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24 November 2021
U.S. Attorney Files Civil Fraud Lawsuit Against Non-Profit and Settles Fraud Claims Against Its Founder for Inflating Medicaid Reimbursements by Falsely Reporting Millions in CostsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Scott Lampert, the Special Agent in Charge of the New York Office of the U.S. Department of Health and Human Services, Office of Inspector General (“HHS-OIG”), announced today that the United States has filed a civil fraud lawsuit against Maranatha Human Services, Inc. (“MARANATHA”) and HENRY ALFONSO COLEY (“COLEY”) for falsely claiming that millions of dollars expended to benefit for-profit ventures owned and controlled by COLEY and MARANATHA, as well as payments to cover COLEY’s personal costs and excessive payments to COLEY’s family members, were reasonable and necessary costs in connection with MARANATHA’s provision of Medicaid-funded services to individuals with developmental disabilities. MARANATHA is a non-profit organization based in Poughkeepsie, New York; COLEY founded MARANATHA in 1988 and served as its chief executive officer until earlier this year.
Specifically, the Government’s complaint alleges that, with its board’s approval, MARANATHA funded for-profit companies operated by COLEY; paid excessive salaries and consulting fees to COLEY’s family members, often in exchange for little to no work; and paid for tens of thousands of dollars of COLEY’s personal expenses. The Government further alleges that, from 2010 to 2019, COLEY and MARANATHA submitted to the State of New York cost reports that falsely claimed millions of dollars in these expenses as “allowable” costs, which fraudulently inflated MARANATHA’s Medicaid reimbursement rates and resulted in MARANATHA receiving millions of dollars in Medicaid funds to which it was not entitled.
Simultaneous with the filing of the lawsuit, the United States has resolved its claims against COLEY through a settlement approved by U.S. District Judge Kenneth M. Karas. Pursuant to the settlement, COLEY will pay $88,000 to the United States and has admitted and accepted responsibility for conduct alleged by the Government in its complaint as further described below. COLEY has also agreed to pay $132,000 to the State of New York to resolve the State’s claims, for a total recovery of $220,000. The settlement amount is based on the Office’s assessment of COLEY’s ability to pay based on the financial information he provided. COLEY also agreed never to work for or accept payments from any entity that receives funds from a federal healthcare program. In addition, COLEY entered into a Voluntary Exclusion Agreement with HHS-OIG, which prohibits him from participating in Medicaid and other federal healthcare programs for 15 years.
U.S. Attorney Damian Williams said: “For a decade, Henry Alfonso Coley and Maranatha defrauded Medicaid by submitting reports that fraudulently claimed as allowable expenses millions of dollars spent on for-profit companies owned by them, on excessive salaries and fees for Coley’s family members, and on Coley’s personal expenses. These expenses were not related to providing care or assistance to the individuals with developmental disabilities Maranatha was meant to serve. This Office will continue to hold entities and their executives accountable when they abuse our federal healthcare programs.”
HHS-OIG Special Agent in Charge Scott Lampert said: “Any threat to the financial health of Medicaid is a threat to the vulnerable people who depend upon it for critical services. We will continue to hold those who steal from federal health care programs accountable for their actions.”
According to the Government’s complaint, from 2010 through 2019:
MARANATHA was required to submit cost reports, called Consolidated Financial Reports (“CFRs”), to the State of New York each year, specifying the reasonable and necessary costs MARANATHA incurred in providing services for its Medicaid-funded programs. These costs were to be reported as “allowable” costs. MARANATHA was required separately to report its other, “non-allowable” costs; “non-allowable” costs include costs unrelated to its Medicaid-funded programs, as well as any unreasonable or unnecessary costs.
With its board’s approval, MARANATHA funded for-profit companies operated by COLEY and owned by COLEY or MARANATHA, as well as various unincorporated pet projects started by COLEY. One of the chief purposes of these ventures was to serve as vehicles to funnel money to COLEY’s daughter, as well as others associated with COLEY, whom MARANATHA paid for work they purportedly did to support these ventures and projects. Over the course of a decade, not one of these ventures ever launched a product or service or earned a single dollar in revenue. COLEY and MARANATHA hired COLEY’s family members as employees and consultants, some in connection with these for-profit ventures, and others in connection with MARANATHA’s Medicaid-funded services. COLEY and MARANATHA paid excessive salaries and consulting fees to COLEY’s family members, often in return for little to no work. MARANATHA also paid for tens of thousands of dollars of COLEY’s personal expenses, including more than $34,000 for personal training sessions at a gym.
COLEY and MARANATHA knowingly submitted CFRs annually to the State of New York fraudulently reporting these expenses – totaling millions of dollars – as “allowable” costs. On each CFR, COLEY falsely certified to the completeness and accuracy of the report. COLEY and MARANATHA knew that the State of New York relied on providers’ CFRs when setting provider-specific reimbursement rates for certain Medicaid-funded programs, including MARANATHA’s largest Medicaid-funded program. As a result of COLEY’s and MARANATHA’s falsely inflated cost reports, the State of New York awarded MARANATHA a higher reimbursement rate and MARANATHA received millions of dollars in Medicaid funds to which it was not entitled.
COLEY has settled the claims against him in the Government’s complaint. As part of the settlement, COLEY admits, acknowledges, and accepts responsibility for the following conduct:
- COLEY made a presentation to MARANATHA’s board of directors acknowledging that “[i]t was always the plan for Maranatha to use government funds as a launching pad to create private enterprise that would enable it to not be dependent on government while at the same time fulfilling its function” consistent with its mission.
- COLEY was familiar with the requirement that MARANATHA distinguish “allowable costs” from “non-allowable costs” in its CFRs.
- COLEY knew that the CFRs are used by the New York State Department of Health to determine MARANTHA’s reimbursement rates for the provision of Medicaid services.
- In each CFR that MARANATHA submitted since 2010, COLEY certified that the (i) the “information furnished in this report . . . is in accordance with the instructions and is true and correct to the best of my knowledge”; and (ii) the statement attached to the CFR “fully and accurately represents all reportable income and expenditures made for services performed in accordance with the provision of the Mental Hygiene Law and approved budgets.”
- COLEY signed the certifications set out above in CFRs that reported as “allowable costs” amounts expended not for MARANTHA’s provision of Medicaid services but instead to pursue certain for-profit business ventures.
- In particular, MARANATHA submitted CFRs reporting as “allowable costs” costs expended to benefit certain entities owned and/or operated by COLEY and/or MARANATHA that did not provide Medicaid-funded services (the “Non-Medicaid Ventures”).
- MARANATHA paid certain employees and contractors, including COLEY’s family members, to perform work related to the Non-Medicaid Ventures. For example, since 2010, MARANATHA paid COLEY’s daughter more than $300,000. Though much of her time was spent on work related to the Non-Medicaid Ventures, COLEY and MARANATHA reported her full compensation as an “allowable cost” in the CFRs.
- Since 2010, COLEY received more than $2 million from MARANATHA in salary and benefits, and MARANTHA claimed the full amount of his compensation as “allowable costs” on its CFRs. However, COLEY devoted much of his to time to working on the Non-Medicaid Ventures.
In connection with the filing of the lawsuit and settlement, the United States joined a private whistleblower lawsuit that had previously been filed under seal pursuant to the False Claims Act.
Mr. Williams praised the outstanding investigative work of the HHS-OIG, and he thanked the Medicaid Fraud Control Unit at the New York State Attorney General’s Office for its extensive collaboration in the investigation.
The case is being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorney Jacob Lillywhite is in charge of the case.
Two Orange County Men Charged with Drug Trafficking in Criminal ComplaintRead the Press Release
Greensboro, NC – Two Orange County men were arrested on Thursday, November 17, 2021, for possession of eight kilograms of cocaine.
According to court documents, Epifanio Martinez Rodriguez (40) and Felipe Carranza Rivera (30), both Mexican citizens residing in the United States illegally, were arrested after a Confidential Source (CS) working with the Orange County Sheriff’s Office participated in a controlled purchase of eight kilograms of cocaine on November 17, 2021. Investigators agreed to meet the suspects in Mebane after the CS communicated with Rodriguez and Rivera on social media about purchasing cocaine.
Rodriguez and Rivera are each charged with one count of conspiracy to distribute cocaine and one count of possession with intent to distribute cocaine. If convicted, they each face a mandatory minimum of ten years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Orange County Sheriff’s Office, with the Drug Enforcement Administration, are investigating the case. U.S. Attorney Sandra Hairston of the Middle District of North Carolina made the announcement, and Assistant U.S. Attorney Michael A. DeFranco is prosecuting the case.
A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Two MS-13 Leaders Convicted of Racketeering Conspiracy and Conspiring to Commit Multiple MurdersRead the Press Release
Greenbelt, Maryland – A federal jury convicted El Salvadorian nationals Junior Noe Alvarado-Requeno, a/k/a “Insolente” and “Trankilo,” age 24, of Landover, Maryland, and Miguel Angel Corea Diaz, a/k/a “Reaper,” age 41, of Long Branch, New Jersey yesterday for conspiring to participate in La Mara Salvatrucha, a transnational criminal enterprise also known as MS-13. Alvarado-Requeno was also convicted of three counts each of murder in aid of racketeering and conspiracy to commit murder in aid of racketeering and conspiracy to possess with intent to distribute marijuana and cocaine. Corea Diaz was also convicted of one count each of conspiracy to commit murder in aid of racketeering and murder in aid of racketeering; conspiracy to possess with intent to distribute marijuana, cocaine, and heroin; and possession with intent to distribute heroin.
The convictions were announced by United States Attorney for the District of Maryland Erek L. Barron; Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; Acting Nassau County District Attorney Joyce A. Smith; Assistant Director in Charge Steven M. D'Antuono, of the FBI Washington Field Office; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore Office; Administrator Anne Milgram of the Drug Enforcement Administration; Chief Malik Aziz of the Prince George’s County Police Department; Chief Marcus Jones of the Montgomery County Police Department; and Bedford County (VA) Sheriff Michael W. Miller.
“The brutal and tragic violence perpetrated by these MS-13 members and their fellow gang is totally unacceptable. The U.S. Attorney’s Office in Maryland and our local and state partners are working together to remove these violent gang members to keep our communities safe from the threat of MS-13,” said U.S. Attorney Erek L. Barron. “We will continue to work to bring to justice these transnational gangs, but we need the continued help of members of our communities in order to carry on our work against MS-13.”
“MS-13 terrorizes communities across the western hemisphere using fear, violence, and intimidation,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “MS-13 exploits undocumented people and those communities that may not have easy access to law enforcement. This prosecution demonstrates the Department of Justice’s commitment to dismantling this criminal organization and protecting all people.”
Acting Nassau County District Attorney Joyce A. Smith said, “This verdict has brought justice to the many victims – named and unnamed, individuals and immigrant communities in the eastern United States – that have been terrorized by MS-13. Miguel Angel Corea Diaz’ reign of terror is over. I am proud of the contribution my office has made to our federal partner’s efforts through our 22-agency partnership and wiretap investigation that revealed Corea Diaz as a regional director of this brutal, transnational gang. We are truly safer today and I thank the U.S. Attorney’s Office in Maryland and the U.S. Department of Justice for securing a conviction against these dangerous defendants.”
“This investigation is an example of the dedication and hard work of not only the FBI, but also the Northern Virginia Safe Streets/HIDTA task force, and all our partners who work each day to fight the crime and violence that terrorize communities,” said Steven M. D'Antuono, Assistant Director in Charge of the FBI Washington Field Office. “The FBI will continue to take steps to aggressively target and pursue leaders of transnational criminal gangs like MS-13, who have been involved in scores of criminal activity. These criminal acts, such as racketeering, murder, extortion, drug trafficking, money laundering, and witness tampering will not be tolerated, and these two guilty verdicts are clear examples of law enforcement’s resolve to eradicate these violent gangs.”
“This verdict not only deals a crippling blow for MS-13 operating on the east coast, it also represents a victory for the citizens terrorized by MS-13,” said Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore. “The partnership of HSI, FBI, DEA, Montgomery County Police, Prince George’s County Police and Bedford County Sheriff’s Office makes for a strong team, and other criminal elements operating in the area should take notice; we will come after them as well.”
“Criminal organizations, drugs, and violence are inextricably linked,” said Administrator Anne Milgram of the Drug Enforcement Administration. “There is no better example than MS-13, which is notorious for its ruthless tactics to further its criminal activities. Today’s convictions will prevent these MS-13 leaders from inflicting brutality on our communities. DEA is committed to the tireless interagency and international efforts to remove the malignant presence of drug trafficking organizations and safeguard the health and well-being of Americans.”
MS-13 is a transnational gang composed primarily of immigrants or descendants from El Salvador. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Frederick County, Anne Arundel County, Prince George’s County, and Montgomery County, Maryland.
According to the evidence presented at the four-week trial, between 2015 and 2018, Alvarado-Requeno and Corea Diaz controlled and operated the Sailors Locos Salvatruchos Westside (S.L.S.W. or “Sailors”) Clique through a pattern of racketeering activity, which included murder, extortion, drug trafficking, money laundering, and witness tampering. Evidence showed that the gang ran a protection scheme in and around its home base in Langley Park, Maryland, and extorted local businesses by charging them “rent” for the privilege of operating in MS-13 “territory.” The gang also trafficked in illegal drugs, including marijuana, heroin, and cocaine. A large share of the proceeds of the gang’s illegal activities were sent to gang leadership in El Salvador to further promote the goals of the gang, using structured transactions and intermediaries to avoid law enforcement scrutiny.
The Sailors Clique committed acts of violence against suspected rival gang members, as well as against its own membership for breaking gang rules. In June 2016, Alvarado-Requeno ordered members of the Sailors Clique to murder a suspected rival in the woods at Malcolm King Park in Gaithersburg. Luring him with the promise of sex with a female MS-13 associate, the gang members ambushed the teenaged victim and stabbed him 153 times. In fact, the victim did not belong to any gang.
