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Monday 8 November 2021
Ukrainian Arrested and Charged with Ransomware Attack on KaseyaRead the Press Release
The Justice Department announced today recent actions taken against two foreign nationals charged with deploying Sodinokibi/REvil ransomware to attack businesses and government entities in the United States.
An indictment unsealed today charges Yaroslav Vasinskyi, 22, a Ukrainian national, with conducting ransomware attacks against multiple victims, including the July 2021 attack against Kaseya, a multi-national information technology software company.
The department also announced today the seizure of $6.1 million in funds traceable to alleged ransom payments received by Yevgeniy Polyanin, 28, a Russian national, who is also charged with conducting Sodinokibi/REvil ransomware attacks against multiple victims, including businesses and government entities in Texas on or about Aug. 16, 2019.
According to the indictments, Vasinskyi and Polyanin accessed the internal computer networks of several victim companies and deployed Sodinokibi/REvil ransomware to encrypt the data on the computers of victim companies.
“Cybercrime is a serious threat to our country: to our personal safety, to the health of our economy, and to our national security,” said Attorney General Garland. “Our message today is clear. The United States, together with our allies, will do everything in our power to identify the perpetrators of ransomware attacks, to bring them to justice, and to recover the funds they have stolen from their victims.”
“Our message to ransomware criminals is clear: If you target victims here, we will target you,” said Deputy Attorney General Monaco. “The Sodinokibi/REvil ransomware group attacks companies and critical infrastructures around the world, and today’s announcements showed how we will fight back. In another success for the department’s recently launched Ransomware and Digital Extortion Task Force, criminals now know we will take away your profits, your ability to travel, and – ultimately – your freedom. Together with our partners at home and abroad, the Department will continue to dismantle ransomware groups and disrupt the cybercriminal ecosystem that allows ransomware to exist and to threaten all of us.”
“The arrest of Yaroslav Vasinskyi, the charges against Yevgeniy Polyanin and seizure of $6.1 million of his assets, and the arrests of two other Sodinokibi/REvil actors in Romania are the culmination of close collaboration with our international, U.S. government and especially our private sector partners,” said FBI Director Christopher Wray. “The FBI has worked creatively and relentlessly to counter the criminal hackers behind Sodinokibi/REvil. Ransomware groups like them pose a serious, unacceptable threat to our safety and our economic well-being. We will continue to broadly target their actors and facilitators, their infrastructure, and their money, wherever in the world those might be.”
“Ransomware can cripple a business in a matter of minutes. These two defendants deployed some of the internet’s most virulent code, authored by REvil, to hijack victim computers,” said Acting U.S. Attorney Chad E. Meacham for the Northern District of Texas. “In a matter of months, the Justice Department identified the perpetrators, effected an arrest, and seized a significant sum of money. The Department will delve into the darkest corners of the internet and the furthest reaches of the globe to track down cyber criminals.”
According to court documents, Vasinskyi was allegedly responsible for the July 2 ransomware attack against Kaseya. In the alleged attack against Kaseya, Vasinskyi caused the deployment of malicious Sodinokibi/REvil code throughout a Kaseya product that caused the Kaseya production functionality to deploy REvil ransomware to “endpoints” on Kaseya customer networks. After the remote access to Kaseya endpoints was established, the ransomware was executed on those computers, which resulted in the encryption of data on computers of organizations around the world that used Kaseya software.
Through the deployment of Sodinokibi/REvil ransomware, the defendants allegedly left electronic notes in the form of a text file on the victims’ computers. The notes included a web address leading to an open-source privacy network known as Tor, as well as the link to a publicly accessible website address the victims could visit to recover their files. Upon visiting either website, victims were given a ransom demand and provided a virtual currency address to use to pay the ransom. If a victim paid the ransom amount, the defendants provided the decryption key, and the victims then were able to access their files. If a victim did not pay the ransom, the defendants typically posted the victims’ stolen data or claimed they sold the stolen data to third parties, and victims were unable to access their files.
Vasinskyi and Polyanin are charged in separate indictments with conspiracy to commit fraud and related activity in connection with computers, substantive counts of damage to protected computers, and conspiracy to commit money laundering. If convicted of all counts, each faces a maximum penalty of 115 and 145 years in prison, respectively.
The $6.1 million seized from Polyanin is alleged to be traceable to ransomware attacks and money laundering committed by Polyanin through his use of Sodinokibi/REvil ransomware. The seizure warrant was issued out of the Northern District of Texas. Polyanin is believed to be abroad.
On Oct. 8, Vasinskyi was taken into custody in Poland where he remains held by authorities pending proceedings in connection with his requested extradition to the United States, pursuant to the extradition treaty between the United States and the Republic of Poland. In parallel with the arrest, interviews and searches were carried out in multiple countries, and would not have been possible without the rapid response of the National Police of Ukraine and the Prosecutor General’s Office of Ukraine.
The FBI’s Dallas and Jackson Field Offices are leading the investigation. Substantial assistance was provided by the Justice Department’s Office of International Affairs and the National Security Division’s Counterintelligence and Export Control Section.
Assistant U.S. Attorney Tiffany H. Eggers of the U.S. Attorney’s Office for the Northern District of Texas and Senior Counsel Byron M. Jones from the Justice Department’s Computer Crime and Intellectual Property Section are prosecuting the case.
The U.S. Attorney’s Office for the Northern District of Texas, the FBI’s Dallas and Jackson Field Offices, and the Criminal Division’s Computer Crime and Intellectual Property Section conducted the operation in close cooperation with Europol and Eurojust, who were an integral part of coordination. Investigators and prosecutors from several jurisdictions, including: Romania's National Police and the Directorate for Investigating Organised Crime and Terrorism; Canada’s Royal Canadian Mounted Police; France’s Court of Paris and BL2C (anti-cybercrime unit police); Dutch National Police; Poland’s National Prosecutor’s Office, Border Guard, Internal Security Agency, and Ministry of Justice; and the governments of Norway and Australia provided valuable assistance.
The U.S. Department of the Treasury Financial Crimes Enforcement Network (FinCEN), Department of Homeland Security's Cybersecurity and Infrastructure Security Agency (CISA), Germany’s Public Prosecutor’s Office Stuttgart and State Office of Criminal Investigation of Baden-Wuerttemberg; Switzerland’s Public Prosecutor’s Office II of the Canton of Zürich and Cantonal Police Zürich; United Kingdom’s National Crime Agency; U.S. Secret Service; Texas Department of Information Resources; BitDefender; McAfee; and Microsoft also provided significant assistance.
This case is part of the Department of Justice’s Ransomware and Digital Extortion Task Force, which was created to combat the growing number of ransomware and digital extortion attacks. As part of the task force, the Criminal Division, working with the U.S. Attorneys’ Offices, prioritizes the disruption, investigation, and prosecution of ransomware and digital extortion activity by tracking and dismantling the development and deployment of malware, identifying the cybercriminals responsible, and holding those individuals accountable for their crimes. The department, through the task force, also strategically targets the ransomware criminal ecosystem as a whole and collaborates with domestic and foreign government agencies as well as private sector partners to combat this significant criminal threat.
For more information about the Ransomware and Digital Extortion Task Force, read the Deputy Attorney General’s recent guidance memo on related investigations and cases. For more resources on ransomware prevention and response, visit StopRansomware.gov.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Two Men Plead Guilty in Multimillion-Dollar COVID-19 Relief SchemeRead the Press Release
Two individuals pleaded guilty today in the Southern District of Texas for their participation in a scheme to fraudulently obtain and launder millions of dollars in forgivable Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security Act.
According to court documents, Siddiq Azeemuddin, 42, of Naperville, Illinois, and Raheel Malik, 41, of Sugar Land, Texas, engaged in a scheme to defraud the SBA and certain SBA-approved PPP lenders by submitting false and fraudulent PPP loan applications. Azeemuddin and Malik also conspired to and did launder over $3 million in PPP loan funds through Azeemuddin’s business, Fascare International Inc., dba Almeda Discount Store (Almeda). As part of the scheme, Azeemuddin instructed Malik to fill out blank checks from companies that received PPP loans by putting the names of fake employees in the payee line. At Azeemuddin’s direction, Malik then cashed the checks at a financial institution and then transported the cash to other members of the conspiracy. In exchange for laundering the funds, Azeemuddin received 1% to 2% of each check cashed.
Azeemuddin pleaded guilty to one count of conspiracy to commit wire fraud and one count of money laundering. He is scheduled to be sentenced on March 7, 2022, and faces a maximum total penalty of 40 years in prison. Malik pleaded guilty to one count of conspiracy to commit wire fraud and money laundering. He is scheduled to be sentenced on March 7, 2022, and faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Acting U.S. Attorney Jennifer Lowery for the Southern District of Texas; Inspector General Hannibal “Mike” Ware of the SBA–Office of Inspector General (SBA-OIG); Special Agent in Charge Catherine Huber of the Federal Housing Finance Agency–Office of Inspector General (FHFA-OIG); Special Agent in Charge Mark B. Dawson of Homeland Security Investigations (HSI) Houston; Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation–Office of Inspector General (FDIC-OIG); and Inspector General J. Russell George of the Treasury Inspector General for Tax Administration (TIGTA) made the announcement.
The SBA-OIG, FHFA-OIG, HSI, FDIC-OIG, and TIGTA are investigating the case.
Trial Attorneys Louis Manzo and Della Sentilles of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Rodolfo Ramirez and Kristine Rollinson of the Southern District of Texas are prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Two Foreign Nationals Arrested for Trafficking Ivory and Rhinoceros Horn as Part of International Operation with the Democratic Republic of the CongoRead the Press Release
Herdade Lokua, 23, and Jospin Mujangi, 31, of Kinshasa, Democratic Republic of Congo (DRC), were arrested on Nov. 3 outside of Seattle, Washington, and were indicted by a federal grand jury for conspiracy, money laundering, smuggling and Lacey Act violations for trafficking elephant ivory and white rhinoceros horn from DRC to Seattle.
The 11-count indictment alleges that Lokua and Mujangi worked with a middleman to smuggle four packages into the United States. In August and September, 2020, the defendants sent three shipments containing a total of about 49 pounds of ivory by air freight to Seattle. In May 2021, they sent another package with approximately five pounds of rhinoceros horn. At the same time, the defendants conspired to conduct large transactions via ocean freight, offering the buyer more than two tons of elephant ivory, one ton of pangolin scales, and multiple intact rhinoceros horns. On Nov. 2, they arrived in Washington State to negotiate the details of such a deal and were arrested in Edmonds.
The arrests and indictment are part of “Operation Kuluna,” an international operation conducted between the Office of Homeland Security Investigations (HSI) in Seattle, the Government of the DRC, and the U.S. Embassy in Kinshasa, DRC. The investigation is ongoing – immediately after the arrests, the task force in DRC acted on information provided by HSI-Seattle to seize 2,067 pounds of ivory and 75 pounds of pangolin scales in Kinshasa worth approximately $3.5 million, all contraband related to wildlife trafficking.
In order to conceal the tusks and horn, the indictment states that Lokua and Mujangi had them cut into smaller pieces which were painted black. They were then mixed with ebony wood to avoid detection by customs authorities. The packages were all declared as “wood” with values between $50-$60. The buyer paid the defendants $14,500 for the ivory and $18,000 for the horn. Lokua and Mujangi also sold 55 pounds of pangolin scales to a U.S. buyer but ultimately did not ship them.
The indictment further alleges that the defendants paid bribes to authorities in Kinshasa in order to ship the merchandise, and discussed how larger shipments would be packed in 20-foot shipping containers and concealed in timber or corn in order to avoid detection.
Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division announced the arrests and indictment. The investigation in DRC is ongoing.
The Lacey Act is the nation’s oldest wildlife trafficking statute and prohibits, among other things, falsely labeling shipments containing wildlife. The United States, DRC, and approximately 181 other countries are signatories to the Convention on International Trade in Endangered Species of Wild Fauna and Flora (“CITES”). CITES is an international treaty that restricts trade in species that may be threatened with extinction. CITES has permit requirements for protected wildlife, and the indictment alleges that the defendants did not obtain any of the necessary papers or declarations from DRC or the United States.
The CITES treaty has listed the white rhinoceros (Ceratotherium simum) as a protected species since 1975 and the African elephant (Loxodanta africana) since 1977. All species of pangolin were added to the CITES appendix with the greatest level of protection in 2017. All three mammals are threatened by poaching and habitat loss.
If convicted, the defendants face a maximum of 20 years’ imprisonment for the smuggling and money laundering charges and five years for the conspiracy and Lacey Act violations.
HSI-Seattle conducted the investigation, and Customs and Border Protection and the Seattle Police Department assisted in arresting the defendants.
