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8 March 2022
Anchorage Man Sentenced to 13 Years for Sex Trafficking MinorsRead the Press Release
ANCHORAGE – A Lebanese national was sentenced today by Chief U.S. District Judge Sharon L. Gleason to 13 years in prison for sex trafficking minors.
According to court documents, Nicola William Mongo, 23, of Anchorage sex trafficked at least two minors ages 14 and 17 who did not have housing or support in Anchorage.
Beginning in 2019, Mongo and several other individuals required the victims to go on “dates” where they would perform sex acts for money. They made the victims advertise on websites for online escort services and Mongo provided protection and transportation to and from the “dates” collecting some of the money they received. The 17-year-old victim, who had development disabilities, was so manipulated that she believed Mongo was her boyfriend and would do anything for him. If the victims did not want to go on “dates,” Mongo became angry and at times would hit them in the face. He was often armed with a firearm when transporting the victims and would provide them with condoms and lubricant when taking them to the “dates.”
Mongo pleaded guilty to the charge of sex trafficking minors in February 2021 after being indicted on the charge in June 2020. Tristan Grant and Davon Smith were also involved in sex trafficking these minors and were previously sentenced.
“Using minors in a sex trafficking operation requires a horrifying degree of selfishness and indifference toward vulnerable victims,” said U.S. Attorney John E. Kuhn, Jr. of the District of Alaska. “It is among the most depraved crimes on the books, and we and our law enforcement partners will do everything we can to bring offenders like Mr. Mongo to justice.”
“The defendant preyed upon vulnerable youth in Alaska, and cruelly trafficked them for his own profit,” said Special Agent in Charge Antony Jung of the FBI Anchorage Field Office. “With a victim-centered approach, the FBI will continue working with our law enforcement partners and the U.S. Attorney’s Office to identify and hold human traffickers accountable.”
The FBI and the Anchorage Police Department investigated this case as part of the FBI’s Child Exploitation and Human Trafficking Task Force.
Assistant U.S. Attorney Michael Ebell prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices, Project Safe Childhood combines federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Abingdon Man Pleads Guilty to Bankruptcy FraudRead the Press Release
ABINGDON, Va. – An Abingdon man, who concealed bank accounts from a federal bankruptcy court during his Chapter 11 bankruptcy proceedings, pleaded guilty last week to one count of bankruptcy fraud.
Ronald Eugene Lefler, 67, of Abingdon, VA, is scheduled to be sentenced in May and faces up to five years in prison.
According to court documents, on September 20, 2015, Lefler filed for Chapter 11 bankruptcy in the Western District of Virginia and testified to the court that he had deposited all of his income into a debtor-in-possession bank account, a requirement under the bankruptcy proceedings.
Lefler admitted to making a false report to the bankruptcy court when, at the time of that testimony, he knew he had deposited large sums of money into his Eastman Credit Union business account and used that money to fund lifestyle expenses, including large withdrawals at the Harrah’s Cherokee Casino Resort in North Carolina.
U.S. Attorney Christopher R. Kavanaugh of the Western District of Virginia made the announcement.
Assistant U.S. Attorney Daniel J. Murphy is prosecuting the case.
Arapahoe Man Sentenced for Running Victims into a BonfireRead the Press Release
United States Attorney Bob Murray announced today that BRIAN LUKE WILLIAMS, 20, of Arapahoe Wyoming, appeared before Chief United States District Judge Scott W. Skavdahl for sentencing on February 17, 2022, on two counts of assault resulting in serious bodily injury. Williams was sentenced, on each count, to 3 years supervised probation with the first 6 months on home confinement and was ordered to pay restitution.
The charges stem from a March 13, 2021, incident where Williams was driving a truck in a reckless manner, while intoxicated, in a field at a bonfire party attended by several of Williams’ friends on the Wind River Reservation. Williams lost control of the truck and knocked the victims into the fire, severely burning them. Williams transported one of the victims to the Riverton, Wyoming emergency room. The other victim was transported to the emergency room by another person at the party. Williams remained at the hospital for several hours and called the victims’ family to report the incident.
The case was investigated by officers from the Bureau of Indian Affairs. Assistant United States Timothy W. Gist prosecuted the case.
Case number: 21-cr-00081-SWS
7 March 2022
Worcester Man Pleads Guilty to Cocaine, Firearms, Money Laundering and Tax Fraud ChargesRead the Press Release
BOSTON – A Worcester man pleaded guilty today in connection with cocaine trafficking, firearms, money laundering and fraudulent tax return charges.
William Hoey, 41, pleaded guilty to three counts of possession with intent to distribute cocaine and distribution of cocaine; two counts of possession with intent to distribute cocaine; one count of using and carrying a firearm during and in relation to, and possessing a firearm in furtherance of, a drug trafficking crime; two counts of money laundering; and three counts of filing a false and fraudulent tax return. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for June 27, 2022.
On three occasions between July 2019 and September 2019, Hoey sold over 348 grams of cocaine to a cooperating witness.
On Oct. 22, 2019, while travelling to meet with the cooperating witness for another cocaine deal he had arranged, Hoey was stopped by agents in his vehicle. A search of the vehicle resulted in the seizure of approximately 499.4 grams of cocaine as well as a 9 mm Ruger handgun containing seven live rounds of ammunition. Hoey admitted that he had the gun in case there was a problem during the cocaine deal. A subsequent search of Hoey’s residence resulted in the seizure of approximately 835.9 grams of cocaine from a safe, a Sig Sauer semi-automatic handgun loaded with eight rounds of ammunition, a black Beretta firearm with 10 rounds of ammunition, $4,450 in cash, cutting agents, a scale, weights, a money counter and several cellphones.
Hoey also attempted to conceal drug trafficking proceeds by moving money from his bank accounts into accounts held by someone else. On Oct. 25, 2019, Hoey caused TD Ameritrade to issue a check from his account in the amount of $80,400 payable to another person, that was then deposited into a recently opened Leominster Credit Union account in the other person’s name. And, on March 24, 2020, Hoey caused another check to be issued by TD Bank in the amount of $87,180 payable to the same individuals that was deposited into the Leominster Credit Union account. Hoey conducted these financial transactions knowing that the funds in both the TD Ameritrade and TD Bank accounts did in fact include funds from his drug trafficking activities.
Additionally, in 2017, 2018 and 2019, Hoey knowingly and willfully filed false and fraudulent tax returns by omitting his income from drug dealings in his tax filings for each year.
The charge of possession with intent to distribute cocaine and distribution of cocaine provides for a sentence of up to 20 years in prison, at least three years and up to a lifetime of supervised release and a fine of up to $1 million. The charge of using or carrying a firearm during and in relation to, or possessing a firearm in furtherance of drug trafficking, provides for a mandatory sentence of five years in prison, up to three years of supervised release and a fine of up to $250,000. The charge of money laundering provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $500,000. The charge of filing a false tax return provides for a sentence of up to three years in prison, up to three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Rachael S. Rollins; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; and Joleen D. Simpson, Special Agent in Charge of Internal Revenue Service-Criminal Investigations made the announcement today. Assistant U.S. Attorney John T. Mulcahy of Rollins’ Narcotics & Money Laundering Unit is prosecuting the case.
Wheeling woman admits to drug conspiracyRead the Press Release
WHEELING, WEST VIRGINIA – Samantha Frost, of Wheeling, West Virginia, has admitted to her involvement in a drug trafficking conspiracy, United States Attorney William Ihlenfeld announced.
Frost, age 38, pleaded guilty today to one count of "Aiding and Abetting the Distribution of Cocaine Hydrochloride within 1000 feet of a Protected Location.” Frost admitted to working with others to sell cocaine hydrochloride, also known as “coke,” near North Park Apartments in Ohio County in January 2020.
Frost faces at least one and up to 40 years of incarceration and a 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 Shawn M. Adkins is prosecuting the case on behalf of the government. The Ohio Valley Drug Task Force, a HIDTA-funded initiative, which includes the Drug Enforcement Administration, West Virginia State Police, the Ohio County Sheriff’s Office, and the Wheeling Police Department, investigated. The Belmont County Sheriff’s Office and the St. Clairsville Police Department assisted.
U.S. Magistrate Judge James P. Mazzone presided.
Wheeling man admits to drug chargeRead the Press Release
WHEELING, WEST VIRGINIA – Edgar Eugene Hatten, of Wheeling, West Virginia, has admitted to a drug charge, United States Attorney William Ihlenfeld announced.
Hatten, 41, pleaded guilty today to one count of “Distribution of Methamphetamine within 1,000 Feet of a Protected Location.” Hatten admitted to selling methamphetamine near Clator Playground in Wheeling on July 20, 2021.
Hatten faces at least one year and up to 40 years of incarceration and a 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 Shawn M. Adkins is prosecuting the case on behalf of the government. The Ohio Valley Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge James P. Mazzone presided.
Washington Parish Man Sentenced After Pleading Guilty to Violating the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – DEMARQUIEZ HARRIS (“D. HARRIS”), age 26, a resident of Bogalusa, Louisiana, was sentenced on March 3, 2022, by United States District Judge Wendy B. Vitter to 262 months’ imprisonment and 60 months of supervised release after pleading guilty to five counts of a twelve-count indictment charging him and two of his brothers with several narcotics offenses, announced U.S. Attorney Duane A. Evans. D. HARRIS pled guilty to counts 1, 4, 6, 7, and 8 of the indictment. The counts of conviction are as follows:
Count 1-Conspiracy to distribute and possess with intent to distribute five hundred (500) grams of a mixture or substance containing a detectable amount of methamphetamine;
Count 4-Distribution of fifty (50) grams or more of a mixture or substance containing a detectable amount of methamphetamine;
Count 6-Distribution of a quantity of cocaine base;
Count 7- Distribution of fifty (50) grams or more of a mixture or substance containing a detectable amount of methamphetamine; and
Count 8- Distribution of quantity of a mixture or substance containing a detectable amount of methamphetamine.
According to court documents, special agents with Bureau of Alcohol, Tobacco, Firearms, and Explosives identified D. HARRIS’s brother Trevion Harris as a methamphetamine trafficker in Bogalusa, Louisiana. Beginning in November of 2018 through May 1, 2019, special agents successfully purchased methamphetamine from Trevion Harris and his brothers, Jonzarrion and D. HARRIS, in amounts ranging from two (2) grams to as many as eight (8) ounces.
In addition to his terms of imprisonment and supervised release, D. HARRIS must pay a mandatory special assessment fee of $500.00.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Bogalusa Police Department as part of an extensive investigation of individuals suspected of trafficking large quantities of methamphetamine and/or firearms in the Bo0galusa area. The prosecution was handled by Assistant United States Attorney André Jones.
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Vallejo Man Sentenced to over 15 Years in Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
SACRAMENTO, Calif. — Lionel Ornelas, 62, of Vallejo, was sentenced today to 15 years and eight months in prison by U.S. District Judge Kimberly J. Mueller sentenced for conspiracy to distribute and to possess with intent to distribute methamphetamine.
According to court documents, between June 20, 2017, and Dec. 19, 2017, Ornelas conspired with Tony Acosta Alvarez, 29, to distribute and possess methamphetamine. Ornelas had previously been convicted of felony drug offenses in Solano County in 2007, 2008, 2012 and 2013. On July 26, 2019, Ornelas pleaded guilty and admitted that he was responsible for 1,068 grams of methamphetamine purchased during an undercover operation. In addition, on July 20, 2017, Ornelas sold a .380 handgun to the confidential informant.
On Sept. 24, 2019, Alvarez was sentenced to 10 years in prison.
This case was the product of an investigation by the Federal Bureau of Investigation and the Solano County Sheriff’s Office. Assistant U.S. Attorney Kelli L. Taylor prosecuted the case.
U.S. Attorney's Office Kicks Off National Consumer Protection WeekRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Dena J. King announced today that the U.S. Attorney’s Office is joining an array of government, non-profit and private organizations to raise public awareness about widespread and emerging scams during National Consumer Protection Week.
