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Thursday 14 July 2022
Career Offender Sentenced to 15 Years in Federal Prison for Drug Trafficking and Firearm Offenses Following High-Speed ChaseRead the Press Release
INDIANAPOLIS – Santana Kendall, 30, of Indianapolis, was sentenced today to 15 years in federal prison for possession with intent to distribute a controlled substance and carrying a firearm during and in relation to a drug trafficking crime.
According to court documents, on August 11, 2021, Kendall led police on a high-speed chase after police attempted to stop him for speeding. Kendall ran a red light, drove on the wrong side of traffic, and ran several stop signs during the chase. After evading police, Kendall parked the vehicle at a residence and fled on foot. Kendall discarded a backpack he was carrying, which was later recovered by police. The backpack contained a loaded firearm, sizeable amounts of methamphetamine, heroin, crack cocaine, oxycontin pills, syringes, marijuana, a digital scale, and $5,517 in U.S. currency. Kendall was later found by police and arrested. Kendall admitted in his guilty plea that he possessed the controlled substances with the intent to distribute them and possessed the gun in furtherance of his drug trafficking activities. Under the U.S. Sentencing Guidelines, Kendall is a career offender as a result of his multiple prior felony drug-dealing convictions.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, and Daryl S. McCormick, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Columbus Field Division, made the announcement.
ATF investigated the case. The Indianapolis Metropolitan Police Department also provided valuable assistance. The sentence was imposed by U.S. District Court Judge James Patrick Hanlon following Kendall’s guilty plea. As part of the sentence, Judge Hanlon also ordered that Kendall be supervised by the U.S. Probation Office for five years following his release from federal prison.
U.S. Attorney Myers thanked Assistant U.S. Attorney Peter Blackett who is prosecuting 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 make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement, and the local community to develop effective, locally based strategies to reduce violent crime.
Career Offender Sentenced for Possession of Firearms and DrugsRead the Press Release
Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell has sentenced Eric Maurice Brown, Jr. (32, Fort Myers) to 13 years and 8 months in federal prison for possessing with the intent to distribute 40 or more grams of fentanyl and for possessing a firearm and ammunition as a convicted felon. Brown had pleaded guilty on January 27, 2022.
According to court records, on April 27, 2021, officers from the Fort Myers Police Department and emergency medical services personnel responded to a 911 call regarding a single-vehicle accident. The driver and sole occupant of the vehicle involved in the accident, Brown, was observed unresponsive in the driver’s seat suffering from an apparent drug overdose. Two loaded firearms were found on or near Brown by medical personnel treating him, including a Smith and Wesson .45-caliber handgun recovered from under Brown’s thigh and a Glock .380-caliber handgun located in his front left pants pocket.
Inside the vehicle officers located and seized multiple baggies containing suspected controlled substances, a box containing several rounds of ammunition, a loaded .45-caliber Smith and Wesson magazine, a digital scale, and a box of clear plastic baggies. Laboratory analysis later confirmed that the substances found in the vehicle included more than 50 grams of fentanyl, more than 32 grams of cocaine, and approximately 13 grams of cocaine base.
Brown was previously convicted in Florida state courts of multiple felony offenses, including robbery with a firearm, possession of a controlled substance, and robbery, and is therefore prohibited from possessing firearms or ammunition under federal law. As a result of his prior convictions, he was sentenced as a career offender.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, 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.
This case was investigated by the Fort Myers Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Simon R. Eth.
California Man Sentenced to Six Years for Possession with Intent to Distribute MethamphetamineRead the Press Release
Acting United States Attorney Steven Russell announced that George D. Licata, 44, of Vista, California, was sentenced today in federal court in Lincoln, Nebraska. United States District Judge John M. Gerrard sentenced Licata to 72 months in prison for possession with intent to distribute 50 grams or more of a mixture or substance containing methamphetamine. After serving his sentence, Licata will be placed on supervised release for 4 years. There is no parole in the federal system.
On September 16, 2020, a Merrick County Sheriff’s deputy stopped Licata for a traffic violation. During the traffic stop, Licata provided consent to search his vehicle. The deputy located several syringes in the trunk of the vehicle and 6 glass methamphetamine pipes in a box. Under the air filter in the engine compartment, the deputy found a plastic bag containing a white crystal substance that appeared to be methamphetamine. The substance was sent to a lab for testing, and the lab determined that there was 107 grams of methamphetamine, of which at least 96 grams were pure.
This case was investigated by the Merrick County Sheriff’s Office, the Nebraska State Patrol, and the Tri-Cities Drug Enforcement Team (TRIDENT).
Bozeman man admits stealing government benefits while acting as a fiduciaryRead the Press Release
MISSOULA – A Bozeman man on Wednesday admitted to stealing more than $57,000 in government benefits from an individual for whom he was the fiduciary, U.S. Attorney Jesse Laslovich said.
Ira Kyrk Westbrook, 47, pleaded guilty on July 13 to Social Security fraud. Westbrook faces a maximum of five years in prison, a $250,000 fine and three years of supervised release.
U.S. Magistrate Judge Kathleen L. DeSoto presided. Sentencing was set for Oct. 28 before U.S. District Judge Dana L. Christensen. The court will determine a sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Westbrook was released pending further proceedings.
The government alleged in court documents that in September 2021, the Social Security Administration (SSA) received information that Westbrook was misappropriating Social Security benefits for an individual, identified as John Doe. Doe suffered a stroke in 2018 and had been admitted to a rehabilitation and care facility. Westbrook was appointed as Doe’s Representative Payee and agreed to use the Social Security funds only for Doe’s needs. Westbrook acknowledged he could be charged criminally if he misused the money.
An investigation determined that Westbrook transferred deposits by SSA and the Veteran’s Administration (VA) into Doe’s account to another account Westbrook controlled. Westbrook then made payments to local businesses and restaurants in Bozeman, along with payments to CenturyLink and Amazon, with the account incurring multiple overdrafts. In 2020, Westbrook purchased a travel trailer for $8,500 and a Jeep for $10,000. Westbrook claimed the vehicle was used to run errands for Doe but disclosed that he and his wife had put approximately 15,000 miles on it over seven months. Social media posts showed Westbrook and his wife in the Jeep on a camping trip with the travel trailer. Westbrook diverted a total of $57,329 of Doe’s funds, consisting of $37,731 in VA benefits and $19,598 in SSA benefits.
Assistant U.S. Attorney Karla E. Painter is prosecuting the case, which was investigated by the SSA, VA and Bozeman Police Department.
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Boston Gang Associate Sentenced for Cocaine Trafficking and Firearm OffensesRead the Press Release
BOSTON – A Boston gang associate was sentenced today for cocaine and firearm offenses in connection with his role in a cocaine trafficking conspiracy.
Renardo Williams, 45, of South Boston, was sentenced by U.S. District Court Judge Richard G. Stearns to time served (approximately 32 months in prison) and six years of supervised release. In September 2021, Williams pleaded guilty to one count of conspiracy to distribute and possession with intent to distribute cocaine and one count of being a felon in possession of a firearm and ammunition.
Williams was charged in June 2020 along with 23 others as part of Operation Snowfall – a multi-year investigation into a drug trafficking organization (DTO) comprised of Boston-based street gang members and associates. Investigators identified Williams as a drug customer and distributor for co-defendant Kenji Drayton, the DTO’s principal drug suppler. In the hours preceding his arrest, investigators intercepted calls and conducted surveillance of Williams and Drayton, which allegedly indicated that Williams sought to purchase drugs from Drayton. At the time of his arrest, Williams was found in possession of approximately 125 grams of cocaine and a loaded firearm.
On April 13, 2022, Drayton pleaded guilty to conspiracy to distribute and possess with intent to distribute cocaine and conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine. He is scheduled to be sentenced on Aug. 10, 2022.
First Assistant United States Attorney Joshua S. Levy; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Douglas Bartlett, Acting U.S. Marshal for the District of Massachusetts; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Boston Police Acting Commissioner Gregory Long made the announcement. Assistance in the investigation was provided by the Braintree, Cambridge, Canton, Randolph and Weymouth Police Departments; the Suffolk, Norfolk and Bristol County District Attorneys’ Offices; and the Suffolk, Plymouth and Norfolk County Sheriffs’ Offices. Assistant U.S. Attorneys Kaitlin R. O’Donnell and Timothy E. Moran, Chief of the Organized Crime & Gang Unit, prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
BioReference Laboratories and Parent Company Agree to Pay $9.85 Million to Resolve False Claims Act Allegations of Illegal Remuneration to Referring PhysiciansRead the Press Release
BOSTON – BioReference Health, LLC, formerly known as BioReference Laboratories, Inc., (BioReference) and OPKO Health, Inc. (OPKO) have agreed to pay $9.85 million to resolve alleged violations of the False Claims Act. The government alleges that BioReference rented office space from physicians and then paid those physician-landlords above-market rent so that the physicians would send their laboratory business to BioReference. BioReference, a subsidiary of OPKO, is headquartered in New Jersey and is one of the largest clinical laboratories in the United States.
Between January 2013 and March 2021, BioReference made lease payments to physicians and physician groups for the rental of office space for amounts that exceeded fair market value, in violation of the Physician Self‑Referral Law and the Anti-Kickback Statute. The Physician Self‑Referral Law, commonly known as the Stark Law, prohibits a health care provider from billing for certain services referred by physicians with whom the provider has a financial relationship, unless that relationship satisfies one of the law’s statutory or regulatory exceptions. The Anti‑Kickback Statute prohibits offering or paying remuneration with the intent to induce the referral of items or services covered by Medicare, Medicaid, and other federally funded programs. Both the Stark Law and the Anti-Kickback Statute are intended to ensure that physicians’ medical judgments are not compromised by improper financial inducements.
As part of today’s settlement, BioReference admitted that it rented the office space from the specified physician practices for Patient Service Centers (PSCs) where patients could have their blood samples taken. In calculating payments under certain PSC lease arrangements, BioReference inaccurately measured the amount of space it would use exclusively and included a disproportionate share of common spaces. BioReference analyzed referrals from nearby health care providers—including physician-landlords—when deciding whether to open, maintain, or close PSCs. Following OPKO’s acquisition of BioReference, the companies conducted multiple internal audits that showed that the payments to the specified physician-lessors exceeded fair market value. BioReference did not report or return any overpayments to federal health care programs.
“Medical decisions by doctors should be based on what is best for each patient, not a doctor’s personal financial interest,” said United States Attorney Rachael S. Rollins. “When companies violate the federal health care laws that are meant to protect patients, health care costs for hard working people increase. We will continue to find fraud and use the False Claims Act to make companies that break the law pay back the taxpayers they defrauded as well as pay a financial price for their misconduct.”
“The integrity of federal health care programs depends on providers making decisions based on the interests of their patients,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Department of Justice and its agency partners are committed to enforcing laws prohibiting illegal financial arrangements that may distort health care decision-making and drive up costs to federal health care programs and patients.”
In connection with the False Claims Act settlement, BioReference and OPKO have also entered into a five-year Corporate Integrity Agreement with the U.S. Department of Health and Human Services, Office of Inspector General, which provides for periodic reviews of BioReference’s processes, policies, and transactions for compliance with the Anti-Kickback Statute and the Stark Law by an Independent Review Organization.
“This settlement is a warning to laboratories that think they can boost their profits by entering into improper financial arrangements with referring physicians,” said Special Agent in Charge Phillip M. Coyne of the U.S. Department of Health and Human Services, Office of Inspector General. “Working with our law enforcement partners, we will continue to crack down on such deals, which work to undermine impartial medical judgement, drive up health care costs, and corrode the public’s trust in the health care system.”
“Laboratories that scheme to enrich their businesses through health care fraud—such as by paying kickbacks—drive up health care costs for everyone,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “This settlement shows how seriously the FBI takes its responsibility to weed them out, and we’d also like to thank the whistleblower in this case for helping us ensure these entities are held accountable.”
“When health care companies pay unlawful remuneration to physicians and submit false claims for improper referrals, they undermine the integrity of TRICARE and place an unnecessary financial burden on the program,” stated Special Agent in Charge Patrick J. Hegarty of the Defense Criminal Investigative Service, the law enforcement arm of the Department of Defense Office of Inspector General. “The settlement agreement announced today demonstrates our ongoing commitment to work with our law enforcement partners to investigate healthcare fraud and protect TRICARE, the healthcare system for military members and their dependents.”
The False Claims Act allegations being resolved were originally brought in a lawsuit filed by a whistleblower under the qui tam provisions of the False Claims Act. Under those provisions, a private party can file an action on behalf of the government and share in any recovery. In connection with today’s settlement, the whistleblower will receive 17 percent of the recovery.
Under the settlement, the defendants will also pay approximately $145,000 to the Commonwealth of Massachusetts and the State of Connecticut to resolve alleged violations of their respective state False Claims Acts.
U.S. Attorney Rollins, HHS-OIG SAC Coyne, FBI SAC Bonavolonta and DCIS SAC Hegarty made the announcement today. Assistant U.S. Attorneys Alexandra Brazier and Charles B. Weinograd of Rollins’s Affirmative Civil Enforcement Unit, and Trial Attorney Douglas Rosenthal of the Justice Department’s Civil Division, Commercial Litigation Branch, handled the matter.
BioReference Laboratories and Parent Company Agree to Pay $9.85 Million to Resolve False Claims Act Allegations of Illegal Payments to Referring PhysiciansRead the Press Release
BioReference Health LLC, formerly known as BioReference Laboratories, Inc., (BioReference), and OPKO Health, Inc. (OPKO) have agreed to pay $9.85 million to resolve alleged violations of the False Claims Act arising from BioReference’s payment of above-market rents to physician landlords for office space in order to induce referrals from those physicians to BioReference. BioReference, a subsidiary of OPKO, is headquartered in New Jersey and is one of the largest clinical laboratories in the United States.
“The integrity of federal health care programs depends on providers making decisions based on the interests of their patients,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Department of Justice and its agency partners are committed to enforcing laws prohibiting illegal financial arrangements that may distort health care decision-making and drive up costs to federal health care programs and patients.”
BioReference and OPKO have agreed to pay $9.85 million to resolve allegations that, between January 2013 and March 2021, BioReference made lease payments to physicians and physician groups for the rental of office space for amounts that exceeded fair market value, in violation of the Physician Self‑Referral Law and the Anti-Kickback Statute. The Physician Self‑Referral Law, commonly known as the Stark Law, prohibits a health care provider from billing for certain services referred by physicians with whom the provider has a financial relationship, unless that relationship satisfies one of the law’s statutory or regulatory exceptions. The Anti‑Kickback Statute prohibits offering or paying remuneration to induce the referral of items or services covered by Medicare, Medicaid and certain other federally funded programs. Both the Stark Law and the Anti-Kickback Statute are intended to ensure that medical judgments are not compromised by improper financial inducements.
