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9 November 2021
Oelwein Man Pleads Guilty to Conspiring to Distribute MethamphetamineRead the Press Release
David Alan Tafolla, age 54, from Oelwein, Iowa, pled guilty today in federal court in Cedar Rapids.
At the plea hearing, Tafolla admitted that he conspired to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine and 50 grams or more of actual (pure) methamphetamine. In a plea agreement, Tafolla also acknowledged that he purchased pounds of methamphetamine. He further admitted that during a search of his home, law enforcement discovered more than 400 grams of methamphetamine, three grams of marijuana, and approximately $36,000 in cash. In the plea agreement, Tafolla admitted that, in addition to the methamphetamine found in his home, he distributed another 265 grams of methamphetamine.
Sentencing before United States District Court C. J. Williams will be set after a presentence report is prepared. Tafolla remains in custody of the United States Marshal. Tafolla faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment without the possibility of parole, a $10,000,000 fine, and a term of supervised release of up to life.
The case is being prosecuted by Special Assistant United States Attorney Devra T. Hake and was investigated by the Oelwein Police Department, the Iowa Division of Narcotics Enforcement, and the Federal Bureau of Investigation.
Court file information is at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-CR-2044.
Northeast Ohio Priest Sentenced to Life in Prison for Sex Trafficking Minors, Exploitation and Child PornographyRead the Press Release
Acting U.S. Attorney Bridget M. Brennan announced that Robert D. McWilliams, 41, of Strongsville, Ohio, was sentenced today by Judge Sara Lioi to life in prison. McWilliams, a Northeast Ohio-area Catholic Priest at the time of the offense conduct, previously pleaded guilty to two counts of sex trafficking of a minor, three counts of sexual exploitation of a child, and one count each of transportation of child pornography, receipt and distribution of visual depiction of a minor engaged in sexually explicit conduct and possession of child pornography.
“This defendant violated and exploited children in nearly every manner imaginable,” said Acting U.S. Attorney Bridget M. Brennan. “Using his role in the Church, Mr. McWilliams violated the sacrament of confession to identify potential victims, and offered religious counseling to victims he extorted under alter egos he intentionally created to conceal his own identity. He also used social media to target and entice young children into the exploitive world of juvenile sex trafficking, all after having already amassed a large collection of violent child pornography. We commend the victims and their families for the courage they have shown. We are also thankful to Homeland Security Investigations, the Geauga County Prosecutor’s Office, and the Internet Crimes Against Children Task Force for their work on this case and all cases involving perpetrators who target our children.”
“Mr. McWilliams used his position and reputation as a priest to meet and earn the trust of these children, only to betray that trust in the worst way possible for his own twisted gratification,” said HSI Detroit Special Agent in Charge Vance Callender. “HSI Detroit has several teams of agents and forensic interviewers throughout the region who work with state and local partners and the National Center for Missing and Exploited Children to identify individuals who exploit the communities’ trust.”
As set out in court documents, beginning in 2019, McWilliams used fake identities and technology to extort minors for sexually explicit images, amass a significant collection of child pornography and provide compensation to minors in exchange for sexual acts. McWilliams met some of the victims through his time in the seminary with the Catholic Diocese of Cleveland and as an appointed Parochial Vicar at a parish where the children and their families were affiliated.
According to court documents, McWilliams used the sacrament of confession to obtain information that he later exploited, by creating aliases, including posing as a minor, to seek the production of sexually explicit material from minors that he was “counseling.” Court records show that McWilliams enticed three minor victims to send sexually explicit photographs and videos, sometimes threatening to expose embarrassing information that McWilliams already knew about the victims if they did not send such images. When some victims refused to send additional images, McWilliams followed through on his threats and sent sexually explicit photographs to the victims’ mothers.
In addition, court documents state that McWilliams used the social networking website Grindr.com to make contact with a minor victim for the purpose of engaging in commercial sex. McWilliams then enticed this minor victim to identify another minor victim with whom McWilliams could engage in commercial sex acts. McWilliams met the victims on multiple occasions for the purpose of engaging in sex acts in exchange for money and alcohol.
On December 4, 2019, law enforcement officials executed a search warrant at McWilliams’ living quarters in Strongsville. During the search, officers seized a laptop and an external hard drive that contained hundreds of images and videos of child pornography. Further investigation revealed McWilliams had a Dropbox cloud storage account where he stored more than 128,000 images of child pornography. McWilliams downloaded these image files from the internet and stored them in various folders on his computer devices.
This case was investigated by the Geauga County Prosecutor’s Office with assistance from the Department of Homeland Security, Homeland Security Investigations and Ohio Internet Crimes Against Children (“ICAC”) Task Force. James Flaiz, the Geauga County Prosecutor, is an assigned Special Assistant U.S. Attorney on this matter. This case was prosecuted by Acting U.S. Attorney Bridget M. Brennan and Assistant U.S. Attorney Carol M. Skutnik.
North Carolina Family Sentenced in Multimillion Dollar South Carolina Medicaid SchemeRead the Press Release
Columbia, South Carolina – Acting United States Attorney M. Rhett DeHart announced today that Tony Lee Covington, 50, his wife Priscilla Covington, 51, and his sisters Vanessa McPhaul, 56, and Mary Moses Covington, 51, all of Raeford, North Carolina, were sentenced for conspiracy to commit wire fraud in a scheme to defraud South Carolina Medicaid of over $3.6 million.
According to evidence presented during the defendants’ guilty plea and sentencing hearings, the family members founded two companies, Preferred Care Incorporated and Saving Grace Outreach. The two companies claimed to provide rehabilitative behavioral health services to disabled, low-income individuals in South Carolina through the Medicaid program. Instead, between 2014 and 2016, the companies billed South Carolina Medicaid millions of dollars for “crisis intervention,” a service offered to individuals experiencing extreme emotional distress like suicidal thoughts or mental breakdowns.
During the hearings, the government indicated that despite the companies having fewer than 20 clients, they billed more in total for crisis intervention services than the entire South Carolina Department of Mental Health. Clients contacted by investigators indicated that while they had received some services from the companies, they never received any crisis intervention. Evidence in the case indicated that the services provided by the companies should have been billed at approximately $9.00 an hour, but by billing the services as crisis intervention, the companies were instead paid $67.88 per hour.
Although Medicaid instituted an audit of Preferred Care once the irregular billing was discovered, the family immediately started Saving Grace Outreach to continue the fraudulent billing practices.
“Stealing from agencies that serve those in distress is shameful, and illegal,” said Acting U.S. Attorney DeHart. “This office worked with our partners in the South Carolina Attorney General’s Office to not only prosecute these defendants, but to put a stop to their illegal practices.”
“This case shows the great working relationship between our office and the U.S. Attorney’s Office and illustrates how we use that cooperation to hold criminals accountable,” South Carolina Attorney General Alan Wilson said. “This Medicaid Fraud Scheme enabled providers to steal millions of dollars from taxpayers, which means there’s less money available for people who actually need medical care.”
United States District Judge Mary Lewis sentenced Tony Covington to 51 months in federal prison, Priscilla Covington to 39 months in federal prison, Mary Covington Moses to 33 months in federal prison, and Vanessa Covington McPhaul to 33 months in federal prison. There is no parole in the federal system. All defendants were given a three-year term of court-ordered supervision and ordered to repay $3,647,094.83 in restitution to South Carolina Medicaid.
The case was investigated by the United States Department of Health and Human Services (HHS) and South Carolina Attorney General’s Office.
Assistant United States Attorney T. DeWayne Pearson prosecuted the case.
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New Salem Man Pleads Guilty to Child Pornography OffenseRead the Press Release
BOSTON – A New Salem man pleaded guilty today in federal court in Springfield to a child pornography offense.
Nicholas Conkey, 35, pleaded guilty to one count of possession of child pornography. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for March 7, 2022. Conkey was charged in June 2019.
Conkey admitted that on Jan. 18, 2019, he possessed 42 images and one video of child pornography on his phone. These images and video depicted prepubescent children engaged in sex acts or the lascivious display of their genitalia. Conkey also admitted that he possessed child pornography images in his online email account.
The charge of possession of child pornography, due to the defendant’s prior military conviction for a child pornography offense, provides for a sentence of at least 10 years and up to 20 years in prison, at least five years and up to a lifetime of supervised release and a fine of up to $250,000. 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 Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. Assistant U.S. Attorney Alex J. Grant of Mendell’s Springfield Branch Office is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and CEOS, Project Safe Childhood marshals federal, state and local resources to 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 http://www.projectsafechildhood.gov.
New Jersey woman and Berkeley County man admit to roles in drug conspiracyRead the Press Release
MARTINSBURG, WEST VIRGINIA – Ana B. Lopez, of Camden, New Jersey, and Brandon Eugene Corbin, of Inwood, West Virginia, have admitted to their roles in a drug conspiracy that spanned several states, United States Attorney William J. Ihlenfeld, II announced.
Lopez, 21, and Corbin, 35, each pleaded guilty today to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Heroin, Fentanyl, and Cocaine Base.” Lopez and Corbin admitted to working with others to distribute controlled substances from January to September 2019 in Berkeley and Jefferson Counties and elsewhere.
Lopez and Corbin each face up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
This case is the result of investigations supported by the Organized Crime Drug Enforcement Task Force (OCDETF) under the Attorney General-led Synthetic Opioid Surge (SOS)/Special Operations Division (SOD) Project Clean Sweep. This initiative seeks to reduce the supply of synthetic opioids in “hot spot” areas previously identified by the Attorney General of the United States, thereby reducing drug overdoses and drug overdose deaths, and identify wholesale distribution networks and sources of supply operating nationally and internationally.
OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Assistant U.S. Attorney Lara Omps-Botteicher and Special Assistant U.S. Attorney C. Lydia Lehman, also with the Berkeley County Prosecuting Attorney’s Office, are prosecuting the case on behalf of the government. The FBI; Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms & Explosives; and the Eastern Panhandle Drug and Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Muskegon Man Sentenced to 210 Months in Prison for Drug Trafficking ConspiracyRead the Press Release
GRAND RAPIDS, MICHIGAN – U.S. Attorney Andrew Birge announced that Zachary John Kennedy, a/k/a “Zeus” of Muskegon, Michigan, was sentenced to 210 months’ imprisonment, followed by five years’ supervised release, by U.S. District Judge Paul L. Maloney.
Mr. Kennedy spent years conspiring with others to sell illegal drugs, including heroin, fentanyl, crack cocaine, and methamphetamine throughout west Michigan. During the conspiracy, Kennedy personally sold large quantities of methamphetamine, which included arranging a two-ounce methamphetamine deal in November 2019 and a ten-ounce deal in December 2019.
At sentencing, Judge Maloney found that Kennedy had used firearms in furtherance of his drug trafficking activities and that Kennedy’s actions showed an utter recklessness that needed to be deterred. Judge Maloney characterized Kennedy as “a major threat to the public” who committed a serious crime conspiring to sell drugs, particularly methamphetamine and fentanyl, both of which have had a major impact on the Western District of Michigan.
“This sentence marks a significant step in our efforts to disrupt major drug traffickers in the Muskegon area” commented U.S. Attorney Andrew Birge. “Zachary Kennedy’s actions endangered his community and put innocent citizens at risk. With today’s sentence, Mr. Kennedy has been held accountable for his actions.”
“I’d like to thank our law enforcement partners for their diligence in investigating drug trafficking crimes and protecting the public from violent drug traffickers like Mr. Kennedy,” said Drug Enforcement Administration (DEA) Special Agent in Charge Keith Martin. “The illicit drugs he pushed into west-Michigan are nothing short of poison, and the DEA will continue to work this case, and others like it, to their respective sources and bring everyone involved to justice.”
“WEMET Muskegon is a multi-jurisdictional task force comprised of local, county, state and federal officers. These types of cases would not be possible without the longstanding cooperation between agencies. Criminal drug traffickers do not stop at jurisdictional borders and because of cooperative efforts like the one here, neither do we,” said Detective Lieutenant Andrew Ambrose, commander of the West Michigan Enforcement Team (WEMET), a division of the Michigan State Police and one of the lead investigative agencies on the case.
Kennedy’s sentence is the most recent in a series of sentences handed down for drug traffickers prosecuted as part of coordinated efforts to disrupt drug trafficking in the Muskegon area. The other defendants received the following sentences:
- Brent Wilkerson, a/k/a “Pay”– 144 months in prison for distribution of 50 grams or more of methamphetamine;
- Daris Jefferson, a/k/a “Smoove” – 90 months in prison for possession of heroin and cocaine base (“crack”) with the intent to distribute it and possession of a firearm in furtherance of a drug trafficking crime;
- Alezay Coleman, a/k/a “Zay” – 87 months in prison for possession of methamphetamine, fentanyl, and heroin with the intent to distribute it;
- Malik Jones-Smith, a/k/a “9” – 60 months in prison for distribution of five grams or more of methamphetamine; and
- Carl Johnson, a/k/a “Orangebone,” a/k/a “Bones”– 12 months and 1 day in prison for distribution of cocaine base (“crack”).
This case was part of Operation Interstate Zeus, an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation that began in 2019 and was led by the Drug Enforcement Administration (DEA) and members of Michigan State Police’s West Michigan Enforcement Teams (WEMET). Kennedy is the latest in nearly a dozen defendants sentenced in the investigation, which led to the overall seizure of approximately 339 grams of suspected methamphetamine, 113 grams of fentanyl, 93 grams of heroin, and quantities of cocaine and crack cocaine. Investigators also seized six handguns, jewelry worth approximately $20,000 and more than $20,000 in cash.
OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case was prosecuted by Assistant U.S. Attorneys Stephanie M. Carowan and Vito S. Solitro.
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Miami Man Who Laundered Tax and Computer Scam Money Sentenced to Federal PrisonRead the Press Release
Miami, Florida – Fifty-one-year-old Kevin Dewayne Kirby was sentenced yesterday in federal district court in Ft. Lauderdale to 57 months in federal prison for laundering over $500,000 connected to two wire fraud scams.
The first was an IRS tax scam, which generally worked the following way: A fraudster, pretending to be from the IRS, called victims and convinced them that they owed back taxes to the IRS. The fraudster would threaten arrest and other legal action if the tax obligations were not immediately paid. Fearing the threats, victims wired their money to bank accounts that Kirby or his co-conspirators controlled.