“National Consumer Protection Week is an opportunity to join forces with public and private agencies in amplifying the message against sinister scams and educating the public on how to identify scams and avoid falling prey to scammers,” said U.S. Attorney King. “The best way to protect yourself is to learn how to spot a scam and what to do if you are contacted by a scammer. We also encourage everyone to report suspected fraudulent schemes to help us track emerging scams and warn others.”
According to the Federal Trade Commission (FTC), in 2021, North Carolinians submitted more than 64,000 fraud reports totaling $93 million in losses, compared to $74 million in 2020. The top fraud categories reported involved imposters scams, online shopping, sweepstakes and lotteries, and internet services, among others.
Spotting the four signs of a scam can stop consumers from falling victims to one. The signs are:
- Fraudsters pretend to be affiliated with a widely known organization, like a government entity, a law enforcement agency, a utility company, or a charity.
- Scammers claim there is an imminent problem that requires immediate attention. For example, they claim you or a loved one are in legal or financial trouble, your computer has a virus, or your bank account has been locked.
- You are pressured to act immediately, including to pay a fine or settle a debt to avoid arrest, pay for computer tech repairs to restore your data, log into your account using a provided link, or pay a fee in order to receive lottery winnings.
- Scammers direct you to pay using a specific payment method, such as a gift card, a pre-paid debit card, a wire transfer, or an instant money transfer.
To avoid getting scammed consumers are encouraged to:
- Ignore unknown callers and block unwanted numbers and text messages.
- Do not open or respond to suspicious emails or click on suspicious links.
- Do not give personal or financial information such as name, date of birth, Social Security Number, bank account, or credit card number.
- Do not succumb to pressure tactics urging you to act immediately. Take your time to verify the source’s legitimacy and do your own research.
- Do not pay using an unusual payment method such as wire transfers, instant money transfers, internet currency, or gift cards, and do not use your bank account to cash a check mailed to you.
- If you think you’ve been contacted by a scammer talk to a trusted family member, a friend, or neighbor.
It is equally important that consumers do their part to help us identify existing or emerging scams and help warn others. If you are the victim of a scam or think you have been contacted by a scammer, report the fraud to your local law enforcement, and file a complaint with the Federal Trade Commission and the FBI’s Internet Crime Complaint Center at ic3.gov.
Visit NCWP for a list of events throughout the week and to obtain additional information on how to avoid scams.
Two Horry County Men Receive Multi-Year Sentences for Distributing Heroin and FentanylRead the Press Release
FLORENCE, SOUTH CAROLINA — Scorpio Teriell Tisdale, 28, of Gallivants Ferry, and Michael Keith McKenith, 32, of Aynor, were sentenced to 10 years and 7 years respectively after pleading guilty to conspiracy to possess with intent to distribute heroin and fentanyl.
Evidence presented to the Court showed that both men were involved in a multi-year conspiracy to distribute heroin and fentanyl in the Aynor area of South Carolina. Both Tisdale and McKenith served as middlemen in the drug trafficking, receiving heroin and fentanyl from sources of supply and distributing those drugs to others. During the course of the conspiracy, Tisdale was held accountable for nearly 15 kilograms of heroin and a quantity of fentanyl; McKenith was held accountable for 2.5 kilograms of heroin and a quantity of fentanyl.
Chief United States District Judge R. Bryan Harwell sentenced Tisdale to 120 months in federal prison, to be followed by a five-year term of court-ordered supervision. Judge Harwell sentenced McKenith to 84 months in federal prison, to be followed by a four-year term of court-ordered supervision. There is no parole in the federal system. Two additional co-conspirators have pled guilty in the case and will be sentenced at a later date.
The case was investigated by the Horry County Police Department and the Drug Enforcement Administration. Assistant U.S. Attorney Katherine Flynn prosecuted the case.
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Stanislaus County Man Sentenced to over 5 Years in Prison for Methamphetamine DistributionRead the Press Release
SACRAMENTO, Calif. — Juan Carlos Cortez-Gomez, 44, of Riverbank, was sentenced today by Chief United States District Judge Kimberly J. Mueller to 70 months in prison for possession with intent to distribute methamphetamine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Sept. 15, 2020, Cortez-Gomez agreed to sell methamphetamine to an FBI informant. When Cortez-Gomez arrived at the location for the sale, he was arrested by officers. A search of his truck revealed 10 pounds of methamphetamine. During a post-arrest statement, Cortez-Gomez admitted he knowingly possessed this methamphetamine and that he was planning to sell it.
This case was the product of an investigation by the FBI’s Solano County Violent Crimes Task Force, the California Highway Patrol, and the Stockton Police Department. Assistant U.S. Attorney Adrian T. Kinsella prosecuted the case.
This case was brought 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.
Sioux Falls Man Charged with Attempted Production of Child Pornography and Transfer of Obscene Materials to MinorsRead the Press Release
United States Attorney Dennis R. Holmes announced that a Sioux Falls, South Dakota, man has been indicted by a federal grand jury for Attempted Production of Child Pornography and Transfer of Obscene Materials to Minor.
Luke John Schauer, age 28, was indicted on March 1, 2022. He appeared before U.S. Magistrate Judge Veronica L. Duffy on March 4, 2022, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 30 years in federal prison and/or a $250,000 fine, life of supervised release, and up to $200 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between January 18, 2022, and February 4, 2022, Schauer attempted to employ, use, persuade, induce, entice, and coerce an OCE undercover agent posing as a 12-year-old female minor, to engage in sexually explicit conduct for the purpose of producing visual depictions of such conduct, knowing and having reason to know that such depictions would be transported in interstate or foreign commerce or mailed, and such depictions would be produced using materials that had been mailed, shipped, and transported in interstate and foreign commerce, including by computer.
The Indictment also alleges that during the same periods of time, Schauer knowingly used his cellular phone to transfer and attempt to transfer obscene materials to the same undercover agent posing as a 12-year-old child.
The charges are merely accusations and Schauer is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the South Dakota Division of Criminal Investigation, with cooperation from the Sioux Falls Police Department. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Schauer was released pending trial which has been scheduled for April 19, 2022.
San Diego Man Sentenced to 20 Years in Prison for Fentanyl Distribution Resulting in DeathRead the Press Release
Assistant U. S. Attorneys Larry Casper (619) 546-6734 and Shauna Prewitt (619) 546-7937
NEWS RELEASE SUMMARY – March 7, 2022
SAN DIEGO – Perry Edward Davis of San Diego was sentenced in federal court today to 20 years in prison for distributing the fentanyl that resulted in the death of Joshua Chambers, a 25-year-old husband and father of two young children from El Cajon.
Davis was convicted by a federal jury on October 7, 2021, after a trial before U.S. District Judge Larry A. Burns.
Chambers was one of three people who collapsed on December 21, 2019, at approximately 2:30 a.m., outside the QuarterDeck Cocktail Bar in El Cajon. Paramedics and first responders quickly identified the mass-collapse as an opioid overdose and administered Narcan – a medication designed to reverse the effects of an opioid overdose – to all three subjects. Two were revived and recovered, but Chambers never regained consciousness. He was declared deceased at approximately 3:39 a.m. The U.S. Attorney’s Office is releasing excerpts from a security video which was presented as evidence at Davis’ trial showing the victims collapsing.
VIEW VIDEOS
The investigation revealed that the three individuals had ingested what they believed was cocaine by snorting a “line” in Chambers’ vehicle shortly before each collapsed. Laboratory testing of a baggie found in the vehicle showed that it contained cocaine mixed with fentanyl; the evidence at trial showed that mixture was supplied by Davis shortly before it was used.
During sentencing, Judge Burns stated that the “effect fentanyl has is way worse, way more deadly, than other highly addictive and dangerous drugs that we see.” When addressing Davis, Judge Burns noted that, based on the trial evidence, “[i]t was clear to me that you were the purveyor” and that, “[b]ut for the intervention of first responders, we’d have three deaths rather than the one here.”
At today’s hearing, Assistant U.S. Attorney Larry Casper described the case as “truly tragic” and noted that neither Chambers nor the others knew the cocaine they were using was, in fact, laced with fentanyl. Casper explained that the case “should serve, in part, as a clarion call about the unsafe nature of illicit street drugs” and that “no controls on illicit drug suppliers or dealers can regulate what is actually being supplied.”
In a statement submitted to the court, Chambers’ wife said: “My husband was loved by so many. As a mother I suffer daily having to see my children miss their father. They are so young and they don't understand fully why their daddy had to go to heaven. It is so heartbreaking to see my children hurt and not be able to do anything to take it away and make it better. The biggest tragedy from all of this is that 2 innocent children have to grow up without a dad.”
Chambers’ mother noted that her son’s death “has left me numb for the rest of my life.”
Chambers’ wife and mother also expressed the hope that keeping Davis off the streets would save other lives.
“Today, a drug dealer has been held to account for the tragic death of Joshua Chambers,” said U.S. Attorney Randy Grossman. “A son, husband and father has left this world way too soon, and a devastated family will forever struggle with this senseless loss. The images of these victims collapsing is a very painful and unforgettable reminder of fentanyl’s powerful impact. Our efforts to prosecute those responsible for needless fentanyl-related deaths continues unabated.” Grossman thanked the prosecution team as well as the El Cajon Police Department, the Drug Enforcement Administration and agents from Narcotics Task Force Team 10, a multi-agency team that was created in July 2018 to address drug overdose deaths in San Diego, for their efforts on this case.
“This case is a dire reminder to the public that there are no safe recreational drugs. The DEA is now seeing fentanyl in a variety of recreational drugs in San Diego, to include stimulants,” said DEA Special Agent in Charge Shelly S. Howe. “In this case, the individuals thought they were using cocaine and it cost one of them - a young father of two - his life. If you are using drugs, please seek help with your addiction. It could save your life.”
For those who suffer from addiction, please know there is help. Call the Crisis line at 888-724-7240; it’s always open.
DEFENDANT Case Number 20-CR-2500-LAB
Perry Edward Davis Age: 46 San Diego, California
SUMMARY OF CHARGE TO WHICH GUILTY VERDICT RETURNED
Distribution of Fentanyl Resulting in Death – Title 21 U.S.C. Section 841(a)(1) and (b)(1)(C)
Maximum Penalty – Mandatory Minimum of 20 years and a maximum of life
INVESTIGATING AGENCIES
El Cajon Police Department
Narcotics Task Force Team 10
Romanian National, Part of ATM-Skimming Conspiracy, Sentenced to 30 Months in PrisonRead the Press Release
ROANOKE, Va. – A Romanian national, who traveled to the United States and participated in an ATM skimming conspiracy, was sentenced today to 30 months in prison.
Marius Catalui, 47, pleaded guilty in June 2021 to one count of access device fraud and one count of aggravated identity theft.
According to court documents, between December 2018 and May 2019, Catalui and others worked together to obtain personal identifying information, including debit and credit card numbers and PINs from bank customers without lawful authority and used that data to make unauthorized cash withdrawals from the victims for their personal gain.
The group utilized device-making equipment, commonly referred to as “skimming devices,” to facilitate this scheme by installing them into card readers on ATMs at federally-insured banks throughout the Western District of Virginia. In conjunction with small hidden cameras that they placed on the ATMs, Catalui’s group stole customers’ PINs and account numbers, re-encoded the information onto blank plastic cards, and then used those cards to withdraw over $300,000 before being apprehended.
In addition to over two years of prison time, Catalui was also ordered to pay $351,642 in restitution to the impacted banks.
U.S. Attorney Christopher R. Kavanaugh made the announcement today.
The United States Secret Service, the Botetourt County Sheriff’s Office, the Roanoke County Police Department, the Campbell County Police Department, the Henry County Sheriff’s Office, the Farmville Police Department, the Patrick County Sheriff’s Office, the Blacksburg Police Department, and the Lynchburg Police Department investigated the case.
Assistant U.S. Attorney Coleman Adams prosecuted the case.
Rockford Man Sentenced to More Than Nine Years in Federal Prison for Bank RobberyRead the Press Release
ROCKFORD — A Rockford man has been sentenced to nine and a half years in federal prison for bank robbery and attempted bank robbery.
LIONEL RUSSELL, 35, pleaded guilty last year to the attempted robbery of BMO Harris Bank, 228 S. Main St. in Rockford, and the robbery of Illinois Bank and Trust, 308 W. State St. in Rockford, both of which occurred on Jan. 27, 2020.
