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3 December 2021
Maryland Attorney Charged in Manhattan Federal Court with over $8 Million Escrow FraudRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of a Complaint in Manhattan federal court charging BRIAN O’NEILL, the managing partner of O’Neill & Partners LLC (“O’Neill & Partners”) with wire fraud, perjury, and making false statements. As alleged, O’NEILL defrauded two victim companies of over $8 million that he had promised to hold in escrow. O’NEILL was arrested this morning in Chevy Chase, Maryland, and will be presented later today before United States Magistrate Judge Timothy J. Sullivan in the District of Maryland.
U.S. Attorney Damian Williams said: “As alleged, Brian O’Neill violated the canons of his profession to put self-interest above the interests of his clients; to be blunt, he stole their money. Further, as alleged, when ordered by the federal court in this District to deposit escrow funds he had failed to return to one client, O’Neill misappropriated escrow funds from a second client to make partial satisfaction of the court’s order pertaining to the first client. In addition, as alleged, O’Neill lied to the FBI about his robbing Peter to pay Paul. Now he faces serious criminal charges for his alleged misdeeds.”
FBI Assistant Director Michael J. Driscoll said: “As alleged, Brian O'Neill didn’t just hold his clients’ money in escrow, he held it hostage, and eventually lied to the FBI about his unlawful deeds. His alleged actions weren’t only unethical, they’re punishable by federal law. Today’s charges reflect our ongoing commitment to weeding out criminals who use other people’s money for their own personal gain.”
As alleged in the Complaint unsealed today in Manhattan federal court:[1]
Beginning at least as early as August 2020, O’NEILL engaged in two related fraudulent schemes.
First, O’NEILL engaged in a scheme to defraud a medical equipment company headquartered in Pennsylvania (“Victim-1”) by falsely promising to hold over $5 million of the company’s funds in escrow. Specifically, in August 2020, Victim-1 entered into an agreement with a Florida-based medical wholesale company (“Seller-1”) for the purchase of Personal Protective Equipment (“PPE”). Victim-1 sought to purchase PPE from Seller-1 in order to donate the PPE to the Federal Emergency Management Agency (“FEMA”) to help fight the COVID-19 pandemic. Contemporaneously with the execution of the Purchase Order, Victim-1 and Seller-1 entered into an escrow agreement (“Escrow Agreement-1”) with O’Neill & Partners. Pursuant to Escrow Agreement-1, O’Neill & Partners was to act as escrow agent for the transaction and hold $5.1 million deposited by Victim-1 in escrow. Instead of holding the deposited $5.1 million in escrow, however, O’NEILL secretly used the funds to execute personal deals for the purchase of PPE; O’NEILL dissipated the $5.1 million by approximately November 2020.
In November 2020, Victim-1 served a cancellation notice on O’Neill & Partners and Seller-1 cancelling the transaction (the “Cancellation Notice”). In light of the Cancellation Notice, counsel for Victim-1 sent a letter to O’Neill & Partners requesting that the $5.1 million in escrowed funds be returned to Victim-1 within 48 hours, pursuant to the terms of Escrow Agreement-1. When O’Neill & Partners refused to return Victim-1’s deposited funds, Victim-1 filed a civil action in U.S. District Court for the Southern District of New York (the “Civil Action”). In connection with the Civil Action, the Court ordered O’Neill & Partners to deposit the $5.1 million of escrowed funds with the Clerk of the Court. On September 22, 2021, O’NEILL deposited $3.3 million with the Clerk. Because O’NEILL’s deposit was $1.8 million short of the full $5.1 million he had been ordered to deposit, the Court held O’Neill & Partners and O’NEILL in civil contempt and ordered O’NEILL’s arrest.
Relatedly, O’NEILL engaged in a second scheme that defrauded a Hong Kong-based investor (“Victim-2”) out of over $3 million. Specifically, on April 19, 2021, a Delaware-based company involved in the PPE market (“Buyer-2”) entered into a sale and purchase agreement to purchase certain PPE from an Australia-based medical supply company (“Seller-2”). Funding for the deal was to be provided by Victim-2. At the same time that Buyer-2 and Seller-2 entered into the Sale and Purchase Agreement, they, along with Victim-2, entered into an escrow agreement (“Escrow Agreement-2”) with O’Neill & Partners. Pursuant to Escrow Agreement-2, O’Neill & Partners was to hold certain funds associated with the transaction in escrow. Instead of holding the funds deposited by Victim-2 in escrow, however, O’NEILL used $3.3 million of the funds to attempt to satisfy the Court’s order in the Civil Action by Victim-1 directing him to deposit $5.1 million with the Clerk of the Court.
In an effort to conceal his wrongful conduct, O’NEILL made false statements to the FBI and submitted a false declaration, sworn to under penalty of perjury, to the U.S. District Court for the Southern District of New York in connection with the Civil Action. In particular, on or about September 10, 2021, O’NEILL stated to FBI agents that the $5.1 million placed in escrow pursuant to Escrow Agreement-1 remained in an escrow account. Similarly, on or about October 1, 2021, O’NEILL submitted a declaration in the Civil Action stating, under penalty of perjury, that he “still [had] control of the $1.8 million of the subject escrow funds . . . remaining to be deposited pursuant to the interpleader ordered by [the] Court.” Neither of those statements was true.
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O’NEILL, 48, of Chevy Chase, Maryland, is charged with two counts of wire fraud, each of which carries a maximum sentence of 20 years in prison, and one count each of false statements and perjury, each of which carries a maximum sentence of five years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Williams praised the investigative work of the FBI.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Maggie Lynaugh is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Mansfield Area Physician Sentenced to Prison for Prescribing Painkillers without Medical NecessityRead the Press Release
U.S. Attorney Bridget M. Brennan announced that Gary Frantz, 69, a Mansfield-area physician at the time of the offense conduct, was sentenced to 46 months in prison and ordered to pay a fine of $10,000 on December 2, 2021, by Judge Benita Y. Pearson after Frantz pleaded guilty earlier this year to illegally, and without medical necessity, prescribing powerful painkillers.
Christopher Fulk, 44, of Mansfield, Ohio, was also sentenced in this matter to 30 months in prison. Fulk pleaded guilty in August of 2020 to conspiracy to distribute and dispense controlled substances, distribution of fentanyl and distribution of fentanyl and oxycodone.
According to court records, from January of 2005 through June of 2017, Frantz, a licensed medical practitioner in Mansfield, Ohio, distributed prescription painkillers, such as Oxycodone, Methadone, Hydrocodone and more, that were medically unnecessary and outside the usual course of professional practice to ten individuals.
Frantz prescribed narcotics to customers whom he described as “patients”, often prescribing doses that far exceeded the standard of care, and at levels that were so high, they’re typically seen only in operating rooms and in end-of-life care. In some instances, family members came to Frantz and raised concerns that their loved ones were taking too much medication; however, Frantz continued to distribute narcotics at excessive levels and in large doses.
Furthermore, Frantz distributed excessive quantities of narcotics to persons despite knowing that they had histories of substance abuse and in the face of multiple signs that they were addicted to the medication. In some instances, pharmacists expressed concern to Frantz that the dosages and quantities of painkillers that he was prescribing and that some of his patients were filling prescriptions far too often. Nevertheless, Frantz continued to prescribe these large doses.
Frantz also prescribed large doses of perception narcotics to Defendant Christopher Fulk, who was known as a “patient”. During this time, Frantz wrote medically unnecessary prescriptions for excessively large quantities of controlled substances, including oxycodone pills and fentanyl patches, some of which Fulk then diverted and distributed to others. Fulk sold thousands of oxycodone pills and hundreds of fentanyl patches that he received from Frantz to various customers in the Mansfield area.
This case was investigated by the DEA, METRICH Drug Task Force and the Mansfield Police Department. This case was prosecuted by Assistant U.S. Attorneys Margaret A. Sweeney and Edward F. Feran.
Man Indicted on Drug Trafficking and Firearms ChargesRead the Press Release
WICHITA, KAN. – A federal grand jury in Wichita, Kansas, returned an indictment against a Kansas man on charges related to drug trafficking and firearms.
According to court documents, Joshua Heartfield, 32, of Wichita is charged with one count of possession with intent to distribute fentanyl, one count of possession with intent to distribute heroin, two counts of possession of a firearm in furtherance of a drug trafficking crime, and two counts of possession of a firearm by a prohibited person.
The Wichita Police Department and the Federal Bureau of Investigation (FBI) are investigating the case.
Assistant U.S. Attorney Molly Gordon is prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Man Facing Federal Charges for Selling Fraudulent Covid-19 Vaccination Cards and Distributing Them Through a Mail ServiceRead the Press Release
Baltimore, Maryland – A criminal complaint has been filed charging Amar Salim Shabazz, age 23, of Owings Mills, Maryland, for the federal charges of mail fraud and obstruction of justice in connection with his alleged distribution of fraudulent COVID-19 vaccination cards.
The criminal complaint was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; Postal Inspector in Charge Daniel A. Adame of the U.S. Postal Inspection Service - Washington Division (USPIS); Special Agent in Charge Maureen Dixon, Office of Investigations, Office of Inspector General of the Department of Health and Human Services (HHS-OIG); and Chief Melissa R. Hyatt of the Baltimore County Police Department.
According to the criminal complaint, since June 2021, Shabazz purchased over 600 fraudulent COVID-19 vaccinations cards through a foreign online marketplace and had the cards illegally shipped into the United States. Once Shabazz received the fake vaccination cards, he advertised them for sale on several popular social media platforms and distributed them through the United Parcel Service.
Under normal circumstances, COVID-19 vaccination cards are distributed by authorized health care providers to vaccine recipients at the time the recipient receives a COVID-19 vaccine.
As stated in the criminal complaint, since the beginning of August 2021, U.S. Customs and Border Protection (CBP) Officers have seized thousands of fraudulent COVID-19 vaccination cards at international mail facilities and at express consignment carrier facilities. The majority of seized shipments contain fraudulent COVID vaccination cards originating from Asia and the packages are commonly found to be falsely labeled.
The criminal complaint alleges that Shabazz ordered over 600 vaccination cards on multiple occasions which were delivered to his Owings Mills, Maryland residence.
According to the complaint, on June 10, 2021 Shabazz allegedly searched the phrase “fake covid vaccination record card” and viewed a video titled, “Scammers Work to Sell Fake Covid Vaccination Cards Online.” Several days later, Shabazz placed an order with a foreign website for COVID-19 vaccination cards to be shipped to “MAR S,” with Shabazz’s number listed as the recipient. On July 10, 2021, after the shipment was delivered, Shabazz posted a video of multiple fraudulent vaccination cards on two of his social media accounts with the caption “Covid19 vaccination card who want one. $75 a pop.”
On August 5, 2021, Shabazz commented under an article about bars and restaurants requiring guests to show proof of vaccination, allegedly stating “I SELL PROOF OF VACCINATION CARDS”. Five days later, Shabazz posted, “I’m sold out right now no more vax cards until next week.” Additionally, Shabazz allegedly messaged anther individual with the message, “Made 300 today. I’m sold out. Just bought 500 more cards. 60x500 is $30k. I’m gonna be rich.”
On August 19, 2021, CBP officers seized a shipment sent to Shabazz’s address with the name, “MAR SHA” and Shabazz’s telephone number. The carrier’s website noted the package had been delayed at U.S. Customs. Shabazz then allegedly searched the phrase “customs inspection packages VACCINATION cards” and viewed a video titled, “FBI investigating fake vaccination cards.”
As detailed in the complaint, Shabazz placed another order for cards with the foreign website that was delivered to his residence on August 31, 2021. This package had Shabazz’s cell phone number associated with it and was addressed to “ACE BOOGIE.” Shabazz then allegedly posted a picture of the fraudulent vaccination cards on a social media platform, selling them from $70 per card.
Investigators subsequently interviewed multiple individuals outside Maryland to whom Shabazz sold fake COVID-19 vaccination cards and recovered the fake cards. Shabazz allegedly shipped these individuals’ fraudulent vaccination cards through the mail.
On October 1, 2021, law enforcement executed search warrants at a basement used by Shabazz. In the basement, law enforcement found a bulleted list titled, “Things I’m doing when I get out (updated).” In early 2021, Shabazz was an inmate of the Maryland Department of Public Safety and Correctional Services after being sentenced in in the Circuit Court of Maryland for possession of child pornography. Shabazz was released in April 2021. The list included obtaining two “burner” cell phones, with the note, “first burner is for scamming.” Another bullet point stated, “hire a lawyer and get tips of what not to do when getting money illegally.”
The day after the search warrants were executed at his residence, Shabazz allegedly researched how to delete his account on the foreign marketplace website and deleted his email account.
If convicted, Shabazz faces a maximum sentence of 20 years’ incarceration each for mail fraud and for obstruction of justice. 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 initial appearance has been scheduled for 2:00 P.M. on Friday December 3, 2021 before U.S. Magistrate Judge Coulson in Baltimore.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
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.
United States Attorney Erek L. Barron commended HSI, USPIS, HHS-OIG, and the Baltimore County Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Aaron S.J. Zelinsky and Sean Delaney, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao/md.
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MS-13 Gang Associate Pleads Guilty to Participating in the 2017 Murders of Four Young Men in a Central Islip ParkRead the Press Release
Anderson Sanchez, an associate of the Leeward Locos Salvatruchas clique of La Mara Salvatrucha, also known as the MS-13, a transnational criminal organization, pleaded guilty yesterday in federal court in Central Islip to racketeering charges in connection with his participation in the April 11, 2017 murders of Justin Llivicura, Michael Lopez, Jorge Tigre, and Jefferson Villalobos. The proceeding was held before United States Magistrate Judge Steven I. Locke.
Breon Peace, United States Attorney for the Eastern District of New York, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Stuart Cameron, Acting Commissioner, Suffolk County Police Department (SCPD), announced the guilty plea.
“With today’s guilty plea, Sanchez admits to being a willing participant in the stabbing and beating deaths of four young men for their alleged ‘disrespect’ of the MS-13 and is held accountable for his horrific crime,” stated United States Attorney Peace. “This Office and the Long Island Gang Task Force will not rest until the brutality of the MS-13 gang is eliminated for good from our communities.”
According to court filings and statements by the defendant at the guilty plea proceeding, on the evening of April 11, 2017, two female associates of the MS-13 lured five young men, including the four victims, to a community park in Central Islip where they were attacked and killed. The MS-13 members and associates believed the victims to be members of a rival gang who had disrespected the MS-13. Sanchez and several other MS-13 members and associates met in a wooded area behind the park where weapons were distributed and the plan to kill the victims was discussed. The female associates arrived at the park, led the victims to a predetermined wooded area and sent the MS-13 members a text message notifying them of their arrival. Sanchez and the other MS-13 members and associates proceeded to the designated location and encircled the victims under the cover of darkness. One of the intended victims immediately fled and was able to escape. Llivicura, Lopez, Tigre and Villalobos were surrounded by Sanchez and others, who prevented their escape, while other MS-13 members, armed with machetes, knives, and wooden clubs, led the victims deeper into the woods where they were brutally murdered. After the attack, the MS-13 members dragged the victims’ bodies to a more secluded spot in the woods and then fled. The victims’ bodies were discovered the following evening.
More than a dozen MS-13 members and associates have been charged in connection with the April 11 murders.
When sentenced, Sanchez faces a maximum sentence of life in prison. Upon completion of his sentence, he faces deportation from the United States.