As part of today’s settlement, BioReference admitted that it rented the office space from the specified physician practices for Patient Service Centers (PSCs), where patients could have their blood samples taken. In calculating payments under certain PSC lease arrangements, BioReference inaccurately measured the amount of space BioReference would use exclusively and included a disproportionate share of common spaces. BioReference analyzed referrals from nearby health care providers — including physician-lessors — when deciding whether to open, maintain or close PSCs. Following OPKO’s acquisition of BioReference, the companies conducted multiple internal audits that showed that the payments to the specified physician-lessors exceeded fair market value. BioReference did not report or return any overpayments to federal health care programs.
“Medical decisions by doctors should be based on what is best for each patient, not a doctor’s personal financial interest,” said U.S. Attorney Rachael S. Rollins for the District of Massachusetts. “When companies violate the federal health care laws that are meant to protect patients, health care costs for hard working people increase. We will continue to find fraud and use the False Claims Act to make companies that break the law pay back the taxpayers they defrauded as well as pay a financial price for their misconduct.”
In connection with the False Claims Act settlements, BioReference has also entered into a “Corporate Integrity Agreement” with the Department of Health and Human Services, Office of Inspector General (HHS-OIG).
“This settlement is a warning to laboratories that think they can boost their profits by entering into improper financial arrangements with referring physicians,” said Special Agent in Charge Phillip M. Coyne of HHS-OIG. “Working with our law enforcement partners, we will continue to crack down on such deals, which work to undermine impartial medical judgement, drive up health care costs, and corrode the public’s trust in the health care system.”
“Laboratories that scheme to enrich their businesses through health care fraud — such as by paying kickbacks — drive up health care costs for everyone,” said Special Agent in Charge Joseph R. Bonavolonta of the FBI Boston Division. “This settlement shows how seriously the FBI takes its responsibility to weed them out, and we’d also like to thank the whistleblower in this case for helping us ensure these entities are held accountable.”
“When health care companies pay unlawful remuneration to physicians and submit false claims for improper referrals, they undermine the integrity of TRICARE and place an unnecessary financial burden on the program,” stated Special Agent in Charge Patrick J. Hegarty of the Defense Criminal Investigative Service, the law enforcement arm of the Department of Defense Office of Inspector General. “The settlement agreement announced today demonstrates our ongoing commitment to work with our law enforcement partners to investigate health care fraud and protect TRICARE, the health care system for military members and their dependents.”
The settlement resolves allegations that were originally brought in a lawsuit filed by Jean Marie Crowley, a former employee at BioReference and OPKO, under the qui tam or whistleblower provisions of the False Claims Act. Under those provisions, a private party can file an action on behalf of the government and share in any recovery. Ms. Crowley will receive approximately $1.7 million as her share of the recovery in this case. The qui tam case is captioned United States ex rel. Crowley v. BioReference Laboratories, Inc. and OPKO Health, Inc., Civil Action No. 19-CV-10981-WGY (D. Mass.). Under the settlement, defendants will also pay the Commonwealth of Massachusetts $141,041 and the State of Connecticut $5,001 to resolve alleged violations of their respective state False Claims Acts.
The investigation was conducted by the Civil Division, Commercial Litigation Branch, Fraud Section, of the Department of Justice and the U.S. Attorney’s Office for the District of Massachusetts with assistance from HHS-OIG and Office of the General Counsel, the Department of Defense Office of Inspector General and the FBI.
The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Berkeley County woman guilty of firearms chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Taylor Dawn Marlow, of Martinsburg, West Virginia, has admitted to a firearms charge, United States Attorney William Ihlenfeld announced.
Marlow, 29, pleaded guilty today to one count of “Aiding and Abetting False Statement During Purchase of Firearm.” Marlow admitted to working with another to illegally purchase a .380 caliber pistol from a licensed dealer in Berkeley County in May 2021.
Marlow faces up to 10 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, & Explosives investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Albuquerque man indicted for tax evasion and false statementRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced that Arturo Archuleta was arraigned on July 13 on an indictment charging him with five counts of attempting to evade or defeat taxes and one count of false statements relating to healthcare matters. Archuleta, 50, of Albuquerque, will remain on conditions of release pending trial.
A federal grand jury returned a superseding indictment on June 15. According to the indictment, from 2014 to 2018, Archuleta worked as an office manager at ABQ Injury Clinic in Albuquerque. During that time, Archuleta allegedly attempted to conceal taxable income from the IRS. Archuleta allegedly made false entries and altered accounting records of ABQ Injury Clinic, causing the clinic not to file Form 1099s and Form W-2s recording his income. Archuleta also allegedly used cash and a nominee bank account under a fictitious name to avoid scrutiny.
The indictment also alleges that on March 27, 2018, Archuleta made false statements, claiming that he was homeless and that he had zero monthly income, in connection with the delivery of and payment for healthcare benefits, items and services involving Centennial Care and United Healthcare. Centennial Care operates Medicaid in New Mexico through managed care organizations, including United Healthcare.
An indictment is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Archuleta faces up to five in prison for attempting to evade or defeat taxes and up to five years in prison for false statements relating to healthcare matters.
The FBI investigated the healthcare component of this case, with IRS Criminal Investigation investigating tax evasion. Assistant United States Attorney Taylor F. Hartstein is prosecuting the case.
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Wednesday 13 July 2022
Woman Pleads Guilty to Multimillion-Dollar COVID-19 Loan Fraud ConspiracyRead the Press Release
NEWPORT NEWS, Va. – A Stockbridge, Georgia, woman pleaded guilty yesterday to conspiring with others to submit millions of dollars in fraudulent disaster-related loan applications in connection with the COVID-19 pandemic.
According to court documents, Nikki Mitchum, 44, participated in a conspiracy to obtain disaster-related loan benefits in the form of Small Business Administration (SBA) sponsored Economic Injury Disaster loans (EIDL) and Paycheck Protection Program (PPP) loans. These programs, initiated and expanded under the Cares Act, are designed to provide support for small businesses for expenses related to the COVID-19 pandemic. Nikki Mitchum and her co-conspirators, including Malik Mitchum, 26, and Jenna Mitchum, 25, of Hampton, submitted fraudulent claims for government benefits in the name of businesses that they falsely represented were struggling during the COVID-19 pandemic.
Between March 2020 and May 2021, 12 fraudulent applications for pandemic-related loan benefits were submitted using Nikki Mitchum’s information that contained false statements and misrepresentations about their income, employment, and claimed business entities. Nikki Mitchum is further linked to four other fraudulent loan applications by the IP address used to submit the applications. Finally, Nikki Mitchum is connected with 17 fraudulent loan applications submitted by other co-conspirators who paid kickbacks in an approximate amount of $204,000 to the companies owned and operated by Nikki Mitchum.
Malik and Jenna Mitchum previously pleaded guilty and were linked to more than $5.1 million in intended loss and caused more than $1.4 million in actual loss to the United States and participating financial institutions. Nikki Mitchum has agreed to pay more than $1.3 million in restitution to the United States for actual losses from her role in the conspiracy and is linked with intended fraud loss of more than $4 million.
Nikki Mitchum pleaded guilty to conspiracy to commit wire fraud affecting a financial institution and is scheduled to be sentenced on December 7. She faces a maximum penalty of 30 years in prison. Malik and Jenna Mitchum pleaded guilty to conspiracy to commit wire fraud affecting a financial institution. They both face a maximum penalty of 30 years in prison. Malik and Jenna Mitchum are scheduled to be sentenced on July 29. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after U.S. Magistrate Judge Lawrence R. Leonard accepted the plea.
Assistant U.S. Attorney D. Mack Coleman is 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. 4:21-cr-85 and 4:22-cr-47.
Wilmington Man Receives More Than 13 Years for Drug Conspiracy and Robbery OffensesRead the Press Release
WILMINGTON, N.C. – A Wilmington man was sentenced today to 164 months in prison for conspiracy to distribute 50 grams or more of a mixture and substance containing methamphetamine and interference with commerce by robbery and aiding and abetting. On October 5, 2021, Frank Anthony Capuano pled guilty to the charges.
According to court documents and other information presented in court, on June 4, 2019, officers with the Wilmington Police Department responded to an armed robbery at a residence located in Wilmington. The investigation revealed that Capuano and another individual committed the robbery and marijuana vape pens were stolen during the robbery. Detectives also learned Capuano was distributing methamphetamine in New Hanover County and southeastern North Carolina and law enforcement conducted several controlled purchases of methamphetamine from Capuano. On September 17, 2019, Capuano was arrested, and a search warrant was executed at his house where officers located more than four-thousand dollars ($4,000.00). The investigation revealed that Capuano is responsible for distributing 460 grams of methamphetamine between March 2019 and September 2019 in southeastern North Carolina.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Richard E. Myers II. The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Wilmington Police Department, the New Hanover County Sheriff’s Office, and the Pender County Sheriff’s Office investigated the case and Assistant U.S. Attorney Bryan Stephany and Special Assistant United States Attorney William Van Trigt prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), 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.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:20-cr-00073-M.
Wildwood man charged after authorities found at least 400 pounds of methamphetamineRead the Press Release
ST. LOUIS – A man from Wildwood, Missouri has been caught with at least 400 pounds of methamphetamine, federal charging documents allege.
Kolby L. Kristiansen, 68, was indicted by a grand jury Wednesday with possession with the intent to distribute methamphetamine.
Charging documents say that investigators located a storage unit in St. Louis County that was being used by Kristiansen to store methamphetamine. On June 29, a drug-sniffing K9 alerted to Kristiansen’s storage unit, and on July 1, investigators executed a federal search warrant there, finding three plastic containers containing suspected methamphetamine. The containers, including packaging materials, weighed 476 pounds, charging documents allege.
“Methamphetamine has a street value of about $2,500 to $3,500 per pound at the mid-level drug distribution level where this drug was seized,” said Special Agent in Charge Michael A. Davis, head of DEA’s St. Louis Division. “That makes this seizure valued at more than $1 million, the largest meth seizure in this division’s history. It’s a testament to the dedicated effort of our agents at stopping this poison from reaching our communities.”
Kristiansen was recently released from federal prison after being found guilty of similar charges stemming from a 2014 case.
Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The case is being investigated by the Drug Enforcement Administration, the Illinois State Police and the Metropolitan Enforcement Group of Southern Illinois.
Photo courtesy of the Drug Enforcement Administration Three containers containing suspected methamphetamine and packaging materials and totaling 476 pounds were found in a St. Louis County storage unit on July.Watertown Man Sentenced for Drug and Firearms ConvictionsRead the Press Release
SYRACUSE, NEW YORK – George D. Robinson, age 38, of Watertown, New York, was sentenced yesterday to serve 52 months in federal prison for his convictions for possession with intent to distribute methamphetamine, and possession of firearms by a convicted felon, announced United States Attorney Carla B. Freedman; Acting Special Agent in Charge Matthew Scarpino, Homeland Security Investigations (HSI), Buffalo, New York Field Office; and Jefferson County District Attorney Kristyna Mills.
Robinson was arrested on February 5, 2021, in Watertown following the execution of a search warrant at his residence that resulted in the seizure of a quantity of methamphetamine and several handguns. He was previously convicted of conspiracy to possess with intent to distribute methamphetamine in United States District Court for the Northern District of New York in 2003 and served 24-months in federal prison, making it illegal for him to possess firearms as a prior convicted felon.
At yesterday’s sentencing, Robinson was also ordered to serve a 4-year term of supervised release following his 52-month prison sentence.
This case was investigated by the Metro-Jefferson Drug Task Force, consisting of Detectives from the City of Watertown Police Department, Detectives from the Jefferson County Sheriff’s Office, Investigators from the Jefferson County District Attorney’s Office, Agents of the United States Border Patrol, and Special Agents from the United States Department of Homeland Security-Homeland Security Investigations (HSI), with assistance from the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and was prosecuted by Assistant U.S. Attorney Richard Southwick.
Urbana, Illinois, Woman Sentenced to Six Months in Prison for Transferring Firearms to Felon ParamoursRead the Press Release
URBANA, Ill. – An Urbana, Illinois, woman, Lawanda Rogers (formerly Moore), age 31, of the 1100 block of East Willard Street, was sentenced on July 12, 2022, to six months in prison for unlawfully transferring firearms to prohibited persons.
At the sentencing hearing, the government detailed how four firearms lawfully purchased by Moore were ultimately seized from two felons during subsequent criminal investigations. Moore’s husband possessed one firearm that had been purchased by Moore. The firearm was seized from a hotel room along with various narcotics in October 2015. Moore’s boyfriend was in possession of three firearms that were seized in November 2018 and June 2019 that had similarly been purchased by Moore. The three firearms seized from Moore’s boyfriend were confiscated by police during drug investigations, with one being used in a shooting in Champaign.
At the hearing, U.S. District Judge Michael M. Mihm emphasized the seriousness of Moore’s conduct, noting the dangerousness of buying firearms to then provide them to those unable to lawfully purchase firearms.
Moore was sentenced following a guilty plea. Unlawful transfer of a firearm to a prohibited person carries a statutory penalty of up to ten years in prison.
“This case demonstrates clearly that those who purchase firearms for others will be held accountable,” said Assistant U.S. Attorney Rachel Ritzer. “This sentence is a step forward in the fight against gun violence in our communities and sends a message to others engaged in the same dangerous behavior that it will not be tolerated.”
The Bureau of Alcohol, Tobacco, Firearms, and Explosives; Champaign Street Crimes Task Force; and Champaign Police Department investigated the case. Assistant U.S. Attorney Ritzer represented the government in the prosecution.
United States Files Claims Alleging Fresenius Vascular Care, Inc. Defrauded Medicare and Other Healthcare Programs by Billing for Unnecessary Procedures Performed on Dialysis PatientsRead the Press Release
The United States filed a civil complaint yesterday in federal court in Brooklyn against Fresenius Vascular Care, Inc. (“Fresenius”) alleging that the company performed unnecessary procedures on dialysis patients at nine centers across New York City and Long Island, and billed the procedures to Medicare, Medicaid, the Federal Health Benefits Program and TRICARE. The complaint seeks damages and penalties under the False Claims Act.
The filing was announced by Breon Peace, United States Attorney for the Eastern District of New York, and Scott J. Lampert, Special Agent-in-Charge, U.S. Department of Health and Human Services, Office of Inspector General’s Office of Investigations (HHS-OIG).