The second scam was one involving computer services, which generally worked the following way: Fraudsters, pretending to work for a fake computer service company, called victims and told them that they had to pay a fee to fix or update their computers. Alternatively, the fraudsters told the victims that the fake computer company owned them refunds. Victims allowed the fraudsters remote access to their computers, which the fraudsters used to transfer funds from the victims’ savings accounts, brokerage accounts, or home equity accounts into the victims’ checking accounts. During this process, the fraudsters manipulated the online appearance of the victims’ accounts so that the transfers could not be seen or detected. After making the transfers, the fraudsters would contact the victims and convinced them that the fake computer company had made accidental refund payments to their checking accounts. They instructed victims on how to repay the money by wire transfer. The victims then unwittingly sent their own money (previously transferred by the fraudsters from the victims’ other accounts to their checking accounts) to bank accounts that Kirby and his co-conspirators controlled.
To execute the money laundering conspiracy, Kirby and his co-conspirators used bank accounts connected to eight different companies. After money was wired to these accounts, Kirby and his co-conspirators drained the funds from the accounts by wire transfers, cash withdrawals, money order purchases, and cashier check purchases. Kirby knew that the transactions were designed to conceal the nature of the proceeds. During the conspiracy, over half a million dollars was laundered.
On July 22, 2021, Kirby pled guilty to two counts of money laundering conspiracy and one count of money laundering. U.S. District Judge Rodney Smith imposed Kirby’s sentence.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida; Mark H. Morini, Jr., Special Agent in Charge, U.S. Treasury Inspector General for Tax Administration (TIGTA), Southern Field Division; Brian Swain, Special Agent in Charge, United States Secret Service, Miami; and Acting SAC is Matthew D. Line, Acting Special Agent in Charge, IRS-Criminal Investigation, Miami made the announcement.
Assistant U.S. Attorney Deric Zacca prosecuted the case. Assistant U.S. Attorney Daren Grove is handling asset forfeiture.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 21-cr-60074.
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Mexican National Sentenced for Illegal Re-EntryRead the Press Release
NEW ORLEANS – U.S. Attorney Duane Evans announced today that JUAN CARLOS SANCHEZ-ZAPATERO (“SANCHEZ-ZAPATERO”), age 36, was sentenced on November 4, 2021 to seven months in prison on a one-count indictment for illegal reentry of a removed alien in violation of Title 8, United States Code, Section 1326(a).
According to the indictment, SANCHEZ-ZAPATERO reentered the United States after he was previously deported on July 17, 2013. SANCHEZ-ZAPATERO faced a maximum term of imprisonment of two years, a maximum fine of $250,000, a maximum term of supervised release of one year, and a mandatory $100 special assessment fee.
U.S. Attorney Evans praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U. S. Attorney Spiro G. Latsis is in charge of the prosecution
Massachusetts Man Sentenced for Unlawfully Possessing FirearmRead the Press Release
PORTLAND, Maine: A Massachusetts man was sentenced today in U.S. District Court in Portland for being a felon in possession of a firearm, U.S. Attorney Darcie N. McElwee announced.
U.S. District Judge George Z. Singal sentenced Emmanuel Diaz, 31, to six years and three months in prison to be followed by three years of supervised release. Diaz pleaded guilty on July 6, 2021.
According to court records, Diaz absconded from parole in Massachusetts in October 2020. He subsequently traveled to Maine, where he was observed on video engaged in target shooting. On November 11, 2020, law enforcement officers arrested Diaz and recovered the gun. Diaz was prohibited from possessing a firearm because of two prior felony convictions.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) investigated the case with assistance from the Maine State Police and the Holyoke (Massachusetts) and Springfield (Massachusetts) police departments.
The prosecution is part of the Department of Justice’s Project Safe Neighborhoods (PSN) initiative. PSN is a nationwide initiative that brings together federal, state, local and tribal law enforcement officials, prosecutors, community leaders and other stakeholders to identify the most pressing violent crime problems in a community and develop comprehensive solutions to address them. PSN is coordinated by the U.S. Attorneys’ Offices in the 94 federal judicial districts throughout the 50 states and U.S. territories. PSN is customized to account for local violent crime problems and resources. Across all districts, PSN follows four key design elements of successful violent crime reduction initiatives: community engagement, prevention and intervention, focused and strategic enforcement, and accountability.
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Massachusetts Man Pleads Guilty to Firearm ChargesRead the Press Release
CONCORD - Ariel Toribio, 22, of Lawrence, Massachusetts, pleaded guilty in federal court on Monday to aiding and abetting the making of a false statement during the acquisition of a firearm, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, on five separate occasions in November and December 2019, Toribio’s co-defendant, Samantha Sicard, purchased 11 firearms for Toribio and others. Toribio solicited Sicard to buy the firearms, instructed her about which firearms to purchase and paid for the firearms. Toribio traveled with Sicard to a federally licensed firearms dealer where she would fill out the necessary paperwork and falsely state she was the actual purchaser of the firearms when she was in fact purchasing them for Toribio and others.
Toribio is scheduled to be sentenced on February 22, 2022. Charges against Sicard remain pending.
“By arranging for another person to buy guns for himself and others, this defendant committed a significant federal crime,” said Acting U.S. Attorney Farley. “In order to keep guns out of the hands of criminals, we work closely with the ATF and other law enforcement partners to identify and prosecute those who unlawfully obtain firearms.”
“Firearms trafficking remains ATF's top priority and this investigation is another example of how through the use of a straw purchaser, firearms are trafficked and end up in the hands of criminals. This case should send a clear message to straw purchasers of firearms, if you are thinking about buying a gun for someone other than yourself, you better think again.” Said James M. Ferguson, ATF Special Agent in Charge, Boston Field Division. “Together, with our law enforcement partners, we will aggressively pursue and arrest anyone who had a role in putting guns onto the streets and into the hands of individuals who cannot legally purchase them”
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by Assistant U.S. Attorney Debra Walsh.
The case is part of ATF’s Project Safe Neighborhoods initiative, which is a federally-funded program intended to reduce gun violence through law enforcement training, public education, and aggressive law enforcement efforts to investigate and prosecute gun-related crimes.
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Marion Man Pleads Guilty to Distributing FentanylRead the Press Release
ABINGDON, Va. – A Marion, Virginia man pleaded guilty last week to possession with the intent to distribute the deadly drug fentanyl.
Dakota Shadoe Tunnell, 21, became known to law enforcement in early 2021 when a flood of illegal pills began showing up in Smyth County, Virginia. The pills resembled a pharmaceutical preparation of oxycodone-hydrochloride pills, but were inconsistent in size, shape, and color as compared to pharmaceutical-grade pills. Pills of this type are sometimes referred to as “pressed” or “M30” pills.
During the investigation, law enforcement determined that Tunnell had been purchasing 300 to 500 pills at a time from his supplier and redistributing them in the Marion, Virginia area. On September 5, 2021, law enforcement executed a controlled purchase of approximately 100 pills from Tunnell for $1,700.
“The sale of fentanyl has grown dramatically in Southwest Virginia. People need to be aware of the dangers associated with these illegal ‘pressed pills’ because one pill can kill,” United States Attorney Christopher R. Kavanaugh said today. “The illicit use of fentanyl results in death or serious bodily injury more than any other controlled substance, and we will vigorously prosecute those who disseminate it.”
Tunnell pleaded guilty to one count of possessing with the intent to distribute 40 grams or more of fentanyl and is scheduled to be sentenced on January 25, 2022. He faces a mandatory minimum penalty of five years in prison and a maximum statutory penalty of up to 40 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Smyth County Sheriff’s Office, the U.S. Postal Inspection Service, the U.S. Postal Service Office of Inspector General, and the Federal Bureau of Investigation investigated the case.
Assistant U.S. Attorney Whit D. Pierce is prosecuting the case.
Man Traveling from Georgia to St. Croix Pleads Guilty to Federal Charges for Marijuana in LuggageRead the Press Release
ST. CROIX, USVI – U.S. Attorney Gretchen C.F. Shappert of the District of the Virgin Islands announced that a Georgia man pleaded guilty in federal court today to possession of a controlled substance with the intent to distribute.
According to court documents, Ra’Kheel Velasquez, age 24, of Georgia traveled to St. Croix on a Delta flight originating from Atlanta, Georgia with checked luggage containing approximately 1.76 kilograms (approximately 4 pounds) of marijuana in four individually wrapped packages intended for distribution.
He is scheduled to be sentenced on March 10, 2022 and faces a maximum penalty of 5 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Customs and Border Protection, and Homeland Security Investigations are investigating the case.
Assistant U.S. Attorney Melissa Ortiz is prosecuting the case.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Man Pleads Guilty to Escape ChargeRead the Press Release
HUNTINGTON, W.Va. – Robert Reid, 26, pleaded guilty yesterday to an escape charge.
According to court documents, on August 8, 2021, Reid left Dismas Charities, Inc., a Bureau of Prisons residential reentry facility, without permission and did not return. He had been confined at Dismas because of a previous federal conviction for theft of firearms from a licensed federal firearms dealer.
Reid faces up to five years in prison when he is sentenced on February 14, 2022.
United States Attorney William S. Thompson made the announcement and commended the investigative work of the United States Marshals Service.
United States District Judge Robert C. Chambers presided over the hearing. Assistant U.S. Attorney Patrick J. Jeffrey is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-00202.
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Long Island Bloods Gang Member Convicted of Racketeering and Other Charges, Including Murder, Narcotics Distribution and Sex TraffickingRead the Press Release
Earlier today, following four weeks of trial, a federal jury in Central Islip, New York, returned a guilty verdict against Bloods gang member Lawrence Lewis, also known as “L Boogs,” for the July 29, 2017 murder of John Birt, the forcible rape and sex trafficking of a Suffolk County woman, racketeering, multiple firearms offenses, narcotics possession and distribution and witness tampering. The trial was held before United States District Judge Joanna Seybert. When sentenced, Lewis faces a mandatory penalty of life in prison for the murder.
Breon Peace, United States Attorney for the Eastern District of New York, Timothy D. Sini, District Attorney, Suffolk County District Attorney’s Office, Ricky J. Patel, Acting Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Stuart Cameron, Acting Commissioner, Suffolk County Police Department (SCPD), announced the verdict.
“Lewis’s conviction today ensures that he will never again be able to terrorize our community with his senseless acts of gang-related violence,” stated United States Attorney Peace. “I commend the prosecutors in this Office, the Suffolk County District Attorney’s Office and the special agents and detectives whose hard work and persistence led to Lewis being held accountable for his long record of reprehensible crimes.”
“With extreme violence and indifference to human life, Lawrence Lewis with the Bloods street gang reigned terror over neighborhoods in Suffolk County, Long Island for over a decade. With today’s verdict finding Lewis guilty of heinous crimes to include murder, rape, and sex trafficking, a clear message has been sent to these violent gang members that they will be held accountable for their actions,” stated HSI Acting Special Agent-in-Charge Patel. “HSI New York’s Long Island Transnational Violent Gangs Task Force, working with our law enforcement and prosecutorial partners, will continue to tirelessly pursue the most dangerous offenders and bring them to justice.”
“Today’s verdict shows Mr. Lewis has very little regard for human life and demonstrates how truly detrimental his presence has been to society. He will now face the consequences of his actions. The outstanding work being done by our Long Island Gang Task Force continues to take these violent criminals of our streets and out of our communities so they can longer terrorize our neighbors,” stated FBI Assistant Director-in-Charge Driscoll.
“As a member of a violent street gang, Lewis’ involvement in illegal activity ran the gamut,” stated SCPD Acting Commissioner Cameron. “He was willing to do whatever it took to further his criminal activities and attempt to evade authorities. I applaud the hard work of all the agencies involved to hold Lewis accountable for his heinous actions.”
As proven at trial, between April 2004 and June 2019, Lewis, as a member of the Bloods street gang, distributed large quantities of cocaine base and heroin in Suffolk County. In order to protect his supply of narcotics, and secure his ability to distribute his narcotics, Lewis possessed a number of firearms, including an AR-15 assault rifle, a pistol-grip 12-gauge shotgun, a Mossberg .22 caliber rifle and a Ruger .45 caliber semi-automatic pistol.
Lewis also engaged in acts of extreme violence on behalf of the Bloods gang. For example, in 2014, as retaliation for a theft of guns, Lewis forced a woman into engaging in prostitution until she repaid her debt to him. During the same period of time, Lewis forcibly raped the woman. On July 29, 2017, Lewis shot and killed John Birt, a member of the Crips gang, at the Illusions Gentlemen’s Club in Deer Park, New York. While Birt and several friends posed for pictures inside the club, Lewis and a fellow Bloods gang member approached the group. Lewis’ associate attempted to display a Bloods hand signal and Birt began arguing with Lewis, who then shot and killed him. Later, Lewis texted a number of close acquaintances about the murder, stating that he was “sleeping good” and would “do it again.”
Prior to the trial, Lewis and others acting on his behalf made efforts to prevent witnesses from testifying against him, through the use of veiled and implicit threats of violence.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Christopher C. Caffarone, Mark E. Misorek and Anthony Bagnuola are in charge of the prosecution.
The Defendant
LAWRENCE LEWIS (also known as “L Boogs”)
Age: 38
Calverton, New YorkE.D.N.Y. Docket No. 18-CR-187 (S-1) (JS)
Leader of tree poaching ring that started massive Olympic Peninsula forest fire sentenced to 20 months in prisonRead the Press Release
Tacoma — The lead defendant in a scheme to unlawfully harvest maple trees from the Olympic National Forest that resulted in a massive 2018 forest fire was sentenced late yesterday to 20 months in prison, announced U.S. Attorney Nick Brown. Justin Andrew Wilke, 39, was convicted in July 2021 of conspiracy, theft of public property, depredation of public property, trafficking in unlawfully harvested timber, and attempting to traffic in unlawfully harvested timber.
According to records filed in the case, between April and August 2018, Wilke conducted an illegal logging operation in the Elk Lake area of the Olympic National Forest, near Hood Canal. Wilke and a crew of associates removed maple trees from the National Forest and transported it to a mill in Tumwater, Washington. Wilke used forged permits to sell the wood. The type of maple harvested by the defendants is highly prized and used to produce musical instruments.
This prosecution was the first use of tree DNA evidence in a federal criminal trial. At the trial, a Research Geneticist for the USDA Forest Service, testified that the wood Wilke sold was a genetic match to the remains of three poached maple trees investigators had discovered in the Elk Lake area. The DNA analysis was so precise that it found the probability of the match being coincidental was approximately one in one undecillion (one followed by 36 zeroes). Based on this evidence, the jury concluded that the wood Wilke sold the mill had been stolen. The DNA evidence also concluded that Wilke had unlawfully harvested and sold wood from seven additional maple trees – but the precise locations of those trees have not been determined.
