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4 April 2022
Northumberland County Man Sentenced for Violating Toxic Substance Control ActRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on March 31, 2022, Dennis Morgan, age 75, of Northumberland County, Pennsylvania, was sentenced to one year of probation by Magistrate Judge William I. Arbuckle for a violation of the Toxic Substances Control Act.
According to United States Attorney John C. Gurganus, Morgan failed to provide a lead hazard pamphlet as required by the Code of Federal Regulations in violation of the Toxic Substances Control Act to lessees of a property that he owned in Sunbury, Pennsylvania, who resided there from August 2018 to October 2019. The residence was found to contain excessive lead hazards. A child living at the residence during that time was found to have elevated blood levels of lead in his body.
At the sentencing hearing, Dr. Kristen Keteles, a toxicologist employed by the Environmental Protection Agency (“EPA”), testified to why children are vulnerable to lead poisoning and the dangers that elevated lead levels pose to their healthy development.
“The defendant’s lack of responsibility to properly inform his tenants of the hazards of lead resulted in a child with elevated blood lead levels,” said Special Agent in Charge Jennifer Lynn of EPA’s criminal enforcement program in Pennsylvania. “Elevated blood levels can cause developmental problems in children. EPA is committed to protecting the health of our communities and our children, and to holding responsible parties accountable.”
The investigation was conducted by agents of the Environmental Protection Agency. Assistant United States Attorney Alisan V. Martin and EPA Special Assistant United States Attorney Patricia C. Miller prosecuted the case.
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New York man admits to firearms conspiracyRead the Press Release
CLARKSBURG, WEST VIRGINIA – Shane I. Thomason, of Brooklyn, New York, has admitted to his role in a firearms conspiracy, United States Attorney William Ihlenfeld announced.
Thomason, 21, pleaded guilty today to one count of “Conspiracy to Violate Federal Firearms Laws” and one count of “False Statement During Purchase of Firearm.” Thomason admitted to working with others to illegally purchase firearms and making false statements to illegally purchase firearms in April 2021 in Marion County.
Thomason faces up to five years of incarceration and a fine of up to $250,000 for the conspiracy charge and faces up to 10 years of incarceration and fine of up to $250,000 for the false statement charge. 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 Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. Magistrate Judge Michael John Aloi presided.
New York Man Pleads Guilty to Firearm OffenseRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Walik Skeete, age 45, of Binghamton, New York, pleaded guilty before U.S. District Court Judge Robert D. Mariani, on March 31, 2022, to being a convicted felon in possession of a firearm and ammunition.
According to United States Attorney John Gurganus, the charge stems from an incident in which members of the Pennsylvania State Police stopped Skeete’s vehicle in Susquehanna County for vehicle code violations and subsequently located a loaded Beretta 9mm pistol in Skeete’s vehicle. Skeete has prior felony convictions and is therefore prohibited from possessing a firearm or ammunition.
Judge Mariani ordered that a presentence investigation take place. Sentencing will be scheduled at a later date.
The investigation was conducted by the Pennsylvania State Police and the Bureau of Alcohol, Tobacco and Firearms (ATF). Assistant United States Attorney Robert J. O’Hara 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.
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Morgantown woman sentenced for firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Sarah Kuhn, of Morgantown, West Virginia, was sentenced today to three years of probation for a firearms charge, United States Attorney William Ihlenfeld announced.
Kuhn, 31, pleaded guilty in September 2021 to one count of “Aiding and Abetting the False Statement in Connection with the Acquisition of Firearms.” Kuhn admitted to working with another to purchase a firearm, making a false statement claiming the firearm was for her, when, in, fact, the firearm was meant for someone else. The crime occurred in July 2020 in Monongalia County.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, & Explosives and the Mon Metro Drug Task Force, a HIDTA-funded initiative, investigated.
Chief U.S. District Judge Thomas S. Kleeh presided.
Missouri Man Sentenced to 100 Months for Distribution of Child PornographyRead the Press Release
United States Attorney Jan Sharp announced that Charles Ryan Croney, age 26, of Missouri, was sentenced in federal court on April 1, 2022, in Omaha, Nebraska, for distribution of child pornography. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Croney to 100 months of imprisonment and ordered him to pay $36,000 in restitution. There is no parole in the federal system. After completing his term of imprisonment, Croney will begin a 7-year term of supervised release.
On January 1, 2020, Croney uploaded two images of child pornography to an online chat group. On January 30, 2020, a federal search warrant was executed where Croney was temporarily residing in Nebraska City, Nebraska. Agents obtained Croney’s cellular phone and located about 400 images of child pornography. Agents later searched Croney’s online Discord account and located additional child pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by the Sarpy County Sheriff’s Office and the Federal Bureau of Investigation.
Minnesota Farmer Sentenced to Prison for USDA Farm Loan FraudRead the Press Release
MINNEAPOLIS – A Slayton, Minnesota, man was sentenced to 12 months in prison, three years of supervised release, and $435,517.78 in restitution for converting collateral that secured loans from the U.S. Department of Agriculture, announced U.S. Attorney Andrew M. Luger.
According to court documents, in October 2015, Mark Alan Engelkes, 54, pledged 15,641 bushels of soybeans as collateral to the U.S Department of Agriculture (“USDA”) Commodity Credit Corporation (“CCC”) in order to obtain loan proceeds of nearly $80,000. During the application process for the CCC loan, Engelkes agreed to not move or dispose of the collateral until the loan was paid in full. However, in April 2016, officials from the USDA learned that Engelkes had removed the pledged grain without prior approval and sold it. In addition to the USDA CCC loan, the defendant also defaulted on other farm financing from USDA, resulting in a total loss amount to the government of $435,517.78.
On October 21, 2021, Engelkes pleaded guilty to one count of conversion of USDA CCC crops. He was sentenced on April 1, 2022, by Chief U.S. District Judge John R. Tunheim.
This case was the result of an investigation conducted by the U.S. Department of Agriculture-Office of Inspector General.
Assistant U.S. Attorney Lindsey Middlecamp and Special Assistant U.S. Attorney Hillary Taylor prosecuted the case.
Mililani Felon Sentenced to 52 Months in Prison for Firearm and Witness Tampering OffensesRead the Press Release
HONOLULU – Chad Gabris, age 41, of Mililani, Hawaii, was sentenced today to serve 52 months in federal prison for firearm offenses and witness tampering. Senior United States District Judge Susan O. Mollway ordered that Gabris’s federal sentence run consecutive to a State of Hawaii term of imprisonment for violating his state parole, and also imposed a three-year term of supervised release, to begin once Gabris is released from prison.
According to information presented to the court, Gabris, a tattoo-validated member of the "La Familia" prison gang and registered sex offender, was on parole with the State of Hawaii on October 8, 2019, when law enforcement found a Glock .40 S&W firearm and 70 rounds of ammunition hidden in his car in Mililani. Gabris’ DNA was on the firearm and his palmprint on a box containing some of the ammunition. Four prior felony convictions, two for sexual assault and two for breaking into a motor vehicle, prevented Gabris from legally possessing the firearm and ammunition. As part of his previously entered guilty plea, Gabris admitted that he possessed the firearm and ammunition, knowing he was a convicted felon.
As part of his guilty plea, Gabris also admitted that, after his arrest, he corruptly persuaded both his mother and the mother of his children to lie to federal investigators to shield him from criminal prosecution. Gabris persuaded both women to tell federal investigators, falsely, that the firearm and ammunition did not belong to Gabris and that his mother purchased them from a homeless man in a parking lot. Gabris assured his mother that if she was arrested for possessing the firearm and ammunition, she would not spend more than a year in jail and that he would make arrangements to bail her out.
"Our office is firmly committed to prosecuting convicted criminals who illegally keep guns," said U.S. Attorney Clare E. Connors. "A core objective of the Project Safe Neighborhoods effort is to protect the community from an armed defendant who has a prior association with a prison gang and is a registered sex offender with sexual assault convictions.
"The sentencing today sends a strong message that convicted felons should never be in possession of any firearms as they are a menace to our society," said FBI Special Agent in Charge Steven Merrill. "The FBI is grateful to work with the Hawaii Department of Public Safety – Sheriff Division, Honolulu Police Department, and the Hawaii Paroling Authority as we continue to combat violent crimes across our state to protect the public and hold those accountable for such acts."
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 works together to identify the most pressing violent crime problems in the community and develops 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 Federal Bureau of Investigation and the Hawaii Department of Public Safety, Sheriff Division, with the assistance of the Honolulu Police Department and the Hawaii Paroling Authority. The prosecution is handled by Assistant U.S. Attorney Wayne A. Myers.
Mercer County Man Sentenced for Retaliating Against Federal OfficerRead the Press Release
BLUEFIELD, W.Va. – A Mercer County man was sentenced to five years in federal prison today for retaliating against a federal law enforcement officer by filing a fraudulent lien and attempting to interfere with the administration of Internal Revenue laws.
Senior United States District Judge David A. Faber sentenced Jeffrey Reed, 62, of Flat Top to five years for the retaliation offense and to a concurrent three years for the attempted interference offense. The sentence will be followed by three years of supervised release.
A federal jury previously convicted Reed of both offenses following a two-day trial in August 2021. According to court records and evidence at trial, Mr. Reed owed a significant tax debt to the Department of Treasury and was employed by a hotel in the Oak Hill area. In 2015, after letters sent to Reed from the IRS were either sent back or ignored, an IRS revenue officer took steps to garnish a portion of Reed’s wages. When Reed learned of these efforts, he met with managers of the hotel and requested that they not comply with the IRS’ attempts to garnish his wages. In retaliation for a single wage garnishment of $598, Reed filed a $4.95 million lien with the Mercer County Clerk directed against the revenue officer and the owner of the hotel. Reed’s lien claimed 165 constitutional violations, including illegal search and seizure, war, treason and slavery. Reed also sought to attach any real and personal property owned by the revenue officer and the owner of the hotel.
Reed further claimed that the revenue officer owed him an additional $9 million because his name had been copyrighted.
Department of Treasury Special Agents testified at trial that they spoke to Reed in February 2020 at which time Reed admitted to filing the lien against the revenue officer. Reed further indicated that he filed the lien to obstruct the collection of his wages.
The court called Reed a “paper terrorist,” concluding his misconduct was “despicable” and “inexcusable” while citing deterrence as a factor in his sentencing
United States Attorney William Thompson commended the excellent work of the revenue officer and the Department of Treasury agents that worked on the case. The United States Department of Treasury, Treasury Inspector General for Tax Administrations (TIGTA) Office of Investigations conducted the investigation with assistance from the Internal Revenue Service (IRS). The prosecution was specifically authorized by the United States Department of Justice, Tax Division. Assistant United States Attorneys Erik S. Goes and Ryan Blackwell prosecuted the case.
“The defendant tried to illegally and illogically manipulate the legal process for his own personal gain, which will not be tolerated by this office,” Thompson said. “Criminals cannot be allowed to target others, in this case a federal employee and a business owner, for following the law.”
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. 1:20-cr-66.
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Maryland Man Pleads Guilty to Fatally Stabbing AcquaintanceRead the Press Release
WASHINGTON – Herbert Smallwood, 41, of Suitland, Maryland, pleaded guilty today to a charge of second-degree murder while armed for stabbing an acquaintance last year in Southeast Washington, announced U.S. Attorney Matthew M. Graves and Robert J. Contee III, Chief of the Metropolitan Police Department (MPD).
Smallwood pleaded guilty in the Superior Court of the District of Columbia. He is to be sentenced on July 22, 2022, by the Honorable Milton C. Lee, Jr.
According to the government’s evidence, on June 30, 2021, at approximately 7 p.m., Smallwood was traveling in an SUV that was following another vehicle being driven by an acquaintance. The other vehicle, a Ford Focus, crashed and flipped over in the rear of the 1600 block of 17th Place SE. Smallwood got out of the SUV with a knife and stabbed the victim, Joseph Ogundoju, multiple times. Mr. Ogundoju, 46, died a short time later.
Surveillance video shows Smallwood’s vehicle following Mr. Ogundoju’s vehicle immediately before it crashed. The victim’s blood also was found on Smallwood’s clothing. Smallwood was arrested on June 30, 2021. He has been in custody ever since.
In announcing the plea, U.S. Attorney Graves and Chief Contee commended the work of the Metropolitan Police Department, which investigated the case. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Latrice Washington-Williams and Paralegal Specialist Grazy Rivera. Finally, they expressed appreciation for the work of Assistant U.S. Attorney Brian Ganjei, who investigated and prosecuted the case.
Manvel man sent to prison for draining co-workers in investment schemeRead the Press Release
HOUSTON – A 42-year-old Manvel resident has been ordered to prison following his conviction of wire fraud, announced U.S. Attorney Jennifer B. Lowery.
Toan Tran pleaded guilty Jan. 4, 2021.
Today, U.S. District Judge Lynn Hughes ordered Tran to serve 120 months in federal prison to be immediately followed by three years of supervised release. In handing down the sentence, the court noted the blatant, fraudulent scheme and the fact that Tran preyed on his friends and co-workers. Several of the victims testified about the hardships his theft had caused for them and their families. After hearing from several of the victims, Judge Hughes noted the Tran’s “treachery” by stealing from friends and co-workers.
At the time of his plea, Tran admitted that in 2017 he used a fake investment account to convince a local businessman to sell him a media outlet. Tran showed the businessman funds in the account, but they had been altered. They fraudulently displayed $7 million when, in fact, he never had over $100,000 at any one time. Tran subsequently bankrupted the business and defaulted on the payments.
Tran also admitted to using the same scheme to persuade several co-workers to invest in his company from 2015 through 2017. Some victims invested their life savings and never saw any return.
In total, investors lost over $705,000 as a result of Tran’s scheme.
Tran was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
FBI - Texas City conducted the investigation. Assistant U.S. Attorney Thomas H. Carter prosecuted the case.
Las Vegas Police Officer Indicted for Three Casino RobberiesRead the Press Release
LAS VEGAS – A Las Vegas Metropolitan Police Department (LVMPD) officer made his initial appearance in federal court on Friday for allegedly robbing three casinos, stealing approximately $164,000 in total.
Caleb Mitchell Rogers (33) was arrested on February 27, 2022. A federal grand jury returned an indictment on March 22, 2022, charging Rogers with three counts of interference with commerce by robbery and one count of brandishing a firearm during and in relation to a crime of violence. U.S. Magistrate Judge Brenda Weksler scheduled a jury trial for May 23, 2022.
According to allegations in the indictment, on November 12, 2021, Rogers robbed a casino in the western part of Las Vegas of approximately $73,810. On January 6, 2022, he robbed a casino in North Las Vegas of approximately $11,500. In both robberies, Rogers walked directly to the casino’s cashier cage and demanded money from the cashiers.
The third robbery occurred on February 27, 2022. As alleged, Rogers ran toward two casino employees in the sportsbook area and yelled: “Get away from the money. I’ve got a gun. I will shoot you!” Rogers climbed over the counter and shoved one of the employees to the floor, before grabbing approximately $78,898 and placing it into a bag. Rogers fled when the employees triggered an alarm. As Rogers ran toward the parking garage, a casino security officer tackled him. Rogers drew a .357 caliber revolver and, with his finger on the trigger, threatened: “I’m going to shoot you!” Security officers were able to disarm Rogers and restrain him until LVMPD officers arrived. The officers arrested Rogers and seized his firearm. Checking the revolver’s serial number, officers learned that it belonged to the LVMPD.
The statutory maximum penalty is 20 years in prison for each count of interference with commerce by robbery, and life imprisonment for brandishing a firearm during and in relation to a crime of violence.
Acting U.S. Attorney Christopher Chiou for the District of Nevada and Acting Special Agent in Charge W.M. Herrington for the FBI made the announcement.