Today’s conviction is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of the MS-13, a violent, transnational criminal organization. The MS-13’s leadership is based in El Salvador, Honduras, Guatemala and Mexico, but the gang has thousands of members across the United States. With numerous branches, or “cliques,” the MS-13 is the most violent criminal organization on Long Island. Since 2003, hundreds of MS-13 members, including dozens of clique leaders, have been convicted on federal felony charges in the Eastern District of New York. A majority of those MS-13 members have been convicted on federal racketeering charges for participating in murders, attempted murders and assaults. Since 2010, this Office has obtained indictments charging MS-13 members with carrying out more than 60 murders in the Eastern District of New York, resulting in the convictions of dozens of MS-13 leaders and members in connection with those murders. These prosecutions are the product of investigations led by the FBI’s Long Island Gang Task Force, which is comprised of agents and officers of the FBI, SCPD, Nassau County Police Department, Nassau County Sheriff’s Department, Suffolk County Probation Office, Suffolk County Sheriff’s Office, the New York State Police, the Hempstead Police Department, the Rockville Centre Police Department and the New York State Department of Corrections and Community Supervision.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Paul G. Scotti, Justina L. Geraci and Megan E. Farrell are in charge of the prosecution.
The Defendant:
ANDERSON SANCHEZ
Age: 22
Central Islip, New YorkE.D.N.Y. Docket No. 21-CR-101 (JFB)
Lutcher Man Charged with Failure to Report International Travel as a Sex OffenderRead the Press Release
NEW ORLEANS - U.S. Attorney Duane A. Evans announced that WILLIE WALKER, age 56, was charged on Friday, December 3, 2021, by grand jury indictment with two counts of failure to report international travel as a sex offender under the federal Sex Offender Registration and Notification Act (SORNA).
If convicted, WALKER faces a maximum term of 10 years in prison, up to a $250,000.00 fine, a term of supervised release of between 5 years and life, and a $100 mandatory special assessment fee.
U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the United States Marshals Service. Assistant United States Attorneys Spiro G. Latsis and Rachal Cassagne are in charge of the prosecution.
Leader of Bayshore Area Drug Trafficking Organization Sentenced to 200 Months in PrisonRead the Press Release
TRENTON, N.J. – A Monroe County, Pennsylvania man was sentenced today to 200 months in prison for his role in distributing large quantities of heroin and cocaine in the Bayshore area of Monmouth and Middlesex counties, Acting U.S. Attorney Rachael A. Honig announced today.
Guy Jackson, 49, of Effort, Pennsylvania, previously pleaded guilty before U.S. District Judge Brian R. Martinotti in Trenton federal court to an information charging him with one count of conspiracy to distribute and possess with intent to distribute one kilogram or more of heroin. Jackson also admitted to conspiring to distribute and possess with intent to distribute a quantity of cocaine. Judge Martinotti imposed the sentence today via videoconference.
Today’s sentence follows a coordinated takedown in November 2018 of 15 defendants charged in a federal criminal complaint with conspiracy to distribute heroin and cocaine. To date, 13 defendants have pleaded guilty. Supplier Gregory Gillens was sentenced on Sept. 8, 2020, to 10 years in prison. Co-defendant Daniel McHugh was sentenced to 90 months in prison; co-defendant David Nagy was sentenced to one year and one day in prison; co-defendant Shavar Williams was sentenced to time served, which amounted to approximately 14 months in prison; co-defendant Daryl Jackson was sentenced to five years’ probation with 10 months of home detention; and co-defendant Brian Hall was sentenced to three years’ probation with eight months of home detention. Co-defendants Krystal Cordoba, Daniel Alfano, Tyler Scarangello, Christy Dube, Richard Gethers, and Lashawn Mealing are awaiting sentencing. Defendant Deberal Rogers has been indicted, and charges were dismissed against one defendant.
According to documents filed in this case and statements made in court:
From May 2017 to November 2018, Jackson and others engaged in a narcotics conspiracy that operated in the Raritan Bayshore region of Middlesex and northern Monmouth counties. Through the interception of telephone calls and text messages pursuant to court-authorized wiretap orders, controlled purchases of heroin and cocaine, the use of confidential sources of information, and other investigative techniques, law enforcement learned that Jackson regularly supplied large quantities of heroin and cocaine for further distribution. Some of the heroin distributed by the conspiracy contained fentanyl, a dangerous synthetic opioid.
In addition to the prison terms, Judge Martinotti sentenced Jackson to five years of supervised release. Four vehicles that Jackson used in the course of the drug conspiracy, as well as in excess of $10,000 in cash that Jackson admitted was proceeds of drug trafficking, were previously seized and administratively forfeited.
Acting U.S. Attorney Honig credited special agents of the FBI, Newark Division, Red Bank Resident Agency, Jersey Shore Gang and Criminal Organization Task Force (including representatives from the Bradley Beach Police Department, Brick Police Department, Howell Police Department, Marlboro Police Department, Monmouth County Sheriff’s Office, Toms River Police Department, and Union Beach Police Department) under the direction of Special Agent in Charge George M. Crouch, Jr.; special agents of the FBI, Philadelphia Division, Scranton Resident Agency, under the direction of Special Agent in Charge Jacqueline Maguire; the New Jersey State Police, under the direction of Col. Patrick J. Callahan; the Matawan Police Department, under the direction of Chief Thomas J. Falco, Jr.; the Holmdel Police Department, under the direction of Chief John Mioduszewski; the Highlands Police Department, under the direction of Chief Robert Burton; the Monmouth County Prosecutor’s Office, under the direction of Acting Monmouth County Prosecutor Lori Linskey; the Old Bridge Police Department, under the direction of Chief William A. Volkert; the Keansburg Police Department, under the direction of Chief Wayne Davis; the Hazlet Police Department, under the direction of Chief Ted A. Wittke; and the Aberdeen Police Department, under the direction of Chief Alan Geyer, with the investigation leading to this week’s sentencings.
The government is represented by Assistant U.S. Attorney Elisa T. Wiygul of the U.S. Attorney’s Office’s Criminal Division in Trenton.
The charges and allegations against the remaining defendant are merely accusations, and she is presumed innocent unless and until proven guilty.
Las Vegas Felon Sentenced for Unlawful Possession of A Loaded Firearm and Drug Possession with Intent to DistributeRead the Press Release
LAS VEGAS – A Las Vegas man with prior felony convictions was sentenced Thursday to three years in prison for unlawful possession of a firearm and possession of methamphetamine with intent to distribute.
According to court documents, on August 11, 2020, law enforcement conducted a compliance check on Eddie Joe Perez, 34, who was staying at a hotel in Downtown Las Vegas. During the check, officers located a loaded 9mm handgun, a scale with methamphetamine residue, and over eight grams of methamphetamine. Perez is prohibited from possessing a firearm due to prior felony convictions in Nevada and Hawaii.
Perez pleaded guilty in July 2021 to one count of felon in possession of a firearm and one count of possession of a controlled substance with intent to distribute. In addition to the prison term, U.S. District Judge Richard F. Boulware II sentenced Perez to three years of supervised release.
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, the Nevada Department of Public Safety Division of Parole and Probation, and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Dan Cowhig prosecuted the case.
The case was brought as part of Project Safe Neighborhoods (PSN), a nationwide program by the Department of Justice that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, the Department announced the reinvigoration of PSN. For more information about PSN, visit www.justice.gov/usao-nv.
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Large-Scale Methamphetamine Trafficker Sentenced to Federal PrisonRead the Press Release
A woman who trafficked hundreds of pounds of methamphetamine in Iowa was sentenced today to more than seventeen years in federal prison.
Sandra Ann Deyerle, age 30, received the prison term after a May 4, 2021 guilty plea to one-count of conspiracy to distribute a controlled substance and one-count of possession of a firearm in furtherance of a drug trafficking crime.
Information at sentencing showed that, in 2020, Deyerle became involved in a large-scale drug trafficking organization with ties to organized crime in Mexico. On October 30, 2020, after a thorough investigation, law enforcement searched Deyerle’s residence and storage units associated with Deyerle. Law enforcement recovered a gun and 100 grams of heroin from Deyerle’s residence, and 450 grams of heroin and several pounds of methamphetamine from storage units. Deyerle admitted that she had received 200 pounds of methamphetamine during her involvement in the drug trafficking organization.
Deyerle was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Deyerle was sentenced to 210 months’ imprisonment, and she must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
Deyerle is being held in the United States Marshal’s custody until she can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Dillan Edwards. This case was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Tri-County Drug Enforcement Task Force, the Federal Bureau of Investigation, the Iowa Division of Narcotics Enforcement, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Black Hawk County Sheriff’s Office, the Green County Sheriff’s Office, and the Elbert County, Colorado Sheriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-CR-02014.
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Kansas Men Sentenced to Prison for Bank RobberiesRead the Press Release
KANSAS CITY, KAN. – A Kansas man was sentenced to prison for his participation in a pair of armed bank robberies in which he fired several shots, including one at a customer about to enter the bank.
In August 2021, a federal jury convicted Michael Shiferaw, 23, of Olathe of two counts of armed bank robbery and two counts of discharging a firearm in connection with a bank robbery. This week a federal judge sentenced Shiferaw to 28 years in prison.
Prior to Shiferaw’s trial, accomplice Kenya Breakfield, 23, of Olathe pleaded guilty to one count of armed bank robbery and one count of discharging a firearm in connection with a bank robbery. Breakfield was sentenced in September 2021 to 76 months in prison.
In October 2018, Shiferaw and Breakfield went into a Wells Fargo bank in Leawood, Kansas, wearing Venom face masks and carrying handguns. Shiferaw fired a shot into the ceiling upon entering. He then pointed a gun at the tellers and forced them to fill a duffel bag with money. As they left the bank, Shiferaw fired another round into the ceiling, yelling “happy holidays”.
In March 2019, the men robbed the Commerce Bank in Roeland Park, Kansas. This time Breakfield stayed in the vehicle as the getaway driver, and Shiferaw entered the bank alone. Shiferaw fired four rounds during the robbery. When tellers attempted to hide under the counter, Shiferaw pointed his gun at them demanding to get into the vault. When one of the tellers attempted to get up, Shiferaw shoved him and pointed a gun at his head.
The defendants were arrested shortly after the second robbery.
The Federal Bureau of Investigation, Olathe Police Department, Leawood Police Department, and Roeland Park Police Department all assisted in the investigation of the case.
Assistant U.S. Attorney Kim Flannigan prosecuted the case.
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Justice Department, Federal Trade Commission and UK Competition and Markets Authority Issue Joint Statement Following the G7 Competition Enforcers SummitRead the Press Release
Leadership of the Department of Justice Antitrust Division and Federal Trade Commission (FTC) attended meetings in London this week as part of the Competition Enforcers Summit, which took place under the 2021 G7 Digital and Technology Track in connection with the United Kingdom’s G7 presidency. The U.S. agencies expressed their appreciation to the UK Competition and Markets Authority (CMA) for hosting them during this event, and for the opportunity to meet in person with the CMA to discuss cooperation between our respective jurisdictions. Following the meeting’s conclusion, the UK CMA, the FTC, and the Antitrust Division of the Department of Justice issue this joint statement.
This week’s Competition Enforcers Summit underscored the similar challenges we face as enforcement agencies. Our meetings highlighted the close relationship among our agencies, underscored that we each view this relationship as a critical element of our respective enforcement programs, and affirmed our intent to strengthening collaboration and coordination with one another.
New and evolving challenges require us to innovate in how we accomplish our missions. And in today’s global economy, our agencies often review the same mergers or confront similar potentially anticompetitive conduct. Given the many parallel investigations, we are committed to working closely together to promote fully informed decision-making and to facilitate best practices on pursuing effective remedies. We also welcome working with other agencies both individually and collectively.
We share common goals and are dedicated to close and regular engagement both at the agency head and staff level, as priorities and resources allow. Deeper recognition of our common cause of tackling anticompetitive conduct and mergers opens up possibilities for us to implement robust cross-border enforcement regimes and achieve success in ways that would elude individual agencies working alone.
Justice Department Launches Investigation of the Mount Vernon Police DepartmentRead the Press Release
Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division and U.S. Attorney Damian Williams for the Southern District of New York (SDNY) announced today that the Justice Department has opened a pattern or practice investigation into the Mount Vernon Police Department (MVPD). The investigation will assess whether MVPD engages in a pattern or practice of discriminatory policing. The investigation will also assess MVPD’s use of force, strip and body cavity searches, and how it handles evidence.
The department will conduct a comprehensive review of MVPD’s systems of accountability, including complaint intake, investigation, review, disposition and discipline. SDNY and the Civil Rights Division will also reach out to community groups and members of the public to learn about their experiences with the MVPD.
Prior to the announcement, department officials informed Mount Vernon Mayor Shawyn Patterson-Howard, MVPD Chief Marcel Olifiers, City Council President Marcus A. Griffith, Commissioner of Public Safety Glenn Scott, and Corporation Counsel Brian Johnson of the investigation.
“An effective and accountable police department is a hallmark of a healthy and well-functioning democracy,” said Assistant Attorney General Kristen Clarke. “The Civil Rights Division is committed to ensuring that law enforcement agencies across our country use their authority in a manner that is constitutional, transparent and free from discrimination.”
“Police officers have tough jobs, and so many do their work honorably, lawfully, and with distinction, respecting the rights of the citizens they have sworn to protect,” said U.S. Attorney Damian Williams. “But when officers break the law, they violate their oath and undermine a community’s trust. We ask that anyone who has information relevant to the investigation into the Mount Vernon Police Department to contact the Department of Justice via email at [email protected] or to call (866) 985-1378.”
The investigation is being conducted pursuant to the Violent Crime Control and Law Enforcement Act of 1994, which prohibits state and local governments from engaging in a pattern or practice of conduct by law enforcement officers that deprives individuals of rights protected by the Constitution or federal law. The Act allows the department to remedy such misconduct through civil litigation. This is the seventy-fourth investigation of a law enforcement agency conducted pursuant to this statute since it was enacted in 1994. The department will be assessing law enforcement practices under the Fourth and Fourteenth Amendments to the United States Constitution, as well as the Safe Streets Act of 1968; and Title VI of the Civil Rights Act of 1964.
The U.S. Attorney’s Office for the Southern District of New York and the Special Litigation Section of the Civil Rights Division, in Washington, D.C., will conduct this investigation. Individuals with relevant information are encouraged to contact the department via email at [email protected] or by calling the toll free phone at (866)-985-1378. Individuals can also report civil rights violations regarding this or other matters using the Civil Rights Division’s new reporting portal, available at www.civilrights.justice.gov.
Information specific to the Civil Rights Division’s Police Reform Work can be found here: . Additional information about the U.S. Attorney’s Office for the Southern District of New York is available on its website at https://www.justice.gov/usao-sdny. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt.
Justice Department Anti-Trafficking Efforts Highlighted in 2021 National Action Plan to Combat Human TraffickingRead the Press Release
Today the White House released the 2021 National Action Plan to Combat Human Trafficking, which lays out a broad-based, multi-disciplinary, whole-of-government approach to addressing this crime and its harmful impacts on crime victims, their communities and our national security. The Action Plan calls upon the U.S. Department of Justice and its partners across the Executive Branch to implement a number of Priority Actions to enhance U.S. efforts to combat human trafficking.
