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Tuesday 2 November 2021
Texas Man Sentenced to Five Years in Prison for Multi-Year Embezzlement Scheme to Defraud Alameda-Based Labor UnionRead the Press Release
OAKLAND – Scott A. Wilson was sentenced today to sixty months in prison and ordered to pay more than $4 million in restitution for executing a multi-year embezzlement scheme targeting his former employer, Operating Engineers Local No. 3, announced Acting United States Attorney Stephanie Hinds, Federal Bureau of Investigation San Francisco Division Special Agent in Charge Craig D. Fair, and U.S. Department of Labor Office of Inspector General, Special Agent in Charge, Los Angeles Region, Quentin Heiden. The sentence was handed down by the Honorable Jeffrey S. White, U.S. Senior District Judge.
“Scott Wilson abused his authority as the IT director of the Operating Engineers Local 3 by creating a complex scheme to steal millions of dollars in union funds. Today’s sentencing affirms the U.S. Department of Labor Office of Inspector General’s commitment to safeguard union funds from those who seek to enrich themselves at the expense of union members,” said Special Agent-in-Charge Quentin Heiden.
Wilson, 54, formerly of Tracy, Calif., has been residing in Texas since 2017 and pleaded guilty to the charge on July 6, 2021. Wilson was the director of the union’s information technology department where he had authority to purchase goods and services. According to his plea agreement and other documents in the case, while working for the union, Wilson set up a front company called OST. Using the alias, “John Lasson,” Wilson used OST to receive funds from the union, at first directly and then through two other front companies set up by a friend and a relative under Wilson’s direction. Between 2011 and 2017, Wilson used these front companies to fraudulently invoice the union for IT-related goods and services that were never to be delivered, taking some funds directly through OST, and others through kickbacks paid by his friend and relative. Wilson also used the front companies to conceal payments made with union funds to his own family members, primarily for work that was never done. At one point, Wilson arranged for the union funds to be withdrawn from the front companies’ accounts and delivered to him in the form of cash wrapped in bundles.
Over the course of six years, Wilson fraudulently misdirected at least $3.98 million to the front companies, $2.44 million of which was kicked directly back to Wilson in various ways. In the plea, Wilson admitted that he used the embezzled funds to, among other things, purchase land in Corsicana, Texas, and build himself a house there.
Wilson was charged by information with one count of embezzlement of labor organization assets, in violation of 29 U.S.C. § 501(c). He pleaded guilty to the count.
In sentencing Wilson to the five-year prison term, Judge White pointed out that Wilson committed more than a single fraudulent act—instead, the defendant engaged in “hundreds of decisions to steal money” and that he was “embarking on a campaign to cover up” the offense with “perjury, false statements” and “fantastical” stories. Judge White stated, “[it is] hard to conceive of a white-collar offense significantly more serious than this one.”
In addition to the prison term, Judge White also ordered White to pay restitution of $4,669,577 and to serve a three-year term of supervised release. Judge White ordered Wilson to surrender and begin serving his prison term on or before January 3, 2022.
This case is being prosecuted by Assistant United States Attorney Colin Sampson of the Special Prosecutions Section of the United States Attorney’s Office for the Northern District of California. The prosecution is the result of an investigation by the Federal Bureau of Investigation and Department of Labor Office of Inspector General.
Syracuse Man Sentenced to 70 Months for Drug, Money Laundering and Firearms ChargesRead the Press Release
SYRACUSE, NEW YORK – John Wright, age 33, of Syracuse, was sentenced today to serve 70 months in prison for conspiracy to distribute, and possess with intent to distribute marijuana, as well as conspiracy to commit money laundering of drug proceeds, possession of marijuana with the intent to distribute, possession of firearms by a convicted felon, and possessing firearms in connection with a drug trafficking crime announced United States Attorney Carla B. Freedman, Kevin Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI), and Gregory S. Oakes, Oswego County District Attorney.
As part of his previous guilty plea, Wright admitted that between May 2017 and August 2017, he received bulk quantities of marijuana from a source of supply who imported marijuana via the Akwesasne Mohawk Reservation in Northern New York State. Wright sold marijuana he received to customers in Syracuse, and sent the proceeds back to his source of supply. As part of his guilty plea, Wright admitted that he distributed at least 54 kilograms (119 pounds) of marijuana. Wright further admitted that he possessed a handgun and a loaded shotgun in his home to protect his drugs and the proceeds from drug sales. In 2008, Wright was convicted in Onondaga County Court of Criminal Possession of a Weapon in the Third Degree, and was prohibited from possessing firearms at the time of his commission of his federal crimes.
In addition to his term of imprisonment, Wright was also sentenced to 3 years of supervised release and ordered to pay a money judgment in the amount of $204,581.00 representing proceeds derived from marijuana distribution.
This case was investigated by Homeland Security Investigations (HSI), the U.S. Internal Revenue Service-Criminal Investigation (IRS-CI), the Syracuse Police Department, and the Oswego County Drug Task Force, comprised of Special Agents of HSI, members of the City of Oswego Police Department, the Oswego County Sheriff’s Office, Investigators from the Oswego County District Attorney’s Office, the SUNY Oswego Police Department, and Agents of the U.S. Border Patrol. The case was prosecuted by Assistant United States Attorney Thomas Sutcliffe.
Stoneham Man Pleads Guilty to Identity Theft and Fraud Related to COVID-19 Pandemic Unemployment AssistanceRead the Press Release
BOSTON – A Stoneham man pleaded guilty today to his involvement in a fraudulent scheme to obtain COVID-19-related unemployment assistance using stolen personal information.
Daniel Maleus, 33, pleaded guilty to one count of conspiracy to commit wire fraud, five counts of wire fraud and one count of aggravated identity theft. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for Feb. 15, 2022. Maleus was indicted on July 22, 2021.
In March 2020, in response to the global coronavirus pandemic, Congress passed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), which among other things, created a temporary federal unemployment insurance program called Pandemic Unemployment Assistance (PUA). The PUA program, which in Massachusetts is administered by the Department of Unemployment Assistance, provided unemployment insurance benefits for individuals who were not eligible for other types of unemployment benefits. Maleus filed and conspired with others to file fraudulent PUA claims using the stolen personal information of others as well as email accounts Maleus and others created in the names of their victims. Maleus and his co-conspirators obtained more than $250,000 in payments on fraudulent unemployment claims submitted between April 2020 and April 2021.
The charges of wire fraud and conspiracy to commit wire fraud each provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of aggravated identity theft provides for a mandatory sentence of two years in prison to be served consecutively to any other sentence imposed. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Jonathan Mellone, Special Agent in Charge of the Department of Labor, Office of Inspector General, Office of Investigations made the announcement. Special assistance was provided by the Massachusetts Department of Unemployment Assistance. Assistant U.S. Attorney Christopher J. Markham of Mendell’s Securities, Financial & Cyber Fraud Unit is 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.
St. Louis County man pleads guilty for interstate transport of a minor for illicit sexual conductRead the Press Release
ST. LOUIS – United States District Court Judge Sarah E. Pitlyk accepted a plea of guilty from Wesley Kimble, age 24, on today’s date for interstate transport of a minor for the purpose of engaging in illicit sexual conduct. A grand jury in the Eastern District of Missouri previously indicted Kimble on the charge.
In the fall of 2019, Kimble met the 15-year-old minor victim through an online dating site. Kimble engaged in online messaging with the victim, with many of the messages being sexual in nature. In December 2019, Kimble, with an intent to engage in sexual activity with the minor, drove from St. Louis, Missouri to Springfield, Illinois and picked up the victim. On the return trip to St. Louis, Kimble engaged in sexual activity with the victim. Kimble also provided the victim with illegal drugs and engaged in unprotected sex with the victim once they arrived at his apartment in St. Louis County.
The case was investigated by the Federal Bureau of Investigation.
South Bend Man Sentenced to 37 Months in PrisonRead the Press Release
SOUTH BEND – Daviae O'Shay McKinstry, 25 years old, of South Bend, Indiana, was sentenced by U.S. District Court Judge Damon R. Leichty after pleading guilty to being a felon in possession of a firearm, announced United States Attorney Clifford D. Johnson.
McKinstry was sentenced to 37 months in prison followed by 2 years of supervised release.
According to documents in the case, McKinstry’s DNA was discovered on a firearm that was found near the scene of a crime in Elkhart, Indiana on November 3, 2018. One of McKinstry’s prior felony convictions includes a battery for his involvement in a shooting incident.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, with the assistance of the Elkhart Police Department. This case was prosecuted by Assistant United States Attorney Kimberly L. Schultz.
This case was prosecuted as part of the South Bend Group Violence Intervention Program, a Project Safe Neighborhoods Initiative (PSN). The PSN Program 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.
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Sixteen indicted in multi-state drug distribution ringRead the Press Release
Seattle – A series of arrests over the last ten days has disrupted a multi-state methamphetamine and fentanyl distribution ring. The drugs were coming up from California and were being distributed in King, Pierce, Thurston, Lewis, Mason and Kitsap counties. The 18-month investigation revealed the drug trafficking organization was also distributing drugs to locations in the Southeastern United States including Florida, Arkansas and Tennessee.
“This drug organization trafficked two of the deadliest substances we are seeing in our community – fentanyl and methamphetamine,” said U.S. Attorney Nick Brown. “Members of the ring tried to trade drugs for firearms – ones they could transport to Mexico – contributing to terrible violence south of the border. These arrests are a significant step for community safety.”
According to records filed in the case, the investigation began in February 2020. Various people working with law enforcement provided information regarding the drug distribution activities. Aware of some of the group’s trafficking, law enforcement seized 10 pounds of methamphetamine in a traffic stop on May 16, 2020. Another 44 pounds of meth were seized in a stop on April 2, 2021, and 83 pounds of methamphetamine and 20,000 fentanyl pills were seized in a traffic stop on September 28, 2021. Additionally, on August 17, 2021, law enforcement seized 22 pounds of methamphetamine that conspirators attempted to mail to Fiji.
The alleged leaders of the drug distribution ring, Jose Maldonado-Ramirez, 33, and his fiancé, Iris Amador-Garcia, 30, of Bellflower, California, were arrested October 28, 2021. During a search of the residence where Iris Amador-Garcia was living with her brother and co-conspirator, Mario Amador-Garcia, 31, and co-conspirator, Bayron Eberto Garcia-Perez, 33, agents seized a kilogram of fentanyl or heroin, 80,000 pills of suspected fentanyl, and 2 firearms. Eight additional firearms were seized at search locations in Washington and California. Four other conspirators were taken into custody last week including:
Amado Pedro Castillo, 59, Brooklyn, New York
Jose Nolberto Bernal, 28, Kent, WA
Fernando Alcides Lopez-Mendez, 37, Los Angeles, CA
Justino Cruz-Victorio, 34, Joshua Tree, CA
Today, law enforcement made additional arrests of the distribution network:
Joseph Troy Easton, 42, Bremerton, WA
Angelique Marie Easton, 51, Bremerton, WA
Curtis Robert Griffin, 42, Belfair, WA
Dwayne Douglas George, 60, Spanaway, WA
Douglas Bryan Healer, 47, Port Orchard, WA
Jerry Wayne Kohl, 59, Tacoma, WA
One additional defendant was arrested today with 2 pounds of methamphetamine, three rifles, and a shotgun. An additional four guns were recovered at other search locations. Defendant Healer engaged in an armed stand-off with law enforcement today. This afternoon he was taken into custody at his Port Orchard residence without incident.
