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31 August 2022
Dubuque Man Found Guilty of Possessing a Firearm as a FelonRead the Press Release
A man who possessed a firearm as a felon was convicted by a jury today after a two-day trial in federal court in Cedar Rapids, Iowa.
Daniel Arsenio Rodgers, age 33, from Dubuque, Iowa, was convicted of one count of possession of a firearm by a felon. The verdict was returned this afternoon following about one hour of jury deliberations.
The evidence at trial showed that Rodgers knowingly possessed a Beretta 9mm handgun on June 25, 2021. On that date, Rodgers shot at a residence on West Locust in Dubuque before ditching the car he was driving. Later that day, Rodgers shot at a residence on W. 11th Street as a passenger in a different vehicle. Dubuque police officers were able to track that vehicle using traffic cameras from W. 11th Street to a local restaurant where Rodgers was arrested on an outstanding warrant a short time later. The Beretta used in both shootings was found in the vehicle in which Rodgers traveled to the restaurant.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Rodgers remains in the custody of the United States Marshal pending sentencing. Rodgers faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, and three years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Daniel C. Tvedt and was investigated by the Dubuque Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
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.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR-1013.
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District Man Pleads Guilty to Second-Degree Murder While Armed in 2021 Slaying in Southeast WashingtonRead the Press Release
WASHINGTON – Brian Foster, 40, of Washington, D.C., pleaded guilty today to a charge of second-degree murder while armed for shooting and killing a man in Southeast Washington while the victim sat in his car, announced U.S. Attorney Matthew M. Graves and Robert J. Contee III, Chief of the Metropolitan Police Department (MPD).
Foster pleaded guilty in the Superior Court of the District of Columbia. The plea, which is contingent upon the Court’s approval, calls for an agreed-upon sentence of 14 years in prison. He is to be sentenced on Oct. 28, 2022, by the Honorable Rainey R. Brandt.
According to the government’s evidence, on Aug. 18, 2021, at approximately 12:40 p.m., the victim, Anthony Mitchell, 44, parked his car in the 3700 block of First Street SE. Shortly thereafter, Foster and two friends got into a nearby car and started smoking marijuana and PCP while listening to music. After about eight minutes, Foster got out of the car, walked over to where Mr. Mitchell sat in his car on First Street, pulled out a handgun, and, at around 12:58 p.m., shot Mr. Mitchell twice, through the closed door of Mr. Mitchell’s car. The shots hit Mr. Mitchell in the left side of his face and in his left arm, left lung, and spine, killing him. Foster then walked back to his own car, got in, and drove away, passing Mr. Mitchell’s car on the way.
Foster was arrested on Oct. 26, 2021. He has been in custody ever since.
In announcing the plea, U.S. Attorney Graves and Chief Contee commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the efforts of those who handled the case at the U.S. Attorney’s Office, including Paralegal Specialist Stephanie Siegerist and Victim/Witness Advocate Karina Hernandez. Finally, they commended the work of Assistant U.S. Attorney Peter V. Roman and Deputy Chief Laura Bach of the Homicide Section of the U.S. Attorney’s Office, who investigated and prosecuted the case.
Delaware County Man Sentenced to over 19 Years’ Imprisonment for Methamphetamine TraffickingRead the Press Release
HARRISBURG – The U.S. Attorney’s Office for the Middle District of Pennsylvania announced that Tyrone Smith, age 31, of Chester, Pennsylvania, was sentenced yesterday to 235 months’ imprisonment by United States District Court Judge Christopher C. Conner for his role in distributing at least 1.5 kilograms of methamphetamine in central and southeastern Pennsylvania.
According to United States Attorney Gerard M. Karam, Smith conspired to and did distribute approximately 16 pounds of methamphetamine from June of 2017 until December 19, 2020, in Dauphin, Cumberland, Lancaster, Lebanon, Lancaster, Bucks, Montgomery, Chester, and Philadelphia counties.
The case was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police, as well as many law enforcement agencies in the counties where the distribution activities were occurring. Assistant U.S. Attorneys William A. Behe and Christian Haugsby prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The maximum penalty under federal law for this offense was life imprisonment, a mandatory minimum sentence of 10 years’ imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
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Defendants Sentenced to Prison for Securities Fraud and Identity Theft Related to Nutech Energy Resources INC.Read the Press Release
Acting United States Attorney Nicholas Vassallo announced today that two men were sentenced to prison after being convicted of fraud and identity theft crimes arising from a securities fraud involving NuTech Energy Resources Inc. The sentencing hearing took place on August 22, 2022, before United States District Court Judge Alan B. Johnson. JUSTIN WALLACE HERMAN, age 51, of Canonsburg, Pennsylvania, was sentenced to serve a total of 87 months in prison with three years of supervised release and was further ordered to pay a $700 special assessment and $158,878.86 in restitution. CHARLES “CHUCK” WINTERS, JR., age 61, of Bradenton, Florida, was sentenced to serve a total of 54 months in prison with three years of supervised release and was ordered to pay a $500 special assessment and $158,878.86 in restitution. Herman and Winters were convicted by a jury of conspiracy, securities fraud, and aggravated identity theft on October 8, 2021, following a 3-week trial in the United States District Court for the District of Wyoming.
According to court documents and evidence presented at trial, Herman and Winters conspired to “pump and dump” the common stock of NuTech Energy Resources. A “pump and dump” is a form of securities fraud where the conspirators manipulate demand for a stock and the stock’s price, and then sell their worthless shares of the stock to the public at the artificially high price. In this case, the conspirators bought control of a publicly traded shell company called EcoEmissions Solutions Inc. in January 2015 and changed the company’s name to NuTech Energy Resources. The company’s stock then was sold under the ticker symbol NERG. The conspirators released information online to portray NuTech as a company located in Gillette, Wyoming, that was operating gas wells using a patented technology. In reality, NuTech had no business, no revenue, and no paid employees in Wyoming or elsewhere. Herman and Winters used altered, backdated and forged documents to acquire 13 billion free-trading shares of NuTech common stock. Herman, Winters, and their co-conspirators then artificially inflated the market price of NuTech common stock by manipulative trading and by releasing to the public false and misleading information about NuTech’s stock and business. The false promotional information included a website, press releases, and emails containing misleading information about the company. When the market price increased based on this false information, the conspirators sold their worthless NuTech shares to innocent investors in the public market, including investors in the United States and other countries. This fraud caused over $1.5 million in aggregate losses to investors.
Co-defendant Robert “Bob” Mitchell was charged with Herman and Winters. Mitchell pled guilty to mail fraud and conspiracy to commit securities fraud and was sentenced in October 2021 to 65 months in prison for his role in the NuTech fraud and a related investment fraud. Florida attorney Ian Horn was charged and tried with Herman and Winters. Horn was acquitted of fraud crimes but convicted of perjury for making a material false statement while testifying before the grand jury investigating the NuTech fraud. In January 2022, Horn was sentenced to two years’ probation with six months’ home confinement and fined $5,000.
“The convictions and sentences imposed on the defendants are the result of a six-and-a-half-year investigation and prosecution, involving multiple federal law enforcement agencies, that showed these defendants defrauded investors in Wyoming and around the world,” said Acting United States Attorney Nicholas Vassallo. “Our securities laws are designed to give investors the truthful disclosures they need and deserve to make their individual investment decisions. These sentences send a clear message that defrauding investors and undermining faith in our Nation’s securities markets by manipulating markets and disseminating false information about a stock will be investigated thoroughly and punished severely.”
“The sentences imposed on defendants Herman and Winters serve as a fitting capstone to a lengthy investigation and prosecution of a complex scheme,” said Ruth Mendonça, Inspector in Charge of the Denver Division of the U.S. Postal Inspection Service, which includes Wyoming. “We hope that anyone who considers using the U.S. Mail to further their criminal schemes looks to this case as an example of the effort the U.S. Postal Inspection Service will devote to protecting the U.S. Mail. Together with the Department of Justice and our federal, state, and local law enforcement partners, we will bring cases worthy of lengthy federal prison sentences,” said INC Mendonça.
Ron Gonzales, Special Agent in Charge for the Interior Department Office of Inspector General’s Energy Investigations Unit stated, “The convictions resulting from this joint investigation are an excellent example of multiple federal law enforcement agencies working with the Department of Justice, collaboratively and effectively, to ensure that individuals who victimize private citizens and government programs are held accountable for their illegal conduct."
This case was investigated by the U.S. Postal Inspection Service and the U.S. Department of Interior’s Office of Inspector General. Assistant United States Attorney Eric Heimann and former Assistant United States Attorney Thomas Szott prosecuted the defendants. The Criminal Prosecution Assistance Group of the Financial Industry Regulatory Authority (FINRA) provided invaluable assistance in the investigation and prosecution.
Convicted Felon Indicted for Possessing A Short-Barreled ShotgunRead the Press Release
Ocala, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging Timothy James Roberts (29, Hernando) with possession of an unregistered National Firearms Act (NFA) weapon (short-barreled shotgun) and possession of a firearm by a convicted felon. Roberts faces a maximum penalty of 10 years in federal prison on the possession of an unregistered NFA weapon count and up to 15 years in federal prison possessing a firearm as a convicted felon count.
According to the indictment, on August 7, 2022, Roberts possessed a short-barreled shotgun. This firearm was not registered to him in the National Firearms Registration and Transfer Record. Roberts also has four prior felony grand theft convictions in state court. As a convicted felon, he is prohibited from possessing firearms under federal law.
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 is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by Citrus County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It will be prosecuted by Assistant United States Attorney Sarah Janette Swartzberg.
Colorado Springs Man Pleads Guilty to Providing Deadly Fentanyl to TeenRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces Nathaniel David Corser, age 23, of Colorado Springs, pleaded guilty today to distribution of fentanyl resulting in death.
According to the plea agreement, on July 4, 2021, the defendant met a 19-year-old man at Cottonwood Creek Park in Colorado Springs for a drug deal they had arranged through text messages. At the park, the defendant sold the 19-year-old two blue pills with imprints which said “M” and “30.” Although the pills appeared to be prescription oxycodone pills, they actually contained fentanyl. Over the course of the next day, the victim ingested both pills. Late in the morning on July 5, the victim’s aunt discovered him dead in his bedroom. The El Paso County Coroner’s Office conducted an autopsy on July 6, 2021, and ruled his death was a result of fentanyl intoxication.
The plea agreement also states, after the young man’s death, officers found text messages on his phone which appeared to relate to him buying the pills that killed him. A Colorado Springs Police detective used the victim’s phone to communicate with the defendant, and arranged to buy five pills which he described as “30s.” After the transaction, the Colorado Springs Police Department Metro Crime Lab tested the five blue pills and determined they contained fentanyl. A search of the defendant’s apartment led to the discovery of 1,089 dosage units of 30mg morphine sulfate pills packaged in 13 small zip-top baggies with crosses on them, 108 dosage units of 200 mcg fentanyl buccal tablets in the manufacturer’s packaging, two blue tablets with “M” and “30” imprinted on them which contained fentanyl, one loaded semi-automatic 9mm handgun, and a second loaded 9mm magazine.
Judge Daniel D. Domenico presided over the plea hearing, and will sentence the defendant on December 20, 2022. Corser faces a mandatory minimum of 20 years in prison.
This case was investigated by the Federal Bureau of Investigation and the Colorado Springs Police Department’s Metro, Vice, Narcotics, and Intelligence Division (Metro VNI). Assistant United States Attorneys Peter McNeilly and Alyssa Mance are handling the prosecution.
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.
CASE NUMBER: 21-cr-00331
Co-Owner of Brandon Business Pleads Guilty to Clean Water Act ViolationRead the Press Release
Jackson, Miss. – The co-owner of Gold Coast Commodities, Inc., who serves as vice president of the Brandon-based fat and oil recycling business, pled guilty today for his part in illegally discharging industrial waste into the Jackson Sewer System, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Charles Carfagno with the U.S. Environmental Protection Agency, Criminal Investigation Division’s Southeast Area Branch.
During court today, Robert David Douglas, 60, of Flowood, admitted authorizing payments on behalf of Gold Coast for the transportation and disposal of its industrial waste at a commercial entity in Jackson, which as a result of his negligence, caused the waste to be trucked and discharged to a facility which was not a legal discharge point designated by the Jackson Wastewater Treatment System to receive the waste.
Douglas will be sentenced on November 9, 2022 at 2:30 p.m. A federal judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case was investigated by the Environmental Protection Agency, Criminal Investigation Division, the Federal Bureau of Investigation, Brandon Police Department, and the Mississippi Department of Environmental Quality, with cooperation from the City of Brandon and the City of Jackson municipal governments.