“The conduct alleged in this case is egregious, as Fresenius not only defrauded federal healthcare programs but also subjected particularly vulnerable people to medically unnecessary procedures,” stated United States Attorney Peace. “This Office will hold medical providers accountable for practices that needlessly expose patients to harm for financial gain at taxpayer expense.”
Mr. Peace also expressed his thanks to the Federal Bureau of Investigation, New York Field Office, the United States Office of Personnel Management, and the United States Department of Defense for their assistance with the investigation.
“The alleged conduct by Fresenius unnecessarily compromised patient care and undermined the financial integrity of federal health care programs,” stated HHS-OIG Special Agent-in-Charge Lampert. “Along with our law enforcement partners, HHS-OIG is committed to protecting beneficiaries and taxpayers from such abusive practices.”
As alleged in the complaint, from about January 1, 2012 through June 30, 2018, Fresenius routinely performed certain procedures on patients with End Stage Renal Disease (ESRD) who were receiving dialysis, without sufficient clinical indication that the patients needed the procedures. These interventions included fistulagrams, which are radiological procedures in which dye is injected into the patient’s vein or artery to visualize the port and surrounding blood vessels, and angioplasties, in which wires and balloons are inserted into veins or arteries that have narrowed to restore the patient’s blood flow. Fresenius knowingly subjected ESRD patients—who included elderly, disadvantaged minority, and low-income individuals—to these procedures to increase its revenues.
The government filed its complaint in an ongoing action commenced pursuant to the qui tam provisions of the False Claims Act, United States ex rel. Pepe and Sherman v. Fresenius Medical Holdings, Inc., et al., No. 14-CV-3505 (ERK). The case is being handled by Assistant U.S. Attorneys Jolie Apicella and Anjna Kapoor, and Special Assistant U.S. Attorney Mary Ellen Buntin of the Office’s Civil Division.
Defendants operated vascular access centers at the following locations during the relevant period:
- American Access Care of Bellmore (now “American Access Care Nassau County”), 250 Pettit Avenue, Suite 2, Bellmore, NY 11710
- American Access Care Brooklyn, 577 Prospect Avenue Lower Level, Brooklyn, NY 11215
- American Access Care of New York (now “American Access Care Manhattan”), 403 E. 91st Street, Floor 2, New York, NY 10128
- American Access Care Queens, 176-60 Union Turnpike #130, Suite 130, Flushing, NY 11366
- American Access Care Suffolk County, 32 Central Avenue, Hauppauge, NY 11788
- American Access Care Bronx, 1200 Waters Place N. Lobby, Suite M 115, Bronx, NY 10461
- Saqib Chaudhry, MD – Flushing, 176-60 Union Turnpike Utopia Center, Suite 145, Flushing, NY 11366
- Saqib Chaudhry, MD – Roslyn, 1044 Northern Boulevard, Suite 302, Roslyn, NY 11676 (no longer operating)
- Verrazano Vascular Associates at Access Care Physicians, 2025 Richmond Avenue, Suite 1LL, Staten Island, NY 10314
U.S. Attorney’s Office partners with City of Detroit to host Peacenic in O’Hair Park.Read the Press Release
DETROIT - More than thirty community organizations and state, and federal law enforcement agencies participated in the first Peacenic held in O’Hair Park on Saturday, July 9 from 11-2.
The event was part of the Safe Summer Streets Initiative where federal law enforcement agencies including the U.S. Attorney’s Office, the Federal Bureau of Investigation (FBI), and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) partnered this summer with the City of Detroit, Detroit Police Department, and the Wayne County Prosecutor’s Office to strategically focus resources on the most dangerous neighborhoods in the city, which are two sections in the City’s 8th precinct and two sections in the 9th precinct. The strategy is designed to significantly reduce violence by narrowly focusing on those who are committing violence and to give these neighborhoods back to the majority of residents who want peace. The City of Detroit committed to address blight, ensure access to city services, and replenish community resources in the neighborhoods that were targeted for enforcement. The partners also agreed to hold community engagement events, Peacenics, where residents could have fun, engage with law enforcement, and obtain resources to improve the quality of their lives.
Saturday’s Peacenic held in O’Hair Park in the 8th Precinct was the first of these community engagement events. It featured vendors offering a variety of resources including job training, literacy programs, mental health and medical screenings, utility assistance, educational and vocational opportunities, tutorial and career development programs, and more. Several law enforcement agencies were also present to engage with the community and recruit to fill vacancies in their organizations. The event also included a panel discussion of Returning Citizens who discussed how they could collaborate to reduce violence in their communities. In addition to the resources, there were bounce houses, face painting, cookie decorating and free throw tournament for kids. Hooper from the Detroit Pistons also made an appearance and took photographs with attendees. Adults were also able to join in the fun with Hustle Dance lessons, chess games, and a Spades tournament. There was also pizza, hot dogs, sliders, and ice cream available for residents at the Peacenic.Gail Tubbs, President of the O’Hair Park Neighborhood Association, stated "The message of unity was on full display this past Saturday, July 9th at O'Hair Park. The community came together with law enforcement agencies to bring about a culture of peace in our neighborhoods and in the city of Detroit.”
Alvin R. Stokes, President, Citywide Citizens Police Community Relations, stated, “I would like to take this opportunity to thank U.S. Attorney Mrs. Dawn Ison and her team, for the great event that was held July 9th, 2022, at O'Hair park in the 8th precinct. With the help of several agencies, a great time was had by all. I applaud the Attorney and her team for showing the community the love and support that we need. It is such a pleasure to see the community and other agencies coming together for a good cause. I would love to see more.”
“The Peacenic was a day of empowerment filled with life-saving resources. Free food, job opportunities and plenty of activities for the family. Can’t wait for the next one," said Darryl Woods, Sr., President and CEO, Fighting the Good Fight.
The second Peacenic will be held on July 17, 2022, from 11-4 at Heilmann Park, which is in the 9th Precinct and will feature most of the same community and law enforcement partners. The Peacenic is designed for the residents of the 9th Precinct. Media is welcome to attend the event and should contact Gina Balaya at the above email address or contact her directly at (313)226-9758.
Participating Organizations
Bates Academy • Brilliant Detroit • Detroit at Work • Detroit Chess Club • Detroit Health Department • Detroit Public Schools Community District • Detroit Reconnect • Detroit Training Center • Detroit Wayne Integrated Health Network • Downtown Boxing Gym • Drug Enforcement Administration • Goodwill Industries • Homeland Security • I Teach Chess • Matrix Human Services • Michigan Army National Guard • Michigan Department of Corrections • Michigan Secretary of State • Michigan State Police • O’Hair Park Neighborhood Association • Project Clean Slate • Pure Heart Foundation • Team Wellness Center • 27th Letter Books • United States Marshals Services • Wayne County Community College District • Wayne County Sheriff’s Department •Wayne Metro Community Action Agency • Youthbuild
U.S. Attorney’s Office Reaches Settlement with Tattoo Studio for Alleged HIV DiscriminationRead the Press Release
SAN JOSE—The U.S. Attorney’s Office for the Northern District of California announced today that the United States has resolved a claim that Luna Tattoo Studio discriminated against a person with HIV in violation of the Americans with Disabilities Act (ADA).
Luna is a tattoo studio located in San Jose, California. The Department of Justice received a complaint from a prospective customer who is HIV-positive. The Complainant alleged that she was refused service by a tattoo artist who worked at Luna.
Title III of the ADA prohibits public accommodations, such as tattoo parlors, from excluding people with disabilities, including people with HIV, from enjoying the services they provide. In this case, the settlement agreement includes key findings from the Department of Justice’s investigation of the Complainant’s allegations. Specifically, the Department of Justice found that in August of 2020, the Complainant made an appointment to receive a tattoo at Luna. After informing the tattoo artist at Luna of her HIV-positive status, the prospective customer first was told that the artist would need to speak with the owner about the situation, and later, that the appointment was cancelled altogether. In refusing to provide service, the tattoo artist told the Complainant that the possibility of the tattoo artist performing tattoo services on Complainant made other artists at Luna Tattoo “very uncomfortable.”
To resolve the complaint, Luna agreed to pay $7,000 in compensatory damages to the victim. Luna also agreed, among other things, to develop a non-discrimination policy and to provide training to its employees for a two-year period.
The United States recognizes Luna’s cooperation in reaching this resolution.
For more information regarding the Department of Justice’s efforts to combat HIV discrimination, please visit https://www.ada.gov/hiv/ada_hiv_discrimination.htm.
Assistant U.S. Attorney David DeVito handled the matter for the government, with assistance from Lillian Do.
U.S. Attorney Scott Erik Asphaug Announces DepartureRead the Press Release
PORTLAND, Ore.—Scott Erik Asphaug announced today that, effective July 17, 2022, he will step down as U.S. Attorney for the District of Oregon. Asphaug will become the Justice Department’s Resident Legal Advisor in Nairobi, Kenya, where he will be detailed to the Criminal Division’s Office of Overseas Prosecutorial Development, Assistance and Training (OPDAT) to work with Kenyan counterparts on justice sector issues.
Marco A. Hernández, Chief U.S. District Court Judge for the District of Oregon, also announced today that he will appoint Natalie K. Wight to serve as U.S. Attorney for the District of Oregon in an interim capacity pending her confirmation to the position by the U.S. Senate. On June 6, 2022, President Joseph R. Biden Jr. nominated Wight to serve as Oregon’s next Senate-confirmed U.S. Attorney, vice Billy J. Williams who resigned in February 2021.
Asphaug, a 17-year veteran of the Department of Justice, has served as U.S. Attorney for the District of Oregon since February 2021. Prior to being appointed U.S. Attorney, he held several leadership positions in the District of Oregon including First Assistant U.S. Attorney and Executive Assistant U.S. Attorney.
U.S. Attorney Chung Announces HIDTA Designation for Lawrence CountyRead the Press Release
PITTSBURGH – United States Attorney Cindy K. Chung announced today that Lawrence County has been officially designated as a High Intensity Drug Trafficking Area (HIDTA) by the White House’s Office of National Drug Control Policy. Lawrence joins five other western Pennsylvania counties - Allegheny, Beaver, Washington, Westmoreland, and Erie - in receiving dedicated federal resources to coordinate federal, state, and local governments to fight drug trafficking and abuse.
“Lawrence County citizens will benefit significantly from HIDTA designation and the critical resources and support that brings to disrupt and dismantle major drug trafficking organizations,” said U.S. Attorney Chung. “We will use these crucial resources to attack the opioid crisis, to curtail cocaine trafficking, and to prevent the widespread distribution of methamphetamine, which has become a serious problem in Western Pennsylvania.”
According to U.S. Attorney Chung, Lawrence County is being utilized by multi-jurisdictional drug traffickers as a destination for the large-scale distribution of controlled substances into Lawrence and the surrounding counties in Pennsylvania and Ohio. The large number of illegal drug users, the network of bisecting highways and interstates, and a perceived lack of sanctions against drug traffickers has made Lawrence County an easy and attractive target for Drug Trafficking Organizations.
“The established cooperative partnership with the U.S. Attorney’s Office under the leadership of U.S. Attorney Cindy Chung continues to benefit the citizens of Lawrence County and western Pennsylvania,” said Lawrence County District Attorney Joshua Lamancusa. “Our designation as a HITDA community will provide additional resources, expand the reach of law-enforcement and ensure that traffickers of heroin, cocaine, and fentanyl are attacked at their sources and distribution points. I look forward to building upon our cooperative efforts to make Lawrence County a safer place.”
“The designation of Lawrence as a HIDTA county will bring federal funding, increased sharing of intelligence, analytical support, enhanced training opportunities, and a cooperative effort between the local, state and federal partners,” said Derek M. Siegle, Executive Director of the Ohio HIDTA.
U.S. Attorney Chung thanked Pennsylvania’s United States Senators Robert Casey and Pat Toomey, Governor Tom Wolf, Lawrence County District Attorney Joshua Lamancusa, Homeland Security Investigations, the Pennsylvania State Police, the Drug Enforcement Administration, the U.S. Postal Inspection Service, the Federal Bureau of Investigation, as well as local law enforcement who supported and worked in concert to receive this designation.
Lawrence County is located on the Pennsylvania-Ohio border in the far western part of Pennsylvania, about halfway between the northern and southern borders of Pennsylvania. It covers 363 square miles and has a population of 86,184.
Lawrence County joins the program’s Ohio HIDTA region.
Two Men Sentenced in Child Pornography CasesRead the Press Release
Two men have been sentenced this week in federal court after being convicted of child pornography charges.
“Timothy Gregston and Earl Morrow repeatedly viewed criminal material depicting the rape and assault of children,” said U.S. Attorney Clint Johnson. “The criminal acts of possessing, receiving and distributing child sexual abuse material revictimizes those individuals who have suffered tremendous physical and psychological trauma as children. My office and our local, state, federal, and tribal law enforcement partners will bring to account those who exploit children in such a manner.”
“The combined jail time of 315 months for these deviant child predators will help bring a sense of closure to the victims they abused through the viewing and distribution of thousands of repeated images and video depictions of rape and child molestation," said Christopher Miller, acting Special Agent in Charge HSI Dallas. "Let this stand as a warning to individuals that seek to harm our children that HSI will never relent in our efforts to protect our most vulnerable citizens from sexual abuse."
Timothy Maxey Gregston 36, of Sapulpa, was sentenced by U.S. District Judge Claire V. Eagan to 180 months in federal prison followed by a lifetime of supervised release. He was further ordered to pay $18,000 in restitution to the victims who were depicted in the child sexual abuse material.
Gregston pleaded guilty on Jan. 1, 2022. According to the plea agreement, he admitted that from Oct. 3, 2021, to Oct. 28, 2021, he knowingly received and distributed child sexual abuse material. He further admitted to possessing multiple visual depictions of children engaged in sexually explicit conduct, including children under the age of 12. On Oct. 28, 2021, special agents from Homeland Security Investigations served numerous search warrants on Gregston’s home. Agents recovered 256 images and 26 videos of child sexual abuse material, some depicting sadistic sexual acts committed on toddlers.
Gregston committed the crime after he had already been convicted of child sex crimes in Rogers County District Court.
U.S. Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Alex M. Scott prosecuted the case.
