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6 September 2022
Huntington Woman Sentenced to Prison for Straw Firearm PurchaseRead the Press Release
HUNTINGTON, W.Va. – Whitney Kathlyn Hershey, 35, of Huntington, was sentenced today to one year and six months in prison, to be followed by three years of supervised release, for making false statements in the acquisition of firearms.
According to court documents and statements made in court, Hershey bought a Glock, Model 27, .40-caliber pistol from a Huntington pawn shop on February 14, 2020. Hershey admitted to lying on the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Federal Firearms Transaction Records Form 4473. Hershey certified that she was the purchaser of the firearm when Hershey knew she was buying it for someone else.
Hershey further admitted to stating on the forms that she was the actual purchaser when she was not while buying firearms at Huntington pawn shops on three other occasions: a Ruger AR556 .300-caliber pistol on April 13, 2020; a Century Arms 7.62x39mm pistol on April 14, 2020; and a Taurus Model PT111, G2A 9mm pistol on July 1, 2020.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Huntington Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney R. Gregory McVey prosecuted 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. 3:22-cr-23.
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Hartford Man Charged with Drug Distribution and Gun Possession OffensesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration for New England, today announced that a federal grand jury in Hartford has returned a seven-count indictment charging JAHQUAN BLACKWIN, also known as “Mula,” 25, of Hartford, with narcotics distribution and firearm possession offenses.
Blackwin appeared today before U.S. Magistrate Judge Robert A. Richardson in Hartford and pleaded not guilty to the charges. Blackwin has been detained since his arrest on August 17.
As alleged in court documents and statements made in court, in June 2022, the Drug Enforcement Administration’s Hartford Task Force began investigating Blackwin and others for distributing fentanyl and cocaine in the Hartford area. In July and August 2022, investigators made four controlled purchases of fentanyl from Blackwin.
Blackwin was arrested on a federal criminal complaint on August 17. On that date, a search of Blackwin’s Judson Street apartment revealed approximately 300 grams of fentanyl, 600 grams of heroin, 100 grams of crack, 500 grams of cocaine, as well as other drugs. Investigators also found and seized two loaded Polymer 80 handguns (“ghost gun”), one of which was fitted with a high-capacity magazine, and a loaded Glock 43X handgun.
On August 31, 2022, a grand jury in Hartford returned an indictment charging Blackwin with four counts of possession with intent to distribution, and distribution of, fentanyl, an offense that carries a maximum term of imprisonment of 20 years on each count; one count of possession with intent to distribute 40 grams or more of fentanyl, 28 grams or more of cocaine base (“crack”) and 100 grams or more of heroin, an offense that carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years; one count of possession with intent to distribute cocaine, an offense that carries a maximum term of imprisonment of 20 years; and one count of possession of a firearm in furtherance of a drug trafficking crime, and offense that carries a mandatory consecutive term of imprisonment of at least five years.
U.S. Attorney Avery stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The DEA’s Hartford Task Force includes personnel from the DEA Hartford Resident Office, the Connecticut State Police, and the Bristol, Hartford, East Hartford, Enfield, Manchester, New Britain, Rocky Hill, Wethersfield, Windsor Locks and Willimantic Police Departments. This case is being prosecuted by Assistant U.S. Attorney Brendan Keefe.
Fort Mitchell Chiropractic Clinic Agrees to Settle Allegations of Improper Billing for Electro-Acupuncture DevicesRead the Press Release
LEXINGTON, Ky. — The United States Attorney’s Office announced on Thursday that Lifestyle Resumption Integrative Health ( “Lifestyle Resumption”), a chiropractic clinic located in Fort Mitchell, Ky., and its owner, Klaude Kocan, D.C., have agreed to pay $200,000 to resolve allegations that they violated the False Claims Act, by improperly billing Medicare for services involving electro-acupuncture devices.
According to the Settlement Agreement, between July 2016 and March 2018, Lifestyle Resumption billed Medicare for the implantation of neurostimulator devices – a surgical procedure during which devices are implanted into the central nervous system or targeted peripheral nerves. The United States contends that these bills falsely represented the services provided, because Lifestyle Resumption did not actually perform surgical procedures. Instead, Lifestyle Resumption’s nurse practitioner applied electro-acupuncture devices to patients’ ears by inserting a limited number of needles and using an adhesive. Medicare does not pay for electro-acupuncture devices billed as implantable neurostimulators and did not reimburse for acupuncture at all during the relevant period.
The United States encourages anyone with information about the improper billing of electro-acupuncture devices (common brand names include P-Stim, Stivax, NeuroStim, ANSiStim, E-Pulse, and NSS-2 Bridge), or about other potential fraud, abuse, or mismanagement of Medicare or Medicaid funds, to call the U.S. Department of Health and Human Services’ hotline at 800-HHS-TIPS (800-447-8477). False Claims Act allegations can also be brought under the qui tam provision of the Act, which encourages whistleblowers to bring suit on behalf of the United States and potentially share in any financial recovery.
This matter was handled by the U.S. Attorney’s Office’s Affirmative Civil Enforcement section, including Assistant U.S. Attorneys Christine Corndorf and Meghan Stubblebine.
The settlement resolves claims alleged by the United States; there has been no determination of liability.
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Former Stockbroker Sentenced to 6½ Years in Prison for $3.2 Million Investment Fraud, Cheating on Taxes and Grandparent ScamRead the Press Release
SANTA ANA, California – A former licensed stockbroker was sentenced today to 78 months in federal prison for committing several felonies, including running a securities fraud scheme in which he targeted low-income Hispanic victims to obtain more than $3.2 million via false promises of high returns from construction loans.
Robert Louis Cirillo, 61, of Chino Hills, was sentenced by United States District Judge David O. Carter, who also ordered him to pay $3,948,835 in restitution.
Cirillo pleaded guilty on June 28 to one count of securities fraud, one count of filing a false tax return, and one count of conspiracy to commit wire fraud.
From 2014 to 2021, Cirillo deceived more than 100 victims by lying to them that he would be investing their funds in short-term construction loans that would pay large return rates that ranged from 15% to 30% for a period of up to 90 days. As part of the scheme, Cirillo showed actual and prospective victim-investors fabricated bank statements that purported to show the investments’ growth.
In fact, Cirillo never invested the victims’ money and instead used it for his own personal expenses, including credit card payments, a trip to Las Vegas, and two automobiles – a Jeep and an Alfa Romeo.
Cirillo targeted members of the Hispanic community, many of whom were of limited means, for his fraudulent scheme. One victim invested her life savings of $20,000 in Cirillo’s scheme.
Cirillo admitted in his plea agreement to threatening his victims once they began to realize that he had defrauded them. For example, in July 2019, Cirillo said that if one of the victims tried to sue him, that victim could go “for the [expletive] hole in the [expletive] desert. Tell him to test me,” according to court documents.
In a separate scheme that occurred in the spring of 2021, Cirillo participated in a “grandparent scam” in which a senior citizen was tricked into believing that his grandson had been arrested for possession of illegal narcotics, which was false. Cirillo’s co-conspirators convinced the 82-year-old victim to send $400,000 for his grandson’s “bail” to a bank account that Cirillo had opened and controlled. Cirillo used some of that victim’s money for his own personal benefit.
Cirillo also filed false income tax returns for the years 2015, 2016 and 2017 by failing to report a total of more than $3 million in income. For example, on his 2017 federal income tax return, Cirillo reported a total income of $30,985, which failed to include more than $1.9 million in income he received from his investment fraud scheme.
Cirillo’s investment fraud resulted in a total loss of $3,237,262; his conspiracy to defraud the senior citizen resulted a total loss of $400,000; and the total tax loss incurred was $675,898.
In a sentencing memorandum, prosecutors argued, “[Cirillo’s] behavior was despicable, particularly because he was engaging in an affinity crime by exploiting members of the Hispanic community, most of whom were of modest means, and some of whom lost their life savings to [him].”
The FBI and IRS Criminal Investigation investigated this matter.
Assistant United States Attorney Charles E. Pell of the Santa Ana Branch Office prosecuted this case.
Former Paramedic Pleads Guilty to Fentanyl TamperingRead the Press Release
BOSTON – A former Massachusetts emergency medical technician (EMT) paramedic has pleaded guilty to tampering with liquid fentanyl vials at the ambulance company at which she worked.
Candice Mangan, 43, of Medford, pleaded guilty on Aug. 30, 2022 in federal court in Boston to one count of tampering with a consumer product. U.S. District Court Chief Judge F. Dennis Saylor IV scheduled sentencing for Dec. 7, 2022. Mangan was charged on June 24, 2022.
From approximately March 2020 to early October 2020, Mangan – a licensed EMT paramedic in Massachusetts – worked part-time as an EMT for an ambulance service company in Massachusetts. On or about Sept. 30, 2020, while working in Needham, Mangan tampered with three fentanyl citrate vials by removing fentanyl citrate and replacing it with saline. The liquid remaining in the three vials contained only approximately 4.4%, 6.8%, and 24.2% of the declared concentration of fentanyl citrate.
“The grave consequences of the opioid crisis extend far beyond street level dealing of heroin and fentanyl, which continues at an alarming pace. Almost every one of the 15 units in the Criminal and Civil Divisions of this Office are handling matters relating to the opioid epidemic,” said United States Attorney Rachael Rollins. “Aside from the obvious opioid related matters handled by our narcotics and organized crime units, we are also prosecuting human trafficking and health care fraud as well as civil rights government fraud and public corruption cases all directly pertaining to opioids. There is no higher priority in my office than doing everything in our power, using every option available on both the civil and criminal sides of this office, to keep people and communities safe from these deadly destructive substances.”
“The FDA oversees the U.S. drug supply to ensure that it is safe and effective, and those who knowingly tamper with medicines put patients’ health at risk,” said Fernando P. McMillan, Special Agent in Charge of the U.S. Food and Drug Administration, Office of Criminal Investigations, New York Field Office. “We will continue to protect the public health and bring to justice health care professionals who take advantage of their unique position and compromise their patients’ health and comfort by tampering with needed drugs.”
The charging statute provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences in a criminal case are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
U.S. Attorney Rollins, FDA SAC McMillan and Margret R. Cooke, Commissioner of the Massachusetts Department of Public Health made the announcement today. Assistant U.S. Attorney Howard Locker of Rollins’ Health Care Fraud Unit is prosecuting the case.
Federal Jury Finds Red Lake Man Guilty of RapeRead the Press Release
DULUTH, Minn. - A Red Lake man was found guilty by a federal jury of aggravated sexual abuse and sexual abuse occurring on the Red Lake Indian Reservation, announced United States Attorney Andrew M. Luger.
Following a five-day trial before U.S. District Judge Nancy E. Brasel, Descart Austin Begay, Jr., 38, was convicted late Friday on two counts of aggravated sexual abuse and two counts of sexual abuse.
As proven at trial, on July 3, 2020, Begay knowingly raped and sexually assaulted Victim A in her home, until she was finally able to break free and escape. A sentencing hearing will be scheduled at a later time.
This case is the result of an investigation conducted by the Red Lake Tribal Police Department and the FBI Headwaters Safe Trails Task Force.
Assistant U.S. Attorney Evan B. Gilead is prosecuting the case.
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Fayetteville Man Convicted of Kidnapping, Drug and Gun Offenses – Faces at Least 20 Years in PrisonRead the Press Release
WILMINGTON, N.C. – United States Attorney Michael Easley announced that late Friday, Yomere Juan Busbee, 38, of Fayetteville, North Carolina, was convicted in federal court following a three-day trial before Chief United States District Judge Richard E. Myers II. The jury found Busbee guilty on all five counts: conspiracy to commit kidnapping, kidnapping, including of a minor, conspiracy to distribute or possess with the intent to distribute heroin and cocaine base (crack), possession of a firearm in furtherance of a drug trafficking offense, and felon in possession of a firearm. Busbee faces a sentence of no less than 20 years and up to life in prison at sentencing.
“This case is about the victims, including a toddler, who suffered at the hands of a violent pimp and drug dealer,” said U.S. Attorney Michael Easley. “My office will continue to investigate and prosecute those who are perpetrating violence in our communities.
