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Tuesday 28 September 2021
EOIR Announces "Access EOIR" InitiativeRead the Press Release
FALLS CHURCH, VA – The Executive Office for Immigration Review (EOIR) today announced its “Access EOIR” initiative. Through this multi-faceted effort, EOIR aims to increase access to information and raise the level of representation for individuals appearing before the immigration courts. Following the Agency’s recent launch of the FOIA Public Access Link to simplify access to records, more than 100 meetings with stakeholders throughout the past eight months, and ongoing deployment of the EOIR Courts & Appeals System, the latest efforts include the new Counsel for Children Initiative (CCI) and the refresh of the Model Hearing Program (MHP).
“I am pleased to announce our launch of the ‘Access EOIR’ initiative,” said EOIR Director David Neal. “By providing noncitizens and their representatives with more resources, we can better ensure that respondents understand immigration court proceedings, that legal representation before EOIR will increase, and that the public will grow more confident in the due process our Immigration Judges provide.”
The CCI works to provide legal representation to certain unaccompanied children who are in immigration proceedings in the eight immigration courts in which Government-funded counsel for children will have the greatest impact: Atlanta, Houston, Los Angeles, New York, San Diego, San Francisco, Seattle, and Portland. Through this initiative, EOIR will also help to identify children who have been victims of human trafficking or abuse and refer them to appropriate support services.
EOIR is also launching updated trainings under MHP today. The MHP is an educational program for those who practice, or would like to explore practice, in EOIR’s immigration courts. With the goal of increasing advocacy in immigration court—in quantity and quality—EOIR is providing training and resources for multiple learning types through these efforts. Today, EOIR will hold the first of 11 scheduled MHP events, which will be followed by regularly scheduled MHP events. Each event includes presentations by Immigration Judges, staff attorneys, and court administrators via webinar. MHP events include a model master calendar hearing and a model individual hearing, preceded by a substantive law training to assist participants in understanding the law underlying the event’s case fact pattern.
For those unable to attend an MHP event, and those seeking to revisit the content from live trainings, the MHP is developing recorded materials for on-demand viewing, and has published a dynamic list of resources, available through the Immigration Court Online Resource (ICOR). ICOR also provides information about potential forms of relief through an interactive tool. The MHP is available to provide resources or set up an MHP event upon request from individuals and groups interested in learning more about the mechanics of immigration court proceedings.
“Access EOIR” provides respondents, representatives, and the general public with more direct access to agency and case information and the systems that contain it, further supporting transparency and due process for all those with business before the Agency. EOIR welcomes feedback from the public about ways to expand “Access EOIR.”
Duplin County Man Receives 116 Months for Circle K RobberyRead the Press Release
NEW BERN, N.C. – A Magnolia man was sentenced today to 116 months in prison for his role in a Wilmington convenience store robbery and car-jacking that resulted in a car crash at an elementary school.
According to court documents and other information presented in court, Cory Montan Dixon, 40, and a co-defendant donned masks in the early morning hours of August 18, 2019 and robbed the Circle K gas station on Gordon Road in Wilmington. Dixon’s co-defendant, Ronald Lee Croll (sentenced earlier this year), brandished a handgun, later determined to be a BB gun, pointed it at the head of the store clerk and demanded money. After the clerk handed over the cash drawer, the clerk was taken to a back room to retrieve the keys to the clerk’s car. The clerk was then ordered to lay on the floor and an attempt was made to zip tie the clerk’s wrists were together. The two men then took the clerk’s car and fled with the cash drawer and a number of cigarette packs. New Hanover County Sheriff’s Deputies spotted the vehicle on Market Street and gave pursuit. The car tried to elude officers by driving at a high rate of speed through a residential neighborhood, eventually going off the road before crashing into a basketball hoop at Blair Elementary School. Dixon and Croll then fled on foot before being apprehended. Officers recovered zip ties, cash, the BB gun, cigarettes, the cash drawer, and clothing worn during the robbery from the vehicle and along the flight path of the defendants.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Federal Bureau of Investigation and New Hanover County Sheriff’s Office investigated the case, the Wilmington Police Department assisted in the response, and Assistant U.S. Attorney Bryan Stephany prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The United States Attorney’s Office for the Eastern District of North Carolina implements the PSN Program through its Take Back North Carolina Initiative. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:19-CR-00092-FL.
Danbury Man Charged with Multiple Child Exploitation OffensesRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, and Matthew B. Millhollin, Special Agent in Charge, Homeland Security Investigations (HSI), Boston, today announced that WAYNE MARCELL, 35, of Danbury has been charged by federal criminal complaint with multiple child exploitation offenses.
Marcell appeared today via videoconference before U.S. Magistrate Judge Robert M. Spector. He has been detained since his arrest on related state charges on June 23, 2021.
As alleged in court documents, in April 2021, a 14-year-old female in Georgia met Robert Fyke, 33, of Lubbock, Texas, on an online video/chat platform. Fyke and the minor victim then used Kik and other social media platforms to communicate. In May 2021, Fyke drove from Texas to Georgia, picked up the minor victim and drove her back to Lubbock. The minor victim resided with Fyke for approximately four weeks.
It is further alleged that, while living with Fyke, the minor victim began communicating with Marcell on video game and social media platforms. In June 2021, Marcell paid an individual $2,000 to drive the minor victim from Texas to Illinois. Marcell then drove from Connecticut to Illinois, picked up the minor victim, and brought her to his home in Danbury. Marcell engaged in multiple illicit sexual acts with the minor victim, and took photos and videos of the sexual abuse.
The complaint charges Marcell with sexual exploitation of a child, which carries a mandatory minimum term of imprisonment of 15 years and a maximum term of imprisonment of 30 years; receipt of child pornography, which carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 20 years; and transportation of a minor with the intent to engage in illegal sexual activity, and conspiracy, which carries a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.
Fyke, who has been detained since his arrest on June 17, 2021, has been charged in the Northern District of Texas.
Acting U.S. Attorney Boyle stressed that a criminal complaint is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by Homeland Security Investigations, with the assistance of the U.S. Marshals Service and Danbury Police Department. The case is being prosecuted by Assistant U.S. Attorney Nancy V. Gifford with the cooperation of the Danbury State’s Attorney’s Office.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Detroit City Councilman Andre Spivey Pleads Guilty to Bribery ConspiracyRead the Press Release
DETROIT - Detroit City Councilman Andre Spivey, 47, of Detroit, pleaded guilty today to conspiring with a member of his staff to commit bribery by accepting over $35,000 in bribe payments in connection with the City Council’s oversight of towing in Detroit, Acting United States Attorney Saima S. Mohsin announced today.
According to court records, while serving as an elected member of the Detroit City Council, Andre Spivey accepted $35,900 from an undercover federal law enforcement officer and a confidential source of information for the FBI. On eight separate occasions between February 2018 and February 2020, Spivey, or a member of his staff identified as “Public Official A,” accepted bribe payments amounting to thousands of dollars from the undercover agent or the confidential source, all in connection with towing issues pending before the City Council. For example, on October 26, 2018, Spivey met with the undercover agent and the confidential source at the Side Street Diner in the City of Grosse Pointe, Michigan. During that meeting, Spivey accepted $1,000 in cash from the undercover agent and another $1,000 in cash from the confidential source. The payments were made to Spivey seeking Spivey’s assistance with a proposed towing ordinance pending before the City Council. As another example of the corrupt payments, on February 21, 2020, the confidential source gave $8,000 in cash to Public Official A, and the undercover agent gave Public Official A $4,000 in cash. Public Official A took the money knowing that it was given for the benefit of Spivey and in exchange for Spivey’s assistance with towing issues pending before the City Council.
Spivey has served on the Detroit City Council since 2009.
