Western District of Oklahoma
Press releases recorded for this federal judicial district.
Former Vance AFB Major Sentenced to Two Years in Federal Prison for Taking Kickbacks Involving Compounding PharmaciesRead the Press Release
OKLAHOMA CITY – ROMEATRIUS MOSS, 40, a nurse and former Air Force Major stationed at Vance Air Force Base in Enid, Oklahoma, was sentenced today to serve 24 months in prison for health care fraud in which she accepted kickbacks for referring TRICARE beneficiaries to pharmacies furnishing compounded drugs, announced U.S. Attorney Timothy J. Downing. Moss was also ordered to pay restitution in the amount of $622,459.00.
According to a felony information filed on September 30, 2019, Moss solicited and received $73,823.06 in return for referring prescriptions for members of the U.S. military to compounding pharmacies that were reimbursed by TRICARE, a health insurance program for military members. Because of resulting cost increases and infringement on patient choice, it is a crime to solicit or receive payments for referrals to health care providers for an item or service that could be paid, in whole or in part, by a federal health care program.
Moss pleaded guilty on October 15, 2019, before U.S. District Judge Patrick R. Wyrick. She admitted that while she was employed in the medical unit at Vance AFB, she gave military members pre-printed prescription pads and induced them to ask their doctors for specific compounded drugs. Moss admitted she then sent the prescriptions or caused them to be sent to specific pharmacies. Moss admitted she was paid a kickback that was a percentage of the gross reimbursement the pharmacies received from TRICARE for filling the prescriptions.
Today, Judge Wyrick sentenced Moss to 24 months in the custody of the Bureau of Prisons, followed by three years of supervised release. Judge Wyrick also ordered Moss to pay restitution to TRICARE in the amount of $622,459.00, the total amount of kickbacks she received in the referral scheme. She was also ordered to forfeit her residence in Enid.
The case is the result of an investigation by the Defense Criminal Investigative Service, the Air Force’s Office of Special Investigations, and the Federal Bureau of Investigation–Oklahoma City Division. Assistant U.S. Attorneys Jessica Perry and Amanda Maxfield Green prosecuted the case.
Reference is made to court filings for further information. To download a photo of U.S. Attorney Downing, click here.
Federal Grand Jury Indicts Oklahoma City Man for Drug and Firearms Offenses Plus Witness TamperingRead the Press Release
OKLAHOMA CITY – JUAN JABARI HOLLIS, 42, of Oklahoma City, has been indicted on drug and firearm related charges in addition to witness tampering, announced U.S. Attorney Timothy J. Downing.
On August 4, 2020, a federal grand jury in the Western District of Oklahoma returned a four-count indictment against Hollis. In Count 1, Hollis is charged with being a felon in possession of a firearm; in Count 2, with possessing methamphetamine with the intent to distribute; and in Count 3, with possessing a firearm in furtherance of drug trafficking. Finally, Count 4 charges Hollis with witness tampering, specifically that he attempted to influence, delay, and prevent the testimony of another person in criminal proceedings against him.
If convicted on Count 1, Hollis faces up to ten years in prison and three years of supervised release. If convicted on Count 2, Hollis could receive a term of imprisonment of up to twenty years in prison and three years of supervised release. Count 3 carries a mandatory term of imprisonment of not less than 5 years, to be served consecutive to any other term of imprisonment, and a term of supervised release of up to 5 years. Finally, if convicted of witness tampering as alleged in Count 4, Hollis could receive a prison term of no more than 20 years and a term of supervised release of no more than 3 years.
This case arises from an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, along with the Oklahoma City Police Department. Assistant U.S. Attorney Nick Coffey is prosecuting the case.
The public is reminded that this charge is merely an allegation and that Hollis is presumed innocent unless and until proven guilty beyond a reasonable doubt. To download a photo of U.S. Attorney Downing, click here.
Federal Bureau of Investigation Arrests Oklahoma City Bank Robbery SuspectRead the Press Release
OKLAHOMA CITY – KIWANIS YOMONE ROBERTS, 23, of Oklahoma City, has been charged and arrested for robbing the Focus Federal Credit Union (FFCU), announced U.S. Attorney Timothy J. Downing.
On July 21, 2020, a federal grand jury in the Western District of Oklahoma indicted Roberts for the FFCU robbery. The indictment alleges that on March 13, 2020, Roberts knowingly took by force, violence, and intimidation money that belonged to the FFCU branch located at 13325 N. MacArthur Blvd. The indictment further alleges the deposits of the FFCU were federally insured at the time of the robbery.
Yesterday, U.S. Magistrate Judge Suzanne Mitchell arraigned Roberts on the indictment in Oklahoma City. If convicted, Roberts faces up to twenty years in prison, three years of supervised release, a fine of $250,000, and mandatory restitution.
This case is the result of an investigation by the Federal Bureau of Investigation Oklahoma City Field Office and the Oklahoma City Police Department. Assistant U.S. Attorney Wilson D. McGarry is prosecuting the case.
The public is reminded that this charge is merely an allegation and that Roberts is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Reference is made to court filings for further information. To download a photo of U.S. Attorney Downing, click here.
Department of Justice Awards $500,000 to Oklahoma City to Provide Housing to Victims of Human TraffickingRead the Press Release
OKLAHOMA CITY – Today, the Department of Justice announced that the City of Oklahoma City received $500,000 from the Department of Justice’s Office of Justice Programs and its component, the Office for Victims of Crime, to provide safe, stable housing and appropriate services to victims of human trafficking.
"Human trafficking is a barbaric criminal enterprise that subjects its victims to unspeakable cruelty and deprives them of the most basic of human needs, none more essential than a safe place to live," said Attorney General William P. Barr. "Throughout this Administration, the Department of Justice has fought aggressively to bring human traffickers to justice and to deliver critical aid to trafficking survivors. These new resources, announced today, expand on our efforts to offer those who have suffered the shelter and support they need to begin a new and better life."
"Human trafficking is one of the most abhorrent crimes ever contemplated by mankind," said U.S. Attorney Downing. "The funds provided by the Department to the City of Oklahoma City will serve as a force multiplier to assist human trafficking efforts in the Western District of Oklahoma, and it will hopefully provide some comfort and solace to its victims."
The grant, awarded to the City of Oklahoma City, will provide six to 24 months of transitional or short-term housing assistance for trafficking victims, including rental, utilities or related expenses, such as security deposits and relocation costs. The grant will also provide funding for support needed to help victims locate permanent housing, secure employment, as well as occupational training and counseling. The City of Oklahoma City is among 73 organizations receiving more than $35 million in OVC grants to support housing services for human trafficking survivors.
"Human traffickers dangle the threat of homelessness over those they have entrapped, playing a ruthless game of psychological manipulation that victims are never in a position to win," said OJP Principal Deputy Assistant Attorney General Katherine T. Sullivan. "These grants will empower survivors on their path to independence and a life of self-sufficiency and hope."
Human trafficking offenses are among the most difficult crimes to identify, and the scope of human trafficking victimization may be much greater than the limited data reflect. A new report issued by the National Institute of Justice, another component of the Office of Justice Programs, found that the number of human trafficking cases captured in police reports may represent only a fraction of all such cases. Expanding housing and other services to trafficking victims remains a top Justice Department priority.
The Office for Victims of Crime, for example, hosted listening sessions and roundtable discussions with stakeholders in the field in 2018 and launched the Human Trafficking Capacity Building Center. From July 2018 through June 2019, 118 OVC human trafficking grantees reported serving 8,375 total clients, including confirmed trafficking victims and individuals showing strong indicators of trafficking victimization.
For a complete list of individual award amounts and jurisdictions that will receive funding, visit: https://www.ojp.gov/sites/g/files/xyckuh241/files/media/document/htvictimsfactheet.pdf. For the national Department of Justice press release, visit: https://www.justice.gov/opa/pr/department-justice-awards-over-35-million-provide-housing-victims-human-trafficking.
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years. To download a photo of U.S. Attorney Downing, click here.
Former Department of Defense Employee Pleads Guilty to Strangulation and Knife Assault while Living OverseasRead the Press Release
An Oklahoma City, Oklahoma man pleaded guilty today in the Western District of Oklahoma for assaulting two neighbors inside their apartment building in Okinawa, Japan, while working for the U.S. Armed Forces overseas as a civilian engineer.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Timothy J. Downing of the Western District of Oklahoma, and U.S. Air Force Office of Special Investigations Commander Brigadier General Terry L. Bullard made the announcement.
Brendan Rowin Figuly, 31, pleaded guilty to two counts of assault resulting in serious bodily injury before U.S. District Court Judge Bernard M. Jones. Sentencing has not yet been scheduled.
As alleged in the government’s previous charging documents, Figuly was living in Okinawa, Japan, in connection with his employment for the U.S. Armed Forces. Figuly was a civilian engineer working at Kadena Air Force Base in Okinawa. On April 11, 2020, Figuly was living in a multi-unit apartment building off-base. That afternoon, he entered the apartment of a female neighbor, E.M., armed with a box cutter knife, and demanded to know where their landlord was, claiming that he wanted to kill the landlord. Figuly then attacked E.M., strangling her until she fell unconscious, cutting her fingers with a knife, and striking her in the face with a baking dish. E.M. fled to her apartment balcony, and Figuly pursued her, breaking the balcony door in the process. E.M.’s husband J.M. then entered the apartment, at which point Figuly threatened to kill J.M. Figuly then assaulted J.M. with a box cutter knife, before J.M. and another neighbor subdued Figuly.
The investigation was conducted by the U.S. Air Force Office of Special Investigations. The prosecution is being handled by Trial Attorney Mona Sahaf of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Jason Harley of the Western District of Oklahoma.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Former Department of Defense Employee Pleads Guilty to Strangulation and Knife Assault While Living OverseasRead the Press Release
OKLAHOMA CITY – An Oklahoma City man pleaded guilty today in the Western District of Oklahoma for assaulting two neighbors inside their apartment building in Okinawa, Japan, while working for the United States Armed Forces overseas as a civilian engineer, announced U.S. Attorney Timothy J. Downing, Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, and Air Force Office of Special Investigations Commander Brigadier General Terry L. Bullard.
Brendan Rowin Figuly, 31, pleaded guilty to two counts of assault resulting in serious bodily injury. For each count of assault resulting in serious bodily injury, Figuly faces a maximum penalty of up to ten years and a fine up to $250,000. Figuly will be sentenced in approximately 90 days.
According to admissions made as part of his plea, Figuly was living in Okinawa, Japan, in connection with his employment for the U.S. Armed Forces. Figuly was a civilian engineer working at Kadena Air Force Base in Okinawa. On April 11, 2020, Figuly was living in a multi-unit apartment building off-base. That afternoon, he entered the apartment of a female neighbor, E.M., armed with a box cutter knife, and demanded to know where their landlord was, claiming that he wanted to kill the landlord. Figuly then attacked E.M., strangling her until she fell unconscious, cutting her fingers with a knife, and striking her in the face with a baking dish. E.M. fled to her apartment balcony, and Figuly pursued her, breaking the balcony door in the process. E.M.’s husband J.M. then entered the apartment, at which point Figuly threatened to kill J.M. Figuly then assaulted J.M. with a box cutter knife, before J.M. and another neighbor subdued Figuly.
The investigation was conducted by the U.S. Air Force Office of Special Investigations. The prosecution is being handled by Assistant U.S. Attorney Jason Harley of the Western District of Oklahoma and Trial Attorney Mona Sahaf of the Criminal Division’s Human Rights and Special Prosecutions Section.
Reference is made to court filings for further information. To download a photo of U.S. Attorney Downing, click here.
Federal Inmate Sentenced to Nearly Five Years in Prison Assault CaseRead the Press Release
OKLAHOMA CITY – ROBERT GONZALEZ, 40, has been sentenced to 57 months in prison for an assault that resulted in serious bodily injury, announced U.S. Attorney Timothy J. Downing.
In September 2019, a federal grand jury indicted Gonzalez for the assault. The indictment alleged Gonzalez assaulted another inmate while serving a term of imprisonment at the Federal Correction Institution (FCI) in El Reno, Oklahoma. He pleaded guilty on October 28, 2019.
Court documents detail that, as a result of the assault, the victim inmate sustained fractures to his left orbit and nasal bone, damage to the retina, and lost consciousness. On Wednesday, July 22, 2020, U.S. District Judge Scott L. Palk sentenced Gonzalez to serve 57 months in prison, followed by three years of supervised release. In announcing the sentence, Judge Palk noted the nature and circumstances of the assault.
Public records further indicate that Gonzalez was convicted in the Southern District of Texas for conspiracy to transport undocumented aliens. When this assault occurred, he was serving a term of imprisonment of 18 months in that case. He was previously scheduled to be released from the custody of the Federal Bureau of Prisons on September 20, 2019.
This case is the result of investigations by FCI El Reno Special Investigative Services and the Federal Bureau of Investigation Oklahoma City Field Office. Assistant United States Attorney Ashley L. Altshuler prosecuted the case.
Reference is made to court filings for further information. To download a photo of U.S. Attorney Downing, click here.
Felon Sentenced to More Than a Decade in Federal Prison for Dealing Heroin While Discharging a FirearmRead the Press Release
OKLAHOMA CITY – TIAHMO LENELL DRAINE, 47, of Oklahoma City, has been sentenced to 130 months in prison for possessing heroin with intent to distribute, being a felon in possession of a firearm, and possessing a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney Timothy J. Downing.
