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Friday 18 August 2023
U.S. Attorney Announces Consent Decree with Orange County Horse Racing Training Center for Violating Clean Water ActRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Lisa F. Garcia, the Regional Administrator for Region 2 of the U.S. Environmental Protection Agency (“EPA”), announced today that the United States entered into a Consent Decree settling a civil lawsuit against MARK FORD, MARK FORD STABLES, INC., MARK FORD STAGE ROAD PROPERTY, INC., and FORD EQUINE, LTD. (collectively, the “defendants”), for violations of the federal Clean Water Act (“CWA”) in connection with the defendants’ construction and operation of a horse racing training facility on two adjacent properties in the Town of Wallkill in Orange County.
U.S. Attorney Damian Williams said: “This consent decree puts the defendants down a path to reversing the harm they caused to the environment by filling wetlands on their properties and failing to prevent pollutants from entering public waters. It should serve as a reminder that those who pollute will be held accountable for their actions.”
EPA Regional Administrator Lisa F. Garcia said: “The Defendants in this case irresponsibly polluted and filled in wetlands without authorization or permits, improperly managed waste from their horses, and failed to comply with requirements in the stormwater construction general construction permit that they did hold. The Clean Water Act requires the protection of wetlands precisely because they support healthy ecosystems, provide flood and erosion control, and provide other valuable benefits. EPA will vigorously pursue its enforcement goals to restore illegally filled waters and wetlands and deter future violations.”
The Consent Decree, which is subject to public comment and approval by the Court, will resolve a lawsuit filed in White Plains federal court in 2019. The complaint alleged that from 2007 to 2016, the defendants destroyed existing federal wetlands and rerouted streams in the course of building a horse racing training center at 90 Slaughter Road (“Slaughter Road site”) and 482/484 Stony Ford Road (“Ford Equine Site”) in violation of the CWA. The lawsuit also alleged that the defendants have operated a concentrated animal feeding operation without a permit, allowing horse wash water and process wastewater to be discharged into waters of the United States. The lawsuit further alleges that defendants violated the terms of a stormwater construction general permit during construction work at the Slaughter Road Site from February 2016 to February 2017.
In the Consent Decree, the defendants admit, acknowledge, and accept responsibility for the following:
- From 2007 to 2016, the defendants used or caused the use of mechanized land-clearing and filling equipment to discharge fill material into 18.1 acres of federal jurisdictional wetlands and a tributary that are waters of the United States at the Slaughter Road Site. The defendants never sought or obtained authorization from the U.S. Army Corps of Engineers for the filling of these wetlands.
- From 2007 to 2013, the defendants caused the straightening or alteration of roughly 310 linear feet of a creek on the northern half of the Slaughter Road Site and roughly 1,460 linear feet of the same creek on the southern half of the site. The defendants also discharged approximately 150 linear feet of loose stone below the ordinary high-water mark of the creek. The defendants never obtained authorization from the U.S. Army Corps of Engineers for the rerouting and filling of portions of the creek.
- From 2015 to 2016, the defendants used or caused the use of mechanized land-clearing and earth-moving equipment to discharge fill material into approximately 1.86 acres of federal jurisdictional wetlands at the Ford Equine Site and rerouted roughly 900 linear feet of a stream that flowed southward through the eastern portion of the Ford Equine Site. The defendants never sought or obtained authorization from the U.S. Army Corps of Engineers for the rerouting of the stream and the filling of these wetlands.
- From at least December 12, 2016, to the present, the Slaughter Road Site and the Ford Equine Site constitute a medium concentrated animal feeding operation (“CAFO”), within the meaning of the CWA and its implementing regulations, that has discharged pollutants to navigable waters without a permit.
- Between January 19, 2016, and January 26, 2018, defendants FORD and MARK FORD STAGE ROAD PROPERTY, INC., were required to comply with an applicable general permit governing the discharge of stormwater during construction activity. However, in November 2016, EPA conducted an inspection at the Slaughter Road Site and found non-stabilized stockpiles of soil and mulch in the southwest portion of the Slaughter Road Site that lacked the erosion and sediment controls required by the general permit. Several areas of the Slaughter Road Site lacked erosion or sediment controls that caused turbid stormwater to flow into a catch basin and ditch/stream tributaries in the southwest portion of the site which, in turn, flowed into the creek in violation of the general permit. In addition, monthly inspections required by the general permit had not been conducted from February 2016 to February 2017.
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In addition to the payment of a $200,000 civil penalty, the Consent Decree requires the defendants to create or restore approximately 18 acres of wetlands on their property, to restore two streams to their pre-fill configurations, to take additional measures to ensure the long-term success of the defendants’ restoration work, and to come into compliance with federal CAFO regulations.
Notice of the proposed Consent Decree will be published in the Federal Register and the public will have the opportunity to submit comments on the Consent Decree for a period of at least 30 days before it is submitted for the Court’s approval.
Mr. Williams thanked the attorneys and enforcement staff at EPA Region 2 for their critical work on this matter.
This case is being handled by the Environmental Protection Unit of the Office’s Civil Division. Assistant U.S. Attorneys Zachary Bannon and Tomoko Onozawa are in charge of the case.
U.S. v. Ford et al Proposed Consent DecreeTwo Radcliff Men Sentenced to Federal Prison for Armed RobberyRead the Press Release
Louisville, KY – Two Radcliff men were sentenced this week for interference with commerce by robbery, brandishing a firearm during and in relation to a crime of violence, and possession of a firearm by a convicted felon.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge R. Shawn Morrow of the ATF Louisville Field Division, Special Agent in Charge Jodi Cohen of the FBI Louisville Field Office, Chief Jeremy Thompson of the Elizabethtown Police Department, and Chief Jeffrey A. Cross of the Radcliff Police Department made the announcement.
According to court documents, Damian Beamus, 27, was sentenced to 16 years and 4 months in prison, followed by a 3-year term of supervised release, for five counts of interference with commerce by robbery and one count of brandishing a firearm during and in relation to a crime of violence.
Beamus participated in armed robberies of five local businesses over a 30-day period. In each instance, Beamus or an accomplice was armed with a firearm and ordered employees to surrender business cash. On February 2, 2021, 007 Liquors in Radcliff was robbed of business cash. On February 28, 2021, Hibbett Sports in Radcliff was robbed of business cash. On February 21, 2021, the Applebee’s Bar and Grill in Radcliff was robbed of business cash. On February 25, 2021, the Stop N Shop in Elizabethtown was robbed of business cash. On March 2, 2021, Brooks Express in Radcliff was robbed of business cash.
Joshua Dimon Jones, 30, was sentenced to 7 years and 8 months in prison, followed by a 3-year term of supervised release, for interference with commerce by robbery and possession of a firearm by a convicted felon.
Jones participated in the February 25, 2021, armed robbery of Stop N Shop in Elizabethtown. Jones, a convicted felon who was prohibited from possessing a firearm, was later found to be in possession of one of the firearms used in the robberies.
There is no parole in the federal system.
“This case is indicative of the collaboration and cooperation that exists among our federal, state, and local enforcement agencies in the Western District,” stated U.S. Attorney Bennett. I commend our federal partners, the Elizabethtown Police Department, and the Radcliff Police Department for their outstanding work which was critical to the successful prosecution of this case.”
“These two defendants threatened the safety of innocent people during this string of armed robberies,” said Special Agent in Charge Morrow. “I am proud of the investigative work of ATF and our law enforcement partners, and the diligent work of the United States Attorney’s Office. These offenders will no longer terrorize our local businesses or prey on the innocent in our communities. These sentences send a clear message that if you use a firearm to commit a violent crime, Kentucky law enforcement will ensure you receive justice.”
“This case is an excellent example of collaboration at the local and federal level,” stated Chief Thompson. “When law enforcement agencies across our Commonwealth partner, we become a force multiplier in protecting our citizens. When agencies don’t care who gets the credit for great police work, the citizens of Kentucky win and criminals lose. We thank our local partners at the Radcliff Police Department, and our federal partners with the ATF, FBI, and United States Attorney’s Office.”
The case was investigated by the ATF, the FBI, the Elizabethtown Police Department, and the Radcliff Police Department.
Assistant U.S. Attorney Erin McKenzie prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Two Men Sentenced in Large Drug ConspiracyRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Jeffrey L. Viken and U.S. District Judge Karen E. Schreier, sentenced two men, convicted of Conspiracy to Distribute a Controlled Substance. Both sentencings took place on August 11, 2023.
Jose Arguello, 37, of Rapid City, South Dakota, was sentenced to 25 years in federal prison, followed by five years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund. Arguello was sentenced by Judge Viken.
Fernando Valenzuela, 41, of Phoenix, Arizona, was sentenced to 11 years and three months in federal prison, followed by five years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund. Valenzuela was sentenced by Judge Schreier.
Arguello and Valenzuela were indicted, along with several others, for Conspiracy to Distribute a Controlled Substance in the spring of 2021, and each pleaded guilty in May of 2023.
Beginning around July 2020, methamphetamine was trafficked into South Dakota from Arizona and Mexico through coordination by Jose Arguello, Fernando Valenzuela, and several other persons. Arguello served as lead organizer of the conspiracy and recruited and coordinated others to send money packages through the U.S. Postal Service, UPS, and other mail carriers. At times, money was also wired to various locations. All of the money sent was to obtain large volumes of methamphetamine. When the bulk quantities of methamphetamine arrived in the Rapid City area, Arguello divided and packaged it and dispersed it to multiple sub-distributors for further distribution in the Black Hills. Some members of the conspiracy, including Kevin Dunn, expanded the group’s methamphetamine trafficking activities to North Dakota. Dunn was previously sentenced to 20 years in prison in January of 2023, by Judge Viken.
In addition to the large volume of methamphetamine that was distributed through the course of this conspiracy, multiple firearms were also possessed in furtherance of the conspiracy.
In total, four members of the conspiracy have been sentenced, three have pleaded guilty and are awaiting sentencing, one still has a pending warrant, and one is set for a trial at the end of August of 2023.
This case was investigated by the Unified Narcotics Enforcement Team (UNET), the Drug Enforcement Agency, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. UNET is comprised of law enforcement from the Pennington County Sheriff’s Office, Rapid City Police Department, South Dakota Division of Criminal Investigation, South Dakota Highway Patrol, and the South Dakota National Guard. Assistant U.S. Attorney Gina S. Nelson prosecuted the case.
Arguello and Valenzuela were immediately remanded to the custody of the U.S. Marshals Service.
Twelve People Indicted in Fentanyl Trafficking RingRead the Press Release
WICHITA, KAN. – A federal grand jury in Wichita returned three related indictments charging a total of 12 people following a large scale law enforcement investigation into an alleged drug trafficking ring.
In the first indictment, Rafael Turner, 33, of Phoenix, Arizona, and formerly of Wichita is charged with one count of distribution of fentanyl, two counts of attempted distribution of fentanyl, two counts of conspiracy to distribute fentanyl, and four counts of possession with intent to distribute fentanyl.
The grand jury also indicted Rafael Turner on 24 counts of use of a telephone to facilitate drug trafficking, one count of maintaining a drug premises, one count of possession of a firearm in furtherance of a drug trafficking crime, one count of conspiracy to commit wire fraud, one count of conspiracy to commit fraud in relation to identification documents, and six counts of money laundering.
Andrea Bohanon, 33, of Wichita is charged with one count of conspiracy to distribute fentanyl, one count of possession with intent to distribute fentanyl, one count of maintaining a drug premises, and six counts of money laundering,
Antwain Gails, 33, of Wichita is charged with one count of conspiracy to distribute fentanyl, nine counts of use of a telephone to facilitate drug trafficking, one count of conspiracy to commit wire fraud, and one count of conspiracy to commit fraud in relation to identification documents.
Antonio Turner, 55, of Wichita is charged with one count of distribution of fentanyl, one count of possession with intent to distribute fentanyl, one count of conspiracy to distribute fentanyl, and nine counts of use of a telephone to facilitate drug trafficking,
Wayne Turner, 30, of Wichita is charged with one count of conspiracy to distribute fentanyl.
As part of a second indictment, William Parks, 27, of Salina was indicted on one count of conspiracy to distribute and attempt to distribute fentanyl, one count of possession with intent to distribute fentanyl, and three counts of use of a telephone to facilitate drug trafficking.
Santino Dupree, 29, of Wichita was indicted on one count of conspiracy to distribute and attempt to distribute fentanyl, and three counts of use of a telephone to facilitate drug trafficking.
Tehran Wilson, 30, of Wichita was indicted on one count of conspiracy to distribute and attempt to distribute fentanyl, one count of possession with intent to distribute fentanyl, and one count of use of a telephone to facilitate drug trafficking.
Justice Johnson, 27, of Wichita was indicted on one count of possession with intent to distribute fentanyl.
In a third indictment, a federal grand jury charged Kayla Dean, 21, of Southfield, Michigan, Isaiah Gails, 34, of Wichita, and Marquez Gails, 42, of Wichita on one count of conspiracy to commit wire fraud, and one count of conspiracy to commit fraud in relation to identification documents.