“The objectives of this operation were to hold those accountable for the menace of illegal narcotics trafficking, and the violence associated with it, which has plagued our communities for far too long in the state of Washington and throughout the Pacific Northwest,” stated DEA Special Agent in Charge, Frank Tarentino. “The DEA and our partners are focused on the most dangerous criminals in Washington. Today’s successful operation should give members of the community a level of comfort in knowing these violent offenders, who live and walk among us, won’t be putting their lives in danger any longer.”
“These warrants represent the continued efforts of IRS Criminal Investigation (IRS:CI) to ensure the safety of our communities,” said IRS:CI acting Special Agent in Charge Adam Jobes. “We are committed to working with our law enforcement partners to stop the widespread harm these illicit substances cause our friends, families, and neighbors.”
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
These indictments are 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. The investigation was led by the Drug Enforcement Administration (DEA) Seattle Field Division (SFD) Tacoma Resident Office (TRO) and Bremerton Police Department (BPD), with assistance from Tahoma Narcotics Enforcement (TNET); the Seattle, Puyallup, Auburn, Federal Way, Kent, Bonney Lake, Tacoma, and Lakewood Police Departments; the Pierce County Sheriff’s Office; Washington State Department of Corrections; Joint Narcotics Enforcement Team (JNET): Centralia and Chehalis Police Departments; Valley Narcotics Enforcement Team (VNET); and Washington State Patrol; Thurston Narcotics Team (TNT), Kitsap County Sheriff’s Office, and Mason County Sheriff’s Office; United States Postal Inspections Service (USPIS), Internal Revenue Service Criminal Investigation (IRS-CI), and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) with support from Northwest High Intensity Drug Trafficking Areas ( HIDTA).
The case is being prosecuted by Assistant United States Attorneys Benjamin Diggs and C. Andrew Colasurdo.
Sidney Woman Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
Acting United States Attorney Jan Sharp announced that Ashley Whited, 32, of Sidney, Nebraska, was sentenced on November 1, 2021 in federal court in Omaha for conspiracy to distribute and possess with intent to distribute 50 grams or more of methamphetamine. Senior United States District Judge Joseph F. Bataillon sentenced Whited to 57 months’ imprisonment. There is no parole in the federal system. After her release from prison, she will begin a five-year term of supervised release.
On May 10, 2019, law enforcement stopped a vehicle for an active arrest warrant. In the course of the wanted person’s arrest, a potted marijuana plant with the highest branch measured at 38 inches was located in the vehicle. During an interview with the subject of the arrest warrant, the plant was linked with a residence on Illinois Street in Sidney. Based on this discovery, law enforcement executed a search warrant at the Illinois Street address where Whited resided. Law enforcement seized approximately 560 grams of a mixture of methamphetamine.
This case was investigated by the Sidney, Nebraska, Police Department.
Seven KC-Area Defendants Charged in Cocaine ConspiracyRead the Press Release
KANSAS CITY, Mo. – Seven residents of the Kansas City, Missouri, metropolitan area have been indicted by a federal grand jury for their roles in a conspiracy to distribute cocaine.
Irfan Causevic, also known as “Jonny,” 37, a citizen of Bosnia, Christopher C. Oregel, 29, Nicholas Carrillo, also known as “Nicco,” 32, Admir Suljic, also known as “Babo,” 34, and Augustine Charles Aviles, also known as “Gus,” 32, all of Kansas City, Mo.; Jacob Daniel Craven, 24, of Independence, Mo.; and Micah N. Bond, also known as “Nate,” 36, of Parkville, Mo., were charged in a six-count superseding indictment returned under seal by a federal grand jury in Kansas City, Mo., on Oct. 27, 2021.
The superseding indictment unsealed today replaces the original indictment returned on June 23, 2021, which charged only Causevic. The superseding indictment, which includes six additional defendants, was unsealed and made public today following the arrests of the six additional defendants.
Causevic was arrested on June 3, 2021, and remains on pretrial release. The remaining six defendants were all arrested early this morning.
According to court documents, Causevic was arrested after he agreed to sell cocaine to an undercover detective in the Jackson County Drug Task Force. In his first transaction with the undercover detective, Causevic allegedly sold 113.1 grams of cocaine for $3,500. A few days later, Causevic allegedly agreed to sell the undercover detective nine ounces of cocaine for $6,000. Although Causevic agreed to sell cocaine, according to court documents, he did not possess any cocaine when he arrived at the arranged meeting to conduct the second transaction. He later told investigators he planned to take the money from the undercover detective with a promise of obtaining cocaine, but actually intended to steal the money without providing any cocaine.
The federal indictment alleges that all seven defendants participated in a conspiracy to distribute cocaine from Oct. 1, 2019, to June 3, 2021.
In addition to the conspiracy, Causevic is charged with three counts of distributing cocaine. Causevic and Bond also are charged together in one count of distributing cocaine. Causevic, Craven, Bond and Aviles also are charged together in one count of distributing cocaine.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Brad K. Kavanaugh. It was investigated by the FBI, the Jackson County Drug Task Force, the Kansas City, Mo., Police Department, and IRS-Criminal Investigation.
San Fernando Valley Man Who Plotted Bombing of Long Beach Rally Sentenced to 25 Years in Federal PrisonRead the Press Release
A California man who planned the bombing of a political rally in Long Beach, California, in 2019 was sentenced yesterday to 25 years in federal prison.
On Aug. 11, Mark Steven Domingo, 28, of Reseda, was found guilty of one count of providing material support to terrorists and one count of attempted use of a weapon of mass destruction at the conclusion of a five-day jury trial. Domingo has been in federal custody since April 2019.
According to court documents and the evidence presented at trial, the investigation into Domingo was prompted by Domingo’s online posts and conversations in an online forum, in which he expressed support for violence, specifically a desire to seek violent retribution for attacks against Muslims, and a willingness to become a martyr. After considering various attacks – including targeting Jewish people, churches and police officers – Domingo decided to bomb a rally scheduled to take place in Long Beach in April 2019.
As part of the plot, Domingo asked a confederate – who actually was working with the FBI as part of the investigation – to invite a bomb-maker into the scheme. Domingo then purchased and provided to the confederate and the bomb-maker – who in fact was an undercover law enforcement officer – several hundred 3½-inch nails to be used as shrapnel for the bombs. Domingo specifically chose those nails because they were long enough to penetrate organs in the human body.
Leading up to the attack, Domingo called for an event similar to the October 2017 mass shooting in Las Vegas. Following an attack on Muslims in New Zealand in March 2019, Domingo called for retribution in an online post.
Domingo selected the Long Beach rally as his target and, in April 2019, drove his confederate and the undercover officer to Long Beach to scout the location he planned to attack. While there, Domingo discussed finding the most crowded areas to place the bombs so he could kill the most people. On April 26, 2019, Domingo received what he thought were two live bombs, but were actually inert explosive devices delivered by an undercover law enforcement officer. He was arrested that same day with one of the bombs in his hands.
“At trial, [Domingo] testified and repeatedly affirmed that he intended to commit mass murder in March and April 2019,” prosecutors wrote in a sentencing memorandum that recommended a sentence of life in prison. “He admitted that the [confidential informant] stopped him from committing at least one murder in April 2019 by encouraging him to be patient. Finally, he admitted that he was excited when he learned that the [confidential informant] had access to an individual who could construct a bomb, and that he was the one who chose to attack the rally, chose to use the bombs, and chose to go through with the plot to commit mass murder, right up until the moment of his arrest.”
The FBI’s Joint Terrorism Task Force (JTTF) investigated this matter. JTTF members who participated in the investigation include the FBI, the Los Angeles Police Department, the Naval Criminal Investigative Service, the Los Angeles County Sheriff's Department and the Long Beach Police Department.
Assistant U.S. Attorneys Reema M. El-Amamy and David T. Ryan of the Central District of California and Trial Attorneys Lauren Goddard and Joshua Champagne of the National Security Division’s Counterterrorism Section prosecuted this case.
Ringleader and Members of Multi-State Anabolic Steroid Trafficking Network SentencedRead the Press Release
NORFOLK, Va. – Today, a Richmond man was the sixth and final defendant to be sentenced for his role in a multi-state anabolic steroid conspiracy that operated across the country.
According to court documents, Clyde Edward Peele, 46, is one of six members of a trafficking network, led by Michael Steven Lambert, 37, of Wilson County, North Carolina. Starting in 2018, Lambert and the five other members of the conspiracy manufactured and distributed anabolic steroids to customers across the country. They also worked together to hide and launder the proceeds of their illegal activities.
Lambert and his wife, Laura Lambert, 32, began this operation in their residence located in Wilson County. They used raw materials received from China to manufacture liquid and pill-form steroids for wholesale distribution. Lambert’s products were advertised on various underground internet forums and, with the assistance of his co-conspirators, the group shipped wholesale quantities of steroids through the U.S. Postal Service to various states for further distribution. The organization concealed its activities by using false names and identity information, encrypted messaging platforms, and crypto-currency accounts.
In 2018, North Carolina authorities arrested and charged Lambert with possession of anabolic steroids with the intent to distribute. Lambert was convicted and ordered to serve an active sentence in 2019. Rather than turn himself in to serve the sentence, Lambert adopted a new identity and moved the operation to Pennsylvania. Once there, the Lamberts and other co-conspirators resumed the distribution operation.
After the arrest of another co-conspirator, the Lamberts moved in with Adam Morin, 36, of Hanover County. Morin not only assisted in the manufacture of anabolic steroids, but he also manufactured silencers for weapons Lambert illegally possessed.
In early 2020, Lambert and his wife rented a residence in Surry County, where they established another massive anabolic steroid distribution operation. Peele worked for Lambert several days a week pressing powders into pills and shipping product to customers across the country. To avoid detection, Peele shipped packages using false names and from various postal branches in Surry County and Richmond.
Erik Eckert, 35, of Jacksonville, Florida, a Petty Officer with the U.S. Navy, and Hamdy Sayed, 37, of Katy, Texas, each received wholesale quantities of anabolic steroids from Lambert’s trafficking network and sold the steroids to others. Sayed also assisted the organization by collecting drug proceeds and funneling them through various cryptocurrency accounts and using drug proceeds to purchase luxury vehicles for the Lamberts to drive.