The bribery conspiracy count to which Spivey pleaded guilty carries a maximum sentence of 5 years of imprisonment. Under the United States Sentencing Guidelines, it is likely that Spivey will face a guideline sentencing range of between 37 and 46 months of imprisonment, and a maximum fine of up to $250,000. A sentencing date has been set for January 19, 2022.
It is expected that Spivey will resign from office on the City Council as a result of his guilty plea.
This is the first case charged as part of the government’s investigation known as “Operation Northern Hook.” Northern Hook is an investigation of corruption within the government and the Police Department of the City of Detroit relating to the towing industry and other matters.
Mohsin was joined in the announcement by Timothy Waters, Special Agent In Charge of the Michigan Field Office of the Federal Bureau of Investigation.
Acting United States Attorney Mohsin said: “The people of Detroit deserve a city government free of corruption and pay-to-play politics. The conviction of Councilman Spivey for accepting $35,000 in bribes demonstrates that the federal government remains vigilant and determined in rooting out corruption within the City of Detroit.”
“Unfortunately, we continue to see corruption by Detroit public officials that erodes the public's trust in government and undermines the City's effort to move Detroit forward,” said Timothy Waters, Special Agent in Charge of the FBI’s Detroit Field Office. “Today’s guilty plea is a result of the FBI’s commitment to bringing corrupt officials to justice and should serve as warning to others who think they are beyond the reach of the law.”
This case is part of the government’s wide-ranging corruption investigation known as Operation Northern Hook. The investigation of this case was conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorneys David A. Gardey and Frances Carlson.
Concrete Contractor Pleads Guilty to Rigging Bids for Public Contracts in MinnesotaRead the Press Release
A Minnesota concrete contractor pleaded guilty to rigging bids on public concrete repair and construction contracts in the state of Minnesota.
According to court documents filed in the U.S. District Court in Minneapolis, Clarence Olson and his co-conspirators conspired to rig bids on concrete repair and construction contracts submitted to at least four municipalities in the state of Minnesota, which included local governments and school districts in the Minneapolis-St. Paul area. Olson participated in the long-running conspiracy from at least as early as September 2012 and continuing through at least as late as July 2017.
“This resolution demonstrates the Antitrust Division’s commitment to ensuring the integrity of government procurement at all levels of government,” said Acting Assistant Attorney General Richard A. Powers of the Justice Department’s Antitrust Division. “Bid-rigging schemes that target local government contracts harm taxpayers, and people who take part in these conspiracies will be held accountable for their actions.”
“The defendant in this case rigged bids on contracts that were intended to benefit local governments and school districts in Minnesota,” said Assistant Director Calvin Shivers of the FBI’s Criminal Investigative Division. “The FBI and our law enforcement partners are committed to investigating those who attempt to exploit government programs and the American taxpayer.”
Olson pleaded guilty to a violation of Section 1 of the Sherman Act. He faces a maximum penalty of 10 years in prison and a $1 million criminal fine. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime if either amount is greater than the statutory maximum fine. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Antitrust Division’s Chicago Office is prosecuting the case, which was investigated with the assistance of the FBI’s Minneapolis Field Office.
In November 2019, the Department of Justice created the PCSF, a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant and program funding at all levels of government – federal, state and local. For more information, visit https://www.justice.gov/procurement-collusion-strike-force.
Anyone with information in connection with this investigation should contact the Antitrust Division’s Complaint Center at 888-647-3258, or visit http://www.justice.gov/atr/report-violations.
Colebrook Man Sentenced to 40 Months for Fentanyl TraffickingRead the Press Release
CONCORD - Timothy Nugent, 34, of Colebrook, was sentenced on Monday to 40 months in federal prison for possession of fentanyl with intent to distribute, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, on May 17, 2019, a Manchester police officer encountered Nugent standing at the open door of a car parked blocking a driveway. Nugent said it was not his vehicle but he had permission to be in it from a friend in Colebrook. As Nugent produced the registration, the officer observed several baggies on the front passenger seat. Nugent handed the officer one of the baggies and consented to a search of his wallet. After the officer located a Suboxone tab in Nugent’s wallet and Nugent stated he did not have a prescription for Suboxone, the officer arrested Nugent. After obtaining a search warrant for the vehicle, officers discovered a box containing over 34 grams of fentanyl, a scale, and bank cards, including one in Nugent’s name.
“Fentanyl continues to cause far too many deaths in New Hampshire,” said Acting U.S. Attorney Farley. “To protect our community from the threat posed by this deadly substance, we work closely with our law enforcement partners to identify and prosecute the drug traffickers who are distributing fentanyl and other opioids in the Granite State.”
“Fentanyl is causing deaths in record numbers and DEA’s top priority is to aggressively pursue anyone who distributes this poison in order to profit and destroy lives,” said DEA Special Agent in Charge Brian D. Boyle. “Illegal drug distribution ravages the very foundations of our families and communities so every time we take fentanyl off the streets, lives are saved. This investigation demonstrates the strength of collaborative local, state and federal law enforcement efforts in New Hampshire and our strong partnership with the U.S. Attorney’s Office.”
This matter was investigated by the Drug Enforcement Administration, the Manchester Police Department, the New Hampshire State Police, and the Colebrook Police Department. The case was prosecuted by Assistant U.S. Attorneys John S. Davis and Aaron Gingrande.
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Chicago Woman Charged with Filing False Income Tax Returns to Fraudulently Obtain Refunds and Stimulus PaymentsRead the Press Release
CHICAGO —A Chicago woman has been indicted on federal criminal charges for allegedly fraudulently obtaining the personal identifying information of deceased individuals and using it to file for tax refunds and stimulus payments from the U.S. Treasury.
An indictment returned Monday in federal court in Chicago charges KATRINA PIERCE, 50, with ten counts of wire fraud, six counts of aggravated identity theft, three counts of making false statements to the U.S. Small Business Administration, and one count of possessing identification documents to defraud the United States. Arraignment is set for Oct. 5, 2021, at 9:30 a.m. before U.S. District Judge Virginia M. Kendall.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Justin Campbell, Acting Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago. The government is represented by Assistant U.S. Attorney Brian Havey.
According to the indictment, Pierce fraudulently requested and obtained death certificates for individuals from Illinois and several other states. Pierce then used personal identifying information of deceased individuals to file false income tax returns with the IRS so that she could fraudulently obtain tax refunds and stimulus payments under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, the indictment states. Pierce allegedly claimed a deceased boy as a dependent on her own tax return and attached to other false returns bogus birth certificates that falsely claimed deceased children as dependents.
The indictment also accuses Pierce of fraudulently submitting applications to the SBA seeking loans under the COVID-19 Economic Injury Disaster Loan (EIDL) program, a financial assistance program for small businesses suffering from a temporary loss of revenue due to the Coronavirus pandemic. Pierce submitted false applications under her own name and under the names of other persons, including farmers and small business owners in Illinois and other states, whose personal identity information was unlawfully taken and used without their knowledge, the charges allege. The indictment describes applications submitted by Pierce in which she fraudulently claimed to be the owner of a manufacturing business with 106 employees and a retail electronics business with 14 employees, with both businesses purportedly located at the same address – an apartment where Pierce was then residing.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Center City Doctor Pleads Guilty to Illegally Distributing Controlled Substances and Filing False Tax Returns and Agrees to Pay $4 Million to Resolve Civil and Related AllegationsRead the Press Release
PHILADELPHIA, PA – Acting United States Attorney Jennifer Arbittier Williams announced that Stephen Padnes, M.D., 79, of Glenside, Pennsylvania, a physician formerly licensed in Pennsylvania, entered a guilty plea before United States District Court Judge Gene E.K. Pratter on criminal charges of illegally distributing controlled substances and filing false tax returns.