In October 2019, a federal grand jury indicted Draine, and in January 2020 he was convicted after a federal jury trial. During the trial, the government presented evidence that shortly after midnight, on July 3, 2019, a woman called 911. The woman reported she has been chased by an individual driving a gray truck who had shot at her during an altercation that originated at a convenience store. An Oklahoma City Police Officer responded and pursued the truck as it exited I-44, entered a residential neighborhood, and pulled into a yard. The driver, Draine, exited the truck wearing a backpack. He then hid out of view towards the front of the truck. Draine returned, placed the backpack on the driver’s seat, and ultimately followed commands from the officer to walk towards him with his hands up. After law enforcement detained Draine, they located a .40 caliber semi-automatic pistol under the truck. Inside the backpack, law enforcement found heroin, a digital scale, and drug ledgers. An investigating officer returned to the convenience store where the incident originated and located a spent shell casing near the gas pumps. A firearms examiner later determined the .40 caliber found in Draine’s possession fired the shell casing located near the gas pumps.
At a sentencing hearing earlier this week, Senior U.S. District Judge Stephen P. Friot sentenced Draine to serve 130 months in prison, followed by three years of supervised release. The sentence included 70 months on each of the heroine distribution and firearm possession counts to run concurrently, and 60 months for possessing a firearm in furtherance of a drug trafficking crime to run consecutively to the other two counts. In announcing the sentence, Judge Friot took into account the nature and circumstances of the offense and Draine’s criminal history. Public records reflect Draine held felony convictions for Assault and Battery with a Deadly Weapon With Intent to Kill and Domestic Assault and Battery when the incident occurred.
This case is the result of an investigation by the Oklahoma City Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant United States Attorney Ashley L. Altshuler prosecuted the case.
This case is part of Project Safe Neighborhoods and Project Guardian, the Department of Justice’s signature initiatives to reduce gun violence and enforce federal firearms laws. The local implementation of these initiatives is through “Operation 922,” which prioritizes the prosecution of federal gun crimes in connection with domestic violence.
Reference is made to court filings for further information. To download a photo of U.S. Attorney Downing, click here.
Texas Oil and Gas Company and Limited Partnerships to Pay over $488,000 to Settle Trespass Allegations Arising from Unapproved Drilling, Extraction, and Selling of Federal MineralsRead the Press Release
OKLAHOMA CITY – Texas based oil and gas companies, EnerVest Operating, L.L.C., EnerVest Energy Institutional Fund XII-WIB, L.P., EnerVest Energy Institutional Fund XIII-WIB, L.P., EnerVest Energy Institutional Fund XIII-A, L.P., EnerVest Energy Institutional Fund XIII-WIC, L.P., (collectively, "EnerVest") will pay $488,491 to resolve claims related to the alleged improper drilling, extraction, and selling of federal minerals, the Justice Department announced today.
The settlement resolves allegations that between 2014 and 2020, EnerVest drilled a well in Roger Mills County, Oklahoma, and extracted and sold federal minerals in trespass after the expiration of two federal leases ("Federal Property"). In addition to paying monetary trespass damages, the settlement requires EnerVest to (i) abandon its claims of ownership or leasehold interest in the Federal Property; (ii) cease production of oil and gas from the Federal Property; (iii) plug and shut in the well; and (iv) remediate and reclaim the Federal Property.
This case is the result of an investigation by the U.S. Department of Interior, Office of Inspector General. Assistant U.S. Attorneys Rebecca A. Frazier and Ronald Gallegos represented the United States. The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Third Member of Internet Romance Fraud Scheme to Serve 102 Months in Federal PrisonRead the Press Release
Oklahoma City, Oklahoma – NNAMDI FRANKLIN OJIMBA, 36, currently from Chicago, Illinois, has been sentenced to 102 months in federal prison for his role in a fraudulent romance scheme involving victims throughout the United States, announced Timothy J. Downing, U.S. Attorney for the Western District of Oklahoma.
On October 17, 2017, a grand jury indicted Ojimba for conspiracy and wire fraud. According to the indictment, the scheme involved using false profiles to open accounts on online dating websites and then courting victims by pretending to be successful financial advisors or affiliated with charitable causes. Over time, through supposedly romantic relationships, the defendant and others caused victims to share personal information about their finances and then encouraged victims to wire them money on the pretext of managing their investments. The conspirators actually kept the money for personal use. Ojimba was arrested in Chicago in October, 2017. After a jury failed to reach a unanimous decision in October, 2018, Ojimba was re-tried on the conspiracy count in August 2019 and was convicted by a jury. He has been in federal custody since his conviction.
Yesterday, Chief United States Judge Timothy D. DeGiusti sentenced Ojimba to 102 months in prison, followed by three years of supervised release. He was also ordered to pay restitution totaling almost $3.5 million.
Two other participants in the scheme were convicted separately. In 2017, KEN EJIMIFOR EZEAH, 38, of Houston, Texas, was sentenced to 11 years in prison following a plea of guilty. AKUNNA BAIYINA EJIOFOR, 36, also of Houston, was sentenced to a prison term of 7 years after being convicted at trial. For more information, please see https://www.justice.gov/usao-wdok/pr/two-sentenced-11-and-7-years-federal-prison-46-million-internet-romance-fraud.
The case was the result of an investigation by the Oklahoma City office of the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney Timothy W. Ogilvie.
Joint Statement from the United States Attorneys for the Northern, Eastern and Western Districts of Oklahoma on McGirt v Oklahoma Supreme Court RulingRead the Press Release
"As Oklahoma’s United States Attorneys, we are confident tribal, state, local, and federal law enforcement will work together to continue providing exceptional public safety under this new ruling by the United States Supreme Court."
Timothy J. Downing, United States Attorney for the Western District of Oklahoma
Brian J. Kuester, United States Attorney for the Eastern District of Oklahoma
R. Trent Shores, United States Attorney for the Northern District of Oklahoma
Weatherford Man Sentenced to 78 Months in Federal Prison for Abusive Sexual Contact of a Child in Indian CountryRead the Press Release
OKLAHOMA CITY – Earlier today, WILLIAM ART GUOLADDLE, SR., 64, of Weatherford, Oklahoma, was ordered to serve 78 months in federal prison, to be followed by 10 years of supervised release, for abusive sexual contact of a child in Indian Country, announced Timothy J. Downing, United States Attorney for the Western District of Oklahoma.
A federal grand jury indicted Mr. Guoladdle on August 7, 2019, on two counts of aggravated sexual abuse and one count of abusive sexual contact of a child under seven years of age, occurring on Kiowa Tribe land in Comanche County. He pleaded guilty to abusive sexual contact of a child on June 20, 2019, before U.S. District Judge David Russell. At the plea hearing, the defendant admitted to touching the victim’s buttocks through her clothing in a sexual way. At the sentencing hearing today, the Court noted it had considered that the victim’s age and that the victim would have to live with the effects of the defendant’s conduct for the rest of the victim’s life. The Court ordered Mr. Guoladdle to serve 78 months in federal prison, to be followed by 10 years of supervised release.
This case is the result of an investigation by Bureau of Indian Affairs, Office of Justice Services and Lawton Police Department. Assistant U.S. Attorney Jessica L. Cárdenas prosecuted the case.
This case is also part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section of the Department of Justice, 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.justice.gov/psc.
Reference is made to public filings for further information.
Oklahoma City Hospital, Management Company, and Physician Group to Pay $72.3 Million to Settle Federal and State False Claims Act Allegations Arising from Improper Payments to Referring PhysiciansRead the Press Release
OKLAHOMA CITY - Oklahoma Center for Orthopaedic and Multi-Specialty Surgery (OCOM), a specialty hospital in Oklahoma City, Oklahoma, its part-owner and management company, USP OKC, Inc. and USP OKC Manager, Inc. (collectively USP), Southwest Orthopaedic Specialists, PLLC (SOS), an Oklahoma City-based physician group, and two SOS physicians, will pay $72.3 million to resolve allegations under the False Claims Act and the Oklahoma Medicaid False Claims Act of improper relationships between OCOM and SOS, resulting in the submission of false claims to the Medicare, Medicaid and TRICARE programs, the Justice Department announced today.
The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid, and other federally funded programs. The Physician Self-Referral Law, commonly known as the Stark Law, prohibits a hospital from billing Medicare for certain services referred by physicians with whom the hospital has an improper financial arrangement, including the payment of compensation that exceeds the fair market value of the services actually provided by the physician and the provision of free or below-market rent and office staff. Both the Anti-Kickback Statute and the Stark Law are intended to ensure that physicians’ medical judgments are not compromised by improper financial incentives and instead are based on the best interests of their patients.
"Offering illegal financial incentives to physicians in return for patient referrals undermines the integrity of our health care system," said Acting Assistant Attorney General Ethan P. Davis of the Department of Justice Civil Division. "Patients deserve the independent and objective judgment of their health care professionals."
"It is critical that we protect the integrity of federal health care benefit programs," said U.S. Attorney Timothy J. Downing for the Western District of Oklahoma. "Patients deserve care based on good medicine and informed choice, not the corrupting influence of money and other benefits. No matter how complex and intertwined modern healthcare economics become, we are committed to ensuring that untainted care is always provided."
"The Defense Criminal Investigative Service is committed to ensuring that TRICARE, the U.S. military healthcare program, continues to provide safe and superior medical care to America's Warfighters," said Michael C. Mentavlos, Special Agent in Charge, Defense Criminal Investigative Service - Southwest Field Office. "Kickback schemes such as those resolved today, undermine our healthcare system, compromise medical decisions, and waste precious taxpayer dollars needed to provide critical care for our Warfighters, their family members, and military retirees."
"Kickback schemes like this drain valuable resources from the federal and state healthcare systems, which go to our most vulnerable," said Oklahoma Attorney General Mike Hunter. "This settlement is substantial and will hopefully send a clear, concise message to those who want to defraud the system – that we will not tolerate these illegal acts in our state. I am pleased we were able to work with our federal partners to achieve this successful outcome."
The settlement resolves allegations that between 2006 and 2018, OCOM and USP provided improper remuneration to SOS and certain of its physicians in exchange for patient referrals to OCOM in the form of (i) free or below-fair market value office space, employees, and supplies, (ii) compensation in excess of fair market value for the services provided by SOS and certain of its physicians, (iii) equity buyback provisions and payments for certain SOS physicians that exceeded fair market value, and (iv) preferential investment opportunities in connection with the provision of anesthesia services at OCOM. The alleged conduct resulted in the submission of claims for services provided to these illegally referred patients, in violation of the False Claims Act and the Oklahoma Medicaid False Claims Act. The settlement also resolves issues arising out of USP’s preferential offering of investment opportunities to physicians at four surgery facilities in Texas. As a result of this settlement, USP will pay $60.86 million to the United States, $5 million to the State of Oklahoma, and $206,000 to the State of Texas. SOS and two of its physicians, Anthony L. Cruse, D.O. and R.J. Langerman, Jr., D.O., will pay $5.7 million to the United States, and $495,619 to the State of Oklahoma.
Contemporaneous with the civil settlement, OCOM and SOS each entered into five-year Corporate Integrity Agreements (CIAs) with the U.S. Department of Health and Human Services – Office of Inspector General (HHS-OIG). The CIAs require, among other things, that OCOM and SOS each maintain a compliance program and hire an Independent Review Organization to review arrangements entered into by or on behalf of their respective entities. They also increase individual accountability by requiring compliance-related certifications from their key executives.
"Patients rightly expect providers to deliver the best treatment without thought of financial gain," said Miranda L Bennett, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services (HHS). "Working with our Federal and State law enforcement partners we will continue protecting government health program beneficiaries and taxpayers."
The allegations resolved by the settlement were brought in a lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the United States for false claims and to receive a share of any recovery. The whistleblower also alleged claims under the Oklahoma Medicaid False Claims Act. The qui tam case is captioned United States ex rel. Allison v. Southwest orthopaedic Specialists, PLLC, et al., No. CIV-16-569 (W.D. Okla.). The whistleblower share to be awarded in the case has not yet been determined.
These matters were investigated by the U.S. Attorney’s Office for the Western District of Oklahoma, the Civil Division’s Commercial Litigation Branch, and the State of Oklahoma Attorney General’s Office. Investigative assistance was provided by the Office of Inspector General of the Department of Health and Human Services, the Centers for Medicare and Medicaid Services, and the Department of Defense’s Defense Criminal Investigative Service.
The United States’ investigation and resolution of this matter illustrates its emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
California Felon Sentenced to Almost Five Years in Federal Prison for Possessing Handgun at Will Rogers AirportRead the Press Release
OKLAHOMA CITY – THOMAS LU NGUYEN, 36, of Rancho Cucamonga, California, has been sentenced to 57 months in prison for possessing a firearm after having been previously convicted of a felony, announced U.S. Attorney Timothy J. Downing.
On October 16, 2019, Nguyen was charged by indictment in Count 1 for being a felon in possession of firearm, and in Count 2 for entering an airport area in violation of security requirements. The indictment described the firearm as a 9mm semi-automatic handgun.
Today, Nguyen pled guilty to being a felon in possession of a firearm. U.S. District Judge David L. Russell then sentenced Nguyen to 57 months in prison on Count 1, along with three years of supervised release following Nguyen’s term of imprisonment. In announcing the sentence, Judge Russell noted Nguyen’s extensive criminal history and past violent conduct. Count 2 of the Indictment was dismissed in light of Nguyen’s plea to Count 1.
According to evidence presented at sentencing, on October 16, 2019, a TSA Agent discovered a 9mm semi-automatic handgun in Nguyen’s backpack while it was being screened before takeoff at Will Rogers World Airport prior to Nguyen’s scheduled flight to California.
This case is the result of an investigation by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Transportation Security Administration. Assistant U.S. Attorney David P. Petermann prosecuted the case.
Reference is made to court filings for further information. To download a photo of U.S. Attorney Downing, click here.