On August 3, 2018, Wilke led a group of two other individuals in deciding to cut a maple tree that contained a wasp’s nest near the base of the tree. To remove the nest, the group sprayed insecticide and likely gasoline on the nest and then lit the nest on fire. The group failed to extinguish the fire, which developed into a wildfire later named the “Maple Fire.” The Maple Fire consumed more than 3,300 acres between August and November 2018 and cost approximately $4.2 million to contain. The other two members of the poaching group testified at trial that Wilke was standing next to the nest when it was lit on fire, and therefore appeared to have set the fire. However, because the fire was set at night, they were not able to see his exact actions, and testified that they did not know exactly how the fire started. The jury did not convict Wilke of the two federal counts related to the forest fire: setting timber afire and using fire in furtherance of a felony. The jury did convict Wilke of attempting to cut down the tree where the fire was set on the night of the fire.
Prosecutors recommended a 36-month sentence, noting that Wilke led the three-person tree-poaching ring that indisputably started the fire, and that Wilke likely set the fire himself based on the testimony at trial. At sentencing, Judge Benjamin H. Settle concluded that the evidence was clear and convincing that Wilke was present when the fire was set, that a member of Wilke’s poaching crew set the fire, and that Wilke more likely than not personally set or directed one of his crew to set the fire. But Judge Settle noted that Wilke had made positive strides while on pretrial release, and that prison time is more difficult during the COVID pandemic. Judge Settle therefore imposed the 20-month sentence.
Wilke was also ordered to forfeit the proceeds of his illegal poaching. He will be required to pay restitution to the United States Forest Service. The exact amount will be determined at a later hearing.
The case was prosecuted by Assistant United States Attorneys Seth Wilkinson and Will Dreher.
Laboratory Owner Sentenced to 82 Months in Prison for COVID-19 Kickback SchemeRead the Press Release
A Florida owner of multiple diagnostic testing laboratories was sentenced today in the Southern District of Florida to 82 months in prison for a scheme to defraud the United States and to pay and receive kickbacks through exploiting regulatory waivers put in place to ensure access to health care during the COVID-19 pandemic.
According to court documents, Leonel Palatnik, 42, of Aventura, as a co-owner of Panda Conservation Group LLC (Panda), conspired with other co-owners of the company and with Michael Stein, the owner of 1523 Holdings LLC, to pay illegal kickbacks to Stein in exchange for his work arranging for telemedicine providers to authorize genetic testing orders for Panda’s laboratories. 1523 Holdings and Panda then exploited temporary amendments to telehealth restrictions enacted during the pandemic, which were intended to expand access to care for Medicare recipients by making it easier for beneficiaries to receive needed medical care from home. Palatnik and his co-conspirators took advantage of these waivers by using telehealth providers to authorize thousands of medically unnecessary cancer and cardiovascular genetic testing orders. In exchange, Panda gave these providers access to beneficiary information and the opportunity to bill for purported telehealth consultations with Medicare recipients, which often did not take place. On Aug. 31, Palatnik pleaded guilty to one count of conspiracy to defraud the United States and offer kickbacks and one count of paying a kickback.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Acting Assistant Director Jay Greenberg of the FBI’s Criminal Investigative Division; and Special Agent in Charge Omar Pérez Aybar of the U.S. Department of Health and Human Services, Office of the Inspector General (HHS-OIG) made the announcement.
The FBI’s Miami and Dallas Field Offices and HHS-OIG are investigating the case, with assistance from the FBI’s Healthcare Rapid Response Team.
Trial Attorney Ligia Markman of the National Rapid Response Strike Force is prosecuting the case.
The case against Palatnik was brought as part of the COVID-19 Health Care Fraud coordinated law enforcement action on May 26 against 14 defendants in seven judicial districts. Palatnik was charged along with Stein, who is currently awaiting trial. The law enforcement action was brought in coordination with the Health Care Fraud Unit’s COVID-19 Interagency Working Group, which is chaired by the National Rapid Response Strike Force and organizes efforts to address illegal activity involving health care programs during the pandemic.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, comprised of 15 strike forces operating in 24 federal districts, has charged more than 4,200 defendants who collectively have billed the Medicare program for more than $19 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at https://www.justice.gov/criminal-fraud/health-care-fraud-unit.
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 Stein is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Kansas Sex Offender Sentenced to 21 Years for Illicit Sex with ChildRead the Press Release
KANSAS CITY, Mo. – A registered sex offender from Kansas City, Kansas, was sentenced in federal court today for crossing state lines to engage in illicit sexual activity with a 14-year-old Missouri victim he met on Facebook.
Montoryon Harris, 45, was sentenced by U.S. District Judge Gary A. Fenner to 21 years and eight months in federal prison without parole. The court also sentenced Harris to 10 years of supervised release following incarceration.
On Jan. 13, 2021, Harris pleaded guilty to one count of traveling across state lines to engage in illicit sexual conduct with a minor and one count of committing the felony offense while he was required to register as a sex offender. Harris, who has been detained in federal custody without bond since his arrest, has a 1997 felony conviction for aggravated indecent solicitation of a minor involving a 6-year-old victim. Harris, who has four prior felony convictions and 12 misdemeanor convictions, was on felony probation at the time of this offense.
On Jan. 24, 2019, the Western Missouri Cyber Crimes Task Force received a Cybertip from the National Center for Missing and Exploited Children. Facebook reported that Harris was suspected of engaging in the sexual exploitation of a 14-year-old child victim. Harris began communicating with the child victim via Facebook on Dec. 14, 2018. Soon afterward, he told her that he wanted to see her in person. Harris’s text messages quickly became sexual in nature.
A law enforcement officer contacted the child victim, who confirmed that Harris drove to her house on Dec. 17, 2018. They engaged in sexual activity in his pickup truck while parked outside her house. Afterward, Harris continued to message the child victim for the purpose of arranging another sexual encounter.
According to court documents, law enforcement investigators discovered text messages on Harris’s cell phone in which he communicated with additional children. Harris engaged in conversations of a sexual nature or solicited sexual contact with two 15-year-old children.
This case was prosecuted by Assistant U.S. Attorney David Luna. It was investigated by Homeland Security Investigations, the Western Missouri Cyber Crimes Task Force, and the Wyandotte County, Kan., Sheriff’s Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Kaléo, Inc. Agrees to Pay $12.7 Million to Resolve Allegations of False Claims for Anti-Overdose DrugRead the Press Release
BOSTON – A Virginia-based pharmaceutical manufacturer, kaléo, Inc., has agreed to resolve allegations that it caused the submission of false claims for the drug Evzio and provided kickbacks to prescribers.
kaléo manufactured and sold Evzio, a naloxone hydrochloride product used for the rapid reversal of an opioid overdose. Evzio was the highest-priced version of naloxone on the market, and insurers frequently required the submission of prior authorization requests before they would approve coverage for Evzio.
The United States contends that, between March 14, 2017 and April 30, 2020, kaléo directed doctors prescribing Evzio to send prescriptions to certain preferred pharmacies that in turn submitted false claims for Evzio to Medicare, the TRICARE program and the Federal Employees Health Benefits Program. In particular, the pharmacies allegedly submitted false and misleading prior authorization requests for Evzio and dispensed Evzio without collecting or attempting to collect co-pays from government beneficiaries. The United States contends that kaléo knew of, or deliberately ignored, this pharmacy misconduct but nevertheless kept directing business to these pharmacies.
The settlement also resolves allegations that kaléo provided illegal remuneration in the form of kickbacks to prescribing physicians and their office staff to induce and reward their prescribing of Evzio. Specifically, the government alleges that Evzio sales representatives provided doctors’ offices with frequent deliveries of food and beverages, as well as occasional holiday gifts, even when there was no connection to any educational or other business event.
“When a pharmaceutical manufacturer knowingly engages with bad actors, they hurt the federal healthcare system — and they can expect us to see it,” said Acting United States Attorney Nathaniel R. Mendell. “Today’s settlement is our latest signal to pharmaceutical manufacturers that my office does not tolerate health care fraud and will continue to pursue enforcement.”
“Truthful and accurate documentation is essential to the integrity of federal healthcare programs,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “Today’s settlement demonstrates that the department will hold to account those who undermine these programs by causing false claims to be submitted to the government.”
“The American people, as both taxpayers and consumers, expect pharmaceutical companies like kaléo to abide by relevant laws and regulations,” said Phillip M. Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General. “When a pharmaceutical company participates in fraud in order to boost profits, it erodes public confidence in the health care system, can compromise the patient-physician relationship and wastes valuable government health care program funds. We will continue to investigate allegations of fraud in close cooperation with our law enforcement partners.”
“Today’s settlement resolves allegations that kaléo used gifts to incentivize and reward providers for prescribing the company’s pricey anti-overdose drug, while turning a blind eye to pharmacies' fraudulent practices that fleeced taxpayer-funded health care programs — programs that all of us pay for and depend on,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “These unsavory tactics only fuel the FBI’s and our law enforcement partners’ commitment to aggressively root out those who seek to boost their bottom line at the expense of hard-working taxpayers.”
“False claims undermine the integrity of the Federal Employees Health Benefits Program,” said Norbert E. Vint, Deputy Inspector General Performing the Duties of the Inspector General of the U.S. Office of Personnel Management, Office of the Inspector General (OPM OIG). “The OPM OIG is committed to protecting the Federal health care programs from deceptive schemes that increase the cost of medical care and waste taxpayer dollars.”
“Protecting TRICARE, the health care system for military members and their dependents, is a top priority for the Department of Defense Office of Inspector General Defense Criminal Investigative Service (DCIS),” said Patrick J. Hegarty, Special Agent in Charge of DCIS, Northeast Field Office. “When companies submit false authorizations for high-priced medical goods and services, they undermine the integrity of TRICARE and place an unnecessary financial burden on the program. The settlement agreement announced today is the result of a joint effort and demonstrates the DCIS’ ongoing commitment to work with our law enforcement partners to investigate health care fraud.”
Under the terms of the settlement agreement, kaléo will pay the government $12.743 million. The settlement resolves allegations originally brought in a lawsuit filed by a whistleblower under the qui tam provisions of the False Claims Act, which allow private parties, known as relators, to bring suit on behalf of the government and to share in any recovery.
Acting U.S. Attorney Mendell, Acting AAG Boynton, HHS OIG SAC Coyne, FBI SAC Bonavolonta, OPM OIG Deputy Inspector General Vint, DCIS SAC Hegarty, and Matthew Modafferi, Special Agent in Charge of the U.S. Postal Service, Office of Inspector General, Northeast Area Field Office, made the announcement today. Assistant U.S. Attorneys David J. Derusha and Abraham R. George of Mendell’s Affirmative Civil Enforcement Unit and Trial Attorney Sarah Arni of the Justice Department’s Civil Division handled the matter.
Kaléo Inc. Agrees to Pay $12.7 Million to Resolve Allegations of False Claims for Anti-Overdose DrugRead the Press Release
kaléo Inc., a Virginia-based pharmaceutical manufacturer, has agreed to pay the United States $12.7 million to resolve allegations that kaléo caused the submission of false claims for the drug Evzio, an injectable form of naloxone hydrochloride indicated for use to reverse opioid overdose. Evzio was the highest-priced version of naloxone on the market, and insurers frequently required the submission of prior authorization requests before they would approve coverage for Evzio.
The United States alleged that, between March 14, 2017, and April 30, 2020, kaléo directed prescribing doctors to send Evzio prescriptions to certain preferred pharmacies that in turn (1) submitted false prior authorization requests for Evzio that misrepresented to insurers that the prescribing physicians submitted the request when the pharmacies did so and/or contained false or misleading assertions about the patients’ medical histories, such as false statements that patients had previously tried and failed less costly alternatives to Evzio, and (2) dispensed Evzio without collecting or attempting to collect co-payment obligations from government beneficiaries. The United States contends that kaléo knew of or deliberately ignored this pharmacy misconduct, but nevertheless kept directing business to these pharmacies. The United States also alleged that kaléo provided illegal remuneration to prescribing physicians and their office staff in violation of the Anti-Kickback Statute to induce and reward their prescribing of Evzio.
“Truthful and accurate documentation is essential to the integrity of federal health care programs,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “Today’s settlement demonstrates that the department will hold to account those who undermine these programs by causing false claims to be submitted to the government.”
“When a pharmaceutical manufacturer knowingly engages with bad actors, they hurt the federal health care system — and they can expect us to see it,” said Acting U.S. Attorney Nathaniel R. Mendell for the District of Massachusetts. “Today’s settlement is our latest signal to pharmaceutical manufacturers that my office does not tolerate health care fraud and will continue to pursue enforcement.”
“The American people, as both taxpayers and consumers, expect pharmaceutical companies like kaléo to abide by relevant laws and regulations,” said Special Agent in Charge Phillip M. Coyne of the U.S. Department of Health and Human Services, Office of the Inspector General (HHS OIG). “When a pharmaceutical company participates in fraud in order to boost profits, it erodes public confidence in the health care system, can compromise the patient-physician relationship and wastes valuable government health care program funds. We will continue to investigate allegations of fraud in close cooperation with our law enforcement partners.”
“Today’s settlement resolves allegations that kaléo used gifts to incentivize and reward providers for prescribing the company’s pricey anti-overdose drug, while turning a blind eye to pharmacies' fraudulent practices that fleeced taxpayer-funded health care programs — programs that all of us pay for and depend on,” said Special Agent in Charge Joseph R. Bonavolonta of the FBI Boston Division. “These unsavory tactics only fuel the FBI’s and our law enforcement partners’ commitment to aggressively root out those who seek to boost their bottom line at the expense of hard-working taxpayers.”
“False claims undermine the integrity of the Federal Employees Health Benefits Program,” said Deputy Inspector General Performing the Duties of the Inspector General Norbert E. Vint of the U.S. Office of Personnel Management, Office of the Inspector General (OPM OIG). “The OPM OIG is committed to protecting the federal health care programs from deceptive schemes that increase the cost of medical care and waste taxpayer dollars.”
“Protecting TRICARE, the health care system for military members and their dependents, is a top priority for the Department of Defense Office of Inspector General Defense Criminal Investigative Service (DCIS),” said Special Agent in Charge Patrick J. Hegarty of DCIS, Northeast Field Office. “When companies submit false authorizations for high-priced medical goods and services, they undermine the integrity of TRICARE and place an unnecessary financial burden on the program. The settlement agreement announced today is the result of a joint effort and demonstrates the DCIS’ ongoing commitment to work with our law enforcement partners to investigate health care fraud.”