“Human trafficking is an insidious crime that impacts some of the most vulnerable people in our country and around the world,” said Attorney General Merrick B. Garland. “Vindicating the rights of human trafficking victims and other vulnerable individuals ranks among the highest priorities of the Department of Justice. The department welcomes the issuance of this National Action Plan, which will streamline coordination among federal anti-trafficking partners, strengthening our ability to seek justice for victims and hold perpetrators accountable. We are committed to using every tool at our disposal to prevent human trafficking; increase detection, investigation and prosecution of human trafficking crimes; and expand support and services to protect and empower survivors.”
“Human trafficking is an intolerable affront to ideals of liberty, justice and individual rights that disproportionately impacts vulnerable individuals and marginalized communities, including people of color, migrants and refugees, LQBTQI+ people and people living with disabilities,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “This National Action Plan, developed through extensive collaboration among leading anti-trafficking experts, reflects the Civil Rights Division's steadfast commitment to making our nation’s fight against human trafficking more effective than ever before. We will use every available tool to hold perpetrators of human trafficking accountable for their crimes while pursuing justice on behalf of survivors.”
“Human trafficking exploits adults and children at the most fundamental levels – targeting dignity, self-governance, even freedom,” said Assistant Attorney General Kenneth A. Polite Jr. for the Justice Department’s Criminal Division. “These are crimes that call upon our most fundamental instincts to protect survivors and prosecute offenders. Through this National Action Plan the Justice Department, alongside its public and private partners, commits once again to answer this call, re-focus our efforts and deliver justice.”
Attorney General Garland has already taken steps to deepen and strengthen the department’s work alongside our federal partners to assess the threat presented by human trafficking and mitigate the vulnerabilities that expose victims to exploitation and abuse. The department’s anti-trafficking experts worked closely with law enforcement and intelligence community agencies throughout 2021 to produce a comprehensive, interagency Human Trafficking Intelligence Assessment. This interagency Intelligence Assessment, finalized in July 2021, continues to inform Executive Branch policies, strategies and priorities in response to complex, evolving human trafficking threats.
Furthermore, in June 2021, the Attorney General launched Joint Task Force Alpha (JTFA), in partnership with the U.S. Department of Homeland Security and other law enforcement agencies, to combat smuggling and trafficking in persons from Guatemala, El Salvador, Honduras and Mexico. The Task Force is working within the United States and with our foreign partners to dismantle criminal networks that subject smuggled migrants to dangerous, abusive and exploitive conditions and that engage in human trafficking.
The department is grateful to survivor experts, including the U.S. Advisory Council, and other stakeholders who were consulted for their expertise during the development of the National Action Plan. The plan emphasizes the use of victim-centered and trauma-informed approaches that are necessary for success in all of our anti-trafficking efforts. The department will play a lead role in implementing the following Priority Actions, among others:
- Expand interagency enforcement initiatives aimed at increasing high impact prosecutions of forced labor, sex trafficking of adults by force, fraud or coercion and transnational sex trafficking, and work with the Department of Homeland Security to launch a labor trafficking enforcement initiative.
- Engage relevant stakeholders, including state, local, tribal and territorial law enforcement and survivors and survivor organizations, to strengthen their prosecutions related to child sex trafficking.
- Dismantle organized criminal human trafficking enterprises by targeting their financial networks, communication systems and other infrastructure, and by targeting facilitators of human trafficking.
- Develop improved technology for human trafficking interdiction and identify technical barriers impeding investigations.
- Enhance capabilities to locate children who are missing, including those who have run away from foster care, and are vulnerable to human trafficking.
- Ensure the safety and well-being of human trafficking victims in the course of FBI investigations by using and promoting a victim-centered, trauma-informed approach among all federal, state, local, territorial and tribal law enforcement partners.
- Conduct comprehensive training covering the collection of restitution and transfer of forfeited funds to victims.
- Prioritize the Office for Victims of Crime’s housing program to support safe, stable housing options for human trafficking victims.
- Consider enhancements to the model task forces program to increase collaboration between victim services, law enforcement, and community and survivor stakeholders.
- Seek to establish federally-funded human trafficking task forces that are sustainable and state, tribal, territorial or locally-led.
- Release a self-guided training on integrating trauma-informed engagement in supporting individuals and communities impacted by human trafficking.
- Support research and develop the evidence needed to better prevent and respond to trafficking in persons in the United States.
To view the National Action Plan, click here: https://www.whitehouse.gov/wp-content/uploads/2021/12/National-Action-Plan-to-Combat-Human-Trafficking.pdf
Jury finds North Carolina man guilty for lying during sentencing in previous case involving theft of company’s trade secretsRead the Press Release
SAVANNAH, GA: A North Carolina man previously convicted for conspiring to steal trade secrets from aircraft manufacturing companies faces additional prison time after a federal jury convicted him for committing perjury in his prior case and for providing false statements to a government agency, namely the FBI.
Craig German, 60, of Kernersville, N.C., was convicted on charges of Perjury and False Statements to a Government Agency after a three-day jury trial in U.S. District Court, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia.
The jury found that German was guilty of committing perjury during the sentencing portion of his prior case when he elected to testify under oath and denied having copied more than 15,000 proprietary engineering drawings and documents onto a removable storage device while he was employed at an aircraft manufacturing company. Additionally, the jury found that German was guilty of providing a materially false statement to the FBI during a voluntary meeting when he emphatically denied copying, taking or otherwise transferring more than 15,000 proprietary engineering drawings and documents to a removable storage device.
“Craig German was found guilty by a jury of his peers for trying to undermine our criminal justice system,” said Acting U.S. Attorney Estes. “In choosing to meet with the FBI and to testify at his previous sentencing hearing, German was obligated to tell the truth. Instead, German attempted to deceive the Court and the FBI about his own theft of his former employer’s intellectual property.”
“Not only did German engage in illegal and deceptive practices to steal trade secrets, but he also blatantly committed perjury,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI will not tolerate anyone who tries to deceive the justice system. Hopefully this conviction sends the message that those who try to manipulate and lie to the court will always face additional punishment.”
German faces up to five years in federal prison for each charge. In February 2020, German was sentenced to 70 months’ imprisonment after pleading guilty to one count of Conspiracy to Steal Trade Secrets.
The case was investigated by the FBI and prosecuted for the United States by Assistant U.S. Attorneys Jennifer G. Solari and Steven H. Lee.
Jury convicts Cincinnati man of trafficking fentanylRead the Press Release
CINCINNATI – A federal jury has convicted Lelon Campbell, 28, of Cincinnati, with distributing and possessing with the intent to distribute fentanyl and cocaine.
The verdict was announced today following a trial that began on Nov. 29 before U.S. District Judge Douglas R. Cole.
According to court documents and trial testimony, in June 2018, Campbell distributed fentanyl. In October 2018, he possessed more than 130 grams of fentanyl and approximately 27 grams of cocaine.
A federal grand jury returned a second superseding indictment against Campbell in November 2021. He was originally charged in 2019.
Campbell will be sentenced at a future hearing. He faces at least five years and up to 40 years in prison. Congress sets the maximum statutory sentence. Sentencing of the defendant will be determined by the Court based on the advisory sentencing guidelines and other statutory factors.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Ronald H. Herndon, Jr., Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Cincinnati Police Chief Eliot K. Isaac announced today’s verdict. Special Assistant United States Attorney John Zachary Kessler from the Cincinnati City Solicitor’s Office and Assistant United States Attorney Timothy D. Oakley represented the United States in this case.
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Judge Sentences Mercer County Woman to 9 Years for Distributing Sexual Images of a MinorRead the Press Release
PITTSBURGH – A former Mercer County resident has been sentenced in federal court to nine years’ imprisonment and five years’ supervised release on her conviction of Distribution of Material Depicting the Sexual Exploitation of a Minor, United States Attorney Cindy K. Chung announced today.
United States District Judge Cathy Bissoon imposed the sentence on Mary Jacobs, age 29, formerly of Farrell, Pennsylvania.
According to information presented to the court, from February 27, 2017 through February 28, 2017, Jacobs distributed approximately 11 still images depicting the sexual exploitation of a minor to an individual using “Skout”, an online chat forum. Jacobs had been communicating online with the individual for a short period and she acknowledged producing the images at his request. The child victim had not yet attained the age of 12 years. That individual to whom she sent the imagery is currently serving a 15-year term of imprisonment in the State of Florida for offenses involving possession of child sexual abuse material and related offenses.
Prior to imposing sentence, Judge Bissoon stated that she was granting a departure from the advisory guideline range based upon the totality of the circumstances, which included Jacobs’ intellectual disabilities.
Assistant United States Attorney Carolyn J. Bloch prosecuted this case on behalf of the government.
United States Attorney Chung commended the Pennsylvania State Police for the investigation leading to the successful prosecution of Jacobs.
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.justice.gov/psc.
Jahlil Marsh Sentenced for Fentanyl, Methamphetamine ConspiracyRead the Press Release
The United States Attorney for the District of Vermont announced that Jahlil Marsh, 28, formerly of Stowe, Vermont, was sentenced today by Chief U.S. District Court Judge Geoffrey W. Crawford. Marsh previously pleaded guilty to a superseding information charging him with participating in a drug trafficking conspiracy. Judge Crawford imposed a sentence of 60 months of imprisonment, to be followed by a three-year term of supervised release.
Marsh was already serving a term of supervised release stemming from a prior federal felony drug conviction at the time he engaged in the drug conspiracy charged in the superseding information. Judge Crawford imposed an 18-month term of imprisonment, to run concurrently with Marsh’s new 60-month sentence, following Marsh’s admission that he violated the terms of his supervised release when he committed this new offense.
According to court records and statements made on the record in court, Marsh participated in a conspiracy to distribute fentanyl and methamphetamine in Vermont and New Hampshire between February and June of 2021. In the course of this conspiracy, Marsh both sold and arranged the sale of controlled substances including fentanyl and methamphetamine.
Assistant U.S. Attorney Spencer Willig prosecuted this case, which was investigated by the Department of Homeland Security, Homeland Security Investigations. The defendant is represented by Michael C. Shklar, Esq.
Isleta man sentenced to three years in prison for domestic assault in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Anthony Lucero, 36, of Isleta, New Mexico, and an enrolled member of the Pueblo of Isleta, was sentenced today in federal court to three years and one month in prison for domestic assault by a habitual offender. Lucero pleaded guilty on Feb. 10.
According to the plea agreement, on Nov. 13, 2019, Lucero assaulted his girlfriend. Lucero admitted to punching the victim in the face causing substantial bodily injury. The assault occurred on the Isleta Pueblo.
Prior to the assault, Lucero had been convicted in tribal court on three separate occasions of offenses that would be considered assaults against an intimate partner.
The Bureau of Indian Affairs and the Isleta Police Department investigated the case. Assistant U.S. Attorneys Alexander Flores, Raquel Ruiz-Velez and Joseph Spindle prosecuted the case.
International Drug Trafficking Organization Member Sentenced for Trafficking over a Thousand Kilograms of CocaineRead the Press Release
RICHMOND, Va. – A Guatemalan national was sentenced today to 172 months in prison for his role as a maritime transportation manager in a large-scale Guatemalan drug trafficking organization (DTO).
According to court documents, beginning in 2016, Amilcar Chavez-Barrera, 42, conspired to distribute over 1,000 kilograms of cocaine for distribution into the United States. Chavez-Barrera managed and coordinated the maritime transportation of cocaine off the Pacific Coast of Guatemala onto the Guatemalan mainland. In this leadership role, Chavez-Barrera worked for a maritime transportation cell contracted by the DTO and managed the boats that picked up cocaine loads approximately 100 miles off the coast of Guatemala and transported the cocaine to the Guatemalan mainland. Chavez-Barrera coordinated the maritime transportation of 1,500 kilograms of cocaine from the Pacific Ocean to mainland Guatemala, where the cocaine was offloaded for further ground transportation through Central America.
On July 1, 2020, Luis Pedro Fuentes Amaya, a co-defendant of Chavez-Barrera, was sentenced to 192 months for his role in the cocaine trafficking conspiracy on behalf of the DTO. On August 10, 2021, Edi Donaldo Barrera-Salguero, another co-defendant of Chavez-Barrera, was sentenced to 210 months for his role in the cocaine trafficking conspiracy on behalf of the DTO.
This prosecution is part of the Organized Crime and Drug Enforcement Task Force (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Jarod Forget, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Division, made the announcement after sentencing by Senior U.S. District Judge Henry E. Hudson.
Assistant U.S. Attorneys Heather Hart Mansfield and Erik S. Siebert 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. 3:19-cr-18.
Inmate admits to assault, sentencedRead the Press Release
CLARKSBURG, WEST VIRGINIA – Timothy Terrazas, and inmate at United States Penitentiary Hazleton in Bruceton Mills, West Virginia, has admitted to assault and was sentenced today to an additional 24 months of incarceration, United States Attorney William J. Ihlenfeld, II announced.
Terrazas, 33, pleaded guilty today to one count of “Assault with a Dangerous Weapon with Intent to do Bodily Harm.” Terrazas admitted to assaulting another inmate in March 2021 in Preston County.
Assistant U.S. Attorney Christopher L. Bauer prosecuted the case on behalf of the government. The Bureau of Prisons investigated.
U.S. District Judge Thomas S. Kleeh presided.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on Dec. 1 was:
Dillon James Wippert, 26, of East Glacier and Washington, on charges of second degree murder and use of a firearm during and in relation to a crime of violence. If convicted of the most serious crime, Wippert faces a maximum of life in prison, a $250,000 fine and five years of supervised release on the murder crime and a mandatory minimum of 10 years to life in prison, consecutive to any other term of imprisonment, a $250,000 fine and five years of supervised release on the firearms crime. Wippert was detained pending further proceedings. The FBI and Blackfeet Law Enforcement Services investigated the case. PACER case reference. 21-74.
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on Nov. 30 was:
Richard Daniel White, 35, of Butte, on charges of prohibited person in possession of firearms and ammunition. If convicted of the most serious crime, White faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release. White was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives, Montana Probation and Parole and Butte Silver Bow Law Enforcement. PACER case reference. 21-40.
Appearing on Nov. 29 was:
Chet Norman Andersen, 44, of Bozeman, on charges of felon in possession of a firearm. If convicted of the most serious crime, Andersen faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release. Andersen was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Montana Probation and Parole investigated the case. PACER case reference. 21-36.
Lassana Diaby, 40, of Missoula, on charges of theft of mail by officer or employee. If convicted of the most serious crime, Diaby faces a maximum of five years in prison, a $250,000 fine and three years of supervised release. Diaby was released pending further proceedings. The U.S. Postal Service Office of Inspector General investigated the case. PACER case reference. 21-51.
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Dec. 3 was:
John Aaron Champ, 41, of Crow Agency, on charges of assault resulting in serious bodily injury. If convicted of the most serious crime, Champ faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release. Champ was detained pending further proceedings. The FBI investigated the case. PACER case reference. 21-70.
Appearing on Nov. 30 was:
Erik Stephen Deaner, 46, of Billings, on charges of theft from federal firearm licensee, possession of stolen firearms and prohibited person in possession of firearms. If convicted of the most serious crime, Deaner faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release. Deaner was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 21-96.
Denise Danielle Piccione, 37, a transient, on charges of conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute meth. If convicted of the most serious crime Piccione faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Piccione was released pending further proceedings. The Eastern Montana High Intensity Drug Trafficking Area Task Force investigated the case. PACER case reference. 21-25.
