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Wednesday 18 May 2022
Ship Chief Engineer Pleads Guilty to Intentional Discharge of Oily Waste and Obstruction of Justice Charges in New OrleansRead the Press Release
The Chief Engineer of a foreign flagged vessel pleaded guilty today to two felony counts for deliberately discharging approximately 10,000 gallons of oil-contaminated bilge water overboard in U.S. waters off the coast of New Orleans last year and then trying to obstruct the Coast Guard’s investigation of the spill. The illegal conduct was first reported to the Coast Guard by a crew member via social media.
Kirill Kompaniets, a Russian national and the Chief Engineer of the ship, a commercial bulk carrier registered in the Marshall Islands, was charged with the illegal discharge in violation of the Act to Prevent Pollution from Ships. According to papers filed in court, repair operations were underway to correct a problem with the discharge of clean ballast water when a valve burst and the engine room flooded. Late on the night of March 13-14, 2021 after the leak had been controlled, Kompaniets and a subordinate engineer deliberately dumped the oil contaminated water in the bilges overboard. The discharge into U.S. waters occurred while the ship was at an anchorage near the South West Passage off the Louisiana coast. The ship’s required pollution prevention equipment – an oily-water separator and oil content monitor – were not used, and the discharge was not recorded in the Oil Record Book, a required ship log.
Kompaniets was also charged with obstruction of justice based on various efforts to conceal the illegal discharge. In a joint factual statement filed in court with his guilty plea, Kompaniets admitted to the following acts of obstruction of justice: (1) making false statements to the Coast Guard that concealed the cause and nature of a hazardous condition, and concealing that the engine room of the vessel had flooded and that oil-contaminated bilge water had been discharged overboard; (2) destroying the computer alarm printouts for the period of the illegal discharge that were sought by the Coast Guard; (3) holding meetings with subordinate crew members and directing them to make false statements to the Coast Guard; (4) making a false Oil Record Book that failed to disclose the illegal discharge; (5) directing subordinate engine room employees to delete all evidence from their cell phones in anticipation of the Coast Guard inspection; and (6) preparing a retaliatory document accusing the whistleblower of poor performance as part of an effort to discredit him.
“The intentional pollution of U.S. waters and the deliberate effort to cover up the crime are extremely serious criminal offenses that will not be tolerated,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “Prosecutions such as this one should send a clear message to those that would violate the law and endanger our precious natural resources.”
“The defendant in this case deliberately disregarded procedures designed to protect the environment from contaminants and then attempted to hide his actions,” said U.S. Attorney Duane A. Evans for the Eastern District of Louisiana. “Today’s announcement emphasizes that our office along with our federal partners are committed to holding accountable all parties whose criminality jeopardizes our environment and places the public and the ecosystem at risk.”
The criminal prosecution is being handled by Assistant U.S. Attorney G. Dall Kammer for the Eastern District of Louisiana and Senior Litigation Counsel Richard A. Udell of the Environment and Natural Resources Division's Environmental Crimes Section, with assistance provided by District 8 of the U.S. Coast Guard and the Coast Guard Criminal Investigations Division.
The investigation is continuing.
The case was assigned to U.S. District Court Chief Judge Nannette Jolivette Brown. Sentencing has been scheduled for September 1.
Ship Chief Engineer Pleads Guilty to Intentional Discharge of Oily Waste and Obstruction of Justice Charges in New OrleansRead the Press Release
The Chief Engineer of a foreign flagged vessel pleaded guilty today to two felony counts for deliberately discharging approximately 10,000 gallons of oil-contaminated bilge water overboard in U.S. waters off the coast of New Orleans last year and then trying to obstruct the Coast Guard’s investigation of the spill. The illegal conduct was first reported to the Coast Guard by a crew member via social media.
Kirill Kompaniets, a Russian national and the Chief Engineer of the ship, a commercial bulk carrier registered in the Marshall Islands, was charged with the illegal discharge in violation of the Act to Prevent Pollution from Ships. According to papers filed in Court, repair operations were underway to correct a problem with the discharge of clean ballast water when a valve burst and the engine room flooded. Late on the night of March 13-14, 2021 after the leak had been controlled, Kompaniets and a subordinate engineer deliberately dumped the oil contaminated water in the bilges overboard. The discharge into U.S. waters occurred while the ship was at an anchorage near the South West Passage off the Louisiana coast. The ship’s required pollution prevention equipment – an oily-water separator and oil content monitor – were not used, and the discharge was not recorded in the Oil Record Book, a required ship log.
Kompaniets was also charged with obstruction of justice based on various efforts to conceal the illegal discharge. In a joint factual statement filed in Court with his guilty plea, Kompaniets admitted to the following acts of obstruction of justice: (1) making false statements to the Coast Guard that concealed the cause and nature of a hazardous condition, and concealing that the engine room of the vessel had flooded and that oil-contaminated bilge water had been discharged overboard; (2) destroying the computer alarm printouts for the period of the illegal discharge that were sought by the Coast Guard; (3) holding meetings with subordinate crew members and directing them to make false statements to the Coast Guard; (4) making a false Oil Record Book that failed to disclose the illegal discharge; (5) directing subordinate engine room employees to delete all evidence from their cell phones in anticipation of the Coast Guard inspection; and (6) preparing a retaliatory document accusing the whistleblower of poor performance as part of an effort to discredit him.
“The intentional pollution of U.S. waters and the deliberate effort to cover up the crime are extremely serious criminal offenses that will not be tolerated,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “Prosecutions such as this one should send a clear message to those that would violate the law and endanger our precious natural resources.”
“The defendant in this case deliberately disregarded procedures designed to protect the environment from contaminants and then attempted to hide his actions,” said U.S. Attorney Duane A. Evans. “Today’s announcement emphasizes that our office along with our federal partners are committed to holding accountable all parties whose criminality jeopardizes our environment and places the public and the ecosystem at risk.”
The criminal prosecution is being handled by Assistant U.S. Attorney G. Dall Kammer for the Eastern District of Louisiana and Senior Litigation Counsel Richard A. Udell of the Environment and Natural Resources Division's Environmental Crimes Section, with assistance provided by District 8 of the U.S. Coast Guard and the Coast Guard Criminal Investigations Division.
The investigation is continuing.
The case was assigned to U.S. District Court Chief Judge Nannette Jolivette Brown. Sentencing has been scheduled for September 1.
Seven South Korean Companies Agree to Pay Approximately $3.1 Million to Settle Civil False Claims Act Allegations for Bid Rigging on U.S. Department of Defense ContractsRead the Press Release
Seven South Korea-based companies have agreed to pay $3.1 million to resolve allegations they violated the False Claims Act by engaging in a bid-rigging conspiracy that targeted U.S. Army Corps of Engineers (USACE) contracts for construction and engineering work on U.S. military bases in South Korea. The seven companies are Korea Engineering Consultants Corporation; Yul Lim Construction Co. Ltd.; Shin Woo Construction & Industrial Co. Ltd.; Seongbo Const. Ind. Co. Ltd.; Wooseok Construction Co. Ltd.; Yuil Engineering and Construction Co.; and Seokwang Development Co. Ltd. The companies have agreed to each pay an equal share of the settlement amount.
The United States alleged the seven companies conspired to suppress and eliminate competition during the bidding process on 15 USACE contracts awarded between 2016 and 2019. The United States further alleged that as a result of this anticompetitive conduct, the USACE paid substantially more for services performed under the contracts than it would have had there been competition among the bidders.
“Contractors, both foreign and domestic, provide valuable services to our armed forces around the globe,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will ensure that such entities face appropriate consequences, however, if they fail to comply with the law and instead engage in corrupt practices at the expense of our nation’s military and the American taxpayers.”
“The U.S. Army Criminal Investigation Division (Army CID) will hold accountable those who defraud the U.S. government, no matter where they are,” said Special Agent in Charge Scott Moreland of the Army CID’s Major Procurement Fraud Field Office. “We appreciate the steadfast partnership shown by our fellow federal agencies to bring this scheme to a halt.”
“The agreement announced today is another example of the FBI’s ongoing work to eliminate bid-rigging and price fixing and ensure those engaged in such behavior are brought to justice,” said Assistant Director in Charge Kristi Johnson of the FBI's Los Angeles Division. “Such activity cheats American taxpayers while harming competitive markets. Simply put, collusion on contracts will not be tolerated; and this case sends a clear message that the FBI and its partners will hold individuals and corporations accountable when they violate federal statutes.”
“The integrity of the Department of Defense’s procurement system is critical to our nation’s military readiness,” said Special Agent in Charge Stanley A. Newell of the Defense Criminal Investigative Service (DCIS) Transnational Operations Field Office. “The special agents of the Department of Defense Office of Inspector General Defense Criminal Investigative Service are steadfast in our mission to root out fraud and corruption that threatens the programs and components of the DoD. This outcome should resonate as a strong warning to those who seek enrichment at the expense of America’s national defense. DCIS and our partner agencies will use all tools at our disposal to bring these unscrupulous actors to justice.”
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; the Army CID Major Procurement Fraud Unit; the FBI’s International Contract Corruption Task Force; and DCIS.
The matter was handled by Senior Trial Counsel Andrew A. Steinberg of the Civil Division's Fraud Section.
The claims resolved by the settlements are allegations only and there has been no determination of liability.
Searcy Man Sentenced to 30 Years in Prison for Producing Child PornographyRead the Press Release
LITTLE ROCK—A Searcy man who sexually abused numerous young boys for years was sentenced yesterday afternoon for production of child pornography. United States District Court Judge Billy Roy Wilson sentenced John Ronald Ord, 51, to 30 years in federal prison. This 30-year sentence is the maximum allowed by law.
In 2019, Searcy Police Department began investigating Ord after a teenager reported he had been sexually abused by Ord for several years, beginning in 2012. Their investigation revealed that the defendant had been preying on teenage boys as far back as 1999 by exploiting their weaknesses, such as hunger, lack of a stable environment, or financial needs. Ord would then provide the boys with drugs and alcohol before sexually abusing them. At least 19 of Ord’s victims have been identified.
Law enforcement obtained a search warrant for Ord’s phone and saw a conversation on a dating app called Grindr. In the app, Ord had a conversation in December 2018 with a 14-year-old boy in which Ord asked the boy to send him a photograph of his penis. This conduct led to the production of child pornography charge in December 2019. Ord was detained at that time and pleaded guilty in December 2021.
Five of Ord’s victims were present at the sentencing hearing and testified about their abuse at the hands of Ord. In addition to the prison term, Ord was sentenced to a lifetime of supervised release following his imprisonment. The investigation was conducted by the Searcy Police Department, the FBI, and the United States Secret Service. The case was prosecuted by Assistant United States Attorneys Kristin Bryant and John Ray White.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Sean Robert Wathen of Hope, Idaho, Convicted for Conspiracy to Distribute MethamphetamineRead the Press Release
COEUR D’ALENE – A federal jury convicted Sean Robert Wathen on Friday, May 13, 2022, for conspiracy to distribute methamphetamine.
According to court records and evidence presented at trial, Wathen worked with Larry Junior Hillbroom and others to acquire and smuggle methamphetamine through international airports between North Idaho and the Pacific Islands of Guam and Palau. Wathen acquired pounds of methamphetamine for Hillbroom over several months in 2015. Hillbroom and others would then use several different methods to smuggle the drugs, including shampoo containers and carrying the substance on their person, to Guam and Palau. Once in Guam or Palau, Hillbroom would coordinate with locally-based individuals to sell the methamphetamine. Law enforcement officers learned of the conspiracy, investigated, and ultimately arrested Hillbroom and his coconspirators.
Wathen is scheduled to be sentenced on August 9, 2022 and faces a maximum penalty of 20 years in federal prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Wathen was originally charged with Morgan Kenney, 36, Zachary Craig Carlson, 31, and Larry Junior Hillbroom, 37, all of Hope, Idaho. Kenney, Carlson, and Hillbroom previously pleaded guilty and were sentenced to imprisonment. Morgan Kenny was sentenced to 52 months, Zachary Craig Carlson was sentenced to 37 months imprisonment, and Larry Junior Hillbroom was sentenced to 96 months imprisonment.
U.S. Attorney Rafael M. Gonzalez, Jr., of the District of Idaho made the announcement and commended the cooperative efforts of the Drug Enforcement Administration, Bonner County Sheriff's Office, Bureau of Indian Affairs, Coeur d’Alene Police Department, Idaho State Police, U.S. Border Patrol, and the U.S. Marshals Service, which led to charges.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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Savannah man sentenced to federal prison for possession of child pornographyRead the Press Release
SAVANNAH, GA: A Chatham County man was sentenced to 10 years in prison after a jury found him guilty of possession of hundreds of images of child sexual exploitation.