The case is being prosecuted by Assistant United States Attorney Gaines Cleveland.
Cleveland Man Previously Serving Life in Prison Sentenced for Drug Trafficking and Possession of a Firearm as a FelonRead the Press Release
AKRON - Andre Badley, 49, of Cleveland, Ohio, was sentenced on Tuesday, August 30, 2022, by U.S. District Judge John R. Adams to nearly 20 years in prison after he was convicted at trial of being a felon in possession of a firearm and possession with intent to distribute crack cocaine, cocaine, fentanyl and heroin.
Badley was sentenced to the custody of the Bureau of Prisons for a period of 188 months as to Counts 1, 2, 3, and 5 of the indictment and 120 months as to Count 4, both to be served concurrently. In addition, Badley was also sentenced to 51 months in prison for violating his federal supervised release. In total, Badley will serve nearly 20 years in prison.
Badley was previously convicted in 1997 in the United States District Court for the Northern District of Ohio and sentenced to life in prison for distribution of crack cocaine and cocaine. Badley served more than 23 years of that sentence and was released in 2019 under the First Step Act.
According to court documents, on March 5, 2021, law enforcement authorities executed a search warrant at a residence known to be occupied by Badley after receiving information regarding suspected drug trafficking activity. During the search, a K-9 unit alerted authorities to the presence of controlled substances, and investigators found large quantities of crack cocaine, cocaine, fentanyl and two firearms in the residence. Then, on March 25, 2021, Badley was found to be in possession of another large quantity of crack cocaine in his vehicle.
Badley is prohibited from possessing a firearm due to a previous conviction of drug trafficking in the United States District Court for the Northern District of Ohio.
This case was investigated by the Shaker Heights Police Department, with assistance from the DEA and ATF. This case is being prosecuted by Assistant U.S. Attorneys Robert J. Kolansky and Vanessa V. Healy.
Clearwater Felon Sentenced to 10 Years in Federal Prison for Firearms OffensesRead the Press Release
Tampa, Florida – U.S. District Judge Susan C. Bucklew today sentenced Xavier Jones (27, Clearwater) to 10 years in federal prison for two counts of being a felon in possession of a firearm and ammunition. He was also sentenced to 3 years of supervised release. The court ordered Jones to forfeit a 9mm semiautomatic pistol and ammunition used in the offense. Jones had pleaded guilty on April 25, 2022.
According to court documents, Jones was convicted of two cocaine related felony drug crimes in 2017, making him unable to legally possess a firearm or ammunition. However, on December 20, 2020, Jones was captured on surveillance video outside a Clearwater convenience store drawing a pistol and shooting at someone in a car across the street. Jones fled the shooting scene before police arrived but left multiple .40 caliber shell casings behind, which were traced back to him. Ten days later, Jones was arrested in an unrelated case after fleeing from police. During that incident, Jones was found to be in possession of a different loaded pistol, this time, in a backpack next to some marijuana.
Jones was again found in possession of yet another loaded pistol when he was in a car that was stopped by police in March of 2021 for traffic offenses. Jones was a passenger in that car, along with several children. A search of the car found the pistol, which was fully loaded and equipped with a laser sight, under the seat in front of Jones. While Jones denied knowing about that pistol, his DNA was found on the gun.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Clearwater Police Department. It was prosecuted by Assistant United States Attorneys Craig Gestring and Michael Gordon.
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.
Chatsworth Man Pleads Guilty to Stalking Charges for Sending Two Sisters Death Threats and Harassment Campaign Against TeenagerRead the Press Release
LOS ANGELES – A San Fernando Valley man pleaded guilty today to federal criminal charges, including for cyberstalking two sisters by sending them text messages that threatened them with rape and murder.
Alex Scott Roberts, 27, of Chatsworth, pleaded guilty to one count of stalking and, in a separate case brought by the U.S. Attorney’s Office in Macon, Georgia, but transferred to Los Angeles, he also pleaded guilty to one count of cyberstalking.
According to his plea agreement, in July and August of 2020, Roberts used text messages and internet communications to place the two victims “in reasonable fear of death and serious bodily injury,” and that he intended to cause “substantial emotional distress.”
After being told by Victim 1 and her family that the woman did not want to communicate with Roberts, he created a listing on Craigslist that offered a room for rent at Victim 1’s home and invited prospective renters to “Stop by anytime.”
Roberts later sent anonymous text messages to a friend of Victim 1 that demanded Victim 1’s phone number, threatened to publish nude photographs of Victim 1, and threatened to send someone to rape Victim 1.
On August 12, 2020, Roberts sent a threatening message to Victim 1’s sister, which read, in part, “think I’m joking watch u will see. but then again u won’t be alive to see. I have a sniper at the window shall I shoot…respond or I shoot.”
In a separate criminal case first brought in the Middle District of Georgia, Roberts admitted in his plea agreement that in June 2020 he sent a series of threatening and harassing messages to a 15-year-old girl, Minor 1.
In the messages, Roberts claimed to possess nude images of Minor 1 and threatened to send the images to her parents as “payback” if she did not send him additional nude images. In response to Roberts’ threats sent via text message and Instagram, Minor 1 sent Roberts “selfie” photographs of herself.
Roberts responded by continuing to send Minor 1 harassing messages, including several messages containing edited versions of the “selfie” photographs Minor 1 had sent to him in response to his threats.
United States District Judge André Birotte Jr. scheduled a December 16 sentencing hearing, at which time Roberts will face a statutory maximum sentence of five years in federal prison for each count.
The FBI and the Georgia Bureau of Investigation investigated these matters.
Assistant United States Attorney Lauren Restrepo of the Cyber and Intellectual Property Crimes Section is prosecuting these cases in the Central District of California. Assistant United States Attorney C. Shanelle Booker originally prosecuted the criminal case first brought in the Middle District of Georgia and continues to provide substantial assistance.
Career Offender Pleads Guilty to Methamphetamine, Fentanyl and Illicit Pill ConspiracyRead the Press Release
NORFOLK, Va. – A Chesapeake man pleaded guilty today to conspiring to distribute and possess with intent to distribute methamphetamine.
According to court documents, from about January 2019 through April 2021, Barry Justin King, 41, received and distributed approximately four to five kilograms of methamphetamine every month by traveling out of the district to pick up illegal narcotics from sources in New Jersey. In addition to methamphetamine, King also distributed counterfeit pills that bore the appearance of prescription pills but contained fentanyl and other illegal narcotics.
On April 27, 2021, one of King’s sources of supply, who is now a cooperating witness, advised law enforcement that they had a vehicle that contained illegal narcotics intended for King. A search of said vehicle yielded approximately three pounds of methamphetamine, 632 orange pills containing methamphetamine, 794 counterfeit Xanax pills containing etizolam, and 51 white pills containing both fentanyl and acetaminophen. Subsequently, law enforcement conducted controlled purchases of methamphetamine from King on two separate occasions. On April 6, 2022, King was stopped at a traffic stop where a drug detection canine positively alerted to the presence of approximately nine ounces of methamphetamine, approximately 569 Fentanyl pills, and approximately 826 counterfeit Adderall pills laced with methamphetamine. King has twice been convicted before for drug distribution offenses in state court.
King is scheduled to be sentenced on January 11, 2023. He faces a mandatory minimum term of 5 years in prison and a maximum term of 40 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, Jarod Forget, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Division; and Mike Goldsmith, Interim Chief of Norfolk Police, made the announcement after U.S. Magistrate Judge Robert J. Krask accepted the plea.
Assistant U.S. Attorney Kevin M. Comstock and Special Assistant U.S. Attorney Victoria Liu are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:22-cr-72.
California Man Sentenced to Federal Prison for Role in Health Care Kickback ConspiracyRead the Press Release
TEXARKANA, Texas – A Coronado, California, man has been sentenced to federal prison for conspiring to commit health care kickbacks, announced U.S. Attorney Brit Featherston today.
Vincent Marchetti, Jr., 58, was found guilty by a jury on Dec. 16, 2021, following a month-long trial. He was sentenced to 48 months in federal prison by U.S. District Judge Robert W. Schroeder, III, on August 30, 2022.
“Taxpayers deserve to have their tax dollars spent judiciously and within the confines of appropriate laws and rules. The intentional failure to do so breeds a lack of confidence in valuable processes that ensure efficient use of money for the benefit our citizens,” said Brit Featherston, U.S. Attorney. “Kickback arrangements like these add costs, not value. Unfortunately, those costs were borne by American taxpayers. This case sends a message that no matter who you are, if you do wrong, you will be found out, and you will be brought to justice. I congratulate the prosecution team on a job very well done.”
“Individuals who participate in kickback schemes compromise the integrity of medical decision-making while increasing health care costs for everyone,” said Acting Special Agent in Charge Mike Stapleton with the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG will continue to work with our law enforcement partners to investigate such schemes and bring to justice those who steal from these programs for personal gain.”
“The defendant exploited the health care industry by conspiring with others to pay and receive illegal kickbacks in order to enrich himself. The defendant's conduct taints the efforts of hardworking healthcare workers who are dedicated to acting in the best interest of their patients,” said FBI Dallas Special Agent in Charge Matthew DeSarno. “The FBI will continue to work with our public and private sector partners to pursue individuals who exploit patients and insurance holders for their own financial benefit.”
“Health care fraud is estimated to cost the U.S. over $68 billion annually,” said Lester R. Hayes Jr., Special Agent in Charge Homeland Security Investigations Dallas. “Each time a fraudulent claim or medical kickback scheme is discovered, the foundation of our national health care system is in jeopardy. Our special agents will work tirelessly to bring those to justice who attempt to defraud our health care system.”
According to information presented in court, Marchetti conspired with others to pay and receive kickbacks in exchange for the referral of, arranging for, and recommending health care business, specifically pharmacogenetic (PGx) tests. Pharmacogenetic testing, also known as pharmacogenomic testing, is a type of genetic testing that identifies genetic variations that affect how an individual patient metabolizes certain drugs. The illegal arrangement concerned the referral of PGx tests to clinical laboratories in Fountain Valley, California; Irvine, California; and San Diego, California. More than $28 million in illegal kickback payments were exchanged by those involved in the conspiracy.
In December 2019, twelve individuals from three states were charged for their roles in the kickback conspiracy. A federal grand jury in the Eastern District of Texas returned an indictment against Philip Lamb, 47, of Scottsdale, Arizona; Nicolas Arroyo, 40, of Tempe, Arizona; Vincent Marchetti, Jr.; William Flowers, 57, of Houston; Steven Donofrio, 48, of Temecula, California; James J. Walker, Jr. a/k/a Jimmy Walker, 48, of Frisco; Timothy Armstrong, 65, of Frisco; Virginia Blake Herrin, 57, of Frisco; Patrick Ridgeway, 53, of Jackson, Mississippi; Chismere Mallard, 42, of McAllen; Dr. Ray W. Ng, 66, of Dallas; and Ashley Kretzschmar, 37, of Aledo; for conspiring to commit illegal remunerations in violation of the Anti-Kickback Statute.
Philip Lamb, Nicolas Arroyo, Jimmy Walker, Timothy Armstrong, Virginia Blake Herrin, Patrick Ridgeway, Chismere Mallard, and Ashley Kretzschmar have pleaded guilty. Kimberly Willette, 61, of Friendswood, and Edwin Chad Isbell, 48, of Atascocita, also pleaded guilty to related charges.
On April 25, 2022, Nicolas Arroyo was sentenced to 21 months in federal prison. On August 23, 2022, Kimberly Willette was sentenced to one year and one day in federal prison, and Patrick Ridgeway was sentenced to a three-year term of probation and ordered to pay a $100,000 fine.
The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remunerations in exchange for the referral of or arranging for or recommending the ordering of items or services payable under federal health care programs. Under federal statutes, violations of the Anti-Kickback statute are punishable by up to five years in federal prison.
This case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General, the FBI Dallas – Frisco Resident Agency, and the U.S. Department of Homeland Security, Homeland Security Investigations. It was prosecuted by Assistant U.S. Attorneys Nathaniel C. Kummerfeld, Lucas Machicek, and Adrian Garcia, with assistance from Assistant U.S. Attorneys Brent Andrus, Stephan E. Oestreicher, Jr., and L. Frank Coan, Jr., and Special Assistant U.S. Attorney Laurel E.P. Simmons.
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Calais Man Pleads Guilty to Distributing Child Sexual Abuse MaterialRead the Press Release
BANGOR, Maine: A Calais man pleaded guilty in U.S. District Court in Bangor today to distribution of child sexual abuse material, U.S. Attorney Darcie N. McElwee announced.
