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8 December 2021
Philippine national sentenced to three years in federal prison for possession of child pornographyRead the Press Release
ALBUQUERQUE, N.M. – Rodymar Lelis, 31, of the Philippines, was sentenced in federal court on Dec. 6 to three years in prison for possession of visual depictions of minors engaged in sexually explicit conduct and false swearing in immigration matters. Lelis pleaded guilty to these charges on July 8.
According to court records, Lelis moved from the Philippines to the United States following the issuance of a non-immigrant visa. In his visa application, Lelis falsely answered “no” to the question, “Have you ever been arrested or convicted of any offense or crime, even though the subject of a pardon, amnesty, or other similar action?” Lelis was arrested in 2018 in the Philippines, and knew that his answer was false.
After arriving in the United States and while staying at a hotel near the airport in Albuquerque, on Sept. 7, 2019, Lelis logged into the Facebook Messenger application on his cellphone. The application contained previously-uploaded child pornography, which caused Facebook to generate a CyberTipline Report to the National Center for Missing and Exploited Children (NCMEC).
Upon his release from prison, Lelis will be subject to six years of supervised release and must register as a sex offender. However, Lelis has consented to deportation following his release.
The case was investigated by Homeland Security Investigations (HSI) with assistance from the Regional Computer Forensic Laboratory.
Pharmacist and Two Pharmacies Agree to Resolve Allegations of False Claims for Anti-Overdose DrugRead the Press Release
BOSTON – A Michigan pharmacist and two pharmacies agreed to pay $1 million to resolve allegations that they submitted false claims to Medicare for a drug used in rapid reversal of opioid overdoses.
Riad “Ray” Zahr, of Dearborn, Mich. and two specialty pharmacies that Zahr formerly owned and operated have agreed to resolve allegations that they submitted false claims for the drug Evzio. Evzio was a naloxone hydrochloride product used for the rapid reversal of an opioid overdose. Evzio was the highest-priced version of naloxone on the market and insurers frequently required the submission of prior authorization requests before they would approve coverage for Evzio.
The United States contends that, between Aug. 1, 2017 and June 30, 2019, Plymouth Towne Care Pharmacy, Inc. d/b/a People’s Drug Store (People’s Drug Store) and Shaska Pharmacy LLC d/b/a Ray’s Drugs (Ray’s Drugs) submitted false claims for Evzio to Medicare. In particular, the government alleges that People’s Drug Store and Ray’s Drugs submitted false and misleading prior authorization requests for Evzio that contained clinical assertions for which the pharmacies lacked any factual basis. At times, Zahr and the pharmacies initiated Evzio prescriptions based on rudimentary patient lists with only basic biographical details. In the prior authorization requests, Zahr and the pharmacies also included assertions about the comparative effectiveness of Evzio purportedly authored by prescribing physicians but that Zahr and the pharmacies actually wrote. The prescribing physicians did not review, sign, or submit the prior authorizations at issue.
The settlement also resolves allegations that Zahr, People’s Drug Store and Ray’s Drugs dispensed Evzio prescriptions to Medicare beneficiaries at times without collecting or attempting to collect co-payment obligations for Evzio, in violation of the Anti-Kickback Statute.
“Taxpayers pay a huge amount of money for federal health care programs, and they expect that money will be spent honestly and effectively – especially when it comes to expensive therapies,” said Acting United States Attorney Nathaniel R. Mendell. “Our job is to find and stop misconduct like this, which hurts those programs and cheats us all.”
“We expect the submission of truthful and non-misleading documentation by all those involved in the delivery of health care goods or services, including pharmacies that submit claims for pharmaceutical products,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “This settlement demonstrates the department’s continuing commitment to preventing fraud in Medicare and other taxpayer-funded health care programs.”
“When healthcare providers put their own financial gain above honest billing of Medicare, they violate the basic trust the public extends to healthcare professionals,” said Phillip M. Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General. “Our agency, working with our law enforcement partners, will continue to root out all forms of waste, fraud and abuse in our federal health care programs.”
“Pharmacies that take shortcuts to increase their profits by submitting false claims for expensive drugs increase medical costs for all of us,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Today’s settlement should deter anyone thinking about abusing our federal health care programs that so many rely on for their health care needs.”
Under the terms of the settlement agreement, Zahr, People’s Drug Store, and Ray’s Drugs will pay the government $1 million. The civil settlement includes the resolution of claims brought in a lawsuit filed by a whistleblower under the qui tam provisions of the False Claims Act, which allow private parties, known as relators, to bring suit on behalf of the government and to share in any recovery.
Acting U.S. Attorney Mendell; AAG Boynton; HHS OIG SAC Coyne; and FBI SAC Bonavolonta made the announcement today. Assistant U.S. Attorneys David J. Derusha and Abraham R. George of Mendell’s office and Trial Attorney Sarah Arni of the Justice Department’s Civil Division handled the matter.
Pharmacist and Two Pharmacies Agree to Pay $1 Million to Resolve Allegations of False Claims for Anti-Overdose DrugRead the Press Release
Riad “Ray” Zahr, a pharmacist in Dearborn, Michigan, along with two specialty pharmacies that Zahr formerly owned and operated, have agreed to pay the United States $1 million to resolve allegations that they submitted false claims for the drug Evzio. Evzio was an injectable form of naloxone hydrochloride indicated for use to reverse opioid overdose. Evzio was the highest-priced version of naloxone on the market, and insurers frequently required the submission of prior authorization requests before they would approve coverage for Evzio.
The United States contended that, between Aug. 1, 2017, and June 30, 2019, Plymouth Towne Care Pharmacy dba People’s Drug Store (People’s Drug Store) and Shaska Pharmacy LLC dba Ray’s Drugs (Ray’s Drugs) submitted false claims for Evzio to Medicare. In particular, the government alleged that People’s Drug Store and Ray’s Drugs submitted false and misleading prior authorization requests for Evzio that contained clinical assertions for which the pharmacies lacked any factual basis. At times, Zahr and the pharmacies initiated Evzio prescriptions based on rudimentary patient lists with only basic biographical details. Zahr and the pharmacies also included assertions in Evzio prior authorization requests purportedly authored by prescribing physicians regarding the comparative effectiveness of Evzio that the pharmacies or Zahr actually authored. The prescribing physicians did not review, sign or submit the prior authorizations at issue. The settlement also resolves allegations that Zahr, People’s Drug Store and Ray’s Drugs dispensed Evzio prescriptions to Medicare beneficiaries at times without collecting or attempting to collect co-payment obligations for Evzio, in violation of the Anti-Kickback Statute.
“We expect the submission of truthful and non-misleading documentation by all those involved in the delivery of health care goods or services, including pharmacies that submit claims for pharmaceutical products,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “This settlement demonstrates the department’s continuing commitment to preventing fraud in Medicare and other taxpayer-funded health care programs.”
“Taxpayers pay a huge amount of money for federal health care programs, and they expect that money will be spent honestly and effectively – especially when it comes to expensive therapies,” said Acting U.S. Attorney Nathaniel R. Mendell for the District of Massachusetts. “Our job is to find and stop misconduct like this, which hurts those programs and cheats us all.”
“When health care providers put their own financial gain above honest billing of Medicare, they violate the basic trust the public extends to health care professionals,” said Special Agent in Charge Phillip M. Coyne of the U.S. Department of Health and Human Services, Office of the Inspector General (HHS OIG). “Our agency, working with our law enforcement partners, will continue to root out all forms of waste, fraud and abuse in our federal health care programs.”
“Pharmacies that take shortcuts to increase their profits by submitting false claims for expensive drugs increase medical costs for all of us,” said Special Agent in Charge Joseph R. Bonavolonta of the FBI Boston Division. “Today's settlement should deter anyone thinking about abusing our federal health care programs that so many rely on for their health care needs.”
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Rebecca Socol, a former employee of kaléo Inc., the manufacturer of Evzio. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. As part of this resolution, Ms. Socol will receive $200,000 of the settlement amount. The qui tam case is captioned United States ex rel. Socol v. Plymouth Towne Care Pharmacy, Inc., 18-cv010050-RGS (D. Mass.) (under seal). On Nov. 9, the department announced that kaléo agreed to pay $12.7 million to resolve allegations that kaléo caused the submission of false claims for Evzio.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the District of Massachusetts, with assistance from HHS OIG; the Department of Defense Criminal Investigative Service; the Office of Personal Management, Office of Inspector General; the FBI; and the U.S. Postal Service Office of Inspector General.
The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The matter was handled by Trial Attorney Sarah Arni of the Justice Department’s Civil Division and Assistant U.S. Attorneys David Derusha and Abraham George for the District of Massachusetts.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Pennsylvania man guilty of threatening federal, circuit court judgesRead the Press Release
HARRISBURG, PENNSYLVANIA – Keith Thomas Dougherty, of Harrisburg, Pennsylvania, was found guilty last week of threatening federal and state judges, United States Attorney William J. Ihlenfeld, II announced.
After a three-day trial, Dougherty, 66, was found guilty of one count of “Mailing Threatening Communications” and two counts of “Interstate Communication with Threat to Injure.” Dougherty made threats to injure federal and state judges in the Middle and Western Districts of Pennsylvania in May 2017, March 2019, and January 2020. During trial, a letter and emails were shown where Dougherty threatened the “bashing of sculls” of three state court judges, “ISIS Style Beheading” of three district court judges and magistrates and threatened the lives of three circuit court judges by “AR 15’s.” Emails were also shown to have Dougherty threatening Western District of Pennsylvania U.S. District Court Judge Joy F. Conti by ordering “a sniper” to “shoot Conti in the head just to shut her up.”
Dougherty faces up to 10 ten years of incarceration and fine of up to $250,000 for the mailing charge and faces up to five years of incarceration and a fine of up to $250,000 for each of the interstate communication charges. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorneys David J. Perri and Shawn M. Adkins of the Northern District of West Virginia prosecuted the case as Special Assistant U.S. Attorneys for the Middle District of Pennsylvania. The U.S. Marshal Service, the FBI, the U.S Postal Inspection Service, and the Pennsylvania Capitol Police investigated.
Chief U.S. District Judge Colm F. Connolly of the District of Delaware presided.
Parkersburg Man Sentenced to Prison for Making False Statements on Loan ApplicationRead the Press Release
CHARLESTON, W.Va. - A Parkersburg man was sentenced today to two years in prison and ordered to pay $490,000 in restitution for making false statements on a loan application.
According to court documents and statements made in court, Jonathan Smith, 36, submitted an application to a federal credit union on June 22, 2016 for a loan in the amount of $505,000. In that application, Smith falsely represented that he intended to use the proceeds of the loan to purchase a 1963 Corvette when he know he had already purchased the Corvette for $35,000. Smith also falsely represented his monthly income to be $10,132 when it was only a fraction of that amount, and that the fair market value of the car was $1.2 million when its true value was less than $50,000. Smith further indicated that he was the owner of a certain business, when he had no ownership interest in that business.
United States Attorney Will Thompson made the announcement and commended the investigative work of the United States Secret Service.
Senior United States District Judge John T. Copenhaver, Jr. imposed the sentence. Assistant United States Attorney Christopher R. Arthur handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:20-cr-00173.
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Palm Beach County Adventure Park Zookeeper Headed to Federal Prison for Possessing Child PornographyRead the Press Release
Miami, Florida – Yesterday, a federal district judge in Fort Lauderdale sentenced 31-year-old Justin David Alban to 70 months in federal prison and 15 years of supervised release for possessing child pornography.
Over 18 months between 2019 and 2020, Alban used an on-line peer-2-peer network to obtain child sexual abuse material. In 2020, law enforcement officers found the child pornography on Alban’s computers. At the time, Alban worked as a zookeeper at a safari adventure park in Palm Beach County, Florida.
On October 15, 2020, Alban pled guilty to one count of possession of child pornography. United States District Judge Raag Singhal imposed Alban’s sentence.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, FBI Miami, made the announcement.
FBI Miami investigated the case. Assistant U.S. Gregory Schiller prosecuted the case.
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 the U.S. Attorney’s Offices and the Criminal Divisions 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.
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-80067.
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Office on Violence Against Women Announces Awards to 11 Indian Tribal Governments to Exercise Special Domestic Violence Criminal JurisdictionRead the Press Release
The U.S. Department of Justice Office on Violence Against Women (OVW) today announced awards to 11 Indian Tribal governments to support them in exercising special domestic violence criminal jurisdiction (SDVCJ). The Violence Against Women Reauthorization Act of 2013 (VAWA 2013) recognized the authority of tribes to exercise SDVCJ over certain defendants, regardless of their Indian or non-Indian status, who commit crimes of domestic violence or dating violence or violate certain protection orders in Indian country.
“We heard from tribal leaders that they need access to funds to support the day-to-day costs of SDVCJ, and I’m pleased to announce OVW is issuing eleven awards to implementing tribes to defray these costs,” said OVW Principal Deputy Director Allison Randall. “OVW is dedicated to working with tribes to address challenges in protecting victims and responding to offenders in their communities, as well as supporting tribal sovereignty."
The recipients of today’s one-year awards under OVW’s Tribal Jurisdiction Program are: Chickasaw Nation, Oklahoma; Eastern Band of Cherokee Indians, North Carolina; Fort Peck Assiniboine and Sioux Tribes, Montana; Muscogee (Creek) Nation, Oklahoma; Nottawaseppi Huron Band of the Potawatomi, Michigan; Pascua Yaqui Tribe, Arizona; Port Gamble S’klallam Tribe, Washington; Pueblo of Santa Clara, New Mexico; Seminole Nation of Oklahoma; the Cherokee Nation of Oklahoma; and the Tulalip Tribes of Washington.