Dean was also indicted on six counts of money laundering, and Isaiah Gails was also indicted on one count of possession with intent to distribute fentanyl.
The Federal Bureau of Investigation (FBI), Wichita Police Department, Sedgwick County Sheriff’s Office, IRS-Criminal Investigation, U.S. Postal Inspection Service, and Homeland Security Investigations (HSI) are investigating the case.
Assistant U.S. Attorneys Deb Barnett and Ola Odeyemi are prosecuting the case.
OCDETF
This operation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
###Tulsa Man Sentenced for Robbery and Kidnapping in Indian CountryRead the Press Release
TULSA, Okla. – A Muscogee Nation citizen from Tulsa was sentenced to 15 years in prison for robbery in Indian Country and kidnapping in Indian Country, announced U.S. Attorney Clint Johnson.
U.S. District Chief Judge John F. Heil III sentenced Andrew Michael Crowels, 27, to 15 years in federal prison followed by five years of supervised release. Judge Heil further ordered Crowels to pay $819.92 in restitution.
“Andrew Crowels and his co-defendant, kidnapped the victim at gunpoint, robbed him, and then drove him to his place of employment and forced him to empty the safe,” said U.S. Attorney Clint Johnson. “Now, thanks to the work of our law enforcement partners, Crowels and his co-defendant have both been sentenced.”
In his plea on May 11, 2022, Crowels admitted that he, along with others, robbed and kidnapped the victim by force, threatened him with a firearm, and stole items including a car, firearm, phone, debit card, cash, and clothing. Crowels further admitted that they took the victim, at gun point, to several ATMs attempting to get cash from the debit card. When that failed, the victim was taken to a Mazzio’s where he was a manager and forced to get cash out of the safe.
Katie Dawn Bowdler, a co-defendant in this case pleaded guilty to robbery in Indian Country April 1, 2022. She has been sentenced to five years and three months in a federal prison, followed by three years of supervised release. She was further ordered to pay restitution in the amount of $819.92.
The Tulsa Police Department and FBI investigated the case.
Assistant U.S. Attorney Thomas Buscemi prosecuted the case.
Tucson Firearms Smuggler Sentenced to 60 Months for Conspiring to Smuggle Firearms into MexicoRead the Press Release
Defendant assisted in smuggling almost 50 assault rifles and high-capacity semi-automatic pistols from the United States into Mexico
TUCSON, Ariz. – Victor Coronado, Jr., 40, of Tucson, Arizona, was sentenced on Tuesday by United States District Judge Rosemary Márquez to 60 months in prison, followed by three years of supervised release. Coronado pleaded guilty to Conspiracy to Smuggle Goods from the United States.
Coronado was the leader of a conspiracy to smuggle firearms from the United States into Mexico between October 2019 and July 2020. Coronado and his co-conspirators purchased firearms, made false statements to firearms dealers in the acquisition of firearms, provided funds to others for the purchase of firearms, and assisted in smuggling 49 assault rifles and high-capacity semi-automatic pistols into Mexico.
The firearms that Coronado conspired to smuggle are prohibited from being exported from the United States into Mexico without a valid license. Neither Coronado, nor any of his co-conspirators, had a valid license or any other lawful authority to export the firearms into Mexico.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, assisted by Homeland Security Investigations and United States Customs and Border Protection, conducted the investigation in this case. Assistant U.S. Attorney Brandon Bolling, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR-02081-RM-MSA
RELEASE NUMBER: 2023-125_Coronado, et al.# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Tompkinsville Man Sentenced to over 11 Years in Federal Prison for Methamphetamine TraffickingRead the Press Release
Bowling Green, KY – A Tompkinsville, Kentucky man was sentenced yesterday to 11 years and 1 month in prison for methamphetamine trafficking.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge J. Todd Scott of the DEA Louisville Field Division, and Director Ron Lafferty of the Barren River Drug Task Force made the announcement.
According to court documents, on June 10, 2022, and July 7, 2022, in Monroe County, Kentucky, Chad Emberton¸ 45, distributed five grams or more of methamphetamine to another person. Following release from his 11-year and 1-month prison sentence, Emberton was ordered to serve 4 years on supervised release. There is no parole in the federal system.
This case was investigated by the DEA Bowling Green Post of Duty Office and the Barren River Drug Task Force.
Assistant U.S. Attorney Mark J. Yurchisin II, of the U.S. Attorney’s Bowling Green Branch Office, prosecuted the case.
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Toledo Man Sentenced for Drug and Firearm ChargesRead the Press Release
TOLEDO – James Luther Sawyer IV, 33 of Toledo, Ohio was sentenced on Tuesday August 15, to 10 years in prison by U.S. District Judge James R. Knepp after earlier pleading guilty to possession with intent to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking crime and to being a felon in possession of a firearm. Judge Knepp also ordered Sawyer to pay a $300 special assessment and be placed on supervised release for 4 years upon release from imprisonment.
According to court documents, on April 24, 2022, Toledo police officers responded to a 911 call of a man pointing a handgun at passing vehicles. Officers spotted Sawyer fitting the description in the area of Huron and Lagrange Streets in Toledo. When Sawyer was ordered to stop by officers, he removed a handgun from his pants and threw it to the ground. After officers arrested Sawyer and recovered the handgun, they searched Sawyer’s backpack and found 28 plastic bags containing approximately 67 grams of methamphetamine. Sawyer was prohibited from possessing firearms due to a prior Felonious Assault conviction in Lucas County Common Pleas Court.
This case was investigated by the Toledo Police Department and the FBI. The case is being prosecuted by Assistant United States Attorney Sara Al-Sorghali.
Sturgis Man Sentenced for Bank RobberyRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Court Judge Karen E. Schreier has sentenced a Sturgis, South Dakota, man convicted of Bank Robbery. The sentencing took place on August 10, 2023.
Deric Dufek, 33, was sentenced to three years and one month in federal prison, followed by two years of supervised release. He was also ordered to pay a $100 special assessment to the Federal Crimes Victim Fund.
Dufek was indicted for Bank Robbery by a federal grand jury in March of 2022. He pleaded guilty in June of 2023.
On March 14, 2022, Dufek entered Great Western Bank in Spearfish, South Dakota, wearing a mask. Dufek proceeded to go to a bank teller window and showed the teller a note reading "give me the money OR DIE" demanding money from the teller. The teller, believing the defendant had a gun, produced stacks of money to the defendant. The defendant fled Spearfish but was apprehended by law enforcement in Deadwood, South Dakota, later the same day.
This case was investigated by the Spearfish Police Department, Lawrence County Sheriff’s Office, South Dakota Division of Criminal Investigation and the FBI. Assistant U.S. Attorney Gina S. Nelson prosecuted the case.
Dufek was immediately remanded to the custody of the U.S. Marshals Service.
Spencer Iowa Man Pleads Guilty to Possession of Child PornographyRead the Press Release
Leighton Marshal Jones, 41, from Spencer, Iowa, plead guilty in federal court on August 18, 2023, to Possession of Child Pornography.
At the plea hearing, Jones, admitted that he knowingly possessed and attempted to possess child pornography, including a depiction involving a prepubescent minor or a minor who had not attained 12 years of age.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Jones was taken into custody by the United States Marshal after the guilty plea and will remain in custody pending sentencing. Jones faces a possible maximum sentence of 20 years’ imprisonment without the possibility of parole, a $250,000 fine, and 5 years to life of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Kraig Hamit and was investigated by the Federal Bureau of Investigations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-CR-04015.
Follow us on Twitter @USAO_NDIA.
Shiprock Man Pleads Guilty to Assault Against a ChildRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the Federal Bureau of Investigation’s Albuquerque Field Office, announced that Myron Benally, 38, of Shiprock, and a registered member of the Navajo Nation, pled guilty in federal court to assault resulting in serious bodily injury. Benally will remain in custody pending sentencing which has not been scheduled.
According to court documents, on June 27, 2019, Benally assaulted a 13-month-old infant in his care, causing serious bodily injury including a broken arm.
At sentencing, Benally faces up to 10 years in prison followed by a term of supervised release of not more than 3 years and restitution.
The FBI Albuquerque Field Office investigated this case with assistance from the Navajo Police Department. Special Assistant United States Attorney Mark Probasco is prosecuting the case.
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Seventeen Residents of the Western District of Pennsylvania Indicted on Violating Federal Narcotics and Firearms LawsRead the Press Release
PITTSBURGH, PA – Following a four-month long Title III wiretap investigation into drug trafficking, unlawful firearms possession, and gang activity in Pittsburgh’s Northside neighborhoods, seventeen residents of the Western District of Pennsylvania have been charged by a federal grand jury in Pittsburgh in two separate but related Indictments with violations of the federal narcotics and firearms laws, United States Attorney Eric G. Olshan announced today.
“This office is committed to protecting the residents of Western Pennsylvania from those who engage in gun violence and traffic in fentanyl and other dangerous drugs,” said U.S. Attorney Olshan. “Together with our trusted law enforcement partners at the FBI, ATF, and Pittsburgh Bureau of Police, we will continue to investigate and hold accountable the most dangerous offenders through effective enforcement of federal drug and firearm laws.”
“Violence doesn’t belong in our communities,” said FBI Pittsburgh Special Agent in Charge Mike Nordwall. “Those indicted today have targeted the Northside in and around the Allegheny Commons for far too long. The FBI’s Greater Pittsburgh Safe Streets Task Force pursues those who terrorize our communities with violence and dangerous drugs like fentanyl. We are proud to work side by side with the U.S. Attorney’s office and our state and local partners to hold these people accountable for their crimes.”
The first Indictment names Dayon Shelton, 32, of Pittsburgh, PA, as the sole defendant. According to the Indictment, on April 5, 2023, Shelton possessed with intent to distribute 40 grams or more of fentanyl. The law provides for a maximum total sentence of not less than 5 and up to 40 years in prison, a fine of up to $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
A separate but related nineteen-count Indictment charges sixteen defendants with violations of the federal narcotics and firearms laws occurring between December 2022 and August 2023. Fifteen of the named defendants are:
• Dejarnette Blanchard, 32, of Pittsburgh, Pennsylvania
• Babangida Adam, 27, of Carnegie, Pennsylvania
• Kenneth Blanchard, 37, of Pittsburgh, Pennsylvania
• Terry Booth, aka “Sheisty,” 19, of Pittsburgh, Pennsylvania
• Norman Davis, 37, of Pittsburgh, Pennsylvania
• Lawrence Gray, 55, of Pittsburgh, Pennsylvania
• Terry James, 23, of Pittsburgh, Pennsylvania
• Clinton McLaughlin, 55, of Pittsburgh, Pennsylvania
• Taemon Posey, 28, of Pittsburgh, Pennsylvania
• Demetrius Reynolds, 20, of Pittsburgh, Pennsylvania
• Markel Sayles, 25, of Pittsburgh, Pennsylvania
• Gilbert Smith, 44, of Bruin, Pennsylvania
• Ories Smith, 25, of Pittsburgh, Pennsylvania
• Denzel Tomlin, 27, of Pittsburgh, Pennsylvania
• Damor Williams, 19, of Pittsburgh, PennsylvaniaOne defendant remains a fugitive so that name is not being released at the present time.
According to this Indictment, between December 2022 and August 2023, the above-named defendants conspired with one another, and with others, to distribute and possess with intent to distribute Schedule II controlled substances, namely fentanyl and cocaine base (in the form commonly known as “crack”). Defendants Dejarnette Blanchard, Babangida Adam, Kenneth Blanchard, Terry Booth, Norman Davis, Terry James, Demetrius Reynold, and Denzel Tomlin, are also charged with possessing with intent to distribute controlled substances such as fentanyl, cocaine, and/or cocaine base on various dates during the conspiracy. Defendants Dejarnette Blanchard, Babangida Adam, Norman Davis, Terry James, Demetrius Reynolds, and Denzel Tomlin are charged with violations of the federal firearms laws for unlawfully possessing a firearm in furtherance of a drug trafficking offense and/or for possessing a firearm and ammunition as a convicted felon.
The penalties for these crimes vary. As to the drug trafficking conspiracy charged in the Indictment, defendants Dejarnette Blanchard, Babangida Adam, Demetrius Reynolds, and Ories Smith face a maximum sentence of not less than 10 years and up to life imprisonment, a fine of up to $10,000,000, or both. Defendants Kenneth Blanchard, Terry Booth, Norman Davis, Lawrence Gray, Terry James, Taemon Posey, Markel Sayles, Gilbert Smith, Denzel Tomlin, and Damor Williams face a maximum total sentence of not less than 5 and up to 40 years in prison, a fine of up $5,000,000, or both. Defendant Clinton McLaughlin faces a maximum total sentence of up 20 years in prison, a fine of up to $1,000,000, or both. Those defendants charged with additional violations of the federal narcotics and firearms laws face potential additional terms of imprisonment and fines, if convicted. Under the Federal Sentencing Guidelines, the actual sentences imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Jerome A. Moschetta is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Pittsburgh Bureau of Police led the investigation with the assistance of law enforcement officers from the Allegheny County Sheriff’s Department, the Pennsylvania Office of the Attorney General, Allegheny County Probation and Parole, and the Penn Hills Police Department. This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Seminole County Resident Pleads Guilty to Assault with A Dangerous Weapon in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Darian Ty Farris, age 27, of Wewoka, Oklahoma, entered a guilty plea to one count of Assault with a Deadly Weapon with Intent to do Bodily Harm in Indian Country, and one count of Using, Carrying, Brandishing and Discharging a Firearm during and in Relation to a Crime of Violence.