Russell admitted in a plea agreement that in the BMO Harris heist he presented a note to the teller demanding $20,000. While the teller was complying with the note, Russell took the note back and left the bank without any money. In the Illinois Bank and Trust robbery, Russell presented a note to the teller that stated, “I have a gun, I need everything out of the register.” Russell received $14,625 from the teller and left the bank.
Russell was arrested by the Warren County (Ind.) Sheriff’s Office on Feb. 3, 2020, after a traffic stop. At the time, Russell possessed in his car several bundles of cash that Russell admitted was stolen during the robbery of Illinois Bank and Trust.
U.S. District Judge Iain D. Johnston imposed the prison sentence Friday after a hearing in federal court in Rockford. Russell was also ordered ordered to pay restitution totaling $14,625.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. Substantial assistance was provided by the Rockford Police Department and the Warren County (Ind.) Sheriff’s Department. The government was represented by Assistant U.S. Attorney Robert S. Ladd.
Portland Area Identity Thief and Drug Trafficker Sentenced to Federal PrisonRead the Press Release
PORTLAND, Ore.—A Gresham, Oregon man was sentenced to federal prison today for stealing financial and identification documents from more than 100 people in and around Portland.
Robert Loren Finanders, 41, was sentenced to 74 months in federal prison and three years’ supervised release.
According to court documents, between April 2019 and April 2020, Finanders stole financial and identification documents from dozens of people in the Portland area with the intent to steal money from them and from local businesses. Finanders spent tens of thousands of dollars using stolen credit cards and other personal information. Some of the identity material recovered had been located in wallets and purses stolen from vehicles.
In late September 2019, the Portland Police Bureau’s (PPB) East Precinct Street Crimes Unit began investigating Finanders after finding a fraudulent Oregon driver’s license in the name of an adult victim during an arrest. The license had Finanders’ photo on it in place of the named victim. Investigators learned that around the same time, police officers in Bend, Oregon had arrested Finanders and a co-conspirator after receiving a report of a person using a stolen credit card at a local restaurant.
Bend police searched the vehicle driven by Finanders’ co-conspirator and found a passport, W2s, and a retail credit card matching the name of the victim whose stolen driver’s license was recovered by PPB. A search of Finanders’ Bend hotel room returned several additional W2s in the name of another victim and a victim profile notebook.
PPB officers linked Finanders to additional identity theft crimes in Portland, Gresham, and Lake Oswego, Oregon and, on January 22, 2020, executed a search warrant at his Gresham residence. Officers seized stolen profiles of more than 80 individuals; dozens of stolen and fraudulent identification and personal documents including passports, government-issued identification cards, and driver’s licenses; an embosser; a card reader; stolen mail; additional victim profile notebooks; three handguns; a dismantled AR-15; body armor; and evidence of drug trafficking.
On March 12, 2020, a federal grand jury in Portland returned a nine-count indictment charging Finanders and, on April 1, 2020, he was arrested by PPB. On August 19, 2021, Finanders pleaded guilty to unauthorized access device fraud, aggravated identity theft, illegally possessing a firearm as a convicted felon, and possessing with intent to distribute methamphetamine.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the PPB East Precinct Street Crimes Unit, Homeland Security Investigations (HSI), the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the U.S Postal Inspection Service (USPIS). It was prosecuted by the U.S. Attorney’s Office for the District of Oregon.
Pinedale man arraigned on charge of aggravated sexual abuseRead the Press Release
ALBUQUERQUE, N.M. – Sheldon Livingston, 22, of Pinedale, New Mexico, and an enrolled member of the Navajo Nation, was arraigned in federal court today on a charge of aggravated sexual abuse.
A federal grand jury indicted Livingston on Feb. 24. According to the indictment and other court records, during December 2020, Livingston allegedly engaged in a sexual act with a child who had not attained the age of 12. The assault allegedly took place in McKinley County, New Mexico, on the Navajo Nation.
An indictment is only an allegation. A defendant is considered innocent unless and until proven guilty. If convicted, Livingston faces a minimum of 30 years and up to life in prison.
The Gallup Resident Agency of the FBI Albuquerque Field Office investigated this case. Special Assistant United States Attorney Chelsea N. Van Deventer is prosecuting the case.
Philadelphia Man Charged After High-Speed Car and Foot Chase on I-76Read the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Naquor Berry, 28, of Philadelphia, PA, was arrested and charged by Indictment with possession of ammunition by a felon, possession of a controlled substance with the intent to distribute, and possession of a firearm in furtherance of a drug trafficking crime, all stemming from a dangerous high-speed incident which unfolded on the Schuylkill Expressway.
The Indictment alleges that on September 12, 2021, Philadelphia Police Department officers observed the defendant commit a traffic violation and attempted to pull him over. Berry fled in his vehicle, travelling on I-76 West toward the Roosevelt Boulevard exit. As the officers pursued him with lights on, the defendant began speeding and swerving in and out around other vehicles. Berry’s vehicle struck two vehicles and ultimately crashed into the median on I-76, rendering his vehicle immobile. The defendant then got out of the vehicle and fled from police on foot, jumping off the overpass onto Route 1 Northbound, an approximately 40-foot drop, injuring his leg. When officers searched the vehicle that Berry was driving, they recovered an AR-15 style rifle, commonly referred to as a ghost gun because there is no serial number, loaded with 10 rounds of .223 caliber ammunition, marijuana packaged for resale, and two sticks of dynamite.
“The defendant’s alleged actions, both the charged conduct and his potentially deadly escapades on the highway, presented a serious threat to the safety of our community,” said U.S. Attorney Williams. “This indictment should serve as an example to others who have previously been convicted of felony offenses and are considering carrying firearms, even untraceable firearms, that we will use every law enforcement tool at our disposal to find and stop you. If you choose to illegally carry a firearm, you are going to face serious federal charges.”
“ATF is committed to protecting the citizens of our community from dangerous people,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division. “The community is extremely lucky nobody was seriously injured as a result of the defendant’s alleged actions. We will continue to work with all our local, state, and federal partners to keep the people of the Commonwealth safe.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
If convicted, the defendant faces a maximum possible sentence of life in prison, a five-year period of supervised release, a $750,000 fine, and a $300 special assessment.
The case was investigated by Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Robert E. Eckert and Special Assistant United States Attorney Katherine A. McDermott.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pennsylvania Man Sentenced to Federal Prison for Bank Robbery in Eastern North CarolinaRead the Press Release
WILMINGTON, N.C. – A Harrisburg, Pennsylvania man was sentenced today to 40 months in prison and three years of supervised release for robbing a bank in Ayden, North Carolina. On December 7, 2021, Alexis Baez Morales, 40, pled guilty to the charges.
According to court documents and other information presented in court, Circe Nena Baez, Morales’s co-conspirator, entered the Southern Bank in Ayden on July 24, 2019, and handed a note to the bank teller demanding money. The note also threatened that that Baez’s children were being held hostage. The bank teller gave $2,494 to Baez who then left the bank. After leaving the bank, Baez met with Morales who was the get-away driver for the robbery. Law enforcement agents later verified that no children were held hostage as part of the robbery.
Baez and Morales also robbed three other banks in the same manner during July 2019. Those robberies occurred in Pennsylvania, Delaware, and Hamlet, North Carolina. The Federal Bureau of Investigation and local police departments were able to track Baez and Morales to Charlotte, North Carolina and arrested them.
Baez previously pled guilty to the bank robbery and was sentenced to 42 months in prison, followed by three years on supervised release.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Richard E. Myers II. The Federal Bureau of Investigation, the Ayden Police Department, the Hamlet Police Department, the Delaware State Police, the Carlisle Borough Police and the Charlotte Mecklenburg Police Department investigated the case and Assistant U.S. Attorneys Bryan Stephany and John Parris prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 4:20-cr-00072-M.
North Carolina Man Charged with Wire Fraud, Securities Fraud, and Money Laundering in Connection with Ponzi SchemeRead the Press Release
NEWARK, N.J. – A North Carolina man was charged today for defrauding at least 25 people by operating a Ponzi scheme, U.S. Attorney Philip R. Sellinger announced.
David Schamens, 64, of Greensboro, North Carolina, is charged by complaint with one count each of wire fraud, securities fraud and money laundering. He is scheduled to have his initial court appearance in Newark federal court on March 8, 2022.
According to the criminal complaint and statements made in court:
Starting in 2014, Schamens fraudulently solicited investments in various entities he controlled, including TD Trading LLC, TFG Trading LLC, TradeStream Analytics LTD, Tradedesk Financial Group Inc. and others, under the promise of annual rates of return of 12 percent to 30 percent. In 2019, Schamens began to solicit investment in Tradestream Algo Fund, an algorithm-based trading pool that he claimed to have developed. In each instance, Schamens directed investors to wire funds directly or to transfer portions of their Individual Retirement Accounts (IRAs) to bank accounts he controlled.
Once invested, Schamens often moved victim funds through several different bank accounts before he ultimately used the funds for some non-investment related purpose. Schamens took several steps to keep his customers’ trust, including: sending false account statements; posting false monthly account statements to his companies’ websites showing balances for trading accounts that did not exist; and sending false tax documents reporting earnings that did not exist.
Schamens allegedly misappropriated at least $6.8 million from at least 25 different individuals, using some of that money to repay earlier investors in the manner of a Ponzi scheme, and to pay for his personal expenses, including the purchase of a house, payments for a luxury car, and other personal expenses.
The count of wire fraud carries a maximum potential penalty of 20 years in prison and a fine of $250,000. The count of securities fraud carries a maximum potential penalty of 25 years in prison and a fine of $1 million. The count of money laundering carries a maximum potential penalty of 20 years in prison and a fine of $500,000.
U.S. Attorney Sellinger credited special agents of the Department of Homeland Security, Homeland Security Investigations, Newark Field Office, under the direction of Special Agent in Charge Jason J. Molina, with the investigation leading to the charges. He also thanked the U.S. Securities Exchange Commission’s Division of Enforcement, under the direction of Director Gurbir S. Grewal, for its role in the investigation.
The government is represented by Assistant U.S. Attorneys Sophie E. Reiter and Anthony Torntore of the U.S. Attorney’s Office’s Cyber Crime Unit.
The charges and allegations in the complaint are merely accusations, and he is presumed innocent unless and until proven guilty.
Nigerian National Sentenced to Prison for Role in Romance Fraud SchemeRead the Press Release
HUNTINGTON, W.Va. – Augustine Amechi, 24, a Nigerian national, was sentenced today to one year and a day in federal prison for receipt of stolen money. Amechi pleaded guilty to the charge in November 2021 and as part of his plea agreement agreed to pay at least $192,762.19 in restitution.
According to court documents and statements, Amechi was involved from at least 2018 to March 11, 2021 with others in a fraud scheme that took place in Huntington and elsewhere. Amechi lived in Huntington and attended Marshall University during his involvement in the fraud scheme. Amechi admitted that romance fraud victims were convinced to send money for a variety of false and fraudulent reasons to bank accounts controlled by him in Cabell County. The money received by Amechi was sent through bank wire transfers, Western Union, MoneyGram, money orders and cashier’s checks. Amechi admitted to receiving approximately $108,601.92 directly deposited into his bank accounts from victims, over $150,000 in cash mailed in packages to his Huntington residence and over $140,000 in deposits from Zelle. Amechi further admitted that he obtained stolen money from at least 37 different fraud victims, and after he received the money, he would keep some of it for himself and forward some of the stolen money to others. Amechi transferred more than $15,000 to bank accounts in Nigeria.
United States Attorney Will Thompson made the announcement and commended the investigative work of the United States Secret Service, the United States Postal Inspection Service, the Federal Deposit Insurance Corporation-Office of Inspector General (FDIC-OIG), the West Virginia State Police, and the South Charleston Police Department.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorneys R. Gregory McVey and Kathleen Robeson handled the prosecution.
The public is encouraged to report potential online fraud activity or scams at https://www.ic3.gov/.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim, and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed 10am-6pm Eastern Time, Monday-Friday. English, Spanish, and other languages are available.