OVW’s Tribal Jurisdiction Program was authorized under VAWA 2013 and supports tribes with jurisdiction over Indian country in exercising SDVCJ. Tribal Jurisdiction Program funds may be used to strengthen tribal criminal justice systems, provide indigent criminal defense, conduct jury trials and provide services and applicable rights to crime victims. Costs could include, but are not necessarily limited to, incarceration costs (including medical care) for non-Indian SDVCJ defendants, trial costs for SDVCJ cases, defense counsel costs, costs associated with empaneling a jury for an SDVCJ trial, batterer’s intervention or other pre- or post-conviction supervision or programming costs and related training and technical assistance.
About the Office on Violence Against Women
The Office on Violence Against Women provides leadership in developing the nation’s capacity to reduce violence through the implementation of the Violence Against Women Act and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities across the country that are developing programs, policies and practices aimed at ending domestic violence, dating violence, sexual assault and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw.
Nixa Physician Pleads Guilty to Making a False Statement Related to Healthcare and ConspiracyRead the Press Release
SPRINGFIELD, Mo. – A Nixa, Missouri, physician pleaded guilty in federal court yesterday to making a false statement to Medicare to obtain insurance coverage for a fentanyl prescription and to conspiring with others to use his DEA registration number to issue Schedule II controlled substances to patients in his absence.
Randall Halley, 65, pleaded guilty before U.S. Chief Magistrate Judge David P. Rush on Tuesday, Dec. 7, to one count of making a false statement related to healthcare and one count of conspiracy to use a registration number issued to another person in connection with the distribution of a controlled substance.
Halley, a licensed physician, was employed by Ozark Community Hospital - Christian County Clinic in Nixa from 2004 to June 2019. He also was employed from 2009 to 2017 as the medical director at Magnolia Square, a skilled nursing facility in Springfield, Mo.
By pleading guilty yesterday, Halley admitted that he prescribed Subsys, a fentanyl spray manufactured by Insys Therapeutics, to a patient. Halley submitted a request to Medicare for payment coverage of the prescription, falsely stating that the patient had a diagnosis of cancer. Halley knew that the patient did not have a diagnosis of cancer at that time, and was not being treated for breakthrough cancer-related pain – two conditions that Medicare required for payment coverage of Subsys. Due to Halley’s false statement, Medicare paid a total of $11,945 to cover the prescription and subsequent Subsys prescriptions.
Halley also admitted that he conspired with others at the clinic to use his registration number so they could provide prescription medication in his absence, including Schedule II controlled substances. Halley was scheduled to only be present at the clinic in Nixa on Mondays and Thursdays. Although he was often absent on those days, he still scheduled patients for appointments. In order for the clinic to continue issuing prescriptions in Halley’s absence, he directed others at the clinic to prepare prescriptions ahead of time so that he could sign them several days before the patients’ appointments. On those days when Halley was absent, he directed others at the clinic to give the patients their prescriptions, including Schedule II controlled substances. Due to this illegal conduct, Medicare paid a total of $18,901 to cover the cost of those prescriptions.
Halley specifically admitted to conspiring with Susan Gail Morris, a nurse practitioner; Lily (Nga) Nguyen, a nurse practitioner; Amber Moeschler, a licensed practical nurse; and Kimberly Hoffer, a licensed practical nurse, to use his DEA registration number to distribute Schedule II controlled substances. Morris, Nguyen, and Moeschler have already pleaded guilty to crimes related to their conduct in this conspiracy. Co-defendant Hoffer has pleaded not guilty and is set for trial in February 2022.
Under the terms of today’s plea agreement, Halley will pay a $92,225 fine and $44,887 in restitution to Medicare. The government may seek up to $355,678 in additional restitution to Medicare at the time of Halley’s sentencing hearing for conduct relevant to his false statement involving Subsys prescriptions. Additionally, Halley agreed to refrain from treating medical patients who may require the issuance of prescriptions for controlled substances, throughout the period of any post-sentencing supervision.
Under federal statutes, Halley is subject to a sentence of up to nine years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Casey Clark and Nhan D. Nguyen. It was investigated by the Department of Health and Human Services, the FBI, and the Drug Enforcement Administration.
Newport News Commercial Fisherman Sentenced for Tax FraudRead the Press Release
NEWPORT NEWS, Va. – A Newport News commercial fisherman was sentenced today to 15 months in prison for evading payment of his federal income taxes for nearly a decade.
According to court documents, from 2006 to 2016, Alfredo Loya, Jr., 50, a commercial fisherman, worked as an independent contractor for a number of fishing companies in the Hampton Roads region and elsewhere. Loya failed to file tax returns from 2006 to 2008 and 2014 to 2016. He filed returns from 2011 to 2013 but did not pay the tax owed.
Court records show that Loya failed to make payments to the IRS towards his assessed tax balances for tax years 2006, 2007, 2008, 2011, and 2013, despite being advised by the IRS and his accountant to do so. The combined tax, interest, and penalties for these tax years total approximately $148,026. Loya further failed to file Federal Tax Returns for tax years 2014, 2015, and 2016, despite being aware of his obligation to report income and pay taxes on that income. The tax due for these tax years totals approximately $90,940. Loya is attributed with an overall tax loss of approximately $238,967. Loya took various steps to avoid his assessed tax balances. He dealt heavily in cash. From about January 1, 2012, through about December 31, 2016, he cashed 71 paychecks made payable to him from fishing companies, totaling approximately $840,400.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Darrell J. Waldon, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after sentencing by Senior U.S. District Judge Rebecca Beach Smith.
Assistant U.S. Attorney Brian Samuels prosecuted 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. 4:20-cr-29.
New Orleans Felon Convicted on Gun Charge for Shooting in New Orleans-East NeighborhoodRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced today that STERLING ROBINSON, also known as “Scooter,” age 31, a resident in the New Orleans area, was convicted on December 7, 2021 by a jury in the Eastern District of Louisiana of being a felon in possession of a firearm and ammunition in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2) and obstruction of justice in violation of Title 18, United States Code, Section 1512(c)(2).
Testimony and evidence introduced at trial proved that ROBINSON possessed a firearm and ammunition when he fired five (5) shots into a car being driven by his girlfriend with her nine-year-old son as a passenger. The shooting occurred on March 13, 2020 in the 7700 block of Downman Road in New Orleans. ROBINSON then obstructed justice by attempting to dishonestly influence his girlfriend into testifying that someone else shot at her and her son. According to court records, ROBINSON was previously convicted of a federal felony charge for being in possession of a firearm in furtherance of a drug trafficking crime. When the current offense happened, ROBINSON was still on supervised release with U.S. Probation after having served a five-year sentence for that previous conviction.
ROBINSON is facing up to ten years in prison, up to three years of supervised release, a maximum fine of $250,000, and a mandatory special assessment fee of $100 for being a felon in possession of a firearm. For obstruction of justice, he faces up to twenty years in prison, up to three years of supervised release, a maximum fine of $250,000, and a mandatory special assessment fee of $100.
The Honorable U.S. District Judge Eldon E. Fallon presided over the case and no sentencing date has been set at this time.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
U.S. Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the New Orleans Police Department, and the Jefferson Parish Sherriff’s Office in investigating this matter. Assistant United States Attorneys Maurice E. Landrieu, Jr. and Charles D. Strauss prosecuted to the case.
Mexican Man Sentenced to 200 Months for Possessing with Intent to Distribute MethamphetamineRead the Press Release
Acting United States Attorney Jan Sharp announced that Roberto Luna-Nava, 34, of Durango, Mexico, was sentenced today by United States District Judge Brian C. Buescher for Possessing with Intent to Distribute 500 grams or more of methamphetamine. Luna-Nava received a sentence of 200 months’ imprisonment with a 5-year term of supervised release to follow. There is no parole in the federal system.
In August 2019, agents with the Drug Enforcement Administration (Sioux City) began investigating Luna-Nava for his role in distributing large amounts of methamphetamine in the Norfolk, Nebraska area. Agents bought ½ pound and pound quantities of methamphetamine from Luna-Nava on August 12, 2019, August 20, 2019, August 26, 2019, and September 18, 2019. On September 26, 2019, Luna-Nava was stopped by the Nebraska State Patrol and was in possession of one pound of methamphetamine. A search warrant was executed on Luna-Nava’s residence and a storage shed used by Luna-Nava. During the search, an additional 18 pounds of methamphetamine were recovered.
This case was investigated by the DEA and the Nebraska State Patrol.
Meadville Woman, 66, Indicted for Running Various Fraud SchemesRead the Press Release
PITTSBURGH - A resident of Meadville, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of Conspiracy to Commit Mail Fraud, Mail Fraud, Wire Fraud and Making a False Statement to Government, United States Attorney Cindy K. Chung announced today.
The 13-count Indictment, returned on December 7 and unsealed today, named Diana Eckert, age 66, as the sole defendant.
According to the Indictment, from May 2020 to July 2021, Eckert participated in the execution of various fraudulent schemes, including decal, romance and car buying scams, targeted at individuals across the United States.
The law provides for a maximum total sentence of not more than twenty (20) years in prison, a fine of $1,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Jeffrey R. Bengel and Karen Gal-Or are prosecuting this case on behalf of the government.
The United States Postal Inspection Service conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Maryland Man Sentenced to over 14 Years in Prison for Possession of Child PornographyRead the Press Release
SAN ANTONIO – A Maryland man was sentenced today to 170 months in prison for possession of child pornography.
According to court documents and testimony at trial, Hae Yeong Song, 29, was stationed at Joint Base San Antonio and was a private first class in the Army. Around January 2018, Song’s cell phone was searched as part of an investigation by the United States Army Criminal Investigation Command into another matter. Images and videos of child pornography were found on Song’s phone. In addition, conversations between Song and an unidentified Korean national were discovered. In those conversations, Song requested child pornography images of elementary aged children.
On July 21, 2021, U.S. District Judge David A. Ezra found Song guilty of one count of receipt of child pornography and one count of possession of child pornography. Song has remained in federal custody since his guilty verdict in July 2021.
In addition to the prison sentence, Song was ordered to pay $22,500 in restitution.
“This case involved the sexual abuse of children as young as three years old,” said U.S. Attorney Ashley C. Hoff. “Child predators inflict immeasurable harm and we will continue to work closely with our partners to deliver justice for victims.”
“The FBI is adamant about protecting children online - to include graphic images and videos of children,” said FBI Special Agent in Charge Christopher Combs. “Those who traffic in obscene material continue the abuse of that child that was captured when the file was created. The FBI will work tirelessly to prosecute these offenders that continue to traffic and possess these types of files.”
The FBI, with assistance from the U.S. Army Criminal Investigation Command, investigated the case.
Assistant U.S. Attorneys Bettina Richardson and Eric Yuen prosecuted the case.
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 U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Maryland MS-13 Member Sentenced to 20 Years in Federal Prison for Armed Robberies in Maryland and VirginiaRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Jose Guillermo Molina-Arevalo, age 27, of Kensington, Maryland, to 20 years in federal prison, followed by three years of supervised release, for federal charges in Maryland and the Eastern District of Virginia related to a series of armed commercial robberies. Judge Grimm also ordered Molina-Arevalo to pay restitution in the amount of $90,927.45. In Maryland, Molina-Arevalo is convicted of conspiracy to commit an armed commercial robbery and for committing armed commercial robbery. In the Eastern District of Virginia, Molina-Arevalo is convicted of two counts of committing commercial robberies and two counts of brandishing a firearm during and in relation to a crime of violence.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; United States Attorney for the Eastern District of Virginia Jessica D. Aber; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; Postal Inspector in Charge Daniel A. Adame of the U.S. Postal Inspection Service - Washington Division; Chief Marcus Jones of the Montgomery County Police Department; Chief Kevin Davis of the Fairfax County, Virginia Police Department; Chief Maggie A. DeBoard of the Herndon, Virginia Police Department; Montgomery County State’s Attorney John McCarthy; and Loudoun County, Virginia Commonwealth’s Attorney Buta Biberaj.
According to Molina-Arevalo’s plea agreement in the Eastern District of Virginia, he is a member of the Pinos Locos Salvatruchos (PLS) clique of La Mara Salvatrucha (MS-13), a transnational criminal street gang. Between June 6, 2017 and November 3, 2017, Molina-Arevalo and other PLS members and associates participated in a number of robberies in the Eastern District of Virginia and in Maryland. Molina-Arevalo admitted that he participated in the June 6th robbery and served as a look-out for all the of the other robberies.
On June 6, 2017, Molina-Arevalo and other PLS members and associates traveled from Maryland to Herndon, Virginia. Wearing masks and displaying firearms, Molina-Arevalo and the other robbers entered a store that also serves as a MoneyGram location in the 1100 block of Elden Street. The robbers demanded money and fled the store with a large amount of cash and security recording equipment worth about $250.
As detailed in the plea agreement, on August 18, 2017, Molina-Arevalo and other PLS members and associates robbed the same store, again wearing masks and displaying firearms. The robbers stole approximately $19,500 and the security equipment. The co-conspirators then entered a restaurant across from the store, still wearing masks and displaying firearms. They ordered the restaurant patrons and staff to the ground and kept them there for several minutes before fleeing through the restaurant’s rear exit. Molina-Arevalo remained outside in a vehicle and acted as a look-out while his co-conspirators were inside both establishments.