The government is represented by Trial Attorneys Patrick M. Duggan and Ryan C. Connors of the Environmental Crimes Section with assistance from the U.S. Attorney’s Office for the Western District of Washington.
An indictment is merely an allegation, and both defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law
Tulsa Man Whose Children Died in a Hot Vehicle Sentenced for Child NeglectRead the Press Release
A Tulsa man was sentenced Monday in federal court for leaving his two children unsupervised for more than four hours, at which time the children gained access to his parked vehicle and died due to extreme heat exposure, announced Acting U.S. Attorney Clint Johnson.
U.S. District Judge Claire V. Eagan sentenced Dustin Lee Dennis, 33, to 48 months in federal prison followed by five years of supervised release.
Dennis fell asleep on June 13, 2020, only to wake up and discover his two children deceased in the back seat of his pick-up truck. He pleaded guilty on July 13, 2021, to two counts of child neglect in Indian Country. Three-year-old Ryan and four-year-old Tegan were citizens of the Cherokee Nation, and the crime occurred within the boundaries of the Muscogee Nation Reservation.
Dennis fell asleep the afternoon of June 13, 2020, leaving his two children unsupervised. The children entered Dennis’s vehicle in the driveway, were unable to get out of the truck, and died from exposure to extremely high temperatures while being trapped in the truck.
In his plea agreement, Dennis admitted that while caring for his children on June 12 and 13, 2020, he got high on cocaine and stayed up playing video games.
In court, Assistant U.S. Attorney Gina Gilmore outlined the evidence against the defendant. Dennis and his brother discussed purchasing and using cocaine days before the death of the children. On June 12, 2020, his brother indicated that he had the “stuff,” referencing cocaine, and the two could play video games at his home. Dustin later texted his brother that he would have to bring his children since his mother could not take care of them. Dennis then wrote that he was headed to his brother’s house.
Surveillance video showed Dennis and the children returning home just before 1 am on June 13. At 1:03 am, Dennis indicated in a text to his brother that he was turning his game on and later texted that he did a couple of lines and that he hated chopping up cocaine when it’s moist. He indicated he was about to do some more.
Surveillance video later showed Dennis leaving his residence alone at approximately noon on June 13 for 11 minutes during which time Dennis stated he drove to a QuikTrip. When Dennis returned home from the convenience store, he fell asleep. Surveillance footage showed the two children trying to get into Dennis’ truck at 1:22 pm when the vehicle’s alarm went off. They attempted a second time at 1:29 pm and successfully gained access to the truck. The video later captured Dennis exiting his apartment and searching for his children approximately four hours later, at 5:32 pm. Within minutes he discovered the children deceased in the truck.
Dustin Dennis was initially indicted on Aug. 7, 2020. On March 4, 2021, Dennis was charged in a superseding indictment with four counts of child neglect in Indian Country. He and his brother, Michael Dennis, were also charged with 12 counts of use of a communication facility in committing, causing, and facilitating the commission of a drug trafficking felony.
Michael Dennis pleaded guilty to possession of a controlled substance on July 29, 2021, and was sentenced Monday to 18 months of probation.
The FBI and Tulsa Police Department conducted the investigation. Assistant U.S. Attorney Gina S. Gilmore prosecuted the case.
Three Charged with Hartford-Area Fentanyl and Cocaine Trafficking OffensesRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration for New England, today announced that a federal grand jury in Hartford has returned a five-count indictment charging DENIS MURTIC, 36, of Farmington; ALEXANDER RODRIGUEZ, 45, of East Windsor; and EFRAIN ROSARIO, 41, of Hartford, with fentanyl and cocaine trafficking offenses.
As alleged in court documents, since September 2020, the DEA’s Hartford Task Force has been investigating Murtic for trafficking large quantities of fentanyl and cocaine. On September 3, 2020, a court-authorized search of a Hartford apartment connected to Murtic revealed thousands of wax folds of fentanyl, more than 700 grams of cocaine, and items used to process and package narcotics for distribution. On October 18, 2021, investigators made a controlled purchase of approximately 50 grams of fentanyl from Murtic and Rodriguez at a parking lot in East Hartford. After the transaction, investigators observed Murtic and Rodriguez travel to an apartment on Wakefield Circle in East Hartford. On October 26, 2021, Murtic, Rodriguez and Rosario were arrested at the apartment, which was being used as a narcotics processing and packing mill. A search of the apartment revealed tens of thousands of glassine bags and wax folds of fentanyl, a compressed brick of cocaine weighing approximately one kilogram, a half-kilogram of cocaine, and numerous narcotics processing and packaging items, including a kilogram press.
The indictment, which was returned on November 3, charges Murtic, Rodriguez and Rosario with conspiracy to distribute, and to possess with intent to distribute, 400 grams or more of fentanyl and 500 grams or more of cocaine. The defendants are also charged in multiple counts of possessing and/or distributing fentanyl and cocaine. If convicted of the most serious charges, each faces a mandatory minimum term of imprisonment of 10 years a maximum term of imprisonment of life.
Acting U.S. Attorney Boyle stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Murtic and Rosario are currently detained and Rodriguez is released on a $100,000 bond.
The DEA’s Hartford Task Force includes personnel from the DEA Hartford Resident Office, the Connecticut State Police, and the Bristol, Hartford, East Hartford, Enfield, Manchester, New Britain, Rocky Hill, Wethersfield, Windsor Locks and Willimantic Police Departments. This case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Third admitted child pornographer sentenced to three decades in federal prisonRead the Press Release
BRUNSWICK, GA: An Effingham County man who admitted to producing child pornography has been sentenced to 30 years in federal prison.
Carl Scott Ruger, 42, of Guyton, Ga., was sentenced to 360 months in federal prison after pleading guilty to Production of Child Pornography, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. U.S. District Court Judge Lisa Godbey Wood also ordered Ruger to pay restitution of $1.5 million, and after completion of his prison term to register as a sex offender and serve a life term of supervised release.
There is no parole in the federal system.
“Carl Ruger is a loathsome, dangerous predator, and our streets are safer now that he is behind bars,” said Acting U.S. Attorney Estes. “In collaboration with our law enforcement partners, we will relentlessly work to protect the most vulnerable members of our communities.”
Two related defendants are serving federal prison terms after also pleading guilty to Production of Child Pornography. Richard Hunt Moore, 50, of Hephzibah, Ga., is serving 264 months in prison, and Charles Casey Gardner, 41, of Brooklet, Ga., is serving 180 months. A fourth target in the investigation killed himself in Illinois before questioning.
The men came to the attention of law enforcement agencies in January 2019 when Columbia County Sheriff’s deputies were called to a hotel in Martinez, Ga., by a hotel employee who had been alerted by a 14-year-old boy accompanying Moore. After questioning Moore, sheriff’s office investigators and the FBI found images of child pornography of Moore’s phone. Those images led to the discovery of the other defendants.
As referenced during his sentencing hearing, prior to his 2019 arrest, Ruger worked in custodial positions in multiple Georgia counties including as a substitute teacher, bus driver, deputy jailer, and as a corrections officer in state and federal prisons.
“This case is a great example of the relationship between the community and law enforcement working together to keep our communities safe,” said Maj. Sharif Chochol, with the Field Operations Bureau of the Columbia County Sheriff’s Office. “’If you see something, say something’ is more than just a catch phrase; it works. A child predator has been taken down thanks to an observant citizen and a team of dedicated law enforcement professionals.”
“Predators like Ruger are despicable and have no place in civilized society,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI is thankful for our law enforcement partnerships that make it possible to put sexual predators, like Ruger, behind bars for significant periods of time where they cannot victimize any more children.”
“Thankfully, Ruger will now face the consequences of his despicable actions and will no longer be able to hurt innocent children,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “This investigation was started because someone saw something wrong and reported it. We ask that if you see something out of place, you report it, you could be saving someone’s life”
The cases were investigated by Homeland Security Investigations and the FBI, along with the Columbia County Sheriff’s Office and the Effingham County Sheriff’s Office, and prosecuted for the United States by Assistant U.S. Attorney and Project Safe Childhood Coordinator Tara M. Lyons, with support from Assistant U.S. Attorney Mary Sue Robichaux in the Asset Recovery Unit.
Anyone with information on suspected child sexual exploitation can contact the National Center for Missing and Exploited Children at 800-843-5678, or https://report.cybertip.org/.
Texas Woman Pleads Guilty to Unemployment Fraud Related to COVID-19 PandemicRead the Press Release
BOSTON – A Texas woman pleaded guilty today to her involvement in a scheme to fraudulently claim COVID-19-related unemployment assistance.
Donna Wasson, 37, of San Antonio, Texas, pleaded guilty to three counts of wire fraud. U.S. District Court Chief Judge F. Dennis Saylor IV scheduled sentencing for March 8, 2022. Wasson was indicted on May 27, 2021.
The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) created a temporary federal unemployment insurance program called Pandemic Unemployment Assistance (PUA). PUA, administered by the Massachusetts Department of Unemployment Assistance, provides unemployment insurance benefits for individuals who are not eligible for other types of unemployment benefits (e.g., the self-employed, independent contractors, or gig economy workers).
Wasson applied for Massachusetts unemployment benefits despite residing in Texas and receiving unemployment benefits via the Texas Workplace Commission. In addition, Wasson carried out instructions concerning other fraudulent unemployment claims from a former Massachusetts Department of Unemployment Assistance (DUA) employee, and accessed unemployment claims under multiple stolen identities to fraudulently obtain benefits to which she was not entitled.
The charge of wire fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000. The charge of aggravated identity theft provides for a sentence of up to two years in prison, one year of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
The investigation is being conducted by Homeland Security’s Investigation’s Document and Benefit Fraud Task Force (DBFTF), a specialized field investigative group comprised of personnel from various local, state, and federal agencies with expertise in detecting, deterring, and disrupting organizations and individuals involved in various types of document, identity, and benefit fraud schemes.
Acting United States Attorney Nathaniel R. Mendell; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston; and Jonathan Mellone, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Labor Racketeering and Fraud Investigations made the announcement today. Special assistance was provided by the Massachusetts Department of Unemployment Assistance, Program Integrity Unit. Assistant U.S. Attorneys William Abely, Chief of Mendell’s Criminal Division, and Dustin Chao, Chief of Mendell’s Public Corruption & Special Prosecutions Unit, are prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Teach Them Diligently Resolves ADA Complaint by Providing Interpreting Services for the Deaf at Its ConventionsRead the Press Release
NASHVILLE – In response to a civil rights complaint received by this Office, Teach Them Diligently (TTD), a Christian-based home school resource community of Greenville, South Carolina, addressed the interpreting needs of deaf attendees at its Christian homeschool convention in Nashville, announced Acting U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee. TTD also agreed to address requests for interpreting services and other accommodations at future conferences in accordance with the Americans with Disabilities Act (ADA).
“We appreciate the willingness of Teach Them Diligently to resolve these issues swiftly and address the greater needs of all individuals with disabilities who may utilize TTD’s resources in the future,” said Acting U.S. Attorney Wildasin. “We welcome partnering with national and local civil rights organizations to ensure that both the citizens of, and visitors to, the Middle District of Tennessee have equal access to all events being offered.”
On March 11, 2021, the United States notified TTD that it was investigating a complaint from the Civil Rights Education and Enforcement Center (CREEC) that TTD had refused to confirm that it would be providing American Sign Language (ASL) interpreting services to three individuals attending a future TTD conference at the Gaylord Opryland Hotel in Nashville, which may be in violation of Title III of the ADA. TTD responded to the United States’ request and agreed to provide the interpreting services at the convention. Thereafter, the complainants confirmed that interpreters were provided.
Following the Nashville TTD convention, TTD also agreed to make certain changes to its website so that attendees of future conferences, not just in Tennessee but throughout the United States, could submit requests for a reasonable accommodation needed in accordance with the ADA, which was not limited to interpreting needs. After the United States confirmed that TTD implemented changes to its website, the United States and TTD entered into a Letter of Resolution on October 4, 2021, which confirmed that TTD will address the needs of individuals covered by the ADA at its future conventions.
General information about the ADA is available through the ADA information line at 800-514-0301 (voice), 800-514-0383 (TTY), or on the ADA homepage at www.ada.gov. If you believe your civil rights have been violated, including ADA rights, you may submit a report to the Department of Justice at https://civilrights.justice.gov/report/ .
The Letter of Resolution does not constitute a finding by the United States that TTD is in full compliance with the ADA, nor does it constitute an admission by TTD of fault or noncompliance with the ADA.
Assistant U.S. Attorney Kara F. Sweet represented the United States in the matter.