Williams also announced that Padnes has agreed to pay $2 million to settle a civil lawsuit brought by the United States seeking penalties and damages against him. The settlement resolves allegations that Padnes prescribed opioids without a legitimate medical purpose in violation of the Controlled Substances Act and False Claims Act (the “Civil Action”). The resolution of the Civil Action also excludes Padnes from participating in the Medicare program for at least ten years.
Padnes has also entered into a settlement agreement with the United States whereby he has agreed to the civil forfeiture of over $1.8 million in cash seized from his home as proceeds of unlawful prescribing (the “Forfeiture Action”).
The Drug Enforcement Agency has also rescinded Padnes’s licenses to prescribe controlled substances.
Criminal Guilty Plea
Earlier today, Padnes pled guilty to the criminal indictment, which charged him with illegally prescribing Schedule II controlled substances, oxycodone and methadone, on seven occasions between December 21, 2015 and June 29, 2016, without any medical necessity and outside the usual course of medical practice. It also charged that Padnes underreported the income earned by his medical practice, the Psychosomatic Medicine and Pain Rehabilitation Center, Inc., to the Internal Revenue Service by more than $700,000 for calendar years 2012, 2013, and 2014. Padnes faces a maximum possible sentence of 149 years’ imprisonment and has agreed to pay $301,219 in restitution to the IRS.
$2 Million Settlement of the Civil Action and Exclusion from Medicare
Padnes has agreed to pay an additional $2 million to settle the government’s allegations against him in the Civil Action brought pursuant to the Controlled Substances Act and the False Claims Act. Padnes has also agreed to be excluded from participating as a provider in the Medicare program for at least ten (10) years.
The Civil Action alleges that Padnes violated the Controlled Substances Act by issuing prescriptions on hundreds of occasions for Schedule II opioids in 2014, 2015, and 2016 without a legitimate medical purpose. The government alleges numerous instances where Padnes accepted cash payments, hundreds of dollars each, in exchange for prescriptions for high doses of opioids without maintaining medical records in the normal course of medical practice, physical exams, reevaluations, and/or monitoring of the effectiveness of the opioids he prescribed.
The government alleges numerous examples where Padnes regularly prescribed the equivalent of over 1,000 milligrams of morphine per day to certain purported patients in exchange for cash. In one example, the government alleges that Padnes issued prescriptions for so many opioids to a patient that the patient would have needed to consume nearly 70 pills, the equivalent of 4,000 milligrams of morphine, every day. For reference, the Centers for Disease Control and Prevention’s guidance on opioid prescribing for chronic pain patients urges caution when patients are prescribed more than the equivalent of 50 milligrams of morphine per day and should usually not be prescribed greater than the equivalent of 90 milligrams of morphine every day. https://www.cdc.gov/mmwr/volumes/65/rr/rr6501e1.htm?CDC_AA_refVal=https%3A%2F%2Fwww.cdc.gov%2Fmmwr%2Fvolumes%2F65%2Frr%2Frr6501e1er.htm#recommendations
The government also alleges that Padnes violated the False Claims Act because Medicare and Medicaid paid to fill thousands of prescriptions that Padnes issued without a legitimate medical purpose, causing a loss to these programs exceeding $1 million.
The Controlled Substances Act provides for penalties for each prescription issued without a legitimate medical purpose up to $25,000 for violations on or before November 2, 2015 and up to $64,820 per violation after November 2, 2015. The False Claims Act allows for damages treble the government’s loss and civil penalties between $5,500 and $11,000 for each false claim presented on or before November 2, 2015 and between $11,181 and $22,363 for each false claim presented after November 2, 2015.
Civil Forfeiture of $1,864,545
On August 12, 2019, the United States filed a civil forfeiture complaint seeking the forfeiture of $1,864,545 cash seized from the defendant’s home during the execution of a search warrant in 2016. The government alleges that cash was the proceeds from Padnes’s unlawful medical practice from at least 2010 to 2016. The government alleges that, during that time, the vast majority of the defendant’s “patients” paid up to approximately $500 in cash for prescriptions for controlled substances, including Schedule II opioids such as oxycodone and methadone, that he wrote outside the usual course of medical practice and without a legitimate medical purpose. The cash was discovered in suitcases and a dresser located in a bedroom in the defendant’s home.
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“Our community continues to cope with the tragic and deadly consequences of the opioid epidemic,” said Acting United States Attorney Williams. “A small number of corrupt doctors put greed before their oath, abused their positions of trust, and fanned the flames of the epidemic by pumping untold millions of illicit opioid pills onto our streets without a legitimate medical purpose simply to enrich themselves. As this case demonstrates, we will bring the full force of the federal government to find, investigate, and prosecute such wrongdoing criminally and civilly,” said Williams. “To any prescriber who may be tempted to sell opioid prescriptions without a legitimate medical purpose, be warned: it is not worth it. We will find you, we will prosecute you, and we will make you pay,” said Williams.
Williams continued, “This parallel criminal and civil prosecution represents exceptional professionalism and teamwork of the Criminal, Civil, and Forfeiture units of this Office and our dedicated law enforcement partners over the course of this complex case. I wish to specifically commend the FBI, DEA, the Department of Health and Human Services, and the Internal Revenue Service for their investigative work,” said Williams.
“Dr. Padnes routinely prescribed dangerous amounts of opioids without any medical necessity in exchange for cash, making him no different than a drug dealer on the street,” said Thomas Hodnett, Acting Special Agent in Charge of the DEA’s Philadelphia Field Division. “I want to thank our partners at HHS, IRS, and the FBI; working together we were able to pursue criminal charges and civil violations against rogue doctors like Padnes that have contributed to the opioid epidemic.”
“As a consequence, for prescribing opioids without medical necessity, Mr. Padnes will be excluded from participating in the Medicare program for at least ten years,” said Maureen R. Dixon, Special Agent in Charge for the U.S. Department of Health and Human Services. “Working closely with our law enforcement partners and the criminal and civil divisions of the U.S. Attorney’s Office, HHS-OIG will continue to protect the integrity of government health care programs.”
“Today’s guilty plea sends a message to all professionals that no one is above their responsibility to pay taxes,” said Yury Kruty, Acting Special Agent in Charge, Philadelphia Field Office. “All income, legally or illegally earned, is taxable. IRS-Criminal Investigation will always work with our law enforcement partners and provide our financial expertise to stop individuals from illegally distributing controlled substances to the American public.”
“Stephen Padnes admits abusing his prescribing privileges for profit,” said Bradley S. Benavides, Acting Special Agent in Charge of the FBI’s Philadelphia Division. “Doctors willing to illegally distribute and prescribe opioids to enrich themselves only deepen the drug epidemic that continues to ravage our area. That’s why the FBI is so determined to shut down unscrupulous medical professionals engaged in drug diversion. I encourage the public to report any information about prescription abuse to us or our law enforcement partners.”
The investigation was conducted by the Philadelphia Field Division of the Drug Enforcement Administration, the U.S. Department of Health and Human Services, Office of Inspector General, Internal Revenue Service Criminal Investigation, and the Federal Bureau of Investigation Health Care Fraud Task Force, which includes agents from the FBI, Pennsylvania Attorney General’s Office, and HHS-OIG.
For the United States Attorney’s Office, the criminal case is being prosecuted by Assistant United States Attorney Jerome Maiatico, the civil Controlled Substances Act and False Claims Act matter was prosecuted by Assistant United States Attorney Charlene Keller Fullmer and former Assistant United States Attorney John T. Crutchlow, and the civil forfeiture matter is being prosecuted by Assistant United States Attorney Maria M. Carrillo.
Except for those facts admitted to in the guilty plea, the claims resolved by the civil settlements are allegations only, and there has been no determination of liability.
Cedar Rapids Man Pleads Guilty to Escape from Custody and Contempt of CourtRead the Press Release
A man who escaped from the Waterloo Residential Correctional Facility and later failed to appear in federal court pursuant to a subpoena pled guilty today in federal court in Cedar Rapids, Iowa.