Michael Todd Morris, 27, of Savannah, was sentenced to 120 months in prison after a U.S. District Court jury previously found him guilty of Possession of Child Pornography, said David H. Estes, U.S. Attorney for the Southern District of Georgia. U.S. District Court Judge R. Stan Baker also ordered Morris to pay $19,000 in restitution, to register as a sex offender, and to serve 15 years of supervised release after completion of his prison term. There is no parole in the federal system.
“Images that sexually exploit children are visual reminders of the victimization of the vulnerable,” said U.S. Attorney Estes. “This sentence should serve as a warning to anyone who would possess such vile imagery that we and our law enforcement partners will find them and hold them accountable.”
A jury convicted Morris of Possession of Child Pornography in October 2021 after a three-day trial, where evidence and testimony proved that he possessed hundreds of images of child sexual exploitation and child erotica. Homeland Security Investigations, alerted via a cyber tip from the National Center for Missing and Exploited Children, discovered the images on electronic devices in Morris’ possession.
“Every time these disturbing images are viewed it re-victimizes an innocent person and prevents them from healing from this trauma; this is why stopping the collection and distribution of these images is so important,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “This defendant will now face the consequences for his actions thanks to the great work done by HSI and its law enforcement partners.”
The case was investigated under the Department of Justice Project Safe Childhood initiative by Homeland Security Investigations, and prosecuted for the United States by Assistant U.S. Attorney and Project Safe Childhood Coordinator Tara M. Lyons.
Anyone with information on suspected child sexual exploitation can contact the National Center for Missing and Exploited Children at 800-843-5678, or https://report.cybertip.org/.
Ridley Township Tax Collector Sentenced to One Year for Tax EvasionRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Rosezanna Czwalina, 70, of, of Morton, PA, was sentenced to one year in prison, one year supervised release, and was ordered to pay $112,846 restitution by United States District Court Judge Paul S. Diamond for committing tax fraud.
In June 2021, the defendant pleaded guilty to five counts of filing materially false tax returns in connection with her efforts to avoid paying her duly owed tax obligations. Czwalina, who had been the elected tax collector and treasurer for Ridley Township, Delaware County, PA from 2009 until her resignation in 2021, was authorized to retain, as a supplement to her income, fees paid for tax certifications and generation of duplicate tax bills. However, the defendant failed to report those retained fees as income on her federal income tax returns for the years 2014 through 2018.
“The American tax system provides government services critical to our people,” said U.S. Attorney Williams. “Every time someone cheats the tax system, the burden of providing vital services increases on taxpayers who pay their fair share. As an elected official responsible for collecting taxes and managing public money, this defendant knew what her obligations were and willfully chose to ignore them.”
“As the township’s own tax collector, Czwalina well knew the importance of tax revenue to the proper functioning of government,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “And yet, for years, she knowingly shorted the federal system and its taxpayers by failing to report her true income. Elected officials must be held to the highest of ethical standards and when their actions cross into criminality, the FBI and our partners won’t hesitate to investigate and hold them properly accountable.”
“Honest taxpayers are fed up with the likes of Czwalina, who knowingly disregarded her legal duty to pay her fair share of taxes year after year,” said IRS Criminal Investigation Special Agent in Charge Yury Kruty. “It is our hope that the sentence she received would deter would-be tax cheats.”
The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service and was prosecuted by Assistant United States Attorney K.T. Newton.
Rexburg Man Sentenced to 12 Years in Federal Prison for Distributing Child PornographyRead the Press Release
POCATELLO – A Rexburg man was sentenced to 144 months in federal prison for distribution of child pornography.
According to court records, in May 2020, the residence of Daniel Gary Archibald, 45, was searched by detectives with the Idaho Internet Crimes Against Children task force. The search was conducted at Archibald’s Rexburg residence after receiving information that he was chatting with a 14-year-old girl online. During the search, law enforcement found a laptop and cellphone hidden under Archibald’s mattress.
Archibald had an active Twitter account that was discovered during the search of his devices. Archibald distributed child pornography videos through this Twitter account sharing links to videos of child pornography. In total, Archibald distributed over 3,300 videos of child pornography.
Senior U.S. District Judge B. Lynn Winmill also ordered Archibald to serve ten years of supervised release following his prison sentence. Archibald pleaded guilty to the charges on February 15, 2022.
U.S. Attorney Rafael M. Gonzalez, Jr., of the District of Idaho made the announcement and commended the cooperative efforts of the Idaho Internet Crimes Against Children task force, Homeland Security Investigations (HSI), and the Idaho Falls Police Department, which led to charges.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Reseda Man Sentenced to Nearly 10 Years in Prison for Burglarizing Self-Storage Units Then Selling Stolen Firearms to Convicted FelonsRead the Press Release
LOS ANGELES – A San Fernando Valley man was sentenced today to 115 months in federal prison for burglarizing self-storage units in Southern California, stealing dozens of firearms, and selling some of the weapons to convicted felons.
Rick Eric Herst, 36, a.k.a. “Loyal,” of Reseda, was sentenced by United States District Judge Michael W. Fitzgerald.
Herst pleaded guilty in February 2021 to one count of conspiracy to traffic in firearms and one count of selling firearms to a convicted felon.
From December 2018 to September 2019, Herst conspired with Jeffrey James LaFraniere, 39, of Van Nuys, and Alan Elperin, 31, of Mission Hills. Together, these three men burglarized multiple self-storage units in Glendale, Valencia, Culver City, West Los Angeles, Northridge, Culver City, Thousand Oaks, Rancho Mirage and elsewhere, stealing firearms and other valuables. They offered the stolen firearms for sale to customers either in person or via text message. LaFraniere and Herst sold the firearms to buyers they knew were convicted felons.
For example, on May 30, 2019, the trio burglarized a self-storage facility in Valencia and stole 35 firearms, including multiple .45-caliber pistols, 12-gauge shotguns and high-powered rifles. On the same day as the Valencia burglary, LaFraniere and Herst sold two of the stolen firearms – a .45-caliber pistol and a .40-caliber pistol – to a buyer whom they knew was a convicted felon.
At the time of his arrest in March 2020, law enforcement executed a search warrant at Herst’s residence and found a loaded Glock 9mm pistol, which was one of multiple weapons stolen during a residential burglary that occurred in or around January 2020. Herst also possessed 14 shotgun shells, 95 rounds of .38-caliber ammunition, more than 30 stolen debit and credit cards, multiple stolen or fake California driver’s licenses, and a large quantity of stolen merchandise belonging to various burglary victims.
“Although many guns have not been recovered, those that have were largely found in the hands of felons or recovered at crime scenes,” prosecutors wrote in a sentencing memorandum.
Elperin pleaded guilty in November 2020 to one count of conspiracy and one count of receiving stolen firearms. He is serving a 100-month federal prison sentence. LaFraniere pleaded guilty in September 2020 to one count of conspiracy, one count of receiving stolen firearms and one count of selling firearms to a felon. His sentencing hearing is scheduled for May 26, at which time he will face a statutory maximum sentence of 25 years in federal prison.
The FBI Eurasian Organized Crime Task Force and the Los Angeles County Sheriff’s Department investigated this matter.
Assistant United States Attorney Ian V. Yanniello of the International Narcotics, Money Laundering, and Racketeering Section prosecuted this case.
Recidivist Drug Trafficker Sentenced to More Than 11 Years in Federal PrisonRead the Press Release
Moses Lake and Yakima, Washington – On May 11, 2022, Chief United States District Judge Stanley A. Bastian sentenced Reymundo Garcia, 59, of Ephrata, Washington, to 135 months of imprisonment, to be followed by a five-year term of court supervision after he is released from federal prison. In 2021, Garcia pleaded guilty to engaging in a conspiracy to distribute 50 grams or more of pure methamphetamine. As part of his plea agreement, Garcia also agreed to forfeit any interest in his ranch, which he used to facilitate his drug trafficking conduct by providing a location for both drug dealing and active drug use.
According to information disclosed during court proceedings, Garcia was a member of a drug trafficking organization operating out of Moses Lake, Washington, and Grant County. During the course of an investigation by the FBI Safe Streets Task Force in the Tri-Cities, law enforcement officers seized multiple pounds of methamphetamine, several hundred fentanyl laced pills, heroin, and numerous stolen firearms and ammunition. Garcia engaged in this serious drug-dealing conduct after having been convicted in federal court on two prior occasions for drug trafficking and firearms possession. Chief Judge Bastian noted Garcia’s history of drug trafficking and that selling methamphetamine and heroin has been Garcia’s primary way of life. As a result, Chief Judge Bastian imposed what he described as “forced retirement” from this criminal conduct to protect the community from Garcia’s drug dealing and facilitation of drug use.
“Strong partnerships and collaboration between federal, state, and local law enforcement in central and southeastern Washington are protecting our community and ensuring that repeat drug offenders stop distributing poison in our neighborhoods,” said Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington. “Today’s sentence takes a serious, recidivist drug trafficker off the streets and sends a clear message to others who might choose to engage in similar activity: we are committed to ensuring a safe and strong Eastern Washington community, and this kind of conduct will be ferreted out, investigated, and prosecuted to the fullest extent of the law.”
“By using his residence to facilitate drug trafficking and his prior offenses, Mr. Garcia has shown that his criminal activity is part of a long-term lifestyle,” said Donald M. Voiret, Special Agent in Charge of the FBI Seattle Field Office. “The FBI commends the work of our investigating and prosecuting partners to protect our neighborhoods for law-abiding citizens and remove these dangerous drugs from our communities.”
This case was 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. Information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case was investigated by the FBI Safe Streets Task Force in Tri-Cities, Washington, in cooperation with the police departments of Moses Lake, Kennewick, Richland, and Pasco, and the Benton County Sheriff’s Office, along with the Washington Department of Corrections. This case was prosecuted by Stephanie Van Marter and Brian M. Donovan, Assistant United States Attorneys for the Eastern District of Washington.
Quincy Man Sentenced to Five Years in Federal Prison for Distributing MethamphetamineRead the Press Release
SPRINGFIELD, Ill. – A Quincy, Illinois, man, Warren Mason, 29, formerly of the 1400 block of North 3rd Street, was sentenced on May 17, 2022, to 60 months’ imprisonment, to be followed by 48 months of supervised release, for distributing over five grams of 99% pure methamphetamine on two occasions in Quincy, Illinois.
At the sentencing hearing, United States District Judge Sue Myerscough heard evidence presented by the government that on January 29, 2019, Mason distributed 6.5 grams of highly pure methamphetamine and on February 4, 2019, he distributed 8.1 grams. It was also determined that while initially on bond on the federal charges, Mason committed felony domestic battery for which he was convicted in Adams County, Illinois, Circuit Court and for which his federal bond was revoked.
The statutory penalties for conspiracy to distribute five but less than 50 grams of methamphetamine is a minimum of five years and up to 40 years’ imprisonment, up to a $5,000,000 fine, and up to four years of supervised release.
The West Central Illinois Task Force, Illinois State Police, Quincy Police Department, and Adams County States Attorney’s Office were involved in the investigation and prosecution of this case. Assistant U.S. Attorney Tanner Jacobs represented the government in the prosecution.
The case against Mason was brought as part of The Department of Justice’s Project Safe Neighborhoods initiative. The Department’s renewed commitment to Project Safe Neighborhoods establishes four fundamental principles to guide efforts to reduce violent crime: 1) build trust and legitimacy within communities; 2) invest in community-based prevention and intervention programs; 3) target enforcement and priorities to focus resources on identifying, investigating, and prosecuting the most significant drivers of gun violence and other violent crime; and, 4) measure results with the goal to reduce the level of violence in our communities and not to increase the number of arrests and prosecutions as if they were ends in themselves.
Prison Guard Pleads Guilty to Sexually Abusing InmatesRead the Press Release
A former federal correctional officer pleaded guilty today to sexually abusing multiple inmates in Fort Worth, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Luis Curiel, 47, pleaded guilty on Wednesday to two counts of sexual abuse of a ward.
“Curiel abused his authority as a correctional officer and sexually abused several inmates under his supervision. Sexual abuse of inmates is never tolerated, and the Department of Justice Office of the Inspector General will continue to investigate and hold accountable those who engage in this kind of conduct,” said Cloey C. Pierce, Special Agent in Charge of the Department of Justice Office of the Inspector General Dallas Field Office.
