Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
20 January 2022
United States Files Civil Forfeiture Complaint for Proceeds of Alleged Fraud and Theft from PrivatBank in UkraineRead the Press Release
The United States filed a civil forfeiture complaint today in the U.S. District Court for the Southern District of Florida alleging that more than $6 million in proceeds from the sale of commercial real estate in Dallas, Texas, which property was maintained and improved using the proceeds of embezzlement and fraud from PrivatBank in Ukraine, are subject to forfeiture based on violations of federal money laundering statutes.
This civil forfeiture action is the fourth such action filed in connection with the same alleged criminal activity. In August 2020, the United States filed two actions in the Southern District of Florida alleging that commercial real estate in Dallas and Louisville, Kentucky, was acquired using funds illegally obtained from PrivatBank in Ukraine as part of a multibillion-dollar fraudulent loan scheme. It filed a third suit in the same district in December 2020 alleging a property in Cleveland, Ohio, was similarly involved.
The four complaints allege that Ihor Kolomoisky and Gennadiy Boholiubov, who owned PrivatBank, one of the largest banks in Ukraine, embezzled and defrauded the bank of billions of dollars. The two allegedly obtained fraudulent loans and lines of credit from approximately 2008 through 2016, when the scheme was uncovered and the bank was nationalized by the National Bank of Ukraine. The complaints allege that they laundered a portion of the criminal proceeds using an array of shell companies’ bank accounts, primarily at PrivatBank’s Cyprus branch, before they transferred the funds to the United States.
As alleged in the complaints, Mordechai Korf and Uriel Laber, who were associates of Kolomoisky and Boholiubov operating out of offices in Miami, created a web of entities, usually under some variation of the name “Optima,” to further launder the misappropriated funds. They purchased hundreds of millions of dollars in real estate and businesses across the country, including commercial towers located at 8787 North Stemmons Freeway in Dallas (Stemmons Towers), which are the subject of this action, as well as the office tower known as 55 Public Square in Cleveland, a Louisville office tower known as PNC Plaza, and a Dallas office park known as the former CompuCom Headquarters.
The newest action alleges that several of the Optima entities, including Optima Ventures LLC, Optima 7171 LLC and Optima Stemmons LLC, used profits from the CompuCom Campus, which had originally been purchased using embezzled funds from PrivatBank, to pay for the improvement and maintenance of Stemmons Towers. Optima Stemmons then sold Stemmons Towers in 2019 using a seller financing agreement, under which more than $6 million in principal and interest is still owed to a specially-created entity owned by Optima Ventures named 87STE LLC. The United States seeks to forfeit the promissory note and deed of trust related to that financing agreement, which includes the right to receive payments due pursuant to the deed and its associated sales contract.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division and Special Agent in Charge Eric B. Smith of the FBI’s Cleveland Field Office made the announcement.
FBI’s Cleveland Field Office is investigating the case with support from FBI’s International Corruption Unit and IRS Criminal Investigation.
Trial Attorneys Shai D. Bronshtein and Rachel Goldstein of the Kleptocracy Asset Recovery Initiative in the Criminal Division’s Money Laundering and Asset Recovery Section are handling these cases. The Justice Department’s Office of International Affairs has provided substantial assistance in the investigation.
The Kleptocracy Asset Recovery Initiative is led by a team of dedicated prosecutors in the Money Laundering and Asset Recovery Section, in partnership with federal law enforcement agencies, and often with U.S. Attorneys’ Offices, who work to forfeit the proceeds of foreign official corruption and, where appropriate, to use those recovered assets to benefit the people harmed by these acts of corruption and abuse of office. In 2015, the FBI formed International Corruption Squads across the country to address national and international implications of foreign corruption. Individuals with information about possible proceeds of foreign corruption located in or laundered through the United States should contact federal law enforcement or send an email to [email protected] or https://tips.fbi.gov/.
A civil complaint is merely an allegation, and the government has the burden of establishing that assets are subject to forfeiture by a preponderance of the evidence.
U.S. Attorney’s Office Releases Annual ReportRead the Press Release
SAN DIEGO – The United States Attorney’s Office today released its Annual Report, which details major cases and achievements of 2021 that took place despite extraordinary challenges to law enforcement and federal court operations in the district due to the ongoing pandemic.
“I am very proud of our significant accomplishments during another year of difficult conditions,” said U.S. Attorney Randy Grossman. “Because of the excellent work of this office and our law enforcement partners, scores of violent criminals and large quantities of deadly drugs and guns are off the street, not only in this district, but around the world. This report provides a window into a few of the many civil and criminal cases we worked on this year as well as our significant community outreach efforts.”
In 2021, our Criminal Division charged approximately 3,850 felony cases and conducted more than 40 jury trials, all while operating in a maximum telework posture. Likewise, our Civil Division represented the United States and its agencies and employees in civil litigation in the district, managing a heavy caseload involving hundreds of depositions and court appearances, and pursued multiple affirmative enforcement cases.
Here are just a few highlights you will read about in this report:
- In response to a surge in violent crime in 2021, the U.S. Attorney’s Office and its law enforcement partners launched an effort to strategically prosecute the region’s most violent and prolific offenders who are believed to be most responsible for the spike, including those with criminal history and criminal gang affiliation who commit gun crimes. As a result, federal gun-related prosecutions in the Southern District of California increased in FY 2021 by almost 50 percent – to the highest levels seen in this office.
- The office addressed a disturbing increase in reports of hate crimes motivated by race, ethnicity and ancestry, and gender identity in 2021 on two fronts: Criminal prosecution and community outreach. The most notorious hate crime in recent memory in San Diego County concluded in 2021 with the sentencing of John T. Earnest, a Rancho Penasquitos man who entered the Chabad of Poway on April 27, 2019, opened fire and killed one woman, injured three others, and attempted to kill 50 others. He was sentenced to life plus 30 years in prison for his hate crimes. The office also led several outreach initiatives to educate the public about recognizing and reporting hate crimes, including a webinar in recognition of Asian Americans and Pacific Islanders (AAPI) month. The webinar, titled “Understanding AAPI Discrimination in Our Past and Present to Reclaim our Future,” educated the audience on AAPI hate in America, lessons learned from past hate incidents, and how to actively stop hate toward this community.
- In 2021, there was a tragic wave of smuggling-related deaths in San Diego and Imperial counties. In less than a three-week span, four lives were lost and dozens of people had to be rescued from rough seas and hospitalized after multiple maritime smuggling events went terribly wrong. The U.S. Attorney’s Office charged a number of people in connection with those deaths and held an important news conference, imploring migrants not to trust their lives to greedy smugglers. Assistant U.S. Attorney Victor White was selected to be the co-chair of Joint Task Force Alpha, a law enforcement group that will marshal the investigative and prosecutorial resources of the Department of Justice, in partnership with the Department of Homeland Security (DHS), to enhance U.S. enforcement efforts against the most prolific and dangerous human smuggling and trafficking groups operating in Mexico and the Northern Triangle countries of Guatemala, El Salvador, and Honduras.
- Overdose deaths spiked again in San Diego County this year. Although the year-end statistics will not be finalized until early 2022, it is likely that fentanyl overdose deaths will have nearly doubled. The U.S. Attorney’s Office has continued to actively intake cases in which the distribution of fentanyl and heroin have resulted in death. During 2021, at least eleven defendants were charged with the distribution of fentanyl “resulting in death” which carries with it a 20-year minimum mandatory sentence. Those cases have included charges stemming from the death of a U.S. Marine as well as a California Firefighter. Significantly, two such cases were tried to verdict during 2021 and both resulted in swift guilty verdicts on the 20-year minimum mandatory charge; in both cases, the defendants will be sentenced in 2022. One of those cases related to a defendant who sold a cocaine/fentanyl mixture that caused the collapse of three individuals in the parking lot of a bar and grill, resulting in one death. In 2021, the office also secured multiple guilty pleas in these cases, including a guilty plea by a defendant who admittedly sold fentanyl that resulted in the death of a high school student knowing the individual was, in fact, a high school student.
- The office also pursued civil cases against doctors who, even in this climate of heightened awareness of the dangers of opioids, continue to overprescribe opioids. San Diego area pain clinic doctor Brenton Wynn, M.D., paid $200,000 to resolve allegations that he illegally prescribed opioids and other dangerous drugs to his patients. The civil settlement stems from the United States’ continued efforts to combat the opioid epidemic on all fronts, including this investigation of whether Dr. Wynn illegally prescribed opioids to his patients in violation of the Controlled Substances Act.
Also in 2021, the office prosecuted cases with worldwide impact – from Chinese hackers to corrupt Navy officials to criminal syndicates around the globe who used encrypted devices to go under the radar of law enforcement. The 500-plus arrests that took place during a worldwide two-day takedown in June were possible because of this unprecedented San Diego-based investigation. For the first time, the FBI operated its own encrypted device company, called “ANOM.” During the course of the investigation, while ANOM’s criminal users unknowingly promoted and communicated on a system operated by the FBI, agents catalogued more than 27 million messages between users around the world who had their criminal discussions reviewed, recorded, and translated by the FBI, until the platform was taken down. “It has been my pleasure to lead such a talented and dedicated group of professionals,” Grossman said. “I want to applaud all the lawyers and staff in our office, as well as our law enforcement partners, who continue to protect and achieve justice for our community. All of us in law enforcement are committed to maintaining public safety as we move forward and the pandemic hopefully becomes a distant memory.”
Tyler Man Indicted for Using Stolen Valor to Defraud InvestorsRead the Press Release
TYLER, Texas – A federal grand jury has returned a 33-count indictment charging a Tyler man for fraud schemes in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Derek Robert Hamm, 38, was named in an indictment returned by a federal grand jury in Tyler charging him with wire fraud, money laundering, violations of the Stolen Valor Act, using a fraudulent military discharge certificate, and being a felon in possession of firearms and ammunition. The Stolen Valor Act of 2013 makes it illegal to fraudulently wear medals, embellish rank, or make false claims of military service to obtain money, employment, property, or some other tangible benefit.
According to the indictment, Hamm held himself out to be a former member of the Army Special Forces who had served multiple tours of duty in Iraq, Afghanistan, and other countries. He claimed to have been awarded a Purple Heart, a Silver Star, and a Bronze Star for his service. In reality, Hamm received none of those awards. Hamm also falsely claimed to be related to Harold Hamm, the billionaire oilman in Oklahoma, which he claimed gave him access to financial resources and oil industry expertise.
The indictment alleges that Hamm’s persona of being a wealthy war hero helped him create an extensive network of friends who introduced him to potential investors. Hamm then defrauded those investors in schemes related to the oil and gas drilling industry. Hamm did not invest funds as promised. Instead, once Hamm received investors’ funds, he spent the money on lavish personal gifts, including nearly $500,000 on jewelry and vehicles for himself and his family.
The indictment also alleges that Hamm was a prohibited person in possession of firearms and ammunition. Hamm was convicted in Smith County in 2020 for theft of property, a state felony. As a felon, Hamm is prohibited by federal law from owning or possessing firearms or ammunition. Hamm was also convicted in 2005 for assault of a family member, a domestic violence misdemeanor under state law. According to federal law, Hamm is also prohibited from possessing firearms or ammunition due to his domestic violence conviction.
If convicted, Hamm faces up to twenty years in federal prison.
If you or someone you know has been a victim of Derek Robert Hamm, please contact the Federal Bureau of Investigation at 903-594-3503. Derek Robert Hamm is also known as D. Wayne Hamm II, Wayne Hamm, D. Wayne H., DW Hamm, and RD Hamm.
This case was prosecuted as part of the Project Safe Neighborhoods Initiative. Project Safe Neighborhoods is aimed at reducing gun and gang violence; deterring illegal possession of guns, ammunition, and body armor; and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state, and local law enforcement agencies.
This case is being investigated by the Federal Bureau of Investigation’s Tyler Field Office, with assistance from the Tyler Police Department, the Smith County Sheriff’s Office, the Phoenix Arizona Police Department, Smith County Adult Probation, the Texas Railroad Commission-Enforcement Division, Department of Veteran’s Affairs-Office of Inspector General, Texas Comptroller of Public Accounts-Criminal Investigation Division, and the United States Special Operations Command. This case is being prosecuted by Assistant U.S. Attorneys Robert Austin Wells and Ryan Locker.
A grand jury indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
###
Three Men Sentenced to Federal Prison for Stealing Unemployment Insurance BenefitsRead the Press Release
Miami, Florida – A federal district judge in Fort Lauderdale has sentenced three South Florida residents to prison terms for their roles in a conspiracy to defraud the State of Michigan of more than $250,000 in unemployment insurance benefits.
Mervin Mompremier, 29, of Fort Lauderdale, and Sean Damine Ackeem Jermaine Brown, 35, of Fort Lauderdale, were sentenced on January 19, to terms of imprisonment of 65 months and 16 months, respectively. Robert G. Jean-Baptiste, 32, of Plantation, was sentenced on December 7, 2021, to a term of 21 months’ imprisonment. The sentences include joint and several restitution in the amount of $269,720.70 and forfeiture.
According to court documents, the defendants carried out the conspiracy by using personally identifiable information (PII) of approximately 200 individuals to electronically file false and fraudulent unemployment insurance claims with the Michigan Department of Labor and Economic Opportunity (MI-DLEO). The defendants opened bank accounts to receive the proceeds of the fraudulent unemployment insurance claims, directed payment to those accounts, and withdrew such proceeds in cash using automated teller machines located throughout South Florida.
The defendants previously pleaded guilty to conspiracy to commit wire fraud. Mompremier also pleaded guilty to aggravated identity theft. United States District Judge William P. Dimitrouleas imposed the sentence.
Juan Antonio Gonzalez, United States Attorney for the Southern District of Florida, and Mathew Broadhurst, Acting Special Agent in Charge, Atlanta Region, U.S. Department of Labor Office of Inspector General (DOL-OIG), made the announcement.
DOL-OIG investigated this case, with assistance from MI-DLEO. Assistant U.S. Attorney David A. Snider prosecuted the case. Assistant U.S. Attorney Gabrielle Charest-Turken is handling asset forfeiture.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 21-cr-60215.
###
Texas man sentenced for role in drug distribution operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Michael Alcendor, of Houston, Texas, was sentenced today to 70 months of incarceration for his role in methamphetamine, crack cocaine, fentanyl, and heroin drug distribution operation, United States Attorney William Ihlenfeld announced.