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-0069
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New York Man Sentenced to Three Years of Probation for Passing Altered Postal Money Orders and TheftRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that ANTOINE MERCHANT, age 33, of New York, New York, was sentenced on March 3, 2022 by U.S. District Court Judge Carl J. Barbier of the Eastern District of Louisiana to three (3) years of probation for conspiracy to pass altered U.S. Postal money orders, passing altered U.S. Postal money orders and possessing stolen U.S. government property.
According to court records, MERCHANT and a co-defendant, Anthony Smalls, travelled from New York to Louisiana in October of 2019 to cash stolen U.S. Postal money orders that had been altered to show amounts worth hundreds of dollars. MERCHANT and Smalls cashed two such postal money orders in Kenner and Metairie, LA. When arrested, the defendants also possessed 58 U.S. Postal money orders that they had stolen from an Ascension Parish U.S. Post Office the day before.
In addition to probation, MERCHANT was ordered to pay restitution to the U.S. Postal Service in the amount of $5,675.00, and a mandatory special assessment fee of $400.
U.S. Attorney Evans praised the work of the United States Postal Inspection Service, along with assistance from the Louisiana State Police - Criminal Investigations Department, Jefferson Parish Sheriff’s Office and Ascension Parish Sheriff’s Office, in investigating this matter. Assistant U.S. Attorney Edward J. Rivera was in charge of the prosecution.
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New York Man Sentenced to Four Years in Prison for Role in Bank FraudRead the Press Release
CAMDEN, N.J. – A Bronx, New York, man was sentenced today to 48 months in prison for his role in a scheme to steal bank customer identities and then use the information to steal more than $600,000, U.S. Attorney Philip R. Sellinger announced.
Lamar Melhado, 32, previously pleaded guilty before U.S. District Judge Renée Marie Bumb to Count 1 of an indictment charging him with conspiracy to commit bank fraud. Judge Bumb imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
From August 2016 through August 2017, Melhado conspired with Jamere Hill-Birdsong, of Camden, and others, to defraud a Mount Laurel, New Jersey, bank. Hill-Birdsong worked inside the banks’s call center and recruited other call center employees to participate in the scheme by stealing the identities and account information of customers who called into the bank’s call center.
The conspirator bank employees would then take photographs or screenshots of the bank customers’ account information and signatures and would send that information to Hill-Birdsong and Melhado. The conspirators then had phony identification documents made in the names of the bank customers, and used various runners to go into bank branches and make unauthorized cash withdrawals. The conspirators also used the stolen identity information to conduct unauthorized online transfers of monies from the customer’s accounts. Hill-Birdsong was indicted in March 2021 on conspiracy to commit bank fraud, bank fraud and aggravated identity theft; those charges remain pending. The charges and allegations contained in the indictment against Hill-Birdson are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
In addition to the prison term, Judge Bumb sentenced Melhado to five years of supervised release and ordered restitution of $604,096 and forfeiture of $151,024.
U.S. Attorney Sellinger credited agents of the FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge Jacqueline Maguire in Philadelphia, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Diana Vondra Carrig of the U.S. Attorney’s Office in Camden.
New Jersey Man Convicted of Threatening Federal Law Enforcement OfficersRead the Press Release
NEWARK, N.J. – A New Jersey man was convicted by a federal jury today of threatening to assault and murder federal law enforcement officers, U.S. Attorney Philip R. Sellinger announced.
Frank Monte, 51, of New Jersey, was convicted following a one-week trial before U.S. District Judge John Michael Vazquez in Newark federal court of three counts of threatening a federal law enforcement officer, and of two counts of transmitting threats in interstate commerce.
According to documents filed in the case and the evidence at trial:
On July 21, 2019, Monte repeatedly called the emergency line of the U.S. Department of Veterans Affairs (VA) Police at the VA Lyons hospital campus. During one of those calls, Monte threatened to “shoot up” a VA Police officer.
On Oct. 15, 2019, Monte called the office of a U.S. Congressman and spoke with a staff member. During that call, Monte threatened that if he ever saw a particular special agent of the U.S. Secret Service in New Jersey, Monte would assault him.
On Oct. 18, 2019, Monte called a special agent of the U.S. Capitol Police. During that call, Monte once again threatened to assault the same special agent of the U.S. Secret Service.
The count of threatening to murder a federal law enforcement officer based on the July 2019 threat carries a maximum penalty of 10 years in prison. The two counts of threatening to assault a federal law enforcement officer based on the October 2019 threats each carry a maximum penalty of six years in prison. The two counts of transmitting a threat in interstate commerce based on the October 2019 threats each carry a maximum penalty of five years in prison. Each count also carries a maximum fine of $250,000. Sentencing is scheduled for July 12, 2022.
U.S. Attorney Sellinger credited special agents of the U.S. Secret Service, Newark Field Office, under the direction of Special Agent in Charge Mark McKevitt, with the investigation leading to today’s conviction. He also thanked the U.S. Department of Veterans Affairs Police, VA New Jersey Health Care System, under the direction of Acting Chief Minelli Torres-Sukola; members of the U.S. Capitol Police, Threat Assessment Section, under the direction of Assistant Special Agent in Charge Chad Beckett; members of the U.S. Marshals Service, under the direction of Marshal Juan Mattos Jr.; and members of the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura, for their assistance in the investigation.
The government is represented by Assistant U.S. Attorney Anthony P. Torntore and Assistant U.S. Attorney Andrew M. Trombly of the Cybercrime Unit in Newark.
National Laboratory Pays Nearly $4.8 Million to Settle Allegations it Overcharged Connecticut MedicaidRead the Press Release
U.S. Attorney Leonard C Boyle, Special Agent in Charge Phillip Coyne of the U.S. Department of Health and Human Services, Office of Inspector General, and Connecticut Attorney General William Tong today announced that REDWOOD TOXICOLOGY LABORATORY, INC. has entered into a civil settlement agreement with the federal and state governments and has paid nearly $4.8 million to resolve allegations it overcharged the Connecticut Medicaid program for certain laboratory services.
Redwood Toxicology Laboratory (“RTL”), with a headquarters located in Santa Rosa, California, provides laboratory-testing services, specifically urine drug testing services, for substance abuse patients enrolled in the Connecticut Medicaid program. The government alleges that RTL violated Connecticut’s so-called “Most Favored Nation” regulation (Conn. Agencies Regs. § 17b-262-649), which provides, in essence, that clinical laboratories should not seek payment from Connecticut Medicaid for services at a price that is higher than the lowest price the laboratory charges for the same or similar services from other third parties. Specifically, the government alleges that RTL regularly accepted payments from Connecticut Medicaid for certain urine drug tests at the rate of $38 per test, while at the same time charging other third parties from $2 to $10.50 for the same or substantially similar urine drug tests.
To resolve the governments’ allegations, RTL agreed to pay $4,797,578, which covers claims submitted to the Connecticut Medicaid program from January 1, 2015, through and including February 24, 2018.
“We are committed to ensuring that public funds used for substance abuse treatment are properly spent, and clinical laboratories that charge government health care programs a higher price than they charge to other providers for the same or similar services will be held accountable,” said U.S. Attorney Boyle.
This matter was investigated by the Office of Inspector General for the Department of Health and Human Services. The case is being prosecuted by Assistant U.S. Attorney Richard M. Molot, and Assistant Attorney General Gregory O’Connell of the Connecticut Office of the Attorney General.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS.
Monaca Man Distributed Cocaine to Lower Level Dealers and Drug UsersRead the Press Release
PITTSBURGH, PA - A resident of Monaca, Pennsylvania, pleaded guilty in federal court to charge of conspiracy to distribute and possess with intent to distribute 5 kilograms or more of cocaine, United States Attorney Cindy K. Chung announced today.
Cadee Akins, Sr., age 49, pleaded guilty to one count before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that Akins distributed cocaine from November 2017 to September 2020 to multiple individuals, who in turn distributed cocaine to lower level dealers and drug users. During the investigation, law enforcement recovered an “owe sheet” from a residence used by Akins, which identified his conspirators and money they owed him. Additionally, law enforcement also recovered from Akins 2 kilograms of cocaine and approximately $50,600.00 during two separate traffic stops.
Judge Cathy Bissoon scheduled sentencing for July 13, 2022, at 10:00 am. The law provides for a maximum of life in prison, a fine of $20,000,000, 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 Akins to the custody of the U.S. Marshals Service.
Assistant United States Attorney Brendan J. McKenna is prosecuting this case on behalf of the government.
The Drug Enforcement Administration, Pennsylvania Office of Attorney General, Beaver County Anti-Drug Task Force, and the Pennsylvania State Police, conducted the investigation that led to the prosecution of Akins, Sr.
Methamphetamine Trafficker Sentenced to 27 Years in Federal PrisonRead the Press Release
Tampa, Florida – U.S. District Judge Kathryn Mizelle has sentenced Victor Manuel Hernandez (22, Wimauma) to 27 years in federal prison for a narcotics conspiracy involving methamphetamine, heroin, and cocaine, as well as for being a felon in possession of multiple firearms. Hernandez had pleaded guilty on July 27, 2021.
According to court documents, between on or about July 18, 2019, through February 12, 2021, Hernandez conspired with others to distribute 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine, 100 grams or more of a mixture and substance containing a detectable amount of heroin, and a mixture and substance containing a detectable amount of cocaine. On July 18, 2019, a confidential source (CS) spoke with Hernandez on the phone and ordered a kilogram of methamphetamine. The two agreed to meet that day and the CS traveled to an apartment complex and parked. Soon thereafter, a Dodge Charger pulled in next to the CS’s vehicle. As agents approached the car, Hernandez got out of the car and attempted to flee but was ultimately apprehended. Upon searching the car, agents found approximately 978 grams of methamphetamine. Hernandez then took agents to his residence, where he led them to additional drugs: approximately 800 grams of heroin and approximately 4 kilograms of additional methamphetamine. Hernandez also had 13 guns and assorted ammunition inside the house.
While Hernandez was released on bond, law enforcement learned that he was again trafficking in narcotics. Subsequently, a search warrant was executed at Hernandez’s house, and inside, agents found approximately 31 kilograms of methamphetamine, 756 grams of cocaine, and approximately 523 grams of heroin. Investigators also found two rifles, both of which belonged to Hernandez.
Hernandez had been previously convicted of a felony, including aggravated battery with a deadly weapon. As such, he is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Drug Enforcement Administration, the Sarasota County Sheriff’s Office, the Sarasota Police Department, and the Bradenton Police Department. It was prosecuted by Assistant United States Attorney Callan Albritton.
Methamphetamine Dealer Is Sentenced to 10 YearsRead the Press Release
CHARLOTTE, N.C. – U.S. District Judge Max O. Cogburn Jr. today sentenced a methamphetamine dealer to 120 months in prison, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Christian Allen Garcia, 30, of West Covina, California, was also ordered to serve five years of supervised release following his prison term.
Robert J. Murphy, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD) join U.S. Attorney King in making today’s announcement.
According to filed documents and statements made in court, in 2018, law enforcement identified Garcia as a member of a drug trafficking organization responsible for distributing bulk quantity of narcotics in Western North Carolina, including the greater Charlotte area. On March 27, 2018, law enforcement conducted a traffic stop of the vehicle where Garcia was a passenger and Garcia’s co-defendant, Henry Danny Collao, was the driver. Over the course of the traffic stop, law enforcement recovered nearly a kilogram of methamphetamine from the rear passenger seat. Law enforcement also found a loaded firearm in Garcia’s pants pocket and a second loaded gun in Collao’s right waistband. Officers also located within the vehicle different bank transaction receipts from various U.S. banks totaling over $75,000 in drug proceeds.
On July 8, 2021, Garcia pleaded guilty to conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute methamphetamine. Collao was previously sentenced to 151 months in prison for his role in the drug trafficking scheme.
The investigation was handled by DEA and CMPD. Assistant U.S. Attorney Christopher Hess of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Mercer County Man Sentenced to Nine Years in Prison for Illegal Possession of WeaponRead the Press Release
TRENTON, N.J. – A Mercer County, New Jersey, man with prior felony convictions was sentenced to 108 months in prison for unlawfully possessing a firearm and ammunition, U.S. Attorney Philip R. Sellinger announced today.