In total, Lambert manufactured and distributed tens of thousands of steroid units and admitted that he earned well over a million dollars in gross drug proceeds over the course of approximately two and a half years. The Lamberts used those proceeds to purchase luxury vehicles, jewelry, and a horse, among other items.
Today, Peele was sentenced to 5 years in prison for his role in the conspiracy. On September 7, Morin was sentenced to 18 months in prison for his role in the conspiracy. On September 23, Laura Lambert and Sayed were sentenced to 18 months and 3 months in prison respectively for their roles in the conspiracy. On October 12, Eckert was sentenced to time served, or approximately three months, in prison for his role in the conspiracy. Additionally, as a result of his involvement in this conspiracy, he will be discharged from the U.S. Navy.
On October 22 Lambert was sentenced to nine years in prison for his role in the conspiracy.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; Jarod Forget, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Division; Daniel A. Adame, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; Frederick E. Franks, Special Agent in Charge of the Naval Criminal Investigative Service (NCIS) Norfolk Field Office; Charlie J. Patterson, Special Agent in Charge of the ATF’s Washington Field Division; and Paul Neudigate, Chief of Virginia Beach Police, made the announcement after sentencing by U.S. District Judge Roderick C. Young.
The Norfolk Resident Office Tactical Diversion Squad conducted the investigation with the assistance of the Virginia Beach Police Department.
Special Assistant U.S. Attorney Kristin Bird and Assistant U.S. Attorney Andrew Bosse are prosecuting the case.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:20-cr-112.
Redford Man Was Sentenced to 156 months’ imprisonment on Child Pornography ChargesRead the Press Release
DETROIT - A Redford man was sentenced today to 156 months’ imprisonment on charges of receiving child pornography, announced Acting United States Attorney Saima Mohsin.
Moshin was joined in the announcement by Special Agent in Charge Timothy Waters, Federal Bureau of Investigation, Detroit Division.
Sentenced was Devin Walker, Age 24.
According to court records, beginning in 2015 and continuing up until his arrest in November 2018, Walker enticed and persuaded minor females to produce images of themselves engaging in sexually explicit conduct. He threatened his victims with violence and exposure of their images if they did not continue to send sexually explicit photos and videos. Walker communicated with his victims on the Internet using his real name as well as an alias. A search of Walker’s devices revealed 31 videos and 105 images of child pornography. Walker’s victims ranged in age from 13-years old to 17-years old.
“Walker is a sexual predator who coerced and exploited children for his own sexual gratification. The images he obtained from girls as young as 13 are not merely pictures but are a permanent record of the sexual abuse and exploitation he visited upon these children,” stated Acting United States Attorney Mohsin. “I commend the work of the FBI and the prosecutors for their dedication to investigating and prosecuting Walker for these horrible crimes.”
"Walker's conduct is an all-too-familiar example of sextortion. Sextortion begins when a predator, through threat or manipulation, coerces a minor into producing a sexually explicit image and sending it over the Internet. He then uses the threat of sharing or publishing those images to get the victim to produce more," said Special Agent in Charge Timothy Waters of the FBI's Detroit Field Office. "Make no mistake, Walker is a predator. I thank the brave young victim who took the first step towards holding Walker accountable for his crimes by reporting him to law enforcement."
This case was investigated by special agents with the FBI and was prosecuted by Assistant United States Attorney Alyse Wu.
The FBI continues to see cases that involve adults coercing minors into producing sexual images and videos online. Take a moment to learn how sextortion works and how to talk to young people about it. Information, resources, and conversation guides are available at www.fbi.gov/StopSextortion.
Rapid City Man Sentenced to Federal Prison for Receiving Child PornographyRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Rapid City, South Dakota, man convicted of Receipt of Child Pornography was sentenced on October 25, 2021 by Chief Judge Roberto A. Lange.
Nikolas John Larson, age 41, was sentenced to five years in federal prison, followed by five years of supervised release. Larson was ordered to pay a special assessment to the Federal Crime Victims Fund in the amount of $100 and $51,000 in restitution. Larson will also be required to register as a sex offender under the Sex Offender Registration and Notification Act.
Larson was arrested and federally indicted following a failed pre-employment polygraph examination. After being informed of the failed polygraph, Larson admitted to visiting the Dark Web to look for and intentionally view images of child pornography from 2009 to 2019. A forensic examination of Larson’s devices revealed over 10,000 images of child pornography and 900 child pornography videos.
This case was investigated by Homeland Security Investigations, South Dakota Division of Criminal Investigation, Federal Bureau of Investigation, Rapid City Police Department, and the Pennington County Sheriff’s Office. Assistant U.S. Attorney Heather Sazama prosecuted the case.
Larson was immediately turned over to the custody of the U.S. Marshals Service.
Rapid City Man Found Not Guilty in Federal CourtRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Rapid City, South Dakota, man was acquitted of two counts of Sexual Abuse as a result of a federal jury trial in Rapid City, South Dakota, on October 28, 2021.
Brandon Lindemann, a/k/a Brandon Lindeman, age 36, was indicted by a federal grand jury on September 17, 2020.
The charges related to the alleged sexual abuse of a juvenile female at a time when she was incapable of declining participation near Porcupine in February 2020.
The investigation was conducted by the Oglala Sioux Tribe Department of Public Safety and the Federal Bureau of Investigation. The U.S. Attorney's Office prosecuted the case.
Puerto Rico Woman Sentenced for Attempting to Smuggle Marijuana through the Henry E. Rohlsen AirportRead the Press Release
St. Croix, USVI – Nathalie Lopez, 32, of Puerto Rico, was sentenced in District Court on one count of Possession of Marijuana with Intent to Distribute on Board an Aircraft, United States Attorney Gretchen C.F. Shappert announced.
Judge Wilma A. Lewis sentenced Lopez to two and a half years of federal probation with a required 100 hours of community service and imposed a fine of $2,000 and a special assessment of $100.
According to court documents, on February 17, 2017, Nathalie Lopez traveled on American Airlines flight #1293 from Miami, Florida, to St. Croix, via the Henry E. Rohlsen Airport. Lopez checked one box on this flight containing five separate vacuum-sealed packages of marijuana, weighing approximately 4.5 kilograms. Once Lopez arrived in St. Croix, her co-conspirator, Gibbs Bully, retrieved the box containing the marijuana from the baggage carousel, and was immediately detained by Customs and Border Protection officers.
Gibbs Bully previously pled guilty to the charge of Possession of Marijuana with Intent to Distribute, and on March 14, 2019, was sentenced to a prison term of 18 months, to be followed by a four-year period of supervised release, and a fine of $4,000.
The Virgin Islands Port Authority, Customs and Border Protection, and Homeland Security Investigations investigated the case. The DEA Southeast Crime Laboratory in Miami analyzed the marijuana. Assistant United States Attorney Daniel H. Huston prosecuted the case.
Postal Contractors Charged Following Seizure of 8,000+ Pieces of MailRead the Press Release
Two Lubbock postal contractors have been charged with possession of stolen mail, announced Acting U.S. Attorney Chad E. Meacham.
The investigation – which culminated in the recovery of more than 8,000 pieces of mail worth more than $4 million – marks the largest ever seizure of stolen mail in Northern District of Texas history.
Joe Roy Rivas, III, 22, and Jessica Lynn Solomon, 35, were indicted on Oct. 13 on one count of conspiracy to possess stolen mail and eight counts of possession of stolen mail. Ms. Solomon was arrested in Slaton, Texas the following day and made her initial appearance in federal court on Oct. 15; Mr. Rivas was arrested in Slaton on Oct. 27 and made his initial appearance in federal court yesterday afternoon.
According to the indictment, Mr. Rivas and Ms. Solomon were former co-workers at Cargo Force, Inc., a company that contracts with the United States Postal Service to load mail into and out of air containers destined for flights to and from the Lubbock International Airport.
During their shifts, the defendants allegedly sifted through mail looking for items containing cash, gift cards, checks, and money orders. They allegedly stole that mail and stashed it in 55-gallon trash bags at their residences. Among the checks they stole were a $25,728 check made payable to a telecom co-op, a $15,000 check to a consulting group, and a $241,1863 check to a facilities management and food services company.
An indictment is merely an allegation of criminal conduct, not evidence. Like all defendants, Mr. Rivas and Ms. Solomon are presumed innocent until proven guilty in a court of law.
If convicted on all counts, they face up to 45 years in prison.
The U.S. Postal Inspection Service and Slaton Police Department conducted the investigation. Assistant U.S. Attorney Ann Howey is prosecuting the case.
Posing on Social Media with Guns and Drugs Leads Waterloo Man to Federal PrisonRead the Press Release
A man who made several social media posts posing with guns and marijuana was sentenced today to nearly three years in federal prison.
Joshua Adam Rode, age 24, from Waterloo, Iowa, received the prison term after a June 30, 2021 guilty plea to one count of being a drug user in possession of a firearm.
In a plea agreement, Rode admitted he had made several social media posts depicting himself with marijuana and firearms. Waterloo police officers then located Rode sitting in his car in a residential neighborhood in Waterloo. Officers approached Rode’s car, smelled the odor of marijuana, and asked him to step out of the car. Rode then retrieved an item from under the driver’s seat and attempted to run through responding officers. The officers stopped Rode and arrested him, finding a loaded handgun, with a round chambered, underneath Rode on the ground. Officers then found marijuana inside Rode’s car.
Rode was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Rode was sentenced to 33 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.
Rode is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated by the Waterloo Police Department and the Federal Bureau of Investigation and prosecuted by Assistant United States Attorneys Matthew Gillespie and Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21‑CR‑02036-CJW‑MAR.
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Port St. Lucie Man Pleads Guilty to Child Pornography ChargesRead the Press Release
Miami, Florida – A 21-year-old man from Port St. Lucie, Florida, Christopher Fabrisio Jimenez, has pled guilty in federal district court in Ft. Pierce to producing and distributing child pornography.
According to court documents, in January of 2020, a fourteen-year old girl reported to police investigators that she believed she had been sexually assaulted. Through the course of their investigation, law enforcement discovered that Jimenez had picked-up the fourteen-year-old in a vehicle, driven her around, and had given her alcoholic beverages until she passed out. Jimenez then recorded a sexually explicit video of the girl and posted it on a social media application. The day after the incident, Jimenez’s phone was deactivated and shortly after that, he left the State of Florida. The FBI later arrested him in New Jersey.
Jimenez pled guilty to one count of production of child pornography and one count of distribution of child pornography and faces up to 50 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. The case is currently set for sentencing on March 8, 2022 at 10:00 a.m.
U.S. Attorney Juan Antonio Gonzalez of the Southern District of Florida and Special Agent in Charge George L. Piro, FBI Miami, announced the guilty plea.
FBI Miami investigated the case, together with the Martin County Sheriff’s Office. Assistant U.S. Attorneys Luisa Berti and Daniel Funk are prosecuting the case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 20-cr-14019.