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St. Thomas Resident Sentenced for Possessing MarijuanaRead the Press Release
St. Thomas, USVI – United States Attorney Gretchen C.F. Shappert announced today that Tashawn T.A. Warner, 24, resident of St. Thomas, V.I., was sentenced to time served in prison for possession of marijuana. The Court also ordered the forfeiture of his vehicle.
According to court documents, on December 11, 2020, Tashawn T.A. Warner was arrested on St. Thomas pursuant to a federal arrest warrant. Immediately prior to his arrest, Warner was observed loading bags into the trunk of a 2020 Gray Toyota Corolla registered to Warner in Florida with Florida license plates. After Warner closed the trunk and got into the Corolla, a Black Infinity G37x, drove up the hill towards Warner at a high rate of speed and stopped next to Warner’s vehicle. Warner exited the Corolla, removed the bags from the trunk of the Corolla, and placed something into the trunk of the G37x. Warner then briefly opened and closed one of the passenger side doors of the G37x, which then drove off. As Warner got back into the Corolla, he was arrested. At the time of his arrest Warner had $5,520 in the pocket of his pants.Later, on December 11, 2020, federal agents obtained federal search warrants for both the Corolla and Infinity G37x. The Corolla contained the backpack that agents had previously seen Warner place into the vehicle, prior to his arrest. The backpack contained a glass jar containing two sandwich bags of approximately 90 grams of marijuana. The center console of the Corolla contained approximately $500 cash, a small scale, small baggies, and rolling papers.
This case was investigated by the Federal Bureau of Investigation (FBI) and prosecuted by Assistant U.S. Attorney Juan Albino.
Sioux Falls Man Sentenced for Felon in Possession of a FirearmRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Sioux Falls, South Dakota, man convicted of Felon in Possession of a Firearm was sentenced on November 4, 2021, by U.S. District Judge Karen E. Schreier.
Brian Kadinger, age 48, was sentenced to 63 months in federal prison, followed by three years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Kadinger was indicted by a federal grand jury on January 12, 2021. He pled guilty on August 20, 2021.
The conviction stemmed from an incident on May 9, 2020, in Sioux Falls, when Kadinger knowingly possessed a handgun in his vehicle. A Sioux Falls police officer observed Kadinger sleeping in his vehicle at a storage facility. Kadinger had ingested methamphetamine and the officer found the 9mm Glock after Kadinger was arrested. Kadinger knew that he had previously been convicted of a felony and also knew that he was prohibited from possessing any firearms.
The firearm had been shipped and transported in interstate commerce before Kadinger possessed it.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Sioux Falls Police Department. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Kadinger was immediately turned over to the custody of the U.S. Marshals Service.
Sevier County Resident Convicted of Drug Trafficking and Firearms Offenses and the Distribution of Drugs Resulting in an Overdose DeathRead the Press Release
KNOXVILLE, Tenn. – On November 5, 2021, following a four-day trial in the United States District Court in Knoxville, Tennessee, a jury convicted Stacey Edward Williams, Jr., 42, currently of Sevierville, Tennessee, and formerly of Detroit, Michigan, of eight counts, including a conspiracy to distribute heroin, fentanyl, and acetyl fentanyl, multiple counts of possession and distribution of heroin, fentanyl, and acetyl fentanyl, the distribution of fentanyl and acetyl fentanyl resulting in death, and the possession of a firearm by a convicted felon.
Sentencing will be set in 2022 in the United States District Court in Knoxville, Tennessee before the Honorable Katherine A. Crytzer. Williams faces a mandatory term of imprisonment of 20 years and up to life in prison and other penalties.
At trial, the United States presented evidence that investigators with the Sevier County Street Crimes Unit used confidential informants on January 30, February 9, and November 9, 2018, to purchase heroin, fentanyl, and acetyl fentanyl from Williams. The evidence further showed that officers and detectives with the Sevier County Sheriff’s Office responded to the overdose death of a Kodak, Tennessee resident on Thanksgiving morning, November 22, 2018. Through the overdose investigation, it was determined that Williams distributed the drugs that resulted in that death. Finally, the prosecution also presented evidence that on March 27, 2019, agents seized quantities of heroin, fentanyl, and acetyl fentanyl, a firearm and ammunition, and over $10,000 in cash from Williams.
Acting United States Attorney Francis M. Hamilton III and Homeland Security Investigations (“HSI”) Special Agent in Charge Jerry C. Templet Jr. made the announcement.
This case was prosecuted as part of Operation Synthetic Opioid Surge (SOS), a Department of Justice program that seeks to reduce the supply of deadly synthetic opioids in high impact areas and to identify wholesale distribution networks and international and domestic suppliers.
Law enforcement agencies participating in the joint investigation which led to the indictment and subsequent conviction of Williams include the Sevier County Sheriff’s Office (“SCSO”) and HSI with the participation and assistance of the Sevier County Street Crimes Unit, the Tennessee Bureau of Investigation, and the U.S. Marshal’s Service.
Assistant United States Attorneys Brent N. Jones and Anne-Marie Svolto represented the United States at trial.
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Seven Individuals Charged with Firearm and Drug Conspiracy ChargesRead the Press Release
NEW ORLEANS - U.S. Attorney Duane A. Evans announced today that a federal grand jury returned a 14-count Superseding Indictment on October 28, 2021 against AL VERNON BROWN, (BROWN), age 48, CHRISTOPHER JOHNSON, age 37, KEVIN JOHNSON, age 30, DONALD MYLES (MYLES), age 43, ERNEST GREEN (GREEN), age 53, JOHN CRAWFORD (CRAWFORD), age 38, and SUSAN BREAUX (BREAUX), age 46. To protect the integrity of the investigation, the Superseding Indictment remained sealed until now.
The Superseding Indictment charged the defendants with the following Federal Controlled Substances and Gun Control Acts:
Count 1: Conspiracy to distribute and possession with intent to distribute 400 grams or more of a mixture and substance containing a detectable amount of N-phenyl-N-[1-(2-phenylethyl)-4-piperidinyl] (fentanyl), 1 kilogram or more of a mixture and substance containing a detectable amount of heroin, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A), and 100 grams or more of a mixture and substance containing a detectable amount of heroin, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B).
Statutory Penalties: mandatory minimum of ten (10) years up to a maximum of life imprisonment, up to a $10,000,000 fine, at least five (5) years supervised release (fentanyl and heroin), and a $100 mandatory special assessment fee; mandatory minimum of five (5) years up to a maximum of forty (40) years imprisonment, up to a $5,000,000 fine, at least four (4) years supervised release (heroin), and a $100 mandatory special assessment fee.
Defendants: BROWN, CHRISTOPHER JOHNSON, KEVIN JOHNSON, BREAUX, MYLES, GREEN, and CRAWFORD
Count 2: Possession with intent to distribute four hundred (400) grams or more of a mixture and substance containing a detectable amount of N-phenyl-N-[1-(2-phenylethyl)-4-piperidinyl] (fentanyl) and possession with intent to distribute 100 grams or more of a mixture and substance containing a detectable amount of heroin, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(A), 841(b)(1)(B), and Title 18, United States Code, Section 2.
Statutory Penalties: mandatory minimum of (ten) 10 years up to a maximum of life imprisonment, up to a $10,000,000 fine, at least five (5) years supervised release (fentanyl and heroin); mandatory minimum of five (5) years up to a maximum of forty (40) years imprisonment, up to a $5,000,000 fine, at least four (4) years supervised release (heroin), and a $100 mandatory special assessment fee.
Defendants: BROWN, CHRISTOPHER JOHNSON
Count 3: Convicted felon in possession of firearms, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2).
Statutory Penalties: up to ten (10) years imprisonment, up to a $250,000 fine, up to three (3) years supervised release, and a $100 mandatory special assessment fee.
Defendant: CHRISTOPHER JOHNSON
Count 4: Possession of firearms in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A)(i)
Statutory Penalties: mandatory minimum of five (5) years up to a maximum of life to run consecutively, not more than $250,000 fine, up to three (5) years supervised release, and a $100 mandatory special assessment fee.
Defendant: CHRISTOPHER JOHNSON
Count 5: Use of a communication facility, in violation of Title 21, United States Code, Section 843(b) and Title 18, United States Code, Section 2.
Statutory Penalties: up to four (4) years imprisonment, up to a $250,000 fine, up to one (1) year supervised release, and a $100 mandatory special assessment fee.
Defendants: CHRISTOPHER JOHNSON, MYLES
Count 6: Use of a communication facility, in violation of Title 21, United States Code, Section 843(b) and Title 18, United States Code, Section 2
Statutory Penalties: up to four (4) years imprisonment, up to a $250,000 fine, up to one (1) year supervised release, and a $100 mandatory special assessment fee.
Defendants: KEVIN JOHNSON, MYLES
Count 7: Use of a communication facility, in violation of Title 21, United States Code, Section 843(b) and Title 18, United States Code, Section 2
Statutory Penalties: up to four (4) years imprisonment, up to a $250,000 fine, up to one (1) year supervised release, and a $100 mandatory special assessment fee.
Defendants: CHRISTOPHER JOHNSON, BROWN
Count 8: Possession with intent to distribute 100 grams or more of a mixture and substance containing a detectable amount of heroin, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(B), and Title 18, United States Code, Section 2
Statutory Penalties: mandatory minimum of five (5) years up to a maximum of forty (40) years imprisonment, up to a $5,000,000 fine, at least four (4) years supervised release, and a $100 mandatory special assessment fee.
Defendants: BREAUX, CHRISTOPHER JOHNSON, KEVIN JOHNSON, and BROWN
Count 9: Possession with intent to distribute a quantity of methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C).
Statutory Penalties: up to twenty (20) years imprisonment, up to a $1,000,000 fine, at least three (3) years supervised release, and a $100 mandatory special assessment fee.
Defendant: BREAUX
Count 10: Possession with intent to distribute a quantity of heroin, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(C) and Title 18, United States Code, Section 2.
Statutory Penalties: up to twenty (20) years imprisonment, up to a $1,000,000 fine, at least three (3) years supervised release, and a $100 mandatory special assessment fee.
Defendants: CHRISTOPHER JOHNSON, KEVIN JOHNSON
Count 11: Possession with intent to distribute 50 kilograms of marijuana or less, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(D).
Statutory Penalties: up to five (5) years, up to a $250,000 fine and at least two (2) years supervised release, and a $100 mandatory special assessment fee.
Defendant: KEVIN JOHNSON
Count 12: Possession with intent to distribute a quantity of cocaine, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(C) and Title 18, United States Code, Section 2.
Statutory Penalties: up to twenty (20) years imprisonment, up to a $1,000,000 fine, at least three (3) years supervised release, and a $100 mandatory special assessment fee.
Defendant: GREEN
Count 13: Possession of firearms in furtherance of a drug trafficking crime, in violation of 18, United States Code, Section 924(c)(1)(A)(i)
Statutory Penalties: a mandatory minimum of five (5) years up to a maximum of life to run consecutively, not more than $250,000 fine, up to five (5) years supervised release, and a $100 mandatory special assessment fee.
Defendant: GREEN
Count 14: Convicted felon in possession of firearms, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2)
Statutory Penalties: up to ten (10) years imprisonment, up to a $250,000 fine, up to three (3) years supervised release, and a $100 mandatory special assessment fee.
Defendant: GREEN
In September 2020, the Federal Bureau of Investigation New Orleans Gang Task Force (“the Task Force”) initiated an investigation after receiving information about an increase in violent crimes around the 2600 block of Felicity Street and the 1600 block of Magnolia Street in New Orleans, Louisiana where a local car wash and an adjoining barbershop are located. During the investigation, the Task Force learned MYLES and CRAWFORD sold heroin and fentanyl while GREEN sold cocaine at the aforementioned locations. They also learned BROWN, a California resident, supplied heroin and fentanyl to CHRISTOPHER JOHNSON and KEVIN JOHNSON. KEVIN and CHRISTOPHER JOHNSON supplied heroin and fentanyl to MYLES. BREAUX bought heroin from KEVIN and CHRISTOPHER JOHNSON. So far, the Task Force has confiscated over 1.6 kilograms of heroin, 935.9 grams of fentanyl, multiple firearms, and $112,000 cash.
United States Attorney Evans reiterated that a Superseding Indictment is merely a charging document and that the guilt of each defendant must be proven beyond a reasonable doubt.
The U.S. Federal Bureau of Investigation New Orleans Gang Task Force, with the assistance of the New Orleans Police Department, Jefferson Parish Sheriff’s Office, and Gretna Major Crimes Task Force, led the investigation. Assistant United States Attorney Bayonle Osundare is in charge of the prosecution.
Rock Island Man Sentenced to 84 Months in Prison for Possession of a Firearm by a FelonRead the Press Release
ROCK ISLAND, Ill. – A Rock Island, Illinois, man, Michael Eugene Dickerson, 34, was sentenced on November 4, 2021, to 84 months’ imprisonment for possession of a firearm by a felon.
