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Wednesday 7 December 2022
Pikeville Medical Center to Pay $4.39 Million to Resolve Alleged Controlled Substance Act Violations That Allowed Drug DiversionRead the Press Release
LEXINGTON, Ky. — The United States Attorney’s Office for the Eastern District of Kentucky announced that Pikeville Medical Center (“PMC”) has agreed to pay the United States $4,394,600 in civil penalties, to resolve allegations that its violations of the Controlled Substances Act’s (“CSA”) recordkeeping provisions resulted in significant diversion of dangerous opioids from its pharmacy. The settlement is one of the nation’s largest relating to CSA recordkeeping violations involving allegations of drug diversion at a hospital. The settlement is the third-largest civil penalty ever obtained from a hospital system under the CSA.
As a registrant with the U.S. Drug Enforcement Administration (“DEA”), PMC had certain recordkeeping obligations, which included maintaining complete and accurate records of each controlled substance received, dispensed, and disposed. DEA has the authority to inspect the records of registrants like PMC, to verify that their records are complete, accurate, and in compliance with the CSA.
In settlement documents, the Government contends that over a two-year period, PMC violated multiple provisions of the CSA relating to recordkeeping, including by failing to maintain complete and accurate inventories and dispensing records for Schedule II controlled substances. The Government alleges that as a result of these failures, a PMC pharmacy technician was able to divert more than 60,000 dosage units of oxycodone, hydrocodone, and methadone from PMC’s narcotics vault and Pyxis MedStations, from January 1, 2016, through September 7, 2018. The controlled substances diverted from PMC ultimately were distributed by the pharmacy technician’s husband to the community. Both the PMC pharmacy technician and her husband have pled guilty to violating 21 U.S.C. § 846, conspiracy to distribute Schedule II controlled substances, in the matter of United States v. Perry et al., 7:20-cr-12.
“As the opioid crisis continues to plague communities in Kentucky, hospitals like PMC have a responsibility and critical role to play. They must ensure that controlled substances are carefully tracked and protected against theft and loss, so that these drugs are not diverted for illegal uses,” said Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky. “My office will continue to seek appropriate civil penalties from healthcare providers who are careless with their recordkeeping and fail to provide effective safeguards against drug diversion.”
“All DEA registrants, to include hospitals and healthcare providers, are obligated to adhere to the strict record-keeping requirements outlined in the Controlled Substances Act; failure to do so often leads to the diversion of controlled substances,” said Special Agent in Charge Todd Scott, head of the Drug Enforcement Administration’s Louisville Division. “The size of this fine shows how serious this situation is. Hopefully, Pikeville Medical Center will do a better job in the future with their record keeping and the resulting harm inflicted on the community can be reversed.”
As part of the settlement, PMC has entered into a three-year Memorandum of Agreement with DEA, which prescribes the hospital’s drug-handling responsibilities going forward. These steps include:
- Permitting DEA personnel to enter its registered location at any time during regular business hours without an administrative inspection warrant, and without prior notification to PMC, to verify compliance with the Memorandum of Agreement;
- Conducting an inventory of select controlled substances every six months and providing the results to DEA;
- Investigating and documenting any concerns about diversion, employee theft, or significant loss of controlled substances;
- Reporting suspicious controlled substance incidents to DEA on a quarterly basis; and
- Providing mandatory training on federal laws and regulations pertaining to controlled substances for all employees and contract personnel who have access to controlled substances.
PMC cooperated with the DEA’s investigation and self-reported the diversion. As recognized in the Memorandum of Agreement, PMC took substantial steps to address its deficiencies in its handling of controlled substances before the settlement was entered.
A main objective of the CSA is controlling illegitimate traffic in controlled substances. To prevent the diversion of controlled substances, the CSA regulates persons and entities that manufacture, distribute, and dispense controlled substances. The Government’s investigation and resolution of this matter illustrates its continued emphasis on combating the prescription opioid crisis by ensuring that opioids are not diverted. Anyone with concerns about prescription drug diversion can report them to the DEA, by submitting a tip at https://www.dea.gov/submit-tip.
The case was investigated by the Drug Enforcement Administration’s London Resident Office Diversion Group, with assistance from the Kentucky Board of Pharmacy, and handled by the U.S. Attorney’s Office’s Affirmative Civil Enforcement section, including Assistant U.S. Attorneys Meghan Stubblebine and Mary Melton. The claims resolved by the settlement are allegations only, and there has been no determination of liability.
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Philadelphia Man Charged with Impersonating a USPS Mail Carrier, Possessing USPS Arrow Keys, and Mail TheftRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Zachkey James, 27, of Philadelphia, PA, was charged by Indictment with impersonation of a U.S. Postal Service (USPS) Mail Carrier, unlawful possession of three USPS Arrow Keys, mail theft, and possession of stolen mail.
As alleged in the Indictment, in July 2022, while pretending to be a USPS Mail Carrier, James stole undelivered mail from a collection box located near the Kingsessing Post Office in Philadelphia. In October 2022, again while pretending to be a USPS Mail Carrier, James stole undelivered mail from a collection box located near the East Germantown Post Office in Philadelphia. And in November 2022, James possessed three Arrow Keys and approximately 15 mail-in ballots that had been stolen from USPS collection boxes.
If convicted, the defendant faces a maximum of 31 years in prison and a $1,500,000 fine.
The case was investigated by the United States Postal Inspection Service, and is being prosecuted by Assistant United States Attorney Patrick Brown.
U.S. Attorney Romero and USPIS Assistant Inspector in Charge John Walker made the announcement today: https://twitter.com/USAO_EDPA/status/1600588080150372352.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Parkersburg Woman Pleads Guilty to Fentanyl CrimeRead the Press Release
CHARLESTON, W.Va. – Mary Elizabeth Curran, 37, of Parkersburg, pleaded guilty today to possession with intent to distribute 40 or more grams of fentanyl.
According to court documents and statements made in court, on April 27, 2021, Curran obtained a quantity of fentanyl in Columbus, Ohio, which she intended to distribute in the Parkersburg area. On that date, Curran was a passenger in a vehicle stopped by law enforcement officers after it entered Wood County from Ohio. Officers suspected that Curran was hiding controlled substances on her person, and she was transported to the North Central Regional Jail for an X-ray body scan.
While awaiting the body scan, Curran clogged a bathroom toilet when she attempted to flush two plastic bags containing powder. The toilet was taken apart and the bags were recovered. The West Virginia State Police Forensic Laboratory confirmed one bag contained approximately 56 grams of fentanyl and the other bag contained approximately 28.5 grams of a fentanyl analogue. The lab also found Curran’s DNA on one bag, and her fingerprint on the other.
Curran is scheduled to be sentenced on March 2, 2023, and faces a mandatory minimum of five years in prison, at least four years of supervised release, and a $5,000,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Parkersburg Drug and Violent Crime Task Force and the West Virginia State Police.
United States District Judge Joseph R. Goodwin presided over the hearing. Assistant United States Attorney Nowles Heinrich is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-136.
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Omak Domestic Abuser Sentenced to 46 Months in Federal Prison for Assaulting His Intimate Partner on the Colville Indian ReservationRead the Press Release
Spokane, Washington – Senior U.S. District Court Judge Rosanna Malouf Peterson sentenced Shawn Vincent Best, Sr., age 62, of Omak, Washington, to 46 months in federal prison for a domestic assault that occurred in August 2021. Judge Peterson also imposed 3 years of federal supervised release. Best pled guilty earlier this year to Assault Resulting in Substantial Bodily Injury in Indian Country.
In announcing the sentence, Judge Peterson varied upward from the United States Sentencing Guidelines range, as determined by the Court. In doing so, Judge Peterson emphasized the need to protect victims of domestic abuse from Mr. Best. The Court also described the seriousness of the offense and the traumatizing effects on the victim, whom Judge Peterson commended for her strength and courage for coming forward and speaking at sentencing. The Court further acknowledged the extreme psychological impact of the offense and ruled that Best’s criminal record underrepresented his history of domestic abuse.
According to court documents and proceedings, in August and September 2021, a female victim contacted Colville Tribal Police and reported that Best physically assaulted and threatened to kill her if the victim told law enforcement about the assaults. Specifically, on August 12, 2021, Best became upset that his victim received a ride home from another man. Best shoved the victim, causing her to fall to the floor, resulting in substantial bodily injury and extreme pain. On September 21, 2021, Best again assaulted this same victim – striking her with a belt and strangling her. As he did so, Best told the victim, “If [you] ever say anything or call the cops, there would be no way they would be able to find [your] body.”
Court documents further indicate that at the time of the offenses, Best had prior arrests and convictions for domestic violence. Despite his history of domestic violence, the sentence announced today represents Best’s first felony conviction.
“My office is committed to prosecuting those who commit violence against their spouses or intimate partners,” U.S. Attorney Vanessa R. Waldref stated. “Domestic violence victims often struggle to access the justice system and get the protection and resources they need. I am grateful for the law enforcement agents, victim advocates, and prosecutors who handle these challenging cases. By working together and with those who are victims of violent crime, we can ensure that all men, women and children are protected not only from domestic violence, but also from retaliation when they disclose what they experienced.”
U.S. Attorney Waldref continued, “Native Americans experience some of the highest rates of violence in the country, a situation that is all the more tragic in light of the generations of trauma already suffered by Indigenous people, especially Native American women. It took tremendous courage for Mr. Best’s victim in this case to speak on behalf of herself and for Mr. Best’s prior victims. Today, their voices were heard.”
“Tragically, this victim endured the trauma of being attacked by a trusted partner, who should have protected her. I commend the brave survivors who report to law enforcement, the advocates who help them heal, and the investigators and prosecutors who bring the perpetrators to justice,” said Richard A. Collodi, Special Agent in Charge of the FBI’s Seattle field Office. “The FBI will continue to work with our law enforcement and community partners to protect citizens from these types of violent crimes.”
The case was investigated by the Colville Tribal Police Department and the Federal Bureau of Investigation. This case was prosecuted by Richard R. Barker, Assistant United States Attorney for the Eastern District of Washington.
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O.C. Man Sentenced to 6 Years in Federal Prison for Pimping and Opening Fire on Bystanders While He Was on Supervised ReleaseRead the Press Release
SANTA ANA, California – An Irvine man has been sentenced to 72 months in federal prison for – while on supervised release for committing a prior federal felony – engaging in pimping and shooting a firearm at women on the streets of San Bernardino, the Justice Department announced today.
Coby Christopher House, 23, was sentenced late Tuesday by United States District Judge David O. Carter.
House pleaded guilty on June 21 to one count of conspiracy to use a facility in interstate commerce in aid of unlawful activity and two counts of unlawful possession of firearms and ammunition by a convicted felon.
In October 2019, while he was on supervised release for an alien smuggling conviction in San Diego federal court, House acted as a pimp, overseeing two women working in prostitution and receiving the money from their sex work. On October 10, 2019, House shot a firearm several times at other women working in prostitution who approached House’s two sex workers, who were then soliciting clients at the time. The other women were concerned that House’s women would attract the attention of law enforcement, according to court documents.
Law enforcement arrested House the following day after a two-mile, high-speed chase.
House admitted in his plea agreement to unlawfully possessing a .22-caliber revolver and a .380-caliber handgun and ammunition despite his prior felony conviction for alien smuggling.
“When he learned of a confrontation between the women working for him and other women working as prostitutes, [House] pulled out a gun and shot it many times at another person,” prosecutors wrote in a sentencing memorandum. “Though he missed, this conduct is deserving of a long stretch in federal prison.”
Olbert Maximilian Lara, 23, of Riverside, a co-defendant in this case, pleaded guilty on April 19 to one count of being an accessory after the fact for being the driver of the car when House attempted to flee from police in October 2019. Lara was sentenced to three years of probation and was fined $500.
The FBI and the San Bernardino Police Department investigated this matter.
Assistant United States Attorneys Greg Scally and Kristin Spencer of the Santa Ana Branch Office prosecuted this case.
Nine Indicted on Charges Involving Embezzlement of Hundreds of Thousands of Financial Aid Funds from A Higher Education InstitutionRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces the unsealing of an indictment charging Andrea Mitchell (53, Tampa), Lester Best (54, Tampa), Gloria Gutierrez (51, Lakeland), Sylvester Robinson (57, Temple Terrace), Neukenya Jokines (52, Riverview), Kinya Lillie (52, Tampa), Jewel Jordan (52, Brandon), Andre Wright (54, Hinesville, GA) and Rozaundra Lillie (53, Tampa) with conspiracy to commit wire fraud. Mitchell is further charged with aggravated identity theft. If convicted, each faces a maximum penalty of 20 in federal prison. If convicted for aggravated identity theft, Mitchell faces a mandatory minimum of 2 years’ imprisonment, in addition to the sentence imposed for conspiracy to commit wire fraud. The indictment also notifies the individuals that the United States intends to forfeit all assets which are alleged to be traceable to proceeds of the offense.