Eugene Davis, age 43, from Cedar Rapids, Iowa, was convicted of an April 23, 2021 escape from federal custody at the Residential Correctional Center in Waterloo and for contempt of court by failing to appear in federal court on April 26, 2021, pursuant to a trial subpoena.
In a plea agreement, Davis admitted that he was in the Waterloo Residential Correctional Center in Waterloo, Iowa, on April 23, 2021, as a condition of his term of supervised release in a 2009 federal firearms case. On April 23, 2021, Davis left the facility to go to work and never returned. Davis was later arrested in Las Vegas, Nevada. Prior to Davis’s escape, he was served with a subpoena that required him to appear in federal court in Cedar Rapids on April 26, 2021. Davis never appeared in court as required.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Davis remains in custody of the United States Marshal pending sentencing. For the escape offense, Davis faces a possible maximum sentence of five years’ imprisonment, a $250,000 fine, and three years of supervised release following any imprisonment. For the contempt offense, Davis faces any term of imprisonment the Court finds appropriate in its discretion, a fine of not more than $250,000, and a term of supervised release of up to five years.
The case is being prosecuted by Assistant United States Attorney Patrick J. Reinert and was investigated by the United States Marshal’s Service. Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file numbers are CR-21-0041 (contempt of court) & CR-21-2042 (escape).
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Career Offender Sentenced to More than 11 Years in Prison for Multiple RobberiesRead the Press Release
BOSTON – A Lancaster man was sentenced yesterday in federal court in Worcester for committing three bank robberies.
Matthew Alden, 27, was sentenced by U.S. District Court Judge Timothy Hillman to 136 months in prison, three years of supervised release and ordered to pay restitution of $14,914. Due to prior convictions, including a 2018 robbery conviction, Alden was sentenced as a career offender. In December 2020, Alden pleaded guilty to three counts of bank robbery.
On Dec. 12, 2019, Alden robbed the Cornerstone Bank on South Main Street in Leicester, stealing $9,906 and fleeing the scene. On Dec. 27, 2019, Alden robbed the Avidia Savings Bank on Maple Street in Marlborough, stealing $3,980 before fleeing the scene. Alden later robbed the Avidia Bank on Maple Avenue in Shrewsbury on Feb. 21, 2020, stealing $1,028. A few hours later, a gas station surveillance camera caught Alden purchasing items inside of the gas station. In addition, video surveillance from a nearby location depicted Alden near the vicinity of the bank the day before, looking at video cameras.
Alden was arrested on Feb. 26, 2020. A search of Alden’s phone revealed photos of Alden wearing clothing that was worn during the robberies as well as multiple photos of quantities of cash. For example, on Dec. 12, 2020, the same day as the Leicester bank robbery, Alden took a photo inside of his vehicle holding a large sum of cash. Metadata showed that the photo was taken approximately 14 minutes after the robbery occurred. In addition, the defendant wrote himself notes on his phone, including the address of the Shrewsbury bank and reminders to throw away clothing at the Salvation Army. Evidence confirmed that Alden went to the Salvation Army in January 2020 and a consignment store after the Shrewsbury robbery. At the time of his arrest, Alden was holding a notepad, with a list of 12 banks in Massachusetts and New Hampshire that he had not yet robbed, along with notes such as, “TD open until 7 on Friday check to see rear.” A search of Alden’s house recovered, among other items, several articles of clothing identical to those worn during the robberies.
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. Assistance was provided by the Massachusetts State Police and the Westford, Athol, Lunenberg, Leicester, Marlborough, Framingham, Foxborough, Shrewsbury, Millbury, Lancaster and Nashua (N.H.) Police Departments. Assistant U.S. Attorney Lucy Sun of Mendell’s Worcester Branch Office prosecuted the case.
California Man Pleads Guilty for Role in Eastern Oregon Methamphetamine Trafficking ConspiracyRead the Press Release
PORTLAND, Ore.—A Vacaville, California man pleaded guilty today for his role in a conspiracy to traffic large quantities of methamphetamine from California for distribution in Northeast Oregon and Southeast Washington.
Noel Lomas Murillo, 33, pleaded guilty to conspiring to possess with intent to distribute and distribute methamphetamine.
According to court documents, in November 2017, the Blue Mountain Enforcement Narcotics Team (BENT), Oregon State Police (OSP), and the FBI began investigating a drug trafficking organization led by Murillo’s brother, Abel Lomas Murillo, 28, of Weston, Oregon.
The investigation revealed that as early as July 2017, Noel Murillo transported drugs from Vacaville to Klamath Falls, Oregon where a courier would deliver them to his brother. Abel Murillo also made multiple trips to Medford, Oregon to pick up drugs and transport them to Morrow and Umatilla Counties for distribution.
In January 2018, an OSP trooper stopped one of the Murillo brothers’ couriers, Luis Alberto Navarro, 33, of Boardman, Oregon, in a vehicle traveling near Klamath Falls en route to Umatilla County. A search of the vehicle revealed 11 concealed packages containing more than eight kilograms of methamphetamine.
In early May 2018, as the investigation continued, Abel Murillo enlisted another courier, Noel Ponce Villegas, 28, also of Boardman, to drive methamphetamine from Medford to Boardman. Investigators surveilled Abel Murillo as he traveled from Umatilla County to a storage locker in Medford and loaded a trailer pulled by his truck. Abel Murillo paid Villegas to drive his truck and trailer while he followed him to minimize his own risk. In the early morning hours of May 6, 2018, investigators from BENT, OSP and FBI stopped Abel Murillo and Villegas as they drove near mile marker 102 on Interstate 84.
Investigators seized 42 packages of methamphetamine, 36 of which were concealed in the false bottom of a propane tank. The packages contained approximately 17.6 kilograms of methamphetamine. Later the same day, investigators executed a search warrant at Abel Murillo’s residence, seizing 29 firearms and body armor. Pursuant to a separate search warrant, another 10 pounds of methamphetamine and five firearms were found in a Medford storage locker Abel Murillo had visited earlier in the weekend.
On December 19, 2019, a federal grand jury in Portland returned a two-count superseding indictment charging Noel Murillo with conspiring to possess with intent to distribute and distribute methamphetamine and possessing with intent to distribute methamphetamine.
Noel Murillo will be sentenced on January 5, 2022 before U.S. District Court Judge Michael H. Simon.
On May 7, 2018, Navarro pleaded guilty to possessing with intent to distribute methamphetamine. He will be sentenced on February 1, 2022.
On April 15, 2019, Abel Murillo pleaded guilty to conspiring to possess with intent to distribute methamphetamine. On September 10, 2019, he was sentenced to 235 months in federal prison and five years’ supervised release.
On April 18, 2019, Villegas pleaded guilty to possessing with intent to distribute methamphetamine. On December 16, 2020, he was sentenced to time served and three years’ supervised release.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by BENT, OSP, and the FBI. It is being prosecuted by the U.S. Attorney’s Office for the District of Oregon.
Cabarrus County Man Sentenced for Distribution and Production of Child PornographyRead the Press Release
GREENSBORO – A North Carolina man was sentenced on September 28, 2021, to 600 months in prison, followed by a lifetime term of supervised release, for production and distribution of child pornography.
Adam Chase Wallace, 25, was indicted by superseding indictment in February, 2021, on four counts of production of child pornography, one count of distribution of child pornography, and one count of possession of child pornography. He later pleaded guilty to one count of both production and distribution on May 20, 2021.
According to court documents, Homeland Security Investigations (HSI) Newark notified Special Agents with HSI Charlotte that they received information from an individual regarding a contact he knew as “Adam” who was filming himself abusing two minors and producing and sharing illegal content. An undercover agent continued communicating with the individual and gathered evidence that Wallace was producing and distributing child pornography. Using social media account information, verified through commercial and law enforcement databases, Special Agents identified Wallace as the likely perpetrator and executed a search warrant for his electronic devices. A computer forensic expert located more than one thousand images of child pornography on Wallace’s devices, including images he produced with the two minors. Wallace admitted to producing images and videos of his abuse to law enforcement shortly after his arrest.