This case was investigated by the FBI and the LVMPD. Assistant U.S. Attorney Dan Cowhig is prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Justice Department Files False Claims Act Complaint Against Two Laboratory CEOs, One Hospital CEO and Others Across Texas, New York, and PennsylvaniaRead the Press Release
The Justice Department has filed a complaint against two laboratory CEOs, one hospital CEO and other individuals and entities, alleging False Claims Act violations based on patient referrals in violation of the Anti-Kickback Statute and the Stark Law, as well as claims otherwise improperly billed to federal healthcare programs for laboratory testing.
According to the United States’ complaint, laboratory executives and employees at True Health Diagnostics LLC (THD) and Boston Heart Diagnostics Corporation (BHD) allegedly conspired with small Texas hospitals, including Rockdale Hospital dba Little River Healthcare (LRH), to pay doctors to induce referrals to the hospitals for laboratory testing, which was then performed by BHD or THD. The complaint alleges that the hospitals paid a portion of their laboratory profits to recruiters, who in turn kicked back those funds to the referring doctors. The recruiters allegedly set up companies known as management service organizations (MSOs) to make payments to referring doctors that were disguised as investment returns but were actually based on, and offered in exchange for, the doctors’ referrals. As alleged in the complaint, BHD and THD executives and sales force employees leveraged the MSO kickbacks to doctors to increase referrals and, in turn, their bonuses and commissions. The complaint alleges that laboratory tests resulting from this referral scheme were billed to various federal health care programs, and that the claims not only were tainted by improper inducements but, in many cases, also involved tests that were not reasonable and necessary. In addition, the complaint alleges that, to increase reimbursement, LRH falsely billed the laboratory tests as hospital outpatient services.
“The Department of Justice is committed to holding accountable individuals and entities who commit and profit from healthcare fraud,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to pursue those who enter into unlawful financial arrangements that waste taxpayer dollars, improperly influence healthcare providers’ medical judgments and subject patients to unnecessary testing or other services.”
The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid and other federally funded programs. The Stark Law forbids a hospital or laboratory from billing Medicare for certain services referred by physicians that have a financial relationship with the hospital or laboratory. The Anti-Kickback Statute and the Stark Law seek to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients.
The United States’ complaint also alleges that various THD employees, including THD’s CEO, participated in schemes to pay other forms of kickbacks, including: (a) processing and handling fees to draw site companies; (b) monthly fees to a top-referring doctor, disguising the payments as consulting fees for participating in THD’s advisory board, even though no such board actually existed at THD; and (c) waiving patient copayments and deductibles meant to ensure that patients share in, and have an interest in controlling, the amounts billed to federal healthcare programs. These kickbacks allegedly were paid to induce referrals to Medicare, Medicaid and TRICARE for laboratory testing, including laboratory tests that were not reasonable and necessary.
The United States’ complaint names the following defendants:
- Christopher Grottenthaler, of Frisco, Texas, THD’s founder and former CEO
- Susan Hertzberg, of New York, BHD’s former CEO
- Jeffrey “Boomer” Cornwell, of McKinney, Texas, THD’s former Vice President of Sales for the Southwestern Region
- Stephen Kash, of Beaumont, Texas, THD’s former Director of Strategic Accounts and MSO recruiter
- Courtney Love, of Dallas, Texas, former THD Account executive
- Matthew Theiler, of Mars, Pennsylvania, BHD’s former Vice President of Sales
- William Todd Hickman, of Lumberton, Texas, owner and operator of defendants Ascend Professional Management Inc., Ascend Professional Consulting Inc., and BenefitPro Consulting LLC
- Laura Howard, of McKinney, Texas, former BHD Area Sales Manager and MSO recruiter
- Christopher Gonzales, of McKinney, Texas, MSO recruiter
- Jeffrey Madison, of Georgetown, Texas, LRH’s former CEO
- Peggy Borgfeld, of Lexington, Texas, LRH’s former Chief Financial Officer and Chief Operations Officer
- Stanley Jones, of San Antonio, Texas, MSO recruiter and co-owner and operator of defendant LGRB Management Services LLC (LGRB)
- Jeffrey Parnell, of Dallas, Texas, MSO recruiter and co-owner and operator of LGRB
- Thomas Gray Hardaway, of San Antonio, Texas, MSO recruiter and co-owner and operator of LGRB
- Ruben Marioni, of Spring, Texas, MSO recruiter and co-owner and operator of defendant Next Level Healthcare Consultants LLC (Next Level)
- Jordan Perkins, of Conroe, Texas, MSO recruiter and co-owner and operator of Next Level
- Ginny Jacobs, of Magnolia, Texas, MSO recruiter and co-owner and operator of defendants S&G Staffing LLC (S&G) and Jacobs Marketing Inc. (Jacobs Marketing)
- Scott Jacobs, of Magnolia, Texas, MSO recruiter and co-owner and operator of S&G and Jacobs Marketing
“Paying kickbacks to physicians distorts the medical decision-making process, corrupts our healthcare system and increases the cost of healthcare funded by the taxpayer,” said U.S. Attorney Brit Featherston for the Eastern District of Texas. “Laboratories, marketers and physicians cannot immunize their conduct by attempting to disguise the kickbacks as some sort of investment arrangement. Our office is committed to looking through the disguise and putting an end to any arrangement where the purpose is to improperly influence medical decision making through the payment of kickbacks.”
“When health care providers boost their profits through kickback schemes, they risk compromising the integrity of federal health care programs while increasing health care costs for everyone,” said Special Agent in Charge Miranda L. Bennett of the U.S. Department of Health and Human Services Office of Inspector General. “Working with our law enforcement partners, our agency is committed to thoroughly investigating such allegations of fraud.”
“Today’s outcome is a testament to the dedication and determination of the Department of Defense Office of Inspector General (DoD IG), Defense Criminal Investigative Service (DCIS) and our law enforcement partners to safeguard our military’s healthcare system, known as TRICARE,” said Special Agent in Charge Michael C. Mentavlos of the DCIS Southwest Field Office. “DCIS will continue to coordinate closely with the Department of Justice to hold accountable those that attempt to take advantage of the TRICARE program, defrauding the taxpayer and undermining mission readiness.”
The United States filed its complaint in a lawsuit originally filed under the qui tam or whistleblower provisions of the False Claims Act by STF LLC, whose members are Dr. Felice Gersh M.D. and Chris Riedel. Under the act, a private party can file an action on behalf of the United States and receive a portion of the recovery. The act permits the United States to intervene in such lawsuits and add claims and defendants, as it has done here. The qui tam case is captioned United States ex rel. STF, LLC v. Christopher Grottenthaler, et al. If a defendant is found liable for violating the act, the United States may recover three times the amount of its losses plus applicable penalties.
The United States’ pursuit of this lawsuit illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to the Department of Health and Human Services, at 800‑HHS‑TIPS (800-447-8477).
This case is being handled by the Civil Division’s Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the Eastern District of Texas. Investigative support is being provided by the Department of Health and Human Services’ Office of Inspector General and the Defense Criminal Investigative Service. As a result of its efforts, the United States has already recovered more than $30 million relating to conduct involving BHD, THD and LRH, including False Claims Act settlements with 25 physicians, two healthcare executives and a laboratory company.
This case is being handled by Civil Division Senior Trial Counsel Christopher Terranova, Trial Attorney Gavin Thole and Assistant U.S. Attorneys James Gillingham, Adrian Garcia and Betty Young for the Eastern District of Texas.
The claims in the complaint are allegations only, and there has been no determination of liability.
Justice Department Alleges Disability Discrimination in Amended Lawsuit Concerning Design and Construction of Multifamily Housing in HawaiiRead the Press Release
The Justice Department filed an amended complaint today in the U.S. District Court for the District of Hawaii, alleging that 14 entities designed and constructed five condominium and apartment complexes in Hawaii without accessible features required by the Fair Housing Act. Two of the properties — Kahului Town Terrace, in Kahului, Maui; and Palehua Terrace, in Kapolei, Oahu — were built with financial assistance from the federal government’s Low-Income Housing Tax Credit program. The other three properties are Napilihau Villages and Napili Villas, in Lahaina, Maui; and Wailea Fairway Villas, in Kihei, Maui.
The government’s original complaint named the general contractor for all five properties and the architects of four of the properties. The amended complaint adds the following defendants, alleging that each contributed to the Fair Housing Act violations: Stanford Carr Development LLC; SCD Wailea Fairways LLC; Sato & Associates Inc.; Ronald M. Fukumoto Engineering Inc.; Rojac Construction Inc.; Delta Construction Corp.; Warren S. Unemori Engineering Inc.; and GYA Architects Inc.
“Companies behind the mass development of condominiums, apartment complexes and other forms of multifamily housing must ensure that these properties are designed and built to be accessible to people with disabilities,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Federal accessibility rules have been in place for more than three decades, and we will hold accountable developers, architects, contractors and other entities that fail to comply with these legal obligations.”
The amended complaint alleges the same accessibility violations as the original complaint. For example, many covered units are inaccessible to persons using wheelchairs because the routes to the entrances include stairs or steep slopes; many routes to public and common areas are inaccessible because of missing sidewalks, missing curb ramps or steep slopes; and many units have inaccessible hardware at entry doors, interior doors that are too narrow and insufficient space in kitchens and bathrooms to maneuver in a wheelchair. The requested relief includes a court order requiring the defendants to retrofit the five properties to bring them into compliance with the Fair Housing Act, as well as monetary damages to compensate victims.
Individuals who may have been affected by the lack of accessibility at these properties should call the Civil Rights Division’s Housing Discrimination Hotline at 1-833-591-0291, press 1 for English, press 6 for this case, and leave a message, or send an email to [email protected].
The federal Fair Housing Act prohibits discrimination in housing on the basis of disability, race, color, religion, sex, familial status and national origin. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Individuals who believe they have been victims of housing discrimination should contact the Department of Justice toll-free at 1-833-591-0291, by email at [email protected], or submit a report online at https://civilrights.justice.gov/. Individuals may also contact the Department of Housing and Urban Development at 1-800-669-9777, or online at https://www.hud.gov/program_offices/fair_housing_equal_opp.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared during the week of March 28 through April 1 before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on March 31 was:
Jayson Gayo, 27, of Harlowton, on charges of possession of child pornography. If convicted of the most serious crime, Gayo faces a maximum of 20 years in prison, a $250,000 fine and five years of supervised release. Gayo was released pending further proceedings. Homeland Security Investigations and the Montana Division of Criminal Investigation investigated the case. PACER case reference. 22-24.
Bruce Eugene Bittick, 44, a transient, on charges of bank fraud, wire fraud and aggravated identity theft. If convicted of the most serious crime, Bittick faces a maximum of 20 years in prison, a $250,000 fine and five years of supervised release on bank fraud and a mandatory minimum two years in prison consecutive to any other crime on aggravated identity theft. Bittick was detained pending further proceedings. The Billings Police Department investigated the case. PACER case reference. 22-14.
Appearing on March 28 was:
Dominique Kendall Brown, 28, of Billings, on charges of possession with intent to distribute controlled substances and possession of a firearm in furtherance of a drug trafficking crime. If convicted of the most serious crime, Brown faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Brown was detained pending further proceedings. The FBI, Montana Highway Patrol, Fort Peck Police and Roosevelt County Sheriff’s Office investigated the case. PACER case reference. 22-19.
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on March 30 was:
Krista Jean Vela, 38, of Bend, Oregon, on charges of conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute meth. If convicted of the most serious crime, Vela faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Vela was detained pending further proceedings. Homeland Security Investigations, the Montana Highway Patrol and the Northwest Drug Task Force investigated the case. PACER case reference. 21-53.
Charles Warren Campbell, 51, of Butte, on charges of conspiracy to possess with intent to distribute controlled substances, possession with intent to distribute controlled substances, possession of a firearm in furtherance of a drug trafficking crime, prohibited person in possession of a firearm, possession of a firearm with an obliterated serial number and possession of an unregistered firearm. If convicted of the most serious crime, Campbell faces a mandatory minimum 10 years in prison consecutive to any other crime, a $250,000 fine and five years of supervised release on the crime of firearm in furtherance of drug trafficking. Campbell was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration, Montana Probation and Parole, and Butte Silver-Bow Law Enforcement Department investigated the case. PACER case reference. 22-09.
Ira Kyrk Westbrook, 46, of Billings, on charges of health care fraud, Social Security fraud and theft of government property. If convicted of the most serious crime, Westbrook faces a maximum of 10 years in prison, $250,000 fine and three years of supervised release. Westbrook was detained pending further proceedings. The Social Security Administration, U.S. Department of Veterans Affairs, Montana Adult Protective Services and Bozeman Police Department investigated the case. PACER case reference. 22-14.
James Ryan Elverud, 33, of Butte, on charges of possession with intent to distribute methamphetamine. If convicted of the most serious crime, Elverud faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Elverud was detained pending further proceedings. Homeland Security Investigations, the Lake County Sheriff’s Office, Flathead Tribal Police, Confederated Salish and Kootenai Tribes Tribal law enforcement and Montana Highway Patrol investigated the case. PACER case reference. 22-04.
Appearing on March 29 was:
Donaldo Perez Garcia, 28, of Mexico, on charges of illegal reentry. If convicted of the most serious crime, Garcia faces a maximum of two years in prison, a $250,000 fine and three years of supervised release. Garcia was detained pending further proceedings. Department of Homeland Security’s Enforcement and Removal Operations, Belgrade Police Department, Montana Highway Patrol and Gallatin County Sheriff’s Office investigated the case. PACER case reference. 21-41.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Huntington Man Pleads Guilty to Federal Gun CrimeRead the Press Release
HUNTINGTON, W.Va. – A Huntington man pleaded guilty today to being a felon in possession of firearms.
According to court documents and statements made in court, Marshall Lee Graves II, 37, admitted he illegally possessed three loaded firearms recovered by law enforcement officers while executing a search warrant of his residence in November 2019. Graves had previously been convicted in the United States District Court for the Southern District of West Virginia of possession with intent to distribute cocaine in 2014.
Graves is scheduled to be sentenced on July 18, 2022, and faces a maximum penalty of up to 10 years in prison.
U.S. Attorney Will Thompson made the announcement. The Huntington Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation.
United States District Judge Robert C. Chambers presided over the hearing. Assistant U.S. Attorney Courtney L. Cremeans is prosecuting the case. Former Assistant United States Attorney Patrick J. Jeffrey also handled the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:21-cr-00181.
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Huffman resident pleads guilty to unlawfully dealing firearmsRead the Press Release
HOUSTON – A 54-year-old man has admitted to engaging in the sale of firearms without a license, announced U.S. Attorney Jennifer B. Lowery.
Craig Lindsey Cornelison admitted he unlawfully sold at least 200 guns from September 2019 to December 2020.
The investigation began after Cornelison purchased over 90 lower receivers within a four-month period in approximately March 2020. He sold firearms primarily as private sales at gun shows throughout the Houston area. Law enforcement discovered numerous firearms were being trafficked overseas to foreign countries, including Iraq.
The United States seeks to forfeit over 100 firearms that were involved in the unlawful business and approximately $147,747 in proceeds gained from the sales.
U.S. District Judge Andrew Hanen accepted the plea and set sentencing for Aug. 8. At that time, Cornelison faces up to five years in prison and a possible $250,000 maximum fine.
The FBI and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorneys Steven Schammel and Heather Winter are prosecuting the case.
Hampton, Iowa Woman Pleads Guilty to COVID-19 Related Unemployment FraudRead the Press Release
A Hampton, Iowa woman who received unemployment benefits in other people’s names pled guilty on March 24, 2022, in federal court in Sioux City.