The Indictment alleged that on March 2, 2023, Farris intentionally shot the victim in the stomach with a firearm during a confrontation. The crimes occurred in Seminole County, on the Seminole Reservation, within the Eastern District of Oklahoma.
The charges arose from an investigation by the Federal Bureau of Investigation, the Seminole County Sheriff’s Office, and the Wewoka Police Department.
The Honorable Jason A. Robertson, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea in Muskogee, Oklahoma, and ordered the completion of a presentence investigation report. Farris was remanded to the custody of the U.S. Marshal pending sentencing.
Assistant United States Attorney Ryan Bondura represented the United States.
Self-Professed “Shot Caller” Sentenced for Retaliation PlotsRead the Press Release
Acting United States Attorney Susan Lehr announced that Johnny Dolph, 50, originally of Tulsa, Oklahoma, was sentenced today in Omaha, Nebraska, by Chief United States District Court Judge Robert F. Rossiter, Jr. to an overall cumulative sentence of 150 months’ imprisonment for 10 Counts: Felon in Possession of a Firearm; Possession of a Firearm Following a Misdemeanor Crime of Domestic Violence; 2 counts of False Statement During the Purchase of a Firearm; Conspiracy to Tamper with Documents or Proceedings; Tampering with Documents or Proceedings; 2 counts of Conspiracy to Assault a Witness; and 2 counts for Attempted Assault of a Witness. After his release from prison, Dolph will serve a 5-year term of supervised release. There is no parole in the federal system.
Dolph is a self-professed “shot caller” for the Irish Mob Gang, which is a gang that originated in the Oklahoma state prison system. Dolph came to Omaha in early 2021 on an interstate parole compact following a prison sentence in Kansas. Dolph had lied to Kansas and Nebraska’s parole offices claiming that he would be living with an individual in Omaha who he claimed was his brother; the man was not his brother and is an affiliate of the Irish Mob Gang. In the summer of 2021, Dolph brought an individual from Kansas to Omaha to set up a forgery operation. This individual from Kansas was stopped by the Richardson County Sheriff’s Office in September 2021 and found to be in possession of numerous forgery related items to include counterfeit currency, forged Treasury checks, and document making implements.
Shortly after the individual from Kansas’s arrest, Dolph and co-defendant Norwood began contacting the individual from Kansas’s wife, identified as Victim 1 who was located in Omaha, in attempts to prevent her from going to law enforcement. Victim 1 reported receiving threatening communications from Dolph and Norwood. Dolph, Norwood, and others began researching and attempting to locate where Victim 1 was located.
In the fall of 2021, Norwood conducted a straw-purchase for Dolph of a Hi-Point C9 9mm handgun from gunbroker.com. The transfer was completed on October 25, 2021. A straw purchase is an illegal purchase of a firearm by one person for another. Dolph was prohibited from possessing a firearm due to eleven felony convictions in Oklahoma and Kansas as well as due to two misdemeanor crimes of domestic violence in Kansas.
In October 2021, Dolph’s apartment in Omaha was searched pursuant to a Federal search warrant. The affiant for the search warrant was a federal agent with the Omaha Metro Financial Crimes Task Force, identified as Victim 2. Following the execution of the search warrant, Dolph began researching Victim 2 and found, what Dolph believed to be, Victim 2’s home address; this address belonged to another individual with the same name as Victim 2. Dolph drove by what he believed to be Victim 2’s address and filmed it. Dolph then disseminated this video and address to third parties and, in one such conversation, expressed a need to obtain a “throw away” gun.
In November 2021, Dolph contacted Kate Ruth and requested that she come to Omaha from Kansas to help him locate and carry out the “green light” he had put on Victim 1. Ruth was driven to Omaha by Juanita Gibson. Dolph paid for Ruth and Gibson’s gas and provided directions on where to go once they arrived in Omaha. Dolph and Norwood let Gibson and Ruth stay with them in their apartment. While in Omaha, the four attempted to locate Victim 1. At Dolph’s direction, Ruth and Gibson drove to a residence in Omaha at which Victim 1 was believed to be staying.
On March 1, 2022, law enforcement attempted to arrest Dolph on a state warrant. Dolph was located and the Hi-Point C9 9mm handgun that Norwood had illegally purchased for him was recovered. The ATF examined the Hi-Point C9 pistol and determined that it travelled in interstate commerce to be located in Nebraska on March 1, 2021.
Dolph was interviewed by law enforcement. He admitted to being a “shot caller” for the Irish Mob Gang. Dolph admitted to researching and threatening Victim 1. Dolph stated that he wanted to prevent Victim 1 from cooperating with law enforcement. Dolph stated that he believed a “green light” to be an assault. Dolph admitted to bringing “clovers,” female members of the Irish Mob Gang, from Kansas to Omaha to carry out the green light on Victim 1. He identified those clovers as Juanita Gibson and Kate Ruth. Dolph also admitted that Norwood purchased the Hi-Point C9 pistol on his behalf. Dolph admitted to possessing the handgun and making a fake handgun purchase permit to make it appear like he had legally purchased the firearm if he were to come into contact with law enforcement. Dolph admitted that he knew he was a felon. A review of Dolph’s social media included a photograph of him holding the firearm and telling another individual that Norwood had bought the firearm for him.
Following his arrest on the state warrant, Dolph was Federally indicted for the firearms charges and was incarcerated at the Douglas County Correctional Center. On March 30, 2022, at 7:58 p.m. and at 8:14 p.m., Dolph called Norwood. Dolph used his assigned inmate PIN number and called Norwood at her known phone number. Inmates are advised that all non-attorney calls are recorded. In the calls, Norwood told Dolph that she was going to their trailer per his earlier request. The trailer was later identified and located at a storage facility in Omaha. Dolph then provided step-by-step instructions over the phone to Norwood on how to retrieve an item that was concealed in an air compressor in the trailer. Dolph instructed Norwood to burn the item using gasoline and a blow torch. During the call, Dolph was very agitated that the item be destroyed and said it will send him to prison. Dolph also expressed concern that Norwood did not destroy it and was going to turn it over to law enforcement. Dolph then asked Norwood to take a picture of the item burning to prove to him that she destroyed it. An image of the item burning was found on Norwood’s phone.
The individual from Kansas was sentenced on May 23, 2022, to time-served after serving a nine-month sentence for Possession of Counterfeit Currency and Possession of a Document Making Implement or Authentication Feature and is currently serving a five-year term of supervised release. On July 18, 2023, Gibson pleaded guilty to Conspiracy to Assault a Witness and Attempted Assault of a Witness and her sentencing is scheduled for October 13, 2023. Norwood and Ruth are currently pending trial and are presumed innocent unless and until they are proven guilty.
After the sentencing today, FBI Omaha Special Agent in Charge Eugene Kowel said, “Today’s sentencing of John Dolph is a message to criminals who think threatening a witness and destroying evidence will keep them out of prison. The FBI will find you. Intimidation and threats of violence will never be tolerated.”
“The United States Secret Service is proud of the effective partnerships it maintains with the Omaha Police Department, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco and Firearms and the United States Attorney’s Office, whose tireless efforts were instrumental in seeing justice served in this case,” said Kansas City Field Office Special Agent in Charge Brandon Bridgeforth. “We can think of no greater outcome than protecting citizens and witnesses of crimes from violent criminals such as Johnny Dolph.”
"Our office has the power and authority to prosecute all offenses against the United States. Any attempts to subvert this pursuit of justice through illicit means will be met with aggressive prosecution," said Acting United States Attorney Susan Lehr. "Today's sentencing is an example of this commitment and should serve as a warning to those who are contemplating unlawful attempts to undermine the criminal justice process."
This case was investigated by the Federal Bureau of Investigation, the United States Secret Service, the Omaha Police Department, and the Richardson County Sheriff’s Office with assistance from the Kansas Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
San Diego Man Sentenced to 30 Years in Prison for Sexual Exploitation of a ChildRead the Press Release
NEWS RELEASE SUMMARY – August 18, 2023
SAN DIEGO – Pedro Escamilla Del Rosario of San Diego was sentenced in federal court today to 360 months in prison for sexually abusing a drugged eight-year-old girl while another person recorded the assault.
The defendant pleaded guilty on March 27, 2023, to one count of Sexual Exploitation of a Minor.
According to the publicly filed documents in the case, in March 2022, Homeland Security Investigations (HSI) received reports from the National Center for Missing and Exploited Children (NCMEC) regarding the user of a Google, LLC account who had been uploading digital files of visual depictions of minors engaged in sexually explicit conduct.
From March 2022 through June 2022, HSI agents received 41 separate reports regarding the Google account, and it involved approximately 6,700 digital files. Based on this information, HSI obtained a search warrant for the Google account and discovered thousands of visual depictions of minors engaged in sexually explicit conduct. This account belonged to Del Rosario. Among the visual depictions located in Del Rosario’s account, HSI agents discovered two videos which were produced in March 2018, one of which forms the basis of this federal conviction.
Del Rosario was subsequently arrested and confessed to his involvement in the creation of the videos, including sexually molesting the minor-victim when he knew she had been over-medicated. Del Rosario also admitted to possessing the other visual depictions of minors engaged in sexually explicit conduct.
At today’s sentencing hearing, after the court heard statements by the minor-victim and the minor-victim’s foster parent, Assistant U.S. Attorney Andrew Sherwood argued for a substantial custodial sentence because the crimes committed by Del Rosario had caused irreparable harm to the minor-victim and had been perpetrated and recorded purely for Del Rosario’s sexual gratification.
In imposing the 360-month sentence, U.S. District Judge Todd W. Robinson explained that the “statutory maximum for the offense of conviction, is necessary and sufficient, but not greater than necessary” to accomplish the sentencing objectives, including the need to protect the community from future crimes by Del Rosario.
“This defendant’s heinous actions have caused irreparable harm to the victim,” said Acting U.S. Attorney Andrew Haden. “The children in our community are often the most vulnerable members of our society. There are few crimes that are more vicious and outrageous than crimes involving their sexual exploitation.” Haden thanked the prosecution team and investigating agencies for their excellent work on this case.
“The sexual abuse and exploitation of children victims rob their emotional and psychological development aside from stealing their innocence,” said Chad Plantz, special agent in charge for HSI San Diego. “The defendants’ deviant and perverse behavior will not be tolerated by HSI. This kind of abuse strikes at the very foundation of our society and we all must come together to combat this unspeakable crime that plagues the public welfare; our children deserve better.”
DEFENDANTS Case Number 22cr2752-TWR
Pedro Escamilla Del Rosario Age: 44 San Diego, CA
SUMMARY OF CHARGES
Sexual Exploitation of a Minor – Title 18, U.S.C., Section 2251(a) and (e)
Maximum penalty: Thirty years in prison and $250,000 fine; mandatory minimum 15 years in prison
AGENCY
Homeland Security Investigations
Russell Springs Man Sentenced to 30 Years for Production of Child PornographyRead the Press Release
LEXINGTON, Ky.— Austin Lee Gladd, 26, of Russell Springs, Ky., was sentenced to 30 years in federal prison on Friday, by Chief U.S. District Judge Danny Reeves, after previously pleading guilty to production of child pornography.
According to Gladd’s guilty plea agreement, he admitted to using social media to entice a minor victim to engage in sexually explicit conduct; to traveling to Danville, Ky., where the victim was located, to engage in sexual intercourse with the minor victim; and to capturing multiple videos of the sexual encounter with his smartphone.
Gladd pleaded guilty in April 2023.Under federal law, Gladd must serve 85 percent of his prison sentence. Upon his release from prison, Gladd will be required to register as a sex offender and will be under the supervision of the U.S. Probation Office for life.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Jodi Cohen, Special Agent, FBI, Louisville Field Office; and Chief Tony Gray of the Danville Police Department jointly announced the sentence.
The investigation was conducted by the FBI and the Danville Police Department. The United States was represented by Assistant United States Attorney Mary Melton.
The U.S. Attorney’s Office prosecuted this case as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Richmond Man Sentenced to 15 Years in Federal Prison for After Investigators Discover His Collection of Nearly One Million Child Sexual Abuse ImagesRead the Press Release
INDIANAPOLIS- David Julien, 65, of Richmond, Indiana, has been sentenced to 15 years in federal prison after pleading guilty to receipt of child sexual abuse material.