According to plea papers, Mr. Curiel, a former Federal Bureau of Prisons correctional officer at the Carswell Federal Medical Center, admitted to sexually abusing at least three inmates, identified in court documents as B.B.M., M.C., and N.R.
In October 2021, Mr. Curiel admitted, he met one inmate by a staff elevator and engaged in sexual acts with her in a nearby stairwell. That same month, he engaged in sexual acts with two more inmates outside the same staff elevator. At the time, all three victims were in official detention and under his custodial, supervisory, or disciplinary authority.
FMC Carswell is an administrative security federal prison that serves female inmates with specialized medical and mental health needs.
Mr. Curiel now faces up to 30 years in federal prison (15 years per count). His sentencing has been set for Sept. 8.
The Department of Justice Office of Inspector General conducted the investigation with the full cooperation of the Federal Bureau of Prisons. Assistant U.S. Attorney Aisha Saleem is prosecuting the case.
Port Arthur Felon Sentenced for Federal Firearms ViolationRead the Press Release
BEAUMONT, Texas – A Port Arthur man has been sentenced to 10 years in federal prison for a firearms violation in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Jesus Antonio Ceja, 30, pleaded guilty on August 2, 2021, to being a felon in possession of a firearm and was sentenced to 120 months in federal prison by U.S. District Judge Marcia A. Crone on May 17, 2022.
According to court documents, on Feb. 9, 2020, law enforcement officers observed a vehicle stopped at an intersection in 5200 block of 15th Street in Port Arthur. As the officer approached the vehicle, he saw the driver, later identified as Ceja, with his head down. The officer drove towards the vehicle to see if the driver was in need of assistance, at which time Ceja looked at the officer and accelerated away at a high rate of speed. As the officer turned around to follow the vehicle, he saw that Ceja had crashed his vehicle into a pole at the nearby intersection of Lewis and Lakeview streets. Ceja repeatedly reached under the seat and ignored commands to show his hands and exit the vehicle. After the officer opened the passenger door, Ceja exited the vehicle and crawled on top of it, refusing to come down. Once other officers arrived, Ceja came down off the car and told officers there was methamphetamine and a firearm in the car. Further investigation revealed Ceja was a convicted felon having previously been found guilty of felony escape in Jefferson County in 2008. As a convicted felon, Ceja is prohibited from owning or possessing firearms or ammunition. Ceja was indicted by a federal grand jury on April 27, 2021.
This case was 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 Port Arthur Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorney Matthew Quinn.
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Pittsburgh Felon Admits Illegally Possessing a Firearm and AmmunitionRead the Press Release
PITTSBURGH, PA -- A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to a charge of violating federal firearm laws, United States Attorney Cindy K. Chung announced today.
Douglas Wright, age 41 pleaded guilty to one count before United States District Judge Marilyn J. Horan.
In connection with the guilty plea, the court was advised that Wright, a convicted felon, possessed firearms and ammunition. The defendant directed a “crack” addict to purchase two firearms for him. He also admitted to acquiring a third from that same individual. The ATF recovered two of the three firearms. The defendant admitted to throwing the third firearm out of a vehicle because he believed that law enforcement intended to conduct a traffic stop on him while the firearm was in his possession. Possession of a firearm and ammunition as a convicted felon is prohibited under federal law.
Judge Horan scheduled sentencing for September 7, 2022, at 9:00 a.m. The law provides for a total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued the defendant on bond.
Assistant United States Attorney Brendan J. McKenna is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation that led to the prosecution of Wright.
Pair Sentenced for Their Roles in Dispersing Proceeds of Internet and Email Fraud SchemesRead the Press Release
PROVIDENCE – Two men who played various roles in an underground financial network in support of international internet and email fraud schemes have been sentenced to federal prison, announced United States Attorney Zachary A. Cunha.
Babawale Jenyo, 33, of Warwick, previously convicted at trial of operating an illegal money transmitting business, was sentenced on Tuesday by U.S. District Court Chief Judge John J. McConnell, Jr., to a year and a day in federal prison; Abiodun Shobaloju, 29, of Baltimore, MD, who previously pled guilty to wire fraud, was sentenced by Chief Judge McConnell on April 26, 2022, to 24 months of incarceration and ordered to pay restitution to fraud victims totaling $136,431.
According to court documents, Shobaloju was part of a conspiracy that carried out email and romance scams that succeeded in fraudulently obtaining large sums from multiple victims. As part of his role in the conspiracy, Shobaloju provided members of the conspiracy with critical bank information, and also created a shell company and bank account to be used expressly to receive and disperse proceeds from the fraud scheme. Once the ill-gotten funds were deposited in accounts controlled by Shobaloju, he would often withdraw cash for his own use and then transfer the remaining funds to other bank accounts.
In the matter of the United States v. Babawale Jenyo, the government presented evidence and testimony at trial that funds fraudulently obtained from unsuspecting victims of email and romance scams were passed through bank accounts that Jenyo controlled. Jenyo’s criminal conduct was first discovered by Rhode Island State Police in 2017, resulting in his arrest May 2017 on charges that he participated in an email scam that defrauded a West Des Moines, IA, couple. In May of 2019, Jenyo was arrested again, this time by the United States Secret Service, which determined that, even after his encounter with Rhode Island State Police, Jenyo continued to engage in illicit money transferring activities up until the date of his second arrest.
The cases were prosecuted by Assistant United States Attorneys Sandra R. Hebert and Richard B. Myrus.
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Owner of Consumer Products Testing Company Sentenced to 60 Months in Prison for Fraud Scheme Involving Fabricated Test ResultsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Catherine Hermsen, Assistant Commissioner, United States Food and Drug Administration Office of Criminal Investigations (“FDA-OIC”), Michael J. Driscoll, Assistant Director-in-Charge of the New York Field Division of the Federal Bureau of Investigation (“FBI”), and Thomas Walsh, Rockland County District Attorney, announced that GABRIEL LETIZIA, Jr., was sentenced in White Plains federal court to 60 months in prison for defrauding customers of his consumer products testing company and causing misbranded drugs to be introduced into interstate commerce. United States District Judge Kenneth M. Karas imposed today’s sentence. LETIZIA previously pled guilty before United States Magistrate Judge Paul E. Davison.
U.S. Attorney Damian Williams said: “For three decades, Gabriel Letizia defrauded AMA’s customers and jeopardized the safety of millions of consumers, all in the name of greed. Thanks to our partners at FDA-OIC, the FBI, and the Rockland County District Attorney’s Office, he has now been sentenced to prison.”
According to the allegations in the Indictment, the Superseding Information to which LETIZIA pled guilty, court filings, and statements made in court:
LETIZIA was the owner and executive director of AMA Laboratories, Inc. (“AMA”), a consumer product testing company in Rockland County, New York. LETIZIA began operating AMA in the early 1980s, and became its sole owner in approximately 2003.
AMA purported to test the safety and efficacy of cosmetics, sunscreens, and other products on specified numbers of volunteer panelists for consumer products companies. Clients of AMA used the test results to support their claims that their products were safe, effective, hypoallergenic, or provided a certain Sun Protection Factor (“SPF”), including after exposure to water. AMA clients that manufactured sunscreens used the test results to comply with FDA regulations requiring sunscreen manufacturers to have their products tested and to maintain the test results for possible review by the FDA.
From 1987 through April 2017, LETIZIA and AMA personnel operating at his direction defrauded AMA’s customers of more than $46 million by testing products on materially lower numbers of panelists than the numbers specified and paid for by AMA’s customers. According to AMA employees, the majority of AMA’s tests contained fraudulent results, for two reasons. First, at LETIZIA’s instruction, AMA personnel rarely tested products on the number of panelists requested by AMA’s clients. Instead, AMA tested products on a far lower number of panelists, typically 20 or less, rather than the 50 for which the clients had paid. AMA’s fees for tests were based, in part, on the number of panelists that were to participate in the study. At LETIZIA’s direction, AMA sent its clients fraudulent test results in which AMA personnel included fictitious data for “phantom” panelists who had not actually participated in the tests.
Second, at LETIZIA’s direction, AMA personnel routinely falsified test results relating to its clients’ products, which included suppressing adverse reactions and deviating from testing protocols. From 2012 through April 2017, AMA received $46.2 million in revenue from the fraudulent reports.
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In addition to his prison term, LETIZIA, 72, of New City, New York, was sentenced to three years of supervised release, restitution in the amount of $1,440,238, and forfeiture in the amount of $46,200,000.
Mr. Williams praised the outstanding investigative work of the U.S. Food and Drug Administration, Office of Criminal Investigations, the Federal Bureau of Investigation, and the Rockland County District Attorney’s Office.
The case is being prosecuted by the Office’s White Plains Division. Assistant U.S. Attorneys Jeffrey C. Coffman, James McMahon, and Olga I. Zverovich are in charge of the prosecution.
Orlando Man Indicted for CarjackingRead the Press Release
Tampa, FL – United States Attorney Roger B. Handberg announces the return of an indictment charging Rodney Devon Jones (26, Orlando) with carjacking and brandishing a firearm during and in relation to a crime of violence. If convicted on all counts, Jones faces a minimum mandatory term of seven years, and up to life, in federal prison. The indictment also notifies Jones that the United States intends to forfeit firearms and ammunition involved in the offenses.
According to the indictment, on or about September 28, 2021, Jones knowingly took a 2018 Alfa Romeo Stelvio from another person by force, violence, and intimidation, with the intent to cause death and serious bodily harm.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation and the Seminole Police Department, with assistance from the Orlando Police Department and the Orange County Sheriff’s Office as part of the Middle District of Florida’s Safe Trails Task Force. The Safe Trails Task Force is a partnership between the United States Attorney’s Office, the FBI, the Seminole Police Department, and other federal, state, local, and tribal law enforcement agencies that are working together to combat the growth of crime in Indian Country. This case will be prosecuted by Assistant United States Attorney Christopher F. Murray.
This case is also 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.
Northwoods man sentenced to 45 years in prison for fatal 2019 St. Louis carjackingRead the Press Release
ST. LOUIS – United States District Court Judge Stephen R. Clark on Wednesday sentenced Anthony D. Jones Jr. to 45 years in prison for fatally shooting a St. Louis woman in 2019 before stealing her car.
In Jones’ plea agreement, he admitted shooting Jessica Vinson in the head and the back on May 4, 2019 in an alley in the 5300 block of Vernon Avenue. After dragging Vinson out of her car, he fired another shot at her head, stole her 2015 Dodge Charger and drove over Vinson’s arm.
Jones had befriended Vinson after meeting her earlier that morning outside of a club in St. Louis. Jones gave Vinson’s keys to associates, who used those keys to burglarize her home in the 5300 block of Maffitt Avenue, stealing shoes and two televisions.
Two days later, St. Louis Metropolitan Police Department (SLMPD) officers spotted Vinson’s car and attempted to conduct a traffic stop. Jones fled from police at a high rate of speed and crashed near an Interstate 70 exit ramp at Grand Avenue. Jones fled from the vehicle, leaving a gun behind, but was found hiding in a garage and arrested.
While in jail, Jones threatened to kill two witnesses to his crime.
In court Wednesday, Judge Clark called Jones an “exceptionally ruthless person” and “a danger to society.” Judge Clark ordered Jones’ sentence to run consecutive to any prison time he receives if convicted of charges related to an April 15, 2019 shooting as well as for violating his parole in a 2013 gun case.
A Vinson relative told Judge Clark that the 32-year-old was a “kind soul” who was a nursing student and had a promising future.
Jones, 29, of Northwoods, pleaded guilty in December to felony charges of carjacking resulting in death, discharge of a firearm in furtherance of a crime of violence resulting in death and two counts of witness tampering.
Two others involved in the carjacking were sentenced to prison in January. Robyn Harrison, who helped clean Vinson’s car, was sentenced to two and one-half years in prison. Tyeishia Adail, who replaced Vinson's license plates with temporary tags, was sentenced to four years in prison.
The case was investigated by the St. Louis Metropolitan Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Jen Szczucinski is prosecuting the case.
North Redington Shores Man Indicted in Multiple Fraud SchemesRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces the unsealing of an indictment charging Alexander Leszczynski (22, North Redington Beach) with wire fraud, bank fraud, and money laundering. If convicted on all counts, Leszczynski faces a maximum penalty of 30 years in federal prison. The indictment also notifies Leszczynski that the United States intends to forfeit $337,000, which represents the proceeds of the offenses, and property involved in the offenses. Leszczynski made his initial appearance on May 17, 2022, and was ordered detained pending his trial.