On September 15, 2017, Molina-Arevalo and other PLS members and associates traveled to a convenience store in Sterling, Virginia, where four of the co-conspirators entered the store brandishing firearms. Three of the co-conspirators wore masks. They stole between $3,00 and $5,000, as well as electronic devices belonging to the employees, patrons, and a deliveryman. Again, Molina-Arevalo remained outside in a vehicle and acted as a look-out while his co-conspirators were in the convenience store.
According to the Maryland plea agreement, in November 2017, Molina-Arevalo conspired with others to commit commercial robberies in Silver Spring, Maryland. Specifically, Molina-Arevalo conducted surveillance on the robbery targets before the robberies, helped to plan the robberies, knowing that at least one of his co-conspirators would be armed with a gun during the robberies, and acted as a look-out during the robberies.
As detailed in the plea agreement, Molina-Arevalo’s co-conspirators, wearing masks and armed with at least one firearm, entered a building in Silver Spring that contained Business 1 and Business 2. The co-conspirators demanded money from the employees of Business 1. One of the co-conspirators jumped over the counter of Business 1 and took more than $200 belonging to Business 1. The co-conspirators then went to Business 2, a separate business in the same building, and demanded money, but the employees refused to comply with their demands. The co-conspirators then attempted to enter the area where the cash was kept, but they were unsuccessful. The conspirators then fled with the funds from Business 1 to a waiting getaway vehicle driven by another co-conspirator.
United States Attorneys Erek L. Barron and Jessica D. Aber praised the FBI, the U.S. Postal Inspection Service; the Montgomery County Police Department, the Fairfax and Herndon, Virginia Police Departments; the Montgomery County State’s Attorney’s Office and the Loudoun County Virginia Commonwealth’s Attorney’s Office for their work in the investigation and prosecution. Mr. Barron and Ms. Aber thanked Assistant U.S. Attorneys William D. Moomau and John C. Blanchard, who prosecuted the Maryland and Eastern District of Virginia cases, respectively.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Manchester Man Pleads Guilty to Drug Trafficking and Firearms CrimesRead the Press Release
CONCORD - Quentin Simon, a/k/a "Q", 37, of Manchester, pleaded guilty on Tuesday in federal court to possession of controlled substances with intent to distribute and possession of a firearm in furtherance of a drug trafficking crime, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, in May of 2020, a cooperating individual told Manchester police detectives that Simon was selling crack, fentanyl and pills out of his apartment. After completing a series of controlled buys between the cooperator and Simon between May 5 and August 12, 2020, detectives obtained an arrest warrant for Simon and search warrant for his apartment.
On August 18, 2020, detectives arrested Simon and executed the search warrant. Throughout the apartment, detectives located items indicative of drug distribution and controlled substances. Cash totaling $79,848 was also located. Lab analysis confirmed the drugs totaled over 1,168 grams of cocaine and over 115 grams of crack cocaine. A .380 caliber handgun and ammunition were in proximity to a large container of cocaine.
Simon is scheduled to be sentenced on March 14, 2022. The cash, gun, and a large collection of sneakers were all seized and forfeited as a result of this prosecution.
“Armed drug traffickers present a serious threat to public safety in our community,” said Acting U.S. Attorney Farley. “As part of our continued partnership with the Manchester Police Department, we are working to identify and prosecute the armed drug dealers who endanger the citizens of Manchester. By prosecuting these dangerous individuals, we will reduce the risk of violent crime in the Granite State.”
This matter was investigated by the Manchester Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by Assistant U.S. Attorney Joachim H. Barth. Forfeiture aspects of this case were handled by Assistant U.S. Attorney Robert Rabuck.
This case is part of Operation Synthetic Opioid Surge (S.O.S.). In July of 2018, Attorney General Jeff Sessions announced the creation of S.O.S., which is being implemented in the District of New Hampshire and nine other federal districts. The goal of S.O.S. is to combat the large number of overdoses and deaths associated with fentanyl and other synthetic opioids. In New Hampshire, the U.S. Attorney’s Office is focusing its efforts on prosecuting synthetic opioid trafficking cases arising in Hillsborough County, which includes Manchester and Nashua.
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Man Sentenced to 45 Years in Federal Prison for Sexual Abuse of Two- and Seven-Year-Old Children to Produce Child PornographyRead the Press Release
Today, Brian Anthony Gilbert, 34, of Owings Mills, Maryland, was sentenced to a total of 540 months, or 45 years, in federal prison, followed by lifetime supervised release, for two counts of production and one count of possession of child pornography. Upon his release from prison, Gilbert is required to register as a sex offender.
“Not only did the defendant commit egregious acts of abuse against two children in his community, but he also recorded and exploited the abuse and trauma of young victims on the Dark Web,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “Today’s sentence demonstrates our commitment to protecting children from threats. I commend the professionalism of our agents and law enforcement partners in bringing Brian Gilbert to justice.”
“There are no words to adequately express how disturbing this case truly is,” said U.S. Attorney Erek L. Barron for the District of Maryland. “This sentence sends a clear message that we will bring to justice those who victimize innocent children.”
“When the most vulnerable of our citizens – our children – are victimized we will do everything in our power to hold the perpetrators accountable and to protect others from harm,” said Special Agent in Charge Thomas J. Sobocinski of the FBI’s Baltimore Field Office. “Not only did the abuser harm two innocent children, but he furthered their victimization by distributing heinous materials online. Mr. Gilbert will now spend a significant time behind bars.”
According to court documents, in August 2020, Gilbert uploaded and advertised at least two video files to an online bulletin board dedicated to child pornography hosted on the Tor network, a computer network specifically designed to facilitate anonymous communication over the internet. The videos were approximately 10 minutes and 15 minutes in length, respectively, and depicted sexual acts between Gilbert and an approximately seven-year-old female victim (Victim 1). In Gilbert’s posts to the online bulletin board, he admits to having produced both videos.
As detailed in his plea agreement, on Sept. 11, 2020, law enforcement officers executed a search warrant at Gilbert’s residence while he was present. During the execution of the search warrant, Gilbert waived his rights and informed law enforcement that he video-recorded sexual acts between himself and Victim 1 in his bedroom and at Victim 1’s residence approximately five times between January 2019 and August 2020. He also stated he recorded sexual acts between himself and another victim, who was approximately two-years old (Victim 2) at the time. Gilbert further told law enforcement that he distributed the child sexual abuse material, which he produced, on the Tor network.
During the execution of the search warrant, law enforcement seized electronic devices from Gilbert’s bedroom. A subsequent forensic analysis of Gilbert’s electronic devices revealed over 2,000 files of child pornography. Among those files were six videos of Gilbert engaging in sexual acts with Victim 1 and Victim 2 in Gilbert’s bedroom or in Victim 1’s residence. Some of the child pornography located on Gilbert’s devices included pre-pubescent children under the age of 12 as well as sadistic or masochistic conduct, including the use of instruments or tools on children, and sexual acts between adults and children.
The FBI investigated the case, with valuable assistance provided by the Prince George’s County Police Department.
Assistant U.S. Attorney Joseph R. Baldwin for the District of Maryland, and Trial Attorneys Jessica Urban and Alicia Bove of the Justice Department’s Child Exploitation and Obscenity Section (CEOS) prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Man Facing Federal Charges for Possession with Intent to Distribute Controlled Substances and Possession of Firearms in Furtherance of Drug TraffickingRead the Press Release
Baltimore, Maryland – A federal grand jury has returned an indictment charging Nathan Coakley, age 40, of Baltimore, Maryland, for possession with intent to distribute a controlled substance and possession of firearms in furtherance of drug trafficking.
The indictment was announced by United States Attorney for the District of Maryland Erek L. Barron; Acting Special Agent in Charge L.C. Cheeks, Jr of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Commissioner Michael Harrison of the Baltimore Police Department.
According to the two-count indictment, on July 6, 2021, Coakley possessed four firearms and possessed and intended to distribute 50 grams or more of methamphetamine. As stated in the indictment, Coakley possessed one assault-style rifle, a .380 caliber rifle, and two 9mm handguns. One of the two handguns was a privately made firearm without a serial number.
In addition to the four firearms, Coakley allegedly possessed 160 rounds of .380 caliber ammunition, 133 rounds of 9mm caliber ammunition, 273 rounds of 7.62 caliber ammunition, and $5,389 in cash.
If convicted, Coakley faces a maximum sentence of life in federal prison. 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.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Erek L. Barron commended the ATF and BPD for their work in the investigation. Mr. Barron thanked Special Assistant U.S. Attorney Annie McGuire and Special Assistant U.S. Attorneys James Tuomey, who are prosecuting the federal case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (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.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile.
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Malden Man Sentenced for COVID-Relief Fraud and Identity TheftRead the Press Release
BOSTON – A Malden man was sentenced today in connection with submitting fraudulent applications for Pandemic Unemployment Assistance (PUA). The federal PUA program provides unemployment-related benefits to individuals who have been impacted by COVID-19.
Wagner Sozi, 33, was sentenced by U.S. District Judge George A. O’Toole Jr.to 39 months in prison and two years of supervised release. Sozi was also ordered to pay forfeiture and restitution in the approximate amount of $110,000. On May 13, 2021, Sozi pleaded guilty to two counts of wire fraud, one count of aggravated identity theft and one count of making a false claim.
Sozi engaged in a scheme to use stolen identity information to open accounts, make purchases, rent cars and apply for PUA benefits. Sozi obtained this stolen identity information from various sources, including from a Cambridge realty company that collected the personal identifying information of people who sought to rent local apartments. Sozi lived with an individual who worked for the realty company, and various files belonging to the company were found in the apartment. Numerous identity theft victims tied to Sozi had been clients of the realty company, including at least one person in whose name a fraudulent PUA claim was filed.
Sozi, along with a female accomplice, opened store credit accounts at Massachusetts Staples locations under various fake identities and then used these accounts to purchase more than $80,000 in Visa gift cards. Sozi and his co-conspirator submitted fraudulent Staples’ store credit account applications using the personal identifying information of more than 60 victims, which Voltaire processed in exchange for $8,000 in kickbacks. In addition to the use of stolen identity information to open Staples credit accounts, Sozi used such information to purchase a Rolex for more than $15,000, withdraw $5,000 cash and rent a Dodge Charger and a Ford Mustang, both of which he failed to return.
On Oct. 26, 2021, Voltaire pleaded guilty to one count of conspiracy to commit wire fraud and is scheduled to be sentenced on Feb. 28, 2022.
Acting United States Attorney Nathaniel R. Mendell; Frederick J. Regan, Special Agent in Charge of the U.S. Secret Service, Boston Field Office; and Jonathan Mellone, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Labor Racketeering and Fraud Investigations, made the announcement today. Valuable assistance in the investigation was provided by the Commonwealth of Massachusetts, Department of Unemployment Assistance, Program Integrity Unit; the Massachusetts State Police; and the Malden, Medford and Braintree Police Departments. Assistant U.S. Attorney William Abely, Chief of Mendell’s Criminal Division prosecuted 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.
Logan Man Sentenced to Five Years in Federal Prison for Defrauding Investors in his Fraudulent Business SchemesRead the Press Release
SALT LAKE CITY- Ryan R. West, 45, of Logan, was sentenced to five years in federal prison today for defrauding numerous individuals involved in his business venture investment schemes. West previously pled guilty in August of 2021 to four counts of wire fraud connected to his fraudulent schemes. In total, West defrauded his victims of a cumulative amount of over $5.4 million between 2011 and 2016.
In addition to the five-year prison term, West was ordered to be on supervised release for three years after prison and was ordered to pay $5,420,206.98 in restitution to his victims and to forfeit $5,261,755.73 in proceeds and a 4-carat diamond.
West’s first fraudulent scheme involved soliciting investments from an individual for a business venture involved in operating a gravel quarry in West Texas. Instead of using the investor’s money for the business venture, West used the money for personal expenses, including payments on a 4-carat diamond, and unrelated business expenses, and did not return any of the victim’s money. West also borrowed money for the quarry operations against the equity in the home of an individual he met through church. Most of the money was used to pay West’s personal expenses and not for the quarry. West defaulted on the loans and the individual lost his home in foreclosure.
Another of West’s schemes involved soliciting investments in a commercial property flipping venture in North Dakota. West borrowed approximately $650,000 from several victims. Only $150,000 of $350,00 invested was ever used for the real estate venture. The rest of the money was used for other business ventures that West did not tell the investors about, or for West’s personal expenses. West sold the North Dakota property without telling his investors and netted $190,000 which he kept for himself. Only one investor was ever repaid a $350,000 investment; the others each lost $100,000.
West’s co-defendant in the fraud, Gary Alan Gygi, 57, of Holladay, also pled guilty in August and is scheduled to be sentenced on December 16, 2021.
“The United States Attorney’s Office is committed to prosecuting fraudsters who prey on vulnerable members of our community,” said Acting United States Attorney Andrea T. Martinez. “Our thoughts are with the victims of this case, some of whom were elderly, vulnerable and met West through church, business and family connections.”
“Driven by greed, Mr. West and Mr. Gygi’s criminal misconduct devastated their victims, some of whom were seniors and vulnerable adults," said Special Agent in Charge Dennis Rice of the Salt Lake City FBI. "To those who make false claims to steal people’s money, know that there are serious consequences. We also urge the public to do their due diligence when approached about investment opportunities, understanding that there are unscrupulous fraudsters who stand at the ready to separate you from your hard-earned money and property."
Assistant United States Attorneys prosecuted the cases against West and Gygi. Special Agents from the FBI conducted the investigation.