According to evidence presented at trial, in December 2018, Busbee and two co-defendants, James Calvin McEachern, Jr. and Merianda Gray, held three adult victims, and a two-year-old child in a hotel room against their will for several hours after Busbee, a violent pimp and drug dealer, believed he was missing several hundred dollars and accused the victims of stealing it. During the incident Busbee, McEachern, a fellow drug dealer, and Gray threatened the victims and did not allow them to leave. Several of the victims were physically and sexually assaulted and tased. Eventually, one of the victims was able to get a message to a family member who called authorities. Busbee fled when he learned authorities were on the way, and three of the victims were able to escape. Officers with Fayetteville Police Department were able to retrieve the final victim from the room without incident.
Fayetteville Police Department detectives investigated the kidnapping, and eventually apprehended Busbee at a different Fayetteville hotel on January 17, 2019. A search of Busbee’s vehicle and the hotel room recovered large quantities of heroin, cocaine, and cocaine base (crack), as well as two firearms, one of which was stolen. Gray previously pled guilty to conspiracy to commit kidnapping.
Investigation of this case was conducted by the Federal Bureau of Investigation and the Fayetteville Police Department. Former Assistant United States Attorney Erin Blondel and Assistant United States Attorney Bryan Stephany handled the prosecution of this 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.5:2020cr00393.
Essex County Man Admits Using Credit Cards and Checks Stolen from U.S. Mail to Attempt to Defraud Banks of over $250,000Read the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man today admitted scheming with others to use credit cards and checks that were stolen from the mail by at least two U.S. Postal Service (USPS) employees to make hundreds of thousands of dollars of purchases, Attorney for the United States Vikas Khanna announced.
Adeeb Salih, 30, of East Orange, New Jersey, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to an information charging him with conspiracy to commit bank fraud.
According to documents filed in this and other cases and statements made in court:
Salih obtained checks, including U.S. Treasury checks, and credit cards from Yaseen Salih, 25, and Jahad Salter, 26, who had recruited USPS employees, including Khadijah Banks Oneal, 31, and Ashley Taylor, 28, to steal the credit cards and checks from the mail in exchange for compensation. Once they obtained the stolen credit cards, Adeeb Salih, Yaseen Salih, and Salter fraudulently posed as the accountholders of the stolen cards when calling the banks that issued the cards and used personal identifying information belonging to the accountholders to obtain or change information about the stolen credit cards. They then used the stolen credit cards to make purchases in New Jersey and elsewhere. Adeeb Salih also caused the stolen checks to be deposited into bank accounts that he controlled and withdrew proceeds from those checks from the accounts in the form of cash. This resulted in attempted losses of over $250,000.
Yaseen Salih, Salter, Banks-Oneal, and Taylor previously pleaded guilty for their respective roles in this scheme and are awaiting sentencing.
The charge of conspiracy to commit bank fraud carries a maximum punishment of 30 years in prison and a maximum fine of $1 million. Sentencing is scheduled for Jan. 10, 2023.
Attorney for the United States Khanna credited postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Inspector in Charge Damon Wood, Philadelphia Division; and special agents of the U.S. Postal Service, Office of Inspector General, Northeast Area Field Office, under the direction of Special Agent in Charge Matthew Modafferi, with the investigation leading to the charges. He also thanked the U.S. Marshals Service, District of New Jersey; the U.S. Secret Service, New York Field Office; the Treasury Inspector General for Tax Administration, Mid-Atlantic Field Division; the Department of Homeland Security, Homeland Security Investigations, Newark Field Office; the Livingston, New Jersey Police Department; the Newark Police Department; the Essex County Sheriff’s Office; the New Providence, New Jersey, Police Department; and the Berkeley Heights, New Jersey, Police Department, for their assistance.
The government is represented by Assistant U.S. Attorney Sara F. Merin of the Special Prosecutions Division in Newark.
Essex County Man Admits Distributing Crack and Heroin in Stephen Crane VillageRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man today admitted distributing and possessing with intent to distribute heroin and cocaine base, U.S. Attorney Philip R. Sellinger announced today.
Raquan Rawls, aka “Bandz,” 24, of Newark, pleaded guilty before U.S. District Court Judge John Michael Vazquez by videoconference to two counts in a superseding indictment charging him with distribution and possession with intent to distribute heroin and cocaine base, (Count Eight), and distribution and possession with intent to distribute heroin (Count Nine).
According to documents filed in this case and statements made in court:
Stephen Crane Village is a public housing complex in Newark, on the border with Belleville. From at least February 2019 through February 2020, law enforcement officers investigated individuals that controlled an open-air drug market that operated within Stephen Crane Village. On Nov. 21, 2019, Rawls and others sold heroin and cocaine base to an individual while under surveillance by law enforcement. On Dec. 13, 2019, Rawls sold heroin to an individual while under surveillance by law enforcement.
The drug charges to which Rawls pleaded guilty both carry a statutory maximum of 20 years in prison, and a maximum fine of $1 million. Sentencing is scheduled for Jan. 23, 2023.
U.S. Attorney Sellinger credited special agents and task force officers with the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Division, under the direction of Special Agent in Charge Jeffrey L. Matthews; the Belleville Police Department, under the direction of Chief Mark Minichini; special agents and task force officers of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson in Newark; the Newark Police Department, under the direction of Public Safety Director Fritz G. Fragé; the Essex County Prosecutor’s Office, under the direction of Prosecutor Theodore N. Stephens II; and the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura, with the investigation leading to today’s plea. He also thanked the U.S. Marshals Service, the Nutley Police Department, the Bloomfield Police Department, the West Orange Police Department, the Verona Police Department, the Orange Police Department and the Bergen County Sheriff’s Office for their assistance with this case.
This investigation was part of the Newark Violent Crime Initiative (VCI), where the U.S. Attorney’s Office has partnered with state, federal, county, and local law enforcement to investigate crime in Newark and the surrounding cities. This case 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.
The government is represented by Assistant U.S. Attorney Tracey Agnew of the U.S. Attorney’s Office in Trenton.
Eight Charged with Operating Drug Trafficking Organization that Distributed Kilograms of Cocaine Throughout Wayne, Stark and Tuscarawas CountiesRead the Press Release
CLEVELAND - First Assistant U.S. Attorney Michelle M. Baeppler announced that eight men in the Canton area were charged in a three-count indictment with operating a drug trafficking organization that distributed kilogram quantities of cocaine throughout Wayne, Stark and Tuscarawas Counties and elsewhere in the Northern District of Ohio.
Named in the indictment are Arnulfo Gomez-Araiza, 40, of Orrville, Ohio; Alejandro Jesus Quezada, 33, of Louisville, Ohio; Adrian Nava Marquez, 32, of Canton. Ohio; Luis Soto-Perez, 27, of Massillon, Ohio; Isidro Gutierrez-Meraz, 32, of Orrville, Ohio; Isidro Gutierrez-Cuevas, 56, of Orrville, Ohio; Vicente Guzman-Bernal, 37, of Dover, Ohio and Joshua Nagle, 40, of Canton, Ohio.
Each defendant is charged with conspiracy to distribute and possess with intent to distribute controlled substances. Defendant Vicente Guzman-Bernal is charged with an additional count of possession with intent to distribute cocaine and defendant Alejandro Jesus Quezada is charged with an additional count of felon in possession of a firearm.
According to court documents, it is alleged that in March 2020, federal, state and local law enforcement authorities began an investigation into a suspected drug trafficking organization led by defendant Arnuflo Gomez-Araiza based in the Wayne and Stark County area.
According to the indictment, the members of the Gomez-Araiza drug trafficking organization are alleged to have distributed, sold and transported kilogram quantities of cocaine in the Northern District of Oho and elsewhere in the state of Ohio. It is alleged that members of the drug trafficking organization received shipments of cocaine, facilitated numerous drug transactions and shipped the drug trafficking proceeds to others throughout the state of Ohio via couriers.
An indictment is only a charge and is not evidence of guilt. The defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendant’s sentence will be determined by the court after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offenses and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum; in most cases, it will be less than the maximum.
This case was investigated by the FBI Canton, Wayne County MEDWAY Drug Task Force, Canton Police Department, Jackson Township Police Department, Massillon Police Department, Stark County Sheriff’s Office, Tuscarawas County Sheriff’s Office, Dover Police Department and the FBI TOC-W Task Force. This case is being prosecuted by Assistant U.S. Attorney Toni Beth Schnellinger Feisthamel.
Dubois Man Pleads Guilty in Meth ConspiracyRead the Press Release
PITTSBURGH, PA – A former resident of Dubois, Pennsylvania, pleaded guilty in federal court to violation of federal narcotics laws related to a nine-month Title III wiretap investigation into drug trafficking in and around the counties of Jefferson, Clearfield, and Allegheny, United States Attorney Cindy Chung announced today.
Brandon Coder, age 33, pleaded guilty last Wednesday to one count of conspiracy to distribute and possesses with intent to distribute 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine before United States District Judge Christy Criswell Wiegand. Coder was one of 47 defendants charged in six related indictments as part of the Return to Sender investigation.
In connection with the guilty plea, the court was advised that Coder received parcels that were shipped from California to the Western District of California containing a total of between 1.5 kilograms and five kilograms of methamphetamine. Coder also mailed parcels containing United States currency to California at the direction of Derek Hillebrand, the leader of the drug trafficking organization.
Judge Wiegand scheduled sentencing for Coder on Jan. 18, 2023, at 1:00 p.m. The law provides for a sentence of not less than ten years to a maximum of life in prison, a fine not to exceed $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The court ordered that the defendant remain detained pending sentencing.
Assistant United States Attorneys Jonathan D. Lusty and Michael R. Ball are prosecuting this case on behalf of the government.
The Drug Enforcement Administration led the multi-agency investigation of this case, which also included the Homeland Security Investigations, United States Postal Service – Office of Inspector General, United States Postal Inspection Service, Internal Revenue Services, Pittsburgh Bureau of Police, Allegheny County Police, and Pennsylvania State Police. Also assisting were the Jefferson County District Attorney’s Office, Clearfield County District Attorney’s Office, and the Clarion Borough Police Department.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Dorchester Man Sentenced for Cocaine DistributionRead the Press Release
BOSTON – A Dorchester man was sentenced on Sept. 1, 2022 in federal court in Boston for trafficking over 13 kilograms of cocaine.
Anthony Coplin, 57, was sentenced by U.S. District Court Judge Richard G. Stearns to time served (approximately five years in prison) and four years of supervised release. On April 13, 2022, Coplin pleaded guilty to conspiracy to possess with intent to distribute 500 grams or more of cocaine.
Coplin was one of 52 defendants tied to the Columbia Point Dawgs (CPD) who were charged in five separate indictments in June 2015 for drug trafficking offenses. CPD, also known as “the Point,” was Boston’s largest and most influential citywide gang. The criminal organization started in the 1980s in the former Columbia Point Housing Development (now Harbor Point) and, over the years, gang members established drug trafficking crews throughout Boston. CPD was responsible for the distribution of multiple kilogram quantities of heroin, cocaine, crack cocaine and oxycodone throughout Boston and Maine. Coplin was involved in the distribution of over 13 kilograms of cocaine in Massachusetts. Coplin is the final defendant to be sentenced in the case.
United States Attorney Rachael S. Rollins; Suffolk County District Attorney Kevin R. Hayden; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Douglas Bartlett, Acting U.S. Marshal for the District of Massachusetts; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Suffolk County Sheriff Steven W. Tompkins; Boston Police Commissioner Michael Cox; and Commissioner Carol Mici of the Massachusetts Department of Correction, made the announcement today. Assistant U.S. Attorneys Timothy E. Moran, Michael J. Crowley and John T. Dawley of Rollins’ Organized Crime & Gang Unit prosecuted the case.
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.
Detroit Man Sentenced to Prison for Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – Devonte Jamer McItyer, 27, of Detroit, Michigan, was sentenced today to five years in prison, to be followed by four years of supervised release, for possession with intent to distribute 50 grams or more of methamphetamine.