According to the indictment, Mitchell served as a financial services manager at a higher education institution in the Middle District of Florida. Mitchell and her coconspirators used her position to embezzle hundreds of thousands of dollars in financial aid. In order to steal the funds, Mitchell stole the identities of hundreds of current and formerly enrolled students at the higher education institution, then issued checks to coconspirators using those funds. The coconspirators cashed the checks at various financial institutions and shared the proceeds.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Tampa Police Department, the Federal Bureau of Investigation, and the United States Secret Service. It will be prosecuted by Assistant United States Attorney Candace Garcia Rich.
New York Man Charged with Possession with Intent to Distribute 95 Kilograms of Cocaine and FentanylRead the Press Release
NEWARK, N.J. – A New York man was arrested in East Rutherford, New Jersey for possessing with intent to distribute approximately 70 kilograms of cocaine and 25 kilograms of fentanyl, U.S. Attorney Philip R. Sellinger announced today.
Alejandro Nouel Lajud, 39, of Yonkers, New York, is charged by complaint with one count of possession with intent to distribute cocaine and fentanyl. He was arrested and had his initial court appearance on Dec. 5, 2022, before U.S. Magistrate Judge José R. Almonte and was detained.
According to documents filed in this case and statements made in court:
On Dec. 5, 2022, Lajud was stopped on the New Jersey Turnpike in East Rutherford while driving a tractor-trailer erratically. During a lawful search of the tractor-trailer, law enforcement officers discovered approximately 95 brick-shaped packages, each of which weighed approximately one kilogram. Approximately 70 of the packages contained suspected cocaine and approximately 25 contained suspected fentanyl.
The count of possession with intent to distribute cocaine and fentanyl carries a maximum potential penalty of life imprisonment and a mandatory minimum penalty of 10 years in prison and a maximum fine of $10 million.
U.S. Attorney Sellinger credited special agents of the New York Strike Force, under the direction of Drug Enforcement Administration Special Agent in Charge Frank A. Tarentino III, with the investigation leading to the charge.
This investigation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. The arrest was the result of an investigation by the New York Strike Force, a crime-fighting unit comprising federal, state and local law enforcement agencies supported by the Organized Crime Drug Enforcement Task Force and the New York/New Jersey High Intensity Drug Trafficking Area.
The New York OCDETF Strike Force is housed at the DEA’s New York Division and includes agents and officers of the DEA; the New York City Police Department; the New York State Police; Immigration and Customs Enforcement – Homeland Security Investigations; the U. S. Internal Revenue Service Criminal Investigation Division; U.S. Customs and Border Protection; the U.S. Marshals Service; New York National Guard; U.S. Coast Guard; Port Washington Police Department; New York State Department of Corrections and Community Supervision; and the Suffolk County District Attorney’s Office.
The government is represented by Assistant U.S. Attorney Jenny Chung of the OCDETF/Narcotics Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Nevada man pleads guilty to production of images of child rape and abuseRead the Press Release
Seattle – A 44-year-old resident of Dayton, Nevada, who previously resided in Burlington, Washington, pleaded guilty today in U.S. District Court in Seattle to production of child pornography, announced U.S. Attorney Nick Brown. Between 2014 and 2020, John Holcomb made sexually explicit videos of a young child left in his care. Holcomb faces a mandatory minimum 15 years in prison and up to 30 years in prison when sentenced by U.S. District Judge Robert S. Lasnik on March 16, 2023.
According to records filed in the case, in 2020, law enforcement in Skagit County was investigating Holcomb for an unrelated criminal allegation. As part of that investigation, law enforcement served a court authorized search warrant on Holcomb allowing them to seize his electronic devices. The forensic examination revealed videos depicting child sexual abuse. Law enforcement then sought a new search warrant from a Skagit County Superior Court judge to further review the devices for images of child sexual abuse.
The forensic examination revealed three videos of Holcomb sexually abusing a child who was about 6 or 7 years old.
As part of his guilty plea, Holcomb will register as a sex offender.
The case was investigated by the FBI, the Burlington Police Department, the Skagit County Sheriff’s Office, the Mt. Vernon Police Department, and the Oak Harbor Police Department.
The case is being prosecuted by Assistant United States Attorney Matthew Hampton and Special Assistant United States Attorney Laura Harmon. Ms. Harmon is a Senior Deputy King County Prosecutor who is specially designated to prosecute child exploitation crimes in federal court.
Monongalia County woman sentenced for firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Tara Morgan, of Morgantown, West Virginia, was sentenced today to 36 months of incarceration for a firearms charge, United States Attorney William Ihlenfeld announced.
Morgan, 50, pleaded guilty in August 2022 to one count of “False Statement in Connection with the Acquisition of Firearms.” Morgan admitted to working with another to make false statements to purchase a firearm from a licensed dealer in May 2020 in Monongalia County.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
Chief U.S. District Judge Thomas S. Kleeh presided.
Missouri Man Convicted at Trial of a Dozen Child Pornography ChargesRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Joseph Willard, 59, of Cole Camp, Missouri, was convicted at trial with 12 counts of child exploitation offenses arising from his abuse of seven minor children, ranging in age from eight to 17, while pretending to own an international modeling agency.
In August 2019, the defendant was charged by Indictment, which was then subsequently superseded four additional times with more charges as additional victims were identified, which resulted in the defendant ultimately being charged with 11 counts of production and attempted production of child pornography, and one count of possession of child pornography. As recounted by victims and their parents during the trial, Willard pretended to own a modeling agency with offices in major cities such as Milan, Italy and New York City, and represented that he could secure paid modeling contracts for the children and teenagers. He traveled from state to state in a conversion van and used this ruse to get the minors alone and would then take sexually explicit images of them, sometimes sexually assaulting them as well. Evidence presented at trial demonstrated that the defendant produced these images in four states: Florida, Tennessee, Missouri, and Pennsylvania.
“Joseph Willard chose to flout the law and pursue his own gratification by concocting this elaborate hoax to lure vulnerable victims,” said U.S. Attorney Romero. “His actions are some of the most heinous offenses prosecuted by this Office, and I thank the dedicated investigators and prosecutors who worked on this case for years. As a result of this conviction, he will remain safely behind bars where he can no longer hurt any more children.”
“Joseph Willard devised a twisted scam to lure children into his clutches, specifically to abuse and exploit them,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “With his hideous crimes, this predator has forfeited his right to walk among us. It will be gratifying day when his sentence is handed down and that cell door clangs shut behind him.”
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 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.
The case was investigated by Federal Bureau of Investigation and the Bethlehem Police Department, and is being prosecuted by Assistant United States Attorney Sherri A. Stephan.
Mexican National Pleads Not Guilty to Attempted Unlawful Transportation of Foreign Nationals in VermontRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Antonio Alvarez, 45, of New York, NY was arraigned today in United States District Court in Burlington on an indictment charging him with unlawfully attempting to transport individuals that entered the United States illegally. Alvarez pleaded not guilty at his appearance before U.S. Magistrate Judge Kevin J. Doyle and remains on release conditions.
According to public documents in the case, during the evening of November 7, 2022, a United States Border Patrol Agent performing surveillance in the vicinity of Moon Road in Derby Line, Vermont, less than a mile from the Canadian border, observed six individuals, who were subsequently identified as Mexican nationals without identification or paperwork allowing them to reside in the United States legally. Shortly thereafter, another Border Patrol Agent stopped a Toyota Tacoma with New York plates that was driving slowly in a remote area approximately one mile from where Border Patrol encountered the six individuals. The driver of the Toyota Tacoma was identified as Antonio Alvarez, a Mexican national living in New York, NY who is in immigration removal proceedings. Alvarez later admitted that he was to be paid $2,000 for picking up and transporting the Mexican nationals.
The U.S. Attorney’s Office emphasizes that an indictment is an accusation only and that the defendant is presumed innocent until and unless proven guilty. As currently charged, Alvarez faces up to 5 years of imprisonment if convicted. Any sentence in the case will be advised by the United States Sentencing Guidelines.
U.S. Attorney Nikolas Kerest credited the agents of the United States Border Patrol for their investigation and apprehension of Antonio Alvarez and their continued efforts to prevent the exploitation of foreign nationals by human-smuggling organizations.
Assistant U.S. Attorney Andrew C. Gilman represents the United States in this case. Alvarez is represented by Assistant Federal Public Defender Steven Barth.
Members of Drug Trafficking Conspiracy Plead Guilty to Drug and Gun Charges in Operation “Titan Fall”Read the Press Release
Orlando, Florida – United States Attorney Roger B. Handberg announces that Carlos Alberto Roman (56, Orlando) has pleaded guilty to possession of controlled substances and possessing a firearm equipped with a silencer in furtherance of that drug crime. Roman faces a minimum mandatory sentence of 30 years, up to life, in federal prison. Coconspirators James Richard Howell (37, Silver Springs) and Kenneth Angel Vera (31, Orlando) pleaded guilty on December 5 and December 6, 2022, respectively, to their roles in the drug conspiracy with Roman. A final coconspirator, Joely Manuel Burgos (39, Orlando), is scheduled for trial on January 17, 2023.
On August 9, 2022, 13 individuals were charged in two indictments in Operation “Titan Fall,” a multi-agency Organized Crime Drug Enforcement Task Force (OCEDTF) investigation. Roman was charged with conspiracy to distribute fentanyl and cocaine in a four-person indictment along with Howell, Burgos, and Vera. On August 31, 2022, a superseding indictment charged Roman with six additional counts of drug possession, possession of a firearm equipped with a silencer in furtherance of drug trafficking, unlawful possession of firearms, ammunition, and explosive grenades by a convicted felon, and unlawful possession of a short-barreled rifle, pistols with vertical foregrips, and silencers.
According to the plea agreement, Roman supplied cocaine and fentanyl to Howell, Burgos, and Vera for resale and regularly communicated with each of them. On August 9, 2022, Roman was arrested at his home with 19 firearms, 6 silencers, 3 flash-bang grenades, and thousands of rounds of ammunition. All but three of the firearms depicted below were recovered from Roman’s home:
This case was investigated by the Drug Enforcement Administration with assistance from Homeland Security Investigations (HSI), the U.S. Postal Inspection Service, the U.S. Secret Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Florida Highway Patrol, the Winter Garden Police Department, the Orange County Sheriff’s Office, the Kissimmee Police Department, the Winter Park Police Department, the Clermont Police Department, the Orlando Police Department, the Apopka Police Department, the Ocoee Police Department, the Osceola County Sheriff’s Office, and the Seminole County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Dana E. Hill.
Operation Titan Fall is a multi-agency Organized Crime Drug Enforcement Task Force (OCEDTF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Maryland man sentenced for drug chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Dominick Mickens, of Hagerstown, Maryland, was sentenced today to 63 months of incarceration for a drug charge, United States Attorney William Ihlenfeld announced.
Mickens, 39, pleaded guilty in August 2022 to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Heroin, Fentanyl, Cocaine Base, and Cocaine Hydrochloride.” Mickens admitted to working with others to distribute fentanyl, heroin, cocaine base, and cocaine hydrochloride from August 2020 to June 2021 in Berkeley County and elsewhere.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Eastern Panhandle Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge Gina M. Groh presided.
Maryland man admits to role in drug trafficking enterpriseRead the Press Release
MARTINSBURG, WEST VIRGINIA – Keyontray Daniel Johnson, of Worton, Maryland, has admitted to his role in a multi-state organized drug trafficking enterprise dubbed the “19th Street Enterprise,” United States Attorney William Ihlenfeld announced.
Johnson, also known as “38,” age 26, pleaded guilty today to one count of “RICO Conspiracy.” Johnson admitted to working with others as a member of the “19th Street Enterprise,” a criminal organization that engaged in acts of violence, robbery, money laundering, mail and wire fraud, providing and selling false identification documents, and drug trafficking. The enterprise operated in West Virginia, Pennsylvania, Maryland, Delaware, and Puerto Rico.
Johnson faces up to 20 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The FBI; the Department of Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Marshals Service; the West Virginia State Police; the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative; and the West Virginia Air National Guard investigated. The Eastern District of Pennsylvania U.S. Attorney’s Office and the Kent County Sheriff’s Office assisted.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
U.S. Magistrate Judge Robert W. Trumble presided.
Find the related case here: https://www.justice.gov/usao-ndwv/pr/22-people-indicted-drug-trafficking-enterprise-spanned-several-states
Man Sentenced to over 17 Years in Federal Prison for Distribution of Child Sexual Abuse MaterialRead the Press Release
SAN ANTONIO – A Garden Ridge man was sentenced Tuesday to 210 months in prison, 10 years supervised release and ordered to pay $30,000 restitution to six victims for distributing child sexual abuse material.
Kyle Ross Rivers, 38, pleaded guilty on August 23, 2022 to one count of distribution of child pornography after trafficking the material to an undercover agent in a group using a social media messaging app. Investigators found that Rivers possessed thousands of images and videos of child sexual abuse material involving prepubescent children. At the time of his arrest, Rivers was working at a Residential Autism Treatment Center, providing care for many nonverbal children.