Alcendor, age 20, pleaded guilty in June 2021 to one count of “Conspiracy to Distribute Controlled Substances,” one count of “Distribution of Fentanyl,” and one count of “Possession with Intent to Distribute Methamphetamine.” Alcendor admitted to working with others to distribute methamphetamine, crack cocaine, fentanyl, and heroin from the spring of 2018 to October 2020 in Monongalia County and elsewhere.
Assistant U.S. Attorneys Zelda E. Wesley and Sarah E. Wagner prosecuted the case on behalf of the government. The FBI's Northern West Virginia Drug Task Force in partnership with the Mon Metro Drug Task Force, a HIDTA-funded initiative, investigated. The Task Forces have members from the Federal Bureau of Investigation; the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; West Virginia State Police; Monongalia County Sheriff's Office; and, the Morgantown, WVU, Granville and Star City Police Departments. The investigation was also assisted by the following law enforcement partners: the Monongalia County Prosecutor’s Office, the FBI in Houston, Texas; the Houston Police Department's Multi Agency Gang Initiative; the United States Postal Inspection Service in Houston; and, the FBI and DEA in Los Angeles, California.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
U.S. District Judge Thomas S. Kleeh presided.
Tampa Accountant Pleads Guilty to Plotting A Murder-For-HireRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that DeAnna Marie Stinson (50, Tampa) has pleaded guilty to murder-for-hire. She faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set.
According to court documents, on June 24, 2021, Stinson created an account on a dark web website (“The Website”) that purported to provide murder-for-hire services to its customers. The following day, Stinson submitted an “order” requesting that a hitman be assigned to complete a “quick hit in southern Florida” to kill the spouse of Stinson’s former significant other. In the order, Stinson provided the victim’s name, address, and a photograph of the victim. Between June and July 2021, Stinson sent four additional orders and more than $12,000 in Bitcoin to effectuate the hit. During this time, Stinson repeatedly messaged administrators of The Website and purported hitmen requesting that the “job” be completed as soon as possible and even offered a “bonus” if the hit was completed by a specific date. When Stinson had not received a status update from the administrators of The Website, on July 31, 2021, Stinson requested that the administrators “reassign the job to someone who has a history of getting jobs done” because she “need[ed] th[e] job done ASAP.”
Law enforcement agents received information regarding Stinson’s criminal activity and obtained records from her virtual currency exchange account. The records showed that Stinson had paid Bitcoin to The Website. An agent contacted Stinson while acting in an undercover capacity as a hitman for The Website. In a recorded phone call, Stinson confirmed that she wanted the victim killed and agreed to send additional money to the undercover agent via Bitcoin so that the transaction could not be traced. On September 13, 2021, Stinson sent $350 in Bitcoin to the undercover agent so that the agent could purchase a revolver to commit the murder.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Lisa M. Thelwell.
Statement from U.S. Attorney Rachael S. Rollins on the Dismissal of the Gang Chen CaseRead the Press Release
“Today’s dismissal of the criminal charges against Gang Chen is a result of our continued investigation into this matter. Through that effort, we recently obtained additional information pertaining to the materiality of Professor Chen’s alleged omissions in the context of the grant review process at issue in this case. After a careful assessment of this new information in the context of all the evidence, our office has concluded that we can no longer meet our burden of proof at trial. As prosecutors, we have an obligation in every matter we pursue to continually examine the facts while being open to receiving and uncovering new information. We understand that our charging decisions deeply impact people’s lives. As United States Attorney, I will always encourage the prosecutors in our office to engage in this type of rigorous and continued review at every stage of a proceeding. Today’s dismissal is a result of that process and is in the interests of justice.”
St. Paul Man Sentenced to 138 Months in Prison for Cocaine PossessionRead the Press Release
MINNEAPOLIS – A St. Paul man was sentenced to 138 months in prison, followed by five years of supervised release for drug possession with intent to distribute, announced Acting U.S. Attorney Charles J. Kovats.
According to court documents, during the early morning hours of November 1, 2019, officers with the St. Paul Police Department initiated a traffic stop of John Sheldon Pickens, Jr.’s vehicle. Pickens, 36, initially pulled his vehicle over but then accelerated away and led police on a high-speed chase for several miles through the city of St. Paul. Officers were ultimately able to stop him on the Lafayette Bridge and take him into custody. Officers searched the vehicle and found six packages of cocaine that had a combined weight of approximately six kilograms.
Pickens was sentenced today by U.S. District Court Judge Ann D. Montgomery. He was convicted by a federal jury on June 24, 2021, of one count of possession with intent to distribute cocaine.
This case was the result of an investigation conducted by the Homeland Security Investigations, the Saint Paul Police Department, and the Minnesota State Patrol.
This case was tried by Assistant U.S. Attorneys Amber M. Brennan and Joseph S. Teirab.
###
South Korean National Sentenced to Two Years in Prison for Attempting to Illegally Export to Asia Poached Wild Succulent PlantsRead the Press Release
LOS ANGELES – A South Korean national was sentenced today to 24 months in federal prison for attempting to illegally export to Asia live Dudleya succulent plants worth at least $150,000 that he and his co-schemers had pulled out of the ground at remote state parks in Northern California.
Byungsu Kim, 46, was sentenced by United States District Judge George H. Wu, who also ordered him to pay $3,985 in restitution to the State of California for expenses related to replanting the stolen plants after his arrest. Kim pleaded guilty in September 2021 to one count of attempting to export plants taken in violation of state law.
On October 11, 2018, Kim and co-defendants Youngin Back, 47, and Bong Jun Kim, 46, traveled by car from Los Angeles International Airport to Crescent City, California. From October 14 to October 16, Kim and the co-defendants harvested numerous Dudleya plants from DeMartin State Beach in Klamath, California, and from Del Norte Coast Redwoods State Park.
Kim knew the taking of the Dudleya plants was unlawful. He had conducted internet searches on his smartphone for “poaching succulents” and “dudleya” and had read a press release regarding the arrest and convictions of three other Dudleya poachers.
On October 22, 2018, Kim and the co-defendants traveled from Northern California to a nursery in Vista and unloaded the Dudleya plants that they had poached during the previous week. The following day, the men traveled to Russian Gulch State Park in Mendocino County, where, wearing backpacks and using hand-held radios to communicate, they pulled additional Dudleya plants out of the ground before returning once again to the Vista nursery.
Prior to the plants’ shipment, Kim scheduled an inspection with a county agriculture official at the Vista nursery and falsely told her the government-issued certificate necessary for the plants’ exportation should list 1,397 Dudleya plants (259 pounds/117.5 kilograms) for export to South Korea and that the “place of origin” of the plants was San Diego County.
The defendants then transported the plants to a commercial exporter in Compton, to whom Kim intended to present the fraudulently obtained certificate so the Dudleya plants could be smuggled to South Korea. When the defendants left, local law enforcement executed a search warrant at the cargo shipping company and found 3,715 Dudleya plants in boxes that were labeled “Rush” and “Live Plants.” These were the plants the defendants had pulled out of the ground from public lands in Northern California.
At the time that Kim and the co-defendants engaged in the illegal conduct, they did not have a scientific permit nor a federal permit that would allow them to harvest Dudleya plants. Kim also admitted to being the scheme’s organizer.
Although California law enforcement officials had confiscated Kim’s passport following his arrest on state charges relating to his October 2018 conduct, Kim fraudulently obtained a new South Korean passport in January 2019 by falsely claiming to the South Korean Consulate in Los Angeles that he had lost his passport.
In May 2019, soon after Kim learned of the federal criminal charges pending against him in this case, he and Back fled to Mexico on foot through the Tijuana-San Ysidro border crossing. Using his fraudulently obtained passport, Kim then flew with Back from Mexico to China, and then flew from China to South Korea.
Kim was arrested in South Africa in October 2019 for charges related to a similar scheme in which he illegally collected plants from protected areas in that nation to export to South Korea. Kim pleaded guilty to the criminal charges in South Africa and was extradited to the United States in October 2020 after spending a year in custody there. He has remained in federal custody since October 2020.
“[Kim’s] willful criminal conduct in October 2019 was not an isolated event: he had carried out the same scheme repeatedly in California,” prosecutors wrote in a sentencing memorandum. “[Kim] had traveled to the United States more than 50 times since 2009. Customs records show that he was travelling for succulent-related purposes and often with tens of thousands of dollars in cash (sometimes declared, sometime not) and fake phytosanitary certificates.”
Bong Jun Kim pleaded guilty in July 2019 to one count of attempting to export plants taken in violation of state law. He served four months in federal custody and was released in October 2019 after Judge Wu imposed a sentence of time served.
Back remains a fugitive.
The California Department of Fish and Wildlife, the United States Fish and Wildlife Service, Homeland Security Investigations, U.S. Customs and Border Protection, San Diego County’s Department of Agriculture, Weights and Measures, the U.S. Department of Agriculture, and the California State Parks investigated this matter. The Justice Department’s Office of International Affairs provided significant assistance in securing the defendant’s extradition from South Africa.
Assistant United States Attorneys Matthew W. O’Brien and Dennis Mitchell of the Environmental and Community Safety Crimes Section prosecuted this case.
South Burlington Man Charged with Distribution of MethamphetamineRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Quenton Dodson, 33, of South Burlington, Vermont, has been charged by criminal complaint in federal court with one count of distribution of methamphetamine.
Court records show that Dodson has been the subject of an ongoing investigation conducted by the Burlington Police Department. When he was arrested on Friday within his Farrell Street apartment in South Burlington, police found more than $10,000 in cash, some of which was used to purchase methamphetamine from a person working with police. Police also found additional quantities of suspected methamphetamine, crack cocaine, fentanyl, and other paraphernalia. Police also found a loaded 40 caliber handgun. Dodson was initially charged with state offenses, and at his arraignment in Chittenden Superior Court on Tuesday, Dodson was ordered released on conditions.
Federal charges were filed against Dodson on Tuesday, and he had his initial appearance in federal court before United States Magistrate Judge Kevin J. Doyle this afternoon. Judge Doyle granted the United States’ motion asking that Dodson be detained, and ordered that Dodson remain in the custody of the United States Marshal’s Service. The next hearing in this case is scheduled for January 31, 2022.
“For Burlington, this was a significant narcotics seizure,” said acting Burlington Chief of Police Jon Murad. “Detectives from the Burlington Police Department and federal partners did excellent work building this case and making this arrest. When the court decided to release Mr. Dodson on conditions, we were gratified that our partners at the DEA, ATF, and U.S. Attorney’s office were able to step in with federal charges.”
The complaint is an accusation only and the defendant is presumed innocent until and unless proven guilty. If convicted of the offense charged in the complaint, Dodson would face a maximum possible prison sentence of 20 years.
The Burlington Police Department was assisted by the United States Bureau of Alcohol, Tobacco, Firearms and Explosives, and the United States Drug Enforcement Administration.
United States Attorney Nikolas P. Kerest commended the investigatory efforts of the Burlington Police Department and the collaboration with the United States Bureau of Alcohol, Tobacco, Firearms and Explosives and the United States Drug Enforcement Administration.
Dodson is represented by Assistant Federal Public Defender Steven Barth. The prosecutor is Assistant United States Attorney Michael Drescher.
Smuggler that led police on chase sentenced to significant prison termRead the Press Release
McALLEN, Texas – A 37-year-old Sullivan City resident has been ordered to federal prison after harboring individuals illegally in the country in harsh living conditions, announced U.S. Attorney Jennifer B. Lowery.
Emanuel Salinas Pleaded guilty May 14, 2021.
Today, U.S. District Judge Randy Crane ordered he serve a total of 100 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the court heard about the harsh living conditions to which the individuals were subjected. Judge Crane also considered the fact that some of them were unaccompanied minors, his record of convictions as well as the vehicle chase, during which he caused a collision.
On Feb. 23, law enforcement was conducting surveillance of a residence suspected of harboring undocumented aliens in Edinburg. There, they observed a silver Jeep Grand Cherokee arrive and park outside the residence. Salinas was later determined to be the driver. Several individuals exited the residence and entered the Jeep, which departed and began travelling northbound before stopping at a parking area in San Carlos.
They attempted to conduct a consensual encounter with Salinas, but he immediately fled. He soon led authorities on a 20-mile vehicular pursuit. He did allow four people to exit the vehicle, but still had two others inside, one of whom was an unaccompanied minor. He then continued traveling in excess of 100 mph while weaving through traffic.
He ultimately collided with another vehicle in Edinburg.
Salinas admitted multiple aliens remained behind at the residence. Authorities discovered an additional 26 people, including another unaccompanied minor. The Edinburg location had foul conditions, to include trash piled up in the rooms and its septic tank overflowing onto the neighboring property.
Salinas has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility o be determined in the near future.
Customs and Border Protection conducted the investigation with the assistance of the Texas Department of Public Safety. Assistant U.S. Attorney Peter Brostowin prosecuted the case.
Sioux Falls Man Indicted for Failure to Register as a Sex OffenderRead 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 Failure to Register as a Sex Offender.
Cletus Gerald Williams, III, a/k/a C.J. Williams, age 25, was indicted on January 11, 2022. He appeared before U.S. Magistrate Judge Mark A. Moreno on January 14, 2022, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, five years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Williams was convicted of Sexual Abuse of a Minor in April 2017. As a result of this conviction, he is required to register as a sex offender. It is alleged that between October 28, 2021, and January 4, 2022, Williams, 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 Williams is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Williams was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Sioux City-Based Physician Group, Tri-State Specialists, L.L.P., Agrees to Pay over $600,000 to Resolve False Claims Act AllegationsRead the Press Release
Tri-State Specialists, L.L.P. (Tri-State), has agreed to pay $612,501.44 to the United States, the State of Iowa, and the State of South Dakota to resolve allegations that it violated the False Claims Act by billing Medicare, Medicaid, TRICARE, and the Federal Employees Health Benefits Program for medically unnecessary procedures and for procedures in excess of those actually performed.
The government alleged that, from August 2014 until August 2019, Tri-State submitted false claims for payment to government healthcare programs for surgical procedures and office visits performed by a plastic surgeon who previously was a partner with Tri-State. The government contended that claims submitted during this period violated the False Claims Act in three ways. First, the government alleged that the surgeon performed cosmetic procedures not reimbursable by government healthcare programs, including panniculectomies and abdominoplasties (also known as tummy tucks) and cosmetic breast reductions, that were falsely billed as medically necessary procedures. Second, the government alleged that the surgeon did not perform services sufficient to justify billing for high-value muscle flap and adjacent tissue transfer surgical procedures. Third, the government alleged that the surgeon did not perform services sufficient to bill for high-value office visits that require a comprehensive exam, comprehensive history, and detailed supporting documentation for patients that require moderately or highly complex medical decision making.