In March 2017, a member of the Sailors Clique who was hiding from law enforcement in the Lynchburg, Virginia area had a dispute with a local high school student over marijuana. In response, Alvarado-Requeno and Corea-Diaz organized a squad of MS-13 members to drive down to Lynchburg and murder the high schooler. The gang members kidnapped the student from his front lawn and cut his hand off before killing him. After the murder, the Alvarado-Requeno and Corea Diaz helped to hide and protect the killers who escaped the scene from law enforcement.
Among the most important rules of MS-13 is the prohibition against talking to law enforcement, embodied by the maxim ver, oir, y callar – see, hear, and say nothing. The gang enforced this rule by placing a “green light” – an order to kill – on any member of MS-13 who was thought to be informing on the gang. In December 2016, Alvarado-Requeno directed and participated in the murder of a 14-year-old member of MS-13 who was suspected of talking to the police. The boy’s remains were discovered eighteen months later in the woods outside of Germantown, Maryland.
The jury made special findings beyond a reasonable doubt that as part of the racketeering conspiracy Alvarado-Requeno murdered two other individuals and as part of the racketeering conspiracy Correa Diaz conspired to murder a third person.
Alvarado-Requeno and Corea-Diaz each face mandatory sentences of life imprisonment. U.S. District Judge Paula Xinis has not yet scheduled sentencing.
Anyone with information about MS-13 is encouraged to provide their tips to law enforcement. The FBI and Homeland Security Investigations both have nationwide tiplines that you can call to report what you know. You can reach the FBI at 1-866-STP-MS13 (1-866-787-6713), or you can call HSI at 1-866-DHS-2-ICE.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
United States Attorney Erek L. Barron and Assistant Attorney General Kenneth A. Polite commended the Nassau County District Attorney’s Office, the FBI, HSI, the DEA Washington and Buffalo Field Divisions, the Prince George’s County Police Department, the Montgomery County Police Department, and the Bedford County Sherriff’s Office for their work in the investigation and prosecution. Mr. Barron and Mr. Polite thanked Assistant U.S. Attorney Timothy Hagan, and Trial Attorneys Julie Finocchiaro and Alexander Gottfried of the Justice Department’s Organized Crime and Gang Section, who are prosecuting the case.
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Two MS-13 Leaders Convicted of Racketeering Conspiracy and Conspiring to Commit Multiple MurdersRead the Press Release
Yesterday, a federal jury in Maryland convicted two El Salvadorian nationals for conspiring to participate in La Mara Salvatrucha, a transnational criminal enterprise, commonly known as MS-13.
Junior Noe Alvarado-Requeno, aka Insolente, aka Trankilo, 25, and Miguel Angel Corea Diaz, aka Reaper, 39, were convicted of multiple racketeering-related offenses. Alverado-Requeno and Corea-Diaz were both convicted on racketeering conspiracy, conspiracy to commit murder in aid of racketeering, murder in aid of racketeering, and conspiracy to distribute controlled substances.
“MS-13 terrorizes communities across the western hemisphere using fear, violence, and intimidation,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “MS-13 exploits undocumented people and those communities that may not have easy access to law enforcement. This prosecution demonstrates the Department of Justice’s commitment to dismantling this criminal organization and protecting all people.”
“The brutal and tragic violence perpetrated by these MS-13 members and their fellow gang is totally unacceptable,” said U.S. Attorney Erek L. Barron for the District of Maryland. “The U.S. Attorney’s Office in Maryland and our local and state partners are working together to remove these violent gang members to keep our communities safe from the threat of MS-13. We will continue to work to bring to justice these transnational gangs, but we need the continued help of members of our communities in order to carry on our work against MS-13.”
“This investigation is an example of the dedication and hard work of not only the FBI, but also the Northern Virginia Safe Streets/HIDTA task force, and all our partners who work each day to fight the crime and violence that terrorize communities,” said Assistant Director in Charge Steven M. D'Antuono of the FBI’s Washington Field Office. “The FBI will continue to take steps to aggressively target and pursue leaders of transnational criminal gangs like MS-13, who have been involved in scores of criminal activity. These criminal acts, such as racketeering, murder, extortion, drug trafficking, money laundering, and witness tampering will not be tolerated, and these two guilty verdicts are clear examples of law enforcement’s resolve to eradicate these violent gangs.”
“This verdict not only deals a crippling blow for MS-13 operating on the east coast, it also represents a victory for the citizens terrorized by MS-13,” said Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore. “The partnership of HSI, FBI, DEA, Montgomery County Police, Prince George’s County Police and Bedford County Sheriff’s Office makes for a strong team, and other criminal elements operating in the area should take notice; we will come after them as well.”
“Criminal organizations, drugs, and violence are inextricably linked,” said Administrator Anne Milgram of the Drug Enforcement Administration. “There is no better example than MS-13, which is notorious for its ruthless tactics to further its criminal activities. Today’s convictions will prevent these MS-13 leaders from inflicting brutality on our communities. DEA is committed to the tireless interagency and international efforts to remove the malignant presence of drug trafficking organizations and safeguard the health and well-being of Americans.”
According to court documents, MS-13 is organized into a series of sub-units or “cliques” that operate in specific geographic locations, and each clique is typically controlled by a single leader, sometimes known as the “First Word.” Alvarado-Requeno and Corea Diaz were both leaders of the Sailors clique. Corea Diaz held the title of Primera Palabra, or “First Word,” for the entire east coast. Alvarado-Requeno was the First Word of the Sailors for the Sailors in Maryland.
According to evidence presented at the four-week trial, between 2015 and 2018, the defendants controlled and operated the Sailors Locos Salvatruchos Westside (SLSW or Sailors) through a pattern of racketeering activity, including murder, extortion, drug trafficking, money laundering, and witness tampering. Evidence showed that the gang ran a protection scheme in and around its home base in Langley Park, Maryland, and extorted local businesses by charging them “rent” for the privilege of operating in MS-13 “territory.” The gang also trafficked in illegal drugs, including marijuana, heroin, and cocaine. A large share of the proceeds of the gang’s illegal activities were sent to gang leadership in El Salvador to further promote the illicit activities of the gang, using structured transactions and intermediaries to avoid law enforcement scrutiny.
The Sailors Clique committed acts of violence against suspected rival gang members, as well as its own membership for breaking gang rules. In June 2016, Alvarado-Requeno ordered members of the Sailors Clique to murder a suspected rival in the woods at Malcolm King Park in Gaithersburg. Luring him with the promise of sex with a female MS-13 associate, the gang members ambushed the teenaged victim and stabbed him 153 times. In fact, the victim did not belong to any gang.
In March 2017, a member of the Sailors Clique who was hiding from law enforcement in the Lynchburg, Virginia, area had a dispute with a local high school student over marijuana. In response, Alvarado-Requeno and Corea-Diaz commanded a squad of MS-13 members to drive down to Lynchburg and murder this high school student. The gang members kidnapped the student from his front lawn and cut his hand off before killing him. After the murder, the defendants helped to hide and protect the killers from law enforcement.
Among the most important rules of MS-13 is the prohibition against talking to law enforcement, embodied by the maxim ver, oir, y callar – see, hear, and say nothing. The gang enforced this rule by placing a “green light” – an order to kill – on any member of MS-13 who was thought to be informing on the gang. In December 2016, Alvarado-Requeno directed and participated in the murder of a 14-year-old member of MS-13 who was suspected of talking to the police. The boy’s remains were discovered eighteen months later in the woods outside of Germantown, Maryland.
The jury made special findings beyond a reasonable doubt that as part of the racketeering conspiracy, Alvarado-Requeno murdered two other individuals and, as part of the racketeering conspiracy, Correa Diaz conspired to murder a third person.
Alvarado-Requeno was convicted of three counts each of murder in aid of racketeering and conspiracy to commit murder in aid of racketeering and conspiracy to possess with intent to distribute marijuana and cocaine. Corea Diaz was convicted of one count each of conspiracy to commit murder in aid of racketeering and murder in aid of racketeering; conspiracy to possess with intent to distribute marijuana, cocaine, and heroin; and possession with intent to distribute heroin. Alvarado-Requeno and Corea-Diaz each face mandatory sentences of life imprisonment.
The FBI’s Washington Field Office, HSI Baltimore, the DEA’s New York Field Division and Baltimore District Office, Prince George’s County Police Department, Montgomery County Police Department, and Bedford County Sherriff’s Office investigated the case. Nassau County District Attorney’s Office provided valuable assistance.
Trial Attorneys Julie Finocchiaro and Alexander Gottfried of the Justice Department’s Organized Crime and Gang Section and Assistant U.S. Attorney Timothy Hagan of the U.S. Attorney’s Office for the District of Maryland are prosecuting the case.
Twice-Convicted Sex Offender Sentenced to 40 Years for Creating and Trafficking in Images and Videos of Child Sexual AbuseRead the Press Release
INDIANAPOLIS – An Indianapolis man was sentenced to 40 years in federal prison for sexually exploiting a Michigan teen and trafficking in child sexual abuse images and videos. He was previously convicted in state court of sexually abusing children and possessing images of child sexual abuse.
In 2020, investigators uncovered that Charles Piel, 24, had been sending and receiving images and videos of child sexual abuse over the internet, including sending such material to a minor child in Florida in 2019. Following his arrest, investigators further examined his electronic devices and online accounts and found other sexually explicit communications with a child in Michigan. The investigation showed that in September of 2020, Piel traveled to Michigan to engage in sexual conduct with the child, and that Piel made recordings of the conduct. Investigators found that after this, Piel continued to communicate with the child, and eventually created additional recordings of the child engaged in sexually explicit conduct over video conferencing. Piel maintained all these recordings, along with a larger collection of child sexual abuse images and videos, until his arrest in October of 2020.
At the time he committed these crimes, Piel had already been twice convicted of child sexual abuse offenses. In 2017, Piel was convicted in Hendricks County, Indiana of Sexual Battery for his sexual contact with two minor boys. He was sentenced to a term of probation. In 2018, while on probation, Piel committed and was convicted in Marion County of Possession of Child Pornography. He was placed on Community Corrections Home Detention, which he violated, resulting in a stint in jail. Following his release, Piel began his sexually explicit communications with the minor in Florida and the conduct that led to this federal prosecution.
“Charles Piel is a habitual child predator who made a career out of sexually abusing and exploiting children,” said U.S. Attorney Zachary A. Myers. “I commend the work of the investigators and prosecutors who have taken this child predator out of our community and helped to bring justice to his young victims. This case is yet another example of the outstanding work of Indiana’s nationally-renowned Internet Crimes Against Children Task Force.”
In fiscal year 2019, the Southern District of Indiana was second out of the ninety-four federal districts in the number of child exploitation cases prosecuted.
“The world is a safer place without Mr. Piel on the streets. No longer will he be able to prey on some our most innocent residents. Thank you to the men and women of IMPD who work day after day to keep our streets safe,” said IMPD Police Chief Randal Taylor.
“Today’s sentencing illustrates the Secret Service’s commitment to investigate crimes involving the sexual exploitation of children through our liaison efforts with the National Center for Missing and Exploited Children and our close partnerships with our state, local and federal agencies,” said Eric K. Reed, Special Agent in Charge, Secret Service Indianapolis Field Office. “The Secret Service is proud to have partnered with the Indianapolis Metropolitan Police Department and the U.S. Attorney’s Office to bring this case to justice and protect our nation’s children from these most heinous crimes.”
This case was the result of an investigation by the Indianapolis Metropolitan Police Department and the United States Secret Service.
According to Assistant United States Attorney Kristina M. Korobov, who prosecuted the case, said Piel was ordered to pay $20,000 in restitution and will be federally supervised for a life term following his release from prison.
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 U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, 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
Troy Resident Charged with Distributing Child PornographyRead the Press Release
ALBANY, NEW YORK – Terence Ratigan, age 39, of Troy, New York, appeared in federal court yesterday on child pornography charges. The announcement was made by United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
A criminal complaint alleges that Ratigan distributed child pornography over the internet. The charge in the criminal complaint is merely an accusation. The defendant is presumed innocent unless and until proven guilty.
The charge against Ratigan carries a mandatory minimum sentence of 5 years and a maximum of 20 years in prison, a post-release term of supervision of between 5 years and life, and a fine of up to $250,000.
Ratigan made his initial appearance yesterday before United States Magistrate Judge Daniel J. Stewart. Ratigan requested to adjourn his detention hearing, set for today, to a later date. Ratigan will remain detained pending future hearings in this matter.
This case is being investigated by the FBI and its Child Exploitation Task Force, which includes members of federal, state and local law enforcement agencies, including the Rotterdam, Troy, and Colonie Police Departments and the New York State Police. The case is being prosecuted by Assistant U.S. Attorney Rachel Williams.
The case is prosecuted as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Texas Vape Shop Owner Pleads Guilty to Unlawful Importation of Counterfeit Vaping ProductsRead the Press Release
A Texas vape shop owner pleaded guilty Tuesday to a felony charge relating to the importation of counterfeit vaping products, the Department of Justice announced. Muhammad Uzair Khalid (Uzair), 36, of Garland, Texas, pleaded guilty in the U.S. District Court for the Northern District of Texas to one count of trafficking in counterfeit goods, in violation of 18 U.S.C. § 2320(a)(1). Uzair admitted that, from October 2017 to November 2019, he intentionally and unlawfully imported counterfeit vaping-related items from China, including counterfeit vaping atomizers, labels, boxes and bags for vaping-related products.
Since August 2019, the Centers for Disease Control and Prevention (CDC), the Food and Drug Administration (FDA), state and local health departments and other clinical and public health partners have been investigating a 2019 to 2020 national outbreak of E-cigarette or Vaping Product Use-Associated Lung Injury (EVALI) that involved more than 1,000 reports of lung injuries — including some resulting in deaths — following the use of vaping products. As the public health investigation has continued, authorities have warned that the injuries may be linked to the use of vaping products containing Vitamin E acetate, as well as tetrahydrocannabinol (THC).