According to court documents, on the night of January 2, 2022, the defendant, David Julien, was making French fries in his kitchen. He left the kitchen to eat them, forgetting the hot grease on the stove and starting a fire in his kitchen. The Richmond Fire Department (RFD) responded, extinguished the fire, and began an investigation into its cause.
While inside, a Deputy Fire Chief found notebooks on a dresser that contained pictures of child sexual abuse. Officers with the Richmond Police Department spoke to Julien, who admitted that “there will be thousands and thousands and thousands more of those photos.”
Julien consented to a search of his house. During the search, officers located eight colored binders that had printed photographs of child sexual abuse material.
Officers also found a computer with approximately 10 external hard drives and 2 internal hard drives. Located near the computer were an additional 5 hard drives that contained well over 100,000 child sex abuse material images and over 3,000 videos, including those of bondage and bestiality. One hard drive had approximately 722,000 CSAM images and 29,000 CSAM videos. The child sexual abuse materials Julien collected and repeatedly viewed dated back to at least 2017. Julien’s collection of child sexual abuse images and videos included depictions of children being subjected to sadomasochistic sexual abuse and bestiality, as well as depictions of the sexual abuse of infants and toddlers.
United States Attorney for the Southern District of Indiana, Zachary A. Myers, Jeffrey R. Adams, Special Agent in Charge of the USSS Indianapolis Field Office, Chief Michael Britt of the Richmond Police Department, Tim Brown, Interim Fire Chief of the Richmond Fire Department made the announcement.
“For years this defendant collected over a million depictions of children being subjected to horrific sexual abuses—including rapes of babies and toddlers,” said U.S. Attorney for the Southern District of Indiana, Zachary A. Myers. “He didn’t care about the trauma that was inflicted and perpetuated, so long as he could enjoy the heinous material he craved. Thanks to the Richmond Fire and Police Departments, the U.S. Secret Service, and our federal prosecutors, our children are safer, and this pedophile is behind bars where he belongs.”
The U.S. Secret Service investigated this case with valuable assistance provided by the Richmond Police and Fire Departments. The sentence was imposed by U.S. District Court Judge, Jane Magnus-Stinson. Judge Stinson also ordered that Julien be supervised by the U.S. Probation Office for 5 years following his release from federal prison and register as a sex offender wherever he lives, works, and goes to school.
U.S. Attorney Myers thanked Assistant United States Attorney Adam J. Eakman, who prosecuted this case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, 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
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Rapid City Man Sentenced for Drug ConspiracyRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Court Judge Jeffrey L. Viken has sentenced a Rapid City, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance (fentanyl). The sentencing took place on August 10, 2023.
Phillip Moore, 33, was sentenced to 12 years and six months in federal prison, followed by five years of supervised release, and was also ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Moore was indicted for Distribution of a Controlled Substance Resulting in Serious Bodily Injury by a federal grand jury in October of 2021. He pleaded guilty to Conspiracy to Distribute a Controlled Substance on May 5, 2023.
Beginning in 2021, Moore coordinated with other persons to bring fentanyl in the form of small blue pills from Arizona to South Dakota for distribution. Once the fentanyl arrived in the Rapid City area, Moore worked with others to disperse the fentanyl. On October 15, 2021, a local Rapid City man purchased fentanyl from a batch of fentanyl that had been brought into Rapid City as part of Moore’s conspiracy. The man overdosed and CPR and NARCAN were administered to revive him.
This case was investigated by the local Unified Narcotics Enforcement Team (UNET) and the federal Drug Enforcement Agency. UNET is comprised of law enforcement from the Pennington County Sheriff’s Office, Rapid City Police Department, South Dakota Division of Criminal Investigation, the South Dakota Highway Patrol, and the South Dakota National Guard. Assistant U.S. Attorney Gina Nelson prosecuted the case.
Moore was immediately remanded to the custody of the U.S. Marshals Service.
Previously Deported Alien Sentenced to 10 Years for Illegal Re-Entry into the United StatesRead the Press Release
Fort Myers, Florida – U.S. District Judge Thomas P. Barber has sentenced Israel Perez-Santiago (41, Mexico) to 10 years in federal prison for illegally re-entering the United States without authorization by federal immigration officials. Perez-Santiago had previously been deported from the United States 11 times and convicted of the crime of illegal re-entry on 4 occasions.
Perez-Santiago also has multiple prior convictions for other crimes ranging from trespass to battery on a law enforcement officer. The federal prosecution commenced after immigration officials located Perez-Santiago in connection with a theft offense being investigated by local authorities in Fort Myers.
This case was investigated by the United States Border Patrol. It was prosecuted by Assistant United States Attorney Michael V. Leeman.
Pharmacy Operations Manager Admits Role in Multimillion-Dollar Health Care Fraud and Kickback SchemeRead the Press Release
TRENTON, N.J. – The former operations manager of a Union City, New Jersey, pharmacy today admitted his role in multimillion-dollar conspiracies to defraud health care insurers, including Medicare and Medicaid, and to pay kickbacks and bribes to health care professionals, U.S. Attorney Philip R. Sellinger announced.
Ruben Sevumyants, 40, of Marlboro, New Jersey, pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to two counts of a superseding indictment charging him with conspiring to commit health care fraud and conspiring to violate the federal anti-kickback statute.
U.S. Attorney Philip R. Sellinger“This defendant admitted taking part in a scheme to steal millions of dollars from the health care system. From bribing doctors to billing for medication refills that were never provided, this conspiracy gamed the system, and Sevumyants profited along the way. He will now face the appropriate punishment for his crimes. Our office will always be on the lookout for those who try to turn our health insurance system into an ATM.”
"It can be hard to see why investigations like this matter to the general public going about their lives. However, healthcare professionals and pharmacies are meant to keep us healthy, not inflict harm. As healthcare recipients, we all end up footing the bills for fraudsters because our premiums increase to cover the cost of their crimes. We can't do it alone. We're asking anyone who is a victim of this type of fraud or sees it happening, to call us at 1-800-CALL-FBI and report it."
“New Jersey residents need to be able to trust their doctors and pharmacists are acting in the best interest of their overall health,” Tammy Tomlins, Special Agent in Charge, IRS - Criminal Investigation, Newark Field Office, said. “By paying bribes to doctors to induce them to steer prescriptions to Prime Aid, Sevumyants helped to illegally enrich himself and others at Prime and this type of illegal activity erodes away at the trust we place in our medical professionals.”
“Pharmacy employees who submit fraudulent claims to Medicare and Medicaid and bribe medical providers to induce prescriptions put health care benefits for older people and vulnerable populations at risk,” Naomi Gruchacz, Special Agent in Charge with the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), said. “HHS-OIG will continue to hold accountable individuals who exploit federal health care programs for their own greed.”
Charges against two conspirators – Samuel “Sam” Khaimov and Yana Shtindler, both of Glen Head, New York – remain pending. Sevumyants’s other conspirators in the kickback scheme are Igor Fleyshmakher, of Holmdel, New Jersey and Alex Fleyshmakher of Morganville, New Jersey. Alex Fleyshmakher previously pleaded guilty to his role in the conspiracy and is awaiting sentencing; Igor Fleyshmakher previously pleaded guilty and was sentenced in November 2021 to 41 months in prison.
According to documents filed in this case and statements made in court:
The Prime Aid Pharmacies – now closed – operated as “specialty pharmacies” in Union City, New Jersey, and Bronx, New York, processing expensive medications used to treat various conditions, including Hepatitis C, Crohn’s disease, and rheumatoid arthritis. Sevumyants was Prime Aid Union City’s operations manager. Khaimov was a co-owner of Prime Aid Union City and the lead pharmacist of Prime Aid Bronx. Khaimov’s wife, Shtindler, was Prime Aid Union City’s administrator. Alex Fleyshmakher worked at Prime Aid Union City and was an on-paper owner of Prime Aid Bronx. His father, Igor Fleyshmakher, was a co-owner of Prime Aid Union City.
Initially, the Prime Aid Pharmacies obtained retail network agreements with several pharmacy benefit managers (PBMs), which allowed them to receive reimbursement payments to prescription medications, including specialty medications. PBMs acted as intermediaries on behalf of Medicare, Medicaid, and private healthcare insurance providers, so that when a pharmacy received a prescription, the pharmacy then submitted a claim for reimbursement to the PBM that represented the beneficiary’s drug plan.
Starting in 2009, to obtain a higher volume of prescriptions, Khaimov, Sevumyants, Alex Fleyshmakher, and other Prime Aid employees paid bribes to doctors and doctors’ employees to induce doctors’ offices to steer prescriptions to the Prime Aid Pharmacies. The bribes included expensive meals and payments by cash, check, and wire transfers. Another method of bribery also involved paying an employee to work inside a doctor’s office.
Prime Aid Union City – at the direction of Sevumyants, Shtindler, and Khaimov – also engaged in the pervasive fraudulent practice of billing health insurance providers for medications that were never provided to patients. While Prime Aid generally provided medications for initial prescriptions it received, it systematically billed for refills for those same medications without ever dispensing them to patients. From 2013 through 2017, Prime Aid Union City received tens of millions of dollars in reimbursement payments from Medicare, Medicaid, and private insurers for medications that Prime Aid Union City not only failed to give patients, but never ordered or had in stock at the pharmacy.
PBMs conducted routine audits of Prime Aid Union City and discovered its practice of billing but not dispensing medications. In response to these audits, Shtindler instructed Prime Aid employees to falsify records submitted to the PBMs. Sevumyants, with Shtindler’s knowledge and approval, forged shipping records of a private commercial shipping company to make it appear as if medications were shipped to the patients when they were not.
The conspiracy to commit healthcare fraud count is punishable by a maximum of 10 years in prison and the conspiracy to pay illegal kickbacks is punishable by a maximum of five years in prison. Both counts are also punishable by a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest. Sentencing is scheduled for Dec. 20, 2023.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge Dennehy in Newark; special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Tomlins in Newark; special agents of the Department of Health and Human Services-Office of Inspector General, under the direction of Special Agent in Charge Gruchacz; the N.J. Office of the Insurance Fraud Prosecutor, Medicaid Fraud Unit, under the direction of Interim Insurance Fraud Prosecutor Al Garcia, and the N.J. Office of the State Comptroller, under the direction of Acting Comptroller Kevin Walsh, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Joshua L. Haber, Chief of the Economic Crimes Unit and Aaron L. Webman of the Opioid Abuse Prevention and Enforcement Unit of the U.S. Attorney’s Office in Newark.
The charges against and allegations in the information pertaining to Khaimov and Shtindler are merely accusations, and those two defendants are presumed innocent unless and until proven guilty.
sevumyants.sindictment.pdfPennsylvania Resident Sentenced to Three Years in Prison for Role in Conspiracy to Defraud and Extort Cryptocurrency ExecutivesRead the Press Release
SAN FRANCISCO – Anthony Francis Faulk was sentenced to serve 36 months in prison and ordered to pay nearly $3 million in restitution for his role in a conspiracy to defraud more than a dozen cryptocurrency owners, announced United States Attorney Ismail J. Ramsey and FBI Special Agent in Charge Robert K. Tripp. The sentence was handed down by the Honorable William H. Orrick, United States District Judge. The Court also ordered forfeiture of numerous assets constituting or derived from proceeds obtained by Faulk’s crime.
Faulk, 26, of Latrobe, Penn., acknowledged his role in the conspiracy in a written plea agreement filed on March 2, 2023. According to his plea agreement, from October 2016 through May 2018, Faulk, using the alias “shade,” conspired with Matthew Ditman, aka “lord crump,” and Ahmad Hared, aka “special547” aka “winblo,” to defraud and extort cryptocurrency owners. The scheme involved “SIM swapping”—duping cellphone companies into giving Faulk and his co-conspirators control of victims’ cellphone numbers, using that access to hack into email and other victim accounts, and ultimately stealing the victims’ cryptocurrency or digital assets.
SIM stands for Subscriber Identity Module or Subscriber Identification Module. A SIM card is a technology used to identify and authenticate subscribers on mobile phone devices. According to his plea agreement, Faulk admitted that he used fraud, deception, and social engineering techniques to induce representatives of cellphone service providers to transfer or port cellphone numbers from SIM cards in the devices possessed by victims to SIM cards in devices possessed by members of the conspiracy. Once in possession of the illegally obtained information, members of the conspiracy reset passwords of their victims’ email, electronic storage, and other accounts. The co-conspirators then were able to control the accounts, access cryptocurrency accounts, and transfer cryptocurrencies from accounts owned by the victims to accounts or wallets controlled by Faulk and his co-conspirators.
Faulk also admitted that, in addition to transferring cryptocurrencies, the co-conspirators contacted some of their victims by telephone and threatened to compromise further accounts unless the victims paid additional money to the fraudsters.