“The sexual abuse of children is horrific and individuals like Mr. Rivers who traffic in this despicable material continue the exploitation of these innocent children,” said U.S. Attorney Ashley C. Hoff for the Western District of Texas. “The sentence imposed by the court reflects the gravity of the offense committed.”
"The exploitation of innocent children is a heinous crime and demands our relentless focus on bringing these terrible subjects to justice," said Special Agent in Charge Oliver E. Rich Jr. for the FBI San Antonio Field Office. "This sentencing ensures Mr. Rivers will be held accountable for his actions and sends a message that these horrible crimes will not be tolerated in our community."
FBI San Antonio and FBI Chattanooga investigated the case.
Assistant U.S. Attorney Tracy Thompson 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. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Laurel Man Pleads Guilty to Possession with Intent to Distribute MethamphetamineRead the Press Release
Hattiesburg, Miss. - A Laurel man pled guilty to possession with intent to distribute methamphetamine, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge David L. Denton of Homeland Security Investigations.
Moses Ray McDonald, 43, pled guilty on December 1, 2022, in U.S. District Court in Hattiesburg.
According to court documents, on June 8, 2022, the Jones County Mississippi Sheriff’s Office, Narcotics Division, made a controlled purchase of approximately 29 grams of methamphetamine from McDonald at the residence in which he was known to reside in Laurel.
McDonald was subsequently indicted by a federal grand jury for possession with intent to distribute methamphetamine.
McDonald is scheduled to be sentenced on March 22, 2023, at 9:45 a.m., in Hattiesburg, and faces a maximum penalty of 20 years in prison and a $1,000,000 fine. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case was investigated by Homeland Security Investigations, Border Enforcement Security Task Force (DHS Gulfport BEST), and the Jones County Mississippi Sheriff’s Office, Narcotics Division.
The case is being prosecuted by Assistant U.S. Attorneys Shundral Cole and Andrea Jones.
Karlsruh, ND, Man Sentenced to 60 Years in Federal Prison for Production of Sexually Explicit Material of Minor ChildrenRead the Press Release
BISMARCK – United States Attorney Jennifer Klemetsrud Puhl announced that on December 6, 2022, U.S. District Court Judge Daniel Hovland sentenced Dwayne Gerard, Sr., Age 63 of Karlsruh, ND, to serve 60 years in federal prison, followed by lifetime supervised release for eight counts of Sexual Exploitation of Minors, for which Gerard, Sr., pleaded guilty to on August 17, 2022. During the sentencing hearing, several family members provided statements regarding the tremendous impact the sexual abuse has had on the victims and their families. During the sentencing, Judge Daniel L. Hovland called the defendant "a parent’s worst nightmare" and one of the worst cases he has seen on the bench.
This case came to the attention of law enforcement after it was reported that Gerard, Sr., had been repeatedly sexually abusing two children. A search of his electronic devices revealed images and videos depicting his sexual abuse of these children.
"Homeland Security Investigations is committed to combatting child exploitation, and I’m proud of our agents and law enforcement partners who brought Gerard, Sr. to justice," said Jamie Holt, HSI St. Paul Special Agent in Charge.
"This is truly a case that required a sentence sufficient enough to ensure the defendant never harms another child again," said Assistant United States Attorney Gary Delorme.
The case was prosecuted by Assistant United States Attorney Gary Delorme and investigated by the Department of Homeland Security Investigations, the North Dakota Bureau of Criminal Investigations, the Minot Police Department, and McHenry County Sheriff’s Office.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by U.S. Attorneys’ Offices throughout the nation, Project Safe Childhood, in conjunction with Internet Crimes Against Children Task Force (ICAC), help federal, state, and local law enforcement agencies enhance their investigative responses to offenders who use the Internet, online communications systems, or computer technology to sexually exploit children. The ICAC Program is a national network of 61 coordinated task forces engaging in proactive investigations, forensic investigations, and criminal prosecutions. Project Safe Childhood also helps to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Johnstown Man Pleads Guilty to Possessing and Distributing NarcoticsRead the Press Release
JOHNSTOWN, Pa. – A resident of Johnstown, PA pleaded guilty in federal court to charges of violating federal narcotics laws, United States Attorney Cindy K. Chung announced today.
Andrew Colvin, age 30, of 839 Vickroy Avenue, Johnstown, PA, pleaded guilty to Counts One and Two of the Indictment before United States District Judge Stephanie L. Haines.
In connection with the guilty plea, on or about October 7, 2019, Colvin possessed with the intent to distribute a quantity of marijuana. Further, on or about October 9, 2019, Colvin possessed with the intent to distribute one gram or more of lysergic acid diethylamide (LSD), and quantities of marijuana, cocaine, methylenedioxymethamphetamine (MDMA), ketamine, and tetrahydrocannabinol (THC).
Judge Haines scheduled sentencing for April 12, 2023. The law provides for a maximum sentence of five years in prison, a fine of $250,000, or both, for Count One, and a minimum sentence of 5 years in prison and a maximum sentence of 40 years in prison, a fine of $5,000,000, or both, for Count Two. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Maureen Sheehan-Balchon is prosecuting this case on behalf of the government.
The Department of Homeland Security, Homeland Security Investigations, Cambria County Drug Task Force, Federal Bureau of Investigation, and the Safe Streets Task Force conducted the investigation that led to the successful prosecution of Colvin.
Indictment Unsealed Charging Two Individuals in Alleged Financial Fraud SchemeRead the Press Release
COLUMBUS, Ga. – A federal indictment was unsealed today charging two individuals in a pre-IPO investment scheme.
On Nov. 9, a federal grand jury returned an indictment charging George Iakovou, 29, of New York, New York, with one count of conspiracy to commit wire fraud, 17 counts of wire fraud and two counts of engaging in monetary transactions involving criminally derived property. If convicted, Iakovou faces a maximum sentence of 20 years in prison and a $250,000 fine for the wire fraud charges and a maximum sentence of 10 years in prison and a $250,000 fine for the monetary transactions involving criminally derived property charges.
Co-defendant, Penelope Zbravos, 27, of Queens, New York, is charged with one count of misprision of a felony. If convicted, Zbravos faces a maximum sentence of four years in prison and a $250,000 fine.
Iakovou was previously charged by criminal complaint out of the Middle District of Georgia and taken into custody at JFK International Airport on Oct. 25; he had his initial appearance in the Eastern District of New York and was granted a $1.5 million secured bond at that time. Iakovou and Zbravos have initial appearances and arraignments in the Middle District of Georgia scheduled for Dec. 14.
The indictment alleges that Iakovou defrauded investors under his company, Vika Ventures LLC, in a scheme involving pre-IPO investments. Vika is a boutique investment firm located in New York, New York; Iakovou is CEO and Zbravos was the financial manager of the firm. Pre-IPO investments are investments in shares of private companies before those companies become listed on a public stock market exchange.
From Dec. 2019 to Dec. 30, 2021, Iakovou would communicate via phone or email to victim-investors that he had access to shares in specific private companies at a particular price per share when he did not actually have access or the ability to obtain the pre-IPO shares he advertised to his victim-investors. Iakovou is alleged to have used many different types of artifice to deceive people, including sending victim-investors fraudulent documentation pertaining to the price of shares and company profiles; he would also send Vika subscription agreements for victim-investors to review, sign and return. Vika advertised the ability to sell pre-IPOs for high-profile companies including Airbnb, Palantir, Coupang, Stripe and SpaceX. Two victim-investors reside in Columbus, Georgia, which is located in the Middle District of Georgia.
Iakovou sent emailed instructions for victim-investors to send money to a Vika bank account but he is alleged to have not purchased or delivered the shares of the specific companies to the victim-investors. Co-defendant Zbravos is alleged to have gained knowledge of the fraud through transferring money from Vika accounts to various accounts controlled by her and Iakovou. The amount of the fraud impacting victim-investors in the Middle District of Georgia is currently believed to be more than $369,000.
Individuals who believe they may be a victim of this investment fraud can contact the U.S. Secret Service, Albany, Georgia, Resident Agency at 229-430-8442.
This case is being investigated by the U.S. Secret Service and the Securities and Exchange Commission (SEC).
Assistant U.S. Attorney Christopher Williams is prosecuting the case.
An indictment is only an allegation of criminal conduct, and all defendants are presumed innocent until and unless proven guilty in a court of law beyond a reasonable doubt.
Indian National Pleads Guilty to Unlawfully Re-Entering the United States After RemovalRead the Press Release
St. Croix, VI – United States Attorney Delia L. Smith announced today that Ashokkumar Prahladbhai Patel, 40, pleaded guilty before Magistrate Judge Emile A. Henderson, III, to Re-Entry of Removed Alien.
According to court documents, on November 24, 2021, Patel, an illegal alien and Indian national, appeared before U.S. Customs and Border Protection officers at the Henry E. Rohlsen Airport in St. Croix for pre-boarding inspection for his flight on Spirit Airlines to Fort Lauderdale, FL. During his inspection, Patel presented a fraudulent Florida driver’s license. CBP officers then conducted a database inquiry which revealed that on August 17, 2019, Patel was apprehended and detained by CBP in Tecate, CA, and was processed for expedited removal. Patel was subsequently removed from the United States to India on November 21, 2019. After his removal, Patel did not obtain express consent of the Attorney General or the Secretary of Homeland Security to re-enter the United States. Patel’s sentencing in this matter is scheduled for April 5, 2023, where he faces a term of imprisonment of up to two years. A federal district court judge will determine his sentence after considering the U.S. Sentencing Guidelines and other factors.
The case was investigated by U.S. Customs and Border Protection and Homeland Security Investigations and prosecuted by Assistant United States Attorney Daniel H. Huston.
Gulfport Man Pleads Guilty to Escape from Federal CustodyRead the Press Release
Hattiesburg, Miss. -- A former Gulfport resident pled guilty to escape from federal custody, announced U.S. Attorney Darren J. LaMarca and U.S. Marshal Mark Shepard.
According to court documents, on July 15, 2022, Anthony Necaise, 43, was housed at Dismas Charities Residential Reentry Center (RRC), in Hattiesburg, where he would have completed the final six months of his incarceration. On that date, Necaise fled the RRC and cut off his GPS ankle monitor. He was subsequently apprehended.
Necaise is scheduled to be sentenced on March 22, 2023, at 9:30 a.m. in Hattiesburg, and faces a maximum penalty of 5 years in prison and a $250,000 fine. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case was investigated by the U. S. Marshals Service.
The case was prosecuted by Assistant U.S. Attorneys Andrea Jones and Shundral Cole.
Garner Resident Faces up to Five Years in Prison for Failing to Pay over Employment TaxesRead the Press Release
WILMINGTON, N.C. – A Sharon Coker Burke, of Garner, N.C., pleaded guilty today for willfully failing to pay over employment taxes withheld from employee paychecks to the federal government. At sentencing set for the March 7, 2023 term, Burke faces a statutory maximum of 60 months in prison, a $250,000 fine, and three years of supervised release.
According to court documents and other information presented in court, Burke co-owned and managed the tax and financial affairs Bear Creek Landscape Associates, a commercial landscaping business headquartered in Garner. In her position, Burke was responsible for ensuring the timely filing of federal employment tax returns (Forms 941) for the business and the payment of all associated taxes—namely, amounts withheld from the paychecks of Bear Creek employees, including federal income taxes and Federal Insurance Contributions Act (FICA) taxes allocated for Social Security and Medicare programs. However, between 2003 and 2021, Burke routinely failed to pay over the withheld taxes to the Internal Revenue Service (IRS) as required, resulting in a tax underpayment of more than $800,000. During this same period, in response to IRS collection activity, Bear Creek rebranded itself as “KBE Landscaping” initially and, later, as “KB Landscaping.” But under Burke’s stewardship as the responsible officer, the successor companies continued to accrue significant employment tax liabilities due to non-payment.
Michael Easley, United States Attorney for the Eastern District of North Carolina, made the announcement after arraignment by Chief U.S. District Judge Richard E. Myers II. IRS Criminal Investigation investigated the case. Assistant United States Attorney Adam F. Hulbig prosecuted the case for the government.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:22-CR-289-M.
Fraudster Sentenced to 82 Months in Federal Prison for Identity and Bank Fraud SchemeRead the Press Release
Hagatña, Guam – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant Evan Daniel Montvel-Cohen, age 55 from Tamuning, Guam, was sentenced to 82 months imprisonment by the District Court of Guam. Montvel-Cohen was charged with Use of a Means of Identification in Furtherance of Fraud, in violation of 18 U.S.C. § 1028(a)(7), and Bank Fraud, in violation of 18 U.S.C. § 1344. The Court also ordered 5 years of supervised release, a mandatory $200 special assessment fee and restitution in the amount of $74,826.67.