Also sentenced this week was defendant Earl Hardy Morrow, 40, of Broken Arrow. U.S. District Judge Daniel D. Crabtree sentenced Morrow to 135 months in federal prison followed by 10 years of supervised release. He was further ordered to pay $15,000 in restitution the victims depicted in the child sexual abuse material. In November 2021, Morrow was convicted at trial of distribution and receipt of child pornography and possession of child pornography
According to court documents and evidence presented at trial, Morrow distributed and received child pornography via electronic means on Feb. 20, 2020,. From Nov. 5, 2019, to Feb. 27, 2020, Morrow further possessed visual depictions involving prepubescent minors and minors who were under 12 years of age.
On Feb. 20, 2020, multiple files of child sexual abuse material were sent to the Tulsa Police Department’s Cyber Crimes Unit via the BitTorrent network from an IP address that was later tracked to a Broken Arrow user. The final torrent file distributed to Tulsa Police contained multiple video files depicting the sexual abuse of children.
Officers served a search warrant on the address where Morrow resided on Feb. 27, 2020. During the search, Morrow told officers that he used BitTorrent on his computer and that he had illegal files on the computer.
During the forensic extraction and review of Morrow’s various computers and thumb drives, officers discovered approximately 4,222 images and 248 videos of child sexual abuse material.
The Tulsa Police Department led the investigation with assistance from Homeland Security Investigations. Assistant U.S. Attorneys Christopher J. Nassar, Nathan E. Michel, and Stacey P. Todd are prosecuted the case. Judge Crabtree is a visiting judge from the District of Kansas. See conviction press release here.
Two Foreign Nationals Plead Guilty to Trafficking Ivory and Rhinoceros Horn from the Democratic Republic of the CongoRead the Press Release
Herdade Lokua, 34, and Jospin Mujangi, 32, of Kinshasa, Democratic Republic of Congo (DRC), pleaded guilty yesterday in federal court in Seattle to conspiracy and Lacey Act charges. They were indicted on Nov. 3, 2021, on 11 counts relating to trafficking wildlife from DRC to Seattle. The court scheduled the sentencing hearing for Nov. 1.
In pleading guilty, both defendants admitted that beginning in November 2019, they agreed to smuggle elephant ivory, white rhinoceros horn and pangolin scales to the United States. They worked with a middleman to negotiate the sales and coordinate imports to Seattle. Between August and September 2020, Lokua and Mujangi shipped three packages containing approximately 49 pounds of ivory from Kinshasa. They arranged for the ivory to be cut into smaller pieces and painted black; the packages were then falsely labeled as containing wood.
Lokua and Mujangi acknowledged that in June 2021, they sent nearly five pounds of rhinoceros horn to Seattle using a similar scheme. Lokua discussed sending two tons of ivory and one ton of pangolin scales concealed in a shipping container. He stated that payment would have to be routed through a bank account in China before they could access the cash in Kinshasa.
Lokua and Mujangi admitted that they traveled to Seattle on Nov. 2, 2021, to meet with prospective buyers who were actually undercover federal agents. After negotiating the details of a large shipment of ivory, rhinoceros horn and pangolin scales, agents arrested both men in Edmonds, Washington.
The investigation was part of “Operation Kuluna,” an international operation conducted between the Office of Homeland Security Investigations (HSI) in Seattle, the Government of the DRC, the Department of State's Diplomatic Security Service (DSS) and the U.S. Embassy in Kinshasa. After the arrests, the task force in DRC acted on information provided by HSI-Seattle to seize 2,067 pounds of ivory and 75 pounds of pangolin scales in Kinshasa worth approximately $3.5 million, all contraband related to wildlife trafficking.
The Lacey Act is the nation’s oldest wildlife trafficking statute and prohibits, among other things, falsely labeling shipments containing wildlife. The United States, DRC and approximately 181 other countries are signatories to the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). CITES is an international treaty that restricts trade in species that may be threatened with extinction. CITES has permit requirements for protected wildlife, and the indictment alleges that the defendants did not obtain any of the necessary papers or declarations from DRC or the United States.
The CITES treaty has listed the white rhinoceros (Ceratotherium simum) as a protected species since 1975 and the African elephant (Loxodanta africana) since 1977. All species of pangolin were added to the CITES appendix with the greatest level of protection in 2017. All three mammals are threatened by poaching and habitat loss.
HSI-Seattle conducted the investigation. The government is represented by Senior Trial Attorneys Patrick M. Duggan and Ryan C. Connors of the Environment and Natural Resources Division’s Environmental Crimes Section with assistance from the U.S. Attorney’s Office in the Western District of Washington.
Two Foreign Nationals Plead Guilty to Trafficking Ivory and Rhinoceros Horn from the Democratic Republic of the CongoRead the Press Release
Seattle – Herdade Lokua, 34, and Jospin Mujangi, 32, of Kinshasa, Democratic Republic of Congo (DRC), pleaded guilty yesterday in federal court in Seattle to conspiracy and Lacey Act charges. They were indicted on Nov. 3, 2021, on 11 counts relating to trafficking wildlife from DRC to Seattle. The court scheduled the sentencing hearing for Nov. 1.
In pleading guilty, both defendants admitted that beginning in November 2019, they agreed to smuggle elephant ivory, white rhinoceros horn and pangolin scales to the United States. They worked with a middleman to negotiate the sales and coordinate imports to Seattle. Between August and September 2020, Lokua and Mujangi shipped three packages containing approximately 49 pounds of ivory from Kinshasa. They arranged for the ivory to be cut into smaller pieces and painted black; the packages were then falsely labeled as containing wood.
Lokua and Mujangi acknowledged that in June 2021, they sent nearly five pounds of rhinoceros horn to Seattle using a similar scheme. Lokua discussed sending two tons of ivory and one ton of pangolin scales concealed in a shipping container. He stated that payment would have to be routed through a bank account in China before they could access the cash in Kinshasa.
Lokua and Mujangi admitted that they traveled to Seattle on Nov. 2, 2021, to meet with prospective buyers who were actually undercover federal agents. After negotiating the details of a large shipment of ivory, rhinoceros horn and pangolin scales, agents arrested both men in Edmonds, Washington.
The investigation was part of “Operation Kuluna,” an international operation conducted between the Office of Homeland Security Investigations (HSI) in Seattle, the Government of the DRC, the Department of State's Diplomatic Security Service (DSS), and the U.S. Embassy in Kinshasa. After the arrests, the task force in DRC acted on information provided by HSI-Seattle to seize 2,067 pounds of ivory and 75 pounds of pangolin scales in Kinshasa worth approximately $3.5 million, all contraband related to wildlife trafficking.
The Lacey Act is the nation’s oldest wildlife trafficking statute and prohibits, among other things, falsely labeling shipments containing wildlife. The United States, DRC and approximately 181 other countries are signatories to the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). CITES is an international treaty that restricts trade in species that may be threatened with extinction. CITES has permit requirements for protected wildlife, and the indictment alleges that the defendants did not obtain any of the necessary papers or declarations from DRC or the United States.
The CITES treaty has listed the white rhinoceros (Ceratotherium simum) as a protected species since 1975 and the African elephant (Loxodanta africana) since 1977. All species of pangolin were added to the CITES appendix with the greatest level of protection in 2017. All three mammals are threatened by poaching and habitat loss.
HSI-Seattle conducted the investigation. The government is represented by Senior Trial Attorneys Patrick M. Duggan and Ryan C. Connors of the Environment and Natural Resources Division’s Environmental Crimes Section with assistance from the U.S. Attorney’s Office in the Western District of Washington.
Three South Carolina Men Are Sentenced to Prison for Defrauding Lowe's of More Than $450,000Read the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Max O. Cogburn Jr. sentenced to prison three South Carolina men for a scheme that defrauded Lowe’s of more than $450,000, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney King is joined in making this announcement by Ronnie Martinez, Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department.
Judge Cogburn ordered Bobby Cherry, 58, of Manning, South Carolina, to serve 41 months in prison and three years of supervised release. Russell Leroy Calvin, 43, of Sumter, South Carolina, was ordered to serve 33 months in prison and three years of supervised release, and Michael Marcel Montgomery, 48, also of Sumter, was sentenced to 27 months in prison, followed by three years of supervised release. In addition to the prison terms imposed, the defendants were ordered to pay more than $450,000 jointly and severally as restitution. All three defendants pleaded guilty to conspiracy to commit wire fraud.
According to filed documents and today’s sentencing hearings, from August 2019 to March 2020, Cherry, Calvin and Montgomery engaged in a conspiracy to defraud Lowe’s stores in the southeastern United States. The defendants and other co-conspirators created business accounts for fraudulent landscaping and home improvement companies at Lowe’s stores, passed fictitious and worthless checks to fund the fraudulent accounts, and then purchased expensive landscaping equipment, such as zero turn mowers, and other items using the account funds. In total, during the course of the scheme, the co-conspirators opened more than 30 such fraudulent business accounts which they used to obtain more than $450,000 in fraudulently purchased goods. During the scheme, the three defendants made purchases at local stores in Mecklenburg, Gaston, Union, Lincoln, Cleveland, and Iredell Counties in North Carolina, as well as stores in South Carolina and Georgia.
In making today’s announcement, U.S. Attorney King thanked HSI and CMPD for their investigation of the case.
Assistant United States Attorney William Bozin, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Taylor Man Sentenced to 25 Years in Prison for Sexual Exploitation of MinorsRead the Press Release
DETROIT – A Taylor man was sentenced today to 25 years in federal prison on charges of sexual exploitation of children and possession of child pornography, announced United States Attorney Dawn N. Ison.
Ison was joined in the announcement by Special Agent in Charge James A. Tarasca, Federal Bureau of Investigation, Detroit Division.
Kenneth Hartley, 53, was sentenced before United States District Judge Victoria Roberts.
During his plea hearing, Hartley admitted that in 2010 he pretended to be a teenage female on the Skype internet messaging platform and tricked a male minor born in 1995 into providing sexually explicit images of himself to Hartley. As part of his plea agreement, Hartley also acknowledged that he used the Kik social media application to obtain sexually explicit images of a 13-year-old male in 2014 and another 13-year-old male in 2015. In all, Hartley victimized over 100 minors over the course of a decade until law enforcement executed a search warrant at his residence in December 2020. Agents identified 29 of those victims, 17 of those victims were minors under 12 years of age at the time Hartley exploited them. Hartley’s youngest victim was eight. Hartley was found responsible for possessing 46,153 images of child pornography for the purposes of sentencing guidelines.
“This investigation and subsequent prosecution ended this offender’s decade-long sexual exploitation of children. This significant sentence demonstrates that those who seek to harm our children through online exploitation will be held responsible. We will continue to work to make the Internet a safer place for our children.” stated Dawn N. Ison, United States Attorney.
“In addition to possessing child pornography, Mr. Hartley actively created it for himself and others by exploiting vulnerable children around the world,” said James A. Tarasca, Special Agent in Charge of the FBI’s Detroit Division. “The FBI considers the investigation and prosecution of predators like this defendant to be of the highest priority. Today’s sentence serves as a warning to others like him the FBI will aggressively pursue anyone who victimizes and exploits children.”
The case was investigated by the Southeast Michigan Trafficking and Exploitation Crimes Task Force (“SEMTEC”) of the Federal Bureau of Investigation. case was prosecuted by Assistant United States Attorney Christopher Rawsthorne.
Student Who Hacked over a Dozen Email and Snapchat Accounts of Female Students from the University of Puerto Rico Pleads Guilty to CyberstalkingRead the Press Release
SAN JUAN, Puerto Rico – On July 13, 2022, Iván Santell-Velázquez pled guilty to cyberstalking before United States District Court Judge Silvia Carreño-Coll, in violation of 18 U.S.C. § 2261A(2), announced W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico.
According to the parties’ stipulation of facts, Santell-Velázquez, while a student at the University of Puerto Rico at Cayey, sent unauthorized emails to faculty, administration, and students under the moniker “Slay3r_r00t”. Santell targeted over 100 student email accounts and successfully broke into multiple university e-mail accounts, collecting personal information through phishing and spoofing schemes. In addition, between 2019 and 2021, Santell-Velázquez hacked into several female students’ Snapchat accounts, some of which contained nude images that he shared with third parties who published the images online.
After Santell-Velázquez broke into a victim’s Snapchat account, she began receiving harassing text messages with her intimate pictures. Nude photos stolen from the victim’s Snapchat account were posted on Twitter as well as on a Facebook page.
The plea agreement encompasses 15 female victims of Santell-Velázquez’s conduct, as well as the University of Puerto Rico.
“This individual engaged in phishing and spoofing schemes to steal information,” said U.S. Attorney Muldrow. “He harassed numerous women with the nude photos he stole from them, and in some cases, he published them. This case demonstrates the importance of safeguarding personal information and passwords, especially in response to suspicious e-mails and text messages.”
“Individuals who engage in this type of behavior know what they are doing is wrong and they know they are causing great harm to their victims. What I want everyone to know is that, it is not just wrong, it is a federal crime, and one that the FBI won’t tolerate.” said Joseph González, Special Agent in Charge of the FBI San Juan Field Office. “I want to urge everyone who has been a victim to this crime to report it immediately by calling 787-987-6500 or visiting tips.FBI.gov”.
Assistant U.S. Attorney Jeanette Collazo is in charge of the prosecution of the case. FBI Special Agent Christian Nieves of the San Juan Cyber Division was in charge of the investigation. Cyberstalking carries a maximum prison sentence of five years. The sentencing hearing is scheduled for October 12, 2022.
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Statement of U.S. Attorney Damian Williams on the Espionage Conviction of Ex-CIA Programmer Joshua Adam SchulteRead the Press Release
Joshua Adam Schulte was a CIA programmer with access to some of the country’s most valuable intelligence-gathering cyber tools used to battle terrorist organizations and other malign influences around the globe. When Schulte began to harbor resentment toward the CIA, he covertly collected those tools and provided them to WikiLeaks, making some of our most critical intelligence tools known to the public – and therefore, our adversaries. Moreover, Schulte was aware that the collateral damage of his retribution could pose an extraordinary threat to this nation if made public, rendering them essentially useless, having a devastating effect on our intelligence community by providing critical intelligence to those who wish to do us harm. Today, Schulte has been convicted for one of the most brazen and damaging acts of espionage in American history.
Springfield, Illinois, Man Sentenced to Six Months’ Home Confinement, Fined for COVID-19 Related FraudRead the Press Release
SPRINGFIELD, Ill. – A Springfield, Illinois man, Thalamus Alexander, Jr., 27, of the 2000 block of Bradley Court was sentenced on July 12, 2022, to six months’ home confinement, to be followed by three years of supervised release, and ordered to pay restitution in the amount of $50,000 for wire fraud and theft of government property.