Cecil Jerome Hatchett, 31, of Las Vegas, Nevada, on charges of conspiracy to transport a minor with intent to engage in prostitution. If convicted of the most serious crime, Hatchett faces a mandatory minimum 10 years to life in prison, a $250,000 fine and three years of supervised release. Hatchett was detained pending further proceedings. The FBI investigated the case.PACER case reference. 21-41.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Healthcare System to Pay $150,000 to Settle Controlled Substances Act AllegationsRead the Press Release
NEWARK, N.J. – A nonprofit healthcare system that owns and operates a network of healthcare entities has agreed to pay $150,000 to resolve allegations that it violated the Controlled Substances Act, Acting U.S. Attorney Rachael A. Honig announced today.
According to documents filed in this case and the contentions of the United States contained in the settlement agreement:
In July 2016, Virtua Health Inc., which owned and operated Virtua Voorhees Hospital through a subsidiary, reported to the Drug Enforcement Administration (DEA) that 400 tablets of oxycodone 30mgs had been lost or stolen from the inpatient pharmacy at the hospital. An investigation conducted by diversion investigators from the DEA revealed that from Oct. 8, 2015, through Nov. 2, 2016, Virtua Health failed to keep an accurate inventory of controlled substances, failed to keep the controlled substances in a secure location, and failed to properly supervise its employees concerning the controlled substances.
Acting U.S. Attorney Honig credited diversion investigators of the DEA, under the direction of Special Agent in Charge Susan A. Gibson in Newark, with the investigation leading to the agreement.
The government is represented by Assistant U.S. Attorney Kruti D. Dharia of the U.S. Attorney’s Opioid Abuse Prevention and Enforcement Unit in Newark.
The claims settled by this agreement are allegations only, and there has been no determination of liability.
Hamilton County Woman Pleads Guilty to Meth PossessionRead the Press Release
A woman who possessed with intent to distribute methamphetamine pled guilty December 2, 2021, in federal court in Sioux City.
Kelly Beightol, 41, from Webster City, Iowa, was convicted of possessing methamphetamine with intent to distribute. Beightol was previously convicted of Possession of More Than 5 Grams of Methamphetamine With the Intent to Deliver, and Delivery of Less Than 5 Grams of Methamphetamine, in the Iowa District Court for Webster County, on or about December 23, 2015.
At the plea hearing, Beightol admitted that on September 6, 2021, during a traffic stop in Hardin County, Iowa, she was found in possession of about 53 grams of pure methamphetamine and ½ pound of marijuana. Law enforcement also seized indicia of drug distribution, including drug packaging, a digital scale, two cellular telephones, and nearly $1,700 in cash. Beightol said she intended to distribute some or all of the methamphetamine to another person or persons.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Beightol remains in custody of the United States Marshal pending sentencing. Beightol faces a mandatory minimum sentence of 5 years’ imprisonment and a possible maximum sentence of 40 years’ imprisonment, a $5,000,000 fine, and at least four years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by Iowa Division of Narcotics Enforcement, the Hardin County Sheriff’s Office, the Iowa Division of Criminal Investigation Laboratory, the Hamilton County Sheriff’s Office and the Webster City Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-3035.
Follow us on Twitter @USAO_NDIA.
Gold Dealers Sentenced for Financial Crimes and Gun CrimesRead the Press Release
Assistant U. S. Attorney Daniel Silva (619) 546-9713
NEWS RELEASE SUMMARY—December 3, 2021
SAN DIEGO – Global Gold Exchange, LLC and its managers, Richard M. Owen, James Warren, and Jeffrey Morrow, were sentenced in federal court today for committing multiple financial and firearms crimes, including laundering money through their unlicensed money transmitting business by falsely reporting transactions as “gold” and other precious metals.
Following entry of guilty pleas across 2019 and 2020, U.S. District Court Judge Cathy Ann Bencivengo sentenced each of the individual defendants to a term of incarceration. Owen received a custodial sentence of 24 months on his money laundering and felon-in-possession of firearm convictions. Warren and Morrow received custodial sentences of 6 and 8 months, respectively, on their convictions for operating an unlicensed money transmitting business.
As part of their sentences, the defendants agreed to forfeit approximately $2 million in assets involved in the money laundering and unlicensed money transmitting business, and further to provide restitution in the amount of no less than $3,682,063.44 for the crimes of money laundering, mail fraud, and operating an unlicensed money transmitting business. Each defendant is subject to a three-year term of supervised release following their custodial sentences.
Special Agents from IRS-Criminal Investigation’s Financial Investigations and Border Crimes Task Force worked with FBI agents and the United States Postal Inspection Service during the multi-year investigation to unravel millions of dollars in suspicious transactions taking place at the San Diego-based office and bank accounts of Global Gold Exchange, or “GGEX.”
Taken together, the defendants unlawfully laundered cash and funds from a variety of sources—both lawful and unlawful—and fraudulently documented the transactions as “a complete gold transaction.” Their crimes were best summed up in plea agreements that were previously entered by all four defendants, which admitted to operating GGEX “as an informal money transfer system engaged in facilitating the transfer of money domestically and internationally outside of the conventional financial institutions system, and did so without regard for the source, destination, purpose, or legality of the funds transmitted.”
Several victims addressed the court and the defendants, describing how they had “stolen our dignity,” “robbed us of peace of mind,” and “hurt people at a very deep level.” After reviewing the underlying facts of the case and handing down the sentences, Judge Bencivengo stated that the defendants’ crimes allowed people to “hide assets and improper transactions” while causing “irreparable harm” to the victims.
“Global Gold Exchange and its managers attempted to operate as a one-stop-shop for money laundering,” said Acting United States Attorney Randy S. Grossman. “The sentences handed down today make clear that the United States will pursue and prosecute any individual, asset, or business attempting to launder the proceeds of crimes, or that threaten the integrity of our financial system.”
Between 2017 and 2018, defendants GGEX, Owen, Warren, and Morrow employed various money laundering, fraud, and unlicensed money transmitting techniques to conduct unlawful transactions through GGEX and GGEX’s bank accounts, including transacting with a “local cartel out of Mexico;” falsifying invoices for sales of gold, when in reality it was the receipt of a large cash deposit, and returned by check after GGEX took a 10 percent fee; agreeing with “clients” to tell law enforcement or tax authorities that the transactions were sales/purchases of precious metals; and advising clients to mail GGEX parcels filled with heavy substances to mimic the weight of gold, all to falsely document the nature of GGEX’s transactions.
“Today’s sentences demonstrate IRS Criminal Investigation’s commitment to disrupting professional enablers, who facilitate the commission and concealment of financial crimes by veiling them behind legitimate business services,” said Special Agent in Charge Ryan L. Korner of the Los Angeles Field Office. “Targeting organizations such as Global Gold Exchange, LLC and its managers, who used their expertise of our financial systems to launder illicit funds, eliminates this avenue for criminal activity.”
“The FBI is proud to partner with IRS Criminal Investigations and the United States Postal Inspection Service to bring our collective authorities to bear in money laundering and fraud cases such as these,” said FBI Special Agent in Charge Suzanne Turner. “Today’s sentences should serve as a deterrent to those who seek to launder criminal proceeds by exploiting our financial system. The FBI and our federal partners will continue to bring all available resources to stop the flow of money to criminal organizations.”
“Today’s sentencing makes a statement to those who use the U.S. Mail to commit fraud,” stated Carroll N Harris, Postal Inspector in Charge of the Los Angeles Division, United States Postal Inspection Service. “Instead of seeing gold bars, these fraudsters will be behind prison bars. As always, Postal Inspectors remain committed to keeping the mail free from fraudulent mailings and will hold those that do accountable for their crimes.”
This case is the result of ongoing efforts by the Financial Investigations and Border Crimes Task Force, a partnership targeting unlawful transactions through the financial system. The task force brings together the combined expertise of federal, state, and local law enforcement including IRS-CI, California Franchise Tax Board, United States Postal Inspection Service, and the San Diego Police Department. FBI and United States Postal Inspection Service partnered with the FIBC in this coordinated investigation, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case is being prosecuted by Assistant U.S. Attorney Daniel Silva.
DEFENDANTS Case Numbers: 19-CR-2936-CAB; 20-CR-3748-CAB
Global Gold Exchange, LLC
Richard M. Owen San Diego, CA Age: 52
James Warren San Diego, CA Age: 50
Jeffrey Morrow San Diego, CA Age: 46
SUMMARY OF COUNTS OF CONVICTION
Money Laundering – Title 18, U.S.C., Section 1956
Maximum penalty: Twenty years in prison and $500,000 fine
Operation of Unlicensed Money Transmitting Business – Title 18, U.S.C., Section 1960
Maximum penalty: Five years in prison and $250,000 fine
Mail Fraud – Title 18, U.S.C., Section 1341
Maximum penalty: Thirty years in prison and $1 million fine
Unlawful Possession of Firearm – Title 18, U.S.C., Section 922(g)
Maximum penalty: Ten years in prison and $250,000 fine
AGENCIES
IRS Criminal Investigation and the Financial Investigations and Border Crimes Task Force
Federal Bureau of Investigation
United States Postal Inspection Service
Fort Wayne Man Convicted of Federal Gun and Drug OffensesRead the Press Release
FORT WAYNE- Torrence Larry, 44, of Fort Wayne, Indiana, was convicted of federal drug and gun charges on December 2, 2021, following a three-day jury trial before United States District Court Judge Holly A. Brady, announced United States Attorney Clifford D. Johnson.
According to documents in this case, in May and June of 2017, Larry sold cocaine and heroin from his residence while under investigation by law enforcement. In June of 2017, officers served a search warrant at Larry’s residence and located quantities of cocaine, crack cocaine, and methamphetamine. Officers also found additional evidence of drug dealing and a firearm possessed by Larry to facilitate and protect his drug trafficking.
Larry was convicted of all three dealing counts, as well as the single count for possessing with intent to distribute controlled substances. Larry was convicted of both gun charges. He was convicted of possession of a firearm based upon his previous armed bank robbery conviction in federal court and his state drug dealing conviction. The jury also found Larry guilty of possessing the firearm in furtherance of his drug trafficking offense.
Larry’s sentencing is scheduled for March 16, 2022. Any specific sentence to be imposed will be determined by the District Court Judge after consideration of federal sentencing statutes and the United States Sentencing Guidelines.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the Fort Wayne Police Department, the Drug Enforcement Administration, the Drug Enforcement Administration Laboratory, and the Indiana State Police Laboratory. This case is being prosecuted by Assistant U.S. Attorney Stacey R. Speith.
This case was 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.
Fort Myers Beach Man Pleads Guilty to FEMA FraudRead the Press Release
Fort Myers, Florida – Roberto Armando Mimmo (60, Fort Myers Beach) has pleaded guilty to fraud in connection with a major disaster. Mimmo faces a maximum penalty of 30 years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, on September 15, 2017, Mimmo applied for Federal Emergency Management Agency (FEMA) assistance for his residence, a houseboat, located at 18600 San Carlos Boulevard, in Fort Myers Beach. Mimmo claimed he was residing at the houseboat at the time of Hurricane Irma (a federally declared disaster), and that the houseboat had sunk as result of damage caused by the hurricane. An investigation revealed the houseboat had sunk months prior to Hurricane Irma’s landfall, in December of 2016. As a result of Mimmo’s fraudulent representation, FEMA approved and issued Mimmo more than $35,000 in home repair and rental assistance.
This case was investigated by the U.S. Department of Homeland Security – Office of Inspector General. It is being prosecuted by Assistant United States Attorney Trent Reichling.
Fort Leonard Wood Pharmacist Charged with Knife AttackRead the Press Release
SPRINGFIELD, Mo. – A civilian pharmacist at Fort Leonard Wood, Missouri, was charged in federal court today with assaulting his supervisor with a knife and stabbing him multiple times.
Robert E. Sapp, 63, was charged in a complaint filed in the U.S. District Court in Springfield, Mo., with one count of assault with a dangerous weapon with the intent to do bodily harm. Sapp remains in federal custody.
According to an affidavit filed in support of today’s criminal complaint, Sapp was working at a dispensing window at the Post Exchange Pharmacy at Fort Leonard Wood when he was approached by the supervisory pharmacist. Another employee told investigators the two men started arguing, then tumbled to the ground. The witness said she saw Sapp standing over the victim with a knife in his hand, stabbing him. When she asked Sapp, “What are you doing?” he put the knife in his pocket and fled from the pharmacy.
Two bystanders chased Sapp to the parking lot, the affidavit says. They saw Sapp get into a vehicle, which they tried to stop, but Sapp backed up and almost hit one of them, who jumped out of the way, and then Sapp drove off.
Military Police Service activated a barrier to prevent anyone from exiting the installation through the main gate. Sapp was detained by military police while attempting to flee in his vehicle. When Sapp was removed from his vehicle, the affidavit says, he had a knife in his pocket with visible hair and blood on it. The vehicle also had visible blood on the interior of the driver’s side door, and Sapp had blood on his clothing.
The victim was transported to the General Leonard Wood Army Community Hospital and was treated for non-life-threatening injuries. Medical personal reported that he has multiple stab wounds, including multiple stab wounds to his head.
The charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorneys Ami Harshad Miller and Jessica R. Sarff. It was investigated by the U.S. Army Criminal Investigation Command.
Former governor of the Laguna Pueblo sentenced to four years in federal prison for sexual abuse in Indian CountryRead the Press Release
ALBUQERQUE, N.M. – Conrad Lucero, 71, of Mesita, New Mexico, and an enrolled member of the Laguna Pueblo, was sentenced in federal court on Oct. 28 to four years in prison for sexual abuse in Indian Country. Lucero is a former governor of the Laguna Pueblo.
Lucero pleaded guilty on April 23. According to the plea agreement, on March 20, 2019, Lucero sexually abused Jane Doe while she was staying at his residence in Cibola County, New Mexico, on the Laguna Pueblo. Lucero approached the victim while she slept and engaged in sexual contact without her consent.
After his release from prison, Lucero will be subject to five years of supervised release and must register as a sex offender.
The Bureau of Indian Affairs investigated this case with assistance from the Laguna Pueblo Police Department and the Isleta Pueblo Police Department. Assistant U.S. Attorney Fredrick T. Mendenhall and Kyle T. Nayback prosecuted the case.
Former Netflix engineer sentenced to prison for insider tradingRead the Press Release
Seattle – A former Netflix software engineer, and his best friend and co-conspirator were sentenced today in U.S. District Court in Seattle for securities fraud for their roles in an insider trading ring that generated more than $3 million in illegal proceeds, announced U.S. Attorney Nick Brown. Sung Mo Jun, 49, of Bellevue, Washington, was sentenced to 2 years in prison and a $15,000 fine. His friend and co-conspirator Junwoo Chon, 50, of Bellevue, Washington, was sentenced to 14 months in prison and a $10,000 fine. At the sentencing hearings U.S. District Judge Richard A. Jones said he hoped the prison time would deter others. “For people in the high tech industry, they will clearly know that there are consequences – including prison time – for this activity,” Judge Jones said.
“Insider trading is a serious offense,” said U.S. Attorney Nick Brown. “Such conduct damages our financial markets and erodes public trust because the investing public needs to have faith that the markets provide an even playing field to all participants. Mr. Jun and Mr. Chon were both financially secure with good jobs and good salaries when greed drove them to break the law to increase their own wealth, at the expense of others. Such conduct, will not be tolerated.”