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Porcupine Man Sentenced to Federal Prison for Carjacking and Firearm ChargeRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Porcupine, South Dakota, man convicted of Carjacking and Use and Brandishing of a Firearm During the Commission of a Crime of Violence was sentenced on October 29, 2021, by U.S. District Judge Jeffrey L. Viken.
Curtis Horse, age 30, was sentenced to 10 years in federal prison, including three years in federal prison for the Carjacking conviction and a consecutive sentence of seven years in federal prison for the Firearm conviction. Horse was also sentenced to five years of supervised release to follow imprisonment and ordered to pay a $200 special assessment to the Federal Crime Victims Fund. Restitution was ordered in an amount to be set at a later date.
Horse was indicted by a federal grand jury on December 8, 2020. He pleaded guilty on July 9, 2021. The conviction stems from Horse burglarizing and damaging property at a construction business building in Rapid City during the early morning hours of November 13, 2020. After breaking into the construction business, Horse stole a vehicle, tools, and a firearm belonging to another business that kept property at the same location. Horse fled with the vehicle until he abandoned it near a school elsewhere in Rapid City. Horse then took the firearm and walked into another business, where an individual was working on an indoor construction project. Horse pointed the gun at the individual, demanding his pickup keys and cell phone. Horse left in the person’s pickup. When law enforcement located Horse, he led them on a high-speed chase in Rapid City before making a turn into and hiding behind a business after cresting a hill, eluding officers. Later that day, law enforcement near Porcupine, South Dakota, on the Pine Ridge Reservation, spotted Horse in the pickup. Horse led officers on a chase at speeds up to 115 miles per hour from Porcupine to Evergreen housing, also on the reservation. Horse then led the chase through residential property in Evergreen before abandoning the vehicle and fleeing from police. Horse was not arrested until the next day, when he was found hiding in the attic of a residence in Evergreen.
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.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Rapid City Police Department, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Eric Kelderman prosecuted the case.
Horse was immediately turned over to the custody of the U.S. Marshals Service.
Phoenix Man Sentenced to 50 Months for Cross-Country Drug ConspiracyRead the Press Release
PHOENIX, Ariz. – Last week, Brandon (Brandi) Greenberg, 30, of Phoenix, was sentenced by U.S. District Judge John J. Tuchi to 50 months in prison, followed by 48 months of supervised release. Greenberg previously pleaded guilty to conspiracy and distribution of methamphetamine.
Over a nine-month period in 2018 and 2019, Greenberg mailed 30 parcels of methamphetamine ranging from less than half a pound to roughly six pounds, from Arizona to Massachusetts through the U.S. Postal Service. Most of the methamphetamine originated in Phoenix, and was then distributed by Greenberg’s co-conspirators in the greater Boston metropolitan area. Western Union and U.S. Postal Service records established payments sent from co-conspirators in Massachusetts to Greenberg in Arizona. During the execution of a search warrant at Greenberg’s residence in Phoenix in August 2019, investigators seized an additional 486 grams of methamphetamine.
Several other individuals who participated in the conspiracy have pleaded guilty and are awaiting sentencing in Massachusetts.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The U.S. Postal Inspection Service, Drug Enforcement Administration, and Homeland Security Investigations conducted the investigation in this case. Assistance was provided by the Massachusetts State Police, the Boston (Massachusetts) Police Department, the Peoria (Arizona) Police Department, the Middlesex County (Massachusetts) District Attorney’s Office, the Suffolk County (Massachusetts) District Attorney’s Office, and the Arlington (Massachusetts) Police Department. Assistant U.S. Attorney James E. Arnold, District of Massachusetts and Assistant U.S. Attorney Jacqueline Schesnol, District of Arizona, handled the prosecution.
CASE NUMBER: CR21-288-JJT
RELEASE NUMBER: 2021-077_Greenberg# # #
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.Philadelphia Sex Offender Sentenced to 1 ½+ Years in Prison for Failing to Register After Absconding from Federal SupervisionRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Edward C. Kipp, 75, of Philadelphia, PA, was sentenced to 19 months in prison and ten years of supervised release by United States District Court Judge Jeffrey L. Schmehl for failing to register as a sex offender, as required by the Sex Offender Registration and Notification Act (SORNA), also known as “Megan’s Law.” Under Megan’s Law, sex offenders are required to register their home, work, and school addresses with state law enforcement, so that individuals can search a database and be aware of convicted sex offenders living, working, or attending school in their neighborhood.
In August 2021, the defendant was convicted at trial of the charge of failing to register as a sex offender. In 2013, Kipp was convicted of possessing child pornography. Because of that conviction, he is required to register as a sex offender with the Pennsylvania State Police, and to verify that registration on an annual basis for 10 years. The defendant must also notify the State Police within three business days if there is any change in his residence. In 2020, Kipp absconded from federal supervised release and moved to a new residence without updating his registration. For this offense, he was charged by Indictment in September 2020.
“The purpose of Megan’s Law is to provide the public with current information about the whereabouts of sex offenders in order to ensure public awareness and safety,” said Acting U.S. Attorney Williams. “Failure to comply with the Megan’s Law registration requirement is not simply an administrative hiccup; it is a federal crime. And if offenders do not fulfill their obligation to report, we will aggressively prosecute them to ensure compliance.”
“Non-compliance regarding sex offender registration is, quite simply, not an option,” said Eric Gartner, U.S. Marshal for the Eastern District of Pennsylvania. “We will continue to aggressively enforce these laws purposed to protect our children as part of a deterrence framework supporting Project Safe Childhood.”
“Parents want to know if there’s a sex offender living in the neighborhood, to better protect their children, and Megan’s Law gives them that right,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “If registered offenders refuse to keep their information current, as required, the FBI and our partners will see that they’re held accountable. The community’s safety is paramount here.”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by the United States Marshals Service and the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorneys Jessica Rice and Nancy Rue.
Peabody Construction Company Owner Pleads Guilty to Tax and Workers' Compensation FraudRead the Press Release
BOSTON – The owner of a now-defunct Peabody construction company pleaded guilty yesterday in connection with a scheme to defraud the IRS of payroll taxes and to defraud his workers’ compensation insurance carrier by failing to disclose how many workers he employed.
Argyrios “Eric” Mavros, 57, pleaded guilty to 10 counts of failure to collect or pay over taxes and one count of mail fraud. U.S. Senior District Court Judge William G. Young scheduled sentencing for Feb. 17, 2022. Mavros was indicted in September 2020.
Mavros, who owned Mavros Construction, Inc., cashed more than $3.3 million in customer checks at a Peabody check cashing business and used some of those funds to pay his employees in cash. Mavros failed to report these employees or their wages in quarterly corporate tax filings, in an effort to avoid paying Social Security and Medicare taxes on employee wages and withholding federal income taxes. Overall, it is alleged that Mavros failed to pay and withhold federal taxes on more than $2.5 million in wages, resulting in a tax loss of over $1 million. Additionally, Mavros failed to report these employees to his workers’ compensation insurance carrier, thereby defrauding his insurer of premiums.
The charge of failure to collect and pay over taxes provides for a sentence of up to five years in prison, three years of supervised release and a fine of $10,000. The charge of mail fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston made the announcement. Valuable assistance was provided by the Insurance Fraud Bureau of Massachusetts. Assistant U.S. Attorney Kristen A. Kearney of Mendell’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.
Orville Broker-Dealer Charged with Securities FraudRead the Press Release
Acting U.S. Attorney Bridget M. Brennan and FBI Special Agent in Charge Eric B. Smith announced that a federal grand jury returned a seven-count indictment charging Thomas Brenner, 58, of Orville, Ohio, with conspiracy to commit mail and wire fraud, conspiracy to commit securities fraud, mail fraud, wire fraud, securities fraud and engaging in a monetary transaction in property derived from criminal activity.
According to the indictment, the defendant was a financial broker-dealer and President of First American Securities, Inc., located in Orrville. In March of 2015, it is alleged that the defendant, Person-1 and others conspired together to recruit the defendant’s clients to “invest” in United RL Capital Services, LLC (“URL”), a company that purportedly financed medical laboratory developments.
It is alleged that the defendant and Person-1 solicited investors over the phone, through letters and in person. According to the indictment, the two misrepresented material information to the investors, including that investors’ money would finance medical laboratory developments, investors would receive their money back with interest after three years and that URL was as safe or safer than other existing investments.
It is alleged that some investors, at the defendant’s and Person-1’s encouragement, removed money from their IRAs to invest in URL and that the defendant and Person-1 misrepresented that doing so would not result in tax penalties.
The indictment describes how the defendant, instead of apportioning the investors’ money as promised, allegedly used these funds for his benefit, including large racecar-related purchases and to pay taxes. The indictment also alleges that when investors inquired about their investments, the defendant and Person-1 misrepresented that their investments were secure and provided some investors with sporadic, minimal payments, disguised as installments of earned interest, in order to lull investors into believing that their money was safe and being used as promised.
According to the indictment, the defendant knew that he was being investigated in 2015 and 2016 for selling URL securities by the Financial Industry Regulatory Authority (“FINRA”), a congressionally authorized entity that licenses and regulates broker-dealers. Despite this, it is alleged that neither the defendant nor Person-1 told prospective investors about the investigation, that First American Securities, Inc. could face closure and that the defendant could be suspended from associating with any FINRA-registered firm, which he eventually was. The defendant and Person-1 also allegedly did not inform investors that the defendant and Person-1 were related as family members.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, a defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum, and, in most cases, it will be less than the maximum.
This case was investigated by the Cleveland FBI – Canton Resident Agency and is being prosecuted by Assistant U.S. Attorney Brendan O’Shea.
Omaha Man Sentenced as Felon in Possession of a FirearmRead the Press Release
Acting United States Attorney Jan Sharp announced that Ja’Von Smith, 23, of Omaha, Nebraska, was sentenced on November 1, 2021 in federal court in Omaha as a felon in possession of a firearm. Senior United States District Judge Joseph F. Bataillon sentenced Smith to imprisonment for a term of 24 months. There is no parole in the federal system. After his release from prison, Smith will begin a 3-year term of supervised release.
On December 1, 2019, Smith was observed by officers while police were conducting surveillance at a recent homicide memorial where rival gang members were gathering to discuss retaliatory action for a murder that took place the day before.
Officers observed several gang members acting in a manner which indicated that they were armed. When officers attempted to make contact with these parties, they fled in a vehicle. A high-speed chase occurred. Smith was identified as a passenger in the vehicle that was being driven by co-defendant Markese Davis. While being pursued, officers observed a handgun thrown from the vehicle. The gun, a .40 caliber handgun, was recovered by officers and submitted to a forensic lab for testing.
DNA of both Smith and Davis was recovered from the handgun. Smith had previously been convicted of felony possession of a stolen firearm in the Douglas County, Nebraska on March 13, 2017. Davis, also a convicted felon, pleaded guilty to being a felon in possession of a firearm and was sentenced to 24 months in the Bureau of Prisons on February 19, 2021.