The United States alleged that Tri-State was liable for the surgeon’s acts both because the surgeon was an agent of Tri-State and because Tri-State knew of the surgeon’s acts.
“False Claims Act investigations and enforcement are critical in protecting the government healthcare programs upon which millions of Americans depend. We will continue to vigorously investigate allegations of over-billing and medically unnecessary services in this district,” said United States Attorney Sean Berry.
“We work tirelessly alongside our law enforcement partners to investigate allegations of false billing and to ensure the appropriate use of U.S. taxpayer dollars,” said Curt L. Muller, Special Agent in Charge with the U.S. Department of Health and Human Services Office of Inspector General. “Excessive claims to Federal healthcare programs compromise the efficiency of these programs and deprive these programs of critical resources.”
“As the investigative arm of the Department of Defense’s Office of Inspector General (DoD IG), one of the primary missions of the Defense Criminal Investigative Service (DCIS) is to safeguard valuable taxpayer dollars that fund programs such as Tricare, the military’s health care system,” said Acting Special Agent in Charge Gregory P. Shilling of the DCIS Southwest Field Office. “Today’s settlement is a testament to the resolve of our agents and our partners in investigating allegations of false claims and protecting taxpayer dollars.”
“The integrity of the Federal healthcare programs is threatened when providers submit false claims,” said Amy K. Parker, Special Agent in Charge with the Office of Personnel Management, Office of the Inspector General (OPM OIG). “The OPM OIG is committed to working closely with our law enforcement partners in order to investigate allegations of fraud in order to protect taxpayer funds.”
This civil matter arose from an action brought under the whistleblower provisions of the False Claims Act. Pursuant to that Act and the settlement agreement, the whistleblower will share in the United States’ financial recovery.
The claims asserted against Tri-State are allegations only; there was no determination or admission of liability.
The case was handled by Assistant United States Attorneys Melissa A.
Carrington and Matthew K. Gillespie and the State of Iowa Attorney General’s Office and investigated by the United States Department of Health and Human Services, Office of Inspector General; the United States Department of Defense Office of Inspector General, Defense Criminal Investigative Service; the United States Office of Personnel Management, Office of the Inspector General; and the State of Iowa’s Medicaid Fraud Control Unit.
Follow us on Twitter @USAO_NDIA.
Seven Texas Doctors and a Hospital CEO Agree to Pay over $1.1 Million to Settle Kickback AllegationsRead the Press Release
SHERMAN, Texas – Seven Texas doctors and a hospital executive have agreed to pay a total of $1,106,449 to resolve False Claims Act allegations involving illegal remuneration in violation of the Anti-Kickback Statute and Stark Law, and to cooperate with the Department’s investigations of and litigation against other parties, announced Eastern District of Texas U.S. Attorney Brit Featherston today.
“Paying kickbacks to physicians distorts the medical decision-making process, corrupts our healthcare system, and increases the cost of healthcare funded by the taxpayer,” said U.S. Attorney Brit Featherston. “Laboratories, marketers, and physicians cannot immunize their conduct by attempting to disguise the kickbacks as some sort of investment arrangement. Our office is committed to looking through the disguise and putting an end to any arrangement where the purpose is to improperly influence medical decision making through the payment of kickbacks.”
The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid, and other federally funded programs. The Stark Law forbids a hospital or laboratory from billing Medicare for certain services referred by physicians that have a financial relationship with the hospital or laboratory. The Anti-Kickback Statute and the Stark Law are intended to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients.
The settlements announced today resolves allegations that seven Texas doctors received thousands of dollars in illegal remuneration from eight management service organizations (MSOs) in exchange for ordering laboratory tests from Rockdale Hospital d/b/a Little River Healthcare (Little River), True Health Diagnostics LLC (True Health), and Boston Heart Diagnostics Corporation (Boston Heart). Little River allegedly funded the illegal remuneration to the doctors, in the form of volume-based commissions paid to independent contractor recruiters, who used MSOs to pay numerous doctors for their referrals. The MSO payments to the doctors were allegedly disguised as investment returns but in fact were based on, and offered in exchange for, the doctors’ referrals.
- Jaspaul Bhangoo, M.D., of Denton, Texas, agreed to pay $125,625 to settle allegations that (a) True Health paid him kickbacks from January 1, 2015 to December 1, 2015; and (b) True Health referred him to an MSO, established by Little River marketers, which paid him MSO kickbacks from June 14, 2016 to September 16, 2016.
- Robert Megna, D.O., of Ferris, Texas, agreed to pay $232,000 to settle allegations that from February 2, 2016 to December 31, 2017 he received kickbacks from (a) one MSO, Ascend MSO of TX, LLC, in exchange for ordering Boston Heart laboratory tests from Little River; and (b) another MSO, Geminorium MG LLC, in exchange for ordering laboratory tests from Boston Heart.
- Baxter Montgomery, M.D., of Houston, Texas, and his professional association B-Saz, P.A., agreed to pay $60,000 to settle allegations that from December 29, 2015 to February 3, 2018 he received kickbacks from (a) one MSO, Ascend MSO of TX, LLC, in exchange for ordering True Health laboratory tests from Little River; and (b) another MSO, Indus MG LLC, in exchange for ordering laboratory tests from True Health.
- Murtaza Mussaji, D.O., of Houston, Texas, agreed to pay $215,000 to settle allegations that from August 7, 2015 to November 14, 2017 he received kickbacks from (a) one MSO, SYNRG Partners LLC, in exchange for ordering True Health laboratory tests from Little River; and (b) another MSO, Catalyst Health Partners LP, in exchange for ordering laboratory tests from True Health.
- David Sneed, D.O., of Austin, Texas, agreed to pay $200,000 to settle allegations that from September 30, 2015 to December 23, 2016 he received kickbacks from an MSO, Alpha Rise Health LLC, in exchange for ordering True Health and Boston Heart laboratory tests from Little River.
- Kevin Lewis, D.O. of Houston, Texas, agreed to pay $57,324 to settle allegations that from June 24, 2015 to April 20, 2016, he received kickbacks from an MSO, Alpha Rise Health, LLC, in exchange for ordering Little River and Boston Heart laboratory tests.
- Angela Mosley-Nunnery, M.D. of Kingwood, Texas, agreed to pay $166,500 to settle allegations that from April 12, 2016 to June 14, 2018 she received kickbacks from one MSO, North Houston MSO Group, Inc. and another MSO, Tomball Medical Management, in exchange for ordering laboratory tests from Little River and True Health.
As part of their settlements, the physicians have agreed to cooperate with the Department of Justice’s investigations of and litigation against other parties involved in the alleged violations of law.
In addition, the United States announced a settlement with Richard DeFoore of Anson, Texas, the former Chief Executive Officer of Jones County Regional Healthcare d/b/a Stamford Memorial Hospital (Stamford), which was a small hospital in Stamford, Texas. In late 2015 and early 2016, DeFoore allegedly was approached by representatives of True Health and a partner company, who proposed an arrangement by which Stamford could profit by billing for diagnostic laboratory tests. Under the arrangement, which expanded to include Boston Heart tests, Stamford allegedly coordinated with True Health and Boston Heart representatives and paid volume-based commissions to independent contractor recruiters, who used MSOs to make payments to doctors that were disguised as investment returns but in fact were based on, and offered in exchange for, the doctors’ referrals. Pursuant to the alleged arrangement, Stamford billed the resulting claims to commercial insurers and True Health and Boston Heart billed the resulting claims to Medicare and other federal healthcare programs. Under the terms of the settlement agreement, DeFoore agreed to pay $50,000, to cooperate with the Department’s investigations of and litigation against other parties, and to be excluded from participation in federal healthcare programs for three years.
“Medical professionals who seek to enrich themselves through kickback schemes undermine federal health care programs and increase health care costs for everyone,” said Special Agent in Charge Miranda L. Bennett of the U.S. Department of Health and Human Services Office of Inspector General. “This settlement demonstrates our commitment to working with our state and federal law enforcement partners to investigate such allegations of fraud.”
“As the investigative arm of the Department of Defense's Office of Inspector General (DoD IG), one of the primary missions of the Defense Criminal Investigative Service (DCIS) is to safeguard the military's valuable health care system commonly known as Tricare," said Acting Special Agent in Charge Gregory P. Shilling of the DCIS Southwest Field Office. "DCIS will continue to aggressively investigate allegations of kickbacks that undermine the integrity of Tricare and the health care provided to our service members, retirees and their families."
“The Stark Law and the Anti-Kickback Statute are designed to protect the integrity of federal healthcare programs,” said Special Agent in Charge Jeffrey Breen of the Department of Veterans Affairs Office of Inspector General’s South Central Field Office. “The VA OIG is pleased to have been able play a role in this case and work with the U.S Attorney’s office to hold accountable those who seek to defraud taxpayer-funded healthcare programs.”
“We are grateful for the efforts of the U.S. Attorney’s Office, the Health and Human Services Office of the Inspector General, and the Defense Criminal Investigative Service. The service members and families that have and continue to serve our Nation depend on the integrity of the healthcare system,” said Lt. Gen. Ronald Place, Director of the Defense Health Agency. “By rooting out instances where that integrity is threatened, we honor that service.”
The civil settlements were the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Texas and the Civil Division’s Commercial Litigation Branch, Fraud Section, with assistance from HHS-OIG, DCIS, and VA-OIG. As a result of its efforts, the United States has recovered more than $27.76 million relating to conduct involving Boston Heart, True Health, and Little River, including False Claims Act settlements with Boston Heart for $26.67 million in November 2019 and with Dr. Bibi Tasleyma Sattar and Oakmont Wellness Center, PA for $210,000 in July 2020. This matter and the related matters were handled by Assistant U.S. Attorneys James Gillingham, Adrian Garcia, and Betty Young and Senior Trial Counsel Christopher Terranova.
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 1-800-HHS-TIPS (800-447-8477).
The claims resolved by the settlements are allegations only, and there has been no determination of liability.
####
Settlement Agreement Reached with Brown Dermatology to Improve Services to Patients Who Are Deaf or Hard of HearingRead the Press Release
PROVIDENCE, R.I. – The United States Attorney’s Office announced today that Brown Dermatology has agreed to resolve allegations that it violated the Americans with Disabilities Act (ADA) in its care and treatment of patients who are deaf or hard of hearing. Brown Dermatology is a private medical practice that provide clinical services at 10 locations across Rhode Island.
The U.S. Attorney’s Office began the investigation after a complainant alleged that Brown Dermatology failed to provide her family member, who is deaf, with sign-language interpreters during scheduled medical appointments. As a result, the complainant alleged that she was forced to interpret for her family member’s medical appointments, a position for which she is not qualified. The U.S. Attorney’s Office investigated and found that Brown Dermatology failed to provide the deaf patient with a qualified sign language interpreter necessary to provide effective communication for at least 12 medical appointments between 2018 and 2021. The investigation also revealed that Brown Dermatology failed to provide at least seven other deaf patients with a qualified sign language interpreter necessary to ensure effective communication during their medical appointments.
Under the settlement signed today, Brown Dermatology agreed to: (1) adopt policies and procedures that ensure that individuals who are deaf or hard of hearing receive auxiliary aids and/or services (including sign language interpreters when necessary) that ensure effective communication; (2) train its staff on the ADA’s effective communication requirements; and (3) pay $31,000 in settlement. Under the terms of the agreement, $17,500 will be paid to the patient who is deaf; $3,500 will be paid to her family member (for association discrimination), and $10,000 will be paid as a civil penalty to the United States. Brown Dermatology fully cooperated with the investigation and settlement of this matter.
The case was handled by Assistant United States Attorney Amy Romero in coordination with the Disability Rights Section of the Civil Rights Division of the United States Department of Justice.
The U.S. Attorney’s Office for the District of Rhode Island is committed to investigating alleged violations of the Americans with Disabilities Act. The Department of Justice has a number of publications available to assist entities in complying with the ADA, including a Business Brief on Communicating with People Who Are Deaf or Hard of Hearing in Hospital Settings, at www.ada.gov/hospcombr.htm. For more information on the ADA and to access these publications, visit www.ada.gov or call the Justice Department’s toll-free ADA information Line at 800-514-0301 or 800-514-0383 (TTY).
Any member of the public who wishes to file a complaint alleging that the office of a health care provider or any other place of public accommodation or public entity in Rhode Island is not accessible to persons with disabilities may contact the U.S. Attorney’s Office at https://www.justice.gov/usao-ri/civil-rights-enforcement or 401-709-5000.
###
Second Man Charged in Connection with Plot to Kill Haitian PresidentRead the Press Release
A dual Haitian-Chilean citizen was arrested yesterday based on criminal charges related to his alleged involvement in the assassination of the former President of Haiti, Jovenel Moise, on July 7, 2021.
Rodolphe Jaar, 49, is charged with conspiring to commit murder or kidnapping outside the United States and providing material support resulting in death, knowing or intending that such material support would be used to prepare for or carry out the conspiracy to kill or kidnap. Jaar is the second individual to be charged and arrested in the United States for his role in the assassination plot.
As alleged in the complaint, which was unsealed yesterday, the defendant and others — including a group of approximately 20 Colombian citizens and a number of dual Haitian-American citizens — participated in a plot to kidnap or kill the Haitian President. In particular, as alleged, Jaar was present when another conspirator (“Co-conspirator #1”) secured the signature of a former Haitian judge on a written request for assistance to further the arrest and imprisonment of President Moise. According to the complaint, on June 28, 2021, Co-conspirator #1, a dual Haitian-American citizen traveled from Haiti to the United States in furtherance of the conspiracy and provided other individuals with the document, and flew from Florida back to Haiti on July 1, 2021, to participate in the operation against the president.
As alleged in the complaint, while the plot initially focused on conducting a kidnapping of the Haitian President as part of a purported arrest operation, it ultimately resulted in a plot to kill the president. The complaint alleges that on July 7, 2021, various co-conspirators entered President Moise’s residence in Haiti with the intent and purpose of killing him, and in fact the president was killed.