“Insider trading undermines our capital markets, harms companies by misusing their confidential information, and causes investors to lose faith in the fairness of the system,” said Donald M. Voiret, Special Agent in Charge, Seattle Field Office. “The actions of this trusted employee and his friend were calculated and ongoing to reap a huge profit.”
According to records filed in the case, from July 2016 to February 2017, Sung Mo Jun was employed by Netflix as a software engineer. He had access to subscriber data and had been trained by the company that such data was material, non-public information. Nevertheless, Jun disclosed that information to his brother Joon Jun, 45, of Issaquah, Washington, and his close friend, Junwoo Chon, knowing that the two intended to use the information to profit on the purchase and sale of Netflix securities. After Chon made significant profits on the securities, Sung Mo Jun asked Chon to provide Sung Mo Jun with $60,000 in cash as Sung Mo Jun’s share of the profits.
After Sung Mo Jun left Netflix, he obtained additional non-public information about subscriber data from another Netflix employee, software engineer Ayden Lee, 33, of San Jose, California. Jun not only passed that information on to his brother and Chon, he also used it to make his own trades. Between April 2017, and July 2019, Sung Mo Jun made a profit of $434,086 by trading in Netflix stock and options with this inside information. Between July 2016 and April 2017, Jun’s brother, Joon Jun, made $215,419 and co-conspirator Junwon Chon made $521,400. All told, the insider trading attributable to Sun Mo Jun in Netflix securities resulted in an illicit gain of $1,170,905. Chon is responsible for illicit profits of $1,642,855
Sung Mo Jun also obtained insider information from a “tipper” he knew at another tech company and shared this information with his brother and Chon. Their profits from trading on that inside information was less than $2,000.
In addition to the prison sentences, both men will be on one year of supervised release following prison and must complete 50 hours of community service.
As Judge Jones imposed the sentence, he told Jun “You had no reason to pursue this additional wealth, and yet you chose to engage your brother and best friend in this scheme. There is just one reason: greed.”
Jun told the court, “What I did was foolish, wrong, illegal…. I have no excuse. I disappointed many people.”
Jun is forfeiting $495,188 to the U.S. and Chon is forfeiting $1,582,885 to the U.S. The forfeiture amounts are based on the illegal gain by each defendant.
The two remaining conspirators will be sentenced next year. Joon Jun is responsible for illicit profits totaling $1,106,208. Lee is connected to illicit profits totaling $453,465.
The Securities and Exchange Commission (SEC) has filed a separate civil enforcement action against the defendants who have each entered into settlements with the SEC. Both men still face potential penalties from the SEC.
The case was investigated by the FBI and is being prosecuted by Assistant United States Attorney Justin Arnold.
Florida man sentenced for defrauding W.Va. churches, citizensRead the Press Release
CLARKSBURG, WEST VIRGINIA – Phillip W. Conley, of Jacksonville, Florida, was sentenced today to 87 months in prison for defrauding West Virginia churches, pastors, and others of nearly $5 million, United States Attorney William J. Ihlenfeld, II announced.
Conley, 38, previously pleaded guilty to one count of “Securities Fraud,” admitting to swindling millions of dollars from victims in multiple states.
Conley portrayed himself as an investment advisor even after his broker’s license was suspended in December 2015. He formed a company called ALPAX, LLC, and persuaded victims to invest in false ventures such as student housing construction, high-yield fixed income securities, oil and gas technology, mineral rights, and timber leasing. Conley provided investors with a false sense of security by mailing them dividend statements that misstated the value of the investment accounts.
Conley’s victims included churches in Charleston, Parkersburg and Morgantown. Small business owners were also victimized, along with friends and family members of Conley. He spent the stolen money on private jets, designer clothes, fine dining, jewelry, and housing and living expenses.
“Securities fraud is a terrible crime and often has a devastating impact,” said United States Attorney Ihlenfeld. “Mr. Conley was very persuasive and groomed his victims, convincing them that these were legitimate investment opportunities. Unfortunately, it was a scam in which Conley robbed investors of their life savings.”
Ihlenfeld urges anyone considering investing with a stockbroker to first visit brokercheck.finra.org to learn whether a broker has been suspended or sanctioned.
“Mr. Conley lived a luxurious life, but in reality, lined his pockets by orchestrating a multi-million-dollar fraud scheme that took money from his own family members and other victims," said FBI Pittsburgh Special Agent in Charge Mike Nordwall. “His victims trusted him to safeguard their money and he betrayed their trust. Today's sentence sends the message that he can't escape accountability for his actions."
In addition to the prison sentence, Conley was ordered to forfeit any property purchased from the proceeds of the crimes and to pay a money judgement of $4,858,817.42.
Assistant U.S. Attorney Danae DeMasi-Lemon prosecuted the case on behalf of the government. The FBI investigated.
U.S. District Judge Thomas S. Kleeh presided.
Fitchburg Woman Pleads Guilty to Role in Fentanyl, Heroin, Crack and Cocaine ConspiracyRead the Press Release
BOSTON – A Fitchburg woman pleaded guilty today in federal court in Worcester to her role in a wide-ranging fentanyl, heroin, cocaine and crack cocaine trafficking conspiracy.
Amanda Ford, 35, pleaded guilty to conspiracy to distribute and possession with intent to distribute fentanyl, heroin, cocaine and cocaine base. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for March 22, 2022. Ford was charged along with 17 others in July 2020.
According to court documents, following a fatal fentanyl overdose in September 2018, law enforcement began an investigation into a drug trafficking organization (DTO) in the Fitchburg area led by co-conspirators Pedro Baez and Anthony Baez. Beginning in July 2019, intercepted electronic communications between Pedro and Anthony Baez and other members of the DTO revealed that Ford worked with Pedro and Anthony Baez to distribute a fentanyl and heroin mixture and crack cocaine on a regular basis to individuals in the Fitchburg area who then redistributed that mixture to others.
Over the course of the investigation, agents seized over 1.8 kilograms of a heroin and fentanyl mixture, over 3.6 kilograms of cocaine and over 50 grams of crack cocaine, as well as a stolen, loaded handgun, drug manufacturing equipment and over $376,000.
Ford is the 10th defendant to plead guilty in the case. In December 2020, Anthony Baez was sentenced by Judge Hillman to 13 years in prison. Defendants Pedro Baez, Monica Troche, Valerie Lucier, Shastaalena Blair, Ricky Figueroa, Hector Matos, Rafael Hidalgo Rodriguez, and Pablo Vidarte Hernandez have also pleaded guilty to the superseding indictment.
The charge of conspiracy to distribute fentanyl, heroin, cocaine, and cocaine base, provides for a sentence of up to life in prison, a term of supervised release of at least three years and up to life, and a fine of up to $10 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police made the announcement today. Valuable assistance was provided by the Fitchburg and Lunenburg Police Departments; the U.S. Postal Inspection Service; and the Massachusetts State Police. Assistant U.S. Attorney Alathea Porter, of Mendell’s Narcotics and Money Laundering Unit, is prosecuting the case.
The operation was conducted is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.
The details contained in the indictment are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Felon Sentenced for Illegal Possession of Firearms and Witness TamperingRead the Press Release
NORFOLK, Va. – A Norfolk man was sentenced today to 17.5 years in prison for illegally possessing firearms as a felon, four counts of witness tampering and obstruction of justice, and one count of unlawful possession of a controlled substance.
According to court documents, in October and November 2017, Adonis Marquis Perry, 32—a five-time convicted felon who had sustained two state convictions and one federal conviction for being a felon in possession of firearms and ammunition—took pictures of himself holding a Glock, Model 17, 9mm semi-automatic handgun, loaded with an extended magazine, and a Taurus, Model 66, .357 magnum revolver.
On December 18, 2017, Perry was arrested at a traffic stop in Norfolk after attempting to elude law enforcement by running through stop signs and making rapid turns, finally stopping in a residential parking lot. When law enforcement caught up to the car, they ordered the two occupants out of the vehicle. After receiving permission to search the vehicle, officers found the Taurus revolver and the Glock handgun—the latter loaded with the same magazine that was in the defendant’s pictures.
Perry spent the next seven months after his arrest making recorded calls from the jail to engage in witness tampering and obstruction of justice, specifically involving a series of efforts to interfere with the potential testimony of the second person who was in the car during Perry’s arrest encounter. The defendant controlled the witness through fear—at one point before his arrest, he pointed the Glock handgun at the witness and threatened to kill her if she left him, and on jail calls he reminded her that he knew where she and her family members lived.
Since his arrest, Perry has threatened to hurt or kill at least five of his seven court-appointed attorneys and even lunged at one in the middle of a status hearing in federal court. Perry also mailed letters to some of his attorneys threatening to send associates to their offices if they did not move to withdraw from his case.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Charlie J. Patterson, Special Agent in Charge of the ATF’s Washington Field Division, made the announcement after sentencing by Senior U.S. District Judge Rebecca Beach Smith.
Assistant U.S. Attorney s William B. Jackson and Joseph E. DePadilla 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. 2:18-cr-113.
Federal Prisoner Sentenced to Additional Prison Time for Illegal Contraband and EscapeRead the Press Release
PENSACOLA, FLORIDA – William Brett Brownell, 30, of Milton, Florida, was sentenced to an 8-month consecutive prison term after pleading guilty to charges of possession of contraband by a federal prisoner, introduction of contraband to a federal prison, and escape. The sentence was announced today by Jason R. Coody, Acting U.S. Attorney for the Northern District of Florida.
Between October 2019 and June 2020, Brownell obtained, possessed, and distributed to fellow prisoners at the Federal Prison Camp in Pensacola various prohibited items, including marijuana, alcohol, phones, SD cards and readers, and tobacco products. Brownell coordinated the contraband “drops” by using a contraband cell phone. The indictment also alleges that around approximately the same time frame, Brownell escaped from custody by leaving prison limits without permission.
Brownell was in the midst of serving a 70-month sentence for marijuana trafficking and money laundering convictions, and he must serve 8 additional months after that as a result of the sentence in this case.
This case resulted from a joint investigation by the Bureau of Prisons Special Investigative Services, the United States Air Force Office of Special Investigations, Eglin Air Force Base 96th Test Wing Legal Office, and the Federal Bureau of Investigation. Assistant United States Attorney Alicia Forbes prosecuted this case.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Federal Jury Convicts Pharmacy Owner for Role in $174 Million Telemedicine Pharmacy Fraud SchemeRead the Press Release
On Dec. 2, a federal jury in Greeneville, Tennessee, convicted Peter Bolos, 44, of Tampa, Florida, of 22 counts of mail fraud, conspiracy to commit health care fraud and introduction of a misbranded drug into interstate commerce, following a month-long trial.
According to court documents and evidence presented at trial, Bolos and his co-conspirators, Andrew Assad, Michael Palso, Maikel Bolos, Larry Smith, Scott Roix, HealthRight LLC, Mihir Taneja, Arun Kapoor, and Sterling Knight Pharmaceuticals, as well as various other companies owned by them, deceived pharmacy benefit managers (PBMs), such as Express Scripts and CVS Caremark, regarding tens of thousands of prescriptions. The PBMs processed and approved claims for prescription drugs on behalf of insurance companies. Bolos and his co-conspirators defrauded the PBMs into authorizing claims worth more than $174 million that private insurers such as Blue Cross Blue Shield of Tennessee, and public insurers such as Medicaid and TRICARE, paid to pharmacies controlled by the co-conspirators.
Court documents and evidence at trial established that Bolos, Assad and Palso owned and operated Synergy Pharmacy in Palm Harbor, Florida. Under their direction, Synergy agreed with Scott Roix, a Florida telemarketer operating under the name HealthRight, to generate prescriptions for Synergy and the other pharmacies involved in the scheme. The prescriptions were typically for drugs such as pain creams, scar creams and vitamins. To obtain the prescriptions, evidence showed Roix used HealthRight’s telemarketing platform as a telemedicine service, calling consumers and deceiving them into agreeing to accept the drugs and to provide their personal insurance information. HealthRight then paid doctors to authorize the prescriptions through its telemedicine platform, even though the doctors never communicated directly with the patients and relied solely on the telemarketers’ screening process as the basis for their authorizations. Because this faulty and fraudulent process made the prescriptions invalid, the drugs were misbranded under the Food, Drug and Cosmetic Act. Synergy and the other pharmacies nonetheless dispensed the drugs to consumers as part of the scheme, so that Bolos could submit fraudulent reimbursement claims.
Court documents and evidence at trial established that during the conspiracy, which lasted from May 2015 through April 2018, Bolos paid Roix more than $30 million to buy at least 60,000 invalid prescriptions generated by HealthRight. Evidence showed Bolos selected specific medications for the prescriptions that he could submit for highly profitable reimbursements. In addition, Bolos used illegal means to hide his activity from the PBMs so that he could remain undetected. Evidence showed that Bolos was responsible for at least $89 million out of the total $174 million in fraudulently paid billings.
“The defendants deceived consumers in order to facilitate the distribution of drugs without proper medical oversight, and overbilled insurers for illegal prescriptions,” said Deputy Assistant Attorney General Arun G. Rao of the Justice Department’s Civil Division. “The Department will continue to investigate and prosecute individuals who use telemedicine to advance fraudulent schemes that violate the Food, Drug, and Cosmetic Act.”
“The United States Attorney’s Office for the Eastern District of Tennessee applauds the unwavering efforts of the multiple agencies involved in this collaborative investigation to bring this extensive healthcare fraud and misbranding scheme to justice,” said Acting U.S. Attorney Francis M. Hamilton III for the Eastern District of Tennessee. “The scope and nature of this fraud and misbranding scheme shock the conscience. Patients were given medications that they neither requested nor wanted, and the trial proof demonstrated that the prescriptions were specifically chosen by Bolos to maximize the fraudulent scheme’s profits, rather than for the patients’ healthcare needs. The guilty verdict against Bolos and the guilty pleas obtained from his co-defendants should send a strong message that the Department of Justice will aggressively prosecute fraud against health insurance providers.”
“Healthcare fraud is an egregious crime problem that impacts every American,” said Special Agent in Charge Joseph E. Carrico of the FBI’s Knoxville Field Office. “The guilty verdict was a result of a multi-agency investigation into a complex health care fraud scheme that required substantial investigative resources. Along with its law enforcement partners, the FBI remains committed to investigate these crimes and prosecute all those that are intent in defrauding the American public."
“Distributing misbranded prescription drugs in the U.S. marketplace places patients’ health at risk,” said Special Agent in Charge Justin C. Fielder of the FDA Office of Criminal Investigations Miami Field Office. “We will continue to pursue and bring to justice those who put profits ahead of public health.”
“Bolos and his co-conspirators used their pharmacies to fraudulently bill insurance companies hundreds of millions of dollars, and that type of health care fraud impacts everyone,” said Special Agent in Charge John Condon of Homeland Security Investigations (HSI) Tampa. “HSI will continue to work with our law enforcement partners at the federal, state and local level to investigate all fraud and bring those responsible to justice.”
“Bolos and his co-conspirators sought to increase their profits by executing a comprehensive health care fraud scheme involving innocent patients,” said Special Agent in Charge Derrick L. Jackson of the U.S. Department of Health and Human Services, Office of Inspector General. “This conviction should serve as a warning to individuals who wish to deceive the government and steal from taxpayers. Alongside our law enforcement partners, we will continue to pursue medical professionals who engage in fraudulent activity.”
“The verdict in this case sends a clear message that these types of schemes will not be tolerated,” said Special Agent in Charge Matthew Modafferi of the U.S. Postal Service Office of Inspector General in the Northeast Area Field Office. “The Special Agents of the U.S. Postal Service Office of Inspector General will continue to work closely with the U.S. Attorney’s Office and our law enforcement partners to bring to justice those who commit these kinds of offenses.”