This case was primarily investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and was part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Oklahoma City Man Sentenced to Serve a Decade in Federal Prison for Illegal Firearm PossessionRead the Press Release
OKLAHOMA CITY – Yesterday, DAVID ASHARD SAMILTON, 28, of Oklahoma City, was sentenced to serve 120 months in federal prison for being a convicted felon in possession of a firearm, announced Acting U.S. Attorney Robert J. Troester. Federal law prohibits convicted felons from possessing firearms or ammunition.
On November 2, 2020, a federal grand jury returned a one-count Indictment that alleged Samilton illegally possessed a firearm. On May 27, 2021, a federal jury found Samilton guilty of the firearms charge. At trial, the jury heard testimony that, on September 13, 2020, the Oklahoma City Police Department was dispatched to a hotel in south Oklahoma City. A hotel employee reported seeing Samilton in a vehicle and in possession of a firearm. Law enforcement searched the vehicle Samilton occupied and located a semi-automatic 9mm caliber pistol underneath his car seat.
Public records reflect that, before September 2020, Samilton had felony convictions for drug dealing, drug possession, larceny of a motor vehicle, discharging a firearm into a dwelling, and illegal firearm possession.
Today, Senior U.S. District Judge Stephen P. Friot sentenced Samilton to serve 120 months in federal prison, followed by three years of supervised release. In announcing the sentence, Judge Friot noted the nature and circumstances of the offense and Samilton’s criminal history.
This case is the result of investigations by the Oklahoma City Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant United States Attorneys Ashley Altshuler and Bow Bottomly prosecuted the case. The case is part of Project Safe Neighborhoods, the centerpiece of the Department of Justice’s violent crime reduction efforts. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions. As part of this strategy, PSN focuses on the most violent offenders and partners with local prevention and re-entry programs for lasting reductions in crime. For more information, visit https://www.justice.gov/psn.
Reference is made to public filings for more information.
Newark Man Pleads Guilty to Attempted Online Enticement of a MinorRead the Press Release
ALBANY, NEW YORK – Tristan Warner, age 48, of Newark, New Jersey, pled guilty today to attempted online enticement of a minor, announced United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
As part of his guilty plea, Warner admitted that from about October 2020 to January 15, 2021, he exchanged electronic messages, via text and through a social networking platform, with an undercover officer he believed was the mother of an 11-year-old girl. In those messages, Warner expressed an interest in meeting the minor girl and in engaging in sexual acts with her. He also communicated by phone with someone he believed to be the girl’s mother. On January 15, 2021, Warner drove from Newark to a pre-determined location in Watervliet, New York, to meet and engage in sexual acts with the minor. He brought with him condoms, stuffed animals and two small vibrators/sexual toys to give to the girl as gifts. Warner was then encountered by law enforcement and arrested.
As a result of his conviction, Warner faces a mandatory term of imprisonment of 10 years and a maximum term of imprisonment of life, a maximum fine of $250,000, and a term of supervised release of between 5 years and life. He will also be required to register as a sex offender. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors. Sentencing is scheduled for March 1, 2022 before United States District Judge Mae A. D’Agostino.
This case was investigated by the FBI, New York State Police, Colonie Police Department, and Watervliet Police Department, and is being prosecuted by Assistant U.S. Attorney Rick Belliss.
This case is being prosecuted as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Nampa Man Pleads Guilty to Distribution of MethamphetamineRead the Press Release
BOISE - A Nampa man pleaded guilty to distribution of methamphetamine.
According to court records, Edward Lee Noll, 54, of Nampa, sold another person methamphetamine on two different occasions. On October 19, 2020, Noll sold 63.4 grams of methamphetamine and on October 29, 2020, he sold 95.7 grams of methamphetamine.
Noll is scheduled to be sentenced on February 14, 2022 and faces a statutory mandatory minimum sentence of at least ten years and a maximum sentence of life in federal prison, a ten million dollar fine, and at least five years of supervised release. A federal district court judge will determine Noll’s sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney Gonzalez applauded the efforts of the Drug Enforcement Administration, Ada County Sheriff’s Office, and the City County Narcotics Unit consisting of officers from the Caldwell Police Department and the Canyon County Sheriff’s Office, which led to the charges.
This case was prosecuted by the Special Assistant United States Attorney hired by the Ada County Prosecuting Attorney’s Office with funds provided by the High Intensity Drug Trafficking Areas (HIDTA) program. HIDTA is part of the Office of National Drug Control Policy (ONDCP) created by Congress with the Anti-Drug Abuse Act of 1988. It provides assistance to federal, state, and local law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States. Idaho is part of the Oregon-Idaho HIDTA. The Idaho HIDTA is a collaboration of local, multi-jurisdictional law enforcement drug task forces, and prosecuting agencies dedicated to addressing regional drug trafficking organizations that operate in Ada, Canyon, Bannock, Kootenai, and Malheur Counties.
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Mosher Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Mosher, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on November 1, 2021, by U.S. District Judge Karen E. Schreier.
Tyrone Steven Andrews, age 29, was sentenced to 21 months in federal prison, followed by five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Andrews was indicted by a federal grand jury on June 2, 2021. He pled guilty on August 2, 2021.
The conviction stems from Andrews failing to register as a sex offender as required by federal law between November 1, 2020, and June 2, 2021. Andrews had previously been convicted of a sex offense in federal court, which required him to register until the year 2041.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Andrews was immediately turned over to the custody of the U.S. Marshals Service.
Mobridge Man Indicted for Failure to Register as a Sex OffenderRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Mobridge, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Justin Jerome Howard, age 38, was indicted on October 13, 2021. He appeared before U.S. Magistrate Judge Mark A. Moreno on October 25, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is ten years in federal prison and/or a $250,000 fine, a lifetime of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between August 17, 2021, and August 29, 2021, near Kennel, South Dakota, Howard, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of conviction under federal law, failed to properly register as a sex offender and update his registration.
The charge is merely an accusation and Howard is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service and the Mobridge Police Department. Assistant U.S. Attorney Cameron J. Cook is prosecuting the case.
Howard was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Mississippi Podiatrist Charged for Alleged Foot Bath SchemeRead the Press Release
A federal grand jury in Oxford, Mississippi, returned an indictment on Oct. 27 that was unsealed today, charging a Mississippi podiatrist with a scheme to defraud health care benefit programs, including Medicare, by prescribing and dispensing medically unnecessary medications and ordering medically unnecessary testing, including in exchange for kickbacks and bribes.
According to court documents, Carey “Craig” Williams, 63, of Water Valley, owned and operated a podiatry clinic, North Mississippi Foot Specialists P.C., as well as an in-house pharmacy. The indictment alleges that Williams regularly prescribed antibiotic and antifungal drugs to be mixed into a tub of warm water for patients to soak their feet. These drug cocktails often included capsules and creams that were not medically indicated to be dissolved in water and were often chosen based on their anticipated reimbursement amount rather than on medical necessity. The indictment also alleges that Williams ordered medically unnecessary molecular diagnostic testing to be performed on his patients’ toenail clippings, including testing for the bacteria that causes “cat scratch disease,” which is unlikely to be found in a toenail. In addition, the indictment alleges that Williams solicited and received cash kickbacks from a marketer in exchange for referring prescriptions for foot bath medications and referring biological specimens and testing orders to pharmacies and laboratories. Between approximately July 2016 and July 2021, Williams allegedly caused pharmacies to submit over $4.9 million in false and fraudulent claims to Medicare for dispensing expensive foot bath medications that were not medically necessary. Between approximately January 2018 and April 2021, Williams also allegedly caused a diagnostic laboratory to submit more than $6.4 million in false and fraudulent claims to Medicare for medically unnecessary molecular diagnostic testing.
Williams is charged with one count of conspiracy to commit health care fraud and wire fraud; seven counts of health care fraud; one count of conspiracy to defraud the United States and to offer, pay, solicit, and receive kickbacks; and two counts of soliciting and receiving kickbacks. He made his initial court appearance today before U.S. Magistrate Judge David A. Sanders of the U.S. District Court for the Northern District of Mississippi. If convicted, Williams faces a maximum penalty of 20 years of imprisonment for conspiracy to commit health care fraud and wire fraud; 10 years of imprisonment per health care fraud count; five years of imprisonment for the kickback conspiracy count; and five years of imprisonment per count of soliciting and receiving kickbacks. 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 Clay Joyner for the Northern District of Mississippi, Special Agent in Charge Derrick L. Jackson of the Department of Health and Human Services-Office of Inspector General (HHS-OIG), and Acting Assistant Director Jay Greenberg of the FBI’s Criminal Investigative Division made the announcement.
HHS-OIG and the FBI are investigating the case.
Trial Attorneys Sara E. Porter and Justin M. Woodard of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Clayton A. Dabbs of the U.S. Attorney’s Office for the Northern District of Mississippi are prosecuting the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, comprised of 15 strike forces operating in 24 federal districts, has charged more than 4,200 defendants who collectively have billed the Medicare program for more than $19 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at https://www.justice.gov/criminal-fraud/health-care-fraud-unit.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Mission Woman Sentenced to 12 Years in Federal PrisonRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Mission, South Dakota, woman convicted of two counts of Assault Resulting in Serious Bodily Injury, one count of Health Care Fraud, and one count of Obtaining Controlled Substances by Fraud was sentenced on October 22, 2021, by Judge Jeffrey L. Viken, U.S. District Court.
Frenchone One Horn, a/k/a Frenchone Kills In Water, age 41, was sentenced to 60 months in federal prison to be served consecutively on each count of Assault Resulting in Serious Bodily Injury. One Horn was sentenced to 24 months in federal prison on the charge of Health Care Fraud, to be served consecutively to the assault charges. As to the charge of Obtaining Controlled Substances by Fraud, One Horn was sentenced to 12 months in federal prison. In total, One Horn was sentenced to 12 years in federal prison, followed by three years of supervised release, and ordered to pay $400 in special assessments to the Federal Crime Victims Fund.
One Horn was indicted for the charges by a federal grand jury on October 22, 2020. She pleaded guilty on May 28, 2021.
One Horn was addicted to prescription controlled substances and was no longer able to obtain controlled substances as a result of her behavior. One Horn assaulted others, including her minor children, in order to obtain prescriptions from medical providers for the injuries she intentionally inflicted. As a result of One Horn’s actions, three victims lost four fingers to amputation. One Horn fabricated stories as to how the individuals received their injuries, and also provided false statements to health care providers in order to obtain controlled substances and health care benefits. Once the individuals received controlled substances, One Horn took the controlled substances, despite the individuals having significant bodily injuries.
This case was investigated by the U.S. Department of Health and Human Services - Office of Inspector General and the Federal Bureau of Investigation. Assistant U.S. Attorney Megan Poppen prosecuted the case.