"Finding and arresting perpetrators, like Wallace, that prey upon innocent children is a crucial part of our mission to protect the homeland," said Special Agent in Charge Ronnie Martinez, who oversees Homeland Security Investigations (HSI) operations in North Carolina and South Carolina. “HSI and its law enforcement partners will continue to target these predators and bring them to justice."
This case was investigated by Homeland Security Investigations and was prosecuted by Assistant U.S. Attorney Kennedy Gates and Assistant U.S. Attorney Nicole R. DuPre.
The case is part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat online child sexual exploitation and abuse. The initiative is led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and focuses on coordinating federal, state, and local resources to better identify and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Burlington County Man Sentenced to 10 Years in Prison for Conspiring to Distribute Large Amounts of Heroin and Cocaine in CamdenRead the Press Release
CAMDEN, N.J. – A Burlington County, New Jersey, man was sentenced today to 120 months in prison for conspiring to distribute heroin and cocaine in Camden, Acting U.S. Attorney Rachael A. Honig announced.
Dwight Williams, 20, of Mount Holly, New Jersey, previously pleaded guilty before U.S. District Judge Renee Marie Bumb in Camden federal court to a superseding information charging him with conspiracy to distribute 100 grams or more of a mixture or substance containing heroin, as well as a mixture and substance containing cocaine. During his sentencing hearing, Williams agreed that the amount of heroin jointly attributable to him, as a member of the conspiracy, was three to 10 kilograms.
According to documents filed in this case and statements made in court:
A total of 19 defendants were arrested in late 2018 on drug-trafficking charges based on the FBI’s investigation of a drug-trafficking organization that ran the open-air narcotics trade on the 400-500 block of Pine Street in Camden for several months in 2018. The investigation used various investigative tactics including video surveillance, confidential informants, consensual recordings, controlled drug purchases, and several court-authorized wiretaps to uncover the inner workings of the drug-trafficking organization. The organization included street-level sellers who worked various shifts on the “drug set,” selling drugs to customers and collecting drug proceeds. The street-level sellers were supervised by different layers of managers who, in turn, supplied the drug set with pre-packaged heroin, some of which was mixed with fentanyl, as well as cocaine and crack cocaine. The FBI and other law enforcement officers recovered multiple firearms from different locations connected to the drug organization at the time of the 2018 arrests.
Sixteen of these defendants already have pleaded guilty to drug conspiracy charges before Judge Bumb in the United States District Court. Three defendants are awaiting trial, and the charges and allegations against those three defendants are merely accusations, and they are presumed innocent unless and until proven guilty.
In addition to the prison term, Judge Bumb sentenced Williams to five years of supervised release.
Acting U.S. Attorney Rachael A. Honig credited special agents of the FBI’s South Jersey Violent Offender and Gang Task Force, South Jersey Resident Agency, under the direction of Special Agent in Charge Bradley S. Benavides; the Camden County Police Department, under the direction of Chief Gabriel Rodriguez; the Camden County Prosecutor’s Office, under the direction of Acting Prosecutor Jill S. Mayer; the Camden County Sherriff’s Department, under the direction of Sheriff Gilbert L. Wilson; the Cherry Hill Police Department, under the direction of Chief William P. Monaghan; and the N.J. State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to today’s sentencing. She also thanked the Drug Enforcement Administration, the U.S. Marshals Service, and the Department of Homeland Security for their assistance.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The government is represented by Assistant U.S. Attorneys Sara Aliabadi and Patrick C. Askin of the U. S. Attorney’s Office Criminal Division in Camden.
Bronx Man Admits Identity Fraud and Laundering over $6.5 Million in Illegal Drug ProceedsRead the Press Release
NEWARK, N.J. – A Bronx, New York, man today admitted his role in a large international money laundering conspiracy and using a stolen identity in furtherance of the scheme, Acting U.S. Attorney Rachael Honig announced.
Orlando Delgado, 31, pleaded guilty by videoconference before U.S. District Judge Katharine S. Hayden to an information charging him with one count of conspiracy to commit money laundering and one count of identity fraud.
According to documents filed in this case and statements made in court:
From August 2018 through December 2019, Delgado laundered over $6.5 million in cash drug proceeds on behalf of a large-scale money laundering organization with close ties to drug trafficking organizations in the Dominican Republic and elsewhere. Delgado accepted large amounts of cash drug proceeds and laundered it by purchasing over 390 cashier’s checks at local bank branches in New Jersey, New York, and Florida. The checks were made payable to individuals and companies specified by the leaders of the money laundering organization. By converting the drug proceeds to cashier’s checks, Delgado tried to hide the source of the illegal cash and avoid scrutiny by law enforcement and banks.
In August 2019, Delgado obtained a fraudulent identification card in someone else’s name and used it to open multiple bank accounts, which he then used to purchase over $1.5 million in cashier’s checks with cash drug proceeds.
The charge of money laundering conspiracy carries a maximum penalty of 10 years in prison and a fine of $250,000 or twice the amount involved in the offense, whichever is greater. The charge of identify fraud carries a maximum prison sentence of five years and a $250,000 fine. Sentencing is scheduled for Feb. 8, 2022.
Acting U.S. Attorney Honig credited special agents and task force officers of the U.S. Drug Enforcement Administration, New Jersey Division, under the direction of Special Agent in Charge Susan A. Gibson, and the New York Division, under the direction of Special Agent in Charge Raymond Donovan; special agents and task force officers of IRS - Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez; the Morristown, New Jersey, police department, under the direction of Acting Police Chief Darnell Richardson; and the Direccion Nacional de Control de Drogas (the Dominican Republic National Drug Directorate, “DNCD”) with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jonathan M. Peck of the Criminal Division in Newark.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Berkeley County woman admits to drug chargesRead the Press Release
MARTINSBURG, WEST VIRGINIA – Felicia Johnson, of Martinsburg, West Virginia, has admitted to a drug charge, Acting United States Attorney Randolph J. Bernard announced.
Johnson, 34, pleaded guilty today to one count of “Possession with Intent to Distribute Cocaine Hydrochloride.” Johnson admitted to having cocaine hydrochloride in February 2021 in Berkley County.
Johnson faces up to 20 years of incarceration and a fine of up to $1,000,000 for each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The FBI; U.S. Marshals Service, Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms & Explosives; The Drug Enforcement Administration; the West Virginia Air National Guard, the Eastern Panhandle Drug Task Force, a HIDTA-funded initiative (agencies included are the West Virginia State Police, Berkeley County Sheriff’s Department, Jefferson County Sherriff’s Department, Ranson Police Department, Charles Town Police Department, and Martinsburg City Police Department); West Virginia State Police; Customs and Border Protection; the Hagerstown Police Department; the National Resources Police Department; FBI-New York Safe Streets Task Force; the New York Police Department; the New Jersey State Police; the Washington County (Maryland) Drug Task Force; the Maryland State Police; the U.S. Attorney’s Office for the District of Maryland; and the U.S. Attorney’s Office for the Middle District of Pennsylvania investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Armed Bowie Narcotics Trafficker Pleads Guilty and is Sentenced to Eight Years in Federal Prison for Conspiracy to Distribute Five Kilograms of CocaineRead the Press Release
Baltimore, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Dwayne Douglas, age 39, of Bowie, Maryland, to eight years in federal prison followed by four years of supervised release for being a member of a conspiracy to distribute and possession with the intent to distribute five kilograms of cocaine.