Faulk was ordered to pay $2,816,433 in restitution to 11 victims of the scheme. (After the indictment in this matter, Faulk was charged in separate criminal case, pleaded guilty to one count of conspiracy to commit money laundering, and was ordered to pay restitution to two additional victims.) The court also ordered forfeiture of numerous assets, seized by the government, constituting or derived from proceeds traceable to the conspiracy. Those assets include a nearly $1 million home in Latrobe, Pennsylvania; three J.P. Morgan Chase accounts totaling approximately $12,525,592, $6,242,919, and $18,118, respectively; a 2018 Mercedes-Benz GTS; a 2018 Nissan Rouge; a 2019 Chevrolet Silverado K1500; diamond jewelry; a Rolex; Tiffany earrings; and a Louis Vuitton handbag and wallet.
On December 10, 2019, a federal grand jury indicted Faulk, charging him with one count of conspiracy to commit wire fraud, in violation of 18 U.S. C. § 1349, and one count of interstate communications with intent to extort, in violation of 18 U.S.C. § 875(d). Pursuant to his plea agreement, Faulk pleaded guilty to the conspiracy count. On the government’s motion, Judge Orrick dismissed the extortion count at the sentencing hearing.
Hared and Ditman were separately charged. Hared’s sentencing is set for August 31, 2023, and Ditman’s for October 12, 2023.
The case is being prosecuted by the Corporate and Securities Fraud Section of the U.S. Attorney’s Office. Assistant United States Attorney Robert Leach is prosecuting the case, with assistance from Mimi Lam and Megan Pagaduan. This case is the result of an investigation from FBI.
Owners of Mental Health Counseling Services Company Plead Guilty to Employment Tax CrimeRead the Press Release
An Oklahoma man and a Virginia man pleaded guilty, in separate cases, to willfully failing to pay over employment taxes.
According to court documents and statements made in court, Stephen Christopher Parker of Oologah, Oklahoma, and Michael Baines of Portsmouth, Virginia, were co-owners of a mental health counseling services company, Family Youth Intervention Services Inc., located in Tulsa, Oklahoma. In that role, Parker and Baines were responsible for withholding, accounting for and paying over the income and Social Security and Medicare taxes withheld from the wages paid to the company’s employees. For the second quarter of 2016 they did not file the required quarterly employment tax return or pay over the entirety of those taxes. Parker and Baines further admitted that from January 2014 through December 2017, they did not pay over a total of approximately $1,265,259 in withholdings to the IRS.
Parker and Baines each face a maximum sentence of five years in prison, followed by supervised release, restitution and monetary penalties. U.S. Chief District Court Judge John F. Heill III, will determine any sentence after considering U.S. sentencing guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Clinton J. Johnson for the Northern District of Oklahoma made the announcement.
IRS-Criminal Investigation is investigating the case.
Assistant Chief Andrew Kameros of the Tax Division and Assistant U.S. Attorney David Whipple for the Northern District of Oklahoma are prosecuting the case.
Omaha Men Sentenced for Roles in Drug and Firearm ConspiracyRead the Press Release
Acting United States Attorney Susan Lehr announced that Ty-Sean Nunn, 32, and Anthony Hill-Gaines, 25, both of Omaha, Nebraska, were sentenced on August 17, 2023, in federal court in Omaha. United States District Judge Brian C. Buescher sentenced Nunn to 14 years in prison for conspiring to distribute methamphetamine, fentanyl, and marijuana and conspiring to violate federal firearms laws. Hill-Gaines was sentenced to 90 months in prison for conspiring to violate federal firearms laws. There is no parole in the federal system. After Nunn’s release from prison, he will begin a five-year term of supervised release. After Hill-Gaines’s release, he will begin a three-year term of supervised release. Nunn is also forfeiting $13,180 that was identified as drug trafficking proceeds.
From about July of 2016 to January of 2022, Nunn was part of a conspiracy to distribute methamphetamine, fentanyl, and marijuana. The conspiracy largely occurred in Omaha. Nunn was involved in the distribution of the drugs. During this same time period, Nunn and Hill-Gaines conspired to violate federal firearms laws. Nunn and Hill-Gaines possessed firearms to facilitate the drug trafficking conspiracy.
Co-defendants Willis Parker, George Buck, Dominique Thomas, and Jerrell Jackson have all pleaded guilty to charges related to the drug conspiracy. Thomas was sentenced on June 7, 2023, to 90 months of imprisonment. Buck was sentenced on July 26, 2023, to 120 months of imprisonment. Parker and Jackson are pending sentencing. Only co-defendant Terrance Traynham is pending trial. Traynham was previously sentenced to 106 months in federal prison for conduct related to this conspiracy.
This case was investigated by the Federal Bureau of Investigation, the Omaha Police Department, and the Bellevue Police Department.
Omaha Man Sentenced in Methamphetamine ConspiracyRead the Press Release
Acting United States Attorney Susan Lehr announced that Cash C. Cosgriff, 33, of Omaha, Nebraska, was sentenced on August 17, 2023, in federal court in Omaha for his participation in a methamphetamine conspiracy. United States District Judge Brian C. Buescher sentenced Cosgriff to 120 months’ imprisonment. There is no parole in the federal system. After his release from prison, he will begin a 5-year term of supervised release.
In May 2021, an undercover (UC) Special Agent with the Drug Enforcement Administration communicated with a Mexican-based source of supply about purchasing one pound of methamphetamine that could be delivered to the UC in Omaha. Arrangements were made and on May 20, 2021, Cosgriff arrived in the area of Hanscom Park and delivered 295 grams of pure methamphetamine to the UC.
This case was investigated by the Drug Enforcement Administration.
Omaha Man Sentenced for Possessing Child PornographyRead the Press Release
Acting United States Attorney Susan Lehr announced that Kevin Kesselberg, Jr., 20, of Omaha, Nebraska, was sentenced today in federal court in Omaha for possession of child pornography. United States District Judge Brian C. Buescher sentenced Kesselberg to 60 months’ imprisonment. There is no parole in the federal prison system. After his release from prison, Kesselberg will serve 10 years of supervised release. Kesselberg was also ordered to pay $6,000 in restitution.
In December 2021, law enforcement began investigating after receiving a Cybertip from Dropbox, Inc. stating that a user had uploaded child pornography. An IP address associated with the uploads was associated with Kesselberg. He admitted to using the account at issue and viewing child pornography. Investigators searched Kesselberg’s cell phone and located two videos of child pornography on the device.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Nebraska State Patrol.
Oklahoma City Man Sentenced to Serve More Than a Decade in Federal Prison for Impersonating an FBI Special Agent and Illegally Possessing a FirearmRead the Press Release
OKLAHOMA CITY – Yesterday, Seth Daniel Grant, 38, of Oklahoma City, was sentenced to serve 11 years in federal prison for impersonating a special agent with the FBI and for illegally possessing a firearm after a prior felony conviction, announced U.S. Attorney Robert J. Troester for the Western District of Oklahoma and Special Agent in Charge Edward J. Gray for the FBI Oklahoma City Field Office.
“Impersonating a federal officer for personal gain is an insult to the vital role the FBI plays in our community on a daily basis,” said U.S. Attorney Troester. “The FBI, like many other federal law enforcement agencies, plays an integral role in protecting citizens and is an invaluable partner to our office. We will continue to do our part to uphold its reputation from those who would seek to take advantage of it.”
“By pretending to be an FBI agent, Mr. Grant boldly exploited the trust the FBI has with the communities we serve,” said Special Agent in Charge Gray. “As the sentence shows, impersonating a federal officer for any reason is a serious crime. We will not tolerate those who seek to degrade the operations of real law enforcement and put public safety at risk.”
On April 20, 2022, a federal grand jury returned a two-count indictment against Grant, charging him with being a felon in possession of a firearm, and for false personation of an officer or employee of the United States. Federal law prohibits convicted felons from possessing firearms or ammunition. On September 13, 2022, Grant pleaded guilty to both counts.
According to public record and information presented at sentencing, on or about January 24, 2022, Grant falsely assumed the role of Special Agent of the FBI and presented stolen FBI credentials to several individuals to support his false claim. The incident occurred in the parking lot of a retail store in Edmond, Oklahoma. Grant assumed this false character to attempt to obtain information that would expose the location of another individual. At the time of the offense, law enforcement also found Grant in possession of a firearm, despite having multiple felony convictions. Public records reflect Grant has a lengthy criminal history, including the following felony convictions:
- Oklahoma County, Case No. CF-2004-990, Attempted Larceny of Automobile, Unauthorized Use of a Motor Vehicle, Driving Under the Influence, Leaving the Scene of an Accident
- Oklahoma County, Case No. CF-2005-2921, Possession of a Taken/Stolen Credit Card
- Oklahoma County, Case No. CF-2012-7592, Second Degree Burglary
- Oklahoma County, Case No. CF-2013-970, Forgery in the Second Degree
- Oklahoma County, Case No. CF-2013-1706, Unauthorized Use of a Motor Vehicle, Possession of a Controlled Dangerous Substance
- Oklahoma County, Case No. CF 2013-4326, Possession of Contraband in Penal Institution
- Oklahoma County, Case No. CF-2016-569, Possession of Methamphetamine and Heroin with Intent to Distribute and Felon in Possession of a Firearm
- Oklahoma County, Case No. CF-2021-1355, Unauthorized Use of a Vehicle
- Oklahoma County, Case No. CF-2021-2437, Felon in Possession of a Firearm
- Oklahoma County, Case No. CF-2021-4934, Unauthorized Use of a Vehicle
At the sentencing hearing yesterday, U.S. District Judge Timothy D. DeGiusti sentenced Grant to serve 11 years in federal prison. In announcing the sentence, the court noted the serious nature of this offense, the need to protect the public, and also Mr. Grant’s years-long spree of unabated criminal conduct.
This case is the result of an investigation by the FBI Oklahoma City Field Office and the Edmond Police Department. Assistant U.S. Attorney Stan West prosecuted the case.
Reference is made to the public record for additional information.
Ohkay Owingeh Man Sentenced to 87 Months in Prison for Assault and Federal Firearms OffensesRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced that Jerry Segura, Jr. was sentenced to 87 months in prison. Segura, 34, of Ohkay Owingeh, New Mexico, and an enrolled member of the Ohkay Owingeh Pueblo, pleaded guilty to assault with a dangerous weapon and using and carrying a firearm during and in relation to a crime of violence and brandishing a firearm in furtherance of such crime in Indian Country on May 8, 2023.
According to court documents, on March 13, 2022, Segura, Jr. drunkenly drove with his father to his girlfriend’s mother’s home on the Pueblo of Ohkay Owingeh to, in his words, kill himself in front of her. Instead, Segura, Jr. fired about 10 gunshots from a .40 caliber semi-automatic handgun at his girlfriend’s mother’s home, including about six shots directly at his girlfriend’s pregnant daughter and her young son. Defendant then sped away from the scene with the help of his father. At the time, Segura Jr. was on state-level supervised probation.
Upon his release from prison, Segura Jr. will be subject to five years of supervised release.
The Bureau of Indian Affairs investigated this case. Assistant United States Attorney Zachary Jones is prosecuting the case.
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Nye County Captain Indicted for Federal ViolationsRead the Press Release
LAS VEGAS – Captain David E. Boruchowitz (42), a deputy Sheriff with the Nye County Sheriff’s Office, appeared in federal court today following his arrest on federal wire fraud, perjury and civil rights violations, arising from the February 2019 false arrest of the former CEO of Valley Electric Association (VEA), a Pahrump-based utility cooperative.
United States Magistrate Judge Brenda Weksler arraigned Boruchowitz on the charges contained in a federal indictment and set the date for trial to begin on October 16, 2023, before United States District Judge Andrew P. Gordon.
According to the indictment, Boruchowitz falsely arrested the former CEO without probable cause on charges that she embezzled services from VEA. The indictment further alleges that the false arrest was part of a larger scheme to defraud the former CEO of her job by falsely alleging in various court documents that the CEO embezzled services from the VEA. According to the indictment, Boruchowitz made false statements and omitted material facts in order to obtain the court documents under false pretenses as part of a broader plan to get the CEO fired from her job at VEA. The indictment alleges that Boruchowitz committed federal wire fraud when he caused press releases to be issued from the Nye County Sheriff’s Office that falsely alleged that the investigation and arrest of the CEO was the result of court authorized process when, in truth and in fact, he obtained the process under false and fraudulent pretenses and without probable cause.
Lastly, the indictment charges that Boruchowitz perjured himself when he falsely testified during a federal civil deposition about his knowledge and level of involvement in the circumstances surrounding the arrest.
A conviction on the civil rights charge carries a maximum term of imprisonment of one year. The wire fraud and perjury violations each carry a 20-year and five-year term of imprisonment, respectively, for each count.
United States Attorney Jason M. Frierson for the District of Nevada and Special Agent in Charge Spencer L. Evans for the FBI made the announcement.