One Horn was immediately turned over to the custody of the U.S. Marshals Service.
Minnesota Man Sentenced for Possession of a FirearmRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Dent, Minnesota, man convicted of Possession of Firearm by a Prohibited Person was sentenced on October 25, 2021, by Chief Judge Roberto A. Lange, U.S. District Court.
Stacy Hansen, age 52, was sentenced to two months in federal prison, followed by two years of supervised release, to include eight months of home confienment, and a $100 special assessment to the Federal Crime Victims Fund.
Hansen was indicted for Felon in Possession of a Firearm by a federal grand jury on October 14, 2020. He pled guilty on August 4, 2021.
The conviction stems from an incident on January 24, 2020, when Hansen and Elissa Shultz, who lived in the same residence, entered an outdoor store in Pierre, and filled out ATF forms using Shultz’s information. By using Schultz’s information, Hansen was able to purchase three firearms from the store. Hansen cannot legally purchase or possess firearms due to a prior felony conviction. A search warrant was executed on Hansen’s residence and business in August 2020, where multiple firearms and hundreds of rounds of ammunition were seized. Schultz was previously sentenced on October 5, 2021, to 18 months probation for her involvement.
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.
This case was investigated by Hyde County Sheriff’s Office, the South Dakota Division of Criminal Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Meghan Dilges prosecuted the case.
Hansen is to self-report at a later time.
Mexico Man Sentenced in Federal Court for Illegal Re-EntryRead the Press Release
A man who was illegally in the United States was sentenced November 1, 2021, to 57 days imprisonment.
Gabriel Grima-Sanchez, 47, from Mexico, received the prison term after an August 18, 2021, guilty plea to illegally re-entering the United States.
At the guilty plea and sentencing hearing, evidence showed that Grima-Sanchez was arrested on March 28, 2016, in Sioux City, Iowa for Domestic Abuse Assault and was released on March 30, 2016, from custody on a state bond. Subsequent investigation revealed Grima-Sanchez was an alien who had been ordered removed from the United States and was most recently removed on May 11, 2005. On April 30, 2016, a federal indictment and arrest warrant were issued against Grima-Sanchez for illegal re-entry. On June 23, 2021, law enforcement conducted a traffic stop of a vehicle operated by Grima-Sanchez. Defendant was then taken into custody on the federal warrant.
Grima-Sanchez was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Grima-Sanchez was sentenced to time served of 57 days’ imprisonment. He must also serve a one-year term of supervised release, pay a fine of $1,000, and pay a special assessment of $100. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorney Patrick T. Greenwood and investigated by Department of Homeland Security and Immigration and Customs Enforcement.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-4044.
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Mexican National Charged with Possessing Firearms, Methamphetamine in Checked Luggage at MSP AirportRead the Press Release
ST. PAUL, Minn. – A federal criminal complaint has been filed against a Mexican national after TSA agents at Minneapolis-St. Paul International Airport found firearms and methamphetamine in his luggage, announced Acting United States Attorney W. Anders Folk.
According to court documents, on October 29, 2021, Kevin Alan Aguilar-Moreno, 20, attempted to board a Delta Airlines flight from Minneapolis to Phoenix, checking two suitcases prior to boarding. Transportation Security Administration (TSA) screening determined that Aguilar-Moreno’s luggage contained approximately one kilogram of methamphetamine; a FN, Model 509 9x19 pistol; a Rock Island Armory, 1911 A1-FS pistol; an AR-15 type firearm with no serial number; and 241 rounds of .223 ammunition, of which 39 were armor piercing ammunition. Law enforcement determined that the AR-15 type firearm is a privately made firearm (PMF). These firearms are commonly known as “ghost guns” because they do not have serial numbers, which makes them difficult for law enforcement to trace.
Aguilar-Moreno is charged with one count of possession with intent to distribute methamphetamine and one count of possessing firearms while illegally present in the United States. Aguilar-Moreno made his initial appearance earlier today before Magistrate Judge Becky R. Thorson in U.S. District Court.
This case is the result of an investigation conducted by Homeland Security Investigations, Transportation Security Administration, the Minneapolis-St. Paul Airport Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant U.S. Attorney Andrew S. Dunne is prosecuting the case.
A criminal complaint is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Massachusetts Woman Pleads Guilty to Federal Drug ChargeRead the Press Release
BANGOR, Maine: A Brighton, Massachusetts, woman pleaded guilty today in U.S. District Court in Bangor to conspiracy to distribute and to possess with intent to distribute methamphetamine, U.S. Attorney Darcie N. McElwee announced.
According to court records, between January 2017 and August 2018, Kimberly Tompkins, 52, and other members of the conspiracy distributed large quantities of methamphetamine in northern Maine. Tompkins coordinated multi-pound shipments of methamphetamine from a source in Arizona to conspirators who distributed it in Aroostook County. Members of the conspiracy sent thousands of dollars in cash to those sources in order to supply its drug trafficking enterprise.
Tompkins faces up to life in prison and a $10 million fine. She will be sentenced after the completion of a presentence investigative report by the U.S. Probation Office. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
“Aroostook County has seen a troubling increase in methamphetamine use, which law enforcement officials are taking seriously,” said U.S. Attorney McElwee. “If you, or someone you love, is struggling with such an addiction, please visit www.powerofprevention.org for the Aroostook County Substance Abuse Directory.”
The U.S. Drug Enforcement Administration and the Maine Drug Enforcement Agency investigated the case.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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Massachusetts Resident Pleads Guilty to Attempted Enticement and Coercion of a MinorRead the Press Release
ALBANY, NEW YORK – Bryan Krynicki, age 58, of Pittsfield, Massachusetts, pled guilty today to attempting to coerce and entice a minor to engage in sexual acts with him. The announcement was made by United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
As part of his guilty plea, Krynicki admitted that, between February and April 2020, he exchanged over 1,000 sexually explicit messages online with an undercover officer posing as a 14-year-old child in an attempt to entice the child into engaging in sexual acts with him. Krynicki also admitted that, on April 29, 2020, he traveled from Massachusetts to a prearranged meeting location in Rensselaer County, New York, with the intent to engage in sexual acts with the 14-year-old child that day.
In his plea agreement, Krynicki agreed to be sentenced to 120 months in prison. United States District Judge Mae A. D’Agostino will sentence him on March 2, 2022.
This case was investigated by the FBI and its Child Exploitation Task Force, which includes members of federal, state and local law enforcement agencies. This case is being prosecuted by Assistant United States Attorney Rachel L. Williams as part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Martin County Registered Sex Offender Pleads Guilty to Production of Child PornographyRead the Press Release
Miami, Florida – A 47-year-old man has pled guilty in federal district court in Fort Pierce to production of child pornography, possession of child pornography, and committing a felony offense involving a minor while being required to register as a sex offender.
According to court records, Gernard Clark first came to the attention of law enforcement after a minor reported to a school resource officer that Clark had sexually battered her. Law enforcement investigated and discovered on the SD card of Clark’s cellular telephone more than 500 sexually explicit images and more than 40 sexually explicit videos of the minor female taken when she was between 14 and 15 years old. Clark was previously convicted of Lewd and Lascivious Indecent Act with a Child Under 16 Years of Age in the 19th Judicial Circuit of the State of Florida, Martin County and, as a result, was required to register as a sex offender.
U.S. District Judge Robin L. Rosenberg will sentence Clark on January 20, 2022 at 2:00 p.m. Clark faces a mandatory minimum sentence of 35 years and a total maximum sentence of 130 years, a lifetime of supervised release, and a $250,000 fine per count.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, FBI Miami Field Office, announced the guilty plea.
FBI Miami, in particular, FBI Miami’s Child Exploitation Task Force, investigated this case, with the assistance of the Martin County Sheriff’s Office. Assistant U.S. Attorney Stacey Bergstrom is prosecuting the case.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about the Project Safe Childhood initiative and for information regarding Internet safety, please visit www.justice.gov/psc.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 21-cr-14015.
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Marshall County man sentenced for firearms violationRead the Press Release
WHEELING, WEST VIRGINIA – Justin Michael Fuller, of Moundsville, West Virginia, was sentenced today to 18 months of incarceration for a firearms charge, United States Attorney William J. Ihlenfeld II announced.
Fuller, age 34, pled guilty in October 2020 to one count of “Unlawful Possession of a Firearm.” Fuller, who is not permitted to have a firearm because of a prior conviction, admitted to having a 12-gauge shotgun and a 10mm pistol in Marshall County in May 2019.
Assistant U.S. Attorney Shawn M. Adkins prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the West Virginia State Police, the Marshall County Sheriff’s Office, and the Ohio County Sheriff’s Office investigated.
U.S. District Judge John Preston Bailey presided.
Mansfield Man Charged with Threatening VA EmployeeRead the Press Release
Acting U.S. Attorney Bridget M. Brennan announced that a federal grand jury returned a one-count indictment charging Patrick J. Rose, 59, of Mansfield, Ohio, with one count of influencing a federal official by threat.
According to the affidavit in support of the criminal complaint, on October 6, 2021, it is alleged that the defendant left a voicemail message at the Mansfield VA Community Based Outpatient Clinic (CBOC), threatening to kill a VA employee.
The Department of Veterans Affairs, Office of Inspector General (VA OIG) investigated the incident and determined that the defendant and a Clinical Pharmacy Specialist in Psychiatry at the Mansfield CBOC had a medical appointment together on October 4, 2021, during which the specialist decided to discontinue the defendant’s prescription for Diazepam. The defendant immediately became upset, allegedly threatened to “shoot somebody” and left the appointment.
Days later, on October 6, it is alleged that the defendant left a voicemail message on a phone at the CBOC threatening to harm the pharmacy specialist and “eliminate her whole family.” The defendant was later charged and arrested.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation.
In all cases, the sentence will not exceed the statutory maximum, and in most cases, it will be less than the maximum.
This investigation was conducted by the Department of Veterans Affairs, Office of Inspector General (OIG) and the Cleveland VA Medical Center (VAMC) Police Department. This case is being prosecuted by Special Assistant U.S. Attorney Jason W. White.
Manlius Man Sentenced to 15 Years for Distributing and Possessing Child PornographyRead the Press Release
SYRACUSE, NEW YORK – Chester Hammond, age 45, of Manlius, New York, was sentenced today to serve 15 years in federal prison for distributing and possessing child pornography, announced United States Attorney Carla B. Freedman; Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and New York State Police (NYSP) Superintendent Kevin P. Bruen.
As part of his previous guilty plea, Hammond admitted that while using a social media messaging application he sent an image depicting two children engaging in sexually explicit conduct to another individual over the internet. A subsequent search of Hammond’s cellular telephone revealed that he was in possession of over 400 images of child pornography. Hammond is a registered sex offender who was convicted in Oswego County in 1996 of Attempted Sexual Abuse in the First Degree.