According to court records, on September 10, 2021, Samuel Staples, 27, began a chat session with the administrator of a social networking group dedicated to sharing child sexual abuse material and sent the administrator a sexually explicit image of a prepubescent female child. Based on this information, a search warrant was executed at Staples’ residence, and during the search, Staples admitted sending the image. Multiple images and videos of child pornography were also found on his cell phone.
Staples faces a minimum of five years and a maximum of 20 years in prison, a $250,000 fine and up to a lifetime of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Homeland Security Investigations, the Maine State Police Computer Crimes Unit, and the Calais Police Department investigated the case.
To report an incident involving the possession, distribution, receipt or production of child pornography: "Child pornography" captures the sexual abuse and exploitation of children. These images document victims’ exploitation and abuse, and they suffer re-victimization each time the images are viewed. File a report with the National Center for Missing & Exploited Children at www.cybertipline.com or 1-800-843-5678. Your report will be forwarded to a law enforcement agency for investigation and action. If you have an emergency that requires an immediate law enforcement response, call 911 or contact your local police or sheriff’s department.
Project Safe Childhood: This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Buffalo Man Going to Prison for Cocaine ConspiracyRead 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 Alexis Lopez, 29, of Buffalo, NY, who was convicted of narcotics conspiracy, was sentenced to serve 24 months in prison by U.S. District Judge Lawrence Vilardo.
Assistant U.S. Attorney David J. Rudroff, who handled the case, stated that on March 1, 2021, the U.S. Postal Inspection Service executed a search warrant on a Priority Mail Express Parcel, which contained approximately ½ a kilogram of cocaine. The drugs inside the parcel were replaced with sham material, and an undercover agent delivered the parcel to an address on Leroy Avenue in Buffalo, where it was accepted by Lopez. After the parcel was taken inside, agents were alerted that the parcel had been opened. Following that alert, a search warrant was executed, and agents discovered Lopez and co-defendant Ivan Irizarry-Ramos together in an apartment, from which they also recovered a digital scale, plastic packaging materials, and an electric blender with white powdery substance inside.
Ivan Irizarry-Ramos was previously convicted of narcotics conspiracy and is awaiting sentencing.
The sentencing is the result of an investigation by the United States Postal Inspection Service, under the direction of Inspector-in-Charge Ketty Larco-Ward of the Boston Division, and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank A. Tarentino III, New York Field Division.
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Billings man sentenced to more than 15 years in prison for trafficking meth in Montana, Idaho and OregonRead the Press Release
BILLINGS — A Billings man who admitted to trafficking methamphetamine in Montana, Idaho and Oregon and was arrested after leading law enforcement on high-speed chase before crashing near Laurel was sentenced today to 15 years and three months in prison, to be followed by five years of supervised release, U.S. Attorney Jesse Laslovich said.
Robert Allen Williams, 58, pleaded guilty in April to possession with intent to distribute meth.
U.S. District Judge Susan P. Watters presided.
“Williams was a regional drug dealer who not only trafficked this poison in Montana communities but also in Idaho and Oregon. Investigating and prosecuting drug traffickers who work across multiple states is a priority for this office, and this significant sentence holds Williams accountable for his conduct,” U.S. Attorney Laslovich said.
In court documents, the government alleged that in April 2021, Billings Drug Enforcement Administration agents received information from DEA agents in Oregon about Williams and co-defendant Yvonne Schlichting, who were suspected of trafficking methamphetamine in Oregon, Idaho and Montana and were traveling in a rental vehicle in Montana. Billings DEA agents, along with the Montana Highway Patrol, located the rental vehicle outside of Laurel. A MHP trooper attempted to stop the vehicle, but Williams, the driver, refused to stop and led troopers on a high-speed chase toward Red Lodge. The vehicle then made a U-turn in the median and headed back to Laurel. The vehicle ran over spike strips deployed by law enforcement and continued into Laurel where it went through a red light and struck another vehicle. Officers executed a search warrant on the vehicle and found $26,976 in cash and approximately 267 grams, which is about a half pound, of pure meth. Schlichting was convicted in the case and is pending sentencing.
Assistant U.S. Attorney Julie R. Patten prosecuted the case, which was investigated by the DEA, Montana Highway Patrol and Laurel Police Department.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Bethel Park Man Indicted in Project Safe Childhood CaseRead the Press Release
PITTSBURGH, PA. - A resident of Bethel Park, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of violating various federal child exploitation laws, United States Attorney Cindy K. Chung announced today.
The three-count Indictment named Seth Hollerich, 28, as the sole defendant.
According to the Indictment, Hollerich is alleged to have distributed material depicting the sexual exploitation of a minor on or about March 18, 2021, and on or about Sept. 30, 2021. On or about Nov. 10, 2021, Hollerich is alleged to have possessed material depicting the sexual exploitation of a minor.
The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense(s) and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Karen Gal-Or is prosecuting this case on behalf of the government.
The Department of Homeland Security conducted the investigation leading to the Indictment in this case. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Arrests Made for Transportation of Fresno County Teen to School in MissouriRead the Press Release
FRESNO, Calif. — A parent and a onetime dean of a boarding school for troubled youth have been arrested for a scheme that took a teen against his will and transported him from California to Missouri, U.S. Attorney Phillip A. Talbert announced.
A federal indictment was unsealed Tuesday charging Shana Gaviola, 35, formerly of Clovis, and Julio Sandoval, 41, of Piedmont, Missouri, with violating a protective order that had been issued at the request of Gaviola’s son in July 2021. Sandoval was formerly the dean of students at a boarding school in Missouri. He was also the founder of an agency that transported minors to the boarding school.
According to court documents, in 2020, Gaviola’s son began living apart from Gaviola with another family. He petitioned for emancipation from Gaviola and obtained a domestic violence protection order against Gaviola from the Fresno County Superior Court. The order prohibited Gaviola from harassing, striking, threatening, assaulting, hitting, following, stalking, molesting, disturbing the peace, keeping under surveillance, and blocking the movements of her son, and contacting him in any way, including directly or indirectly, and from denying his use and possession of his phone.
Despite the protection order, Gaviola and Sandoval made plans for Gaviola’s son to be forcibly transported from California to Missouri. On Aug. 21, 2021, individuals acting on behalf of Gaviola and Sandoval found the minor at a business in Fresno, handcuffed him, and forced him into a car. He remained in handcuffs for over 24 hours while they drove to Stockton, Missouri. He was then held at the boarding school until his father was able to free him.
This case is the product of an investigation by the Federal Bureau of Investigation, the Fresno Police Department, and the Clovis Police Department. Assistant U.S. Attorney Michael G. Tierney is prosecuting the case. Assistance was provided by the U.S. Attorney’s Offices for the Western District of Missouri and the Eastern District of Missouri.
If convicted, each defendant faces a maximum statutory penalty of five years in prison and a $250,000 fine. Any sentence, however, would 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. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Another California Man Pleads Guilty in Meth Trafficking CaseRead the Press Release
PITTSBURGH, PA – A former resident of Stockton, California, 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.
Jose Villalobos, age 41, pleaded guilty to one count of conspiracy to distribute and possesses with intent to distribute 50 grams or more of a mixture and substance containing a detectable amount of methamphetamine before United States District Judge Christy Criswell Wiegand. Villalobos 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 Villalobos transported between five and fifteen kilograms of methamphetamine between methamphetamine suppliers in California that was then sent to methamphetamine distributors based in the Western District of Pennsylvania.
Judge Wiegand scheduled sentencing for Villalobos on Jan. 11, 2023, at 1:00 p.m. The law provides for a sentence of not less than five years to a maximum of forty years in prison, a fine not to exceed $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The court ordered that the defendant remain on bond 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.
13 Novus Healthcare Fraud Defendants Sentenced to Combined 84 Years in PrisonRead the Press Release
Thirteen defendants involved in the $27 million Novus healthcare fraud have been sentenced to a combined 84 years in federal prison, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
According to plea papers and evidence presented to a jury, Novus Health Services, a Dallas-based hospice agency, defrauded Medicare by submitting materially false claims for hospice services, providing kickbacks for referrals, and violating HIPAA to recruit beneficiaries. Novus employees also dispensed Schedule II controlled substances to patients without the guidance of medical professionals and moved patients to a new hospice company in order to avoid a Medicare suspension.
CEO Bradley J. Harris eventually admitted to the fraud and testified against two physicians who elected to proceed to trial.
He told the jury that instead of relying on the expertise of licensed medical professionals, he and Novus’ nurses determined which medications and dosages patients would receive, dispensing drugs like morphine and hydrocodone using pre-signed prescription pads. Novus medical directors, including Dr. Mark Gibbs and Dr. Laila Hirjee, were supposed to oversee the care of these patients and examine patients face-to-face to certify that they were terminally ill. Often, however, the medical directors signed off on patient care plans without properly reviewing patients files and falsely certified they had completed in-person examinations when they had not.
As Director of Operations Melanie Murphey testified at trial, “I was the doctor.”
Mr. Harris and the nurses also determined which patients would be admitted to or discharged from hospice care without any physician involvement. Mr. Harris also admitted to paying Novus physicians kickbacks – disguised as medical director salaries – to induce them to refer patients to Novus facilities.
When Mr. Harris realized he could avoid exceeding Medicare’s aggregate hospice cap by enrolling an influx of first-time hospice patients, he negotiated an agreement with a company called Express Medical that allowed him to access potential patients confidential medical information in return for using Express Medical for laboratory tests and home health visits. Novus staff attempted to recruit Express Medical patients for Novus services, regardless of their eligibility.
Those convicted in the scheme include:
- Sam Anderson, Novus VP of Marketing, pleaded guilty to one count of conspiracy to commit healthcare fraud and was sentenced to 33 months in federal prison
- Patricia Armstrong, Novus triage nurse, pleaded guilty to one count of conspiracy to commit healthcare fraud and was sentenced to 84 months in federal prison
- Slade Brown, Novus Director of Marketing, pleaded guilty to one count of conspiracy to commit healthcare fraud and was sentenced to 48 months in federal prison
- Dr. Mark Gibbs, Novus Medical Director, was convicted at trial of one count of conspiracy to commit healthcare fraud, two counts of healthcare fraud, and one count conspiracy to obstruct justice and was sentenced to 156 months in federal prison
- Amy Harris, Novus VP of Patient Services and wife of Bradley Harris, pleaded guilty to one count of conspiracy to obstruct justice and was sentenced to 38 months in federal prison
- Bradley Harris, Novus CEO, pleaded guilty to one count of conspiracy to commit healthcare fraud and one count of healthcare fraud and aiding and abetting and was sentenced to 159 months in federal prison
- Dr. Laila Hirjee, Novus Medical Director, was convicted at trial of one count of conspiracy to commit healthcare fraud, three counts of healthcare fraud and one count of unlawful distribution of a controlled substance and was sentenced to 120 months in federal prison
- Dr. Charles Leach, Novus Medical Director, pleaded guilty to one count of conspiracy to commit healthcare fraud and was sentenced to 57 months in federal prison
- Tammie Little, Novus Registered Nurse, was convicted at trial of one count of conspiracy to commit healthcare fraud and three counts of healthcare fraud and aiding and abetting and was sentenced to 33 months in federal prison
- Jessica Love, Novus Registered Nurse, pleaded guilty to one count of conspiracy to commit healthcare fraud and was sentenced to 102 months in federal prison
- Melanie Murphey, Novus Director of Operations, pleaded guilty to one count of conspiracy to commit healthcare fraud and was sentenced to 66 months in federal prison
- Ali Rizvi, Express Medical owner, pleaded guilty to one count of wrongful use of individually identifiable heath information and was sentenced to 18 months in federal prison
- Taryn Stuart, Novus Licensed Vocational Nurse, pleaded guilty to one count of conspiracy to commit healthcare fraud and was sentenced to 96 months in federal prison
The Federal Bureau of Investigation’s Dallas Field Office, the U.S. Department of Health & Human Services Office of Inspector General (HHS-OIG), and the Texas Attorney General’s Medicaid Fraud Control Unit conducted the investigation. Assistant U.S. Attorneys Marty Basu and Donna Strittmatter Max prosecuted the case along with U.S. Attorney Chad Meacham.
30 August 2022
‘Modern-day Bonnie and Clyde’ admit to fraud charges related to pilfered mail, stolen fundsRead the Press Release
STATESBORO, GA: A South Carolina man who referred to himself and his girlfriend as the “modern-day Bonnie and Clyde” has admitted using information gleaned from stolen mail to steal or attempt to steal more than a million dollars from multiple victims.
Michael H. Boatwright, 33, of Chesterfield, S.C., awaits sentencing after pleading guilty to Conspiracy to Commit Mail, Wire, and Bank Fraud, said David H. Estes, U.S. Attorney for the Southern District of Georgia. Stephanie Michelle Lea Napier, 29, also of Chesterfield, awaits sentencing after previously pleading guilty to Conspiracy to Commit Wire Fraud.