Stephanie Mendenhall, age 53, from Hampton, Iowa was convicted of four counts of theft of government funds and one count of money laundering conspiracy. At a plea hearing, Mendenhall admitted making false claims in the names of others, and depositing the resulting proceeds into her bank account. Mendenhall received fraudulent unemployment benefits paid through the states of Maine, Michigan, Washington, and Illinois, including benefits related to COVID-19 relief funds, to which she was not entitled. Mendenhall received at least $35,985 in false unemployment benefits.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Mendenhall remains free on bond previously set pending sentencing. Mendenhall faces a possible maximum sentence of 60 years’ imprisonment, a $1,500,000 fine, and 3 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorneys Ron Timmons and Tim Vavricek, and was investigated by the Federal Bureau of Investigation and the Department of Labor’s Office of Inspector General.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-3028.
Follow us on Twitter @USAO_NDIA.
Fort Myers Man Sentenced to 10 Years in Prison for Drug and Firearms OffensesRead the Press Release
Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell today sentenced Joshua Wade McGinnis (27, Fort Myers) to 10 years in federal prison for multiple counts of distributing cocaine and possessing a firearm during a drug trafficking offense. McGinnis had pleaded guilty on December 27, 2021.
According to court documents, between February and August 2021, McGinnis distributed cocaine to an undercover DEA agent and confidential source on multiple occasions in Fort Myers. During the last transaction before his arrest, McGinnis agreed to sell the source more than a pound of cocaine for $20,000. Fearing that he might be robbed during the transaction, McGinnis enlisted the assistance of his co-defendant, John Olvera-Salinas (20, Fort Myers). McGinnis asked Olvera-Salinas to accompany him to the transaction location and provided Olvera-Salinas with a loaded AK-47. When the two arrived at the location, they were promptly arrested by the DEA. At the time of the arrests, McGinnis possessed the cocaine and Olvera-Salinas possessed the loaded gun.
A subsequent search of McGinnis’s residence revealed a heavily fortified apartment, with security bars covering the windows and an extensive video surveillance system. The DEA agents recovered more than 14 firearms, nearly a pound of additional cocaine, 8 pounds of marijuana, approximately 3 ounces of oxycodone, and approximately one ounce of MDMA from the apartment.
Olvera-Salinas previously pleaded guilty to possessing a firearm in furtherance of a drug trafficking offense. His sentencing hearing is scheduled for May 9, 2022.
This case was investigated by the Drug Enforcement Administration. It is being prosecuted by Assistant United States Attorney Michael V. Leeman.
Former School Principal Pleads Guilty to Embezzling $175,000 from Fund for Student Activities and ServicesRead the Press Release
WASHINGTON – A former school principal pleaded guilty today to stealing at least $175,000 from an association that raises funds from parent contributions and fundraisers to provide school-related services and activities to students, admitting that she used the money for personal purposes, including to qualify for a home mortgage loan.
The announcement was made by U.S. Attorney Matthew M. Graves, Matthew R. Stohler, Special Agent in Charge, Washington Field Office, U.S. Secret Service, and Robert J. Contee III, Chief of the Metropolitan Police Department (MPD).
Bridget Coates, 48, of Falls Church, Va., was the principal of St. Thomas More Catholic School in Southeast Washington at the time her criminal activity began, in 2012, until she resigned in 2018. She pleaded guilty in the U.S. District Court for the District of Columbia to a charge of wire fraud. The charge carries a statutory maximum of 20 years in prison and potential financial penalties. Under the Court’s sentencing guidelines, Coates faces a likely range of 27 to 33 months in prison and a potential fine of up to $100,000. She also has agreed to pay $175,000 in restitution and an identical amount in a forfeiture money judgment.
The Honorable Dabney L. Friedrich scheduled sentencing for June 15, 2022.
According to court documents, from June 2012 through December 2017, Coates devised a scheme to steal from the school’s Home School Association, an organization affiliated with the school that supported student services and activities. As the school principal, Coates had access to the Home School Association’s checks and could use her discretion to pay expenditures for only school-related purposes. Coates, however, engaged in a pattern of purchasing personal goods and services with the funds. Over the time period, she wrote approximately 66 unauthorized checks and deposited at least $175,000 into her personal bank account. Among other things, she used the funds to help her qualify for a home-mortgage loan.
In announcing the plea, U.S. Attorney Graves, Special Agent in Charge Stohler and Chief Contee commended the work of those who investigated the case from the Secret Service and the Metropolitan Police Department. They also expressed appreciation for the efforts of those who handled the case for the U.S. Attorney’s Office, including Paralegal Specialist Chad Byron, and Assistant U.S. Attorneys Jeffrey Nestler and Marco Crocetti, who investigated and prosecuted the matter.
Former Marine Sentenced to More than 28 Years for Sexually Assaulting a 3-Year-OldRead the Press Release
Assistant U. S. Attorneys Amanda Griffith (619) 546-8970 and Katherine McGrath (610) 546- 9054
NEWS RELEASE SUMMARY – April 4, 2022
SAN DIEGO – Michael Hamby Jr., a former Marine, was sentenced in federal court today to 340 months in prison and 20 years of supervised release for sexually molesting a 3-year-old child. The record reflects Hamby also advertised the child as available to others and expressed an intent to engage in sexual games with two other children, ages 4 and 8.
Hamby, who pleaded guilty in May 2021, will be placed in a facility with a Sex Offender Management Program. He must also register as a sex offender.
“The lengthy sentence issued by the court reflects the horrific and depraved nature of Hamby’s crimes,” said U.S. Attorney Randy Grossman. “Following an NCIS investigation that spanned two countries, this prosecution ensures Hamby will face the consequences of his actions and the community will be protected from future harm.” Grossman thanked the prosecution team and federal agents who diligently pursued this egregious case.
“The world is a safer place for children now that Hamby has been sentenced to prison for his heinous crimes,” said Special Agent in Charge Michael Pierce of the NCIS Marine West Field Office. “As the federal law enforcement agency for the Department of the Navy, NCIS remains fully committed to protecting children from harm in communities where our DON personnel and their families live and work.”
According to the government’s sentencing memorandum, by all outward appearances, Hamby was a devoted husband and stepfather who served his country during two tours as a Marine, having reenlisted after completing his first tour in 2013 with an honorable discharge. His guilty plea, however, reflects a much darker picture. He admitted that from October 15, 2016 through October 22, 2016, while Hamby was residing on Camp Pendleton, he engaged in email communications with his co-defendant, Elijah Alexander Vazquez, who is scheduled to be sentenced tomorrow at 10:30am, also before U.S. District Judge John Houston. In the emails, Hamby and Vazquez discussed their mutual sexual interest in children and arranged to meet in person to engage in sexual activity with a 3-year old child. The defendant expressed his ability to persuade, coerce and induce the 3-year old child to engage in sexual activity. During their email exchanges, Hamby and Vazquez made plans to meet in person on or about October 22, 2016. They ultimately did meet as planned and engaged in various sexual acts with the child, including vaginal and anal penetration.
DEFENDANT Case Number 19CR1904-JAH
Michael Hamby, Jr. Age: 30
SUMMARY OF CHARGES
Enticement of a Minor -- Title 18, U.S.C., Section 2422(b)
Maximum penalty: A mandatory minimum 10 years in prison and a maximum of life in prison; a maximum $250,000 fine; and mandatory special assessments of $100 and $5,000.
AGENCY
Naval Criminal Investigative Service
Former CEO of Drug Manufacturing Company Charged with Conspiring to Defraud the FDA and Distributing Adulterated DrugsRead the Press Release
Miami, Florida – Raidel Figueroa, the former CEO and co-owner of Pharmatech, LLC, a drug and dietary supplement manufacturer that operated in Broward County, Florida, has made his initial appearance in Fort Lauderdale federal magistrate court to face charges that he conspired to manufacture and distribute drugs outside the regulatory oversight of the FDA, to interfere with and obstruct the FDA.
The unsealed indictment charges Figueroa with conspiracy to defraud the United States, falsification of records in a federal investigation, obstruction of proceedings before an agency of the United States, and distribution of adulterated drugs in interstate commerce.
The indictment alleges the following: From 2016 to 2017, Pharmatech manufactured and distributed Diocto Liquid, a drug used to treat constipation. In July 2016, FDA initiated an inspection at Pharmatech as part of an investigation into an outbreak of Burkholderia cepacia (“B. cepacia”) infections. B. cepacia is the name for a group or “complex” of bacteria typically found in soil and water. These bacteria pose little medical risk to healthy people, but people who have certain health problems like weak immune systems or chronic lung diseases may be more susceptible to B. cepacia infections. The effects of B. cepacia can include serious respiratory infections and other types of infections. Contaminated medicines can transmit B. cepacia, and the bacteria are often resistant to common antibiotics.
At the close of the FDA’s Pharmatech inspection in August 2016, the FDA notified Figueroa that a water sample taken from Pharmatech’s system had tested positive for B. cepacia. In response, Figueroa advised the FDA that Pharmatech was re-engineering its purified water system to prevent future contaminations, according to the allegations.
In March 2017, the FDA started another inspection at Pharmatech. FDA investigators asked Figueroa to disclose all products that Pharmatech had manufactured after it resumed manufacturing. It is alleged that Figueroa lied to the FDA investigators by, among other things, knowingly excluding Diocto Liquid from its products list (even though Pharmatech shipped over 7,000 units of the drug earlier that month) and by falsely stating to the FDA that Pharmatech’s new water system had met “acceptance criteria,” which was not true.
According to the indictment, in July 2017, the CDC notified the FDA of multiple cases of B. cepacia infections in pediatric patients at Stanford Children’s Health Lucile Packard Children’s Hospital in Palo Alto, California and Johns Hopkins Children’s Center in Baltimore, Maryland. FDA investigated and collected bottles of Diocto Liquid from these medical centers. It is alleged that the collected bottles were from the same lot that Pharmatech distributed in March 2017 – the same one that Pharmatech failed to disclose to the FDA. Several of the bottles contained total aerobic microbial counts and total yeast and mold counts over acceptable limits and some of the bottles also tested positive for the presence of B. cepacia, says the indictment.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, and Justin C. Fielder, Special Agent in Charge, Food and Drug Administration (FDA) Office of Criminal Investigations Miami Field Office, made the announcement.
The FDA Office of Criminal Investigations Miami Field Office investigated the case. Assistant U.S. Attorney Deric Zacca is prosecuting this case, with assistance from Laura Akowuah, from FDA’s Office of Chief Counsel.
An indictment contains mere allegations and defendants are presumed innocent unless and until proven guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 22-cr-60033.
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Dickinson County Couple Sentenced to Federal Prison for Meth ConspiracyRead the Press Release
A Dickinson County couple who conspired to distribute meth were sentenced on March 31, 2022. Meghan Renken, 29, from Spirit Lake, pled guilty on September 14, 2021, and Jared Wolthuis, 32, from Milford, Iowa, pled guilty on July 7, 2021, to conspiring to distribute methamphetamine.
At their respective plea and sentencing hearings, evidence showed that Renken and Wolthuis were involved in a conspiracy that distributed more than three pounds of pure methamphetamine between July 2018 and March 2020 in the Dickinson County, Iowa area. On March 17, 2020, law enforcement executed a search warrant at a co-conspirator’s rural residence and seized 20 pounds of methamphetamine from an outbuilding of the residence. During the course of the execution of the search warrant, law enforcement stopped Renken and Wolthuis driving away from the residence. Upon a search of the vehicle, law enforcement seized 3 pounds of pure meth that Renken and Wolthuis admitted they planned to distribute to other persons. Both also distributed ounce quantities of methamphetamine.
Sentencing was held before United States District Court Chief Judge Leonard T. Strand. Renken was sentenced to 31 months’ imprisonment. Wolthuis was sentenced to 36 months’ imprisonment. Each must also serve a three year term of supervised release following imprisonment. There is no parole in the federal system. Renken remains in custody of the United States Marshal Service until she can be transported to a federal prison. Wolthuis was released on the bond previously set and is to surrender to the Bureau of Prisons.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; and the Woodbury County Attorney’s Office, as well as the Iowa State Patrol.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-4050. Follow us on Twitter @USAO_NDIA.
Detroit woman admits to drug chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Tia Stout, of Detroit, Michigan, has admitted to a drug charge, United States Attorney William Ihlenfeld announced.
Stout, 32, pleaded guilty today to one count of “Aiding and Abetting the Distribution of Heroin within 1000 feet of a Protected Location.” Stout admitted to working with another to distribute heroin near a playground in Clarksburg in April 2019.
Stout faces at least one year and up to 40 years of incarceration and fine of up to $2,000,000. 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 Zelda E. Wesley is prosecuting the case on behalf of the government. The Greater Harrison Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Detroit Man Pleads Guilty to Federal Gun CrimeRead the Press Release
HUNTINGTON, W.Va. – A Michigan man pleaded guilty today to being a felon in possession of a firearm.
According to court documents, Terrell Jerome Greenlee, also known as Julian Johnson, 34, of Detroit, admitted that on October 17, 2021, officers responded to a call for emergency assistance in Huntington. The caller stated Greenlee brandished and pointed a firearm at her. Officers responded and located Greenlee, who was in possession of a loaded firearm that had previously been reported as stolen. Greenlee admitted that at the time he possessed the firearm, he knew he was prohibited from possessing a firearm because he had been convicted in the Circuit Court of Cabell County, West Virginia of first-degree robbery in May 2014.
Greenlee is scheduled to be sentenced on July 11, 2022, and faces a maximum penalty of up to 10 years in prison.
U.S. Attorney Will Thompson made the announcement. The Huntington Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation.
United States District Judge Robert C. Chambers presided over the hearing. Assistant U.S. Attorney Courtney L. Cremeans 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. 3:21-cr-00224.
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Convicted Sex Offender Sentenced to More Than 13 Years for Attempting to Entice a Minor to Engage in Sexual RelationsRead the Press Release
Assistant U. S. Attorneys Amanda Griffith (619) 546-8970 and Jennifer McCollough (619) 546-8773
NEWS RELEASE SUMMARY – April 4, 2022
SAN DIEGO – A California man was sentenced today to 162 months in prison followed by a lifetime of supervised release for attempting to meet an undercover agent he believed to be a minor to have sexual relations with her.
Eduardo Alcala, 43, was arrested on August 2, 2021 and pleaded guilty to the charges on November 4, 2021. According to information presented at the sentencing proceeding, Alcala sent a Facebook friend request to an undercover federal agent who told him that she was 13 years old. Alcala and the undercover agent continued communicating through text messages. Over the course of the text exchanges and several phone calls, Alcala appeared to groom her as the conversation escalated from talking about going to the beach, to “hooking it up,” to “working [her] out,” and eventually to having sex and masturbating over the phone before they planned to meet in person. Alcala made plans to meet at a park to engage in sexual conduct with the girl he believed to be 13 years old. During this time, Alcala was a convicted and registered sex offender already on parole for one of multiple convictions involving children under the age of 18. Notably, Alcala told the undercover agent that he was on parole and informed his parole officer he was going to meet his sick mother before going to the park, where he was arrested.
“This defendant was willing to victimize someone he believed to be a 13-year-old child. Fortunately, he instead connected with an undercover agent,” said U.S. Attorney Randy S. Grossman. “This successful prosecution demonstrates our unwavering commitment to protecting children. But the home is often our first line of defense. We urge all parents to be vigilant and aware of their children’s online activity.” Grossman commended the team of prosecutors and agents who worked diligently on this matter.
“This previously convicted sex offender communicated with someone he thought was a child for his own gratification, without regard to the physical, psychological and emotional damage he would have caused,” said Chad Plantz, Special Agent in Charge for HSI San Diego. “Thank you to those men and women who work tirelessly to make our community and virtual playgrounds a safe place for all children.”