The guilty plea and sentence were announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration, Baltimore District Office (DEA); Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; Postal Inspector in Charge Daniel A. Adame of the U.S. Postal Inspection Service - Washington Division (USPIS); Lieutenant Colonel Kevin M. Anderson, Chief of the Maryland Transportation Authority Police (MDTA Police); Chief Melissa R. Hyatt of the Baltimore County Police Department (BCPD); and Chief Marcus Jones of the Montgomery County Police Department (MCPD).
“Our law enforcement team here in Maryland is focusing on individuals and groups who are driving the violence and bringing large quantities of narcotics into our communities,” said Acting United States Attorney Jonathan Lenzner. “As a large-scale narcotics dealer who also illegally possessed firearms, Dwayne Douglas endangered communities in our state. I would like to commend and thank the local, state and federal law enforcement agencies who worked together to hold accountable Douglas and other members of the conspiracy.”
According to his guilty plea, in furtherance of the narcotics conspiracy, Douglas met with co-conspirators on several occasions. In one meeting, Douglas transferred drug proceeds directly to an individual who unbeknownst to Douglas was a confidential informant (CI). In order to conduct the transactions, the CI would call a third party to arrange the transfer and a code would be assigned. Thereafter, the CI would meet Douglas and, after Douglas received the code from the CI, Douglas would transfer the drug proceeds to the CI.
Specifically, in October 2016, Douglas delivered approximately $250,000 in narcotics to a CI in a Bowie, Maryland hotel parking lot. In March 2017, Douglas delivered approximately $149,960 to a CI in the parking lot of a College Park, Maryland restaurant.
Additionally, in November 2016, a CI received a notification and the description of a vehicle that would transfer drug proceeds and gave that description to law enforcement. Law enforcement then conducted a traffic stop of the vehicle, in the vicinity of Hyattsville, Maryland. Douglas was the driver of the vehicle. During the car stop, law enforcement observed an open box in the back passenger seat filled of U.S. Currency. Douglas informed law enforcement that there was “a lot” of money in the car. Following a positive canine sniff, law enforcement searched the vehicle and recovered a total of $158,609.
One day later, law enforcement executed a federal search warrant in which Douglas was the target in Lanham, Maryland. As a result of the search warrant, law enforcement recovered numerous items including a scale with cocaine residue, Douglas' personal items, and a loaded semi-automatic pistol. A federal search and seizure warrant was authorized the next month for Douglas’ DNA. DNA found on the firearm was compared to Douglas’ DNA and the chances of an individual other than Douglas being the DNA contributor was one in 7.24 octillion. The DNA that matched Douglas was found on the grip and trigger of the firearm.
As stated in his plea agreement, on July 28, 2020, investigators executed federal search and seizure warrant on Douglas’ Silver Spring, Maryland apartment. Investigators recovered a pistol loaded with 14 rounds of ammunition, 10 rounds of .45 caliber bullets, two magazines, four separate boxes of ammunition, more than 10 cellular phones, a money counter machine, a food-saver heat sealer machine, packaging materials for controlled substances, latex gloves and three digital scales. Within a safe, DEA agents recovered approximately $25,241.00. DEA agents arrested Douglas, who was inside his apartment.
In his plea agreement, Douglas agrees that it was reasonably foreseeable to him that the conspiracy distributed five kilograms or more of cocaine. Douglas further admits and agrees that he possessed the two above-described firearms even though he was prohibited from doing so due to a prior felony conviction.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The overdose crisis continues to devastate our states and local communities. If you believe you may need substance use disorder treatment or recovery services, please call 1800-662-HELP (4357). You may also visit the United States Attorney’s Office for the District of Maryland for further information and resources on opioid awareness at /media/1138691/dl?inline.
Acting United States Attorney Jonathan F. Lenzner commended the DEA, HSI, the MDTA Police, the BCP, U.S. Postal Inspectors, and the MCPD for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys James Warwick and Zachary B. Stendig, who prosecuted the case.
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6 Physical Therapists and 2 Acupuncturists Charged in over $20 Million Health Care Fraud SchemeRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, and Scott Lampert, Special Agent in Charge of the New York Office of the U.S. Department of Health and Human Services, Office of Inspector General (“HHS-OIG”), announced the unsealing today of an indictment charging acupuncturists JUNYI LIU, a/k/a “Jenny,” and HONGXING WANG, as well as physical therapists GLEEN ANCIRO, NOEMI ALGODON, MOHAMED ELMANDOUH, GERARD ESTRELLA, RAMON GARCIA III, and HENLER DATU TAHIL, and cashier ZIHAO CHEN with operating an over $20 million health care fraud scheme at fraudulent medical offices in Manhattan, Brooklyn, and Queens. As part of the fraud scheme, CHEN and other of the defendants’ co-conspirators paid cash kickbacks to patients (the “Paid Patients”) who were insured by Medicare and/or other insurance providers (collectively, the “Insurance Providers”), and the defendants and their co-conspirators then billed Medicare and the insurance providers for physical therapy and acupuncture services related to the Paid Patients that were unnecessary or never performed. LIU was additionally charged with unlawfully enriching herself and a family member through a COVID-19 unemployment benefit scheme.
The defendants were arrested earlier today and will be presented this afternoon before U.S. Magistrate Judge Gabriel W. Gorenstein. The case is assigned to Chief U.S. District Judge Laura Taylor Swain.
U.S. Attorney Audrey Strauss said: “As alleged, the defendants perpetrated a multimillion-dollar health care fraud scheme in which they billed Medicare and other insurers for physical therapy and acupuncture services that were either not rendered in the manner purported or not rendered at all. Large-scale insurance frauds of the type alleged here impose hidden but very real costs on the public as well as insurers. Thanks to our partners in this case, the defendants are in custody and facing serious federal charges.”
HHS Special Agent in Charge Scott Lampert said: “These allegations describe a greed-fueled scheme that undermined our health care system and the people it serves. Health care providers participating in the Medicare program are trusted to furnish medically necessary services and to make beneficiaries collaborators in their care, not conspirators in fraud. HHS-OIG and our law enforcement partners proudly work to protect federal health care funds by identifying and quelling fraudulent billing of providers.”
According to the allegations contained in the Indictment[1] and statements made during court proceedings:
Between 2018 and 2021, LIU, a licensed acupuncturist, operated medical offices (the “Offices”) from which LIU and her partners fraudulently billed the Insurance Providers for physical therapy and acupuncture services that were not rendered in the manner represented or not rendered at all. During the scheme, LIU partnered with other licensed medical professionals, including ANCIRO, ALGODON, ELMANDOUH, ESTRELLA, GARCIA, and TAHIL, all of whom were licensed physical therapists, and WANG, who was a licensed acupuncturist (collectively, the “Partners”). The Partners’ roles in the scheme typically included: (i) allowing the Offices to use their enrollments with the Insurance Providers to submit to the Insurance Providers materially false and fraudulent claims for reimbursement for physical therapy and acupuncture services that were not rendered in the manner represented or were not rendered at all; (ii) creating materially false medical documentation, which stated that certain physical therapy and acupuncture services had been rendered, when such services in fact were not rendered in the manner represented or were not rendered at all; and (iii) contributing financing for the Offices, including for the payment of cash kickbacks to the Paid Patients to induce those patients to provide their insurance information and receive medically unnecessary and/or non-existent services at the Offices. LIU and certain of the Partners also agreed to give kickbacks, including cash and expensive wine, to employees of Insurance Providers to enable the scheme to continue.
In furtherance of the scheme, LIU employed receptionists, cashiers, marketers, financial and billing personnel, acupuncturists, massagists, and other personnel. The cashiers included CHEN, who on numerous occasions distributed tens of thousands of dollars in cash kickbacks to the Paid Patients. In some instances, these Paid Patients visited the Offices, signed in, and received unnecessary physical therapy and acupuncture services. In other instances, the Paid Patients visited the Offices, signed a sign-in sheet and other documents, and then left without receiving any services at all. In yet other instances, the Paid Patients did not visit the Offices at all and instead signed sign-in sheets and other documents brought to them elsewhere. Regardless of whether the Paid Patients received any services or even visited the Offices at all, the Partners used the Paid Patients’ insurance information to fraudulently bill the Insurance Providers for unnecessary and/or never rendered services.