Omar Kennedy, 40, of Trenton, previously pleaded guilty by before U.S. District Judge Anne E. Thompson to an indictment charging him with one count of possession of a firearm and ammunition by a convicted felon. Judge Thompson imposed the sentence on March 4, 2022.
According to documents filed in this case and statements made in court:
On May 23, 2019, the Trenton Police Department was called to a residence in Trenton, New Jersey on the report of a domestic disturbance. When officers arrived, the female resident reported that Kennedy pointed a firearm at her and threatened to shoot and kill her. While law enforcement officers were at the location, Kennedy phoned the female victim and repeated his threat to shoot her. Officers located Kennedy in the immediate area of the home, and he was found in possession of a firearm loaded with eight rounds of ammunition.
U.S. Attorney Sellinger credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Trenton Field Office, under the direction of Special Agent in Charge Jeffrey L. Matthews, Newark Field Division; officers with the Trenton Police Department, under the direction of Director Steve E. Wilson; and the Mercer County Prosecutor’s Office, under the direction of Prosecutor Angelo J. Onofri, with the investigation leading to the sentencing.
The government is represented by Assistant U.S. Attorney Michelle S. Gasparian of the U.S. Attorney’s Office Criminal Division in Trenton.
Member of the Karon Foster Carjacking Crew Pleads Guilty to Conspiracy to Participate in RacketeeringRead the Press Release
Baltimore, Maryland – Malik Evans, age 25, of Baltimore City, Maryland, pleaded guilty today to conspiracy to participate in racketeering activity.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Acting Special Agent in Charge L.C. Cheeks, Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Commissioner Michael Harrison of the Baltimore Police Department.
According to his guilty plea, from April 2019 to August 2019, Evans and co-defendant Karon Foster age 27, of Baltimore, Maryland were members of an enterprise that engaged in a pattern of deadly racketeering activity, including a series of armed carjackings, armed robberies, attempted armed robberies, and the pawning of stolen goods.
Specifically, between April 19, 2019, and August 8, 2019, Evans participated in four of thirteen carjackings committed by the enterprise. In all four of the carjackings in which Evans participated, members of the enterprise brandished firearms. Other co-conspirators, not including Evans, participated in an armed carjackings in which one victim was shot and killed. Two other victims were killed during street robberies; another victim was paralyzed as a result of an armed street robbery.
Members of the conspiracy not only promoted their activities on social media, but they also shared the proceeds of their exploits. Members also concealed enterprise activities by hiding, destroying, or disposing of evidence.
On December 20, 2021, co-defendant Karon Foster was sentenced to 40 years in federal prison for conspiracy to participate in racketeering activity, a carjacking conspiracy, and for aiding and abetting a carjacking resulting in death.
Evans and the government have agreed that, if the Court accepts the plea agreement, Evan will be sentenced to 17 years in federal prison. U.S. District Judge Stephanie A. Gallagher has scheduled sentencing for May 31, 2022 at 10 a.m.
This case was made possible by investigative leads generated from the Bureau of Alcohol, Tobacco, Firearms, and Explosives’ (ATF) National Integrated Ballistic Information Network (NIBIN). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN, an evidence-based program proven to be effective at reducing violent crime, is the centerpiece of the Department of Justice’s violent crime reduction efforts. 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.
United States Attorney Erek L. Barron commended the ATF and the Baltimore Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Patricia C. McLane and Brandon Moore who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.
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McLaughlin Man Indicted for Sexual Abuse of Children and Witness TamperingRead the Press Release
United States Attorney Dennis Holmes announced that a McLaughlin, South Dakota, man has been indicted by a federal grand jury for Aggravated Sexual Abuse of a Child and Witness Tampering.
Jerome Moses Goodhouse, Jr., age 30, was indicted on January 12, 2022. He appeared before U.S. Magistrate Judge Mark A. Moreno on March 3, 2022, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in federal prison and/or a $250,000 fine, a lifetime of supervised release, $100 to the Federal Crime Victims Fund, and $5,000 to the Domestic Trafficking Fund. Restitution may also be ordered.
The Indictment alleges that in 2017 at McLaughlin, Goodhouse sexually abused two minor victims. He also knowingly intimidated and threatened one of his victims to not report what he had done to law enforcement.
The charges are merely accusations and Goodhouse is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Bureau of Indian Affairs, Office of Justice Services. Assistant U.S. Attorney Cameron J. Cook is prosecuting the case.
Goodhouse was released on bond pending trial. A trial date was set for April 19, 2022.
Martinsburg man sentenced to more than 12 years for drug chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA –Ian Andre Carr, of Martinsburg, West Virginia, was sentenced today to 151 months of incarceration for a drug charge, United States Attorney William Ihlenfeld announced.
Carr, 50, pleaded guilty in September 2021 to one count of “Distribution of Fentanyl and Heroin.” Carr admitted to distributing the substances in February 2018 in Berkeley County.
Assistant U.S. Attorney Timothy D. Helman prosecuted the case on behalf of the government. The Eastern Panhandle Drug Task Force, a HIDTA-funded initiative, investigated.
Chief U.S. District Judge Gina M. Groh presided.
Martinsburg man sentenced for drug distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA – Kasem Damone Humphrey, of Martinsburg, West Virginia, was sentenced today to four years of probation for a drug charge, United States Attorney William Ihlenfeld announced.
Humphrey, 37, pleaded guilty in September 2021 to one count of “Distribution of Heroin.” Humphrey admitted to distributing heroin in October 2017 in Jefferson County.
Assistant U.S. Attorney Timothy D. Helman prosecuted the case on behalf of the government. The Eastern Panhandle Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge Thomas S. Kleeh presided.
Marshall County woman admits to drug chargesRead the Press Release
WHEELING, WEST VIRGINIA – Brooke Janine Hayes, of Moundsville, West Virginia, has admitted to methamphetamine charges, United States Attorney William Ihlenfeld announced.
Hayes, 39, pleaded guilty today to one count of “Conspiracy to Distribute Methamphetamine” and to one count of “Distribution of Methamphetamine within 1,000 feet of a Protected Location.” Hayes admitted to working with others to distribute methamphetamine in Marshall County from February to April 2021, as well as selling methamphetamine near Golden Towers in Marshall County in March 2021.
Hayes faces up to 20 years of incarceration and a fine of up to $1,000,000 for the conspiracy count and faces at least one and up to 40 years of incarceration and a fine of up to $2,000,000 for the distribution near a protected location count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Clayton J. Reid is prosecuting the case on behalf of the government. The Marshall County Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge James P. Mazzone presided.
Man Sentenced to Five Years in Federal Prison for Throwing Explosive Device into Suburban Chicago RestaurantRead the Press Release
CHICAGO — A man has been sentenced to five years in federal prison for using an explosive device to damage a suburban Chicago restaurant.
On June 1, 2020, DIEGO VARGAS, 27, of Aurora, Ill., threw a lit explosive device through the window of Egg Harbor Cafe in Naperville, Ill., resulting in two explosions. The restaurant was closed, and no injuries were reported.
In addition to the restaurant incident, Vargas on the previous night tried to steal cash from an ATM in Aurora. Vargas struck the ATM with a baseball bat and a metal pole from a street sign in an unsuccessful attempt to pry it open.
U.S. District Judge Elaine E. Bucklo imposed the five-year prison sentence Thursday after a hearing in federal court in Chicago.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The Naperville Police Department and Aurora Police Department provided valuable assistance. The government was represented by Assistant U.S. Attorneys Barry Jonas and Kate McClelland.
Mallinckrodt Agrees to Pay Nearly $234 Million to Resolve Allegations Related to Price IncreasesRead the Press Release
BOSTON – Pharmaceutical company Mallinckrodt ARD, LLC (formerly known as Mallinckrodt ARD, Inc. and previously Questcor Pharmaceuticals, Inc.), has agreed to pay $233,707,865 as part of a settlement to resolve allegations that from 2013 until 2020, it knowingly underpaid Medicaid rebates that resulted from its price increases for the drug H.P. Acthar Gel (Acthar), in violation of the False Claims Act. In March 2020, the government filed a complaint detailing these allegations and how Mallinckrodt unlawfully required Medicaid programs to foot the bill for an increase in price from $50 per vial to $28,000 per vial, as though a new version of Acthar came on the market in 2013, when in fact, it did not.
Mallinckrodt’s payment of approximately $233.7 million includes approximately $123.6 million to the United States and approximately $110.1 million to several states, pursuant to the terms of separate settlement agreements Mallinckrodt has or will enter into with those states. In October 2020, Mallinckrodt filed for bankruptcy protection and the United States Bankruptcy Court for the District of Delaware has approved Mallinckrodt’s settlement with the government.
In connection with the settlement, Mallinckrodt also entered a five-year corporate integrity agreement (CIA) with the Department of Health and Human Services Office of Inspector General (OIG). The CIA contains unique drug price transparency provisions and monitoring provisions focused on Medicaid rebate and patient assistance program activities. The CIA also requires Mallinckrodt to establish a risk assessment program, implement executive recoupment provisions and obtain compliance related certifications from company executives and board members.
Pursuant to the Medicaid Drug Rebate Program, drug manufacturers are required to pay quarterly rebates to state Medicaid programs in exchange for Medicaid coverage of the manufacturers’ drugs. The statute requires pharmaceutical companies to pay inflation-based rebates for drugs, which are designed to insulate the Medicaid program from drug price increases outpacing inflation. These rebates are calculated as the difference between the drug’s current price and the price the drug would have had if its price had increased at the rate of inflation since 1990, or the date when the drug was first marketed, whichever date is later.
The government alleges that Mallinckrodt knowingly underpaid rebates due for Acthar from 2013 until 2020. Acthar is a specialty drug that has been approved for various indications, including multiple sclerosis and infantile spasms. Specifically, the government alleges that Mallinckrodt and its predecessor, Questcor, began paying rebates for Acthar in 2013, as if Acthar was a new drug first marketed in 2013. In doing so, Mallinckrodt and Questcor ignored all pre-2013 price increases when calculating and paying Medicaid rebates for Acthar.
The government also alleges Mallinckrodt received an unlawful and improper windfall as a result of these practices, because the company raised the price of Acthar significantly – from approximately $50 per vial in 2001 to $40,000 per vial today. In particular, the government alleges that Acthar’s price had already risen to over $28,000 per vial by 2013. Mallinckrodt’s decision to disregard all pre-2013 price increases for Medicaid rebate purposes significantly lowered Medicaid rebate payments for Acthar. The government further alleges that the Centers for Medicare and Medicaid Services repeatedly warned Mallinckrodt against this practice in 2016, 2017, 2018 and 2019. Mallinckrodt, however, refused to take corrective action. Under the settlement agreement, Mallinckrodt admits and agrees that there is only one Acthar, that FDA approved Acthar in 1952 and that Acthar was first produced, distributed and marketed prior to 1990.
“Mallinckrodt illegally reduced the amounts it paid to state Medicaid programs by improperly calculating the rebates it owed,” said United States Attorney Rachael S. Rollins. “Today’s settlement vindicates the interests of the American taxpayer by ensuring that no pharmaceutical manufacturer can illegally boost its profits at the expense of state Medicaid programs, and the people and families those programs serve. This company unlawfully siphoned money out of the Medicaid program which poor people depend on for their medical care.”
“The Department is committed to protecting tax-payer funded health care programs and their ability to supply reasonably priced pharmaceutical products to elderly and vulnerable populations” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Department of Justice’s Civil Division. “As this settlement demonstrates, the department will pursue those who seek to undermine these protections.”
“The Medicaid Drug Rebate Program relies on drug manufacturers to report accurate pricing information in order to calculate appropriate Medicaid rebates,” said Phillip Coyne, Special Agent in Charge with the Office of Inspector General of the U.S. Department of Health and Human Services. “Taxpayers rightly expect that pharmaceutical companies will play by the rules rather than falsely report prices to boost profits. Any drug company shirking that responsibility can expect to be held accountable for its deception.”