“These thefts weren’t just a matter of swiping letters from private citizens’ rural mailboxes; Boatwright and Napier took their crimes several steps further by using that mail to steal sensitive information and individuals’ identities,” said U.S. Attorney Estes. “They will now be held accountable for invading the privacy and financial security of innocent victims.”
As described in court documents and proceedings, Boatwright and Napier called themselves the “Modern Day Bonnie and Clyde” when, in a period from about November 2020 to June 2021, they drove around Georgia, South Carolina, and Florida to steal mail from mailboxes, capturing personal identifying information from the stolen mail, and then using that information to gain access and control of their victims’ bank accounts.
Using that information, the two stole, or attempted to steal, hundreds of thousands of dollars from victims, including those residing in the Statesboro area, with actual and attempted financial losses of nearly $1.5 million.
“The United States Postal Inspection Service mission is to defend the mail system from criminal misuse,” said Juan A. Vargas, Acting Inspector in Charge of the Miami Division. “Postal Inspectors and our law enforcement partners will continue to be vigilant investigating and pursuing mail thieves.”
“Even the most cunning criminals can’t elude the team effort of the federal, state and local law enforcement agencies tasked with pursuing them,” said U.S. Secret Service Resident Agent in Charge Craig Reno. “This case should serve as a deterrent to fraudsters that you can’t escape the long arm of the law.”
The case is being investigated by the Jacksonville, Fla. and Savannah, Ga. offices of the U.S. Postal Inspection Service and the U.S. Secret Service, with assistance from the Jacksonville Sheriff’s Office, the Bulloch County Sheriff’s Office, and the Statesboro Police Department, and prosecuted for the United States by Assistant U.S. Attorney Jonathan A. Porter.
Williston Man Sentenced to 27 Years in Federal Prison for Sexual Exploitation of a Minor and Production of Child PornographyRead the Press Release
COLUMBIA, SOUTH CAROLINA —Justin Allen Chavis, 27, of Williston, was sentenced to 27 years in federal prison after pleading guilty to sexual exploitation of a minor and the production of child pornography, to be followed by 20 years of supervision and registration as a sex offender.
Evidence presented in court showed that Chavis engaged in sexual acts with two minor children, and that he produced photographs and videos of the abuse, which Chavis then distributed through the internet.
Evidence further indicated that on April 2, 2020, Chavis communicated over the internet with a person he was told was another adult interested in abusing children, but in fact he was communicating with an undercover FBI agent. The pair discussed past and future abuse of multiple children, and Chavis described himself as “active” with numerous children under the age of seven, describing specific sex acts he had coerced his victims to engage in. Chavis then began sharing photographs and videos of what appeared to be Chavis sexually abusing children he had access to.
Within one day, the Federal Bureau of Investigation (FBI) determined Chavis’s identity and obtained an arrest warrant and a federal search warrant for his residence. FBI executed the arrest and search with assistance from the Barnwell County Sheriff’s Office and the South Carolina Department of Social Services (DSS). Chavis has remained in custody since that day. FBI recovered photographs and videos of the abuse from Chavis’s phone, and Chavis made admissions regarding his conduct. Chavis ultimately pled guilty to the sexual exploitation of a minor and the production of child pornography.
United States District Judge Mary Geiger Lewis sentenced Chavis to 324 months in federal prison, to be followed by 20 years of court-ordered supervision, restitution to be paid to two victims, and Chavis will have to register as a sex offender after release. There is no parole in the federal system.
This case was brought 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, please visit www.projectsafechildhood.gov.
The case was investigated by the FBI with critical assistance from the Barnwell County Sheriff’s Office and DSS. Assistant United States Attorney Elliott B. Daniels prosecuted the case.
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Vision Quest Industries to Pay $2,250,000 to Resolve False Claims Act AllegationsRead the Press Release
MINNEAPOLIS – Vision Quest Industries, Incorporated (“VQ”) has agreed to pay the United States $2,250,000 to resolve False Claims Act allegations that VQ caused Osteo Relief Institutes (“ORIs”) to bill Medicare for knee braces that were tainted by illegal kickbacks, the Department of Justice announced today. VQ also entered into a five-year Corporate Integrity Agreement.
VQ is a manufacturer of durable medical equipment, including knee braces and other products intended to treat conditions such as osteoarthritis. VQ utilizes independent sales representatives to sell these products, which are routinely billed to Medicare.
The settlement resolves allegations that between 2011 and 2018, VQ paid Mathias Berry, an independent sales representative of VQ, and Berry’s company, Results Laboratories, LLC, kickbacks in the form of commission payments that ranged from 20–35 percent of VQ’s net revenue on each knee brace ordered by the ORI Clinics. Operating under the direction of Berry and his companies, the ORI Clinics submitted claims for millions of dollars in Medicare reimbursements. VQ profited substantially from the arrangement. By paying Berry and his company kickbacks in the form of sales commissions, VQ was able to establish itself as the exclusive brace supplier for 10-12 ORIs annually between 2011 and 2018. VQ understood that Berry was in a position to tell the ORIs which braces to order. This arrangement locked in millions of dollars in annual brace sales for VQ.
“Anyone working with Medicare must understand that the payment of kickbacks is strictly forbidden,” said U.S. Attorney Andrew M. Luger. “We will remain vigilant in addressing payment arrangements that undermine the core principles of Medicare and other government programs.”
“The payment of kickbacks to induce referrals for medical equipment can undermine the trust in our nation’s providers and result in costly reductions to our federal health care programs," said Special Agent in Charge Mario M. Pinto of the U.S. Department of Health and Human Services Office of Inspector General. “We will continue to work together with our law enforcement partners to ensure the appropriate use of taxpayer dollars. The OIG’s five-year compliance agreement is designed to ensure the alleged behavior will not be repeated.”
The allegations resolved by today’s settlement stem from a proactive government investigation based on a critical analysis of Medicare claims data. This effort also led to other previously announced settlements with Berry, Results, several former Osteo Relief Institutes and others for their alleged roles in this scheme.
The government’s settlement in this matter illustrates its 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 investigated by the U.S. Attorney’s Office for the District of Minnesota, the Civil Division’s Commercial Litigation Branch, the Department of Health and Human Services Office of Inspector General, and the Federal Bureau of Investigation. The claims asserted against defendants are allegations only, and there has been no determination of liability.
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Violent Crime Spree Leads to 30-Year Federal Prison SentenceRead the Press Release
Miami, Florida – A 29-year-old Sunrise man has been sentenced to 30 years in prison for one count of carjacking, one count of kidnapping, two counts of bank robbery, one count of attempted bank robbery, and two counts of brandishing a firearm during a crime of violence.
The evidence revealed that, in January 2021, Tevin Shane Souffranc terrorized Broward and Collier Counties through a violent crime spree. On one occasion, he attacked a young woman as she was returning to her vehicle. Souffranc pushed her into the car and hit her in the face with the butt of a firearm, chipping two of her teeth. On another occasion, Souffranc and an accomplice attacked a young woman as she walked to her car, threatening to kill her. Souffranc also robbed and attempted to rob multiple banks in South Florida and Naples.
Juan Antonio Gonzalez, United States Attorney for the Southern District of Florida, and Robert Dewitt, Acting Special Agent in Charge, FBI Miami, announced the sentence imposed by United States District Judge Roy K. Altman.
FBI Miami investigated the case. Broward Sheriff’s Office, Fort Lauderdale Police Department, Hollywood Police Department, Collier County Police Department, Boca Raton Police Department, and Sunrise Police Department assisted. Assistant United States Attorney Ajay J. Alexander is prosecuting this case. Assistant United States Attorney Annika Miranda is handling asset forfeiture.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case numbers 21-cr-60069 and 22-cr-60064.
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Versailles Sex Offender Sentenced to 15 Years for Child PornographyRead the Press Release
JEFFERSON CITY, Mo. – A Versailles man who is a registered sex offender was sentenced in federal court today for possessing child pornography.
Mylon Duane Addis, 52, was sentenced by U.S. District Judge Brian C. Wimes to 15 years in federal prison without parole. Addis has prior state felony convictions for child molestation, which involved multiple occasions of sexual abuse of a 10-year-old victim, and a prior federal felony conviction for possessing child pornography.
On Dec. 9, 2021, Addis pleaded guilty to one count of receiving child pornography. The investigation began on July 8, 2019, when the Lake Area Cyber Crimes Task Force received a tip from the National Center for Missing and Exploited Children that Addis had uploaded a video that contained child pornography. Deputies with the Morgan County Sheriff’s Department executed a search warrant at Addis’s residence on July 16, 2019, and seized his cell phone, a laptop computer, an external hard drive, an LG tablet, and three flash drives. The laptop, tablet, hard drive, and a flash drive contained images of child pornography.
This case was prosecuted by Assistant U.S. Attorney Ashley S. Turner. It was investigated by the Boone County, Mo., Sheriff’s Department and the Lake Area Cyber Crimes Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by 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. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
U.S. Attorney's Office Announces $900,000 in Federal Grants Allocated to Charlotte-Based Service Provider and Advocacy Organization for Victims of Domestic Violence and Sexual AssaultRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Dena J. King announced today that $946,892 in federal grants has been allocated to Safe Alliance in Charlotte by the Justice Department’s Office on Violence Against Women (OVW), to expand access to legal services and improve the coordination of justice systems for victims of violence and sexual assault and their families.
OVW awarded more than $35 million to grantees under the Legal Assistance for Victims Program (LAV), which focuses on the legal needs of survivors of sexual assault, domestic violence, dating violence, and stalking. Charlotte-based Safe Alliance, an organization that provides services and advocacy to victims of domestic violence and sexual assault, was awarded $596,892 as part of the LAV grant program, to enhance its comprehensive direct legal services in matters relating to or arising out of that abuse or violence. In addition, earlier this month, OVW’s Justice for Families Program awarded over $14 million to projects that aim to improve the response of the civil and criminal justice systems to families with a history of domestic violence. Safe Alliance was awarded a $350,000 grant under this program, which also supports supervised visitation and the safe exchange of children.
“The deployment of federal resources through grants is critical in our mission to support community organizations that combat gender-based violence and assist victims, survivors, and their families as they recover and rebuild their lives. From increasing access to legal services to improving the response of the civil and the criminal justice systems, federal funding ensures continuity of services and expansion into areas that address the integral needs and unique challenges faced by victims and survivors of domestic violence and sexual assault,” said U.S. Attorney King.
Karen Parker, President and CEO of Safe Alliance, said, “Safe Alliance is deeply grateful for our partnership with OVW and the U.S. Attorney’s Office to help survivors of domestic violence build safer lives for themselves and their children. Legal services and support for children are two of the most requested services as survivors work to extricate themselves from a violent relationship. These tools will help victims address immediate safety needs as well as ensure longer term interventions to break the cycle of violence.”
“Legal services and systems, including family courts, have a tremendous impact on survivors’ and their families’ livelihood, wellbeing, and freedom,” said OVW Acting Director Allison Randall. “Meaningful representation for survivors is vital but can be difficult to attain in the aftermath of violence, or when someone is still trying to find safety. Grantees under OVW’s Legal Assistance for Victims and Justice for Families Programs help survivors navigate complicated processes and potentially dangerous points along the way, including supervised visitation, protection orders, and divorce.”
OVW provides leadership in developing the nation’s capacity to reduce violence through the implementation of the Violence Against Women Act and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities across the country that are developing programs, policies, and practices aimed at ending domestic violence, dating violence, sexual assault, and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw.
U.S. Attorney Tucker Issues Savanna’s Act Guidelines for AlaskaRead the Press Release
ANCHORAGE – Today the U.S. Attorney’s Office for the District of Alaska announced the completion of the Savanna’s Act Guidelines for Alaska following hundreds of hours of consultation with Alaska Tribes and tribal agencies, federal, state, local and tribal law enforcement and victim service providers.
“Generations of Alaska Natives have experienced violence or mourned a murdered or missing loved one for far too long,” said U.S. Attorney S. Lane Tucker of the District of Alaska. “A top priority for my office and the Department of Justice is to address the disproportionately high rates of violence experienced by Alaska Natives and American Indians and, relatedly, the high rates of Indigenous persons reported missing. In Alaska we are fortunate to have strong working relationships across law enforcement, and these guidelines will help us to further strengthen our partnerships and push ourselves to constantly improve our response to bring answers and justice for the victims and families.”