Leader in Synthetic Identity Fraud Ring Sentenced to Prison for Bank FraudRead the Press Release
RALEIGH, N.C. – A Knightdale man was sentenced to 100 months in prison, and 5 years of supervised release and ordered to make restitution in the amount of $412,885.17, on a charge of Bank Fraud and Aiding and Abetting, in violation of Title 18, United States Code, Sections 1344 and 2.
United States Attorney Michael F. Easley, Jr. stated, “Defendant Michael Griffin was the leader of an organized scheme to use stolen and synthetic identities to defraud numerous banks. As a part of his scheme, the defendant roped in and used many of his family members and clients, who are now paying the price for their involvement. This case is a cautionary tale to the public: If someone offers to get you an alternate social security number, credit profile number, (‘CPN’) so that you can open credit lines or obtain loans – they are inviting you to participate in a crime. Don’t do it. It could land you in federal prison.”
The indictment charged that defendant Michael Griffin (“Griffin”), operating from his business location in Raleigh and home in Knightdale, accepted fees from clients for alleged credit repair services. The indictment alleged that, in reality, Griffin was creating fictitious credit profiles and fraudulently altering client credit data through the use of fictitious police reports.
The indictment further charged that various defendants, many of whom were family, conspired with Griffin to defraud Synchrony Bank, a Lowe’s credit card provider, by opening credit accounts in the name of fraudulent identities, cashing out the accounts through prepaid card purchases, and then defaulting on the credit accounts. The indictment also charged various defendants with similar frauds against other banks, including Capital One and Discover.
On August 24, 2021, Griffin pled guilty to Count 14 of the Second Superseding Indictment, which charged that the defendant, in cooperation with codefendant Jasper Goodman, defrauded Synchrony Bank on a credit account in the name of Michael Jones. Count 14 further alleged that the defendant and Goodman created the identity using a stolen social security number, and that the two used the fraudulent credit account between February and November of 2018.
Although Griffin pled guilty to only one count, at the sentencing today, Griffin was held accountable under the advisory United States Sentencing Guidelines for intended losses and fraudulent gains of more than $3.4 Million. He was also ordered to make restitution for identifiable losses totaling $412,885.17.
In connection with this case, many of Michael Griffin’s codefendants were sentenced by the court earlier this year. These included Regina Griffin (Griffin’s sister), Sharon Annita Edmond (Griffin’s sister), Creshun Alexandria Griffin (Griffin’s daughter), Katina Griffin Perry (Griffin’s sister), Harvey Griffin (Griffin’s brother), Angela Griffin (Griffin’s wife), Melvin Griffin (Griffin’s brother), Jasmine Mariah Davis (Griffin’s client); Tyrone Edmonds (Griffin’s client), and Shawn Allen Farmer (Griffin’s business associate).
Codefendant Jasper Deonta Goodman will be sentenced for his role in the fraud tomorrow, December 9, 2021. Goodman previously pled guilty to Bank Fraud. The maximum punishment for Bank Fraud, a violation of Title 18, United States Code, Section 1344, is not more than 30 years imprisonment.
Michael F. Easley, Jr., the United States Attorney for the Eastern District of North Carolina made the announcement. The investigation was conducted by the Internal Revenue Service Criminal Investigation with the assistance of the United States Marshals Service and the United States Postal Inspection Service. Assistant United States Attorney William M. Gilmore represented the United States.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:20-CR-245-1D(2).
Las Vegas Man Sentenced to Prison for Stealing Credit and Debit Card Account Numbers to Purchase Show TicketsRead the Press Release
LAS VEGAS – A Las Vegas man was sentenced today to 78 months in prison for stealing credit and debit card account numbers and profile information to spend on Las Vegas Strip show tickets and gift certificates, totaling over $500,000.
According to court documents, from about October 25, 2016 to September 30, 2017, Shaun Patrick Anderson (39) stole credit and debit card account numbers and victims’ personal identifying information. He used the stolen account numbers to purchase approximately $503,842.30 in Las Vegas Strip show tickets and gift certificates.
Anderson pleaded guilty on November 1, 2019 to one count of possession of 15 or more unauthorized access devices, one count of use or trafficking of unauthorized access devices, and three counts of aggravated identity theft. In addition to the prison sentence, U.S. District Judge Andrew P. Gordon ordered Anderson to pay $503,842.30 in restitution.
During the course of the investigation in this case, law enforcement discovered nearly 1,300 files of child pornography on Anderson’s devices. In October 2021, he pleaded guilty to one count of possession of child pornography. The statutory maximum penalty that Anderson faces for the child pornography charge is 20 years in prison and a $250,000 fine. Anderson is scheduled to be sentenced by U.S. District Judge James C. Mahan in February 2022.
Acting U.S. Attorney Christopher Chiou for the District of Nevada and Special Agent in Charge Aaron C. Rouse for the FBI made the announcement.
This case was investigated by the FBI. Assistant U.S. Attorney Simon Kung prosecuted the case.
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La Crosse Man Sentenced to 72 Months for Distributing MethamphetamineRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, Acting United States Attorney for the Western District of Wisconsin, announced that Cody Stough, 33, La Crosse, Wisconsin was sentenced today by U.S. District Judge William M. Conley to 72 months in prison for distributing methamphetamine. Stough pleaded guilty to this charge on September 15, 2021.
On November 19, 2020, a confidential informant contacted the Richland-Iowa-Grant Drug Task Force and explained that Stough was willing to sell the informant a quarter pound of methamphetamine. Investigators gave the informant a recording device and prerecorded currency.
Investigators watched as the informant met with Stough in a parking lot in Dodgeville, Wisconsin. As the informant walked away, officers detained Stough, searched his vehicle, and found the prerecorded currency. The informant gave investigators a plastic sandwich bag containing a “glass crystal substance,” that weighed 77 grams. The substance tested positive for methamphetamine.
During a post-arrest interview, Stough admitted to selling methamphetamine to the informant.
The charge against Stough was the result of an investigation conducted by the Richland-Iowa-Grant Drug Task Force. Assistant U.S. Attorney Chadwick M. Elgersma prosecuted this case.
Justice Department and Department of Labor Sign Memorandum of Understanding to Protect the Employment Rights of Servicemembers and VeteransRead the Press Release
The Department of Justice’s Civil Rights Division and the Department of Labor’s Veterans’ Employment and Training Service (VETS) today signed a new Memorandum of Understanding (MOU) to enshrine the collaboration between the agencies to protect the employment rights provided to servicemembers by the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA). The Department of Labor (DOL) and the Department of Justice seek to enhance the cooperative efforts of the two agencies in the investigation, litigation and resolution of employment and reemployment related claims brought by our nations servicemembers and veterans under USERRA.
The new MOU between DOL and Department of Justice is the first between the two agencies since 2004. It updates investigative and referral protocols and procedures, updates information sharing protocols and procedures, and if preliminary investigation of a charge reveals that immediate action is needed to prevent further harm, permits VETS to expedite the referral of a USERRA claim. In those cases, VETS will provide the Department of Justice with the investigative file and preliminary determination and the Department of Justice and VETS will work collaboratively to obtain a prompt and fair resolution of the complaint.
“Servicemembers and veterans have made great sacrifices to guarantee the freedoms and liberties that all Americans enjoy,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “They are guaranteed the right to civilian employment free from discrimination based on their military service and prompt reemployment following their military deployments. Through our strong partnership with the Department of Labor’s Veterans’ Employment and Training Service we will continue to identify USERRA claims, prosecute employers who violate the law, seek relief for victims and fight to eliminate discrimination based on military service from the workplace.”
“The Department of Labor’s Veterans Employment and Training Service has worked collaboratively with the Department of Justice’s Civil Rights Division for a long time to protect service members’ and veterans’ employment and reemployment rights under USERRA,” said Principal Deputy Assistant Secretary James Rodriguez for Policy for Veterans’ Employment and Training Service. “This Memorandum of Understanding further cements our long-standing relationship with the Department of Justice to ensure that service members, veterans and employers fully understand their respective rights and obligations under the law. Together, we will continue to act swiftly if and when those rights are compromised to make them whole.”
USERRA entitles servicemembers to return to their civilian employment upon completion of their military service with the seniority, status and rate of pay that they would have obtained had they remained continuously employed by their civilian employer. USERRA also prohibits discrimination based on present, past and future military service. The Attorney General has authority to bring lawsuits against private, state and local government employers for violations of USERRA only upon receiving complaint referrals from VETS. Prior to referral, VETS investigates and attempts to resolve servicemember complaints. If the Attorney General is reasonably satisfied that the servicemember is entitled to relief, the Attorney General may commence an action in federal court on behalf of the servicemember. Since the Civil Rights Division assumed USERRA enforcement authority in 2004, it has filed 105 lawsuits and favorably resolved 193 complaints through consent decrees or private settlements.
The Department of Justice gives high priority to the enforcement of servicemembers’ rights under USERRA. The MOU and additional information about USERRA can be found on the Justice Department’s websites at www.justice.gov/crt-military/employment-rights-userra and www.justice.gov/servicemembers as well as on the Department of Labor’s (DOL) website at www.dol.gov/vets/programs/userra.
Justice Department Solicits Public Comments on Possible Regulatory Modifications to Foreign Agents Registration ActRead the Press Release
The Department of Justice is issuing an Advanced Notice of Proposed Rulemaking (ANPRM) in the Federal Register to seek public comment to help inform the Department’s decision-making prior to its issuance of a Notice of Proposed Rulemaking (NPRM). Through this process, the Department is seeking preliminary input from the public on the regulations as a whole and in response to 19 specific questions set forth in the ANPRM.
FARA requires persons in the United States who are acting as agents of foreign principals and engaged in certain specified activities to make periodic public disclosures of their relationship with the foreign principal, as well as activities, receipts and disbursements in support of those activities. Disclosure of the required information facilitates evaluation by the government and the American people of the activities of such persons in light of their function as foreign agents. The act gives the Attorney General the authority to issue regulations, which were last amended in 2007.
“The effective and efficient enforcement of FARA is critical to facilitate transparency about foreign influence efforts and to support our democracy,” Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “We are pleased to begin the rulemaking process by soliciting input from the wide array of stakeholders in FARA, including public interest groups that rely on disclosures under FARA to support their mission.”
The Department is considering changes to key regulations, including those relating to the scope of agency; the commercial exemption; and exemptions for persons qualified to practice law as well as for those engaged only in religious, scholastic or scientific pursuits. The Department is also considering changes that would modernize its regulations relating to labeling informational materials in light of the significant technological changes that have occurred since the regulations were last amended more than a decade ago. Modernization of FARA’s implementing regulations will further facilitate the Department’s focus on FARA enforcement to ensure transparency in U.S. democratic processes.
The Department welcomes comments from attorneys practicing law in this area, public interest and transparency groups, and anyone else with an interest in the proper administration and enforcement of FARA’s disclosure and labeling requirements.
Please note: The text of the ANPRM, as signed by the Assistant Attorney General for National Security, has been posted to FARA.gov, but the official version of the ANPRM will be as it is published in the Federal Register.
Justice Department Finds State of Iowa Unnecessarily Segregates People with Intellectual/Developmental Disabilities in State Resource CentersRead the Press Release
The U.S. Department of Justice’s Civil Rights Division announced today that it has concluded an investigation into whether the State of Iowa subjects residents of Glenwood and Woodward Resource Centers, two state-run institutions for individuals with intellectual/developmental disabilities (IDD) in Glenwood and Woodward, Iowa, respectively, to unnecessary institutionalization in violation of Title II of the Americans with Disabilities Act (ADA).
The Justice Department determined that there is reasonable cause to believe Iowa fails to provide services to residents of the Resource Centers, or those at serious risk of institutionalization, in the most integrated setting appropriate to their needs. Iowa’s system of care for people with IDD is heavily biased toward institutions. Critical services and support that would allow Resource Center residents to live in their own homes and communities, such as behavioral, crisis and physical health supports, are often unavailable outside the Resource Centers. Iowa also fails to provide Resource Center residents and their guardians with sufficient information about community options. Consequently, many Resource Center residents who could receive, and do not oppose the receipt of, services in the community are needlessly segregated in institutions.
“People with disabilities should not be unlawfully isolated and unreasonably denied access to the community-based services they need,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “The Civil Rights Division will actively defend the rights of individuals with disabilities to participate fully in community life.”
The department’s investigation was conducted under the Civil Rights of Institutionalized Persons Act (CRIPA) and Title II of the ADA. Consistent with CRIPA’s statutory requirements and Title II’s regulations, the department provided the state with a written notice setting out the department’s conclusions and the supporting facts. The department also notified the state of the minimum remedial measures necessary to address the alleged violations.
The department’s investigation involved extensive review and analysis of documents; interviews of staff and management at the Resource Centers, Iowa’s Department of Human Services, and stakeholders; and observation of support planning meetings. The department also conducted tours of Glenwood Resource Center (Glenwood).
Today’s announcement concludes the second, and final, phase of the department’s investigation. The department initiated the investigation in November 2019. The first phase was conducted by the Civil Rights Division and the Office of the U.S. Attorney for the Southern District of Iowa and focused on conditions at Glenwood. On Dec. 22, 2020, the department notified the State that the department had reasonable cause to believe that these conditions violate the federal rights of the people living there and that these violations are pursuant to a pattern or practice of resistance to the full enjoyment of rights protected by the Fourteenth Amendment to the United States Constitution.
Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt.