“Drug company schemes to undermine Medicaid and Medicare payment rules harm these critical taxpayer-funded health programs,” said Chief Counsel Gregory E. Demske of the Office of Inspector General. “Under this CIA, OIG will scrutinize Mallinckrodt’s Medicaid rebate practices and Mallinckrodt will be required to provide advance public notice of price increases for Acthar and other drugs.”
“This settlement resolves allegations that Mallinckrodt cheated the Medicaid program, and ultimately taxpayers, out of hundreds of millions of dollars, by exploiting a system that was set up to keep a check on rising drug prices to ensure that our most vulnerable citizens are able to receive medical treatment,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “It also illustrates how the FBI and our partners will not allow pharmaceutical companies to dodge their obligations in order take advantage of federal health insurance programs at the expense of those who need them the most.”
The government’s allegations were originally alleged in a case filed under the whistleblower, or qui tam, provision of the False Claims Act. The act permits private parties to sue for fraud on behalf of the United States and to share in any recovery. The act also permits the government to intervene in such actions, as the government has done in this case.
U.S. Attorney Rollins; Principal Deputy AAG Boynton; HHS-OIG Chief General Counsel Demske; and FBI SAC Bonavolonta made the announcement today. Assistant U.S. Attorney Evan Panich of Rollins’ Affirmative Civil Enforcement Unit; Raquelle Kaye of Rollins’s Asset Recovery Unit; and Trial Attorneys Augustine Ripa and Michael Hoffman of the Justice Department’s Civil Division handled the matter.
Mallinckrodt Agrees to Pay $260 Million to Settle Lawsuits Alleging Underpayments of Medicaid Drug Rebates and Payment of Illegal KickbacksRead the Press Release
Pharmaceutical company Mallinckrodt ARD LLC (formerly known as Mallinckrodt ARD Inc. and previously Questcor Pharmaceuticals Inc. (Questcor)) (collectively Mallinckrodt), has agreed to pay $260 million to resolve allegations that Mallinckrodt violated the False Claims Act by knowingly: 1. underpaying Medicaid rebates due for its drug H.P. Acthar Gel (Acthar); and 2. using a foundation as a conduit to pay illegal co-pay subsidies in violation of the Anti-Kickback Statute for Acthar. In 2019 and 2020, respectively, the government filed separate complaints detailing these allegations. The settlement, which is based on Mallinckrodt’s financial condition, required final approval of the U.S. Bankruptcy Court for the District of Delaware, which approved the settlement on March 2.
“The department is committed to protecting tax-payer funded health care programs and their ability to supply reasonably priced pharmaceutical products to elderly and vulnerable populations,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Department of Justice’s Civil Division. “As this settlement demonstrates, the department will pursue those who seek to undermine these protections.”
In connection with the settlement, Mallinckrodt also entered a five-year corporate integrity agreement (CIA) with the Department of Health and Human Services Office of Inspector General (HHS-OIG). The CIA contains unique drug price transparency provisions and monitoring provisions focused on Medicaid rebate and patient assistance program activities. The CIA also requires Mallinckrodt to establish a risk assessment program, implement executive recoupment provisions, and obtain compliance related certifications from company executives and board members.
“Mallinckrodt illegally reduced the amounts it paid to state Medicaid programs by improperly calculating the rebates it owed,” said U.S. Attorney Rachael S. Rollins for the District of Massachusetts. “Today’s settlement vindicates the interests of the American taxpayer by ensuring that no pharmaceutical manufacturer can illegally boost its profits at the expense of state Medicaid programs, and the people and families those programs serve. This company unlawfully siphoned money out of the Medicaid program which poor people depend on for their medical care.”
“When pharmaceutical companies manipulate Medicare Part D by covering patient copays, the whole structure of the Part D program is undermined,” said U.S. Attorney Jennifer Arbittier Williams for the Eastern District of Pennsylvania. “Our office is committed to maintain the financial integrity of taxpayer-funded programs like Medicare, and therefore we will continue to pursue fraud actions like this so that Medicare Part D and other federal healthcare programs remain viable for those who rely on the benefits.”
“Drug company schemes to undermine Medicaid and Medicare payment rules harm these critical taxpayer-funded health programs,” said Chief Counsel Gregory E. Demske of HHS-OIG. “Under this CIA, OIG will scrutinize Mallinckrodt’s Medicaid rebate practices and Mallinckrodt will be required to provide advance public notice of price increases for Acthar and other drugs.”
“This settlement resolves allegations that Mallinckrodt cheated the Medicaid program, and ultimately taxpayers, out of hundreds of millions of dollars, by exploiting a system that was set up to keep a check on rising drug prices to ensure that our most vulnerable citizens are able to receive medical treatment,” said Special Agent in Charge Joseph R. Bonavolonta of the FBI, Boston Division. “It also illustrates how the FBI and our partners will not allow pharmaceutical companies to dodge their obligations in order take advantage of federal health insurance programs at the expense of those who need them the most.”
Medicaid Drug Rebate Claims
Pursuant to the Medicaid Drug Rebate Program, drug manufacturers are required to pay quarterly rebates to state Medicaid programs in exchange for Medicaid’s coverage of the manufacturers’ drugs. The statute requires manufacturers to pay inflation-based rebates for drugs, which are designed to insulate the Medicaid program from drug price increases outpacing inflation. These rebates are calculated by comparing the drug’s Base Date Average Manufacturer Price (AMP), which is the drug’s price on the date that the “dosage form and strength” of the drug was first marketed or 1990, whichever is later, to its current price.
In its complaint filed on March 3, 2020, the government alleged that Mallinckrodt knowingly underpaid rebates due for Acthar from 2013 until 2020. According to the complaint, Mallinckrodt and its predecessor Questcor began paying rebates for Acthar in 2013 as if Acthar was a “new drug” first marketed in 2013, rather than a drug that had been approved since 1952. Allegedly, this practice meant the companies ignored all pre-2013 price increases when calculating and paying Medicaid rebates for Acthar from 2013 until 2020. In particular, the government alleged that Acthar’s price had already risen to over $28,000 per vial by 2013, and therefore ignoring all pre-2013 price increases for Medicaid rebate purposes significantly lowered Medicaid rebate payments for Acthar. Under the settlement agreement, Mallinckrodt admitted that Acthar was not a new drug as of 2013 but rather was approved by the U.S. Food and Drug Administration and marketed prior to 1990, and agreed to correct Acthar’s base date AMP and that it will not change the date in the future.
Kickback Claims
When a Medicare beneficiary obtains a prescription drug covered by Medicare, the beneficiary may be required to make a partial payment, which may take the form of a copayment. Congress included copay requirements in the Medicare program, in part, to serve as a check on health care costs, including the prices that pharmaceutical manufacturers can demand for their drugs. The Federal Anti-Kickback Statute prohibits a pharmaceutical company from offering or paying, directly or indirectly, any remuneration — which includes money or any other thing of value — to induce Medicare patients to purchase the company’s drugs. This prohibition extends to the payment of patients’ copay obligations.
In its complaint filed on June 5, 2019, the government alleged that Mallinckrodt knowingly used a foundation as a conduit to pay illegal kickbacks in the form of copay subsidies for Acthar so it could market the drug as “free” to doctors and patients while increasing its price. Mallinckrodt allegedly paid these illegal subsidies through three funds that Mallinckrodt had a foundation set up to induce Medicare-reimbursed purchases of Acthar, and used the subsidies to counteract doctor and patient concerns about the drug’s high cost.
The settlement provides for Mallinckrodt’s payment of approximately $234.7 million to resolve the Medicaid rebate allegations and approximately $26.3 million to resolve the kickback allegations. Of the amount allocated to the Medicaid rebate claims, Mallinckrodt will pay approximately $123.6 million to the United States and approximately $110.1 million to the participating Medicaid States, pursuant to the terms of separate settlement agreements Mallinckrodt has or will enter into with those states. In October 2020, Mallinckrodt filed for bankruptcy protections and this settlement with the government has been approved for payment by the U.S. Bankruptcy Court for the District of Delaware.
The allegations resolved by the settlement agreement were originally brought in cases filed under the whistleblower, or qui tam, provision of the False Claims Act. The act permits private parties to sue for fraud on behalf of the United States and to share in any recovery. The act also permits the government to intervene in such actions, as the government has done in these cases, which are captioned: United States of America et al. ex rel. Landolt v. Mallinckrodt Pharmaceuticals Inc.; United States of America ex rel. Strunck et al. v. Mallinckrodt ARD, Inc.; and United States of America ex rel. Clark v. Questor Pharmaceuticals, Inc. The Strunck whistleblowers will receive approximately $4.9 million from the recovery for the kickback allegations and the Landolt whistleblower will receive approximately $24.7 million from the federal recovery for the Medicaid rebate allegations.
The government’s pursuit of these matters 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).
These matters are being handled by Trial Attorneys Augustine Ripa, Michael Hoffman and Dan Schiffer of the Civil Division’s Commercial Litigation Branch, Fraud Section; Assistant U.S. Attorney Evan Panich of the District of Massachusetts; and Assistant U.S. Attorneys Colin Cherico, Paul Koob and Matthew Howatt of the Eastern District of Pennsylvania. HHS-OIG assisted with the matters.
The claims asserted by the United States are allegations only and there has been no determination of liability.
MOX Services Agrees to Pay $10 Million to Resolve Allegations of Knowingly Presenting False Claims to Department of Energy for Non-Existent Construction MaterialsRead the Press Release
MOX Services LLC, formerly known as CB&I AREVA MOX Services LLC (MOX), located in South Carolina, has agreed to pay $10 million to resolve allegations that it violated the False Claims Act by knowingly submitting to the U.S. Department of Energy (DOE) false and fraudulent invoices for non-existent materials and receiving improper kickbacks.
MOX was the prime contractor for the construction of the Mixed Oxide Fuel Fabrication Facility at the DOE Savannah River Site in Aiken, South Carolina. The United States alleged that MOX was obligated to confirm receipt and acceptance from subcontractors of any materials before MOX approved and submitted claims to DOE for those materials. One of those subcontractors — Wise Services Inc. (Wise) — submitted to MOX hundreds of invoices charging millions of dollars for materials that did not exist. MOX presented those false invoices to DOE. The United States alleged that by knowingly failing to follow its own policies and procedures, MOX violated its obligation to uncover that the Wise invoices were for non-existent materials. The United States also alleged that MOX employees received kickbacks from Wise employees involved in the scheme.
“It is vital that contractors on federally funded projects provide sufficient oversight of the companies they hire to ensure that the government is billed only for legitimate goods and services,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department will pursue those who knowingly fail to prevent the submission of false claims.”
“Federal contractors cannot charge for non-existent materials and accept kickbacks in connection with federal contracts,” said U.S. Attorney Corey F. Ellis for the District of South Carolina. “To do so is to defraud the American taxpayer. The District of South Carolina will use all available remedies to hold those contractors accountable.”
“Contractors to the Department of Energy cannot turn a blind eye to the fraudulent behavior of their subcontractors,” said Inspector General Teri L. Donaldson Department of Energy. “These behaviors undermine the Department of Energy’s programs and operations. The Inspector General’s office will continue to work with our partners at the Justice Department and the U.S. Attorney’s Offices to hold those who defraud the government accountable.”
The civil settlement includes the resolution of claims against MOX brought under the False Claims Act by the United States in the case captioned United States v. CB&I AREVA MOX Services LLC and Wise Services Inc., No. 19-cv-444 (D.S.C.).
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the District of South Carolina, with assistance from the DOE Office of Inspector General and the National Nuclear Security Administration.
The matter was handled by Fraud Section Attorneys Don Williamson and Rory Skaggs and Civil Division Chief James Leventis and Assistant U.S. Attorneys Johanna Valenzuela and Sheria Clarke with the U.S. Attorney’s Office for the District of South Carolina.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Lowrider Gang Leader Sentenced to over 20 Years in Federal Prison for His Conduct within a Racketeering and Drug ConspiracyRead the Press Release
DAVENPORT, Iowa – Mario Herrera, age 31, of Davenport, was sentenced on March 4,2022, to 20 years and 10 months in federal prison for his role in a drug and racketeering conspiracy that encompassed four attempted murders and a stabbing at a local bar.