Senior United States District Judge Thomas J. McAvoy also imposed a 25-year term of supervised release, which will start after Hammond is released from prison, and ordered Hammond to pay a $200 special assessment and restitution in the amount of $12,000. Hammond will also be required to continue to register as a sex offender.
Hammond’s case was investigated by the FBI Syracuse Mid-State Child Exploitation Task Force, comprised of FBI Special Agents and Investigators of the New York State Police, Bureau of Criminal Investigation (BCI), with assistance from the Onondaga County District Attorney’s Office. The case was prosecuted by Assistant U.S. Attorney Geoffrey J. L. Brown as a part of Project Safe Childhood.
Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Manderson Man Sentenced for Abusive Sexual ContactRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Manderson, South Dakota, man convicted of Abusive Sexual Contact was sentenced on October 22, 2021, by Judge Jeffrey L. Viken, U.S. District Court.
Skyler Two Dogs, age 25, was sentenced to time served, five years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Two Dogs was indicted by a federal grand jury in March 2019. The charge related to Two Dogs engaging in sexual contact with a juvenile female at Pine Ridge in 2017.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Megan Poppen prosecuted the case.
Local tax preparer charged with fraudulently filing tax returnsRead the Press Release
HOUSTON – A local man who had several offices in the Houston area is set to appear in federal court for allegedly filing false taxes for clients, announced Acting U.S. Attorney Jennifer B. Lowery.
The indictment, filed March 18, charges David Wright with 14 counts of aiding and assisting in preparation and filing of false income tax returns. He is set to appear before U.S. Magistrate Judge Frances Stacy at 10 a.m.
Wright operated tax preparation offices in Houston, according to the indictment. As part of his regular business, he allegedly created and placed fraudulent Schedule C items on client Form 1040s. This enabled clients to receive a higher tax refund, according to the charges.
As a result of his actions, Wright allegedly caused hundreds of thousand dollars of tax harm to the government.
If convicted, he faces up to three years in prison, and a possible $250,000 fine.
IRS-Criminal Investigation conducted the investigation. Assistant U.S. Attorney Zahra Jivani Fenelon is prosecuting the case.
Little Eagle Woman Charged with Distribution of a Controlled Substance Resulting in DeathRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Little Eagle, South Dakota, woman has been indicted by a federal grand jury for Distribution of a Controlled Substance Resulting in Death.
Samantha Uses Arrow, age 28, was indicted on October 13, 2021. She appeared before U.S. Magistrate Judge Mark A. Moreno on November 1, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 20 years in federal prison and/or a $1,000,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about January 3, 2021, in Little Eagle, Uses Arrow knowingly and intentionally distributed a controlled substance to another person, and the distribution of the controlled substance resulted in that person’s death.
The charge is merely an accusation and Uses Arrow is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Office of Justice Services, Division of Drug Enforcement, the Mobridge Police Department, and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Cameron J. Cook is prosecuting the case.
Uses Arrow was released on bond pending trial. A trial date has not been set.
Leader of Wholesale Drug Distribution Network Pleads Guilty to Distributing Synthetic Cannabinoids and Laundering Millions in ProceedsRead the Press Release
ALEXANDRIA, Va. – A Los Angeles man pleaded guilty today to being the head of a conspiracy involving the distribution of wholesale quantities of synthetic cannabinoids—commonly known as “spice” or “K2”—and laundering millions of dollars in the proceeds of the sale of that spice.
According to court documents, from 2017 through November 2019, Joseph Ruis, 56, was the leader of a Southern California-based wholesale spice manufacturing and distribution operation, along with co-defendants and sisters Kimberly Drumm, 52, and Bonnie Turner, 50, of Olive Branch, Mississippi. The illicit business presented as Aroma Superstore, and maintained a professional-looking website through which buyers around the country, including in the Eastern District of Virginia, could order packages of different varieties and flavors of spice.
The spice that Aroma Superstore sold almost uniformly contained chemicals listed as Schedule I controlled substances. The spice was sold in packages bearing the label “Not For Human Consumption” in an attempt to avoid regulatory or law enforcement scrutiny. The products were, in reality, intended to be consumed and induce a “high” similar to other controlled substances. The spice connected to this conspiracy caused an individual from New Hampshire to fatally overdose.
Ruis controlled the operation and employed several individuals, including Drumm and Turner, who helped run the business. Ruis ran Aroma Superstore like a legitimate business in many ways, such as maintaining an office, hiring a financial manager, and issuing regular paychecks to employees. Ruis dictated the prices of the different sizes of the packages of spice and employed at least two individuals to answer phone calls and take orders for spice.
Ruis, Drumm, and Turner concealed the proceeds of their spice distribution by moving the profits through a network of shell corporations. Ruis directed Turner, who had no criminal record, to open bank accounts and register businesses in her name to avoid detection by law enforcement or by financial institutions.
In May 2019, law enforcement searched locations in Southern California used by Ruis, Drumm, and Turner for their business. In one warehouse location, agents seized approximately 30 kilograms of spice as well as a large volume of packaging material and equipment used in the distribution of the spice. At another warehouse location, law enforcement seized approximately 4,500 pounds of marijuana, approximately 300 kilograms of butane honey oil, lab equipment for the extraction of Tetrahydrocannabinol (THC), and approximately $45,000. Law enforcement also searched the storage locker that Drumm had rented on behalf of Aroma Superstore and recovered approximately one kilogram of 5F-MDMB-PICA, a Schedule I chemical used to manufacture the spice. At the residence shared by Ruis, Drumm, Turner, and some of their employees, law enforcement seized three Rolex watches and one Philippe Patek watch that had belonged to Ruis; the total value of the four watches was appraised at approximately $137,200. Luxury vehicles, including a Ferrari belonging to Ruis, were also seized.
Ruis is scheduled to be sentenced on March 2, 2022. He faces a maximum penalty of 20 years in prison. As part of his plea agreement, Ruis has agreed to forfeit more than $2.9 million to the United States. Drumm and Turner each pleaded guilty to one count of conspiracy to commit money laundering and one count of distribution of Schedule I controlled substances. They are scheduled to be sentenced on December 8. They face a maximum penalty of 20 years in prison for each of the counts. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Three additional defendants have pleaded guilty to their roles in the conspiracy and will be sentenced on December 1 and January 5, 2022.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation, Operation Scary Spice. 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.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Jarod Forget, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Division; Raymond Villanueva, Special Agent in Charge of U.S. Homeland Security Investigations (HSI) Washington, D.C. Field Office; Daniel A. Adame, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; and Robert P. Mosier, Fauquier County Sheriff, made the announcement after U.S. District Judge Rossie D. Alston, Jr. accepted the plea.
Assistant U.S. Attorneys Katherine Rumbaugh and Bibeane Metsch are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-76.
Lead Man Pleads Not Guilty to Child Pornography ChargesRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Lead, South Dakota, man has been indicted by a federal grand jury for receipt of Child Pornography and Possession of Child Pornography.
William Jacob Stone, age 72, was indicted on September 14, 2021. He appeared before U.S. Magistrate Judge Daneta Wollmann on October 22, 2021, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is 20 years in federal prison and/or a $250,000 fine, up to life 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 Stone receiving and possessing computer images of child pornography between March 2020 and June 2021 in South Dakota. The charges are merely accusations and Stone is presumed innocent until and unless proven guilty.
The investigation is a joint effort between Homeland Security Investigations, the South Dakota Division of Criminal Investigation, the Rapid City Police Department, and the Pennington County Sheriff’s Office. Assistant U.S. Attorney Heather Sazama is prosecuting the case.
Stone was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for December 28, 2021.
Kearney Man Convicted for Possession with the Intent to Distribute MethamphetamineRead the Press Release
Acting United States Attorney Jan Sharp announced that Jeremy S. Gerdes, 37, of Kearney, Nebraska, was sentenced today in federal court in Lincoln for possession with the intent to distribute 50 grams or more of actual methamphetamine and 50 grams or more of methamphetamine mixture. United States District Judge John M. Gerrard sentenced Gerdes to 50 months in prison followed by a 5-year term of supervised release. There is no parole in the federal system.
On October 29, 2020, law enforcement executed a search warrant of Gerdes’s residence in Kearney. Law enforcement found Gerdes and two others in a room with suspected methamphetamine and drug paraphernalia. Law enforcement also found a case containing two bags of suspected methamphetamine in the residence. A lab confirmed that the substance was in fact about 381 grams of methamphetamine, of which at least 338 grams was actual methamphetamine.
This case was investigated by the Central Nebraska Drug/Safe Streets Task Force.
Justice Department Sues to Block Penguin Random House’s Acquisition of Rival Publisher Simon & SchusterRead the Press Release
The U.S. Department of Justice filed a civil antitrust lawsuit today to block Penguin Random House’s proposed acquisition of its close competitor, Simon & Schuster. As alleged in the complaint filed in the U.S. District Court for the District of Columbia, this acquisition would enable Penguin Random House, which is already the largest book publisher in the world, to exert outsized influence over which books are published in the United States and how much authors are paid for their work.
“The complaint filed today to ensure fair competition in the U.S. publishing industry is the latest demonstration of the Justice Department’s commitment to pursuing economic opportunity and fairness through antitrust enforcement,” said Attorney General Merrick B. Garland.
“Books have shaped American public life throughout our nation’s history, and authors are the lifeblood of book publishing in America. But just five publishers control the U.S. publishing industry,” the Attorney General continued. “If the world’s largest book publisher is permitted to acquire one of its biggest rivals, it will have unprecedented control over this important industry. American authors and consumers will pay the price of this anticompetitive merger – lower advances for authors and ultimately fewer books and less variety for consumers.”
“In stopping Penguin Random House from extending its control of the U.S. publishing market, this lawsuit will prevent further consolidation in an industry that has a history of collusion,” said Acting Assistant Attorney General Richard A. Powers of the Justice Department’s Antitrust Division. “I want to thank the Attorney General and senior leadership of the department for their support of antitrust enforcement.”
As described in the complaint, publishers compete to acquire manuscripts, which they edit, package, market, distribute and sell as books. Publishers pay authors advances for the rights to publish their books. In most cases, the advance represents an author’s total compensation for their work.
The publishing industry is already highly concentrated, as the complaint details. Just five publishers, known as the “Big Five,” are regularly able to offer high advances and extensive marketing and editorial support, making them the best option for authors who want to publish a top-selling book. Most authors aspire to write the next bestseller and selling their rights to the Big Five offers the best chance to do so.
While smaller publishers occasionally win the publishing rights to anticipated top-selling books, they lack the financial resources to regularly pay the high advances required and absorb the financial losses if a book does not meet sales expectations. Today, Penguin Random House, the world’s largest publisher, and Simon & Schuster, the fourth largest in the United States, compete head-to-head to acquire manuscripts by offering higher advances, better services and more favorable contract terms to authors. However, as the complaint alleges, the proposed merger would eliminate this important competition, resulting in lower advances for authors and ultimately fewer books and less variety for consumers.