Savanna’s Act, co-sponsored by Alaska’s Senior Senator Lisa Murkowski, aims to improve the government’s response to the crisis of missing and murdered Indigenous persons through increased coordination and the development of best practices. Specifically, it directs the U.S. Department of Justice to develop guidelines to continually improve communication and coordination among tribal, federal, state and local law enforcement agencies in response to MMIP situations. It also provides guidance on the collection, reporting and analysis of MMIP data; offers resource information for Tribal governments; and provides best practices for culturally appropriate victim services and for returning a loved one home. These guidelines are evergreen with ongoing opportunities for input and recommendations.
“The U.S. Marshals will continue to partner with our federal, state, local and tribal partners to strengthen our response to missing and murdered Indigenous people. The shared commitment of each agency’s resources and expertise will increase our ability to make our communities safer,” said Rob Heun, U.S. Marshal for the District of Alaska.
If you know someone who is missing, it’s critical that you report it right away to 9-1-1 or your closest law enforcement. The first hours of someone missing can be vitally important. If you have questions about the U.S. Attorney’s Office MMIP program, please contact MMIP Program Coordinator, Ingrid Cumberlidge at [email protected] or [email protected] or call 907-271-3314.
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Note for Editors:
- Department of Justice Savanna’s Act page: https://www.justice.gov/tribal/mmip/SavannasAct
- Link to Savanna’s Act law: https://www.congress.gov/bill/116th-congress/senate-bill/227/text
- Department of Justice MMIP page: https://www.justice.gov/tribal/mmip
- Not Invisible Act page and Commission members: https://www.doi.gov/priorities/strengthening-indian-country/not-invisible-act-commission
In March President Biden signed into law the Violence Against Women Act (VAWA) Reauthorization Act of 2022 as part of a $1.5 trillion omnibus spending package. The Office of VAWA will continue to work with Tribes to address challenges in protecting survivors and responding to offenders in their communities and encourage Tribal leaders and designees to attend the 17th Annual Government-to-Government Violence Against Women Tribal Consultation in Anchorage in September.
The Alaska MMIP Working Group is a multi-disciplinary team led by the United States Attorney’s Office MMIP Coordinator, Ingrid Cumberlidge, and comprised of tribal representatives, federal, state, local and tribal law enforcement, and social and victim service providers, including:
- BIA Missing and Murdered Unit
- BIA Health and Human Services
- FBI
- U.S. Marshals
- U.S. Coast Guard
- Alaska Department of Law
- Alaska State Troopers, MMIP Investigator, Missing Persons & Cold Case Clearinghouse and VPSOs
- Anchorage Police Department
- Fairbanks Police Department
- Kotzebue Police Department
- Nome Police Department
- North Slope Police Department
- Tanana Chief’s Conference VPSO supervisors
- Central Council of Tlingit and Haida Indian Tribes of Alaska VPSO supervisors
- Tanana Chief’s Conference
- Tribal representatives from Ahtna Region, Orutsararmiut Native Council, Sun’aq Tribe of Kodiak, Arctic Slope Native Association, Central Council of Tlingit and Haida Indian Tribes of Alaska, Native Village of Kotzebue, Maniilaq Association, Native Village of White Mountain Village
- Victim Service Providers
- Advocates from Victims for Justice
- Alaska Native Women’s Resource Center
- MMIP Tribal Community Response Plan Pilot Sites: Curyung Tribal Council of Dillingham, the Native Village of Unalakleet, and Koyukuk Native Village
Two Stanly County Men Sentenced for Possession and Transportation of Stolen VehiclesRead the Press Release
GREENSBORO – Two North Carolina men were sentenced on June 23, 2022, and August 30, 2022, related to the theft of construction vehicles from a community center in Pageland, South Carolina, after an investigation into the missing equipment led investigators to a residence in Stanly County, where the vehicles were ultimately recovered.
According to court documents, Danny Joe Almond, 45, and Douglas Wayne Mauldin, 52, were charged with the transportation of the stolen vehicles across state lines and the possession of those stolen vehicles, which included a stolen dump truck, a low-boy trailer, a skid steer, a paver, and a roller. A paving company left the vehicles in the parking lot of the Pageland Community Center overnight, and the community center’s surveillance cameras captured footage of a person entering the dump truck and driving it away, while towing the trailer loaded with additional construction vehicles. A dark sedan was also observed on the footage following the dump truck out of the parking lot. The skid steer had a GPS tracking device, which allowed investigators to track it to the residence of Douglas Wayne Mauldin in Norwood, North Carolina, where all the vehicles were recovered.
Investigators later used cell phone data, the vehicle tracker, surveillance footage, and eyewitness reports to create a timeline of the events leading up to and following the theft of the construction vehicles. As a result, Almond and Mauldin were charged with one count of unlawfully transporting stolen motor vehicles, one count of unlawfully transporting stolen goods in excess of $5,000, one count of knowingly possessing stolen motor vehicles, and one count of knowingly possessing, concealing, and storing stolen goods.
Danny Joe Almond was sentenced on July 14, 2022, to 24 months imprisonment and three years of supervised release. Douglas Wayne Mauldin was sentenced on August 30, 2022, to 14 months imprisonment and 3 years of supervised release.
“We are extremely grateful for our partners at the Federal Bureau of Investigation and those in the Norwood and Pageland Police Departments, as well as the NC DMV, for their extensive work in tracking these thefts across state lines,” said United States Attorney Sandra Hairston. “This case shows that interstate theft is not to be taken lightly, and that the partnerships between local, state, and federal law enforcement are thriving.”
U.S. Attorney Hairston made the announcement, and the case was prosecuted by Assistant United States Attorney Craig Principe. The Federal Bureau of Investigation, Norwood Police Department, Pageland (South Carolina) Police Department, and the N.C. Division of Motor Vehicles License and Theft Bureau assisted with the investigation.
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Telfair County woman sentenced to federal prison for scheme to fraudulently obtain COVID-19 relief fundingRead the Press Release
SAVANNAH, GA: A Telfair County woman has been sentenced to federal prison after admitting she participated in a scheme to fraudulently obtain millions of dollars in COVID-19 relief funds.
Shakeena Hamilton, 34, of McRae, Ga., was sentenced to 60 months in prison after she previously pled guilty to Conspiracy to Commit an Offense Against the U.S. Government, said David H. Estes, U.S. Attorney for the Southern District of Georgia. Hamilton admitted helping others to fraudulently apply for Paycheck Protection Plan (PPP) relief under the Coronavirus Aid, Relief and Economic Security (CARES) Act, and to receiving kickbacks from the co-conspirators in return for her assistance. U.S. District Court Judge Dudley H. Bowen ordered Hamilton to pay $2,511,489.07 in restitution, and to serve three years of supervised release after completion of her prison term.
There is no parole in the federal system.
“Shakeena Hamilton not only perpetrated fraud and stole from the taxpayers of the United States, but assisted others in defrauding a program set up to assist small businesses struggling during the global pandemic,” said U.S. Attorney Estes. “In collaboration with our law enforcement partners, we continue identifying and holding accountable those who are intent on exploiting these programs for their own profit.”
Since passage of the CARES Act in March 2020, and its subsequent funding of more than $6.5 billion, the Southern District of Georgia U.S. Attorney’s Office has federally charged nearly 40 defendants for fraudulently obtaining PPP funding or Economic Injury Disaster Loans through Small Business Administration.
“Using SBA programs fraudulently undermines the spirit and true intent of bolstering the backbone of the nation’s economy – small businesses,” said SBA OIG’s Eastern Region Special Agent in Charge Amaleka McCall-Brathwaite. “OIG is focused on rooting out bad actors in these vital SBA programs. I want to thank the Department of Justice and our law enforcement partners for their dedication and commitment to seeing justice served.”
The case was investigated by the Small Business Administration Office of Inspector General, and prosecuted for the United States by the U.S. Attorney’s Office for the Southern District of Georgia.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Tampa Man Pleads Guilty to Fentanyl and Cocaine Distribution ConspiracyRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that Demetrius Haynes (36, Tampa) has pleaded guilty to one count of conspiracy to distribute fentanyl and six counts of distribution of a controlled substance. Haynes faces a maximum penalty of 20 years in federal prison on each count. A sentencing date has not yet been set.
According to the plea agreement, in 2021, Haynes conspired with others to distribute cocaine and fentanyl around the Tampa Bay area. During the investigation by state and federal agents, Haynes also engaged in six undercover sales of cocaine and fentanyl to law enforcement.
On February 12, 2021, Haynes was arrested by ATF agents following an undercover purchase of fentanyl and cocaine. Haynes arrived at all six narcotics transactions in the same vehicle, a Nissan Maxima. The car was searched after his arrest and was found to contain drug paraphernalia. The Nissan, which was used to facilitate the drug deals, was seized by law enforcement.
After his arrest, ATF agents, along with officers from the Tampa Police Department, executed a search warrant at a residence where Haynes had been staying. During the search, agents located a container with a chunky white substance that field tested positive for cocaine, a safe that contained approximately $34,000, a Jimenez Arms .380 caliber pistol, currency totaling approximately $6,850, approximately 30 rounds of ammunition, and an extended magazine.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Tampa Police Department. It is being prosecuted by Assistant United States Attorney Craig Gestring.
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.
Springdale Man Sentenced to 13 Years in Federal Prison for Drug TraffickingRead the Press Release
FAYETTEVILLE – A Springdale man was sentenced today to 156 months in prison followed by three years of supervised release on one count of Possession with Intent to Distribute Methamphetamine. The Honorable Judge Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court documents, on October 19, 2021, detectives with the Fourth Judicial District Drug Task Force (DTF) received information that Ronnie Wayne Cain, age 51, was in possession of a large quantity of methamphetamine and that Cain had a search waiver on file.
Later that day, detectives conducted surveillance at Cains residence. As the garage door opened, detectives observed Cain standing in the garage. Detectives made contact with Cain in the garage and identified themselves as law enforcement.
A parole search of the residence resulted in detectives locating approximately 200 grams of methamphetamine, a set of digital scales, three additional containers of methamphetamine, packaging materials and utensils, a drug ledger, two loaded firearms and $2,410.00 in U.S. currency. Cain, a multi-convicted felon, was out on bond for a similar arrest at the time of the offense.
U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.
The Fourth Judicial District Drug Task Force investigated the case.
Assistant U.S. Attorney David Harris prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Southall Drug Dealer Sentenced to More than Ten Years in PrisonRead the Press Release
MOBILE, AL – A Mobile man was sentenced in federal court on August 26, 2022, for his participation in the Darrin Southall drug distribution organization. Jamarcus Devonta Chambers, 28, was sentenced to 131 months for his role as a drug distributor for Southall in Mobile.
According to court documents, law enforcement officers obtained court authorization to monitor Southall’s phone. Numerous calls between Southall and Chambers were monitored and recorded as the conspirators planned several aspects of the drug distribution operation, including the handling of kilograms of cocaine and heroin, and also the collection and transportation of drug money. As the investigation progressed, additional evidence was gathered implicating Southall, Chambers, and numerous others. Chambers pled guilty to conspiracy to possess with intent to distribute controlled substances in May of 2021. Chambers was accountable for the distribution of 137 kilograms of cocaine and 1.084 kilograms of heroin.
United States District Court Judge Kristi K. Dubose imposed the 131-month sentence in Daniels’s case, to be followed by five years on supervised release after his release from custody. As conditions of supervision, Chambers will undergo testing and treatment for drug and alcohol abuse, and he will be subject to a search of his person and premises upon reasonable suspicion. No fine was imposed but the judge ordered that the defendant pay $100 in special assessments.The case was investigated by the Mobile Police Department, the Mobile County Sheriff’s Office, the Department of Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Baldwin County Sheriff’s Office, the Alabama Law Enforcement Agency, the Saraland Police Department, the St. Tammany Parish, Louisiana, Sheriff’s Office, and the Drug Enforcement Administration. Assistant U.S. Attorney Gloria Bedwell prosecuted the case on behalf of the United States.
Southall Drug Courier Sentenced in Federal CourtRead the Press Release
MOBILE, AL – A Pensacola, Florida, man was sentenced in federal court on August 27, 2022, for his participation in the Darrin Southall drug distribution organization. Kenneth Jerome Daniels, 49, was initially arrested in November of 2020 when law enforcement officers became aware that he was transporting cocaine obtained from Southall’s organization in Prichard to another conspirator, Derric Kitt, in Pensacola. Daniels was stopped in Baldwin County as he drove two kilograms of cocaine from Prichard east on Interstate 10 toward Pensacola. The drugs were seized, and Daniels was arrested on state charges.