At the sentencing hearing in front of U.S. District Judge Sue E. Myerscough, the government presented evidence that Alexander fraudulently obtained an Economic Injury Disaster Loan (“EIDL”) from the U.S. Small Business Administration (“SBA”). The loans were funded through the CARES Act in response to the global pandemic caused by COVID-19. The EIDL funds were intended to provide low-interest loans to businesses that were unable to cover their fixed costs due to the pandemic. Alexander submitted six applications containing various falsehoods in an effort to obtain EIDL funding. On the application that was accepted and funded, Alexander falsely represented that he owned and operated a clothing and apparel business, Paper Junkie Desiner, that had generated $100,000 in revenue in the 12 months prior to January 31, 2020. Due to the misrepresentations, Alexander was granted a $49,000 loan and a $1,000 advance. Alexander did not have a registered business in the state of Illinois.
Also at the hearing, Judge Myerscough found that Alexander deprived other legitimate businesses of the funds that had been set aside to assist those who had been hit hard by the pandemic. By committing this fraud, Alexander was essentially stealing from small businesses in need.
Alexander was indicted in October 2021 and plead guilty in February 2022.
The statutory penalties for wire fraud are up to 20 years in prison, up to a $250,000 fine, and up to three years of supervised release. The statutory penalties for theft of government property are up to 10 years in prison, up to a $250,000 fine, and up to three years of supervised release.
“Individuals who fraudulently obtained funds through pandemic-related programs took necessary resources from other citizens in need,” said Assistant U.S. Attorney Sierra Senor-Moore. “The EIDL and PPP loans were funded using tax payor money. We all suffer when government programs are defrauded and those who criminally misused funds intended for COVID relief will be prosecuted.”
If members of the public are aware of COVID-19 related loans that they suspect were fraudulently obtained or forgiven, they should report it to the Office of Inspector General for the Small Business
Administration, 1-800-767-0385, or online at https://sbax.sba.gov/oigcss/. Reports can be made anonymously.
The Internal Revenue Service, Criminal Investigations, investigated the case. Assistant U.S. Attorney Senor-Moore represented the government in the prosecution.
South Florida PPE Thieves Headed to Federal PrisonRead the Press Release
Miami, Florida – Today, a federal district judge in Fort Lauderdale, Florida sentenced three members of a theft ring to federal prison terms for stealing large quantities of N-95 respirator masks, nitrile medical gloves, and medical gowns from a Broward County medical supply company during the early spread of Covid-19 in the United States.
U.S. District Judge Rodney Smith sentenced Alexander G. Jolly, Kenold Million, and Pietro Felipe Sinclair each to 28 months in federal prison, followed by three years of supervised release. In addition, Judge Smith ordered the defendants to pay over $470,000 in restitution.
Jolly and Million worked for a large medical supply company that provides personal protective equipment (PPE) and other products to hospitals for front-line health care workers. Sinclair worked for the trucking company that the medical supply company used to transport pallets of products to South Florida hospitals. In April 2020, during the start of the Covid-19 pandemic, when PPE was in high demand, Jolly and Million used their jobs at the medical supply company’s warehouse in Sunrise, Florida to steal PPE. They moved pallets containing large quantities of N-95 respirator masks, nitrile medical gloves, and gowns to certain areas of the warehouse. Sinclair would load the pallets onto his work truck (along with legitimate loads) and transport the stolen PPE to Jolly and Million’s home in Fort Lauderdale, Florida. Once there, Sinclair transferred the stolen pallets from the truck to the home’s carport. He used pieces of cardboard and furniture to hide the pallets from view. Then, rental trucks and vans were used to move the stolen PPE from Jolly and Million’s home to different locations in Broward and Miami-Dade.
Jolly, Million and Sinclair stole more than 8.5 million pairs of gloves, more than 57,000 respirator masks, and dozens of gowns from the medical supply company’s warehouse. The total replacement cost of the stolen PPE was $470,000. This was one of the largest known thefts of PPE in U.S. history.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, Justin C. Fielder, Special Agent in Charge, Food and Drug Administration (FDA) Office of Criminal Investigations Miami Field Office, and Juan A. Vargas, Acting Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, made the announcement.
The FDA Office of Criminal Investigations Miami Field Office investigated the case. Assistant U.S. Attorney James Ustynoski prosecuted it.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 22-cr-60007.
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Solera Specialty Pharmacy Agrees to Enter into Deferred Prosecution Agreement; Company and CEO to Pay $1.31 Million for Submitting False Claims for Anti-Overdose DrugRead the Press Release
Florida-based Solera Specialty Pharmacy has entered into a deferred prosecution agreement and agreed to pay a $1.31 million civil settlement to resolve allegations that it submitted fraudulent claims to Medicare for Evzio, a high-priced drug used in rapid reversal of opioid overdoses.
According to Solera’s admissions in the criminal and civil agreements, the pharmacy dispensed Evzio from January 2017 to May 2018. During that time, Evzio was the highest-priced version of naloxone on the market and insurers frequently required the submission of prior authorization requests before they would approve coverage for Evzio. Solera completed Evzio prior authorizations forms in place of the prescribing physicians, including instances in which Solera staff signed the forms without the physician’s authorization and listed Solera’s contact information as if it were the physician’s information. In addition, Solera submitted Evzio prior authorization requests that contained false clinical information to secure approval for the expensive drug. Finally, Solera waived Medicare beneficiary co-payment obligations for Evzio on numerous occasions without analyzing whether the patient had a genuine financial hardship.
“Pharmacies, like all Medicare providers, must submit accurate claims,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “This settlement demonstrates the department’s continuing commitment to preventing submissions of false claims by entities at all levels of the health care delivery chain.”
“Taxpayers deserve honesty and integrity from those who profit from federal health care programs,” said U.S. Attorney Rachael S. Rollins for the District of Massachusetts. “This resolution will provide oversight to correct behavior and prevent it from happening again.”
Solera entered into a deferred prosecution agreement in connection with a criminal information charging the pharmacy with one count of health care fraud. Solera and its CEO, Nicholas Saraniti, also entered into a civil settlement agreement and will pay the government $1.31 million to resolve claims under the False Claims Act.
In connection with the settlements, Solera and Saraniti entered into a three-year integrity agreement (IA) with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). The IA requires, among other things, Solera implement measures designed to ensure that its submission of claims for pharmaceutical products complies with applicable law relating to prior authorizations and collection of beneficiary co-payment obligations. In addition, the IA requires reviews by an independent review organization.
“The submission of truthful and accurate documentation by all parties involved in the delivery of health care goods or services is essential to the integrity of federal health care programs. This includes pharmacies that submit claims for pharmaceutical products,” said Special Agent in Charge Phillip M. Coyne of the HHS-OIG. “Along with our law enforcement partners, HHS-OIG is committed to preventing fraud in Medicare and other taxpayer-funded health care programs.”
“Today’s settlement resolves serious allegations that Solera submitted false and fraudulent claims to Medicare for their own financial gain, pilfering funds from a program intended to help those truly in need, while going behind the backs of prescribing physicians to secure approval for this expensive anti-overdose drug,” said Special Agent in Charge Joseph R. Bonavolonta of the FBI Boston Division. “This is not a victimless crime — health care fraud is a crime against all of us who contribute hard earned income and taxes into the system. The FBI will continue to work with our law enforcement partners to ensure those who willingly defraud the American people are held accountable.”
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Rebecca Socol, a former employee of kaléo Inc., the manufacturer of Evzio. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. As part of this resolution, Ms. Socol will receive $262,000 of the settlement amount. The qui tam case is captioned United States ex rel. Socol v. Solera Specialty Pharmacy LLC., 18-cv010050-RGS (D. Mass.) (under seal). In 2021, the department announced settlements with kaléo for $12.7 million and with other pharmacies for $1 million relating to the submission of false claims for Evzio.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the District of Massachusetts, with assistance from the HHS OIG; the Department of Defense Criminal Investigative Service; the Office of Personal Management, Office of Inspector General; the FBI; and the U.S. Postal Service Office of Inspector General.
The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The matter was handled by Senior Trial Counsel Sarah Arni of the Justice Department’s Civil Division and Assistant U.S. Attorneys David Derusha, Abraham George and Amanda P.M. Strachan for the District of Massachusetts.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Sioux City Felon Who Was Armed with a Handgun When Arrested Sentenced to Six Years in Federal PrisonRead the Press Release
A 23-year-old Sioux City man who unlawfully possessed a gun was sentenced on July 7, 2022, to six years in federal prison.
Denvy Hoffman, age 23, from Sioux City, Iowa, received the prison term after a March 8, 2022 guilty plea to possession of a firearm by a felon.
Evidence in the case revealed that Hoffman possessed a gun after being convicted on felony intent to deliver marijuana. During the investigation, Hoffman was apprehended on a pending felony state arrest warrant leaving a downtown Sioux City bar. An arresting officer noted the odor of marijuana emanating from Hoffman and located a loaded pistol and marijuana on Hoffman’s person. Hoffman has history of drug convictions, resisting arrest, and failures on state probation, parole and drug treatment.
Hoffman was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Hoffman was sentenced to 72 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. Hoffman is being held in the custody of the United States Marshal’s until he can be transported to a federal prison.
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.
The case was investigated by the Sioux City Police Department and prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-CR-04074
Seymour Man Sentenced to More Than 5 Years in Federal Prison for Drug and Firearm OffensesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that LOUIE McDOWELL, 49, of Seymour, was sentenced yesterday by U.S. District Judge Alvin W. Thompson in Hartford to 66 months of imprisonment, followed by five years of supervised release, for narcotics distribution and firearm possession offenses.
According to court documents and statements made in court, in the summer of 2017, members of the FBI’s Bridgeport Safe Streets Task Force and Bridgeport Police Department began investigating individuals who were distributing narcotics in and around Bridgeport. The investigation included the use of court-authorized wiretaps, controlled purchases of narcotics, physical and video surveillance, and the execution of multiple search and seizure warrants. The investigation revealed that McDowell, Christian Rodriguez, Antonio Small, Evan Sheffield, Anthony Small and others were distributing large quantities of heroin, fentanyl and crack cocaine in the Bridgeport area.
McDowell and several of his co-conspirators were arrested on November 6, 2018. On that date, a search of McDowell’s residence on Cedar Street in Seymour revealed quantities of cocaine and heroin, items used to process and package narcotics, firearms and ammunition, jewelry, and approximately $129,000 in cash. A related search of a safety deposit box that McDowell used revealed approximately $217,000 in cash.
Judge Thompson ordered the forfeiture of the seized firearms, jewelry and cash.
McDowell has been detained since his arrest. On July 14, 2021, he pleaded guilty to one count of conspiracy to distribute and to possess with the intent to distribute controlled substances, and one count of possession of a firearm during and relation to a drug trafficking crime.
Rodriguez, Antonio Small, Sheffield and Anthony Small also pleaded guilty. On October 27, 2020, Sheffield was sentenced to 97 months of imprisonment, and on February 11, 2022, Rodriguez was sentenced to 60 months of imprisonment.
Antonio Small and Anthony Small await sentencing.
This matter has been investigated by the FBI’s Bridgeport Safe Streets Task Force and the Bridgeport Police Department, as well as the DEA, Connecticut State Police, and the Stratford, Norwalk, Seymour and Trumbull Police Departments.
The case is being prosecuted by Assistant U.S. Attorneys Karen L. Peck and Patrick J. Doherty through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Seven More Defendants Plead Guilty to Drug-Trafficking Conspiracy, Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – Seven more defendants have pleaded guilty in federal court to their roles in a major drug-trafficking conspiracy and to illegally possessing firearms.
Four defendants pleaded guilty in separate appearances before U.S. District Judge Greg Kays on Tuesday, July 12. Sonia Lara, 32, of Independence, Mo.; Haydee Griselda Erazo-Moreno, 39, a citizen of El Salvador residing in Kansas City, Mo.; and Yader J. Arita, 33, of Kansas City, Kansas, each pleaded guilty to one count of conspiracy to distribute methamphetamine and heroin from Jan. 1, 2014, to June 23, 2020, and one count of conspiracy to commit money laundering. Erazo-Morena also pleaded guilty to one count of using firearms in furtherance of a drug-trafficking crime. Jose Antonio Soto Herrera, 60, a citizen of Mexico residing in Coachella, California, pleaded guilty to misprision of a felony.
Sergio Perez-Martinez, 43, a citizen of Mexico residing in Panorama City, Calif., and Ruben Chigo Paz, 26, of Kansas City, Mo., pleaded guilty on Monday, July 11. Perez Martinez pleaded guilty to one count of conspiracy to distribute methamphetamine and one count of conspiracy to commit money laundering. Paz pleaded guilty to one count of conspiracy to distribute methamphetamine and heroin, one count of conspiracy to commit money laundering, and one count of using firearms in furtherance of a drug-trafficking crime.
Melvin Aleman-Nunez, 27, of Independence, pleaded guilty on Friday, July 8, to his role in the methamphetamine and money-laundering conspiracies, and to using firearms in furtherance of a drug-trafficking crime.
They are among 18 defendants who have pleaded guilty in this case.
Lara admitted that she was responsible for the distribution of at least 10 kilograms of methamphetamine and one kilogram of heroin during the drug-trafficking conspiracy.
Erazo-Moreno admitted that she was responsible for the distribution of at least five kilograms of methamphetamine and one kilogram of heroin during the drug-trafficking conspiracy.
She was involved in the sale of approximately 3.5 kilograms of methamphetamine and 1.2 kilograms of heroin to confidential sources and undercover law enforcement officers between February and October 2019. In addition, law enforcement officers in the Eastern District of Missouri purchased approximately 900 grams of heroin in controlled buys. Erazo-Moreno also admitted that she sold, traded, or possessed multiple firearms during these drug-trafficking activities.Arita admitted that he was involved in the sale of methamphetamine to an undercover law enforcement officer on several occasions. Arita was arrested following a traffic stop on Sept. 5, 2018, in which officers found approximately three pounds (896 grams) of methamphetamine in his vehicle.
Perez-Martinez admitted that he is responsible for the distribution of at least 15 kilograms of methamphetamine during the conspiracy.
Perez-Martinez and Aleman-Nunez each admitted that Perez-Martinez supplied Aleman-Nunez with eight to 10 pounds of methamphetamine each week for five weeks. Perez-Martinez transported the methamphetamine from California to Missouri either by mail or by tractor trailer.
Perez-Martinez also admitted that he provided two kilograms of methamphetamine to Erazo-Moreno, who was paid to transport the methamphetamine to a customer in Columbia, Mo. The methamphetamine was seized by law enforcement officers when Erazo-Moreno was arrested during a traffic stop on Oct. 25, 2018. In total, Erazo-Moreno received more than six kilograms of methamphetamine from Perez-Martinez’s associates in Kansas City, Mo. Additionally, a law enforcement confidential informant conducted controlled drug purchases totaling 1,559 grams of methamphetamine, which were coordinated by Perez-Martinez.