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Rebecca Socol, a former employee of kaléo. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. As part of the resolution with kaléo, Ms. Socol will receive $2,548,600 of the settlement amount. The qui tam case is captioned United States ex rel. Socol v. kaléo, Inc., 18-cv010050-RGS (D. Mass.) (under seal).
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the District of Massachusetts, with assistance from the HHS OIG; DCIS; OPM OIG; the FBI; and the U.S. Postal Service Office of Inspector General.
The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The matter was handled by Trial Attorney Sarah Arni and Assistant U.S. Attorneys David Derusha and Abraham George.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Justice Department Secures Agreement with PATH to End Unnecessary Medical Exams and Health Questions of its EmployeesRead the Press Release
NEWARK, N.J. – The Department of Justice filed an agreement today in Newark federal court to resolve its lawsuit against the Port Authority Trans-Hudson Corporation (PATH) under the Americans with Disabilities Act (ADA) and the Genetic Information Nondiscrimination Act (GINA).
PATH operates a rail transit service between Manhattan and New Jersey. The department’s suit alleges PATH subjected its workers to unnecessary medical exams and sought unnecessary information from those employees about their disabilities and other health conditions. As part of the settlement agreement, PATH will pay a total of $100,000 to certain employees who were harmed by PATH’s exams and inquiries.
“Workers deserve to be free from unlawful inquiries that could reveal a disability or family medical information,” Acting U.S. Attorney Rachael A. Honig said. “This office remains committed to protecting the civil rights of employees by ensuring that employers comply with the requirements of federal law. We thank PATH for its cooperation with our investigation and its commitment to make changes necessary to protect the civil rights of its workers.”
“No employee should be subject to unnecessary medical exams and health inquiries by their employer,” Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division said. “This settlement reflects the Justice Department’s firm commitment to protecting workers from unlawful and probing inquiries into their health and disability status.”
The settlement agreement resolves a lawsuit that the department filed today in federal court in New Jersey. Under the terms of the agreement, which must be approved by the court, PATH has agreed to stop unnecessary medical exams, as well as unnecessary questions about employees’ disabilities, health conditions, and family medical history. In addition to the compensation to two employees, the settlement also requires PATH to train its staff on the ADA and GINA and to periodically submit reports about its compliance with the agreement.
The ADA bars employers from requiring medical exams or inquiries of on-the-job employees unless the information sought is vital to job performance or safety. GINA bars employers from asking employees to disclose genetic information, including questions about family medical history.
This case was handled by the department’s Civil Rights Division and the U.S. Attorney’s Office for the District of New Jersey after the matter was referred from the Equal Employment Opportunity Commission’s Newark Office. The department plays a central role in advancing the nation’s goal of equal opportunity, full participation, independent living, and economic self-sufficiency for people with disabilities.
For more information on the Civil Rights Division, please visit http://www.justice.gov/crt. For more information on the ADA, please call the Department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov. ADA complaints may be filed online at http://www.ada.gov/complaint. Individuals who believe they may have been victims of discrimination may also file a complaint with the U.S. Attorney’s Office at http://www.justice.gov/usao-nj/civil-rights-enforcement/complaint or call the U.S. Attorney’s Office Civil Rights Hotline at (855) 281-3339.
The government is represented by Assistant U.S. Attorney Michael E. Campion, Chief of the U.S. Attorney’s Office Civil Rights Unit, and Senior Trial Attorney Alyse Bass of the Civil Rights Division’s Disability Rights Section.
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Justice Department Secures Agreement with Employer to End Unnecessary Medical Exams and Health QuestionsRead the Press Release
Today the Justice Department filed an agreement with the Federal Court in New Jersey to resolve its lawsuit against the Port Authority Trans-Hudson Corporation (PATH) under the Americans with Disabilities Act (ADA) and the Genetic Information Nondiscrimination Act (GINA).
PATH operates a rail transit service between Manhattan and New Jersey. The department’s suit alleges that PATH subjected its workers to unnecessary medical exams and sought unnecessary information from those employees about their disabilities and other health conditions. As part of the settlement agreement, PATH will pay a total of $100,000 to certain employees who were harmed by PATH’s exams and inquiries.
“No employee should be subject to unnecessary medical exams and health inquiries by their employer,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “This settlement reflects the Justice Department’s firm commitment to protecting workers from unlawful and probing inquiries into their health and disability status.”
“Workers deserve to be free from unlawful inquiries that could reveal a disability or family medical information,” said Acting U.S. Attorney Rachael A. Honig for the District of New Jersey. “This office remains committed to protecting the civil rights of employees by ensuring that employers comply with the requirements of federal law. We thank PATH for its cooperation with our investigation and its commitment to make changes necessary to protect the civil rights of its workers.”
The settlement agreement resolves a lawsuit that the department filed today in federal court in New Jersey. Under the terms of the agreement, which must be approved by the court, PATH has agreed to stop unnecessary medical exams, as well as unnecessary questions about employees’ disabilities, health conditions and family medical history. In addition to the compensation to two employees, the settlement also requires PATH to train its staff on the ADA and GINA and to periodically submit reports about its compliance with the agreement.
The ADA bars employers from requiring medical exams or inquiries of on-the-job employees unless the information sought is vital to job performance or safety. GINA bars employers from asking employees to disclose genetic information, including questions about family medical history.
This case was handled by the department’s Civil Rights Division and the U.S. Attorney’s Office for the District of New Jersey after the matter was referred from the Equal Employment Opportunity Commission’s Newark Office. The department plays a central role in advancing the nation’s goal of equal opportunity, full participation, independent living, and economic self-sufficiency for people with disabilities.
For more information on the Civil Rights Division, please visit http://www.justice.gov/crt. For more information on the ADA, please call the Department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov. ADA complaints may be filed online at http://www.ada.gov/complaint. Individuals who believe they may have been victims of discrimination may also file a complaint with the U.S. Attorney’s Office at http://www.justice.gov/usao-nj/civil-rights-enforcement/complaint or call the U.S. Attorney’s Office Civil Rights Hotline at (855) 281-3339.
View the complaint here. View the consent decree here.
Justice Department Announces Environmental Justice Investigation into Alabama Department of Public Health and Lowndes County Health DepartmentRead the Press Release
The Department of Justice announced today that it has opened an environmental justice investigation into the wastewater disposal and infectious disease and outbreaks programs of the Alabama Department of Public Health and the Lowndes County, Alabama, Health Department.
The investigation, which will be conducted by the Civil Rights Division, will examine whether the Alabama Department of Public Health and the Lowndes County Health Department operate their onsite wastewater disposal program and infectious diseases and outbreaks program in a manner that discriminates against Black residents of Lowndes County in violation of Title VI of the Civil Rights Act of 1964 (Title VI). The investigation will also examine whether the health departments’ policies and practices have caused Black residents of Lowndes County to have diminished access to adequate sanitation systems and to disproportionately and unjustifiably bear the risk of adverse health effects associated with inadequate wastewater treatment, such as hookworm infections.
“Sanitation is a basic human need, and no one in the United States should be exposed to risk of illness and other serious harm because of inadequate access to safe and effective sewage management,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “State and local health officials are obligated, under federal civil rights laws, to protect the health and safety of all their residents. We will conduct a fair and thorough investigation of these environmental justice concerns and their impact on the health, life, and safety of people across Lowndes County, Alabama.”
The department has not reached any conclusions regarding the allegations in this matter. This investigation marks the Department of Justice’s first Title VI environmental justice investigation for one of the department’s funding recipients. Title VI prohibits recipients of federal financial assistance from discriminating on the basis of race, color or national origin. Up until now, the Civil Rights Division has regularly provided counsel and support to other federal agencies whose Title VI compliance efforts have involved environmental programs. The department’s grants do not often go to programs that conduct environmental work, limiting its direct jurisdiction to conduct these types of administrative investigations.
The Civil Rights Division’s Federal Coordination and Compliance Section is conducting this investigation with the support of the U.S. Attorney’s Office for the Middle District of Alabama. Individuals with relevant information are encouraged to contact the Federal Coordination and Compliance Section by email at [email protected] or by phone at 833-739-2103.
Addressing discriminatory environmental and health impacts through enforcement of the nation’s civil rights laws is a top priority of the Civil Rights Division. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt. View the Spanish translation of this press release here.
Johnstown Man Charged in Superseding Indictment with Gun and Drug Law ViolationsRead the Press Release
JOHNSTOWN, Pa. – A resident of Johnstown, Pa., was indicted by a federal grand jury in Johnstown on charges of violating federal narcotics laws and firearms laws, Acting United States Attorney Stephen R. Kaufman announced today.
The three-count Superseding Indictment named Gregory Brown, 50, as the sole defendant.
According to the Superseding Indictment presented to the court, on or about June 22, 2021, Brown knowingly, intentionally, and unlawfully, possessed with intent to distribute 40 grams or more of a mixture and substance containing a detectable amount of fentanyl and 5 grams or more of methamphetamine. Further, on or about August 5, 2021, Brown possessed with intent to distribute a quantity of a mixture and substance containing a detectable amount of cocaine, and was found in possession of ammunition, after having previously been convicted of a crime punishable by imprisonment for a term exceeding one year.
The law provides for a minimum sentence of 5 years up to 40 years in prison, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Arnold P. Bernard Jr. is prosecuting this case on behalf of the government.
The Drug Enforcement Administration conducted the investigation leading to the Superseding Indictment in this case.
A superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
John Thomas Burnette Sentenced to 36 Months in Federal PrisonRead the Press Release
TALLAHASSEE, FLORIDA –John Thomas Burnette, 44, of Tallahassee, Florida has been sentenced to 36 months in the Federal Bureau of Prisons and ordered to pay a $1,250,000 fine and restitution in the amount of $20,000. The sentence was announced by Jason R. Coody, Acting United States Attorney for the Northern District of Florida.
In December 2018, a federal grand jury charged Tallahassee City Commissioner Scott Maddox and Paige Carter-Smith in a forty-four-count indictment. In May 2019, a grand jury returned a superseding indictment adding Burnette as a defendant. Maddox and Carter-Smith subsequently pleaded guilty to two counts of Honest Services Fraud by Bribery and one count of Conspiring to Interfere with the Lawful Function of the IRS. In October 2019, a grand jury returned a second superseding indictment against Burnette.
Burnette’s sentence was the result of a federal jury returning a guilty verdict on August 13, 2021, at the conclusion of a fifteen-day trial. The jury found Burnette guilty on one count of Extortion Under Color of Official Right, two counts of Honest Services Fraud by Bribery, one count of Use of Interstate Commerce Facilities to Promote Bribery, and one count of Making False Statements to a Federal Officer.
At trial, the government presented evidence that Burnette engaged in a multi-year scheme with Maddox and Carter-Smith to commit extortion, fraud, and bribery. During the scheme, Burnette and Maddox extorted bribe payments from FBI undercover agents (“UCs”) who were posing as real estate developers and entrepreneurs. Burnette instructed the UCs that to obtain preferential treatment, they must pay bribes to Maddox through Governance Services. Burnette, Maddox, Carter-Smith, and the UCs agreed that the UCs would pay Governance Services $10,000 per month in exchange for Maddox agreeing to perform official acts meant to benefit the UCs’ sham development company.
In 2017, FBI agents approached Burnette, identified themselves as FBI agents, and asked Burnette about his involvement in the bribe payments to Maddox. During the interview, Burnette repeatedly lied about his knowledge of the UCs’ payments to and involvement with Maddox.
“The democratic system on which our country was founded relies on the consent and trust of the governed,” stated Acting U.S. Attorney Coody. “Our citizens deserve and expect that those in public office will act in the public’s interest, rather than their own and that of their confederates. With the assistance of our law enforcement partners, we will ensure that public officials who violate their oath by accepting bribes, as well as those corrupt individuals who pay them, are held accountable.”
“Our citizens are entitled to decisions based on the best interests of the public, not the best interests of corrupt public officials and bribe-paying business owners seeking to line their own pocketbooks,” said Rachel L. Rojas, Special Agent in Charge of the FBI Jacksonville Division. “Let there be no doubt - bribes are not good business in Tallahassee, nor anywhere else. The FBI remains fully committed to ensuring that anyone who violates the public’s trust is held accountable.”
Scott Maddox was sentenced to 60 months imprisonment, followed by 1-year supervised release. In addition, Maddox was ordered to pay restitution to the IRS of $76,763.00, and forfeiture of $70,000 jointly and severally with codefendant(s).
Paige Carter-Smith was sentenced to 24 months imprisonment, followed by 1-year supervised release. In addition, Carter-Smith was ordered to pay restitution to the IRS of $115,619, and forfeiture of $70,000 jointly and severally with codefendant(s).
The conviction was conducted by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation. The case against Maddox, Carter-Smith, and Burnette was prosecuted by Assistant United States Attorneys Stephen M. Kunz, and Andrew J. Grogan of the Northern District of Florida, and Deputy Chief Peter M. Nothstein, and Trial Attorney Rosaleen T. O’Gara of the Department of Justice, Criminal Division’s Public Integrity Section.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Jicarilla Apache man sentenced to over 15 years in prison for kidnapping conspiracy in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Andrew Bettelyoun, 26, a member of the Jicarilla Apache Tribe, was sentenced today in federal court to 15 years and 8 months in prison for conspiring to commit kidnapping in Indian Country. Bettelyoun pleaded guilty on Jan. 30, 2019.
In his plea agreement, Bettelyoun admitted to assisting his co-conspirator, Allister Quintana, 26, also of the Jicarilla Apache Tribe, by providing binding material and moving the victim from room to room in a house in Dulce, New Mexico, on the Jicarilla Apache Indian Reservation. The victim died as a result of the injuries he sustained during the kidnapping.
On Jan. 22, 2019, Quintana pleaded guilty to second degree murder in Indian Country. On Sept. 21 he was sentenced to 33 years in prison.
Upon his release from prison, Bettelyoun will be subject to five years of supervised release.
The Farmington Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from Jicarilla Apache Police Department. Assistant U.S. Attorneys Joseph Spindle and Frederick Mendenhall prosecuted the case.
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Jersey City Man Admits Illegal Firearm PossessionRead the Press Release
NEWARK, N.J. – A Jersey City man today admitted possessing a firearm and ammunition after previously being convicted of a felony, Acting U.S. Attorney Rachael A. Honig announced.
Javon Alston, 37, of Jersey City, New Jersey, pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark federal court to an indictment charging him with possession of a firearm by a convicted felon.