Justice Department Awards More Than $17.5 Million to Support Project Safe NeighborhoodsRead the Press Release
PROVIDENCE – The Department of Justice announced today that it has awarded more than $17.5 million in grants to support the Project Safe Neighborhoods (PSN) Program. Funding will support efforts across the country to address violent crime, including the gun violence that is often at its core. The Rhode Island Department of Public Safety has been awarded funding totaling $84,102 in this most recent round of grants, bringing the total of Justice Department funds channeled to Rhode Island this year to nearly three million dollars.
The Bureau of Justice Assistance, part of the department’s Office of Justice Programs (OJP), will administer the 88 grant awards, which are being made to designated fiscal agents to support local PSN projects that work in partnership with U.S. Attorneys’ Offices.
“This latest Project Safe Neighborhoods grant is critical to addressing the violent crime threatening cities and towns all across our country,” said Deputy Attorney General Lisa O. Monaco. “Ensuring the safety of all Americans is the highest priority for the Department of Justice, but when it comes to violent crime, there is not a one-size-fits-all solution. We have to work closely with local public safety agencies as well as community organizations to craft individual strategies unique to each community’s needs. Programs like Project Safe Neighborhoods and the funding it provides allow us to do just that.”
“In the past year our Project Safe Neighborhoods law enforcement and community partners in Rhode Island have received more than $2.75 million dollars in Justice Department grants,” noted Acting United States Attorney Richard B. Myrus. “I am grateful for all of the hard work, innovative ideas, and constant collaboration of our PSN partners, and their partnership in this Department’s innovative, intelligence-driven efforts to identify the most pressing violent crime problems in our communities and develop well rounded, comprehensive solutions.”
“Investing in our communities, supporting victims and building a justice system that both keeps people safe and earns their trust – these are mutually reinforcing goals that stand at the heart of Project Safe Neighborhoods,” said Principal Deputy Assistant Attorney General Amy L. Solomon for OJP. “The Office of Justice Programs is pleased to join with our U.S. Attorneys’ Offices, and with jurisdictions across the country, as we work together to meet the challenges of crime and violence and achieve our shared aspirations of public safety and community trust.”
In May 2021, Attorney General Merrick B. Garland announced a new effort to reduce violent crime, including the gun violence that is often at its core. Integral to that effort was the reinvigoration of PSN, a two-decade old evidence-based and community-oriented program focused on reducing violent crime. The updated PSN approach, outlined in the department’s Comprehensive Strategy for Reducing Violent Crime issued by Deputy Attorney General Monaco, is guided by four key principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence, setting focused and strategic enforcement priorities and measuring the results of our efforts. The fundamental goal is to reduce violent crime, not simply to increase the number of arrests or prosecutions.
This fall, U.S. Attorney’s Offices across the country have enhanced their violent crime reduction efforts to ensure alignment with the department’s comprehensive violent crime reduction strategy. U.S. Attorneys’ Offices have engaged in outreach to law enforcement and other agencies and organizations serving communities to identify the most significant drivers of violence in their districts. Working together with a broad coalition of stakeholders, the U.S. Attorneys’ Offices are addressing the most pressing violent crime issues in their district to make our neighborhoods safer for all.
PSN programs are led by U.S. Attorneys’ Offices in collaboration with local public safety agencies, community stakeholders and other agencies and organizations that work to reduce violent crime.
Click here for more information about the U.S. Attorney’s Office led Project Safe Neighborhoods program in Rhode Island.
The Office of Justice Programs provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, advance racial equity in the administration of justice, assist victims and enhance the rule of law. More information about OJP and its components can be found at www.ojp.gov.
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Judge sentences former St. Louis resident for possession of child pornographyRead the Press Release
ST. LOUIS – Mark R. Driscoll of Hayden, Idaho appeared before United States District Court Judge Sarah E. Pitlyk on today’s date. Driscoll pleaded guilty and was sentenced to 60 months in federal prison to be followed by a lifetime of supervised release for possession of child pornography. Driscoll was previously indicted by a federal grand jury on March 3, 2021.
According to the plea agreement, on or about March 4, 2017, Driscoll, utilizing a peer-to-peer program, distributed at least one video file containing child pornography to an investigative detective with the St. Louis Metropolitan Police Department.
A search warrant was obtained by law enforcement for Driscoll’s residence and executed on June 22, 2017. Electronic items belonging to the Driscoll were seized into evidence. An examination of the seized items revealed Driscoll possessed on various electronics over fourteen hundred images and over twenty videos of minors engaged in a lascivious display of their genitals and/or engaged in sexual acts which he had downloaded from the internet via computers and electronic devices.
This case was investigated by an FBI St. Louis Child Exploitation and Human Trafficking Task Force member from the St. Louis Metropolitan Police Department.
Iowa Man Pleads Guilty to Selling Misbranded Vitamin B12 InjectablesRead the Press Release
An Iowa man pleaded guilty today to a felony charge related to the sale of misbranded vitamin B12 injectable drugs, the Department of Justice announced.
Brady Tomlinson, 46, of Des Moines, pleaded guilty in the U.S. District Court for the Southern District of Iowa to one count of introducing a misbranded drug into interstate commerce with the intent to defraud or mislead. According to court documents, Tomlinson sold injectable vitamin B12 solutions online beginning in May 2015. Tomlinson marketed the injections as weight loss drugs. According to court documents, the U.S. Food and Drug Administration (FDA) informed Tomlinson during a December 2016 inspection that dispensing the drugs without valid prescriptions violated the Federal Food, Drug, and Cosmetic Act (FDCA). Tomlinson closed his business for a week following the inspection, but then created a new website and continued selling the same kinds of misbranded B12 injections from December 2016 until April 2019.
“Dispensing drugs such as these without a prescription or the involvement of a medical professional endangers consumers and violates the law,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The department will continue to work hand-in-hand with the FDA to investigate and prosecute the illegal dispensing of prescription drugs.”
“Selling prescription drugs online – with no medical supervision – can cause serious harm and put consumers’ health at risk,” said Special Agent in Charge Charles L. Grinstead of the FDA Office of Criminal Investigations Kansas City Field Office. “We will continue to pursue and bring to justice those who jeopardize U.S. consumers’ health and safety.”
U.S. Magistrate Judge Stephen H. Locher set sentencing for Tomlinson for April 15, 2022.
The FDA’s Office of Criminal Investigations investigated the case.
Assistant U.S. Attorney Adam J. Kerndt of the Southern District of Iowa and Trial Attorneys Ross Goldstein and Marcus P. Smith of the Civil Division’s Consumer Protection Branch prosecuted the case.
Iowa City Felon Who Threw Crack and Loaded Gun from Car Sentenced to over 15 Years in Federal PrisonRead the Press Release
A man who threw a loaded handgun and crack cocaine from a car while being pulled over by police was sentenced today to more than 15 years in federal prison.
Donte Kent, age 33, from Iowa City, Iowa, received the prison term after a May 7, 2021 guilty plea to one count of possession with intent to distribute a controlled substance after a prior felony drug conviction and one count of being a felon in possession of a firearm.
In a plea agreement Kent admitted that on June 27, 2020, he was the passenger in a car involved in a traffic stop in Linn County, Iowa. When the officer activated lights to initiate the traffic stop, Kent began throwing items, including a loaded Ruger 9mm pistol, out of the passenger side window. Kent also threw a bag containing 28 individually wrapped quantities of crack cocaine and a scale. Kent had prior convictions for four domestic abuse assaults, a felony crack cocaine distribution, and another conviction for being a felon in possession of a firearm.
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.
Kent was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Kent was sentenced to 188 total months’ imprisonment, with 188 months for the drug crime and 120 concurrent months for the firearm crime. He must also serve a six-year term of supervised release after the prison term. There is no parole in the federal system.
Kent 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 was investigated by the Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Linn County Sheriff's Office; the Cedar Rapids Police Department; the Marion Police Department; and the Iowa Division of Narcotics Enforcement and prosecuted by Assistant United States Attorneys Jacob Schunk and Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-CR-00013‑CJW‑MAR.
Follow us on Twitter @USAO_NDIA.
Inmate and Visitor Plead Guilty to Introducing Buprenorphine at USP LeeRead the Press Release
ABINGDON, Va. – An inmate at United States Penitentiary (USP) Lee in Jonesville, Virginia and his visitor pleaded guilty this week for their roles in introducing Buprenorphine into the prison.
Deborah Townsend, 36, of Jonesborough, Tennessee, pleaded guilty to knowingly and intentionally distributing, and possessing with the intent to distribute, Buprenorphine, a Schedule III narcotic.
Co-defendant Michael Selvidge, 37, an inmate at USP Lee, pleaded guilty to possession of a prohibited object (Buprenorphine), possession with the intent to distribute Buprenorphine, and conspiracy to provide an inmate a prohibited object.
United States Attorney Christopher R. Kavanaugh announced the guilty pleas today.
The investigation of the case was conducted by the Federal Bureau of Prisons.
Special Assistant United States Attorney Debbie Stevens prosecuted the case for the United States.
Guatemalan man who was extradited to Ohio sentenced to 140 months in prison for Colombia-to-United States cocaine conspiracyRead the Press Release
COLUMBUS, Ohio – A Guatemalan man was sentenced in federal court here for distributing at least five kilograms or more of cocaine on the high seas.
In March 2020, Jose Luis DeLeon-Baltazar, 40, was sentenced to 140 months in prison. He was extradited to Columbus from Bogota, Colombia. DeLeon-Baltazar is the second defendant to be extradited to the United States in this case.
DeLeon-Baltazar conspired with others to ship hundreds of kilograms of cocaine from Colombia, via sea and land, through Central America and Mexico to the United States.
DeLeon-Baltazar, also known as “Enano,” was indicted in September 2018.
According to court documents, as part of the conspiracy individuals would use “load” coordinators to assist with logistics of cocaine shipments, locate drivers and boat operators for narcotic-laden vehicles and vessels, and secure shared investments from multiple co-conspirators in specific cocaine shipments. Fishermen and other commercial maritime laborers were allegedly recruited by conspirators to transport cocaine and refueling vessels.
Conspirators paid a “tax” or “fee” to send cocaine through areas controlled by a different drug trafficking organization or cartel.
Members of the conspiracy shared information on the activities and locations of law enforcement and military personnel assigned to interdict narcotics shipments. Co-conspirators also sheltered individuals who were at risk of extradition to other countries.
Low-level co-conspirators would take responsibility for an entire load of seized cocaine to free higher-level members.
DeLeon-Baltazar received multi-kilogram quantities of cocaine transported on go-fast speed boats from Colombia into Guatemala. Once the cocaine arrived in Guatemala, DeLeon-Baltazar hid the cocaine in buildings in Tecun Uman, Guatemala until the cocaine was transported across Guatemala’s northern border into Mexico. On May 19, 2016, the U.S. Coast Guard intercepted a go-fast boat that contained 880 kilograms of cocaine approximately 400 miles south of the Guatemala- Mexico border. That shipment was to be received by DeLeon-Baltazar in Guatemala where he would store it until it was to be transported to Mexico.
Additional cocaine shipments seized in this case thus far include:
- 720 kilograms of cocaine seized by the United States Coast Guard northwest of the Galapagos Islands on Aug. 18, 2017; and
- 34 kilograms of cocaine seized by the Guatemalan Policia National Civil in San Marcos, Guatemala on or about Nov. 26, 2017.
Four defendants were transported to Ohio for prosecution in September 2017, following the 720 kilogram seizure near the Galapagos Islands. That seizure alone included more than 1,584 pounds of cocaine, equaling an approximate street value of $25 million. In total, six defendants have now been convicted in the Southern District of Ohio.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Keith Martin, Special Agent in Charge, Drug Enforcement Administration (DEA); and Ohio State Highway Patrol Superintendent Col. Richard S. Fambro announced the sentence imposed on Dec. 7 by U.S. District Judge Michael H. Watson. Elizabeth R. Rabe, now a Trial Attorney at the Department of Justice’s Money Laundering Asset Recovery Section and Assistant United States Attorney Kelly A. Norris represented the United States in this case. The case was charged and prosecuted as part of OCDETF, the Organized Crime Drug Enforcement Task Force. The Justice Department’s Office of International Affairs provided significant assistance in securing DeLeon-Baltazar’s extradition from Colombia.
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Greene County Man Pleads Guilty to Tax Evasion ConspiracyRead the Press Release
ALBANY, NEW YORK – Joseph D. Radcliffe, age 74, of Elka Park, New York, pled guilty today to conspiring with others to evade taxes on personal income earned from stock sales.
The announcement was made by United States Attorney Carla B. Freedman and Thomas Fattorusso, Special Agent in Charge, New York Field Office, Internal Revenue Service – Criminal Investigation (“IRS-CI”).
Radcliffe, a former Wall Street stockbroker, admitted that from at least 2013 through 2019, he conspired with two family members to receive hundreds of thousands of dollars that went unreported to the IRS, allowing him to defraud the IRS and evade the assessment and payment of taxes on approximately $500,000 in unreported income.
The unreported income originated from capital gains earned in brokerage accounts standing in the names of Crackerjack Classics LLC and Universal Consulting LLC. These companies made payments to Radcliffe, and for his benefit, including the following:
- $128,147 in mortgage payments and interest that the companies paid, from 2014 through 2019, to the bank that held the mortgage on Radcliffe’s house in Elka Park;
- $109,022 that the companies paid to a New Jersey law firm, in 2014, 2015 and 2017, to settle Radcliffe’s unpaid bills; and
- $99,675 that the companies paid, in 2015 and 2016, in checks made out to “Cash” and which Radcliffe negotiated for himself or had others negotiate for his benefit.
Radcliffe further admitted that he did not file a tax return for himself, or otherwise report his income to the IRS, for the tax years 2013 through 2019. He did not maintain any bank or brokerage accounts in his name, and he did not hold or trade any securities in his own name.