At Dickerson’s sentencing hearing, Chief United States District Judge Sara Darrow found that Dickerson posed a great risk to the public and a sentence above the guideline range was warranted based on Dickerson’s “very high likelihood to recidivate.”
Also at the hearing, the government presented evidence that on October 3, 2019, Dickerson and an accomplice drove around in a car with firearms intending to hold up another individual at gunpoint. Dickerson and his accomplice then held up an innocent pedestrian at gunpoint before realizing the victim was not the person for whom they were looking.
Dickerson pleaded guilty in February 2021.
The statutory penalties for possession of a firearm by a felon include up to ten years in prison.
The Rock Island Police Department and the Bureau of Alcohol, Tobacco, and Firearms investigated the case. Assistant U.S. Attorney Alyssa Raya represented the government in the prosecution.
Rock Island Man Sentenced to 166 Months in Prison for Armed Robbery ConspiracyRead the Press Release
ROCK ISLAND, Ill. – A Rock Island, Illinois, man, Terrance Jermaine “T.J.” Clay, 44, was sentenced on November 4, 2021, to 166 months’ imprisonment for conspiracy to commit robbery, robbery, and possession of a firearm in furtherance of robbery.
At Clay’s sentencing hearing, Chief United States District Court Judge Sara Darrow found that Clay was the leader of a conspiracy to rob drug dealers in the Quad Cities. She noted that Clay and his coconspirators placed GPS monitoring devices on their victims’ vehicles to monitor their habits and routes to determine when and where the victims were likely to have valuable contraband.
Chief Judge Darrow also found that on November 11, 2017, Clay and his coconspirators robbed and carjacked two people in Moline, Illinois, at gunpoint. During the robbery, one of the guns discharged and one of the victims was pistol whipped. Clay and his coconspirator later lit the victim’s car on fire in Moline, Illinois.
Clay pleaded guilty in July 2021. His co-defendant Kelsey Dwayne Bragg was sentenced to 190 months’ imprisonment on February 16, 2021, following a plea of guilty.
The statutory penalties for conspiracy to commit robbery and robbery include up to twenty years’ imprisonment. Possession of a firearm in furtherance of robbery carries a mandatory minimum term of ten years and up to life imprisonment.
“This case is a good example of how drug dealers plague our communities,” said Acting U.S. Attorney Douglas J. Quivey. “The threat and danger is real and sophisticated. The United States Attorney’s Office will continue to work with law enforcement to prosecute and abate the continuing problem.”
The Rock Island Police Department; the Scott County, Iowa, Sheriff’s Office; and the Drug Enforcement Administration investigated the case. Assistant U.S. Attorney Alyssa Raya represented the government in the prosecution.
Rock Island Man Pleads Guilty to Unlawful Possession of a Firearm by a FelonRead the Press Release
ROCK ISLAND, Ill. – Robert Barnes, 29, of the 900 block of 21st Street in Rock Island, Illinois, pleaded guilty on November 3, 2021, to unlawfully possessing a firearm as a felon. Sentencing for Barnes has been scheduled for March 2, 2022, in federal court in Davenport, Iowa.
At the change-of-plea hearing before Chief U.S. District Court Judge Sara Darrow, Barnes admitted to possessing a firearm despite knowing that it was unlawful to do so because of his prior felony conviction. In presenting a factual basis for the conviction, the government described how, in November of 2019, a Rock Island police officer stopped a car in which Barnes was a passenger. During the stop, the officer discovered an uncased and loaded handgun under Barnes’s seat.
Barnes remains in the custody of the U.S. Marshals while awaiting sentencing.
At sentencing, Barnes faces statutory penalties of up to ten years in prison, a fine of up to $250,000, and up to three years of supervised release.
The Rock Island Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Assistant U.S. Attorney Alyssa Raya is representing the United States in the prosecution.
Rapid City Man Charged with Illegal Possession of FirearmRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Possession of a Firearm by a Prohibited Person.
Mason Means, age 23, was indicted on October 21, 2021. He appeared before U.S. Magistrate Judge Daneta Wollmann on November 1, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge stems from Means, a previously convicted felon who is prohibited from possessing firearms, knowingly possessing a Cobra, model CA-280, .380 caliber semi-automatic pistol in Pine Ridge in March 2021. The charge is merely an accusation and Means is presumed innocent until and unless proven guilty.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Benjamin Patterson is prosecuting the case.
Means was detained pending trial. A trial date has not been set.
Rapid City Man Charged with Illegal Possession of AmmunitionRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Possession of Ammunition by a Prohibited Person.
Elias LaPointe, age 28, was indicted on October 21, 2021. He appeared before U.S. Magistrate Judge Daneta Wollmann on November 1, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge stems from LaPointe, a previously convicted felon who is prohibited from possessing firearms or ammunition, knowingly being in possession of multiple rounds of .45 AUTO caliber ammunition in Rapid City in July 2021. The charge is merely an accusation and LaPointe is presumed innocent until and unless proven guilty.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Rapid City Police Department. Assistant U.S. Attorney Benjamin Patterson is prosecuting the case.
LaPointe was detained pending trial. A trial date has not been set.
Pine Ridge Woman Pleads Not Guilty to Assaulting Two Federal OfficersRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Pine Ridge, South Dakota, woman has been indicted by a federal grand jury for two counts of Assaulting a Federal Officer.
Brianna Brave Heart, age 37, was indicted on October 21, 2021. She appeared before U.S. Magistrate Judge Daneta Wollmann on November 3, 2021, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is eight years in federal prison and/or a $250,000 fine, three years of supervised release, and a $100 assessment to the Federal Crime Victims Fund on each charge. Restitution may also be ordered.
The charges relate to Brave Heart assaulting two federal officers who were employed with the Oglala Sioux Tribe Department of Public Safety on December 25, 2020.
The investigation is being conducted by the Oglala Sioux Tribe Department of Safety. U.S. Attorney Heather Sazama is prosecuting the case.
Brave Heart was released from custody pending trial. A trial date has been set for January 11, 2022.
Philadelphia Felon Sentenced to Eight Years for Illegally Possessing a GunRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that earlier today Robert Holloway, 23, of Philadelphia, PA, was sentenced to eight years in prison, and three years of supervised release by United States District Judge Gene E.K. Pratter for being a felon in possession of a firearm.
In June 2019, the defendant pleaded guilty to the Indictment which charged him with one count of unlawful possession of a firearm by a felon. The charge stems from an incident in July 2018, during which Philadelphia Police Department officers on patrol in the Kensington neighborhood of Philadelphia encountered Holloway and observed what appeared to be the handle of a gun sticking out of his pants waistband. One officer ordered the defendant to stop, but he fled instead and discarded the gun on the street. Holloway was apprehended and a Hi-Point .45 caliber pistol was recovered from the area where the defendant was observed throwing it away.
“As we near the end of a year with a record number of homicides in Philadelphia mostly involving guns,” said Acting U.S. Attorney Williams, “we and our law enforcement partners are working harder than ever on our ‘All Hands On Deck’ initiative, putting repeat criminal offenders like Holloway behind bars when they illegally possess guns on the street.”
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and is being prosecuted by Assistant United States Attorney Kevin Jayne.
Parkersburg Man Sentenced to Five Years in Prison for Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – Justin Andrew Beardsley, 33, of Parkersburg, was sentenced to five years in federal prison for possession with the intent to distribute methamphetamine.
According to court records, the Parkesburg Police Department conducted a traffic stop of Beardsley on June 1, 2019. After a drug dog alerted on the vehicle, police searched it and located approximately 9.5 grams of methamphetamine, three loaded firearms, body armor, and miscellaneous ammunition. In his plea agreement, Beardsley admitted that in the weeks leading up to June 1, 2019, he had distributed between 200 grams and 350 grams of methamphetamine.
United States Attorney William S. Thompson made the announcement and commended the investigative work of the Parkersburg Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
United States District Judge Joseph R. Goodwin imposed the sentence. Assistant United States Attorney Joshua C. Hanks handled 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. 2:20-cr-00060.
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Ohio man sentenced for methamphetamine and firearms chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – John Palmer, of Lore City, Ohio, was sentenced today to 63 months of incarceration for drug and firearms charge, United States Attorney William J. Ihlenfeld, II announced.
Palmer, 57, pleaded guilty in June 2021 to one count of “Possession with Intent to Distribute Methamphetamine” and one count of “Unlawful Possession of Firearm as a Felon.” Palmer, a person prohibited from having a firearm because of a prior conviction, admitted to having methamphetamine and two pistols in February 2018 in Harrison County.
Assistant U.S. Attorney Andrew R. Cogar prosecuted the case on behalf of the government. The Greater Harrison Drug Task Force, a HIDTA-funded initiative and the Bureau of Alcohol, Tobacco, Firearms & Explosives investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Related case here: https://www.justice.gov/usao-ndwv/pr/ohio-and-west-virginia-residents-indicted-drug-and-firearms-charges
New Orleans Man Sentenced for Drug and Firearms OffensesRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that on November 4, 2021, JERMAINE COOPER, age 29, of New Orleans, was sentenced by United States District Judge Mary Ann Vial Lemmon after previously pleading guilty to drug and firearms offenses.
Specifically, COOPER previously pled guilty to one count of conspiracy to distribute and possess with the intent to distribute 1 kilogram or more of heroin, in violation of 21 U.S.C. §§ 841(a)(1), 841(b)(1)(B), and 846, and possession of a firearm in furtherance of a drug trafficking crime, in violation of 18 U.S.C. § 924(c)(1)(A)(i).
According to court records, COOPER and others conspired to distribute heroin in the New Orleans metropolitan area and elsewhere. Additionally, COOPER possessed four firearms in furtherance of his drug trafficking crimes, including a Smith and Wesson nine-millimeter pistol, a Glock Model 27 nine-millimeter pistol, an HK nine-millimeter pistol, and a Glock Model 19X nine-millimeter firearm.
Judge Lemmon sentenced COOPER to a term of imprisonment of 126 months, 5 years of supervised release and a $100 mandatory special assessment fee.
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.
U.S. Attorney Evans praised the work of the Drug Enforcement Administration, New Orleans Police Department and Kenner Police Department in investigating this matter. Assistant United States Attorney Jonathan L. Shih is in charge of the prosecution.
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New Mexico Man Sentenced on Firearm ChargeRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a New Mexico man convicted of Possession of a Firearm by a Prohibited Person was sentenced on November 4, 2021, by Judge Jeffrey L. Viken, U.S. District Court.
Cody Newitt, age 34, was sentenced to three years in federal prison, followed by three years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Newitt was indicted by a federal grand jury on July 23, 2020, and pleaded guilty on July 9, 2021. The conviction stems from Newitt, a previously convicted felon who is prohibited from possessing firearms, knowingly possessing a CZUB, model CZ 75 Compact, 9mm Luger caliber semi-automatic pistol, which was found after Newitt came into contact with law enforcement in January 2020 at Rapid City.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the South Dakota Highway Patrol. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Newitt was immediately remanded to the custody of the U.S. Marshals Service.
New Jersey man admits to role in drug conspiracyRead the Press Release
MARTINSBURG, WEST VIRGINIA – Aquilino Javier Lorenzo-Rivera, of Blackwood, New Jersey, has admitted to his role in a drug conspiracy that spanned several states, United States Attorney William J. Ihlenfeld, II announced.
Lorenzo-Rivera, 37, pleaded guilty today to one count of “Distribution of Forty Grams or More of Fentanyl.” Lorenzo-Rivera admitted to distributing nearly 34 grams of acetyl fentanyl (synthetic fentanyl) and more than 241 grams of a fentanyl mixture. A lethal dose of fentanyl is two milligrams.
Lorenzo-Rivera faces at least five and up to 40 years of incarceration and a fine of up to $5,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
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.
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.
Assistant U.S. Attorney Lara Omps-Botteicher and Special Assistant U.S. Attorney C. Lydia Lehman, also with the Berkeley County Prosecuting Attorney’s Office, are prosecuting the case on behalf of the government. The FBI; Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms & Explosives; and the Eastern Panhandle Drug and Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Nebraska Man Sentenced for Conspiracy to Distribute 500 Grams or More of MethamphetamineRead the Press Release
Acting United States Attorney Jan Sharp announced that Eric White, 37, was sentenced today in federal court in Omaha, Nebraska, for conspiracy to distribute and possess with intent to distribute 500 grams or more of methamphetamine. Senior United States District Judge Joseph F. Bataillon sentenced White to 70 months’ imprisonment. There is no parole in the federal system. After his release from prison, he will begin a 5-year term of supervised release.