According to court documents, law enforcement officers were monitoring Southall’s phone pursuant to a court order. Calls between Southall, Kitt, and Daniels were monitored and recorded as the conspirators planned for the cocaine delivery. Daniels was released from the state charges on bond, and Kitt and Southall planned to meet with an attorney in Mobile to represent Daniels on that state case. As the investigation progressed, additional evidence was gathered implicating all three conspirators and numerous others. Daniels was accountable for the distribution of 2 kilograms of cocaine and 6 kilograms of heroin.
United States District Court Judge Kristi K. Dubose imposed a sentence of five years in Daniels’s case, to be followed by five years on supervised release after his release from custody. As conditions of supervision, Daniels will undergo testing and treatment for drug and alcohol abuse, and he will be subject to a search of his person and premises upon reasonable suspicion. No fine was imposed but the judge ordered that the defendant pay $100 in special assessments. The judge ordered the forfeiture of a long list of property seized during the investigation.
The case was investigated by the Mobile Police Department, the Mobile County Sheriff’s Office, the Department of Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Baldwin County Sheriff’s Office, the Alabama Law Enforcement Agency, the Saraland Police Department, the St. Tammany Parish, Louisiana, Sheriff’s Office, and the Drug Enforcement Administration. Assistant U.S. Attorney Gloria Bedwell prosecuted the case on behalf of the United States.
Six Individuals Charged with Conspiring to Commit Wire Fraud and Money LaunderingRead the Press Release
NEW ORLEANS – RYAN P. MULLEN, age 41, a resident of Jayess, Mississippi, DUANE A. DUFRENE, age 55, a resident of Destrehan, Louisiana, DILLON J. ARCENEAUX, age 31, a resident of Marrero, Louisiana, LANCE M. VALLO, age 37, a resident of Gueydan, Louisiana, GRANT C. MENARD, age 35, a resident of Kaplan, Louisiana, and ZEB O. SARTIN, age 35, a resident of Lafayette, Louisiana, were indicted on Friday, August 26, 2022, by a federal grand jury for conspiracy to commit bank fraud and conspiracy to commit money laundering, announced U.S. Attorney Duane A. Evans.
As charged in the indictment, MULLEN and DUFRENE conspired with ARCENEAUX, VALLO, MENARD, and SARTIN to use a number of shell Louisiana companies with no assets to defraud a merchant cash company based in Georgia. MULLEN and DUFRENE helped establish ARCENEAUX, VALLO, MENARD, and SARTIN as the owners of existing corporations, MULLEN and DUFRENE then created fake vendor accounts for the corporations, and MULLEN, with the aid of another person, created falsified bank records for the companies. MULLEN then used an alias to hold himself out to be a broker for the companies he helped create.
Through the aid of another broker, MULLEN supplied the victim merchant cash advance company with the fake vendor accounts and false bank records in order to obtain funding. The victim cash advance company approved the advances and began to electronically wire ARCENEAUX, VALLO, MENARD, and SARTIN millions of dollars in advances. ARCENEAUX, VALLO, MENARD, and SARTIN laundered a portion of the funds by paying MULLEN and DUFRENE percentages of the funds. ARCENEAUX, VALLO, MENARD, and SARTIN then closed their non-existent businesses before fully repaying the victim merchant cash advance company, resulting in losses of approximately $6.4 million.
An indictment merely alleges that crimes have been committed. The defendants are presumed innocent until proven guilty beyond a reasonable doubt.
If convicted, MULLEN, DUFRENE, ARCENEAUX, VALLO, MENARD, and SARTIN face a maximum sentence of five years on the wire fraud conspiracy, and a maximum sentence of up to twenty years on the money laundering conspiracy. Each defendant faces up to three years of supervised release, and up to a $250,000 fine on the wire fraud counts. For the money laundering counts, each defendant faces up to three years of supervised release and up to a $500,000 fine. Each count also has a mandatory special assessment fee of $100. A notice of fraud forfeiture filed by the government seeks to forfeit a number of Rolls Royces and Bentleys bought by MULLEN.
U.S. Attorney Evans commended the special agents of the Federal Bureau of Investigation and IRS-Criminal Investigation for their handling of the matter. The case is being prosecuted by Assistant United States Attorneys Edward J. Rivera and Andre Lagarde.
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Shelbyville Woman Sentenced to 30 Months in Federal Prison for Embezzlement and Tax FraudRead the Press Release
Louisville, KY – A Shelbyville, Kentucky woman was sentenced yesterday to 30 months in prison for embezzling funds from her employer and including false information on her tax returns.
According to court documents, Kimberly F. Jones, 53, was employed as an office manager at Guardian Retention Systems, LLC in Bullitt County, Kentucky. As office manager, she handled accounts payable and receivable, petty cash, payroll, and taxes. She also had electronic access to the bank accounts to pay bills. During her time as officer manger, Jones took several actions to embezzle from her employer. She used company credit cards in her name and the names of other employees to make unauthorized personal purchases. She directed unauthorized transfers from the company bank account and diverted customer revenue received by the company’s electronic payment account. Jones also set up a business called KAB Enterprises, LLC to issue false invoices to Guardian Retention Systems. Jones would use the company credit cards and bank account to pay the fraudulent invoices from KAB Enterprises, LLC.
Jones also failed to report her embezzled funds as income on her tax returns for tax years 2016 through 2018.
“Outstanding work by the FBI and IRS during the investigation and prosecution of this case,” stated U.S. Attorney Michael A. Bennett. “Along with the FBI and IRS, we will continue to aggressively investigate and prosecute fraudsters who abuse corporate positions of trust and pilfer company funds.”
“Jones betrayed the trust placed in her by her employer, and criminal conduct like this undermines the financial health of honest businesses and can threaten jobs held by honest employees,” said Special Agent in Charge Jodi Cohen of the FBI’s Louisville Field Office. “As a result, FBI Louisville, the IRS, and the United States Attorney’s Office will continue our work to hold corrupt insiders accountable for their crimes.”
A United States District Judge for the Western District of Kentucky sentenced Jones to 30 months imprisonment and ordered her to pay $260,034 in restitution. There is no parole in the federal system.
The case was investigated by the FBI and IRS Criminal Investigation Division.
Assistant U.S. Attorney Amanda E. Gregory prosecuted the case.
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Sharon, PA Man Pleads Guilty in Crack Cocaine ConspiracyRead the Press Release
PITTSBURGH – Jeronte Robinson pled guilty to conspiring to distribute crack cocaine, United States Attorney Cindy K. Chung announced today.
Robinson, age 27 of Sharon, Pennsylvania, pled guilty before United States District Judge Cathy Bissoon. Judge Bissoon scheduled sentencing to occur on January 4, 2023, at 10:00 a.m.
The law provides for a sentence of up to 20 years in prison and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed is to be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Craig W. Haller is prosecuting this case on behalf of the United States.
The Federal Bureau of Investigation, the Drug Enforcement Administration, the Pennsylvania Attorney General’s Office, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Pennsylvania State Police, the Lawrence County Drug Task Force, the Mercer County Drug Task Force, the New Castle Police Department, the Sharon Police Department, the Hermitage Police Department, and the Farrell Police Department led the investigation resulting in the conviction in this case.
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.
San Bernardino County Man Sentenced to 14 Years in Federal Prison for Multimillion-Dollar Investment Fraud and Cheating on His TaxesRead the Press Release
LOS ANGELES – A Highland man who used his work history as a San Bernardino County sheriff’s deputy to gain investors’ trust and later invest millions of dollars with him, only to use their money to fund his extravagant lifestyle, was sentenced today to 168 months in federal prison.
Christopher Lloyd Burnell, 51, was sentenced by United States District Judge Michael W. Fitzgerald, who also ordered him to pay $7,592,491 in restitution. At today’s hearing, Judge Fitzgerald described Burnell as “one of the most evil people that I have ever dealt with in the law” and ordered him immediately remanded into custody.
Burnell pleaded guilty on May 10 to 11 counts of wire fraud and two counts of filing a false tax return.
Burnell falsely claimed to have accumulated tens of millions of dollars from lawsuits he purportedly won against the San Bernardino County Sheriff’s Department and Kaiser Permanente; from selling a patent for an air-cooled, bullet-resistant vest to Oakley Inc.; and through investments in small businesses and money-lending opportunities. Burnell left the San Bernardino County Sheriff’s Department in May 2008. The scheme began no later than November 2010 and continued until September 2017.
After deceiving victims into believing he was a wealthy businessman, Burnell then induced victims to invest up to hundreds of thousands of dollars at a time with him by offering exclusive investment opportunities that promised rates of returns as high as 100% to be repaid in a few weeks. In some instances, Burnell asked the victim for an initial trial investment with him, during which he would fulfill his promised returns – and gain the victim’s trust – only to ask for a larger amount from them.
“But these investment opportunities did not actually exist,” prosecutors argued in a sentencing memorandum. “Rather, [Burnell] would spend the money on maintaining a life of luxury for himself and his Hooters calendar model girlfriends, gambling, and private jets.”
Burnell spent victims’ money on gambling and luxury items, including losing more than $2 million in gambling at the San Manuel Casino in Highland, $500,000 in private jet trips, $70,000 on Louis Vuitton merchandise, and $175,000 on luxury cars and an apartment lease for his then-girlfriends. Burnell continued this investment fraud scheme for years until he could not identify new victims to defraud and the money from his victims ran out.
As victims began to raise concerns to him about a lack of repayment and defaults, Burnell claimed that his money had been tied up in a trust fund and his remaining assets had been seized by federal authorities. He then cheated some of the victims out of additional funds by falsely claiming he needed loans to pay for his then-wife’s cancer treatment, a child custody dispute with his father-in-law, and other personal expenses.
To alleviate victims’ concerns, Burnell showed many victims a fabricated Wells Fargo bank statement that said he had more than $150 million in his account that he would use to pay back victims once his funds were no longer tied up. In truth, Burnell had less than $6,500 in that account.
Burnell’s victims lost a total of $7,592,491, which included their retirement and other savings and investment funds. According to court documents, some victims became depressed and suicidal, others lost their businesses, some were forced to sell their family homes and move into smaller residences, some had to tell their children they could no longer pay for their college education, and some suffered marital problems and got divorced. Some victims had their retirement plans shattered.
“Simply put, no words can explain the level of emotional and physical havoc [Burnell] wreaked on [his] victims’ lives,” prosecutors wrote in a sentencing memorandum.
Burnell did not report any of the money he received from victims in 2011 or 2012 on his personal income tax returns that he filed jointly with his then-wife. Instead, Burnell only reported income from gambling winnings in 2011 and 2012 – estimated to be more than $1 million – all of which was purportedly offset by gambling losses.
IRS Criminal Investigation and the United States Secret Service investigated this matter.
Assistant United States Attorney Robert S. Trisotto of the Riverside Branch Office prosecuted this case.
Sacramento Felon and Fugitive in Four State Firearms Cases, Sentenced to Almost 6 Years in Prison for Illegal Gun PossessionRead the Press Release
SACRAMENTO, Calif. — Marcus Lawrence Weber, 26, of Sacramento, was sentenced today by U.S. District Judge John A. Mendez to five years and 11 months in prison for being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on March 16, 2022, Weber had four pending felony arrest warrants when law enforcement officers located him hiding in Roseville. When officers tried to pull Weber over to arrest him, he led them on a car chase through a populated apartment complex, speeding past multiple vehicles and people. The police eventually surrounded Weber in a cul-de-sac, where he abandoned his car and continued his flight on foot, wearing a black ski mask. He ran past a family with two small children, dropped the firearm, picked it back up, and eventually tossed the firearm in thick brush before being arrested. The firearm, a Ruger 5.7, was loaded with a 20-round extended magazine with one round in the chamber.
Weber possessed that firearm while on the run from a spree of four firearm related felony offenses that he committed within a five-month period. Weber began this crime spree after being only a month and a half on probation from a prior felony drug trafficking offense that involved the discharge of a firearm into his neighbor's apartment.
This case was the product of an investigation by the Sacramento Police Department, the Sacramento County District Attorney’s Office, the Placer County Sheriff’s Office, and the Placer County District Attorney’s Office, the Fresno Police Department, and the Fresno County District Attorney’s Office, with the assistance of the Federal Bureau of Investigation’s Safe Streets Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Adrian T. Kinsella prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the 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.
Roswell man sentenced for producing child pornographyRead the Press Release
ATLANTA - Derrick Hunt has been sentenced for producing child pornography. Hunt concealed a 13-year-old girl at his apartment for three weeks in the summer of 2012 and recorded his sexual encounters with her.
“Hunt assaulted a vulnerable young girl by plying her with drugs and alcohol in order to sexually abuse her,” said U.S. Attorney Ryan K. Buchanan. “Sexual predators use every opportunity, including leveraging social media platforms, to lure children into these kinds of exploitive situations. The experience of this victim and her family is the kind of nightmare scenario for unsuspecting parents that we encourage citizens to try to avoid through vigilant monitoring of their children’s social media activities.”