According to the court documents and the facts presented during the bond hearing, Leszczynski used fictitious charitable entities, such as Love & Bliss, Inc., to engage in numerous frauds. The schemes included fraudulently applying for and receiving two Payroll Protection Plan (“PPP”) loans totaling approximately $195,910 and engaging in a check kiting scheme and attempting to deposit $2.7 million of worthless checks into the Love & Bliss, Inc. business account. Leszczynski laundered the proceeds of the PPP and check kiting schemes through multiple accounts in an effort to conceal those proceeds from the United States and forestall its recovery. The United States ultimately seized $337,000 from an account Leszczynski controlled and, when he discovered that the money had been frozen, he attempted to have it released by producing a fabricated pardon purportedly signed by former President Donald Trump.
In a separate fraud scheme, Leszczynski filed fraudulent warranty deeds purporting to deed to himself and his businesses 10 properties around the United States collectively valued at more than $300 million. When property owners and attorneys attempted to correct the fraudulent deeds, Leszczynski responded by sending harassing and threatening letters, emails, and faxes.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted March 2020. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if the business spends the proceeds on these expenses within a set time-period and uses at least a certain percentage of the loan toward payroll expenses.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation, the Largo Police Department, the Indian Shores Police Department, and the Palm Beach Police Department. It will be prosecuted by Assistant United States Attorney Rachel Jones and asset forfeiture will be handled by Assistant United States Attorney Jimmy Muench.
New York Man Admits Transporting Child Pornography into New JerseyRead the Press Release
TRENTON, N.J. – A New York man today admitted transporting multiple items depicting child sexual abuse into New Jersey, U.S. Attorney Philip R. Sellinger announced.
Jesus Modesto Sanchez, 31, of New York, pleaded guilty by videoconference before U.S. District Judge Zahid N. Quraishi to an information charging him with one count of transporting of child pornography.
According to documents filed in this case and statements made in court:
In October 2020, Modesto Sanchez began communicating on a web-based application with an undercover officer, who he believed was a minor. On Oct. 17, 2020, Modesto Sanchez was arrested after traveling from New York to New Jersey to meet the minor. Law enforcement subsequently discovered a significant collection of child pornography on Modesto Sanchez’s cellular telephone, including approximately 72 videos and one image depicting the sexual abuse of minors.
The charge of transportation of child pornography carries a mandatory minimum penalty of five years in prison, a maximum penalty of 20 years in prison, and fine of $250,000. Sentencing is scheduled for Sept. 20, 2022.U.S. Attorney Sellinger credited Special agents with the FBI, under the direction of Acting Special Agent in Charge Michael Messenger; and members of the Somerset County Prosecutor’s Office, under the direction of Acting Prosecutor Annmarie Taggart, with the investigation leading to the charge.
The government is represented by Assistant U.S. Attorney Shawn Barnes of the U.S. Attorney’s Office Criminal Division in Newark.
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Defense counsel: Keith G. Oliver Esq., Middletown, New Jersey
Monongalia County woman sentenced for drug chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Sabrina Burton, of Morgantown, West Virginia, was sentenced today to three years of probation for a drug charge, United States Attorney William Ihlenfeld announced.
Burton, 25, pleaded guilty in December 201 to one count of “Possession with Intent to Distribute Heroin.” Burton admitted to having heroin in May 2020 in Monongalia County.
Assistant U.S. Attorneys Zelda E. Wesley and Sarah E. Wagner prosecuted the case on behalf of the government. The FBI's Northern West Virginia Drug Task Force in partnership with the Mon Metro Drug Task Force, a HIDTA-funded initiative, investigated. The Task Forces have members from the Federal Bureau of Investigation; the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; West Virginia State Police; Monongalia County Sheriff's Office; and, the Morgantown, WVU, Granville and Star City Police Departments. The investigation was also assisted by the following law enforcement partners: the Monongalia County Prosecutor’s Office, the FBI in Houston, Texas; the Houston Police Department's Multi Agency Gang Initiative; the United States Postal Inspection Service in Houston; and, the FBI and DEA in Los Angeles, California.
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.
Chief U.S. District Judge Thomas S. Kleeh presided.
Find more about the case here: https://www.justice.gov/usao-ndwv/pr/25-people-indicted-drug-trafficking-operation-spanned-several-states
Milwaukee Man Sentenced to over 12 Years in Federal Prison for Narcotics Trafficking and Firearms OffenseRead the Press Release
United States Attorney Richard G. Frohling of the Eastern District of Wisconsin announced that on May 13, 2022, U.S. District Judge J.P. Stadtmueller sentenced Jeffrey R. Jones (age: 37) of Milwaukee, Wisconsin, to over 12 years in federal prison for drug and firearm offenses.
The court sentenced Jones to 150 months’ imprisonment and four years’ supervised release after Jones pled guilty to the distribution of heroin, fentanyl, and methamphetamine, in violation of Title 21, United States Code, Sections 846, 841(a)(1) and (b)(1)(B); and possession of 8 firearms after having been convicted of a felony offense, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2).
According to court records, Jones was responsible for the distribution or attempted distribution of approximately 1.69 kilograms of fentanyl, at least 60 grams of heroin, at least 14 grams of methamphetamine, and at least 485 grams of marijuana. Upon the execution of search warrants at Jones’ residence and at his “stash” house, law enforcement located controlled substances, five pistols, two rifles, a revolver, and a large amount of U.S. currency.
“The U.S. Attorney’s Office remains committed to working with our federal, state, and local partners to investigate and prosecute individuals who unlawfully possess firearms and who introduce deadly substances like fentanyl, heroin, methamphetamine into our communities,” said U.S. Attorney Frohling. “I commend the hard work and dedication of all of the departments and agencies who worked together to protect the community and pursue justice in this case.”
“This case exemplifies outstanding law enforcement partnerships in action,” said SAC Michael E. Hensle of the FBI Milwaukee Field Office. “I commend the work of the Milwaukee Area Safe Streets Task Force in removing guns, drugs and a drug trafficker from our community.”
This case was investigated by the Federal Bureau of Investigation’s Milwaukee Area Safe Streets Task Force and the Milwaukee Police Department. Assistant United States Attorney Elizabeth Monfils prosecuted the case.
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Member of Philadelphia ‘Hilltop’ Drug Gang Sentenced to over 15 Years in PrisonRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Paul Robinson, 32, of Philadelphia, PA, was sentenced to 15 years and eight months in prison, and six years of supervised release by United States District Judge Gene E.K. Pratter for distributing narcotics as part of the Hilltop Drug Trafficking Group (DTG), an organization responsible for putting large amounts heroin and other narcotics including crack cocaine, oxycodone and fentanyl on the streets of West, Southwest, and Northwest Philadelphia, and Upper Darby between 2013 and 2018.
In December 2021, the defendant pleaded guilty to multiple felony narcotics charges including distribution of controlled substances and distribution of controlled substances near a school, stemming from his role in the Hilltop organization. The DTG operated seven days a week from approximately 9:00 am until midnight as a phone order/delivery service, through which customers called a cell phone number belonging to the leaders of the organization, including Robinson, to place orders for illegal narcotics. The customers were then redirected to “runners,” who would meet the customers on the street, often entering the customers’ vehicles, to deliver the narcotics in exchange for payment. Hilltop was a violent group that often defended its territory and narcotics with firearms, and through distribution of narcotics is responsible for multiple overdose deaths.
“This case is an excellent example of all levels of law enforcement collaborating to dismantle a dangerous drug trafficking operation putting deadly narcotics on streets all across Philadelphia and beyond,” said U.S. Attorney Williams. “This defendant directly threatened the safety of children by conducting the business of drug dealing adjacent to schools and playgrounds, actions for which he will now spend the better part of two decades behind bars.”
The case was investigated by Drug Enforcement Administration and the Philadelphia Police department, and is being prosecuted by Assistant United States Attorney Kelly Harrell and Everett Witherell.
Martinsburg woman admits to firearms chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Jordan Teal Burg, of Martinsburg, West Virginia, has admitted to a firearms charge, United States Attorney William Ihlenfeld announced.
Burg, 33, pleaded guilty today to one count of “Aiding and Abetting False Statement During Purchase of a Firearm.” Burg admitted to working with others to illegally purchase three pistols from a licensed firearms dealer in April 2021 in Jefferson County.
Burg 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.
Special Assistant U.S. Attorney Carrie L. Lehman, also with the Berkeley County Prosecuting Attorney’s Office, is prosecuting the case on behalf of the government. The ATF and the Easter Panhandle Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Martinsburg residents indicted on cocaine and fentanyl chargesRead the Press Release
MARTINSBURG, WEST VIRGINIA – Two Martinsburg residents are facing cocaine and fentanyl charges, accused of having enough fentanyl to kill 20,000 people, United States Attorney William Ihlenfeld announced.
Desmond Lamont Davis, 31, and Karmen Grimes, 21, were indicted this week on one count of “Conspiracy to Possess with Intent to Distribute 28 Grams or More of Cocaine Base,” one count of “Conspiracy to Possess with Intent to Distribute 40 Grams or More of Fentanyl,” and one count of “Conspiracy to Possess with Intent to Distribute Cocaine Hydrochloride.” Davis and Grimes are accused of working together to sell cocaine and fentanyl in Berkeley and Jefferson Counties from 2019 to 2021.
Davis and Grimes each at least five years and up to 40 years of incarceration and a fine of up to $5,000,000 for each of the first two counts and each face up to 20 years of incarceration and a fine of up to $1,000,000 for the third count. 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 Eastern Panhandle Drug Task Force, a HIDTA-funded initiative; ATF; and the U.S. Marshals Service investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Manchester Physician Barred from Prescribing Certain Controlled SubstancesRead the Press Release
NASHVILLE – In a settlement reached last week, David Florence, D.O., a Manchester, Tennessee physician, agreed to be barred from prescribing Schedule II and the vast majority of Schedule III controlled substances, announced United States Attorney Mark H. Wildasin for the Middle District of Tennessee.
Pursuant to the Consent Judgment and Permanent Injunction, Florence is permanently enjoined from issuing prescriptions for any controlled substances under Schedules II and III of the Controlled Substances Act, with limited exceptions for buprenorphine products as allowed by Tennessee law, testosterone, and two migraine medications. Florence also agreed not to order or store any controlled substances, and not to prescribe to himself, any immediate family members, fellow employees, or significant others.
Under the terms of the agreement, DEA has the right to enter Florence’s registered location at any time during business hours without notice for the purpose of determining compliance. In addition, Florence must comply with all laws concerning the supervision of mid-level providers. If Florence fails to comply with the terms of the settlement agreement, he is subject to civil penalties, criminal charges, and/or the revocation of his DEA Registration.
This agreement resolves all remaining claims the United States asserted against Florence, stemming from a lawsuit originally filed by the former office manager of a Cookeville, Tenn. pain clinic where Florence practiced, which was brought under the qui tam, or whistleblower, provisions of the False Claims Act. The Whistleblower provisions allow private citizens with knowledge of false claims to bring civil suits on behalf of the government.
“We rely on whistleblowers to help identify unlawful conduct, and we greatly appreciate the assistance that the relator in this case provided throughout the investigation and court proceedings that allowed us to stop Dr. Florence from ever again prescribing the dangerous controlled substances at issue here,” said U.S. Attorney Wildasin. “This extraordinary injunctive relief is one of the many ways in which the United States can protect the public from providers who recklessly prescribe, or fail to properly supervise others in prescribing, dangerous controlled substances.”
In March 2016, the United States filed a civil complaint in intervention, alleging violations of the Controlled Substances Act and the False Claims Act, against Florence and other defendants. As to Florence, the United States alleged that he prescribed controlled substances that had no legitimate medical purpose and failed to properly supervise mid-level practitioners. The United States previously obtained settlements that resulted in the dismissal of its claims against all other defendants named in its complaint in intervention.
This matter was investigated by the Department of Health & Human Services – Office of Inspector General, the Drug Enforcement Administration, and the Tennessee Bureau of Investigation Medicaid Fraud Control Unit. Assistant U.S. Attorney Wynn Shuford represented the United States.
The case is captioned as United States ex rel. Norris v. Anderson, No. 3:12-cv-00035 (M.D. Tenn.). The claims in the complaint are allegations only, and there has been no determination of liability.