From November 2019 until January 2020, Montvel-Cohen engaged in a scheme to defraud a property management company in Guam by using the name and personal identification of another person in order to enter into a residential lease agreement. Montvel-Cohen used an altered image of his Guam driver’s license, with another person’s name and date of birth, and digitally signed a lease agreement using an e-mail address created in the victim’s name. He then possessed and occupied a residential unit belonging to the property management company, bounced rent and deposit checks, and never paid any of the rental or deposit fees owed. This resulted in a loss of nearly $20,000.00.
From about July 31, 2018, until about August 18, 2018, Montvel-Cohen also engaged in a scheme to defraud the Bank of Guam, a federally insured financial institution. Montvel-Cohen deposited a $45,010.00 check from a jointly owned Bank of Hawaii account into a jointly owned Bank of Guam account. On August 1, 2018, he caused a stop payment order to be placed on the Bank of Hawaii check. On August 3, 2018, Montvel-Cohen and others caused funds to be transferred from the Bank of Guam account in the amount of $39,356.05. Because of the stop payment order, the Bank of Hawaii check was returned, resulting in a loss to Bank of Guam in the amount of $39,356.05.
At sentencing, the Court found by clear and convincing evidence that the Defendant engaged in long series of similar frauds and schemes over a multi-year period resulting in actual and intended losses of over $1.5 million dollars.
“Montvel-Cohen has a lengthy history of fraud, which has left a trail of victims throughout the United States,” stated U.S. Attorney Anderson. “Hopefully the sentence imposed by the Court will deter him from reoffending. I applaud the diligent efforts of the FBI in bringing this defendant to justice.”
"Fraud and identity theft are devastating to those who fall victim to these crimes," said FBI Special Agent in Charge Steven Merrill. "Many don't even know they are affected until it is too late. The FBI will spare no effort or resource when investigating those responsible."
The case was investigated by the Federal Bureau of Investigation and prosecuted by Benjamin K. Petersburg, Assistant U.S. Attorney in the District of Guam.
Four People Indicted in $3.5 Million COVID-19 Testing Kickback ConspiracyRead the Press Release
NEWARK, N.J. – Four people have been charged for their roles in a kickback conspiracy involving COVID-19 testing that defrauded federal health insurance programs, U.S. Attorney Philip R. Sellinger announced today.
Abid Syed, 45, of East Hanover, New Jersey; Tariq Din, 55, of Saddle River, New Jersey; David Weathers, 59, of the Bronx, New York; and Muhammed Aurangzeb, 45, of Robbinsville, New Jersey, are each charged by indictment with one count of conspiracy to violate the federal Anti-Kickback Statute for their roles in a scheme to defraud Medicare and the Health Resources and Services Administration COVID-19 Uninsured Program. Weathers and Aurangzeb had their initial appearances via videoconference today before U.S. Magistrate Judge José R. Almonte. Aurangzeb was released on $100,000 unsecured bond and Weathers consented to detention. Syed and Din were charged by criminal complaint on April 11, 2022.
According to documents filed in this case and statements made in court:
From April 2021 to April 2022, Syed and Din operated and controlled Metpath Laboratories, a clinical laboratory located in Parsippany, New Jersey, that conducted testing to detect the presence of COVID-19 in samples obtained from patients. Through Metpath, Syed and Din paid kickbacks to “marketers” – including Weathers and Aurangzeb – for referrals of COVID-19 test samples to Metpath. Weathers and Aurangzeb were each paid $5 to $30 per referral.
The conspirators tried to make the payments appear to be for legitimate business expenses. For example, Syed altered the amount of the kickback payment to make it appear as if the marketer was a “consultant” for Metpath with legitimate business expenses. In another instance, Weathers’ company – MedtechCares Inc. – issued invoices to Metpath to make it appear as though the kickback payments from Metpath were legitimate business expenses, when in fact the payments were entirely for the referrals.
Metpath received more than $3.5 million in insurance reimbursements from federal health insurance programs for COVID-19 test samples referred by Weathers and Aurangzeb.
The charge of conspiracy to violate the federal Anti-Kickback Statute is punishable by a maximum potential penalty of five years in prison. The maximum fine for each count is $250,000, or twice the gross profit or loss caused by the offense, whichever is greatest.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney DeNae M. Thomas of the Health Care Fraud Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Former Sarasota Pain Doctor Sentenced in Health Care Fraud Kickback ConspiracyRead the Press Release
Tampa, Florida – U.S. District Judge William H. Jung has sentenced Dr. Steven Chun (59, Sarasota) for conspiring to pay and receive kickbacks and bribes. Chun was sentenced to three years and six months in federal prison and ordered to forfeit $278,900, the proceeds of his offenses. On May 24, 2022, a federal jury found Chun and Daniel Tondre (52, Tampa) guilty of conspiring to pay and receive kickbacks and bribes, in the form of speaker fees, in return for prescribing the fentanyl spray, Subsys. Both were also convicted of five separate substantive counts of paying and receiving kickbacks. Tondre is scheduled for sentencing on December 15, 2022.
According to evidence presented during the 10-day trial, Chun was a doctor who owned and operated a pain management medical practice in Sarasota where he prescribed a large volume of Subsys, an expensive form of liquid fentanyl designed to be applied under the tongue (sublingual spray), allowing it to rapidly enter the bloodstream to help relieve break-through pain in certain cancer patients. Tondre was employed as a sales representative by Insys Therapeutics, Inc., the company that manufactured and sold Subsys. Insys, through its sales representative, Tondre, actively marketed Subsys to Chun by holding bogus and sham speaker events, and paid Chun $2,400 to $3,000 per speaker event in return for Chun writing more and higher dosages of Subsys prescriptions. The sham speaker programs were often only attended by Chun’s family and friends, or repeat attendees, and included many falsified or forged signatures of attendees. The sham speaker programs were designed to conceal and disguise kickbacks and bribes paid to Chun to induce him to prescribe Subsys.
According to the evidence, Insys paid Chun more than $278,900 in illegal kickbacks and bribes via the sham speaker programs over a period of less than three years. Tondre earned more than $737,000 in salary and sales commissions over a period of two and half years. Medicare Part D paid more than $4.5 million for Subsys prescriptions written by Chun.
During the sentencing hearing, two former patients of Chun testified regarding the devastating impact that Subsys had on their lives.
“This corrupt medical professional ignored patient care and instead inflicted financial pain,” said FBI Tampa Division Special Agent in Charge David Walker. “The FBI and its law enforcement partners work hard to ensure our nation’s federally funded healthcare system is protected from deception and greed.
“Contrary to proper patient care, the defendants repeatedly disregarded opportunities to promote legitimate, suitable pain management for beneficiaries to instead pursue personal gain,” said Special Agent in Charge Omar Pérez Aybar with the U.S. Department of Health and Human Services Office of Inspector General. “It is a top priority of our agency and law enforcement partners to bring to justice individuals who exploit their proximity to patients to defraud federal health care programs.”
“This sentence demonstrates the effectiveness of the Defense Criminal Investigative Service, our law enforcement partners, and the U.S. Attorney’s Office, in holding corrupt medical providers accountable when they fraudulently divert Defense Health Agency funds, putting their own greed before patient welfare,” said Special Agent in Charge Darrin Jones of the Defense Department's Inspector General, Defense Criminal Investigative Service, Southeast Field Office. “DCIS and our partners are committed to rooting out fraud and corruption and safeguarding the precious Taxpayer funding intended for the healthcare of our military members and their families.”
This case was investigated by the Federal Bureau of Investigation, the Department of Health and Human Services—Office of Inspector General, the Defense Criminal Investigative Service, and by the Opioid Fraud Abuse and Detection Unit at the United States Attorney’s Office, which focuses on opioid-related fraud and abuse by medical and health care professionals who have contributed to the prescription opioid epidemic. It is being prosecuted by Assistant United States Attorneys Kelley C. Howard-Allen and Jennifer L. Peresie.
Former Prisoner Transport Officer Pleads Guilty to Sexually Assaulting and Kidnapping Male DetaineeRead the Press Release
Former prisoner transport officer, Dewayne Dudley, 56, pleaded guilty in federal court in the Northern District of Oklahoma to violating a male detainee’s civil rights by sexually assaulting and kidnapping him.
“Sexual assaults carried out by law enforcement officials at any stage of the criminal justice process, including in the transport of detainees held in custody, have no place in our society,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will continue to investigate and prosecute law enforcement officials who abuse their power and authority.”
“Dewayne Dudley is a predator who used his authority and position to control and violate the victim. He abandoned his ethical responsibilities and has been held accountable,” said U.S. Attorney Clinton J. Johnson for the Northern District of Oklahoma. “The Justice Department and U.S. Attorney’s Offices across the nation are committed to upholding the Constitutional rights of all citizens. Civil rights abuses will be fully investigated and perpetrators will be brought to justice.”
“Dewayne Dudley exploited his position of authority when he cruelly assaulted a detainee he was charged to protect,” said Special Agent in Charge Edward J. Gray of the FBI Oklahoma City Field Office. “Today’s guilty plea demonstrates the FBI’s commitment to preserving trust in law enforcement. We will not tolerate public officials who violate the constitutional rights of our citizens.”
According to the plea agreement, at the time of the offense, Dudley worked as a prisoner transport officer for Blue Raven Services. As a private prisoner transport officer, Dudley performed the government function of picking up individuals who were arrested on out-of-state warrants and transporting those individuals back to the jurisdictions that issued the warrants. On Aug. 26, 2021, Dudley picked up the victim, a male detainee, from a jail in Boonville, Indiana, to transport him to Valencia, New Mexico.
On Aug. 27, 2021, before arriving in New Mexico, Dudley stopped the transport van at a Holiday Inn Express, located in Marshfield, Missouri, where he rented a room. Dudley brought the handcuffed victim into the hotel room and told him to shower. After the victim showered, Dudley pointed a gun at the victim and told him to undress. Dudley then proceeded to grope the victim’s genitals. When the victim’s penis did not erect, Dudley handcuffed himself to the victim, before going to sleep. Several hours later, Dudley resumed transporting the victim, before stopping the transport van at his (Dudley’s) apartment, located in Claremore, Oklahoma. Against the victim’s protests, Dudley brought the handcuffed victim inside his apartment. While inside his apartment, Dudley again groped the victim’s genitals, causing the victim bodily injury. The victim said, “No!,” and was able to break free and run outside of Dudley’s apartment.
A sentencing hearing has not yet been set. Pursuant to the plea agreement, Dudley faces 12 to 15 years in federal prison, to be followed by up to five years of supervised release. In addition, Dudley must pay restitution to the victim.
The FBI Oklahoma City Field Office investigated the case.
Assistant U.S. Attorney Clay Compton for the Northern District of Oklahoma and Trial Attorney Laura Gilson of the Civil Rights Division’s Criminal Section prosecuted the case.
Former Prisoner Transport Officer Pleads Guilty to Sexually Assaulting and Kidnapping Male DetaineeRead the Press Release
Former prisoner transport officer, Dewayne Dudley, 56, pleaded guilty in federal court in the Northern District of Oklahoma to violating a male detainee’s civil rights by sexually assaulting and kidnapping him.
“Sexual assaults carried out by law enforcement officials at any stage of the criminal justice process, including in the transport of detainees held in custody, have no place in our society,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will continue to investigate and prosecute law enforcement officials who abuse their power and authority.”
“Dewayne Dudley is a predator who used his authority and position to control and violate the victim. He abandoned his ethical responsibilities and has been held accountable,” said U.S. Attorney Clinton J. Johnson for the Northern District of Oklahoma. “The Justice Department and U.S. Attorney’s Offices across the nation are committed to upholding the Constitutional rights of all citizens. Civil rights abuses will be fully investigated, and perpetrators will be brought to justice.”
"Dewayne Dudley exploited his position of authority when he cruelly assaulted a detainee he was charged to protect,” said Special Agent in Charge Edward J. Gray for the FBI Oklahoma City Field Office. “Today’s guilty plea demonstrates the FBI’s commitment to preserving trust in law enforcement. We will not tolerate public officials who violate the constitutional rights of our citizens."
According to the plea agreement, at the time of the offense, Dudley worked as a prisoner transport officer for Blue Raven Services. As a private prisoner transport officer, Dudley performed the government function of picking up individuals who were arrested on out-of-state warrants and transporting those individuals back to the jurisdictions that issued the warrants. On August 26, 2021, Dudley picked up the victim, a male detainee, from a jail in Boonville, Indiana, to transport him to Valencia, New Mexico.
On August 27, 2021, before arriving in New Mexico, Dudley stopped the transport van at a Holiday Inn Express, located in Marshfield, Missouri, where he rented a room. Dudley brought the handcuffed victim into the hotel room and told him to shower. After the victim showered, Dudley pointed a gun at the victim and told him to undress. Dudley then proceeded to grope the victim’s genitals. When the victim’s penis did not erect, Dudley handcuffed himself to the victim, before going to sleep. Several hours later, Dudley resumed transporting the victim, before stopping the transport van at his (Dudley’s) apartment, located in Claremore, Oklahoma. Against the victim’s protests, Dudley brought the handcuffed victim inside his apartment. While inside his apartment, Dudley again groped the victim’s genitals, causing the victim bodily injury. The victim said, “No!,” and was able to break free and run outside of Dudley’s apartment.