“Predators like Hunt have no place in civilized society. Their victims, in this case a 13-year-old girl, will likely never fully recover from the abuse they endured,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “Our warning to predators is that the FBI will go to great lengths to protect our most vulnerable citizens from those who seek to manipulate and do them harm.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: On June 18, 2012, Hunt saw a Facebook posting from a 13-year-old girl stating that she wanted to run away from her family’s home. Hunt knew that she was 13 years old, but he still agreed to pick her up. He took her to his apartment in Roswell and gave her alcohol, marijuana and opioids.
Over the next several weeks, Hunt engaged in numerous sex acts with the girl, many of them while she was impaired from alcohol or drugs. All of the sex acts occurred in Hunt’s living room area where he positioned a camera to record his sex acts with the child. On July 7, 2012, Hunt arranged for the girl’s father to pick her up at a restaurant. Hunt was unaware that the child’s father had arranged for the police to be present at the meeting location. Hunt was arrested when he dropped off the victim at approximately 2:30 AM.
Fulton County charged Hunt locally with child molestation offenses. But he was released on bond and fled the state. The U.S. Attorney’s Office then obtained an arrest warrant for Hunt for the federal offense of production of child pornography via a criminal complaint. He was arrested under an alias in Las Vegas, Nevada, on August 30, 2019.
Derrick Hunt, 39, of Roswell, Georgia, was sentenced to 17 years and six months in prison to be followed by supervised release for life. Hunt was convicted on these charges on May 16, 2022, after he pleaded guilty.
This case was investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Paul R. Jones prosecuted the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Resumen de la sesión de audiencia de los Fiscales Generales Auxiliares Kristen Clarke y Todd Kim con partes interesadas en la justicia ambiental en Houston, TexasRead the Press Release
Ayer, Kristen Clarke, la Fiscal Genera Auxiliar de la División de Derechos Civiles del Departamento de Justicia, y Todd Kim, el Fiscal General Auxiliar de la División del Ambiente y Recursos Naturales (“ENRD,” por sus siglas en inglés) viajaron a Houston, Texas, para escuchar las inquietudes sobre justicia ambiental de organizaciones que representan a comunidades históricamente carenciadas, sobrecargadas y marginadas en cuanto a asuntos ambientales. Se unieron a ellos Jennifer B. Lowery, la Fiscal Federal para el Distrito Sur de Texas; Cynthia Ferguson, Directora Interina de la Oficina de Justicia Ambiental del Departamento de Justicia; y James McGuire y Patricia Welton, representantes de la Región 6 de la Agencia de Protección Ambiental (“EPA,” por sus siglas en inglés).
La Fiscal General Auxiliar Clarke inició la sesión de audiencia anunciando que es parte de la estrategia integral de aplicación de la justicia ambiental del Departamento y reafirmando el profundo compromiso del Departamento a interactuar con comunidades afectadas. Hizo hincapié en la necesidad de realizar este alcance comunitario para identificar áreas de inquietud sobre justicia ambiental a las que se están enfrentando comunidades en Houston, el Estado de Texas y en otros lugares de Estados Unidos. Asimismo, resaltó los esfuerzos recientes del Departamento por promover la justicia ambiental mediante la ejecución de las leyes federales de derechos civiles de nuestra nación.
El Fiscal General Auxiliar Kim habló de los esfuerzos de ENRD por entablar pleitos contra aquellos que vulneran las leyes nacionales ambientales, de recursos naturales y de seguridad en el lugar de trabajo. Recalcó la importancia del papel de ENRD para garantizar que comunidades de color, comunidades de bajos ingresos y comunidades tribales reciban los servicios y el apoyo que necesiten para poder hacer frente a las injusticias ambientales. Destacó la nueva Oficina de Justicia Ambiental del Departamento, que ayudará a coordinar actividades de justicia ambiental a través de todo el Departamento mediante su participación en esfuerzos interinstitucionales de justicia ambiental con socios federales, estatales, locales y tribales, y fomentando y apoyando el alcance comunitario a las comunidades sobrecargadas y marginadas. Por último, realzó algunos ejemplos del trabajo reciente de ENRD, incluyendo acuerdos judiciales sobre la quema de gas que suele suceder cerca de comunidades de justicia ambiental, así reduciendo las emisiones de gases de efecto invernadero y mejorando la calidad del aire.
La Fiscal Federal Lowery habló del compromiso de su oficina a apoyar el trabajo de la División de Derechos Civiles y ENRD para abordar problemas de justicia ambiental por la zona de Houston, incluyendo la investigación de derechos civiles al amparo del Título VI de vertidos ilegales por la zona de Houston. Ella destacó el papel primordial que la Fiscalía Federal desempeña en la implementación exitosa de la estrategia del Departamento, dada la naturaleza local de la mayoría de los asuntos de justicia ambiental. Recalcó su esperanza de que la sesión de audiencia solo fuera un paso inicial pero importante en asegurar el compromiso significativo con las comunidades afectadas, sobre todo las que se encuentran dentro de Houston y el Distrito Sur de Texas.
La sesión de audiencia incluyó comentarios de varios líderes de justicia ambiental locales de Houston sobre una variedad de temas. Los temas que salieron a relucir a lo largo de la conversación de 90 minutos incluyeron cómo el Departamento de Justicia puede ayudar a sus socios estatales y locales de la mejor manera posible para abordar el vertido ilegal, la calidad del aire y la contaminación, el desarrollo de la infraestructura y el transporte, y el acceso lingüístico, así como cómo puede comprometerse todavía más con la comunidad local para abordar problemas y buscar soluciones. Los líderes hicieron hincapié en las desigualdades estructurales que impulsan estas inquietudes de justicia ambiental, los riesgos sanitarios de las cargas ambientales y el deseo de mejorar los barrios en los que viven.
Todos los funcionarios del Departamento dieron sus gracias a los asistentes por su participación, incluyendo al Profesor Robert Bullard de la Texas Southern University y los profesores Victor Flatt y Tracy Hester de la University of Houston Law Center, anfitriones de la sesión de audiencia.
Repeat Violent Felon Sentenced to 10 Years in Federal Prison for Illegal Possession of a Firearm After a 12-Hour Standoff and Shooting at PoliceRead the Press Release
INDIANAPOLIS – Wesley Cartwright, 39, of Indianapolis, was sentenced to 10 years in federal prison after pleading guilty to unlawful possession of a firearm by a convicted felon.
According to court documents, on January 5, 2022, deputies with the Marion County Sheriff’s Department attempted to serve an eviction notice to Cartwright at his residence in Indianapolis. Cartwright refused to exit the residence. After more than five hours of Cartwright refusing to come out, Indianapolis Metropolitan Police Department (IMPD) officers arrived to assist. Officers observed lights on inside the residence and believed Cartwright may still be inside. Officers were informed that Cartwright is a convicted felon and that he may be in possession of a firearm.
Law enforcement officers obtained warrants to allow them to arrest Cartwright and to search for firearms inside the residence. IMPD officers communicated sporadically with Cartwright over the phone, but Cartwright indicated he had no intention of cooperating with the police and that he wasn’t going back to prison.
IMPD SWAT deployed a drone into Cartwright’s residence and observed that he was armed with two handguns. Cartwright hit the drone with his hands knocking it to the ground and then fired several shots inside the residence. As SWAT officers launched chemical munitions through the window, Cartwright began firing multiple rounds at the officers. IMPD SWAT moved armored vehicles toward the residence and Cartwright began firing at the officers again. He directly pointed a firearm at one of the officers and shot down a second drone.
After 12 hours of continued negotiations and Cartwright still refusing to exit the residence, IMPD SWAT entered the residence and took Cartwright into custody. Cartwright was found wearing a ballistic vest. Police seized two loaded handguns from inside the residence.
Beginning in 2009, Cartwright has sustained five previous convictions for felony offenses including intimidation, battery by means of a deadly weapon, theft and dealing narcotics. Under federal law, anyone who has been convicted of any felony offense is prohibited from possessing firearms.
“Every day, law enforcement officers serve their communities at risk to their own lives. Recently, and far too often, we have seen the tragedies that can result when police working to protect the public encounter illegally armed, violent criminals,” said Zachary A. Myers, United States Attorney for the Southern District of Indiana. “Prosecutions of violent repeat offenders are critical to our efforts to stem the tide of gun violence. The serious federal sentence imposed for these crimes demonstrates that we will work tirelessly with our law enforcement partners to protect our communities and to hold armed and dangerous criminals accountable.”
“The defendant chose to violently confront police officers who legally came to his home to serve an eviction notice, all while already being prohibited from possessing firearms due to his previous criminal history,” stated Daryl S. McCormick, Special Agent in Charge of ATF’s Columbus Field Division. “IMPD and the Marion County Sheriff’s Office handled this situation professionally and brought the defendant into custody without injury to any civilians or officers, for which we are all grateful. When we talk about removing violent individuals from our communities, this is exactly what we mean, and ATF will continue to work with our law enforcement partners toward this end.”
“In my opinion, the federal enhancement penalty for committing crimes while armed is one of the three most effective tools in fighting crime,” said Marion County Sheriff Kerry Forestal. “Citizens in Indiana have their rights to carry a gun, but that does not extend to committing a crime while armed. An additional steep price must be paid by those who do so. I thank United States Attorney Zach Myers and his office for the strong position in protecting our community.”
ATF investigated the case in conjunction with IMPD. Invaluable assistance was provided by the Marion County Sheriff’s Office. The sentence was imposed by U.S. District Judge James R. Sweeney II. As part of the sentence, Judge Sweeney ordered that Cartwright 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 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.
Registered Nurse Pleads Guilty to Tampering with Painkillers at HospitalRead the Press Release
DETROIT - A registered nurse pled guilty in United States District Court to tampering with vials and syringes of liquid painkiller at the Detroit hospital where she worked, U.S. Attorney Dawn N. Ison announced today.
Ison was joined in the announcement by Acting Special Agent in Charge Ronne G. Malham, Food and Drug Administration (FDA) Office of Criminal Investigations Chicago Field Office.
According to court documents, Mary Cheatham, 42, of Ypsilanti, Michigan, a registered nurse who previously was employed in the critical care unit at a hospital in Detroit, Michigan, removed vials and syringes of injectable hydromorphone from the medication dispensing machines, by extracting the hydromorphone using syringes, and then replaced the saline filled vials and syringes into the unit’s medication dispensing machines. Cheatham’s tampering took place between March 2020 and August 2020. Cheatham knew the vials and syringes of hydromorphone were intended to be administered to patients for the purpose of pain relief in the critical care unit of the hospital.
“Patients entering a hospital must have confidence they will receive the treatment they are promised,” United States Attorney Ison, stated. “Cheatham violated that trust and potentially exposed patients to unnecessary pain and suffering and must be held accountable for her actions.”
“The FDA oversees the U.S. drug supply to ensure that it is safe and effective, and those who knowingly tamper with medicines put the health of patients at risk,” said Acting Special Agent in Charge Ronne G. Malham. “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.”
Cheatham’s sentencing is scheduled for January 18, 2023. Cheatham faces a maximum of 10 years in federal prison and a fine of up to $250,000. The Court will determine the sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This case is being prosecuted by Assistant United States Regina R. McCullough. The case was investigated by special agents of the Food and Drug Administration.
Readout of Assistant Attorneys General Kristen Clarke and Todd Kim’s Listening Session with Environmental Justice Stakeholders in Houston, TexasRead the Press Release
Yesterday, Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division and Assistant Attorney General Todd Kim of the Environment and Natural Resources Division (ENRD) traveled to Houston, Texas, to hear environmental justice concerns from organizations representing communities that have been historically underserved, overburdened and marginalized regarding environmental issues. They were joined by U.S. Attorney Jennifer B. Lowery for the Southern District of Texas; Acting Director Cynthia Ferguson of the Justice Department’s Office of Environmental Justice; and EPA Region 6 representatives James McGuire and Patricia Welton.
Assistant Attorney General Clarke opened the event by announcing that the listening session is a part of the department’s Comprehensive Environmental Justice Enforcement Strategy, and reaffirming the department’s deep commitment to meaningful engagement with impacted communities. She emphasized the need to conduct this outreach to identify areas of environmental justice concern that communities are facing in Houston, in other areas of the state of Texas and elsewhere in the United States. She also highlighted the department’s recent efforts to advance environmental justice through the enforcement of our nation’s federal civil rights laws.