Homeland Security Investigations (HSI) Agents in Calexico, California, conducted the investigation. The 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 the U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
DEFENDANTS Case Number 21cr2643-TWR
Eduardo Alcala Age: 43
SUMMARY OF CHARGES
Attempted Enticement of a Minor – Title 18, U.S.C., Section 2242(b)
Maximum penalty: life in prison; $250,000 fine
AGENCY
Homeland Security Investigations
Cleveland Man Sentenced to Prison for Gun Store and Gas Station RobberiesRead the Press Release
PITTSBURGH, Pa - A former Ohio resident has been sentenced in federal court to 87 months of imprisonment and five years of supervised release on his conviction of Conspiracy to Commit Hobbs Act Robbery, Hobbs Act Robbery, Conspiracy to Steal Firearms from a Licensed Firearm Dealer, Theft from a Licensed Firearms Dealer, Possession of Stolen Firearms, and Interstate Transport of Stolen Firearms, United States Attorney Cindy K. Chung announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Reginald Patterson, age 24, formerly of Cleveland, Ohio.
According to information presented to the court, in December of 2017, Reginald Patterson, his brother, Rayshawn Patterson, and other conspirators from the Cleveland, Ohio, area conspired to travel to rural areas of Western Pennsylvania to burglarize Federal Firearms Licensees (FFLs) and transport the stolen firearms back to Cleveland, Ohio. On December 22, 2017, Reginald and Rayshawn Patterson traveled to Clarion County, Pennsylvania to attempt to locate and burglarize a gun store. However, the brothers and their co-conspirators were unsuccessful in doing so. Prior to returning to Cleveland, Reginald and Rayshawn Patterson and their co-conspirators observed a gas station with only one employee working late at night. The individuals then devised a plan to rob that gas station. The brothers participated in a robbery of the gas station in which the employee was threatened with violence, physically restrained, and brought to another area of the store. The conspirators netted approximately $300 dollars from the robbery before returning to Cleveland.
The next day on December 23, 2017, Reginald Patterson and co-conspirators returned to Western Pennsylvania and burglarized DSD Sports in Brookville, PA by smashing the front door and windows with a sledgehammer and other tools. Once inside the store, Reginald Patterson and co-conspirators stole approximately 16 firearms including 14 handguns and two assault rifles. The co-conspirators then transported the firearms back to Cleveland, Ohio. On December 29, 2017, Cleveland Police recovered two of the stolen handguns from DSD outside the home of the Patterson brothers. On January 10, 2017, agents from the Pittsburgh and Cleveland division of Bureau of Alcohol, Tobacco, Firearms and Explosives executed search warrants in Cleveland, Ohio, at residences connected to Reginald and Rayshawn Patterson and their co-conspirators. Agents recovered the suspected sledgehammer and other tools used in the burglary.
Assistant United States Attorneys Brendan T. Conway and Douglas Maloney prosecuted this case on behalf of the government.
United States Attorney Chung commended the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Brookville Police Department, the Pennsylvania State Police, the Cleveland Police Department, and the Cuyahoga Sheriff’s Department for the investigation leading to the successful prosecution of Reginald Patterson.
Cleveland Man Found Guilty of Possession of Firearms and Ammunition as a FelonRead the Press Release
Acting U.S. Attorney Michelle M. Baeppler announced that a federal jury convicted Defendant Stephon Cunningham, 43, of Cleveland, Ohio, of being a felon in possession of a firearm and ammunition following a five-day trial before U.S. District Judge Christopher A. Boyko in Cleveland.
According to court documents, on June 1, 2019, Cleveland Police responded to a call regarding a male carrying two firearms. Police officers arrived at the scene, searched the area, and obtained two handguns, a Hi-Point 9mm caliber semi-automatic pistol, and a Smith & Wesson 9mm semi-automatic pistol, hidden underneath a tire in the backyard of a residence. Officers then interviewed witnesses who confirmed that they saw Cunningham exit a vehicle while holding both weapons. Witnesses told officers that Cunningham then walked into a backyard only to later returned without possession of the firearms.
Officers learned that both firearms were reported as stolen, and Cunningham was arrested. Cunningham’s DNA was later recovered from one of the weapons. Cunningham is prohibited from possessing a firearm due to previous convictions of drug trafficking and drug possession in the Cuyahoga County Common Pleas Court.
Cunningham is scheduled to be sentenced on July 26, 2022. He faces a maximum possible sentence of ten years in prison.
This investigation was conducted by the ATF and Cleveland Police Department. This case is being prosecuted by Assistant U.S. Attorneys Elizabeth M. Crook and Margaret A. Kane.
Churchill Felon Pleads Guilty to Illegally Possessing Fentanyl, Fentanyl Analogue, Firearms and AmmunitionRead the Press Release
PITTSBURGH, PA - A former resident of suburban Pittsburgh pleaded guilty in federal court to charges of violating federal firearm and narcotics laws, United States Attorney Cindy K. Chung announced today.
Maurice Miller, age 34, formerly of Churchill, pleaded guilty to two counts before United States District Judge Marilyn J. Horan.
In connection with the guilty plea, the court was advised that Miller pleaded guilty to participating in a conspiracy to distribute 400 grams or more of fentanyl. Miller also pleaded guilty to an information charging him with possession with the intent to distribute 10 grams or more of acetyl fentanyl and being a felon in possession of firearm and ammunition. Miller was part of a drug trafficking organization who referred to themselves as Hustlas Don’t Sleep which distributed numerous types of illegal narcotics for a number of years, mainly in the eastern part of the City of Pittsburgh and in the bordering communities, including Penn Hills, Wilkinsburg, and Monroeville, among others. On November 19, 2019, federal agents arrested Miller at a home on Wesley Street in Wilkinsburg, and executed a search warrant at that residence, where agents located six firearms, numerous rounds of ammunition of various makes and models, and substantial quantities of acetyl fentanyl, a potent analogue of fentanyl.
Judge Horan scheduled sentencing for July 26, 2022, at 10:30 a.m. The law provides for a total sentence of not less than 10 years in prison, a fine of $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, the court remanded Miller into the custody of the U.S. Marshals Service.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Cartel traffickers sentenced for multi-kilogram drug conspiracyRead the Press Release
LAREDO, Texas – A total of 10 Mexican nationals and associates of Cartel Jalisco Nueva Generacion have been ordered to federal prison for their roles in a conspiracy involving the importation of crystal meth, cocaine, heroin and fentanyl, announced U.S. Attorney Jennifer B. Lowery.
Today, U.S. District Judge Diana Saldana imposed an 80-month-term of imprisonment for Juan Jose Garcia Lerma, 45, Nuevo Leon, Mexico, while Jorge Luis Castellanos De La Mora, 37, Michoacan, Mexico, received 67 months. Not U.S. citizens, they are expected to face removal proceedings following their prison terms.
The other eight received their sentences last week. Roberto Ivan Rodriguez Ramirez, 27, and Manuel Enrique Ayala Rodriguez, 45, both of Nuevo Laredo, Mexico, were each sentenced to 192 months. Giovani Mendez Hornelas, a non-U.S. citizen residing in Angier, North Carolina, was sentenced to 108 months on April 1. Daniel Morales Hinojosa, 52, Santos Salazar, 35, Victor Hinojosa, 36, Omar Hiracheta-Cruz, 38, and Armando Animas Hernandez, 33, were sentenced earlier in the week. Daniel Hinojosa and Salazar were each ordered to serve 262-month-terms of imprisonment, while Victor Hinojosa, Hiracheta-Cruz and Hernandez received 210, 192 and 120 months, respectively. All are also expected to face removal proceedings.
At the hearings, Judge Saldana noted the extensive conspiracy which relied on many truck drivers to succeed. Saldana noted that each played a role that contributed to the smuggling of large amounts of drugs from the Michoacan area into the United States for distribution to cities throughout the United States. Whether truck drivers, stash operators or couriers co-conspirators were in some way responsible for these deadly drugs reaching distribution centers. Daldana noted the horrible effects that such drugs have had in certain regions and populations of the country.
The investigation began in 2017 when authorities identified Juan Manuel Salazar Alvarez as the operator of the conspiracy. Alvarez directed a large-scale organization comprised of truck drivers, stash house operators and transportation coordinators responsible for smuggling fentanyl, heroin, meth and cocaine.
The drugs were concealed in fire extinguishers, wooden blocks, vehicle batteries and hydraulic jacks. The co-conspirators worked as truck drivers to transport the drugs from Michoacán and Jalisco to Nuevo Laredo, Tamaulipas, Mexico, and into Laredo. In Texas, the conspirators stashed the drugs in storage units, tractor trailers or other locations. Drivers then transported the narcotics to distribution centers across the United States including Houston; Dallas; Memphis, Tennessee; Kentucky; and North Carolina.
All have been and will remain in custody pending transfer to a U.S. Bureau Prisons facility to be determined in the near future.
Alvarez will be sentenced at a later date.
The Drug Enforcement Administration conducted the Organized Crime Drug Enforcement Task Forces (OCDETF) Operation Gelo Podre (Rotten Ice) with the assistance of Laredo Police Department, U.S. Marshals Service, Williamson County Sheriff’s Office, Interpol Mexico City and the Mexican National Guard.
OCDETF identifies, disrupts and dismantles the highest-level drug traffickers, money launderers, gangs and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage.
Deputy Criminal Chief for the South Texas Organized Crime Drug Enforcement Task Force Mary Lou Castillo is prosecuting the case.
Canton Man Found Guilty of Intent to Distribute Fentanyl and Illegal Possession of a FirearmRead the Press Release
Acting U.S. Attorney Michelle M. Baeppler announced that a federal jury returned guilty verdicts on Friday, April 1, 2022, against Defendant Juan R. Grogan, 30, of Canton, Ohio, following a two-day trial before Judge Donald C. Nugent in Cleveland. Grogan was found guilty of possession with intent to distribute fentanyl, possession of a firearm in furtherance of drug trafficking and felon in possession of a firearm.
According to court documents and evidence presented at trial, while conducting an investigation, law enforcement officers reviewed video footage from an incident that occurred on December 1, 2020, involving a pair of vehicles driving in the Canton area and exchanging gunfire. Investigators believed that Grogan was the operator of one of the vehicles.
On December 7, 2020, law enforcement officials sought to arrest Grogan on outstanding warrants for kidnapping, aggravated robbery and felonious assault issued by the Canton Municipal Court. During the execution of the warrants, officers located the vehicle used in the earlier shooting parked at a Canton-area residence and witnessed Grogan flee the area.
Officials then searched the vehicle and obtained a loaded Glock, model 30 handgun, additional ammunition, a digital scale and a clear plastic bag containing brown powder. The brown substance was later tested and found to contain 75.6 grams of heroin and fentanyl.
Grogan was later arrested on December 10, 2020. Grogan faces a max possible sentence of life in prison.
This case was investigated by the FBI, United States Marshal Service, Canton Police Department and Stark County Sheriff’s Office. This case was prosecuted by Assistant U.S. Attorney Damoun Delaviz.
Bluefield Man Pleads Guilty to Child Pornography OffenseRead the Press Release
BLUEFIELD, W.Va. – A Bluefield man pleaded guilty today to possessing child pornography.
According to statements made in court, Christopher Paul Knight, 56, possessed computer image and video files depicting prepubescent minors engaged in sexual intercourse and other sexually explicit conduct.
Knight pleaded guilty to possession of child pornography. He is scheduled to be sentenced on July 18, 2022, and faces a maximum penalty of 20 years in prison.
U.S. Attorney Will Thompson made the announcement. The Federal Bureau of Investigation Violent Crimes Against Children Task Force conducted the investigation.
Senior United States District Judge David A. Faber presided over the hearing. Assistant U.S. Attorney Jennifer Rada Herrald is prosecuting the case.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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. 1:21-cr-00262.
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Baltimore Man Admits to Transporting an Individual to Engage in Prostitution and Distributing Fentanyl, Heroin, and Cocaine to Trafficking VictimsRead the Press Release
Baltimore, Maryland – Adolph Scott, age 37, of Baltimore, Maryland, pleaded guilty today to transporting an individual to engage in prostitution and possession with intent to distribute controlled substances.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; and Chief Gregory J. Der of the Howard County Police Department.
According to his guilty plea, from approximately early 2020 to February 3, 2021, Scott traveled with Victim 1 and other females from North Carolina to Maryland to engage in commercial sex acts. As part of his guilty plea Scott agreed that he coerced, threatened, and forced Victim 1 to engage in commercial sex acts for his own benefit.
Throughout the trafficking of Victim 1, Victim 1 was required to give all commercial sex proceeds that she earned to Scott. Additionally, Scott overcharged Victim 1 for the drugs that he bought for her, therefore gaining a profit. Scott was aware that Victim 1 and the accompanying females were highly dependent on heroin and cocaine.
As stated in his plea agreement, on February 2, 2021, law enforcement received a report regarding possible human trafficking at an Elkridge, Maryland hotel. As a result of the report, undercover police surveilled the hotel and responded to a commercial sex advertisement at the motel.
After an undercover agent was solicited for sex by a female in a hotel room and officers saw Scott exit the same hotel room as the soliciting female, officers placed Scott under arrest.
Upon the search of Scott’s person, officers located two cell phones, $428 in cash, and distribution amounts of heroin, cocaine, and fentanyl. Scott agrees that he intended to distribute the controlled substances to Victim 1 and the other females.
As detailed in his plea agreement, a state search warrant was obtained to search the contents of Scott’s cell phone. One of the phones was found to be the phone initially used to communicate with undercover detectives in response to the commercial sex advertisement. Additionally, the phone contained text message conversations regarding drug distribution and commercial sex dates at the motel.
A federal search warrant was also obtained to search the contents of Scott’s storage locker in Raleigh, North Carolina. Within the unit, investigators located condoms, lubricant, heroin needles, and documents belonging to Scott, Victim 1, and the other females.
Scott faces a maximum sentence of 10 years in federal prison for transporting an individual to engage in prostitution and a maximum of 20 years in federal prison for possession with intent to distribute controlled substances. U.S. District Judge Richard D. Bennett has scheduled sentencing for July 11, 2022 at 2:30 p.m.
United States Attorney Erek L. Barron commended the HSI and the Howard County Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Mary Setzer who is prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/human-trafficking and https://www.justice.gov/usao-md/community-outreach.
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Antitrust Division Updates Its Leniency Policy and Issues Revised Plain Language Answers to Frequently Asked QuestionsRead the Press Release
The Justice Department’s Antitrust Division today announced updates to its Leniency Policy and issued a revised set of frequently asked questions (FAQs). The Antitrust Division also launched a new dedicated email address to make it easier for companies and individuals to apply for leniency. These changes reaffirm the Antitrust Division’s commitment to transparency, predictability and accessibility in criminal enforcement.
The Antitrust Division Leniency Policy allows the first individual or company to self-report its involvement in an antitrust cartel to avoid prosecution if it cooperates with the Division’s investigation and prosecutions, and meets other conditions. The updated policy announced today now also requires that a corporate applicant promptly self-report after discovering its wrongful conduct and undertake remedial measures to prevent reoffending.
“It’s important for the rules of the road to be clear so the business community knows what to expect and appreciates the costs of losing the race for leniency,” said Assistant Attorney General Jonathan Kanter of the Antitrust Division. “Corporate boards and executives, and the counsel advising them, should understand that sitting on their hands after detecting an antitrust crime will have real ramifications — losing out on leniency means severe consequences.”
As part of the updates, the Leniency Policy was centralized in the Antitrust Division’s chapter of the Justice Manual, 7-3.000 - Criminal Enforcement | JM | Department of Justice. The revised FAQs, available at Leniency Program (justice.gov), include nearly 50 new questions and answers about the Division’s practices concerning leniency. They are written in plain language and provide guidance to outside and in-house counsel, and businesspeople in all sectors of the economy and at all levels of sophistication.