Paz admitted that he is responsible for the distribution of more than 1.5 kilograms of methamphetamine during the conspiracy. Paz admitted that he sold a total of 1,314.49 grams of methamphetamine to a law enforcement confidential source from July 13 to Dec. 4, 2018. Paz was arrested at a residence in Kansas City, Mo., in which law enforcement officers found 37 pounds of methamphetamine, one pound of heroin, and a Zenith .45-caliber pistol with a magazine.
Aleman-Nunez admitted that he sold a total 2,225.9 grams of methamphetamine to two law enforcement confidential informants. During one of those transactions on Oct. 17, 2018, Aleman-Nunez told a confidential informant that he had sold seven pounds of methamphetamine in the last few days. Aleman-Nunez was arrested on April 30, 2019, when law enforcement officers were called to his residence on a disturbance. Officers searched the residence and found a stolen handgun, ammunition, approximately half an ounce of methamphetamine and drug paraphernalia.
Under the terms of their plea agreements, Lara, Erazo-Morena, Arita, Perez-Martinez, Paz and Aleman-Nunez each must forfeit to the government a money judgment according to their drug responsibility as determined by the court at sentencing, based upon drug value calculations but not to exceed $882,000, which represents the proceeds of the unlawful distribution of more than 220 pounds of methamphetamine (based on an average price of $3,500 per pound of methamphetamine) and more than two kilograms of heroin (based on an average price of $1,400 per ounce of heroin).
Under federal statutes, Erazo-Morena, Arita, and Aleman-Nunez each are subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of life in federal prison without parole. Lara and Perez-Martinez each are subject to a mandatory minimum sentence of up to 10 years in federal prison without parole, up to a sentence of life in federal prison without parole. Paz is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendants will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Bruce Rhoades and Robert M. Smith. It was investigated by the FBI, the Independence, Mo., Police Department, the Jackson County Drug Task Force, the Kansas City, Mo., Police Department, the Jackson County, Mo., Sheriff’s Department, Homeland Security Investigations, and the U.S. Marshals Service.
Organized Crime and Drug Enforcement Task Force
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Seasoned Federal Prosecutor Receives the Attorney General's Award for Fraud PreventionRead the Press Release
CHARLOTTE, N.C. – Attorney General Merrick B. Garland announced the recipients for the 69th Annual Attorney General’s Awards yesterday, recognizing Department of Justice employees and partners for their extraordinary contributions to the enforcement of our nation’s laws.
Daniel Ryan, Assistant United States Attorney (AUSA) for the Western District of North Carolina, was among the 298 Justice Department employees and 54 non-department individuals who were honored for their work. AUSA Ryan was part of a team receiving the Attorney General’s Award for Fraud Prevention, which recognizes exceptional dedication and effort to prevent, investigate, and prosecute fraud, white collar crimes, and official corruption.
“This year’s awardees have served selflessly to further the Department’s important work upholding the rule of law, keeping our country safe, and protecting civil rights,” said Attorney General Garland. “I am proud to recognize these individuals for their professionalism, skill, and leadership, and I am grateful for their service to our Department and our nation.”
“AUSA Ryan is a worthy recipient of this prestigious award. As a seasoned federal prosecutor, he is being recognized for his tireless dedication to the pursuit of justice. His contributions to the community, his advocacy on behalf of victims, and his high standards of professional conduct exemplify his commitment to our office’s mission,” said U.S. Attorney King.
AUSA Ryan is the recipient of the award for his legal work in connection with the multi-agency investigation of Wells Fargo’s unlawful sales practices, including the opening of millions of accounts without customer authorization. The dedicated efforts of AUSA Ryan and his colleagues, which resulted in the payment of a $3 billion penalty, ensured that Wells Fargo was held accountable for its conduct and that affected victims were made whole.
This is AUSA Ryan’s second Attorney General Award. In 2015, AUSA Ryan was awarded the Attorney General’s Award for Distinguished Service for his work in connection with the Department of Justice’s record breaking $16.65 billion settlement with Bank of America concerning its origination and securitization of residential mortgages.
AUSA Ryan received his undergraduate degree from the University of Notre Dame and his law degree from Harvard School of Law.
In making today’s announcement, U.S. Attorney King thanked AUSA Ryan for his tireless dedication to fulfilling the Justice Department’s mission and noted that it is an honor and a privilege to recognize him both for his accomplishments and public service.
Rome Donut Shop Owners Sentenced to Prison for Tax EvasionRead the Press Release
SYRACUSE, NEW YORK – A Rome, New York couple and their adult son were sentenced today in federal court in Utica for tax evasion and conspiracy to defraud the United States, announced United States Attorney Carla B. Freedman, Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division, and Thomas Fattorusso, Special Agent in Charge of the Internal Revenue Service-Criminal Investigation Division, New York Field Office.
In November 2021, John Zourdos, age 69, his wife, Helen Zourdos, age 65, and their son, Dimitrios Zourdos, age 39, were each convicted of conspiracy to defraud the United States, tax evasion, and helping to file false corporate tax returns. U.S. District Court Judge David N. Hurd sentenced John Zourdos to 30 months’ imprisonment; Helen Zourdos to 20 months’ imprisonment; and Dimitrios Zourdos to 10 months’ imprisonment. Judge Hurd also ordered the defendants to pay $2,000,769 in restitution to the United States and to serve 3 years of supervised release after they complete their terms of incarceration.
According to evidence presented at trial and other court documents, John, Helen, and Dimitrios Zourdos operated three Dippin Donuts coffee and donut shops with locations in Rome and New Hartford. From 2012 to 2017, the trio concealed from the IRS approximately $4.5 million in cash sales. During that period, they evaded more than $2 million in individual and corporate taxes, by, among other things, depositing cash directly into their personal bank accounts instead of into business bank accounts, providing incomplete information to their accountants, causing their accountants to file false individual and corporate tax returns with the IRS, and funding personal expenditures directly with undeposited and unreported cash. They used unreported income to fund a lavish lifestyle that included multiple luxury vehicles, expensive watches, investment accounts, and real estate. They also paid some of their employees “off the books” cash wages to avoid federal payroll taxes.
This case was investigated by the IRS Criminal Investigation Division. It was prosecuted by Assistant Chief John N. Kane of the Justice Department’s Tax Division and Assistant United States Attorney Michael F. Perry.
Repeat Offender Sentenced to 10 Years in Prison for Knowingly Possessing Visual Depictions of Children Engaging in Sexually Explicit ConductRead the Press Release
SACRAMENTO, Calif. — William Richter, 39, of Shasta County, was sentenced Tuesday to 10 years in prison, plus 20 years of supervised release, for knowing possession of visual depictions of minors engaging in sexually explicit conduct, U.S. Attorney Phillip A. Talbert announced.
Additionally, Richter was ordered to pay $3,000 in victim restitution and was sentenced to an additional four months in prison for violating the terms of his supervised release on his prior federal case.
According to court documents, Richter had been convicted of the same offense in 2013, and was on federal supervised release when he committed this new crime on July 23, 2020. On that date, Richter was pulled over for a traffic violation. A smart phone was discovered hidden in Richter’s driver’s seat cover. According to the terms of his supervised release, Richter was not allowed to use the internet or to possess a smart phone. Forensic analysis revealed that Richter possessed at least 51 explicit photographs and three videos of pre-pubescent minors on his phone, one of which depicted sexual abuse of an infant. The victims in the images came from locations outside of California, such as the Philippines, Germany, Russia, Ukraine, Ecuador, Slovenia, Sweden, Pennsylvania, Alabama, Virginia, Florida, Tennessee, Utah, and Delaware. Richter had installed programs such as Kik messenger, VLC media player, the TOR browser, Yo Live, Telegram and Mega on his unauthorized phone, and accessed websites which likely hosted sexually explicit conduct.
This case is the product of an investigation by Homeland Security Investigations and the Shasta County Sheriff’s Office. Assistant U.S. Attorney Christina McCall is prosecuting the 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, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
Previously convicted sex offender sentenced to 35 years in prison for federal child pornography crimesRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced that Donald Alvin Tolbert was sentenced on July 12 to 35 years in prison. Tolbert, 53, of Albuquerque, pleaded guilty on July 8, 2019, to 12 counts of distribution, receipt, and possession of videos and images containing child pornography.
According to the plea agreement and other court records, between July 17, 2012, and September 20, 2012, Tolbert sent and received numerous images and videos of child pornography by email. Tolbert then transferred several of those pornographic images and videos between his multiple email accounts. Tolbert also stored videos and images of child pornography on his mother’s computers.
At the time Tolbert committed these crimes he had been convicted of sexual offenses previously in New Mexico. In 2006, Tolbert was convicted of two counts of criminal sexual contact of a minor in the third degree, one count of kidnapping, one count of bribery of a witness and one misdemeanor count of battery.
“The U.S. Attorney’s Office will bring the full weight of the law to bear upon those who sexually exploit children,” said U.S. Attorney Uballez. “This case is an example of how federal, state, and local law enforcement cooperate together to keep our children safe. Most importantly, I thank the victims and witnesses who bravely shared their stories during the course of this case; your bravery has made a difference.”
Upon his release from prison, Tolbert will be subject to 10 years of supervised release and must register as a sex offender.
The Albuquerque office of Homeland Security Investigations (HSI), New Mexico Attorney General’s Office, New Mexico State Probation and Parole, and the New Mexico Regional Computer Forensics Laboratory investigated this case as part of the New Mexico Internet Crimes Against Children (ICAC) Task Force. U.S. Attorney Uballez and Assistant U.S. Attorney Kristopher N. Houghton prosecuted the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. The ICAC Task Force Program is a nation-wide network of task forces including over 90 federal, state, local and tribal law enforcement agencies in New Mexico dedicated to investigating, prosecuting and developing effective responses to Internet crimes against children.
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Postal Worker Charged with Obstruction of MailRead the Press Release
NEW ORLEANS, LOUISIANA – KEVIN HART, age 31, a resident of Marrero, Louisiana, was charged on July 12, 2022 in a one-count bill of information with obstruction of mail, announced United States Attorney Duane A. Evans.
According to court documents, HART was employed by the United States Postal Service as a City Carrier Associate and was assigned to work at the Johnson Street Post Office in Metairie, Louisiana, 70001. On or about July 1, 2021, HART knowingly and willfully did obstruct and retard the passage of the mail in that he unlawfully secreted, destroyed, detained, and delayed approximately 236 pieces of mail that were recovered from a dumpster in Metairie.
U.S. Attorney Evans reiterated that the bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
If convicted, the defendant faces a maximum penalty of up to six (6) months imprisonment, up to a $5,000 fine or the greater of twice the gross grain to defendant or twice to gross loss to any person under Title 18, United States Code, Section 3571, and a $100 mandatory special assessment fee.
U.S. Attorney Evans praised the work of the U.S. Postal Service Office of Inspector General in investigating this matter. Assistant U. S. Attorney Rachal Cassagne is in charge of the prosecution.
Port Angeles, Washington, man who prompted evacuation in Olympic National Park, pleads guilty to interfering with a government communication systemRead the Press Release
Tacoma – A 42-year-old Port Angeles, Washington, man pleaded guilty today in U.S. District Court in Tacoma to interfering with a federal communications system, announced U.S. Attorney Nick Brown. Caleb Jesse Chapman’s actions from August 29, 2021 to August 31, 2021, resulted in the evacuation and closure of a popular section of Olympic National Park, at one the busiest times of the year. Under the terms of the plea agreement prosecutors will recommend no more than ten months in prison when Chapman is sentenced by U.S. District Judge Robert J. Bryan on October 7, 2022.
According to the plea agreement, just after midnight on August 29, 2021, Chapman appeared at a stranger’s home armed with a handgun and AR-15 style rifle. Chapman admits he was high on methamphetamine when he handed the stranger a letter outlining his concerns over political events, his difficulty getting ammunition, and his belief that there would be a revolution starting on the Olympic Peninsula, Texas and elsewhere.
Chapman drove his girlfriend to Olympic National Park where he felled a tree to block a road to the Deer Park campground. Chapman told his girlfriend she was going to die in the “revolution.” The girlfriend called 9-1-1 and Chapman threw a can of soup at her, cutting her leg. Chapman stormed off into the woods with nine firearms including a stolen handgun, an AR-15 and two shotguns. He had more than 3500 rounds of ammunition.
Law enforcement evacuated the Deer Park campgrounds, trailheads, and road areas, and attempted to locate Chapman. Around 3 PM on August 29, 2021, Chapman disabled the Olympic National Park radio communications site (radio repeater) located at the summit of Blue Mountain. The repeater is used by the park for emergency response, public safety, and administrative radio communications. By disabling the repeater, Chapman left the northeast corner of the park without emergency communications. In fact, the Blue Mountain repeater was also the repeater that the NPS Search and Rescue helicopter based at Mt. Rainier would need to use, for a rescue at Olympic National Park.
On August 31, 2021, a drone located Chapman in the park. Chapman fired a short barrel shotgun at the drone. Ultimately, law enforcement was able to negotiate Chapman’s surrender with no injuries to anyone.
As part of the plea agreement, Chapman has agreed to make restitution to those harmed by his actions, including losses to the National Park Service, and to specific individuals, incurred because of the closure of portions of Olympic National Park, including the popular Hurricane Ridge Visitor’s Center.
Interference with a federal communications system is punishable by up to ten years in prison. Judge Bryan is not bound by prosecutors’ ten-month recommendation and can impose any sentence up to the statutory maximum after considering the sentencing guidelines and other statutory factors.
The case was investigated by the Investigative Services Branch of the National Park Service, the FBI, and the Olympic Peninsula Narcotics Enforcement Team (OPNET) which includes officers from Jefferson County Sheriff’s Office, Clallam County Sheriff’s Office, the Sequim, Port Angeles, and Port Townsend Police Departments and the U.S. Border Patrol.
The case is being prosecuted by Assistant United States Attorney Kristine Foerster.
Pittsburgh Cocaine Dealer Sentenced to 15 Years' ImprisonmentRead the Press Release
PITTSBURGH, PA -- A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to 15 years of imprisonment and 10 years of supervised release on his conviction of violating federal narcotics laws, United States Attorney Cindy K. Chung announced today.
United States District Judge Cathy Bissoon imposed the sentence on Cadee Akins Sr., age 50, formerly of the City’s Stanton Heights neighborhood.