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Manchester Man Sentenced to 70 Months for Five Robberies in Manchester and GoffstownRead the Press Release
CONCORD - Jonathan McKnight, 39, of Manchester, was sentenced to 70 months in federal prison for interference with commerce by threats and violence by committing five robberies, United States Attorney Jane E. Young announced today.
According to court documents and statements made in court, on March 25, 2020, McKnight robbed a convenience store in Manchester by passing a note to the clerk indicating he had a gun and wanted money. On March 28, 2020, McKnight robbed another convenience store in Manchester by again passing a note to the clerk ordering the clerk to give him the money. On this occasion, he gestured toward his back waistband while lifting up his sweatshirt. An officer who reviewed the store video footage recognized McKnight as the person in the video. On March 30, 2020, Manchester police officers conducted a post-arrest interview with McKnight. He admitted to committing both robberies and passing the same note at each robbery. While acknowledging he had claimed to have a gun during the robberies, he stated he did not possess a gun during the robberies.
On July 7, 2020, Manchester police officers responded to another robbery. The cashier gave the officers a description of the robber and told them that the robber had placed a note on the counter. The cashier gave the robber approximately $100-$150 from the drawer, mostly $1.00 bills. After reviewing the store video footage, officers located McKnight wearing the same clothing worn by the robber. He had approximately $60, including approximately 25 $1.00 bills.
On March 7, 2021, and March 10, 2021, McKnight committed additional robberies at two separate locations in Goffstown. Investigators received a tip that McKnight committed both robberies and McKnight later admitted that he committed both robberies.
McKnight previously pleaded guilty on November 29, 2021.
“Robberies and other violent crimes not only endanger lives but also spread fear throughout the community,” said U.S. Attorney Young. “Thanks to excellent police work in this case, Mr. McKnight has been held responsible for his criminal conduct. This successful prosecution is an example of how local and federal law enforcement partners work collaboratively and diligently to protect public safety and keep our citizens safe from violent crime.”
“Jonathan McKnight has repeatedly demonstrated why he is a serious threat to the community, confessing to a string of robberies during which he threatened to use a firearm,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “Today’s sentence should be a reminder to everyone of the serious consequences that come with putting people in danger. New Hampshire is much safer with him behind bars.”
These matters were investigated by the Manchester Police Department and Goffstown Police Department with assistance from the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney Debra Walsh.
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Madisonville Man Faces Federal Methamphetamine ChargesRead the Press Release
Paducah, KY – A federal grand jury returned an indictment last week charging a Madisonville, KY man with distributing methamphetamine and possessing with the intent to distribute methamphetamine.
According to court records, Travarius Baxter, 34, distributed methamphetamine on February 17, 2022, and possessed methamphetamine with the intent to distribute it on March 9, 2022.
On May 16, 2022, the defendant was arraigned before a U.S. Magistrate Judge in the U.S. District Court for the Western District of Kentucky. If convicted at trial, he faces a mandatory minimum sentence of at least 10 years, and up to life, in federal prison. There is no parole in the federal system. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky made the announcement.
The Drug Enforcement Administration and the Madisonville-Hopkins County VICE/Narcotics Unit are investigating the case.
The case is being prosecuted by Assistant U. S. Attorney Leigh Ann Dycus.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Lowell Postal Carrier Arrested on Bribery and Cocaine ChargesRead the Press Release
BOSTON – A Lowell postal worker has been arrested for allegedly attempting to bribe and sell cocaine to a postal supervisor.
John Noviello, of Nashua, N.H., 61, was charged with one count of bribery of a public official and one count of distribution of cocaine. Noviello was released on conditions following an initial appearance in federal court in Boston on May 12, 2022.
According to the charging documents, Noviello was a mail carrier for the U.S. Postal Service in Lowell. It is alleged that, on Feb. 15, 2022, Noviello approached a U.S. Postal supervisor seeking their assistance in a scheme to divert postal packages suspected of containing cocaine. Noviello allegedly offered to pay the supervisor $1,750 per kilogram of cocaine successfully obtained from any diverted packages. On Feb. 17, 2022, Noviello allegedly left $850 in cash, concealed in a Dunkin’ bag, inside the supervisor’s vehicle in an attempt to encourage the supervisor to agree to the scheme. It is alleged that Noviello, referring to the $850, later commented to the supervisor, “that was a nice envelope for starters.” After contacting authorities, the supervisor conducted a controlled purchase from Noviello during which the defendant allegedly distributed approximately four grams of cocaine for $200.
The charge of bribery of a public official provides for a sentence of up to 15 years in prison, up to three years of supervised release and a fine of $250,000. The charge of distribution of cocaine provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; Matthew Modafferi, Special Agent in Charge of the United States Postal Service Office of Inspector General, Northeast Area Office; and Ketty Larco Ward, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement. Assistant U.S. Attorney John T. Mulcahy of Rollins’ Criminal Division is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Local woman charged with preparing false income tax returnsRead the Press Release
HOUSTON – A tax preparer has been arrested on charges she was responsible for more than a dozen fraudulent tax returns, announced U.S. Attorney Jennifer B. Lowery.
Authorities took Cheryl Kissentaner into custody today. She is expected to make her initial appearance before U.S. Magistrate Judge Christina A. Bryan at 2 p.m.
A federal grand jury returned the 15-count indictment March 30.
The indictment alleges that from 2015 to 2018, Kissentaner fraudulently prepared 15 false income tax returns for clients.
If convicted, Kissentaner faces up to three years of prison and up to a $250,000 fine for each count.
IRS-Criminal Investtigation conducted the investigation. Assistant U.S. Attorney Justin R. Martin is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Kanawha County Man Sentenced to Prison for Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – A Kanawha County man was sentenced today to three years and one month in prison, to be followed by three years of supervised release, for aiding and abetting the distribution of methamphetamine.
According to court documents and statements made in court, John Eric Dickson, 59, of St. Albans, admitted that he supplied co-defendant Rodney Alexander Minter, 62, of Logan, with an ounce of methamphetamine on January 5, 2021, to sell to another individual. Minter pleaded guilty to distribution of 5 grams or more of methamphetamine, and faces a mandatory minimum of five years and up to 40 years in prison when he is sentenced on June 9, 2022.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Drug Enforcement Administration (DEA) and the Violent Crime and Drug Task Force West.
Senior United States District Judge David A. Faber imposed the sentence. Assistant United States Attorney Courtney L. Cremeans prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-169.
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Justice Department Settles with IT Recruiter to Resolve Immigration-Related Discrimination ClaimsRead the Press Release
The Department of Justice announced that it has reached a settlement agreement with Amtex Systems Inc., an IT staffing and recruiting company based in New York. The settlement resolves claims that Amtex discriminated against U.S. workers based on their citizenship or immigration status during several stages of the recruitment process because their clients preferred workers with temporary employment visas.
“IT staffing agencies cannot unlawfully exclude applicants or impose additional burdens because of someone’s citizenship or immigration status,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Civil Rights Division is committed to enforcing the law to ensure that job applicants, including U.S. workers, are protected from unlawful discrimination.”
The department’s investigation began after a U.S. citizen filed a discrimination complaint with the Civil Rights Division’s Immigrant and Employee Rights Section (IER) against Amtex. Based on its investigation, the department concluded that Amtex used a company operating in India to identify and screen job applicants based on clients’ preferences for workers with particular citizenship or immigration statuses. The investigation determined that the recruiters sent job advertisements with their clients’ unlawful citizenship or immigration status preferences, and also implemented those preferences when considering applicants. The recruiters’ practices harmed U.S. workers by deterring them from applying, and not considering those who did apply. For example, the investigation revealed that Amtex did not consider at least three U.S. workers when they applied to a job posting that stated a preference for workers with temporary employment visas. The department further concluded that recruiters for Amtex discriminated against non-U.S. citizen applicants by routinely requiring them to provide an immigration document to move forward in the recruitment process.
The Immigration and Nationality Act (INA) protects U.S. citizens, non-U.S. citizen nationals, refugees, asylees, and recent lawful permanent residents from workplace discrimination based on citizenship or immigration status. Recruiters are liable for violations of the INA if they implement a client’s unlawful discriminatory preferences. Under the INA, employers or recruiters can only limit jobs based on citizenship or immigration status if required by a law, regulation, executive order or government contract. Further, because federal law only allows employers to check a person’s permission to work after they are hired, employers and recruiters must not verify the permission to work of job applicants.
Under the terms of the settlement agreement, Amtex will pay over $15,000 in civil penalties to the United States, revise its policies and procedures, train relevant employees and agents on the INA’s anti-discrimination provision, and be subject to monitoring for a three-year period to ensure compliance.
IER is responsible for enforcing the anti-discrimination provision of the INA. Among other things, this law prohibits discrimination based on citizenship or immigration status, and national origin in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; retaliation; and intimidation. More information about citizenship status discrimination under the INA is available in this flyer.
Learn more about IER’s work and how to get assistance through this brief video. Applicants or employees who believe they were discriminated against based on their citizenship, immigration status, or national origin in hiring, firing, recruitment, or during the employment eligibility verification process (Form I-9 and E-Verify); or subjected to retaliation, may file a charge. The public also can contact IER’s worker hotline at 1-800-255-7688; call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); email [email protected]; sign up for a free webinar; or visit IER’s English and Spanish websites. Subscribe to GovDelivery to receive updates from IER.
View the Spanish translation of this press release here. View the Hindi translation of this press release below.
Justice Department Settles Immigration-Related Discrimination Claim Against Indiana Staffing CompanyRead the Press Release
The Department of Justice announced that it has reached a settlement agreement with JMJ Talent Solutions Inc. (JMJ Talent Solutions), a staffing company with four locations throughout Indiana. The settlement resolves a claim that JMJ Talent Solutions discriminated against three non-U.S. citizens because of their citizenship status when it asked them to present specific documentation to prove they had permission to work in the United States instead of letting them choose which valid documents to show.
“Employers may not discriminate against workers when verifying their permission to work in the United States – such as by rejecting their valid documentation, requesting specific documentation, or requesting more documents than necessary — based on the workers’ citizenship status or national origin,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “All workers have the right to choose the valid documents they want to present for that process. The Justice Department will continue to fight to remove unlawful barriers in the workplace.”
Based on its investigation, the department determined that, after rejecting valid documentation that a non-U.S. citizen presented to prove she was allowed to work in the United States, JMJ Talent Solutions requested that she present specific immigration documents, including a Permanent Resident Card with an unexpired date. The department also determined that the staffing company asked at least two other lawful permanent residents to present their Permanent Resident Cards to prove their permission to work.
The Immigration and Nationality Act (INA) prohibits employers from rejecting documentation that reasonably appears to be valid and to relate to the person who presents it, from asking workers to show specific documentation, and from asking for more documentation than the law requires to prove their permission to work. Employers that do so may violate the INA’s anti-discrimination provision.
Under the terms of the settlement agreement, JMJ Talent Solutions will pay a civil penalty, post notices informing workers of their rights under the INA’s anti-discrimination provision, train its staff and be subject to departmental monitoring for three years.
The Civil Rights Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits discrimination based on citizenship status and national origin in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; and retaliation and intimidation.
Learn more about IER’s work and how to get assistance through this brief video. Find more information on how employers can avoid discriminating when verifying an employee’s permission to work on IER’s website. Applicants or employees who believe they were discriminated against based on their citizenship, immigration status, or national origin in hiring, firing, recruitment, or during the employment eligibility verification process (Form I-9 and E-Verify); or subjected to retaliation, may file a charge. The public can also call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); email [email protected]; sign up for a free webinar; or visit IER’s English and Spanish websites. Subscribe to GovDelivery to receive updates from IER. View the Spanish translation of this press release here.
Justice Department Secures Agreement to Provide Community-Based Services to Children with Disabilities in Rhode IslandRead the Press Release
The Department of Justice today entered into a settlement agreement with the Rhode Island Executive Office of Health and Human Services (EOHHS) to resolve alleged violations of the Americans with Disabilities Act (ADA).
The parents of a child with autism filed a complaint with the Justice Department, alleging that Rhode Island failed to provide their minor son with community-based Medicaid services that the state had authorized. These services allow children with disabilities to remain in their homes and communities rather than enter residential treatment facilities. The parents alleged that while the state authorized their son to receive 25 to 34 hours per week of community-based services, their son only received, on average, half of the weekly authorized hours. As a result, the parents feared that their son would be forced to leave their home and move to an institution. After the United States opened an investigation of this complaint, the child entered an out-of-state residential treatment facility for several months.