During a November 2019 search of a Texas vape shop owned by Uzair, Homeland Security Investigations (HSI) special agents seized counterfeit vaping-related items, as well as a machine used to fill vape cartridges, several items that tested positive for THC and an injector mechanism with an amber substance containing Vitamin E acetate.
In pleading guilty, Uzair admitted that he regularly communicated with Chinese manufacturers about the production and sale of counterfeit vaping products. In particular, Uzair consulted with Chinese manufacturers on methods to imitate the branding and logos of well-known American vape companies and imported and sold imitation vaping devices, labels and packaging. Uzair further admitted that he adopted and used those counterfeit marks to boost his sales. Uzair also sold numerous other counterfeit goods at his vape shop.
“The Department of Justice takes counterfeiting seriously,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “We will continue working with our law enforcement partners to take these products off the market.”
“Our investigation made clear that we needed to take swift action against counterfeit vaping-related items,” said U.S. Attorney Chad E. Meacham for the Northern District of Texas. “The Justice Department will not tolerate the importation of black-market goods.”
“HSI is committed to enforcing the nation’s intellectual property rights laws to help safeguard American consumers said Acting Special Agent in Charge Christopher Miller of HSI Dallas. “We strive to protect legitimate U.S. businesses from financial harm caused by criminal organizations that profit from trafficking in counterfeit goods, including counterfeit vaping products.”
U.S. Magistrate Judge Renee Harris Toliver took the defendant’s guilty plea in federal court in Dallas.
Assistant U.S. Attorney Phelesa M. Guy of the U.S. Attorney’s Office for the Northern District of Texas and Trial Attorneys Speare Hodges and Patrick Runkle of the Department of Justice Civil Division’s Consumer Protection Branch are prosecuting the case. This matter was primarily investigated by the U.S. Department of Homeland Security.
Roanoke Man Pleads Guilty to Murder in Aid of Racketeering and Conspiracy Charges, Faces Mandatory Life SentenceRead the Press Release
ROANOKE, Va. – A Roanoke man, Demonte Rashod Mack, 32, admitted today that he was a member of the Rollin’ 30s Crips and pleaded guilty to murder in aid of racketeering and conspiracy charges for gang-related violence throughout the City of Roanoke.
Mack and his alleged co-conspirators, Trayvone Kasey, Chauncey Levesy, and others were members and associates of the Rollin’ 30s Crips, which also called itself the “Dirt Gang.” The Rollin’ 30s Crips are a national street gang founded in the greater Los Angeles, California area with smaller sets in other cities throughout the United States. The Roanoke set of the Rollin’ 30s operated primarily in northwest Roanoke, centered in and around the Lansdowne neighborhood.
“Reducing violent crime through impactful prosecutions like that of the Rollin’ 30s is a priority of this United States Attorney’s Office,” United States Attorney Christopher R. Kavanaugh said today. “We will continue to partner with local, state, and federal law enforcement partners to ensure the cases we bring serve to make our communities safer.”
“Today's conviction demonstrates the FBI's commitment to working in conjunction with our partners to vigorously investigate and bring to justice those who commit violent crimes,” Special Agent in Charge Stanley M. Meador of the FBI’s Richmond Division said today.
Roanoke City Police Chief Sam Roman said, “This outcome is a great example of what happens when law enforcement has a successful partnership with the prosecutorial side of the justice system. Thanks to our partnerships with local, state, and federal law enforcement, Roanoke is a safer place. Our community is sending a strong message to those who choose to perpetuate gun violence and organized crime in our city: we will find you and do everything we can to hold you accountable for your actions.”
Mack admitted today that he, Kasey, Levesy, and others conspired to conduct a pattern of racketeering activity, including multiple threats and acts of violent crime.
Specifically, in June of 2017, Mack conspired with Kasey, Levesy, and others to murder “Victim D.F.” Court documents further allege that Mack and Kasey murdered “Victim N.L.” at the direction of a leader within the gang. Both D.F. and N.L. were members of the Rollin’ 30s gang, but fell out of favor with them in early summer of 2017.
N.L. was only seventeen years old when he was murdered and had graduated from high school just a few weeks earlier. He was still alive when police officers found him at the apartment complex, but died shortly thereafter. After the shooting, Mack and Levesy met up with other Rollin’ 30s gang members and reported everything that occurred to the gang’s leadership.
The investigation of the case was conducted by the City of Roanoke Police Department and the Federal Bureau of Investigation’s Violent Crimes Task Force. The investigation was a coordinated effort that also involved law enforcement assets from the Virginia State Police, the Roanoke County Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Drug Enforcement Administration.
Assistant U.S. Attorneys Matthew Miller, Coleman Adams, and Michael Baudinet are prosecuting the case.
This prosecution is 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 works together to identify the most pressing violent crime problems in the community and develops 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.
Roanoke Man Arrested on Federal Gun Charges in Relation to 2019 Murder on Denniston AvenueRead the Press Release
ROANOKE, Va. – A Roanoke man, who was charged but later acquitted in state court of a May 2019 murder that took place on Denniston Avenue in the City of Roanoke, has been arrested on a federal criminal complaint out of the Western District of Virginia on federal firearms charges related to the same incident.
Demarcus Sahiquan Glenn, 23, was charged by state authorities with murder, attempted robbery and use of a firearm in commission of each of those crimes in relation to the May 2019 murder. At his trial, Glenn testified that he arrived at the location to engage in a drug transaction during which, according to Glenn, the victim pulled a gun on him. Glenn testified he pulled his own gun from his pocket and shot and killed the victim, T.P., who was 16 years old.
“It is a federal crime to use, carry, brandish, or discharge a firearm during and in furtherance of a drug transaction. My office is committed to playing a role with its federal, state, and local partners in addressing the gun violence in Roanoke,” United States Attorney Christopher R. Kavanaugh said today. “If you shoot and kill another person in the Western District of Virginia, the U.S. Attorney’s Office is going to follow the facts and the law and seek federal charges when appropriate.”
“The FBI is committed to working with the United States Attorney’s Office to address drug activity and violent crime in the Roanoke area,” Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Division said today. “We will continue to work with our partners to vigorously investigate and hold accountable those who pose risks to our communities and encourage residents to immediately report incidents to local law enforcement or the FBI through tips.FBI.gov.”
Glenn was arrested yesterday and charged with using and carrying a firearm during a drug trafficking crime, possessing a firearm in furtherance of a drug trafficking crime, and brandishing and discharging said firearm. If convicted, Glenn faces a mandatory minimum of 10 years in prison and a maximum term of life imprisonment. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant U.S. Attorneys Coleman Adams, Kristin B. Johnson and Matthew Miller are prosecuting the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders works together to identify the most pressing violent crime problems in the community and develops 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.
A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Readout of U.S.-Mexico Bilateral Law Enforcement MeetingRead the Press Release
Yesterday, U.S. Ambassador to Mexico Ken Salazar and the Department of Justice’s Office of International Affairs hosted a regional bilateral meeting in Tijuana, Mexico to discuss security cooperation matters. Specifically, the two delegations discussed deepening coordination on fighting human smuggling and firearms trafficking in the region.
The U.S. delegation was led by Ambassador Salazar and Deputy Assistant Attorney General and Counselor for International Affairs Bruce Swartz, and included Acting U.S. Attorney Randy Grossman for the Southern District of California and California Attorney General Rob Bonta, as well as representatives from the FBI; U.S. Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); Homeland Security Investigations; U.S. Customs and Border Protection, U.S. Border Patrol; the Justice Department’s Office of Overseas Prosecutorial Development, Assistance and Training (OPDAT) and the San Diego District Attorney’s Office.
The Mexican delegation, led by Undersecretary of Public Security Ricardo Mejia (SSPC), included representatives of the Mexican Prosecutor General’s Office (FGR), the Baja California Attorney General’s Office, the Army (SEDENA), the Navy, (SEMAR), the National Migration Institute (INAMI), National Intelligence Center (CNI), the National Guard, and the Foreign Ministry (SRE).
The two delegations discussed how they could build on and further strengthen existing coordination of enforcement efforts and information-sharing, in order to combat arms trafficking and human smuggling.
Both agreed to continue to identify, investigate, and prosecute individuals responsible for the illegal exportation of firearms that are ending up in the hands of violent cartels and criminal organizations.
The U.S. and Mexico law enforcement partners committed to enhanced information sharing and future coordination meetings.
Orange County, NY, Man Charged with Threatening A State Official and A Federal JudgeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that a federal grand jury has returned a two-count indictment charging Daniel DeGroat, 30, of Middletown, NY, with mailing threatening communications. The charge carries a maximum penalty of 10 years in prison, and a $250,000 fine.
Assistant U.S. Attorney Franz M. Wright, who is handling the case, stated that according to the indictment, in November 2020, the defendant mailed threatening communications to the Acting Commissioner of the New York State Department of Corrections and Community Supervision, and a federal judge.
The indictment is the result of an investigation by the New York State Department of Corrections and Community Supervision, under the direction of Acting Commissioner Anthony J. Annucci; the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia; and the U.S. Marshals Service, under the direction of Marshal Charles Salina.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Nigerian Man Sentenced to 87 Months’ Imprisonment for Laundering $1.89 Million in Fraud ProceedsRead the Press Release
WILLIAMSPORT- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jabin Godspower Okpako, age 36, was sentenced on November 23, 2021, to 87 months’ imprisonment by U.S. District Court Chief Judge Matthew W. Brann for conspiring to launder approximately $1.89 million in mail and wire fraud proceeds.
According to United States Attorney John C. Gurganus, Jabin Okpako and his wife, codefendant Christine Bradley Okpako, age 54, of Sayre, Pennsylvania, received approximately $1,898,046 million in proceeds from a mail and wire fraud scheme, laundered the funds through numerous bank and wire transactions in multiple states, and transferred the funds out of the United States to three separate bank accounts in Nigeria.
The mail and wire fraud scheme sought to defraud multiple female victims throughout the United States, ranging in age from 55 to 85. The victims had visited online game, relationship and dating web sites, including Instagram, Facebook, Words with Friends, and What’s App. The conspirators, located in the United States and West Africa, befriended the victims through interaction and exchanges of photos on the web sites via text and instant messaging. After cultivating online relationships with the victims, the conspirators fraudulently induced the victims to send and transmit funds for various fictitious reasons and purposes, including to assist a worker in Alaska who fell from a tower, to purchase an apartment in Washington, D.C., to assist the United Nations, to repair machinery and equipment on an oil drilling rig, to pay for medicine, to recover a $6 million inheritance, and to make an investment in gold. After fraudulently inducing the victims to provide funds for these fictitious reasons, the unindicted conspirators instructed the victims to transmit checks and cash to Okpako and Bradley at their residence in Sayre, Pennsylvania.
In sentencing Okpako, Chief Judge Brann stated that Okpako and his wife continued to transfer fraud proceeds to Nigeria even after numerous banks closed their accounts based on the suspicious and irregular nature of the transactions. Chief Judge Brann also noted that Okpako and his wife continued to conduct money laundering transfers despite receiving a warning letter from the FBI concerning their activities. Chief Judge Brann ordered Okpako to make restitution in the amount of $440,950 to victims and forfeit proceeds of the criminal activity.
Christin Bradley Okpako plead guilty on March 31, 2021, to conspiracy to commit money laundering through mail and wire fraud and is awaiting sentencing.
The case was investigated by the FBI. Assistant U.S. Attorney George J. Rocktashel prosecuted the case.
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New United States Attorney Takes Oath of OfficeRead the Press Release
Greensboro, NC – Sandra J. Hairston was sworn-in as the next United States Attorney for the Middle District of North Carolina on November 23, 2021. Chief Judge Thomas J. Schroeder administered the oath of office to U.S. Attorney Hairston in a private ceremony yesterday evening.
Ms. Hairston was nominated for the position of United States Attorney by President Joseph R. Biden on September 28, 2021. She was confirmed by the Senate on November 19, 2021.
Ms. Hairston joined the United States Attorney’s Office for the MDNC in 1990. During more than thirty years as an Assistant United States Attorney, Ms. Hairston has served as Deputy Chief of the Criminal Division and Lead Attorney in the Organized Crime Drug Enforcement Task Force (OCDETF) Section in the MDNC. She was named First Assistant United States Attorney in April 2014. Ms. Hairston also served as Acting United States Attorney from January 14, 2017 to January 3, 2018, and from March 1, 2021 to November 23, 2021.
From April 1994 until June 1996, Ms. Hairston served as Chief of the Criminal Division in the United States Attorney’s Office for the Eastern District of North Carolina. Ms. Hairston returned to the MDNC in late June 1996.
Ms. Hairston began her legal career in 1987 as an Assistant District Attorney in the Thirteenth Prosecutorial District of North Carolina.
Ms. Hairston is a 1981 graduate of the University of North Carolina at Charlotte where she received a Bachelor of Arts degree in English. In 1987, she was awarded the degree
of Juris Doctor from the North Carolina Central University School of Law in Durham, North Carolina.
In 2002, Ms. Hairston received the Director’s Award from the Executive Office for United States Attorneys for Superior Performance as an Assistant United States Attorney.
Ms. Hairston was the 2015 recipient of the Peter S. Gilchrist III Award, which is given by the Criminal Justice Section of the North Carolina Bar Association to a Prosecutor “who exemplifies the highest ideals of the profession.”
A formal investiture ceremony for U.S. Attorney Hairston will be held at a date to be determined.
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New Haven Man Sentenced to Federal Prison for Drug Trafficking OffenseRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, today announced that CHAWN BATTLE, 49, of New Haven, was sentenced yesterday by U.S. District Judge Michael P. Shea in Hartford to 21 months of imprisonment, followed by four years of supervised release, for a narcotics trafficking offense.
According to court documents and statements made in court, in 2019, the DEA New Haven Task Force began an investigation into a New Haven-based drug trafficking network headed by Michael Smith, also known as “Head.” The investigation, which included court-authorized wiretaps, revealed that Smith and others were distributing heroin and crack cocaine throughout the New Haven area. Battle was one of Smith’s cocaine suppliers.