According to court documents and statements made in court, McItyer admitted to selling approximately 1 ounce of methamphetamine to a confidential informant in Huntington on October 2, 2019. Following the transaction, a law enforcement officer pulled over a vehicle in which McItyer was a passenger. The officer found approximately 142 grams of methamphetamine under McItyer’s seat. McItyer admitted to placing the drugs there for later distribution. McItyer further admitted to possessing a loaded Smith & Wesson .40-caliber pistol also found in the vehicle.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI), the Southern West Virginia TOC-West Task Force, and the Cabell County Sheriff’s Department.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Joseph F. Adams prosecuted the case.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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. 3:21-cr-243.
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Delaware County Man Sentenced to 25 Years for Sexually Exploiting a Child, and Distributing and Possessing Child PornographyRead the Press Release
SYRACUSE, NEW YORK - Jeremie Hoyt, age 42, of Davenport, New York, was sentenced today to serve 25 years in federal prison for sexually exploiting a child and distributing and possessing child pornography, announced United States Attorney Carla B. Freedman, Matthew Scarpino, Acting Special Agent in Charge, Homeland Security Investigations (HSI) and New York State Police Superintendent Kevin P. Bruen.
As part of his previous guilty plea, Hoyt admitted that he used a child to engage in sexually explicit conduct for the purpose of producing visual depictions of that conduct, and that in August of 2019 and November of 2020 he produced a sexually explicit photograph and video of the child. Hoyt further admitted that he later distributed the sexually explicit image and video over the Internet to other users on a messaging application and that he still possessed the sexually explicit image and video on his iPad when law enforcement searched his home in April 2021.
United States District Judge Glenn T. Suddaby also imposed a 30 year term of supervised release, which will start after Hoyt is released from prison, and ordered Hoyt to pay a $500 special assessment. Hoyt will also be required to register as a sex offender.
Hoyt’s case was investigated by U.S. Homeland Security Investigations (HSI), Investigators of the New York State Police, Computer Crimes Unit (CCU), and the Delaware County District Attorney’s Office. The case was prosecuted by Assistant U.S. Attorney Geoffrey J. L. Brown as a part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney's offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal 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 https://www.justice.gov/psc.
Convicted Sex Offender Charged with Illegal Firearm PossessionRead the Press Release
BIRMINGHAM, Ala. – A federal grand jury last week charged a convicted felon with illegal firearm possession, announced U.S. Attorney Prim F. Escalona and Bureau of Alcohol, Tobacco, Firearms, and Explosives Special Agent in Charge Mickey French.
A one-count indictment filed in U.S. District Court charges Edward Olin Jones, 66, of Hanceville, with being a felon in possession of a firearm.
According to the indictment, on March 16, 2022, Jones unlawfully possessed a Smith & Wesson .38 Special revolver, a Röhm .22 caliber revolver, a Winchester 12-gauge shotgun, a Weatherby .300 Weatherby Magnum rifle, a Remington .300 Winchester Magnum rifle, and a Remington .22 caliber rifle. Jones is prohibited from possessing firearms due to prior felony convictions. In December 2017, Jones was convicted in the Circuit Court of Jefferson County for Sodomy, First Degree and Sexual Abuse, First Degree.
The maximum penalty for being a felon in possession of a firearm is 10 years in prison.
ATF investigated the case along with the Alabama Bureau of Pardons and Paroles. Assistant U.S. Attorney Daniel S. McBrayer is prosecuting the case.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Colorado Springs Company and Owner Pay $400,000 to Resolve Allegations That They Submitted False Claims for Aquatic TherapyRead the Press Release
DENVER—The United States Attorney’s Office for the District of Colorado announced today that Dynamic Physical Therapy, LLC (“Dynamic”), a physical therapy company, and its owner, Emad Yassa, have agreed to pay the United States $400,000 to resolve allegations that they violated the False Claims Act by falsely billing federal health care programs for aquatic therapy services.
Dynamic is a physical therapy company that operates two clinics in Colorado Springs, Colorado. Dynamic is owned by Mr. Yassa, who also practices as a physical therapist at the Dynamic clinics. Dynamic submitted bills for physical and aquatic therapy services to Medicare and other federal health care programs.
In 2019, a former employee of Dynamic filed a sealed civil “whistleblower” lawsuit under the False Claims Act alleging that Dynamic, at the direction of Mr. Yassa, was billing Medicare for medically unnecessary physical therapy services and for services that had not actually been provided. The lawsuit was filed in federal district court in Colorado under the “qui tam,” or whistleblower, provisions of the False Claims Act. Those provisions permit private parties to sue on behalf of the United States to bring claims based on the submission of false claims to the government and allow the whistleblower to receive a share of any funds recovered through the lawsuit. The whistleblower provisions encourage people with knowledge of fraud against the federal government to come forward when they believe fraud is being committed.
After the whistleblower complaint was filed, Mr. Yassa signed a “Stipulation and Final Board Order” with the State of Colorado’s Physical Therapy Board In the stipulation, Mr. Yassa admitted that, from mid-2014 to mid-2017, he “routinely and improperly billed insurance companies, Medicare, and Medicaid for individual aquatic therapy sessions for his patients when they had actually participated in group aquatic therapy sessions,” and also “routinely failed to document in his patients’ records that they had participated in group aquatic therapy sessions.”
In an investigation, the United States uncovered evidence indicating that Dynamic had also submitted false claims to TRICARE, a health care program for uniformed service members, retirees, and their families. The evidence indicated that Dynamic had falsely represented to TRICARE that its physical therapy services had been provided by an authorized physical therapy provider, when, in fact, they had been provided by an unauthorized physical therapy assistant.
The resolution obtained in this matter was the result of a coordinated effort between the U.S. Attorney’s Office for the District of Colorado, the Department of Health and Human Services – Office of the Inspector General, the Defense Criminal Investigative Service, and the Federal Bureau of Investigation.
“We will aggressively pursue any kind of health care provider who relies on fraud to obtain payments from our federal healthcare programs,” said U.S. Attorney Cole Finegan. “We also appreciate the efforts of whistleblowers who bring fraudulent billing practices to light.”
“Medicare monies for physical therapy are intended to support services that restore function, improve mobility, and relieve pain for beneficiaries,” stated Special Agent in Charge Curt L. Muller with the U.S. Department of Health and Human Services Office of Inspector General. “Our agency and law enforcement partners readily employ our resources to identify and investigate billing that diverts crucial funds inappropriately from federal health care programs.”
"The Department of Defense, Office of Inspector General, Defense Criminal Investigative Service (DCIS), along with our law enforcement partners, will diligently investigate individuals and companies that pilfer taxpayer resources and degrade the quality of the health care provided to America's warfighters," said Michael Mentavlos, Special Agent in Charge, of the DCIS Southwest Field Office. "Today's outcome reflects DoD's commitment to hold those who commit fraud against TRICARE and other U.S. Government healthcare programs accountable."
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
This case was handled by Assistant United States Attorney Jessica E. Matthews.
Dynamic Physical Therapy LLCCocaine Dealer Going to Prison for Drug ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Timothy Granison, 43, of Rochester, NY, who was convicted of conspiracy to distribute 500 grams or more of cocaine, was sentenced to serve 32 months in prison by U.S. District Court Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Matthew T. McGrath, who handled the case, stated that Granison was a member of a drug trafficking organization led by Jason Siplin that distributed large quantities of cocaine and crack cocaine out of a Glenwood Avenue drug house. Over the course of the conspiracy, Granison regularly obtained bulk quantities of cocaine from Jason Siplin, which he then sold to his own customers. On May 19, 2021, investigators intercepted telephone calls between Granison and co-conspirator Dkeidron Dublin, during which the two discussed Granison resupplying Dublin with cocaine sometime that afternoon. At approximately 3:23 p.m., surveillance officers observed Granison pull up to Dublin’s Birch Crescent residence in Rochester. Dublin came out of the residence and got into Granison’s vehicle. Investigators then surrounded the vehicle and took Granison and Dublin into custody. During the execution of search warrants on the vehicle and Dublin’s residence, 31 grams of cocaine and $1,241.00 in cash was recovered.
The sentencing is the result of an investigation by the New York State Police, under the direction of Major Brian J. Ratajczak, the Rochester Police Department, under the direction of Chief David Smith, the Greater Rochester Area Narcotics Enforcement Team, and Homeland Security Investigations, under the direction of Acting Special Agent-in-Charge Matthew Scarpino.
# # # #Buffalo Man Going to Prison for Selling Butyryl Fentanyl That Caused the Deaths of Two PeopleRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.—U.S. Attorney Trini E. Ross announced today that Nino Buggs, who was convicted of possession with intent to distribute, and distribution of, butyryl fentanyl and U-47700, was sentenced to serve 168 months in prison by U.S. District Judge John L. Sinatra, Jr.
Assistant U.S. Attorney Brendan T. Cullinane, who handled the case, stated that in March 2017, multiple law enforcement agencies at the state, county and local levels began investigating the drug trafficking activities of Buggs following the drug overdose death of two individuals identified as M.B. and H.W. On March 20, 2017, Buggs sold a quantity of fentanyl, butyryl fentanyl, and U-47700, which was injected intravenously by M.B at a residence in Tonawanda, NY. On March 21, 2017, M.B. was discovered unconscious and unresponsive. The Tonawanda Police Department and emergency medical personnel responded to the scene, but M.B. was pronounced dead. An examination concluded that M.B. died as a result of acute intoxication by the combined effects of fentanyl, butyryl fentanyl, U-47700, and clonazepam. On August 22, 2017, H.W. purchased a bundle of heroin from Buggs. That evening, H.W. intravenously injected the heroin. On August 24, 2017, Buffalo Police responded to a rescue call at a Richmond Avenue residence. Upon arrival, officers found H.W. deceased on the living room couch. An examination concluded that H.W. died as a result of heroin intoxication.
On August 24, 2017, investigators executed a search warrant at Buggs’ Roesch Avenue residence and seized quantities of heroin, crack cocaine, and cocaine, as well as cell phones, a scale containing suspected drug residue, a strainer with suspected drug residue, diluent, drug packaging, and ammunition.
The sentencing is result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank A. Tarentino III, New York Field Division; the New York State Police, under the direction of Major Eugene Staniszewski; the Buffalo Police Department, under the direction of Commissioner Joseph Gramaglia; the Tonawanda Police Department, under the direction of Chief James P. Stauffiger; and the Erie County Sheriff’s Department, under the direction of Sheriff John Garcia.
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Broome County Sex Offender Sentenced for Failing to Register Email AccountRead the Press Release
SYRACUSE, NEW YORK - Thomas E. Cargill, age 56, of Endicott, New York was sentenced today to 18 months in prison, to be followed by 20 years of supervised release, for failing to update his sex offender registration by maintaining an unregistered email account. The announcement was made by United States Attorney Carla B. Freedman and David L. McNulty, United States Marshal for the Northern District of New York.
Cargill also was ordered to pay a special assessment of $100. In addition to the term of imprisonment for failing to update his sex offender registration, Cargill was sentenced to an 10 month consecutive term of imprisonment for violating the conditions of his supervised release by committing new criminal conduct, failing to answer truthfully questions from his probation officer, and possessing an undisclosed internet capable device.
As part of his previously entered plea agreement, Cargill admitted that from November 5, 2016, through November 13, 2021, he failed to register a Google email address he created on September 24, 2016, as required by the Sex Offender Registration and Notification Act (“SORNA”). Cargill was required to register as a sex offender because of his prior federal conviction in 2008 for possession of child pornography in Maryland. That conviction required Cargill to register as a sex offender and to keep that registration current with personal identifying information, including email accounts. Cargill admitted that although he maintained his registration as a sex offender in the State of New York he did not register one of the email accounts that he had created despite knowing that he has an obligation under law to do so.
This case was investigated by the United States Marshals Service Sex Offender Investigation Branch with assistance from the United States Probation Office for the Northern District of New York, and was prosecuted by Assistant United States Attorney Geoffrey J. L. Brown.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney's offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Bowie County Man Sentenced for COVID-Relief FraudRead the Press Release
TEXARKANA, Texas – A Maud, Texas man has been sentenced for federal violations related to a COVID-relief fraud scheme in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Samuel Morgan Yates, 35, pleaded guilty on May 6, 2022, to wire fraud and was sentenced to 68 months in federal prison today by U.S. District Judge Robert W. Schroeder, III. Yates was also ordered to pay $1,066,432 in monetary penalties for restitution and forfeiture.