Payne County Man Sentenced to More Than 10 Years for Possession of Multiple Firearms and AmmunitionRead the Press Release
OKLAHOMA CITY – BRANDON TODD HATCHETT, 46, of Ripley, Oklahoma, has been sentenced to 130 months in prison for possessing seven firearms and ammunition after having been previously convicted of a felony, announced U.S. Attorney Timothy J. Downing.
On June 19, 2019, Hatchett was charged by superseding indictment with one count of being a felon in possession of firearms and one count of being a felon in possession of ammunition. The superseding indictment set forth seven firearms that Hatchett possessed, including two AR-15 style rifles.
On October 13, 2019, Hatchett pled guilty to both counts of the superseding indictment.
On July 1, 2020, U.S. District Judge Timothy D. DeGiusti sentenced Hatchett to 120 months in prison on the firearms count, to be followed by 10 months of imprisonment on the ammunition count. Judge DeGiusti also imposed three years of supervised release.
According to evidence at sentencing, on April 5, 2019, Hatchett pulled up to a residence in Ripley, Oklahoma, armed with an arsenal of weapons and ammunition sitting beside him in the cab of his truck. Hatchett engaged in a confrontation with an individual at the residence, which led to a car chase through Main Street in Ripley. During the chase, Hatchett pulled his truck alongside the passenger side of the other vehicle where he fired multiple rounds from his AR-style rifle into the other vehicle. Shrapnel from one of the rounds struck the driver in the leg. Following the shooting, the Payne County Sheriff’s Department organized a manhunt for Hatchett. He was later arrested by the Logan County Sheriff’s Department. At the time of his arrest, Hatchett had all seven firearms in his possession.
On April 20, 2019, the Payne County Sheriff’s Department learned that Hatchett had purchased additional rounds of ammunition from a Walmart store. Hatchett was again arrested and held pending sentencing on both offenses.
This case is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Payne County Sheriff’s Department, and the Logan County Sheriff’s Department. Assistant U.S. Attorneys Wilson D. McGarry and Lori Hines prosecuted the case.
McLoud Man Pleads Guilty to Unlawfully Possessing a Fully Automatic MachinegunRead the Press Release
OKLAHOMA CITY – Christopher Steven Ledbetter, 29, of McLoud, Oklahoma, has pled guilty to unlawfully possessing a fully automatic machinegun, announced U.S. Attorney Timothy J. Downing.
According to an affidavit in support of a criminal complaint, in March 2020, the Federal Bureau of Investigation (FBI) learned that Ledbetter might be in possession of a fully automatic machinegun. The FBI then reviewed publicly available materials on the internet associated with Ledbetter that depicted Ledbetter on multiple occasions shooting what appeared to be a fully automatic machinegun. The affidavit further indicates on June 4, 2020, the FBI encountered Ledbetter in Oklahoma City driving a 2017 Jeep Wrangler vehicle. In that vehicle, the FBI discovered a fully automatic AK-47 style carbine machinegun.
Federal law prohibits the possession, except under limited circumstances, of a fully automatic machinegun as defined in the National Firearms Act. The affidavit further indicates that the Bureau of Alcohol, Tobacco, Firearms and Explosives searched its federal licensing system. That search determined that Ledbetter does not have the required licenses to possess a machinegun.
Today, Ledbetter pleaded guilty to possessing the automatic machinegun in violation of federal law. At sentencing, Ledbetter faces a maximum penalty of ten years in prison, three years of supervised release, and a $250,000.00 fine. Sentencing will take place in approximately 90 days.
This case is a result of an investigation by the Federal Bureau of Investigation Oklahoma City Field Office, with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives Dallas Field Division, and the Oklahoma Highway Patrol, along with other law enforcement partners. Assistant U.S. Attorneys Matt Dillon and Jessica Perry are prosecuting the case.
Reference is made to court filings for further information. To download a photo of U.S. Attorney Downing, click here.
Edmond Man Pleads Guilty to Smuggling Firearms to the Middle EastRead the Press Release
OKLAHOMA CITY – RANDY LEW WILLIAMS, 57, of Edmond, Oklahoma, entered a guilty plea to illegally shipping firearms to the Middle East and two other firearms violations, announced U.S. Attorney Timothy J. Downing.
On June 1, 2020, an Information was filed that charged Williams with violating the Arms Export Control Act, making a false statement to a firearms dealer, and possession of an unregistered firearm. According to an affidavit filed in support of a criminal complaint filed on March 3, 2020, the Federal Bureau of Investigation (FBI) Legal Attaché in Abu Dhabi, United Arab Emirates (UAE) notified the FBI Oklahoma City Field Office that a FedEx shipment had been seized in Dubai, UAE, on December 19, 2018. The shipment contained multiple Glock pistols and firearms parts, and shipment records indicated the shipment was sent from Williams, at an address in Oklahoma City. Records also indicated the shipment contained tools and that the intended recipient was located in Sulaymaniyah, Iraq. FBI authorities later learned that between January 2018 and October 2018, Williams received approximately $12,761.00 in wire transfers from Sweden. Williams did not have a Federal Firearms License (FFL) from the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) or authority from the Department of Defense to export defense articles (i.e., weapons) outside the United States.
Williams was also charged with knowingly making a false and fictitious statement to a firearms dealer in connection to his acquisition of three Glock pistols and two Glock pistol frames and was in possession of a 5.56 caliber rifle that had a barrel of less than 16 inches.
Today, Williams pleaded guilty to all three counts charged in the Information. At sentencing, Williams faces up to twenty years in prison for the Arms Export Control Act violation and up to ten years in prison on each of the other two counts. Sentencing will take place in approximately ninety days.
This case is a result of an investigation by the Federal Bureau of Investigation Oklahoma City Field Office, the Bureau of Alcohol, Tobacco, Firearms, and Explosives Dallas Field Division, and the U.S. Department of Homeland Security Investigations, with assistance from the U.S. Customs and Border Patrol, the U.S. Department of State, the U.S. Postal Inspection Service, the Oklahoma City Police Department, and the Edmond Police Department. Assistant U.S. Attorneys Matt Dillon and Mark Stoneman prosecuted the case.
Reference is made to court filings for further information. To download a photo of U.S. Attorney Downing, click here.
Oklahoma City Woman Sentenced to Almost Thirty Years in Federal Prison for Her Part in a Sprawling Drug ConspiracyRead the Press Release
OKLAHOMA CITY – TARA LYNETTE HUMPHRIES, 38, of Oklahoma City, Oklahoma, has been sentenced to 352 months in prison for possessing methamphetamine with intent to distribute, as well as possessing firearms in furtherance of a drug-trafficking crime, announced U.S. Attorney Timothy J. Downing.
Humphries was arrested on May 8, 2019, after law enforcement observed multiple drug transactions at her residence in southwest Oklahoma City. A search warrant was subsequently executed on Humphries’ home, which resulted in the seizure of over 68 pounds of methamphetamine, more than $95,000 in cash, and thirteen firearms. A shrine to Santa Muerte, the patron saint of drug traffickers, was also located inside the residence. According to public records, Humphries arrest came less than six months after her release from state prison, where she was serving sentences for accessory to murder and kidnapping.
Three other individuals—Crystal Rodriguez, Cheyenne Delodge, and Aimee Salem—were also arrested in connection with the illicit activity taking place at the residence. All four women have since pled guilty to both possession of methamphetamine with intent to distribute and possession of firearms in furtherance of a drug-trafficking crime.
Today, U.S. District Judge Patrick R. Wyrick sentenced Humphries to 292 months in prison on the drug count, to be followed by 60 months of imprisonment on the firearm count. Judge Wyrick also imposed five years of supervised release. Judge Wyrick had previously sentenced Delodge to 210 months of incarceration, and Salem to 120 months of incarceration. Rodriguez has yet to be sentenced.
This case is the result of an investigation by the Oklahoma City Police Department and the Federal Bureau of Investigation—Oklahoma City Field Office, with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Drug Enforcement Administration, and the U.S. Marshals Service. Assistant U.S. Attorneys David McCrary and Jason Harley prosecuted the case.
This case is part of the work of the Organized Crime Drug Enforcement Task Forces, the Department of Justice’s signature initiatives to address and reduce drug-related criminal activity.
Reference is made to court filings for further information. To download a photo of U.S. Attorney Downing, click here.
Doctor Charged with Illegally Distributing Controlled Substances Which Resulted in the Death of Three PatientsRead the Press Release
OKLAHOMA CITY – A federal grand jury has returned an indictment involving the illegal distribution of opioids and other controlled substances, announced Timothy J. Downing, United States Attorney for the Western District of Oklahoma.
On June 18, 2020, the grand jury charged DONALD HYUNGJOON KIM, M.D., 53, for distributing opioids and other controlled substances illegally. In 2018, the Oklahoma City DEA District Office began to investigate the prescription writing of Dr. Kim, who practiced in Oklahoma City. The indictment alleges that from July 1, 2015, to October 12, 2018, Dr. Kim committed 154 separate counts of distributing controlled substances—including Schedule II opioids such as oxycodone, oxycontin, and fentanyl, as well as other controlled substances—outside the usual course of professional medical practice and without legitimate medical purpose. The indictment also alleges that his criminal distribution of these drugs resulted in three patient deaths.
If convicted of distributing controlled substances illegally, Dr. Kim could be imprisoned for up to twenty years. If convicted of any of the three distribution counts alleged to have resulted in deaths, however, he would face a sentence of not less than twenty years and up to life. Any of these counts could result in a fine of up to $1,000,000 and a term of supervised release of at least three years.
This case is the result of an investigation by the Drug Enforcement Administration, the Oklahoma Bureau of Narcotics, the Defense Criminal Investigative Service, and the Consumer Protection Branch of the US Department of Justice. Assistant U.S. Attorneys David P. Petermann, Matthew P. Anderson, and Consumer Protection Branch Criminal Division Attorney Donald Lorenzen are prosecuting the case.
The public is reminded these charges are merely accusations and that Dr. Kim is presumed innocent unless proven guilty beyond a reasonable doubt. Reference is made to court filings for further information.
Two-Month Armed Bank Robbery Spree Results in Three Life SentencesRead the Press Release
OKLAHOMA CITY – DWAYNE EDWARD RASMUSSEN, 56, of Oklahoma City, has been sentenced to three life sentences for committing three bank robberies in Oklahoma City and Chickasha, announced U.S. Attorney Timothy J. Downing.
"We will continue to bring charges against perpetrators of violence who violate federal law," said U.S. Attorney Downing. "Through this case and others like it, the Department of Justice is deterring future violence, protecting those in our communities, and safeguarding the integrity of financial systems in the United States. We hope that today’s sentence serves as a reminder to folks to think twice before robbing a federally insured bank."
"Bank robbery is a serious violent crime which is aggressively investigated," said Melissa Godbold, Special Agent in Charge of the FBI's Oklahoma City Field Office. "The FBI and our law enforcement partners will continue to work closely together to defend our communities against those who commit violent crime."
On December 4, 2019, Rasmussen was charged by superseding indictment with four counts of bank robbery. According to evidence at trial, Rasmussen robbed three banks in the course of two months. Mark Drew Wilson, Rasmussen’s accomplice for the robberies, testified to driving the getaway vehicle and the preparation for each robbery. Evidence at trial also showed that Rasmussen wore gloves and disguised his appearance to avoid apprehension during the commission of the robberies. Bank surveillance video and identifications by bank employees also tied Rasmussen to each bank robbery. In the robberies, Rasmussen used the same terminology demanding "100s and 50s," and threatened, "That’s not enough. Give me all your money." During the trial, evidence showed it appeared Rasmussen used a firearm during the commission of the bank robberies.
On January 23, 2020, after a six-day jury trial, the jury found Rasmussen guilty of three counts of bank robbery. The jury acquitted him on one bank-robbery count.
Today, U.S. District Judge Robin J. Cauthron sentenced Rasmussen to life in prison on each of the three bank robbery counts. In announcing the sentence, Judge Cauthron noted the impact on victims of Rasumssen’s conduct. Judge Cauthron also ordered that those three sentences run concurrent to each other. Judge Cauthron also ordered Rasmussen to pay $37,784.00 in restitution, joint and several with the restitution imposed against Mark Drew Wilson, the getaway driver. On February 26, 2020, Wilson was sentenced to 30 months in prison for conspiracy to commit bank robbery.
This case is the result of an investigation by the FBI—Oklahoma City Field Office, the Oklahoma City Police Department, the Yukon Police Department, and the Chickasha Police Department. Assistant U.S. Attorneys Wilson D. McGarry and Mary E. Walters prosecuted the case.
Reference is made to court filings for further information. To download a photo of U.S. Attorney Downing, click here.
Inmate Serving State Sentence for Murder Charged with Running Sprawling Drug Conspiracy from PrisonRead the Press Release
OKLAHOMA CITY – An inmate serving a thirty-five year state prison sentence for second-degree murder has been charged with running a large-scale drug trafficking operation from his prison cell, announced U.S. Attorney Timothy J. Downing.
On June 4, 2020, a federal grand jury indicted Richard Leroy, a/k/a "Solo," 33, of eight counts of possessing methamphetamine with intent to distribute and one count of a drug conspiracy. Leroy, who was incarcerated at the Davis Correctional Facility in Holdenville, Oklahoma, is alleged to have controlled his drug conspiracy through the use of contraband cell phones. Leroy was arraigned on these charges today in federal court in Oklahoma City.
Specifically, the indictment alleges that over a two-year period, Leroy used contraband cell phones to coordinate both the acquisition and distribution of large amounts of methamphetamine and heroin. He accomplished this by recruiting and using non-incarcerated co-conspirators to serve as his de facto presence on the streets. The indictment lays out eight separate instances during the period of the conspiracy in which Leroy is alleged to have possessed—through his third-party couriers—significant amounts of either methamphetamine or heroin. All told, the indictment alleges that Leroy was running a drug conspiracy capable of moving hundreds of pounds of controlled substances each year—all without ever leaving his prison cell.