As alleged in the complaint, Jaar was responsible for providing weapons to the Colombian co-conspirators to facilitate carrying out the operation; several of the Colombian co-conspirators also stayed at a residence controlled by Jaar. After the assassination, Jaar allegedly communicated with Co-conspirator #1 and others to assist the Colombians and Co-conspirator #1 while they were in hiding from Haitian authorities.
Co-conspirator #1 was subsequently arrested by Haitian authorities and remains in custody in Haiti. Jaar was arrested in the Dominican Republic and agreed to travel to the United States. He is currently in custody and will appear at 1:30 p.m. ET today in Miami before U.S. Magistrate Judge Lauren Louisin of the Southern District of Florida for his initial appearance.
If convicted of the charges in the complaint, Jaar faces a maximum sentence of life imprisonment. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida, Special Agent in Charge George Piro of the FBI’s Miami Field Office and Special Agent in Charge Anthony Salisbury of Homeland Security Investigations (HSI) Miami Office made the announcement.
The FBI and HSI are investigating the case with other law enforcement partners.
Assistant U.S. Attorneys Andrea Goldbarg and Walter Norkin for the Southern District of Florida are prosecuting the case, with assistance from National Security Division Trial Attorneys Frank Russo, Jessica Fender and Emma Ellenrieder. The Justice Department’s Office of International Affairs provided valuable assistance. Dominican authorities provided significant assistance in securing the return of Jaar to the United States.
A criminal complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Santa Fe man facing federal firearms charges after shooting incidentRead the Press Release
ALBUQUERQUE, N.M. – Gilbert Michael Coriz, 35, of Santa Fe, New Mexico, appeared in federal court on Jan. 19 for a detention hearing on a charge of being a felon in possession of firearms and ammunition. Coriz will remain in custody pending trial.
Coriz was indicted on Dec. 8, 2021, and arraigned on Jan. 18. According to the indictment and other court records, on Jan. 1, 2021, law enforcement responded to a report of shots fired at a residence on Camino Capitan. After obtaining a search warrant, officers cleared and searched the residence and found Coriz allegedly hiding in a water heater closet in the garage. Officers also found three firearms and various types of ammunition.
Coriz was previously convicted of aggravated battery, felon in possession of a firearm, tampering with evidence, possession of a controlled substance and residential burglary. As a previously convicted felon, Coriz cannot legally possess firearms or ammunition.
A complaint is only an allegation. A defendant is considered innocent unless and until proven guilty. If convicted, Coriz faces up to 10 years in prison.
The Santa Fe Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Santa Fe Police Department. Assistant United States Attorney Samuel A. Hurtado is prosecuting the case.
San Diego Pharmacy Pays $105,000 Penalty for Illegitimately Dispensing OpioidsRead the Press Release
SAN DIEGO – San Diego’s Balboa Pharmacy has paid $105,000 to resolve allegations that it illegally dispensed opioids and other dangerous drugs to its patients, according to a settlement agreement signed by Balboa Pharmacy and the United States. The settlement stems from the United States’ continued efforts to combat the opioid epidemic on all fronts, including this investigation of whether Balboa Pharmacy illegally dispensed opioids to its patients in violation of the federal Controlled Substances Act.
The Controlled Substances Act states that pharmacists have a responsibility to only fill prescriptions that are written for a legitimate medical purpose while acting in the usual course of professional practice. The United States alleged that Balboa Pharmacy failed to meet its responsibility when it filled opioid prescriptions without resolving—or often even attempting to resolve—“red flags” that the prescriptions raised. “Red flags” are indications that a prescription may be invalid. According to the settlement agreement, Balboa Pharmacy filled prescriptions without resolving the following commonly known red flags:
- large quantities of opioids well above guidelines for treating patients, which sometimes exceeded a daily Morphine Milligram Equivalent of 100;
- dangerous combinations of drugs, including duplicative therapy; opioids and benzodiazepines (e.g., Valium, Xanax); and opioids, benzodiazepines, and muscle relaxants (e.g., Soma), a combination that is colloquially referred to by drug abusers as the “trinity” because of the rapid euphoric effects of this combination of drugs;
- patients who received prescriptions from multiple prescribers, which sometimes were for the same types of controlled substances or for dangerous combinations of drugs; and
- filling prescriptions for patients early, which includes filling a patient’s prescription before the patient’s earlier prescription for the same drug ran out.
The investigation exemplifies the Department of Justice’s willingness to investigate pharmacies that may be filling dangerous prescriptions without first confirming the legitimacy of each prescription. Public health experts have long warned health care providers that overdose risk is elevated in patients receiving medically prescribed opioids, particularly those receiving high dosages. Pharmacists should carefully track the potency of opioids dispensed to patients by noting the Morphine Milligram Equivalent (MME, also commonly referred to as Morphine Equivalent Dose or MED) of prescribed opioids. Among other things, tracking MMEs advances better practices for pain management by reinforcing the need to consider alternatives to using high-dosage opioids to treat pain, and to appropriately justify decisions to use opioids at dosages that place patients at high risk of addiction, abuse, and overdose. Furthermore, dispensing high dosages increases the risk that patients will divert opioids.
“Pharmacies are the last line of defense protecting the public from addictive opioids and other controlled substances,” said U.S. Attorney Randy S. Grossman. “This office will pursue pharmacists who carelessly disregard red flags, opting instead to rubberstamp questionable prescriptions. We will continue to use all available tools to combat the serious opioid epidemic.” Grossman thanked the prosecution team and investigators for their excellent work on this case.
In addition to the settlement agreement, the DEA and Balboa Pharmacy entered into a Memorandum of Agreement in October 2021 in which Balboa Pharmacy agreed to, among other things, develop policies and procedures and training that address the identification and resolution of “red flags.”
“This investigation is a reminder that all pharmacies have a responsibility to ensure that prescriptions are issued for a legitimate medical purpose,” said DEA Special Agent in Charge Shelly S. Howe. “Failure to do so allows prescriptions to become subject to abuse and diversion, fueling the ongoing opioid epidemic. DEA will continue to hold pharmacies, such as Balboa Pharmacy, accountable.”
To report a tip directly to a DEA representative regarding medical personnel writing suspicious opioid prescriptions and pharmacies dispensing large amounts of opioids, call (571) 324-6499, or visit the DEA’s website (https://www.deadiversion.usdoj.gov/) and click on “Report Illicit Pharmaceutical Activities.”
Assistant U.S. Attorney Dylan M. Aste of the U.S. Attorney’s Office for the Southern District of California handled this matter along with DEA investigators.
The claims resolved by this settlement are allegations only and there has been no determination of liability.
Salem Drug Trafficker Sentenced to Federal PrisonRead the Press Release
PORTLAND, Ore.—On January 19, 2022, a Salem, Oregon man on federal supervised release was sentenced to federal prison after he was found in possession of more than 1.5 kilograms of methamphetamine and 15 firearms, five of which were stolen.
Jorge Mozqueda-Alvarez, 33, was sentenced to 151 months in federal prison and five years’ supervised release.
According to court documents, in September 2019, detectives from the Salem Police Department’s Street Crimes Unit (SCU) began investigating Mozqueda-Alvarez for drug trafficking in the Salem area. Officers conducted two separate controlled purchases of methamphetamine from Mozqueda-Alvarez. On October 15, 2019, SCU executed a search warrant on Mozqueda-Alvarez’s Salem residence and located more than 1.5 kilograms of methamphetamine and 15 firearms, five of which had been reported stolen. Mozqueda-Alvarez was arrested without incident.
On October 17, 2019, Mozqueda-Alvarez was charged by federal criminal complaint with illegally possessing a firearm as a convicted felon and possessing with intent to distribute methamphetamine. One week later, on October 24, 2019, a federal grand jury in Portland returned a four-count indictment charging him with distribution of methamphetamine, possession with intent to distribute methamphetamine and felon in possession of a firearm.
On December 18, 2020, Mozqueda-Alvarez pleaded guilty to possession with intent to distribute methamphetamine and felon in possession of a firearm. To resolve a separate criminal case, Mozqueda-Alvarez also pleaded guilty to illegal reentry.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the Salem Police Department with assistance from the FBI. It was prosecuted by the U.S. Attorney’s Office for the District of Oregon.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Rocky Hill Man Pleads Guilty to Fentanyl Distribution ChargeRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, announced that SEAN THOMAS, 32, of Rocky Hill, pleaded guilty today via videoconference to one count of possession with intent to distribute 40 grams or more of fentanyl.
According to court documents and statements made in court, in 2020, Hartford Police were investigating Thomas and others for distributing fentanyl and marijuana. As part of the investigation, an undercover officer purchased marijuana from an employee at Puff Paradise, a smoke shop on New Britain Avenue owned by Thomas. On June 2, 2020, in anticipation of executing multiple search warrants, investigators surveilled Thomas as he drove his car from his Rocky Hill residence to Kenneth Street in Hartford, where he entered a parked Dodge Durango. Believing that Thomas was conducting a narcotics transaction, detectives approached the Durango. Tafarie Green, the driver of the vehicle, accelerated and drove straight at the detectives who leaped out of the way. He then drove at a high rate of speed onto a sidewalk and through two chain link fences before he crashed into a tree. Green fled the scene on foot, but Thomas was immediately apprehended. A subsequent search of Puff Paradise revealed approximately three pounds of marijuana, and a search of Thomas’s residence revealed more than 100 grams of unpackaged fentanyl, approximately 3,500 bags of packaged fentanyl, items used to process and package narcotics for street sale, and $16,511 in cash.
Thomas is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant in Hartford on April 20, 2022, at which time he faces a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years.
Thomas is released on a $100,000 bond pending sentencing.
Green, who was on federal supervised release, was arrested on July 13, 2020. He pleaded guilty to possession of a firearm by a felon and, on August 31, 2021, was sentenced to 62 months of imprisonment.
This matter has been investigated by the Federal Bureau of Investigation’s Northern Connecticut Gang Task Force and the Hartford Police Department’s Vice, Intelligence and Narcotics Unit, with the assistance of the Connecticut Forensic Science Laboratory. The case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Registered Sex Offender Sentenced to Prison for Possessing Images of Child Sexual AbuseRead the Press Release
A Virginia man was sentenced today to 15 years in prison followed by a lifetime of supervised release for possessing images of the sexual abuse of children.
Ian Andrew Zearley, 40, of Louisa County, pleaded guilty to possession of obscene visual representations of the sexual abuse of children in July 2021. According to court documents, Zearley committed the offense while on supervised release for a previous conviction for possession of child exploitation materials. Following his prior conviction, law enforcement was monitoring Zearley’s computer usage pursuant to the terms of his supervised release. During the monitoring, law enforcement discovered that Zearley searched terms consistent with child sexual abuse, including “real hardcore child porn” and “boys severely whipped and bleeding.” Zearley also authored two stories that described, in graphic detail, the rape and abuse of young boys.
When law enforcement thereafter searched Zearley’s house, they found, in his basement, business cards stating Zearley was the president of the “Pedophile Associates of America,” electric shock equipment, pepper spray, a ski mask and pellet gun. Officers also found a list of children’s names, their ages and how Zearley knew each child. Children’s items, such as diapers, bottles and toys were also found, and Zearley’s computer contained eight computer-generated images depicting child sexual abuse.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division and U.S. Attorney Christopher R. Kavanaugh for the Western District of Virginia made the announcement.
The FBI investigated the case with support from the U.S. Probation Office and the U.S. Marshals Service.
Trial Attorney Charles Schmitz of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Kate Rumsey of the U.S. Attorney’s Office for the Western District of Virginia prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
Registered Sex Offender Sentenced to Prison for Possessing Images of Child Sex AbuseRead the Press Release
CHARLOTTESVILLE, Va. – A Virginia man was sentenced today to 180 months in prison for possessing images of the sexual abuse of children.
Ian Andrew Zearley, 40, of Louisa County, pleaded guilty to the charge in July 2021. According to court documents, Zearley committed the offense while on supervised release for a previous conviction for possession of child exploitation materials. Following his prior conviction, law enforcement was monitoring Zearley’s computer usage pursuant to the terms of his supervised release. During the monitoring, it was discovered that Zearley searched terms consistent with child sexual abuse, including “real hardcore child porn,” and “boys severely whipped and bleeding.” Zearley also authored two stories that described, in graphic detail, the rape and abuse of young boys.
When law enforcement thereafter searched Zearley’s house, they found, in his basement, business cards stating Zearley was the president of the “Pedophile Associates of America,” electric shock equipment, pepper spray, a ski mask, and pellet gun. Officers also found a list of children’s names, their ages, and how Zearley knew each child. Children’s items, such as diapers, bottles, and toys were also found, and Zearley’s computer contained eight computer-generated images of child sex abuse.
“One of the cornerstone missions of this United States Attorney’s Office is providing a safe haven for our children. Part of that mission is the prosecution of those who repeatedly show themselves to be a danger to children in our community,” United States Attorney Christopher R. Kavanaugh said today. “Mr. Zearley was on supervised release when he not only possessed images of the sexual abuse of children, but horrific tools that showed he was on the precipice of effectuating his violent fantasies towards children. I am grateful to the FBI, U.S. Probation Office, and the U.S. Marshals Service for bringing this defendant to justice before he could commit additional harm to our community.”
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division and U.S. Attorney Christopher R. Kavanaugh for the Western District of Virginia made the announcement.
The FBI investigated the case with support from the U.S. Probation Office and the U.S. Marshals Service.
Trial Attorney Charles Schmitz of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Kate Rumsey of the U.S. Attorney’s Office for the Western District of Virginia prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
Red Lake Man Pleads Guilty to AssaultRead the Press Release
MINNEAPOLIS – A Red Lake man has pleaded guilty to two counts of assault resulting in serious bodily injury, announced Acting U.S. Attorney Charles J. Kovats.
According to court documents, on May 5, 2021, Brennon Allen James Sayers, 21, was arguing loudly with his girlfriend in a vehicle outside a residence in the Ponemah area of the Red Lake Indian Reservation. Victim J.L.Z., who lived across the street, came out of his residence and began telling Sayers to stop arguing and fighting with his girlfriend. Victim C.T.G., who was walking down the road, encountered the interaction between Sayers and J.L.Z. As the confrontation between Sayers and J.L.Z. escalated to yelling and assaultive threats, Sayers pulled a firearm from his waistband and began shooting at both J.L.Z. and C.T.G. as they ran back towards J.L.Z.’s house. Both J.L.Z. and C.T.G. were struck by gunfire. After the shooting, Sayers fled the area and was located several hours later at his mother’s residence on the Red Lake Indian Reservation.