In December 2019, Smith was intercepted on a wiretap describing having shot at a rival drug dealer. New Haven Police collected 31 shell casings from a location in the Fair Haven neighborhood where the shooting occurred. Smith was arrested on December 23, 2019.
Battle was arrested on September 16, 2020. On March 24, 2021, he pleaded guilty to one count of conspiracy to possess and distribute cocaine.
Battle’s criminal history spans more than 30 years and includes several convictions, including a federal conviction in 2001 for distributing more than one kilogram of PCP. He was sentenced to 151 months of imprisonment for that prior federal offense.
On April 15, 2021, Smith pleaded guilty to drug, firearm and money laundering charges. He awaits sentencing.
This investigation is being conducted by the DEA New Haven Task Force, the Internal Revenue Service – Criminal Investigation Division, and the New Haven, West Haven, Hamden, East Haven, North Haven, Ansonia, Meriden and Derby Police Departments.
The case is being prosecuted by Assistant U.S. Attorneys John T. Pierpont, Jr. and Elena L. Coronado through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Moline Man Sentenced to Prison for Drug and Firearm ChargesRead the Press Release
DAVENPORT, Iowa – A Moline, Illinois man, Devon Allen McConnell, age 36, was sentenced on Thursday, November 18, 2021 by United States District Court Chief Judge John A. Jarvey to 200 months in prison for Possession with Intent to Distribute Methamphetamine, Possession of a Firearm in Furtherance of a Drug Trafficking Crime, and Felon in Possession of a Firearm. McConnell was ordered to serve three years of supervised release to follow his prison term and pay $300 to the Crime Victims’ Fund.
According to court documents, McConnell was identified by law enforcement when officers intercepted McConnell with 1.31 grams of ice methamphetamine and a loaded Taurus nine-millimeter firearm. In a post-Miranda interview, McConnell admitted he was on his way to meet with another person to the sell the methamphetamine in his possession. Further, McConnell admitted he possessed the firearm and carried it with him during drug deals. As a convicted felon, McConnell was unable to legally possess firearms and ammunition. McConnell pleaded guilty to these offenses on July 21, 2021.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Davenport Police Department and the Moline Police Department investigated the case.
Maryland Man Sentenced to 30-Month Prison Term for Scam Involving Fake Sales of PuppiesRead the Press Release
WASHINGTON – A Maryland man who advertised the sale of pit bull puppies on various websites was sentenced today to 30 months in prison for a scheme in which he generated at least $158,000 in money transfers from more than 100 victims who never got the dogs.
The announcement was made by U.S. Attorney Matthew M. Graves and Raymond Villanueva, Special Agent in Charge, U.S. Homeland Security Investigations (HSI), Washington, D.C.
Fonjeck Eric Azoh, 42, of Mount Rainier, Md., pleaded guilty in August 2021, in the U.S. District Court for the District of Columbia, to a charge of wire fraud. He was sentenced by the Honorable Carl J. Nichols. In addition to the prison term, Azoh was ordered to pay $158,000 in restitution. He also must forfeit $67,000 seized by law enforcement during the investigation and pay an additional $92,000 forfeiture money judgment.
According to the government’s evidence, between January 2019 and October 2020, Azoh offered the pit bull puppies, using various websites. He agreed to sell these puppies to victims living throughout the United States even though he never intended to provide them. Azoh directed victims to send money to him through money transfer businesses, which he then collected at retail stores and elsewhere. Throughout the scheme, Azoh collected at least $158,000 from at least 119 victims who lived in 40 different states.
Azoh was arrested in January 2021 and has been in custody ever since.
In announcing the sentence, U.S. Attorney Graves and Special Agent in Charge Villanueva commended the work of those who investigated the case from HSI. They also expressed appreciation for the work of those who handled the case at the U.S. Attorney’s Office, including Assistant U.S. Attorney John W. Borchert, who prosecuted the case.
Man sentenced to 78 months in Federal Prison for Assaulting a Former Dating PartnerRead the Press Release
A man was sentenced in federal court to a 78-month prison sentence for assaulting a woman with a piece of door trim that had a nail protruding from it while she was holding her three-month-old daughter, announced Acting U.S. Attorney Clint Johnson.
Following his term of imprisonment, Robert Joseph Marder, 32, will serve three years on supervised released.
“Robert Marder will spend more than six years in federal prison for terrorizing the victim and her child with his abusive conduct and for trying to prevent the victim from cooperating with authorities. Make no mistake, children also suffer the immediate and long term effects of violence in the home,” said Acting U.S. Attorney Clint Johnson. “After living under the control of an abuser, it can be difficult for domestic violence victims to cooperate with authorities. I want to assure victims that my team of federal prosecutors and victim specialists are here to seek justice on their behalf, to support them as their cases are being prosecuted, and to help them find needed resources so they and their children can move forward from abusive relationships.”
Marder pleaded guilty July 14, 2021, to assault with a dangerous weapon in Indian Country.
On May 29, 2020, Marder showed up at a former girlfriend’s home and became aggressive. The woman, accompanied by her three-month-old, attempted to leave the apartment. The defendant followed her to her car, so she ran back to the apartment and locked the doors. Marder kicked in the door causing the door trim to break. He then exited the apartment but came back through a window and continued the argument. While the victim was holding her child, Marder picked up a piece of trim with a nail sticking out of it and struck the victim multiple times on her forehead, shoulder and back of the head.
During the assault, the apartment’s security officers heard screaming. After arriving at the apartment, they witnessed Marder striking the victim with the trim. Security detained Marder and called police. The victim was transported to the hospital for treatment.
Marder is a citizen of the Cherokee Nation, and the crime occurred within the Muscogee Nation reservation.
The FBI and Tulsa Police Department investigated the case. Assistant U.S. Attorneys Justin G. Bish and Benjamin D. Hargrove prosecuted the case.
Justice Department Addresses Rise in Criminal Conduct on Commercial AircraftRead the Press Release
As the holiday travel season commences, Attorney General Merrick B. Garland today directed U.S. Attorneys to prioritize prosecution of federal crimes occurring on commercial aircraft that endanger the safety of passengers, flight crews and flight attendants. Federal law prohibits assaults, intimidation and threats of violence that interfere with flight crews and flight attendants, as well as other enumerated criminal acts that occur during flight.
“Passengers who assault, intimidate or threaten violence against flight crews and flight attendants do more than harm those employees; they prevent the performance of critical duties that help ensure safe air travel,” said Attorney General Garland. “Similarly, when passengers commit violent acts against other passengers in the close confines of a commercial aircraft, the conduct endangers everyone aboard.”
The memorandum also highlights an information-sharing protocol between the Federal Aviation Administration (FAA) and the Justice Department, which helps ensure the department is notified about criminal conduct occurring on commercial aircraft. The protocol has already resulted in the referral of dozens of incidents by the FAA to the FBI for investigation.
“The Department of Justice is committed to using its resources to do its part to prevent violence, intimidation, threats of violence and other criminal behavior that endangers the safety of passengers, flight crews and flight attendants on commercial aircraft,” said Attorney General Garland.
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 Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Nov. 23 was:
Ralph Alan Degele, 64, of Worden, on charges of false statement during a firearms transaction and receipt of a firearm by person under indictment. If convicted of the most serious crime, Degele faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Degele was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 21-81.
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on Nov. 22 was:
Marilyn Ann Wilson, 57, of Missoula, on charges of health care fraud, theft of government money, false statement to a government agency, false statement affecting Social Security benefits and Social Security fraud. If convicted of the most serious crime, Wilson faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Wilson was released pending further proceedings. The Social Security Administration and Montana Department of Public Health and Human Services investigated the case. PACER case reference. 21-50.
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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French National Charged with Making False Statements to FDA to Fraudulently Obtain Control of Pharmaceutical ProductRead the Press Release
NEWARK, N.J. – A French national will make his initial appearance today for his role in an attempt to fraudulently gain control of the rights to sell a weight-loss drug in the United States, Acting U.S. Attorney Rachael A. Honig announced.
Alain Bouaziz, 68, a French citizen and resident of the United Arab Emirates, was arrested at Newark Liberty Airport while attempting to depart the United States. Bouaziz is charged by complaint with making false statements to the U.S. Food and Drug Administration (FDA). He is scheduled to appear today by videoconference before U.S. Magistrate Judge Cathy L. Waldor.
According to documents filed in this case and statements made in court:
Bouaziz is a French citizen and resident of the United Arab Emirates who represented himself to be the chief operating officer of Hexim Pharmaceuticals (Hexim), a company headquartered in Secaucus, New Jersey. Hexim was known as Alkopharma USA Inc. until its name was changed in June 2013.
Beginning in February 2018, Bouaziz submitted forged documents and made false statements to the FDA to fraudulently gain control of Sanorex, a weight-loss pharmaceutical owned by a major international pharmaceutical company (Pharmaceutical Company-1). Bouaziz sent letters and documents by email and in hard copy to the FDA falsely stating that Hexim had purchased the New Drug Application for Sanorex and requesting a meeting about marketing Sanorex in the United States. Bouaziz knew these representations were false because Hexim had not purchased the rights to Sanorex from Pharmaceutical Company-1. The documents that Bouaziz submitted to the FDA contained multiple forgeries and false statements, including one example where an earlier agreement between Alkopharma and Pharmaceutical Company-1 had been altered to purport to show a sale of Sanorex to Hexim.
The false statements charge carries a maximum term of five years in prison and a fine of up to $250,000 or twice the gross gain or loss caused by the offense, whichever is greatest.
Acting U.S. Attorney Honig credited special agents of the Food and Drug Administration, Office of Criminal Investigation, under the direction of Special Agent in Charge Jeffrey Ebersole, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Hayden M. Brockett of the Health Care Fraud Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Former Executive Director of the Delta Sigma Theta Sorority, Inc. and Husband Sentenced to Prison Terms for Bank FraudRead the Press Release
WASHINGTON – Jeanine Henderson Arnett, 44, the former Executive Director of Delta Sigma Theta Sorority, Inc., and her husband, Diallo Arnett, 47, have been sentenced to prison terms on bank fraud charges stemming from her embezzlement of more than $228,000.
The Arnetts, of Purcelville, VA., pleaded guilty in April 2021 and were sentenced on Nov. 23, 2021, by the Honorable Randolph D. Moss in the U.S. District Court for the District of Columbia. Jeanine Henderson Arnett was sentenced to 16 months in prison and Diallo Arnett was sentenced to 12 months and a day. Upon completion of their prison terms, they will be placed on five years of supervised release. They also must pay $228,357 in restitution and an identical amount in a forfeiture money judgment.
The sentencing was announced by U.S. Attorney Matthew M. Graves and Wayne A. Jacobs, Special Agent in Charge of the FBI’s Washington Field Office Criminal Division.
According to the statements of offense submitted to the Court at the time of their guilty pleas, Jeanine Henderson Arnett was employed as the Executive Director of Delta Sigma Theta Sorority, Inc., a charitable organization located in the District of Columbia. Delta Sigma Theta Sorority, Inc., has a long history of community service and partners with programs and other charitable organizations to address issues such as food insecurity, domestic violence, and educational needs for students.
Jeanine Henderson Arnett and Diallo Arnett admitted that, between approximately Oct. 3, 2017 and Sept. 15, 2019, she misappropriated more than $228,000 from Delta Sigma Thetas’s bank accounts through, among other things, ACH money transfers and credit card transactions. This included unauthorized and fraudulent charges for personal items and expenses at, among other places, Amazon, Avis Rent a Car, Century Twenty-One, Coach, GEICO, and T-Mobile. In addition, the Arnetts used the Square Cash App to make nine transactions to transfer $14,162.50 to their account.
Delta Sigma Theta terminated Jeanine Henderson’s employment in August 2019 and discovered financial irregularities a month later. A criminal investigation followed.
In announcing the sentence, U.S. Attorney Graves and Special Agent in Charge Jacobs commended the work of those who investigated the case from the FBI’s Washington Field Office. They also acknowledged the work of Assistant U.S. Attorneys Joshua Rothstein and David Kent, who investigated and prosecuted the matter, and the assistance provided by former Paralegal Specialist Angeline Thekkumthala.
Florida Tax Preparer Charged in Connection with $7 Million Loan Fraud SchemeRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams and Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division announced that Barrie Osborne, 76, of Celebration, Florida, was charged by Indictment with with conspiracy to commit wire and bank fraud, wire fraud, bank fraud, and conspiracy to commit money laundering in connection with a scheme to fraudulently obtain more than $7 million in Paycheck Protection Program (PPP) loans, Economic Injury Disaster Loans (EIDL) and pre-pandemic Small Business Administration (SBA) loans, and to launder the proceeds of the illegal scheme.
The Indictment alleges that, beginning in about January 2018 until August 2021, the defendant, a professional tax preparer, conspired with at least eight California-based individuals to apply for SBA, PPP, and EIDL loans on behalf of their respective businesses. All of the businesses in question were dormant companies or companies with limited business operations. In exchange for fees, Osborne allegedly made the businesses appear to be functioning companies with operations and employees by creating fake documents, including fake bank statements and fictitious tax documents. The defendant also provided a “script” to scheme participants to use in calls with lenders. Osborne and the California co-conspirators allegedly obtained over $7.3 million in PPP, EIDL, and SBA loans.
The Indictment further alleges that the defendant created “forgiveness plans” which were designed to disguise the fraud proceeds as payroll expenses in order to make it appear that each loan recipient was meeting the SBA requirement to devote a percentage of the PPP funds to payroll. This increased the likelihood that each loan recipient – including one of the defendant’s own companies - would qualify for loan forgiveness.