According to information presented to the court, Akins Sr. conspired to possess with intent to distribute and distribute five kilograms or more of cocaine and 280 grams or more of cocaine base. The investigation revealed that from November 2017 to September 2020, the defendant distributed cocaine to multiple individuals who in turn distributed cocaine to lower-level dealers and end users. Additionally, during a July 2019 traffic stop, law enforcement seized two kilograms of cocaine from the defendant, who was operating a rental vehicle. In a subsequent traffic stop in March 2020, law enforcement seized approximately $50,600 in drug proceeds from the defendant.
Assistant United States Attorney Brendan J. McKenna prosecuted this case on behalf of the government.
United States Attorney Chung commended the Drug Enforcement Administration and the Pennsylvania Office of Attorney General for the investigation leading to the successful prosecution of Akins Sr.
Pharmacy Agrees to Enter into Deferred Prosecution and Civil Settlement Agreements in Connection with Fraudulent Claims for Anti-Overdose DrugRead the Press Release
BOSTON – Florida-based Solera Specialty Pharmacy has entered into a deferred prosecution agreement and has agreed, along with its Chief Executive Officer (CEO), to pay a $1.31 million civil settlement to resolve allegations that it submitted fraudulent claims to Medicare for Evzio, a high-priced drug used in rapid reversal of opioid overdoses.
According to the admissions of Solera and its CEO Nicholas Saraniti in the civil agreement, and Solera’s additional admissions in the criminal agreement, the pharmacy dispensed Evzio from January 2017 to May 2018. During that time, Evzio was the highest-priced version of naloxone on the market and insurers frequently required the submission of prior authorization requests before they would approve coverage for Evzio. Solera completed Evzio prior authorization forms in place of the prescribing physicians, including instances in which Solera staff signed the forms without the physician’s authorization and listed Solera’s contact information as if it were the physician’s. In addition, Solera submitted Evzio prior authorization forms that contained false clinical information to secure approval for the expensive drug. Finally, Solera waived Medicare beneficiary co-payment obligations for Evzio on numerous occasions without analyzing whether the patient had a genuine financial hardship.
Solera entered into a deferred prosecution agreement in connection with a criminal information charging the pharmacy with one count of health care fraud. Solera and its CEO, Saraniti, also entered into a civil settlement agreement and will pay the government $1.31 million to resolve claims under the False Claims Act.
“Taxpayers deserve honesty and integrity from those who profit from federal health care programs,” said United States Attorney Rachael S. Rollins. “This resolution will provide oversight to correct behavior and prevent it from happening again.”
“Pharmacies, like all Medicare providers, must submit accurate claims,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “This settlement demonstrates the department’s continuing commitment to preventing submissions of false claims by entities at all levels of the health care delivery chain.”
In connection with the settlement, Solera and Saraniti entered into a three-year Integrity Agreement (IA) with the U.S. Department of Health and Human Services Office of Inspector General. The IA requires, among other things, that Solera implement measures designed to ensure that its submission of claims for pharmaceutical products complies with applicable law relating to prior authorizations and collection of beneficiary co-payment obligations. In addition, the IA requires reviews by an independent review organization.
“The submission of truthful and accurate documentation by all parties involved in the delivery of health care goods or services is essential to the integrity of federal health care programs. This includes pharmacies that submit claims for pharmaceutical products,” said Special Agent in Charge Phillip M. Coyne of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “Along with our law enforcement partners, HHS-OIG is committed to preventing fraud in Medicare and other taxpayer-funded health care programs.”
“Today’s settlement resolves serious allegations that Solera submitted false and fraudulent claims to Medicare for their own financial gain, pilfering funds from a program intended to help those truly in need, while going behind the backs of prescribing physicians to secure approval for this expensive anti-overdose drug,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “This is not a victimless crime—health care fraud is a crime against all of us who contribute hard earned income and taxes into the system. The FBI will continue to work with our law enforcement partners to ensure those who willingly defraud the American people are held accountable.”
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Rebecca Socol, a former employee of kaléo Inc., the manufacturer of Evzio. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned United States ex rel. Socol v. Solera Specialty Pharmacy, LLC., 18-cv010050-RGS (D. Mass.) (under seal). In 2021, the department announced settlements with kaléo for $12.7 million and with other pharmacies for $1 million relating to the submission of false claims for Evzio.
U.S. Attorney Rollins, Principal Deputy AAG Boynton of the Justice Department’s Civil Division, HHS-OIG SAC Coyne and FBI Boston SAC Bonavolonta made the announcement today. Assistant U.S. Attorneys David J. Derusha, Abraham R. George, and Amanda P.M. Strachan of Rollins’s Office and Senior Trial Counsel Sarah Arni of the Justice Department’s Civil Division handled the matter.
Passaic County Man Admits Role in Illegal Money Transmitting SchemeRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, man today admitted his role in an illegal money transmitting business, U.S. Attorney Philip R. Sellinger announced.
Enmanuel Nunez-Reyes, 29, pleaded guilty by videoconference before U.S. District Judge Brian Martinotti to an information charging him with aiding and abetting an illegal money transmitting business.
According to documents filed in this case and statements made in court:
From December 2016 through September 2017, Nunez-Reyes accepted over $2.8 million in cash and purchased over 100 cashier’s checks at local bank branches in New Jersey and elsewhere, the proceeds of illegal drug distribution. The check purchases were part of an illegal money transmitting and money laundering scheme designed to hide the illegal source of the cash and transfer it from New Jersey to the Dominican Republic and Colombia, all while attempting to avoid scrutiny by law enforcement and U.S. banks.
The charge of aiding and abetting an illegal money transmitting business carries a maximum penalty of five years in prison and a fine of $250,000 or twice the amount involved in the offense, whichever is greater. Sentencing is scheduled for Oct. 18, 2022.
U.S. Attorney Sellinger credited special agents and task force officers of the U.S. Drug Enforcement Administration, New Jersey Division, under the direction of Special Agent in Charge Susan A. Gibson; the DEA Special Operations Division, and the Santo Domingo Country Office, under the supervision of Special Agent in Charge Renita D. Foster; special agents and task force officers of IRS - Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy Tomlins; the Morristown, New Jersey, Police Department, under the direction of Acting Police Chief Darnell Richardson; and the Passaic, NJ Police Department under the direction of Chief Luis A. Guzman. U.S. Attorney Sellinger thanked officials in the Dominican Republic for their assistance in the investigation.
The government is represented by Assistant U.S. Attorney Jonathan M. Peck of the Criminal Division in Newark.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Defense counsel: Wanda M. Akin Esq., Newark
Parker Man and Woman Sentenced in Connection with Robbery After Stealing Victim’s VehicleRead the Press Release
PHOENIX, Ariz. – On Monday, Andre Stephan Stevens, 21, and Tenelle Inez Moses, 32, both of Parker, Arizona, were sentenced by United States District Judge Michael T. Liburdi. Stevens, who previously pleaded guilty to Robbery, was sentenced to 126 months in prison, followed by three years of supervised release. Moses, who previously pleaded guilty to Accessory After the Fact, was sentenced to 46 months in prison, followed by three years of supervised release.
On October 29, 2019, Stevens assaulted the victim outside of Moses’ residence in Parker. After the assault, Moses and Stevens drove the victim’s vehicle to a remote location near a casino in Parker. The victim was in the back seat when Stevens told Moses to pull over. Moses stopped the vehicle and Stevens threw the victim out of the victim’s own vehicle. Moses and Stevens then fled the scene in the victim’s vehicle. Stevens later led law enforcement on a high-speed chase, driving the victim’s vehicle with Moses in the passenger seat. The police pursuit was abandoned due to safety concerns, but Stevens and Moses were arrested later that morning. These offenses occurred on the Colorado River Indian Tribes (CRIT) Reservation. Stevens, Moses, and the victim are all enrolled members of the CRIT Tribe.
The FBI and the CRIT Police Department conducted the investigation in this case. Christina J. Reid-Moore, Assistant U.S. Attorney, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-21-00317-PHX-MTL
RELEASE NUMBER: 2022-115_Stevens-Moses# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Palm Beach Art Dealer Indicted on Charges Related to Art Fraud SchemeRead the Press Release
Miami, Florida – Palm Beach art dealer Daniel Elie Bouaziz was charged by Indictment with mail fraud, wire fraud, and money laundering in connection with his alleged scheme to sell forged high-end artwork.
The indictment alleges Bouaziz engaged in a scheme to sell paintings and other artwork that he falsely marketed for sale as original or authentic pieces by prominent artists, including Jean-Michel Basquiat, Andy Warhol, Banksy, and Roy Lichtenstein. The indictment further alleges that the fraudulent art, that was purchased from Bouaziz, was picked up from Bouaziz’s South Florida galleries, mailed by commercial interstate carrier, and hand-delivered to Bouaziz’s victims. Bouaziz purchased and acquired pieces from various sources, to include online auction sites at low prices, and falsely sold the pieces as originals, at drastically increased prices, at his retail art galleries on Worth Avenue in Palm Beach, Florida. To make the fraudulent art appear authentic, Bouaziz allegedly made false representations to prospective buyers regarding the provenance and originality of the art. To support these false statements, it is alleged Bouaziz, among other things: (1) provided prospective buyers with invoices and documents that included false provenance information; (2) omitted descriptors that were included with low-cost online purchases, to include “after” and “reproduction” language; (3) sold prospective buyers pieces on which false edition numbers and artists’ signatures had been added; and (4) provided prospective buyers with certificates of authenticity that included false assertions and appraisals which had a stamped signature block that read “Daniel Bouaziz, Certified International Fine Art Appraiser.”
The indictment further alleges that Bouaziz committed money laundering by engaging in transactions in criminally derived property.
Bouaziz was previously charged in a criminal complaint under case number 22-mj-08209-RMM.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida; John J. Bernardo, Acting Special Agent in Charge, FBI Miami; and Matthew D. Line, Special Agent in Charge, IRS-Criminal Investigation (IRS-CI) Miami Office, made the announcement.
FBI Miami’s West Palm Beach Office and IRS-CI Miami investigated this matter. Assistant U.S. Attorney Sarah J. Schall is prosecuting this case. Assistant U.S. Attorney Peter A. Laserna is handling the asset forfeiture aspects of this case.
An indictment contains mere allegations. The defendant is presumed innocent unless and until proven guilty in a court of law.
If you believe you have been a victim of art fraud, please contact the FBI’s Art Crime Team at 1-800-CALL-FBI.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 22-cr-80099.
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Owners and Operators of Mid-State Japanese Restaurants Indicted in Conspiracies Related to Harboring Undocumented WorkersRead the Press Release
NASHVILLE – A nine-count federal indictment, unsealed today, charges four individuals with conspiracy to harbor undocumented workers while employing them to work at various mid-state restaurants, harboring undocumented workers, and conspiracy to commit money laundering, announced U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee. The indictment also charges these individuals and another person with conspiracy to defraud the United States by failing to collect and pay employment taxes to the IRS.
Those charged in the indictment are: Zhongzhi “Tommy” Zhuo, 46, Jianping “Alan” Zhuo, 37, and Xiaofen “Joyce” Zhuo, 38, all of Hendersonville, Tennessee; and Jianhua “Jason” Zhuo, 35, and Lili Wu, 32, both of Gallatin, Tennessee.
The indictment alleges that Zhongzhi, Jianping, and Jianhua Zhuo, along with Lily Wu, as the owners or operators of several middle Tennessee restaurants, participated in a scheme to harbor persons who were in the United States illegally, by providing a means of financial support through employment at the restaurants and providing them with housing and transportation. The restaurants identified in the indictment include the Fuji Japanese Steakhouse, with locations in Hendersonville, Goodlettsville, and Whitehouse, Tennessee; Bonfire Mongolian Grill, with locations in Hendersonville, Clarksville, Mount Juliet, and Spring Hill, Tennessee; and the Koi Japanese Steakhouse in Gallatin, Tennessee.
The indictment also alleges that residential properties owned or leased by one or more of the defendants were used to house undocumented workers, including properties in Hendersonville, Gallatin, Goodlettsville, Clarksville, Mount Juliet, and Spring Hill.
Other allegations in the indictment include that these defendants communicated with and paid a broker to find and deliver undocumented workers to work at the restaurants; employed undocumented workers without requiring them to complete applications or collecting any documents to determine the worker’s immigration status and employment authorization; housed the undocumented workers at the residences; transported the undocumented workers between the residences and restaurants; and maintained separate books accounting for payments to undocumented workers made outside of the regular payroll system.
The allegations also include that these defendants, along with Xiaofen “Joyce” Zhuo, conspired to defraud the United States by paying undocumented workers in cash; failed to withhold and pay employment taxes to the IRS; and refused to allow undocumented workers to pay taxes, including for those that had Individual Taxpayer Identification Numbers. These defendants also conspired to provide understated wages to tax preparation businesses that prepared and filed tax forms with the IRS.
The indictment also contains a forfeiture allegation in which the United States seeks to forfeit four residences involved in the commission of the offenses, bank accounts, and a money judgement representing the amount of the proceeds of the crimes.
The charges carry maximum penalties between 5 and 20 years in prison, if convicted.
This case was investigated by Homeland Security Investigations; IRS-Criminal Investigation; the Tennessee Bureau of Investigation; and the Hendersonville Police Department. Assistant U.S. Attorneys Robert S. Levine and Thomas J. Jaworski are prosecuting the case.
An indictment is merely an accusation. All defendants are presumed innocent until proven guilty in a court of law.
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Orange County Man Prohibited from Preparing Tax Returns after Filing Returns that Fraudulently Sought over $50 Million in RefundsRead the Press Release
SANTA ANA, California – A federal judge has ordered a Buena Park man to stop preparing or helping to prepare tax returns after federal authorities determined his clients filed tax returns that claimed bogus dependents and fraudulently sought more than $50 million in tax refunds.
The judgment that became public today enjoins Jose Pineda and his business – the Anaheim-based ABK Income Tax & Travel, Inc. – from directly or indirectly acting as federal tax return preparers and other federal tax-related activities.
According to a civil complaint filed in March 2021 by the United States, between 2013 and 2020, Pineda and ABK fraudulently claimed fabricated or unqualified dependents on their customers’ tax returns, thus claiming refundable credits to which they were not entitled, including the child tax credit, the additional child tax credit and the earned income credit.
When the IRS confronted taxpayers with the false returns, they confirmed the dependents were added fictitiously and they did not qualify for the tax benefit. A majority of Pineda and ABK’s customers came from Spanish-speaking immigrant communities in Orange County. Due to their limited education, language ability and knowledge of tax or accounting matters, most of Pineda and ABK’s customers followed Pineda’s direction to certify that their tax returns were correct, even though they did not understand contents of the returns.