On August 25, 2019, law enforcement with the North Platte Police Department attempted to conduct a traffic stop on a black motorcycle with no plates driven by White. White did not stop, and a pursuit commenced. White eventually wrecked the motorcycle and was taken into custody. White had approximately ten grams of methamphetamine on him.
Law enforcement relied on a cooperating witness, who told law enforcement she received large quantities of methamphetamine from White and would then distribute it to other individuals. They also took trips to Colorado to obtain pound quantities of methamphetamine for distribution. White was held responsible for 1.5 kilograms of methamphetamine.
This case was investigated by the North Platte Police Department.
Mineral County man sentenced for methamphetamine distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA – Adam Michael, of Burlington, West Virginia, was sentenced today to 102 months of incarceration for methamphetamine distribution, United States Attorney William J. Ihlenfeld, II announced.
Michael, age 39, pled guilty to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Fifty Grams or More of Methamphetamine” in July 2020. Michael admitted to working with others to distribute more than 50 grams of methamphetamine from October 2018 to February 2019 in Mineral County and elsewhere.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Potomac Highlands Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated. The task force consists of the FBI, West Virginia State Police, Mineral County Sheriff’s Office, the Hampshire County Sheriff’s Office, the Grant County Sheriff’s Office, and the Keyser Police Department.
Chief U.S. District Judge Gina M. Groh presided.
Methamphetamine Dealer Who Possessed Two Firearms Sentenced to More than Seven Years in Federal PrisonRead the Press Release
A man who possessed two firearms and admitted to buying over a pound of methamphetamine was sentenced on November 5, 2021, to more than seven years in federal prison.
Todd Fritz Groom, age 33, from Boscobel, Wisconsin, received the prison term after a May 3, 2021 guilty plea to possession of firearms by a prohibited person.
Information from Groom’s guilty plea and sentencing hearings showed that on September 24, 2020, deputies from the Fayette County Sheriff’s Office executed a search warrant for stolen property at a residence in Clermont, Iowa. After discovering that there were drugs in the house, the deputies obtained and executed a second search warrant for drugs and drug-related items. They found two firearms in a backpack with other items belonging to Groom. Groom was previously convicted of four felony offenses and was a methamphetamine user. Groom later admitted to a deputy that, a couple weeks before the search, he had bought 1.5 pounds of methamphetamine for redistribution and that one of the subjects he dealt with was involved with a drug cartel.
Groom was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Groom was sentenced to 86 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Groom is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was prosecuted by Special Assistant United States Attorney Alexander Geocaris and Assistant United States Attorney Kyndra Lundquist and investigated by the Fayette County Sheriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 21-CR-2015.
Medical Device Company Arthrex to Pay $16 Million to Resolve Kickback AllegationsRead the Press Release
Arthrex Inc., a Florida-based medical device company, has agreed to resolve allegations that it violated the False Claims Act by paying kickbacks that caused the submission of false claims to the Medicare program.
According to the settlement, Arthrex Inc., which specializes in orthopedic products, has agreed to pay $16 million for allegedly paying kickbacks to a Colorado-based orthopedic surgeon. The settlement resolves allegations that Arthrex agreed to provide remuneration to the surgeon in the form of royalty payments purportedly for the surgeon’s contributions to Arthrex’s SutureBridge and SpeedBridge products when the remuneration was in fact intended to induce the surgeon’s use and recommendation of Arthrex’s products. The United States contended that Arthrex’s participation in this arrangement violated the Federal Anti-Kickback statute and, in turn, the False Claims Act by causing the submission of false or fraudulent Medicare claims.
“The Department of Justice will continue to pursue medical device manufacturers that pay kickbacks to boost their profits,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “Such arrangements can improperly influence physicians’ decision-making and result in the misuse of critical federal health care program funds.”
“Paying bribes to physicians to distort their medical decision-making corrupts the health care system,” said Acting U.S. Attorney Nathaniel R. Mendell for the District of Massachusetts. “This settlement demonstrates our dedication to ensuring that taxpayers and patients get a health care system that is on the level. Kickbacks have no place anywhere in our health care system, and we will continue to identify and punish this illegal conduct.”
“Medical device manufacturers who engage in such kickback schemes undermine the integrity of federal health care programs,” said Special Agent in Charge Phillip M. Coyne of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “Working closely with our law enforcement partners, our agency will continue to protect patients and taxpayers by holding accountable companies that engage in unlawful activities.”
In connection with the settlement, Arthrex entered into a five-year corporate integrity agreement with HHS-OIG, setting forth requirements for future compliance.
The settlement resolves claims brought in a lawsuit under the qui tam or whistleblower provisions of the False Claims Act by Joseph Shea. The lawsuit was filed in the U.S. District Court for the District of Massachusetts and is captioned United States ex rel. Shea v. Arthrex Inc. et al., No. 20-cv-10210-ADB (D. Mass.). Under the False Claims Act’s qui tam provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. Shea will receive $2.5 million of the False Claims Act settlement.
The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch (Fraud Section); the U.S. Attorney’s Office for the District of Massachusetts; HHS-OIG; and the FBI.
Trial Attorney Andrew Jaco of the Civil Division’s Commercial Litigation Branch (Fraud Section) and Assistant U.S. Attorneys David Derusha and Charles Weinograd of the District of Massachusetts are handling this case.
The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Maryland Woman Sentenced to Prison for Defrauding Medicaid Out of Hundreds of Thousands of DollarsRead the Press Release
WASHINGTON – Sikirat Adunni Brown, 60, of Upper Marlboro, Md., was sentenced today to 13 months in prison for defrauding the D.C. Medicaid program out of more than $340,000.
The announcement was made by U.S. Attorney Matthew M. Graves, Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division, Maureen R. Dixon, Special Agent in Charge of the U.S. Department of Health and Human Services’ Office of Inspector General for the region that includes Washington, D.C, and Daniel W. Lucas, Inspector General for the District of Columbia.
Brown pleaded guilty in July, in the U.S. District Court for the District of Columbia, to health care fraud. In addition to the prison term, the Honorable Dabney L. Friedrich ordered Brown to pay $343,539 in restitution and $201,645 in a forfeiture money judgment.
According to the government’s evidence, at various times between January 2014 and June 2020, Brown worked as a personal care aide for at least eight different home health agencies in the District of Columbia. The home health agencies employed her to assist D.C. Medicaid beneficiaries in performing activities of daily living, such as getting in and out of bed, bathing, dressing, and eating.
Brown was supposed to document the care that she provided to the Medicaid beneficiaries on timesheets and then submit the timesheets to the home health agencies, which would in turn bill Medicaid for the services that she rendered. In her guilty plea, Brown acknowledged that between 2014 and 2020, she caused the D.C. Medicaid Program to issue payments totaling $343,539 for services that she did not provide. As part of her scheme, she submitted false timesheets to different home health agencies claiming that she provided 20 hours or more of personal care aide services in a given day. She also claimed to provide services when she was traveling outside the D.C. metropolitan area. She paid kickbacks during the scheme to at least one beneficiary. She also acknowledged that she claimed to provide services to one beneficiary during the COVID-19 pandemic even though that beneficiary said she did not.
The FBI, the U.S. Department of Health and Human Services’ Office of Inspector General, the District of Columbia’s Office of the Inspector General’s Medicaid Fraud Control Unit, and the U.S. Attorney’s Office are committed to investigating and prosecuting individuals who defraud the D.C. Medicaid program.
Brown is the tenth former personal care aide in the last three years to plead guilty to defrauding Medicaid in the United States District Court for the District of Columbia. Five of those aides were sentenced to 13 months in prison; a sixth was sentenced to serve 15 months.
The government urges the public to provide tips and assistance to stop health care fraud. If you have information about individuals committing health care fraud, please call the Department of Health and Human Services’ Office of Inspector General hotline at (800) HHS‑TIPS [(800) 447-8477] or the D.C. Office of the Inspector General at (800) 724-TIPS [(800) 274-8477].
This case was prosecuted by Assistant U.S. Attorney Kondi Kleinman of the Fraud Section, with assistance from Paralegal Specialist Mariela Andrade.
Martinsburg woman sentenced for role in cocaine, heroin, and fentanyl distribution operationRead the Press Release
MARTINSBURG, WEST VIRGINIA – Jessica Sue Nicholson, of Martinsburg, West Virginia, was sentenced today to one year of probation for her role in a cocaine, heroin, and fentanyl distribution operation, United States Attorney William J. Ihlenfeld, II announced.
Nicholson, 25, pleaded guilty in September 2019 to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Heroin, Fentanyl, Cocaine Hydrochloride, and Cocaine Base.” Nicholson admitted to working with others to distribute the drugs from May 2018 to January 2019 in Berkeley and Jefferson Counties.
Assistant U.S. Attorney Lara K. Omps-Botteicher, Special Assistant U.S. Attorney C. Lydia Lehman, also with the Berkeley County Prosecuting Attorney’s Office, and Assistant U.S Attorney Timothy D. Helman, prosecuted the case on behalf of the government. The Federal Bureau of Investigation; the West Virginia State Police; the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative; the Berkeley County Prosecuting Attorney’s Office, the Berkeley County Sheriff’s Office, the Jefferson County Sheriff’s Office, the Martinsburg Police Department, the Charles Town Police Department, and the Ranson Police Department investigated.
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.
Chief U.S. District Judge Gina M. Groh presided.
Marana Man Sentenced to Five Years for Sexual Abuse of a Minor and Abusive Sexual ContactRead the Press Release
PHOENIX, Ariz. – Last week, Roy Dominic Robles, 35, of Marana, Arizona, was sentenced by U.S. District Judge Susan M. Brnovich to a total of 60 months in prison, followed by 15 years of supervised release. A jury previously convicted Robles on five counts, including two counts of sexual abuse of a minor, one count of abusive sexual contact with a minor, and two counts of abusive sexual contact without permission.
On September 14, 2019, during a trip to Lake Mead, Arizona with family and friends, Robles sexually abused the minor victim. On that same date, Robles engaged in an abusive sexual contact without permission with the adult victim.
The National Park Service conducted the investigation in this case. Christina J. Reid-Moore and Wayne Venhuizen, Assistant U.S. Attorneys, District of Arizona, Phoenix and Flagstaff, handled the prosecution.
CASE NUMBER: CR-2019-08235-PCT-SMB
RELEASE NUMBER: 2021- 080_Robles# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Manderson Woman Pleads Not Guilty to Assaulting Federal OfficerRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Manderson, South Dakota, woman has been indicted by a federal grand jury for Assaulting a Federal Officer.
Unpowin White Plume, age 34, was indicted on October 21, 2021. She appeared before U.S. Magistrate Judge Daneta Wollmann on November 3, 2021, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is eight years in federal prison and/or a $250,000 fine, three years of supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to White Plume assaulting a federal officer who was employed with the Oglala Sioux Tribe Department of Public Safety on March 8, 2020. The charge is merely an accusation and Means is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Oglala Sioux Tribe Department of Safety. U.S. Attorney Heather Sazama is prosecuting the case.
White Plume was released from custody pending trial. A trial date has been set for January 11, 2022.
Man Who Illegally Possessed a Gun Sent to Federal PrisonRead the Press Release
A man who illegally possessed three firearms was sentenced to over three years in federal prison.
Jonathon Sotres-De La O, age 20, from Sioux City, Iowa, received the prison term after a May 19, 2021, guilty plea to one count of possession of a firearm by an unlawful drug user and one count of receipt of a firearm by a person under indictment. At the time Sotres-De La O possessed the firearms and ammunition he knew he was an unlawful user of controlled substances.
Evidence at Sotres-De La O’s detention, change of plea, and sentencing hearings revealed that despite his young age Sotres-De La O was already a recidivist. In May of 2019, he received a deferred judgment in the Iowa District Court for Harrison County, but was unable to successfully complete the relatively short term of probation. In June of 2020, during an investigation of a shooting perpetrated by roommates and friends, Sotres-De La O was found in possession of a rifle, ammunition, illegal drugs, and drug use paraphernalia. He was charged federally with this crime, and he was released on pre-trial supervision to await trial. While on release, on March 6, 2021, Sotres-De La O was stopped by police while driving his car. Sotres-De La O was searched, and two boxes of ammunition were found in the glove box. A white backpack was also located in the car and it was searched. Two stolen handguns, marijuana, cocaine, and other items were found inside the bag.
Sotres-De La O was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Sotres-De La O was sentenced to 46 months’ imprisonment. He must also serve a 6-month term of supervised release after the prison term. There is no parole in the federal system.
Sotres-De La O is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by the Sioux City, Iowa Police Department and the U.S. Department of Justice’s Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant United States Attorney.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-4079.
Follow us on Twitter @USAO_NDIA.