Sayers pleaded guilty today before U.S. District Court Chief Judge John R. Tunheim to two counts of assault resulting in serious bodily injury. A sentencing hearing has been scheduled for June 13, 2022.
This case is the result of an investigation conducted by the Red Lake Police Department and the Federal Bureau of Investigation’s Headwaters Safe Trails Task Force.
This case is being prosecuted by Assistant U.S. Attorney Deidre Y. Aanstad.
###
Reagor Dykes CFO Sentenced to 7 Years in Prison for Wire Fraud ConspiracyRead the Press Release
Reagor Dykes Auto Group’s Chief Financial Officer, Shane Andrew Smith, was sentenced today to seven years in federal prison for his role in a $50 million wire fraud conspiracy, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Mr. Smith, 45, pleaded guilty in June 2019 and was sentenced Thursday by U.S. District Judge Matthew J. Kacsmaryk, who also ordered him to pay $59,590,198.82 in restitution. The defendant will have to report to prison by 2 p.m. on Monday, March 28.
“By the time Mr. Smith was charged in 2019, Reagor Dykes was a cesspool of criminal schemes, from check kiting to dummy flooring,” said U.S. Attorney Chad Meacham. “We are proud of the work we’ve done to hold this defendant – and more than a dozen of his coworkers – accountable for their egregious behavior.”
"As a corporate executive, Mr. Smith meticulously conspired to defraud a lending institution, and the resulting loss to the industry was significant," said Matthew DeSarno, Special Agent in Charge of the FBI's Dallas Division. "One of the FBI's goals is to investigate fraud and protect public and investor confidence in our economy, and we will continue that endeavor with our partners."
The defendant was given credit for testifying in the trial of his former boss, Reagor Dykes owner Bart Reagor, who was convicted in October of making false statements to an FDIC-insured bank. At that trial, Mr. Smith testified that Mr. Reagor and his partner, Rick Dykes, drew roughly $25 million out of the business for personal use, including roughly $3.3 million from a working capital bank loan intended for business use.
Prior to testifying against his Mr. Reagor, Mr. Smith admitted in plea papers to defrauding the auto group’s main lender, Ford Motor Credit Company (FMCC), and concealing the fraud by cross-depositing checks across several banks, a ploy known as check-kiting.
In order to cover ballooning expenses, Mr. Smith admitted, he instructed Reagor Dykes accountants to engage in a practice they dubbed “dummy flooring.”
At his direction, accounting staff dug through records for vehicle identification numbers (VIN) of cars Reagor Dykes had already sold, then submitted new loan applications to FMCC using the old VINs – falsely indicating that the company was seeking a loan in order to repurchase the vehicle for resale. Instead of re-buying the car, however, Reagor Dykes used the ensuing loan to cover other expenses.
“Whatever it takes, we need to floor anything and everything we can even think of to cover payoffs each day,” Mr. Smith wrote in an email quoted in his factual resume.
To disguise the shortfall from the dummy flooring scheme, Mr. Smith and his employees engaged in check-kiting, artificially inflating the company’s bank account balances by cross-depositing insufficient checks.
Vendor and payroll checks that should have bounced were instead cleared during banks’ float time, the period between the deposit in the recipient account and the deduction from the payer’s account.
“The deposits we do each do [sic] will most likely cover the checks we write each other,” Mr. Smith wrote in an email.
Reagor Dykes also routinely violated a clause in its loan agreements that required them to repay FMCC within seven days of selling the vehicle for which the loan was issued, Mr. Smith admitted.
Rather than cop to the delay, Reagor Dykes accountants created false paperwork, which they referred to as “dummy shucks,” in order to make it appear that the car had been sold more recently.
Mr. Smith is the fifteenth RDAG employee sentenced to more than 37 years combined in federal prison for the dummy flooring and check kiting scheme. Reagor Dykes employees previously sentenced include:
- Diana Urias, an office manager in Reagor Dykes’ used car mall in Levelland, pleaded guilty to conspiracy to commit bank fraud and was sentenced to 2 years in federal prison and ordered to pay $19,335,901.10 in restitution, joint and severally.
- Sheila Miller, an RDAG group controller, pleaded guilty to conspiracy to commit bank fraud and was sentenced to 27 months in federal prison and ordered to pay $19,335,901.10 in restitution, joint and severally.
- Paige Johnston, an office manager in Reagor Dykes’ Chevrolet store in Floydada, pleaded guilty to conspiracy to commit wire fraud and was to 27 months in federal prison and ordered to pay $40,254,297.72 in restitution, joint and severally.
- Lindsay Williams, and RDAG group accounting manager, pleaded guilty to conspiracy to commit bank fraud and was sentenced to 27 months in federal prison and ordered to pay $19,335,901.10 in restitution, joint and severally.
- Sherri Wood, an office manager at Reagor Dykes’ Ford store in Plainview, pleaded guilty to conspiracy to commit wire fraud and was sentenced to 30 months in federal prison and ordered to pay $40,254,297.72 in restitution, joint and severally.
- Pepper Rickman, an accounting controller at Reagor Dykes’ Toyota store in Plainview, pleaded guilty to conspiracy to commit wire fraud and was sentenced to 4 years in federal prison and ordered to pay $40,254,297.72 in restitution, joint and severally.
- Brad Fansler, an RDAG group administrative director, pleaded guilty to conspiracy to commit wire fraud and was sentenced to 42 months in federal prison and ordered to pay $40,254,297.72 in restitution, joint and severally.
- Ashley Dunn, executive assistant to the CEO, pleaded guilty to conspiracy to commit bank fraud and was sentenced to 30 months in federal prison and ordered to pay $19,335,901.10 in restitution, joint and severally.
- Whitney Maldonado, an office manager at Reagor Dykes’ Mitsubishi store in Lubbock, pleaded guilty to conspiracy to commit wire fraud was sentenced on 27 months in federal prison and ordered to pay $40,254,297.72 in restitution, joint and severally.
- Elaina Cabral, an office manager at Reagor Dykes’ Toyota store in Plainview, pleaded guilty to conspiracy to commit wire fraud and was sentenced to 27 months in federal prison and ordered to pay $40,254,297.72 in restitution, joint and severally.
- Mistry Canady, an office manager at Reagor Dykes’ Ford store in Lamesa, pleaded guilty to conspiracy to commit wire fraud and was sentenced to 2 years in federal prison and ordered to pay $40,254,297.72 in restitution, joint and severally.
- Wesley Neel, RDAG Safety & Compliance Manager, pleaded guilty to conspiracy to commit wire fraud and was sentenced to 30 months in federal prison and ordered to pay $40,254,297.72 in restitution, joint and severally.
- Andrea Kate Phillips, an accounting associate and office manager at Reagor Dykes Ford Store in Plainview, pleaded guilty to misprison of a felony and was sentenced to four years’ probation and ordered to pay $40,254,297.72 in restitution, jointly and severally.
- Steven Reinhart, RDAG Legal Compliance Director, pleaded guilty in February 2021 to misprision of a felony and was sentenced to 6 months in federal prison and ordered to pay $40,254,297.72, jointly and severally.
Bart Reagor, 55, is still awaiting sentencing.
The Federal Bureau of Investigation and Internal Revenue Service - Criminal Investigation Division conducted the investigation. Magistrate Judge Lee Ann Reno presided over the plea. Assistant U.S. Attorneys Joshua Frausto, Jeffrey Haag, and Amy Burch are prosecuting the case.
- Diana Urias, an office manager in Reagor Dykes’ used car mall in Levelland, pleaded guilty to conspiracy to commit bank fraud and was sentenced to 2 years in federal prison and ordered to pay $19,335,901.10 in restitution, joint and severally.
Radio Personality Charged with Producing Child PornographyRead the Press Release
A DFW radio DJ has been charged with producing sexually explicit images of a prepubescent child, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Clois Glenn Raborn, an 49-year-old radio personality known for occasional appearances on 97.1’s “The Russ Martin Show,” was charged Wednesday via criminal complaint with production of child pornography. He made his initial appearance before U.S. Magistrate Judge Jeffrey Cureton on Thursday afternoon. A detention hearing has been set for Wednesday morning.
The investigation began in March 2021, when Mr. Raborn’s roommate discovered lewd images of minor children on Mr. Raborn’s laptop.
According to the complaint, law enforcement conducted a forensic analysis of the laptop and found images of an adult male, believed to be Mr. Raborn, allegedly engaging in sexual conduct with young child.
The child’s mother confirmed her daughter’s identity based on images of her face and other items. She also told law enforcement she recognized Mr. Raborn’s hand in some of the images.
She estimated that the child was between four to six years old when the images were taken.
A criminal complaint is merely an allegation of wrongdoing, not evidence. Like all defendants, Mr. Raborn is presumed innocent until proven guilty in a court of law.
If convicted, he faces up to 30 years in federal prison.
The U.S. Secret Service’s Dallas Field Office and the Euless Police Department conducted the investigation. Assistant U.S. Attorney Brandie Wade is prosecuting the case.
Princeton Man Indicted for Arson OffenseRead the Press Release
BOSTON – A Princeton man was indicted today by a federal grand jury in connection with the burning of a Leominster restaurant in in October 2021.
Edmond Charrette, a/k/a Edmond Kuhn, 31, was indicted on one count of damage and destruction of a building by means of fire. Charrette will make an initial appearance in federal court in Worcester on Jan. 27, 2022.
According to the indictment, on Oct. 12, 2021, Charrette maliciously damaged and destroyed China City, a restaurant in Leominster, and its contents by means of fire.
The charge of damage and destruction of a building by means of fire provides for a sentence of at least five years and up to 20 years in prison, three years of supervised release and a fine of up to $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; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Leominster Interim Police Chief Aaron Kennedy made the announcement today. Assistant U.S. Attorney Kristen M. Noto of Rollins’ Worcester Branch Office is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Pocatello Man Sentenced to over 10 Years in Federal Prison for Trafficking MethamphetamineRead the Press Release
POCATELLO – A Pocatello man was sentenced to 130 months in federal prison for attempted possession with intent to distribute methamphetamine.
According to court records, on December 7, 2020, law enforcement intercepted a package in Pocatello. After a law enforcement K9 alerted to the presence of narcotics, officers searched the package and seized 3,751.6 grams of methamphetamine. Law enforcement repackaged the box, replacing the methamphetamine with rock salt to attempt a controlled delivery. On December 9, 2020, Donald Benningfield, 55, of Pocatello, picked up the package and returned to his residence where he was confronted by law enforcement.
After being read his Miranda rights, Benningfield admitted there would be between five and ten pounds of methamphetamine in the package. He also admitted to previously receiving four other packages of methamphetamine from San Diego, California. Benningfield admitted in court that he attempted to possess the methamphetamine seized from the package and he intended to distribute it.
Chief U.S. District Judge David C. Nye also ordered Benningfield to serve five years of supervised release following his prison sentence. Benningfield pleaded guilty to the charge on September 24, 2021.
U.S. Attorney Rafael M. Gonzalez, Jr., of the District of Idaho made the announcement and commended the cooperative efforts of the Drug Enforcement Administration and the Idaho State Police, which led to charges.
This case was prosecuted by the Special Assistant United States Attorney hired by the Ada County Prosecuting Attorney’s Office with funds provided by the High Intensity Drug Trafficking Areas (HIDTA) program. HIDTA is part of the Office of National Drug Control Policy (ONDCP) created by Congress with the Anti-Drug Abuse Act of 1988. It provides assistance to federal, state, and local law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States. Idaho is part of the Oregon-Idaho HIDTA. The Idaho HIDTA is a collaboration of local, multi-jurisdictional law enforcement drug task forces, and prosecuting agencies dedicated to addressing regional drug trafficking organizations that operate in Ada, Canyon, Bannock, Kootenai, and Malheur Counties.
###
Pharmacy Owner Sentenced for Role in $9 Million Scheme to Bill Insurance for Medications Not DispensedRead the Press Release
DETROIT - A licensed pharmacist from Dearborn Heights was sentenced to 77 months for his role in a scheme to defraud health care insurers by submitting claims for pharmaceuticals that were not actually purchased, announced United States Attorney Dawn N. Ison.
Ison was joined in the announcement by Acting Special Agent in Charge Josh Hauxhurst of the FBI’s Detroit Division and Mario M. Pinto, Special Agent in Charge of the Chicago Region of the U.S. Department of Health and Human Services Office of Inspector General.
Sentenced was Mohamad Ali Makki, 46. In sentencing Makki, United States District Judge Linda V. Parker ordered Makki to pay $9.8 million in restitution. Further, the court ordered the forfeiture of approximately $1.1 in funds seized from bank accounts controlled by Makki.
According to court records, from 2013 through 2019, Makki was a licensed pharmacist at Life Care Pharmacy in Farmington Hills. Makki, along with his co-conspirators Wansa Makki and Hossam Tanana, participated in a scheme to defraud Medicare, Medicaid and Blue Cross Blue Shield of Michigan by submitting claims for pharmaceuticals which Life Care Pharmacy did not actually purchase. Makki and his co-conspirators submitted claims for expensive pharmaceuticals such as Abilify, Seroquel, and Epipen 2-pak Injections. As part of the scheme and, in an effort to conceal the fraud from auditors, Makki created false invoices so that he could falsely claim to the auditors that LifeCare had, in fact, purchased the pharmaceuticals. In doing so, Makki and his co-conspirators caused more than $9.8 million in loss by obtaining reimbursements for the pharmaceuticals they never actually purchased.
“Fraud by health care professionals will be aggressively pursued by our office,” said US Attorney Ison. “We hope that prosecutions like this one will deter health care professionals from stealing money from those who genuinely need it to order to line their own pockets.”
“Healthcare fraud impacts the cost and availability of healthcare resources for every American,” said Acting Special Agent in Charge Josh P. Hauxhurst of the FBI’s Detroit Field Office. “We encourage the public to help us identify, investigate, and prosecute this crime. If you suspect healthcare fraud, report it to the FBI at [email protected], 1-800-CALL-FBI, or contact your health insurance provider.”