According to documents filed in this case and statements made in court:
On Nov. 6, 2020, Alston entered Victim-1’s apartment, brandished a small gray handgun, and told Victim-1 and her daughter, Victim-2, to leave. Victim-1 and Victim-2 left the apartment and alerted police, who apprehended Alston near Victim-1’s apartment a short time later. When he was arrested, Alston was carrying a silver-and-black handgun loaded with nine rounds of ammunition. Alston had previously been convicted of robbery in the Hudson County Superior Court and sentenced to five years in prison.
The charge of possession of a firearm and ammunition by a convicted felon carries a maximum penalty of 10 years in prison and a maximum fine of $250,000. Sentencing is scheduled for March 15, 2022.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s guilty plea. She also thanked the Jersey City Police Department, under the leadership of Public Safety Director James Shea, for assistance in the investigation.
The government is represented by Assistant U.S. Attorneys Sophie E. Reiter of the Cybercrime Unit and Sarah A. Sulkowski of the Violent Crimes Unit in Newark.
Jackson Woman Sentenced to 12 Months and One Day in Prison for Concealing Information about an Armed RobberyRead the Press Release
Jackson, Miss. – A Jackson woman was sentenced to 12 months and one day in prison for concealing information about an armed robbery, announced Acting U.S. Attorney Darren J. LaMarca and Special Agent in Charge Jermicha Fomby of the Federal Bureau of Investigation in Mississippi.
According to court documents, Rasheena Romegan Carter, 33, concealed information concerning an armed robbery at a business that occurred on August 21, 2018. Carter assisted in concealing the armed bandit by driving him from the robbery and concealing him from law enforcement. Instead of reporting the crime, and relaying the information she possessed, Carter concealed the information for months. Under federal law it is a felony for any person to fail to notify authorities about the commission of a felony crime and to affirmatively act to conceal information they have about that crime.
The FBI and the Jackson Police Department investigated the case.
Assistant U.S. Attorneys Andrew W. Eichner and Charles W. Kirkham prosecuted 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 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.
Justizministerium Kündigt Untersuchung Des Gesundheitsministeriums Des Bundesstaats Alabama (Alabama Department of Public Health) Und Der Gesundheitsbehörde Des Bezirkes Lowndes Zum Thema Umweltgerechtigkeit AnRead the Press Release
Das US-Justizministerium gab heute bekannt, dass es eine Untersuchung der Abwasserentsorgung sowie der Programme gegen Infektionskrankheiten und Krankheitsausbrüche des Gesundheitsministeriums des Bundesstaats Alabama und der Gesundheitsbehörde des Bezirkes Lowndes eingeleitet hat. Bei der heute angekündigten Untersuchung handelt es sich um die allererste Untersuchung des Justizministeriums zum Thema Umweltgerechtigkeit im Rahmen von Titel VI des US-amerikanischen Bürgerrechtsgesetzes von 1964.
Im Rahmen der Untersuchung, die von der Abteilung für Bürgerrechte durchgeführt wird, soll geprüft werden, ob das Gesundheitsministerium von Alabama und die Gesundheitsbehörde des Lowndes County ihre Programme zur Abwasserentsorgung vor Ort und zur Bekämpfung von Infektionskrankheiten und Krankheitsausbrüchen in einer Weise betreiben, die schwarze Einwohner des Bezirkes Lowndes diskriminiert und damit gegen Titel VI des Bürgerrechtsgesetzes von 1964 (Title VI) verstoßen. Im Rahmen dieser Untersuchung soll auch geprüft werden, ob die Richtlinien und Praktiken der Gesundheitsämter dazu geführt haben, dass die schwarzen Einwohner des Bezirkes Lowndes einen schlechteren Zugang zu angemessenen Abwassersystemen haben und in unverhältnismäßiger und ungerechtfertigter Weise das Risiko negativer gesundheitlicher Auswirkungen im Zusammenhang mit einer unzureichenden Abwasserbehandlung, wie z. B. Infektionen mit Hakenwürmern, tragen.
„Abwassereinrichtungen gehören zu den menschlichen Grundbedürfnissen und niemand in den Vereinigten Staaten sollte dem Risiko von Krankheiten oder anderen ernstlichen Gefahren ausgesetzt sein, weil er oder sie unzureichenden Zugang zu einer sicheren und effektiven Abwasserentsorgung hat“, erklärte die stellvertretende Generalstaatsanwältin der Abteilung für Bürgerrechte des US-Justizministeriums, Kristen Clarke. „Die Gesundheitsbeamten der Bundesstaaten und der lokalen Behörden sind nach den Bundesgesetzen über Bürgerrechte verpflichtet, die Gesundheit und Sicherheit aller ihrer Einwohner zu schützen. Wir werden eine faire und gründliche Untersuchung dieser umweltrechtlichen Bedenken und ihrer Auswirkungen auf die Gesundheit, das Leben und die Sicherheit der Menschen im Bezirk Lowndes im Bundesstaat Alabama durchführen.“
Das Ministerium hat noch keine Schlussfolgerungen zu den Vorwürfen in dieser Angelegenheit gezogen. Das Ministerium wird diese Untersuchung gemäß Titel VI des Bürgerrechtsgesetzes von 1964 durchführen. Titel VI verbietet Empfängern von Finanzhilfen des Bundes die Diskriminierung aufgrund von Ethnie (race), Hautfarbe oder nationaler Herkunft. Im Rahmen von Titel VI ist das Ministerium befugt, zu untersuchen, ob Empfänger von Finanzhilfen des Ministeriums ungesetzlich diskriminierend gehandelt haben.
Die Fachabteilung für bundesweite Koordinierung und Einhaltung von Vorschriften der Abteilung für Bürgerrechte führt diese Untersuchung mit Unterstützung der Staatsanwaltschaft der Vereinigten Staaten im Middle District von Alabama durch. Personen, die über sachdienliche Informationen verfügen, werden gebeten, sich per E-Mail an die Fachabteilung für bundesweite Koordinierung und Einhaltung von Vorschriften zu wenden: [email protected] oder telefonisch unter 833-739-2103.
Die Bekämpfung diskriminierender Auswirkungen auf die Umwelt und Gesundheit durch die Durchsetzung der Bürgerrechtsgesetze der Vereinigten Staaten ist eine der obersten Prioritäten der Abteilung für Bürgerrechte. Weitere Informationen über die Abteilung für Bürgerrechte finden Sie auf ihrer Website unter www.justice.gov/crt.
Incoming St. Croix Airline Passenger Arrested with over 12 Kilograms of Marijuana in Her LuggageRead the Press Release
ST. CROIX, USVI – U.S. Attorney Gretchen C.F. Shappert announced that a St. Augustine, Florida woman was arrested on November 6, 2021 in St. Croix on criminal charges relating to her travel to St. Croix, U.S. Virgin Islands from Charlotte, North Carolina via airline on November 6, 2021. According to court documents, she possessed two checked bags that contained 13 individually vacuum-wrapped bags with approximately 12.5 kilograms of a green leafy substance which tested positive for marijuana.
Court documents allege that Cynthia Ines Fernandes, age 33, possessed with the intent to distribute the 13 individually wrapped vacuum sealed packages of marijuana, found wrapped in between clothing. An initial appearance was conducted on November 8, 2021 before U.S. District Court Magistrate Judge George W. Cannon, Jr., who set a preliminary hearing date of November 18, 2021 at 9:00 a.m.If convicted, she faces a maximum of 5 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Customs Border Protection and Homeland Security Investigations are investigating the case.
Assistant U.S. Attorney Melissa P. Ortiz 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.
Hilliard man lies to avoid taxes on $1 million in lottery winnings; pleads guilty to tax fraudRead the Press Release
COLUMBUS, OHIO – Mustafa Shalash, of Hillard, Ohio, pleaded guilty in U.S. District Court to one count of filing a false tax return with the IRS. Shalash was charged by bill of information on October 22, 2021.
According to court documents, in 2015 Shalash won $1,000,000 on a single lottery ticket. He received $710,000, and $290,000 was withheld in taxes. On his 2015 tax return, Shalash reported gambling winnings of $1,069,100 and falsely claimed gambling losses of $1,069,100. Shalash knew that his actual gambling losses were no more than $300,000. To conceal his gambling winnings, Shalash wired $690,000 abroad, including $440,000 to a bank account under his control in Jordan.
From 2014 through 2019, Shalash had as much as 409,000–645,803 Dinar, or approximately $576,077–$909,614, in a foreign bank account in Jordan. In addition to wiring lottery winnings abroad, Shalash accumulated money in foreign bank accounts by transporting more than $10,000 in funds across the U.S. border on multiple occasions. On July 8, 2015, Shalash purchased a $19,000 cashier’s check and then flew to Jordan, where he deposited the check into his Jordanian bank account. In April 2016, Shalash purchased two cashier’s checks for $15,000 and $25,000, then flew to Jordan, where he deposited them in his Jordanian bank account. In none of the cases did Shalash file the required Form 105, Report of International Transportation of Currency or Monetary Instruments. Before he knew he was being investigated, Shalash never filed, as required, a FinCen Form 114, Report of Foreign Bank and Financial Accounts (FBAR).
On his 2015 tax return, Shalash also failed to disclose that he had a foreign bank account. Shalash reported to his return preparer that he did not have a foreign bank account. As a result of his overstating his gambling losses on his 2015 tax return, Shalash caused a tax loss of $255,967 to the IRS.
“Concealing bank accounts overseas and inflating losses on a tax return is a recipe for criminal tax prosecution,” said Bryant Jackson, Special Agent in Charge, IRS, Criminal Investigation, Cincinnati Field Office. “IRS CI will continue to apply substantial resources towards and vigorously investigate criminal tax fraud.”
Filing a false income tax return carries a maximum penalty of 3 years in prison and a fine not to exceed $100,000.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio, and Bryant Jackson, Special Agent in Charge, Internal Revenue Service Criminal Investigation, Cincinnati Field Office, announced the plea entered before U.S. District Judge Sarah D. Morrison.
This case is being prosecuted by Assistant United States Attorneys David J. Twombly and Peter K. Glenn-Applegate and was investigated by special agents of IRS-Criminal Investigation.
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Hertel & Brown Physical & Aquatic Therapy, Its Two Founders Aaron Hertel and Michael Brown, and 18 Employees Indicted on Fraud ChargesRead the Press Release
ERIE, Pa. – A physical therapy practice in Erie County, Pennsylvania, and 20 people – 18 of them from northwestern Pennsylvania - have been indicted by a federal grand jury in Erie on charges of conspiracy to commit wire and health care fraud and health care fraud, Acting United States Attorney Stephen R. Kaufman announced today.
The two-count Indictment named the following individuals as defendants: Aaron Wilhelm Hertel, of North East, Pennsylvania 16428
Michael Robert Brown, of Erie, Pennsylvania 16506
Sarah Elizabeth Bailey, of Erie, Pennsylvania 16506
Jessica Jeanne Morphy, of Erie, Pennsylvania 16505
Jacqueline Renee Exley, of Erie, Pennsylvania 16508
Julie Ann Johnson, of Erie, Pennsylvania 16506
Bobby Lee Rainey, of Erie, Pennsylvania 16505
Steve Michael Bauer, of Erie, Pennsylvania 16502
Austin John Dudenhoefer, of Erie, Pennsylvania 16509
Philip Dale Sorensen, Jr., of Erie, Pennsylvania 16509
Patricia Susan Berchtold, of Melbourne, Florida 32940
Jeremy Richard Bowes, of Erie, Pennsylvania 16506
Jennifer Marie Larmon, of Waterford, Pennsylvania 16441
Travis Walter Litz, of Erie, Pennsylvania 16508
Erin Marie Riffe, of Conneaut, Ohio 44030
Abigayle Jane Fachetti, of Erie, Pennsylvania 16511
Lori Lynn Goss, of Waterford, Pennsylvania 16441
Marissa Sue Hull, of Waterford, Pennsylvania 16441
Justin Charles Burger, of Erie, Pennsylvania 16508
Carl William Lewis, Jr., of Lake City, Pennsylvania 16423
The indictment also names Hertel & Brown Physical & Aquatic Therapy, main office located at 902 West Erie Plaza Drive, Erie, Pennsylvania 16505, as a defendant.According to the Indictment presented to the court, the defendants conspired from January 2007 to October 2021 to commit wire fraud and health care fraud. The multi-faceted conspiracy had numerous components including:
a) Hertel & Brown Physical & Aquatic Therapy utilized unlicensed technicians to provide physical therapy treatment, including aquatic therapy, and billed that treatment as if performed by a licensed physical therapist or physical therapy assistant.
b) Unlicensed technicians at Hertel & Brown Physical & Aquatic Therapy were permitted and required to log into the treatment documentation system, WebPT, as a licensed physical therapist to facilitate documenting treatment as if performed by a licensed therapist.
c) Hertel & Brown Physical & Aquatic Therapy and its licensed employees regularly recorded and billed for treatment time in excess of actual treatment time spent with patients.
d) Hertel & Brown Physical & Aquatic Therapy and its licensed employees rarely if ever utilized group therapy codes when billing for treatment even when group billing codes were the only appropriate billing codes that could have been utilized.
e) Hertel & Brown Physical & Aquatic Therapy regularly billed treatment time using the name and credentials of a physical therapist who was on vacation and not working on the day in question.
f) Hertel & Brown Physical & Aquatic Therapy allowed physical therapy assistants and unlicensed personnel to treat patients with insurance that only reimbursed for treatment performed by a physical therapist. Then the practice and its employees covered up who actually treated the patient by removing the name of the actual person providing treatment from the treatment record.
g) Hertel & Brown Physical & Aquatic Therapy and some of its employees also manually changed the patient schedule after the fact to conceal that Medicare patients were scheduled at the same time as other patients. This was done to conceal that Medicare patients did not have one on one treatment with a physical therapist as billed by the practice and required by Medicare.
“The indictment alleges that essentially since Hertel & Brown opened in 2007, the defendants perpetrated a systematic and brazen fraud scheme that bilked insurance companies and the government of millions through blatantly false billings,” said U.S. Attorney Kaufman. “Addressing health care fraud is a top priority of our Office and of our federal, state and local law enforcement partners.”
“Those charged today were in the business to make a quick buck and in turn violated the very basic ethical and moral standards medical professionals are held to,” said FBI Pittsburgh Special Agent in Charge Mike Nordwall. “Taking short cuts, illegal and improper billings and elaborate health care fraud schemes all increase the cost of medical care. The FBI will continue to work with our state, local and federal partners to detect and hold accountable those who abuse our health care system and patients’ trust.”