If convicted, Leroy faces a maximum penalty of life in federal prison on each count, along with life of supervised release, and a fine of up to $10,000,000.
This case is the result of a joint investigation by the Federal Bureau of Investigation, the Drug Enforcement Administration, Homeland Security Investigations, the Oklahoma City Police Department, the District 21 Task Force, the Oklahoma Bureau of Narcotics, and the Oklahoma Department of Corrections. Assistant U.S. Attorney David McCrary is prosecuting the case.
This case is part of the work of the Organized Crime Drug Enforcement Task Forces, the Department of Justice’s signature initiatives to address and reduce drug-related criminal activity.
The public is reminded that charges are merely allegations, and Leroy is presumed innocent unless and until proven guilty beyond a reasonable doubt. Reference is made to court filings for further information. To download a photo of U.S. Attorney Downing, click here.
Kickapoo Woman Sentenced to 210 Months in Federal Prison for Felony Murder for Grandson’s Death after Being Left in Car in Casino Parking Lot in JulyRead the Press Release
OKLAHOMA CITY – ALANNA JEAN ORR, 50, of Oklahoma City, was sentenced today by U.S. District Judge Scott Palk to serve 210 month in federal prison for causing the death of her five-year-old grandson by leaving him in a hot car in a casino parking lot on a hot summer afternoon with no air conditioning, announced U.S. Attorney Timothy J. Downing. In addition, Orr was ordered to serve three years of supervised release upon release from prison and pay $3,877.31 in restitution for funeral expenses to the Oklahoma Crime Victims Compensation Board.
According to an affidavit in support of a search warrant signed in Oklahoma County District Court on July 17, 2018, Orr was caring for her five-year-old grandson on June 21, 2018, when she went to the Kickapoo Casino in Harrah, Oklahoma. Orr arrived at the casino at approximately 1:23 p.m., and she left the casino at approximately 7:28 p.m. During this time Orr’s grandson remained in the car and the high temperature in Harrah that day approached ninety degrees.
Approximately fifteen minutes after Orr left the casino, according to the affidavit, she called 911 and reported her grandson had choked and was not breathing. Harrah police officers met Orr at the Harrah Police Department and attempted to resuscitate the child, but noted that that rigor mortis had already begun.
On April 17, 2019, a federal grand jury returned an indictment that charged Orr with second degree felony murder by child neglect in Indian Country. In particular, it alleged Orr, who is a member of the Kickapoo Tribe, caused the death of a child by willfully failing to provide adequate shelter and supervision while she was responsible for the child’s health, safety, and welfare. This crime is subject to federal jurisdiction because the defendant and victim are Indians and the offense took place on tribal trust land.
On July 30, 2019, Orr pleaded guilty to the indictment. During the plea hearing before Judge Palk, she admitted she caused her grandson’s death by leaving him unattended on a hot summer afternoon in the back seat of her car with no air conditioning.
Judge Palk immediately remanded Orr into custody at the hearing today to begin serving her sentence.
This case is a result of an investigation by the Harrah Police Department, the Kickapoo Tribal Police Department, the Oklahoma District 23 Drug Task Force, the District Attorney’s Offices for Cleveland, Lincoln, and Pottawatomie Counties, and the FBI Oklahoma City Division. Assistant U.S. Attorneys Mark R. Stoneman and Mary E. Walters prosecuted this case, with assistance from the Cleveland County Assistant District Attorney’s Office.
Reference is made to public filings for more information. To download a photo of U.S. Attorney Downing, click here.
Former Owner of Oil Field Construction Business Sentenced for Tax EvasionRead the Press Release
OKLAHOMA CITY – MICKEY ALVIN YOUNG, of Chico, Texas, has been sentenced to five years of probation for evading personal federal income taxes for the 2013 tax year, announced U.S. Attorney Timothy J. Downing. He will spend the first six months in home confinement and must pay $1,197,616.46 in restitution to the IRS.
A federal grand jury indicted Young on December 4, 2018, on two counts of tax evasion. According to the indictment, Young operated Mickey Young Construction, a sole proprietorship that built concrete pits to hold millings at oil and gas drilling sites. Evidence in the case showed that the business had gross receipts of more than $9 million in 2012 and more than $6 million in 2013. Young was required to report income from his business on his personal federal income tax return. He was charged with under-reporting his income in both 2012 and 2013 by treating money that he used for personal purposes as deductible business expenses of Mickey Young Construction. Documents filed in the case showed he improperly treated hundreds of thousands of dollars in each year as business expenses.
A trial in July 2019 resulted in a mistrial after a jury was unable to reach a unanimous verdict on either count. The court set the case for re-trial, but on January 30, 2020, Young pleaded guilty to the felony of tax evasion for the 2013 tax year. Pursuant to a plea agreement, the government moved to dismiss the charge for 2012.
On June 10, 2020, U.S. District Judge Robin J. Cauthron sentenced Young to five years of probation, with the first six months to be served in home confinement. While recognizing the seriousness of the crime, she explained that this sentence is based in part on the dangers that Covid-19 could pose to Young if he were incarcerated. She also ordered Young to pay $1,197,616.46 in restitution, which represents unpaid personal federal income taxes for 2011, 2012, and 2013.
This case is the result of an investigation by the Internal Revenue Service—Criminal Investigations, with assistance from the U.S. Secret Service. Assistant U.S. Attorneys Scott E. Williams and Amanda Green prosecuted the case.
Reference is made to public filings for more information. To download a photo of U.S. Attorney Downing, click here.
McLoud Man Arrested for Unlawfully Possessing a Fully Automatic Machinegun in Violation of Federal LawRead the Press Release
OKLAHOMA CITY – Christopher Steven Ledbetter, 29, of McLoud, Oklahoma, has been arrested and charged with unlawfully possessing a fully automatic machinegun, announced U.S. Attorney Timothy J. Downing.
According to an affidavit in support of a criminal complaint, in March 2020, the Federal Bureau of Investigation (FBI) learned that Ledbetter might be in possession of a fully automatic machinegun. The FBI then reviewed publicly available materials on the internet associated with Ledbetter that depicted Ledbetter on multiple occasions shooting what appeared to be a fully automatic machinegun. The affidavit further indicates yesterday the FBI encountered Ledbetter in Oklahoma City driving a 2017 Jeep Wrangler vehicle. In that vehicle, the FBI discovered a fully automatic AK-47 style carbine machinegun.
Federal law prohibits the possession, except under limited circumstances, of a fully automatic machinegun as defined in the National Firearms Act. The affidavit further indicates that the Bureau of Alcohol, Tobacco, Firearms and Explosives searched its federal licensing system. That search determined that Ledbetter does not have the required licenses to possess a machinegun.
Today, Ledbetter made an initial appearance before U.S. Magistrate Judge Suzanne Mitchell in Oklahoma City. Judge Mitchell ordered Ledbetter be detained pending further proceedings in the case.
If found guilty, Ledbetter faces a maximum penalty of ten years in prison, three years of supervised release, and a $250,000.00 fine.
This case is a result of an investigation by the Federal Bureau of Investigation Oklahoma City Field Office, with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives Dallas Field Division, and the Oklahoma Highway Patrol, as referenced in the affidavit, along with other law enforcement partners. Assistant U.S. Attorneys Matt Dillon and Jessica Perry are prosecuting the case.
The public is reminded that charges are merely allegations, and Ledbetter is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Reference is made to public filings for more information.
Three Men Charged in Separate and Unrelated Bank Robbery CasesRead the Press Release
OKLAHOMA CITY – Three men have been charged in separate and unrelated bank robbery cases, announced Timothy J. Downing, United States Attorney for the Western District of Oklahoma.
On June 3, 2020, a federal grand jury indicted Keith Lamar Carter, 37, of Oklahoma City, for bank robbery. The indictment alleges that on December 23, 2019, Carter entered Credit Union One of Oklahoma, located at 3300 N. Lincoln Boulevard, Oklahoma City, Oklahoma, and handed a demand note to a teller, who provided money to Carter. He then fled on a BMX style bicycle. After bank surveillance photos were published in the media and additional investigation was conducted, law enforcement received information that pointed to Carter. On February 13, 2020, he was charged by criminal complaint and arrested on February 25, 2020. If convicted, Carter faces a maximum penalty of twenty years in prison, three years of supervised release, a fine of up to $250,000, and restitution. Assistant U.S. Attorneys Ashley Altshuler and Stanley West are prosecuting the case.
On June 3, 2020, a federal grand jury indicted Brandon Scott Newberry, 39, of Ada, of bank robbery. The indictment alleges that on May 12, 2020, Newberry entered City National Bank and Trust, located at 9011 NE 23rd Street, Oklahoma City, Oklahoma and that he handed a demand note to a teller, who provided money to Newberry. On May 15, 2020, law enforcement arrested Newberry based on an arrest warrant that arose out of a criminal complaint. If convicted, Newberry faces a maximum penalty of twenty years in prison, three years of supervised release, a fine of up to $250,000, and restitution. Assistant U.S. Attorney Stanley West is prosecuting this case.
On June 3, 2020, a federal grand jury indicted John Scott Brooks, 36, of Lawton, for bank robbery. The indictment alleges that on March 23, 2020, Brooks robbed the Southwest Oklahoma Federal Credit Union (SOFCU), located at 6714 West Gore Boulevard, Lawton, Oklahoma, and that he used a fake bomb during the robbery. Law enforcement had previously arrested Brooks on April 2, 2020 for the robbery. If convicted on Count 1, Brooks faces a maximum penalty of twenty years in prison, three years of supervised release, a fine of up to $250,000, and restitution. In Count 2 of the indictment, Brooks is charged with conveying a bomb threat during the robbery. If convicted on Count 2, Brooks faces a maximum penalty of up to a 10-year sentence, three years of supervised release, and a fine of up to $250,000. Assistant U.S. Attorney Edward J. Kumiega is prosecuting the case.
These cases are the result of investigations by the Federal Bureau of Investigation Oklahoma City Field Office, the Lawton Police Department, and the Oklahoma City Police Department.
Reference is made to court filings for further information. An indictment is only a charge and is not evidence of guilt. Each defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt. To download a photo of U.S. Attorney Downing, click here.
Former President of First Mortgage Company Charged with 24 Counts of Financial FraudRead the Press Release
OKLAHOMA CITY – Yesterday, a federal grand jury returned a 24-Count Indictment charging Ronald J. McCord, 69, of Oklahoma City, Oklahoma, with defrauding two locally-based banks, Fannie Mae, and others, announced Timothy J. Downing, United States Attorney for the Western District of Oklahoma. The charges include bank fraud, money laundering, and making a false statement to a financial institution.
McCord was the former President of First Mortgage Company, LLC ("FMC"), an Oklahoma City-based mortgage lending and loan servicing company. The Indictment alleges a broad range of fraudulent conduct spanning approximately three years.
McCord is charged in Counts 1 through 7 with defrauding Spirit Bank ("Spirit") and Citizens State Bank ("Citizens")—two state-chartered financial institutions—as well as their respective residential mortgage subsidiaries, American Southwest Mortgage Corporation ("Mortgage Corp.") and American Southwest Mortgage Funding Corporation ("Funding Corp."). According to the Indictment, in approximately June 2016, an independent audit discovered that McCord had sold more than $14,100,000.00 in Spirit/Mortgage Corp. and Citizens/Funding Corp. loans "out of trust" by failing to repay Spirit/Mortgage Corp. when certain Spirit/Mortgage Corp.-initiated loans were refinanced or otherwise paid off. At the time of this discovery, FMC carried outstanding balances of about $200,000,000.00 and $140,000,000.00 on the Spirit/Mortgage Corp. and Citizens/Funding Corp. lines of credit, respectively.
According to the Indictment, this discovery prompted further internal review. An internal audit revealed that McCord had misappropriated additional Spirit/Mortgage Corp. and Citizens/Funding Corp. loans by: (1) using FMC’s warehouse line of credit with (i.e., obtaining mortgage loans from) Spirit/Mortgage Corp. or Citizens/Funding Corp., selling those Spirit/Mortgage Corp. or Citizens/Funding Corp. loans to Fannie Mae, then resubmitting the loan documents to Spirit/Mortgage Corp. or Citizens/Funding Corp. to receive additional money from the Spirit/Mortgage Corp. or Citizens/Funding Corp. line of credit; (2) using FMC’s warehouse line of credit with Spirit/Mortgage Corp. or Citizens/Funding Corp. to refinance the resulting loans without repaying Spirit/Mortgage Corp. or Citizens/Funding Corp. the originally loaned funds; (3) using FMC’s Spirit/Mortgage Corp. or Citizens/Funding Corp. line of credit to fund mortgages to borrowers, receiving payments from those borrowers, but never repaying Spirit/Mortgage Corp. or Citizens/Funding Corp.; (4) obtaining funds from Spirit/Mortgage Corp. or Citizens/Funding Corp. for loans that never closed, then failing to return the funds to Spirit/Mortgage Corp. or Citizens/Funding Corp.; and (5) using FMC’s warehouse lines of credit with Spirit/Mortgage Corp. and Citizens/Funding Corp. to "double fund" loans by obtaining funds from both financial institutions to fund the same loans. The Indictment alleges that McCord’s actions involved Spirit/Mortgage Corp. and Citizens/Funding Corp. loans that totaled approximately $40,000,000.00, in addition to the more than $14,100,000.00 in Spirit/Mortgage and Citizens/Funding Corp. loans that McCord had sold out of trust.