A sentencing hearing has not been scheduled yet. Pursuant to the plea agreement, Dudley faces 12 to 15 years in federal prison, to be followed by up to five years of supervised release. In addition, Dudley must pay restitution to the victim.
The case was investigated by the Oklahoma City FBI Field Office. Assistant U.S. Attorney Clay Compton of the Northern District of Oklahoma and Trial Attorney Laura Gilson of the Civil Rights Division’s Criminal Section prosecuted the case.
Former President of Waterbury Credit Union Admits Embezzling $250KRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that TARA KEWALIS, 50, of Beacon Falls, waived her right to be indicted and pleaded guilty today before U.S. District Judge Janet C. Hall in New Haven to embezzling from a Waterbury credit union where she was employed.
According to court documents and statements made in court, Kewalis was the President and Chief Executive Officer of Skyline Financial Federal Credit Union located in Waterbury. From approximately September 2016 until her employment was terminated in March 2021, Kewalis used her position to access the credit union’s accounting system to create fraudulent accounts and make fraudulent entries, and steal $254,532 in credit union funds.
Kewalis pleaded guilty to one count of embezzlement by a credit union officer or employee, an offense that carries a maximum term of imprisonment of 30 years. Judge Hall scheduled sentencing for March 1.
Kewalis is released on a $50,000 bond pending sentencing.
This investigation has been conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Michael S. McGarry.
Former Portsmouth Naval Shipyard Sailor Sentenced to 5+ Years for Possessing Child Sexual Abuse MaterialRead the Press Release
PORTLAND, Maine: An Illinois man formerly stationed at the Portsmouth Naval Shipyard was sentenced in U.S. District Court in Portland today for possessing child sexual abuse materials.
Chief U.S. District Judge Jon D. Levy sentenced Zakary Williams, 25, to 70 months in prison and five years of supervised release. In addition, Judge Levy ordered Williams to pay $47,000 in restitution to the victims depicted in some of the images and videos he possessed. Williams pleaded guilty on May 18, 2022.
According to court records, in May 2019, Homeland Security Investigations (HSI) received information from the Royal Canadian Mounted Police (RCMP) regarding Kik Messenger users believed to be in the U.S. who were uploading child pornography. HSI agents traced one of the uploaded images back to an IP address associated with military housing on the New London Naval Submarine Base in Groton, Connecticut. HSI determined that Williams was the source of that image. In December 2020, agents interviewed Williams at the Portsmouth Naval Shipyard in Kittery where he was then stationed. Williams admitting sharing and viewing child pornography and consented to a search of his cell phone. The investigation revealed that Williams was storing hundreds of images and videos in a cloud-based storage account that depicted the sexual abuse of children. Many of the victims depicted were under the age of 12, and some were infants or toddlers.
HSI investigated the case with the assistance of the Naval Criminal Investigative Service (NCIS).
To report an incident involving the possession, distribution, receipt or production of child pornography: "Child pornography" captures the sexual abuse and exploitation of children. These images document victims’ exploitation and abuse, and they suffer re-victimization each time the images are viewed. File a report with the National Center for Missing & Exploited Children at www.cybertipline.com or 1-800-843-5678. Your report will be forwarded to a law enforcement agency for investigation and action. If you have an emergency that requires an immediate law enforcement response, call 911 or contact your local police or sheriff’s department.
Project Safe Childhood: 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 the Department’s 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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Former Police Officer Admits to Lying to Investigators about Stealing $345 While On-DutyRead the Press Release
A former Sapulpa police officer pleaded guilty Tuesday in federal court for lying to law enforcement about a theft he committed while on-duty, announced U.S. Attorney Clint Johnson.
Dennis James Hall, 40, pleaded guilty to making false statements, which is a felony. The plea agreement calls for Hall to serve five years of probation. Further, the defendant will no longer be permitted to serve as a law enforcement officer.
On Oct. 6, 2021, while on-duty as a police officer, Hall was called to a scene where a deceased woman was found in a hotel room. During the on-scene investigation, Hall entered the woman’s hotel room on his own then stole $345 in cash. When the Sapulpa Police Department first learned that a theft may have been committed, they contacted the Oklahoma State Bureau of Investigation (OSBI) for assistance. Hall was then interviewed by law enforcement and lied about committing the theft despite being confronted with evidence in the case. In his plea agreement, Hall admitted that he lied and made false statements to investigators during the Nov. 15, 2021, interview.
The Sapulpa Police Department, FBI, and OSBI conducted the investigation. Assistant U.S. Attorney Niko A. Boulieris is prosecuting the case.
Former Monroe Police Officer Sentenced for Abusing ArresteeRead the Press Release
MONROE, La. – A former officer with the Monroe Police Department, Jared Preston Desadier, 44, was sentenced today to 78 months in prison, followed by 2 years of supervised release, for his role in the assault of an arrestee in Ouachita Parish and his efforts to cover up that abuse.
“The defendant’s decision to callously abuse an arrestee when he thought he wasn’t being watched is an affront to the principles of honesty and integrity that our society expects from law enforcement,” said Assistant Attorney General Clarke for the Justice Department’s Civil Rights Division. “This sentence makes clear that the Department of Justice will aggressively investigate and prosecute any officer who believes that the Constitution only applies when the cameras are on.”
“All Americans expect law enforcement officers to continuously abide by the law,” stated U.S. Attorney Brandon B. Brown. “The bedrock of officer and citizen engagement is for the officer to, without exception, act professionally with a goal of deescalating tense situations. Here, this defendant instead decided to criminally escalate the situation by unnecessarily battering the victim. Prosecuting offenses such as these not only benefit society, but also law enforcement because bad police officers who cast a black eye on the profession are eradicated from the law enforcement community. This office will continue to prosecute these types of crimes with a goal of increasing the public’s trust in law enforcement.”
According to the defendant’s plea agreement, on April 21, 2020, officers of the Monroe Police Department, including Desadier, conducted a field interview with the victim in this case. When the victim attempted to run away, Desadier chased after him. The victim eventually stopped running, got on his stomach, and put his hands behind his back. Desadier ran towards the victim and then asked his fellow officer whether the officer’s body-worn camera was recording, and when he was mistakenly told that the cameras were off, he continued to run towards victim and kicked him in the face.
Assistant Attorney General Clarke, U.S. Attorney Brown, and Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division made the announcement. The case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Brian C. Flanagan and Trial Attorney Thomas Johnson of the Justice Department’s Civil Rights Division.
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Former Louisiana Police Officer Sentenced for Abusing an ArresteeRead the Press Release
A former officer of the Monroe Police Department, Jared Desadier, 44, was sentenced today to 78 months in federal prison and two years of supervised release for his role in the assault of an arrestee in Ouachita Parish and his efforts to cover up that abuse.
“The defendant’s decision to callously assault an arrestee when he thought he wasn’t being watched is an affront to the principles of honesty and integrity that our society expects from law enforcement,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This sentence makes clear that the Department of Justice will aggressively investigate and prosecute any officer who believes that the Constitution only applies when the cameras are on.”
“All Americans expect law enforcement officers to continuously abide by the law,” said U.S. Attorney Brandon B. Brown for the Western District of Louisiana. “The bedrock of officer and citizen engagement is for the officer to, without exception, act professionally with a goal of deescalating tense situations. Here, this defendant instead decided to criminally escalate the situation by unnecessarily battering the victim. Prosecuting offenses such as these not only benefit society, but also law enforcement because bad police officers who cast a black eye on the profession are eradicated from the law enforcement community. This office will continue to prosecute these types of crimes with a goal of increasing the public’s trust in law enforcement.”
According to the defendant’s plea agreement, on April 21, 2020, officers of the Monroe Police Department, including the defendant, conducted a field interview with the victim in this case. When the victim attempted to run away, Desadier chased after him. The victim eventually stopped running, got on his stomach, and put his hands behind his back. Desadier ran towards the victim and then asked his fellow officer whether the officer’s body-worn camera was recording, and when he was mistakenly told that the cameras were off, he continued to run towards the victim and kicked him in the face.
Assistant Attorney General Clarke, U.S. Attorney Brown and Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division made the announcement.
The FBI investigated the case.
Assistant U.S. Attorney Brian Flanagan for the Western District of Louisiana and Trial Attorney Thomas Johnson of the Civil Rights Division’s Criminal Section prosecuted the case.
Former IT Director Charged with Fraud, Aggravated Identity TheftRead the Press Release
PROVIDENCE – The former IT Director at a Warwick supplier of precision tubing and fabricated metal components has been charged in federal court in Providence with wire fraud and aggravated identity theft for allegedly embezzling more than $1M from the company, announced United States Attorney Zachary A. Cunha.
Charging documents allege that Juan Hicks, 47, of New Bedford, MA, who was employed at the time as IT Director for the AT Wall Companies, used his access to the company’s computer network; his purchasing authority for computer hardware, software, and other equipment; his management authority over the company phone systems and internet services; and his access to company credit cards to orchestrate schemes in which he obtained goods and services for himself, family members, and friends, and paid personal expenses for Hicks and his family.
According to court documents, during a cyber-attack which took place in March 2022, AT Wall Companies hired forensic analysts to determine the source of the attack and to identify vulnerabilities. According to company officials, during that inquiry, Hicks refused to provide his computer and passwords, as per company policy. An internal investigation provided by the company to the Warwick Police Department, Homeland Security Investigations, and the United States Attorney’s Office subsequently revealed that Hicks had allegedly embezzled over one million dollars from the company since 2012.
According to information voluntarily provided by the company to law enforcement, Hicks’ alleged fraud included getting reimbursement for false expense reports and fraudulent invoices he created; enrolling family members on the company’s wireless phone service plan and issuing company phones to himself and six family members; purchasing airline and entertainment tickets for himself and family members; and using a company credit card to make purchases at retail stores and payments for auto repairs.
Hicks, arrested today, was released on unsecured bond following an initial appearance in U.S. District Court. A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant United States Attorney Lee H. Vilker.
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Former Correctional Officer Sentenced for Assaulting a Hawaii InmateRead the Press Release
A former correctional officer at the Hawaii Community Correctional Center was sentenced to 96 months in federal prison for his role in the assault of an inmate and his participation in a multi-year conspiracy to cover-up the abuse.
According to court documents and evidence introduced at trial, on June 15, 2015, Jason Tagaloa, 31, joined his two co-defendants and a third correctional officer while they transported an inmate across the facility. The inmate became frightened in the course of the transfer, and Tagaloa took the non-violent inmate to the ground, where he and his co-defendants repeatedly punched and kicked the inmate in the face, head and body. The inmate’s jaw, orbital socket and nose were broken in the course of the assault. In the months and years that followed, Tagaloa participated in a cover-up conspiracy that included writing false reports, submitting false statements to internal affairs and providing false testimony to disciplinary board members.
“The defendant abused his authority and violently assaulted and injured an inmate without justification,” said Assistant Attorney General Clarke for the Justice Department’s Civil Rights Division. “This sentence makes clear that no one is above the law, and that when corrections officials violate the civil rights of people held in our jails and prisons they will be held accountable.”
“As a correctional officer, Tagaloa accepted responsibility for ensuring the safe incarceration of inmates,” said U.S. Attorney Clare E. Connors for the District of Hawaii. “When he instead participated in the brutal assault of an inmate, he violated the inmate’s civil rights and then sought to cover it up. Our office is committed to investigating and prosecuting those who engage in such criminal conduct.”
“The law applies to everyone equally,” said Special Agent in Charge Steven Merrill of the FBI Honolulu Field Office. “This case shows those who work in positions of public trust are held to the same standard as the general public. All misconduct allegations are investigated thoroughly and fairly by the FBI.”
Assistant Attorney General Clarke, U.S. Attorney Connors, Assistant Director Luis Quesada for the FBI’s Criminal Investigative Division and Special Agent in Charge Merrill made the announcement.
The FBI investigated the case.
Assistant U.S. Attorney Craig Nolan of the District of Hawaii, Special Litigation Counsel Chris Perras, and Trial Attorney Thomas Johnson of the Civil Rights Division’s Criminal Section prosecuted the case.
Florida State Representative Indicted for Wire Fraud, Money Laundering, and Making False StatementsRead the Press Release
GAINESVILLE, FLORIDA – A federal grand jury has returned a six-count indictment against Joseph Harding, 35, of Williston, Florida. The indictment was announced by Jason R. Coody, United States Attorney for the Northern District of Florida.