“When pharmacists and other medical professionals enrich themselves by submitting fraudulent claims to Federal health care programs, they undermine the trust and confidence that beneficiaries and patients place in their hands,” said Special Agent in Charge Mario M. Pinto. “Our agency will continue to hold medical professionals accountable, while protecting the programs intended for those that depend on them for life saving medication and critical services.”
Co-defendant Hossam Tanana, 57, pleading guilty to money laundering proceeds obtained from the scheme in November 2021. He is awaiting sentencing. The remaining co-defendants, Wansa Makki, and Mahmoud Makki, are awaiting trial.
The case was investigated by Special Agents of the HHS and FBI, with cooperation and assistance from the Michigan Department of Health and Human Services - Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Philip A. Ross.
Northeast Philly Tax Preparer Pleads Guilty to 29 Counts of Filing False Tax ReturnsRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Eric Amaefuna, 65, of King of Prussia, PA, pleaded guilty to engaging in a multi-year scheme to assist clients with filing false income tax returns in order to fraudulently increase the amount of the refund they received.
In April 2021, the defendant was charged by Indictment with 29 counts of aiding and assisting in the preparation of false income tax returns. At the time of the charged conduct, Amaefuna was the owner of American Financial Stewardship (AFS), a tax preparation business on Bustleton Avenue in Northeast Philadelphia. According to the Indictment, Amaefuna prepared false and fraudulent IRS Personal Income Tax 1040 Forms for client taxpayers for at least tax years 2014 through 2016. The defendant added attachments to the 1040 Forms that were also false, in that they claimed false or inflated employee business expenses, inflated state and local taxes, false or inflated miscellaneous deductions, and losses that were entirely fictitious or falsely inflated. These falsities resulted in the filing of personal income tax returns claiming refunds due to the client taxpayers which they were not entitled to receive.
“Our system of taxation relies upon taxpayers contributing their fair share to the federal government, and preparers are supposed to help them do that by accurately reporting income and expenses,” said U.S. Attorney Williams. “The defendant manipulated his clients’ tax filings to suit their own needs at the expense of honest taxpayers. This case is an important reminder to take seriously the legal obligation to file complete and accurate federal income tax returns as we start the 2022 tax season.”
“As we approach the start of the tax filing season, it is important that taxpayers are very diligent when it comes to filing an accurate tax return,” said IRS Criminal Investigation Special Agent In Charge Yury Kruty. “For those who choose to use a tax return preparer, filing an accurate tax return starts with staying clear of unscrupulous tax return preparers. Remember, YOU as the taxpayer, are ultimately responsible for filing a timely, complete, and accurate tax return.”
The case was investigated by the Internal Revenue Service, Criminal Investigations, and is being prosecuted by Assistant United States Attorney Terri A. Marinari.
Nigerian Nationals Sentenced for Role in Money Laundering ConspiracyRead the Press Release
BIRMINGHAM, Ala. – A federal judge sentenced two Nigerian nationals yesterday for their role in an international money laundering conspiracy, announced U.S. Attorney Prim F. Escalona and FBI Special Agent in Charge Johnnie Sharp, Jr.
U.S. District Court Judge Anna M. Manasco sentenced Paulinus Ebhodaghe, 40, of Clementon, New Jersey to 46 months in prison. Ebhodaghe pleaded guilty to conspiracy to commit money laundering in September 2021. Ohimai Asikhia, 37, of Glassboro, New Jersey, was sentenced to 18 months in prison. Asikhia pleaded guilty to conspiracy to commit money laundering in March 2021.
“The defendants helped cybercriminals obscure the source of their ill-gotten gains and squirrel away fraud proceeds in overseas accounts,” U.S. Attorney Escalona said. “Citizens are urged to carefully scrutinize any email directing the transfer of money via wire. I would like to thank the FBI for their hard work in tracking down and bringing these defendants to justice.”
“Business email compromise is one of the most financially damaging online crimes,” SAC Sharp said. It exploits the fact that so many of us rely on email to conduct business—both personal and professional. If you or your company fall victim to BEC, it’s important that you act quickly and notify your financial institution. Then, immediately file a report with the FBI’s Internet Crime Complaint Center, at www.ic3.gov.”
According to court documents, from June 2018 through November 2018, Ebhodaghe and Asikhia helped launder hundreds of thousands of dollars in fraud proceeds. During the course of the conspiracy, they would receive wire transfers from business email compromise, romance scam, and other fraud victims; move the fraud proceeds between bank accounts to disguise their origin and conceal their fraudulent nature; and then wire the proceeds to bank accounts in Nigeria or use them to purchase automobiles that were shipped overseas. Ebhodaghe and Asikhia typically received fees of twenty percent or more of the funds that they laundered.
The FBI investigated the case, which was prosecuted by Assistant U.S. Attorney Edward J. Canter.
Newark Physician and West New York Man Charged with $3.4 Million Health Care and Wire Fraud Conspiracy, Money Laundering, and Making False StatementsRead the Press Release
CAMDEN, N.J. – A Newark physician and West New York man are scheduled to make their initial appearances today on charges of defrauding New Jersey state and local health benefits programs and other insurers out of more than $3.4 million by submitting fraudulent claims for medically unnecessary prescriptions, U.S. Attorney Philip R. Sellinger announced.
Kaival Patel, 53, of West New York, New Jersey, and Saurabh Patel, M.D., 51, a Woodbridge, New Jersey, resident, are charged in a 12-count indictment with conspiracy to commit health care fraud, and wire fraud and four counts of health care fraud. Kaival Patel is also charged with conspiracy to commit money laundering, substantive counts of money laundering, and making false statements to federal agents. The defendants appeared today by videoconference before U.S. Magistrate Judge Sharon A. King and were released on $250,000 each unsecured bond.
According to the indictment:
Kaival Patel and his wife – referred to in the indictment as “Individual 1” – operated a company called ABC Healthy Living LLC (ABC) to market medical products and services, including compound prescription medications. Saurabh Patel is a medical doctor who owned and operated a clinic – referred to in the indictment as “Medical Practice 1” – in Newark. Saurabh Patel is related to Kaival Patel and Individual 1. Paul Camarda, a pharmaceutical sales representative who is listed as a conspirator, pleaded guilty before Judge Kugler in Camden federal court on July 6, 2021, to health care conspiracy and conspiring to commit money laundering and obstruct justice and is awaiting sentencing.
Compounded medications are specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Although compounded drugs are not approved by the Food and Drug Administration (FDA), they are properly prescribed when a physician determines that an FDA-approved medication does not meet the health needs of a particular patient, such as if a patient is allergic to a dye or other ingredient.
Kaival Patel, Saurabh Patel, Camarda, and others learned that certain state and local government employees had insurance that would reimburse up to thousands of dollars for a one-month supply of certain compounded medications. The defendants submitted fraudulent insurance claims for prescription compounded medications to a pharmacy benefits administrator, which provided management services for certain insurance plans that covered state and local government employees. The defendants steered individuals recruited to receive medications from the compounding pharmacies to Saurabh Patel’s medical practice, which enabled him to fraudulently receive insurance payments for those patient visits and procedures. The conduct caused the benefits administrator to pay out $3.4 million in fraudulent claims.
The health care fraud and wire fraud conspiracy count carries a maximum potential penalty of 20 years in prison; the health care fraud charges carry a maximum potential penalty of 10 years in prison; the false statement count carries a maximum penalty of five years in prison – all of these counts are also punishable by a fine of $250,000, or twice the gain or loss from the offense, whichever is greatest. The money laundering charges carry a maximum term of 10 years in prison and a fine of $250,000, or twice the gross gain or loss from the offense or not more than twice the amount of the criminally derived property involved in the transactions.
U.S. Attorney Sellinger credited special agents of the IRS - Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez in Newark; special agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; and the U.S. Department of Labor Office of Inspector General, New York Region, under the direction of Special Agent in Charge Jonathan Mellone, with the investigation leading to the indictment.
The government is represented by Assistant U.S. Attorneys Christina O. Hud and R. David Walk Jr. of the Criminal Division in Camden.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
New Jersey Man Indicted in Fraud Scheme to Steal California Unemployment Insurance BenefitsRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a 15-count indictment today against Eric Michael Jaklitsch, 40, of Elizabeth, New Jersey, charging him with wire fraud and aggravated identity theft, U.S. Attorney Phillip A. Talbert announced.
On Dec. 8, 2021, Jaklitsch was arrested on a federal criminal complaint at his home in New Jersey. He made his initial appearance in the District of New Jersey and was ordered detained for transport to the Eastern District of California.
According to court documents, between October 2020 and December 2021, Jaklitsch executed a scheme to defraud the California Employment Development Department (EDD) by filing at least 78 fraudulent unemployment insurance claims with EDD, seeking Pandemic Unemployment Assistance and other benefits under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. During the scheme, Jaklitsch collected personally identifiable information (PII) of numerous individuals — including names, birth dates, and Social Security numbers — and used their identities to file fraudulent unemployment insurance claims. The filings represented, among other things, that the claimants had recently lost employment or were unable to find employment due to the COVID-19 pandemic. These unemployment insurance claims were fraudulent because, for example, the claimants were not unemployed, they were not eligible for California unemployment insurance benefits, or Jaklitsch did not have authority to file claims on their behalf.
Since at least October 2021, EDD has partnered with ID.me — a private company used by the EDD for ID verification of claimants — to implement a system for verifying claimant identities before EDD can process unemployment insurance claims. An internal investigation conducted by ID.me identified Jaklitsch as a person conducting a fraud scheme and referred the case to federal law enforcement.
In executing his fraudulent scheme, Jaklitsch also submitted false information to ID.me that allowed his fake and stolen identities to be verified. This false information included images of fake driver’s licenses that contained photos of Jaklitsch and the names of the purported claimants. He also submitted live photos of himself that were used to verify the photos on the fake driver’s licenses. Once these false identities were verified, Jaklitsch filed the fraudulent unemployment insurance claims with EDD under the same identities.
In the fraudulent unemployment insurance applications, Jaklitsch requested that the unemployment insurance benefits be mailed to various addresses under his control, including his residence in New Jersey. EDD approved dozens of the fraudulent claims and authorized Bank of America to mail out EDD debit cards containing unemployment insurance benefits. Jaklitsch then activated the EDD debit cards and used them to withdraw the benefits at ATMs throughout New Jersey. The scheme sought over $2,500,000 in unemployment insurance benefits and caused EDD and the United States to incur actual losses exceeding $900,000.
This case is the product of an investigation by the Federal Bureau of Investigation, the Department of Labor – Office of the Inspector General, the Department of Homeland Security – Office of the Inspector General – Covid Fraud Unit, and the California Employment Development Department (EDD) – Investigation Division. Assistant U.S. Attorney Robert J. Artuz is prosecuting the case.
If convicted, Jaklitsch faces a maximum statutory penalty of 20 years in prison and a $250,000 fine on each of the 14 wire fraud counts. He also faces a two-year mandatory prison sentence if convicted of aggravated identity theft, which must run consecutive to any sentence received on the wire fraud counts. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Modesto Man Charged with Drug Trafficking, Illegal Firearms PossessionRead the Press Release
FRESNO, Calif. — A federal grand jury returned a three-count indictment today against Joshua David Harrington, 35, of Modesto, charging him with one count of being a felon in possession of a firearm and two counts of possession with intent to distribute methamphetamine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on April 2, 2021, Harrington discarded a backpack with two firearms while fleeing from law enforcement officers. Harrington is a convicted felon prohibited from possessing firearms and ammunition. Officers also located methamphetamine possessed by Harrington for distribution in the garage at his residence. On Aug. 14, 2021, Harrington possessed methamphetamine with the intent to distribute it in Modesto.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Stanislaus County District Attorney’s Office; the Stanislaus County Probation Department; and the Modesto Police Department. Assistant U.S. Attorney Katherine E. Schuh is prosecuting the case.
If convicted, Harrington faces a maximum statutory penalty of 10 years in prison and a $250,000 fine on the felon in possession charge, and a mandatory minimum of 10 years in prison up to a maximum statutory penalty of life in prison and a $10 million fine on each drug trafficking count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Minneapolis Man Pleads Guilty to the Armed Robberies of Two Gas Stations and a HotelRead the Press Release
MINNEAPOLIS – A Minneapolis man has pleaded guilty to the armed robbery of two Speedway gas stations and a Super 8 Hotel, announced Acting U.S. Attorney Charles J. Kovats.
According to court documents, on February 4, 2020, Keanu Dewone Ross, 30, entered a Speedway gas station in Columbia Heights, pulled what appeared to be a firearm, and demanded cash from the register and the safe. Ross stole $140 in cash, various tobacco products, and several lottery tickets, before fleeing the scene in a waiting vehicle parked several blocks away with his co-defendant, Antoinette Deniece Mae Dobyne, 30. On February 12, 2020, Ross entered a Speedway in Fridley, pulled what appeared to be a firearm, and demanded cash from the register. Ross ordered the employee to the ground and kicked the employee in the face. Ross left the store with more than $700 in cash, tobacco products, and lottery tickets. On three separate days in February, surveillance camera footage showed Ross and Dobyne cashing some of the stolen lottery tickets at two different gas stations.
According to court documents, on February 14, 2020, Ross and another man were driven to the area of the Super 8 Hotel in Brooklyn Center by Dobyne in her SUV. The men entered the hotel and ordered a hotel employee to the ground at gunpoint. Ross and the other man took the employee’s cell phone and car keys, and over $550 cash from the business. The men then told the employee to run from the scene. As the employee fled on foot, he heard multiple gunshots. Officers recovered a discharged cartridge casing at the scene of the robbery. Surveillance camera footage showed the two men committing the robbery as described by the employee. The footage also showed the two men running from the hotel toward an SUV and then fleeing on foot after the SUV got stuck in a snowbank. BCPD officers located Dobyne in the SUV. A warrant-authorized search of the SUV revealed Ross’s wallet and identification, and a black duffle bag full of various tobacco products.
According to court documents, later that same day, Ross was detained during a traffic stop by officers with the Minneapolis Police Department. Officers confiscated a Taurus Model PT738 .380-caliber semiautomatic pistol that was found on Ross’s person. Subsequent forensic ballistics analysis using the discharged cartridge casing recovered at the scene of the robbery revealed that the confiscated firearm was the same one that was fired at the Super 8 Hotel.