Anyone seeking to apply for leniency should contact the Division at [email protected] or 202-307-0719.
Anchorage Man Pleads Guilty to Fraud ChargesRead the Press Release
ANCHORAGE – An Anchorage man was charged by information today and immediately pleaded guilty to passport fraud, health care benefits fraud, false statements relating to health care benefits, Social Security benefits fraud and false statements.
According to court documents, William Joe Westfall, 72, was born in 1949 and served in the U.S. Navy from July 1972 – July 1978. He was a computer technician and retired as a Petty Officer First Class. He did not serve in the Vietnam War, was never stationed in Vietnam, and never traveled to Vietnam or the waters near Vietnam during his service in the U.S. Navy.
Despite his true past, Westfall applied for Medicare benefits in December 2010 stating that he was born in 1941 when he knew that he was born in 1949. Based on this false information, U.S. agencies determined that Westfall was eligible for Medicare and additional Social Security benefits. Since this time, Westfall has received more than $44,000 in Medicare benefits to which he was not entitled and $144,000 more than he was entitled to in Social Security benefits.
In June 2011, Westfall applied for Veterans Health Administration (VHA) medical benefits. In support of his application, Westfall submitted a military discharge document known as a DD-214 to establish eligibility based on prior service in Vietnam. The DD-214 showed his alleged Vietnam War service and 1941 birth year. Westfall also later claimed to have been a diver in the U.S. Navy, suffered hearing loss as a result of his Vietnam service and to have been exposed to Agent Orange in order to obtain a service-related disability determination through the Veterans Benefits Administration (VBA). The DD-214 and statements about his service in Vietnam, including the associated health issues arising from that service, were false. In total, Westfall received $331,401.81 in VBA and VHA benefits to which he was not entitled.
In February 2016, Westfall applied for a U.S. Passport and falsely stated that his birth year was 1941. The passport was issued with the false birth year.
Additionally, in June 2021, federal agents from the Department of Veterans Affairs Office of Inspector General and the Department of Health and Human Services Office of Inspector General interviewed Westfall about these issues. During the interview, Westfall lied to agents by again falsely claiming he was born in 1941, served in Vietnam and was exposed to Agent Orange along the Mekong River Delta.
As part of his plea agreement, Westfall will pay full restitution of $518,401.81 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.
“Every year the United States suffers enormous losses from fraud against government programs,” said U. S. Attorney John E. Kuhn, Jr. of the District of Alaska. “Fraud against government entitlements and services is intolerable, as it is truly a theft from all taxpayers. Westfall’s half-million-dollar fraud scheme compromised a multitude of programs run by multiple agencies: the Social Security Administration, Medicare, the Veterans Administration, and the Department of State. We applaud the collaborative work of these agencies in investigating this case; their efforts secure the integrity of our programs and services and preserve the limited resources available to fund those programs.”
“This conviction demonstrates the VA OIG’s unwavering commitment to protect programs intended to assist veterans that have served this nation and rightfully earned their benefits,” said Special Agent in Charge Jason P. Root of the Department of Veterans Affairs Office of Inspector General’s Northwestern Field Office.
“HHS-OIG remains vigilant in our quest to identify individuals who attempt to illegally benefit from federal funds and deprive law-abiding citizens from much needed health benefits,” stated Special Agent in Charge Steven J. Ryan of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “Working with our law enforcement partners, we will continue to investigate illegal acts and hold accountable individuals who defraud federal health care programs.”
“This guilty plea results from our collective efforts to hold accountable those who make false statements to obtain Federal benefits. Mr. Westfall deliberately provided fictious biographical information, which caused Social Security Administration (SSA) to improperly pay him more than $144,000 in benefits that he should not have received,” said Gail S. Ennis, Inspector General for the Social Security Administration. “We will continue to work with our law enforcement partners to investigate those who defraud SSA. I thank the Diplomatic Security Services, Veterans Affairs Office of the Inspector General (OIG) and Health and Human Services OIG for their support in this investigation. I also thank the U.S. Attorney’s Office for their efforts in this case.”
“The Diplomatic Security Service (DSS) is firmly committed to working with the U.S. Department of Justice and our law enforcement partners to investigate and prosecute all allegations of criminal activity related to passport and visa fraud,” said Special Agent in Charge William Chang of the DSS San Francisco Field Office. “The strong relationship we enjoy with our federal and local law enforcement partners is vital towards ensuring the integrity of U.S. travel documents and protecting greater U.S. interests.”
This case is being investigated by the U.S. Department of State’s Diplomatic Security Service; U.S. Department of Veterans Affairs, Office of Inspector General, Criminal Investigations Division; Department of Health and Human Services, Office of Investigation; and the Social Security Administration Office of the Inspector General.
Assistant U.S. Attorney Michael Heyman is prosecuting the case.
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739 Months in Federal Sentences Imposed for Child Enticement and Human Trafficking CrimesRead the Press Release
TALLAHASSEE, FLORIDA – Last week, three men were sentenced following their guilty pleas to crimes involving the victimization of a child. George Williams, 44, of Perry, Florida, was sentenced to 180 months federal prison for coercing or enticing a minor to engage in prostitution and attempted production of child pornography. Durrell Johnson, 36, of Tallahassee, Florida, was sentenced to 235 months federal prison for coercing or enticing a minor to engage in prostitution and receipt of child pornography. Joshua Curry, 34, of Tallahassee, Florida, was sentenced to 324 months federal prison for conspiracy to sex trafficking a minor and two counts of sex trafficking of a minor. The sentences were announced by Jason R. Coody, United States Attorney for the Northern District of Florida.
“These convictions demonstrate the unwavering commitment to the protection of our most vulnerable and should serve as a significant deterrent to those who would attempt to harm them,” said U.S. Attorney Coody. “Through concerted efforts like Operation Stolen Innocence we will continue to work tirelessly with our law enforcement partners to investigate and prosecute those who prey upon our children.”
“Operation Stolen Innocence represents the strong partnership between HSI and Tallahassee PD, combining law enforcement efforts and expertise to ensure the safety of children and to combat child exploitation,” said HSI Tampa Special Agent in Charge John Condon. “The sentencings of these child predators hold them accountable for targeting our most vulnerable.”
Williams’ prison sentence will be followed by a Lifetime of supervised release, and he will also be required to register as a sex offender and will be subject to sex offender conditions. Johnson and Curry’s prison sentence will be followed by ten years supervised release and both will also be required to register as a sex offender and will be subject to sex offender conditions.
“We are grateful to see justice prevail for the victim in this case,” said Tallahassee Police Chief Lawrence Revell. “These sentences are a testament to the judicial systems’ tireless efforts to hold accountable those who break the law and reiterate to the community that human trafficking will not be tolerated.”
The convictions were the result of a collaborative investigation by the Tallahassee Police Department and Homeland Security Investigations as part of Operation Stolen Innocence, a multi-agency coordinated effort by the United States Marshals Service, the Florida Department of Law Enforcement, the Leon County Sheriff’s Office, and the Office of the State Attorney, Second Judicial Circuit to combat human trafficking in the Tallahassee area. First Assistant United States Attorney Michelle Spaven prosecuted the cases.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
$90 Million Yacht of Sanctioned Russian Oligarch Viktor Vekselberg Seized by Spain at Request of United StatesRead the Press Release
Note: Footage of the seizure is available here. View the statement from the Attorney General on today's seizure here.
Spanish law enforcement today executed a Spanish court order freezing the Motor Yacht (M/Y) Tango (the Tango), a 255-foot luxury yacht owned by sanctioned Russian oligarch Viktor Vekselberg. Spanish authorities acted pursuant to a request from the U.S. Department of Justice for assistance following the issuance of a seizure warrant, filed in the U.S. District Court for the District of Columbia, which alleged that the Tango was subject to forfeiture based on violation of U.S. bank fraud, money laundering, and sanction statutes. Separately, seizure warrants obtained in the U.S. District Court for the District of Columbia target approximately $625,000 associated with sanctioned parties held at nine U.S. financial institutions. Those seizures are based on sanctions violations by several Russian specially designated nationals.
According to documents filed in this case, the U.S. investigation alleges that Vekselberg bought the Tango in 2011 and has owned it continuously since that time. It further alleges that Vekselberg used shell companies to obfuscate his interest in the Tango to avoid bank oversight into U.S. dollar transactions related thereto. Additionally, after Vekselberg was sanctioned by the U.S. Treasury Department on April 6, 2018, the warrant alleges that Vekselberg and those working on his behalf continued to make U.S. dollar payments through U.S. banks for the support and maintenance of the Tango and its owners, including a payment for a December 2020 stay at a luxury water villa resort in the Maldives and mooring fees for the yacht. Vekselberg had an interest in these payments and therefore a license was required from the Treasury Department, which was not obtained.
“Today marks our taskforce’s first seizure of an asset belonging to a sanctioned individual with close ties to the Russian regime. It will not be the last,” said Attorney General Merrick B. Garland. “Together, with our international partners, we will do everything possible to hold accountable any individual whose criminal acts enable the Russian government to continue its unjust war.”
“Today’s action makes clear that corrupt Russian oligarchs cannot evade sanctions to live a life of luxury as innocent Ukrainians are suffering,” said Deputy Attorney General Lisa O. Monaco. “Today the Department of Justice delivers on our commitment to hold accountable those whose criminal activity strengthens the Russian government as it continues to wage its unjust war in Ukraine. That commitment is one we are not finished honoring.”
“Today we announce another example of the FBI using our worldwide presence and partnerships, as well as our expertise and experience, to track and seize illicit money and assets, to counter threats to our safety and national security,” said FBI Director Christopher Wray. “We will continue to use every lawful tool to go after designated Russian oligarchs' assets – however and wherever they hide them.”
The seizure was coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export restrictions, and economic countermeasures that the United States has imposed, along with its allies and partners, in response to Russia’s unprovoked military invasion of Ukraine. Announced by the Attorney General on March 2 and run out of the Office of the Deputy Attorney General, the task force will leverage all the Department’s tools and authorities against efforts to evade or undermine the economic actions taken by the U.S. government in response to Russian military aggression.
“The seizure of this luxury yacht demonstrates our determination to hold accountable those who support Vladimir Putin’s unwarranted invasion of another sovereign nation,” said U.S. Attorney Matthew M. Graves for the District of Columbia. “We will continue to use every tool to enforce the sanctions aimed at Putin’s regime and the oligarchs who support it. Working with our federal and international partners, we will be unflagging in our efforts to bring to justice those who violate these sanctions, and to seize assets where appropriate and lawful.”
“Today’s seizure of Viktor Vekselberg’s yacht, the Tango, in Spain is the result of an unprecedented multinational effort to enforce U.S. sanctions targeting those elites who have enabled Russia’s unprovoked and illegal invasion of Ukraine,” said Director Andrew Adams of Task Force KleptoCapture. “For those who have tied their fortunes to a brutal and lawless regime, today’s action is a message that those nations dedicated to the rule of law are equally dedicated to separating the oligarchs from their tainted luxuries. This seizure is only the beginning of the Task Force’s work in this global effort to punish those who have and continue to support tyranny for financial gain.”
“The FBI will continue to work with its partners to protect the integrity of the banking system and support the enforcement of sanctions programs,” said Special Agent in Charge Michael F. Paul of the FBI’s Minneapolis Field Office. “FBI agents and analysts, regardless of where they are assigned around the world, will work tirelessly to ensure those who attempt to evade sanctions are held accountable.”
“The Russian invasion of Ukraine was an unprovoked act of aggression that has targeted the lives and well-being of millions of people and threatened international security,” said Acting Special Agent in Charge Ricky J. Patel of Homeland Security Investigations (HSI) New York. “For decades, the Putin regime has been supported by a group of Russian oligarchs that abused their power for private gain to amass untold riches. As DHS’s investigative arm, HSI stands at the forefront of combatting global networks that seek to violate U.S. law and exploit our nation’s financial systems. Working with our partners at the U.S. Department of Justice and the FBI, we will hold Putin’s oligarchs accountable and deny them the lavish lifestyles they cherish.”
Upon receipt of a request from the United States pursuant to a bi-lateral treaty for mutual legal assistance in criminal matters, the Spanish central authority for mutual legal assistance forwarded the request to a Spanish prosecutor, who obtained a freezing order from a Spanish court. The order was executed by Spain’s Guardia Civil on April 4.
The Tango, International Maritime Organization number 1010703, is believed to be worth approximately $90 million or more. The yacht is now in Mallorca.
The burden to prove forfeitability in a forfeiture proceeding is upon the government.
The matter of the Tango is being investigated by the FBI’s Minneapolis Field Office with assistance from the FBI Legal Attaché Office in Madrid and the HSI New York Field Office.
Assistant U.S. Attorney Karen P. Seifert for the District of Columbia and Paralegal Brian Rickers and Legal Assistant Jessica McCormick for the District of Columbia are handling the seizure. The Justice Department’s Office of International Affairs provided significant assistance in working with the Spanish authorities, as well as the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS).
En Español
$90 Million Yacht of Sanctioned Russian Oligarch Viktor Vekselberg Seized by Spain at Request of United StatesRead the Press Release
WASHINGTON – Spanish law enforcement today executed a Spanish court order freezing the Motor Yacht (M/Y) Tango (the Tango), a 255-foot luxury yacht owned by sanctioned Russian oligarch Viktor Vekselberg. Spanish authorities acted pursuant to a request from the U.S. Department of Justice for assistance following the issuance of a seizure warrant, filed in the U.S. District Court for the District of Columbia, which alleged that the Tango was subject to forfeiture based on violation of U.S. bank fraud, money laundering, and sanction statutes.
According to documents filed in this case, the U.S. investigation alleges that Vekselberg bought the Tango in 2011 and has owned it continuously since that time. It further alleges that Vekselberg used shell companies to obfuscate his interest in the Tango to avoid bank oversight into U.S. dollar transactions related thereto. Additionally, after Vekselberg was sanctioned by the U.S. Treasury Department on April 6, 2018, the warrant alleges that Vekselberg and those working on his behalf continued to make U.S. dollar payments through U.S. banks for the support and maintenance of the Tango and its owners, including a payment for a December 2020 stay at a luxury water villa resort in the Maldives and mooring fees for the yacht. Vekselberg had an interest in these payments and therefore a license was required from the Treasury Department, which was not obtained.
“Today marks our taskforce’s first seizure of an asset belonging to a sanctioned individual with close ties to the Russian regime. It will not be the last.” said Attorney General Merrick B. Garland. “Together, with our international partners, we will do everything possible to hold accountable any individual whose criminal acts enable the Russian government to continue its unjust war.”
“Today’s action makes clear that corrupt Russian oligarchs cannot evade sanctions to live a life of luxury as innocent Ukrainians are suffering,” said Deputy Attorney General Lisa O. Monaco. “Today the Department of Justice delivers on our commitment to hold accountable those whose criminal activity strengthens the Russian government as it continues to wage its unjust war in Ukraine. That commitment is one we are not finished honoring.”
“Today we announce another example of the FBI using our worldwide presence and partnerships, as well as our expertise and experience to track and seize illicit money and assets, to counter threats to our safety and national security,” said FBI Director Christopher Wray. “We will continue to use every lawful tool to go after designated Russian oligarchs' assets – however and wherever they hide them.”
The seizure was coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export restrictions, and economic countermeasures that the United States has imposed, along with its allies and partners, in response to Russia’s unprovoked military invasion of Ukraine. Announced by the Attorney General on March 2 and run out of the Office of the Deputy Attorney General, the task force will leverage all the Department’s tools and authorities against efforts to evade or undermine the economic actions taken by the U.S. government in response to Russian military aggression.