The Indictment alleges that between December 1, 2020, and March 1, 2021, Harding committed two acts of wire fraud by participating in a scheme to defraud the Small Business Administration (SBA) and for obtaining coronavirus-related small business loans by means of materially false and fraudulent pretenses, representations, and promises, and for the purpose of executing such scheme, caused wire communications to be transmitted in interstate commerce. The Indictment alleges that Harding made and caused to be made false and fraudulent SBA Economic Injury Disaster Loan (EIDL) applications, and made false representations in supporting loan documentation, in the names of dormant business entities, submitted to the SBA. The Indictment further alleges that Harding obtained fraudulently created bank statements for one of the dormant business entities which were used as supporting documentation for one of his fraudulent EIDL loan applications. By this conduct, the indictment alleges that Harding fraudulently obtained and attempted to obtain more than $150,000 in funds from the SBA to which he was not entitled. Harding is also charged with two counts of engaging in monetary transactions with funds derived from unlawful activity related to his transfer of the fraudulently obtained EIDL proceeds into two bank accounts, and two counts of making false statements to the SBA.
Trial for Harding is scheduled for Wednesday, January 11, 2023, at 8:30 a.m., at the United States Courthouse in Gainesville, Florida, before the Honorable United States District Judge Allen Winsor.
The maximum terms of imprisonment for the offenses are as follows:
- 20 years: Wire Fraud
- 10 years: Money Laundering
- 5 years: Making False Statements
The investigation was jointly conducted by the Federal Bureau of Investigation, the Internal Revenue Service-Criminal Investigation, the Federal Deposit Insurance Corporation (FDIC) Office of Inspector General, and the Small Business Administration (SBA) Office of Inspector General. The case is being prosecuted by Assistant United States Attorneys Justin M. Keen and David P. Byron.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Florida Company Sentenced to $2.5 Million Fine for Unlawful Distribution of Anabolic SteroidsRead the Press Release
FRANFORT, Ky. — A Florida company, Modern Therapy, LLC, was sentenced on Friday to pay a $2.5 million fine by U.S. District Judge Gregory VanTatenhove for the unlawful distribution of anabolic steroids.
Modern Therapy operated out of Hallandale Beach, Florida. According to its plea agreement, it marketed anabolic steroids, human growth hormone, and related products to customers over the Internet. Anabolic steroids are a Schedule III controlled substance and may only be issued pursuant to a valid prescription for a legitimate medical purpose. Modern Therapy paid physicians for use of their electronic signatures, which were applied to anabolic steroid prescriptions for customers the doctors never examined. Modern Therapy sold and shipped steroids, HGH, and related products to customers across the country, including numerous Kentucky customers. According to Modern Therapy’s plea agreement, between January 1, 2014 and February 1, 2020, the company received more than $25 million in customer payments for these illegally distributed products.
Modern Therapy pleaded guilty to a conspiracy to unlawfully distribute controlled sustances in June 2022. In addition to the $2.5 million fine, the sentence includes an $11 million forfeiture money judgment. In a parallel civil forfeiture case, Modern Therapy agreed to forfeit three Florida residential properties purchased with proceeds of its crime, and $125,589 in currency seized from its bank accounts.\
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; and George Scavdis, Special Agent in Charge, Metro Washington Field Office, U.S. Food and Drug Administration - Office of Criminal Investigations (FDA-OCI), jointly announced the sentence.
This investigation was conducted by FDA-OCI, with substantial assistance from the Kentucky State Police - Drug Enforcement/Special Investigations (DESI - East); the West Virginia State Police; the Harrison County Sheriff’s Office; the Broward County (Florida) Sheriff’s Office - Money Laundering Task Force; the Kentucky Cabinet for Health & Family Services - Office of Inspector General - Drug Enforcement & Professional Practices Branch, and the Florida Department of Health - Bureau of Enforcement. The United States was represented by Assistant U.S. Attorney Paul McCaffrey.
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Five charged with COVID fraudRead the Press Release
WHEELING, WEST VIRGINIA – A federal grand jury returned indictments on Tuesday alleging fraud against five people in connection with COVID-19.
United State Attorney William Ihlenfeld announced that charges have been filed against individuals alleged to have improperly benefitted from funds appropriated by Congress in response to the COVID-19 pandemic, as follows:
- Dalton Haas, age 27, Wheeling, WV, Wire Fraud and False Statements to SBA
- James A. Nolte, age 51, Bridgeport, WV, Wire Fraud and Money Laundering
- Shawn M. Murphy, age 47, Moundsville, WV, Wire Fraud
- David Boyd, age 27, Chester, WV, Wire Fraud and False Statement to Federal Agent
- Jodi Headley, age 49, Chester, WV, Mail Fraud
“The U.S. Attorney’s Office is committed to combatting pandemic fraud and these charges are just the first of many that we will bring,” said United States Attorney Ihlenfeld. “We have a team of highly skilled prosecutors, investigators, and accountants who work on COVID-related cases every day to identify all those who used deception to steal public funds.”
“Those charged today acted out of pure greed,” said FBI Pittsburgh Special Agent in Charge Mike Nordwall. “These loans were intended to help business owners struggling from the impact of the pandemic. Instead, the indictments allege these actors saw it as an opportunity to rip off the program. Everyone should know the FBI and our partners will pursue those who defraud programs like PPP and hold them accountable for their crimes.”
Dalton Haas is alleged to have made false representations regarding organizations with which he was affiliated in order to obtain CARES Act funding. Specifically, Haas is charged with making false statements about the gross revenues, the cost of goods sold, and the number of employees for the Lebanese Restaurant & Bakery, the Wheeling Wine Festival, the West Virginia Hockey League, and the Wheeling Hockey Association.
James Nolte is charged with submitting false tax documents, payroll reports, and business records in order to obtain Paycheck Protection Program (PPP) loans. The indictment alleges that Nolte improperly secure loans for PGO Veteran Services, PG Health, RJS Catering, and Dental Care Plus, for total fraud in the amount of $645,717.
Shawn Murphy is alleged to have applied for and received unemployment compensation through the CARES Act even though he was still gainfully employed as a machine operator at businesses in Marshall County.
David Boyd is charged with submitting false information in support of his application for PPP funding, including misrepresenting the gross income of a business known as the Seafood Hut. Boyd is also charged with lying to an FBI agent about his loans.
Jodi Headley is alleged to have applied for and receiving unemployment benefits despite being employed by Hancock County schools.
Assistant U.S. Attorney Jennifer Conklin is prosecuting the cases. The matters were investigated by the FBI and WorkForce West Virginia.
Ihlenfeld encouraged anyone aware of COVID fraud to report it via email to [email protected], by telephone to 304-234-0100, or via regular mail to the U.S. Attorney, P.O. Box 591, Wheeling, WV 26003, Attn: COVID Fraud Unit.
All those charged are presumed innocent unless proven guilty.
Federal Inmate Receives Seven More Years in Prison for Assaulting Correctional OfficersRead the Press Release
HONOLULU – U.S. District Court Judge Leslie E. Kobayashi sentenced David Akui-Cabanilla, III, 37, yesterday to 84 months of imprisonment for assaulting two federal officers at the Federal Detention Center in Honolulu on March 23, 2020, while Akui-Cabanilla was detained prior to trial on a separate federal charge for possessing a firearm as a convicted felon. Judge Kobayashi ordered the 84-month sentence be served consecutive to a 34-month sentence she imposed on March 8, 2022, for Akui-Cabanilla’s firearm conviction.
Court documents detailed the nature of the assaults as the correctional officers were engaged in their official duties. In preparation for his attacks, the defendant fashioned two makeshift weapons. The first weapon was a long tube sock tied to the loop of a locked metal padlock. The second weapon was a shiv formed from a razor blade with a piece of bedsheet tied around one end, simulating a handle. Akui-Cabanilla beat Correctional Officer D.M. unconscious with the locked metal padlock. He took the officer’s Bureau of Prisons-issued keys and his pepper spray in an apparent escape attempt. When other correctional officers, including Officer D.C., confronted Akui-Cabanilla, he sprayed Officer D.C. and other officers in the face with pepper spray. He then punched Officer D.C. in the head knocking him down to the ground.
Multiple officers suffered injuries requiring medical attention and ongoing physical therapy treatment. As part of this sentence, Judge Kobayashi ordered Akui-Cabanilla to pay $24,508.92 in restitution for medical bills paid by the U.S. Department of Labor’s Office of Workers’ Compensation Programs.
“While we have recently prosecuted a few correctional officers for violating the civil rights of an inmate, other correctional officers are lawfully protecting our community from incarcerated inmates,” said U.S. Attorney Clare E. Connors. “This was nothing short of a vicious, premeditated attack on several of those correctional officers, and such conduct warrants the additional imprisonment imposed.”
"Violence against law enforcement officers is absolutely unacceptable," said FBI Special Agent in Charge Steven Merrill. "The FBI takes this brutality very seriously and is committed to aggressively investigating such heinous crime."
This conviction is the result of an FBI investigation. Assistant U.S. Attorney Mohammad Khatib is prosecuting the case.
Father and Son Sentenced for $1.7 Million COVID-19 Relief FraudRead the Press Release
Two men were sentenced yesterday for their roles in the submission of fraudulent loan applications seeking more than $1.7 million in forgivable Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Izzat Freitekh, 57, of Waxhaw, North Carolina, was sentenced to four years in prison and his son Tarik Freitekh, aka Tareq Freitekh, 35, whose last known residence was in Glendale, California, was sentenced to 87 months in prison. The government previously seized and secured the forfeiture of approximately $1.3 million in PPP funds illegally obtained by the Freitekhs, which has been returned to a victim lender.
According to court documents and evidence presented at trial, Izzat and Tarik Freitekh obtained approximately $1.7 million by submitting multiple fraudulent PPP loan applications for companies owned by Izzat Freitekh: La Shish Kabob, La Shish Kabob Catering, Green Apple Catering, and Aroma Packaging. The loan applications misrepresented the number of employees and payroll expenses. After obtaining the fraudulent loan proceeds, the Freitekhs engaged in unlawful monetary transactions with the proceeds of the scheme, including making $30,000 in payments to family members. In March 2022, a federal jury in the Western District of North Carolina convicted the Freitekhs of money laundering and other offenses.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Dena J. King for the Western District of North Carolina; Inspector in Charge Tommy Coke of the U.S. Postal Inspection Service (USPIS) Atlanta Division; Special Agent in Charge Donald E. Eakins of the IRS Criminal Investigation (IRS-CI) Charlotte Field Office; and Special Agent in Charge Mark Morini of the U.S. Treasury Inspector General for Tax Administration (TIGTA) Southeast Field Division made the announcement.
The USPIS, IRS-CI, and TIGTA investigated the case.
Trial Attorneys Joshua DeBold and Matt Kahn of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Mark Odulio for the Western District of North Carolina prosecuted the case.
The Fraud Section leads the Criminal Division’s prosecution of fraud schemes that exploit the PPP. Since the inception of the CARES Act, the Fraud Section has prosecuted over 192 defendants in more than 121 criminal cases and has seized over $78 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at https://www.justice.gov/criminal-fraud/ppp-fraud.
In May 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 at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Father and Son Sentenced for $1.7 Million COVID-19 Relief FraudRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Dena J. King announced that two men were sentenced yesterday for their roles in the submission of fraudulent loan applications seeking more than $1.7 million in forgivable Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; Inspector in Charge Tommy Coke of the U.S. Postal Inspection Service (USPIS), Atlanta Division; Special Agent in Charge Donald E. Eakins of the IRS Criminal Investigation (IRS-CI), Charlotte Field Office; and Special Agent in Charge Mark Morini of the U.S. Treasury Inspector General for Tax Administration (TIGTA), Southeast Field Division, join U.S. Attorney King in making the announcement.
Izzat Freitekh, 57, of Waxhaw, North Carolina, was sentenced to 48 months in prison and his son Tarik Freitekh, aka Tareq Freitekh, 35, whose last known residence was in Glendale, California, was sentenced to 87 months in prison. The court also ordered each defendant to serve three years under court supervision upon completion of their prison terms The government previously seized and secured the forfeiture of approximately $1.3 million in PPP funds illegally obtained by the Freitekhs, which has been returned to a victim lender.
According to court documents and evidence presented at trial, Izzat and Tarik Freitekh obtained approximately $1.7 million by submitting multiple fraudulent PPP loan applications for companies owned by Izzat Freitekh: La Shish Kabob, La Shish Kabob Catering, Green Apple Catering, and Aroma Packaging. The loan applications misrepresented the number of employees and payroll expenses. After obtaining the fraudulent loan proceeds, the Freitekhs engaged in unlawful monetary transactions with the proceeds of the scheme, including making $30,000 in payments to family members. In March 2022, a federal jury in the Western District of North Carolina convicted the Freitekhs of money laundering and other offenses.
The USPIS, IRS-CI, and TIGTA investigated the case.
Assistant U.S. Attorney Mark T. Odulio with the Western District of North Carolina and Trial Attorneys Joshua DeBold and Matt Kahn of the Criminal Division’s Fraud Section prosecuted the case.
In May 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 at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Farmington man indicted for sexual abuse and child pornographyRead 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 FBI Albuquerque Field Office, announced that Willard Haven Dedios was arraigned on Dec. 2 on a two-count indictment charging him with production of child pornography and sexual abuse of an incapacitated person. Dedios, 59, of Farmington, New Mexico, and an enrolled member of the Jicarilla Apache Tribe, will remain in custody pending trial, which is scheduled for Feb. 6, 2023.