Radcliffe faces up to 5 years in prison, and a maximum $250,000 fine, when Chief U.S. District Judge Glenn T. Suddaby sentences him on April 28, 2022. He will also be ordered to pay restitution to the IRS. 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.
This case was investigated by IRS-CI and is being prosecuted by Assistant U.S. Attorney Michael Barnett.
Grand Rapids Dentist Surrenders DEA Registration and Agrees to Pay $200,000 for Allegedly Forging and Issuing Illegitimate Narcotic PrescriptionsRead the Press Release
GRAND RAPIDS – Joseph H. Kirkwood, D.D.S., a Grand Rapids dentist, has agreed to pay $200,000 to resolve allegations that he violated the Controlled Substances Act by forging and issuing illegitimate prescriptions for narcotics. As part of the settlement, Dr. Kirkwood also surrendered his Drug Enforcement Administration (“DEA”) registration that enabled him to write prescriptions for controlled substances, and he agreed not to reapply for a new registration for four years.
This settlement resolves allegations that Dr. Kirkwood wrote illegitimate prescriptions for controlled substances for other individuals and then collected the drugs for his own personal use. It also resolves allegations that Dr. Kirkwood forged controlled substance prescriptions using the signatures and DEA registration numbers of two other dentists, also for the purpose of collecting these drugs for himself.
“This resolution demonstrates that my office takes seriously all allegations that a healthcare provider evaded safeguards in the law by forging prescriptions and issuing illegitimate prescriptions, including when the allegation is that the drugs were for their own use,” said U.S. Attorney Andrew B. Birge.
“Medical and dental professionals must not abuse the privilege of prescribing controlled substances,” said DEA Special Agent in Charge Keith Martin, Detroit Field Division. “DEA will continue to work with all levels of law enforcement to investigate allegations of unlawful prescribing.”
This case was investigated by the DEA and the U.S. Attorney’s Office for the Western District of Michigan. Assistant U.S. Attorney Andrew J. Hull represented the United States.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
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Giovanni Joseph Sentenced for Stolen Mail Bank Fraud SchemeRead the Press Release
The Acting United States Attorney for the District of Vermont announced that Giovanni Joseph, 34, formerly of Dix Hills, New York, was sentenced today in United States District Court in Rutland to time served following his guilty plea to one count of bank fraud. Chief U.S. District Judge Geoffrey W. Crawford also ordered Joseph to pay a total of $2,590 in restitution to three banks which sustained losses as a result of the bank fraud scheme Joseph executed. Joseph had been detained in federal custody since his arraignment in this case on October 6, 2021. Following his federal sentencing, he will be returned to the custody of Pennsylvania authorities to complete a state sentence for an unrelated narcotics offense.
According to court records, Joseph presented stolen checks at five banks around central Vermont in March of 2020. The checks had been stolen from U.S. Postal Service mail collection boxes in Montpelier, East Montpelier, and Wilmington. On four occasions, the stolen checks had been modified to change the original payee’s name to Joseph’s name. Attempting to cash the fifth stolen check, Joseph presented a forged identification document to impersonate the check’s legitimate payee.
The United States Postal Inspection Service investigated this case.
Joseph is represented by Assistant Federal Public Defenders David L. McColgin and Sara M. Puls. The prosecutor is Assistant U.S. Attorney Spencer Willig.
Fort Wayne Man Sentenced to 15 Years in PrisonRead the Press Release
FORT WAYNE – Larson Wuest, 30 years old, of Fort Wayne, Indiana, was sentenced by United States District Court Judge Holly A. Brady after pleading guilty to production of child pornography, announced United States Attorney Clifford D. Johnson.
Wuest was sentenced to 180 months in prison followed by 5 years of supervised release.
According to documents in this case, in February of 2019, Wuest began chatting with an FBI Online Covert Employee (OCE) using various social media platforms. During their communications, Wuest sent nude photographs of a twelve-year-old girl to the OCE. The investigation later revealed that Wuest previously met this girl on another social media platform and had persuaded and enticed her to take the photographs and send them to him.
This case was investigated by the Federal Bureau of Investigation with the assistance of the Fort Wayne Police Department. The case was prosecuted by Assistant United States Attorney Lesley J. Miller Lowery.
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Former West Plains School Employee Sentenced to 17 Years for Sexually Exploiting Children, Distributing Child PornographyRead the Press Release
SPRINGFIELD, Mo. – A former employee of the West Plains, Missouri, R-7 School District was sentenced in federal court today with soliciting children to send him sexually explicit photos and videos through Snapchat and Instagram.
Cody Ashton Ary, 31, of West Plains, was sentenced by U.S. Chief District Judge Beth Phillips to 17 years in federal prison without parole. The court also ordered Ary to pay $6,000 in restitution.
Ary was employed at the time of the offense with the West Plains R-7 School District as a paraprofessional who commonly assisted with special need students. He was a site director for the Boys and Girls Town Club.
Ary, who has been in federal custody since his arrest on May 20, 2020, pleaded guilty on March 23, 2021, to one count of the sexual exploitation of a child and one count of receiving and distributing child pornography.
According to court documents, Instagram initiated a CyberTip with the National Center for Missing and Exploited Children on Dec. 3, 2019, after Ary uploaded a sexually explicit video of an 8-to-10-year-old boy to his account. Investigators found a total of 92 chat conversations between Ary and other Instagram users. Ary used the screen name “15anime_boy” and identified himself as a 15-year-old male to other users. He solicited sexually explicit videos and images from other users who identified to be minor males. Ary received dozens of images and videos of child pornography through his Instagram account. Ary asked the child victims to send him videos and images of them stripping in exchange for Ary providing Internet links to folders that contained child pornography.
An FBI task force officer in Buffalo, New York, was investigating a separate case in October 2019 in which Ary used a different Snapchat account to solicit and receive child pornography from other users reporting to be minors.
Law enforcement officers executed a search warrant at Ary’s residence on May 20, 2020, where he was arrested. Ary admitted to investigators that he searched for minor males on Instagram and asked them for videos and images of themselves nude. Ary stated he would receive images and videos from the users, which depicted minor males engaged in sexually explicit conduct. Ary also admitted that he also used Snapchat, chat-avenue, and other internet mediums to distribute links to child pornography folders and to contact minor males. Investigators found images of child pornography on Ary’s cell phone.
This case was prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the West Plains, Mo., Police Department, the Southwest Missouri Cyber Crime Task Force, and Homeland Security Investigations.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former Mexican police officer gets 30 years for sexually exploiting childRead the Press Release
BROWNSVILLE, Texas – A 38-year-old resident of Matamoros, Tamaulipas, Mexico, has been ordered to federal prison for producing child pornography, announced Acting U.S. Attorney Jennifer B. Lowery.
Jose Alfredo Fernandez-Martinez pleaded guilty Aug. 4.
Today, U.S. District Judge Rolando Olvera Jr. ordered him to serve a 360-month sentence. At the hearing, the court heard additional information including the victim impact statement from the victim’s mother. Following the sentence, Fernandez-Martinez will serve 10 years on supervised release, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. Fernandez-Martinez will also be ordered to register as a sex offender and must pay a total of $55,000 in special assessments.
From on our about Aug. 2, 2020, to Jan. 6, 2021, Fernandez-Martinez caused an eight-year-old female to engage in sexually-explicit conduct. He recorded it with his cellphone.
Fernandez-Martinez attempted to enter the country, at which time authorities found the videos. A forensic examination of the phone determined he possessed approximately 141 videos and 82 images of child pornography. Fernandez-Martinez created five of the videos with the phone.
Fernandez-Martinez has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations - Rio Grande Valley Child Exploitation Task Force conducted the investigation.
Assistant U.S. Attorney Ana C. Cano prosecuted the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
Former Finance Executive Sentenced to 138 Months in Prison for Orchestrating Massive Market Manipulation SchemeRead the Press Release
Earlier today, in federal court in Brooklyn, Abraxas J. Discala, also known as “AJ Discala,” the former Chief Executive Officer of OmniView Capital Advisors LLC (“OmniView”), was sentenced by United States District Judge Eric N. Vitaliano to 138 months’ imprisonment for orchestrating a multi-million dollar market manipulation scheme. The Court also ordered Discala to pay $2,484,873 in forfeiture. The amount of restitution will be determined by the Court at a later date. Discala was convicted by a federal jury in May 2018 following a five-week trial of two counts of securities and wire fraud conspiracy, two counts of securities fraud, and four counts of wire fraud relating to his manipulation of stocks of multiple microcap or “penny” stocks, including the stock of CodeSmart Holding, Inc. (“CodeSmart”), Cubed, Inc. (“Cubed”), and others, (collectively the “Manipulated Public Companies”).
Breon Peace, United States Attorney for the Eastern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentence.
“Discala conspired to manipulate trading activity in penny stocks in furtherance of a scheme to defraud the securities market and investing public of millions of dollars,” stated United States Attorney Peace. “With today’s sentence, Discala has been held accountable for his crimes and the harm he caused to investors.” Mr. Peace thanked the Federal Bureau of Investigation, New York Field Office, and the United States Securities and Exchange Commission, New York Regional Office, for their invaluable efforts in the case.
Discala purported to raise capital for start-up private companies and offered to take them public through reverse mergers with public shell companies in exchange for obtaining control of a large portion of the free trading or unrestricted stock. Discala and his co-conspirators, including co-defendants Ira Shapiro, Marc Wexler, Matthew Bell, Craig Josephberg, Victor Azrak, Darren Goodrich, Darren Ofsink and Michael Morris, then artificially inflated the stock through manipulative trading and promotional campaigns, generating large profits for themselves at the expense of unwitting investors.
As part of the fraud, Discala orchestrated a scheme to manipulate the stock price of CodeSmart and Cubed, two of the Manipulated Public Companies.
The CodeSmart Scheme
In early May 2013, Discala and his co-conspirators, including attorney Ofsink, engineered a reverse merger of CodeSmart, a private company, with a shell public company. After gaining control of CodeSmart’s unrestricted shares, Discala and his co-conspirators fraudulently inflated CodeSmart’s share price and trading volume on two occasions and then sold the unrestricted CodeSmart stock at a profit when the share price reached desirable levels. Shapiro, the Chief Executive Officer of CodeSmart, issued numerous press releases with false information to facilitate inflating CodeSmart’s stock price.
Discala and his co-conspirators, including Wexler, profited by selling CodeSmart stock, issued to them for pennies, to clients and customers of Bell, an investment advisor, and Josephberg, a registered broker. On some occasions, the CodeSmart shares were sold to Bell’s clients and Josephberg’s customers without their clients’ and customers’ knowledge and consent. Additionally, Bell and Josephberg sold CodeSmart shares in their personal trading accounts at the same time that they purchased CodeSmart stock in their clients’ and customers’ accounts.
Discala, Wexler, Bell, Josephberg, Ofsink and Morris made more than $6 million in illicit trading profits from the CodeSmart scheme, and the co-conspirators caused more than $12 million in losses to approximately 800 CodeSmart investors who purchased the publicly traded stock.
The Cubed Scheme
In March 2014, Discala and his co-conspirators took Cubed public through an asset purchase agreement by a shell public company. After gaining control of all of Cubed’s unrestricted shares, between April 22, 2014 and April 30, 2014, Discala and his co-defendants, including Wexler, Bell, Josephberg, Goodrich and Azrak, concocted trading volume in the stock and were able to successfully control the price and volume of Cubed’s stock. On June 23, 2014, Cubed reached its highest closing price of $6.75 per share, resulting in a market capitalization of approximately $200 million. Investors who bought publicly traded Cubed stock lost over $400,000. In addition, Cubed was able to raise over $2 million in a private offering of stock to investors who were deceived by how Cubed stock was performing in the market. Discala and Wexler also made over $1 million worth of illegal private sales of Cubed stock to over three dozen investors. Discala and his co-conspirators caused more than $4 million in total losses to approximately 100 Cubed investors.
Goodrich, a broker who participated in the scheme to manipulate the stock of Cubed, was previously sentenced to 41-months after pleading guilty to securities fraud conspiracy. Shapiro, Wexler, Bell, Josephberg, Azrak, Ofsink and Morris also pleaded guilty and are awaiting sentencing.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Shannon C. Jones and Patrick T. Hein are in charge of the prosecution. Assistant United States Attorney Claire Kedeshian of the Office’s Asset Recovery Section is handling forfeiture matters.
The Defendant:
ABRAXAS J. DISCALA (also known as “AJ Discala”)
Age: 50
Darien, ConnecticutE.D.N.Y. Docket No. 14-CR-399 (S-1)(ENV)
Florida Woman Sentenced in Multi-Million Dollar Medicare Fraud SchemeRead the Press Release
BOSTON – A Florida woman was sentenced today in connection with a multi-million-dollar Medicare fraud scheme.
Talia Alexandre, 30, of Palm Springs, Fla., was sentenced by U.S. Senior District Court Judge George A. O’Toole Jr. to three years of supervised release with the first year spent in home detention. Alexandre was also ordered to pay a fine of $5,000 and restitution in the amount of $1.47 million. On Feb. 24, 2021, Alexandre pleaded guilty to one count of receiving kickbacks in connection with a federal health care program.