Man Sentenced to Six Years in Federal Prison for Illegally Possessing Loaded Gun on Chicago StreetRead the Press Release
CHICAGO — A man has been sentenced to six years in federal prison for illegally possessing a loaded handgun on a Chicago street.
DONTA BAKER illegally possessed the gun on the evening of July 24, 2020, in the 2100 block of West 68th Street in Chicago’s West Englewood neighborhood. Chicago Police officers observed Baker standing on a sidewalk tugging at an object in his waistband and approached him to conduct an investigatory stop. Baker ran from the officers and tossed the gun over a fence into a residential backyard. The officers apprehended him a short time later.
Baker, 38, of Chicago, pleaded guilty in June to a federal charge of illegal possession of a firearm. Baker had previously been convicted of multiple firearm-related felonies in state court and was prohibited by federal law from possessing the gun. After pleading guilty and awaiting sentencing in the federal case, Baker violated the terms of his bond conditions when he removed his ankle monitor. He was quickly re-arrested and the bond was revoked.
U.S. District Judge Steven C. Seeger imposed the federal prison sentence Nov. 2, 2021, after a hearing in U.S. District Court in Chicago.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Kristen de Tineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; and David Brown, Superintendent of the Chicago Police Department.
“Defendant’s crime is not one of simple possession,” Assistant U.S. Attorney Saurish Appleby-Bhattacharjee argued in the government’s sentencing memorandum. “Particularly within this federal district – encompassing a city besieged by routine shootings and homicides – there is no simple possession of a loaded pistol by a convicted felon.”
Holding illegal firearm possessors accountable through federal prosecution is a centerpiece of Project Safe Neighborhoods, the Department of Justice’s violent crime reduction strategy. In the Northern District of Illinois, U.S. Attorney Lausch and law enforcement partners have deployed the PSN program to attack a broad range of violent crime issues facing the district, particularly firearm offenses.
Man Pleads Guilty to Robbing a Victim for Money and DrugsRead the Press Release
A Tulsa man pleaded guilty Monday in U.S. District Court for assaulting and threatening to kill a victim, robbing him of hundreds of dollars, then carjacking his vehicle, announced Acting U.S. Attorney Clint Johnson.
Merle Jason Lancaster Sr., 42, pleaded guilty to Robbery in Indian Country.
Lancaster Sr. admitted that on Feb. 3, 2021, he threatened to kill the victim and his family if he did not hand over money or drugs. Lancaster further assaulted the victim with a baseball bat in order to force the victim to comply with his demands. He then forced the victim into the victim’s vehicle. Lancaster and an accomplice drove the victim to a convenience store so the victim could withdraw several hundred dollars from an ATM machine. Video surveillance showed the victim and Lancaster entering the convenience store, the victim withdrawing money, and the victim handing over the cash to Lancaster as he stood over the victim. The three left the convenience store, and at some point, Lancaster and his accomplice forced the man out of the car and drove away.
U.S. District Judge Gregory K. Frizzell will sentence Lancaster at a hearing set for March 9, 2022. If Judge Frizzell accepts the plea agreement, the defendant will serve 90 months in federal prison.
The defendant is a citizen of the Cherokee Nation, and the crime occurred within the boundaries of the Muscogee Nation Reservation.
The Tulsa Police Department and FBI conducted the investigation. Assistant U.S. Attorney Justin G. Bish is prosecuting the case.
Looted Cambodian Antiquities in Denver Museum Are Subject of Forfeiture Action Filed in Manhattan Federal CourtRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced the filing of a civil complaint today seeking forfeiture of four looted Cambodian antiquities at a museum in Denver, Colorado, for the purpose of returning the antiquities to the Kingdom of Cambodia. The antiquities, which include a 12th to 13th century Khmer sandstone sculpture depicting Prajnaparamita, and a 7th to 8th century Khmer sandstone sculpture depicting Surya, were sold to the museum by antiquities dealer Douglas Latchford through the use of false provenance documents. The museum has voluntarily relinquished possession of the antiquities.
U.S. Attorney Damian Williams said: “As alleged, Douglas Latchford papered over the problematic provenance of Cambodian antiquities with falsehoods, in the process successfully placing stolen goods in the permanent collection of an American museum. Eradicating the illegal trade in stolen antiquities requires the vigilance of all parties in the art market, especially cultural institutions.”
According to the civil complaint filed in Manhattan federal court today:
The United States of America seeks the forfeiture of the following antiquities, currently in the possession of a museum located in Denver, Colorado (the “Museum”): (1) a 12th to 13th century Khmer sandstone sculpture depicting standing Prajnaparamita (“Prajnaparamita”), (2) a 7th to 8th century Khmer sandstone sculpture depicting standing Surya (“Surya”), (3) an Iron Age Dong Son bronze bell (the “Bell”), and (4) a 17th to 18th century sandstone lintel depicting the sleep of Vishnu and birth of Brahma (the “Lintel”). Together, the Prajnaparamita, Surya, Bell, and Lintel are the “Defendants in Rem.”
Investigators working for the Cambodian Ministry of Culture and Fine Arts and the United States Government have interviewed a Cambodian national who was previously engaged in the theft and looting of antiquities from Cambodian temples and archeological sites (“Looter-1”). Looter-1, a former member of the Khmer Rouge, led a group of approximately 450 people working in multiple teams to loot temples and archeological sites in Cambodia. Looter-1 has reviewed photographs of the Prajnaparamita, Surya, Bell, and Lintel, and recognized them as antiquities that Looter-1 and his team had stolen from archeological and religious sites in Cambodia.
The Museum acquired the Prajnaparamita, Surya, Bell, and Lintel from Douglas Latchford, a prominent collector and dealer in Southeast Asian art and antiquities who was previously indicted in this District with crimes related to a many-year scheme to sell looted Cambodian antiquities on the international art market. As alleged in the indictment, United States v. Latchford, 19 Cr. 748 (AT), as part of the scheme, Latchford created false provenance documents and false invoices and shipping documents for the antiquities he was selling. In September 2020, the indictment against Latchford was dismissed due to his death. Latchford was closely associated with a particular scholar of Khmer art (the “Scholar”). Over the years, the Scholar, who was a volunteer research consultant for the Museum, assisted Latchford on many occasions by verifying or vouching for the proffered provenance of Khmer antiquities that Latchford was trying to sell.
Latchford lied repeatedly to the Museum, in particular with regard to the provenance of the Prajnaparamita and Surya. Latchford provided false provenance for the Prajnaparamita and Surya, and made multiple misrepresentations and contradictory statements regarding when certain of the Defendants in Rem were shipped and imported into the United States. For example, Latchford told the Museum that he had purchased the Prajnaparamita from a particular art collector (the “False Collector”) in June 1999, who had in turn acquired the Prajnaparamita in Vietnam between 1964 and 1966. Other documents indicate that Latchford shipped the Prajnaparamita from Thailand to London in 1994, well before the June 1999 date, and that it entered the United States in May 2000, after the enactment of an embargo on the importation of Khmer stone antiquities.
The Museum has voluntarily agreed to relinquish possession of the Defendants in Rem to the United States in order for them to be repatriated to the Kingdom of Cambodia, and waived all claims of right, title, and interest in the Defendants in Rem.
* * *
Mr. Williams thanked Homeland Security Investigations for its outstanding work on this investigation, which he noted is ongoing, and praised its ongoing efforts to find and repatriate stolen and looted cultural property. Mr. Williams also thanked the Kingdom of Cambodia’s Ministry of Culture and Fine Arts for its assistance with this investigation.
This matter is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant U. S. Attorney Jessica Feinstein is in charge of the case.
Kings County Woman Pleads Guilty to Stealing $87,000 in Social Security BenefitsRead the Press Release
FRESNO, Calif. — Deborah Rossoni, 58, of Lemoore, pleaded guilty today to stealing $87,000 in Social Security payments and agreed to pay full restitution to the Social Security Administration, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, in July 2012, Rossoni’s father passed away, but the SSA was not notified of his death and continued direct depositing Social Security payments into his bank account until July 2018. During this time, Rossoni transferred the payments into her own bank accounts and then used the money for personal expenditures, including credit card bills and house repairs.
This case is the product of an investigation by the SSA Office of Inspector General. Assistant U.S. Attorney Joseph Barton is prosecuting the case.
Rossoni is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on Feb. 14, 2022. She faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account several variables.
Justice Department Files Complaint Against Professional Compounding Centers of America Inc., for Reporting Fraudulent Pricing Information for Ingredients Sold to PharmaciesRead the Press Release
WASHINGTON – The Justice Department has filed a complaint under the False Claims Act against Professional Compounding Centers of America Inc. (PCCA), a Houston-based company that sells active pharmaceutical ingredients and other products and services to compounding pharmacies. The complaint alleges that PCCA reported fraudulent and inflated Average Wholesale Prices (AWPs) for its ingredients that bore no relationship to the actual prices at which it sold those ingredients to its pharmacy customers, thereby causing those pharmacies to submit inflated compound prescription claims to TRICARE, the federal health care program providing insurance for active duty military personnel, military retirees and military dependents.
Compounding pharmacies purchase ingredients for use in compound drugs from ingredient suppliers such as PCCA, which establish and report AWPs for their ingredients to pricing compendia used by federal health care programs and commercial health insurance companies. TRICARE determines the level of reimbursement for compound prescription claims based in part on the reported AWP for each of the ingredients in a compound drug. The complaint alleges that PCCA knowingly established and reported AWPs for its ingredients that were greatly inflated above their actual selling prices. For example, in 2014, PCCA typically sold the chemical Fluticasone Propionate to its top customers for between approximately $135 and $197 per gram, but it reported an AWP for that ingredient of $3,630.90 per gram – approximately 18 to 27 times the actual selling price. That same year, PCCA typically sold the ingredient Resveratrol to its top customers for under $2 per gram but reported an AWP of $818.68 per gram, more than 400 times the actual selling price of the ingredient.
“The fraudulent reporting and marketing of drug prices to solicit business will not be tolerated,” said Deputy Assistant Attorney General Michael D. Granston of the Justice Department’s Commercial Litigation Branch in the Civil Division. “We will continue to hold accountable those who take improper advantage of federal health care programs.”
“We diligently investigate fraud on the federal healthcare system, especially where it impacts our veterans and their families,” said U.S. Attorney Ashley Hoff of the Western District of Texas. “We will continue to guard the system so patients receive the care they deserve and federal taxpayer dollars are not wasted.”
“The practices we confront today in this case created a major threat to the viability of the TRICARE program, a critically important public healthcare program that serves the needs of our military,” said Acting U.S. Attorney Karin Hoppmann of the Middle District of Florida. “This effort demonstrates our district’s resolve in the struggle against fraud schemes that prey on the nation’s military personnel and their families.”
“As the investigative arm of the Department of Defense Office of the Inspector General, the Defense Criminal Investigative Service (DCIS) will aggressively pursue all allegations of fraud perpetrated against the Department of Defense,” said Special Agent in Charge Michael C. Mentavlos of the DCIS Southwest Field Office. “DCIS will continue to partner with the Defense Health Agency and the Department of Justice to hold companies like PCCA accountable for their actions, protect the TRICARE program and recover valuable taxpayer resources.”
The complaint alleges that PCCA marketed its inflated AWPs, the resulting profit potential and compound formulas containing high AWP ingredients as inducements to pharmacies to purchase PCCA ingredients. PCCA’s actions caused its pharmacy customers to submit tens of thousands of false and fraudulently inflated compound prescription claims containing PCCA ingredients to TRICARE, costing the program hundreds of millions of dollars in excess reimbursement.
The complaint also alleges that PCCA offered additional inducements to pharmacy customers, such as annual all-inclusive travel packages, in exchange for ingredient purchases and purchase commitments.
The United States filed its complaint in a lawsuit originally brought under the qui tam or whistleblower provisions of the False Claims Act by Peter Hueseman. Hueseman was formerly a part owner and pharmacist at a pharmacy that purchased compound ingredients from PCCA. Under the act, a private party can file an action on behalf of the United States and receive a portion of any recovery. The act permits the United States to intervene in such lawsuits, as it has done in this case. The qui tam case is captioned United States ex rel. Hueseman v. Professional Compounding Centers of America, Inc., No. 5:14-cv-212 (W.D. Tex.). In November 2019, the United States reached settlements with Freedom Pharmaceuticals Inc., and Pharmacy Services Inc., which were also defendants in this matter. See https://www.justice.gov/opa/pr/compound-ingredient-supplier-fagron-holding-usa-llc-pay-2205-million-resolve-allegations.
The investigation of this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch (Fraud Section) and the U.S. Attorney’s Offices for the Western District of Texas and Middle District of Florida, with assistance from DCIS, FBI, the United States Postal Service Office of Inspector General, the Department of Labor Office of Inspector General, and the Drug Enforcement Agency.