"When individuals and entities engage in health care fraud schemes, they steal from taxpayers and undermine the safeguards intended to protect patients,” stated Special Agent in Charge Maureen R. Dixon of the U.S. Department of Health and Human Services Office of Inspector General. “Working with our law enforcement partners, we will continue to investigate health care fraud to protect the integrity of federal health care programs and the beneficiaries served by them.”
“Health care fraud takes away limited resources from some of our most vulnerable Pennsylvanians,” said Pennsylvania Attorney General Josh Shapiro. “My Office, as well as our local, state, and federal partners, are committed to stopping these bad actors and preventing them from undermining critical support that families across the Commonwealth rely on.”
“Today’s indictment charges the defendants with conspiring to fraudulently bill the government for healthcare services that were either not provided or not provided to standard,” said Special Agent in Charge Kim Lampkins with the Department of Veterans Affairs Office of Inspector General. “The VA OIG, along with our law enforcement partners, is dedicated to ensuring that our nation’s veterans receive only the highest quality health care for which they deserve.”
The law provides for a maximum total sentence of 30 years in prison, a fine of $500,000 or twice the pecuniary loss (whichever is greater), or both for each defendant and the business. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation (FBI), United States Department of Health and Human Services – Office of Inspector General (HHS-OIG), United States Department of Veteran’s Affairs – Office of Inspector General (VA-OIG), Defense Criminal Investigative Service (DCIS), the Pennsylvania Office of Attorney General – Medicaid Fraud Control and Abuse Unit, and the United States Office of Personnel Management – Office of Inspector General (OPM-OIG) conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Hamburg Man Going to Prison for Stalking A Local News ReporterRead 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 Paul E. Lubienecki, 63, of Hamburg, NY, who was convicted of stalking, was sentenced to serve 12 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorneys Aaron J. Mango and Charles M. Kruly, who handled the case, stated that on six separate occasions between August 20, 2019, and February 4, 2020, the defendant left harassing and threatening voicemails for Victim 1 relating to the victim’s reporting on the Catholic Diocese of Buffalo, which appeared on Channel 7 WKBW. The defendant, using a TracFone cellular telephone with a phone number that appeared as “unknown,” left the voicemails with the intent to harass and intimidate Victim 1.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia, and the East Aurora Police Department, under the direction of Chief Shane Krieger.
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Ham Lake Felon Pleads Guilty to Cocaine Distribution, Firearms ViolationsRead the Press Release
ST. PAUL, Minn. – A Ham Lake man pleaded guilty to illegally possessing multiple firearms and possession with intent to distribute cocaine, announced Acting U.S. Attorney Charles J. Kovats.
According to court documents, on September 13, 2019, officers with the St. Paul Police Department executed a traffic stop on a vehicle driven by Steven Michael Lincoln, 34. After observing a large bag of marijuana on the front passenger seat, officers asked Lincoln to exit the vehicle. Officers searched the vehicle and recovered a small baggie containing cocaine, a loaded Ruger .380-caliber pistol, a loaded Kimber .45-caliber pistol, multiple sandwich bags of prepackaged marijuana, a digital scale, $986 in cash, 10 vials containing varying amounts of cocaine, and two additional baggies of cocaine each containing about 3.5 grams.
According to court documents, on January 4, 2020, officers with the St. Paul Police Department observed Lincoln asleep in the driver’s seat of a pickup truck parked in an alleyway. After asking Lincoln to exit the vehicle, officers located under the driver’s seat a loaded Brugger and Thomet, TP9 9mm firearm, with a sling, an attached vertical foregrip, a red-dot attached sight, an inserted 30-round magazine, and one round in the chamber. A further search of the vehicle revealed a bulletproof vest, three Glock 9mm magazines, two loaded TP9 high-capacity magazines, 18 rounds of loose 9mm ammunition, and a .40-caliber barrel for a Glock 23.
Because he has prior felony convictions in Ramsey County, Lincoln is prohibited from possessing firearms or ammunition at any time.
Lincoln pleaded guilty today before U.S. District Judge Wilhelmina M. Wright to possessing a firearm as a felon, possession with intent to distribute cocaine, and possession of an unregistered firearm. A sentencing hearing will be scheduled at a later time.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is the result of investigations conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Minnesota Bureau of Criminal Apprehension, the St. Paul Police Department, and the Ramsey County Sheriff’s Office.
Assistant U.S. Attorneys Benjamin Bejar and Chelsea A. Walcker are prosecuting the case.
Guatemalan Man Sentenced to Federal Prison for Illegally Possessing a Firearm and Being in the United States IllegallyRead the Press Release
A Guatemalan man who was illegally in the United States while possessing a firearm was sentenced November 8, 2021, in federal court in Sioux City.
On June 16, 2021, Sergio Mendez-Perez, 26, from Guatemala, pled guilty to illegal reentry and alien in possession of a firearm.
Evidence at the hearings showed that on March 17, 2021, Mendez-Perez was arrested in Woodbury County, Iowa after pointing a gun at the home of a former employer in a threatening manner, and then fleeing from law enforcement both in his vehicle and on foot. Mendez-Perez, who was determined to be intoxicated, also resisted arrest. On March 18, 2021, ICE determined that Mendez-Perez was a citizen of Guatemala, and had been removed from the United States on one occasion after a conviction for presenting a false document to officials.
Sentencing was held before United States District Court Chief Judge Leonard T. Strand. Mendez-Perez remains in custody of the United States Marshal until he can be transported to a federal prison. Mendez-Perez was sentenced to 36 months’ imprisonment for both counts to be served concurrently and must serve 3 years of supervised release following imprisonment. He must also pay a mandatory special assessment of $200.
The case was prosecuted by Assistant United States Attorney Patrick T. Greenwood and was investigated by Department of Homeland Security, Bureau of Alcohol, Tobacco, Firearms and Explosives, and Sioux City Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-4026.
Follow us on Twitter @USAO_NDIA.
Georgia Man Pleads Guilty to CARES Act PPP FraudRead the Press Release
VALDOSTA, Ga. – A Georgia man pleaded guilty to money laundering after he filed for PPP loans amounting to more than $2.6 million under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Anthony J. Boncimino, 47, of Sycamore, Georgia, pleaded guilty to one count of money laundering before U.S. District Judge Louis Sands in Valdosta on Nov.8. Boncimino faces a maximum penalty of ten years in prison and a $250,000 fine. Sentencing is scheduled for Feb. 24, 2022. There is no parole in the federal system.
“Those who fraudulently capitalized during the global pandemic will be brought to justice for their crimes,” said Peter D. Leary, the Acting U.S. Attorney for the Middle District of Georgia. “Investigators are working to hold CARES Act fraudsters accountable; our office will pursue federal prosecution when warranted.”
“Greed has no place in SBA’s programs that are intended to provide assistance to the nation’s small businesses struggling with the pandemic challenges,” said SBA OIG’s Eastern Region Special Agent in Charge Amaleka McCall-Brathwaite. “Fraudsters attempting to gain access to economic stimulus funds will be met with justice. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”
"The Treasury Inspector General for Tax Administration aggressively pursues those who endeavor to defraud programs afforded to the American people under the CARES Act," said J. Russell George, the Treasury Inspector General for Tax Administration. "We appreciate the efforts of the Department of Justice and our law enforcement partners in this effort."
“While businesses were suffering and trying their best to make it through the pandemic, others chose greed. IRS-CI will continue to use its financial expertise to track and recommend prosecution of criminals taking advantage of a crisis,” said James E. Dorsey, Special Agent in Charge IRS-Criminal Investigation.
According to court documents, Boncimino admitted that he knowingly created two fictitious companies in order to obtain PPP loans fraudulently and obtained PPP loans for his moving business by falsifying payroll information. In all, Boncimino collected $2,671,871.74 in four PPP loans from three lender banks using fraud. Boncimino created fake IRS forms for his fictious
companies and submitted these and other fraudulent records to the lender banks and the SBA. Boncimino used the money to pay for state and federal taxes; he told investigators he wanted a safety net for his family and his moving business.
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.
Small Business Administration-OIG Eastern Region, the Treasury Inspector General for Tax Administration and IRS-Criminal Investigation investigated the case.
Assistant U.S. Attorney Jim Crane is prosecuting the case.
Fort Wayne Man Sentenced to 30 Years in PrisonRead the Press Release
FORT WAYNE – Fredrick Morgan, II, 42 years old, of Fort Wayne, Indiana, was sentenced by U.S. District Court Judge Holly A. Brady after pleading guilty to conspiracy to distribute methamphetamine, cocaine, and fentanyl, announced United States Attorney Clifford D. Johnson.
Morgan II was sentenced to 360 months in prison followed by 10 years of supervised release.
According to documents in the case, between May 6, 2019 and August 26, 2020, Morgan II was the leader of a conspiracy to distribute significant amounts of controlled substances. Morgan II maintained multiple stash houses to store narcotics, facilitated the sale of firearms and encouraged members of his conspiracy to possess firearms during their possession and distribution of narcotics.
Morgan II has two previous convictions for Dealing Cocaine and was on Court supervision when he began the conspiracy to distribute drugs.
This case was the result of a joint investigation conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Drug Enforcement Administration, with the assistance of multiple local law enforcement agencies, including the Indiana State Police, Allen County Sheriff’s Department, Allen County Drug Task Force, Adams County Sheriff’s Office, Huntington Police Department, Auburn Police Department, and the Fort Wayne Police Department. The case was prosecuted by Assistant United States Attorneys Stacey R. Speith and Brent A. Ecenbarger.
This case was being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Fort Hall Man Sentenced for Failing to Register as a Sex OffenderRead the Press Release
POCATELLO – A Fort Hall man was sentenced to 27 months in federal prison for failure to register as a sex offender.
According to court records, Montey Curtis Moon, 46, of Fort Hall, admitted that he was convicted of rape in Bannock County, in 1996. As result of his conviction, he had to register as a sex offender under the Sex Offender Registration and Notification Act (SORNA).
On multiple occasions in 2018, Moon was informed of his requirement to register or update his sex offender registration while living on the Fort Hall Reservation. After those warnings, Moon lived on the Fort Hall Reservation from August 21, 2020, until October 8, 2020. While living there, Moon did not register with the Idaho Sex Offender Registry. When interviewed, Moon admitted he knew he had to register and did not.
Acting U.S. Attorney Rafael M. Gonzalez, Jr., of the District of Idaho made the announcement and commended the cooperative efforts of the Fort Hall Police Department and the U.S. Marshals Service, which led to charges. “SORNA is a crucial public safety measure,” said Gonzalez. “These regulations further the Department’s goal of ensuring that convicted sex offenders are accounted for under the law. The regulations enhance the enforcement of registration and notification across the country and ensure that information about sex offenders in the community is available to law enforcement and the public,” he concluded.
Montey Curtis Moon was prosecuted for a violation of the Sex Offender Registration and Notification Act (SORNA) passed by Congress in 2006. The Act requires sex offenders to register and keep their registration current in each jurisdiction where they reside. Violations of SORNA can be prosecuted in federal court.
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Former Sioux City Council Member Sentenced in Federal Court for Environmental CrimesRead the Press Release
A man who unlawfully stored and transported hazardous waste was sentenced on November 8, 2021, in federal court.
Aaron Rochester, 47, from Sioux City, Iowa, pled guilty on March 19, 2021, to one count of unlawful storage of hazardous waste and one count of transportation of hazardous waste.
At various court hearings, evidence showed that from June 2015 through about January 2017, Rochester, as owner and operator of Recycletronics, knowingly and unlawfully stored and transported hazardous waste, namely CRTs (cathode ray tubes) and leaded glass from televisions and computers at various facilities in and around Sioux City, Iowa.
Sentencing was held before United States District Court Chief Judge Leonard T. Strand. Rochester was sentenced to three years’ probation, fined $4,055,978.64, and must serve a term of three years of supervised release.
“Rochester’s disregard for the laws governing proper hazardous waste transportation and storage posed significant risks to nearby communities,” said Special Agent in Charge Lance Ehrig of EPA’s criminal enforcement program in Iowa. “Today’s sentencing demonstrates that EPA and our law enforcement partners are committed to enforcing laws designed to protect human health and the environment.”
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the United States Environmental Protection Agency (EPA).
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-4073. Follow us on Twitter @USAO_NDIA.
Former Medical Student Sentenced for Fatal Party Drug OverdoseRead the Press Release
ALEXANDRIA, Va. – An Ontario, Canada, man was sentenced today to one year in prison for distributing MDA—a psychedelic drug similar to MDMA, or “molly”—that resulted in the fatal overdose of a 21-year-old Falls Church woman.
According to court documents, Saad Jalal, 28, was a Canadian medical student doing a clinical rotation in the District of Columbia when he met the victim and her roommates out at a bar. A few weeks later, Jalal and the women made plans to go out together again and Jalal offered to obtain some MDMA for the women from a supplier he knew in Maryland. Jalal obtained what he believed was MDMA, but was actually MDA (methylenedioxyamphetamine), a Schedule I controlled substance of similar chemical structure.
On the night of September 19, 2019, after Jalal obtained the MDA from his connection, he went to the residence of the victim and her roommates in Falls Church. The roommates and Jalal then drove into the District of Columbia to pick up the victim from her workplace. Shortly thereafter, the victim consumed the MDA, became noticeably impaired, and eventually, her roommates and Jalal decided to take her back to her home in Falls Church. She suffered an overdose caused by the MDA that Jalal distributed and became unresponsive. The victim was later pronounced dead, and her death was ruled an accidental overdose caused by MDA intoxication.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division; and Kevin Davis, Fairfax County Chief of Police, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema.
Assistant U.S. Attorney Katherine Rumbaugh prosecuted the case.
This matter was investigated by FBI WFO's Health Care Fraud squad and the Northern Virginia Safe Streets HiDta Task Force. These squads are focused on reducing the illegal flow of opioids, to include fentanyl, which is adversely impacting our communities.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-261.
Former Massac County Official Pleads Guilty to Wire Fraud and Mail FraudRead the Press Release
BENTON, Ill. – Christopher Thompson, 30, of Kevil, Kentucky, pleaded guilty today to one count of
Wire Fraud and seven counts of Mail Fraud for engaging in a scheme to defraud the Massac County
Emergency Management Agency. Thompson was the Assistant Director of the Emergency
Management Agency in Massac County and also served as the IT Manager for the Massac County Board of
Commissioners. As part of the plea, Thompson admitted to using official business accounts to pay for personal expenditures and admitted to opening up business lines of credit without authority for personal use causing a loss in excess of $50,000. As part of the plea, Thompson consented to forfeiture of items fraudulently purchased and otherwise consented to a forfeiture judgment in the amount of $52,054.51.