“PPP, SBA and EIDL funds are intended to help American small-businesses continue paying their employees, even if revenues have dropped dramatically,” said U.S. Attorney Williams. “Thieves who attempt to take these funds are taking advantage of others’ misfortune – ripping them off while also ripping off all taxpayers who fund the program. As alleged, Osborne led a conspiracy to fraudulently obtain $7 million in funds that could have helped struggling businesses and individuals.”
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.
This case was investigated by the Small Business Association Office of Inspector General, IRS-Criminal Investigation Philadelphia, Homeland Securitu Investigations’ Philadelphia Field Office, and the FBI’s Philadelphia Field Office, and is being prosecuted by trial attorneys David A. Stier and Patrick B. Gushue of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant United States Attorney Judy G. Smith for the Eastern District of Pennsylvania.
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.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Florida Tax Preparer Charged in Connection with $7 Million Loan Fraud SchemeRead the Press Release
A Florida tax preparer was charged in an indictment filed in the Eastern District of Pennsylvania yesterday with scheming to fraudulently obtain more than $7 million in Paycheck Protection Program (PPP) loans, Economic Injury Disaster Loans (EIDL) and pre-pandemic Small Business Administration (SBA) loans, and to launder the proceeds of the illegal scheme.
The indictment alleges that, beginning in or around January 2018, Barrie J. Osborne, 76, of Celebration, conspired with at least eight California-based individuals to apply for SBA, PPP, and EIDL loans on behalf of their respective businesses that were dormant companies or companies with limited business operations. In exchange for fees, Osborne made the businesses appear to be functioning companies with operations and employees by creating fake documents, including fake bank statements and fictitious tax documents. Osborne also provided a “script” to scheme participants to use in calls with lenders. Osborne and the California co-conspirators allegedly obtained over $7.3 million in PPP, EIDL, and SBA loans.
The indictment further alleges that Osborne created “forgiveness plans” that directed the co-conspirators to transfer the fraud proceeds as purported payroll expenses for each of the companies that obtained PPP funds, including one of his own companies. These so-called “forgiveness plans” were designed to disguise the proceeds as payroll expenses and make it appear that the loan recipient was meeting the SBA requirement that a percentage of the PPP funds be used for payroll, thus increasing the likelihood that the loan recipient would qualify for loan forgiveness. Osborne is charged with conspiracy to commit wire and bank fraud, wire fraud, bank fraud, and conspiracy to commit money laundering.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; U.S. Attorney Jennifer Arbittier Williams for the Eastern District of Pennsylvania; Special Agent in Charge Amaleka McCall-Brathwaite of the Small Business Association Office of Inspector General (SBA-OIG) Eastern Region; Special Agent in Charge Yury Kruty of IRS-Criminal Investigation (IRS-CI) Philadelphia Field Office; Special Agent in Charge Brian Michael of Homeland Security Investigations (HSI) Philadelphia Field Office; and Acting Assistant Director Jay Greenberg of the FBI's Criminal Investigative Division made the announcement
This case was investigated by the SBA-OIG, IRS-CI, HSI’s Philadelphia Field Office, and the FBI’s Philadelphia Field Office.
Trial Attorneys David A. Stier and Patrick B. Gushue of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorney Judy G. Smith of the U.S. Attorney’s Office for the Eastern District of Pennsylvania are prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866 720 5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Federal Jury Convicts Buffalo Man Who Led Multi-Million Dollar Narcotics Conspiracy That Stretched from Mexico to Buffalo Along with Two Co-defendantsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. -- U.S. Attorney Trini E. Ross announced today that following a five-week trial, a federal jury has convicted Adrian Goudelock, a/k/a AD, a/k/a Ace, a/k/a Ace Boogs, 39, of Buffalo, NY, of conspiring to possess with intent to distribute, and distributing, five kilograms or more of cocaine, attempted possession and possession of five kilograms or more of cocaine, and money laundering conspiracy. The charges carry a mandatory minimum penalty of 15 years in prison, a maximum of life, and a $20,000,000 fine. In addition, co-defendants Shamar Davis a/k/a Fatboy, 42, and Jai Hunter, 42, were also convicted at trial of conspiring to possess with intent to distribute, and distributing, five kilograms or more of cocaine, and face mandatory minimum sentences of 10 years in prison and a maximum of life.
Assistant U.S. Attorneys Michael J. Adler, Jeremiah E. Lenihan, and Seth T. Molisani, who prosecuted the case, stated that Goudelock was a leader in a major narcotic trafficking operation that stretched from Mexico to Buffalo. An investigation into the trafficking operation began in October 2017 following the seizure by HSI Special Agents of approximately 10 kilograms of cocaine and $259,960 in U.S. currency that was being shipped from El Paso, Texas to Buffalo. The investigation utilized intercepted wire and electronic communications through court-authorized wiretaps. Intercepted calls and messages revealed that bulk shipments of cocaine were delivered to Goudelock in the Buffalo area. A total of 27 kilograms of cocaine and nearly $1,000,000 in bulk U.S. currency was seized in 2017 and 2018. The investigation also determined that over 50 additional kilograms of cocaine were delivered to Buffalo during the conspiracy.
During the course of the investigation, nine co-defendants were identified, charged and convicted in the case:
• Eduardo Enrique Valdez
• Edgar Pavia
• Eric Young
• Lance Parker
• Daniel Sterling
• Martin Lopez
• Ivan Rene Rios Bustillos
• Adrian Grier
• Gabrielle McGradyThe investigation has also resulted in the arrest of 21 additional defendants in the Eastern District of Kentucky and the Northern District of Ohio, and seizure of over an additional $2,000,000 and approximately 41 kilograms of cocaine.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The verdict is the result of an investigation by Homeland Security Investigations, under the direction of Acting Special Agent-in-Charge Matthew Scarpino; the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia; the New York State Police, under the direction of Major James Hall; the Erie County Sheriff’s Department, under the direction of Sheriff Timothy Howard; and Customs and Border Protection, Air and Marine Unit, under the direction of Brian Manaher, Director, Marine Operations. Additional assistance was provided by the New York National Guard and Homeland Security Investigations, El Paso, Texas.
Adrian Goudelock is scheduled to sentencing on April 7, 2022, before U.S. District Judge John L. Sinatra, Jr. who presided over the trial of the case. Shamar Davis and Jai Hunter are scheduled to be sentenced on April 5 and April 6 respectively, also before Judge Sinatra.
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El Cajon Resident Sentenced to 15 Years for Selling Counterfeit Pills with Fentanyl that Caused 19-Year-Old’s DeathRead the Press Release
Assistant U. S. Attorneys Michael A. Deshong and Adam Gordon (619) 546-9290
NEWS RELEASE SUMMARY—November 24, 2021
SAN DIEGO—El Cajon resident Olatunde James Temitope Akintonde was sentenced in federal court today to 15 years in prison for selling fentanyl-laced pills that caused the death of a 19-year-old Santee man, identified in court records as S.J.G., in March of 2019.
Akintonde previously admitted that he sent messages to S.J.G. through social media on February 28, 2019, to coordinate a sale of what the victim believed to be oxycodone pills. Later that evening, Akintonde delivered two counterfeit oxycodone pills laced with fentanyl to S.J.G. After the meeting, Akintonde sent additional messages to S.J.G. through social media warning that he should only take one of the pills because they were “strong.” Akintonde further admitted that the pills he gave to S.J.G. caused his death. According to other filings in the case, S.J.G. died in his home sometime in the evening of February 28, 2019 or the early morning hours of March 1, 2019.
Special Agents from the Drug Enforcement Administration and a Task Force Officer from the San Diego Sheriff’s Department led the investigation into S.J.G.’s death and quickly identified Aktinonde as the source of the fatal pills. According to the sentencing memorandum, Akintonde offered various prescription pills for sale through different social media platforms. Akintonde also posted photographs of himself brandishing firearms and posted songs promoting the use and distribution of pharmaceutical pills.
“There is an epidemic of counterfeit fentanyl-laced pills in our community,” said Acting U.S. Attorney Randy Grossman. “To be clear: If you are a drug dealer selling pills, and those pills result in death, you will be held accountable for that death. It is no defense to say you didn’t know the pills contained fentanyl.” Grossman praised the prosecution team as well as the Drug Enforcement Administration’s Narcotics Task Force Team 10 and officials from the San Diego Sheriff’s Department and the San Diego County District Attorney’s Office for their excellent work on this case.
“As the number of drug overdose deaths continues to rise in San Diego County, the DEA San Diego Field Division has made investigating overdose deaths a priority,” said DEA Acting Special Agent in Charge Shelly S. Howe. “We are committed to bringing drug dealers like Olatunde James Temitope Akintonde, who poison our communities, to justice.”
This case is the result of ongoing efforts by the U.S. Attorney’s Office, the San Diego County District Attorney’s Office and the Drug Enforcement Administration to investigate and prosecute the distribution of dangerous illegal drugs—fentanyl in particular—that result in overdose deaths. The Drug Enforcement Administration created Narcotics Task Force Team 10 as a response to the increase in overdose deaths in San Diego County. Agents from Team 10 contributed to the investigation into S.J.G.’s death.
DEFENDANTS Case Number 21cr1178-JLS
Olatunde James Temitope Akintonde Age: 23 El Cajon, CA
SUMMARY OF CHARGES
Distribution of Fentanyl – Title 18, United States Code, Section 841(a)(1)
Maximum penalty: Twenty years in prison
AGENCY
Drug Enforcement Administration
San Diego Sheriff’s Department
San Diego County District Attorney’s Office
Des Moines Man Indicted on Attempted Child Exploitation, Attempted Enticement of a Minor and Related ChargesRead the Press Release
DES MOINES, IA – A federal grand jury in Des Moines returned an indictment on November 17, 2021, charging a Des Moines man with attempting to produce child pornography, attempted enticement of a minor to engage in illicit sexual activities and other related charges.
According to court documents, Dennis Eugene Kimball, age 57, of Des Moines, communicated online with an undercover officer posing as a minor female and arranged to meet her for sex in an area motel. Kimball also asked who he believed to be the minor female to send him sexually explicit images of herself and sent her videos of himself masturbating. Through online communication, Kimball also asked for her phone number to arrange a meeting for sex.
Kimball is charged with attempted sexual exploitation of a minor, enticement and attempted enticement of a minor to engage in illicit sexual activities, transfer and attempted transfer of obscene material to a minor, use and attempted use of interstate facilities to transmit information about a minor, and commission of a felony offense involving a minor by a registered sex offender. The defendant was arraigned on November 19, 2021, and was detained pending trial. If convicted of all charges, he faces a mandatory minimum sentence of 15 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case is being investigated by the Altoona Police Department, Iowa Division of Criminal Investigation, Iowa Crimes Against Children Task Force, and the Federal Bureau of Investigation The following agencies have assisted in the investigation: Iowa Division of Intelligence, Iowa Division of Narcotics Enforcement, Drug Enforcement Administration, and the Polk County Attorney’s Office.
The public is reminded that an indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Davenport Man Sentenced to Federal Prison for Fentanyl Overdose DeathRead the Press Release
DAVENPORT, Iowa – On November 17, 2021, Kerry Bernard Morgan Jr., age 31, of Davenport was sentenced by United States District Court Chief Judge John A. Jarvey to 25 years in prison for Conspiracy to Manufacture, Distribute, and Possess with Intent to Distribute Methamphetamine, Heroin, and Fentanyl Purported to be Heroin Resulting in Death and Serious Bodily Injury. Morgan Jr. was ordered to serve five years of supervised release upon release from prison, immediately pay $100 to the Crime Victims’ Fund, and pay $15,969.75 in restitution with his codefendants.
According to evidence at trial, on September 11, 2019, members of the Davenport Police Department were dispatched to Genesis West Hospital for a drug overdose. The victim was quickly pronounced dead after being dropped off at the hospital by one of Morgan Jr.’s co-defendants. Members of the Bettendorf Police Department made contact with this individual, who later provided information in a post-Miranda interview that led detectives to a third co-defendant. Later in the day on September 11, 2019, this third co-defendant purchased a heroin/fentanyl mixture from Morgan Jr. Morgan Jr. was taken into custody after the sale and was found in possession of additional distribution quantities of a heroin/fentanyl mixture and ice methamphetamine. In a post-Miranda interview, Morgan Jr. admitted to distributing more than fifty grams of ice methamphetamine and selling distribution quantities of heroin and fentanyl purported to be heroin. At trial, it was learned that Morgan Jr. had provided the fentanyl later ingested by the victim to co-defendant Amber Maxwell, who then provided it to co-defendant Jarad Postell, who then gave it to the victim. The evidence showed that Morgan Jr. knew prior to September 11, 2019, he was distributing fentanyl purported to be heroin. Morgan Jr. was found guilty by a federal jury.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Drug Enforcement Administration and the Bettendorf Police Department investigated the case.
Davenport Man Sentenced to Federal Prison for Fentanyl Overdose DeathRead the Press Release
DAVENPORT, Iowa – A Davenport man, Jarad Paul Postell, age 40, was sentenced on Wednesday, November 17, 2021, by United States District Court Chief Judge John A. Jarvey to 25 years in prison for Conspiracy to Manufacture, Distribute, and Possess with Intent to Distribute Fentanyl Purported to be Heroin Resulting in Death and Serious Bodily Injury. Following his imprisonment Postell was ordered to serve five years of supervised release, immediately pay $100 to the Crime Victims’ Fund, and pay $15,969.75 in restitution with his codefendants.
According to evidence at trial, Postell was identified after Davenport Police Department officers responded to Genesis West Hospital in reference to a drug overdose in September 2019. The victim was pronounced deceased upon arrival, and officers received the description of the individual and vehicle that had dropped the victim off. Members of the Bettendorf Police Department made contact with Postell and another individual shortly after the events at the hospital at a casino in Bettendorf. In a post-Miranda interview with law enforcement, Postell admitted to meeting the victim and conspiring with one of his co-defendants to obtain fentanyl purported to be heroin. In Postell’s presence, the victim used the purported heroin and began to drift in and out of consciousness. After a failed attempt at administering Narcan, Postell drove the victim to the hospital and dropped the victim off, where they were quickly pronounced deceased. On June 11, 2021, Postell was found guilty as charged after a jury trial.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Drug Enforcement Administration and the Bettendorf Police Department (BPD) investigated the case.