The United States’ intervention in this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
This matter is being handled by Fraud Section Attorneys Sanjay Bhambhani, Danielle Sgro and Nathan Green and Assistant U.S. Attorneys Mary Kruger, John Deck, and Collette Cunningham.
The claims in the complaint are allegations only, and there has been no determination of liability.
Justice Department Files Complaint Against Professional Compounding Centers of America Inc. for Reporting Fraudulent Pricing Information for Ingredients Sold to PharmaciesRead the Press Release
The Justice Department has filed a complaint under the False Claims Act against Professional Compounding Centers of America Inc. (PCCA), a Houston-based company that sells active pharmaceutical ingredients and other products and services to compounding pharmacies. The complaint alleges that PCCA reported fraudulent and inflated Average Wholesale Prices (AWPs) for its ingredients that bore no relationship to the actual prices at which it sold those ingredients to its pharmacy customers, thereby causing those pharmacies to submit inflated compound prescription claims to TRICARE, the federal health care program providing insurance for active duty military personnel, military retirees and military dependents.
Compounding pharmacies purchase ingredients for use in compound drugs from ingredient suppliers such as PCCA, which establish and report AWPs for their ingredients to pricing compendia used by federal health care programs and commercial health insurance companies. TRICARE determines the level of reimbursement for compound prescription claims based in part on the reported AWP for each of the ingredients in a compound drug. The complaint alleges that PCCA knowingly established and reported AWPs for its ingredients that were greatly inflated above their actual selling prices. For example, in 2014, PCCA typically sold the chemical Fluticasone Propionate to its top customers for between approximately $135 and $197 per gram, but it reported an AWP for that ingredient of $3,630.90 per gram – approximately 18 to 27 times the actual selling price. That same year, PCCA typically sold the ingredient Resveratrol to its top customers for under $2 per gram but reported an AWP of $818.68 per gram, more than 400 times the actual selling price of the ingredient.
“The fraudulent reporting and marketing of drug prices to solicit business will not be tolerated,” said Deputy Assistant Attorney General Michael D. Granston of the Justice Department’s Commercial Litigation Branch in the Civil Division. “We will continue to hold accountable those who take improper advantage of federal health care programs.”
“We diligently investigate fraud on the federal healthcare system, especially where it impacts our veterans and their families,” said U.S. Attorney Ashley Hoff for the Western District of Texas. “We will continue to guard the system so patients receive the care they deserve and federal taxpayer dollars are not wasted.”
“The practices we confront in this case created a major threat to the viability of the TRICARE program, a critically important public healthcare program that serves the needs of our military,” said Acting U.S. Attorney Karin Hoppmann for the Middle District of Florida. “This effort demonstrates our district’s resolve in the struggle against fraud schemes that prey on the nation’s military personnel and their families.”
“As the investigative arm of the Department of Defense Office of the Inspector General, the Defense Criminal Investigative Service (DCIS) will aggressively pursue all allegations of fraud perpetrated against the Department of Defense,” said Special Agent in Charge Michael C. Mentavlos of the DCIS Southwest Field Office. “DCIS will continue to partner with the Defense Health Agency and the Department of Justice to hold companies like PCCA accountable for their actions, protect the TRICARE program and recover valuable taxpayer resources.”
The complaint alleges that PCCA marketed its inflated AWPs, the resulting profit potential and compound formulas containing high AWP ingredients as inducements to pharmacies to purchase PCCA ingredients. PCCA’s actions caused its pharmacy customers to submit tens of thousands of false and fraudulently inflated compound prescription claims containing PCCA ingredients to TRICARE, costing the program hundreds of millions of dollars in excess reimbursement.
The complaint also alleges that PCCA offered additional inducements to pharmacy customers, such as annual all-inclusive travel packages, in exchange for ingredient purchases and purchase commitments.
The United States filed its complaint in a lawsuit originally brought under the qui tam or whistleblower provisions of the False Claims Act by Peter Hueseman. Hueseman was formerly a part owner and pharmacist at a pharmacy that purchased compound ingredients from PCCA. Under the act, a private party can file an action on behalf of the United States and receive a portion of any recovery. The act permits the United States to intervene in such lawsuits, as it has done in this case. The qui tam case is captioned United States ex rel. Hueseman v. Professional Compounding Centers of America, Inc., No. 5:14-cv-212 (W.D. Tex.). In November 2019, the United States reached settlements with Freedom Pharmaceuticals Inc., and Pharmacy Services Inc., which were also defendants in this matter. See https://www.justice.gov/opa/pr/compound-ingredient-supplier-fagron-holding-usa-llc-pay-2205-million-resolve-allegations.
The investigation of this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch (Fraud Section) and the U.S. Attorneys' Offices for the Western District of Texas and Middle District of Florida, with assistance from DCIS, FBI, the U.S. Postal Service Office of Inspector General, the Department of Labor Office of Inspector General, and the Drug Enforcement Agency.
The United States’ intervention in this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
This matter is being handled by Fraud Section Attorneys Sanjay Bhambhani, Danielle Sgro and Nathan Green and Assistant U.S. Attorneys Mary Kruger, John Deck, and Collette Cunningham.
The claims in the complaint are allegations only, and there has been no determination of liability.
Jefferson County man admits to drug chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Robert Gordon Farmer, of Harpers Ferry, West Virginia, has admitted to a drug charge, United States Attorney William J. Ihlenfeld, II announced.
Farmer, 45, pleaded guilty today to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Cocaine Base and Cocaine Hydrochloride.” Farmer admitted to working with others to distribute drugs from July 2018 to June 2021 in Jefferson County and elsewhere.
Farmer faces up to 20 years of incarceration and fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The FBI; U.S. Marshals Service; Homeland Security Investigations; the West Virginia Air National Guard; the Eastern Panhandle Drug Task Force, a HIDTA-funded initiative; the West Virginia State Police, the DEA Task Force Montgomery County, Maryland; and the Frederick, Maryland, HIDTA group investigated. The EPDTF consists of the West Virginia State Police, Berkeley County Sheriff’s Office, the Jefferson County Sheriff’s Office, Ranson Police Department, the Charles Town Police Department, and the Martinsburg Police Department.
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.
U.S. Magistrate Judge Robert W. Trumble presided.
Gladbrook Man Sentenced to 27 Months in Federal Prison for Being a Prohibited Person in Possession of FirearmsRead the Press Release
A felon and convicted domestic abuser who possessed firearms was sentenced November 5, 2021, to 27 months in federal prison.
Jason Drew, age 38, of Gladbrook, Iowa, received the sentence after a May 11, 2021 guilty plea to one count of being a prohibited person in possession of firearms. At the plea hearing, Drew admitted that, on February 26, 2020, he knowingly possessed two revolvers after having been convicted of two crimes punishable by more than one year of imprisonment and after having been convicted of a misdemeanor crime of domestic violence. The record at the sentencing hearing established that Drew also was a drug user.
Drew was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Drew was sentenced to 27 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
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.
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Tama County Sheriff’s Office, the Cedar Rapids Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 20-74.
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Former metallurgist lab director pleads guilty to major fraud on USARead the Press Release
Tacoma – The former Director of Metallurgy at Bradken Inc. pleaded guilty today in U.S. District Court in Tacoma to defrauding the United States by falsifying test results that measure the strength and toughness of steel used in U.S. Navy submarines, announced U.S. Attorney Nick Brown. Elaine Thomas, 67, of Auburn, Washington, pleaded guilty to major fraud on the United States. She faces up to 10 years in prison and a $1 million fine when sentenced by U.S. District Judge Benjamin H. Settle on February 14, 2022.
According to records filed in the case, Bradken is the U.S. Navy’s leading supplier of cast high-yield steel for naval submarines. Bradken’s Tacoma foundry produces castings that prime contractors use to fabricate submarine hulls. The Navy requires that the steel meets certain standards for strength and toughness to ensure that it does not fail under certain circumstances, such as a collision. For 30 years, the Tacoma foundry (which was acquired by Bradken in 2008), produced castings, many of which had failed lab tests and did not meet the Navy’s standards. Elaine Thomas, as Director of Metallurgy, falsified test results to hide the fact that the steel had failed the tests. Thomas falsified results for over 240 productions of steel, which represent a substantial percentage of the castings Bradken produced for the Navy.
Court filings indicate there is no evidence that Bradken’s management was aware of the fraud until May 2017. At that time, a lab employee discovered that test cards had been altered and that other discrepancies existed in Bradken’s records. In June 2020, Bradken entered into a deferred prosecution agreement, accepting responsibility for the offense and agreeing to take remedial measures. Bradken also entered into a civil settlement, paying $10,896,924 to resolve allegations that the foundry produced and sold substandard steel components for installation on U.S. Navy submarines.
The Navy has taken extensive steps to ensure the safe operation of the affected submarines. Those measures will result in increased costs and maintenance as the substandard parts are monitored.
The criminal case against Thomas, deferred prosecution agreement, and civil settlement with Bradken are the result of a coordinated effort among the U.S. Attorney’s Office for the Western District of Washington, the Civil Division’s Commercial Litigation Branch, the Department of Defense Office of Inspector General's Defense Criminal Investigative Service, Naval Criminal Investigative Service, and the Defense Contract Audit Agency.
The criminal prosecution is being handled by Assistant United States Attorney Seth Wilkinson.
Former Office Manager Sentenced on Fraud ChargesRead the Press Release
SAN ANTONIO – A former office manager of a prominent local dermatology practice was sentenced today to 46 months in prison for defrauding a medical practice of nearly $350,000 from patient billings and employee profit sharing accounts.
According to court documents, Patricia Ann Doucet, 74, of Karnes City, defrauded her former employer, the Dermatology & Laser Center of San Antonio. Per the indictment, the medical practice’s owner and operator organized and conducted a non-profit educational symposium on regenerative medicine in San Antonio in 2012. A bank account was established to collect contributions for the symposium event. That account was to be closed at the conclusion of the symposium. But Doucet, in her capacity as office manager, kept the account open without permission.
From July 2012 to February 2020, Doucet began to embezzle checks and cash paid to the dermatology practice by depositing them into the symposium account. She altered a signature stamp utilized by the practice for its business account or fraudulently endorsed checks by forging the owner’s signature. Doucet also stole money from the practice’s profit-sharing account that was designed to automatically issue checks to cover taxes for the employee’s profit share. Rather than directing those checks to the IRS, Doucet deposited those checks into the symposium account. Doucet then used the symposium account as her slush fund for international and domestic travel, property payments, meal purchases and other personal expenses on credit cards she fraudulently opened in the owner’s name.
In addition to the prison sentence, Doucet was ordered to pay $345,254.44 in restitution.
On August 5, 2021, Doucet pleaded guilty to 10 counts of wire fraud.
Doucet has remained in federal custody since April 23, 2021.
“I agree with Judge Ezra’s comments in court today that Doucet exploited the trust of the victim in this case by perpetrating an exceedingly complex fraud against the victim and his medical practice over the course of nearly eight years,” said U.S. Attorney Ashley C. Hoff. “We hope the Court’s sentence provides some measure of justice to the victim and sends a message to other fraudsters that their schemes and deception will not be tolerated in our community.”
The FBI investigated the case.
Assistant U.S. Attorneys Matthew W. Kinskey and Joseph E. Blackwell prosecuted the case.
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Former California Resident Pleads Guilty to Defrauding the State of California of over $10 Million in Tax RevenueRead the Press Release
SACRAMENTO, Calif. — Akrum Alrahib, 43, of Miami, Florida, pleaded guilty today to conspiring to commit mail fraud in non-cigarette tobacco schemes that defrauded the State of California of over $10 million in unpaid excise taxes, Acting U.S. Attorney Phillip A. Talbert announced.
Non-cigarette tobacco (known as Other Tobacco Products or OTP) consists of tobacco products such as cigars, chewing tobacco, and leaf tobacco. During the relevant time period, California imposed an average excise tax of about 28.13% of the wholesale cost of the OTP between April 2016 and June 2016; 27.30% between July 2016 and June 2017; and 65.08% between July 2017 and December 2017. California licensed tobacco distributors are required to collect this tax when they distribute the product within the state. The distributor must then submit to the California Department of Tax and Fee Administration (CDTFA) in Sacramento (formerly the Board of Equalization) monthly reports reflecting the amount of untaxed OTP sold in the previous month and the amount of excise tax owing, and the payment.
According to court documents, between April 2016 and December 2017, Alrahib led two conspiracies involving multiple individuals and businesses operating in California. As the leader, Alrahib provided untaxed OTP to various individuals and companies in California, knowing that the products would be sold illegally, resulting in a loss to the State of California of over $10 million in tax revenue.