The complaint alleges that the acquisition of Simon & Schuster for $2.175 billion would put Penguin Random House in control of close to half the market for acquiring publishing rights to anticipated top-selling books, leaving hundreds of individual authors with fewer options and less leverage. According to its own documents as described in the complaint, Penguin Random House views the U.S. publishing market as an “oligopoly” and its acquisition of Simon & Schuster is intended to “cement” its position as the dominant publisher in the United States.
Courts have long recognized that the antitrust laws are designed to protect both buyers and sellers of products and services, including, as relevant here, authors who rely on competition between the major publishers to ensure they are fairly compensated for their work. As the complaint makes clear, this merger will cause harm to American workers, in this case authors, through consolidation among buyers – a fact pattern referred to as “monopsony.”
The Antitrust Division’s Horizontal Merger Guidelines lay out a straightforward framework to analyze monopsony cases, and under those guidelines this transaction is presumptively anticompetitive. Simply put, if Penguin Random House acquires Simon & Schuster, the two publishers will stop competing against each other. As a result, authors will be paid less for their work. Authors who are paid less write less, which, in turn, means that the quantity and variety of books diminishes too.
Penguin Random House LLC is a subsidiary of Bertelsmann SE & Co. KGaA and is headquartered in New York, New York. Penguin Random House publishes 2,000 new trade books in the United States annually. In 2019, Penguin Random House reported revenues of $2.4 billion from U.S. publishing.
Simon & Schuster Inc. is a subsidiary of ViacomCBS Inc. and is headquartered in New York, New York. Simon & Schuster publishes 1,000 new trade books in the United States annually. In 2019, Simon & Schuster reported revenues of $760 million from U.S. publishing.
Irondale Missouri man pleads guilty to producing child pornographyRead the Press Release
ST. LOUIS – United States District Court Judge Stephen R. Clark accepted a plea of guilty from Andrew Hotchkiss on today’s date for the production of child pornography. A grand jury in the Eastern District of Missouri previously indicted Hotchkiss for the charge.
Between the dates of March 1, 2019 and May 13, 2019 in St. Francois County, Missouri, Hotchkiss sexually abused the victim, who was six years of age at the time. Hotchkiss used his cellular telephone to video record and produce images of his sexual abuse of the victim.
Hotchkiss distributed the images and videos of his sexual abuse of the minor via the internet to one or more others including a resident of the State of Oregon. On May 13, 2019, law enforcement officers with the Oregon State Police located the above-reference images and videos on a cellular telephone belonging to the Oregon resident who was in police custody after attempting to meet an eleven-year-old for sexual contact. It was the Oregon State Police investigation and their recovery of the images and videos produced by Hotchkiss that initiated the investigation that gave rise to the charges against Hotchkiss in this case.
The case was investigated by the St. Francois County Sheriff’s Department and the United States Secret Service.
Indiana Man Sentenced for Trafficking 1,436 Grams of Meth, Arrested During I-75 Traffic StopRead the Press Release
MACON, Ga. – An Indiana man was sentenced to federal prison after Butts County, Georgia, deputies arrested him transporting bundles of methamphetamine northbound from Florida.
Ryan Tracey Yates, 46, of Indianapolis, Indiana, was sentenced to serve 70 months in prison to be followed by three years of supervised release by U.S. District Judge Tilman E. “Tripp” Self today after previously entering a guilty plea for possession with intent to distribute methamphetamine. There is no parole in the federal system.
“Those caught moving large quantities of methamphetamine through Georgia are committing a federal crime that will be prosecuted in the Middle District,” said Acting U.S. Attorney Peter D. Leary. “The good work by the Butts County deputies and K-9 unit prevented a large quantity of methamphetamine from entering the Indianapolis community, likely saving lives.”
“I want to commend my deputies on a job well done and also thank the U.S. Attorney’s Office, FBI and GBI for their assistance in this case. I hope this sentence sends a strong message to all drug traffickers that our citizens and law enforcement do not want your poison in our community and the U.S. Attorney’s Office will not tolerate it—you will be held accountable,” said Butts County Sheriff Gary Long.
According to court documents, a Butts County Sheriff’s Office deputy pulled over a vehicle traveling northbound on I-75 driven by Yates for erratic driving. The deputy detected the strong odor of marijuana emanating from inside the car. The deputy’s K-9 gave a positive alert to the vehicle. A search of the vehicle uncovered a UPS bag containing three large bundles of methamphetamine, totaling 1436.81 grams. Yates admitted that he was transporting methamphetamine from Florida to Indianapolis.
The Butts County Sheriff’s Office, GBI and FBI investigated the case.
Assistant U.S. Attorney Alex Kalim prosecuted the case.
Grand Blanc Man Sentenced to 48 Months in Prison After Pleading Guilty to Fraud, Kickback Violations Involving UAW Health Care FundRead the Press Release
A Grand Blanc, Michigan man was sentenced to 48 months in prison after having pleaded guilty to supervising a complex fraud and kickback scheme involving UAW members and medically unnecessary compounded pain creams, scar creams, pain patches and/or vitamins, announced Acting United States Attorney Saima Mohsin.
Mohsin was joined in the announcement by Special Agent in Charge Lynda M. Burdelik, FDA Office of Criminal Investigations Chicago Field Office and Mario M. Pinto, Special Agent in Charge of the Chicago Region of the U.S. Department of Health and Human Services Office of Inspector General
Sentenced was Patrick Wittbrodt, 46. In addition to the custodial sentence, United States District Judge Laurie J. Michelson also ordered that Wittbrodt be placed on a two-year term of supervised release. In addition, Wittbrodt was ordered to pay $7,317,173.51 in restitution to Blue Cross Blue Shield of Michigan and $902,387.93 in restitution to Medicare. As part of his plea agreement, Wittbrodt also agreed to forfeit approximately $72,000 seized by federal agents.
According to court documents, Wittbrodt and his co-defendants caused an approximate $8,000,000 loss to Medicare and Blue Cross Blue Shield of Michigan (“BCBS”). Some of this money was stolen from UAW members’ prescription insurance accounts.
Court documents outlined the scheme:
Due to the high reimbursement rate paid by Medicare and BCBS for prescription pain cream, scar cream, pain patches and/or vitamins, defendants targeted these insurance plans. Wittbrodt and others would then schedule time at various UAW meetings where defendants would tout pain cream, scar cream, pain patches and vitamins to the UAW members. An aspect of the presentation was that the UAW members could receive their prescriptions free -- without paying a prescription drug copay at the pharmacy. UAW members did not realize that acceptance of the “free” medications would cost their health care fund millions of dollars.
Defendants would then collect the UAW members’ insurance information along with their family members’ insurance information. According to court documents, Dr. April Tyler, who also pleaded guilty in the case, would then authorize the pain cream, scar cream, pain patch and/or vitamin prescriptions for the UAW members and/or their family members. Defendant Dr. Tyler did not establish a valid doctor-patient relationship with any of the UAW members, did not perform a physical exam and did not determine medical necessity for the prescriptions she wrote for the UAW members. The prescriptions were not, therefore, legally eligible for reimbursement from the various insurance companies. Defendant Dr. Tyler also pre-signed prescription forms and allowed defendants to choose which compounded creams, patches and vitamins to write on the prescriptions.
Wittbrodt directed the prescriptions to various pharmacies. The pharmacies would fill the prescriptions, bill the UAW members’ insurance and pay a monetary kickback to Wittbrodt. Wittbrodt would then provide remuneration to co-conspirators from the kickbacks he received. The prescriptions were periodically re-filled and/or re-billed, regardless of whether the UAW member requested a refill or not. The prescription co-pay was waived at the pharmacy for the UAW members. Another defendant, Jeffrey Fillmore, is scheduled for sentencing on November 23, 2021.
“The unlawful actions of these defendants diverted taxpayer dollars and medications from patients who actually needed them in order to line their own pockets,” said Acting United States Attorney Saima Mohsin. “We will continue to aggressively prosecute health care fraud and hold those who commit it accountable.”
“Medical professionals who try to enrich themselves by billing federal health care programs for medically unnecessary prescription medications threaten the integrity of these programs and waste valuable taxpayer dollars that are otherwise utilized to provide medications that patients genuinely need,” said Mario M. Pinto, Special Agent in Charge of the Chicago Region of the U.S. Department of Health and Human Services Office of Inspector General. “Our agency, working together with our law enforcement partners, will continue to pursue criminals who threaten these vital health care programs.”
“Schemes that solicit and provide unneeded prescription drugs to patients erodes the confidence that U.S. consumers have in their health care professionals and others in positions of trust,” said Special Agent in Charge Lynda M. Burdelik, FDA Office of Criminal Investigations Chicago Field Office. “Medical professionals and others should know that the FDA will investigate and bring to justice those involved in the illegal distribution of prescription drugs.”
“This case demonstrates that collaboration between law enforcement and private insurance investigators is essential in prosecuting those responsible for federal healthcare fraud and kickback violations,” said by Dan Crowell, Blue Cross Blue Shield of Michigan, Director of Corporate and Financial Investigations.
This case was investigated by the United States Department of Health and Human Services – Office of Inspector General, the United States Food and Drug Administration and Blue Cross Blue Shield of Michigan, under the supervision of the U.S. Attorney’s Office for the Eastern District of Michigan. Assistant U.S. Attorney Philip A. Ross and Wayne Pratt are prosecuting the case.
Former State Employee Sentenced for Conspiracy to Illegally Import Prescription DrugsRead the Press Release
LEXINGTON, Ky. - A former Kentucky state employee, Howard Stanley Head, Jr., 59, was sentenced in federal court on Monday, to 12 months and 1 day in prison, by U.S. District Judge Gregory F. Van Tatenhove, for conspiracy to import misbranded prescription drugs. He was also fined $1,000 and ordered to forfeit $30,275 in unlawful gains.
From July 2015 to October 2019, Head regularly made online purchases of thousands of tablets of erectile dysfunction drugs, from overseas suppliers. These drugs were not authorized for entry into the United States and did not satisfy Food and Drug Administration (FDA) regulations for proper labelling. Additionally, Head is not a doctor or pharmacist, and had no legal authority to prescribe, dispense, transport or otherwise handle prescription medications.
After obtaining the shipments of generic erectile dysfunction drugs, Head resold them at a profit, to customers in Frankfort and other parts of Kentucky. While operating this illegal business, in some instances, Head used his state email account to order shipments and contact customers.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Mark McCormack, Special Agent in Charge of the FDA, Office of Criminal Investigations, Washington Field Office; and Phillip Burnett, Jr., Commissioner of the Kentucky State Police, jointly announced the sentence.
The investigation was conducted by FDA Office of Criminal Investigations and the Kentucky State Police. The United States was represented by Assistant U.S. Attorney Will Moynahan.
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