A federal grand jury indicted Dedios on Nov. 9. According to the indictment, on May 26, Dedios allegedly engaged in and attempted to engage in sexual acts with a minor, identified as Jane Doe, while the victim was incapacitated. Dedios also allegedly photographed the victim during the sexual abuse.
An indictment is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Dedios faces 15 to 30 years in prison for production of child pornography and up to life in prison for sexual abuse of an incapacitated person.
The FBI and the Jicarilla Apache Police Department investigated this case. Assistant United States Attorney Alexander F. Flores is prosecuting the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s 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 http://www.justice.gov/psc/.
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Evansville Felon Sentenced to One Year in Federal Prison for Escape from a Federal Residential Reentry CenterRead the Press Release
EVANSVILLE – Brett Clark, 40, of Evansville, was sentenced to 12 months in federal prison after pleading guilty to escaping from federal custody.
According to court documents, on September 7, 2011, Clark was sentenced by the United States District Court for the Southern District of Indiana to 10 years in prison followed by 5 years of supervised release for methamphetamine trafficking.
On December 8, 2020, after his initial release from federal prison, Clark’s was ordered to serve an additional 21 months in prison for violating the terms of his supervised release. On April 14, 2022, Clark was transferred to the Volunteers of America (“VOA”) Hope Hall Residential Reentry Center in Evansville, Indiana. The Bureau of Prisons contracts with residential reentry centers, also known as halfway houses, to provide assistance to inmates who are nearing release. Inmates serving a portion of their sentence at a residential reentry center are only authorized to leave the RRC through sign-out procedures for approved activities.
Clark was to remain in and abide by the rules of the facility, until his projected release date of July 10, 2022. On May 19, 2022, Clark left the VOA with authorization to go to work, but he never showed up to work and VOA was notified of his absence. Clark only had authorization to leave the VOA to go to work and did not have authorization to leave for any other purpose or remain away from the VOA.
On July 5, 2022, law enforcement officers apprehended Clark in Evansville.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, and Dan McClain, U.S. Marshal for the Southern District of Indiana, made the announcement.
The U.S. Marshal Service investigated the case. The sentence was imposed by U.S. District Judge Richard L. Young.
U.S. Attorney Myers thanked Assistant U.S. Attorney Matthew B. Miller who prosecuted this case.
Eleventh Defendant Pleads Guilty in $15 Million Scheme to Defraud Spanish-Speaking United States ImmigrantsRead the Press Release
A California man pleaded guilty today to conspiring with Peruvian-based call-centers that defrauded Spanish-speaking United States residents by falsely threatening them with arrest, deportation and other legal consequences.
According to court documents, Luis Rendon, 60, of Harbor City, California, operated a distribution center that helped the call center operators execute their fraud scheme from Peru. With Rendon’s guilty plea, eleven defendants have now pleaded guilty in connection with a $15 million trans-national fraud scheme aimed at defrauding Spanish-speaking residents of the United States by fraudulently threatening them with legal consequences if they did not pay for English-language learning products they never requested or pay bogus settlement fees. More than 30,000 Spanish-speaking residents of the United States were defrauded.
In total, the eleven defendants include seven Peruvian call center owner-operators and four distribution center operators who processed payments and facilitated the fraud in the United States. Many of the defendants collaborated and shared strategies on how to defraud Spanish-speaking residents of the United States.
Seven of the defendants were extradited from Peru and pleaded guilty in federal court to conspiracy to commit mail and wire fraud and received significant prison sentences. U.S. District Judge Robert N. Scola, Jr. sentenced Henrry Milla, Carlos Espinoza, Jerson Renteria, Fernan Huerta, Omar Cuzcano, Evelyng Milla and Josmell Espinoza to sentences ranging from 88 months to 110 months in prison.
“These cases demonstrate that the Department of Justice’s Consumer Protection Branch will vigorously pursue and prosecute transnational criminals who defraud vulnerable U.S. consumers,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Individuals who defraud our immigrant communities will be brought to justice and held accountable in U.S. courts.”
“Our cases with the Consumer Protection Branch demonstrate that the long arm of justice has no limits when it comes to reaching fraudsters who prey on our nation’s most vulnerable populations,” said U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida. “We will continue to bring American justice to transnational criminals who use fear tactics and intimidation to steal money from immigrants, seniors and others who live in this country.”
“For many years, the U.S. Postal Inspection Service and their law enforcement partners have investigated and prosecuted international criminal rings targeting U.S. consumers to steal their hard-earned money,” said Acting Inspector in Charge Juan A. Vargas of the U.S. Postal Inspection Service Miami Division. “The U.S. Postal Inspection Service, along with the Department of Justice’s Consumer Protection Branch and the U.S. Attorney’s Office, will continue to aggressively pursue these criminals to ensure that they are prosecuted to the fullest extent of the law.”
According to court documents, Rendon owned and operated International Latin Market (ILM), a California-based distribution center that facilitated the large-scale telemarketing fraud and extortion scheme from 2011 until late 2017. Rendon aided and abetted the scheme by providing lists of prospective victims to the call centers in Peru, processing card payments from victims, and sending low-quality computer tablets pre-loaded with English language courses to victims in the Miami area and across the United States.
Rendon, like the other defendants who pleaded guilty before him in this investigation, admitted that the call centers and their employees falsely claimed to be lawyers, court officials, federal agents, and representatives of a so-called “minor crimes court,” which does not exist. The callers falsely threatened victims with court proceedings, negative marks on their credit reports, imprisonment, and immigration consequences if they did not immediately pay for the purportedly delivered products and settlement fees.
Angel Adrianzen, another co-conspirator who operated a U.S. based distribution center that facilitated an additional group of fraudulent Peruvian call centers, pleaded guilty to similar charges in 2020. Adrianzen helped his co-conspirators set up and staff call centers that defrauded Spanish-speaking residents in the United States. Judge Scola sentenced Adrianzen to 121 months in prison.
Rendon will be sentenced on Feb. 16, 2023, before U.S. District Judge Patricia A. Seitz in Miami. He faces a maximum sentence of 20 years’ imprisonment.
The U.S. Postal Inspection Service and the Consumer Protection Branch investigated the case.
Senior Trial Attorney Phil Toomajian and Trial Attorney Max Goldman of the Consumer Protection Branch are prosecuting the cases and Assistant United States Attorney Annika Miranda is handling asset forfeiture. The Federal Trade Commission, the Justice Department’s Office of International Affairs, the U.S. Attorney’s Office for the Southern District of Florida, the State Department’s Diplomatic Security Service and the Peruvian National Police provided critical assistance.
The Department of Justice continues to investigate and bring charges in other similar matters involving threats against Spanish-speaking residents of the United States. If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311).
Additional information about the Consumer Protection Branch and its fraud enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch.
Drug Co-Conspirators Sentenced for Violations of the Federal Controlled Substances and the Federal Gun Control ActsRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced on Wednesday, December 7, 2022 that RAYDELL SCOTT, age 46, a resident of Mount Airy, Louisiana, and MORGAN BURL, III, age 43, a resident of Houma, Louisiana, were sentenced in the United States District Court in connection with their pleas of guilty. SCOTT pled guilty to a three-count superseding bill of information charging him with conspiracy to distribute and possess with the intent to distribute 500 grams or more of cocaine hydrochloride, a quantity of heroin, a quantity of fentanyl, and a quantity of methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1), (b)(1)(B), (b)(1)(C), and 846 (Count 1), obstruction of justice, in violation of Title 18, United States Code, Section 1512(c)(1) (Count 2), and felon in possession of a firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2) (Count 3). BURL pled guilty to a two-count superseding bill of information charging him with conspiracy to distribute and possess with the intent to distribute 500 grams or more of cocaine hydrochloride, 100 grams or more of heroin, 40 grams or more of fentanyl, and 5 grams or more of methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1), (b)(1)(B), and 846 (Count 1) and possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A)(i) (Count 2).
United States District Court Judge Jane Triche Milazzo sentenced SCOTT to 60 months imprisonment in the Bureau of Prisons. Following his term of imprisonment, SCOTT will be placed on supervised release for a period of 4 years. The court did not impose a fine, but imposed a mandatory special assessment fee of $300.00.
Judge Milazzo sentenced BURL to 70 months as to Count 1. For Count 2, Judge Milazzo sentenced BURL to 60 months imprisonment. The Court ordered that the sentence imposed in Court 2 run consecutively to the sentence imposed in Count 1. BURL will be placed on supervised release for a period of 5 years. While a fine was not imposed, a mandatory special assessment fee of $200.00 was imposed.
According to court documents, SCOTT and BURL, conspired with others to sell over 500 grams of cocaine, over 100 grams of heroin, over 40 grams of fentanyl, and over 5 grams of methamphetamine in the Eastern District of Louisiana. On April 12, 2019, SCOTT attempted to destroy a quantity of heroin while fleeing from officers during a traffic stop. Federal agents later executed a search warrant at SCOTT’s residence on May 30, 2019. Agents located a Ruger Model P89, nine-millimeter caliber firearm inside of the residence. SCOTT, a convicted felon, was prohibited from legally possessing a firearm at the time he possessed the firearm.
Agents also executed a search warrant at BURL’s residence where inside they found heroin, fentanyl, cocaine, and methamphetamine. Numerous firearms were also located, including: a Kel Tec semiautomatic pistol; an AR-15 .22 caliber rifle; a Taurus .45 caliber pistol; a .38 caliber Smith and Wesson firearm; a Jimenez nine-millimeter semiautomatic firearm; a Titan .25 caliber firearm; a Norinco assault rifle; a Sears & Roebuck 12-gauge shotgun; and a .410 pump shotgun.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (“OCDETF”). OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
U.S. Attorney Evans praised the work of the Drug Enforcement Administration in investigating this matter. Assistant United States Attorney Brittany L. Reed is in charge of the prosecution.
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DOJ and Tri-Med Ambulance resolve complaint regarding ADA violations for patients who are deaf or hard of hearingRead the Press Release
Seattle – The U.S. Attorney’s Office for the Western District of Washington and Tri-Med Ambulance LLC, have reached a settlement agreement aimed at improving services for patients who are deaf or hard of hearing, announced U.S. Attorney Nick Brown. The settlement resolves an Americans with Disabilities (ADA) complaint brought by the Northwest Justice Project on behalf of a South King County resident regarding emergency medical transport on September 7, 2020. The ambulance crew had no auxiliary aids to allow communication with the patient and failed to notify the hospital that the patient needed communication services.
“When emergency medical services are involved, it is critical that a patient can communicate with caregivers,” said U.S. Attorney Nick Brown. “I am pleased Tri-Med will have new procedures and resources in place to ensure patients who are deaf or hard of hearing will have effective ways to communicate.”
According to the settlement agreement, Tri-Med will ensure it has appropriate auxiliary aids and services on hand for use with patients who are deaf or hard of hearing. Each patient can be shown a pictograph which allows them to indicate the preferred method of communication: for example, sign language, lip reading or written communication. Tri-Med will obtain relevant hardware and enter into contracts for video remote interpreting for each ambulance licensed for emergency response. Tri-Med also agrees to notify the destination hospital if a patient needs communication assistive devices or services, so as not to delay important care. The additional communication services must be provided without any additional charge to the patient. Tri-Med will keep a log of the use of auxiliary services and how effective communication was ensured.
Tri-Med will provide training to it its ambulance personnel regarding the use of the communication services. The training will be reviewed and approved by the U.S. Attorney’s Office. For the next three years the U.S. Attorney’s Office will review any complaints related to use of auxiliary aids for patients who are deaf or hard of hearing. Each year Tri-Med will provide the U.S. Attorney’s Office with a written report regarding the use of auxiliary aids or services.
Tri-Med cooperated fully in the investigation. This settlement is not an admission of liability nor a concession that the complaint is not well founded.
The matter was resolved by Assistant United States Attorneys James Waldrop and Susan Kas.
For more information on the Civil Rights program in the Western District of Washington and on the Americans with Disabilities Act (ADA) please visit our website: https://www.justice.gov/usao-wdwa/civil-rights.
Cleveland man sentenced for drug traffickingRead the Press Release
WHEELING, WEST VIRGINIA – Lamark Hall, Jr., of Cleveland, Ohio, was sentenced today to 46 months of incarceration for a cocaine charge, United States Attorney William Ihlenfeld announced.
Hall, also known as “Cuz,” 40, pleaded guilty in June 2022 to one count of “Distribution of Cocaine Base.” Hall admitted to selling cocaine base in June 2019 in Ohio County.
Assistant U.S. Attorney Clayton J. Reid prosecuted the case on behalf of the government. The Ohio Valley Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge John Preston Bailey presided.
Clay County Man Pleads Guilty to Federal Gun CrimeRead the Press Release
CHARLESTON, W.Va. – Todd Jeffery Ullum, 32, of Maysel, pleaded guilty today to being a felon in possession of a firearm.