The FBI investigated the case. Assistant United States Attorneys Steven Myhre and Bianca Pucci are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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Nigerian citizen extradited from Germany to face charges over attempt to steal $25 million in U.S. benefitsRead the Press Release
Tacoma – One of two Nigerian citizens residing in Canada, who allegedly defrauded the pandemic unemployment benefit programs in multiple states, made his initial appearance in U.S. District Court in Tacoma this afternoon at 2:00 PM. Sakiru Olanrewaju Ambali, 45, was arrested in February 2023, in Frankfurt, Germany, as he traveled back to Canada from Nigeria. Ambali had been detained in Germany pending extradition. He arrived in the Western District of Washington yesterday afternoon.
Ambali and codefendant Fatiu Ismaila Lawal, 45, are accused of using the stolen identities of thousands of Americans to submit over 1,700 claims for pandemic unemployment benefits to over 25 different states, including Washington State.
According to the indictment, Lawal and Ambali used the stolen personal information of thousands of U.S. taxpayers and residents to file fraudulent claims for COVID-19 pandemic assistance and false tax returns seeking refunds. In total, the claims sought approximately $25 million, but the conspirators obtained approximately $2.4 million, primarily from pandemic unemployment benefits.
The co-conspirators allegedly submitted claims for pandemic unemployment benefits to more than 25 states including New York, Maryland, Michigan, Nevada, California, and Washington. Using 13 Google accounts they filed some 900 claims. The co-conspirators also allegedly established four internet domain names that they then used for fraud – creating some 800 different email addresses that were used for fraud.
Lawal and Ambali allegedly filed over 2,300 fraudulent income tax returns seeking over $7.1 million in tax refunds. The IRS caught most of the fraud and paid only about $30,000 in fraudulent refunds.
The co-conspirators also attempted to use the stolen American identities for Economic Injury Disaster Loans (EIDL) to defraud the Small Business Administration.
According to the indictment, the co-conspirators had the proceeds of their fraud sent to cash cards or to “money mules” who transferred the funds according to instructions given by the co-conspirators. They also allegedly used stolen identities to open bank accounts and have the money deposited directly into those accounts for their use.
Lawal and Ambali are charged with conspiracy to commit wire fraud, ten counts of wire fraud and six counts of aggravated identity theft.
Lawal remains in Canada, pending extradition.
The conspiracy and wire fraud counts are punishable by up to 30 years in prison. Aggravated identity theft is punishable by a mandatory minimum two years in prison to run consecutive to any other prison time imposed in the case.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The National Unemployment Fraud Task Force provided a lead on this case to the investigative team in Western Washington. The case was investigated by the FBI with assistance from U.S. Postal Inspection Service (USPIS) and the Department of Labor Office of Inspector General (DOL-OIG). Also contributing to the investigation were Washington State Employment Security Division (ESD), the Internal Revenue Service Criminal Investigation (IRS-CI), and the Small Business Administration (SBA).
The case is being prosecuted by Assistant United States Attorneys Cindy Chang and Seth Wilkinson of the Western District of Washington. DOJ’s Office of International Affairs is assisting.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
New Orleans Man Sentenced for Federal Weapons OffenseRead the Press Release
NEW ORLEANS, LOUISIANA – JUSTIN HENRY, age 41, of New Orleans, Louisiana, was sentenced on August 17, 2023 by U.S. District Judge Carl J. Barbier to 100 months of imprisonment followed by three years of supervised release, along with a $100 mandatory special assessment fee, for being a felon in possession of a firearm, announced U.S. Attorney Duane A. Evans.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Department of Homeland Security, Homeland Security Investigations and the New Orleans Police Department. Assistant United States Attorney David Berman of the Violent Crimes Unit handled the prosecution.
Morris County Sonography Company Enters into Deferred Prosecution Agreement, Agrees to Pay $95,000 to Settle Kickback AllegationsRead the Press Release
NEWARK, N.J. – A Morris County, New Jersey, sonography company has entered into a deferred prosecution agreement (DPA) to resolve criminal charges relating to kickback allegations and will pay $95,000 to resolve the civil claims, U.S. Attorney Philip R. Sellinger announced today.
As part of the resolution, a criminal information was filed on Aug. 17, 2023, charging H&D Sonography LLC of Parsippany, New Jersey, with this conduct. H&D entered into a three-year DPA that requires it to abide by certain measures to avoid conviction. H&D also entered into a civil settlement agreement under which it has agreed to pay $95,000 to the United States to resolve civil claims under the federal False Claims Act.
The criminal matter has been assigned to the U.S. Magistrate Judge Jessica S. Allen in Newark federal court.
Criminal Resolution
According to H&D’s admissions in the DPA:
From January 2015 through December 2018 in the District of New Jersey, H&D and others agreed to pay rent in excess of reasonable value to physicians to induce the physicians to refer patients for diagnostic testing to H&D. These agreements called for inflated rent payments from H&D to the physicians, purportedly to use space in the physicians’ offices for a set number of hours each week in order to perform diagnostic tests. H&D agreed to pay for significantly more hours than the technicians actually used, as a method to funnel payments to physicians. H&D structured the payments as sublease payments for the physicians’ shared offices. The sublease payments that H&D paid the physicians were more than the value of the total rent that the physicians actually paid for the shared offices. After H&D began making payments, the physicians in receipt of those payments began to refer patients to H&D for diagnostic tests, which were then billed to Medicare.
Civil Resolution
According to the contentions of the United States set forth in the civil settlement agreement:
From Jan. 1, 2015, through Dec. 31, 2018, H&D knowingly and willingly paid renumeration to referring physicians in the form of space rental payments that were above fair market value and commercially unreasonable for the purpose of inducing diagnostic testing, in violation of the federal Anti-Kickback Statute.
The civil allegations were originally made in a lawsuit filed under the whistleblower provisions of the False Claims Act brought by Dr. Richard Chesbrough. The Act permits private parties to sue for false claims on behalf of the United States and to share in any recovery. Chesbrough will receive approximately 17 percent of the proceeds of the civil settlement.
U.S. Attorney Sellinger credited special agents of the U.S. Department of Health and Human Services – Office of the Inspector General, under the direction of Acting Special Agent in Charge Naomi Gruchacz, with the investigation leading to the resolution.
The criminal case was prosecuted by Assistant U.S. Attorney Ray Mateo of the Opioid Abuse Prevention and Enforcement Unit; the civil case was handled by Assistant U.S. Attorney Kruti Dharia of the Opioid Abuse Prevention and Enforcement Unit.
hd.complaint.pdf hd.settlement.pdf hd.dpa_.pdfMission Man Convicted of Assaulting a Federal OfficerRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced that a jury has convicted Wilson Brave Heart, age 50, of Mission, South Dakota, of Assaulting, Resisting, and Impeding a Federal Officer following a two-day jury trial in federal district court in Pierre, South Dakota. The verdict was returned on August 16, 2023.
The charges carry a maximum penalty of eight years in custody and/or a $250,000 fine, three years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Brave Heart was indicted by a federal grand jury in April of 2023.
On March 11, 2023, Brave Heart was arrested by Rosebud Sioux Tribe Law Enforcement Services officers and charged with domestic abuse. He was then transported by an officer to the Rosebud Sioux Tribe Adult Correctional Facility. While he was completing intake processing at the Adult Correctional Facility, Brave Heart spit in the face of the arresting officer.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
A sentencing date has not been set. The defendant was remanded to the custody of the U.S. Marshals Service.
Minnesota Man Sentenced to 78 Months for Possession MethamphetamineRead the Press Release
Acting United States Attorney Susan Lehr announced that Jeno Michael Paulucci, 42, of Duluth, Minnesota, was sentenced on August 15, 2023, by Senior United States District Court Judge John M. Gerrard to 78 months’ imprisonment for Possession of Methamphetamine with the Intent to Distribute. Paulucci was also sentenced to a three-year term of supervised release to be served after he completes his prison sentence. There is no parole in the federal system. Additionally, Paulucci will be forfeiting to the United States any interest he had in a 2018 Cadillac Escalade, which was used during the commission of the offense. Paulucci pleaded guilty to his offense on May 18, 2023.
On August 3, 2022, law enforcement conducted a checkpoint on Interstate 80 in Dawson County, Nebraska. Jeno Paulucci was the driver and Paulucci’s co-defendant, Patrick Lewis McKinney, was the passenger. Paulucci exited the highway and parked on the wrong side of the road. Law enforcement initiated a traffic stop and smelled a strong odor of marijuana coming from the vehicle. Paulucci did not have a driver’s license, registration, or insurance. Law enforcement subsequently searched the vehicle and located 63 grams of methamphetamine, cocaine, fentanyl pills, kief, and ecstasy pills. Law enforcement also located various dangerous weapons to include two machetes, multiple bladed weapons, a baton taser, and a firearm.
McKinney pleaded guilty to Possession of Methamphetamine with the Intent to Distribute on April 17, 2023. On July 21, 2023, McKinney was also sentenced to a term of 78 months’ imprisonment, and three years of supervised release.
This case was investigated by the Nebraska State Patrol.
Mexico Man Sentenced as Part of a Drug Trafficking ConspiracyRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced that U.S. District Judge Jeffrey L. Viken has sentenced a Sonora, Mexico, man convicted of Conspiracy to Distribute a Controlled Substance. The sentencing took place on August 11, 2023.
Miguel Armenta Rivas, 39, was sentenced to 14 years in federal prison, followed by five years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Rivas was indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury in August of 2021. He pleaded guilty on April 13, 2022.
As part of his role within the drug trafficking organization, Rivas coordinated with other co-conspirators and would transport large quantities of methamphetamine from Arizona and other places outside of South Dakota into the Rapid City, South Dakota area. Rivas also coordinated with others regarding the storage and distribution of the methamphetamine once it arrived in South Dakota. The conspiracy lasted more than a year’s time frame. In August of 2021, agents conducted a search warrant of multiple locations in the Rapid City area tied to the conspiracy and located over 70 pounds of methamphetamine, multiple pounds of heroin and cocaine, as well as thousands of fentanyl pills, approximately $144,000, and thirteen firearms. One co-conspirator, Noel Rivera, has also been sentenced. Rivera was sentenced in December of 2022 to 17.5 years in federal prison, followed by five years of supervised release. Another co-conspirator is awaiting trial.
This case was investigated by the Unified Narcotics Enforcement Team (UNET), Drug Enforcement Agency, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. UNET is comprised of law enforcement from the Pennington County Sheriff’s Office, Rapid City Police Department, South Dakota Division of Criminal Investigation, South Dakota Highway Patrol, and the South Dakota National Guard. Assistant U.S. Attorney Gina Nelson prosecuted the case.
Rivas was immediately remanded to the custody of the U.S. Marshals Service.
Mexican Man Sentenced to over 30 Years in Federal Prison for Conspiracy to Distribute a Controlled SubstanceRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Charles B. Kornmann has sentenced a Culiacan, Sinaloa, Mexico man convicted of Conspiracy to Distribute a Controlled Substance. The sentencing took place on August 14, 2023.
Diego Martin Duran Acosta, age 32, was sentenced to 33 years and nine months in federal prison and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Duran Acosta was indicted by a federal grand jury in January of 2022. He pleaded guilty on November 14, 2022.
The conviction stemmed from incidents when Duran Acosta distributed methamphetamine. He voluntary joined an agreement with others to have the methamphetamine sold to him so he could resell it and share with other co-conspirators. A search warrant was obtained for his hotel room on September 20, 2021. Law enforcement discovered approximately nine pounds of methamphetamine, which is a Schedule II controlled substance.
This case was investigated by the South Dakota Division of Criminal Investigation, the Douglas County Sheriff’s Office in Alexandria, MN, the West Central MN Drug and Violent Crimes Task Force, and the FBI. Assistant U.S. Attorney Mark Hodges prosecuted the case.
Duran Acosta was immediately remanded to the custody of the U.S. Marshals Service.
Martinsville Man Sentenced to 48 Months for Illegal Gun PossessionRead the Press Release
ROANOKE, Va. – A Martinsville, Virginia man, who police found lying next to a vehicle and unconscious, was sentenced today to 48 months in federal prison to be immediately followed by three years of supervised release for being a convicted felon in possession of a firearm.
David Charles Donavon, Jr., 35, pled guilty in March 2023 to one count of possession of a firearm by a previously-convicted felon.
According to court documents, in July 2022, Martinsville Police officers were called to check on a man lying next to a vehicle. Upon arrival, officers observed Donovan lying unconscious on the ground.
While police were checking on his well-being, they observed a 9mm semiautomatic pistol inserted into his waistband with a magazine containing 15 rounds of ammunition. Further investigation into his identity revealed that Donovan was a convicted felon who is prohibited from possessing a firearm.
United States Attorney Christopher R. Kavanaugh made the announcement.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Martinsville Police Department investigated the case.
Special Assistant United States Attorney J. Parker Gochenour, an Assistant Attorney General with the Virginia Attorney General’s Major Crimes and Emerging Threats Section, prosecuted the case.