Alexandre and co-conspirator Nathan LaParl sold Medicare patients’ personal and medical data to Juan Camilo Perez Buitrago. Alexandre and LaParl worked with foreign call centers to contact Medicare patients to ask if they were interested in durable medical equipment (DME) such as arm, back, knee and shoulder braces “at little to no cost.” The call centers collected demographic and insurance information from Medicare patients, which Alexandre and LaParl sold to Perez Buitrago. Alexandre received more than $1.4 million from Perez Buitrago for the patient data. Perez Buitrago used that patient data to submit more than $109 million in false and fraudulent claims, submitting claims for DME that was not prescribed, not necessary, and, in many instances, never requested or received.
Acting United States Attorney Nathaniel R. Mendell; Johnnie Sharp Jr., Special Agent in Charge of the Federal Bureau of Investigation, Birmingham Field Division; Phillip M. Coyne, Special Agent in Charge of the Department of Health and Human Services, Office of the Inspector General, Boston Division; and Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service made the announcement. Assistant U.S. Attorney Elysa Q. Wan of Mendell’s Health Care Fraud Unit prosecuted the case.
Essex Man Sentenced to Four Years in Federal Prison for His Role in a Bank Fraud ConspiracyRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Babatunde Ajibawo, age 55, of Essex, United Kingdom to four years in federal prison, followed by four years of supervised release, for conspiracy to commit bank fraud. Judge Blake has also ordered Ajibawo to pay $262,653.87 in restitution.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; and Special Agent in Charge Andrew McKay of the Treasury Inspector General for Tax Administration.
According to his plea agreement, from February 2017 to February 2020, Ajibawo, Oyekanmi Oworu, age 35, of Hyattsville, Maryland and others conspired to fraudulently obtain checks made out to legitimate businesses, then fraudulently register shell companies to obtain state business certificates in the identical or similar name of the legitimate businesses to which the checks were made payable. The conspiracy also used the Internal Revenue Service’s (IRS) Modernized Internet Employer Identification Number (EIN) and the fraudulently obtained social security numbers of real individuals to obtain an EIN for the fraudulent business.
In the effort to defraud, Ajibawo personally opened fraudulent bank accounts, deposited stolen checks into the fraudulent accounts, and withdrew the stolen funds on numerous occasions.
Specifically, in October 2018 Ajibawo opened a fraudulent account in the name of a real business, Business 1, using the identifying information of a real person, C.B. After opening the account, Ajibawo deposited a stolen check made payable to Business 1 in the amount of $18,150.66 into the fraudulent account.
Additionally, from November 2018 to April 2019, Ajibawo opened and accessed a fraudulent account in the name of another real business, Business 2, using the identifying information of a real person, B.R. After opening the account, Ajibawo deposited a stolen check made payable to Business 2 in the amount of $168,500. Surveillance footage captured Ajibawo opening and accessing the fraudulent account on numerous occasions.
Throughout the scheme to defraud, Ajibawo sent personally identifying information of victims to co-conspirators, directed that co-conspirators withdraw money from fraudulent accounts in which stolen checks had been deposited, and facilitated the distribution of stolen funds obtained from the scheme.
Additionally, in an effort to conceal their criminal activity and evade detection from law enforcement, Ajibawo and his co-conspirators attempted to relocate the fraud scheme to other jurisdictions. A substantial part of a fraudulent scheme was committed from outside the United States, specifically Nigeria.
Further, Ajibawo and his co-conspirators attempted to conceal their criminal actions and evade law enforcement by relocating the fraud scheme to other jurisdictions. A substantial part of a fraudulent scheme was committed from outside the United States, specifically Nigeria.
In total, Ajibawo and his co-conspirators created 50 fraudulent shell entities, caused an actual loss of at least $606,598.08, and compromised the identifying information of more than 50 individual victims.
Co-defendant Oyekanmi Oworu pled guilty to conspiracy to commit bank fraud and aggravated identity theft on December 2, 2021. Oworu faces a maximum sentence of 30 years in prison followed by up to five of supervised release for conspiracy to commit bank fraud and a mandatory two years in prison, consecutive to any other sentence for aggravated identity theft. As part of his plea agreement, Oworu will also be required to pay restitution. U.S. District Judge Catherine C. Blake has scheduled sentencing for March 10, 2022 at 9:15 a.m.
United States Attorney Erek L. Barron commended the Treasury Inspector General for Tax Administration for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Mary W. Setzer and Judson T. Mihok, who are prosecuting the case.
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Dublin, Virginia Man Sentenced on Drug, Firearms ChargesRead the Press Release
ABINGDON, Va.– A Dublin, Virginia man, who illegally possessed a pair of firearms and methamphetamine, was sentenced this week to 81 months in federal prison.
Dezmon Harmon, 28, pleaded guilty in August to one count of possession of a firearm by a convicted felon, two counts of possession of a firearm which has had the serial number removed, one count of possession with the intent to distribute methamphetamine, one count of possessing a firearm in furtherance of a drug trafficking crime, and one count of possession of a firearm which is not registered in the National Firearms Registration and Transfer Record.
According to court documents, on April 29, 2020, authorities attempted to initiate a traffic stop of Harmon in Wythe County, Virginia, but he sped off in his vehicle before exiting and fleeing on foot. Harmon was eventually apprehended by Wythe County deputies and found to be in possession of methamphetamine, a loaded, sawed-off shotgun, and a loaded .40 caliber pistol.
United States Attorney Christopher R. Kavanaugh of the Western District of Virginia and Charlie J. Patterson, Special Agent in Charge of ATF’s Washington Field Division made the announcement.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Wythe County Sheriff’s Office investigated the case.
Assistant U.S. Attorney Daniel J. Murphy prosecuted the case.
Drug User and Felon Sent Back to Federal Prison for Possessing FirearmRead the Press Release
A Cedar Rapids man who possessed an AR-15 style rifle was sentenced December 7, 2021, to two years in federal prison.
John Douglas Clark, age 61, from Cedar Rapids, Iowa, received the prison term after a July 9, 2021 guilty plea to one-count of possession of a firearm by a prohibited person.
Information at sentencing showed that, in April 2020, Clark kept a Palmetto State Armory PA-15 rifle in a gun safe located in his basement. On April 4, 2020, Clark brought the rifle to his place of employment, where he was observed on security camera with a co-worker possessing and handling the firearm, even kissing it. Clark was prohibited from possessing firearms because he was a methamphetamine user and a felon. Clark had previously been convicted in federal court of manufacturing and attempting to manufacture fifty grams or more of methamphetamine.
Clark was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Clark was sentenced to 24 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.
Clark was released on the bond previously set and is to surrender to the Bureau of Prisons on a date yet to be set.
The case was prosecuted by Assistant United States Attorney Dillan Edwards and investigated by the Cedar Rapids Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-00086.
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Drug Trafficking Co-Conspirators Receive Federal Prison SentencesRead the Press Release
SHREVEPORT, La. - Acting United States Attorney Alexander C. Van Hook announced that two co-conspirators, Roderick Lamont Stills, a.k.a. “Scooter,” 45, of Shreveport, Louisiana, and Myron Keith Carter, a.k.a. “Cali Red,” 38, of Ontario, California, have been sentenced by Chief United States District Judge S. Maurice Hicks, Jr., for their involvement in a drug trafficking conspiracy. Stills was sentenced to 168 months (14 years) in prison for conspiracy to possess with intent to distribute methamphetamine and Carter was sentenced to 78 months (6 years, 2 months) in prison for possession with intent to distribute methamphetamine.
The charges in this case stem from an investigation conducted by agents with the U.S. Drug Enforcement Administration (DEA) into shipments of methamphetamine that were being sent to individuals in the Shreveport area from Southern California. On July 31, 2019, DEA and U.S. Postal Inspection Service agents learned about the arrival of packages from California into the Western District of Louisiana. The next day, agents observed a postal carrier deliver one of the packages to an address on Line Avenue in Shreveport. Agents observed Stills obtain the package and move it to his vehicle. Stills was detained by agents and when they retrieved the package from his vehicle, found heat-sealed packages containing approximately 1,647 gross grams of methamphetamine. Stills admitted that the package was his and further admitted that he had received at least two dozen packages of methamphetamine to the Shreveport area. He further admitted that he would have individuals pick up the packages from him on occasion and that he would also distribute the drugs to others to sell.
During their investigation, law enforcement agents learned that Carter would mail methamphetamine to an address in Shreveport, then fly to Dallas, rent a car, drive to Shreveport, and retrieve the package. He would then arrange meetings with individuals in Shreveport to sell the methamphetamine in large quantities for them to sell. On September 18, 2019, Carter arranged such a meeting and sold methamphetamine for $3,700 to an individual. The methamphetamine was later tested at the DEA crime lab and determined to be methamphetamine and weighed 375.4 grams.
The case was investigated by DEA and the U.S. Postal Inspection Service and was prosecuted by Assistant U.S. Attorney J. Aaron Crawford.
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Dr. Jeffrey M. Gallups and Entellus Medical agree to pay $4.2 million to resolve False Claims Act lawsuit alleging kick-back arrangementsRead the Press Release
ATLANTA – Dr. Jeffrey M. Gallups (founder, owner, medical director and past-CEO of Milton Hall Surgical Associates (“MHSA”) a/k/a The Ear, Nose & Throat Institute) and Entellus Medical have agreed to pay approximately $3 million and $1.2 million, respectively, to resolve allegations that they violated the False Claims Act by entering into unlawful kickback arrangements.
“Gallups abused his position by accepting unlawful kickbacks in exchange for directing MHSA physicians – often over their objections – to order devices or administer procedures and tests that were not medically necessary,” said U.S. Attorney Kurt Erskine. “In his role, Gallups was uniquely situated to benefit his community. Instead, he chose to put his personal financial interests above the interests of his colleagues and MHSA’s patients.”
“The Anti-Kickback Statute prohibits individuals who participate in federal health care programs from knowingly and willfully offering, paying or receiving any remuneration in order to encourage recommendation of any item covered under a federal health care program,” stated Derrick L. Jackson, Special Agent in Charge with the Department of Health and Human Services Office of Inspector General. “We will continue to pursue providers who engage in kickbacks or bill for baseless procedures.”
“The False Claims Act settlement in this case will be a deterrent to those who selfishly profit from dishonest medical treatment rather than upholding their oath as a health care provider to do what is best for their patients,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI and our partners will always make it a priority to protect companies and individuals from anyone who would seek to profit from false claims.”
"Georgia's Medicaid program relies upon the independent judgement of medical professionals to make appropriate treatment decisions for their patients. Financial relationships that undercut this independence diminish public trust and unnecessarily drive up health care costs for our citizens. We remain dedicated to working with our state and federal partners to maintain the integrity of public programs and protect taxpayers dollars,” said Georgia Attorney General Chris Carr
“Our trusted medical professionals who engage in kickback schemes to maximize profits undermine the integrity of our Department of Defense health care system,” stated Special Agent in Charge Cynthia A. Bruce, Department of Defense (DoD) Office of Inspector General, Defense Criminal Investigative Service (DCIS), Southeast Field Office. “DCIS and our investigative partners will continue to protect DoD personnel and their dependents by holding companies accountable that engage in unlawful activities.”
Between 2014 and 2018, Gallups was a non-practicing physician, and devoted his time to acting as the CEO and medical director of MHSA, which employed approximately 12-18 physicians in various locations throughout North Georgia. The government alleges that Gallups controlled these physicians in his capacity as CEO and medical director of MHSA and directed these physicians, in exchange for the kickbacks described herein, to (1) utilize sinuplasty related medical devises exclusively from Entellus; as well as to (2) order toxicology and genetic testing from NextHealth.
First, with respect to Entellus and Gallups, it is alleged that Entellus provided Gallups several forms of remuneration, including cash payments and all-expense paid trips, in return for Gallups requiring MHSA physicians to use Entellus’s sinuplasty medical devices and increase the number of sinuplasty procedures conducted on MHSA patients.
Second, with respect to Gallups and a Dallas, Texas based medical laboratory called NextHeath, LLC (“NextHealth”), it is alleged that NextHealth made payments to Gallups in the form of supposed “commissions” in return for Gallups requiring MHSA physicians to order medical tests from NextHealth, regardless of medical necessity, and despite objections from MHSA physicians that such tests were not medically necessary.
Gallups/Entellus Kick-Back Scheme
Entellus is a medical device company that manufactures, inter-alia, products used to perform sinus surgery. The government alleges that Entellus provided kickbacks to Gallups to induce him to direct MHSA physicians to (1) utilize Entellus sinuplasty medical devices (as opposed to those of Entellus’ competitors); and (2) increase the volume sinus surgeries performed at MHSA, thereby increasing the number of supplies ordered from Entellus. On December 7, 2017, Entellus was acquired by Stryker Corporation (“Stryker”), and Stryker’s compliance personnel flagged and elected not to renew the consulting arrangement that existed between Entellus and Gallups. On September 21, 2000, Stryker agreed to pay $1.2 million to resolve claims arising from the alleged Gallups/Entellus kickback arrangement.
Gallups/NextHealth Kick-Back Scheme
The government alleges that, in or around January 2016, Gallups entered into a kickback arrangement with a now defunct medical testing laboratory called NextHealth, pursuant to which Gallups directed MHSA physicians to order toxicology and genetic tests from NextHealth, despite physician objections that the tests were not medically necessary. In return, NextHealth paid Gallups 50% of the revenue generated from such tests as “commissions.” The government contends the scheme ended in or around February 2017 due to increasing complaints from MHSA physicians that the tests were not medically necessary.