According to court documents, Yates made two fraudulent applications to two different lenders for loans guaranteed by the SBA for COVID-19 relief through the Paycheck Protection Program (PPP). In the application submitted to the first lender, Yates sought $5 million in PPP loan proceeds by fraudulently claiming to have over 400 employees with an average monthly payroll of more than $2 million. In the second application, Yates claimed to employ over 100 individuals and was able to obtain a loan of over $500,000. With each application, Yates submitted a list of purported employees that he obtained from a publicly available random name generator on the internet. He also submitted forged tax documents with each application.
“Protecting taxpayer dollars remains one of our highest priorities,” said U.S. Attorney Brit Featherston. “Government programs are designed to assist our citizens in their time of need and are done by following established protocols to ensure the money is properly disbursed and accounted for. Yates chose to steal from those most in need of assistance and is now being punished for his actions. Congratulations to the investigative and prosecution team for this outcome.”
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small-businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within eight weeks of receipt and use at least 75 percent of the forgiven amount for payroll.
This case was investigated by the SBA Office of Inspector General, and U.S. Postal Inspection Service. Trial Attorney Louis Manzo of the Criminal Division’s Fraud Section and Criminal Chief Frank Coan and Assistant U.S. Attorney Jonathan R. Hornok for the Eastern District of Texas prosecuted the case.
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Boone County Man Sentenced to Prison for Role in Damage to Energy FacilityRead the Press Release
CHARLESTON, W.Va. – Danny Griffy, 57, of Sylvester, was sentenced today to one year in prison, to be followed by three years of supervised release, for aiding and abetting the destruction of an energy facility, identified as a known mine located across Boone and Lincoln counties.
According to court documents and statements made in court, from April 8, 2018, until approximately April 17, 2018, Griffy aided the theft of specialized mine equipment from the known mine, resulting in more than $5,000 in damage. Griffy admitted to helping to steal equipment including pumps needed to treat water at the known mine site before it could be safely discharged into surrounding streams. Griffy further admitted to selling pieces of stolen equipment and receiving the proceeds.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) and the West Virginia State Police.
Senior United States District Judge John T. Copenhaver, Jr. imposed the sentence. Assistant United States Attorney Kathleen Robeson prosecuted 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-14.
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Beloit Man Charged with Transporting Minor Across State Lines & Producing Child PornographyRead the Press Release
MADISON, WIS. – A Beloit, Wisconsin man is charged with two offenses involving the sexual exploitation of a minor in an indictment returned on August 24, 2022, by a federal grand jury sitting in Madison. The charges are announced by Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin.
The indictment charges Everett Wescott, 32, with transporting a minor across state lines with the intent that the minor engage in any sexual activity for which a person can be charged with a criminal offense under Wisconsin state law, namely second degree sexual assault of a child. The indictment alleges that he transported the minor from Illinois to Wisconsin on March 19, 2021. The indictment also charges Wescott with using the minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct. The indictment alleges that he used an iPhone to produce the child pornography between January 2020 and September 2021.
The indictment was unsealed following Wescott’s arrest on Friday, September 2, in Beloit by FBI agents and officers with the Beloit Police Department. He was arraigned in U.S. District Court in Madison that day and remains in federal custody pending a detention hearing, which is scheduled for Friday, September 9, at 9:30 a.m.
If convicted, Wescott faces a mandatory minimum penalty of 10 years and a maximum of life in federal prison on the charge of transporting a minor across state lines and a mandatory minimum of 15 years and a maximum of 30 years on the production of child pornography charge. The charges against him are the result of an investigation by the Beloit Police Department and Federal Bureau of Investigation. Assistant U.S. Attorney Taylor Kraus is handling the prosecution.
You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Beaver Falls Man Sentenced to 7 Years for Conspiring to Distribute Cocaine and CrackRead the Press Release
PITTSBURGH - A former Beaver County resident has pleaded guilty and been sentenced in federal court to seven years of imprisonment and four years of supervised release on his convictions for violating federal narcotics laws, United States Attorney Cindy K. Chung announced today.
United States District Judge Cathy Bissoon imposed the sentence last Friday on Cadee Akins Jr., age 27, formerly o Beaver Falls, PA.
According to information presented to the court, Akins, Jr. conspired with his father, Cadee Akins, Sr., and others to possess with intent to distribute and distribute 500 grams or more of cocaine and 28 grams or more of cocaine base. The investigation revealed that from November 2017 to September 2020, the defendant supplied other drug dealers with cocaine or personally distributed crack to end users in Beaver Falls. During two controlled-buy operations, the defendant was recorded on audio and video distributing crack. Additionally, during a July 2019 traffic stop, law enforcement seized two kilograms of cocaine from the defendant’s father, who transported cocaine to individuals within the conspiracy using rental vehicles.
Assistant United States Attorney Brendan J. McKenna prosecuted this case on behalf of the government.
United States Attorney Chung commended the Drug Enforcement Administration and the Pennsylvania Office of Attorney General for the investigation leading to the successful prosecution of Akins Jr.
Bakersfield Man Pleads Guilty to Unlawfully Possessing FirearmRead the Press Release
Katterin McCray, 25, of Bakersfield, pleaded guilty today to being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Jan. 15, 2022, police officers in Bakersfield attempted to stop a vehicle in which McCray was the passenger for traffic infractions. The vehicle sped off and McCray discarded from the vehicle a Glock, Model 22, 40 caliber handgun with a high-capacity magazine and ammunition near the intersection of Cottonwood Road and Casa Loma Drive in Bakersfield. Because of his criminal record, including a 2017 conviction for being a felon in possession of a firearm and a 2018 conviction for receiving known stolen property, McCray may not lawfully possess firearms or ammunition.
This case is the product of an investigation by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Bakersfield Police Department. Assistant U.S. Attorney Christopher D. Baker is prosecuting the case.
McCray is scheduled to be sentenced by U.S. District Judge Ana de Alba on Dec. 12, 2022. McCray faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
5 September 2022
St. Francis Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Alison J. Ramsdell announced that a St. Francis, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on September 1, 2022, by Chief Judge Roberto A. Lange, U.S. District Court.
Tanner Kills Enemy, age 24, was sentenced to 10 months in federal prison, followed by five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Kills Enemy was indicted by a federal grand jury in January of 2022. He pleadedd guilty on June 16, 2022.
Kills Enemy, a person required to register as a sex offender by reason of a conviction under tribal law, knowingly failed to register and update his registration between November 12, 2021, and December 16, 2021, while living in St. Francis on the Rosebud Sioux Indian Reservation.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Cameron J. Cook prosecuted the case.
Kills Enemy was immediately remanded to the custody of the U.S. Marshals Service.
Rapid City Man Sentenced for Third Failure to Register as a Sex Offender ConvictionRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Rapid City, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on September 1, 2022, by Chief Judge Roberto A. Lange, U.S. District Court.
Trevor Red Bird, age 34, was sentenced to 26 months in federal prison, followed by five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Red Bird was indicted by a federal grand jury in March of 2022. He pleaded guilty on June 2, 2022.
Red Bird was convicted of Abusive Sexual Contact in May of 2008. As a result of this conviction, he is required to register as a sex offender. Red Bird was convicted of Failure to Register as a Sex Offender in 2017 and again in 2019. In March 2021, Red Bird was released from prison and began supervised release in Rapid City. Initially, Red Bird properly updated his registration. In December 2021, however, he moved from his registered address but did not update his registration. An arrest warrant was subsequently issued and on February 1, 2022, Red Bird was arrested in Rapid City.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Red Bird was immediately remanded to the custody of the U.S. Marshals Service.
Mission Man Indicted for Sexual Abuse, Distribution of a Controlled Substance, and Assault by Strangulation and SuffocationRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Sexual Abuse, Distribution of a Controlled Substance to a Person Under Age Twenty-One and Assault by Strangulation and Suffocation.
Alexander Brave, age 29, was indicted in August of 2022. He appeared before U.S. Magistrate Judge Mark A. Moreno on September 2, 2022, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in federal prison and/or a $250,000 fine, up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that in August of 2021, in Todd County, South Dakota, Brave distributed methamphetamine to a victim who was under the age of 21, and that he engaged in a sexual act with that victim while she was incapable of declining participation in the sexual act. The Indictment further alleges that between June of 2021 and October of 2021, in Todd County, Brave engaged in a sexual act with a second victim who had attained the age of 12 years but had not attained the age of 16 years, and that he assaulted the victim by strangling, suffocating, and attempting to do so.
The charges are merely accusations and Brave is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Brave was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Mission Man Indicted for Sexual Abuse and Distribution of a Controlled SubstanceRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Sexual Abuse and Distribution of a Controlled Substance to a Person Under Age Twenty-One.
Jeremy Richards, age 28, was indicted in August of 2022. He appeared before U.S. Magistrate Judge Mark A. Moreno on September 2, 2022, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in federal prison and/or a $250,000 fine, up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that in August of 2021, in Todd County, South Dakota, Richards distributed methamphetamine to a victim who was under the age of 21, and that he engaged in a sexual act with that victim while she was incapable of declining participation in the sexual act. The indictment further alleges that between January 1, 2021, and January 1, 2022, in Todd County, Richards distributed methamphetamine to two other individuals who were under the age of 21.
The charges are merely accusations and Richards is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Richards was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
3 September 2022
Canadian Man Charged in Drug Trafficking Scheme that Allegedly Shipped Millions of Dollars of Meth and Cocaine in Big RigsRead the Press Release
LOS ANGELES – An investigation into an international drug trafficking organization has resulted in the arrest of a Canadian man who allegedly orchestrated the shipment of narcotics from the Los Angeles area to Canada and who is directly linked in court papers to the seizure of more than 1,000 pounds of methamphetamine and 333 kilograms of cocaine, the Justice Department announced today.
Sam Nang Bou, 40, of Edmonton, Canada, was arrested Thursday night by the FBI. Bou made his initial court appearance Friday afternoon and was ordered held without bond.
A criminal complaint filed Friday in federal court alleges that, over the past year, Bou travelled to Southern California to personally handle the delivery of large shipments of drugs to long-haul semi-truck drivers.
The criminal complaint specifically charges Bou with the distribution of cocaine in relation to a shipment of 105 kilograms of cocaine that was delivered to a semi-truck in Hesperia on June 28 and later seized by law enforcement in Arizona. That cocaine trafficking offense carries a mandatory minimum sentence of 10 years and a maximum sentence of life in federal prison.
The affidavit in support of the complaint outlines a series of deliveries and subsequent seizures, most of which begin with Bou leaving one of two “stash houses” in Alhambra. Bou drove to various locations in Southern California, where he delivered boxes and duffel bags filled with narcotics that were loaded into the passenger compartments of semi-trucks, according to the affidavit.
The complaint alleges that Bou made a total of eight deliveries of narcotics to semi-truck drivers, including a shipment of 500 pounds of methamphetamine that was seized on August 23. Additionally, in conjunction with Bou’s arrest, law enforcement conducted several searches and recovered 48 kilograms of suspected cocaine inside two sophisticated hidden compartments in a minivan that Bou had recently locked up in a storage facility in Pasadena.
As a result of the seizures over the past year – a total of 1,008 pounds of methamphetamine and 333 kilograms of cocaine – the affidavit estimates that “Bou has distributed drugs with a value of at least $9.8 million in Los Angeles, and likely several times that amount if exported and resold in Canada.”
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Bou is scheduled to be arraigned on September 22.
The FBI and the Los Angeles HIDTA Task Force are conducting the investigation into Bou and his alleged associates. The Royal Canadian Mounted Police, the Los Angeles Violent Transnational Organized Crime Task Force, the Las Vegas Metropolitan Police Department, the California Highway Patrol, the Barstow Police Department, the Mohave Area General Narcotics Enforcement Team, and the Kern County Sheriff's Office have provided substantial assistance in this matter.