Mandeville Man Pleads Guilty to Wire FraudRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that JOHN SUTTON (“SUTTON”), a resident of Mandeville, Louisiana, pled guilty in federal court on August 17, 2023 before Chief U.S. District Judge Nannette Jolivette Brown to one count of wire fraud in violation of Title 18, United States Code, Section 1343 in connection with a scheme to defraud the Department of Veterans Affairs, announced U.S. Attorney Duane A. Evans.
SUTTON’s co-conspirators, James Thomas Sinyard, Jr., a/k/a Jay Sinyard, and Mary Gigi Sinyard, a/k/a Gigi Sinyard, were charged by bill of information on February 14, 2023. On May 18, 2023, Jay and Gigi Sinyard pled guilty to one count of wire fraud. (EDLA Case No. 23-30 “G”). Co-conspirator Marc Quiroz was charged by bill of information on April 11, 2023. On August 17, 2023, Quiroz pled guilty to one count of wire fraud. (EDLA Case No. 23-60 “G”).
According to the Bill of Information, SUTTON submitted fraudulent affidavits for home aid services provided when he knew that those services were not actually provided. As part of the scheme to defraud, beginning in or around April 2013 and continuing until July 2018, SUTTON did knowingly devise and intend to devise a scheme and artifice to defraud the United States Department of Veterans Affairs (Veterans Affairs) and to obtain money and property by submitting false affidavits and applications to Veterans Affairs on behalf of veterans and their spouses, claiming that VetAttend had provided home services to the veterans, when in fact, it had not. During the scheme to defraud, Veterans Affairs issued funds to over 300 veterans and/or their surviving spouses from which SUTTON fraudulently appropriated, without the knowledge of the veterans, totaling approximately $4,065,969.18.
SUTTON faces a possible maximum term of imprisonment of twenty years, a $250,000 fine, up to three (3) years supervised release, and a mandatory $100 special assessment fee. The Court set sentencing of JOHN SUTTON for November 9, 2023.
The U.S. Attorney’s Office praised the work of the Department of Veterans Affairs – Office of Inspector General. The prosecution of the case is being handled by Assistant United States Attorney Kathryn McHugh, of the Financial Crimes Unit.
Management Company for 48 Skilled Nursing Facilities Agrees to Settle Americans with Disabilities Act ComplaintRead the Press Release
ALEXANDRIA, Va. – The United States Attorney’s Office announced a settlement agreement under the Americans with Disabilities Act (ADA) with Consulate Management Company, III, LLC (CMC), which manages 48 skilled nursing facilities.
The settlement agreement resolves allegations that a nursing facility managed by CMC had denied admission to an individual who is deaf because she would need sign language interpreting services. The ADA prohibits covered entities from excluding individuals with disabilities from their services because they require auxiliary aids or services, such as a sign language interpreter. The remedial terms of the settlement agreement apply to each of the nursing facilities managed by CMC.
To resolve this complaint, CMC agreed to pay $40,000 to the individual that was denied admission and a $50,000 civil penalty. CMC also agreed to make significant changes to the policies and procedures at the nursing facilities it manages. CMC will adopt new ADA policies at all 48 of the nursing facilities it manages. These policies will make the nursing facilities’ services accessible to individuals with communication disabilities, including those who require the services of a sign language interpreter. CMC will also designate an ADA Administrator, who will be responsible for ensuring each facility’s compliance with the ADA; enter into agreements with sign language interpreting service providers to provide services to individuals who need them; and provide training for its personnel on the ADA’s effective communication requirements.
Nursing facilities are an essential component of the healthcare system, as they provide sub-acute healthcare services, including post-hospitalization and long-term care. This settlement agreement ensures that several thousand additional nursing facility beds are accessible to individuals who are deaf or hard of hearing.
The matter was investigated by Assistant U.S. Attorney Steve Gordon, who is the Civil Rights Enforcement Coordinator for the U.S. Attorney’s Office. The civil claims settled by this ADA agreement are allegations only; there has been no determination of civil liability.
This office recently circulated a Dear Colleagues Letter reminding healthcare providers of the ADA’s effective communication requirements, identifying common issues that arise in these cases, and providing practical steps that healthcare providers can take to comply with the ADA. Additionally, the Department of Justice has a number of publications available to assist entities in complying with the ADA, including Effective Communication, and a Business Brief on Communicating with People Who Are Deaf or Hard of Hearing in Hospital Settings. For more information on the ADA and to access these publications, visit http://www.ada.gov or call the Justice Department’s toll-free ADA information Line at 800-514-0301 or 800-514-0383 (TDD).
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. of the U.S. Attorney’s Office for the Eastern District of Virginia.
Man and Woman Indicted for Child Neglect and Drug Offenses on Menominee Indian ReservationRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on August 15, 2023, a federal grand jury returned a three-count indictment charging a man and woman with child neglect and controlled substance offenses on the Menominee Indian Reservation. The indictment named Louis J. Chevalier (age: 32) and Michelle E. Grignon (age: 35) who both lived in a residence in the Legend Lake area of the Menominee Indian Reservation.
The indictment charged Chevalier and Grignon with the following counts:
COUNT
CHARGE
PENALTY
One
Maintaining Drug-Involved Premises
21 U.S.C. § 856(a)(1)
Up to 20 years in prison; up to a $500,000 fine; up to 3 years on supervised release; and a mandatory $100 special assessment
Two
Child Neglect – Drug Endangerment
18 U.S.C. §§ 1153(a) and (2)(a); Wis. Stat. § 948.21(2)(g) and (3)(e)(1)
Up to 18 months in prison; up to a $100,000 fine; up to 1 year on supervised release; and a mandatory $100 special assessment
Three
Child Neglect – Bodily Harm as a Consequence
18 U.S.C. §§ 1153(a) and (2)(a); Wis. Stat. § 948.21(2)(a) and (3)(d)
Up to 3 years in prison; up to a $100,000 fine; up to 1 year on supervised release; and a mandatory $100 special assessment
According to filed court documents, on or about March 31, 2023, officers with the Menominee Tribal Police Department and Menominee County Sheriff’s Office executed a search warrant based on drug activity at the Chevalier-Grignon residence. Officers discovered a 3-year-old child who was exposed to controlled substances and suffered from medical neglect caused by Grignon and Chevalier’s failure to take action to provide necessary care to the child.
The Menominee Tribal Police Department, Menominee County Sheriff’s Office, and Federal Bureau of Investigation investigated the case, with assistance from Willow Tree Cornerstone Child Advocacy Center in Green Bay. Assistant United States Attorney Andrew J. Maier will prosecute the case.
An indictment is only a charge and not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove his guilt beyond a reasonable doubt.
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Man Convicted of Submitting False Statements to COVID-19 Relief ProgramRead the Press Release
A federal jury in Memphis convicted a Tennessee man yesterday for making false statements on an attestation to receive $107,568.03 from the Provider Relief Fund, a federal program that provided financial assistance to medical providers offering care to Americans suffering from COVID-19.
According to court documents and evidence presented at trial, Raymond Earl Vallier, 52, of Fayette County, owned and operated North Delta Hospice and Palliative Services LLC in Southaven, Mississippi, from 2006 until June 2019, when he ceded ownership to Individual 1, who passed away in February 2020. By January 2020, North Delta Hospice had stopped billing Medicare and Medicaid and stopped paying employees. North Delta Hospice also did not file a 2020 federal income tax return. In April 2020, North Delta Hospice received a Provider Relief Fund payment of $107,568.03. When the payment was deposited into the company’s bank account, Vallier transferred some of the funds to accounts that he controlled. Then, he issued a $58,000 check to himself. To retain the Provider Relief Fund monies, Vallier submitted a false and fraudulent attestation on behalf of North Delta Hospice in the name of Individual 1, who at that time was deceased. In the attestation, Vallier accepted terms and conditions of payment, which involved certifying, among other things, that North Delta Hospice provided, after Jan. 31, 2020, diagnoses, testing, or care of individuals with possible or actual cases of COVID-19. Vallier also falsely certified that North Delta Hospice would only use the payment to prevent, prepare for, and respond to coronavirus, and only for health care related expenses and lost revenues attributable to coronavirus.
The jury convicted Vallier of two counts of making false statements. His sentencing is scheduled for Dec. 7. He faces a maximum penalty of five years in prison for each count of making false statements. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Kevin G. Ritz for the Western District of Tennessee, and Special Agent in Charge Tamala E. Miles of the Department of Health and Human Services Office of Inspector General (HHS-OIG) made the announcement.
HHS-OIG investigated the case.
Trial Attorney Sara E. Porter and Assistant Chief Justin Woodard of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Tony Arvin for the Western District of Tennessee are prosecuting the case.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted in March 2020. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the Provider Relief Fund, monies that were provided to medical providers that must be used for the medical providers’ coronavirus response.
The Medicare Fraud Strike Force is part of a joint initiative between the Justice Department and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Madison County Man Receives 7-Year Federal Sentence for Possession of Child Sexual Abuse MaterialRead the Press Release
EAST ST. LOUIS, Ill. – A U.S. District judge sentenced a Worden man to serve seven years in federal prison after he admitted to possessing more than 600 images of child sexual abuse material (CSAM).
Joseph Vieth, 36, was also ordered to pay a $5,000 fine, $5,000 in special assessments and $6,000 in restitution to the victims. Following his prison sentence, he will serve five years of supervised release.
“Law enforcement recovered hundreds of images of CSAM from the defendant’s phone—photos and videos taken of real children being abused in sexually-explicit situations,” said U.S. Attorney Rachelle Aud Crowe. “Vieth furthered the exploitation of the victims depicted by viewing and distributing the material, and his substantial prison sentence is warranted.”
According to court documents, Vieth was active in an online group identified as a messaging outlet for distributing child pornography from March 28 through Oct. 18, 2021. On four occasions between May 7 and June 21, 2021, he communicated with undercover law enforcement officers and distributed five different videos containing CSAM. Vieth also communicated with undercover law enforcement about meeting to sexually abuse a minor.
“The FBI prioritizes targeting those who put the safety of our children in jeopardy,” said FBI Springfield Special Agent in Charge David Nanz. “Our proactive efforts are designed to put those intent on harming children behind bars. This case and the resulting sentence represent the effectiveness of our efforts.”
On Oct. 5, 2021, Agents executed a search warrant on the defendant’s house and seized multiple electronic devices. While searching his cell phone, agents uncovered more than 600 images of CSAM.
The FBI Springfield Field Office led the investigation, and Assistant U.S. Attorney Ali Burns prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims.
Local Man Charged with Fraudulently Obtaining More Than $500,000 in COVID-19 Relief FundsRead the Press Release
MIAMI – A federal grand jury charged Emmanuel Bully, Jr., 44, of Miami-Dade County, Florida, with wire fraud. Per the indictment, Bully fraudulently obtained more than $500,000 in forgivable Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loans (EIDL) loans. These loans are guaranteed by the Small Business Administration under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
According to the indictment, between April 29, 2020, through approximately September 27, 2021, Bully submitted six PPP and EIDL loan applications on behalf of himself—as a sole proprietor—and each of his purported four companies: MB Tax Consultants LLC, MB Tax Services LLC, MB Tax Services Consultants, and Emmanuel B. In each PPP and EIDL loan application, Bully falsely stated the corporation’s average monthly payroll or gross revenues. These false and fraudulent applications ultimately led to Bully receiving over $500,000 in PPP and EIDL loan funds. Contrary to the purported purpose for the loans, Bully spent the EIDL and PPP loan proceeds for his personal use and benefit, not for payroll costs, interest on mortgages, rent, or utilities.
During Bully’s initial appearance before U.S. Magistrate Judge William Matthewman, the prosecutor alleged Bully was interviewed earlier this month by FBI special agents regarding the alleged fraud. The FBI arrested Bully as he attempted to leave the country on an international flight on August 16, 2023.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Jeffrey B. Veltri of the FBI, Miami Field Office, made the announcement.
FBI, West Palm Beach Field Office, investigated the case. Assistant U.S. Attorney Shannon Shaw is prosecuting it.
An indictment contains mere allegations, and all defendants are presumed innocent unless and until proven guilty in a court of law.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please click here.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 23-CR-80141.
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Lincoln Man Sentenced to 30 Months for Possession of a FirearmRead the Press Release
Acting United States Attorney Susan Lehr announced that Said Muhammad Almustaqiim, 20, of Lincoln, Nebraska, was sentenced today by Senior United States District Court Judge John M. Gerrard to 30 months’ imprisonment for being an Unlawful User of a Controlled Substance in Possession of a Firearm. Almustaqiim was also sentenced to a three-year term of supervised release to be served after he completes his prison sentence. There is no parole in the federal system. Almustaqiim pleaded guilty to his offense on November 17, 2022.