While LIU and her Partners were defrauding the Insurance Providers of millions of dollars, from April 2020 through September 2021, LIU also engaged in a scheme to obtain COVID-19 unemployment benefits for herself and a family member (the “Family Member”) by fraudulently submitting and causing to be submitted to the New York Department of Labor materially false online applications and certifications for COVID-19 benefits. Among other things, the applications and/or certifications represented that LIU was unemployed when, in fact, she continued to operate the Offices for all or nearly all of this period, and that LIU’s Family Member was unable to work because of COVID-19 during a five-month period when the Family Member was in China.
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JUNYI LIU, 67, of Great Neck, New York, GLEEN ANCIRO, 50, of Floral Park, New York, NOEMI ALGODON, 49, of Mineola, New York, MOHAMED ELMANDOUH, 48, of Staten Island, New York, GERARD ESTRELLA, 39, of West Hempstead, New York, RAMON GARCIA III, 39, of Merrick, New York, HENLER DATU TAHIL, 38, of East Meadow, New York, HONGXING WANG, 61, of Brooklyn, and ZIHAO CHEN, 20, of Queens, are each charged with: (1) conspiring to commit health care fraud, which carries a maximum sentence of 20 years in prison; (2) conspiring to violate the Anti-Kickback Statute, which has a maximum penalty of five years in prison; and (3) conspiring to commit money laundering, which carries a maximum sentence of 20 years in prison. LIU is also charged with wire fraud, which has a maximum penalty of 20 years in prison, and theft of Government funds, which has a maximum penalty of 10 years in prison.
The statutory maximum sentences are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendants would be determined by the judge.
Ms. Strauss praised the outstanding investigative work of HHS-OIG’s New York Office and the New York Field Office of the Internal Revenue Service, Criminal Investigation. Ms. Strauss also thanked the New York State Attorney General’s Medicaid Fraud Control Unit and the U.S. Department of Labor, Office of Inspector General, for their assistance.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Timothy V. Capozzi is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth in this release constitute only allegations, and every fact described should be treated as an allegation.
10 People Indicted in Scheme to “Straw Purchase” FirearmsRead the Press Release
DETROIT – Ten individuals have been indicted on charges involving the alleged straw purchasing of firearms, announced Acting United States Attorney Saima Mohsin. The indictment is part of the Department of Justice’s Project Safe Neighborhoods Initiative aimed at reducing gun violence.
Mohsin was joined in the announcement by Acting Special Agent in Charge Keith Krolczyk, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is a comprehensive approach to combating gun violence by bringing together local, state and federal law enforcement officials, prosecutors, and community leaders to implement a multi-faceted strategy to deter and punish gun violence from all sides. PSN focuses enforcement efforts on the most violent offenders as well as those who seek to circumvent gun laws put in place to protect the public, otherwise known as “straw purchasers”.
A “straw purchase” is an illegal firearm purchase where the actual buyer of the gun, being unable to pass the required federal background check or desiring to not have his or her name associated with the transaction, uses another person who can pass the required background check to purchase the firearm for him/her. Those who purchase firearms in this illegal manner are subject to 10 years in prison and a $250,000 fine.
Charged today were:
Chauncey Williams, 21, Detroit, MI
Mike Chahoua, 23, Sterling Heights, MI
Antonio Jackson, 22, Detroit, MI
Bishop Allen, 24, Detroit, MI
Garcia Moses, 24, currently residing in Florida
Donte Turner, 26, Detroit, MI
Reginald Small, 23, Detroit, MI
Eshon Rose, 22, Detroit, MI
James Jackson, 23, Detroit, MI
Emmanuel Stevens, 21, Detroit, MI
As alleged in the indictment, beginning in November 2020 and continuing through March 2021, defendants Chauncey Williams, Michael Chahoua and Antonio Jackson used stolen credit card information to purchase firearms from online retailers and enlisted seven straw purchasers to retrieve the firearms in-person from a local federal firearms licensee in exchange for compensation. The straw purchasers allegedly made false statements stating that they were the actual purchaser of the firearms. Once in receipt of the illegally obtained firearms, Williams, Chahoua and Jackson either personally possessed and used the firearms or resold the firearms for profit. In total, at least 40 firearms were illegally obtained through this scheme. At least three of the firearms were recovered from convicted felons.
Six of the ten defendants have been arrested and will be appearing in federal court this afternoon for their arraignment.
“When you buy a gun for someone who is legally prohibited from possessing a firearm, you could be buying yourself 10 years in federal prison,” said Acting US Attorney Mohsin. “The surge of gun violence in our cities is being fueled by individuals who circumvent the law and supply firearms to felons and trigger-pullers. These cases should send a message to those thinking about straw purchasing firearms – you will be subject to federal prosecution.”
“Straw purchasing is not a victimless crime. The act of knowingly enabling a prohibited person to purchase a firearm puts firearms in the hands of criminal organizations and violent criminals presenting a grave threat to the safety of our communities,” said Acting Special Agent in Charge Keith Krolczyk.
The United States Attorney’s Office and the ATF are focused on prosecuting those individuals who are putting guns in the hands of criminals only to be used in an untold number of violent crimes. This indictment is the latest in a string of charges brought during the last year involving the straw purchase of firearms. In the last year, the USAO has obtained 13 indictments, charging 25 different individuals for their involvement in straw purchases of more than 74 firearms. Some of those firearms were involved in shootings or found in the hands of felons. Some of those cases include:
On August 18, 2021, two individuals were indicted for making straw purchases of at least 10 firearms during a one-month period. Two of those firearms were later recovered by law enforcement at crime scenes in the City of Detroit.
On March 3, 2021, three individuals were indicted for their involvement in selling five firearms to an undercover agent between December 2020 and January 2021. Agents then conducted NIBIN (National Integrated Ballistic Information Network) testing on the firearms and two of the guns sold to the undercover agent were traced to prior shootings into homes in Detroit from the fall of 2020.
Also indicted on March 3, 2021 was Danny Jo Thompson, II. Thompson acted as a straw purchaser for a person he knew to be a convicted felon. Specifically, Thompson purchased two AR-15 lower receivers (classified as a firearm under federal law) and worked with the convicted felon to convert two semi-automatic AR-style rifles into fully functioning machine guns. The machine gun possessed by the convicted felon was later found in the felon’s truck at the scene of a shootout with law enforcement.
These charges are just some of the tangible results of this joint effort. The United States Attorney’s Office and our law enforcement partners will continue to work together to reduce gun violence in our communities.
An indictment is not evidence of guilt. Defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
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Monday 27 September 2021
“R. Kelly” Convicted of All Counts by a Federal Jury in BrooklynRead the Press Release
Robert Sylvester Kelly, the R&B singer also known as “R. Kelly,” was convicted today by a federal jury in Brooklyn of all nine counts of a superseding indictment charging him with racketeering predicated on criminal conduct including sexual exploitation of children, forced labor and Mann Act violations involving the coercion and transportation of women and girls in interstate commerce to engage in illegal sexual activity. The verdict followed six weeks of trial before United States District Judge Ann M. Donnelly.
Jacquelyn M. Kasulis, Acting United States Attorney for the Eastern District of New York, and Peter C. Fitzhugh, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), announced the verdict.