The Indictment further alleges that, upon learning of McCord’s conduct, Spirit/Mortgage Corp. and Citizens/Funding Corp. terminated future warehouse lending to FMC, and instituted new notification requirements that required McCord to assign FMC-funded mortgages to Spirit/Mortgage Corp. and Citizens/Funding Corp., to ensure that the title companies handling those mortgages sent payoffs directly to the banks. Though McCord filed the assignments as required, his employees contacted the title companies handling the mortgages and directed payments to FMC, not Spirit/Mortgage Corp. and Citizens/Funding Corp. McCord continued to collect loan payoffs without repaying Spirit/Mortgage Corp. and Citizens/Funding Corp. He then signed releases on the assigned mortgages after receiving the payoffs, subjecting the properties to potential foreclosure should Spirit/Mortgage Corp. or Citizens/Funding Corp. try to collect payments on the mortgages, to which they held title.
According to Count 8 of the Indictment, Spirit/Mortgage Corp. and Citizens/Funding Corp.’s refusal to fund new FMC mortgages prompted McCord to seek out a new warehouse lender. In early 2017, McCord began negotiating with CapLOC, LLC, a North Carolina-based mortgage lending business, and offered to sell FMC’s mortgage lending business in exchange for quick funding from CapLOC. In the course of those negotiations, McCord made false statements and representations to obtain CapLOC funds. McCord then used the money to repay Spirit/Mortgage Corp. part of his outstanding $40,000,000.00 debt.
Finally, the Indictment alleges that, in 2017, FMC serviced approximately 12,000 loans worth a total of approximately $1,800,000,000.00 for the Federal National Mortgage Association ("Fannie Mae"). Counts 9 through 24 of the Indictment allege that McCord defrauded Fannie Mae by diverting escrow monies intended to pay homeowners’ taxes, insurance, principal, and interest, to cover FMC’s operating expenses. As a result, McCord bounced checks to more than sixty taxing authorities, and borrowers throughout the Oklahoma City area and elsewhere missed making their tax payments. The Indictment further alleges that McCord laundered the stolen escrow monies by using the funds to write himself checks, pay more than half the purchase price of his son’s $900,000.00 Oklahoma City home, and build a custom vacation home in Colorado.
With regard to the bank fraud and false statement to a financial institution charges in the Indictment, McCord faces up to 30 years in prison and a fine of up to $1,000,000.00 on each count. He also faces up to 10 years in prison and a $250,000 .00 fine on to each of the money laundering counts. Furthermore, the Indictment seeks forfeiture from McCord in the amount of the proceeds of the fraudulent schemes and in the amount of the property involved in the offenses.
This case is the result of an investigation by the Federal Housing Finance Agency Office of the Inspector General, Federal Deposit Insurance Corporation Office of Inspector General, and the Federal Bureau of Investigation Oklahoma City Field Office. It is being prosecuted by Assistant U.S. Attorney Julia E. Barry.
Reference is made to the Indictment and other public filings for further information. An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt. To download a photo of U.S. Attorney Downing, click here.
Oklahoma Contractors to Pay $2.8 Million to Settle False Claims Act Allegations Concerning Fraudulently Obtained Small Business ContractsRead the Press Release
OKLAHOMA CITY – Tulsa, Oklahoma-based contractor the Ross Group Construction Corporation (Ross Group), and its corporate affiliates, have agreed to pay over $2.8 million to settle allegations that they violated the False Claims Act by improperly obtaining federal set-aside contracts reserved for disadvantaged small businesses, the Justice Department announced today.
"Small business set-aside contracts provide opportunities for small businesses to participate in federal contracting and gain valuable experience to help them compete for future economic opportunities," said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. "We will pursue those who knowingly obtain set-aside contracts to which they are not entitled and thereby prevent deserving small businesses from receiving the assistance that Congress intended."
To qualify as a small business for purposes of U.S. Small Business Administration (SBA) programs, companies must meet defined eligibility criteria, including requirements concerning size, ownership, and operational control. The settlement with Ross Group resolves allegations that the company fraudulently induced the government to award certain small business set-aside contracts to several affiliated entities that did not meet eligibility requirements. The United States alleged that Ross Group created two companies, PentaCon LLC and C3 LLC, to obtain small business set-aside contracts for which Ross Group itself was ineligible. The United States further alleged that Ross Group maintained operational control over the day-to-day and long-term management decisions of the two purported small businesses, including controlling their financial affairs and business operations, and that, as a result, neither PentaCon nor C3 satisfied the size and eligibility requirements to participate in the set-aside programs. Ross Group, PentaCon, and C3 allegedly concealed their affiliation from the United States and knowingly misrepresented the eligibility of PentaCon and C3 for the set-aside contracts.
"It is critical that we protect the integrity of federal government contract programs so that taxpayer money goes only to those who legitimately qualify for assistance," said U.S. Attorney Timothy J. Downing for the Western District of Oklahoma. "We will continue to hold accountable those who make false statements to take unfair advantage of programs for which they would not otherwise qualify, because it deprives legitimate applicants from obtaining these necessary benefits. I want to specifically thank the Defense Criminal Investigative Service for their outstanding and thorough investigative work in this case."
"SBA’s preferential contracting programs are intended to promote development of eligible small businesses," said Small Business Administration Inspector General Hannibal "Mike" Ware. "OIG will continue to work with its law enforcement partners to identify, investigate, and pursue people and businesses who abuse these programs by trying to participate through front companies. I want to thank the Department of Justice and the other Federal agencies involved for their dedication to pursuing justice in this case."
"This settlement highlights the commitment of the Defense Criminal Investigative Service (DCIS) and its law enforcement partners to protect the integrity of the Department of Defense (DoD) contracting process," said Michael Mentavlos, Special Agent in Charge of the DCIS Southwest Field Office. "DCIS will continue to investigate fraud and corruption targeting DoD programs by pursuing all available remedies possible."
The settlement with Ross Group and its corporate affiliates resolves a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The civil lawsuit was filed in federal district court in the Western District of Oklahoma and is captioned United States ex rel. Southwind Construction Services, LLC v. The Ross Group Construction Corporation, et al., Case No. 15-0102-R (W.D. Okla.). As part of today’s resolution, the whistleblower will receive approximately $520,000.
The settlement is the result of a coordinated effort among the Civil Division’s Commercial Litigation Branch, the United States Attorney’s Office for the Western District of Oklahoma, DCIS, the Inspector General Offices of the SBA, General Services Administration, and the Department of Veterans Affairs, and the Army Criminal Investigation Division Major Procurement Fraud Unit.
To learn more about the Civil Division, please visit https://www.justice.gov/civil. To learn more about the U.S. Attorney’s Office for Western District of Oklahoma, please visit https://www.justice.gov/usao-wdok. To download a photo of U.S. Attorney Downing, click here.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Oklahoma Contractors to Pay $2.8 Million to Settle False Claims Act Allegations Concerning Fraudulently Obtained Small Business ContractsRead the Press Release
Tulsa, Oklahoma-based contractor the Ross Group Construction Corporation (Ross Group), and its corporate affiliates, have agreed to pay over $2.8 million to settle allegations that they violated the False Claims Act by improperly obtaining federal set-aside contracts reserved for disadvantaged small businesses, the Justice Department announced today.
“Small business set-aside contracts provide opportunities for small businesses to participate in federal contracting and gain valuable experience to help them compete for future economic opportunities,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “We will pursue those who knowingly obtain set-aside contracts to which they are not entitled and thereby prevent deserving small businesses from receiving the assistance that Congress intended.”
To qualify as a small business for purposes of U.S. Small Business Administration (SBA) programs, companies must meet defined eligibility criteria, including requirements concerning size, ownership, and operational control. The settlement with Ross Group resolves allegations that the company fraudulently induced the government to award certain small business set-aside contracts to several affiliated entities that did not meet eligibility requirements. The United States alleged that Ross Group created two companies, PentaCon LLC and C3 LLC, to obtain small business set-aside contracts for which Ross Group itself was ineligible. The United States further alleged that Ross Group maintained operational control over the day-to-day and long-term management decisions of the two purported small businesses, including controlling their financial affairs and business operations, and that, as a result, neither PentaCon nor C3 satisfied the size and eligibility requirements to participate in the set-aside programs. Ross Group, PentaCon, and C3 allegedly concealed their affiliation from the United States and knowingly misrepresented the eligibility of PentaCon and C3 for the set-aside contracts.
“It is critical that we protect the integrity of federal government contract programs so that taxpayer money goes only to those who legitimately qualify for assistance,” said U.S. Attorney Timothy J. Downing for the Western District of Oklahoma. “We will continue to hold accountable those who make false statements to take unfair advantage of programs for which they would not otherwise qualify, because it deprives legitimate applicants from obtaining these necessary benefits. I want to specifically thank the Defense Criminal Investigative Service for their outstanding and thorough investigative work in this case.”
“SBA’s preferential contracting programs are intended to promote development of eligible small businesses,” said Small Business Administration Inspector General Hannibal “Mike” Ware. “OIG will continue to work with its law enforcement partners to identify, investigate, and pursue people and businesses who abuse these programs by trying to participate through front companies. I want to thank the Department of Justice and the other federal agencies involved for their dedication to pursuing justice in this case.”
“This settlement highlights the commitment of the Defense Criminal Investigative Service (DCIS) and its law enforcement partners to protect the integrity of the Department of Defense (DoD) contracting process,” said Michael Mentavlos, Special Agent in Charge of the DCIS Southwest Field Office. “DCIS will continue to investigate fraud and corruption targeting DoD programs by pursuing all available remedies possible.”
The settlement with Ross Group and its corporate affiliates resolves a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The civil lawsuit was filed in federal district court in the Western District of Oklahoma and is captioned United States ex rel. Southwind Construction Services, LLC v. The Ross Group Construction Corporation, et al., Case No. 15-0102-R (W.D. Okla.). As part of today’s resolution, the whistleblower will receive approximately $520,000.
The settlement is the result of a coordinated effort among the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Western District of Oklahoma, DCIS, the Inspector General Offices of the SBA, General Services Administration, and the Department of Veterans Affairs, and the Army Criminal Investigation Division Major Procurement Fraud Unit.
To learn more about the Civil Division, please visit https://www.justice.gov/civil. To learn more about the U.S. Attorney’s Office for Western District of Oklahoma, please visit https://www.justice.gov/usao-wdok.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Husband and Wife Working at University Arrested for Wire Fraud Involving Department of Energy GrantRead the Press Release
OKLAHOMA CITY – Shaorong Liu ("Liu") and Juan Lu ("Lu"), both of Norman, have been arrested and charged with conspiracy to commit wire fraud, announced U.S. Attorney Timothy J. Downing.
According to an affidavit in support of a criminal complaint, Liu and Lu are employed at the University of Oklahoma Department of Chemistry and Biochemistry. Liu and Lu also controlled a company, MicroChem Solutions (MCS). Through MCS, they applied for and received federal grant monies from the Department of Energy. The mission of the grant program was to support scientific excellence and technological innovation through the investment of federal research funds in critical American priorities to build a strong national economy. The affidavit alleges Liu and Lu spent this grant money on matters unrelated to the purpose of the grant funding, including on personal expenses.
Today, Liu and Lu made an initial appearance before U.S. Magistrate Judge Suzanne Mitchell in Oklahoma City. If found guilty, Liu and Lu face a maximum penalty of twenty years in prison.
This case is a result of an investigation by the Department of Energy Office of Inspector General, the National Science Foundation Office of Inspector General, and the Federal Bureau of Investigation Oklahoma City Field Office. Assistant U.S. Attorneys Will Farrior and Matt Dillon are prosecuting the case.
The public is reminded that these charges are merely an allegation and that both defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
Reference is made to public filings for more information. To download a photo of U.S. Attorney Downing, click here.
Mangum Pharmacist Sentenced to More Than Three Years in Federal Prison in Health Care Fraud CaseRead the Press Release
OKLAHOMA CITY – Jeffrey Scott Terry, 38, of Mangum, Oklahoma, was sentenced today to 37 months in federal prison for his role in a health care fraud scheme, announced Oklahoma Attorney General Mike Hunter and U.S. Attorney Timothy J. Downing.
"Many of our state’s most vulnerable citizens rely on the Medicaid and Medicare systems for healthcare coverage," Attorney General Mike Hunter said. "To defraud it, as Jeff Terry did, is disgraceful. I appreciate U.S. District Judge Scott L. Palk for sending him to prison and holding him accountable. I am also thankful for our strong partnership with U.S. Attorney for the Western District of Oklahoma Tim Downing, whose team was instrumental in bringing Terry to justice. We will continue to combine our resources to ensure taxpayer money and Oklahomans are protected."
"The protection of the integrity of federal and state health care benefit programs is of paramount importance" said U.S. Attorney Timothy J. Downing. "Oklahomans and citizens across the United States rely on Medicare and Medicaid services to maintain a healthy quality of life. The pilfering by anyone from these programs will not be tolerated. We appreciate very much the opportunity to work with General Hunter’s capable team on this case."
According to an indictment filed in March 2019, Terry was a licensed pharmacist who began operating Bratton Drug at 109 S. Oklahoma in Mangum in August 2015. Both the Oklahoma Health Care Authority—which administers Medicaid under the name SoonerCare—and Medicare reimbursed Bratton Drug for prescription drugs that it dispensed. The indictment alleged that from August 2015 to September 2018, Terry submitted false claims to SoonerCare and Medicare Part D for drugs that had not actually been prescribed or dispensed to patients. Separately, the United States filed a civil action pursuant to the Anti-Fraud Injunction Statute and obtained an injunction to prohibit Terry from dissipating or alienating assets he accumulated as a result of the false claims. On August 12, 2019, Terry entered a guilty plea before Judge Palk to one count relating to Medicaid and one count relating to Medicare.