Dansville Teacher Arrested on Multiple Child Pornography ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Derek Hagen, 29, of Batavia, NY, was arrested and charged by criminal complaint with producing, receiving, distributing, and possessing child pornography. The charges carry a minimum penalty of five years in prison and a maximum of 30 years.
Assistant U.S. Attorney Kyle P. Rossi, who is handling the case, stated that according to the complaint, in September 2020, Snapchat sent a cybertip to the National Center for Missing and Exploited Children (NCMEC) regarding a user that had uploaded images of child pornography to a group chat. After tracing the user to Western New York, NCMEC alerted the New York State Police, who subsequently identified the defendant.
On July 20, 2021, investigators confiscated two computers and a cell phone from Hagen’s apartment in Mount Morris, NY. A forensic analysis uncovered a pattern of child exploitation activity on the devices with the defendant actively producing and distributing child pornography in online chats. During the chats, Hagen and the other individuals traded child pornography and discussed specific children that they had sexually abused or wanted to sexually abuse. To date, analysts have recovered approximately 50,000 of images and videos of child pornography on Hagen’s devices.
The complaint further states that the defendant worked in several teaching, substitute teaching, and child-care positions in the Western District of New York, including at the Brockport Childhood Development Center; the Batavia City School District; the Pembroke Central School District; and most recently with the Dansville Central School District.
Members of the public who have information related to this case are asked to contact Homeland Security Investigations at (716) 464-6070 or [email protected].
The criminal complaint is the result of an investigation by the New York State Police, under the direction of Major Barry Chase, Homeland Security Investigations, under the direction of Acting Special Agent-in-Charge Matthew Scarpino, and the National Center for Missing and Exploited Children.The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Chicopee Businessman Pleads Guilty to Role in Large Scale Drug ConspiracyRead the Press Release
BOSTON – A Chicopee businessman and the former owner and operator of TWC Auto Body in Holyoke pleaded guilty yesterday in federal court in Springfield in connection with a cocaine and heroin conspiracy.
Jamil Roman, 44, of Chicopee, pleaded guilty to conspiracy to distribute and possess with intent to distribute more than 500 grams of cocaine. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for March 23, 2022. Roman was indicted in March 2016 along with co-defendant Javier Gonzalez after their initial charge and arrest on March 26, 2014.
From January 2014 through March 2014, Roman and Gonzalez conspired to distribute four kilograms of cocaine in Western Massachusetts. Roman, who owns TWC Auto Body in Holyoke, admitted to meeting Gonzalez and conspiring to collect a debt owed for four kilograms of cocaine, which was part of a larger load that Gonzalez obtained from a Mexican supply source. On March 25, 2014, law enforcement seized approximately $1.17 million in cash from a hidden compartment inside a tractor trailer being driven by Gonzalez to Texas as payment for kilograms of heroin and cocaine.
On Oct. 4, 2021, Gonzalez was sentenced by Judge Mastroianni to 30 months in prison and two years of supervised release. Gonzalez was also ordered to pay a fine of $20,000.
The charge of conspiracy to distribute and possess with intent to distribute more than 500 grams of cocaine provides for a sentence of at least five years and up to 40 years in prison, at least four years and up to a lifetime of supervised release, a fine of $20 million and restitution. Sentences are imposed based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mandell and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division, made the announcement. Assistant U.S. Attorney Neil L. Desroches of Mendell’s Springfield Branch Office is prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Caldwell Man Pleads Guilty to Possession of Child PornographyRead the Press Release
BOISE – A Caldwell man pleaded guilty to two counts of possession of child pornography.
According to court records, on May 5, 2020, a citizen witness reported that she observed child pornography on a cellphone belonging to Kenneth Rowe, 50, of Caldwell. The citizen witness turned the cellphone over to the Canyon County Sheriff’s Office and the investigation was referred to the Idaho Internet Crimes Against Children (ICAC) Task Force. ICAC obtained a federal search warrant to review the cellphone for evidence of the possession of child pornography and located over a thousand files of child pornography and evidence that Rowe was the owner of the cellphone. Law enforcement also located evidence that Rowe used an application on his cellphone to trade files of child pornography with other individuals. At the time of the investigation, Rowe was a registered sex offender who was on parole for a prior sex offense.
Sentencing is scheduled before Chief U.S. District Judge David C. Nye on February 15, 2022. Because Rowe has a prior conviction for a sexual offense, the crime of possession of child pornography is punishable by a mandatory minimum of ten years and up to 20 years in federal prison, a $250,000 fine, not less than five years and up to lifetime of supervised release, and a $5,100 special assessment. As part of his plea agreement, Rowe agreed to forfeit the cellphone he used in the commission of the offense.
Acting U.S. Attorney Rafael M. Gonzalez, Jr., of the District of Idaho made the announcement and commended the cooperative efforts of the Idaho ICAC Task Force and the Canyon County Sheriff’s Office, which led to charges.
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. As part of Project Safe Childhood, the U.S. Attorney’s Office for the District of Idaho and the Idaho Attorney General’s Office partner to marshal 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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Burlington Men Sentenced to Federal Prison for Drug ConspiracyRead the Press Release
DAVENPORT, IA – On Monday, November 22, 2021, two Burlington men were sentenced to prison by United States District Court Chief Judge John A. Jarvey for their involvement in a drug conspiracy dating back to 2001.
Kendrick Ramon Page, age 39, originally from Shreveport, Louisiana, was sentenced to 340 months in prison and Breon Raquon Armstrong, age 20, also originally from Shreveport, Louisiana, was sentenced to 210 months imprisonment. There is no parole in the federal prison system.
Page, Armstrong, and six other co-defendants were federally charged in November 2019 following the execution of numerous search warrants in Burlington and elsewhere. Page and Armstrong were convicted by a jury in July 2021 of conspiracy to distribute controlled substances, including ice methamphetamine and cocaine base (a.k.a. crack cocaine). Page led this drug trafficking organization that operated primarily out of Burlington since approximately 2001, according to the evidence presented at trial. The evidence also showed Page recruited others, including Armstrong, to travel to Burlington from Shreveport to sell drugs for him.
At sentencing, the district court found Page was responsible for the distribution of over 100 pounds of ice methamphetamine. Both Page and Armstrong were found to have possessed firearms related to their drug trafficking activities and the district court found Page used credible threats of violence to further his drug trafficking activities.
Others charged included Alphonso Edmond, Jr., who pleaded guilty and is awaiting sentencing; Tristan Kareem Davis, who was found guilty by jury and is awaiting sentencing; Lavelle Harris, who pleaded guilty and was sentenced to 262 months in prison; Lamar Harris, who pleaded guilty and was sentenced to 210 months of imprisonment; Frederrick Dewayne Reed, who pleaded guilty and was sentenced to 160 months imprisonment; and Michael Rees, who pleaded guilty and was sentenced to 151 months of imprisonment. Other individuals associated with this drug trafficking organization have also been federally charged in the Southern District of Iowa, the Central District of Illinois, and the Northern District of Texas.
Southern District of Iowa United States Attorney Richard D. Westphal made the announcement. These charges stem from an investigation conducted by numerous federal, state, and local law enforcement agencies including: the Southeast Iowa Narcotics Taskforce; Burlington Police Department; Des Moines County Sheriff’s Office; Federal Bureau of Investigation; West Central Illinois Taskforce; Quincy, Illinois Police Department; Drug Enforcement Administration; Iowa Division of Narcotics Enforcement; Henry County Sheriff’s Office; Mt. Pleasant Police Department; West Burlington Police Department; Keokuk Police Department; Ft. Madison Police Department; Lee County Sheriff’s Office; Iowa City Police Department; Johnson County Sheriff’s Office; North Liberty Police Department; Coralville Police Department; Muscatine County Sheriff’s Office; Louisa County Sheriff’s Office; Washington County Sheriff’s Office; Bettendorf Police Department; Illinois State Police; Monmouth, Illinois Police Department; Macomb, Illinois Police Department; Galesburg, Illinois Police Department; Adams County, Illinois Sheriff’s Office; and Fulton County, Illinois Sheriff’s Office.
Brooklyn Man Arrested, Charged with Hacking into Online Accounts of Wegmans CustomersRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Maurice Sheftall, 23, of Brooklyn, NY, was arrested and charged by criminal complaint with fraud and related activity in connection with computers and wire fraud. The charges carry a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Meghan K. McGuire, who is handling the case, stated that according to the complaint, the defendant is accused of obtaining the credentials, including logins and passwords, of customers who had accounts on the wegmans.com website. Sheftall attempted to access approximately 74 different customer accounts, with approximately 59 of these attempts proving successful. Subsequently, the defendant placed approximately 25 fraudulent orders of groceries and other goods, totaling approximately $10,000.
Sheftall made an initial appearance before U.S. Magistrate Judge Mark W. Pedersen and was released on conditions.
The complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
# # # #Baltimore Man Sentenced to More Than Seven Years in Federal Prison for Distribution of Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Eric Donovan Ashe, age 24, of Baltimore, Maryland to 85 months in federal prison, followed by 15 years of supervised release, for distribution of child pornography. Judge Hollander also ordered that, upon his release from prison, Ashe must register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron and Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office.
According to his guilty plea, from 2017 to September 2019, Ashe posed as multiple minor girls and sold purported self-made pornography to various men in exchange for over $24,000 in gift cards. In addition to searching for child pornography for at least five years, Ashe also distributed and received child pornography.
As detailed in his plea agreement, in 2016 Ashe pretended to be a female minor while communicating with a 13-year-old female victim (Minor Victim 1) on a social media platform. Ashe later communicated with Minor Victim 1 as himself, including engaging in sexually explicit conversations with Minor Victim 1. Ashe also created a fictious social media account in Minor Victim 1’s likeness, using pictures he uploaded from Minor Victim 1’s genuine social media account and a fictitious name. The Minor Victim 1 did not give permission for Ashe to use her likeness in any capacity.
While posing as a minor in the likeness of the Minor Victim 1, Ashe communicated with dozens of men, and arranged to sell sexually explicit pictures and videos of Minor Victim 1 (who he claimed to be to the men). Ashe offered various poses and sex acts in exchange for gift cards in various amounts. For example, on September 27, 2017, while posing as Victim 1, Ashe sent a “menu” to dozens of social media users for the price of certain images and sex acts to online users. In one instance, Ashe sent a messaging stating “100 would get u 2 nude 2 masturbation video and a full body nude”.
Once Ashe completed the negotiations on social media, he instructed buyers to send gift cards to him and then directed the buyers to communicate with him on another messaging application. Once on the messaging application, Ashe received payment and sent the explicit images to the buyers.
From July 7, 2017 to December 17, 2018, Ashe loaded over $24,000 in gift cards and spent at least $17,000 on electronics, restaurant gift cards, and clothing. All orders were shipped to Ashe’s Baltimore address.
As stated in his plea agreement, Ashe used two other fictitious social media profiles where he purported to be minor females. Specifically, on September 5, 2017, Ashe used a messaging application to send a 1 minute and 41 second video that depicts a prepubescent minor female engaged in sexual acts.
Law enforcement officials executed a search warrant at Ashe’s Baltimore residence on September 11, 2019. During the search, investigators seized three of Ashe’s devices which contained over 500 videos and 250 images of child pornography. The files included images of prepubescent minors engaging in sexual acts. A subsequent forensic analysis of Ashe’s devices revealed that Ashe had been searching for child pornography since 2014 and as recently as 2019. For example, on one of Ashe’s cell phones, Ashe searched phrases including: “movies about kids getting raped”, “are all men pedophile” and “necrophilia.”
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Erek L. Barron praised the FBI for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Paul E. Budlow, who prosecuted 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/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
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Alburgh Man Sentenced to 15 Years’ Imprisonment for Child Exploitation OffensesRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that on November 23, 2021, Randy Sheltra, 59, of Alburgh, Vermont, was sentenced in United States District Court in Burlington, Vermont, to serve 15 years of imprisonment following his conviction, after a six-day jury trial, of two counts of attempting to persuade, induce, and entice a minor to engage in unlawful sexual activity, and one count of attempted receipt of child pornography. U.S. District Judge Christina Reiss also ordered Sheltra to serve a 30-year term of supervised release and to pay a special assessment of $300.
According to court records and proceedings, on September 7, 2017, Sheltra began communicating with a person whom he believed was the mother of a 10-year-old girl responding to his post on Craigslist. In reality, the woman was an undercover law enforcement officer. During communications between Sheltra and the undercover over the following three days, Sheltra attempted to persuade the woman to permit her 10-year-old daughter to engage in sexual activity with him. Law enforcement arrested Sheltra on September 10, 2017, when he arrived at a park in South Burlington to meet the woman and her daughter for sexual activity. Law enforcement seized Sheltra’s cell phone at the time of his arrest. Communications contained within the phone showed that in August 2017, Sheltra had attempted to persuade a real 15-year-old Vermont girl to engage in sexual activity with him and had, in fact, met with the child for sexual activity. Sheltra also asked the child to send him explicit photographs.In imposing Sheltra’s sentence, Judge Reiss found that Sheltra obstructed justice when he provided false testimony at his trial and qualified as a “repeat and dangerous” sex offender.
Acting U.S. Attorney Jonathan A. Ophardt commended the efforts of Homeland Security Investigations and the Vermont Internet Crimes Against Children Task Force in the investigation and prosecution of Sheltra.
The prosecution of Sheltra was handled by Assistant U.S. Attorneys Barbara A. Masterson and Andrew C. Gilman. Sheltra was represented by Mark Kaplan of Kaplan & Kaplan.
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 Child Exploitation Obscenity Section, Criminal Division (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.