Roix, Assad, Palso, Smith, Maikel Bolos and various associated business entities previously pleaded guilty to their roles in the conspiracy. Taneja, Kapoor, and Sterling Knight pleaded guilty to felony misbranding in a conspiracy with Bolos. U.S. District Judge J. Ronnie Greer set sentencing for Bolos for May 19, 2022, in the United States District Court for the Eastern District of Tennessee at Greeneville. Sentencings for the other defendants will be set for dates in 2022.
The trial and plea agreements resulted from a multi-year investigation conducted by the U.S. Department of Health & Human Services Office of Inspector General (Nashville); Food and Drug Administration Office of Criminal Investigations (Nashville); U.S. Postal Service, Office of Inspector General (Buffalo); Federal Bureau of Investigation (Knoxville and Johnson City, Tennessee); Office of Personnel Management Office of Inspector General (Atlanta); and the Department of Homeland Security, Homeland Security Investigations (Tampa). The U.S. Marshals Service also assisted in the investigation and the forfeiture of assets.
Assistant U.S. Attorneys TJ Harker and Mac Heavener for the Eastern District of Tennessee and Trial Attorney David Gunn of the Department of Justice Civil Division’s Consumer Protection Branch in Washington, and a former Assistant U.S. Attorney in Knoxville, prosecuted and tried the case. They were assisted by Barbra Pemberton, Bryan Brandenburg and April Denard from the U.S. Attorney’s office.
Federal Jury Convicts Pharmacy Owner for Role in $174 Million Telemedicine Pharmacy Fraud SchemeRead the Press Release
WASHINGTON – On Dec. 2, a federal jury in Greeneville, Tennessee, convicted Peter Bolos, 44, of Tampa, Florida, of 22 counts of mail fraud, conspiracy to commit health care fraud and introduction of a misbranded drug into interstate commerce, following a month-long trial.
According to court documents and evidence presented at trial, Bolos and his co-conspirators, Andrew Assad, Michael Palso, Maikel Bolos, Larry Smith, Scott Roix, HealthRight LLC, Mihir Taneja, Arun Kapoor, and Sterling Knight Pharmaceuticals, as well as various other companies owned by them, deceived pharmacy benefit managers (PBMs), such as Express Scripts and CVS Caremark, regarding tens of thousands of prescriptions. The PBMs processed and approved claims for prescription drugs on behalf of insurance companies. Bolos and his co-conspirators defrauded the PBMs into authorizing claims worth more than $174 million that private insurers such as, Blue Cross Blue Shield of Tennessee, and public insurers such as, Medicaid and TRICARE, paid to pharmacies controlled by the co-conspirators.
Court documents and evidence at trial established that Bolos, Assad, and Palso owned and operated Synergy Pharmacy in Palm Harbor, Florida. Under their direction, Synergy agreed with Scott Roix, a Florida telemarketer operating under the name HealthRight, to generate prescriptions for Synergy and the other pharmacies involved in the scheme. The prescriptions were typically for drugs such as pain creams, scar creams and vitamins. To obtain the prescriptions, evidence showed Roix used HealthRight’s telemarketing platform as a telemedicine service, calling consumers and deceiving them into agreeing to accept the drugs and to provide their personal insurance information. HealthRight then paid doctors to authorize the prescriptions through its telemedicine platform, even though the doctors never communicated directly with the patients and relied solely on the telemarketers’ screening process as the basis for their authorizations. Because this faulty and fraudulent process made the prescriptions invalid, the drugs were misbranded under the Food, Drug, and Cosmetic Act. Synergy and the other pharmacies nonetheless dispensed the drugs to consumers as part of the scheme, so that Bolos could submit fraudulent reimbursement claims.
Court documents and evidence at trial established that during the conspiracy, which lasted from May 2015 through April 2018, Bolos paid Roix more than $30 million to buy at least 60,000 invalid prescriptions generated by HealthRight. Evidence showed Bolos selected specific medications for the prescriptions that he could submit for highly profitable reimbursements. In addition, Bolos used illegal means to hide his activity from the PBMs so that he could remain undetected. Evidence showed that Bolos was responsible for at least $89 million out of the total $174 million in fraudulently paid billings.
“The defendants deceived consumers in order to facilitate the distribution of drugs without proper medical oversight, and overbilled insurers for illegal prescriptions,” said Deputy Assistant Attorney General Arun G. Rao of the Justice Department’s Civil Division. “The Department will continue to investigate and prosecute individuals who use telemedicine to advance fraudulent schemes that violate the Food, Drug, and Cosmetic Act.”
“The United States Attorney’s Office for the Eastern District of Tennessee applauds the unwavering efforts of the multiple agencies involved in this collaborative investigation to bring this extensive healthcare fraud and misbranding scheme to justice,” said Acting U.S. Attorney Francis M. Hamilton III for the Eastern District of Tennessee. “The scope and nature of this fraud and misbranding scheme shock the conscience. Patients were given medications that they neither requested nor wanted, and the trial proof demonstrated that the prescriptions were specifically chosen by Bolos to maximize the fraudulent scheme’s profits, rather than for the patients’ healthcare needs. The guilty verdict against Bolos and the guilty pleas obtained from his co-defendants should send a strong message that the Department of Justice will aggressively prosecute fraud against health insurance providers.”
“Healthcare fraud is an egregious crime problem that impacts every American,” said Special Agent in Charge Joseph E. Carrico of the FBI’s Knoxville Field Office. “The guilty verdict was a result of a multi-agency investigation into a complex health care fraud scheme that required substantial investigative resources. Along with its law enforcement partners, the FBI remains committed to investigate these crimes and prosecute all those that are intent in defrauding the American public."
“Distributing misbranded prescription drugs in the U.S. marketplace places patients’ health at risk,” said Special Agent in Charge Justin C. Fielder of the FDA Office of Criminal Investigations Miami Field Office. “We will continue to pursue and bring to justice those who put profits ahead of public health.”
“Bolos and his co-conspirators used their pharmacies to fraudulently bill insurance companies hundreds of millions of dollars, and that type of health care fraud impacts everyone,” said Special Agent in Charge John Condon of Homeland Security Investigations (HSI) Tampa. “HSI will continue to work with our law enforcement partners at the federal, state and local level to investigate all fraud and bring those responsible to justice.”
“Bolos and his co-conspirators sought to increase their profits by executing a comprehensive health care fraud scheme involving innocent patients,” said Special Agent in Charge Derrick L. Jackson of the U.S. Department of Health and Human Services, Office of Inspector General. “This conviction should serve as a warning to individuals who wish to deceive the government and steal from taxpayers. Alongside our law enforcement partners, we will continue to pursue medical professionals who engage in fraudulent activity.”
“The verdict in this case sends a clear message that these types of schemes will not be tolerated,” said Special Agent in Charge Matthew Modafferi of the U.S. Postal Service Office of Inspector General in the Northeast Area Field Office. “The Special Agents of the U.S. Postal Service Office of Inspector General will continue to work closely with the U.S. Attorney’s Office and our law enforcement partners to bring to justice those who commit these kinds of offenses.”
Roix, Assad, Palso, Smith, Maikel Bolos, and various associated business entities previously pleaded guilty to their roles in the conspiracy. Taneja, Kapoor, and Sterling Knight pleaded guilty to felony misbranding in a conspiracy with Bolos. U.S. District Judge J. Ronnie Greer set sentencing for Bolos for May 19, 2022, in the United States District Court for the Eastern District of Tennessee at Greeneville. Sentencing for the other defendants will be set for dates in 2022.
The trial and plea agreements resulted from a multi-year investigation conducted by the U.S. Department of Health & Human Services Office of Inspector General (Nashville); Food and Drug Administration Office of Criminal Investigations (Nashville); U.S. Postal Service, Office of Inspector General (Buffalo); Federal Bureau of Investigation (Knoxville and Johnson City, Tennessee); Office of Personnel Management Office of Inspector General (Atlanta); and the Department of Homeland Security, Homeland Security Investigations (Tampa). The U.S. Marshals Service also assisted in the investigation and the forfeiture of assets.
Assistant U.S. Attorneys TJ Harker and Mac Heavener of the U.S. Attorney’s Office for the Eastern District of Tennessee and Trial Attorney David Gunn of the Department of Justice Civil Division’s Consumer Protection Branch in Washington, and a former Assistant U.S. Attorney in Knoxville, prosecuted and tried the case. They were assisted by Barbra Pemberton, Bryan Brandenburg, and April Denard from the U.S. Attorney’s office.
Federal Indictment Returned Against Nursing Director for Producing Fraudulent COVID Vaccine Cards and Lying to Federal InvestigatorsRead the Press Release
Columbia, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that a Federal Grand Jury in Columbia returned a multiple-count indictment in connection with the production of fraudulent COVID-19 Vaccination Record Cards, the first such criminal prosecution in the District of South Carolina.
Tammy McDonald, 53, of Columbia, was charged in a three-count indictment with two counts of producing fraudulent COVID-19 Vaccination Record Cards and one count of lying to federal investigators about her role in producing the cards.
“Although the indictment speaks for itself, creating fraudulent or fake vaccine cards for those who have not been vaccinated poses a direct threat to the health of the people of South Carolina,” said Acting U.S. Attorney DeHart. “I want to thank our federal and state partners for their quick work in acting on this matter. This office will continue to prosecute fraud related to the Coronavirus in all its forms, and this case speaks to those efforts.”
“The indictment alleges McDonald defrauded and endangered the public by creating and distributing fake COVID-19 vaccination cards. Engaging in such illegal activities undermines the ongoing pandemic response efforts,” stated Derrick L. Jackson, Special Agent in Charge with the Department of Health and Human Services (HHS) Office of Inspector General. “We remain committed to working with our law enforcement partners to investigate individuals who are exploiting the pandemic and people for personal gain.”
“Since the beginning of the pandemic, the FBI and its partners have been at the forefront of investigating crimes involving fraudulent COVID-19 schemes,” said Susan Ferensic, Special Agent in Charge of the Federal Bureau of Investigation (FBI) Columbia Field Office. “Producing fraudulent vaccination cards is a serious matter and is not taken lightly. Anyone leading or participating in this type of activity should know there will be consequences.”
The indictment alleges that McDonald, who worked as the Director of Nursing Services at a skilled nursing and rehabilitation center in Columbia, produced the fraudulent vaccine cards on June 20, 2021, and July 28, 2021. The indictment further alleges that on October 22, 2021, McDonald was questioned by federal agents with HHS and FBI and lied by stating she did not have access to COVID-19 Vaccination Record Cards and that she never produced a false or inaccurate vaccine card. The indictment alleges this was false because she had personally filled out vaccine cards for individuals she knew had not received a COVID-19 vaccine.
McDonald, who has pleaded not guilty on all three charges, was arraigned today by a United States Magistrate Judge in Columbia. She was granted a $10,000 bond. McDonald faces up to 15 years in prison for each count of producing a fraudulent COVID-19 Vaccination Record Card, and five years in prison for lying to federal investigators.
The case was investigated by HHS and FBI, with assistance from the South Carolina Law Enforcement Division (SLED). Assistant U.S. Attorney Derek A. Shoemake, who also serves as the District’s Coronavirus Fraud Coordinator, is prosecuting the case.
Acting U.S. Attorney DeHart stated that all charges in the indictment are merely accusations and that McDonald is presumed innocent unless and until proven guilty.
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.
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Federal Correctional Officer Charged with Sexual Abuse of an InmateRead the Press Release
OAKLAND–John Russell Bellhouse appeared today in federal court to face the charge of sexual abuse of a prison ward, announced Acting U.S. Attorney Stephanie M. Hinds, Department of Justice Office of the Inspector General Los Angeles Field Office Special Agent in Charge Zachary Shroyer, and Federal Bureau of Investigation Special Agent in Charge Craig D. Fair.
According to the complaint filed November 29, 2021, and unsealed today, Bellhouse, 39, of Pleasanton, was employed as a correctional officer at the Federal Correctional Institute Dublin (FCI Dublin), an all-female correctional institution that houses federal prisoners and is operated by the Federal Bureau of Prisons (BOP). Bellhouse held the position of Safety Administrator. As a correctional officer, he supervised and had disciplinary authority over female inmates incarcerated at FCI Dublin. Bellhouse was trained in BOP policies and procedures, which included training that sexual, financial, and social relationships with inmates are prohibited.
The complaint charges that in 2020 Bellhouse engaged in sexual acts with an inmate. The complaint describes that Bellhouse began to express an interest in a particular female inmate and started calling the inmate his “girlfriend.” Among other benefits, he allegedly provided the female inmate with a gift of earrings and allowed her to use an office phone. The complaint further alleges that Bellhouse began to engage in sexual touching with the inmate and eventually engaged in oral sex on two occasions. The complaint describes that on one of those occasions oral sex allegedly occurred in the Safety Office, a space inside the prison accessible to both BOP staff and inmates. Another inmate acted as a “lookout” during at least one of the sexual encounters, according to the complaint’s allegations.
In March 2021, Bellhouse was put on administrative leave due to the allegations described in the complaint.
Bellhouse was arrested yesterday and made his initial court appearance today in U.S. District Court in Oakland before United States Magistrate Judge Donna M. Ryu. His next court appearance is scheduled for January 10, 2022, at 1:00 p.m. before U.S. Magistrate Judge Ryu.
Bellhouse is charged with one count of sexual abuse of a ward in violation of 18 U.S.C. § 2243(b). If convicted, Bellhouse faces a maximum statutory sentence of 15 years imprisonment, a three-year term of supervised release, and a $250,000 fine. However, any sentence following a conviction would be imposed by a court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The charges contained in the criminal complaint are allegations. As in any criminal case, the defendant is presumed innocent unless and until proven guilty in a court of law.
Assistant U.S. Attorney Molly K. Priedeman is prosecuting the case with the assistance of Leeya Kekona. The prosecution is the result of an investigation by the Department of Justice Office of the Inspector General and the Federal Bureau of Investigation.
Dominican Republic National Pleads Guilty to Charges Stemming from Haulover Bay, St. John ShootoutRead the Press Release
St. Thomas, USVI – United States Attorney Gretchen C.F. Shappert announced today that Rammer Guerrero Morales, a citizen of the Dominican Republic, appeared before United States Magistrate Judge Ruth Miller in the District Court and entered a guilty plea to the charges of Possession and Discharge of Firearms During and In Relation to a Crime of Violence (18 U.S.C. § 924) and Assaulting, Resisting, or Impeding Certain Officers or Employees (18 U.S.C. § 111). He faces up to life in federal prison. The sentencing date will be set by the Court.
According to Court documents, on September 25, 2019, members of Customs and Border Protection ("CBP") Air and Marine Operations ("AMO") conducted a maritime interdiction operation on the north coast of St. John, USVI, near Haulover Bay. This area is a known smuggling location where traffickers offload large shipments of narcotics and U.S. Currency. This location contains a trail that leads from the main road down to the beach of Haulover Bay.
At approximately 7:30 p.m. Customs and Border Protection ("CBP") Air and Marine Interdiction Agents observed two individuals, who were armed on a trail that leads down to the beach at Haulover Bay. The Agents identified themselves as "police". Immediately thereafter, the individuals fired at the Agents. One CBP Air and Marine Interdiction Agent was wounded by the rounds fired by the individuals. Defendant Guerrero Morales was wounded by shots fired in self-defense by CBP Air and Marine Agents. CBP Air and Marine Agents recovered two firearms at the scene, described as an AR-15 style .223 caliber rifle and a Glock .40 caliber pistol with an extended magazine.