The civil settlement resolves claims brought under the qui tam or whistleblower provisions of the False Claims Act by Myron Jones, M.D., who is a former physician-employee of MHSA. The False Claims Act permits private parties to sue for false claims on behalf of the United States and to share in any recovery. The qui tam case is captioned United States ex rel. Myron Jones, M.D., et al. v. Milton Hall Surgical Associates, LLC d/b/a The ENT Institute and a/k/a the Ear, Nose & Throat Institute, Jeffrey M. Gallups, M.D., et al., Civil Action. No. 1:17-cv-2472 (NDGA). Jones will receive approximately $614,000.00 from the settlement.
The claims resolved by this settlement are allegations only and there has been no determination of liability. With respect to the allegations concerning NextHealth, LLC, on October 21, 2021, before the U.S. District Court for the Northern District of Georgia, Gallups pleaded guilty to health care fraud in case number 1:21-cr-00370.
This matter was investigated by the U.S. Attorney’s Office for the Northern District of Georgia, the Georgia Medicaid Fraud Control Unit, the U.S. Department of Health and Human Services – Office of Inspector General, the Federal Bureau of Investigations and the Defense Criminal Investigative Service of the U.S. Department of Defense – Office of Inspector General.
The civil settlement was reached by Assistant U.S Attorney Paris A. Wynn and Georgia Assistant Attorney General James Mooney.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://wwws.justice.gov/usao-ndga.
Domestic Violence Offender Sentenced to Federal Prison for Possessing GunsRead the Press Release
DURANGO – The United States Attorney’s Office for the District of Colorado announces that Dennis Yarbrough, 49, of Durango, Colorado, was sentenced to 30 months in federal prison, followed by 3 years of supervised release, for illegally possessing six firearms following a misdemeanor conviction for domestic violence.
According to the plea agreement and public filings, in 2019, Yarbrough was convicted of a physical domestic violence misdemeanor in La Plata County Court. In March 2021, law enforcement found Yarbrough in possession of six firearms, including a semi-automatic firearm capable of accepting a large capacity magazine.
On April 8, 2021, a federal grand jury returned a one count-indictment against the defendant for possession of a firearm following a domestic violence conviction, in violation of 18 U.S.C. §922(g)(9). After his arrest on the indictment, Yarbrough violated a federal no-contact order by contacting the victim of domestic violence to unlawfully influence her testimony in this case.
“Victims of domestic violence need protection, safety, and support,” said United States Attorney Cole Finegan. “The U.S. Attorney’s Office prosecutes abusers who place victims of domestic violence at risk by illegally possessing firearms.”
“Convicted criminals who seek to acquire firearms and threaten victims will be held accountable as this sentence shows,” said Ryan L. Spradlin, Special Agent in Charge, HSI Denver. “Given that Yarbrough violated an order of protection in an effort to influence testimony shows his disregard for the law, and we’re gratified he will be behind bars. We are pleased to work with the Durango Police and U.S. Attorney’s office to see justice served in this case.”
United States District Court Judge Robert Blackburn issued the sentence on December 8, 2021. The defendant pleaded guilty on September 9, 2021.
This case was investigated by HSI, working partnership with the Durango Police Department. Assistant United States Attorney Jeffrey K. Graves handled the prosecution.
Case number: 21-cr-00118-REB-JMC
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District Heights Man Sentenced to 45 Years in Federal Prison for the Sexual Abuse of a Two-Year-Old and Seven-Year-Old Child in Order to Produce Child PornographyRead the Press Release
Greenbelt, Maryland - U.S. District Judge Paul W. Grimm today sentenced Brian Anthony Gilbert, age 34, of District Heights, Maryland to 45 years in federal prison, followed by lifetime supervised release, for two counts of child pornography and one count of possession of child pornography. Judge Grimm also ordered that, upon his release from prison, Gilbert must continue to register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Assistant Attorney General Kenneth A. Polite, Jr.; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Malik Aziz of the Prince George’s County Police Department.
“There are no words to adequately express how disturbing this case truly is,” said United States Attorney Erek L. Barron. “This sentence sends a clear message that we will bring to justice those who victimize innocent children.”
“Not only did the defendant commit egregious acts of abuse against two children in his community, but he also recorded and exploited the abuse and trauma of young victims on the Dark Web,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “Today’s sentence demonstrates our commitment to protecting children from threats. I commend the professionalism of our agents and law enforcement partners in bringing Brian Gilbert to justice.”
“When the most vulnerable of our citizens – our children – are victimized we will do everything in our power to hold the perpetrators accountable and to protect others from harm,” said Thomas J. Sobocinski, Special Agent in Charge of the FBI Baltimore Field Office. “Not only did the abuser harm two innocent children, but he furthered their victimization by distributing heinous materials online. Mr. Gilbert will now spend a significant time behind bars.”
According to his guilty plea, in August 2020, Gilbert uploaded and advertised at least two video files of child pornography depicting an approximately seven-year-old female victim (Victim 1) on an online bulletin board dedicated to child pornography hosted on the Tor network. The Tor network is a computer network that is specifically designed to facilitate anonymous communication over the Internet. The videos were approximately 10 minutes and 15 minutes in length and depicted sexual acts between Gilbert and Victim 1. In Gilbert’s posts on the online bulletin board, Gilbert admits to having produced both videos.
As detailed in his plea agreement, on September 11, 2020, law enforcement executed a search warrant at Gilbert’s residence, Gilbert was present at the time. During the execution of the search warrant, Gilbert waived his rights and informed law enforcement that he video recorded sexual acts between himself and Victim 1 in his bedroom and at Victim 1’s residence approximately five times between January 2019 and August 2020. He also stated that he had video recorded sexual acts between himself and another victim, who was approximately two-years old (“Victim 2”) at the time. Gilbert told law enforcement that he distributed the child sex abuse material that he produced on the Tor network.
During the execution of the search warrant, law enforcement also seized a number of electronic devices from Gilbert’s bedroom. A subsequent forensic analysis of Gilbert’s electronic devices revealed over 2,000 files depicting child pornography. Among those files were six videos of Gilbert engaging in sexual acts with Victim 1 and Victim 2 in Gilbert’s bedroom or in Victim 1’s residence. Some of the child pornography located on Gilbert’s devices included prepubescent children under the age of 12 as well as sadistic or masochistic conduct, including the use of instruments or tools on children, and sexual acts between adults and children.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Erek L. Barron and Assistant Attorney General Kenneth A. Polite commended the FBI and the Prince George’s County Police Department for their work in the investigation. Mr. Barron and Mr. Polite thanked Assistant U.S. Attorney Joseph R. Baldwin and Trial Attorneys Jessica Urban and Alicia Bove from the Justice Department’s Child Exploitation and Obscenity Section who are prosecuting federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
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District Court Judge Orders Unsealing of DocumentsRead the Press Release
SAN JUAN, PUERTO RICO – Today, at the request of the United States Department of Justice, U.S. District Chief Judge Raúl Arias-Marxuach unsealed Informations and Plea Agreements for Oscar Santamaría-Torres and Raymond Rodríguez-Santos, announced W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico. Copies of the pertinent documents are attached to this press release. The public is reminded that if they have information regarding other criminal activity, they should contact the FBI at 787-987-6500.
The cases are being prosecuted by Trial Attorney Ryan R. Crosswell of the Criminal Division’s Public Integrity Section, and Assistant U.S. Attorneys Scott H. Anderson and Nicholas W. Cannon of the U.S. Attorney’s Office for the District of Puerto Rico. The investigations are being conducted by the FBI’s San Juan Field Office.
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Cuyahoga Falls Man Sentenced to Prison for Attempting to Attack a Local High School and Making Threats to a Kansas Elementary SchoolRead the Press Release
U.S. Attorney Bridget M. Brennan announced that Allen Martin Kenna, 20, of Cuyahoga Falls, Ohio, was sentenced today to five years in prison by Judge Patricia A. Gaughan after Kenna pleaded guilty earlier this year to attempted use of an explosive device and interstate communication of threats.
“This defendant openly threatened to attack children while they attended classes at a local high school,” said U.S. Attorney Bridget M. Brennan. “That he also engaged in reconnaissance efforts to prepare for such an attack and possessed the components, including ammunition, to construct the improvised explosive device he intended to use, demonstrates how very real this threat was for the children he targeted. The exceptional work of our local, state and federal partners prevented this attack. We remain grateful for their selfless dedication to protecting the residents of this District.”
"Mr. Kenna will now serve time behind bars for threatening two schools,” said FBI Special Agent in Charge Eric B. Smith. “Thanks to the awareness of private citizens and the hard work of our law enforcement partners, what could have been a horrific and tragic day was stopped. Law enforcement has no higher priority than protecting others. The FBI and our law enforcement partners urge parents, relatives and friends to report suspicious and troubling behavior to authorities immediately.”
According to court documents, on January 8, 2020, law enforcement officers searched the known residence of Defendant Allen Martin Kenna after an individual informed police that Kenna had made threats to carry out an attack at Cuyahoga Falls High School (CFHS). Kenna had previously been identified entering CFHS after normal school hours, filming inside school hallways and asking others specific questions concerning school operations, facilities and resource officers.
During the search of the Kenna residence, officers obtained multiple electronic devices, several knives, firearm magazines, ammunition and various items intended to be used as components in the creation of an improvised explosive device.
Investigators then searched Kenna’s laptop and discovered numerous digital journal entries made by Kenna discussing plans, desires and research to carry out an attack at CFHS using explosives and firearms. In addition, officers found internet search history on a cell phone belonging to Kenna for topics including active shooters, firearms and weapons handling tactics, timed explosives, the search term “isis time bomb” and more.
Furthermore, investigators found multiple internet search inquiries for Lee Elementary School in Manhattan, Kansas. Investigators determined that on or about November 13, 2019, Kenna placed phone calls to law enforcement officials in Manhattan, Kansas, claiming to be an active shooter inside the elementary school. In response to this call, SWAT officers from the Riley County Sheriff’s Department deployed, and after several hours of speaking with Kenna posing as the alleged gunman, the SWAT team entered the school and discovered the event was a hoax. Journal entries found on Kenna’s laptop discussed his role in the hoax.
This case was investigated by the Federal Bureau of Investigation’s Joint Terrorism Task Force and the Cuyahoga Falls Police Department. This case was prosecuted by Assistant U.S. Attorney Duncan T. Brown.
Cincinnati man who sex trafficked teen sentenced to more than 15 years in prisonRead the Press Release
CINCINNATI – A Cincinnati man who was charged with his half-brother for conspiring to sex traffic minor females was sentenced in U.S. District Court today to 188 months in prison and 20 years of supervised release.
William Pierce Washington, 40, was charged by a federal grand jury in 2017 with co-defendant William Pierce Washington, Jr., 51.
According to court documents, William Pierce Washington, also known as “Bam,” sex trafficked a minor female for at least four months. Washington would routinely get the victim high on drugs, including forcibly injecting the victim with heroin on at least one occasion.
Washington would then traffic the teenager to engage in sexual conduct for money. He beat and raped the victim.
Court documents in this case detail that Sharonville Police Department officers responded to a motel in Sharonville on April 18, 2017 following the report of a distraught female in the business’s parking lot. The female, a 16-year-old, told officers she had spent several hours in a motel room smoking crack cocaine and engaged in oral sex with an adult male who physically assaulted her.
Contact with the adult male and search of his cell phone revealed sexually explicit photos with the victim and text conversations with Washington about arrangements to coordinate the sexual activity for payment to Washington.
As part of his sentence, Washington was ordered to pay more than $229,000 in restitution to the victim and to a local county Job and Family Services agency.
Washington, Jr. has pleaded guilty and awaits sentencing.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Sharonville Acting Police Chief Mark Preuss and other members of the FBI’s child exploitation task force announced the sentence imposed today by U.S. District Court Judge Timothy S. Black. Assistant United States Attorney Kyle J. Healey is representing the United States in this case.
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Chicago-Area Physician Charged with Unlawfully Using Veterinary Catheters During Intrauterine Inseminations on PatientsRead the Press Release
CHICAGO — A Chicago-area physician unlawfully used veterinary catheters to perform intrauterine inseminations on his patients, according to a federal criminal charge filed today.
A criminal information filed in U.S. District Court in Chicago accuses JOEL G. BRASCH of unlawfully using the veterinary catheter devices on his patients from 2016 to 2018. The devices were considered adulterated in that they had not been approved by the U.S. Food and Drug Administration for use on human patients.
Dr. Brasch, 61, of Skokie, Ill., is charged with receipt in interstate commerce and delivery of an adulterated device. The charge is punishable by a maximum sentence of a year in federal prison and a fine of up to $100,000. Arraignment in federal court has not yet been scheduled.
The charge was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Lynda M. Burdelik, Special Agent-in-Charge of the Chicago Field Office of the U.S. Food and Drug Administration, Office of Criminal Investigations; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The U.S. Office of Personnel Management provided valuable assistance. The government is represented by Assistant U.S. Attorneys Sarah E. Streicker and Corey B. Rubenstein.
“The use of a veterinary device in a medical procedure like IUI poses a danger to the health and safety of patients,” said U.S. Attorney Lausch. “We will continue to work with our law enforcement partners to hold accountable those who endanger the public health through the use of adulterated medical devices.”
“In procedures such as IUI, every step should strictly follow protocols in order to protect the patient’s health and safety and ensure the efficacy of the procedure,” said FDA SAC Burdelik. “Utilizing instruments designed for animal use in humans can put patients at risk. We will continue to investigate and bring to justice those who use unapproved devices on their human patients.”
“Our citizens place an immense amount of trust in healthcare professionals and the public should feel confident in the knowledge that the FBI works tirelessly with our partners to ensure that that trust is not misplaced,” said FBI SAC Buie.
The public is reminded that an information is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.