23 November 2021
Worcester Landlord and Employee Agree to Resolve Sexual Harassment AllegationsRead the Press Release
BOSTON – A Worcester property landlord, Mohan Prashad, and employee, David Besaw, have agreed to resolve allegations that they violated the Fair Housing Act by sexually harassing female tenants. The settlement also resolves claims against Lanaton LLC and Savton LLC, which, along with Prashad, owned the properties where the harassment occurred.
The lawsuit, filed in 2019, alleged that since at least 2009, Prashad subjected female tenants to harassment including unwelcome sexual advances and comments, making unscheduled and frequent visits to certain tenant units without legitimate property management reasons for the visits, and taking adverse actions against tenants who resisted his sexual overtures. The complaint further alleged that Besaw sexually harassed and assaulted tenants and that Prashad, after receiving notice of Besaw’s harassment, retaliated against one tenant by filing an eviction action against her and failing to take action to prevent Besaw from engaging in additional sexual harassment.
“The sexual harassment of tenants is an appalling abuse of economic and social power that warrants serious consequences,” said Acting United States Attorney Nathaniel R. Mendell. “Everyone has a right to feel safe and secure in their home, and the Fair Housing Act gives us the tools to enforce that for tenants. My office will continue to enforce these important civil rights laws to protect vulnerable individuals, hold violators accountable and secure justice for victims.”
“Sexually harassing tenants in their homes and retaliating against those who have complained about experiencing harassment are egregious forms of sex discrimination and violate the Fair Housing Act,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “The Justice Department is committed to ensuring that no individual is subjected to housing discrimination or retaliatory eviction because of their sex.”
Under the consent decree, which must be approved by the U.S. District Court for the District of Massachusetts, the defendants must pay the individuals harmed by the harassment $65,000 in compensation, a $10,000 civil penalty to the United States and vacate a judgment that the defendants had obtained against a former tenant in housing court.
The consent decree bars future discrimination and retaliation and requires that property management responsibilities be turned over to an independent manager. It also mandates the implementation of a sexual harassment policy, complaint procedure and Fair Housing Act training and requires detailed reporting on property management activities and compliance with the terms of the consent decree. In addition, Prashad and Besaw are barred from participating in property management responsibilities at residential rental properties.
Acting U.S. Attorney Mendell and Associate Attorney General Clarke made the announcement today. Assistant U.S. Attorneys Torey B. Cummings and Michelle Leung, of Mendell’s Civil Rights Unit, and Trial Attorney Kinara A. Flagg, of the Housing and Civil Enforcement Section of the Justice Department’s Civil Rights Division, handled the matter.
The Civil Rights Unit of the U.S. Attorney’s Office was established in 2015 with the mission of enhancing federal civil rights enforcement. For more information on the Office’s civil rights efforts, please visit www.justice.gov/usao-ma/civil-rights.
Woodbury County Man Pleads Guilty to Meth TraffickingRead the Press Release
A man who possessed methamphetamine with the intent to distribute pled guilty on November 19, 2021, in federal court in Sioux City. Donovan Lang, 27, from Sioux City, Iowa, was convicted of one count of possession with intent to distribute methamphetamine.
At the plea hearing, Lang admitted that on August 15, 2021, in Sioux City, Iowa, he was the sole back seat passenger of a vehicle stopped for various traffic violations. During the traffic stop, Lang was found to possess a knife and roughly 100 grams of methamphetamine. The methamphetamine was wrapped in purple latex gloves that were found beneath where Lang was seated. About 5-7 matching purple latex gloves and a knife were found in Lang’s pockets.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Lang remains in custody of the United States Marshal pending sentencing. Lang faces a mandatory minimum sentence of 5 years’ imprisonment, a possible maximum sentence of 40 years’ imprisonment, a $5,000,000 fine, and at least 4 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Sioux City Police Department and the Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-4077.
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Williamsburg Man Sentenced for Possessing and Intending to Distribute Multiple DrugsRead the Press Release
JOHNSTOWN, PA - A resident of Williamsburg, Pennsylvania, has been sentenced in federal court to 3 years of imprisonment on his conviction for possession with intent to distribute multiple Schedule I and II controlled substances, United States Attorney Cindy K. Chung announced today.
Senior United States District Judge Kim Gibson imposed the sentence on Jesse Daniel Ginter, 40.
Previously, in connection with his guilty plea, the court was advised that on March 12, 2018, Homeland Security Investigations agents and other law enforcement executed a federal search warrant on Ginter’s residence and recovered quantities of numerous controlled substances, including furanyl fentanyl, methoxyacetyl fentanyl, cyclopropyl fentanyl, U-47700, AMB-Fubinaca, carfentanil, fentanyl, marijuana, cocaine, and methamphetamine. The Court was further advised that investigators recovered firearms, ammunition, currency, a digital scale, stamp bags, and other indicia of drug trafficking from Ginter’s residence.
Assistant United States Attorney David Lew prosecuted this case on behalf of the government.
The U.S. Postal Inspection Service; U.S. Department of Homeland Security, Immigration and Customs Enforcement, Homeland Security Investigations; Federal Bureau of Investigation; and Pennsylvania State Police conducted the investigation leading to the successful prosecution of Ginter.
White River Man Sentenced to over 11 Years in Federal PrisonRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a White River, South Dakota, man convicted of Enticement of a Minor Using the Internet was sentenced on November 19, 2021, by Judge Jeffrey L. Viken, U.S. District Court.
Justin Boyles, age 41, was sentenced to 11 years and 3 months in federal prison, followed by 5 years of supervised release, and ordered to pay $100 special assessment to the Federal Crime Victims Fund.
Boyles was indicted by a federal grand jury in June 2019. He pleaded guilty on April 9, 2021.
The charge related to Boyles using the internet to facilitate sexual intercourse with a juvenile female.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Megan Poppen prosecuted the case.
Boyles was immediately turned over to the custody of the U.S. Marshals Service.
Waterloo Woman Sentenced to a Decade in Prison for Her Role in a Large-Scale Meth Trafficking RingRead the Press Release
A Waterloo, Iowa, woman who was involved in the importation and distribution of over 4,000 grams of methamphetamine was sentenced today to ten years in federal prison.
Breanna Garcia, age 34, from Waterloo, Iowa, received the prison sentence after a May 3, 2021 guilty plea to conspiracy to distribute methamphetamine.
Evidence at the plea and sentencing hearings showed that in 2018, investigators began investigating a large-scale drug trafficking organization operating between Mexico and Iowa. As part of the investigation, investigators conducted a wiretap investigation of a phone utilized by Travis Werkmeister, Garcia’s boyfriend. Investigators intercepted thousands of calls and text messages between Werkmeister and other members of the drug-distribution organization, including Garcia. Werkmeister worked with Mario Hernandez, the leader of the organization who was based out of Mexico, to import kilos of methamphetamine with the purpose that the methamphetamine be redistributed in Iowa. Garcia would collect money on behalf of Werkmeister and meet with other members of the organization on behalf of Werkmeister. Garcia has a lengthy criminal history dating back to 2006. Since that time, she has acquired 21 criminal convictions.
Garcia was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Garcia was sentenced to 120 months’ imprisonment. She must also serve a five-year term of supervised release after the prison term and pay a $100 special assessment fee. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorney Ashley Corkery. 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 Mid-Iowa Task Force (Marshall County Sheriff’s Office, Tama County Sheriff’s Office, Marshalltown Police Department), Iowa National Guard and Counter Drug Program, Tri-County Task Force (Cedar Falls Police Department, Waterloo Police Department, Black Hawk County Sheriff’s Office), the Federal Bureau of Investigation, the FBI Safe Streets Task Force, the Drug Enforcement Administration, 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-2034.
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Two Metro East Men Sentenced for Robbing Marijuana Dealer and Shooting WitnessRead the Press Release
Benton, Ill. – Two men have been sentenced for their role in a 2018 marijuana robbery and shooting in Caseyville, Illinois. Deveon Humphries, 28, was sentenced to 144 months in federal prison on one count of interfering with commerce by robbery and one count of discharging a firearm during and in relation to a crime of violence. The sentencing hearing was conducted on Monday, November 22, 2021, in U.S. District Court in Benton, Illinois. Humphries pled guilty to the charges in May of this year. His co-defendant, Dartaniel Pruitt, 27, was sentenced in August of this year.
According to court documents, the crimes occurred on September 30, 2018, when Humphries arranged a fake marijuana sale with the plan to rob the marijuana dealer. Humphries was armed and had concocted a plan with his co-defendant, Pruitt, to take the marijuana at gunpoint.
During the robbery, Humphries shot a witness several times. Pruitt and Humphries fled the scene with the marijuana. The Caseyville Police Department investigated the robbery and later recovered Humphries’ firearm.As part of their sentences, Humphries and Pruitt were also ordered to serve a 5-year term of supervised release.
This case was brought as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The investigation was conducted by the Caseyville Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives.
The case was prosecuted by Assistant United States Attorney Alexandria Burns.Toledo Man Sentenced for Illegal Possession of Firearms and Improvised Explosive DeviceRead the Press Release
U.S. Attorney Bridget M. Brennan announced that Jeffrey Davenport, 52, of Toledo, was sentenced on Monday, November 22, by Judge Jack Zouhary to 54 months in prison after Davenport pleaded guilty to being a felon in possession of a firearm and possession of an unregistered destructive device.
As set out in court documents, on July 1, 2020, the Toledo Police Department’s Special Weapons and Tactics (SWAT) team and members of the Northwest Ohio Bomb Squad executed a search warrant at Davenport’s residence on Atlantic Avenue in Toledo. During the search, law enforcement officers obtained a smoke grenade, three inert grenades, one flak jacket, miscellaneous ammunition, 11 firearms and an improvised explosive device.
While executing the warrant, law enforcement officers detained two of Davenport’s associates, who later admitted to removing several firearms and ammunition from the Davenport residence to conceal them from police. These items included eight boxes of miscellaneous ammunition, a green rifle case, seven firearms and a 12-gauge shotgun.
Davenport is prohibited from possessing firearms due to previous convictions of felonious assault and attempted felonious assault on a peace officer in 2003 in the Lucas County Common Pleas Court.
This case was investigated by the ATF and Toledo Police Department. This case was prosecuted by Assistant United States Attorney Deyana F. Unis.
Terrebonne Parish Man Indicted for Violating the Federal Controlled Substances and Gun Control ActsRead the Press Release
NEW ORLEANS, LA – BEAU HEBERT, age 40, of Terrebonne Parish, La., was charged November 19, 2021, in a 4-count indictment by a Federal Grand Jury with several narcotics offenses, including distribute and possession with intent to distribute fifty (50) grams or more of methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(C), and 841(b)(1)(A). HEBERT was also charged with possession of a firearm in furtherance of a drug trafficking crime and for being a felon in possession of a firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(c)(1)(A)(i), announced U.S. Attorney Duane A. Evans.
If convicted of the narcotics trafficking charges, HEBERT faces a mandatory minimum term of ten (10) years imprisonment and up to a maximum of life imprisonment, a fine of up to $10,000,000.00, and at least five (5) years of supervised release following any term of imprisonment. HEBERT also faces ten (10) years of imprisonment if convicted of being a felon in possession of a firearm, in addition to a consecutive sixty (60)-month term of imprisonment if convicted of possessing a firearm in furtherance of drug trafficking. HEBERT also faces a $100 mandatory special assessment fee per count.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
U.S. Attorney Evans reiterated that the indictment is merely a charging document and that the defendant’s guilt must be proven beyond a reasonable doubt.
This case was investigated by the U.S. Drug Enforcement Administration, Terrebonne Parish Sheriff’s Office, Houma Police Department, St. Charles Parish Sheriff’s Office, Lafourche Parish Sheriff’s Office, Jefferson Parish Sheriff’s Office, St. John Parish Sheriff’s Office, and the Louisiana State Police. The prosecution is being handled by Assistant United States Attorney Melissa Bücher.
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Sunnyvale Man Sentenced to 15 Months for Visa FraudRead the Press Release
SAN JOSE – Kishore Kumar Kavuru was sentenced late yesterday in federal court to 15 months in prison for making false statements in foreign worker visa applications, announced Acting United States Attorney Stephanie M. Hinds, U.S. Department of Labor Office of Inspector General Special Agent in Charge Quentin Heiden, Los Angeles Region, and Homeland Security Investigations Special Agent in Charge Tatum King. The sentence was handed down by United States District Judge Edward J. Davila.
Kavuru, 49, of Sunnyvale, California, pleaded guilty to one count of visa fraud on May 24, 2021. In his plea agreement, Kavuru stated he owned, operated, and was CEO of four different staffing companies. His companies specialized in obtaining H-1B visas for foreign skilled workers and placing these individuals in the United States at technology firms seeking qualified H-1B contractors. Known as H-1B Specialty Occupation Workers program, the H-1B visa program allows an employer to temporarily hire a skilled foreign worker in the United States on a nonimmigrant basis. The position must qualify as a “specialty occupation,” that is, one that requires the application of specialized knowledge and a bachelor’s degree or equivalent in the specialty. At the four staffing companies he owned and ran, Kavuru was responsible for creating H-1B visa applications for foreign workers and submitting them to the appropriate government agencies of the United States.
Kavuru admitted in his plea agreement that from 2009 through at least 2017 he engaged in a scheme to obtain H-1B visas from government agencies by submitting H-1B applications that contained false and fraudulent statements. Kavuru admitted to submitting more than one hundred applications that falsely described available H-1B positions and falsely stated that the H-1B workers were to be placed at the positions at specific companies. Kavuru admitted he knew at the time he submitted the applications that the companies did not have the named jobs and that he did not intend to place the workers at those companies. None of those foreign skilled workers were ever placed at those companies. Kavuru – or one of his employees at Kavuru’s direction – nevertheless signed the visa applications attesting under penalty of perjury to the truth of those false statements.
Kavuru further admitted that he required the H-1B foreign skilled workers to pay him thousands of dollars in cash for the cost of preparing and submitting their H-1B visa petitions, which is a violation of U.S. Department of Labor (US DOL) regulations. He also admitted requiring his H-1B visa recipients to go unpaid for months while he looked for legitimate H-1B positions for them, violating US DOL regulations by failing to pay H-1B workers while they are “benched” in this manner.