This case is being investigated by the Federal Bureau of Investigation, Department of Homeland Security Investigations and Customs and Border Protection. It is being prosecuted by Assistant United States Attorney Juan Albino, and is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that
District of Columbia Man Found Guilty of First-Degree Murder in 2017 Shooting in Southeast WashingtonRead the Press Release
WASHINGTON – A District of Columbia man has been found guilty of first-degree (felony) murder while armed, with aggravating circumstances, and attempted robbery while armed in a 2017 shooting in Southeast Washington that led to the death of a swim coach.
Christopher Green, 36, also known as “Twin,” was found guilty on Dec. 2, 2021, following a month-long trial in the U.S. District Court for the District of Columbia. In addition to the murder charge, Green was found guilty of assault with a dangerous weapon, possession of a firearm during a crime of violence, and attempted robbery while armed. The jury was unable to reach a verdict on federal racketeering and other charges.
The guilty verdict was announced by U.S. Attorney Matthew M. Graves, Wayne A. Jacobs, Special Agent in Charge of the FBI’s Washington Field Office Criminal Division, Robert J. Contee III, Chief of the Metropolitan Police Department (MPD), and Malik Aziz, Chief of the Prince George’s County, Maryland Police.
According to the government’s evidence, Green was a core member of a criminal organization that operated in the District of Columbia, Prince George’s County, Maryland, and elsewhere, primarily making money through a series of armed robberies.
The jury found Green found guilty of murder in a shooting in Southeast Washington on April 9, 2017, that later led to the death of Zaan Scott, 25. Mr. Scott, a coach at the Eastern Market pool, was on his way home from swim lessons when Green intended to rob him at approximately 9:05 p.m. Mr. Scott died on May 17, 2017, of a blood clot that the medical examiner determined was a result of the shooting. Green also was found guilty of firing gunshots at another victim on Feb. 23, 2017.
Green has been detained since his arrest in April 2017.
The Honorable Randolph D. Moss scheduled sentencing for March 25, 2022.
In announcing the verdict, U.S. Attorney Graves, Special Agent in Charge Jacobs, Chief Contee, and Chief Aziz commended the work of those who investigated the case from the FBI’s Washington Field Office, the Metropolitan Police Department, and the Prince George’s County Police Department.
They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Ellen D’Angelo; former Assistant U.S. Attorneys Kenneth F. Whitted and Richard Barker; Paralegal Supervisor Mary Downing; Paralegal Specialists Candace Battle and Lornce Applewhite; Legal Assistant Latoya Wade; Investigative Analyst Zachary McMenamin; Litigation Technology Specialist Paul Howell, and Victim/Witness Advocate Marcia Rinker.
Finally, they expressed appreciation for the work of Assistant U.S. Attorneys Michael C. Liebman and Nihar R. Mohanty, who investigated and prosecuted the case.
Detroit man sentenced for drug chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Mario Rayshawn White, of Detroit, Michigan, was sentenced today to five years of probation for a drug charge, United States Attorney William J. Ihlenfeld, II announced.
White, also known as “MT,” 31, pleaded guilty in April 2021 to one count of “Conspiracy to Distribute Oxycodone.” White admitted to selling Oxycodone in April 2019 in Monongalia County.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Mon Metro Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge Thomas S. Kleeh presided.
Des Moines Man Sentenced to over 30 Years in Prison for Distributing Methamphetamine and Two Firearm ChargesRead the Press Release
A convicted felon who distributed nearly a pound of methamphetamine and possessed a gun was sentenced today to more than 30 years in federal prison.
Patrick Miller Webb, age 32, from Des Moines, Iowa, received the prison term after a March 20, 2021 jury verdict finding him guilty of distribution of methamphetamine near a protected location, possession of a firearm in furtherance of a drug trafficking crime, and possession of a firearm by a prohibited person.
The evidence at trial showed that Webb drove from Des Moines to Dubuque to sell nearly one pound of methamphetamine during a controlled buy for $6,000. Following the drug sale, officers found a loaded firearm underneath the driver’s seat of Webb’s car, where he had been sitting. The drug distribution occurred inside a carwash that was located within 1,000 feet of a public playground located at Cleveland Park, Dubuque. Webb has a previous felony conviction for possession with intent to deliver methamphetamine and was also a user of methamphetamine and marijuana. Information at sentencing showed that Webb had previously been convicted of two felonies involving controlled substances, which classified him as a career offender.
Webb was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Webb was sentenced to 380 months’ imprisonment. He must also serve a ten-year term of supervised release after the prison term. There is no parole in the federal system.
Webb is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Special Assistant United States Attorney Alexander Geocaris and Assistant United States Attorney Tony Morfitt and was investigated by the Dubuque Drug Task Force, comprised of the Dubuque Police Department and the Dubuque County Sheriff’s Office, the Iowa Division of Narcotics Enforcement, 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-1018.
Follow us on Twitter @USAO_NDIA.
Deer Isle Man Sentenced for Possessing Child PornographyRead the Press Release
BANGOR, Maine: A Deer Isle man was sentenced today in federal court for possessing child pornography, U.S. Attorney Darcie N. McElwee announced.
U.S. District Court Judge Lance E. Walker sentenced Nicholas Pettis, 38, to 10 years in prison followed by five years of supervised release. Pettis was also ordered to pay $6,000 in restitution to victims depicted in the videos he possessed. Pettis pleaded guilty on April 13, 2021.
According to court records, Pettis possessed electronic devices containing short videos of children, including infants and toddlers, being sexually abused by adult men. Pettis traded these videos online to obtain similar materials. The electronic devices, including cell phones and a computer, were seized from his home on June 25, 2020, during execution of a search warrant.
In imposing the sentence, Judge Walker noted that the materials in this case depicted “the most vulnerable, youngest members of society, who are completely helpless, subject to the most profound terror imaginable.” The judge further commented that the horrors of the materials Mr. Pettis traded in “could not be adequately captured by Dante or his seven circles of Hell, and I don’t think any of us do ourselves any favors by ignoring that truth.”
Homeland Security Investigations (HSI) and the Maine State Police Computer Crimes Unit investigated this case.
The 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. 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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Daytona Beach Drug Trafficker Pleads Guilty in the Southern District of FloridaRead the Press Release
Miami, Florida – Daytona Beach drug trafficker, Maxwell A. Vega, pled guilty today in federal court in Ft. Pierce to one count of distribution of over 50 grams of methamphetamine, one count of distribution of methamphetamine and one count of distribution of fentanyl.
According to court documents, on July 2, 2021, Vega traveled from Daytona Beach, Florida to a hotel in Martin County, where he had prearranged a meeting to sell methamphetamine. During the course of arranging the drug deal, Vega offered to sell fentanyl in addition to the methamphetamine. The purchaser initially declined, stating that fentanyl was too dangerous a drug. Vega encouraged the sale, and offered to bring a sample of fentanyl to the meeting. Vega told the purchaser that the fentanyl was the “real deal” and to be careful not to touch it. Lab results showed that the 54.81 grams of meth that Vega sold was 98% pure.
On July 7, 2021, Vega again traveled from Daytona Beach, Florida to the same hotel in Martin County, where he had prearranged a second meeting to sell methamphetamine and fentanyl. Vega again arrived and proceeded to the room where he sold an ounce of fentanyl, and 1.170 grams of methamphetamine which had a purity of 99%. Vega was arrested shortly after this transaction.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, and Anthony Salisbury, Special Agent in Charge, Homeland Security Investigations (HSI), Miami Field Office made the announcement.
The Department of Homeland Security, together with the Martin County Sheriff’s Office, investigated this case. Assistant U.S. Attorney Luisa Honora Berti is prosecuting this case.
Vega will be sentenced on a date to be announced. He faces a minimum term of imprisonment of ten years and a maximum of life.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 21-cr-14030.
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David H. Estes sworn in as U.S. Attorney for the Southern District of GeorgiaRead the Press Release
AUGUSTA, GA: David H. Estes now serves as U.S. Attorney for the Southern District of Georgia after his appointment by U.S. Attorney General Merrick Garland.
U.S. Attorney Estes took the oath of office Friday, Dec. 3, in the Augusta Office of the U.S. Attorney for the Southern District of Georgia before U.S. District Court Chief Judge J. Randal Hall.
“It is truly an honor to continue to serve the citizens of the Southern District of Georgia as we work with our outstanding staff and the exceptional law enforcement partners in the district to keep our communities safe,” said U.S. Attorney Estes. “We are dedicated to upholding the law and defending access to justice for those who live, work, worship and play throughout this district.”
As First Assistant U.S. Attorney, Estes was named Acting U.S. Attorney under the Vacancies Reform Act after the resignation February 9, 2021, of then-U.S. Attorney Bobby L. Christine. Estes now becomes U.S. Attorney by Attorney General appointment in the absence of a presidentially nominated and U.S. Senate-confirmed U.S. Attorney for a term of 120 days or until a U.S. Attorney is confirmed. If a U.S. Attorney is not nominated and confirmed within that period, a U.S. Attorney would be appointed by the Southern District U.S. Court.
The Southern District of Georgia U.S. Attorney’s Office encompasses 43 counties along the east side of the state, from Wilkes County in the north, along the Georgia coast, to the Florida border in the south, and as far west as Laurens County. The U.S. Attorney serves as the chief federal law enforcement officer for the Southern District of Georgia.
U.S. Attorney Estes, a native of Scottsboro, Ala., received an Associates in Business and his Regular Army commission through the Reserve Officer Training Corps at Marion Military Institute (1987) and a Bachelor’s Degree in English from Auburn University (1989), and in 1993 received his Juris Doctorate Degree from the University of Tulsa in Tulsa, Okla. From 1987 to 1994 he served as a Field Artillery Officer in the Alabama and Oklahoma Army National Guard, and after law school served on active duty with the Judge Advocate General’s Corps for three years at Redstone Arsenal, Ala., Office of the Staff Judge Advocate.
In 1997, Estes joined the Alabama Attorney General’s Office, Violent Crimes Division, as a violent crime prosecutor. During this time, Estes rejoined the Alabama Army National Guard as a Judge Advocate. In 2002, Estes joined the United States Attorney’s office for the Northern District of Alabama (Huntsville Branch Office) as an Assistant U.S. Attorney. Estes assumed the duties of First Assistant U.S. Attorney for the Southern District of Georgia in January 2018.
In his military career, Estes deployed to Iraq from 2004-2005 with the 122nd Corps Support Group and served as the Deputy Staff Judge Advocate and Chief, Military Justice. He was awarded the Bronze Star for his service in Iraq. In October 2013 he was promoted to Colonel and assumed the Staff Judge Advocate position for the 167th Theatre Sustainment Command. Col. Estes previously served as the very first Regional Defense Counsel for the Army National Guard. Estes recently retired from the Army after more than 34 years of military service. He was twice awarded the Legion of Merit Medal for his accomplishments.
Estes was accompanied at his swearing-in ceremony by his wife, Connie Estes. They have four children: Garrett, Madison, Everett, and Gracie, and two stepchildren, Abby and Hamilton, and are members of Christ Church Anglican in Savannah.
U.S. Attorney's Office U.S. Attorney David H. Estes takes the oath of office from U.S. District Court Chief Judge J. Randal Hall. Estes will serve 120 days, or more, until a presidentially appointed and Senate ratified nominee takes office.Colorado Springs Man Sentenced to 20 Years in Federal Prison for Producing Child PornographyRead the Press Release
DENVER – The U.S. Attorney’s Office for the District of Colorado announces that Gregory Lopez, age 28, of Colorado Springs, was sentenced to serve 240 months (20 years) in federal prison, followed by 20 years on supervised release for production and transportation of child pornography.
According to the stipulated facts contained in the plea agreement, the defendant was advertising the sale of child pornography on “The Onion Router” or TOR network, which makes it difficult for users to learn each other’s physical location. A federal agent observed the advertisement and began communicating with the defendant. On May 6, 2020, in exchange for $40, the defendant sent the agent five videos depicting the sexual abuse of a minor victim, who was seven years old at the time. A search warrant was executed at the defendant’s home in Colorado Springs the next day. The defendant was home, identified the minor victim to law enforcement, admitted to creating the videos depicting his sexual abuse of the minor victim, and admitted to selling the videos on TOR. The defendant also possessed approximately 265 videos files and 20 image files depicting child pornography.
“Sexual abuse of children is egregious and harms victims for their lifetime,” said United States Attorney Cole Finegan. “Due to the excellent work of federal law enforcement and the Colorado’s Internet Crimes Against Children Task Force, the victim in this case is no longer in danger, and the perpetrator has been removed from the community for a very long time.”
“This sentencing should send a very clear message to this defendant and others like him, that HSI will punish anyone who engages in the inexcusable abuse of innocent children,” said Ryan L. Spradlin, Special Agent in Charge, HSI Denver. “We’re grateful for the collaboration with our federal, state and local law enforcement partners in Colorado to target and prosecute criminals who exploit children.”
United States District Court Judge Christine M. Arguello sentenced Gregory Lopez on December 2, 2021.
Homeland Security Investigations and the Colorado Internet Crimes Against Children (ICAC) Task Force conducted the investigation. Assistant United States Attorney Alecia L. Riewerts handled the prosecution of 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.
Case No. 20-cr-165-CMA
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Cleveland Man Found Guilty of Threatening a Federal EmployeeRead the Press Release
U.S. Attorney Bridget M. Brennan announced that a federal jury today returned a guilty verdict against Defendant Lon R. Sweeney, 56, of Cleveland, Ohio, following a four-day trial before Judge Dan Aaron Polster in Cleveland. Sweeney was convicted of threatening a federal employee and acquitted of assault of an officer.
According to court documents and evidence presented at trial, on July 12, 2017, Sweeney left a voicemail message threatening bodily harm to an employee of the Department of Veterans Affairs (VA) after the VA had begun the process of assigning a fiduciary to manage Sweeney’s monetary VA benefits. During the same voicemail, Sweeney also threatened bodily harm against an employee of the Department of Veterans Affairs, Office of Inspector General, Criminal Investigations Division, who had previously warned Sweeney about making threats to VA employees. Following the threats on July 12, a warrant was issued for Sweeney’s arrest.
On January 7, 2019, Sweeney appeared for a scheduled appointment at the VA Medical Center in Cleveland. After the appointment concluded, law enforcement officers apprehended Sweeney on his outstanding warrant.
Sweeney is scheduled to be sentenced on April 12, 2022. A federal district court judge will determine a sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This case was investigated by the Department of Veterans Affairs Office of the Inspector General with the help of the Cleveland VAMC Police and Brecksville Police Departments. This case is being prosecuted by Assistant United States Attorneys Brad J. Beeson and Brian M. McDonough.
Clay County Pharmacy Investigation Results in Criminal Charges Against Six More Individuals in Opioid Distribution and Health Care Fraud ConspiracyRead the Press Release
NASHVILLE – Charging documents unsealed yesterday charge six more individuals in relation to a massive opioid distribution and health care fraud conspiracy orchestrated from pharmacies in Celina, Tennessee, announced Acting U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee.