At a sentencing hearing today, Judge Palk sentenced Mr. Terry to 37 months in prison, along with three years of supervised released. Judge Palk also ordered Terry to complete 100 hours of community service. In announcing the sentence, Judge Palk cited to the nature and seriousness of the offense and the need to deter others from engaging in similar conduct. Terry was ordered to pay restitution of $328,836.18 to SoonerCare and $753,334.13 to Medicare, for a total of $1,082,170.31. Judge Palk also ordered Terry to forfeit real property in Greer County and a 2016 Dodge Challenger.
These charges were the result of an investigation by the Oklahoma Attorney General’s Office’s Medicaid Fraud Control Unit and the U.S. Department of Health and Human Services—Office of Inspector General, Office of Audit Services. Assistant Oklahoma Attorney General Lory Dewey, who also serves as a Special Assistant U.S. Attorney, and Assistant U.S. Attorney Amanda Maxfield Green prosecuted the case. Assistant U.S. Attorneys Amanda Johnson and Ron Gallegos of the U.S. Attorney’s Office’s Civil Division handled the civil injunctive component of the case.
Reference is made to public filings for further information.
Oil & Gas Office Manager to Serve Four Years in Prison for Embezzling over $1.2 Million from Employer and Signing a False Tax ReturnRead the Press Release
OKLAHOMA CITY – CHRISTA DAWN JACKSON, 46, of Tuttle, has been sentenced to serve 48 months in federal prison for embezzling more than $1.2 million from her employer through wire fraud and 24 months for signing a false federal income tax return, with the sentences to be served concurrently, announced U.S. Attorney Timothy J. Downing.
On October 15, 2019, Jackson pleaded guilty to wire fraud and signing a false federal income tax return. According to federal charges filed on September 26, 2019, Jackson worked as an office manager at AllPoints Pipe Service Inc., where she had access to company checks and accounting systems. The United States alleged that from February 2010 to June 2017, she made company checks out to herself and her husband and forged the signature of the company’s owner on those checks. It also alleged she initiated electronic transfers from company bank accounts to third parties for her own benefit and created false invoices to conceal her embezzlement. In addition to charging wire fraud, the government charged her with signing a false 2014 federal income tax return on which she reported that her income was only $96,496, when she knew her income was substantially higher.
Today, U.S. District Judge Patrick R. Wyrick sentenced Jackson to a term of 48 months in prison, followed by a term of 3 years of supervised release for committing wire fraud. Judge Wyrick also sentenced Jackson to a term of 24 months in prison and a term of 12 months of supervised release for signing a false tax return, with the terms of imprisonment and supervised release to be served concurrently. Jackson was also ordered to pay a total restitution of $1,477,872.10, including $223,808.00 to the IRS, $1,229,064.10 to the victim company, and $25,000 to an insurance company. Jackson was ordered to report to the Bureau of Prisons on July 21, 2020, to begin serving her sentence.
These charges are the result of an investigation by the United States Secret Service, the Internal Revenue Service–Criminal Investigations, and the Federal Bureau of Investigation–Oklahoma City Division, with assistance from the El Reno Police Department. The case is being prosecuted by Assistant U.S. Attorney William E. Farrior.
Reference is made to court filings for further information.
Couple Sentenced to More Than a Dozen Years in Federal Prison for Moore Armed Bank RobberyRead the Press Release
OKLAHOMA CITY – Duncan Eric Herron, II, 32, and Regenea Carol Berry, 31, of Oklahoma City, have been sentenced collectively to more than 12 years for their roles in an armed bank robbery, announced U.S. Attorney Timothy J. Downing.
"This case highlights the capabilities and collaboration of our federal, state, and local law enforcement officials," said U.S. Attorney Downing. "It also shows that those who menace our community, especially with firearms, will be held accountable. Simply put, this aggression will not stand."
On May 20, 2019, Herron and Berry were charged by criminal complaint for the bank robbery. According to the affidavit submitted in support of the criminal complaint, Herron and Berry entered an International Bank of Commerce ("IBC") branch located in Moore, Oklahoma, wearing all black clothing and masks that covered their faces. As Heron entered the lobby of the bank, he racked the slide of a firearm. Herron and Berry then intimidated bank employees by ordering them to the ground and demanding money. They collected and ultimately made off with money that belonged to the bank. A search on May 18 at a residence linked to Herron and Berry turned up evidence that connected them to the robbery. Law enforcement arrested them thereafter on the criminal complaint.
On June 19, 2019, a federal grand jury indicted Herron and Berry for the bank robbery. On July 22, 2019, Herron and Berry appeared before the Honorable Charles B. Goodwin, U.S. District Judge, and pled guilty.
On April 3, 2020, Judge Goodwin sentenced Berry to 70 months in prison, followed by three years of supervised release. And earlier this week, on May 11, 2020, Judge Goodwin sentenced Herron to 84 months in prison, followed by three years of supervised release. Both defendants were also ordered to pay restitution to the bank.
This sentence is the result of an investigation by the Federal Bureau of Investigation–Oklahoma City Field Office and the Moore Police Department. Prosecuted by Assistant U.S. Attorneys Mary E. Walters and Wilson D. McGarry.
Reference is made to court filings for further information. To download a photo of U.S. Attorney Downing, click here.
U.S. Attorney’s Letter to Norman City Mayor – Allow Places of Worship to OpenRead the Press Release
A unified message emanates today from the chief federal law enforcement officer in the Western District of Oklahoma and the chief law officer of the State of Oklahoma. Places of worship in Norman, if they so choose, should be allowed to meet this Mother’s Day Sunday.
On April 27, 2020, United States Attorney General William P. Barr issued a memorandum directing United States Attorneys to monitor state and local directives that could violate the constitutional rights and the civil liberties of citizens, including discrimination against religious institutions and those with religious beliefs. To this end, U.S. Attorney Timothy J. Downing today sent a letter to convey the concern of the U.S. Department of Justice (DOJ) with a proclamation issued by the Mayor of Norman. In that letter, U.S. Attorney Downing urged the Mayor to consider amending the proclamation to include the opening of places of worship. Indeed, places of worship should be trusted to honor social distancing and sanitation guidelines to the same extent as secular institutions.
Oklahoma Attorney General Mike Hunter has also expressed his concerns on behalf of the State.
Attached hereto is a copy of U.S. Attorney Downing’s
Letter to Norman Mayor .DOJ Increases Efforts to Combat Sexual Harrassment in Housing During the COVID-19 PandemicRead the Press Release
U.S. Attorney Timothy J. Downing is asking anyone who has witnessed or experienced sexual harassment by a landlord, property manager, maintenance worker, or anyone with control over housing to report that conduct to the Department of Justice.
The COVID-19 Pandemic has impacted the ability of many people to pay rent on time and has increased housing insecurity. The Department of Justice has heard reports of housing providers trying to exploit the crisis to sexually harass tenants in some states. Sexual harassment in housing is illegal, and the Department of Justice stands ready to investigate such allegations and pursue enforcement actions where appropriate.
"Our office is committed to working with all levels of law enforcement to bring to justice any individual so evil-minded as to sexually harass those in desperate need of housing during this pandemic," said U.S. Attorney Timothy J. Downing. The U.S. Attorney’s Office for the Western District of Oklahoma will work closely with state and local partners to identify incidents of sexual harassment in housing.
The Justice Department’s Sexual Harassment in Housing Initiative is an effort to combat sexual harassment in housing led by the Civil Rights Division, in coordination with U.S. Attorney’s Offices across the country. The goal of the Initiative is to address sexual harassment by landlords, property managers, maintenance workers, loan officers or other people who have control over housing.
Launched in 2017, the Initiative has filed lawsuits across the county alleging a pattern or practice of sexual harassment in housing and recovered millions of dollars in damages for harassment victims. The Justice Department’s investigations frequently uncover sexual harassment that has been ongoing for years. Many individuals do not know that being sexually harassed by a housing provider can violate federal law or that the Department of Justice may be able to help.
The Department of Justice, through the Civil Rights Division and the U.S. Attorney’s Offices, enforces the Fair Housing Act, which prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin, and disability. Sexual harassment is a form of sex discrimination prohibited by the Act.
The Department encourages anyone who has experienced sexual harassment in housing, or knows someone who has, to contact the Civil Rights Division by calling (844) 380-6178 or emailing [email protected]. Individuals may also file a complaint alleging harassment or discrimination in housing with the Department of Housing and Urban Development through HUD’s website or by calling (800) 669-9777.
Individuals who believe they may have been victims of discrimination may also contact the U.S. Attorney’s Office for the Western District of Oklahoma by calling (405) 553-8700.
Convicted Felon Sentenced to a Decade in Prison for Firearm Possession Discovered Following a Domestic Violence CallRead the Press Release
OKLAHOMA CITY – Antonio Dewayne Adams, 40, of Oklahoma City, Oklahoma, has been sentenced to 120 months in prison for illegally possessing a firearm while being a convicted felon, announced U.S. Attorney Timothy J. Downing. That firearm was discovered by law enforcement responding to a domestic violence call.
"We will continue to bring firearms charges against perpetrators of domestic violence who violate federal law, particularly when they actively menace their families and those in our community," said U.S. Attorney Downing. "Through this case and others like it, the Department of Justice is protecting vulnerable families and preventing violence against adults, children, and others."
Adams was indicted on July 17, 2019, with one count of being a felon in possession of a firearm. Public records indicate Mr. Adams holds felony convictions for burglary in the second degree, possession of a firearm after former conviction of a felony, concealing stolen property, possession of controlled dangerous substances, and assault and battery—domestic abuse. Federal law prohibits possession of firearms by anyone who, among other things, is previously convicted of a felony, previously convicted of a misdemeanor domestic violence offense, or who is subject to a domestic violence protection order.
At a sentencing hearing yesterday, U.S. District Judge Charles B. Goodwin sentenced Mr. Adams to ten years in prison—the statutory maximum—to be followed by three years of supervised release. In announcing the sentence, U.S. District Judge Goodwin cited Mr. Adams’ history of domestic violence. The government presented evidence at sentencing that Mr. Adams brought a loaded firearm to his girlfriend’s residence. Through the course of the evening, Mr. Adams threatened his girlfriend with the firearm and kept her from leaving the residence. She eventually escaped to a neighbor’s residence, where police were called.
This sentence is the result of an investigation by the Midwest City Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Prosecuted by Assistant U.S. Attorney Mary E. Walters.
This case is part of Project Safe Neighborhoods and Project Guardian, the Department of Justice’s signature initiatives to reduce gun violence and enforce federal firearms laws. For more information about Project Guardian, please see the Attorney General’s announcement here. The case is also part of "Operation 922," the district’s local implementation of Project Safe Neighborhoods and Project Guardian. "Operation 922" prioritizes firearms prosecutions connected to domestic violence, including domestic violence abusers who possess a firearm and are subject to a victim protective order or have been previously convicted of a misdemeanor crime of domestic violence.
Reference is made to court filings for further information. To download a photo of U.S. Attorney Downing, click here.
Enid Man Sentenced to Twenty Years in Prison for Possessing a Gun While Dealing MethRead the Press Release
OKLAHOMA CITY – Jerry James Kendall Ritchie, 32, of Enid, Oklahoma, has been sentenced to 240 months in prison for possessing methamphetamine with intent to distribute, as well as possessing a firearm in furtherance of a drug-trafficking crime, announced U.S. Attorney Timothy J. Downing.
Ritchie was indicted on November 13, 2018, with three counts—possession of methamphetamine with intent to distribute, possession of a firearm in furtherance of a drug-trafficking crime, and felon in possession of a firearm—all of which stemmed from his October 19, 2018 arrest by Enid Police Department officers. At trial, the government presented evidence that Mr. Ritchie attempted to flee from law enforcement and then refused to comply with police officers when he was finally caught.
During the subsequent search of the vehicle, Enid Police Officers located approximately 13.9 grams of methamphetamine and a hand gun hidden under the hood of the vehicle.
Following a trial last year, on April 11, 2019, the jury found Ritchie guilty on all counts.
Today, U.S. District Judge Scott L. Palk sentenced Ritchie to 180 months in prison on the drug count, which was run concurrent to 120 months on the firearm count, to be followed by 60 additional months on the conviction for possessing a firearm in furtherance of a drug trafficking crime, for a total sentence of 240 months in prison. Judge Palk also imposed three years of supervised release.
This case is the result of an investigation by the Enid Police Department and the U.S. Immigration and Customs Enforcement, Homeland Security Investigations. Assistant U.S. Attorneys Wilson McGarry and Nicholas Patterson prosecuted the case.
This case is part of the work of the Organized Crimes and Drug Enforcement Task Force, the Department of Justice’s signature initiatives to address and reduce drug-related criminal activity.
Reference is made to court filings for further information. To download a photo of U.S. Attorney Downing, click here.
Domestic Violence Call Results in a Decade in Federal Prison for Oklahoma City ManRead the Press Release
OKLAHOMA CITY – Today, Terrence Lorenzo Hill, 38, of Oklahoma City, was sentenced to serve 120 months in prison for unlawfully possessing ammunition after a prior felony conviction, announced U.S. Attorney Timothy J. Downing.
Hill was indicted in February 2019 and convicted after a jury trial last October. During the trial, evidence was presented that Hill had been involved in a previous dating relationship with the victim prior to their breakup in March 2018. In September of 2018, Hill called the victim stating he was going to kill her and her daughter. The very next day, Oklahoma City Police Officers were called to the scene of a shooting at the victim’s residence on NW 99th Street in Oklahoma City. The victim stated she observed Hill standing in her back yard as he fired several rounds into their residence, two of which struck the victim. The victim’s daughter also testified that she observed Hill standing in the back yard and heard gun shots while calling 911. Hill fled before police arrived. Although the firearm was never found, officers located four steel cartridge casings in the grass and on the concrete near the back patio door.