The case against Bou is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts and dismantles the highest-level drug traffickers, money launderers, gangs and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks
Assistant United States Attorney Brittney M. Harris of the International Narcotics, Money Laundering, and Racketeering Section is prosecuting this case.
2 September 2022
Woman Sentenced to 63 Months in Federal Prison for Robbing a BankRead the Press Release
DENVER- The United States Attorney’s Office for the District of Colorado announces Georgiana Elizabeth Jones, age 43, was sentenced to 63 months in federal prison for bank robbery.
According to the plea agreement, On October 25, 2021, Jones entered the PNC Bank located on N. Garfield Street in Denver. The defendant approached the teller and asked for a deposit slip. She also asked questions about what kind of identification was needed for a deposit. She then walked out the front door of the bank and got into the back seat of a black Audi SUV. About 30 minutes later, the defendant returned to the bank wearing the same clothing, with the addition of a black and red baseball hat and sunglasses. The defendant placed a bag onto the counter, along with a demand note, on what appeared to be the same deposit slip she had obtained earlier. The teller complied, and the defendant left the bank.
“We are serious about prosecuting bank robbers. Whether it is one robbery or a series of robberies, with or without a weapon, we will hold you accountable,” said U.S. Attorney Cole Finegan. “We hope this prison sentence and others like it send a clear message to would-be bank robbers that we will not tolerate it.”
“This sentencing is an example of the ongoing collaboration between the FBI, its law enforcement partners, and the United States Attorney’s Office in their commitment to address the issue of bank robberies in the Denver metro area. Thanks to the work of our dedicated partners, this defendant is facing the consequences of her crimes," said FBI Denver Special Agent in Charge Michael Schneider.
Chief Judge Philip A. Brimmer sentenced the defendant on September 2, 2022. He also sentenced her to supervised release for a term of 3 years.
The FBI Rocky Mountain Safe Streets Task Force investigated this case. Assistant U.S. Attorney Brian Dunn handled the prosecution.
CASE NUMBER: 21-cr-00389-PAB
West Valley City Man Charged with Possessing 50 Pounds of Methamphetamine, 33 Pounds of Heroin, 13 Pounds of Cocaine, 5,000 Fentanyl Pills, and 19 FirearmsRead the Press Release
SALT LAKE CITY – Innocente Ramirez, 38, of West Valley City, was charged by federal criminal complaint with the possession of methamphetamine, heroin, cocaine, and fentanyl, with the intent to distribute, and with the possession of firearms in furtherance of a drug trafficking crime.
According to the allegations contained in the criminal complaint and law enforcement affidavit, in August of 2022, special agents from Homeland Security Investigations and task force officers from the Utah County Major Crimes Task Force began the investigation into Ramirez’s drug trafficking operation. During this time, law enforcement officers obtained delivery of one pound of methamphetamine from Ramirez and located Ramirez’s residence and the storage unit where Ramirez stored his narcotics. Law enforcement then obtained search warrants for Ramirez’s Salt Lake City storage unit and West Valley City home. During the execution of the search warrant on Ramirez’s storage unit, law enforcement officers seized 50 pounds of methamphetamine, 33 pounds of heroin, 13 pounds of cocaine, 5,000 fentanyl pills, and 17 firearms, two of which were stolen. During the search of Ramirez’s home, law enforcement seized two firearms, drug packaging material, and drug paraphernalia.
Assistant United States Attorneys from the United States Attorney’s Office for the District of Utah are prosecuting the case. Special agents from Homeland Security Investigations and task force officers from the Utah County Major Crimes Task Force are conducting the investigation.
A criminal complaint is a formal accusation of criminal conduct, not evidence. Defendants are presumed innocent unless and until proven guilty.
Violent Felon Sentenced to 15 Years in Federal Prison for Methamphetamine Trafficking and Gun CrimesRead the Press Release
EVANSVILLE – Nathaniel J. Jacobs, Sr., 54, of Evansville, Indiana, was sentenced to 15 years in federal prison for unlawful possession of a firearm by a previously convicted felon, possession with intent to distribute methamphetamine, possession of a firearm in furtherance of drug trafficking, and witness tampering. Jacobs was found guilty on June 2, 2022, following a three-day federal jury trial.
According to documents and evidence introduced in court, on January 31, 2020, Jacobs was admitted to a local hospital for a gunshot wound to his hand. At the hospital, he told law enforcement officers that he accidently shot himself with one of the three guns he had at his home. Jacobs is prohibited from possessing firearms due to his numerous felony convictions, including multiple crimes of violence. Law enforcement searched Jacobs’ home pursuant to a warrant and found three handguns, ammunition, and approximately 7 grams of methamphetamine. The methamphetamine had been divided into smaller amounts and prepackaged in plastic bags for easy distribution.
After being indicted by a federal grand jury, Jacobs contacted a material witness on several occasions via telephone and video calls. During those calls, he falsely told the witness that she was under criminal investigation for shooting him in the hand, and the two of them needed to get married to legally protect themselves. Jacobs believed that his marriage to the witness would prevent her from testifying against him at trial. Jacobs told the witness that they could get divorced after the case concluded.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana and Herbert J. Stapleton, Special Agent in Charge of the FBI Indianapolis, made the announcement.
The Federal Bureau of Investigation investigated the case. The Evansville Police Department and the Drug Enforcement Administration provided valuable assistance. The sentence was imposed by U.S. District Judge Richard L. Young. As part of the sentence, Judge Young ordered that Jacobs be supervised by the U.S. Probation Office for four years following his release from federal prison.
U.S. Attorney Myers thanked Assistant U.S. Attorneys Matthew Miller and Todd Shellenbarger who prosecuted this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Vinita Man Sentenced to 10 years in Prison for being an Accessory After the Fact to a Craig County MurderRead the Press Release
A Vinita man who tampered with evidence following a murder and provided the killer a place to stay afterward was sentenced Thursday in federal court, announced U.S. Attorney Clint Johnson.
U.S. District Judge Gregory K. Frizzell sentenced Dale Eugene Warren, 66, to 120 months in federal prison followed by three years of supervised release.
“Dale Warren destroyed and discarded evidence following the horrific murder of Christopher Boren in 2019,” said U.S. Attorney Clint Johnson. “Individuals who help others hide their crimes or fail to report them should be prepared to face charges.”
“Thanks to a determined investigation by the FBI and our law enforcement partners, this deplorable cover-up of a cold-blooded murder will not go unpunished,” said FBI Oklahoma City Special Agent in Charge Edward J. Gray. “This sentence should serve as a warning that any attempt to tamper with the justice system will not be tolerated.”
Warren pleaded guilty on Dec. 1, 2021, to accessory after the fact to first degree murder in Indian Country. He admitted that he was with codefendant Johnny Lee Arnold when Arnold struck the victim, Christopher Boren, with a small baseball bat and repeatedly stabbed him with a knife, leading to Boren’s death.
Warren further admitted that he disposed of the murder weapon in a river and provided a hose and water for Arnold to wash away blood and other evidence from Arnold’s clothes and vehicle. Finally, he said that he provided Arnold with a place to stay following the murder.
Warren stated that he did not contact authorities about the murder. Warren claimed that Arnold told him that he (Arnold) was a member of the Aryan Brotherhood and that he had people in 48 states who could get to Warren if he spoke about the crime.
The victim’s body was found in rural in Craig County.
On May 10, 2022, Arnold, 34, of Langley, pleaded guilty to second degree murder. The plea agreement stipulated that Arnold should serve between 25 and 35 years for the crime. A federal judge will decide whether to accept the plea agreement and will determine an appropriate sentence at a hearing to be held at a later time.
The FBI, Oklahoma State Bureau of Investigation, Mayes County Sheriff’s Office and Craig County Sheriff’s Office conducted the investigation. Assistant U.S. Attorneys John E. Brasher and Ben Tonkin are prosecuting the case.
Victim Assistance AdvisoryRead the Press Release
ANCHORAGE – Today, Senior U.S. District Judge Ralph R. Beistline issued an order directing the government to employ alternative victim notification procedures in a 31-count indictment case charging two Fairbanks men with conspiracy, bank and wire fraud, aggravated identity theft and money laundry.
According to federal court documents, Jared Post, 25, and Levi Skulstad, 26, defrauded multiple banks and individuals they viewed as vulnerable to scams between 2017 and 2021, obtaining at least $500,000. Post and Skulstad contacted individuals who they called “Plays” via social media or in person and convinced the “Play” to share their bank account information under the pretense they needed to deposit a check into the “Play’s” account. Post or Skulstad then offered the “Play” a portion of the deposited check in return for use of the “Play’s” bank account.
Once the check posted in the “Play’s” account, Post or Skulstad logged in via the “Play’s” remote banking app and withdrew or transferred the funds electronically or directed the “Play” to transfer the funds to one of them via a cash app or Western Union. In reality, the checks Post and Skulstad deposited were stolen and fraudulently altered; and they withdrew the funds prior to the bank flagging the checks as fraudulent and reversing the transaction. The involved banks, the “Plays,” and the initial victim whose checks were stolen, were left paying losses and overdraft fees while Post and Skulstad made off with the cash.
Anyone who believes they may be a victim in these schemes may contact the FBI Anchorage Field Office at 907-276-4441.
The victim-witness program of the U.S. Attorney’s Office, District of Alaska, provides information, services and support to individuals during federal prosecution. Case updates will be provided on the U.S. Attorney’s Office, District of Alaska website at https://www.justice.gov/usao-ak/case-updates. Please also be aware of these free, confidential resources that may be of assistance:
- Identity Theft Resource Center, 888-400-5530 or https://www.idtheftcenter.org/ is a non-profit organization and provides information about preventing, recovering and protecting from identity theft.
- Federal Trade Commission Identity Theft website to report identity theft and a recovery plan https://www.identitytheft.gov/#/
- Federal Trade Commission website provides consumer advice about what to do if you were scammed https://consumer.ftc.gov/articles/what-do-if-you-were-scammed.
- Federal Trade Commission webpage sharing about different types of scams https://consumer.ftc.gov/features/pass-it-on
U.S. Attorney S. Lane Tucker of the District of Alaska and Special Agent in Charge Antony Jung of the FBI’s Anchorage Field Office made today’s announcement.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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U.S. Attorney Announces Extradition of Two Defendants Charged with Bribing High-Level Officials of the Republic of the Marshall IslandsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Kenneth A. Polite, Jr., Assistant Attorney General for the Criminal Division of the U.S. Department of Justice, and Michael J. Driscoll, Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an Indictment charging CARY YAN, a/k/a “Hong Hui Yan,” a/k/a “Chen Hong,” and GINA ZHOU, a/k/a “Chaoting Zhou,” a/k/a “Angel Zhou,” with engaging in a multi-year scheme to bribe government officials in the Republic of the Marshall Islands (the “RMI”) to pass certain legislation that would benefit the business interests of YAN, ZHOU, and their associates. YAN and ZHOU are charged with violations of the Foreign Corrupt Practices Act (“FCPA”), money laundering, and conspiracy to commit both. YAN and ZHOU were arrested in Thailand on November 16, 2020, were extradited from Thailand, and arrived in this District today. YAN and ZHOU are expected to be presented on Tuesday. The case is assigned to District Judge Naomi Reice Buchwald.
U.S. Attorney Damian Williams said: “As alleged, Cary Yan and Gina Zhou’s bribery scheme was designed to influence and manipulate the legislative process of the Republic of the Marshall Islands in order to benefit themselves and their associates financially. Yan and Zhou’s bribes blatantly flouted the sovereignty of the Republic of the Marshall Islands and its legislature, and the dedicated investigative work carried out by this Office and our partners signals that the Southern District of New York will not tolerate those who violate the integrity of democratic processes.”
Assistant Attorney General Kenneth A. Polite, Jr. said: “Yan and Zhou allegedly engaged in a multi-year scheme to bribe elected officials in the Marshall Islands and to corrupt the legislative process. The department is committed to prosecuting individuals who participate in international corruption and undermine the integrity of democratic institutions and the free marketplace.”