A seven-count indictment returned on November 15, 2021, charges Thomas K. Weir, 61, majority owner of Dale Hollow Pharmacy and Xpress Pharmacy in Celina, and William L. Donaldson, 61, former owner and Pharmacist-in-Charge of Dale Hollow Pharmacy (then known as Donaldson Pharmacy), both of Celina, Tenn.; Charles R. Oakley, aka Bobby Oakley, 69, of Cookeville, Tenn., co-owner of Dale Hollow Pharmacy; and Pamela Spivey, 50, of Hilham, Tenn., co-owner of Xpress Pharmacy, with conspiracy to distribute and dispense controlled substances and conspiracy to commit health care fraud. The indictment also charges Weir, Donaldson, and Oakley with conspiracy to defraud the United States and commit an offense through the payment of illegal kickbacks, and Weir, Oakley and Spivey with health care fraud and aiding and abetting health care fraud.
All were arrested yesterday by federal, and state law enforcement agents and appeared before a U.S. Magistrate Judge in Nashville.
In addition, a superseding information, filed on December 15, 2020, and unsealed yesterday, charges former Pharmacist-in-Charge of Dale Hollow Pharmacy John M. Polston, 60, of Tompkinsville, Kentucky, with conspiracy to distribute and dispense controlled substances, 22 counts of unlawful distribution of controlled substances, and conspiracy to defraud the United States and commit an offense through the payment of illegal kickbacks. A criminal information filed on May 6, 2021, and unsealed yesterday, charges Michael L. Griffith, 37, of Mount Juliet, Tenn., the former Pharmacist-in-Charge of Xpress Pharmacy, with conspiracy to distribute and dispense controlled substances, health care fraud, and aiding and abetting health care fraud.
Also unsealed yesterday are two plea agreements. On March 23, 2021, John Polston pleaded guilty to conspiracy to distribute and dispense controlled substances, illegal distribution of controlled substances, and conspiracy to defraud the United States and commit an offense through the payment of illegal kickbacks, in violation of the Anti-Kickback Statute. He is currently awaiting sentencing. On August 26, 2021, Michael Griffith pleaded guilty to conspiracy to distribute and dispense controlled substances and to two counts of health care fraud. Griffith is also awaiting sentencing.
According to the charging documents, the defendants conspired with or otherwise aided and abetted one or more co-defendants in illegally distributing and dispensing controlled substances, including oxycodone, hydrocodone, morphine, buprenorphine, alprazolam, and other Schedule II, III, and IV controlled substances, outside the usual course of professional practice and for no legitimate medical purpose, for the purpose of unlawfully enriching and benefitting themselves. The conspiracy was carried out by a variety of means, including dispensing prescriptions for controlled substances to patients despite obvious signs of abuse or diversion by the patients and other indications that the prescriptions were not for legitimate medical purposes.
According to the charging documents, Weir, Oakley, Donaldson, and others, conspired to defraud the United States and violate the Anti-Kickback Statute by offering and paying kickbacks and bribes to Donaldson for arranging the referral of patients, including Medicare and Medicaid beneficiaries, to Dale Hollow Pharmacy and paying Donaldson at least $50,000 for the recruitment of patients; paying patient’s insurance co-payments and $100.00 in cash, and developing and providing a cash coupon called “Monkey Bucks” to patients to induce patients to fill expensive prescriptions at Dale Hollow Pharmacy; and submitting false claims to and obtaining reimbursement from Medicare and Medicaid. For example, during the course of the conspiracy, Medicare paid Dale Hollow Pharmacy $237,558 in reimbursement for a single patient’s prescriptions procured through routine cash incentive payments to the patient. During the course of the conspiracy, Medicare Part D and TennCare, Tennessee’s Medicaid program, paid a total of $7.4 million in reimbursements to Dale Hollow Pharmacy for patient prescriptions procured through kickbacks and bribes.
The charging documents also allege that in 2015, Weir purchased a controlling interest in Xpress Pharmacy, a pharmacy located approximately 200 yards from Dale Hollow Pharmacy. In-between Dale Hollow Pharmacy and Xpress Pharmacy was another competing retail pharmacy. Weir, with co-owner Pam Spivey and Pharmacist-in-Charge Michael Griffith, conspired to distribute and dispense opioids and other controlled substances and developed a plan to increase profits. Marketing flyers were then developed, advertising that Xpress Pharmacy dispensed buprenorphine (Subutex), a controlled substance that is sought after by those who abuse opioids.
Griffith and Spivey then purchased trays of cookies and delivered the cookies and marketing flyers to medical clinics around the State of Tennessee whose doctors wrote prescriptions for Subutex. Many of these clinics were hours away from Xpress Pharmacy. Following the marketing campaign, patients drove hundreds of miles to Xpress Pharmacy to fill prescriptions for Subutex, sometimes arriving together in car loads. Weir purchased Subutex through Dale Hollow Pharmacy and delivered it through co-conspirators in tote bags to the neighboring Xpress Pharmacy.
In the third quarter of 2015, before Weir was the majority owner of Xpress Pharmacy, Xpress Pharmacy dispensed approximately 420 doses of Subutex. By the end of the first quarter of 2016, after Weir was majority owner, that number was over 14,000 doses. By the second quarter of 2017, it was over 34,000 doses.
In May and June of 2016, the Drug Enforcement Administration (DEA) inspected Dale Hollow Pharmacy and in 2017, Weir, Oakley, and Polston signed a Memorandum of Agreement with the DEA related to violations of the regulations governing the dispensing of controlled substances, including Subutex. Despite the agreement, the dispensing of Subutex continued to increase. Weir also set mandates on the number of Subutex pills or doses to fill in a month, routinely checked to see how much had been dispensed, and instructed the pharmacy employees, to never run out of Subutex.
Dale Hollow Pharmacy and Xpress Pharmacy also submitted false and fraudulent claims to Medicare Part D plans, and to TennCare, for controlled substances dispensed to Medicare and Medicaid beneficiaries that were medically unnecessary or otherwise ineligible for reimbursement.
In February 2019, the Justice Department filed a civil complaint against Dale Hollow Pharmacy and Xpress Pharmacy, including the owner, Thomas Weir and pharmacists John Polston, Michael Griffith, and others. The government sought and received a Temporary Restraining Order and a Preliminary Injunction, which remains in place, and which prevented the pharmacies and pharmacists from dispensing controlled substances.
The government is also seeking civil monetary penalties and treble damages for civil violations of the Controlled Substances Act and the False Claims Act.
In the criminal case, the government also seeks the forfeiture of any property used or intended to be used to commit or facilitate the commission of each offense.
The offenses charged carry between 5-20 years in prison for each count, upon conviction, and fines between $250,000-$1 million.
The charges are merely accusations. All defendants are presumed innocent until proven guilty in a court of law.
This case was investigated by the DEA; the U.S. Department of Health & Human Services-Office of Inspector General; and the Tennessee Bureau of Investigation; with the assistance of the Clay County Sheriff’s Office. Assistant U.S. Attorneys Sarah K. Bogni and Amanda J. Klopf are prosecuting the criminal cases and Assistant U.S. Attorney Ellen Bowden-McIntyre is handling the civil investigation and litigation. The criminal investigation was supported by resources provided by the Department of Justice, Fraud Section, Health Care Fraud, Appalachian Regional Prescription Opioid Strike Force. The civil investigation was assisted by the Department of Justice, Consumer Protection Branch.
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Ceres Man Pleads Guilty to Conspiring to Run an Animal Fighting OperationRead the Press Release
FRESNO, Calif. — Joseph D. Sanford, 74, of Ceres, pleaded guilty today to conspiring to violate the Animal Welfare Act by operating a cockfighting and fighting-bird breeding business, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, Sanford was the owner and operator of Joe Sanford Gamefarm in Ceres, where he bred and sold gamecocks for cockfighting. Sanford also fought his own roosters. Following an undercover purchase of a trio of fighting game birds, federal agents searched Joe Sanford Gamefarm, where Sanford resides, and found a large cockfighting enterprise consisting of 2,956 game fowl. In pleading guilty, Sanford acknowledged that he had shipped game fowl within the United States and to Mexico, Peru and the Philippines for cockfighting.
“The gruesome act of animal fighting has no place in a civilized society and will not be tolerated,” said Dusty Cladis, Acting Special Agent in Charge, U.S. Department of Agriculture Office of the Inspector General. “Our agency has prioritized dismantling animal fighting organizations as we continue to pursue those who would take pleasure and profit in inflicting misery and death upon these defenseless creatures.”
This case is the product of an investigation by the U.S. Department of Agriculture Office of the Inspector General (USDA-OIG); with assistance from the USDA Animal and Plant Health Inspection Service; the IRS Criminal Investigation; Homeland Security Investigations; the U.S. Forest Service; and the Stanislaus County Sheriff’s Office. Assistance was also provided by the Humane Society of the United States, the Placer County Animal Services, and the El Dorado County Animal Services. The U.S. Department of Justice’s Environment and Natural Resources Division and U.S. Marshals Service also lent assistance in the disposal of the fighting roosters and placement of the hens in an animal sanctuary. Assistant U.S. Attorney Karen A. Escobar is prosecuting the case.
Sanford is scheduled for sentencing on March 11, 2022. He faces a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
California Man Sentenced to More Than Six Years in Prison for Federal Hate Crime ConvictionRead the Press Release
A California man was sentenced to 82 months in prison for committing a federal hate crime in connection with attacking a Black man with a knife in Santa Cruz, California. The sentence was handed down by the Hon. Edward J. Davila, U.S. District Judge for the Northern District of California.
Ole Hougen, 45, of Santa Cruz, California, was convicted of the crime on April 9. According to evidence presented at trial, Hougen confronted a 29-year-old Black man who was crossing the street in Santa Cruz. Hougen began screaming racial slurs at him. Hougen then brandished a nine-inch knife and slashed multiple times at the man’s head, chest and stomach, while yelling the racial slurs. A witness testified that Hougen slashed and stabbed at the victim’s head and chest approximately 10-20 times. At the time of the attack, Hougen was on probation after pleading no contest to state charges that he committed a racially motivated assault on a different Black man in 2018. The trial also included evidence of several other incidents where Hougen threatened or committed violent acts while yelling racial slurs. This conviction represents Hougen’s fourth known racially motivated attack against Black men in the last seven years.
A federal grand jury indicted Hougen on Nov. 17, 2020, charging him with a violation of the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act. After a six-day trial, a jury convicted Hougen of the charge. It is the first conviction and sentencing in the Northern District of California under the Shepard-Byrd Act, which was signed into law by President Barack Obama in 2009.
“Racially motivated crimes have no place in our society. This defendant has attacked at least four people because they are Black, and for his most recent racially motivated attack of a Black man the defendant has been convicted,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will continue to vigorously prosecute bias-motivated crimes in an effort to secure justice for victims of these crimes and the communities they are meant to target and intimidate.”
“Racially motivated violent attacks cannot be tolerated in any society,” said Acting U.S. Attorney Stephanie Hinds for the Northern District of California. “The Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act provides significant penalties for violence motivated by racism and other group-hate. This office will use this and every other tool to ensure prosecutions are brought down on criminals committing violence motivated by animus towards our community’s protected groups.”
“Ole Hougen’s violent assault didn't just attack an individual, he attacked the entire community associated with the victim,” said Acting Assistant Director Jay Greenberg of the FBI’s Criminal Investigative Division. “All crime is unacceptable, but hate crimes are particularly cruel. They strike at an unchangeable, fundamental, and defining part of a victim's identity. In this way, they attack everyone who identifies with this victim. Hate crimes are the highest priority of the FBI’s Civil Rights Program because each crime threatens the freedoms and protections guaranteed to all our communities.”
In addition to the prison term, Judge Davila also sentenced Hougen to three years of supervised release.
Assistant U.S. Attorney Marissa Harris and Trial Attorney Michael J. Songer of the Civil Rights Division are prosecuting the case on behalf of the government. The FBI San Francisco Field Office conducted the investigation with the assistance of the Santa Cruz Police Department.
For more information and resources on the department’s efforts to combat hate crimes, visit www.justice.gov/hatecrimes. If you believe you have been a victim of a civil rights violation, please visit: https://civilrights.justice.gov/ to file a report.
California Man Sentenced to More Than Six Years in Prison for Federal Hate Crime ConvictionRead the Press Release
SAN JOSE –Ole Hougen was sentenced to 82 months in prison for committing a federal hate crime in connection with attacking a Black man with a knife on a street in Santa Cruz, Calif. The sentence was handed down by the Hon. Edward J. Davila, United States District Judge.
Hougen, 45, of Santa Cruz, California, was convicted of the crime on April 9. According to evidence presented at trial, Hougen confronted a 29-year-old Black man who was crossing the street in Santa Cruz. Hougen began screaming racial slurs at him. Hougen then brandished a nine-inch knife and slashed multiple times at the man’s head, chest and stomach, while yelling the racial slurs. A witness testified that Hougen slashed and stabbed at the victim’s head and chest approximately 10-20 times. At the time of the attack, Hougen was on probation after pleading no contest to state charges that he committed a racially motivated assault on a different Black man in 2018. The trial also included evidence of several other incidents where Hougen threatened or committed violent acts while yelling racial slurs. This conviction represents Hougen’s fourth known racially motivated attack against Black men in the last seven years.
A federal grand jury indicted Hougen on Nov. 17, 2020, charging him with a violation of the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act. After a six-day trial, a jury convicted Hougen of the charge. It is the first conviction and sentencing in the Northern District of California under the Shepard-Byrd Act, which was signed into law by President Barack Obama in 2009.
“Racially motivated violent attacks cannot be tolerated in any society,” said Acting U.S. Attorney Hinds. “The Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act provides significant penalties for violence motivated by racism and other group-hate. This office will use this and every other tool to ensure prosecutions are brought down on criminals committing violence motivated by animus towards our community’s protected groups.”
“Racially motivated crimes have no place in our society. This defendant has attacked at least four people because they are Black, and for his most recent racially motivated attack of a Black man the defendant has been convicted,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will continue to vigorously prosecute bias-motivated crimes in an effort to secure justice for victims of these crimes and the communities they are meant to target and intimidate.”
"Ole Hougen’s violent assault didn't just attack an individual, he attacked the entire community associated with the victim,” said Acting Assistant Director Jay Greenberg of the FBI’s Criminal Investigative Division. “All crime is unacceptable, but hate crimes are particularly cruel. They strike at an unchangeable, fundamental, and defining part of a victim's identity. In this way, they attack everyone who identifies with this victim. Hate crimes are the highest priority of the FBI’s Civil Rights Program because each crime threatens the freedoms and protections guaranteed to all our communities."
“Justice was served in this landmark investigation,” said Special Agent in Charge Craig Fair of the FBI San Francisco Field Office. “This case shows how critical it is for the community to report hate crimes to law enforcement. Thanks to the work of our FBI Special Agents, the Santa Cruz Police Department, and the brave reporting of members of our community, Ole Hougen was convicted of a federal hate crime by a jury of his peers and will now serve his sentence in federal prison.”
When announcing his sentence from the bench, Judge Davila stated that it was “profoundly wrong to attack someone because of their race” and told Hougen to use his time in prison to “remove the hate from his heart.” In addition to the prison term, Judge Davila also sentenced Hougen to a three-year term of supervised release. Hougen will begin serving his prison term immediately.
Assistant U.S. Attorney Marissa Harris and Trial Attorney Michael J. Songer of the Civil Rights Division are prosecuting the case on behalf of the government. The FBI San Francisco Field Office conducted the investigation with the assistance of the Santa Cruz Police Department.
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