Hill had been previously convicted of a 2016 misdemeanor charge of Stalking, as well as felony conviction for Possession of a Firearm after Former Felony Conviction. Federal firearms laws prohibit convicted felons from possessing firearms or ammunition.
U.S. Chief District Judge Timothy DeGiusti sentenced Hill to serve 120 months in prison, followed by three years of supervised release. Hill remains in custody at the Oklahoma County Jail pending outcome of his state charges.
This case is the result of investigations by the Oklahoma City Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant United States Attorneys Jacquelyn Hutzell and Matthew Anderson prosecuted the case.
This case is part of Project Safe Neighborhoods and Project Guardian, the Department of Justice’s signature initiatives to reduce gun violence and enforce federal firearms laws. The local implementation of these initiatives in the Western District of Oklahoma is through "Operation 922" which prioritizes prosecution of federal gun crimes connected to domestic violence.
Reference is made to court filings for further information. To download a photo of U.S. Attorney Downing, click here.
U.S. Attorney Timothy J. Downing Statement on the 25th Anniversary of the Oklahoma City BombingRead the Press Release
OKLAHOMA CITY, OK – A quarter century ago, the deadliest act of domestic terrorism occurred in our Nation’s heartland – the bombing of the Alred P. Murrah Federal Building in Oklahoma City. On April 19, 1995, our Nation lost 168 loved ones in an attack that specifically targeted the federal government. The attack attempted to tear down the very principles – life, liberty, and the rule of law – that all Americans value. But those principles of American freedom cannot and will not be shattered.
In 1995, Oklahomans confronted one of the most evil crimes in U.S. history, said U.S. Attorney Timothy J. Downing. It gives me pride to know that federal, state, and local law enforcement in Oklahoma met the challenge and, through the efforts of the Department of Justice, ultimately helped heal the wounds all Americans suffered from the bombing.
The Oklahoma City Bombing unmistakably impacted the soul of the United States. And it may have even tested the faith and resolve of our State and our Nation. But through the Oklahoma Standard and the perseverance and strength of our Nation, we stand tall and remain the pinnacle of freedom and security.
Twenty-Five years after that horrific day, we remain steadfast and resolute in our memory of the 168 who were killed, the many who survived, and the countless lives changed forever. We remember and we will never forget. As we reflect on that fateful day, Americans must take solace that we move forward in a solidified and unified front. Indeed, the motto of our country could not be more vibrant: E Pluribus Unum – Out Of Many, We Are One.
To download a photo of U.S. Attorney Downing, click here.
U.S. Attorney and IRS Advise Caution Regarding IRS Economic Impact PaymentsRead the Press Release
OKLAHOMA CITY, OK – The Internal Revenue Service (IRS) will soon begin making COVID-19 economic impact payments. For most Americans, this will be a direct deposit into your bank account. For the unbanked, elderly or other groups who have traditionally received tax refunds via paper check, they will receive their check in this same manner.
United States Attorney Timothy J. Downing and IRS-Criminal Investigation (IRS-CI) Special Agent in Charge Tamera Cantu want to warn local Oklahomans that criminals are well aware of these payments and will be actively attempting to steal these funds when they are most needed. Unsolicited phone calls, emails, text messages, or other communications pretending to be from the IRS are likely a scam.
"We will work with IRS-CI to vigorously pursue anyone who tries to cheat or scam Oklahomans out of their much-needed stimulus money," said U.S. Attorney Downing. "Any fraudster who is thinking about engaging in related criminal conduct should think again. We will hold them accountable to the fullest extent possible."
IRS-CI Special Agent in Charge Tamera Cantu of the Dallas Field Office offers the following information and tips to spot a scam and how citizens can report fraudulent activities:
- The IRS will NOT call and ask you to verify your payment details. Do NOT give your bank account, debit account, or PayPal account information to anyone—even if someone claims it's necessary to get your check. It's a scam.
- If you receive a call, do NOT engage with scammers, even if you want to tell them that you know it's a scam. Just hang up.
- If you receive texts or emails claiming that you can get your money faster by sending personal identifying information or clicking on links, delete these texts and emails. Do NOT click on any links in those texts or emails.
- If you receive a "check" for an odd amount (especially one with cents), or a check that requires you to verify the check online or by calling a number, it’s a scam.
Special Agent in Charge Cantu warns the public, "As the agency responsible for issuing economic impact payments, the IRS unfortunately expects some bad actors to execute fraud schemes in an attempt to take advantage of the situation. Be aware that unsolicited contact from non-IRS sources could be scams and do not become a victim. Every taxpayer needs to exercise caution when choosing a return preparer or tax professional to ensure their personal and other privileged information is safeguarded."
- Remember, scammers change tactics. Callers can be aggressive and threatening. Do not be bullied into disclosing personal information or in making any payment.
- Residents of Western Oklahoma can contact the local IRS-CI field office to report violations and suspected fraud at [email protected].
Federal Inmate Sentenced to More Than Additional Year in Prison for Indecent Exposure to Prison StaffRead the Press Release
OKLAHOMA CITY – Carlos Deontea Brummitt, 29, of Washington D.C., has been sentenced to serve 12 months and one day in federal prison for indecent exposure, announced U.S. Attorney Timothy J. Downing.
"Federal Bureau of Prisons correctional staff deserve the ability to perform their duties without concern of sexually offensive and criminal behavior by inmates," said U.S. Attorney Downing. "Today’s sentence demonstrates that when such conduct occurs, we will zealously prosecute inmates for this disruptive behavior."
Brummitt was indicted in July 2019 for three counts of Indecent Exposure—all occurring while he was an inmate at the Federal Transfer Center (FTC) in Oklahoma City—and alleging he lewdly exposed his genitals by masturbating in the presence of three separate FTC employees.
On January 17, 2020, pursuant to a plea agreement, Brummitt pled guilty to one count of indecent exposure. Yesterday, U.S. District Judge Charles Goodwin sentenced Brummitt to serve 12 months and one day in prison followed by one year of supervised release. This sentence is in addition to the federal sentence Brummitt was serving when he committed the indecent exposure offense.
This case is the result of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Ashley L. Altshuler prosecuted the case.
Reference is made to public filings for more information. To download a photo of U.S. Attorney Downing, click here.
Lawton Bank Robbery Suspect ArrestedRead the Press Release
OKLAHOMA CITY – John Scott Brooks, 36, of Lawton, has been arrested and charged with robbing the Southwest Oklahoma Federal Credit Union (SOFCU), announced U.S. Attorney Timothy J. Downing.
According to an affidavit in support of a criminal complaint filed today, Brooks pulled into a drive-thru lane of SOFCU, located at 6714 West Gore Boulevard during the morning on March 23. He allegedly handed a demand note to a teller, along with what appeared to the teller to be an explosive device. Brooks then held up a tablet that was counting down time, and the teller then provided cash to Brooks. After bank surveillance photos were published in the media and a search warrant was executed at Brooks’ residence in Lawton, law enforcement obtained information that led to Brooks’ arrest yesterday.
Today, Brooks made an initial appearance before U.S. Magistrate Judge Suzanne Mitchell in Oklahoma City, and he was ordered detained pending further proceedings in the case. If found guilty of bank robbery, Brooks faces a maximum potential penalty of twenty years in prison, three years of supervised release, a fine of $250,000, and mandatory restitution.
This case is a result of an investigation by the Federal Bureau of Investigation—Oklahoma City Field Office and the Lawton Police Department. Assistant U.S. Attorney Edward J. Kumeiga is prosecuting the case.
The public is reminded that this charge is merely an allegation and that Brooks is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Reference is made to public filings for more information. To download a photo of U.S. Attorney Downing, click here.
Oklahoma City Man Pleads Guilty in Hoax Bomb Threat CaseRead the Press Release
OKLAHOMA CITY – Kenyata O’Keefe Thomas, 42, of Oklahoma City, entered a guilty plea today to intentionally conveying false and misleading information by making a hoax bomb threat to the University of Central Oklahoma (UCO), announced U.S. Attorney Timothy J. Downing.
"Our campuses should be a place of safety for students to learn and grow, and for faculty and staff to serve students without fear of an attack," said U.S. Attorney Downing. "Our office and law enforcement partners, including the FBI, have zero tolerance for actions like this hoax bomb threat that disrupt the safety and sense of well-being on our campuses. Here, the hoax was made on the day that Oklahomans were already reflecting on the horrific act of the Oklahoma City bombing—the deadliest domestic terrorism attack in our Nation’s history."
A criminal information was filed in March 2020 against Thomas that charged him with a single count of making a hoax bomb threat on April 19, 2019. According to the information, Thomas intentionally conveyed false and misleading information to UCO that an unnamed person was planning to detonate a bomb on UCO’s campus. Thomas made the hoax bomb threat on the 24th anniversary of the bombing of the Alfred P. Murrah Federal Building in Oklahoma City.
At sentencing, Thomas faces up to five years in prison, three years of supervised release, and a fine of up to $250,000. Sentencing will take place in approximately ninety days.
This case is the result of an investigation by the Federal Bureau of Investigation—Oklahoma City Field Office’s Joint Terrorism Task Force, with assistance from the University of Central Oklahoma Police Department and the Edmond Police Department. Assistant U.S. Attorney Mark Stoneman prosecuted the case.
Reference is made to court filings for further information. To download a photo of U.S. Attorney Downing, click here.
Department of Justice Makes $850 Million Available to Help Public Safety Agencies Address Covid-19 PandemicRead the Press Release
OKLAHOMA CITY – U.S. Attorney Timothy J. Downing today announced that $11,619,233 in grant money has been allocated to Oklahoma public safety agencies to help them address the COVID-19 pandemic. The Department of Justice has announced that it is making $850 million available to help public safety agencies respond to the challenges posed by the outbreak of COVID-19. The Coronavirus Emergency Supplemental Funding program, authorized by the recent stimulus legislation signed by President Trump, will allow eligible state, local and tribal governments to apply immediately for these critical funds. The department is moving quickly to make awards, with the goal of having funds available for drawdown within days of the award.
"The speedy availability of these funds highlights the import the Department places on this pandemic, and it hopefully provides some support to hardworking public servants committed to upholding the rule of law during these challenging times," said U.S. Attorney Timothy J. Downing. "This funding also demonstrates that the Department is committed to ensuring that our Oklahoman partners have some financial relief that may be needed during these unprecedented times."
"This is an unprecedented moment in our nation’s history and an especially dangerous one for our front-line law enforcement officers, corrections officials, and public safety professionals," said Office of Justice Programs Principal Deputy Assistant Attorney General Katharine T. Sullivan. "We are grateful to the Congress for making these resources available and for the show of support this program represents."
The solicitation, posted by the Bureau of Justice Assistance (BJA) in the Justice Department’s Office of Justice Programs (OJP), will remain open for at least 60 days and be extended as necessary. OJP will fund successful applicants as a top priority on a rolling basis as applications are received. Funds may be used to hire personnel, pay overtime costs, cover protective equipment and supplies, address correctional inmates’ medical needs and defray expenses related to the distribution of resources to hard-hit areas, among other activities. Grant funds may be applied retroactively to Jan. 20, 2020, subject to federal supplanting rules.
Oklahoma’s allocation as well as other state/territory allocations can be found at https://bja.ojp.gov/sites/g/files/xyckuh186/files/media/document/fy20-cesf-state-allocations.pdf. In addition to the state’s allocation, Oklahoma agencies that were eligible for the fiscal year 2019 State and Local Edward Byrne Memorial Justice Assistance Grant Program are also eligible to apply to BJA for additional direct emergency funding. A list of those eligible jurisdictions and direct funding amounts can be found at https://bja.ojp.gov/program/fy20-cesf-allocations.
For more information about the Coronavirus Emergency Supplemental Funding program, please visit https://bja.ojp.gov/funding/opportunities/bja-2020-18553. For more information about the Office of Justice Programs, please visit https://www.ojp.gov/.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years. To download a photo of U.S. Attorney Downing, click here.
Purcell Man Sentenced to Serve More Than Seven Years in Federal Prison for Norman Armed RobberyRead the Press Release
OKLAHOMA CITY – Kristopher Charles Shawn, 36, of Purcell, Oklahoma, was sentenced today to more than seven years in prison for the January 1, 2019, armed robbery of the Sooner Stop convenience store in Norman, Oklahoma, announced U.S. Attorney Timothy J. Downing. Chief District Judge Timothy DeGiusti sentenced Shawn to 90 months in federal prison, followed by four years of supervised release. Judge DeGiusti also ordered Shawn to pay full restitution to the store.
According to an indictment filed on March 19, 2019, Shawn was charged in a three-count indictment charging Hobbs Act robbery, felon in possession of a firearm, and brandishing a firearm during and in relation to a crime of violence. On May 29, 2019, Shawn pleaded guilty to all three counts.
Public records indicate that on January 1, 2019, Shawn entered the Sooner Stop at 2250 W. Main St. in Norman, Oklahoma. He exited the store without making a purchase. Approximately an hour and a half later, Shawn re-entered the store, brandished a firearm, and demanded that the cashier give him all the money in the register. Following the robbery, the store owners contacted police and also shared images online of the robber. These images were obtained from the store’s surveillance system. Thereafter, the Norman Police Department and the Chickasaw Lighthorse Police Department located and arrested Shawn at a metro casino.
The Norman Police Department and the Chickasaw Lighthorse Police Department investigated the case, along with assistance from the Cleveland County District Attorney’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Jason Harley prosecuted the case.
Reference is made to court filings for further information. To download a photo of U.S. Attorney Downing, click here.
Attorney General Hunter, U.S. Attorney Downing Coordinate Efforts to Combat Coronavirus FraudRead the Press Release
OKLAHOMA CITY – Attorney General Mike Hunter and U.S. Attorney Tim Downing today announced a state-federal partnership that will combine resources and information to investigate and prosecute con artists attempting to defraud Oklahomans during the Coronavirus emergency.