Ross pleaded guilty yesterday before Senior U.S. District Judge David S. Doty to three counts of aiding and abetting interference with commerce by robbery and one count of using, carrying and discharging a firearm during and in relation to a crime of violence. On October 25, 2021, Dobyne pleaded guilty to one count of aiding and abetting interference with commerce by robbery. Sentencing hearings for the defendants will be scheduled at a later date.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was the result of an investigation conducted by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, and Firearms, the Minneapolis Police Department, the Bureau of Criminal Apprehension, the Brooklyn Center Police Department, the Columbia Heights Police Department, and the Fridley Police Department.
Assistant U.S. Attorney Benjamin Bejar is prosecuting the case.
Martinsburg man sentenced for firearms chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Dehaven Darnell Craig, of Martinsburg, West Virginia, was sentenced today to 100 months of incarceration for a firearms charge, United States Attorney William Ihlenfeld announced.
Craig, age 34, pleaded guilty in February 2020 to one count of “Unlawful Possession of Firearm.” Craig, prohibited from having a firearm because of a prior conviction, admitted to having a .380 caliber pistol in April 2018 in Jefferson County.
This case is the result of investigations supported by the Organized Crime Drug Enforcement Task Force (OCDETF) under the Attorney General-led Synthetic Opioid Surge (SOS)/Special Operations Division (SOD) Project Clean Sweep. This initiative seeks to reduce the supply of synthetic opioids in “hot spot” areas previously identified by the Attorney General of the United States, thereby reducing drug overdoses and drug overdose deaths, and identify wholesale distribution networks and sources of supply operating nationally and internationally.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Assistant U.S. Attorney Lara K. Omps-Botteicher prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge Gina M. Groh presided.
Maribel Sex Offender Indicted for the Receipt and Possession of Child PornographyRead the Press Release
United States Attorney Richard G. Frohling of the Eastern District of Wisconsin announced that on January 19, 2022, a federal grand jury returned an indictment alleging that Smedley D. Butler (age: 50) of Maribel, Wisconsin, received and possessed child pornography in violation of Title 18, United States Code, Sections 2252A(a)(2)(A) and 2252A(a)(5)(B).
According to the indictment, Butler is required to register as a sex offender under Wisconsin law due to a 2009 Manitowoc County conviction for possessing child pornography. Given his status as a sex offender, he faces a mandatory 15 years’ imprisonment and up to 40 years’ imprisonment if convicted of the receipt of child pornography charge. He faces a mandatory ten years’ imprisonment and up to 20 years’ imprisonment if convicted of the possession of child pornography charge. Butler could also be fined up to $250,000 on each count.
This case was investigated by the Manitowoc County Sheriff’s Office, the City of Manitowoc Police Department, and the Wisconsin Department of Justice, Division of Criminal Investigation. It will be prosecuted by Assistant United States Attorney Daniel R. Humble.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
# # #
For further information contact:
(414) 297-1700
Follow us on Twitter
Malden Man Sentenced for Crack Cocaine and Firearms OffensesRead the Press Release
BOSTON – A Malden man was sentenced yesterday in connection with possessing 100 grams of crack cocaine for distribution and numerous firearms.
Alberto Junior Lopez, 27, was sentenced by Senior U.S. District Court Judge Mark Wolf to five years in prison and five years of supervised release. On June 10, 2020, Lopez pleaded guilty to one count of possession with intent to distribute 28 grams or more of cocaine base (crack cocaine) and one count of possession of a firearm with an obliterated serial number.
This case arose from a search of the Lopez’s Malden residence in November 2018 pertaining to a September 2018 drive-by shooting in Revere in which he was a suspect. The search resulted in the recovery of numerous firearms including a Colt .45 automatic firearm with an obliterated serial number, a Glock .45 automatic firearm, two loaded Glock magazines, numerous rounds of other ammunition and a bag containing about 94 grams of crack cocaine and more than $3,000 in cash, among other items.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Division, made the announcement. Valuable assistance was provided by the Malden and Revere Police Departments. Assistant U.S. Attorney John T. Mulcahy of Rollins’ Narcotics & Money Laundering Unit prosecuted the case.
Leader of Complex International Fraud and Money Laundering Ring Sentenced to 14 Years in PrisonRead the Press Release
Tampa, Florida – U.S. District Judge James Moody has sentenced Mary Kathryn Marr (42, Miami) to 14 years in federal prison for conspiracy to commit money laundering. The Court also ordered Marr to forfeit various assets, which are traceable to proceeds of the offense and, as part of her sentence, entered a money judgment in the amount of $1.5 million, representing proceeds Marr received as a result of the charged criminal conduct. In addition, the Court ordered Marr to pay restitution to victims in the amount of $14,511,754.05. Marr pleaded guilty in June 2021.
According to court documents, Marr was the leader of a large, international fraud and money laundering ring that operated out of the United States and abroad. Marr contracted with various international “boiler rooms” to launder fraud proceeds that she and other conspirators had obtained from foreign victims, primarily by selling worthless investments. Marr and her conspirators employed a mass-marketing scam in which high-pressure sales techniques originating out of the boiler rooms were used to defraud individuals who believed that they were investing substantial amounts of money in regulated financial products or markets, particularly shares of stocks. In reality, the investments were a sham and the victims received nothing. The majority of the victims that Marr and her conspirators targeted were located in Australia, New Zealand, the United Kingdom, and countries in Asia.
Marr and her co-conspirator, Michel Marc Chateau, who was charged in the same case, operated a network of funnel bank accounts in the United States in the names of shell companies into which the boiler room agents instructed victims to send their money. In some instances, Marr, using fake personas, spoke with the victims herself to convince the victims to send additional funds based on fraudulent representations and high-pressure tactics. The victims’ funds were then laundered through more bank accounts and sent overseas. Marr and Chateau recruited various individuals to open and operate funnel bank accounts in Florida and other states.
Electronic communications obtained during the investigation revealed that Marr had received a set percentage of each victim’s wire transfer that had been sent to the bank accounts in the United States. Once the victims’ funds had been laundered through Marr’s network of bank accounts in the United States, Marr would arrange for most of the funds to be sent back to the boiler rooms and their employees overseas.
In total, Marr and her co-conspirators unlawfully obtained approximately $14.5 million from victims through various boiler room fraud schemes between 2015 and 2018. Including funds that had originated from other funnel accounts, the accounts engaged in money laundering transactions totaling more than $20 million.
On November 1, 2018, Serbian authorities arrested Marr in Belgrade, Serbia pursuant to an INTERPOL Red Notice that had been issued by the U.S. Department of Justice. Marr was extradited to Tampa in April 2019.
“Thanks to a collaborative investigative effort between HSI and the IRS-Criminal Investigation, this sophisticated transnational money laundering organization was dismantled,” said HSI Tampa acting Assistant Special Agent in Charge Timothy Westlove.
“This sentence should stand as a warning to those who engage in nefarious activities,” said IRS Criminal Investigation Special Agent in Charge Brian Payne. “As proven by this partnership with HSI, we will continue to work together to bring criminals to justice. Marr's sentencing is the final chapter in this complex international scam, which will hopefully pave the way to the healing process for all of those impacted by these heinous crimes.”
This case was investigated by Homeland Security Investigations and Internal Revenue Service - Criminal Investigation. It was prosecuted by Assistant United States Attorney Patrick Scruggs. Assistant United States Attorneys James Muench and Suzanne Nebesky handled the forfeiture. The Justice Department’s Office of International Affairs worked with law enforcement partners in Serbia to secure the arrest of Marr in Serbia and her extradition to the United States.
Lafourche Parish Man Pleads Guilty to Violating the Federal Controlled Substance ActRead the Press Release
NEW ORLEANS, LOUISIANA – DONTRELL MATHEWS, age 42, a resident of Thibodaux, Louisiana, pled guilty before U.S. District Judge Carl J. Barbier to a one-count superseding bill of information charging him with distribution of a quantity of methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and (b)(1)(C), announced U.S. Attorney Duane A. Evans.
According to court documents, on July 31, 2018, Special Agents with the Drug Enforcement Administration used a confidential source to make a controlled purchase of approximately 27 grams of methamphetamine from MATHEWS. As a result of his plea, MATHEWS faces up to a maximum term of imprisonment of twenty years’ imprisonment, a fine of up to $1,000,000.00 and at least three years of supervised release following any term of imprisonment. MATHEWS must also pay a $100 mandatory special assessment fee.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
This case was investigated by the federal Drug Enforcement Administration, Office of Homeland Security Investigations, Terrebonne Parish Sheriff’s Office, and the Lafourche Parish Sheriff’s Office. The prosecution is being handled by Assistant United States Attorney André Jones.
Kings County Man Charged with Distributing Fentanyl and Methamphetamine Through the U.S. MailRead the Press Release
FRESNO, Calif. — A federal grand jury returned a five-count indictment today against Martin Cervantes, 26, of Corcoran, charging him with four counts of distributing narcotics and one count of possessing methamphetamine with the intent to distribute, U.S. Attorney Phillip A. Talbert announced.
According to court documents, from October to December 2021, Cervantes mailed three packages each containing over 500 grams of fentanyl powder and one package containing over 2,000 grams of methamphetamine from post offices in Fresno. The packages were destined for addresses in the Midwest, but were intercepted. On January 6, 2022, Cervantes also possessed over 500 grams of methamphetamine with the intent to distribute it.
This case is the product of an investigation by the U.S. Postal Inspection Service with assistance from Homeland Security Investigations. Assistant U.S. Attorney Katherine E. Schuh is prosecuting the case.
If convicted, Cervantes faces a mandatory minimum of 10 years in prison up to a maximum statutory penalty of life in prison and a $10 million fine on each count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
KC Man Sentenced to 21 Years for Meth Trafficking at Camdenton HotelRead the Press Release
JEFFERSON CITY, Mo. – A Kansas City, Missouri, man was sentenced in federal court today for possessing methamphetamine to distribute when officers found large amounts of illegal drugs in his room at a Camdenton, Mo., hotel.
Anthony Martinez Harris, 49, was sentenced by U.S. District Judge Brian C. Wimes to 21 years and 10 months in federal prison without parole.
On Sept. 29, 2021, Harris was found guilty at trial of one count of possessing methamphetamine with the intent to distribute.
On Sept. 26, 2019, employees at the Sleep Inn on Highway 54 called Camdenton police officers to remove Harris, who was under the influence of drugs and stayed past checkout time. When officers arrived and contacted Harris, who was locked out of the room, hotel staff opened the room door. Officers saw a large amount of cash on the room’s bed and a line of cocaine on the coffee table. Officers searched the room and found three-quarters of a kilogram of methamphetamine packaged for sale, a distribution amount of heroin, cocaine, PCP, and marijuana, three loaded pistols, and more than $22,000 in cash.
Harris was questioned by a Camden County, Mo., sheriff’s deputy who arrived to assist the officers. When officers searched the room they found an oblong object wrapped in camouflage fabric, which Harris identified as C-4 explosive. Officers immediately contacted the Missouri State Highway patrol bomb squad and began evacuating the hotel. The substance was later determined not to be an explosive.
After the area was deemed safe, officers searched Harris’s hotel room and found a bag in a dresser drawer that contained approximately 28 grams of methamphetamine, a bag on one of the beds that contained approximately seven grams of cocaine, a Ziploc bag on another bed that contained 18 bags of approximately 37 grams of heroin/opiates, a Dollar General bag on the same bed that contained approximately 224 grams of methamphetamine, a Ziploc bag on the bed that contained small bags of marijuana. a, and a brown leather bag that contained 10 tablets of Oxycodone Hydrochloride, nine Ziploc bags that each contained approximately one gram of heroin/opiates, and a Ziploc bag that contained approximately 28 grams of cocaine. Officers also found a Springfield Armory sub-compact 9mm handgun and a loaded magazine, a Glock 9mm handgun and a loaded magazine, a Glock .40-caliber handgun and a loaded magazine, additional ammunition, and assorted drug paraphernalia.
Officers also searched Harris’s vehicle and found a Black Dawn Armory custom-made AR-15-style .223-caliber rifle loaded with a 30-round magazine in the trunk. Officers also found a plastic bag that contained 581 ecstasy tablets and additional ammunition in the vehicle.
According to court documents, Harris tried to bribe a hotel employee and the police officer who responded to the incident. At trial, Harris committed perjury in his testimony by denying knowledge of the methamphetamine in the hotel room and denying being aware of the presence of firearms.
This case was prosecuted by Assistant U.S. Attorney Jim Lynn and Special Assistant U.S. Attorney Heather Richenberger. It was investigated by the Drug Enforcement Administration, the Camden County, Mo., Sheriff’s Department, the Camdenton, Mo., Police Department, the Missouri State Highway Patrol and the Lake Area Narcotics Enforcement Group.
Jury convicts Dayton businessman of fraudRead the Press Release
DAYTON, Ohio – A federal jury has convicted a Dayton businessman of crimes related to the fraudulent diversion of funds from an insurance claim.
Brian Higgins, 50, was found guilty of three counts of mail fraud and two counts of witness retaliation.
The verdict was announced today following a trial that began on Jan. 10 before U.S. District Judge Thomas M. Rose.
According to court documents and trial testimony, in 2014 and 2015, Higgins filed an insurance claim in connection with water damage to the Meeker Creek Residence, an 8,000 square-foot house in Dayton. Higgins received more than $100,000 in insurance claims that he used for his personal benefit rather than to repair water damage that occurred from a large fish tank.
Higgins used money disbursed on the claim to pay for personal expenditures, such as funding a new restaurant space, paying telephone bills, spending money at a casino, and other personal expenses, rather than paying for bona fide repairs and restoration of the home.
The defendant submitted invoices and repair cost estimates from a construction vendor to his mortgage company, falsely representing that he intended to buy these products to repair his house.
Higgins then diverted the money to himself and paid for travel, hotels and dining out, among other personal expenses. Higgins used a fraction of the funds from the claim to complete small, cosmetic repairs in an attempt to cover up his scheme.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, and J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, and Ohio Attorney General Dave Yost's Ohio Bureau of Criminal Investigation (BCI) announced today’s verdict. Deputy Criminal Chief Brent G. Tabacchi and Assistant United States Attorney Rob Painter are representing the United States in this case.
# # #
Judge sentences Cape Girardeau, Missouri woman for Medicare and Medicaid fraudRead the Press Release
ST. LOUIS – Brandy McKay, 42, of Cape Girardeau, Missouri appeared before United States District Court Judge Stephen R. Clark on January 18, 2022. McKay previously pleaded guilty and was sentenced to 3 years imprisonment and ordered to pay $7,520,779.00 in restitution.