Pineda and ABK’s customers revealed during interviews with IRS authorities that, even when Pineda and ABK knew the IRS was disallowing erroneously claimed dependents, Pineda and ABK continued to falsely report these same dependents on their customers’ tax returns for subsequent years. According to the government’s complaint, between 2016 and 2020, Pineda and ABK prepared approximately 22,340 federal income tax returns, and 89% of those returns sought refunds – a total of approximately $51,899,961 in refunds, most of which stemmed from fraudulent deductions on those returns.
This case was handled by Assistant United States Attorney Najah Shariff of the Tax Division. The IRS’ Abusive Transactions Investigation Group conducted the investigation in this matter.
The judgment entered today on the court’s docket concludes the government’s case in United States v. Jose Pineda, individually and doing business as ABK Income Tax & Travel, and ABK Income Tax & Travel, Inc., SACV21-463. United States District Judge David O. Carter on Tuesday filed the judgment for injunction with the consent of Pineda and ABK.
Return preparer fraud remains a high priority of the IRS, and taxpayers seeking a return preparer should remain vigilant. The IRS has published tips on its website for choosing a tax preparer and has launched a free directory of federal tax preparers.
Nigerian National Sentenced to Eight Years in Federal Prison for an Elder Fraud Scheme and Unrelated Cares Act Covid-19 Unemployment Fraud SchemeRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced Oluwaseyi Akinyemi, a/k/a “Paddy Linkin”, a/k/a “Joseph Kadin”, age 35, of Hyattsville, Maryland, yesterday to eight years in federal prison, followed by three years of supervised release for two counts of mail fraud relating to a social media advanced fee fraud scheme that targeted elderly victims. Judge Chuang also ordered Akinyemi to pay $486,119.07 in restitution to his victims.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Acting Special Agent in Charge Selwyn Smith of Homeland Security Investigations (HSI) Baltimore; Acting Special Agent in Charge Troy Springer, of the Washington Regional Office, U.S. Department of Labor Office of Inspector General; and Chief Malik Aziz of the Prince George’s County Police Department.
“Akinyemi committed elder fraud and CARES Act COVID-19 fraud, which are both priorities for this Office,” said United States Attorney for the District of Maryland Erek L. Barron. “Akinyemi not only took advantage of a nursing care patient, a national health crisis, and an employment crisis, but he also caused financial harm to at least 13 elderly victims.”
According to his guilty plea, from July 10, 2018 to April 29, 2019, Akinyemi and at least one co-conspirator engaged in a social media based elder fraud scheme. Members of the conspiracy targeted elderly victims on social media platforms, representing themselves as agents of both real and fictitious government agencies and offered victims non-existent financial rewards if the victims first sent cash, money orders, or gift cards to cover associated “taxes and fees.” Conspirators even impersonated social media accounts of the victim’s friends to vouch for their fraudulent financial scheme. Believing that they would receive a financial reward, the victims sent cash, money orders, gift cards, and other valuable items through the mail to Akinyemi as well as other members of the conspiracy in order to obtain a financial reward. Akinyemi, who lived in Landover, Maryland at the time, received packages under the aliases of Paddy Linkin,” “Flex,” “Joseph Kadin,” “Anna Marcos,” and other aliases. After receiving the fraudulently obtained funds, Akinyemi kept a portion of the funds and provided the rest of the fraudulently obtained cash to co-conspirators in Nigeria. Akinyemi admitted that this advance fee fraud scheme defrauded 13 victims from around the United States, ranging in age from 47 to 78 years old, of a total of $478,145.07.
For example, Victim 1, who was 78 years old and lived in Texas, received an application via social media to apply to a purported federal government grant program. The application was accompanied by a message from a person whom Victim 1 believed was a friend, vouching for the program. Victim 1 was told by members of the conspiracy that he had been approved for $100,000 in grant funds but would need to pay taxes before he could receive the grant funds. As instructed by members of the conspiracy, Victim 1 sent multiple packages of money, including to Akinyemi. To induce Victim 1 to continue to send money, members of the conspiracy sent Victim 1 electronic “certificates,” including a “Certificate of Completion” bearing the Internal Revenue Service seal, stating that it was from the “Federal and State Tax Institutes.” Victim 1 also received a certificate with a U.S. flag on it with the words “Federal Grants” next to it which included Victim 1’s full name and the text: “Federal Government Grants for the sum of $5,000,000.” After receiving these certificates, Victim 1 continued to send money to Akinyemi and other members of the conspiracy. In total, Victim 1 sent between approximately $70,000 to $80,000 to Akinyemi.
Victim 2, who was 71 years old and lived in Indiana, received a message from someone they believed to be a high school friend regarding a “Strengthening Community Fund,” but was, in fact, a member of the conspiracy posing as the victim’s high school friend. The conspiracy member told Victim 2 that they received money from the fund in the recent past and that there were different amounts for which a person could apply. The member of the conspiracy then provided Victim 2 with the contact information for a fictitious agent representing the “Fund.”
After Victim 2 contacted and sought information regarding the Fund, a member of the conspiracy masquerading as an agent asked Victim 2 if they were ready to apply. When Victim 2 communicated their desire to do so, the member of the conspiracy sought biographical information from Victim 2, including their monthly income. Once Victim 2 provided this information, the member of the conspiracy informed Victim 2 that they had been “approved.” Victim 2 applied for $80,000, which Victim 2 believed would cost $800 in fees. Victim 2 sent a total of approximately $50,000 in fictitious fees and taxes in order to obtain money from the fictitious fund.
During an interview with law enforcement on April 25, 2019, Akinyemi confirmed that he had received packages from victims throughout the country, detailed the scheme to defraud, and informed investigators that individuals in Nigeria were responsible for soliciting the victims to send money to him. Further, Akinyemi stated that he received approximately $80,000 in the mail in the year prior to his interview. A subsequent review of Akinyemi’s phone revealed, among other things, photos of tracking numbers and dollar amounts, a receipt for a money order, and conversations with conspirators discussing the percentage of the proceeds Akinyemi would take for his participation in the conspiracy. At least five victims suffered a substantial financial hardship as a result of the money that was fraudulently obtained by Akinyemi and his co-conspirators during the execution of the scheme.
According to his plea agreement, beginning in December 2020, Akinyemi and other co-conspirators also illegally obtained unemployment and CARES Act COVID-19 related benefits by filing fraudulent unemployment claims in the names of living and deceased victims from Maryland and Arizona. Akinyemi and his co-conspirators used the mailing address of his Landover residence, as well as the home address of a Washington D.C. client to whom Akinyemi provided at-home nursing care services to receive the fraudulent unemployment insurance debit cards in the mail. A total of nine unemployment insurance claims were filed using the address of Akinyemi’s D.C. nursing care client. As stated in his plea agreement, 10 CARES Act Pandemic Unemployment Assistance (“PUA”) claims were filed with the state of Maryland using Akinyemi’s Landover residence as the mailing address, with an intended loss of more than $170,000.
In total, Akinyemi and his co-conspirators used the identities of 19 real individuals to file fraudulent CARES Act unemployment insurance and PUA claims, causing an actual loss of more than $7,000, and an intended loss of $250,000 in state and federal benefits.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The Pandemic Response Accountability Committee (PRAC) Fraud Task Force was established to serve the American public by promoting transparency and facilitating coordinated oversight of the federal government’s COVID-19 pandemic response. The PRAC Fraud Task Force brings together agents from its 22 member Inspectors General to investigate fraud involving a variety of programs, including the Paycheck Protection Program. Task force agents who are detailed to the PRAC receive expanded authority to investigate pandemic fraud as well as tools and training to support their investigations.
The Department of Justice runs the National Elder Fraud Hotline at 1-833-FRAUD-11 (1-833-372-8311), has an interactive tool for elders who have been financially exploited to help determine to which agency they should report their incident, and also a senior scam alert website. Victims are encouraged to file a complaint online with the FBI’s Internet Crime Complaint Center at this website or by calling 1-800-225-5324. Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP.
United States Attorney Erek L. Barron commended HSI, the DOL-OIG, and the Prince George’s County Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Rajeev R. Raghavan, who is prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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New York Donut Shop Operators Sentenced to Prison for Tax EvasionRead the Press Release
A New York couple and their adult son were sentenced to prison today for conspiring to defraud the United States and for tax evasion.
In November 2021, John Zourdos, his wife Helen Zourdos and their son Dimitrios Zourdos, all of Rome, were each convicted by a federal jury of conspiracy to defraud the United States, tax evasion and helping to file false corporate tax returns. U.S. District Court Judge David N. Hurd sentenced John Zourdos to 30 months in prison, Helen Zourdos to 20 months in prison and Dimitrios Zourdos to 10 months in prison.
According to evidence presented at trial and other court documents, John, Helen and Dimitrios operated three Dippin Donuts coffee and donut shops with locations in Rome and New Hartford. From 2012 to 2017, the defendants concealed from the IRS approximately $4.5 million in cash sales. During that period, they evaded more than $2 million in individual and corporate taxes by, among other things, depositing cash directly into their personal bank accounts instead of into business bank accounts, providing incomplete information to their accountants, causing their accountants to file false individual and corporate tax returns with the IRS, and funding personal expenditures directly with undeposited and unreported cash. They used unreported income to fund a lavish lifestyle that included multiple luxury vehicles, expensive watches, investment accounts and real estate. They also paid some employees “off the books” cash wages for overtime hours, and paid other employees entirely in “off the books” cash.
In addition to the terms of imprisonment, Judge Hurd ordered each defendant to serve three years of supervised release and to pay more than $2 million in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Carla B. Freedman for the Northern District of New York made the announcement.
IRS-Criminal Investigation investigated the case.
Assistant Chief John N. Kane of the Tax Division and Assistant U.S. Attorney Michael F. Perry for the Northern District of New York prosecuted the case.
New Orleans Man Sentenced to over 16 Years for Gun and Drug OffensesRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that SHEON COPPRUE, age 52, of New Orleans, was sentenced to sixteen and a half years in prison on charges relating to drug trafficking, firearm possession, and bribery.
COPPRUE previously pled guilty to conspiring to distribute and to possess with the intent to distribute 50 grams or more of methamphetamine and 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine, in violation of 21 U.S.C. §§ 841(a)(1), 841(b)(1)(A), and 846. COPPRUE also pled guilty to possession of a firearm by a felon, in violation of 18 U.S.C. § 922(g)(1), and bribery of a public official, in violation of 18 U.S.C. § 201(b)(1).
According to court documents, COPPRUE conspired with several California-based drug dealers, including codefendants Allen EDGERSON and Rachel CESARIO, to ship large quantities of methamphetamine from California to New Orleans. COPPRUE also bribed codefendant TONYA CALVIN, a postal worker, to deliver the drug-filled packages to him in New Orleans. COPPRUE, who was a felon and prohibited from possessing firearms, was caught with four firearms that he kept at his home and another address where he stored narcotics. All of COPPRUE’s co-defendants have already pled guilty, and all but CALVIN have already been sentenced. EDGERSON was sentenced to over seventeen years in prison, and CESARIO to five years in prison.
Today, U.S. District Judge Sarah S. Vance sentenced COPPRUE to a 198-month term of imprisonment or sixteen and a half years, a mandatory special assessment fee of $300, and five years of supervised release.
U.S. Attorney Evans praised the work of the United States Postal Inspection Service, the Drug Enforcement Administration, and the Louisiana State Police. Assistant U.S. Attorney Nicholas D. Moses is in charge of the prosecution.
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Navajo man sentenced to eight years in prison for assault in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced that Meredith Yazzie, 51, of To’hajiilee, New Mexico, was sentenced on July 12 to eight years and four months in prison. Yazzie pleaded guilty on Sept. 13, 2021, to assault in Indian Country resulting in serious bodily injury and assaulting a federal officer.
In his plea agreement, Yazzie admitted that on May 25, 2020, he intentionally stabbed a man in the torso with a knife, causing a puncture to the man’s heart and lungs. During his apprehension on June 11, 2020, Yazzie raised a hatchet menacingly at a federal officer. The assaults occurred on the Navajo Nation in Bernalillo County, New Mexico.
Upon his release from prison, Yazzie will be subject to three years of supervised release.
The FBI Albuquerque Field Office investigated this case with assistance from the Navajo Nation Police Department. Assistant United States Attorney Joseph Spindle prosecuted the case.
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Muskegon Man Charged with Drug Trafficking, Firearms OffensesRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Mark Totten announced today that Saul Douglas Briggs, a/k/a “76 Chain,” a/k/a “Chain,” a 32 year-old resident of Muskegon, Michigan, has been indicted on multiple drug trafficking charges, including conspiracy to distribute fentanyl, heroin, cocaine, and methamphetamine, as well as possession of controlled substances with the intent to distribute them. Briggs is also charged with illegal firearms possession and maintaining a drug house.
The charges stem from a series of search warrants conducted by law enforcement in and around the Muskegon area in June 2022. On the afternoon of June 15, 2022, investigators raided a residence at 2060 Letart Avenue in Muskegon, which they suspected to be a stash house used by Briggs and other drug traffickers to store and process their illegal products. Inside, investigators seized approximately 8 kilograms of suspected fentanyl, 774 grams of suspected black tar heroin, 61 grams of suspected cocaine, and 22 grams of suspected methamphetamine. They also seized extensive drug trafficking paraphernalia as well as seven firearms, including four assault style rifles, a tactical shotgun, and two semi-automatic pistols. They recovered one of the pistols under the seat of Briggs’s vehicle. In related searches as part of the same investigation, law enforcement also seized nearly $250,000 in cash believed to be proceeds of drug trafficking, jewelry, and multiple vehicles.
At the time of the search of the residence at 2060 Letart Avenue, Briggs, who had been inside, attempted to flee on foot, running out of the house and jumping over the back fence of the residence. Investigators apprehended Briggs and took him into custody at that time.
The investigation into Briggs is part of Operation Interstate Zeus, an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation that began in 2019 and has been led by the Drug Enforcement Administration (DEA) and members of Michigan State Police’s West Michigan Enforcement Teams (WEMET). To date, the operation has led to the prosecution and conviction of 10 separate defendants on drug trafficking charges.
OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The charges in the indictment are merely accusations and are not evidence of guilt. The defendant is presumed innocent unless and until proven guilty in a court of law. The government has the burden of proving guilt beyond a reasonable doubt.
This case is being prosecuted by Assistant U.S. Attorney Stephanie M. Carowan.
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