“The ADA requires states to provide disability services in the most integrated setting appropriate so that children with disabilities can remain at home with their families,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Providing community-based services allows children with disabilities to live at home and avoid needless placement in residential facilities. The Civil Rights Division will vigorously enforce the ADA so that people with disabilities can get services at home instead of in facilities.”
“Integrated, community-based services for children with intellectual and developmental disabilities are critical to keeping families together and ensuring that children receive care in a supporting and loving environment; no family should be forced to make a choice between care and separation from their children when adequate support is possible in a community setting,” said U.S. Attorney Zachary A. Cunha of the District of Rhode Island. “That is what the ADA requires, what today’s agreement is designed to ensure, and what this office will continue to demand as we go forward.”
Under the agreement reached today, Rhode Island will modify its policies so that children with intellectual and developmental disabilities such as autism will receive the community-based services to which they are authorized. The state will require that families of such children receive a family care plan, allow families to receive services from different provider agencies, and provide oversight to make sure children with disabilities receive authorized community-based services. The state will also create an ombudsman program to allow individuals and their family members to express concerns. For the complainants’ son, EOHHS will develop an individualized service plan to identify the community-based services necessary for him to live at home, and pay $75,000 in damages.
This matter was handled jointly by Assistant U.S. Attorney Amy Romero for the District of Rhode Island and the Civil Rights Division’s Disability Rights Section.
The Justice Department plays a central role in advancing the ADA’s goals of equal opportunity, full participation, independent living, and economic self-sufficiency for people with disabilities. For more information on the Civil Rights Division, please visit http://www.justice.gov/crt. For more information on the ADA, please call the department’s toll-free ADA information line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov. ADA complaints may be filed online at http://www.ada.gov/complaint.
Anyone in the District of Rhode Island may also report civil rights violations directly to the U.S. Attorney’s Office for the District of Rhode Island at Civil Rights Enforcement (justice.gov) or 401-709-5000.
Jackson Man Pleads Guilty to Possession of a Firearm by a Convicted FelonRead the Press Release
Jackson, Miss. – A Jackson man pleaded guilty to possession of a firearm by a convicted felon, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Jermicha Fomby of the Federal Bureau of Investigation in Mississippi.
According to court documents, Don Cornelius Ward, 38, was found in possession of a firearm by officers of the Jackson Police Department on February 3, 2020. Ward has five prior felony convictions. As a convicted felon it is contrary to federal law for Ward to possess any firearm.
Ward pleaded guilty to a violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2) which criminalize the possession of firearms by convicted felons. He is scheduled to be sentenced on September 7, 2022 and faces a maximum penalty of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Jackson Police Department and the FBI are investigating the case.
Assistant U.S. Attorney Charles W. Kirkham is prosecuting the case.
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.
Inmate admits to threat chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Shawn L. Price, an inmate at Federal Corrections Institution Gilmer, has admitted to a threat charge, United States Attorney William Ihlenfeld announced.
Price, 42, pleaded guilty today to one count of “Transmitting Threatening Communications in Interstate Commerce.” Price threatened someone by phone in November 2021. According to the indictment, the threat included breaking the subject’s neck and torturing the subject.
Price faces up to five 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 Christopher L. Bauer is prosecuting the case on behalf of the government. The Bureau of Prisons investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Indianapolis Man Pleads Guilty to Federal Gun CrimeRead the Press Release
CHARLESTON, W.Va. – An Indianapolis man pleaded guilty today to being a felon in possession of a firearm.
According to court documents and statements made in court, on April 20, 2021, officers with the Parkersburg Police Department pulled over a vehicle driven by Steven Loren Mandrell, 44, formerly of Parkersburg, because it didn’t have a valid license plate. As an officer approached the vehicle, Mandrell was seen leaning toward the steering wheel as if he was concealing something underneath the driver’s seat. Mandrell admitted to having two loaded firearms under his seat, a Smith and Wesson .40-caliber pistol and a Bul Transmark 9mm pistol. Both firearms were seized by the officers.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Mandrell knew he was prohibited from possessing firearms because of a January 27, 2010, conviction for delivery of a controlled substance in Wood County Circuit Court.
Mandrell is scheduled to be sentenced on September 14, 2022, and faces a maximum penalty of 10 years in prison, three years of supervised release and a $250,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative efforts of the Parkersburg Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
Senior United States District Judge David A. Faber presided over the hearing. Assistant United States Attorney Jeremy B. Wolfe is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-231.
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Idaho Falls Man Sentenced to 25 years in Federal Prison for Trafficking MethamphetamineRead the Press Release
POCATELLO – On May 16, 2022, an Idaho Falls man was sentenced to 25 years in federal prison on drug trafficking and immigration charges. A federal jury convicted Jose Luis Cruz-Delgado, 29, at a trial held in November 2021. Senior U.S. District Judge B. Lynn Winmill presided over the trial and imposed sentence.
According to court records and evidence presented at trial, Cruz-Delgado was found guilty of one count of conspiracy to distribute methamphetamine, one count of attempted possession with the intent to distribute methamphetamine, and one count of deported alien found in the United States. On September 26, 2017, Cruz-Delgado and a co-conspirator were stopped in San Bernardino, California, with 28 pounds of methamphetamine. Cruz-Delgado admitted the methamphetamine was his. He also admitted he was returning to Idaho Falls. He was later released on bond following his California arrest.
Cruz-Delgado subsequently continued trafficking methamphetamine to Idaho from California up until his arrest in Idaho in August 2018. Evidence at trial showed that, during the course of the conspiracy, Cruz-Delgado was responsible for distributing over 30 to 40 pounds of methamphetamine through one of several co‑conspirators. When arrested in Idaho, Cruz-Delgado admitted to being previously deported from the United States.
U.S. Attorney Rafael M. Gonzalez Jr., of the District of Idaho made the announcement and commended the cooperative efforts of the Drug Enforcement Administration, Homeland Security Investigations in Idaho Falls, Idaho State Police, Immigration and Customs Enforcement’s, Enforcement and Removal Operations, and the San Bernardino County Sheriff’s Department which led to the charges.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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Houlton Man Pleads Guilty to Being a Felon in Possession of FirearmsRead the Press Release
BANGOR, Maine: A Houlton man pleaded guilty in federal court to being a felon in possession of firearms, U.S. Attorney Darcie N. McElwee announced today.
According to court records, in September 2020, the Maine Warden Service and Houlton Police Department executed a search warrant at the Houlton home of Daniel Tyce, 40. Tyce admitted to being a felon and that he was in possession of firearms. Law enforcement seized a shotgun and ammunition from inside the residence. They also seized a shotgun, a receiver completed into a pistol with stabilizing brace, and various rounds of ammunition and magazines from a truck Tyce used. Tyce is prohibited from possessing firearms due to prior felony convictions in New Jersey.
Tyce faces up to 10 years in prison and a fine of up to $250,000. He also faces up to three years of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Maine Warden Service, Houlton Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case.
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Hazleton Roofing Company Owner Sentenced to Six Months’ Imprisonment for Failing to Pay Payroll TaxesRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Charles R. Ehrenberg, age 34, owner of Ehrenberg Roofing and Construction, Inc., located in Hazleton, Pennsylvania, was sentenced yesterday by United States District Court Judge Malachy E. Mannion to 6 months’ imprisonment to be followed by 6 months’ home confinement with electronic monitoring and a 2-year term of supervised release, for failing to collect and pay over several years’ worth of required federal payroll taxes.
According to United States Attorney John C. Gurganus, for a four-year period from 2017 to 2020, Ehrenberg willfully failed to collect and pay over to the IRS required federal payroll taxes in the total amount of $185,681.90. By paying his labor force, which was comprised mostly of undocumented immigrants, an all-cash wage, and by failing to properly account for and pay over any required payroll taxes, Ehrenberg deprived the government of substantial tax revenue. At sentencing, Ehrenberg was also ordered to make restitution to the IRS in the amount of $185,681.90.
The case was investigated by IRS-Criminal Investigation. Assistant U.S. Attorney Jeffery St John prosecuted the case.
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Hartford Man Charged with Firearm Possession and Crack Distribution OffensesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, James Ferguson, Special Agent in Charge, ATF Boston Field Division, and Hartford Police Chief Jason Thody announced that a federal grand jury in Bridgeport returned an indictment today charging CHRISTOPHER GASKIN, 46, of Hartford, with firearm possession and narcotics distribution offenses.
As alleged in court documents and statements made in court, on January 1, 2022, Hartford Police stopped a car Gaskin was operating on Irving Street in Hartford. Gaskin was arrested on state charges after a search of his person revealed a loaded .380 caliber handgun and a distribution quantity of crack cocaine.
It is alleged that Gaskin’s criminal history includes at least eight felony convictions, including convictions for assault, robbery and witness tampering offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
The indictment charges Gaskin with unlawful possession of a firearm by a felon. For this offense, based on his alleged criminal history, Gaskin is subject to the Armed Career Criminal Act, a federal law imposing severe penalties for firearm or ammunition possession by an individual who has been convicted of at least three violent felonies or serious drug offenses. A defendant who qualifies as an Armed Career Criminal faces a minimum term of imprisonment of 15 years and a maximum term of imprisonment of life. Gaskin is also charged with possession with intent to distribute cocaine base (“crack”), an offense that carries a maximum term of imprisonment of 20 years.
U.S. Attorney Avery stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Gaskin was arrested on a federal criminal complaint on April 28, 2022. He is currently released on a $150,000 bond.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Hartford Police Department. The case is being prosecuted by Assistant U.S. Attorney Angel M. Krull.
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.
Greene County Woman Sentenced to Federal Prison for CARES Act FraudRead the Press Release
Bowling Green, KY – A Greene County Kentucky woman was sentenced yesterday to 12 months and 1 day in federal prison for submitting nine fraudulent Coronavirus Aid, Relief, and Economic Security (CARES) Act applications.
According to court documents, between April 2020 and July 2020, Mandy Ellen Bauer, 41, of Greensburg, Kentucky filed nine fraudulent applications for various CARES Act financial assistance programs, including Paycheck Protection Program (PPP) loans, Economic Injury Disaster Loans (EIDL), and advance payment of tax credits, resulting in an attempted theft of over $230,000. In those false applications Bauer exaggerated the gross revenues, number of employees, and payroll of her company, Family Personal Sales. All of Bauer’s fraudulent applications were rejected and she did not receive any funds.
PPP loans were designed to provide a direct incentive for small businesses to keep their workers on the payroll. Under this program, the Small Business Administration (SBA) would forgive all or part of loans if all employees were kept on the payroll for eight weeks and borrowers submitted documentation confirming that the loan proceeds were used for payroll, rent, mortgage interest, or utilities.
EIDLs provided loan assistance (including $10,000 advances) for small businesses and other eligible entities for loans up to $2 million. The EIDL proceeds could be used to pay fixed debts, payroll, accounts payable, and other bills that could have been paid had the disaster not occurred.
“I commend the investigative work of the Treasury Inspector General for Tax Administration,” said Michael A. Bennett, United States Attorney for the Western District of Kentucky. “Together with our federal law enforcement partners we will continue to identify, apprehend, and prosecute fraudsters involved in plots to steal federal relief funds.”
“The Treasury Inspector General for Tax Administration aggressively pursues those who endeavor to defraud programs afforded to the American people under the CARES Act,” said J. Russell George, the Treasury Inspector General for Tax Administration (TIGTA). “We appreciate the efforts of the Department of Justice in this effort.”
The Treasury Inspector General for Tax Administration investigated the case, which was prosecuted by Assistant U.S. Attorney David Weiser.
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.
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Georgia resident pleads guilty to cyberstalkingRead the Press Release
United States Attorney Richard G. Frohling announced on May 18, 2022 that Minjie Cao (age 27) of Alpharetta, Georgia, pleaded guilty to one count of cyberstalking in violation of Title 18, United States Code, Section 2261A. The charges relate to death threats that Cao sent to Kenosha government officials in August 2020 during the protests and unrests in Kenosha, Wisconsin.
As detailed in court documents, between August 27, 2020 and August 29, 2020, Cao, who resided outside of Atlanta, Georgia, sent email death threats to three Kenosha government officials. Cao also made several phone calls to the offices of these individuals – all for the purpose of causing them distress during the unrest in Kenosha.
The cyberstalking count carries a maximum penalty of up to five years in prison, up to $250,000 in fines, and up to three years of supervised release. Sentencing is set for October 19, 2022, before U.S. District Judge J.P. Stadtmueller.