On March 21, 2021, the defendant was stopped by an officer with the Lincoln Police Department. The vehicle Almustaqiim was driving did not have a license plate and was displaying an expired “in-transit” sticker. Almustaqiim was the only person in the vehicle. The officer noticed the odor of burnt marijuana coming from the vehicle. Almustaqiim told the officer he had just placed a “roach” inside a drink container. A “roach” is a common slang term meaning the remains of a used marijuana cigarette. The officer searched the car and found 22 grams of marijuana, a digital scale, and $40 in United States currency in a backpack in the car. The police also found a loaded Canik, model TP9DA, 9mm handgun underneath the driver’s seat. Almustaqiim told officers that he was a user of marijuana.
The investigation was conducted by the Lincoln Police Department and the Federal Bureau of Investigation. The Bureau of Alcohol, Tobacco, Firearms, and Explosives assisted with an examination of the firearm. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Leesburg Man Sentenced for the Unlicensed Sale of FirearmsRead the Press Release
ALEXANDRIA, Va. – A Leesburg man was sentenced today to 20 months in prison for selling at least nine firearms, for a profit and without a license, that he originally purchased from Federal Firearms Licensees (FFLs) in the Eastern District of Virginia.
According to court documents from approximately June 17, 2021, through June 25, 2022, in Loudoun County, James Banville, 33, willfully engaged in the business of dealing in firearms without a license. During this period, the defendant purchased 18 firearms from FFLs and illegally sold at least nine of those firearms. To date, law enforcement has recovered three firearms originally purchased by Banville from crime scenes. Of those three, one firearm was recovered by D.C. Metro Police and was loaded with an extended magazine. Another firearm was recovered in New York City following a foot pursuit of a suspect by officers of the New York Police Department.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Craig Kailimai, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division, made the announcement after sentencing by Senior U.S. District Judge T. S. Ellis, III.
Assistant U.S. Attorney Nicholas Patterson and Special Assistant United States Attorney Jacques Singer-Emery prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:23-cr-54.
Lab Owner Sentenced for $463M Genetic Testing SchemeRead the Press Release
A Georgia man was sentenced today to 27 years in prison for his role in a scheme to defraud Medicare by submitting over $463 million in genetic and other laboratory tests that patients did not need, and that were procured through the payment of kickbacks and bribes.
According to court documents, Minal Patel, 44, of Atlanta, owned LabSolutions LLC (LabSolutions), a lab enrolled with Medicare that performed sophisticated genetic tests. Patel conspired with patient brokers, telemedicine companies, and call centers to target Medicare beneficiaries with telemarketing calls falsely stating that Medicare covered expensive cancer genetic tests. After the Medicare beneficiaries agreed to take a test, Patel paid kickbacks and bribes to patient brokers to obtain signed doctors’ orders authorizing the tests from telemedicine companies. To conceal the kickbacks and bribes, Patel required patient brokers to sign sham contracts that falsely stated that the brokers were performing legitimate advertising services for LabSolutions, when, as Patel well knew, the brokers were deceptively marketing to Medicare beneficiaries and paying kickbacks and bribes to telemedicine companies for genetic testing prescriptions.
“In one of the largest genetic testing fraud cases ever tried to verdict, today’s sentence makes clear that the Department will seek justice for those who put profits above patient care, including owners and executives,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “The sentence also demonstrates the Criminal Division’s ongoing commitment to fighting telemedicine and genetic testing fraud that exploits patients and drains health care benefit programs.”
Patel knew the telemedicine doctors robo-signed prescriptions for expensive genetic testing even though they were not treating the beneficiaries, often did not even speak with them, and made no evaluation of medical necessity. From July 2016 through August 2019, LabSolutions submitted more than $463 million in claims to Medicare, including for thousands of medically unnecessary genetic tests, of which Medicare paid over $187 million. In that timeframe, Patel personally received over $21 million from Medicare in connection with the fraud.
“Deception, kickbacks, and bribes have no place in the provision of legitimate genetic testing and telemedicine services to patients who need them,” said Special Agent in Charge Jeffrey B. Veltri of the FBI Miami Field Office. “Patel bilked hundreds of millions of dollars from Medicare through a complex testing fraud scheme. He is now paying the price for this crime. The FBI commends the Department of Health and Human Services Office of Inspector General (HHS-OIG) for their close partnership and diligence working this joint investigation. Our message to those who commit Medicare fraud and steal from U.S. taxpayers is clear: you will be caught and you will be held accountable.”
“This outcome sends a strong message that HHS-OIG will not tolerate those who exploit Medicare patients and who pay kickbacks to providers to prescribe medically unnecessary genetic tests, all for illegitimate financial gain,” said Acting Special Agent in Charge Julie Rivera of the HHS-OIG. “Our commitment to safeguarding the integrity of the Medicare program remains unwavering.”
The FBI and HHS-OIG investigated the case.
Trial Attorneys Jamie de Boer, Emily Gurskis, Reginald Cuyler Jr., Katherine Rookard, and Patrick Queenan of the Criminal Division’s Fraud Section prosecuted the case. Assistant U.S. Attorney Marx Calderon for the Southern District of Florida is handling asset forfeiture proceedings. An asset forfeiture hearing is scheduled for Aug. 25.
The case was brought as part of Operation Double Helix, a federal law enforcement action led by the Health Care Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section, focused on fraudulent genetic cancer testing that has resulted in charges against dozens of defendants associated with telemedicine companies and cancer genetic testing laboratories for their alleged participation in one of the largest health care fraud schemes ever charged.
Kennewick Man Sentenced to Federal Prison for Conspiring to Obstruct an Official ProceedingRead the Press Release
Spokane, Washington – Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced that Mohammed Naji Al-Jibory, age 54, of Kennewick, Washington was sentenced after having pleaded guilty to conspiracy to obstruct an official proceeding. United States District Judge Mary K. Dimke sentenced Al-Jibory to a 10-month term of imprisonment, to be followed by a 3-year term of court supervision after he is released from federal prison.
According to court documents, in February 2019, the Federal Bureau of Investigation (“FBI”) opened an official investigation into allegations that several individuals were involved in a scheme to defraud insurance companies and obtain money and property by staging automobile accidents and filing false and fraudulent claims with insurance companies. The FBI investigation expanded to an investigation by a federal grand jury empaneled in the Eastern District of Washington. In May 2020, the FBI executed warrants to search several residences in Washington and California for evidence of federal crimes.
In September 2020, when interviewed by the FBI, Al-Jibory falsely accused an FBI agent and another individual he and Ali Abed Yaser suspected of being an FBI informant of soliciting approximately a $20,000 bribe from a third person to make the case go away. In doing so, Al-Jibory engaged in misleading conduct toward the FBI agents with the intention of hindering, delaying, and preventing communication about their criminal activities to federal officers and a judge of the United States. Al-Jibory also attempted to corruptly obstruct, influence, and impede a federal grand jury proceeding and a criminal proceeding before a judge and court of the United States.
Vanessa R. Waldref, United States Attorney for the Eastern District of Washington said, “Obstructing official proceedings by falsely accusing a federal agent of bribery will not be tolerated. I commend the efforts of the law enforcement officers who investigated this case.”
This case was investigated by the Federal Bureau of Investigation and the United States Department of Health and Human Services, Office of Inspector General, with the assistance of the National Insurance Crime Bureau. This case is being prosecuted by George J.C. Jacobs, III, Assistant United States Attorney for the Eastern District of Washington.
4:21-CR-6042-MKD-23
Jury finds former Pike County deputy guilty of excessive use of forceRead the Press Release
COLUMBUS, Ohio – A federal jury has convicted a Piketon man of committing civil rights violations while employed as a Pike County deputy.
Jeremy C. Mooney, 48, violated a victim’s constitutional rights on Nov.18, 2019, while the victim was in the custody of the Pike County Sheriff’s Office.
The verdict was announced today following a trial that began on Aug. 16 before U.S. District Judge Edmund A. Sargus, Jr.
According to court documents and trial testimony, Mooney repeatedly used pepper spray and struck the victim while the victim was restrained and not posing a threat.
Mooney was working the night shift that spanned Nov. 17 to 18, 2019. He transported the victim from the jail to the Pike County Sheriff’s Office headquarters and placed the victim in a “violent prisoner restraint chair.”
For more than an hour, Mooney unlawfully used force against the victim on several occasions. For example, Mooney dragged the victim – who was in the restraint chair with his hands secured behind his back – outside, before spraying him directly in the face with pepper spray.
The victim writhed in pain and tipped the chair back off the curb, landing on his back. Mooney again deployed the pepper spray directly into the victim’s face.
After bringing the victim back inside, Mooney returned to the restrained victim on three more occasions and punched the victim in the head 11 times. Mooney punched the victim with enough force to break his own hand.
All these unlawful uses of force occurred while the victim posed no threat to himself or others.
A former Pike County Sheriff’s Office supervisor, William Stansberry, Jr., 47, of Chillicothe, was also charged in this case. Stansberry violated the victim’s constitutional rights by willfully failing to intervene to prevent Mooney’s conduct.
Stansberry pleaded guilty in July 2023 to deprivation of civil rights under color of law. Mooney was convicted today of three counts of the same crime, which is punishable by up to 10 years in prison.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Kristen Clarke, Assistant Attorney General of the Department of Justice’s Civil Rights Division; and J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the verdict. Assistant United States Attorney Peter K. Glenn-Applegate and Trial Attorney Cameron A. Bell from the Justice Department’s Civil Rights Division are representing the United States in this case.
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Jacksonville Fugitive Pleads Guilty to Possession of Counterfeit Government CheckRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces that Verdell Terria Jones (58, Jacksonville) has pleaded guilty to possession of a fictitious government document involving a counterfeit government check. Jones faces a maximum penalty of 25 years in federal prison and payment of restitution to the victims that she defrauded. Her sentencing hearing is set for November 1, 2023.
Jones was arrested on April 11, 2017. After being released on pre-trial supervision, Jones fled the jurisdiction in August 2017 and a warrant was issued for her arrest. Jones remained a fugitive for more than five years until the FBI located and arrested her in April 2023.
According to the plea agreement and court proceedings, Jones was involved with the Sovereign Citizen Movement and did not recognize the authority of the U.S. government. As part of a scheme to defraud, Jones obtained counterfeit checks made to look like genuine checks issued by the U.S. Department of Treasury. Superimposed on the counterfeit checks was language such as “an obligation of the United States,” “statutory legal tender obligation of the United States,” and an image of the Statue of Liberty that appeared to be identical to the image contained on genuine government financial documents issued by the U.S. Department of Treasury.
In 2015, Jones contacted an individual in Jacksonville who was selling a car. Jones agreed to purchase the car by paying off the balance on the car loan. Jones sent the financial institution a counterfeit check for $25,000 that appeared to be drawn on the U.S. Department of Treasury in an attempt to defraud both the financial institution and the individual selling the car.
This case was investigated by the Federal Bureau of Investigation’s Joint Terrorism Task Force. It is being prosecuted by Assistant United States Attorneys Kevin C. Frein and Michael Coolican.
Honduran Man Charged with Illegal ReentryRead the Press Release
NEW ORLEANS, LOUISIANA – ELIAS MANUEL MURCIA-BONILLA, age 32, a native of Honduras, was charged yesterday in a one-count indictment with Illegal Reentry in violation of Title 8, United States Code, Section 1326(a), announced United States Attorney Duane A. Evans.
MURCIA-BONILLA faces a maximum term of imprisonment of 2 years, a term of supervised release up to 1 year, a fine of up to $100,000.00, and a mandatory special assessment fee of $100.00.
U.S. Attorney Evans reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of Homeland Security Investigations, Enforcement and Removal Operations agents in investigating this matter. Assistant United States Attorney Jon Maestri of the General Crimes Unit is in charge of the prosecution.
Hartford Man Pleads Not Guilty to Felon in Possession ChargeRead the Press Release
Burlington, Vermont – The Office of the United States Attorney for the District of Vermont stated that on August 17, 2023, James Ingerson, 53, of Hartford, Vermont, pleaded not guilty to a single-count indictment that charges him with being a previously convicted felon in possession of a firearm. At the hearing, United States Magistrate Judge Kevin J. Doyle ordered Ingerson to remain in custody during the pretrial proceedings.
According to court records and proceedings, on June 7, 2023, law enforcement executed a search warrant at Ingerson’s home in connection with a drug trafficking investigation. During execution of that search warrant, law enforcement discovered a shotgun. During a statement given to law enforcement after waiving his Miranda rights, Ingerson admitted to possessing the weapon. At the time, Ingerson had previously been convicted of approximately eight (8) felonies, including a 2003 conviction for burglary for which he received a 20-year sentence.
The United States Attorney’s Office emphasizes that an indictment contains allegations only and that Ingerson remains presumed innocent unless and until he is convicted of a crime. Ingerson faces a maximum sentence of 15 years of imprisonment if convicted. The actual sentence would be determined with reference to Federal Sentencing Guidelines.
U.S. Attorney Nikolas P. Kerest commended the investigative efforts of the Hartford, Norwich, and Lebanon, New Hampshire Police Departments, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant U.S. Attorney Barbara A. Masterson is handling the prosecution of Ingerson. Ingerson is represented by Matthew Anderson, Esq.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit https://www.justice.gov/psn.