FBI Assistant Director Michael J. Driscoll said: “As alleged, the defendants conducted multiple illegal activities to benefit their personal interests at the expense of the people of the Marshall Islands. The FBI, along with our global law enforcement partners, is committed to bringing to justice those who seek to use corruption and fraud as a means of doing business - regardless of where in the world they are located.”
According to the Indictment unsealed today in Manhattan federal court and publicly-available information:[1]
CARY YAN and GINA ZHOU, acting as officers, directors, employees, and agents of a New York City-based non-governmental organization (the “NGO”) and while in New York City and other locations in the territory of the United States, participated in a scheme to offer and pay bribes to government officials in the RMI to pass legislation that would benefit the business interests of YAN, ZHOU, and their associates. From at least in or about 2016 through at least in or about 2019, YAN was and held himself out to be the President and Chairman of the NGO, and ZHOU was and held herself out to be the assistant to the President and Chairman of the NGO.
Beginning at least as early as in or about December 2016, YAN and ZHOU began communicating and meeting with RMI officials in both New York City and the RMI concerning the development of a semi-autonomous region within a part of the RMI known as the Rongelap Atoll. The creation of the proposed semi-autonomous region was intended by YAN, ZHOU, and those associated with them to obtain business by, among other things, allowing the NGO, YAN, and ZHOU to attract investors to participate in economic and social development projects that YAN, ZHOU, and others promised would occur in the semi-autonomous region.
In or about April 2018, YAN and ZHOU caused the NGO to host a conference in Hong Kong that was attended by, among others, RMI officials. The purpose of the conference was to publicly launch an initiative to establish the so-called Rongelap Atoll Special Administrative Region (the “RASAR”), also known as the Rongelap Special Economic Zone or Rongelap Atoll Digital Special Economic Zone, among other names. As proposed by YAN and ZHOU, the RASAR would be created by legislation (the “RASAR Bill”) that, if enacted by the RMI legislature, would significantly change the laws on the Rongelap Atoll to attract foreign businesses and investors, such as by lowering or eliminating taxation and relaxing immigration regulations. YAN planned to use the RASAR to, among other things, attract investors and customers to businesses that he would operate in the RASAR, in whole or in part through the NGO. A number of RMI officials attended the April 2018 conference, including certain members of the RMI legislature with the ability to vote on the RASAR Bill if and when it was introduced. The NGO paid for the travel of those officials to Hong Kong and for their accommodations and entertainment while there.
In or about mid-August 2018, certain RMI legislators officially introduced the RASAR Bill. Starting before that date, and continuing until at least on or about November 1, 2018, YAN and ZHOU offered and provided a series of cash bribes and other incentives to obtain the support of RMI legislators for the RASAR Bill.
On or about November 18, 2019, the RMI held elections for the legislature. As a result of these elections, on or about January 13, 2020, the then-President of the RMI left office. Shortly thereafter, YAN and ZHOU began emailing and meeting with certain RMI officials to continue their plan to create the RASAR. In or about late February 2020, the RMI legislature began considering a resolution that would endorse the concept of the RASAR (the “RASAR Resolution”), a preliminary step that would allow the RMI legislature to enact the more detailed RASAR Bill at a later date.
On or about March 7, 2020, YAN and ZHOU met with a close relative (the “Relative”) of a member of the RMI legislature in the RMI (“Official-3”). During the meeting, YAN and ZHOU gave the Relative $7,000 in cash to pass on to Official-3, specifying that this money would be used to induce and influence other RMI legislators to support the RASAR Resolution. YAN and ZHOU further stated, in sum, that they knew that Official-3 needed more than $7,000 for this purpose and that YAN and ZHOU would soon obtain additional cash for Official-3. YAN and ZHOU also discussed having previously brought larger sums of cash into the RMI through the United States and that they planned to do so again in the future.
On or about March 20, 2020, the RMI legislature passed the RASAR Resolution with the support of legislators to whom ZHOU and YAN had provided bribes and other incentives.
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YAN, 50, and ZHOU, 34, both of whom have traveled on passports issued by the RMI, are charged with conspiring to violate the FCPA, violating the FCPA, conspiring to commit money laundering, and committing money laundering. The maximum penalties for these charges are as follows: five years in prison for conspiring to violate the FCPA; five years in prison for each violation of the FCPA; 20 years in prison for conspiring to commit money laundering; and 20 years in prison for committing money laundering.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Williams praised the outstanding work of the FBI. Mr. Williams also thanked the Department of Justice, Criminal Division’s Office of International Affairs for their assistance in the extradition of YAN and ZHOU, as well as the U.S. Embassy in Bangkok, the Royal Thai Police, and the Office of the Attorney General of Thailand.
The case is being prosecuted by the Office’s Public Corruption Unit and the Criminal Division’s Fraud Section. Assistant U.S. Attorneys Hagan Scotten, Lara Pomerantz, and Derek Wikstrom, and Trial Attorney Gerald Moody are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the Indictment and the descriptions of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Two Individuals Sentenced in International Scheme to Obtain over 800 Cell PhonesRead the Press Release
HARRISBURG—The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Nana Mensah, age 37, of Delaware, was sentenced to 99 months’ imprisonment to be followed by three years of supervised release by U.S. District Court Judge Jennifer P. Wilson following Mensah’s conviction on 15 counts of mail fraud, four counts of aggravated identity theft, one count of conspiracy to commit mail fraud and one count of conspiracy to commit aggravated identity theft. Judge Wilson also ordered Mensah to pay restitution to Sprint, Inc. in the amount of $357,565.92.
Judge Wilson also sentenced co-defendant Shaderick Jojo Opare, age 32, of Reading, Pennsylvania, to three days’ imprisonment to be followed by three years of supervised release for conspiracy to commit mail fraud. Opare was also ordered to pay restitution to Sprint, Inc. in the amount of $185,272.
According to United States Attorney Gerard M. Karam, Mensah and Opare were involved in an international scheme in which co-conspirators, often located in Ghana, would steal victims’ identity in order to open Sprint cell phone accounts. As part of opening the new accounts, the co-conspirators would order new cell phones and have them delivered to vacant homes where they would be picked up by other co-conspirators and eventually resold. The conspiracy involved more than 270 packages containing over 830 cell phones that were valued at over $595,000. The conspiracy took advantage of over 240 identity theft victims.
Mensah and Opare’s codefendants were initially indicted in November of 2017, with the following codefendants:
- Patrick Barkers-Woode was sentenced on July 13, 2022, to 111 months’ imprisonment and ordered to pay $357,565.92 in restitution following his conviction of 15 counts of mail fraud, four counts of aggravated identity theft and conspiracy to commit mail fraud and identity theft;
- Jason Moskovitz was sentenced on July 13, 2022, to 39 months’ imprisonment and ordered to pay $201,574 in restitution following pleading guilty to conspiracy to commit mail fraud and aggravated identity theft;
- Mody Kalle was sentenced on March 4, 2020, to two years’ imprisonment and ordered to pay $201,574 in restitution following pleading guilty to aggravated identity theft; and
- Sean Murphy was sentenced on August 27, 2020, to two years’ probation and ordered to pay $79,944 in restitution following pleading guilty to conspiracy to commit mail fraud.
The investigation was handled by Homeland Security Investigation, the Pennsylvania State Police, the Delaware State Police, and the Derry Township Police Department. Assistant U.S. Attorneys Scott R. Ford and Christian T. Haugsby prosecuted the case.
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Two Coosa County Residents Sentenced for Charges Relating to the Sexual ExploitationRead the Press Release
Montgomery, Alabama – On Wednesday, August 31, 2022, Michael Ochoa, 27, and Chasity Breanna Harris, 22, were sentenced for their roles in sexually exploiting a five-year old child, announced United States Attorney Sandra J. Stewart. Ochoa was sentenced to 60 years for the sexual exploitation of a child and advertising child pornography. Harris was sentenced to 25 years for the sexual exploitation of a child. There is no parole in the federal system.
According to their plea agreements and other federal court documents, in January of 2021, the National Center for Missing and Exploited Children (NCMEC) received a report originating in Alabama describing activity related to child pornography on Twitter. Based on that report, the Alabama Law Enforcement Agency (ALEA) began an investigation. Ochoa and Harris, who were residing together in Coosa County, soon became suspects. When law enforcement agents searched electronic devices belonging to Ochoa and Harris, they found evidence of child pornography.
During their June 6, 2022, plea hearing, Ochoa and Harris specifically admitted that they took pictures of a five-year-old child’s genitalia and subsequently uploaded the images to social media sites. Ochoa also admitted that he recorded the child engaging in sexually explicit conduct and that he offered to, and ultimately did, share child pornography on the Kik messaging app with another user.
“The conduct that occurred here was horrendous—there is no place for it in our communities,” stated United States Attorney Stewart. “The defendants harmed their victims in immeasurable ways, and the damage cannot be undone. It is my hope that the significant prison sentences imposed in this case will deter others who might prey on vulnerable children.”
FBI Special Agent in Charge Paul Brown stated, "This case demonstrates the FBI's commitment, along with our partners, to protect children, who are the most vulnerable and innocent members of our community, and to bring to justice those who victimize them."
This case was investigated by ALEA and the FBI, with assistance from NCMEC and the Coosa County Sheriff’s Office. Assistant United States Attorney J. Patrick Lamb prosecuted the case.
Three Time Rochester Felon Going to Prison for Possessing AmmunitionRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Montrya D. Brown, 31, of Rochester, NY, who was convicted of possession of ammunition by a convicted felon, was sentenced to serve 30 months in prison by U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Katelyn M. Hartford, who handled the case, stated that on January 6, 2022, New York State Parole Officers searched Montrya’s St. Paul Street residence, and seized a 12-gauge shotgun and multiple rounds of ammunition. Montrya was previously convicted in September and October of 2015, and in June of 2020, of felony crimes in Monroe County Court and is legally prohibited from possessing ammunition.
The sentencing is a result of an investigation by the New York State Department of Corrections and Community Supervision, under the direction of Acting Commissioner Anthony J. Annucci and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. DeVito.
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Tampa Area Man Indicted for String of Bank RobberiesRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging James Junior Williams (44, Tampa) with four counts of bank robbery. If convicted, Williams faces up to 20 years in federal prison on each count. The indictment also notifies Williams that the United States intends to forfeit the proceeds that Williams obtained as results of his offenses.
According to the indictment, on February 18, 2022, Williams robbed a bank in the Tampa area. Several weeks later, on March 8, 2022, he returned to the same bank and robbed it for a second time. The indictment further alleges that Williams attempted to take money from a third bank in the Tampa area on April 13, 2022. When he was unsuccessful at this bank, Williams drove to another bank, where he was successful in obtaining money.
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 Federal Bureau of Investigation, the Tampa Police Department, and the Hillsborough County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Samantha Newman. The forfeiture will be handled by Assistant United States Attorney James Muench.
Stevens County Man Sentenced to Twelve Years in Federal Prison for Seeking Sex with a ChildRead the Press Release
Spokane – Senior United States Senior District Judge Rosanna Malouf Peterson sentenced James Drew Bradley, age 65, of Addy, Washington, to twelve years in prison this week for Attempted Online Enticement of a Minor. At the conclusion of his prison term, Bradley will spend the rest of his life on federal supervision. Judge Peterson also imposed a $55,000 fine. Bradley entered a guilty plea on May 26, 2022.
According to court documents, in 2019, the FBI and Spokane Police Department (SPD) opened separate investigations into Bradley, who was soliciting sex from both adult women and minor girls. The FBI’s investigation began in June 2019 when Bradley asked an adult woman to find a 12-year-old girl with whom Bradley could have sex. In text messages that continued into August 2019, Bradley asked the adult woman, “Did you find what I am looking for?” Bradley continued, “you can find a young one,” and offered $1,000 if the adult woman found a child for Bradley. The adult woman instead reported Bradley to law enforcement. With her consent, an underofficer SPD officer took over her phone to continue communicating with Bradley.