This matter was investigated by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Benjamin Proctor.
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For further information contact: Public Information Officer Kenneth Gales
(414) 297-1700
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Georgia Man Charged with Federal Hate Crimes and Firearms OffensesRead the Press Release
Larry Edward Foxworth, 48, was indicted yesterday by a federal grand jury in Atlanta, Georgia, for hate crime and federal firearms violations.
This indictment charges Foxworth with two counts of willfully attempting, through the use of a firearm, to cause bodily injury to customers, employees and other people present at convenience stores in Jonesboro, Georgia, because of their actual and perceived race, color and national origin. Foxworth is also charged with two counts of using a firearm in furtherance of a crime of violence. If convicted, Foxworth faces up to life in prison for each hate crime count and a mandatory minimum of 10 years in prison, consecutive to any other sentence, for each firearm count.
“Hate-fueled violence has no place in a civilized society,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Thankfully no one was injured by the conduct alleged in this case, but the Justice Department is committed to using all the tools in our law enforcement arsenal to prosecute allegations of hate crimes.”
“No person should be afraid to shop or go to work in our community. Nor should people have to worry that they may be violently attacked because of the color of their skin,” said U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia. “Combating hate crimes continues to be among the Department of Justice’s top priorities. In this District, allegations of criminal activity fueled by hate and racism will always merit our full attention.”
“Hate crimes are the top priority of the FBI’s Civil Rights Program, due to the damaging impact they have on victims and entire communities,” said Special Agent in Charge Keri Farley of the FBI Atlanta Field Office. “This office will use every resource available to ensure that criminals committing bias-motivated violent crimes are held accountable.”
The case was investigated by the FBI’s Atlanta Field Office, and is being prosecuted by Assistant U.S. Attorney Brent Gray for the Northern District of Georgia and Trial Attorney Alec Ward of the Justice Department’s Civil Rights Division.
For more information and resources on the department’s efforts to combat hate crimes, visit justice.gov/hatecrimes.
An indictment is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Ft. Bragg Employee Sentenced to 42 Months’ Imprisonment for Receipt of BribesRead the Press Release
WILMINGTON, N.C. – A Fayetteville man was sentenced today to 42 months for receiving bribes in his role as a purchasing agent while employed at Ft. Bragg. Calvin Alfonza Jordan pleaded guilty to receiving bribes, in violation of 18 U.S.C. § 201, in February of this year.
“As suggested by the presiding judge at sentencing, one of the things that makes our government, the United States of America, great and unique from others is its commitment to deal with each of its citizens fairly,” Michael Easley, U.S. Attorney for the Eastern District of North Carolina, said. “The taking of bribes by employees of the United States is in direct contradiction to that foundational premise. As this prosecution and resulting sentence show, employees of the government who abuse their positions by taking bribes will be prosecuted and face consequences to their crimes.”
According to court documents, Calvin Alfonza Jordan was a procurement agent assigned to the Operations and Maintenance Division, Directorate of Public Works (DPW), at Fort Bragg, NC. To obtain services, a Ft. Bragg facilities user submits a request for a repair or service of a facility, such as a roof leak, damaged floor, or plumbing issue to the DPW. The request creates a Demand Maintenance Order (DMO) that is forwarded to the appropriate commodity section. The DMO is assigned to a DPW technician that specializes in a certain trade, such as roofing, flooring, plumbing, or carpentry.
The DPW technician assesses the issue to determine if they can complete the repair or service themselves within the time allotted, or certifies that because of manpower, needed expertise, or particular equipment needs, a contractor should undertake the work. If a contractor is to be used for the work, the technician submits a request for a contract to the work leader. If the work is estimated to cost under $2,500, the approved contract is forwarded to a DPW procurement agent who hires a contractor to complete the work. The technician who requested the contract would inspect and certify the work upon completion. Once the technician inspected and certified the contractor’s work, the procurement agent would pay the contractor using a government purchase card.
From 2011 into 2019, Jordan used his position as a procurement agent to receive bribes of approximately $200 per DMO from various vendors contracting with DPW, Ft. Bragg, North Carolina, in return for increasing the number of federal contracts given the vendor. It is estimated Jordan received $773,600 in illegal bribes.
"While Calvin Jordan was supposed to be repairing facilities to provide a safe working and living environment for our soldiers and their families, he was instead busy lining his own pockets and compromising the integrity of the contracting process,” said Special Agent in Charge Christopher Dillard, Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Mid-Atlantic Field Office. "Today’s sentencing should send a stark reminder that DCIS and our law enforcement partners remain in pursuit of those who jeopardize the readiness of our military for their own gain."
"The sentence handed down today reflects the unrelenting approach and tenacity we employ daily in pursuing individuals who dare to attempt to defraud the federal government and the U.S. Army", said Special Agent in Charge L. Scott Moreland, of the U.S. Army Criminal Investigation Division's Major Procurement Fraud Field Office. "When it comes to government contracting and purchasing, the superbly skilled and highly-trained special agents in our fraud unit use their finely honed investigation skills to combat and uncover fraud, deception, bribery and other criminal acts."
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after the sentencing by Chief United States Judge Richard E. Myers II. Defense Criminal Investigative Service and the U.S. Army Criminal Investigative Division, Major Procurement Fraud Unit, investigated the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:19-CR-328-FL.
Former South Florida Pharmacy Technician Pleads Guilty to $40 Million Kickback Conspiracy Targeting Military Health Care ProgramsRead the Press Release
Miami, Florida – A former Palm Beach County pharmacy technician and high-level executive assistant has pleaded guilty to her role in a multi-million-dollar kickback conspiracy that defrauded Tricare and CHAMPVA through a South Florida compounding pharmacy. Tricare and CHAMPVA are the health care benefit programs for the United States Department of Defense and Department of Veterans Affairs.
In connection with pleading guilty to one count of conspiracy, Alisa Catoggio, 40, of Boca Raton, Florida, admitted that she was involved in a scheme that paid approximately $40 million in kickbacks to patient recruiters in exchange for their referring prescriptions issued to Tricare and CHAMPVA beneficiaries to a Broward compounding pharmacy. The prescriptions were for expensive pain creams, scar creams, vitamins, and other medically unnecessary compound drugs, which were reimbursed at amounts of up to $15,000 for a one month’s supply. In addition, the Broward pharmacy did not charge the beneficiaries the mandatory co-payments for the drugs, which constituted another form of illicit kickback. The co-conspirators used phony charities to conceal this “no-copayment” kickback activity. The fraudulent billings caused a loss to the military health care program of approximately $88 million.
Sentencing is scheduled for August 9, at 2:00 p.m., before U.S. District Judge Roy K. Altman. Catoggio faces up to 5 years in federal prison.
U.S. Attorney Juan Antonio Gonzalez of the Southern District of Florida; Special Agent in Charge Cynthia A. Bruce, Department of Defense Inspector General’s Defense Criminal Investigative Service (DCIS), Southeast Field Office; Special Agent in Charge David Spilker, Veterans Affairs, Office of Inspector General (VA-OIG), Southeast Field Office; Special Agent in Charge George L. Piro of the FBI Miami; and Special Agent in Charge Justin C. Fielder, FDA Office of Criminal Investigations’ Miami Field Office, announced the guilty plea entered May 17.
The DCIS, VA-OIG, FBI, and the FDA, investigated the case.
Assistant U.S. Attorney Jon Juenger prosecuted the case. Assistant U.S. Attorney Daren Grove is handling the asset forfeiture component of the case.
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 21-cr-60048.
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Former Phoenixville-Area School District Finance Director Sentenced to over One Year in Prison for Embezzling District FundsRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Christopher Gehris, 47, Phoenixville, PA, was sentenced today to one year and two months in prison and three years of supervised release, and was ordered to pay over $94,000 in restitution by United States District Court Judge Mitchell S. Goldberg for embezzling that amount from the Phoenixville Area School District (PASD).
In February 2022, the defendant pleaded guilty to embezzlement from a program receiving federal funding and admitted that he stole approximately $94,613 from the PASD. In 2006, the defendant was hired as a controller for the PASD’s Business Office and later promoted to business manager. In 2018, he was appointed to serve as the Director of Finance. From 2013 until 2019, Gehris cashed checks made payable to himself and to “cash,” received checks and direct deposits into his personal checking account for “start-up money” for student activities, stole cash from school programs, and obtained gift cards for personal expenditures – all in furtherance of his embezzlement scheme. He also admitted that he hid his thefts by altering receipts and falsifying reports submitted to the Board of School Directors.
“The defendant stole nearly $100,000 from a public school district, money, some of which was specifically allocated for student activities meant to enhance their educational experience,” said U.S. Attorney Williams. “Criminals that embezzle public money from schools are ripping off hundreds of students while also ripping off all taxpayers who fund them.”
The case was investigated by the Federal Bureau of Investigation and the Phoenixville Police Department and is being prosecuted by Assistant United States Attorney Terri A. Marinari.
Former Member of Springfield Latin Kings Chapter Pleads Guilty to Drug OffensesRead the Press Release
BOSTON – A former member of the Springfield Chapter of the Massachusetts Almighty Latin King and Queen Nation (Latin Kings) has pleaded guilty to drug charges.
Jonathan Casiano, a/k/a “King Legend,” 36, pleaded guilty on Wednesday, May 11, 2022, to two counts of possession with intent to distribute cocaine and fentanyl. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for Aug. 17, 2022.
Casiano was identified as a member of the Latin Kings and a drug trafficker operating out of an apartment in Springfield. In July 2019, Casiano was arrested following a traffic stop in Springfield, during which he was found in possession of a privately made 9mm ghost gun with 15 rounds of 9mm ammunition, $9,880 in cash, 486 oxytocin pills and 810 plastic bags containing a total of 87 grams of fentanyl and 66 grams of cocaine.
Casiano was released from custody in December 2019 after posting cash bail.
In December 2019, a federal grand jury returned an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against 62 leaders, members and associates of the Latin Kings. Casiano was later arrested in February 2020. A subsequent search of Casiano’s person and residence recovered over 2,400 plastic bags bearing the “blue magic” and “chuckie” labels that contained a total of 68 grams of fentanyl, 140 grams of cocaine and other controlled substances. Casiano is the 58th defendant to plead guilty in the case.
The charge of possession with intent to distribute cocaine and fentanyl provides for a sentence of up to 20 years in prison, at least three years and up to a lifetime of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
The United States Attorney’s Office for the District of Massachusetts; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and New Bedford Police Chief Joseph C. Cordeiro made the announcement. Valuable assistance was also provided by the FBI North Shore Gang Task Force and the Bristol County and Suffolk County District Attorney’s Offices. Assistant U.S. Attorney Philip A. Mallard of the Organized Crime & Gang Unit is prosecuting 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.
Florida Pharmacy Owners Sentenced in Tennessee for Multimillion-Dollar Nationwide Telemedicine Pharmacy Fraud SchemeRead the Press Release
A federal judge in Greeneville, Tennessee, sentenced two Florida men for their roles in a multimillion-dollar health care fraud scheme.
Peter Bolos, 44, of Tampa, was convicted by a federal jury in December 2021 of conspiracy to commit health care fraud, 22 counts of mail fraud and introduction of a misbranded drug into interstate commerce. U.S. District Judge J. Ronnie Greer sentenced Bolos to 14 years in prison and ordered him to pay more than $24.6 million in restitution and $2.5 million in forfeiture. The court also sentenced Bolos’s co-defendant, Michael Palso, 48, of Tampa, to 33 months in prison and ordered him to pay more than $24.6 million in restitution. Palso previously pleaded guilty to his role in the conspiracy, as did 14 other defendants in related cases. The remaining defendants are scheduled to be sentenced later this week.
According to court documents and evidence presented at trial, Bolos, Palso and their co-conspirators, Andrew Assad, Scott Roix, Larry Smith, Mihir Taneja, Arun Kapoor and Maikel Bolos, as well as various other companies owned or controlled by some of these individuals, deceived pharmacy benefit managers (PBMs), such as Express Scripts and CVS Caremark, regarding tens of thousands of prescriptions. The PBMs processed and approved claims for prescription drugs on behalf of insurance companies. Bolos and his co-conspirators defrauded the PBMs into authorizing millions of dollars’ worth of claims that private insurers such as Blue Cross Blue Shield of Tennessee, and public insurers such as Medicaid and TRICARE, paid to pharmacies controlled by the co-conspirators.