"The seizure of this luxury yacht demonstrates our determination to hold accountable those who support Vladimir Putin’s unwarranted invasion of another sovereign nation,” said U.S. Attorney Matthew M. Graves of the District of Columbia. “We will continue to use every tool to enforce the sanctions aimed at Putin’s regime and the oligarchs who support it. Working with our federal and international partners, we will be unflagging in our efforts to bring to justice those who violate these sanctions, and to seize assets where appropriate and lawful.”
“Today’s seizure of Viktor Vekselberg’s yacht, the Tango, in Spain is the result of an unprecedented multinational effort to enforce U.S. sanctions targeting those elites who have enabled Russia’s unprovoked and illegal invasion of Ukraine,” said Director Andrew Adams of Task Force KleptoCapture. “For those who have tied their fortunes to a brutal and lawless regime, today’s action is a message that those nations dedicated to the rule of law are equally dedicated to separating the oligarchs from their tainted luxuries. This seizure is only the beginning of the Task Force’s work in this global effort to punish those who have and continue to support tyranny for financial gain.”
“The FBI will continue to work with its partners to protect the integrity of the banking system and support the enforcement of sanctions programs,” said Special Agent in Charge Michael F. Paul of the FBI’s Minneapolis Field Office. “FBI agents and analysts, regardless of where they are assigned around the world, will work tirelessly to ensure those who attempt to evade sanctions are held accountable.”
“The Russian invasion of Ukraine was an unprovoked act of aggression that has targeted the lives and well-being of millions of people and threatened international security,” said Acting Special Agent in Charge Ricky J. Patel of Homeland Security Investigations (HSI) New York. “For decades, the Putin regime has been supported by a group of Russian oligarchs that abused their power for private gain to amass untold riches. As DHS’s investigative arm, HSI stands at the forefront of combatting global networks that seek to violate U.S. law and exploit our nation’s financial systems. Working with our partners at the U.S. Department of Justice and the FBI, we will hold Putin’s oligarchs accountable and deny them the lavish lifestyles they cherish.”
Upon receipt of a request from the United States pursuant to a bi-lateral treaty for mutual legal assistance in criminal matters, the Spanish central authority for mutual legal assistance forwarded the request to a Spanish prosecutor, who obtained a freezing order from a Spanish court. The order was executed by Spain’s Guardia Civil, Spanish National Police, today, April 4.
The Tango, International Maritime Organization number 1010703, is believed to be worth approximately $90 million or more. The yacht is now in Palma de Mallorca.
The burden to prove forfeitability in a forfeiture proceeding is upon the government.
Separately, seizure warrants obtained in the U.S. District Court for the District of Columbia target approximately $625,000 associated with sanctioned parties held at nine U.S. financial institutions. Those seizures are based on sanctions violations by several Russian specially designated nationals.
The matter of the Tango is being investigated by the FBI’s Minneapolis Field Office with assistance from the HSI New York Field Office. In announcing that forfeiture action, U.S. Attorney Graves, Special Agent in Charge Paul, and Acting Special Agent in Charge Patel commended the work of those who investigated the case from FBI and HSI.
Assistant U.S. Attorney Karen P. Seifert is handling the seizure and investigation, with assistance from Paralegal Specialist Brian Rickers and Legal Assistant Jessica McCormick, all from the U.S. Attorney’s Office for the District of Columbia. The Justice Department’s Office of International Affairs provided significant assistance in working with the Spanish authorities, as well as the Criminal Division's Money Laundering and Asset Recovery Section (MLARS).
2 April 2022
Thornton Man Sentenced to 72 Months for Bank RobberyRead the Press Release
DENVER – The U.S. Attorney’s Office for the District of Colorado announces that Brandon Lee Schneider, age 35, of Thornton, Colorado, was sentenced on April 1, 2022, to 72 months in federal prison for his role in robbing a bank. According to the plea agreement, in September 2020, the defendant drove to Bank of the West in Thornton to rob the bank. The defendant wrote a note that read “No dye packs, No tracers, No games, Put all the money in the drawer to me now Thx.” The defendant gave the note to his associate, who subsequently entered the bank and approached the teller. The plea agreement also referenced four other bank robberies that the government contends were committed by the defendant and his associates.
“Bank robbery is part of a violent crime problem here in the Denver metro area,” said U.S. Attorney Cole Finegan. “Our office is committed to making Colorado safer and we will enforce the law by prosecuting these and other violent crimes together with our law enforcement partners, including our colleagues in District Attorney’s offices.”
“Robbing a bank is a federal felony, no matter whether the crime in perpetrated with a weapon, a note, or just a verbal threat,” said Michael Schneider, Special Agent in Charge for the FBI Denver Field Office. “We are committed to bringing federal investigative resources to solve these crimes and bring perpetrators to justice with our law enforcement partners.”
In Denver, bank robberies are investigated by the Rocky Mountain Safe Streets Task Force and prosecuted by the United States Attorney’s Office, as well as District Attorneys. At the federal level, bank robbery is punishable with up to 20 years in prison for each offense. The potential punishment increases if a dangerous weapon is used in the commission of the crime. Over the past year, the FBI and the U.S. Attorney’s Office have handled a number of metro area bank robbery matters, including the following:
- August 17, 2021 -- David Doering was sentenced to 140 months in prison and three years of supervised release for his role robbing two banks while on supervised release. (20-cr-156-DDD)
- January 28, 2022 -- Paul Hernandez was sentenced to 171 months in federal prison for robbing three banks in the Denver metro area while on bond for robbery charges. (20-cr-339-WJM)
- April 1, 2022 – Brandon Lee Schneider was sentenced to 72 months in federal prison. (21-cr-11-PAB).
- April 14, 2022 -- Patrick James Murray is scheduled to be sentenced for committing three bank robberies in Lakewood and Arvada by handing a threatening note to a teller and demanding cash. The defendant pleaded guilty to all three robberies in December 2021. (21-cr-58-RBJ)
- April 20, 2022 -- Daniel Shaw is scheduled to be sentenced for committing four bank robberies and one carjacking in the Denver and Colorado Springs areas. Shaw pleaded guilty in December 2021. (21-cr-109-DDD)
- June 1, 2022 -- Jared Fitzgerald is scheduled to be sentenced for committing four bank robberies in Denver and Pueblo while on supervised release after serving a term of imprisonment for bank robbery. Fitzgerald pleaded guilty in December 2021. (21-cr-274-CMA)
- December 8 2021 -- Benjamin Whalen and William Foust were indicted for multiple counts of bank robbery. Foust is indicted for allegedly robbing 14 banks, and Whalen is indicted for allegedly robbing 3 banks. Both are detained and pending trial. (21-cr-00410-WJM)
- November 16, 2021 – Joel Knerl was indicted for allegedly robbing ten banks in October and November of last year. He is detained pending trial. (21-cr-385-DDD)
- July 13, 2021 -- Jerome Bravo was indicted on ten counts of bank robbery and three counts of using a firearm in furtherance of a crime of violence for allegedly committing ten bank robberies in the Denver metro area. He is detained and pending trial. (21-cr-226-DDD)
If anyone has any information about a bank robbery, please call the FBI Rocky Mountain Safe Streets Task Force at 303-629-7171; or, you may remain anonymous by calling CRIMESTOPPERS at 720-913-STOP (7867).
Indictments are allegations and defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Case 21-cr-0011 was handled by Assistant United States Attorney Thomas Minser. The Westminster Police Department, the Denver Police Department, the Thornton Police Department, and the Rocky Mountain Safe Streets Task Force assisted in that investigation. All other matters referenced herein are being handled by Assistant United States Attorney Brian Dunn, and were investigated by the Rocky Mountain Safe Streets Task Force.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Rapid City Man Sentenced to Federal Prison for Illegal Possession of FirearmRead the Press Release
United States Attorney Dennis R. Holmes announced that a Rapid City, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person was sentenced on March 28, 2022, by Judge Jeffrey L. Viken, U.S. District Court.
Harold Dooley, age 32, was sentenced to four years in federal prison, followed by three years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Dooley was indicted by a federal grand jury on December 17, 2019, and pleaded guilty on October 15, 2021. The conviction stems from Dooley, a previously convicted felon who is prohibited from possessing firearms, illegally possessing a Phoenix Arms, model HP22A, .22 caliber semi-automatic pistol, which was found after Dooley came into contact with law enforcement in November 2019 in Rapid City.
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.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Rapid City Police Department. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Dooley was immediately remanded to the custody of the U.S. Marshals Service.
Rapid City Man Found Guilty of Illegal Possession of a FirearmRead the Press Release
United States Attorney Dennis R. Holmes announced that a Rapid City, South Dakota, man was convicted of Illegal Possession of a Firearm following a two-day federal jury trial held in Rapid City. The guilty verdict was returned on March 30, 2022.
Montgomery Lebeau, age 42, was charged with Possession of a Firearm by a Prohibited Person. The conviction stems from Lebeau, a previously convicted felon who is prohibited from possessing firearms, knowingly possessing a Hi-Point, model JCP, .40 Smith & Wesson caliber, semi-automatic pistol, which was found after Lebeau came into contact with law enforcement in October 2021 in Rapid City.
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.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Rapid City Police Department. Assistant U.S. Attorney Benjamin Patterson prosecuted the case. A sentencing date has not been set.
1 April 2022
“M30 King of Fresno” and 17 Members of His Drug Trafficking Ring Charged with Federal Offenses Following Investigation into a String of OverdosesRead the Press Release
FRESNO, Calif. — U.S. Attorney Phillip A. Talbert and Homeland Security Investigations Special Agent in Charge Tatum King announced the results of an investigation into fentanyl-related overdoses in the Fresno area, which resulted in charges against of a total of 18 drug traffickers, charging them with trafficking fentanyl powder, fentanyl pills, cocaine, and methamphetamine.
“Many of the deaths and near deaths in drug overdoses are caused by counterfeit pills that look like prescription pills, but are not and actually contain fentanyl. The user may be unaware that the pills contain fentanyl and can be deadly,” said U.S. Attorney Talbert. “The charges announced today and the seizure of illicit drugs demonstrate our combined commitment to prevent the flow of these dangerous drugs into our communities.”
“Our agents work night and day to keep Fresno free from drugs like fentanyl that poison our children,” said Tatum King, special agent in charge, HSI San Francisco. “Today’s announcement of charges against 18 individuals involved in manufacturing and distributing this dangerous drug highlights HSI’s commitment our investigators have in partnership with prosecutors from the United States Attorney’s Office and local, state, and federal law enforcement to keep our community safe.”
The defendants are:
Horacio Torrecillas Urias Jr., of Fresno;
Amadeo Sarabia Jr., of Fresno;
Justin Dwayne Riddle, of Las Cruces, New Mexico;
Alma Garza, of Fresno;
Juan Valencia Jr., of Fresno;
Abel Lozano, of Sanger;
Henry Cox, of Sanger;
Alejandro Guzman, of Fresno;
Erica Ramirez, of Fresno;
Brayan Cruz, of Fresno;
Jacob Valles, of Fresno;
Cody Fyfe, of Fresno;
Christian Harris-Blanchette, of Fresno;
Marvin Carreno, of Fresno;
Victor Yair Torrecillas-Urias, of Fresno;
Oscar Jaramillo-Cortez, of Fresno;
Alex Garcia, of Fresno; and
Agustin Hernandez.
According to court documents, the investigation began after a series of fentanyl-pill overdoses in the Fresno area. These overdoses were caused by counterfeit oxycodone M30 tablets containing fentanyl, referred to on the street as M30s. Similar to authentic oxycodone M30 tablets, they are small, round, and light blue or green in color with “M” stamped on one side and “30” on the other. The investigation, dubbed “Operation Killer High,” aimed to search for the drug dealers believed to have supplied the toxic pills that caused the recent spike in fentanyl-related overdoses. The operation uncovered a large drug-trafficking ring led by Horacio Torrecillas Urias Jr., the self-proclaimed “M30 king of Fresno.”
According to the criminal complaint, Torrecillas Urias Jr. was obtaining, directly from sources in Mexico, tens of thousands of counterfeit M30 fentanyl pills and large quantities of fentanyl powder, cocaine and methamphetamine. He and his co-defendants were then distributing these illicit narcotics to drug dealers inside and outside of California. During the investigation, federal, state, and local law enforcement agents conducted traffic stops, intercepted packages, and executed residential search warrants that resulted in the recovery of over 55,000 M30 fentanyl pills, 6 pounds of fentanyl powder, 10 pounds of methamphetamine, a pound of cocaine, 25 firearms, and hundreds of rounds of ammunition..
“It is DEA’s mission to keep American communities healthy and safe. Our work is more important than ever as every fentanyl seizure represents potential lives saved,” said DEA Special Agent in Charge Wade R. Shannon. “In collaboration with our law enforcement counterparts we will continue to hold accountable those organizations who are poisoning our community with these deadly drugs.”
Inspector in Charge Rafael Nuñez of the U.S. Postal Inspection Service, San Francisco Division said: “Protecting postal customers and employees from harmful material delivered in the mail is the highest priority of the United States Postal Inspection Service. Controlled substances are dangerous to anyone who receives them and to the postal workers who handle those parcels while doing their jobs. Postal Inspectors are proud to have a part in this team effort to shut down a drug distribution operation and bring those responsible to justice.”
“The Fresno Police Department is proud to have participated in ‘Operation Killer High,’” said Fresno Police Chief Paco Balderrama. “Fentanyl is a true danger, not just to our community, not just to our state, but to our nation. It was fentanyl overdoses that led to the development of the Fentanyl Overdose Resolution Team (FORT) here in Fresno. Last year alone, they responded to 84 overdoses, with 34 of them resulting in death. ‘Operation Killer High’ has culminated in 19 drug trafficking suspects being charged with federal offenses. These suspects, one of whom touts himself as the ‘M30 king of Fresno,’ are responsible for spreading fentanyl and other drugs throughout our city. We are happy to be standing side by side with our federal, state and local law enforcement partners as we hold these criminals accountable for their actions.”
The case was the result of an investigation by the Fentanyl Overdose Response Team (FORT) (a multi-agency team composed of Homeland Security Investigations, the Drug Enforcement Administration, and the Fresno Police Department) the U.S. Postal Inspection Service, the Clovis Police Department, the Fresno County Sheriff’s Office, and the Fresno County District Attorney’s Office. The Bakersfield Police Department and the California Highway Patrol assisted in the case. Assistant U.S. Attorneys Justin J. Gilio and Laurel J. Montoya are prosecuting the case.
This case is part of Operation Synthetic Opioid Surge (S.O.S.) a program designed to reduce the supply of deadly synthetic opioids in high impact areas as well as identifying wholesale distribution networks and international and domestic suppliers. In July 2018, the Justice Department announced the creation of S.O.S., which is being implemented in the Eastern District of California and nine other federal districts.
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 www.justice.gov/OCDETF.
If convicted, the defendants each face a statutory penalty range a minimum of 10 years and a maximum of life in prison and fines up to $1 million to $10 million. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Woodbridge Resident Who Embezzled from Family Company Sentenced to Prison for Tax EvasionRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, announced that MATTHEW V. BLACKWELL, 41, of Woodbridge, was sentenced today by U.S. District Judge Sarah A.L. Merriam in New Haven to 21 months of imprisonment, followed by two years of supervised release, for tax evasion. Judge Merriam also ordered Blackwell to pay a $10,000 fine and to perform 120 hours of community service while on supervised release.
According to court documents and statements made in court, Blackwell was the Vice President of Operations at a family-owned food company based in Orange. Between approximately 2012 and 2016, Blackwell embezzled $927,143 from the company by creating false purchase orders and invoices that he presented to the company controller, who had no knowledge of their fraudulent nature. The company issued payment checks that Blackwell deposited in a business checking account that he had opened and controlled. Blackwell then transferred these funds to his personal bank accounts.