According to court documents and statements made in court, on September 15, 2021, a law enforcement officer encountered Ullum at the Clay-Maysel GoMart with a handgun in the back of his pants. When Ullum saw the officer, he attempted to flee in a vehicle. The officer ordered Ullum to stop and recovered the handgun, a loaded 9mm Short Hungarian pistol, as well as a loaded Remington 597 .22-caliber Magnum rifle from the vehicle.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Ullum was prohibited from possessing a firearm because of his felony conviction for grand larceny in Kanawha County Circuit Court on May 7, 2015.
Ullum is scheduled to be sentenced on April 11, 2023, and faces a maximum penalty of 10 years in prison, up to three years of supervised release, and a $250,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Clay County Sheriff’s Department.
Senior United States District Judge David A. Faber presided over the hearing. Assistant United States Attorney R. Gregory McVey is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-36.
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Chief Technology Officer of Blockchain Company Charged with Scheme to Defraud the Company of over $1 Million and CryptocurrencyRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York and Michael J. Driscoll, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing today of an indictment charging RIKESH THAPA with operating a scheme to defraud a start-up technology company (the “Victim Company”) of over $1 million worth of United States currency, cryptocurrency, and utility tokens. THAPA used proceeds of his crime on personal expenses, including nightclubs, travel, and clothing, and falsified records and deleted evidence to conceal his theft. RIKESH THAPA was arrested earlier today in the Southern District of California. The defendant is expected to be presented before U.S. Magistrate Judge Mitchell D. Dembin this afternoon. The case is assigned to U.S. District Judge John P. Cronan.
U.S. Attorney Damian Williams said: “Rikesh Thapa allegedly betrayed his company’s trust, as he was responsible for the safeguarding of substantial amounts of money. Thapa went to great lengths to cover up his frauds, but, thanks to the dedicated work of this Office and our law enforcement partners, he will now have to answer for his crimes.”
FBI Assistant Director in Charge Michael J. Driscoll said: “As we allege today, the defendant repeatedly stole from and defrauded the victim company - which he cofounded - in order to fund a luxurious personal lifestyle. In an attempt to hide his crimes, he also deleted and falsified records. The FBI will continue to work to ensure individuals willing to scam and steal from private businesses are held accountable in the criminal justice system."
As alleged in the Indictment unsealed today in Manhattan federal court:[1]
RIKESH THAPA co-founded and was the Chief Technology Officer (“CTO”) of the Victim Company, which during the relevant period was involved in using blockchain and other technology to provide a ticketing platform for live events. Between December 2017 and September 2019, THAPA used his position to carry out a scheme to defraud the Victim Company.
In 2018, the Victim Company sought to diversify its banking because of its understanding that certain financial institutions were reluctant to maintain relationships with companies, such as the Victim Company, involved in cryptocurrency transactions. In furtherance of that effort, THAPA agreed to receive and hold $1 million of the Victim Company’s money in his personal bank account (the “THAPA Account”) while the Victim Company explored banking options. Soon after receiving the $1 million, however, THAPA began using the funds on personal expenses. Nevertheless, THAPA repeatedly acknowledged what was supposed to be the temporary nature of his possession of the funds, representing to a colleague, in substance and in part, that the money was “a stationary 1mil in my account” that was held “for safe keeping.” THAPA then falsified records to conceal his theft, providing the Victim Company with a forged bank statement, which falsely represented that THAPA held over $21 million, approximately $1 million of which was held in a particular savings account (the “Purported Account”). In fact, THAPA did not have the Purported Account and held much less than $21 million at the relevant bank. In 2019, THAPA refused to return the $1 million, which he spent on, among other things, nightclubs, travel, and clothing.
In addition, between December 2017 and September 2019, THAPA used his control over the Victim Company’s cryptocurrency holdings to embezzle at least 10 Bitcoin from the Victim Company. For example, in August 2018, THAPA diverted at least one of the Victim Company’s Bitcoin for his own benefit, selling the Bitcoin for approximately $6,500 and depositing the proceeds into the THAPA Account (the “August 2018 Bitcoin Transaction”). To avoid detection, THAPA falsified trading records and deleted emails. In July 2019, THAPA sent the Victim Company’s CEO a fraudulent transaction report that misrepresented the August 2018 Bitcoin Transaction. After the CEO, copying THAPA, thereafter requested and received a transaction report directly from the Victim Company’s cryptocurrency brokerage, THAPA disabled the CEO’s email account at the Victim Company (the “CEO Email Account”), deleted the cryptocurrency brokerage’s email from the CEO Email Account, and then deleted the entire CEO Email Account.
In yet another facet of the scheme, THAPA stole the Victim Company’s utility tokens. Such tokens are a type of cryptocurrency that can be used to access particular services, products, or features. In July 2019, unbeknownst to the Victim Company’s CEO, THAPA set up a meeting in Italy between THAPA and individuals who claimed to be interested in purchasing the Victim Company’s utility tokens. Before the meeting, THAPA provided account information for the THAPA Account so that the purported investors could wire him funds. During the meeting, however, THAPA agreed to receive cash in exchange for utility tokens. After the meeting, THAPA transferred, without authorization, approximately 174,285 of the Victim’s utility tokens to the purported investors. THAPA later determined that the cash he had received from the purported investors was counterfeit.
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RIKESH THAPA, 28, of San Diego, California, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison.
The statutory maximum sentence is prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the FBI’s New York Field Office.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Timothy V. Capozzi is in charge of the prosecution.
The charge contained in the Indictment is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment constitutes only allegations, and every fact described herein should be treated as an allegation.
Charlotte Woman on Federal Supervised Release Is Sentenced to Prison for COVID-19 Fraud SchemeRead the Press Release
CHARLOTTE, N.C. – Nkhenge Shropshire, 49, of Charlotte, was sentenced today to 42 months in prison followed by three years of supervised release for submitting fraudulent loan applications to the U.S. Small Business Administration (SBA) to obtain COVID-19 relief loans, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney King is joined in making today’s announcement by Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service (USPIS) which oversees Charlotte.
“At a time that businesses and communities were doing their best to survive the devastating impact of COVID-19, Shropshire was busy trying to make a quick buck and take advantage of the aid administered by the government,” said U.S. Attorney King. “There’s a price to pay by those who seek to exploit federal aid programs and that’s prison time. Together with our law enforcement partners we will continue to investigate and prosecute COVID-19 fraudulent schemes and hold perpetrators of fraud accountable for their actions.”
“In the midst of a pandemic and as the economy suffered, this defendant lined her pockets by cheating the federal aid provided by the government to assist those communities who struggled during these unprecedent times,” said Inspector in Charge Coke. “Our office will relentlessly pursue fraudsters that defraud federal programs for greed and personal gain.”
According to filed court documents and court proceedings, Shropshire conspired with others to defraud the SBA by submitting fraudulent applications for Economic Disaster Relief Loans (EIDL), available under the expanded Coronavirus Aid, Relief, and Economic Security (CARES) Act, to business owners adversely impacted by the COVID-19 pandemic. To obtain a loan under the EIDL program, business owners are required to submit certain information in support of the application, including information about the business’s gross revenues in the 12 months prior to COVID-19’s impact and the number of workers employed by the company, among other things.
According to court records, between July 2, and September 2, 2020, Shropshire and her co-conspirators submitted at least 10 fraudulent EIDL applications to the SBA. The applications and supporting documents were for fictitious businesses and contained false information regarding the total number of employees employed by each business and total gross revenues. Court records show that Shropshire and her co-conspirators attempted to obtain at least $331,072 in relief funds. The SBA accepted and paid out at least $45,000 to Shropshire and her co-conspirators as a result of the scheme. Court records reflect that Shropshire spent the fraudulent proceeds on personal expenses, including hotel stays, shopping sprees, and cars.
In 2014, Shropshire was convicted of filing false tax returns and lying on a loan application and was sentenced to 33 months in prison and five years of supervised release. Shropshire was on federal supervised release when she participated in the EIDL fraud scheme.
On May 6, 2022, Shropshire pleaded guilty to wire fraud conspiracy. She is in federal custody and will be transferred to the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney King commended USPIS for their investigation of the case.
Assistant United States Attorney Matthew Warren, of the U.S. Attorney’s Office in Charlotte prosecuted the case.
In May 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 at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Career Offender Sentenced to 20 Years in Prison for Participation in Significant Warner Robins Meth Trafficking OrganizationRead the Press Release
MACON, Ga. – A career offender with a violent criminal history who participated in a Middle Georgia drug trafficking network responsible for distributing approximately 16 kilograms of methamphetamine was sentenced to serve 20 years in federal prison resulting from an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation centered in Warner Robins, Georgia.
Reginald Lowe, 41, of Warner Robins, was sentenced to serve 240 months in prison to be followed by four years of supervised release consecutive to a sentence he is currently serving in Houston County, Georgia, for an aggravated assault conviction today after he pleaded guilty to conspiracy to possess with intent to distribute methamphetamine on Aug. 30. U.S. District Judge Tilman E. “Tripp” Self, III handed down the sentence on Dec. 6. There is no parole in the federal system.
“Armed and violent repeat offenders threaten the safety of our region and must be held accountable,” said U.S. Attorney Peter D. Leary. “The Organized Crime Drug Enforcement Task Forces are at work in the Middle District of Georgia to identify and stop the most dangerous criminal organizations from operating in our communities.”
“This investigation deals a fatal blow to a once-thriving ‘meth’ ring,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “With the leader facing up to 40 years behind bars, the community of Warner Robins and elsewhere can rest assured that their communities are much safer today thanks to the outstanding case work by DEA and our local law enforcement partners.”
“ATF considers the Organized Crime Drug Enforcement Task Forces a critical partner in its long-term mission of removing armed gangs, criminals and narcotics traffickers from our communities,” said Assistant Special Agent in Charge Beau Kolodka, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Atlanta Field Division.
“The Warner Robins Police Department is honored to have worked in conjunction with our federal partners through the Organized Crime Drug Enforcement Task Forces which resulted in the outcome of this case,” said Chief Wayne Fisher, Warner Robins Police Department. “It is through such local, state and federal partnerships that impacts such as these can be realized. It was with great work and effort from the men and women of this task force which resulted in these arrests that will have an immeasurable impact for the good of our shared communities.”
According to documents and other evidence admitted into court, Drug Enforcement Administration (DEA) agents and Warner Robins Police Department officers investigated co-defendant Ontarrio Veal’s aka Torrie, 32, of Warner Robins, drug trafficking organization based out of Warner Robins from Jan. to June 2020. Law enforcement obtained court orders to intercept the phone calls and text messages from Veal’s and co-defendant Tamara Hall’s cell phones. Agents learned that Veal was a multi-kilogram methamphetamine dealer and surveilled Veal and various co-defendants, including Lowe, conducting methamphetamine transactions and traveling to Atlanta to purchase large quantities of methamphetamine.
Veal was taken into custody on June 1 on a return trip from Atlanta in possession of three kilograms of methamphetamine and a Glock .40 caliber semi-automatic pistol with a 50-round drum magazine. Agents executed search warrants at various locations in Middle Georgia, seizing multiple firearms and ammunition, methamphetamine and more than $100,000 cash. The organization is responsible for distributing more than 16 kilograms of methamphetamine.
Lowe is a career offender with a lengthy criminal history to include a prior conviction for aggravated assault in Houston County, Georgia, Superior Court.
Veal pleaded guilty to conspiracy to possess with intent to distribute methamphetamine on Nov. 15 and faces a maximum term of 40 years in prison to be followed by at least four years of supervised release and a $5,000,000 fine. Sentencing is scheduled for March 7, 2023.
Seven additional co-defendants have pleaded guilty and/or been sentenced in this case:
Matthew Kay, 35, of Warner Robins, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine on Sept. 6.
Donna Ussery, 31, of Warner Robins, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine on April 19 and was sentenced to serve 100 months in prison on Oct. 4;
Marquell Gaines aka Paris, 38, of Warner Robins, pleaded guilty to use of a communication facility to conspire to possess with intent to distribute methamphetamine and was sentenced to serve 48 months in prison on Oct. 11;
Tamara Hall, 39, of Warner Robins, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine on April 19. Sentencing is scheduled for Jan. 10, 2023;
Milton Simmons aka Mann, 40, of Macon, pleaded guilty to possession with intent to distribute methamphetamine on Aug. 1. Sentencing is scheduled for Jan. 10.;
Parsa Ervin, 45, of Warner Robins, pleaded guilty to two counts of use of a communication facility to conspire to possess with intent to distribute methamphetamine on Aug. 30. Sentencing is scheduled for Jan. 10; and
Eddie Linkhorn, 42, of Warner Robins, pleaded guilty to two counts of use of a communication facility to conspire to possess with intent to distribute methamphetamine. Sentencing is scheduled for Jan. 10.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case is being investigated by Drug Enforcement Administration (DEA), the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Warner Robins Police Department.
Assistant U.S. Attorney Will Keyes is prosecuting the case.