According to the plea agreement, between 2017 and 2019, McKay owned or managed multiple durable medical equipment (DME) companies, including three located in Cape Girardeau, Missouri. The DME companies paid kickbacks for orders and prescriptions signed by telemedicine doctors and nurse practitioners, who in almost all cases did not examine the patients, had no contact with the patients, and did not otherwise determine that the patients needed durable medical equipment.
The DME companies then submitted reimbursement claims to Medicare and Medicaid. Based on the fraudulent claims submitted by McKay and her co-conspirators, Medicare and Medicaid reimbursed the DME companies for the medically unnecessary equipment. In many cases, patients received DME equipment from several DME companies, none of which they had requested or needed.
“Submitting false claims for medically unnecessary equipment diverts funding from the necessary services required to support beneficiaries of federal health care programs,” stated Curt L. Muller, Special Agent in Charge with the Department of Health and Human Services, Office of Inspector General. “OIG will continue to work with our law enforcement partners to identify and hold accountable individuals who choose to waste vital taxpayer dollars by participating in health care fraud schemes.”
This case was investigated by the U. S. Department of Health and Human Services, Office of the Inspector General, the U. S. Department of Defense, Defense Criminal Investigative Services and the Federal Bureau of Investigation.
Jesup Man Sentenced to Federal Prison for Failing to Forward Taxes He Withheld from His Employees' PaychecksRead the Press Release
A former business owner who withheld federal taxes from his employees’ paychecks but did not forward the money withheld to the Internal Revenue Service (“IRS”) was sentenced today to 21 months in federal prison.
Mark Warm, age 57, from Jesup, Iowa, received the prison term after a September 2, 2021 guilty plea to one count of willful failure to pay over employment taxes to the IRS.
In a plea agreement, Warm admitted that he was the owner of Warm Trucking, Incorporated and was responsible for the company’s finances. Warm admitted that, from 2013 through 2019, he was responsible for withholding income taxes and Federal Insurance Contributions Act (“FICA”) taxes from the pay of Warm Trucking employees and was responsible for forwarding those withholdings to the IRS. However, Warm admitted that for those seven tax years, he failed to forward the money he withheld from his employees’ pay to the IRS, even though he knew he was required to do so. In the plea agreement, Warm admitted he also failed to pay to the IRS other taxes owed by Warm Trucking. In total, Warm failed to send the IRS more than $1,400,000 in taxes owed by Warm Trucking.
Warm was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Warm was sentenced to 21 months’ imprisonment. He was ordered to make $1,406,561.66 in restitution to the IRS. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
“Mr. Warm’s failure to pay employment taxes for seven years was an attempt to dodge his obligations to his employees and to the United States,” said United States Attorney Sean Berry. “Our system and our citizens depend upon employers like Mr. Warm to pay what they owe in employment taxes. This sentence shows that willfully failing to do so is a crime and there will be consequences.”
“Today’s sentencing sends a message that paying both individual and business taxes is an obligation you will be held to. When Mr. Warm made the decision to evade paying his employment taxes, he made a conscious decision to cheat his employees and all law abiding tax-payers,” said IRS-Criminal Investigation Special Agent in Charge, Tyler Hatcher of the St. Louis Field Office. “As the 2022 tax season gets underway, IRS-CI wants it to be clear that, along with the Department of Justice, we will investigate and hold accountable those who cheat our tax system and cause harm to others.”
Warm was released on the bond previously set and is to surrender to the Bureau of Prisons on a date yet to be set.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and investigated by the Internal Revenue Service Criminal Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-CR-1023.
Follow us on Twitter @USAO_NDIA
Jacksonville pharmacist, pharmacy owner admit to charges related to illegally filling drug prescriptions issued by south Georgia doctorRead the Press Release
BRUNSWICK, GA: A pharmacist and a pharmacy owner await sentencing after pleading guilty to charges related to a conspiracy to unlawfully dispense controlled substances.
Gilbert Nelson Weise, Jr., 58, of Jacksonville, Fla., faces up to five years in prison after pleading guilty to a charge of conspiracy to dispense controlled substances without a legitimate medical purpose and not in the usual course of professional practice, said David H. Estes, U.S. Attorney for the Southern District of Georgia. Weise also faces substantial financial penalties and up to three years of supervised release after completion of any prison term. There is no parole in the federal system.
“As demonstrated through this investigation, pill-mill clinics cannot thrive without pharmacists willing to fill their unlawful prescriptions,” said U.S. Attorney Estes. “Pharmacists have an obligation to scrutinize suspicious controlled substances and ensure they are issued for legitimate purpose. In this case, not only did the defendant negligently ignore the presence of red flags, but he also knowingly and intentionally agreed to fill prescriptions that he knew to be unlawful and appropriately is being held to account.”
As described in court documents, from on or about Oct. 9, 2014 to June 13, 2017, in Camden County, in the Southern District of Georgia, in the Middle District of Florida, and elsewhere, Weise and others conspired to dispense hydromorphone, oxycodone, and hydrocodone, among other drugs, for no legitimate medical purpose and outside the usual course of professional practice, in violation of federal law. The prescriptions in question were issued at a nominal pain management clinic known as Coastline Physical Medicine and Rehabilitation, Inc. in St. Mary’s, Ga. The physician at Coastline – who was charged in the indictment but subsequently judged incapable of standing trial – routinely dispensed controlled substances not for a legitimate medical purpose and not in the usual course of professional practice and in so doing generated significant amounts of cash. Between Oct. 9, 2014 and June 13, 2017, drug-seeking customers typically paid approximately $300 cash to Coastline in exchange for prescriptions. To enable more patients to fill their prescriptions, a co-conspirator contacted Weise, Jr., who agreed to fill Coastline’s prescriptions at Weise Prescription Shop located in Jacksonville, Fla.
Given the high volume of Coastline’s prescriptions, a second pharmacy known as Coastal RX Pharmacy also began filing Coastline’s prescriptions. The co-owner of Coastal RX Pharmacy, Amy G. Taylor, 42, of Jacksonville, also awaits sentencing after pleading guilty to an information charging Misprision of Felony. Specifically, Taylor agreed that she had knowledge of and concealed the unlawful conspiracy and did not report that knowledge to a lawful authority, in violation of federal law. This charge carries a statutory maximum sentence of three years in prison, along with substantial financial penalties and a one-year term of supervised release.
“Dispensing addictive prescription pain medication under the guise of a doctor’s care puts greed above an individual’s specific health needs and the trust of the community,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “Individuals like Weise and his associates who are involved in this ‘pill mill’ activity are nothing more than drug dealers who are licensed to wear white coats and fill prescriptions. Thanks to a concerted effort from our law enforcement partners, south Georgia and its surrounding communities are safer today.”
The case was investigated by the DEA and the Southern District of Georgia U.S. Attorney’s Office Investigator Charles Sikes and prosecuted for the United States by Assistant U.S. Attorneys Greg Gilluly, Mathew Josephson and Karl Knoche.
Insurance Producer Charged with Failing to Remit $29.5 Million in Payroll TaxesRead the Press Release
NEWARK, N.J. – A Suffern, New York, insurance producer was arrested today for failing to pay $29.5 million dollars in payroll and unemployment taxes, and benefit plan fraud, U.S. Attorney Philip R. Sellinger announced.
Joseph Schwartz, 62, is charged by indictment with 18 counts of willful failure to pay over employment taxes – totaling $29.1 million – two counts of evasion of unemployment taxes – totaling $367,027 – and two counts of failing to file annual financial reports (Form 5500) with the Department of Labor for the employee 401K Benefit Plan Schwartz sponsored. He is scheduled to appear by videoconference today before U.S. Magistrate Judge André M. Espinosa.
The indictment charges that Joseph Schwartz, the principal owner of Skyline Management Group LLC (Skyline), with its headquarters in New Jersey, willfully failed to pay over Employment and Unemployment taxes relating to the employees at 95 health care and rehabilitation facilities he operated in eleven different states.
According to the indictment:
In late 2016, Schwartz and at least one other individual controlled the financing and staffing for Skyline’s various health care facilities around the country, and approximately 15,000 employees who worked there. From mid-2017 through June 2018, Schwartz failed to pay over $29.5 million in payroll and unemployment taxes to the IRS.
Schwartz is also alleged to have failed to file annual financial reports (Form 5500) with the Department of Labor relating to Skyline’s 401K Retirement Plan Contributions that are automatically withdrawn from an employee’s gross pay and invested according to the employee’s own choices. Form 5500 annual financial reports are publicly available and provide participants with the details of the plan's financial condition, its operation, and its investments.
Each count of willful failure to collect, account for, and pay over employment taxes and tax evasion is punishable by a maximum penalty of five years in prison and a maximum $10,000 fine. The two counts of evasion of unemployment taxes are punishable by a maximum of five years in prison and a maximum fine of $100,000. Each count of 401K benefit plan fraud is punishable by a maximum of 10 years in prison and a $100,000 fine.
U.S. Attorney Sellinger credited Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division; special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez in Newark; special agents and investigators of the U.S. Department of Labor, Employee Benefit Security Administration, under the direction of Thomas Licetti, Regional Director of the New York Office; and special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr., with the investigation leading to the charges.
The government is represented by Senior Litigation Counsel V. Grady O’Malley of the U.S. Attorney’s Organized Crime/Gang Unit and Trial Attorney Shawn Noud of the Justice Department’s Tax Division.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Illinois Attorney Sentenced to Two Years in Federal Prison for Bankruptcy FraudRead the Press Release
ROCKFORD — An Illinois attorney has been sentenced to two years in federal prison for committing bankruptcy fraud.
U.S. District Judge Iain D. Johnston imposed the sentence Wednesday on KEVIN O. JOHNSON, also known as “K.O. Johnson,” 55, of Sycamore, Ill.
A jury in August convicted Johnson on bankruptcy fraud and other charges after a two-week trial in federal court in Rockford. The charges related to Johnson’s Chapter 7 bankruptcy proceeding initiated on Dec. 31, 2011.
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 U.S. Trustee’s Madison, Wisc., and Chicago offices provided substantial assistance. The government was represented by Assistant U.S. Attorneys Matthew Schneider, Michael Love, and Michael Beckman.
ID thief who bought personal information with Bitcoin sent to prisonRead the Press Release
CORPUS CHRISTI, Texas – A 43-year-old Houston man has been ordered to prison after fraudulently purchasing two expensive vehicles using information purchased on the dark web, announced U.S. Attorney Jennifer B. Lowery.
Jay Patrick Morgan pleaded guilty Oct. 21, 2021.
Today, U.S. District Judge Nelva Gonzales Ramos ordered him to serve a 24-month sentence to be immediately followed by one year of supervised release. Morgan was also ordered to pay $31,409.37 restitution to compensate for damages and the diminished value of the recovered property.
“Today’s sentencing is a reminder that the Secret Service is committed to aggressively investigating and pursuing financial crimes,” said Resident Agent in Charge Brian J. Gibson. “Identity theft investigations remain a top priority for us in our mission to protect this nation’s financial intuitions. The success in this case demonstrates the investigative capabilities of the Secret Service and the collaborative efforts with our law enforcement partners.”
On March 8, 2019, Morgan purchased a 2015 Ford F250 Platinum Edition
pickup truck, valued at more than $59,000. The following week, he also purchased a 2019 Rockwood 5th Wheel recreational vehicle (RV), valued at more than $57,000 from a dealer in the Corpus Christi area. In both instances, Morgan financed the total value of each vehicle by falsely providing the Social Security number and other identifying information of another individual with a similar name.
The victim later contacted authorities after discovering numerous credit inquiries and several new credit accounts he had not requested, including those used to purchase the pickup truck and RV. The investigation confirmed the victim had not opened any of the credit accounts and no payments had been made on any of the accounts. Both the pickup truck and the RV were listed as solen vehicles.
In August 2019, local authorities conducted a traffic stop on the stolen pickup. Morgan was driving.
He admitted he acquired the pickup truck using a Social Security number he had purchased with Bitcoin currency from a site on the dark web. Morgan also admitted to fraudulently using the same information to purchase an RV which he had subsequently sold to another individual.
Morgan has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Secret Service conducted the investigation with the assistance of police departments in Corpus Christi and Deer Park. Assistant U.S. Attorney Robert D. Thorpe Jr. prosecuted the case.
Huntington Man Pleads Guilty to Selling Pound of MethamphetamineRead the Press Release
HUNTINGTON, W.Va. – A Huntington man, Trevor Davis, 29, pleaded guilty to distribution of methamphetamine.
According to court documents and statements made during the plea hearing, on January 9, 2020, Davis met an informant in the parking lot of the Wendy’s restaurant on 16th Street in Huntington. Davis admitted to selling the informant one pound of methamphetamine for $4,000.
Davis faces at least five years and up to 40 years in prison when he is sentenced on May 2, 2022.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Drug Enforcement Administration (DEA) and the West Virginia State Police Drug and Violent Crime Task Force West.
United States District Judge Robert C. Chambers presided over the plea hearing. Assistant United States Attorney Stephanie S. Taylor 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. 3:21-cr-00177.
###
Hudson County Man Charged with Online Enticement of a Minor and Production of Child PornographyRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, man was charged today with enticing a minor victim online to produce images and videos of sexually explicit conduct, and producing child pornography, U.S. Attorney Philip R. Sellinger announced.
Erick Solis, 25, is charged by complaint with one count of enticement of a minor to engage in criminal sexual conduct and one count of production of child pornography. He is scheduled to appear by videoconference later today before U.S. Magistrate Judge André M. Espinosa.
According to the documents filed in this case and statements made in court:
From July 2020 to February 2021, Solis used a social media application to engage with two underage victims in sexually explicit conversations. Solis ultimately instructed both victims to take sexually explicit photographs and videos of themselves and send them to him. At least on one occasion, one of the victims complied.
The count of online enticement carries a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of life in prison and a $250,000 fine. The count of production of child pornography carries a mandatory minimum penalty of 15 years in prison, a maximum potential penalty of 30 years in prison, and a $250,000 fine.
U.S. Attorney Sellinger credited special agents with the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to these charges. He also thanked the Weehawken Police Department and Hudson County Prosecutor’s Office for their assistance.
The government is represented by Assistant U.S. Attorney Dong Joo Lee of the Violent Crimes Unit.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.