Both the Attorney General and the U.S. Attorney for Oklahoma’s Western District agree that combining state and federal resources enables the two agencies to more quickly verify allegations, which will expedite the process of stopping and punishing criminals who are using the current crisis for personal profits.
They also believe the collaborative force of the state and federal government serves as a strong deterrent to those thinking of ways to defraud Oklahomans.
"During times of crisis, we should all be taking action to help those in need, not exploiting our neighbors for personal financial gain," Attorney General Hunter said. "However, it is an unfortunate reality that since the President’s Emergency Order, both of our offices have been inundated with calls about price gouging and scams related to the Coronavirus. We anticipate the situation worsening before it gets better. That is why U.S. Attorney Downing and I have decided to combine our efforts in order to expedite investigations that hold criminals accountable and keep Oklahomans safe. I appreciate his leadership and willingness to team up during this time."
The Attorney General’s Consumer Protection Unit will work closely with U.S. Attorney Downing’s recently appointed Coronavirus Fraud Coordinator Brandon Hale. In this capacity, Hale serves as legal counsel for the Western District on matters relating to the Coronavirus.
"We will work with Attorney General Mike Hunter to vigorously pursue anyone trying to capitalize on the coronavirus pandemic by cheating Oklahoma consumers, especially the State’s most vulnerable," said U.S. Attorney Downing. "Our federal law enforcement team is actively collaborating and cooperating with the state’s top prosecution team in a concerted effort to stop the scams relating to coronavirus. We will use both our criminal statutes and resources to hold accountable to the fullest extent possible any fraudsters who engage in the commission of criminal activity during this time of crisis," said U.S. Attorney Downing. "I am thankful to Attorney General Mike Hunter’s office for its critical efforts to inform the public and hold criminals accountable."
Reports of fraud or price gouging can still be made to either the Attorney General’s Office or the federal government via the National Center for Disaster Fraud hotline.
Contact OAG’s Consumer Protection Unit by calling (405) 521-2029, or by email at [email protected].
Reports can also be reported to the federal government by calling the National Center for Disaster Fraud hotline 1-866-720-5721, or by email at [email protected].
To find more about Department of Justice resources and information, please visit justice.gov/coronavirus.
Man Who Attempted to Bomb Downtown Oklahoma City Bank Sentenced to 25 YearsRead the Press Release
OKLAHOMA CITY — Today, Jerry Drake Varnell, 26, of Sayre, Oklahoma, was sentenced to serve 25 years, followed by a lifetime term of supervised release, for attempting to use a weapon of mass destruction at BancFirst in downtown Oklahoma City.
United States Attorney Timothy J. Downing of the Western District of Oklahoma, Special Agent-in-Charge Melissa R. Godbold of the FBI’s Oklahoma City Field Office, and Chief Wade Gourley of the Oklahoma City Police Department made the announcement.
"The U.S. Government identified Jerry Drake Varnell after learning of his intent to commit this attack," said U.S. Attorney Downing. "This case required thorough investigation and careful coordination among agents and prosecutors in a matter that is our highest priority—terrorism," said U.S. Attorney Downing. "The investigation and prosecution stopped an attempt to seemingly replicate the deadliest act of domestic terrorism in our Nation’s history. The sentence imposed today will hold accountable Varnell for his crime and deter others from engaging in this conduct. I want to thank the agents, analysts, law enforcement officials, and prosecutors whose dedication is responsible for this case."
"The investigation of Varnell was the result of the tireless efforts of the FBI Oklahoma City Joint Terrorism Task Force and nearly 100 of our partners from federal, state, and local law enforcement. We cannot thank these departments enough for their work to bring Varnell to justice,” said Melissa Godbold, Special Agent in Charge of the FBI's Oklahoma City Field Office. “I remind the public that combatting terrorism, both domestically and internationally, has been and will continue to be the FBI’s number one priority."
OCPD Chief Gourley said: "This case is extremely poignant considering we are approaching the 25th anniversary of the Oklahoma City Bombing. This event not only scarred the community of Oklahoma City, but had a profound effect on the nation and set about a response known as the Oklahoma Standard. This Standard was evident in the teamwork and cooperation among agencies in the successful investigation, apprehension, and prosecution of this case. My thanks go out to all involved for their hard work and commitment to prevent another devastating attack in our community."
In February 2019, a federal jury deliberated four hours before they returned a unanimous verdict of guilty on one count of attempting to use an explosive device to damage a building used in interstate commerce and one count of attempting to use a weapon of mass destruction against property used in interstate commerce.
The FBI arrested Varnell at approximately 1:00 a.m. on August 12, 2017, after he attempted to detonate what he believed to be an explosives-laden van he had parked in an alley next to BancFirst, at 101 North Broadway. The arrest was the culmination of a long-term domestic terrorism investigation involving an undercover operation, during which Varnell had been monitored closely for months as the bomb plot developed. The explosives were inert, and the public was not in danger. FBI had received information that Varnell initially wanted to blow up the Federal Reserve Building in Washington, D.C., with a device similar to the 1995 Oklahoma City bombing because he was upset with the government.
On October 17, 2017, a federal grand jury charged Varnell with attempting to use an explosive device to damage and destroy BancFirst’s corporate offices. After a psychological evaluation, the court entered an order on November 21, 2017, that found him competent to stand trial. The grand jury returned a superseding indictment on April 17, 2018, that added one count of attempting to use a weapon of mass destruction.
At trial, the jury heard testimony from an informant who made recordings of his conversations with Varnell. It also heard from the undercover FBI agent who helped Varnell build what he thought was a bomb, an FBI bomb technician, and others. It listened to numerous recordings in which Varnell planned the attack and reviewed numerous written electronic communications that corroborated his intent. Furthermore, it heard the testimony of a defense expert concerning Varnell’s mental health. Through its verdicts, the jury concluded any mental health problems did not prevent Varnell from forming the intent required for conviction. It also determined the FBI did not entrap him.
This investigation was conducted by the FBI Joint Terrorism Task Force, including members from the Oklahoma City FBI; Homeland Security Investigations, part of the U.S. Department of Homeland Security; the Oklahoma City Police Department; the Edmond Police Department; the Oklahoma Highway Patrol; and the Oklahoma Bureau of Narcotics and Dangerous Drugs. The FBI worked in conjunction with BancFirst during the investigation. Oklahoma District Attorney Angela Marsee, of District 2, also provided assistance. The case was prosecuted by Assistant U.S. Attorneys Matt Dillon and Mark R. Stoneman, with assistance from the Justice Department’s Counterterrorism Section.
Reference is made to court records for further information. To download a photo of U.S. Attorney Downing, click here.
U.S. Attorney Downing Appoints Experienced Prosecutor as Coronavirus Fraud CoordinatorRead the Press Release
OKLAHOMA CITY - U.S. Attorney Timothy J. Downing today announced that he has appointed an experienced Assistant U.S. Attorney to coordinate investigations and prosecutions of crimes related to the ongoing coronavirus pandemic.
Assistant U.S. Attorney Brandon Hale, a Deputy Criminal Chief in the office, will serve as the Coronavirus Fraud Coordinator, overseeing federal prosecutions of virus scammers.
Attorney General William Barr has directed all U.S. Attorneys to prioritize the detection, investigation, and prosecution of criminal conduct related to the current pandemic. "The pandemic is dangerous enough," the Attorney General said, "without wrongdoers seeking to profit from public panic and this sort of conduct cannot be tolerated."
"Criminals thinking about trying to scam others during this time of crisis should think again," said U.S. Attorney Downing. "Any type of fraudulent activity related to the COVID-19 outbreak is appalling. AUSA Hale, one of the most talented and experienced prosecutors in my office, will lead our efforts to stop these fraudsters, and he will work with our law enforcement partners to hold accountable those who commit related wrongdoing."
Individuals who believe they may have been the target of a coronavirus-related fraud scheme can file a complaint with the FBI’s Internet Crime Complaint Center at www.ic3.gov. More information about coronavirus scams is also available from the Federal Trade Commission at www.ftc.gov/coronavirus. To download a photo of U.S. Attorney Downing, click here.
Oklahoma City Man to Serve 108 Months for Possessing a Firearm After a Prior Felony ConvictionRead the Press Release
OKLAHOMA CITY – Yesterday, DEREK MICHAEL JONES, 38, of Oklahoma City, was sentenced to serve 108 months in prison for possessing a firearm after a prior felony conviction, announced U.S. Attorney Timothy J. Downing.
Jones was indicted in August 2019 with one count of possession of a firearm after a felony conviction, which stemmed from his May 2019 arrest by Oklahoma City Police Department officers. According to argument made at sentencing, Jones shot at two men after they confronted him about a domestic violence incident. Jones had been previously convicted of felony conviction for Assault with a Dangerous Weapon in Oklahoma County in 2012. Federal firearms laws prohibit convicted felons from possessing firearms or ammunition.
On September 16, 2019, Jones pled guilty to the indictment. Yesterday, U.S. District Judge Joe Heaton sentenced Jones to serve 108 months in prison followed by three years of supervised release. In imposing the sentence, the Court considered the fact that Jones’ fired five shots at two men and also his four prior domestic violence convictions.
This case is the result of investigations by the Oklahoma City Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant United States Attorney Wilson D. McGarry prosecuted the case.
This case is part of Project Safe Neighborhoods and Project Guardian, the Department of Justice’s signature initiatives to reduce gun violence and enforce federal firearms laws. The local implementation of these initiatives in the Western District of Oklahoma is through "Operation 922" which prioritizes prosecution of federal gun crimes connected to domestic violence.
Oklahoma City Anesthesiologist Pays $70,000 and Surrenders His Medical License and DEA Registration Number to Settle Civil Penalty ClaimsRead the Press Release
Oklahoma City, Oklahoma – Dr. Floyd Smith, M.D., ("Dr. Smith"), agreed to pay $70,000 and voluntarily surrender his medical license and DEA registration number for a period of three years to settle civil penalty claims stemming from allegations that he violated the Comprehensive Drug Abuse Prevention and Control Act of 1970 and its regulations, announced United States Attorney Timothy J. Downing.
Dr. Smith is an anesthesiologist who practices in Oklahoma City, Oklahoma. The United States alleges that from January 2014, through February 2019, Dr. Smith issued prescriptions for controlled substances to family members in violation of state law, and without maintaining medical files on the family members. The United States further alleges that the prescriptions were not issued in the usual course of professional practice.
To resolve these allegations, Dr. Smith agreed to pay $70,000 to the United States, and to surrender his medical license and DEA registration.
In reaching this settlement, Dr. Smith did not admit liability, and the government did not make any concessions about the legitimacy of the claims. The agreement allows the parties to avoid the delay, expense, inconvenience, and uncertainty involved in litigating the case.
This case was investigated by the Drug Enforcement Administration, Office of Diversion Control. Assistant U.S. Attorneys Ronald R. Gallegos and Amanda R. Johnson prosecuted the case.
Pimp Who Recorded Sex with Child Victim Sentenced to 18 Years in PrisonRead the Press Release
OKLAHOMA CITY – Earlier today, JAYLYN MARQUICE BELL, 24, of Oklahoma City, was ordered to serve 18 years in federal prison, to be followed by 10 years of supervised release, for sexual exploitation of a child, announced Timothy J. Downing, United States Attorney for the Western District of Oklahoma.
According to court records, on October 9, 2018, officers from the Oklahoma Bureau of Narcotics and Dangerous Drugs Human Trafficking Unit (OBNDD HTU) and the Oklahoma City Police Department Vice Unit (OCPD Vice) conducted an undercover operation to recover a suspected child being advertised for commercial sex on the internet. The undercover officer responded to the advertisement and arranged to meet the female at a local hotel. When the undercover officer arrived, he met a young female, provided her with $185, and she agreed to have commercial sex. Officers then recovered the female, who was under 18, and a young male who was hiding in the bathroom of the hotel room. Officers later recovered two additional juvenile females on the property. Further investigation showed that Jaylyn Bell had rented the hotel room and trafficked the three young girls, along with other young girls, from that hotel.
Law enforcement identified multiple underage girls Bell had been trafficking at local hotels. Some of those underage victims were runaways and undocumented immigrants. Bell had reserved and paid for the hotel rooms, given directions to the girls on what to do, took photographs of the girls for advertisements, posted advertisements from his phone number and email address, provided condoms, and took the proceeds of his victims’ commercial sex transactions. In the course of trafficking the girls, Bell recorded a video of himself having sex with one of his victims.
A federal grand jury indicted Bell on January 15, 2019, for sexual exploitation of a child. He pleaded guilty to sexual exploitation of a child on June 11, 2019, before U.S. District Judge Charles Goodwin. At the sentencing hearing today, the Court noted it had considered the victim of exploitation in the Indictment was under the age of 18, that Mr. Bell also sex trafficked her and at least, four other children and that he provided drugs, rented hotel rooms, provided condoms, and had a firearm. Further, the Court noted it had considered that Mr. Bell attempted to have someone commit perjury and had advised someone else he would flee if he was released pretrial, seeking their assistance if that occurred. The Court also considered Mr. Bell’s relative youth and his capacity for change, ultimately ordering Mr. Bell serve 216 months (i.e. 18 years) in federal prison, to be followed by 10 years of supervised release. Mr. Bell’s restitution will be determined by the Court at a later date.
This case is the result of an investigation by United States Federal Bureau of Investigation, the OCPD Vice Unit, and the OBNDD HTU. Assistant U.S. Attorneys McKenzie Anderson and Jacquelyn M. Hutzell prosecuted the case.
Reference is made to public filings for further information.