“This guilty plea is the result of a highly successful, collaborative effort involving federal and state investigators and prosecutors, working side-by-side,” Acting U.S. Attorney Talbert stated. “We will continue to root out illegal conduct and tax evasion in the tobacco products industry.”
“The primary goal of ATF in combating tobacco trafficking is to enforce the federal laws relating to the trafficking of domestically produced and counterfeit cigarettes and tobacco products,” said Special Agent in Charge Patrick Gorman, San Francisco Field Division, Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). “ATF will continue to work alongside our partners to investigate incidents of illegal conduct and tax evasion of tobacco products.”
“Tax evasion is not a victimless crime. California communities lose critical tax dollars that pay for vital programs, and it isn’t fair for those hard-working business owners who play by the rules,” said California Department of Tax and Fee Administration Director Nick Maduros. “It’s important for our department and the U.S. Attorney’s Office to work together to stop tax evasion.”
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the California Department of Tax and Fee Administration. Assistant U.S. Attorneys Rosanne L. Rust and Michael D. Anderson are prosecuting the case.
Alrahib is scheduled to be sentenced by U.S. District Judge William B. Shubb on Dec. 13, 2021. Alrahib faces a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will 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.
Florida Man Admits Role in $1 Million Kickback Scheme Related to Genetic TestingRead the Press Release
NEWARK, N.J. – A Florida man today admitted his role in a conspiracy to receive kickbacks and bribes from laboratories in exchange for referrals of patient DNA samples and genetic tests, Acting U.S. Attorney Rachael A. Honig announced.
Norman Smiley, 80, of Boca Raton, Florida, pleaded guilty by videoconference before U.S. District Judge Brian R. Martinotti to an information charging him with conspiracy to violate the Anti-Kickback Statute.
According to documents filed in this case and statements made in court:
Smiley owned and operated Sun Health Advocates LLC, a company that was in the business of acquiring patient DNA samples and physicians’ orders for purposes of submitting those samples and orders to clinical laboratories for genetic testing, including Metric Lab Services LLC and Spectrum Diagnostic Labs LLC. Smiley, on behalf of Sun Health, entered into illicit agreements with the Metric and Spectrum laboratories under which the laboratories paid Sun Health kickbacks in exchange for delivering DNA samples and orders for genetic tests. Sun Health concealed these arrangements by issuing sham invoices to the laboratories that purportedly reflected services provided at an hourly rate even though the parties had already agreed upon the kickback amount, which was based on the revenue the laboratories received from Medicare. Metric and Spectrum paid Sun Health approximately $1.16 million in kickbacks as part of the scheme.
The charge to which Smiley pleaded guilty carries a maximum penalty of five years in prison and a fine of $250,000, or twice the gross grain or loss from the offense, whichever is greatest. Sentencing is scheduled for March 16, 2022.
Acting U.S. Attorney Honig credited special agents of the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; and special agents of the U.S. Attorney’s Office for the District of New Jersey, under the direction of Special Agent in Charge Thomas J. Mahoney, with the investigation leading to today’s guilty plea.
The government is represented by Bernard J. Cooney, Chief of the Government Fraud Unit.
Felon Who Absconded While Awaiting Sentencing on a Gun Offense Sentenced to over 5 Years’ ImprisonmentRead the Press Release
A man who possessed a firearm as a felon was sentenced on November 3, 2021, to more than 5 years in federal prison.
Joel Dawdy, age 31, from Sioux City, Iowa, received the prison term after a December 21, 2020, guilty plea to being a felon in possession of a firearm.
Evidence at his change of plea, detention, and sentencing hearings revealed that on January 28, 2020, officers attempted to stop a vehicle in which Dawdy was a passenger. Dawdy exited the car, ran, and during the pursuit jettisoned a loaded gun. After pleading guilty to his crime, he violated the conditions of his supervised release, absconded from supervision, and had to be found and arrested by the United States Marshal Service.
Dawdy was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Dawdy was sentenced to 63 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Dawdy is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by the Sioux City, Iowa Police Department, the United States Marshals Service, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-4030.
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Federal Law Enforcement in Chicago Seizes Private Plane and 100 Kilograms of Cocaine; Three Defendants ArrestedRead the Press Release
CHICAGO — Three individuals have been arrested on federal charges as part of an investigation that disrupted a suspected Mexico-to-Chicago drug pipeline and resulted in government seizures of a private plane and 100 kilograms of cocaine.
Federal agents on Wednesday discovered 80 kilograms of cocaine in a vehicle in Chicago’s River North neighborhood and another 20 kilograms of the drug in a hotel room in the city’s Gold Coast neighborhood, according to criminal complaints filed in U.S. District Court in Chicago. The cocaine had allegedly been transported to the Chicago area earlier Wednesday via private plane from Toluca, Mexico, via Houston, Texas. The plane arrived at Gary/Chicago International Airport in Gary, Ind., and the drugs were driven in suitcases to downtown Chicago, the charges allege.
Two of the defendants – SEBASTIAN VAZQUEZ-GAMEZ, 30, of Toluca de Lerdo, Mexico, and RODRIGO ALEXIS JIMENEZ-PEREZ, 25, of Columbus, Ind. – were arrested Wednesday in downtown Chicago, while the third defendant – SERGIO IVAN BLAS, 39, of Indianapolis, Ind. – was arrested Thursday in the Indianapolis area. Federal agents today obtained a warrant to seize the private plane, a Bombardier Challenger 600.
A detention hearing for Jimenez-Perez is scheduled for Nov. 9, 2021, at 1:00 p.m. before U.S. Magistrate Judge Gabriel A. Fuentes in Chicago. Vazquez-Gamez is set to appear for a detention hearing before Judge Fuentes on Nov. 10, 2021, at 3:00 p.m. Blas is scheduled to make his initial court appearance on Nov. 9, 2021, in U.S. District Court in the Southern District of Indiana.
The charges and arrests were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Robert J. Bell, Special Agent-in-Charge of the Chicago Field Division of the U.S. Drug Enforcement Administration; Angie Salazar, Special Agent-in-Charge of the Chicago office of Homeland Security Investigations; and Justin Campbell, Acting Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago. Substantial assistance was provided by U.S. Customs and Border Protection, the U.S. Attorney's Office for the Southern District of Indiana, and the Chicago Police Department. Assistant U.S. Attorneys Ashley Chung and Andrew Erskine represent the government.
According to the charges, Vazquez-Gamez arrived on the plane from Houston and loaded suitcases full of cocaine into a Lincoln Navigator sport-utility vehicle. Vazquez-Gamez and others from the plane entered the Lincoln and were driven to the hotel in Chicago, the complaints state. Outside the hotel, Vazquez-Gamez loaded some of the suitcases into a Toyota Highlander sport-utility vehicle driven by Jimenez-Perez, the charges allege. Agents pulled over the Toyota a few blocks away, seized the suitcases containing 80 kilograms of cocaine, and arrested Jimenez-Perez. Agents later arrested Vazquez-Gamez in his hotel room, where they seized the other 20 kilograms of cocaine, the charges allege.
The complaint against Blas accuses him of directing Jimenez-Perez on where to meet Vazquez-Gamez to pick up the cocaine.
The public is reminded that complaints contain only charges and are not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
Federal Correctional Officer Pleads Guilty to Making False Statements About Engaging in Unlawful Sexual Activity with Jail InmateRead the Press Release
LOS ANGELES – A correctional officer at the federal jail in downtown Los Angeles pleaded guilty today to a felony charge for lying to investigators about his sexual activity with an inmate who was under his care and supervision.
Abel Concho, 53, of East Los Angeles, pleaded guilty to one count of making false statements.
According to his plea agreement, Concho was employed by the Bureau of Prisons (BOP) as a correctional officer at the Metropolitan Detention Center (MDC) in Los Angeles. The victim in this case was an MDC inmate under Concho’s supervision from June 2010 to February 2011.
On July 28, 2021, Concho made a series of false statements during an administrative interview with federal investigators, including that he “never” had sexual contact with one MDC inmate, when in fact Concho engaged in sexual contact with the victim on approximately 35 different occasions. Concho, on multiple occasions, also lied that he “never had sexual contact” with any MDC inmates, Concho admitted in the plea agreement.
After initially denying he had any sexual contact with the victim, Concho then falsely stated that he had sexual intercourse with the victim just “once (or) twice” that he could recall. Concho also falsely stated on multiple occasions that he did not provide a cellphone to the victim to take nude photographs for him. In fact, he illegally smuggled a cellphone into MDC and provided that cellphone to the victim to take nude photographs for him, which the victim then did.
Concho admitted in his plea agreement that he knew it was a federal crime and an offense that could lead to termination for a BOP employee to knowingly engage in any sexual act with a person in official detention and under his custodial, supervisory and disciplinary authority in a federal facility. Concho admitted he knew that under the law and pursuant to the BOP employee code of conduct, sexual activity between staff and inmates could not be considered consensual and was not permitted. In addition to the harm it caused inmates, staff sexual acts with inmates threatened the safety and security of the prison and betrayed the trust and confidence placed in the BOP by the public, Concho admitted.
He further admitted he knew it was a federal crime and an offense that could lead to termination for a BOP employee to smuggle contraband, including cellphones, into MDC for inmates’ use.
As part of the plea agreement, Concho agreed not to seek employment in any law enforcement capacity or a position that requires carrying a firearm, to complete 100 hours of community service, and to pay $9,500 in restitution to the victim.
United States District Judge R. Gary Klausner has scheduled a February 7, 2022 sentencing hearing, at which time Concho will face a statutory maximum sentence of five years in federal prison.
The United States Department of Justice Office of Inspector General and the FBI investigated this matter.
Assistant United States Attorney Veronica Dragalin of the Public Corruption and Civil Rights Section is prosecuting this case.
Florida Man Apprehened at the Cyril E. King Airport Sentenced to 37 Months in Federal Prison as a Career Offender on Marijuana Trafficking ConvictionRead the Press Release
St. Thomas, USVI – United States Attorney Gretchen C.F. Shappert announced today that Marvin Forbes, age 49, from Orlando, FL, was sentenced to 37 months of incarceration by Judge Robert A. Molloy on his conviction of Possession with Intent to Distribute Marijuana after qualifying as a career offender in federal court.
According to court documents, on June 19, 2020, Forbes arrived at the Cyril E. King Airport in St. Thomas on Spirit Airlines flight #1610 which departed from Fort Lauderdale, FL. Upon arrival in St. Thomas, United States Customs and Border Protection (CBP) officers conducted an inspection of Spirit Airline’s checked bags. CBP K-9 “Sherpa” later alerted to the presence of narcotics in Forbes’ checked bag. After Forbes removed his bag from the baggage claim belt, CBP officers escorted him to secondary for inspection. In secondary, CBP officers cut a lock that was placed on Forbes’ suitcase after he failed to produce the key to open the lock. Inside Forbes’ suitcase, CBP officers discovered eight (8) vacuum sealed packages, each containing multiple smaller, individually vacuum sealed packages, of marijuana with a total weight of 12.61 kilograms. Forbes entered a guilty plea in U.S. District Court on May 17, 2021.
At sentencing, Forbes qualified as a career offender pursuant to the U.S. Sentencing Guidelines based on the facts that: (1) he was at least 18 years old at the time he committed the offense of conviction; (2) his conviction is a felony that is either a crime of violence or a controlled substance offense; and (3) Forbes had at least two prior felony convictions of either a crime of violence or a controlled substance offense. As a career offender, Forbes’ guideline sentence was increased from 24 to 37 months of incarceration.
This case was investigated by the Department of Homeland Security, Homeland Security Investigations and CBP. It was prosecuted by Assistant United States Attorney Delia Smith and 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.
Enrolled member of the Navajo Nation pleads guilty to federal assault chargesRead the Press Release
ALBUQERQUE, N.M. – Quincee Zohnnie, 25, of Shiprock, New Mexico, and an enrolled member of the Navajo Nation, pleaded guilty in federal court on Oct. 26 to assault with a dangerous weapon and retaliating against a victim in Indian Country. A sentencing date has not been scheduled.
According to the plea agreement, on June 14, 2020, Zohnnie was riding in the passenger seat of his girlfriend’s car when they spotted John Doe sitting outside his home on the Navajo Nation, New Mexico. Zohnnie had an argument with John Doe before returning home and retrieving his firearm. Zohnnie returned to John Doe’s residence and fired multiple rounds at the house, which at the time of the incident was occupied by John Doe’s family including a minor child.
By the terms of the plea agreement, Zohnnie faces eight years in prison.
The Farmington Residency Agency of the FBI Albuquerque Field Office investigated this case. Assistant U.S. Attorney Alexander F. Flores is prosecuting the case.