Assistant Attorney General Kim spoke about ENRD’s efforts to bring enforcement cases against those who violate the country’s environmental, natural resources and workplace safety laws. He stressed the importance of ENRD’s role to ensure that communities of color, low-income communities and Tribal communities receive the services and support needed to address environmental injustices. He highlighted the department’s new Office of Environmental Justice, which will help coordinate environmental justice activities across the department by participating in inter-agency environmental justice efforts with federal, state, local and Tribal partners, and by encouraging and supporting outreach to overburdened and underserved communities. Finally, he highlighted examples of ENRD’s recent work, including judicial settlements addressing improper flaring events that often occur near environmental justice communities and reducing greenhouse gas pollution while improving air quality.
U.S. Attorney Lowery spoke about her office’s commitment to support the work of the Civil Rights Division and ENRD to address environmental justice issues in the Houston area, including the Title VI civil rights investigation into illegal dumping in the Houston area. She noted the critical role the U.S. Attorney’s Office has in the successful implementation of the department’s strategy given the local nature of most environmental justice issues. She echoed the hope that the session was an initial but important step in ensuring meaningful engagement with impacted communities, especially within Houston and the Southern District of Texas.
The listening session featured remarks from a number of local Houston environmental justice leaders on a variety of topics. Themes throughout the 90-minute discussion included how the Justice Department can best help its state and local partners address illegal dumping, air quality and pollution, transportation and infrastructure development, and language access, as well as further engage with the local community to address problems and seek solutions. The leaders emphasized the structural inequities driving these environmental justice concerns, the health risks from environmental burdens and the desire to improve the neighborhoods in which they live.
All of the department officials thanked those in attendance for their participation, including Texas Southern University Professor Robert Bullard and the University of Houston Law Center Professors Victor Flatt and Tracy Hester for hosting the listening session.
Rapid City Man Sentenced to Six Years and Six Months in Federal Prison for Threatening a WitnessRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Rapid City, South Dakota, man convicted of Obstructing Justice by Retaliating Against a Witness was sentenced on August 19, 2022, by U.S. District Judge Karen E. Schreier.
Edward Martin, age 50, was sentenced to six years and six months in federal prison and ordered to pay a $100 special assessment to the Federal Crime Victims Fund. All but 18 months of the sentence are concurrent to a 20-year sentence Martin received for his conviction for conspiring to distribute methamphetamine.
Martin was indicted for Obstructing Justice by Retaliating Against a Witness by a federal grand jury in December of 2021. He was found guilty following a federal court trial held on August 1, 2022. Martin threatened an individual who had provided information to law enforcement about a drug conspiracy in which Martin was involved. Martin made threatening comments to the individual in an attempt to dissuade the individual from testifying against Martin’s co-conspirators in pending federal criminal proceedings.
The investigation was conducted by the South Dakota Division of Criminal Investigation and the Drug Enforcement Administration. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Martin was remanded to the custody of the U.S. Marshals.
Professional Rock Climber Arrested for Yosemite National Park Sexual AssaultsRead the Press Release
FRESNO, Calif. — A three-count indictment was unsealed today following the arrest of Charles Barrett, 38, who is charged with aggravated sexual abuse and abusive sexual contact, U.S. Attorney Phillip A. Talbert announced.
According to court documents, in August 2016, Barrett forcibly committed sexual assault on two occasions and committed abusive sexual contact on a third.
If you have information related to this case or believe you may be a victim, please submit a tip online, call 888-653-0009, or email [email protected].
This case is the product of an investigation by the National Park Service. Assistant U.S. Attorneys Kimberly Sanchez, Michael Tierney, and Jessica Massey are prosecuting the case.
If convicted, Barrett faces a maximum statutory penalty of life in prison and a $250,000 fine. Any sentence, however, would 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. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Pittsburgh Man Sentenced to 16 Years for Violating Child Sexual Exploitation LawsRead the Press Release
PITTSBURGH - A former resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to 16 years’ incarceration followed by 10 years’ supervised release on his conviction of one count of production and attempted production of material depicting the sexual exploitation of a minor, United States Attorney Cindy K. Chung announced today.
Senior United States District Judge Arthur J. Schwab imposed the sentence on Anthony Cerasi, age 47.
According to information previously presented to the court, on April 13, 2021, Cerasi employed and used a minor to engage in sexually explicit conduct for the purpose of producing a video recording of such conduct.
Assistant United States Attorney Heidi M. Grogan prosecuted this case on behalf of the government.
United States Attorney Chung commended the FBI Pittsburgh Child Exploitation and Human Trafficking Task Force, including the Federal Bureau of Investigation and the Pittsburgh Bureau of Police, for the investigation leading to the successful prosecution of Cerasi.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by 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. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Philips North America Agrees to Pay $4.2 Million to Resolve Allegations of False Claims Act ViolationsRead the Press Release
BOSTON – Philips North America LLC (Philips) has agreed to pay approximately $4.2 million to resolve allegations that it substituted key components of a mobile patient monitoring device called an MP2 that it sold to military purchasers without recertifying the MP2 for military airworthiness.
Headquartered in Cambridge, Mass., Philips, among other things, manufactures medical devices, including MP2s, for sale to the federal government, including to U.S. military customers. According to the settlement agreement, from Jan. 1, 2012 through Nov. 27, 2018, Philips sold MP2s to the U.S. Air Force, U.S. Army, U.S. Navy and the Defense Logistics Agency. These agencies require airworthiness and safe-to-fly testing and certification on medical devices used in certain aircraft environments. Airworthiness and safe-to-fly testing by U.S. military agencies is necessary to ensure that a medical device does not adversely affect the operation of aircraft systems, and conversely, that the aircraft does not adversely affect the proper operation and efficacy of the medical equipment. Philips admits that, after receiving initial airworthiness and safe-to-fly certifications for the MP2 from the U.S. Army in 2008 and the U.S. Air Force in 2011, Philips made modifications to the MP2 but did not adequately notify the relevant military testing facilities to determine whether the device modifications required retesting for certification. As a result, the United States contends that it has civil claims against Philips for submitting or causing the submission of false claims to the U.S. military.
United States Attorney Rachael S. Rollins; Patrick Hegarty, Special Agent in Charge of the Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office; Michael Wiest, Special Agent in Charge of the Naval Criminal Investigative Service, Northeast Field Office; U.S. Air Force, Office of Special Investigations; and Michael Conner, Resident Agent in Charge of the U.S. Army Criminal Investigation Division made the announcement today. Assistant U.S. Attorneys Lindsey Ross and Diane Seol of Rollins’ Affirmative Civil Enforcement Unit handled the matter.
Owensboro Man Arrested on Federal Charges for Distribution of FentanylRead the Press Release
Owensboro, KY – An Owensboro, Kentucky man was arrested today on a federal indictment charging him with two counts of distribution of fentanyl.
According to court documents, Ricky Sutton, 28, distributed a mixture and substance containing fentanyl in Owensboro, KY on November 3, 2021, and January 4, 2022.
Sutton is charged with two counts of distribution of fentanyl. If convicted, Sutton faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. There is no parole in the federal system. Sutton remains in custody pending an arraignment and detention hearing to be held on September 2, 2022.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge Jodi Cohen of the FBI Louisville Field Office, and Special Agent in Charge R. Shawn Morrow of the ATF Louisville Field Division made the announcement.
The FBI, the ATF, the Owensboro-Daviess County Appalachia HIDTA Drug Task Force, and the Daviess County Sheriff’s Office are investigating the case.
Assistant U.S. Attorney Mark J. Yurchisin II, of the U.S. Attorney’s Bowling Green Branch Office, is prosecuting the case.
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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Oshkosh Sex Offender Sentenced to 15 Years in Federal Prison for Attempting to Meet up with 13-year-old for Sexual ActivityRead the Press Release
Richard G. Frohling, United States Attorney for the Eastern District of Wisconsin, announced that Kevin J. Mueller (age: 60) of Oshkosh, Wisconsin, was sentenced on August 30, 2022, to 180 months’ imprisonment by Senior U.S. District Judge William C. Griesbach.
According to court documents, Mueller began exchanging instant messages in early May with an individual whom he believed to be the parent of a 13-year-old girl living in Oshkosh, Wisconsin. Mueller expressed repeated interest in engaging in sexual activity with the 13-year-old. Mueller also sent pornographic images of himself which he wanted to be shared with the child.
In actuality, Mueller was communicating with a law enforcement agent assigned to an FBI. Task Force. Mueller was arrested upon his arrival at the prearranged meeting spot in Winnebago County. Mueller is required to register as a sexual offender based on a 1989 First Degree Sexual Assault of a Child conviction in Milwaukee County.
In pronouncing sentence, Judge Griesbach noted the serious nature of the offense and Mueller’s previous conviction for sexually assaulting a 6-year-old child. He found a strong need for deterrence and to protect the community noting that Mueller would be well into his 70s when he is released from federal prison. Following his release, Mueller will be on supervised release for a period of 10 years and will continue to register as a sex offender.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006, by the U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood, marshals, federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Winnebago County Sheriff’s Office and the Federal Bureau of Investigation’s Milwaukee Office. It was prosecuted by Assistant United States Attorney Daniel R. Humble.
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Oshkosh Sex Offender Sentenced to 15 Years in Federal Prison for Attempting to Meet up with 13-year-old for Sexual ActivityRead the Press Release
Richard G. Frohling, United States Attorney for the Eastern District of Wisconsin, announced that Kevin J. Mueller (age: 60) of Oshkosh, Wisconsin, was sentenced on August 30, 2022, to 180 months’ imprisonment by Senior U.S. District Judge William C. Griesbach.
According to court documents, Mueller began exchanging instant messages in early May with an individual whom he believed to be the parent of a 13-year-old girl living in Oshkosh, Wisconsin. Mueller expressed repeated interest in engaging in sexual activity with the 13-year-old. Mueller also sent pornographic images of himself which he wanted to be shared with the child.
In actuality, Mueller was communicating with a law enforcement agent assigned to an FBI. Task Force. Mueller was arrested upon his arrival at the prearranged meeting spot in Winnebago County. Mueller is required to register as a sexual offender based on a 1989 First Degree Sexual Assault of a Child conviction in Milwaukee County.
In pronouncing sentence, Judge Griesbach noted the serious nature of the offense and Mueller’s previous conviction for sexually assaulting a 6-year-old child. He found a strong need for deterrence and to protect the community noting that Mueller would be well into his 70s when he is released from federal prison. Following his release, Mueller will be on supervised release for a period of 10 years and will continue to register as a sex offender.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006, by the U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood, marshals, federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Winnebago County Sheriff’s Office and the Federal Bureau of Investigation’s Milwaukee Office. It was prosecuted by Assistant United States Attorney Daniel R. Humble.
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For further information contact: [email protected]
(414) 297-1700
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One Inmate Convicted and Another Sentenced for Escaping from A Halfway HouseRead the Press Release
TALLAHASSEE, FLORIDA – A federal jury in Tallahassee convicted Frederick Bush, 44, of Tallahassee, Florida of escaping from custody at a Tallahassee halfway house. The guilty verdict, returned today, at the conclusion of a two-day trial, was announced by Jason R. Coody, United States Attorney for the Northern District of Florida.
Evidence introduced during the trial revealed that Bush was serving an 84-month sentence in federal prison for distribution of a controlled substance. The Bureau of Prisons placed Bush in a halfway house to complete his sentence, with an estimated release date of September 12, 2021. Bush signed a written acknowledgement of the rules of the halfway house which included notice that he could be prosecuted for escape if he failed to remain at the facility. On June 21, 2021, Bush walked away from the halfway house and was listed as an escapee. Halfway house staff conducted escape procedures which included contacting Bush telephonically and telling him to return to the facility. Bush stated he would not return to the facility. On July 28, 2021, Bush was arrested near Tifton, Georgia on unrelated narcotics charges.
Bush’s sentencing hearing is scheduled for November 14, 2022, at 3:00 p.m., at the United States Courthouse in Tallahassee before Senior United States District Judge Robert L. Hinkle. Bush faces up to five years imprisonment.
This conviction resulted from an investigation by the United States Marshal Service. Assistant United States Attorney Meredith L. Steer prosecuted the case.
Bush’s conviction follows the plea and sentencing of Anthony Orlando Gibbs, 46, of Lansing, Michigan, who escaped from the same Tallahassee halfway house on July 3, 2021, and was later arrested on November 10, 2021, in Lansing, Michigan, on unrelated charges. Gibbs plead guilty on April 28, 2022, and was sentenced by Senior United States District Judge Robert L. Hinkle on July 21, 2022, to four months federal prison to be followed by three years of supervise release. The sentence was ordered to be served consecutive to the remaining portion of the prior sentence Gibbs was serving when he absconded.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.