On August 8, 2019, in a chat with the undercover officer, Bradley again requested sex with a 12-year old girl and asked for child pornography of the girl. In subsequent messages, Bradley negotiated the terms of an in-person encounter, confirming that he had booked a hotel room at a hotel in Spokane. He also arranged to meet with the adult woman and 12-year old girl at a restaurant in Spokane. Bradley specifically promised to pay the adult woman $1,000 for sex with the child, or $1,200 for anal sex with both the adult and the child without a condom.
When Bradley arrived at the restaurant to meet the adult woman and child, FBI and SPD officers immediately arrested him. Inside his truck, officers recovered vacuum-sealed packs containing large quantities of cash. In a nearby motel room that Bradley had rented, FBI and SPD officers recovered lubricant, condoms, and sex toys.
“I commend the seamless cooperation between the FBI, SPD, and the U.S. Attorney’s Office,” said Vanessa R. Waldref, United States Attorney for the Eastern District. “For decades now, our community has been fortunate to have some of the most experienced and conscientious child exploitation investigators and prosecutors in the nation, both state and federal. This case shows exactly why we do proactive investigations into people who seek out children for sex. This investigation conducted by FBI and SPD prevented Mr. Bradley from continuing to seek out children for sex and protected vulnerable members of our community from harm and trauma. ”
Assistant United States Attorney David M. Herzog, who prosecuted the case, singled out the adult woman who identified Mr. Bradley to law enforcement. “We all owe a debt of gratitude to the woman who identified Mr. Bradley to the FBI and SPD when he asked her to locate a child with whom he could have sex. But for her courage and ethical conduct, Mr. Bradley would still be at large, posing a significant risk to the children in this community.” AUSA Herzog noted:
“This lengthy sentence will prevent Mr. Bradley from harming children for more than a decade, and is a warning to anyone who seeks to victimize children in Eastern Washington: whether you hide behind a computer screen or an adult go-between, law enforcement will catch and convict you, and the consequences will be severe.”
“After understanding the details of Mr. Bradley’s plan, it is clear prison is where he belongs,” said Richard A. Collodi, Special Agent in Charge of the FBI’s Seattle field office. “Had it not been for the courage of a member of the public who provided a crucial tip in this case, Bradley’s pursuit of a child to victimize most surely would have continued.”
“The SPD is thankful justice was served in this case,” Spokane Police Chief Craig Meidl stated. “These cases are particularly disturbing when someone is willing to prey on innocent children for their own gratification. Thankfully, the collaborative efforts of Spokane Police and our law enforcement partners resulted in removing a dangerous predator from the streets before he victimized an innocent child.”
This case was pursued as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. The Project Safe Childhood Initiative (“PSC”) has five major components:
· Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue children;
· Participation of PSC partners in coordinated national initiatives;
· Increased federal enforcement in child pornography and enticement cases;
· Training of federal, state, and local law enforcement agents; and
· Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
This case was investigated by the FBI’s Spokane Resident Office and the Spokane Police Department. This case was prosecuted by David M. Herzog, Assistant United States Attorney for the Eastern District of Washington.
Southwest Georgia Resident with Lengthy Criminal History Sentenced to Prison for Trafficking MethRead the Press Release
ALBANY, Ga. – An Albany resident with a lengthy criminal history trafficking controlled substances in the community was sentenced to federal prison after being caught distributing methamphetamine during a GBI-led investigation.
Gregory Washington, 30, of Albany, was sentenced to serve 262 months in prison to be followed by three years of supervised release by U.S. District Judge Louis Sands on Sept. 1 after he previously pleading guilty to distribution of methamphetamine. There is no parole in the federal system.
“Career offenders who repeatedly break the law must be held accountable for their crimes,” said U.S. Attorney Peter D. Leary. “Law enforcement is working to identify and bring to justice those individuals who are instigating the most havoc in the communities we serve, in an effort to reduce crime and make our neighborhoods safer.”
“ATF’s central objective is ensuring the safety of local residents. To accomplish this mission, ATF will aggressively and acutely target individuals who seek to diminish the general welfare through violence, narcotics sales and illegal firearms trafficking,” said Assistant Special Agent in Charge Beau Kolodka.
“Illegal drugs have no place in Georgia. They are dangerous and threaten the safety of our communities. We will continue to work diligently with our federal partners to investigate drug trafficking,” said GBI Director Michael Register.
According to court documents, state and federal agents were conducting surveillance regarding Washington’s ongoing controlled substance distribution activities in the Albany community. On Aug. 12, 2021, an undercover GBI agent communicated with Washington about purchasing a quantity of methamphetamine and agreed to conduct the transaction at a store on West Oakridge Drive in Albany. Surveillance units observed Washington first meet with the occupant of a vehicle at a near nearby gas station before meeting with the undercover agent. The substance sold to the undercover agent by Washington amounted to 111.343 grams of methamphetamine with 100% purity. Washington has a lengthy criminal history with multiple felony convictions in Dougherty County, Georgia, Superior Court for the distribution of controlled substances.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) and GBI. Assistant U.S. Attorney Leah McEwen prosecuted the case.
Sioux City Man Pleads Guilty in Federal CourtRead the Press Release
A Sioux City man who possessed a stolen firearm as a felon pled guilty September 1, 2022, in federal court in Sioux City. Michael David Groves, age 26, from Sioux City, Iowa was convicted of possession of a firearm by a felon. In a plea agreement, Groves admitted to being a convicted felon and knowing he was prohibited from owning a firearm. Groves admitted to possessing a 12-gauge shotgun, which was reported stolen after a burglary in Plymouth County, Iowa.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Groves remains in custody of the United States Marshal pending sentencing. Groves faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, and 3 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Ron Timmons and was investigated by the United States Marshal Service, Bureau of Alcohol, Tobacco, Firearms, and Explosives, Federal Bureau of Investigation, Nebraska State Patrol, Sioux City Police Department, and Plymouth County Sheriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-4046.
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Repeat Violent Felon Sentenced to 57 Months in Federal Prison for Possessing Firearms While Serving Community Corrections for Prior Firearms OffensesRead the Press Release
INDIANAPOLIS – Christopher Allen, 29, of Indianapolis, was sentenced to 57 months in federal prison after pleading guilty to unlawful possession of a firearm by a convicted felon.
According to court documents, on November 5, 2019, officers with the Indianapolis Metropolitan Police Department (IMPD) attempted a traffic stop of a vehicle in which Allen was a passenger near 42nd Street and Baker Drive, in Indianapolis. The driver of the vehicle did not immediately stop but kept traveling and crossed into oncoming lanes of traffic before finally stopping against the opposite curb. As soon as the vehicle stopped, Allen fled from the passenger side and led police in a foot pursuit. During the pursuit, an officer observed a handgun in Allen’s left hand, which Allen later threw against a shed as he continued running. Officers also observed Allen toss a clear plastic bag containing a white substance. Allen eventually stopped running and gave himself up to police.
Police ran a record check and found that Allen had an active felony warrant for a community corrections violation and for failing to appear for a hearing related to a prior illegal firearms possession case. Officers searched Allen and found a $1 bill with three oxycodone pills inside and a small baggie of raw, ground marijuana in his right front pants pocket. Allen agreed to speak to officers, described the handgun, and told police where he threw it. Officers, with the assistance of a trained ballistics K-9 partner, recovered a 9mm handgun about 20 feet from the shed where Allen had indicated he’d thrown it. An extended magazine belonging to the handgun was found inside the vehicle that Allen had fled. Allen was subsequently arrested by IMPD.
Allen is a violent criminal offender with a history of illegally possessing firearms and has violated the terms of probation on multiple occasions. While on probation following convictions for domestic violence and criminal confinement against the mother of his child, Allen was charged in two new cases. The most significant of these two cases involved charges for unlawful possession of a firearm by a serious violent felon and maintaining a common nuisance. Allen was on community corrections for these offenses at the time of his November 5, 2019, arrest.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, and Daryl S. McCormick, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Columbus Field Division, made the announcement.
ATF investigated the case in conjunction with the Indianapolis Metropolitan Police Department. The sentence was imposed by U.S. District Judge James R. Sweeney II. As part of the sentence, Judge Sweeney ordered that Allen be supervised by the U.S. Probation Office for three years following his release from federal prison.
U.S. Attorney Myers thanked Assistant U.S. Attorney Jayson W. McGrath who prosecuted this case.
This case was brought as part of the LEATH Initiative (Law Enforcement Action to Halt Domestic Violence), named in honor of Indianapolis Metropolitan Police Department (IMPD) Officer Breann Leath, who was killed in the line of duty while responding to a domestic disturbance call. A partnership among the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the IMPD, and the U.S. Attorney’s Office for the Southern District of Indiana, the LEATH Initiative focuses federal, state, and local law enforcement resources on domestic violence offenders who illegally possess firearms.
Additionally, this case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Reno Resident Sentenced to Prison for Large-Scale Retail Theft RingRead the Press Release
RENO – A Reno man was sentenced yesterday by Chief U.S. District Judge Miranda M. Du to 71 months in prison — with five months to run concurrent to his current state time and the remainder to run consecutive to his state time — followed by three years of supervised release for conducting a million-dollar retail theft operation by buying stolen items from drug abusers and reselling the items online.
Gennaro Canta (44) pleaded guilty in June 2022 to conspiracy, interstate transportation of stolen goods, and money laundering.
According to court documents, from October 2014 to August 2016, Canta paid drug abusers to steal merchandise from large retail stores in Nevada and California. Canta also hired people to help him to sell the stolen merchandise on eBay and Amazon. In the two-year span, Canta sold about 11,205 items on eBay for a total of $756,081.95, and nearly 2,500 items on Amazon for an approximate total of $327,500.
U.S. Attorney Jason M. Frierson for the District of Nevada and Special Agent in Charge Albert Childress for the IRS-Criminal Investigation made the announcement.
The case was investigated by the IRS-CI and Reno Police Department. Assistant U.S. Attorneys Daniel R. Schiess and Richard Casper prosecuted the case.
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Queens Man Convicted of Money Laundering and Bank FraudRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that a jury returned a guilty verdict against DJONIBEK RAHMANKULOV on counts of money laundering conspiracy, bank fraud, and conspiracy to operate an unlicensed money transmitting business. RAHMANKULOV is scheduled to be sentenced on January 5, 2023, by U.S. District Judge Ronnie Abrams.
U.S. Attorney Damian Williams said: “Djonibek Rahmankulov exploited the United States financial system to launder millions of dollars of proceeds of fraud. He lied repeatedly to banks in furtherance of his illegal money laundering enterprise. Yesterday, a jury found Rahmankulov guilty of his crimes, and he faces the possibility of a lengthy prison sentence.”
According to the superseding indictment and the evidence at trial:
Between 2017 and September 2020, RAHMANKULOV operated a network of shell companies that were used to launder millions of dollars of criminal proceeds from multiple types of criminal activity. RAHMANKULOV worked with computer hackers who fraudulently gained control of the bank accounts of victims located throughout the United States and executed millions of dollars in fraudulent wire transfers into bank accounts opened by RAHMANKULOV and his co-conspirators. RAHMANKULOV received wire transfers into bank accounts he created and bank accounts he instructed others to create and laundered these proceeds through multiple additional bank accounts to prevent the victims and the banks from recovering the stolen funds.
In addition, RAHMANKULOV worked with a network of pharmacies engaged in Medicare and Medicaid fraud. These pharmacies submitted millions of dollars of fraudulent billing for HIV medications that they did not dispense or obtained illegally, including by repurchasing medications from HIV patients who were Medicaid recipients. RAHMANKULOV created companies to receive these criminal proceeds from the pharmacies and laundered them through a variety of means, including by using them to fund an unlicensed money transmitting business that illegally moved money to and from multiple countries, including Iran.
In 2020, when the COVID-19 pandemic began, RAHMANKULOV filed fraudulent applications for COVID relief loans from the Small Business Administration for multiple companies he controlled. He laundered the proceeds of loans and grants through these companies. RAHMANKULOV also made a number of materially false statements to financial institutions in connection with his money laundering schemes, both when opening bank accounts and when executing financial transactions with those bank accounts.