According to court documents, Herrera was sentenced after pleading guilty to Racketeering Conspiracy and Conspiracy to Distribute Cocaine. In April 2021, charges were announced for 15 members and associates of the Lowriders, a Davenport-based street gang. The charges reflect criminal conduct underlying various crimes, including attempted murder in aid of racketeering, drug trafficking, tampering with witnesses, knowing transfer of a handgun to a juvenile, lying to the grand jury, use of persons under 18 years of age in drug operations, and a multitude of firearms charges.
In addition to Mario Herrera, United States District Court Judge John A. Jarvey previously sentenced the following members or associates of the Lowrider Street Gang:
• Jacob Trujillo pleaded guilty to two counts of Attempted Murder in Aid of Racketeering, Racketeering Conspiracy, and Use and Carry a Firearm During and in Relation to a Crime of Violence and was sentenced to 20 years in federal prison.
• Carmelo Reyes pleaded guilty to Attempted Murder in Aid of Racketeering, Racketeering Conspiracy, and Use and Carry a Firearm During and in Relation to a Crime of Violence and was sentenced to 17 years and 6 months in federal prison.
• Adan Herrera pleaded guilty to Racketeering Conspiracy, Assault with a Dangerous Weapon in Aid of Racketeering, and Possession of a Firearm in Furtherance of Drug Trafficking and was sentenced to 16 years and 8 months in federal prison.
• Austin Nichols pleaded guilty to Racketeering Conspiracy and Assault with a Dangerous Weapon in Aid of Racketeering and was sentenced to 10 years in federal prison.
• Antonio Herrera pleaded guilty to Racketeering Conspiracy and Assault with a Dangerous Weapon in Aid of Racketeering and was sentenced to 8 years and 9 months in federal prison.
• Angel Mora pleaded guilty to Racketeering Conspiracy, Possession of a Firearm in Furtherance of Drug Trafficking, and Use of Persons Under 18 years of Age in Drug Operations and was sentenced to 8 years and 4 months in federal prison.
• Cody Herrera pleaded guilty to Racketeering Conspiracy and Prohibited Person in Possession of a Firearm and was sentenced to five years in federal prison.
• Tevin Lira pleaded guilty to Racketeering Conspiracy and Felon in Possession of a Firearm and was sentenced to 3 years and 6 months in federal prison.
• Kerri Joanne Reitz pleaded guilty to Accessory After the Fact and was sentenced to three years in federal prison.
• Eduardo Herrera pleaded guilty to Felon in Possession of Ammunition and was sentenced to 14 months in federal prison.
• Arnoldo Herrera pleaded guilty to Prohibited Person in Possession of a Firearm and Ammunition and was sentenced to 1 year and 1 day in federal prison.
• Andres Arriaga, pleaded guilty to Tampering with a Witness and False Declaration Before a Grand Jury and was sentenced to time served.
Jose Miguel Pena also pleaded guilty to Racketeering Conspiracy, Assault with a Dangerous Weapon in Aid of Racketeering, and Felon in Possession of a Firearm. Pena is scheduled to be sentenced May 17, 2022. Five other Lowrider members were charged in the Scott County District Court with violations of Iowa law, including intimidation with a dangerous weapon, willful injury, criminal gang participation, and drug-related offenses. Previously, two other Lowrider members or associates were charged and sentenced for federal firearms violations.
• Zacharia Allen Clark was sentenced to 16 years and 8 months of imprisonment after pleading guilty to being a prohibited person in possession of ammunition related to an incident in which he shot at another person in the parking lot of a Davenport nightclub.
• Alejandro Francisco Herrera, Jr. was sentenced to one year and 4 months in federal prison after pleading guilty to being a prohibited person in possession of a firearm and possession of a controlled substance.
As a result of this investigation, twenty-two Lowrider Street Gang members or associates have been charged with crimes.
According to court documents, the Lowrider Street Gang was a local gang that operated mostly out of Davenport. The purpose of the gang was to distribute drugs, obtain money, and maintain respect in the neighborhood. Lowriders were expected to retaliate against their perceived rivals, such as the Latin King and West Side Mafia street gangs. The Lowrider Street Gang was organized by tiers of memberships; the highest rank was referred to as the “Shot-Callers,” then the middle-level ranking was “Older Homies.” The lowest level were the “Shortys,” who typically consisted of younger members, including juveniles, who had not yet put in “work” to gain a higher ranking. Lowrider members define work as dealing drugs, conducting robberies and shootings, or otherwise assaulting rivals. The Lowriders conducted their affairs through a series of rules and policies and enforced discipline through a system of violations in which members physically beat those members of the gang who violated the rules. The Lowriders also initiated new members through the practice of causing them to endure physical assaults conducted by members of the gang at various gang-related gatherings.“I am thankful and proud of the courageous work our officers do in the City of Davenport every day,” stated Davenport Police Chief Paul Sikorski. “The amount of work by our investigators that went in to putting together this very complex case has been noticeably impactful in Davenport and in the Quad Cities. The unique and critical partnership we have with our prosecutors from the United States Attorney’s Office and our Quad Cities area law enforcement agencies, combined with the pure determination and commitment by everyone involved with this case, has made Davenport a safer place.”
“Whether by individual defendants, or by criminal street gang, violent crime has no place in communities like Davenport,” stated United States Attorney Richard D. Westphal. “The crimes committed in furtherance of this criminal enterprise, that included attempted murder, drug trafficking, transferred firearms to juveniles, possession and use of firearms, were extremely dangerous. We are grateful to the Davenport Police Department, and our state and federal partners, for the hard work to successfully prosecute these members of the Lowriders street gang.”
United States Attorney Richard D. Westphal, of the Southern District of Iowa made the announcement. The case was investigated by the Davenport Police Department with assistance from the Federal Bureau of Investigation, Drug Enforcement Administration, Iowa Division of Criminal Investigations, Bettendorf Police Department, Moline Police Department, and the Scott County Sheriff’s Office.
Lower Brule Man Indicted for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Dennis Holmes announced that a Lower Brule, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Robert Stricker, age 48, was indicted on February 8, 2022. He appeared before U.S. Magistrate Judge Mark A. Moreno on March 3, 2022, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to ten years in federal prison and/or a $250,000 fine, up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Stricker was convicted of Abusive Sexual Contact with a Minor in 2013. As a result of this conviction, he is required to register as a sex offender. It is alleged that between September 2021 and February 2022, Stricker, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of conviction under Federal Law, failed to properly register as a sex offender and update his registration.
The charge is merely an accusation and Stricker is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Stricker was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Lowell Man Sentenced for Drug and Firearm OffensesRead the Press Release
BOSTON – A Lowell man was sentenced today in federal court in Worcester for drug and firearm offenses.
Pablo L. Rivera, 55, was sentenced by U.S. District Court Judge Timothy S. Hillman to 37 months in prison, followed by three years of supervised release. On May 14, 2021, Rivera pleaded guilty to one count of being a felon in possession of a firearm and one count of possession with intent to distribute heroin.
Rivera was arrested on state charges on Feb. 8, 2019, after a motor vehicle stop in which law enforcement recovered a loaded P-38 Walther 9mm firearm, six rounds of ammunition, drug paraphernalia, and a plastic baggie containing approximately 10 grams of heroin from the vehicle Rivera was driving. Rivera is prohibited from possessing a firearm due to prior convictions punishable by more than one year in prison, including a prior conviction for being a felon in possession of a firearm.
United States Attorney Rachael S. Rollins; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police, made the announcement. Assistant U.S. Attorneys Lucy Sun and Greg Friedholm of Rollins’ Worcester Branch Office prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN is part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Louisville Man Sentenced to over 18 Years for Trafficking Methamphetamine in Knox CountyRead the Press Release
LONDON, Ky. – Courtney Leo Pierce, 32, of Louisville, was sentenced late Friday to 220 months in federal prison, by U.S. District Judge Robert E. Wier, for methamphetamine trafficking.
A federal jury found Pierce guilty of possessing with the intent to distribute 50 grams or more of actual methamphetamine, in October 2021. Trial testimony revealed that Pierce had been supplying Knox County drug dealers with methamphetamine that he brought in from Louisville. On April 2, 2020, the Knox County Sheriff’s Department stopped Pierce’s vehicle and recovered over 300 grams of methamphetamine. Because Pierce engaged in this conduct after having already been convicted of a serious violent felony, his sentence was enhanced.
Under federal law, Pierce must serve 85 percent of his 220-month prison sentence and will be under the supervision of the U.S. Probation Office for ten years following his release.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; J. Todd Scott, Special Agent in Charge of the DEA Louisville Field Division; Mike Smith, Knox County Sheriff; and Col. Phillip Burnett, Jr., Commissioner of the Kentucky State Police, jointly announced the sentence.
The investigation was conducted by the DEA and the Knox County Sheriff’s Office, with the assistance of the Kentucky State Police. The United States was represented in the case by Assistant U.S. Attorney Andrew H. Trimble.
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Louisville Man Sentenced to 50 Years in Federal Prison for Child Exploitation CrimesRead the Press Release
LOUISVILLE, KY – A Louisville man was sentenced last week to 50 years in prison followed by a life term of supervised release for production and possession of child pornography. There is no parole in the federal system.
According to court documents, Curtis Bradley, 63, sexually assaulted a minor female victim on more than 100 occasions over the course of several years beginning when the victim was only 11 years old. Bradley recorded the abuse with cameras positioned in his bedroom and via his cell phone. Bradley’s wife would transport the minor victim to his residence for the purpose of his engaging in sexual contact with the victim in return for Bradley providing his wife with cash and drugs.
“We will continue to aggressively prosecute predators who sexually exploit the most vulnerable individuals in our communities – the children,” stated United States Attorney Michael A. Bennett. I commend the outstanding work of AUSAs Zimdahl and Tieke, HSI Nashville, LMPD, and our partnership with the Jefferson County Commonwealth’s Attorney’s Office. As a result of a combined effort, the defendant faces a very significant prison sentence without the chance of parole.”
“Because of the outstanding efforts of our HSI agents, working with their law enforcement partners, an individual guilty of exploiting vulnerable children will serve a lengthy federal prison sentence for his unspeakable actions,” said HSI Nashville Special Agent in Charge Jerry C. Templet, Jr. “HSI will continue to prioritize these types of investigations to protect children and remove these offenders from our communities where they can no longer victimize others.”
The United States Department of Homeland Security, Homeland Security Investigations (HSI) and Louisville Metro Police Department (LMPD) investigated the case.
Assistant U.S. Attorneys Stephanie Zimdahl and Christopher Tieke prosecuted the case.
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This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.
Long Island Medical Doctor Pleads Guilty to Medicare Billing Fraud SchemeRead the Press Release
Earlier today, in federal court in Central Islip, Morris Barnard, a medical doctor practicing in Great Neck, New York, pleaded guilty to health care fraud in connection with billing Medicare for millions of dollars for medical procedures that were never actually performed. The proceeding was held before United States Magistrate Judge Anne Y. Shields.
Breon Peace, United States Attorney for the Eastern District of New York, Scott Lampert, Special Agent-in-Charge, Health & Human Services and Michael Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI) announced the guilty plea.
“With today’s guilty plea, Dr. Barnard admits to committing a multi-million dollar fraud on the Medicare program by billing for procedures he did not perform,” stated United States Attorney Peace. “By claiming to render services to disabled and other vulnerable patients, Dr. Barnard not only pocketed taxpayer funds that were intended to help beneficiaries in need, he also betrayed his oath for profit. We will continue to work closely with our law enforcement partners to protect the integrity of taxpayer-funded health care programs.”
“Money that’s allocated for Medicare-approved services, and fraudulently paid out to providers who don’t actually perform these services, is a crime that’s ultimately paid for by taxpayers themselves. Our office is committed to rooting out this type of fraudulent activity and maintaining the integrity of our government-sponsored health care programs,” stated FBI Assistant Director-in Charge Driscoll.