Thompson’s sentencing is scheduled for February 24, 2022. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.Each count of Wire Fraud and Mail Fraud carries a statutory maximum sentence of up to twenty years in prison, a fine of up to $250,000, three years supervised release and restitution.
FBI Springfield Division conducted the investigation with the assistance of the Massac
County Sheriff’s Office.
Assistant U.S. Attorneys Norman Smith and Monica Stump are prosecuting the case.
Former Certified Registered Nurse Anesthetist at Ann Arbor VA Hospital Sentenced to 3-Years’ Probation on Drug ChargesRead the Press Release
DETROIT - Former Certified Registered Nurse Anesthetist, Elizabeth Prophitt, age 39, of Saline, was sentenced today to 3-years’ probation for stealing controlled substances, including several opioids, from hospital dispensing machines, announced Acting United States Attorney Saima S. Mohsin.
Joining Mohsin in the announcement were Gavin McClaren, Acting Special Agent in Charge, Veteran’s Affairs, Office of Inspector General, Central Field Office and Special Agent in Charge Keith Martin, DEA, Detroit Division.
Prophitt, was sentenced by U.S District Court Judge Robert H. Cleland after pleading guilty to five counts of obtaining controlled substances by fraud, misrepresentation or deceit. She used her position as a surgical nurse to steal more than 2,000 vials of Schedule II and Schedule IV controlled substances, which included fentanyl, hydromorphone, morphine and midazolam. Prophitt would use protected patient information and falsify medical documents to obtain the controlled substances. Instead of using the medication on the purported patients, she diverted the drugs for her own personal use. At times, on days when she was unscheduled to work or after normal working hours, she would access the hospital and steal the vials directly from the hospital dispensing systems.
Acting United States Attorney Mohsin stated, “In order to protect the health and safety of our citizens, we take crimes like this seriously and will not hesitate to prosecute health care workers whose theft of drugs put patients in harm’s way.”
“We will not tolerate medical professionals stealing controlled substances intended for the care of our nation’s veterans,” said Acting Special Agent in Charge Gavin McClaren of the Department of Veterans Affairs Office of Inspector General’s Central Field Office.
This case was prosecuted by Assistant United States Attorney Brandy R. McMillion. McMillion serves as the District’s Opioid Fraud Abuse and Detection Prosecutor as well as the Deputy-Chief of the Health Care Fraud Unit. The Opioid Fraud Abuse and Detection Unit is a Department of Justice initiative designating twelve special prosecutors across the country to focus on prosecuting medical professionals that are contributing to the nation’s opioid crisis. The case was investigated by special agents of the Department of Veteran Affairs – Office of Inspector General and the Drug Enforcement Administration.
Former Broadcom Engineer Charged with Theft of Trade SecretsRead the Press Release
SAN JOSE – A federal grand jury has indicted Peter Kisang Kim, a former Broadcom engineer, with trade secret theft involving Broadcom trade secrets, announced Acting United States Attorney Stephanie M. Hinds and Federal Bureau of Investigation, Special Agent in Charge Craig D. Fair.
The indictment, filed November 4, 2021, and unsealed today, alleges that Kim, 50, a resident of Ben Lomond, worked as a principal design engineer at Broadcom and had been employed by the company for over twenty years. Broadcom is headquarted in San Jose and its products include networking chips used in equipment sold worldwide, including for enterprise and data center networking.
In the days before his July 17, 2020, departure from Broadcom, the indictment alleges that Kim stole Broadcom trade secrets from the company that were associated with a Broadcom family of chips often used in high-volume data centers. According to the indictment, the trade secrets were stored in non-public document repositories that were restricted to Broadcom employees within the same suborganization, or to Broadcom employees working on a project.
About ten days after his departure from Broadcom, Kim began working at the director level for Company-1, a China-based startup company focused on chip design and the market for networking chips, according to the indictment. The indictment alleges that Kim received a laptop for his work at Company-1 and, during the nine months following his departure from Broadcom and the start of his work at Company-1, that Kim possessed and repeatedly used Broadcom trade secrets on the newly-issued laptop and on other electronic devices. These trade secrets were associated with test plans, design verification environment files, and design specifications for the Broadcom family of chips.
The indictment charges Kim with eighteen counts trade secret theft, in violation of 18 U.S.C. § 1832(a). An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Kim faces a maximum statutory sentence of 10 years of imprisonment, a $250,000 fine, and three years of supervised release, for each count. The court also may order additional assessments, forfeiture, and restitution; however, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
This afternoon, Kim made his initial appearance in federal court in San Jose, where he was arraigned on the indictment and entered a plea of not guilty to the charges. Kim was released on a $500,000 bond and ordered to surrender his passport and other travel documents. Kim is next scheduled to appear at 1:30 pm on January 31, 2022, before the Honorable Edward J. Davila, U.S. District Judge.
The prosecution is being handled by Assistant U.S. Attorneys Eric Cheng and Kyle Waldinger of the Special Prosecutions Section of the United States Attorney’s Office for the Northern District of California, with the assistance of Kathy Tat and Margoth Turcios. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
Florida Businessman Sentenced to Three Years in Prison for Bribery SchemeRead the Press Release
A Florida man was sentenced today to three years in prison and ordered to pay a fine of $1,250,000 for engaging in a scheme to bribe former Tallahassee City Commissioner Scott Maddox and for making false statements to the FBI.
On Aug. 13, John Thomas Burnette, 44, of Tallahassee, was convicted of extortion, honest services fraud, use of an interstate facility to promote bribery, and making false statements after a 15-day jury trial in the Northern District of Florida.
At trial, the government presented evidence that Burnette engaged in a multi-year scheme with Maddox and his associate, Paige Carter-Smith, to commit extortion, fraud, and bribery. During the scheme, Burnette and Maddox extorted bribe payments from FBI undercover agents (UCs) who were posing as real estate developers and entrepreneurs. Burnette instructed the UCs that to obtain preferential treatment, they must pay bribes to Maddox through Governance Services. Burnette, Maddox, Carter-Smith, and the UCs agreed that the UCs would pay Governance Services $10,000 per month in exchange for Maddox agreeing to perform official acts meant to benefit the UCs’ apparent development company.
In 2017, FBI agents approached Burnette, identified themselves as FBI agents, and asked Burnette about his involvement in the bribe payments to Maddox. During the interview, Burnette repeatedly lied about his knowledge of the UCs’ payments to and involvement with Maddox.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division and Acting U.S. Attorney Jason R. Coody for the Northern District of Florida made the announcement.
The FBI and IRS–Criminal Investigation investigated the case.
Deputy Chief Peter M. Nothstein and Trial Attorney Rosaleen T. O’Gara of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys Stephen M. Kunz and Andrew J. Grogan of the Northern District of Florida prosecuted the case.
Five men indicted for illegal firearms possession, drugsRead the Press Release
SAVANNAH, GA: Five defendants face federal charges including illegal possession of firearms after separate indictments by a grand jury in the Southern District of Georgia, while recent actions in U.S. District Court include guilty pleas and criminal sentences.
The indicted cases are being investigated as part of Project Safe Neighborhoods in collaboration with federal, state and local law enforcement agencies, including the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the FBI, in an ongoing effort to reduce violent crime by targeting those who illegally possess firearms.
The latest announcement of firearms prosecutions by the U.S. Attorney’s Office comes as the newly created Columbia County District Attorney’s Office becomes the 12th state prosecutor’s office in the Southern District, and joins the Southern District’s Prosecutor to Prosecutor Program (P3) in an agreement to collaborate with federal prosecutors to determine the most appropriate venue for adjudication of crimes occurring in the judicial circuit.
“Removing guns from the hands of convicted felons is an essential part of fighting violent crime in our community,” said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. “We welcome the Columbia County District Attorney’s Office and its District Attorney, former U.S. Attorney Bobby L. Christine, in joining us to keep our communities safer.”
In the past three years, more than 700 defendants have been federally charged in the Southern District of Georgia for illegal firearms offenses – most often for possessing a firearm after conviction for a previous felony.
Defendants named in federal indictments from the November 2021 term of the U.S. District Court grand jury include:
- James Kenneth Merritt, 35, of Waynesboro, Ga., charged with Possession of a Firearm by a Convicted Felon; Possession of a Firearm by a Prohibited Person, related to a prior conviction for domestic violence; and Possession of Methamphetamine;
- Rodney Eric Strickland, 42, of Waynesboro, charged with Possession with Intent to Distribute Methamphetamine; Possession of a Firearm by a Convicted Felon; and Possession of a Firearm in Furtherance of a Drug Trafficking Crime;
- Vesenta Cornelius Watson, 46, of Augusta, charged with Possession of a Firearm by a Convicted Felon, and Possession of a Firearm with an Obliterated Serial Number;
- Barry McCormick, 26, of Savannah, charged with Possession of a Firearm by a Convicted Felon, and Possession of Marijuana; and,
- Joseph Deon Cuyler, 29, of Wrightsville, Ga., charged with Possession of a Firearm by a Convicted Felon.
Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.
Additional defendants recently have been adjudicated on federal charges that include illegal firearms possession:
- Michael Venetez McRae, 37, of Hephzibah, sentenced to 235 months in prison followed by five years of supervised release and fined $1,500 after being convicted at trial for Possession of a Firearm by a Convicted Felon, and Possession of Cocaine. Richmond County Sheriff’s deputies arrested McRae Jan. 5, 2019, while investigating a report of domestic violence. Adjudicated as an armed career criminal, McRae has multiple prior felony convictions including those for drug trafficking.
- Letrail Jerome West, 43, of Augusta, was sentenced to 51 months in prison followed by three years of supervised release and fined $2,500 after pleading guilty to Possession of a Firearm by a Convicted Felon, and Possession with Intent to Distribute Cocaine. During an investigation into drug sales from an Augusta motel room, Richmond County Sheriff’s investigators found West in possession of drugs and drug paraphernalia, cash, and an assault-style rifle with a high-capacity magazine.
- Michael Alvin Jackson, 44, of Savannah, was sentenced to 41 months in prison followed by three years of supervised release after pleading guilty to Possession of a Firearm by a Convicted Felon. Jackson was charged Aug. 11, 2019, when a pistol fell from his waistband as he ran away from Savannah Police officers.
- Zachary Brent Sadler, 27, of Augusta, was sentenced five years’ probation after pleading guilty to Possession of a Firearm by a Convicted Felon. Sadler admitted pawning a handgun in October 2019, and he later was charged by agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives when he attempted to repurchase the gun and was denied during a background check.
- Tona Nikia Wright, 47, of Augusta, was sentenced to 18 months in prison followed by three years of supervised release and fined $1,000 after pleading guilty to Possession of a Firearm by an Illegal Drug User, and Violation of Security Regulations and Orders regarding Department of Defense properties. Wright admitted that she was an unlawful user of cocaine and marijuana, and that on April 30, 2020, she entered a controlled access point at Fort Gordon Military Reservation without properly reporting the Taurus .380 caliber pistol in her possession.
- Kijordan Markel Ceaser, 22, of Thomson, Ga., was sentenced to 32 months in prison followed by three years of supervised release after pleading guilty to Illegal Receipt of a Firearm by a Person Under Indictment. Ceaser, who was on parole after a conviction on felony state charges, admitted illegally possessing a pistol when agents from the Georgia Bureau of Investigation and the Georgia Department of Community Supervision searched his residence Sept. 17, 2020.
- Jerry Allen Edenfield, 30, of Swainsboro, Ga., was sentenced to 32 months in prison followed by three years of supervised release after pleading guilty to Possession of a Firearm by a Convicted Felon.
- Clifford Lee Stone Jr., 29, of Wrens, Ga., was sentenced to 51 months in prison followed by three years of supervised release and fined $1,500 after pleading guilty to Possession of a Firearm by a Convicted Felon. Stone admitted illegally possessing an assault-style rifle on April 28, 2018, when he fled from a Jefferson County Sheriff’s deputy, first in a car and then on foot.
- Timetrius Dontrel Neal, 23, of Thomson, Ga., was sentenced to 60 months in prison followed by three years of supervised release and fined $1,500 after pleading guilty to Possession of a Firearm by a Prohibited Person, referring to a prior conviction on a misdemeanor crime of domestic violence. Neal, who was on felony probation on a state charge, was arrested Oct. 22, 2020, when a U.S. Drug Enforcement Administration task force officer and an officer from the Georgia Department of Community Supervision searched Neal’s residence and found a pistol with an extended magazine.
- Joe Lewis Hills, a/k/a “Polo,” a/k/a “David Owens,” 33, of Augusta, was sentenced to 57 months in prison followed by three years of supervised release after pleading guilty to Possession with Intent to Distribute Heroin and Marijuana, and Possession of a Firearm by a Convicted Felon. Hills was arrested with a co-defendant July 29, 2019, after Richmond County Sheriff’s investigators searched a hotel room rented to Hills and found drugs and an AR-15-style rifle with two loaded, high-capacity magazines. Hills served a previous federal prison sentence for armed robbery of a bank and was on supervised release at the time of his arrest.
- Newman Everette Tryon, 39, of Savannah, was sentenced to 43 months in prison followed by three years of supervised release after pleading guilty to Possession of a Firearm by a Convicted Felon. Tryon admitted illegally possessing a revolver when he was arrested Oct. 30, 2019, by Savannah Police.
- Robert Kenneth Williams, 32, of Augusta, was sentenced to 18 months in prison followed by three years of supervised release and fined $1,000 after pleading guilty to Possession of a Firearm by a Convicted Felon. Richmond County Sheriff’s deputies found Williams in possession of a pistol in April 2020 in a motel parking lot.
- Quieaton Freeman, 22, of Augusta, was sentenced to 46 months in prison, ordered to serve three years of supervised release and fined $2,000 after pleading guilty to Possession of Firearms by an Illegal Drug User. Freeman was one of eight defendants indicted in 2019 in Operation Snowfall, involving an investigation of a cocaine trafficking conspiracy in the Augusta area. All of the defendants pled guilty and are serving prison sentences.
- Khallid Marquese Wright, 24, of Augusta, was sentenced to 30 months in prison followed by three years of supervised release and fined $1,500 after pleading guilty to Possession of a Firearm by a Convicted Felon. Wright was found in possession of a firearm in February 2020 when he was stopped by Richmond County Sheriff’s deputies for questioning in an unrelated case.
