices have worked tirelessly over the years to address these legal challenges with tremendous success. The Working Group will share best practices, legal analysis and guidance on prosecuting abusers who unlawfully possess guns, and will advise U.S. Attorneys across the country on outreach to local law enforcement, judges, and nonprofit groups.
Working Group members include:
• Scott W. Brady, U.S. Attorney for the Western District of Pennsylvania
• Robert M. Duncan, Jr., U.S. Attorney for the Eastern District of Kentucky
• Nicola T. Hanna, U.S. Attorney for the Central District of California
• Justin E. Herdman, U.S. Attorney for the Northern District of Ohio
• Erin Nealy Cox, U.S. Attorney for the Northern District of Texas
• Christina E. Nolan, U.S. Attorney for the District of Vermont
• Byung J. Pak, U.S. Attorney for the Northern District of Georgia
• R. Trent Shores, U.S. Attorney for the Northern District of Oklahoma
• Timothy J. Downing, U.S. Attorney for the Western District of Oklahoma