Blackwell filed federal income tax returns that omitted the embezzled income for the 2012 through 2016 tax years, resulting in a tax loss of $285,361 to the IRS. Blackwell has paid his back taxes, but he still owes interest and penalties.
On December 9, 2021, Blackwell pleaded guilty to one count of tax evasion.
Blackwell, who is released on bond, is required to report to prison on May 5.
This case was investigated by the Internal Revenue Service – Criminal Investigation Division and was prosecuted by Assistant U.S. Attorney Hal Chen.
Wilkes-Barre Men Sentenced for Fentanyl TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that United States District Court Judge Robert D. Mariani sentenced James Garris, Jr., age 52, to 14 years’ imprisonment, and Emilio Tejeda, age 33, to 57 months’ imprisonment, for fentanyl trafficking offenses. Both men were residents of Wilkes-Barre, Pennsylvania, prior to being incarcerated on the instant offenses.
According to United States Attorney John C. Gurganus, James Garris, Jr. previously pleaded guilty to distributing fentanyl that resulted in death. On September 19, 2019, Garris distributed fentanyl to James Tindol, Jr., who subsequently distributed the fentanyl to an individual identified as A.V. Shortly after ingesting the fentanyl, A.V. overdosed and died. Garris served as a drug dealer in a drug trafficking organization run by brothers Edwin Tejeda and Jose Raymer Tejeda.
Emilio Tejeda, a third brother, served as a courier in the drug trafficking organization. Emilio Tejeda previously pleaded guilty to conspiring to distribute between 400 grams and 1.2 kilograms of fentanyl, which is the equivalent of approximately 200,000 to 600,000 potentially lethal individual doses of fentanyl. Emilio Tejeda also forfeited a firearm and ammunition that were seized during the investigation.
In addition to James Garris, Jr. and Emilio Tejeda, five other Luzerne County men have been charged and convicted in the broader investigation, for various fentanyl, cocaine, and tramadol trafficking offenses, including fentanyl trafficking that resulted in death:
- James Tindol, Jr., age 38, of Nanticoke, Pennsylvania, was sentenced to 120 months of imprisonment after pleading guilty to distributing fentanyl that resulted in death;
- Edwin Tejeda, age 31, formerly of Wilkes-Barre, Pennsylvania and the Dominican Republic, pleaded guilty to conspiring to distribute cocaine and fentanyl, which resulted in death, and awaits sentencing;
- Jose Raymer Tejeda, age 37, formerly of Wilkes-Barre, Pennsylvania, pleaded guilty to conspiring to distribute cocaine and fentanyl, which resulted in death, and awaits sentencing;
- Kearon Brinson, age 41, formerly of West Nanticoke, Pennsylvania, pleaded guilty to conspiring to distribute fentanyl and marijuana, and awaits sentencing; and
- Lamont Hubbard, age 50, formerly of Plymouth, Pennsylvania, pleaded guilty to conspiring to distribute fentanyl and marijuana, and awaits sentencing.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Luzerne Country Drug Task Force, and the Kingston Police Department. Assistant U.S. Attorney Phillip J. Caraballo 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.
This case also was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Utah Doctor Pleads Guilty, Banned from Denali for Five Years and to Pay $10,000 PenaltyRead the Press Release
FAIRBANKS – A Utah doctor was sentenced by U.S. Magistrate Judge Scott A. Oravec to a five-year ban from climbing Denali and will pay $10,000 after pleading guilty to violating a lawful order during an accident investigation of the defendant’s climbing partner who fell more than 1,000 feet from the top of Denali Pass. In issuing the sentence, Judge Oravec noted the seriousness of the case given the extremely dangerous environment in which the defendant impeded the investigation.
According to court documents, Dr. Jason Lance, 48, of Mountain Green, Utah, was attempting to summit Denali via the West Buttress route with a new climbing partner, A.R., on May 24, 2021. Between 18,600 and 19,200 feet A.R. became ill, causing Dr. Lance to leave A.R. with a separate climbing team while he proceeded to make a solo summit attempt, taking A.R.’s Garmin inReach satellite communication device with him.
Shortly after Dr. Lance rejoined A.R. and others, A.R. fell un-roped from the top of Denali Pass tumbling more than 1,000 feet down a steep snow and ice slope. Multiple teams reported the fall and Denali National Park’s high-altitude helicopter quickly mobilized for an evacuation, extracting A.R. from the mountain in less than 30 minutes and transporting him for life saving medical care. During testimony, Denali Mountaineering Ranger and Law Enforcement Officer Chris Erickson noted that A.R. was one of the most significant rescues in the park’s history.
After A.R.’s rescue, witnesses testified that Dr. Lance used A.R.’s inReach device to message the National Park Service, first claiming they did not have proper equipment to descend and then misleadingly claiming that two other climbers were suffering from shock in an attempt to secure a helicopter extraction at the top of Denali Pass. One of those climbers, Grant Wilson, testified that he and the other climber were at no time suffering from medical shock, as Dr. Lance’s inReach message misleadingly implied. Dr. Lance continued to dispute this allegation. During testimony Mountaineering Ranger Erickson noted that Denali Pass is an extremely dangerous place for a helicopter rescue for both the climbers and the rescuers due to the high winds that funnel directly through the Pass. Ultimately, the two other climbers convinced Dr. Lance to descend under his own power, and the three made it down safely to the 17,200 ft high camp.
Upon returning to 14,200 ft camp, Mountaineering Ranger Erickson instructed Dr. Lance to turn over A.R.’s inReach device so the National Park Service could return it to A.R. or his family. Dr. Lance initially refused to return the device and proceeded to engage in actions that led the Ranger to believe Dr. Lance was deleting messages from the device. Subsequent investigation revealed that multiple messages had been deleted from the inReach device, including a message in which Dr. Lance requested a helicopter rescue from a different rescue agency for different reasons than those he cited to the National Park Service.
In November 2021, Dr. Lance was charged with three misdemeanors: interfering with a rescue operation, violating a lawful order and making a false report. Earlier this month he pleaded guilty to the charge of violating a lawful order. In addition to the $5,000 fine and a 5-year ban from climbing Denali, the court ordered Dr. Lance to make a $5,000 donation to the Denali Rescue Volunteers https://www.denalirescue.org/take-action. Both Erickson and Wilson testified that Lance’s conduct on the mountain was extremely dangerous and that the 5-year climbing ban was warranted.
“Impeding the investigation of a near-fatal accident and attempting to secure helicopter rescue under misleading premises evinces a selfishness and indifference to the scarcity of public safety and rescue resources that is unacceptable anywhere, let alone on the tallest peak in North America,” said U.S. Attorney John E. Kuhn, Jr. of the District of Alaska. “The U.S. Attorney’s Office has the important duty of prosecuting crimes and wrongdoings that occur in the 6.1 million acre Denali National Park & Preserve. As this case demonstrates, we and our law enforcement partners take that duty seriously, and we will pursue those crimes at whatever altitude they occur.”
“Rescue on Denali is inherently dangerous for both rescuers and those being rescued,” said Brooke Merrell, acting superintendent for Denali National Park and Preserve. “Any rescue above 14,000 feet is a serious endeavor and should not be taken lightly or be expected. I would like to recognize and thank the Denali mountaineering rangers for the quick response and skillful rescue that saved a life related to this case last May. We are also grateful for the dedicated work of the Assistant U.S. Attorney's office that brought this case to a successful conclusion."
The National Park Service reminds visitors to select hikes and routes that are within their ability and comfort levels. Park visitors should plan, prepare and ask appropriate questions to ensure a successful experience. Denali, located in interior Alaska about 245 miles north of Anchorage, is the highest mountain in North America, rising 20,310 feet above sea level in the heart of Denali National Park and Preserve. Approximately 1,000 climbers from around the world attempt to summit Denali each year, with the majority ascending the traditional West Buttress route.
The National Park Service is investigating the case.
Assistant U.S. Attorney Ryan Tansey is prosecuting the case.
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United States Files False Claims Act Suit Against General Medicine, P.C. and Related Entities for Medicare FraudRead the Press Release
East St. Louis, Ill. – The United States filed suit in U.S. District Court for the Southern
District of Illinois against General Medicine, P.C. (“General Medicine”), Thomas M. Prose, M.D. – the owner of General Medicine, and seventeen related corporate entities owned by Prose. In a
96-page complaint, the government alleges Defendants violated the False Claims Act in a widespread healthcare fraud scheme involving the submission of thousands of false claims to the Medicare program. Since 2016, Medicare has paid defendants over $40 million dollars.General Medicine and the other defendant companies owned by Prose are based in Novi, Michigan and employed physicians and nurse practitioners to treat patients in nursing homes and assisted living facilities in numerous states, including Illinois and Missouri. The government’s complaint alleges Defendants knowingly billed Medicare for visits with facility residents that were not medically necessary, did not meet the requirements of the billing codes, or were not performed at all. As alleged in the complaint, these visits resulted from General
Medicine directing their physicians and nurse practitioners to meet visit quotas and perform numerous patient visits and assessments each month without any consideration as to whether the patients needed the services. Defendants also allegedly submitted inflated claims to Medicare using billing codes for complex, comprehensive visits when the providers spent only minimal time with patients. On multiple occasions, Defendants allegedly completed progress notes containing inaccurate information or embellished portions of the notes to bill the visits using codes with higher reimbursement rates.“Vulnerable patients living in nursing homes and assisted living facilities should receive their medical care based on their medical needs, not needless visits manufactured to meet artificial corporate quotas,” said U.S. Attorney Steven D. Weinhoeft. “Billing Medicare for unnecessary and worthless services at inflated rates drains valuable taxpayer funding from the program and ultimately harms the patients who need it most. We will continue to work closely with our law enforcement partners to ensure federally funded healthcare programs are not abused.”
The investigation was a collaborative effort by the U.S. Attorney’s Office for the Southern
District of Illinois, the U.S. Department of Health and Human Services – Office of Inspector
General (HHS OIG), the Illinois State Police Medicaid Fraud Control Unit, the Federal Bureau of
Investigation, the U.S. Department of Labor – Office of Inspector General, the U.S.
Department of Labor – Employee Benefits Security Administration, the United States Postal
Inspection Service, and the Department of Defense Office of Inspector General. The investigation has already resulted in former General Medicine nurse practitioner
Jami Mayhew pleading guilty to healthcare fraud (see https://www.justice.gov/usao-sdil/pr/madison-county-nurse-pactitioner-pleads-guilty-healthcare-fraud) and the indictment of Phillip Greene, a former General Medicine physician, in September 2021.The United States is represented in the civil litigation by Assistant U.S. Attorneys Nathan Wyatt and Laura Barke.
The case is captioned United States v. General Medicine, P.C., et al., No. 22-cv-00651-SMY (S.D.
Ill.). The claims asserted in the complaint are allegations only, and there has been no determination of liability.Members of the public who believe they may have information related to this or any similar schemes involving healthcare fraud in nursing homes are encouraged to contact law enforcement by calling the HHS OIG fraud hotline at 1-800-HHS-TIPS (1-800-447-8477) or by going online at https://oig.hhs.gov/fraud/report-fraud/.
U.S. Attorney Sandra J. Hairston Appointed to Serve on Attorney General Merrick B. Garland’s Advisory CommitteeRead the Press Release
WASHINGTON – Attorney General Merrick B. Garland today announced the appointment of 12 U.S. Attorneys to serve on the Attorney General’s Advisory Committee of U.S. Attorneys (AGAC). Created in 1973, the AGAC advises the Attorney General on matters of policy, procedure, and management impacting the Offices of the U.S. Attorneys and elevates the voices of U.S. Attorneys in Department policies. The first meeting of the AGAC will take place later this spring.
The appointees include U.S. Attorney Damian Williams for the Southern District of New York; U.S. Attorney Cindy K. Chung for the Western District of Pennsylvania; U.S. Attorney Darcie McElwee for the District of Maine; U.S. Attorney Trini Ross for the Western District of New York; U.S. Attorney Sandra Hairston for the Middle District of North Carolina; U.S. Attorney Brandon Brown for the Western District of Louisiana; U.S. Attorney Dawn Ison for the Eastern District of Michigan; U.S. Attorney Gregory Harris for the Central District of Illinois; U.S. Attorney Andrew Luger for the District of Minnesota; U.S. Attorney Gary Restaino for the District of Arizona; U.S. Attorney Cole Finegan for the District of Colorado; and U.S. Attorney Matthew Graves for the District of Columbia. An appointee from a district within the jurisdiction of the Eleventh Circuit of the U.S. Court of Appeals will be announced at a later date, once the Senate has confirmed nominees.
U.S. Attorney Damian Williams will serve as the Chair of the AGAC, and U.S. Attorney Cindy Chung will serve as the Vice Chair.
“These United States Attorneys will represent the views of dedicated federal prosecutors across the country, and provide advice and insight into essential matters facing the Department,” said Attorney General Garland. “I look forward to working alongside them in carrying out the Department’s core priorities of upholding the rule of law, keeping our country safe, and protecting civil rights.”
“I am honored to be appointed to the AGAC,” said U.S. Attorney Hairston, “and I look forward to the opportunity to consult with Attorney General Garland and other Department of Justice officials on issues affecting the United States Attorney’s Offices and federal law enforcement.”
A brief bio on each appointee is below:
Damian Williams (Chair)
The Senate confirmed Damian Williams’ appointment as U.S. Attorney for the Southern District of New York in October 2021. Williams began his legal career as a law clerk to then-Judge Merrick Garland when he served in the U.S. Court of Appeals for the District of Columbia Circuit from 2007 to 2008. Williams then served as a law clerk for Justice John Paul Stevens of the U.S. Supreme Court from 2008 to 2009. From 2009 to 2012, he was a litigation associate at Paul, Weiss, Rifkind, Wharton & Garrison. From 2012 to 2021, he served as an Assistant U.S. Attorney in the U.S. Attorney’s Office for the Southern District of New York. In the role, he served as a chief of the securities and commodities fraud task force from 2018 to 2021. He received his Bachelor of Arts in economics from Harvard University in 2002, a Master of Philosophy in international relations from Emmanuel College at the University of Cambridge in 2003, and a Juris Doctor from Yale Law School in 2007, where he was also an editor of the Yale Law Journal.
Cindy K. Chung (Vice Chair)
The Senate confirmed Cindy K. Chung’s appointment as U.S. Attorney for the Western District of Pennsylvania in November 2021. In 2002 and 2003, Chung served as a law clerk for Judge Myron H. Thompson in the Middle District of Alabama. She then joined the New York County District Attorney’s Office in 2003, serving as an assistant district attorney until 2007 and as investigation counsel in the Official Corruption Unit from 2007 to 2009. From 2009 to 2014, Chung served as a trial attorney in the U.S. Department of Justice Civil Rights Division. She later joined the U.S. Attorney’s Office for the Western District of Pennsylvania, serving as deputy chief of the major crimes division. From 2014 to 2021, she served as an Assistant U.S. Attorney. Chung earned a Bachelor of Arts from Yale University in 1997 and a Juris Doctor from Columbia Law School in 2002.
Darcie McElwee
The Senate confirmed Darcie McElwee’s appointment as U.S. Attorney for the District of Maine in October 2021. McElwee began her legal career as an assistant district attorney for the Penobscot and Piscataquis counties in Maine from 1998 to 2002. Between 2005 and 2008, McElwee was an adjunct professor of advanced trial advocacy at the University of Maine School of Law. From 2002 to 2021, she served as an Assistant U.S. Attorney in the U.S. Attorney’s Office for the District of Maine. Since 2005, she has been the coordinator of Project Safe Neighborhoods. McElwee received her Bachelor of Arts from Bowdoin College in 1995 and her Juris Doctor from the University of Maine School of Law in 1998.