“The defendant’s actions diverted scarce taxpayer funds from the Medicare program for personal enrichment, while taking advantage of vulnerable individuals,” stated HHS-OIG Special Agent-in-Charge Lampert. “Working with our law enforcement partners, HHS-OIG will continue to ensure that providers that bill federally funded health care programs do so in an honest manner, and criminals will be held accountable.”
From October 2015 through February 2020, Dr. Barnard submitted over $3 million in billings to Medicare for colonoscopy and gastroenterological procedures that were not done. Most of these billings indicated that the services were rendered to disabled beneficiaries, who were living in residential group homes. Medicare reimbursed approximately $1.4 million of these false claims, none of which Dr. Barnard was entitled to receive.
The government’s case is being prosecuted by Assistant United States Attorneys Erin Argo, Charles P. Kelly and Madeline O’Connor of the Long Island Criminal Division.
The Defendant:
MORRIS BARNARD
Age: 58
Great Neck, New YorkE.D.N.Y. Docket No. 21-018 (GRB)
Las Vegas Felon Sentenced to over Eight Years in Prison for Drug Trafficking and Unlawful Possession of A FirearmRead the Press Release
LAS VEGAS – A Las Vegas man who distributed methamphetamine and unlawfully possessed a firearm was sentenced today to eight years and two months in prison, to be followed by four years of supervised release.
In August 2021, a federal jury found Donnell Henry (36) guilty of one count of distribution of methamphetamine and one count of felon in possession of a firearm. U.S. District Judge Jennifer A. Dorsey presided over the four-day trial and sentencing hearing.
According to court documents and evidence presented at trial, on October 29, 2019, Henry distributed 50 grams or more of methamphetamine, a Schedule II controlled substance. Three weeks later, on November 19, 2019, he possessed a multi-caliber pistol (and unlawfully sold that pistol). Henry is prohibited by law from possessing a firearm due to prior felony convictions in California state court for first degree burglary and maintaining a place to sell narcotics.
Co-defendant Ozzie Morrison pleaded guilty in May 2021. He was sentenced to two years in prison on August 11, 2021.
Acting U.S. Attorney Christopher Chiou for the District of Nevada and Special Agent in Charge Patrick Gorman of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) made the announcement.
This case was investigated by the ATF, DEA, and Las Vegas Metropolitan Police Department. Assistant U.S. Attorneys Melanee Smith and Kimberly Sokolich prosecuted the case.
This case was part of Operation Nora, a joint investigation by the ATF, the Drug Enforcement Administration, and the Las Vegas Metropolitan Police Department’s Central Intelligence Unit, focusing on the Sherwood Forest and Naked City areas in Las Vegas. Operation Nora was conducted as part of Project Safe Neighborhoods (PSN), a nationwide program by the Department of Justice that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, the Department announced the reinvigoration of PSN. For more information about PSN, visit www.justice.gov/usao-nv.
This case was also part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
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Inmate at Maryland Correctional Institution Jessup Sentenced to over Four Years in Federal Prison for Participating in a Racketeering ConspiracyRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paula Xinis sentenced inmate Jerrard Bazemore, a/k/a Tic, age 36, to 51 months in federal prison, followed by three years of supervised release, for a racketeering conspiracy charge related to his participation in a scheme to smuggle contraband into the Maryland Correctional Institution Jessup (MCIJ), including heroin, fentanyl, Suboxone, and K2 (a synthethic cannabinoid) in exchange for bribe payments. The sentence was imposed on March 4, 2022.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski, of the Federal Bureau of Investigation, Baltimore Field Office; and Secretary Robert L. Green, of the Maryland Department of Public Safety and Correctional Services.
According to court documents, MCIJ was a medium-security prison in Anne Arundel County, Maryland, that housed approximately 1,100 male inmates, with 262 custody staff or Correctional Officers (COs) and 52 non-custody staff, including case management, medical, and administrative staff.
As detailed in his plea agreement, Bazemore conspired with other inmates, individuals outside the facility who obtained and packaged contraband, and with Correctional Dietary Office (CDO) Patricia McDaniel, to smuggle narcotics and other contraband into MCIJ in exchange for bribe payments.
In recorded phone calls over a contraband cell phone, Bazemore was heard discussing with outside facilitators receiving payments and obtaining drugs to be provided to CDO McDaniel. On August 30, 2017, after phone calls with outside facilitators to obtain contraband and arrange to get it to McDaniel, Bazemore sent a message to McDaniel stating, “I love you. Don’t forget it.” Bazemore told McDaniel to put the contraband in her shoes. The following day, Bazemore confirmed to his outside facilitator that the contraband had successfully entered MCIJ.
On September 4, 2017, McDaniel informed Bazemore that another correctional officer had discovered their relationship and discussed how to make sure that Bazemore would keep his prison job in the kitchen, where McDaniel worked. On September 16, 2017, in a recorded phone call over a contraband cell phone, Bazemore informed McDaniel that he had a $300 bribe payment for her. McDaniel told Bazemore that she met with one of Bazemore’s facilitators the night before to obtain contraband.
On September 17, 2017, McDaniel was stopped in the MCIJ park lot in possession of a purple balloon containing heroin, fentanyl, Suboxone, and K2, that she intended to smuggle into MCIJ for Bazemore.
Patricia McDaniel, Correctional Dietary Officer, age 29, of Baltimore, pleaded guilty to the racketeering conspiracy and is awaiting sentencing.
This case arose from the efforts of the Maryland Prison Task Force, coordinated by the U.S. Attorney’s Office and comprised of local, state, and federal stakeholders that meet regularly to share information and generate recommendations to reform prison procedures and attack the gang problem that has plagued Maryland in recent years. The work of the Task Force previously resulted in the federal convictions of more than 78 defendants, including 16 correctional officers, at the Eastern Correctional Institution, and 40 defendants, including 24 correctional officers, at the Baltimore City Detention Center.
United States Attorney Erek L. Barron commended the FBI and the Department of Public Safety and Correctional Services for their work in the investigation. The U.S. Attorney expressed appreciation to the Department of Public Safety and Correctional Services, whose staff initiated the MCIJ investigation and have been full partners in this investigation. Mr. Barron thanked Assistant U.S. Attorney Sean R. Delaney, who is prosecuting this case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Huntsville Man Sentenced to 10 Years in Prison for CarjackingRead the Press Release
HUNTSVILLE, Ala. – A federal judge on Friday sentenced a Huntsville man for carjacking, announced U.S. Attorney Prim F. Escalona and Federal Bureau of Investigation Special Agent in Charge Johnnie Sharp, Jr.
U.S. District Judge Abdul K. Kallon sentenced Deondre Cleveland Day, 22, to 120 months in prison. Day pleaded guilty in August 2021 to one count of carjacking, and one count of conspiracy to discharge a firearm during a crime of violence.
According to the plea agreement, on September 24, 2019, Day and a juvenile co-defendant robbed the victim, stealing his car keys, guns, and cell phone. During the robbery, the victim was struck in the head with a handgun. Day and the juvenile then fled in the victim’s car. Later, when Huntsville Police spotted the car, Day led officers on a high-speed chase and shots were fired from the vehicle, striking the windshield of a Huntsville Police vehicle several times. Day and the juvenile then fled on foot.
“Combating violent gun crimes is a priority for my office and this district,” U.S. Attorney Escalona said. “Today’s sentence shows the seriousness of this offense, and I am grateful for the tireless efforts of our partner agencies on this case.”
“I want to thank the members of the North Alabama Violent Crime Task Force, and particularly our partners with the Huntsville Police Department, U.S. Marshals Gulf Coast Regional Fugitive Task Force, and the Madison County Sheriff’s Office for their work in bringing Day to justice,” SAC Sharp said. “The FBI will continue to work closely with our partners to address violent crime in north Alabama.”
FBI investigated the case along with the Huntsville Police Department, North Alabama Violent Crime Task Force, U.S. Marshals Gulf Coast Regional Fugitive Task Force, and the Madison County Sheriff’s Office. Assistant U.S. Attorney Russell Penfield prosecuted the case.
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Huntington Man Pleads Guilty to Federal Fentanyl ChargeRead the Press Release
HUNTINGTON, W.Va. – A Huntington man pleaded guilty today to a federal fentanyl charge.
According to court documents and statements made during the hearing, Ian Wyatt Justice, 20, admitted that on March 16, 2021, Huntington Police officers were conducting a drug investigation and observed him enter a residence located on Charleston Avenue in Huntington. The officers executed a search warrant at the residence on that date and Justice, who was present just prior to the search, was arrested. During the search, officers seized a number of items including fentanyl, three firearms, and items used to prepare fentanyl for distribution. Justice admitted that he intended to distribute the fentanyl and that he had been selling fentanyl in Huntington in the months leading up to the search.
Justice pleaded guilty to possession with intent to distribute 40 grams or more of fentanyl and faces five to 40 years in federal prison when he is sentenced on June 13, 2022.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Huntington Police Department.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Joseph F. Adams is handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:22-cr-00009.
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Hardy County man admits to drug chargeRead the Press Release
ELKINS, WEST VIRGINIA – Scott Allen Greenwalt, of Moorefield, West Virginia, has admitted to a drug charge, United States Attorney William Ihlenfeld announced.
Greenwalt, 49, pleaded guilty today to one count of “Possession with Intent to Distribute Methamphetamine.” Greenwalt admitted to having more than five grams or more of methamphetamine in April 2021 in Hardy County.
Greenwalt faces at least five and up to 40 years of incarceration and a fine of up to $5,000,000. 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 Stephen D. Warner is prosecuting the case on behalf of the government. The Potomac Highlands Drug Task Force, a HIDTA-funded initiative, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Georgia man who used COVID relief funds to buy Pokemon card sentenced to prisonRead the Press Release
DUBLIN, GA: A Laurens County, Georgia man has been sentenced to federal prison after admitting he lied to obtain a COVID-19 disaster relief loan, then used a large portion of the money to buy a collectible trading card.
Vinath Oudomsine, 31, of Dublin, Ga., was sentenced to 36 months in prison after pleading guilty to one count of Wire Fraud, said David H. Estes, U.S. Attorney for the Southern District of Georgia. U.S. District Court Judge Dudley H. Bowen also fined Oudomsine $10,000, ordered him to pay restitution of $85,000, and to serve three years of supervised release after completion of his prison term.
There is no parole in the federal system.
“Congress appropriated funding to assist small businesses struggling through the challenges of a global pandemic,” said U.S. Attorney Estes. “Like moths to the flame, fraudsters like Oudomsine took advantage of these programs to line their own pockets – and with our law enforcement partners, we are holding him and others accountable for their greed.”
As described in court documents and testimony, starting on or around July 2020, Oudomsine applied to the Small Business Administration (SBA) for an Economic Injury Disaster Loan (EIDL) ostensibly for an “entertainment services” business in Dublin that Oudomsine claimed had 10 employees and gross revenues of $235,000 in the 12 months preceding the COVID-19 pandemic. As a result of fraudulent representations on Oudomsine’s application, the SBA deposited $85,000 into Oudomsine’s bank account on Aug. 4, 2020. Oudomsine later used $57,789 of the funds to purchase a Pokémon trading card. Oudomsine agreed to forfeit the Pokémon card – “Charizard” – as part of the prosecution.
“The SBA Office of Inspector General continues to safeguard taxpayer dollars by protecting SBA programs from fraudsters seeking to gain access to pandemic assistance through deception,” said SBA OIG’s Special Agent in Charge Amaleka McCall-Brathwaite. “OIG remains committed to rooting out bad actors and protecting the integrity of SBA programs. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”
“COVID-19 disaster relief loans are issued by the government to help businesses struggling to survive during a pandemic, not to use for trivial collectible items,” said Philip Wislar, Acting Special Agent in Charge of FBI Atlanta. “This sentence highlights the FBI’s commitment to aggressively pursue anyone who would abuse taxpayer dollars and divert them from citizens who desperately need them.”
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The Federal Bureau of Investigation, the Small Business Administration Office of Inspector General, and an investigator from the U.S. Attorney’s Office investigated the case. Oudomsine was prosecuted for the United States by Assistant U.S. Attorneys Jonathan A. Porter and Patrick J. Schwedler, and Asset Recovery Unit Chief Xavier A. Cunningham handled forfeiture in the case.