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RAHMANKULOV, 34, of Queens, New York, was convicted on one count of money laundering conspiracy, which carries a maximum prison sentence of 20 years; one count of bank fraud, which carries a maximum prison sentence of 30 years; and one count of conspiracy to operate an unlicensed money transmitting business, which carries a maximum prison sentence of five years.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation’s New York Money Laundering Investigation Squad.
The prosecution is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant U.S. Attorneys Cecilia Vogel, Thane Rehn, and Samuel Raymond are in charge of the prosecution.
Philips Subsidiary to Pay over $24 Million for Alleged False Claims Caused by Respironics for Respiratory-Related Medical EquipmentRead the Press Release
WASHINGTON – Philips RS North America LLC, formerly known as Respironics Inc., a manufacturer of durable medical equipment (DME) based in Pittsburgh, Pennsylvania, has agreed to pay over $24 million to resolve False Claims Act allegations that it misled federal health care programs by paying kickbacks to DME suppliers. The affected programs were Medicare, Medicaid and TRICARE, which is the health care program for active military and their families.
The settlement resolves allegations that Respironics caused DME suppliers to submit claims for ventilators, oxygen concentrators, CPAP and BiPAP machines, and other respiratory-related medical equipment that were false because Respironics provided illegal inducements to the DME suppliers. Respironics allegedly gave the DME suppliers physician prescribing data free of charge that could assist their marketing efforts to physicians.
“Paying illegal remuneration to induce patient referrals undermines the integrity of our nation’s health care system,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “To ensure that the goods and services received by federal health care program patients are determined by their health care needs, rather than the financial interests of third parties, we will pursue any individual or entity that violates the prohibition on paying kickbacks, including DME manufacturers.”
“The people of South Carolina need to know that medical facts — not finances — drive their health care decisions,” said U.S. Attorney Adair F. Boroughs for the District of South Carolina. “Those who improperly use money and other things of value to induce business in violation of the Anti-Kickback Statute will be held accountable.”
“Paying kickbacks to medical equipment providers is misaligned with patient care and corrupts our nation’s health care programs including TRICARE,” said Special Agent in Charge Christopher Dillard for the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Mid-Atlantic Field Office. “Working closely with our law enforcement partners, DCIS will continue to investigate those who risk harming the welfare of our active-duty service members and seek to profit at the expense of the American taxpayer.”
“By paying kickbacks to obtain patient referrals, DME manufacturers are prioritizing financial incentives over patient needs, which undermines the integrity of federal health care programs," said Special Agent in Charge Tamala E. Miles for the Department of Health and Human Services, Office of the Inspector General (HHS-OIG). "HHS-OIG will continue to work tirelessly with our law enforcement partners to prevent such waste of valuable taxpayer dollars."
The Anti-Kickback Statute prohibits the knowing and willful payment of any remuneration to induce the referral of services or items that are paid for by a federal health care program, such as Medicare, Medicaid or TRICARE. Claims submitted to these programs in violation of the Anti-Kickback Statute give rise to liability under the False Claims Act.
The settlement provides that Respironics will pay $22.62 million to the United States, and in addition, will pay $2.13 million to the various states as a result of the impact of Respironics’ conduct on their Medicaid programs, pursuant to the terms of separate settlement agreements that Respironics has, or will enter into, with those states.
In addition to the civil settlement, Respironics entered into a five-year Corporate Integrity Agreement (CIA) with HHS-OIG. The CIA requires Respironics to implement and maintain a robust compliance program that includes, among other things, review of arrangements with referral sources and monitoring of Respironics’ sales force. The CIA also requires Respironics to retain an independent monitor, selected by the OIG, to assess the effectiveness of Respironics’ compliance systems.
The settlement resolves a lawsuit originally brought by Jeremy Orling, a Respironics’ employee, under the qui tam or whistleblower provisions of the False Claims Act. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. As part of this resolution, Orling will receive approximately $4.3 million of the federal settlement amount.
This settlement was the result of a coordinated effort by the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the District of South Carolina with assistance from the HHS-OIG and HHS Office of Investigations; DCIS; the Defense Health Agency Office of General Counsel; and the National Association of Medicaid Fraud Control Units.
The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The matter was handled by Senior Trial Counsel Daniel A. Spiro of the Fraud Section of the Civil Division and Assistant U.S. Attorneys Beth Warren and Johanna Valenzuela of the District of South Carolina.
The lawsuit resolved by this settlement is captioned United States, et al., ex rel. Respiratory Care., LLC v. Respironics, Inc., et al., Case No. 2:19-cv-02913-BHH (D.S.C). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
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Note: View the complaint here.
Orleans Parish Man Charged with Tax CrimeRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that JOEY J. STEVENSON, age 40, from New Orleans, was charged on September 1, 2022 with failing to pay the United States Internal Revenue Service (“IRS”) employment taxes for his business, Community Care Solutions, Inc.
The grand jury returned a one-count indictment that charged STEVENSON with failure to pay over employment taxes, in violation of 26 U.S.C. § 7202. According to the indictment, STEVENSON owned and operated Community Care Solutions, Inc., and from 2015 through 2019, he withheld payroll taxes from his employees’ paychecks but failed to remit that money to the IRS.
U.S. Attorney Evans reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
If convicted, STEVENSON faces up to five years in prison. STEVENSON also faces up to three years of supervised release after release from prison, a fine of up to $250,000 or twice the gross gain to STEVENSON or the gross loss to any victims, and a mandatory $100 special assessment fee per count.
U.S. Attorney Evans praised the work of IRS Criminal Investigations. Assistant United States Attorney Nicholas D. Moses is in charge of the prosecution.
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Oakland Money Service Business Owner and Employees Charged with Laundering Drug ProceedsRead the Press Release
OAKLAND – The Office of the United States Attorney filed federal criminal complaints charging money service business employees Griselda Cancelada Liceaga, Veronica Mora, and Yoselin Perez Ramirez with conspiracy to commit money laundering and identity theft in connection with a scheme to facilitate wire transfers for drug traffickers sending drug proceeds to their sources of supply in Mexico. The owner of the money service business Rincon Musical—Felipe de Jesus Ornelas Mora—was charged with conspiracy to commit money laundering, in a separate complaint, for his participation in the scheme. The announcement was made by U.S. Attorney Stephanie M. Hinds, Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge Mark H. Pearson, and Drug Enforcement Administration (DEA) Acting Special Agent in Charge Bob P. Beris. The defendants were arrested Wednesday, August 31, 2022, and made their initial federal court appearances the following morning before U.S. Magistrate Judge Donna M. Ryu.
According to the criminal complaints, Ornelas, 49, was the owner of Oakland-based money transmitter Rincon Musical where Liceaga, 39; Mora, 26; and Ramirez, 24, worked as cashiers. All the defendants are Oakland residents. Liceaga eventually opened her own money transmitter business—America Latina—in Oakland. When providing money transmitter services, the defendants were acting as local agents of corporate money service businesses that maintain policies and require training to ensure compliance with national anti-money laundering laws and regulations. The anti-money laundering corporate policies as well as federal laws and regulations require money service businesses to avoid allowing their services to be used to support money laundering. The complaint alleges the defendants completed annual trainings and were aware of the applicable laws and policies and, nevertheless, charged unrecorded transaction “fees” to narcotics traffickers for assisting the traffickers with laundering drug proceeds from the United States to Mexico.
The complaints describe several methods allegedly used by the defendants to launder drug proceeds. For example, the defendants allegedly used identification cards and personal information of legitimate customers to complete wire transfers in names other than those of the drug dealers. In addition, the defendants allegedly structured large amounts of cash into smaller wire transfers to avoid arousing suspicion that the wire transfers were drug proceeds. The complaints describe how a former narcotics trafficker working under the supervision of law enforcement agents brought $20,000 in cash to Rincon Musical to have wired to people in Mexico. Two of the defendants split the money into multiple transactions of less than $3,000—amounts small enough to avoid being flagged for suspicious activity. The complaint also alleges that defendants did not ask customers to explain the origin of large amounts of cash they agreed to wire as the defendants had been trained to do and did not record the “extra” transaction fees that they charged for helping process suspicious transactions. All of this, the complaint alleges, defendants did to assist drug traffickers who sent wire transfers without using their true names, showing identification, or having their transactions scrutinized by the corporate money service businesses that provide wire transfer services.
The criminal complaints detail the IRS and DEA investigation that led to the arrest and charging of the defendants. According to the complaints, law enforcement arrested two drug traffickers—one in December 2020 and the other around June 2021—both of whom admitted to sending drug proceeds to their drug suppliers in Mexico at Rincon Musical. The complaints describe the drug traffickers’ statements, cell phone communications, and transaction receipts found on their phones to demonstrate how they allegedly used money transmitter services to pay drug suppliers in Mexico. In addition, the complaints describe multiple covert operations that investigators used to determine how the defendants were allegedly circumventing anti-money laundering rules and allegedly using the personal information of legitimate customers to satisfy identification requirements on large suspicious transactions.
In sum, the criminal complaints charge Ornelas, Liceaga, Mora, and Ramirez with conspiracy to commit money laundering, in violation of 18 U.S.C. § 1956(h). Liceaga, Mora, and Ramirez also are charged with identity theft, in violation of 18 U.S.C. § 1028(a)(7). If convicted, defendants face a maximum statutory term of 20 years in prison and a $500,000 fine (or twice the gain resulting from the crime). However, any sentence after a conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Defendants Ornelas, Liceaga, and Mora are next scheduled to appear on September 6, 2022, before Magistrate Judge Donna M. Ryu for arraignment, identification of counsel, and further status on conditions of release.
Defendant Yoselin Perez Ramirez is scheduled to appear on September 2, 2022, before Magistrate Donna M. Ryu for initial appearance and identification of counsel.
Assistant U.S. Attorney Daniel Pastor is prosecuting this case with assistance from Amanda Martinez and Andy Ding.
This case is the result of an investigation by IRS-Criminal Investigations and the DEA with assistance from the Oakland Police Department. This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States, by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Minneapolis Felon Pleads Guilty to Illegal Possession of a FirearmRead the Press Release
MINNEAPOLIS – A Minneapolis man has pleaded guilty to possession of a firearm as a felon, announced United States Attorney Andrew M. Luger.
According to court documents, on June 23, 2021, William Kenneth Saarela Sr., 42, stole a Canik 9mm pistol. On September 2, 2021, during a domestic dispute with two other individuals, Saarela directed his minor son to bring him the pistol. Saarela fired six shots. No one was injured. On September 21, 2021, law enforcement executed a search warrant at Saarela’s Minneapolis residence and recovered the pistol, which was loaded with 18 rounds. Because Saarela has multiple prior felony convictions he is prohibited under federal law from possessing firearms or ammunition at any time.
Saarela pleaded guilty yesterday before U.S. District Judge John R. Tunheim to one count of possessing a firearm as a felon. A sentencing hearing has not yet been scheduled.
This case was the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Minneapolis Police Department.
Assistant U.S. Attorney Melinda A. Williams is prosecuting the case.
Mexican national caught on Interstate 70 accused of transporting 10 undocumented immigrantsRead the Press Release
ST. LOUIS – A Mexican national stopped on Interstate 70 in St. Peters was transporting 10 undocumented immigrants to Ohio in his minivan, a criminal complaint says.
Francisco Ibarra-Hernandez, 35, was heading east on the highway in a 2011 Toyota Sienna on August 24 when the vehicle was stopped by officers with the St. Peters Police Department.
Police found 11 people inside the minivan. The front-seat passenger, Ibarra-Hernandez, is suspected of being paid to take Illegal immigrants from Phoenix to job sites around the country, the criminal complaint says.
Several of the passengers told police that they did not know where they were being taken.
Ibarra-Hernandez was charged by complaint that same day with transporting illegal aliens and illegal reentry of an alien. Ibarra-Hernandez was removed from the country more than 15 years ago, when he was using another name, the complaint says.
Ibarra-Hernandez was indicted August 31 on one count of illegal reentry of an alien and 10 counts of transporting illegal aliens. He is scheduled to plead not guilty to those charges on Wednesday.
Charges set forth in a criminal complaint or an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The case was investigated by Homeland Security Investigations and the St. Peters Police Department. Assistant U.S. Attorney Matthew Drake is prosecuting the case.