Trini Ross
The Senate confirmed Trini Ross’s appointment as U.S. Attorney for the Western District of New York in September 2021. Ross began her career as an appellate attorney for the New York Supreme Court. She was an associate at Hiscock & Barclay LLC before joining the Office of Professional Responsibility as assistant counsel. From 1995 to 2018, Ross served as an Assistant U.S. Attorney for the Western District of New York. She has also been an adjunct professor of law at Buffalo Law School. She has also served as director of the investigations for the National Science Foundation Office of Inspector General since 2018. Ross earned a Bachelor of Arts degree from the State University of New York at Fredonia in 1988, a Master of Arts from Rutgers University in 1990, and a Juris Doctor from the University at Buffalo Law School in 1992.
Sandra Hairston
The Senate confirmed Sandra Hairston as U.S. Attorney for the Middle District of North Carolina in November 2021. Hairston previously served as an assistant district attorney in Columbus County, North Carolina, from 1987 to 1989 and as a special assistant district attorney in Guilford County, North Carolina from 1989 to 1990. From 1994 to 1996, she served as Chief of the Criminal Division of the U.S. Attorney’s Office for the Eastern District of North Carolina before returning to the Middle District of North Carolina in 1996. She joined the U.S. Attorney’s Office for the Middle District of North Carolina in 1990 as an Assistant U.S. Attorney. Hairston previously held the position of First Assistant U.S. Attorney for the Middle District of North Carolina from 2014 to 2021. From March 1, 2021, until her Senate confirmation, she served as the Acting U.S. Attorney for the Middle District of North Carolina. Hairston received her Bachelor of Arts from the University of North Carolina at Charlotte in 1981 and her Juris Doctor from North Carolina Central University School of Law in 1987.
Brandon Brown
The Senate confirmed Brandon Brown as U.S. Attorney for the Western District of Louisiana in December 2021. From 2007 to 2012, Brown served as an assistant prosecuting attorney in the Ouachita Parish District Attorney’s Office. He was also an associate at Hammonds, Sills, Adkins & Guice LLP in Baton Rouge, Louisiana. Since 2012, he has served as an Assistant U.S. Attorney in the U.S. Attorney’s Office for the Western District of Louisiana. Brown earned a Bachelor of Arts in 2002 and a Master of Business Administration in 2004 from Louisiana Tech University, followed by a Juris Doctor in 2007 from the Southern University Law Center.
Dawn Ison
The Senate confirmed Dawn Ison as U.S. Attorney for the Eastern District of Michigan in December 2021. In 1989 and 1990, Ison was a prehearing attorney for the Michigan Court of Appeals. In 2002, Ison began serving as an Assistant U.S. Attorney in the U.S. Attorney’s Office for the Eastern District of Michigan. She also served as chief of the Drug Enforcement Task Force Unit. Ison earned a Bachelor of Arts from Spelman College and a Juris Doctor from the Wayne State University Law School.
Gregory Harris
The Senate confirmed Gregory Harris as U.S. Attorney for the Central District of Illinois in December 2021. Harris began his career as a lawyer for the Office of the State Appellate Defender in 1976 where he represented indigent criminal defendants on appeal. From 1979 to 1980, he served as legal counsel for the Illinois Governor’s Office of Manpower and
Human Development and later as a staff attorney for the Illinois Department of Commerce and Community Development. From 1980 to 1988, he served as an Assistant U.S. Attorney in the U.S Attorney’s Office for the Central District of Illinois. From 1988 to 2001, he was a lawyer for Giffin, Winning, Cohen & Bodewes in Springfield, Illinois. He later rejoined the Central District of Illinois in 2001, where he served as chief of the Criminal Division and Assistant U.S. Attorney. Harris was born in Washington, D.C. He earned a Bachelor of Arts degree from Howard University in 1971 and a Juris Doctor from the University of Illinois Chicago School of Law in 1976.
Andrew Luger
The Senate confirmed Andrew Luger as the U.S. Attorney for the District of Minnesota in March 2022. He previously served in that role during the Obama administration and briefly during the Trump administration from 2014 to 2017. Prior to his appointment, Luger was a partner in the Minneapolis office of Jones Day from 2017 – 2022. Luger has also served as an Assistant U.S. Attorney for the Eastern District of New York, from 1989 to 1992, and for the District of Minnesota from 1992 to 1995, where he prosecuted a wide variety of narcotics and violent crimes, as well as complex white collar frauds. In 1995, Luger joined the law firm of Greene Espel in Minneapolis, where he was a partner until 2014. Luger earned a Bachelor’s degree from Amherst College and a Juris Doctor from Georgetown University Law Center.
Gary Restaino
The Senate confirmed Gary Restaino as U.S. Attorney for the District of Arizona in November 2021. From 1991 to 1993, Restaino served in Paraguay with the Peace Corps. From 1996 to 1999, he provided legal services to seasonal farm workers as a lawyer with Community Legal Services. From 1999 to 2003, he served as a civil rights lawyer in the Arizona Attorney General's Office. He then served as a trial attorney in the Public Integrity Section of the U.S. Department of Justice’s Criminal Division. Restaino joined the U.S. Attorney's Office for the District of Arizona in 2003. He was nominated to serve as U.S. Attorney in October 2021. Restaino earned a Bachelor of Arts degree from Haverford College in 1990 and a Juris Doctor from the University of Virginia School of Law in 1996.
Cole Finegan
The Senate confirmed Cole Finegan as U.S. Attorney for the District of Colorado in November 2021. From 1991 to 1993, Finegan served both as Chief Legal Counsel and Director of Policy and Initiatives for Colorado Governor Roy Romer. From 1993 to 2003, Finegan was a partner for Brownstein Hyatt Farber Schreck’s Denver office. Finegan joined Hogan Lovells (then Hogan & Hartson) in 2007 as a partner. Finegan acted as an adviser to Governor Hickenlooper and U.S. Senator Michael Bennet. Finegan attended the University of Notre Dame from 1974 to 1978, earning a degree in English. Finegan earned a Juris Doctor from Georgetown University Law Center in 1986.
Matthew Graves
The Senate confirmed Matthew Graves as U.S. Attorney for the District of Columbia in October 2021. After graduating law school, Graves began his legal career as a law clerk for Judge Richard W. Roberts of the U.S. District Court for the District of Columbia. From 2002 to 2007, he was an associate at WilmerHale. From 2007 to 2016, Graves worked as an Assistant U.S. Attorney in the District of Columbia, where he served in the office’s
fraud and public corruption section, ultimately serving as the acting chief of the section. Since 2016, he has been a partner at DLA Piper. Graves earned a Bachelor of Arts degree from Washington and Lee University in 1998 and a Juris Doctor from Yale Law School in 2001.
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U.S. Attorney Rollins Announces Correctional Facilities Statewide to Maintain All Medications for Opioid Use DisorderRead the Press Release
BOSTON – The U.S. Attorney’s Office announced today that it has completed a review to ensure that state and county correctional facilities will maintain all medications used to treat Opioid Use Disorder (MOUD) for people already in treatment for Opioid Use Disorder (OUD) prior to entering a carceral facility’s custody, as required by the Americans with Disabilities Act.
As part of its review, the U.S. Attorney’s Office entered into a cooperative agreement with the Worcester County Sheriff’s Office, sent letters of resolution to the Massachusetts Department of Correction as well as the Plymouth, Barnstable, Bristol, Berkshire and Dukes County Sheriff’s Offices. The Essex and Suffolk County Sheriff’s Offices were sent closing letters after their correctional facilities began providing, or secured contracts with medical vendors to provide, all three forms of MOUD.
Additionally, it should be noted that the Franklin County Sheriff’s Office was the first correctional facility in the entire country to provide inmates access to all three FDA-approved forms of MOUD. The Hampden, Hampshire, Middlesex and Norfolk County Sheriff’s Offices were early adopters in providing inmates access to MOUD, doing so even before the U.S. Attorney’s Office began its review. Massachusetts also has one federal correctional facility, FMC Devens, which also provides access to all three forms of MOUD.
The U.S. Attorney’s Office would like to acknowledge the Worcester County Sheriff’s Office collaboration and partnership, marking the first agreement between the Department of Justice and a correctional facility regarding MOUD in the entire country. The Worcester, Plymouth and Dukes County Sherriff’s Offices have implemented plans to provide all three medications before the end of 2022 and, in the meantime, will either transfer inmates to facilities that can provide the needed medications, or will otherwise facilitate maintaining the needed medications. All remaining correctional facilities in Massachusetts now provide access to all three forms of MOUD.
“Medications are a vitally important weapon in battling the opioid crisis, and our carceral facilities are on the front lines in that raging battle,” said United States Attorney Rachael S. Rollins. “We commend the Sheriffs and the Massachusetts Department of Correction for working collaboratively with us. They collectively understood and welcomed the importance of this massive shift in thinking for corrections. I also want to specifically acknowledge the counties of Franklin, Hampden, Hampshire, Middlesex and Norfolk, for their early adoption of this crucial effort in our attempt to reduce opioid-related deaths. Their work, combined with our review and settlement distinguishes Massachusetts as one of the few states in the country in which every correctional facility at the state, local and federal level, is or will soon be, maintaining all forms of MOUD for inmates. This work saves lives. We are very grateful to our law enforcement partners running correctional facilities for their commitment and collaboration regarding providing the best treatment for the people in their custody and care.”
OUD is considered a disability under the ADA, which requires that jails and prisons maintain the medications of individuals in treatment for their OUD.
This review is part of an ongoing effort by the U.S. Attorney’s Office to eliminate discriminatory barriers to treatment for OUD. The Office has now entered into 15 settlement agreements and six letters of resolution to ensure ADA compliance arising from OUD treatment.
This matter was handled by Assistant U.S. Attorney Gregory Dorchak of Rollins’ Civil Rights Unit. The U.S. Attorney’s Office would like to acknowledge the Massachusetts Executive Office of Health and Human Services for their assistance.
The Civil Rights Unit of the U.S. Attorney’s Office was established in 2015 with the mission of enhancing federal civil rights enforcement. For more information on the Office’s civil rights efforts, please visit www.justice.gov/usao-ma/civil-rights.
U.S. Attorney & U.S. Postal Inspection Service Announce Result of Drug & Cash Trafficking InterdictionRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, and Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division, today announced the results of an interdiction related to the use of the U.S. Mail to ship drugs and drug proceeds.
During the first two weeks of March 2022, the U.S. Postal Inspection Service’s Narcotics and Bulk Cash Trafficking Task Force conducted an interdiction that resulted in the seizure of more than 30 suspicious parcels that had been shipped through the U.S. Mail to Connecticut. Court-authorized searches of the parcels revealed a total of approximately 24 kilograms of cocaine, 3.5 kilograms of fentanyl, 11 kilograms of marijuana, other drugs, and $420,000 in cash.
The U.S. Postal Inspection Service’s Narcotics and Bulk Cash Trafficking Task Force includes members from the U.S. Postal Inspection Service, the U.S. Postal Service – Office of the Inspector General, the Connecticut Army National Guard, and the Hartford, New Britain, Meriden and Town of Groton Police Departments.
“The Narcotics and Bulk Trafficking Task Force has been doing an extraordinary job identifying drug traffickers who use the mail, and then seizing large quantities of drugs shipped to Connecticut and cash mailed in return to drug suppliers,” said U.S. Attorney Boyle. “Our office will continue to work with investigators to secure search warrants for suspicious parcels to decrease the flow of deadly narcotics into Connecticut, and prosecute those involved. A large portion of the cash seized in these investigations will help fund future law enforcement efforts.”
“The U.S. Postal Inspection Service aims to identify, disrupt, and dismantle Drug Trafficking Organizations across the country,” said Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division. “Postal Inspectors accomplish this by focusing on illicit drug mailers and distribution rings, maintaining an aggressive drug parcel-detection program, and seeking prosecution of mailers and recipients of illegal drugs. Combatting illicit drugs in the mail is a top priority and we will continue to coordinate with our law enforcement partners as we prioritize our resources in areas with high levels of illicit drug activity.”
Citizens can report those who use the U.S. Mail to traffic illegal drugs by calling the U.S. Postal Inspection Service at 1-877-876-2455.
Two Lee County Men Indicted for Possessing and Selling Fraudulent Identification DocumentsRead the Press Release
Fort Myers, Florida –United States Attorney Roger B. Handberg announces the unsealing of indictments charging Daniel Aguilar-Roblero (40, Fort Myers) and Cornelio Perez Gonzalez Arellano (29, Fort Myers) with possessing counterfeit immigration documents and transferring false identification documents. If convicted on all counts, Aguilar-Roblero faces a maximum penalty of 50 years in federal prison and Gonzalez Arellano faces a maximum penalty of 25 years in federal prison.
According to the indictments and court proceedings held in their cases, Aguilar-Roblero and Gonzalez Arellano sold fraudulent Permanent Resident cards (also known as “Green Cards”) and fraudulent Social Security cards to undercover law enforcement officers, believing they were intended to be used by individuals unlawfully present in the United States. Neither Aguilar-Roblero nor Gonzalez Arellano are citizens or nationals of the United States, and both are subject to deportation and removal proceedings at the conclusion of their federal criminal cases.
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.
These cases were investigated by the Florida Department of Law Enforcement and Homeland Security Investigations. They will be prosecuted by Assistant United States Attorney Simon R. Eth.
Two Individuals Indicted and Arrested for Bank Fraud and Aggravated Identity TheftRead the Press Release
SAN JUAN, Puerto Rico – On March 31, 2022, a federal grand jury returned a 92-count indictment charging two individuals with conspiracy to commit bank fraud, bank fraud, aggravated identity theft, and money laundering. Today, FBI agents arrested both defendants without incident.
According to court documents, Carmelo Santiago-Santiago and Efraín Delgado-Rodríguez conspired and executed a scheme to commit bank fraud to obtain money held by Company A, an insurance company located in San Juan, Puerto Rico.
Carmelo Santiago-Santiago worked at Company A since 2016 as an accountant overseeing matters related to accounts’ reconciliation and closing journal entries. Efraín Delgado-Rodríguez was the President of Fast Contractors LLC, a general construction company in Puerto Rico.
The defendants created false and fraudulent checks using the check numbers of outstanding checks and voided checks originally issued to vendors and service providers of Company A. Using the check number and account number for Company A, the defendants changed the payee and made the false checks payable to Delgado-Rodríguez and Fast Contractors LLC. Once the false checks were deposited, funds were then shared with Santiago-Santiago. The fraudulent checks also contained the digital handwritten signature of Company A personnel without their knowledge or consent. The defendants’ conspiracy and scheme to defraud involved approximately $526,767 in actual loss.
“Financial fraud is one of the largest challenges facing American citizens and businesses today. Prevention and prosecution of crimes of this nature will remain a top priority for the U.S. Attorney’s Office.” said United States Attorney, W. Stephen Muldrow.
“This type of scheme is sadly a recurring one that we see far too often. My message to corporations is, prevention is the key and the FBI is here to help,” said Joseph González, Special Agent in Charge of FBI San Juan. “We have resources available to enhance awareness, as well empower your compliance teams so you can avoid becoming a victim. Call us to coordinate a presentation, and of course, if the worst happens, and you become a victim, call 787-987-6500.”
The defendants made their initial court appearance today before U.S. Magistrate Judge Marcos E. López of the U.S. District Court for the District of Puerto Rico. If convicted, they face a maximum penalty of 30 years in prison and a mandatory consecutive sentence of at least two years for the aggravated identity theft charges. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant U.S. Attorney Marie Christine Amy is prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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