- Jamerson Brandon Turner, 28, of Augusta, was sentenced to eight months of home confinement, three years of supervised release and fined $1,200 after pleading guilty to Possession of a Firearm by a Convicted Felon. Turner admitted illegally possessing a pistol when questioned May 15, 2020, by Richmond County Sheriff’s deputies.
- James Stallings III, 29, of Augusta, was sentenced to 60 months in prison and ordered to serve three years of supervised release after pleading guilty to Possession of a Firearm by a Convicted Felon. Richmond County Sheriff’s deputies arrested Stallings in June 2020 while investigating reports of a man firing shots outside an Augusta hotel when they found a pistol and identified Stallings from surveillance footage. Stallings has a prior state conviction for illegal firearms possession.
- Charles Kevin Matthews, 50, of Washington, Ga., awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. Matthews was on parole for a prior state conviction when investigators found a pistol in his possession during a search of his residence.
- Christopher Lewis Tucker, 21, of Thomson, Ga., awaits sentencing after pleading guilty to False Statement During Purchase of a Firearm. Tucker related to his illegal purchase of a pistol at a Thomson pawn shop in April 2021.
- Darryl Kinloch, 29, of Savannah, awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. Kinloch was charged in February 2020 when Savannah Police officers found two pistols in his car during a traffic stop.
- Sundiadaa Miller, 33, of Savannah, awaits sentencing after pleading guilty to Possession of Firearm by a Convicted Felon. Miller, who was on parole after a felony conviction for armed robbery, was arrested in January 2020 by Savannah Police officers after he was found in possession of a pistol.
Agencies investigating these cases include the ATF, the FBI, the U.S. Marshals Service, the Georgia Bureau of Investigation, the Savannah Police Department, the Richmond County Sheriff’s Office, the Savannah Police Department, the Burke County Sheriff’s Office, the Wrightsville Police Department, and the McDuffie County Sheriff’s Office.
The cases are being prosecuted for the United States by Southern District U.S. Attorney’s Office Assistant U.S. Attorneys, including Henry W. Syms Jr., Patricia G. Rhodes, Tara M. Lyons, Jennifer A. Stanley, Marcela C. Mateo, Steven H. Lee, Joshua S. Bearden, and Special Assistant U.S. Attorney Darron J. Hubbard.
Under federal law, it is illegal for an individual to possess a firearm if he or she falls into one of nine prohibited categories including being a felon; illegal alien; or unlawful user of a controlled substance. Further, it is unlawful to possess a firearm in furtherance of a drug trafficking offense or violent crime. It is also illegal to purchase – or even to attempt to purchase – firearms if the buyer is a prohibited person or illegally purchasing a firearm on behalf of others. Lying on ATF Form 4473, which is used to lawfully purchase a firearm, also is a federal offense.
For more information on the lawful purchasing of firearms, please see: https://www.atf.gov/qa-category/atf-form-4473.
Final defendant sentenced in conspiracy that shipped cocaine from California to SavannahRead the Press Release
SAVANNAH, GA: The last of four defendants has been sentenced to federal prison in a drug trafficking conspiracy that shipped cocaine and cash from coast to coast.
Kevin Chelsea, 39, of Las Vegas, was sentenced to 37 months in prison after pleading guilty to Conspiracy to Possess with Intent to Distribute and to Distribute Cocaine, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. U.S. District Judge William T. Moore also ordered Chelsea to serve three years of supervised release upon completion of his prison term.
There is no parole in the federal system.
“Kevin Chelsea and his co-conspirators were foolishly brazen in their efforts to use the U.S. Postal Service to ship drugs east to Savannah, and then mail cash westward to Los Angeles,” said Acting U.S. Attorney Estes. “Our vigilant law enforcement partners unpacked the plot and brought these drug-mailers to justice.”
As described in court documents and testimony, the U.S. Postal Inspection Service in November 2018 began investigating a series of shipments sent from Los Angeles to Savannah. The conspirators, who operated from about Augusta 2016 through December 2019, used multiple aliases to ship kilos of cocaine to various Savannah addresses controlled by others in the conspiracy, who in turn mailed large amounts of cash back to the conspirators in California.
The conspirators attempted to hide drugs and cash in boxes that also contained items including coloring books, pens, markers, and wrapping paper.
Chelsea’s aunt and west coast co-conspirator, Aderiauna Crystal Shorter, 52, of Long Beach, Calif., is serving a 114-month sentence after pleading guilty to Conspiracy to Possess with Intent to Distribute and to Distribute Cocaine, and Money Laundering Conspiracy. Their east coast connection, Carlton Anderson, 42, of Savannah, and Lisa Williams, 42, of Savannah, both pled guilty to Conspiracy to Possess with Intent to Distribute and to Distribute Cocaine. Anderson is serving 135 months in federal prison, while Williams is serving a 96-month sentence.
“The United States Postal Inspection Service works diligently with its local, state and federal partners, to investigate cases like these where the United States mail is used for the trafficking of illegal narcotics and its related proceeds,” said Joseph Cronin, Inspector in Charge of the Miami Division of the USPIS. “This case is a perfect example of this teamwork, which resulted in multiple seizures and arrests across the country.”
“Drug traffickers often take extreme measures in hiding the poison they peddle,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “This is a perfect illustration of the battle DEA and its law enforcement counterparts face when trying to prevent dangerous drugs from hitting the streets in our communities. As a result of DEA’s multi-level law enforcement collaboration and the subsequent prosecution by the U.S. Attorney’s Office, Mr. Chelsea and his co-conspirators will spend well-deserved time in prison.”
The case was investigated by the U.S. Postal Inspection Service, the Savannah Resident Office of the U.S. Drug Enforcement Administration, the Chatham-Savannah Counter Narcotics Team, and the Chatham County Sheriff’s Office, and prosecuted for the United States by Assistant U.S. Attorney Frank M. Pennington II.
Federal Jury Convicts Chicago Street Gang Leader of Participating in Racketeering Conspiracy Involving Multiple MurdersRead the Press Release
CHICAGO — A federal jury has convicted a leader of the Four Corner Hustlers street gang of participating in a criminal organization that committed murders and other acts of violence while brutally protecting a drug-dealing operation on the West and Southwest Sides of Chicago.
LABAR SPANN, 43, of Chicago, was found guilty Monday on all four counts against him, including racketeering conspiracy, two counts of murder in aid of racketeering, and extortion. The jury found that Spann committed four murders in a cold, calculated, and premeditated manner as part of the racketeering conspiracy, including the murders of Maximillion McDaniel on July 25, 2000, George King on April 8, 2003, Willie Woods on April 17, 2003, and Rudy Rangel on June 4, 2003.
The conviction is punishable by a mandatory minimum sentence of life in prison. U.S. District Judge Thomas M. Durkin set sentencing for March 9, 2022.
The verdict was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; Kristen De Tineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; and David Brown, Superintendent of the Chicago Police Department. Substantial assistance was provided by the U.S. Drug Enforcement Administration, Illinois Secretary of State Police Department, Illinois Department of Corrections, Illinois State Police, Cook County Sheriff’s Office, and Cook County State’s Attorney’s Office. The government is represented by Assistant U.S. Attorneys William Dunne, Timothy J. Storino, Kavitha J. Babu, and Megan DeMarco.
Authorities uncovered the racketeering activities of the Four Corner Hustlers through a lengthy investigation supported by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF identifies, disrupts, and dismantles 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. The Chicago FBI’s Safe Street Task Force, the High Intensity Drug Trafficking Area Task Force (HIDTA), and ATF’s Chicago Crime Gun Strike Force also supported the investigation.
The Four Corner Hustlers operated primarily in the Chicago neighborhoods of West Garfield Park and Humboldt Park on the West Side, and in the former LeClaire Courts public housing development on the Southwest Side. According to evidence presented at the nearly eight-week trial in federal court in Chicago, the gang dealt drugs and robbed rival dealers, while using violence and intimidation to prevent victims and witnesses from cooperating with law enforcement. The gang engaged in numerous acts of violence, including multiple murders and armed robberies.
Spann was indicted in 2017 along with eight other members of the Four Corner Hustlers and two additional defendants. The other defendants pleaded guilty, and several have been sentenced to federal prison terms.
El Departamento de Justicia anuncia una investigación de justicia medioambiental del Departamento de Salud Pública de Alabama y el Departamento de Salud del Condado de LowndesRead the Press Release
WASHINGTON – El Departamento de Justicia de los EE. UU. anunció hoy que ha iniciado una investigación de justicia medioambiental de los programas de enfermedades contagiosas y brotes y de eliminación de aguas residuales del Departamento de Salud Pública de Alabama y el Departamento de Salud del Condado de Lowndes.
La investigación, que será dirigida por la División de Derechos Civiles, examinará si el Departamento de Salud Pública de Alabama y el Departamento de Salud del Condado de Lowndes operan su programa in situ de eliminación de aguas residuales y su programa de enfermedades contagiosas y brotes de una forma que discrimina a residentes negros del Condado de Lowndes, en contra del Título VI de la ley de Derechos Civiles de 1964 (Título VI). Por otra parte, la investigación examinará si las políticas y prácticas de los departamentos de salud han tenido el efecto de reducir el acceso de residentes negros del Condado de Lowndes a sistemas de saneamiento adecuados y asignarles, de una forma desproporcionada y no justificada, un mayor riesgo de efectos adversos en su salud asociados con el tratamiento inadecuado de aguas residuales, tales como infecciones por anquilostomas.
«El saneamiento es una necesidad humana básica y nadie en Estados Unidos debe verse expuesto al riesgo de enfermedad y otros daños graves debido a un acceso inadecuado a la gestión segura y eficaz de aguas residuales», declaró Kristen Clarke, la Fiscal Federal Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «Los funcionarios de salud estatales y locales están obligados, en virtud de las leyes federales de derechos civiles, a proteger la salud y seguridad de todos sus residentes. Nosotros llevaremos a cabo una investigación justa y completa de estas preocupaciones de justicia medioambiental y su impacto en la salid, vida y seguridad de personas por todo el Condado de Lowndes, Alabama».
El Departamento no ha llegado a ninguna conclusión con respecto a las acusaciones en este caso. Esta investigación representa la primera investigación de justicia medioambiental del Departamento de Justicia al amparo del Título VI para uno de los beneficiarios de los fondos del Departamento. El Título VI prohíbe la discriminación por motivos de raza, color de piel y nacionalidad de origen por parte de beneficiarios de fondos federales. Hasta el momento, la División de Derechos Civiles ha ofrecido consejos y apoyo de forma rutinaria a otras agencias federales cuyos esfuerzos de aplicación del Título VI han implicado programas medioambientales. Las subvenciones del Departamento no suelen ser asignadas a programas que realizan trabajo medioambiental, lo que limita su competencia directa en lo que se refiere a la realización de estos tipos de investigaciones administrativas.
La Sección Federal de Coordinación y Cumplimiento de la División de Derechos Civiles está dirigiendo esta investigación, con el apoyo de la Fiscalía Federal para el Distrito Central de Alabama. Se le ruega a cualquier persona con información relevante que se comunique con la Sección Federal de Coordinación y Cumplimiento por correo electrónico a [email protected] o por teléfono al 833-739-2103.
Una de las prioridades principales de la División de Derechos Civiles es abordar los impactos discriminatorios en los ámbitos del medioambiente y la salud mediante la aplicación de las leyes nacionales de derechos civiles. Para más información sobre la División de Derechos Civiles, visite su sitio web en www.justice.gov/crt-espanol.
Eau Claire Man Sentenced to 15 Years for Transporting Child PornographyRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, Acting United States Attorney for the Western District of Wisconsin, announced that Jay A. Liestman, 49, Eau Claire, Wisconsin, was sentenced today by Chief U.S. District Judge James Peterson to 15 years in federal prison for transporting child pornography. This term of imprisonment will be followed by 20 years of supervised release. Liestman pleaded guilty to this charge on April 2, 2021.
In October 2019, Liestman sent an undercover officer a link to the file storage platform Mega. This link led to a file comprised of five folders containing more than 500 videos, most of which depicted child pornography.
Liestman’s sentence was increased because he had a prior conviction for possessing child pornography, and also had been convicted of child enticement. At the time of the offense in this case, he was on supervision for those offenses.
The charge against Liestman was the result of an investigation conducted by the Federal Bureau of Investigation, Eau Claire County Sheriff’s Office and Eau Claire Police Department. Assistant U.S. Attorneys Elizabeth Altman and Diane Schlipper prosecuted this case.
Drug User Sent to Prison for Unlawfully Possessing a GunRead the Press Release
A drug user who possessed marijuana and a firearm was sentenced November 8, 2021, to federal prison.
Anthony Jon Chan-Vance, age 43, from Marion, Iowa, received the prison term after a March 5, 2021 guilty plea to possession of a firearm by a drug user.
In a plea agreement, Chan-Vance admitted he possessed a gun while he was an unlawful user of marijuana. He also admitted that he provided marijuana to his friends. Evidence at various hearings in the case showed that law enforcement officers searched Chan-Vance’s home in 2019. During the search, officers found a .40 caliber handgun. Officers also found a distribution quantity of marijuana in the home. At sentencing, the court found that Chan-Vance possessed the gun in connection with his possession of marijuana that he intended to distribute.
Chan-Vance was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Chan-Vance was sentenced to 6 months’ imprisonment and fined $10,000. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Chan-Vance was released on the bond previously set and is to surrender to the Bureau of Prisons on a date yet to be set.
The case was prosecuted by Assistant United States Attorney Emily K. Nydle and investigated by the Marion Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-cr-86.
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Dominican National Pleads Guilty to Fentanyl TraffickingRead the Press Release
BOSTON – A Dominican national pleaded guilty today in federal court in Boston to trafficking fentanyl.
Eric Encarnacion Medina, 34, pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl and one count of distribution of and possession with intent to distribute 400 grams or more of fentanyl. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for March 2, 2022. Encarnacion Medina was indicted on April 7, 2021.
On Jan. 28, 2021, after coordinating with a source of supply outside the United States, Encarnacion Medina drove to Massachusetts and sold approximately one kilogram of fentanyl to a cooperating witness in a parking lot in Watertown.
The charges of conspiracy and distribution of and possession with intent to distribute 400 grams or more of fentanyl each provide for a mandatory minimum sentence of 10 years and up to life in prison, at least five years of supervised release and a fine of up to $10 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorney Stephen W. Hassink of Mendell’s Narcotics and Money Laundering Unit is prosecuting the case.
The operation was conducted by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state, and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.