In a memo filed for sentencing, the government calculated that Kavuru orchestrated the submission of over 100 fraudulent H-1B visa applications that earned him more than $1.5 million in fraudulently-obtained proceeds.
In addition to his 15 month prison sentence imposed for visa fraud in violation of 18 U.S.C. § 1546(a), United District Judge Edward J. Davila entered a forfeiture money judgment in the amount of $533,350.03. The sentence also included a three year period of supervision following Kavuru’s release from prison.
Kavuru will surrender to begin serving his sentence on February 10, 2022.
Assistant United States Attorney Maia T. Perez prosecuted the case, with the assistance of Lakisha Holliman. The prosecution is the result of an investigation by the U.S. Department of Labor, Office of Inspector General and Homeland Security Investigations.
Suburban Chicago Tax Preparer Sentenced to Two Years in Federal Prison for Orchestrating a Variety of Fraud SchemesRead the Press Release
CHICAGO — A suburban Chicago tax preparer has been sentenced to two years in federal prison for orchestrating a variety of schemes that defrauded the IRS, U.S. Department of Education, and U.S. Social Security Administration.
LISA LLOYD TAYLOR, owner of Ebiz Accounting Services in Country Club Hills, Ill., willfully filed false personal or corporate tax returns from 2010 to 2013 that substantially underreported her own income or the income earned by her business. From 2011 to 2015 Taylor also willfully prepared thousands of tax returns for her clients that claimed false deductions for purported charitable contributions and child-care expenses. Taylor’s tax schemes resulted in a total federal and state tax loss of more than $1.02 million.
In addition to the tax offenses, Taylor underreported her income to fraudulently obtain more than $53,000 in financial aid benefits for her children. Taylor’s children otherwise would not have qualified for the Department of Education grants.
Taylor also defrauded the Social Security Administration by applying for and collecting more than $134,000 in disability benefits to which she was not entitled. From 2011 to 2017, Taylor concealed from the SSA the extent to which she was working and the amount of income she received from Ebiz.
Taylor, 57, of Country Club Hills, pleaded guilty to federal tax and theft charges. U.S. District Judge Andrea R. Wood imposed the sentence Friday after a hearing in federal court in Chicago.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Justin Campbell, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago. Substantial assistance was provided by the Social Security Administration's Office of the Inspector General, and the U.S. Department of Education’s Office of Inspector General. The government is represented by Assistant U.S. Attorney Nicholas J. Eichenseer.
Subcontractor Employee Working at Cyril E. King Airport Sentenced to 37 Months in Federal Prison for Stashing 4 Kilograms of Cocaine in Men’s BathroomRead the Press Release
St. Thomas, USVI – United States Attorney for the District of the Virgin Islands Gretchen C.F. Shappert announced today that Keilin Lopez Lopez, 22, resident of St. Thomas, V.I., was sentenced to 37 months imprisonment followed by a four-year term of supervised release for possessing with intent to distribute approximately 4 kilograms of cocaine.
According to court documents, on July 31, 2020 at approximately 6:30 p.m., a Virgin Islands Port Authority employee witnessed a male tampering with a trashcan in a stall in the male restroom located inside the Cyril E. King terminal. Officers removed the trashcan from the wall revealing an open recess in between both sides of the interior wall. One large brick-shaped bundle and one small brick-shaped bundle containing approximately 4 kilograms of cocaine were lying at the bottom of the recess where the trashcan was previously inserted.
Airport surveillance footage showed a male, later identified as Keilin Lopez Lopez, wearing a backpack enter the bathroom where the bundles were discovered. Officers located Mr. Lopez who is an employee for a company contracted to work on the airport remodel. After being advised of his constitutional rights, Mr. Lopez waived them and stated he removed the trashcan from the wall in the restroom stall and placed the bundles inside the wall.
This case was investigated by Homeland Security Investigations and U.S. Customs and Border Patrol. Assistant United States Attorney Juan Albino prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Stoughton Man Indicted on Bank and Wire Fraud Scheme Related to COVID-19 PandemicRead the Press Release
BOSTON – A Stoughton man was indicted yesterday in connection with his alleged involvement in a fraudulent scheme to obtain COVID-19-related small business loans from several financial institutions.
Patrick Joseph, 39, was indicted on one count each of wire fraud, bank fraud and conspiracy to commit wire fraud and bank fraud. Joseph will appear in federal court in Boston at a later date.
The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) created a temporary loan program directed at small businesses called the Paycheck Protection Program (PPP). Independent contractors were eligible to apply for PPP loans, which were processed by private financial institutions and fully guaranteed by the U.S. Small Business Administration. If an independent contractor used the loan funds for approved purposes, such as payroll, the loan could be forgiven by the financial institution and paid for by the U.S. Small Business Administration.
According to the indictment, Joseph participated in a scheme that obtained over $220,000 in proceeds through fraudulent PPP loan applications submitted between April 2020 and April 2021. Joseph and a co-conspirator allegedly submitted 12 fraudulent PPP loan applications, both in their own names and in the names of others, at several financial institutions. It is also alleged that Joseph and his co-conspirator received kickback payments from individuals on whose behalf they submitted fraudulent PPP loan applications.
The charge of bank fraud and conspiracy to commit bank fraud provide for a sentence of up to 30 years in prison, up to five years of supervised release, a fine of up to $1 million or twice the gross gain or loss, whichever is greater, and forfeiture. The charge of wire fraud and conspiracy to commit wire fraud provide for a sentence of up to 20 years in prison, up to three years of supervised release, a fine of up to $250,000 or twice the gross gain or loss, whichever is greater, and forfeiture. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Frederick J. Regan, Special Agent in Charge of the U.S. Secret Service, Boston Field Office made the announcement. Valuable assistance in the investigation was provided by the U.S. Postal Service, Massachusetts State Police and the Boston Police Department. Assistant U.S. Attorney Christopher J. Markham, of Mendell’s Securities, Financial & Cyber Fraud Unit, and Assistant U.S. Attorney Philip C. Cheng, of Mendell’s Narcotics & Money Laundering Unit, are prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
South Carolina Chiropractor Pleads Guilty and Agrees to $9 Million False Claims Act Consent JudgmentRead the Press Release
Washington, D.C. --- On Nov. 8, the U.S. District Court for the District of South Carolina entered a $9 million civil consent judgment for the United States against South Carolina chiropractor Daniel McCollum under the False Claims Act. On that same day, the U.S. Attorney’s Office for the District of South Carolina filed an information and plea agreement in which McCollum admitted to engaging in a conspiracy to pay illegal kickbacks and to defraud healthcare programs by billing for unnecessary medical services. The maximum criminal penalty McCollum could face is five years in prison and a fine of $250,000. A sentencing date has not been set.
McCollum owned and operated pain management clinics, laboratories and a pharmacy in South Carolina. He also operated pain management clinics in North Carolina and Tennessee. McCollum’s clinics did business collectively as Pain Management Associates.
On May 31, 2019, the United States filed a civil complaint alleging that McCollum caused the submission of false claims to federal health care programs arising from kickbacks he paid for urine drug testing (UDT) referrals in violation of the Anti-Kickback Statute; referrals prohibited under the Stark Law from physicians with whom McCollum had financial relationships; and claims for UDT and other services that were not medically necessary and that lacked a legitimate medical purpose.
On Oct. 29, McCollum agreed to resolve the government’s False Claims Act allegations, including admitting that he violated the Anti-Kickback Statute by providing kickbacks in the form of a direct bill program whereby his laboratory, Labsource, gave referring providers an opportunity to earn revenue generated from their commercially-insured UDT referrals as an inducement for those providers to refer all of their federally-insured UDT patients to Labsource. McCollum also caused medically unnecessary prescriptions for pain creams often without the knowledge or approval of the patients’ healthcare providers and regardless of whether the prescription had a legitimate medical purpose. McCollum admitted that the aforementioned conduct constituted misrepresentations, fraudulent omissions and/or deceptive conduct, and that he engaged in this conduct with an intent to deceive the United States and cause the United States to pay false or fraudulent federal healthcare program claims.
Congress passed the Stark Law and the Anti-Kickback Statute to prevent financial incentives from improperly influencing medical decision-making, which can lead to excessive and unnecessary tests and services. Among other things, the Stark Law prohibits billing Medicare for laboratory testing services referred by a physician who has a financial relationship with the laboratory. The Anti Kickback Statute prohibits offering or paying anything of value to induce the referral of items or services covered by federal healthcare programs, including laboratory testing services.
“Improper financial relationships between healthcare providers and laboratories can lead to overutilization and increase the cost of healthcare services paid for by the taxpayers,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The provision of medical services and prescriptions should be based on a patient’s medical needs rather than the financial interests of providers.”
“This office will use all tools necessary to ensure justice, deterrence and prevention of healthcare fraud,” said Acting U.S. Attorney M. Rhett DeHart for the District of South Carolina. “The criminal guilty plea and the civil consent judgment entered against the defendant in this case demonstrates that effort.”
“McCollum engaged in deceptive conduct by exploiting the vital programs on which they depend,” said Special Agent in Charge Derrick L. Jackson of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “We will continue to work with our law enforcement partners to hold accountable individuals who endanger the integrity of federal healthcare programs and the beneficiaries they serve.”
“The TRICARE Program is vital to the health and readiness of our active duty service members, retirees and their families,” said Special Agent in Charge Christopher Dillard of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Mid-Atlantic Field Office. “Today’s announcement should leave no doubt that DCIS and its law enforcement partners remain committed to rooting out fraud, holding bad actors accountable and protecting the integrity of the Department of Defense.”
The civil judgment resolves claims brought under the qui tam or whistleblower provisions of the False Claims Act by Donna Rauch, Muriel Calhoun, Brandy Knight and Karen Mathewson, all former employees of pain management clinics owned or operated by McCollum. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam cases are captioned United States ex rel. Rauch, et al. v. Oaktree Medical Centre, P.C., et al., No. 6:15-cv-01589-DCC (D.S.C.); United States ex rel. Mathewson v. Dr. Daniel A. McCollum, et al., No. 6:17-CV-01190-DCC (D.S.C.); and United States ex rel. Hawkins v. Pain Management Associates of the Carolinas, LLC, et al., No. 8:18-cv-02952-DCC (D.S.C.). In connection with this matter, the United States previously was awarded civil judgments totaling over $140 million against entities owned or operated by McCollum: Oaktree Medical Centre P.C., FirstChoice Healthcare P.C., Labsource LLC, Pain Management Associates of the Carolinas LLC, Pain Management Associates of North Carolina P.C., ProLab LLC and ProCare Counseling Center LLC.
The civil judgment and criminal plea obtained in this matter were the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the District of South Carolina, with assistance from the FBI, HHS-OIG, the South Carolina Attorney General’s Office and the DCIS.
The investigation and resolution of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The litigation was handled by Fraud Section Attorneys Yolonda Campbell, Michael Kass, Christopher Terranova and David Wiseman and Assistant U.S. Attorneys Beth Warren and Bill Watkins for the District of South Carolina.
Note: View a copy of the stipulation of settlement here.
Sioux Falls Woman Sentenced to 20 Years in Federal Prison in Fentanyl Overdose CaseRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Sioux Falls woman convicted of Distribution of a Controlled Substance Resulting in Serious Bodily Injury was sentenced on November 4, 2021 by District Court Judge Karen E. Schreier.
Halie Sletten, age 43, was sentenced to 20 years in prison, followed by 3 years of supervised release. She was also ordered to pay $100 to the Federal Crime Victims Fund.
Sletten was indicted for Distribution of a Controlled Substance Resulting in Serious Bodily Injury by a federal grand jury on October 6, 2020. She pled guilty on August 20, 2021.
On or about January 17, 2020, in the District of South Dakota, Sletten knowingly and intentionally distributed fentanyl, a Schedule II controlled substance, and heroin, a Schedule I controlled substance, and the distribution of said fentanyl and heroin resulted in the serious bodily injury of Victim #1, in violation of 21 U.S.C. § 841(a)(1).
Victim #1 injected the fentanyl and heroin that Sletten distributed to him. The fentanyl and heroin injected by Victim #1 caused Victim #1 to sustain an overdose. Paramedics were called and administered two doses of Narcan to Victim # 1, which revived him. Victim #1 would not have sustained an overdose if not for the fentanyl and heroin Sletten distributed. The overdose caused Victim #1 a substantial risk of death.
This case was investigated by the Brandon Police Department, Sioux Fall Police Department, Sioux Falls Area Drug Task Force and the Federal Bureau of Investigation. Assistant U.S. Attorney Mark Hodges prosecuted the case.
Sletten was immediately turned over to the custody of the U.S. Marshals Service.
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Sioux Falls Man Sentenced to 10 Years for Involvement in Meth ConspiracyRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Sioux Falls, South Dakota man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on November 1, 2021, by District Court Judge Karen Schreier.
Ashton Aman, age 37, was sentenced to 10 years in federal prison, followed by 5 years of supervised release. He was also ordered to pay $100 to the Federal Crime Victims Fund.
Aman was indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury on February 2, 2021. He pled guilty on July 12, 2021.
Beginning on an unknown date and continuing until on or about February 2, 2021, in the District of South Dakota and elsewhere, Aman knowingly and intentionally combined, conspired, confederated, and agreed together, with others known and unknown, to distribute 500 grams or more of a mixture and substance containing methamphetamine, a Schedule II controlled substance. Aman distributed over 500 grams of methamphetamine to co-conspirators which was then re-distributed to their own customers in the District of South Dakota and elsewhere.
This case was investigated by Homeland Security Investigations and the Sioux Falls Area Drug Task Force. Special Assistant U.S. Attorney Tamara Nash prosecuted the case.
Aman was immediately turned over to the custody of the U.S. Marshals Service.