“The significant sentences imposed by the court are a reflection of the gravity of the crimes that the defendants in this case committed,” said Deputy Assistant Attorney General Arun G. Rao, head of the Civil Division’s Consumer Protection Branch. “The department will continue to work with law enforcement partners to prosecute those who take advantage of telemedicine to perpetrate fraud schemes.”
“The scale of the prescription-drug fraud scheme orchestrated by these defendants and their conspirators was astonishing, and the Court’s prison sentences reflect the seriousness of their crimes,” said U.S. Attorney Francis M. Hamilton III for the Eastern District of Tennessee. “The financial harm caused by health care fraud hurts all Americans, and the United States Attorney’s Office for the Eastern District of Tennessee will continue to support the cooperation among its federal law enforcement partners that is necessary to bring criminal swindlers like these defendants to justice.”
“This sentencing is the result of a multi-agency investigation into a complex telemedicine pharmacy fraud scheme, requiring substantial investigative resources,” said Special Agent in Charge Joseph E. Carrico of the FBI’s Knoxville Field Office. “The FBI, with its law enforcement partners, will remain vigilant to assure that unscrupulous individuals who exploit our health care system are brought to justice.”
“Distributing misbranded prescription drugs in the U.S. marketplace places patients’ health at risk,” said Special Agent in Charge Justin C. Fielder of the FDA Office of Criminal Investigations (OCI) Miami Field Office. “We will continue to pursue and bring to justice those who put profits ahead of public health.”
“Bolos and his co-conspirators abandoned their responsibilities in the health care industry through an elaborate fraud scheme and manipulated the system without regard for patient need or medical necessity to line their pockets,” said Special Agent in Charge John Condon of Homeland Security Investigations (HSI) Tampa. “This significant sentence should serve as a warning to anyone who attempts to deceive the government and steal from taxpayers.”
“Providers who solicit beneficiaries’ personal information and use it to defraud federal health care programs not only undermine the integrity of those programs; they also divert valuable taxpayer dollars for self-serving purposes,” said Special Agent in Charge Tamala E. Miles of the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG is proud to work alongside our law enforcement partners to investigate and hold accountable perpetrators of federal health care fraud.”
“The U.S. Postal Service, Office of Inspector General, will continue to vigorously investigate those who commit frauds against federal benefit programs and the U.S. Postal Service,” said Special Agent in Charge Matthew Modafferi of the U.S. Postal Service, Office of Inspector General Northeast Area Field Office. “The sentencing in this case sends a clear message to pharmaceutical companies that tactics like these will not be tolerated. The U.S. Postal Service, Office of Inspector General would like to thank our law enforcement partners and the Department of Justice for their dedication and efforts in this investigation.”
Court documents and evidence at trial established that Bolos, Assad and Palso owned and operated Synergy Pharmacy in Palm Harbor, Florida. Under their direction, Synergy employed Scott Roix, a Florida telemarketer operating under the name HealthRight, to generate prescriptions for Synergy and the other pharmacies involved in the scheme. The prescriptions were typically for drugs such as pain creams, scar creams and vitamins. To obtain the prescriptions, Roix used HealthRight’s telemarketing platform as a telemedicine service, cold-calling consumers and deceiving them into agreeing to accept the drugs and to provide their personal insurance information. HealthRight then paid doctors to authorize the prescriptions through its telemedicine platform, even though the doctors never communicated directly with the patients and relied solely on the telemarketers’ screening process as the basis for their authorizations. Because this faulty and fraudulent process made the prescriptions invalid, the drugs were misbranded under the Food, Drug and Cosmetic Act. Synergy and the other pharmacies nonetheless dispensed the drugs to consumers as part of the scheme, so that Bolos could submit fraudulent reimbursement claims.
Court documents and evidence at trial established that during the conspiracy, which lasted from May 2015 through April 2018, Bolos and Palso, along with co-defendant Andrew Assad, paid Roix millions of dollars to buy at least 60,000 invalid prescriptions generated by HealthRight. Bolos selected specific medications for the prescriptions that he could submit for profitable reimbursements at inflated prices. In addition, Bolos, Palso, and Assad used illegal means to hide his activity from the PBMs so that they could remain undetected.
The sentencings for the remaining defendants — all of whom pleaded guilty prior to trial — are scheduled to occur later this week. Larry Smith, Alpha-Omega Pharmacy, Germaine Pharmacy, Zoetic Pharmacy, Tanith Enterprises LLC, ULD Wholesale Group and Taneja will be sentenced on May 17. Kapoor, Sterling Knight Pharmaceuticals and Maikel Bolos will be sentenced on May 18. Assad, Roix and HealthRight LLC will be sentenced on May 19. All of the sentencings will occur before Judge Greer in the U.S. District Court for the Eastern District of Tennessee at Greeneville.
The trial verdict and plea agreements resulted from a multi-year investigation conducted by the HHS-OIG (Nashville); FDA-OCI (Nashville); U.S. Postal Service, Office of Inspector General (Buffalo); FBI (Knoxville and Johnson City, Tennessee); OPM-OIG (Atlanta); and HSI (Tampa). The U.S. Marshals Service also assisted in the investigation and the forfeiture of assets.
Assistant U.S. Attorney Mac Heavener of the U.S. Attorney’s Office for the Eastern District of Tennessee and Senior Trial Attorney David Gunn of the Civil Division’s Consumer Protection Branch in Washington are prosecuting the case. They were assisted by Barbra Pemberton, Bryan Brandenburg and April Denard from the U.S. Attorney’s Office.
Florida Pharmacy Owners Sentenced in Tennessee for Multimillion-Dollar Nationwide Telemedicine Pharmacy Fraud SchemeRead the Press Release
GREENEVILLE, Tenn. A federal judge in Greeneville, Tennessee, sentenced two Florida men for their roles in a multimillion-dollar health care fraud scheme.
Peter Bolos, 44, of Tampa, was convicted by a federal jury in December 2021 of conspiracy to commit health care fraud, 22 counts of mail fraud and introduction of a misbranded drug into interstate commerce. U.S. District Judge J. Ronnie Greer sentenced Bolos to 14 years in prison and ordered him to pay more than $24.6 million in restitution and $2.5 million in forfeiture. The court also sentenced Bolos’s co-defendant, Michael Palso, 48, of Tampa, to 33 months in prison and ordered him to pay more than $24.6 million in restitution. Palso previously pleaded guilty to his role in the conspiracy, as did 14 other defendants in related cases. The remaining defendants are scheduled to be sentenced later this week.
According to court documents and evidence presented at trial, Bolos, Palso and their co-conspirators, Andrew Assad, Scott Roix, Larry Smith, Mihir Taneja, Arun Kapoor, and Maikel Bolos, as well as various other companies owned or controlled by some of these individuals, deceived pharmacy benefit managers (PBMs), such as Express Scripts and CVS Caremark, regarding tens of thousands of prescriptions. The PBMs processed and approved claims for prescription drugs on behalf of insurance companies. Bolos and his co-conspirators defrauded the PBMs into authorizing millions of dollars’ worth of claims that private insurers such as Blue Cross Blue Shield of Tennessee, and public insurers such as Medicaid and TRICARE, paid to pharmacies controlled by the co-conspirators.
“The significant sentences imposed by the court are a reflection of the gravity of the crimes that the defendants in this case committed,” said Deputy Assistant Attorney General Arun G. Rao, head of the Civil Division’s Consumer Protection Branch. “The department will continue to work with law enforcement partners to prosecute those who take advantage of telemedicine to perpetrate fraud schemes.”
“The scale of the prescription-drug fraud scheme orchestrated by these defendants and their conspirators was astonishing, and the Court’s prison sentences reflect the seriousness of their crimes,” said U.S. Attorney Francis M. Hamilton III for the Eastern District of Tennessee. “The financial harm caused by health care fraud hurts all Americans, and the United States Attorney’s Office for the Eastern District of Tennessee will continue to support the cooperation among its federal law enforcement partners that is necessary to bring criminal swindlers like these defendants to justice.”
“This sentencing is the result of a multi-agency investigation into a complex telemedicine pharmacy fraud scheme, requiring substantial investigative resources,” said Special Agent in Charge Joseph E. Carrico of the FBI’s Knoxville Field Office. “The FBI, with its law enforcement partners, will remain vigilant to assure that unscrupulous individuals who exploit our health care system are brought to justice.”
“Distributing misbranded prescription drugs in the U.S. marketplace places patients’ health at risk,” said Special Agent in Charge Justin C. Fielder of the FDA Office of Criminal Investigations (OCI) Miami Field Office. “We will continue to pursue and bring to justice those who put profits ahead of public health.”
“Bolos and his co-conspirators abandoned their responsibilities in the health care industry through an elaborate fraud scheme and manipulated the system without regard for patient need or medical necessity to line their pockets,” said Special Agent in Charge John Condon of Homeland Security Investigations (HSI) Tampa. “This significant sentence should serve as a warning to anyone who attempts to deceive the government and steal from taxpayers.”
“Providers who solicit beneficiaries’ personal information and use it to defraud federal health care programs not only undermine the integrity of those programs; they also divert valuable taxpayer dollars for self-serving purposes,” said Special Agent in Charge Tamala E. Miles of the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG is proud to work alongside our law enforcement partners to investigate and hold accountable perpetrators of federal health care fraud.”
“The U.S. Postal Service, Office of Inspector General, will continue to vigorously investigate those who commit frauds against federal benefit programs and the U.S. Postal Service,” said Special Agent in Charge Matthew Modafferi of the U.S. Postal Service, Office of Inspector General Northeast Area Field Office. “The sentencing in this case sends a clear message to pharmaceutical companies that tactics like these will not be tolerated. The U.S. Postal Service, Office of Inspector General would like to thank our law enforcement partners and the Department of Justice for their dedication and efforts in this investigation.”
Court documents and evidence at trial established that Bolos, Assad and Palso owned and operated Synergy Pharmacy in Palm Harbor, Florida. Under their direction, Synergy employed Scott Roix, a Florida telemarketer operating under the name HealthRight, to generate prescriptions for Synergy and the other pharmacies involved in the scheme. The Prescriptions were typically for drugs such as pain creams, scar creams and vitamins. To obtain the prescriptions, Roix used HeathRight’s telemarketing platform as a telemedicine service, cold-calling consumers and deceiving them into agreeing to accept the drugs and to provide their personal insurance information. HeathRight then paid doctors to authorize the prescriptions through its telemedicine platform, even though the doctors never communicated directly with the patients and relied solely on the telemarketers’ screening process as the basis for their authorizations. Because this faulty and fraudulent process made the prescriptions invalid, the drugs were misbranded under the Food, Drug and Cosmetic Act. Synergy and the other pharmacies nonetheless dispensed the drugs to consumers as part of the scheme, so that Bolos could submit fraudulent reimbursement claims.
Court documents and evidence at trial established that during the conspiracy, which lasted from May 2015 through April 2018, Bolos and Palso, along with co-defendant Andrew Assad, paid Roix millions of dollars to buy at least 60,000 invalid prescriptions generated by HealthRight. Bolos selected specific medications for the prescriptions that he could submit for profitable reimbursements at inflated prices. In addition, Bolos, Palso, and Assad used illegal means to hide his activity from the PBMs so that they could remain undetected.
The sentencing for the remaining defendants – all of whom pleaded guilty prior to trial – are scheduled to occur later this week. Larry Smith, Alpha-Omega Pharmacy, Germaine Pharmacy, Zoetic Pharmacy, Tanith Enterprises LLC, ULD Wholesale Group, and Taneja will be sentenced on May 17. Kapoor, Sterling Knight Pharmaceuticals and Maikel Bolos will be sentenced on May 18. Assad, Roix and HeathRight LLC will be sentenced on May 19. All of the sentencings will occur before Judge Greer in the U.S. District Court for the Eastern District of Tennessee at Greeneville.
The trial verdict and plea agreements resulted from a multi-year investigation conducted by the HHS-OIG (Nashville); FDA-OCI (Nashville); U.S. Postal Service, Office of Inspector General (Buffalo); FBI (Knoxville and Johnson City, Tennessee); OPM-OIG (Atlanta); and HSI (Tampa). The U.S. Marshals Service also assisted in the investigation and the forfeiture of assets.
Assistant U.S. Attorney Mac Heavener of the U.S. Attorney’s Office for the Eastern District of Tennessee and Senior Trial Attorney David Gunn of the Civil Division’s Consumer Protection Branch in Washington are prosecuting the case. They were assisted by Barbra Pemberton, Bryan Brandenburg, and April Denard from the U.S. Attorney’s Office.
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