“Today’s guilty verdict forever brands R. Kelly as a predator, who used his fame and fortune to prey on the young, the vulnerable, and the voiceless for his own sexual gratification,” stated Acting U.S. Attorney Kasulis. “A predator who used his inner circle to ensnare underage teenage girls, and young women and men, for decades, in a sordid web of sex abuse, exploitation and degradation. To the victims in this case, your voices were heard, and justice was finally served. We hope that today’s verdict brings some measure of comfort and closure to the victims.” Ms. Kasulis also thanked the U.S. Attorney’s Office for the Northern District of Illinois and the Cook County State’s Attorney’s Office for their assistance with the case.
“Robert Kelly is a serial sexual predator who used his fame and musical tours as his personal hunting grounds to find his victims,” stated HSI Special Agent-in-Charge Fitzhugh. “Mr. Kelly ran a criminal enterprise whose mission was to serve his sexual gratification by setting up a complex organization of enablers and handlers. When his victims tried to escape, Mr. Kelly and his accomplices silenced them through bribery, intimidation, and physical violence. The brave survivors who overcame Mr. Kelly’s abuse deserve our upmost respect for telling their stories and bringing an end to his 30-year reign of terror over the young and vulnerable.”
As proven at trial, for nearly three decades, Kelly was the leader of a criminal enterprise (“the Enterprise”) consisting of himself and an entourage of individuals who served as managers, bodyguards, accountants, drivers, personal assistants and runners for the defendant. As the leader of the Enterprise, Kelly used his fame to recruit women and girls to engage in illegal sexual activity with him. Kelly identified these girls and women at concerts, and then directed members of the Enterprise to escort them backstage following his musical performances. Kelly exchanged contact information with girls and women so that he and other members of the Enterprise could arrange travel and lodging for them to visit Kelly and engage in the charged illegal sexual conduct.
The evidence at trial included the testimony 45 government witnesses, including more than 10 victims, five of whom are named in the superseding indictment, testimony from employees of the defendant, text messages, video and audio recordings, photographs, phone and travel records, DNA evidence and expert witnesses.
Kelly issued rules that many of his sexual partners were required to follow, including that the women and girls were to call him “Daddy”; they were not permitted to leave their rooms to eat or visit the bathroom without receiving his permission; they were required to wear baggy clothing when not accompanying Kelly to an event; and they were directed to keep their heads down and not look at or speak to other men. Kelly also isolated the women and girls from their friends and family and made them dependent on him for their financial well-being. He required the victims to engage in sex with him and others, and recorded many of the sexual encounters.
Racketeering Act One – Bribery
Kelly bribed a state employee to create an identification card for Jane Doe #1, then 15 years old, so that Kelly could marry Jane Doe #1 because he believed she was pregnant and therefore the marriage could keep him out of jail.
Racketeering Acts Two, Seven and Ten – Sexual Exploitation of a Child – Jane Doe #2, Jane Doe #4 and Jane Doe #5
Kelly coerced Jane Doe #2, Jane Doe #4 and Jane Doe #5 to engage in sexually explicit conduct for the purpose of producing video recordings. Over the course of decades, he made these recordings, and other recordings of sexually explicit conduct, using VHS video cameras, Canon camcorders, iPhones and iPads.
Racketeering Acts Six, Eleven and Thirteen – Forced Labor – Jane Doe #4, Jane Doe #5 and Jane Doe #6
Kelly used the threat of physical harm and physical restraint to ensure that his victims, including Jane Doe #4, Jane Doe #5 and Jane Doe #6, performed sexually at his command. As to Jane Doe #4, he slapped her, choked her and spit on her, before demanding she give him oral sex. As to Jane Doe #5, over a period of years, he spanked her, viciously assaulted her, confined her for periods of days and otherwise manipulated her, to ensure that she would perform for him sexually, including with other women and a man. As to Jane Doe #6, he forced her to give him oral sex. When he did that, there was a gun within Kelly’s reach.
Racketeering Acts Five and Nine – Mann Act Violations – Jane Doe #4 and Jane Doe #5
Between May 2009 and January 2010, Kelly regularly spoke with Jane Doe #4 over the telephone to arrange for Jane Doe #4 to come to his residence in Olympia Fields for the purpose of illegal sexual activity, which was illegal because Jane Doe #4 was too young to consent to sex in Illinois. Similarly, between September 2015 and October 2015, Kelly transported Jane Doe #5, who was then 17 years old, from New York City to Oakland, California for the purpose of illegal sexual activity, as she was too young to consent to sex in California.
Racketeering Acts Eight, Thirteen and Fourteen – Mann Act Violations – Jane Doe #5 and Jane Doe #6
In April 2015, Kelly arranged for Jane Doe #5 to fly from her home in Orlando, Florida, to Los Angeles, California, for the purpose of illegal sexual activity, which was illegal because Kelly knew he had an incurable sexually transmitted disease (“STD”) and did not inform Jane Doe #5 about the STD prior to engaging in sexual intercourse with her. In May of 2017 and again in February of 2018, Kelly arranged for Jane Doe #6 to fly from her home in San Antonio, Texas, to La Guardia Airport in Queens, New York, for the purpose of illegal sexual activity, which again was illegal because Kelly failed to disclose that he had an incurable STD and obtain Jane Doe #6’s consent to engage in sexual intercourse under those circumstances.
When sentenced, Kelly faces a mandatory minimum sentence of 10 years’ imprisonment and up to life in prison.
The government’s case is being handled by the Office’s Civil Rights Section. Assistant United States Attorneys Elizabeth Geddes, Nadia Shihata and Maria Cruz Melendez are in charge of the prosecution.
The Defendant:
ROBERT SYLVESTER KELLY (also known as “R. Kelly”)
Age: 54
Chicago, IllinoisE.D.N.Y. Docket No. 19-CR-286 (AMD)
Worcester Man Pleads Guilty to Firearms ChargesRead the Press Release
BOSTON – A Worcester man pleaded guilty today in connection with brandishing a loaded sawed-off shotgun in an apartment while arguing with teenaged residents in December 2019.
Steven Dillon, 36, pleaded guilty to one count of being a felon in possession of a firearm and ammunition and one count of unlawful possession of an unregistered firearm. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for Jan. 10, 2022. Dillon was indicted in June 2020.
On Dec. 25, 2019, Dillon brandished a loaded sawed-off shotgun in an apartment while arguing with teenaged residents. Police found the shotgun and ammunition in a bedroom used by Dillon, who was previously convicted of a felony punishable by more than one year in prison and therefore prohibited from possessing a firearm.
The charging statute provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $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; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Worcester Police Chief Steven M. Sargent made the announcement today. Assistant U.S. Attorney Kristen Noto of Mendell’s Worcester Branch Office is prosecuting the case.
Waterloo Woman Headed to Federal Prison for Drug TraffickingRead the Press Release
A woman who admitted conspiring with others to sell methamphetamine was sentenced September 24, 2021, to nearly four years in federal prison.
Jennifer Marie Klingsmith, age 36, from Waterloo, Iowa, received the prison term after a March 15, 2021 guilty plea to conspiracy to distribute a controlled substance.
At the guilty plea, Klingsmith admitted she conspired with others beginning around November 2019 through February 2020 to distribute methamphetamine. Klingsmith admitted selling methamphetamine to two other people. Overall, Klingsmith was involved in trafficking more than 200 grams of methamphetamine.
Klingsmith was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Klingsmith was sentenced to 46 months’ imprisonment. She must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
Klingsmith is being held in the United States Marshal’s custody until she can be transported to a federal prison.
The case was prosecuted by Special Assistant United States Attorney Alex Geocaris and Assistant United States Attorney Emily K. Nydle and investigated by the Tri-County Drug Enforcement Task Force, the Waterloo Police Department, the Black Hawk County Sheriff’s Office, the Cedar Falls Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-cr-2046.
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Vermont Resident Charged with Illegally Buying Firearm for Plattsburgh FelonRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that a Vermont resident has been indicted by a Burlington grand jury for her role straw-purchasing a firearm. Marissa Byrd, age 29, of Burlington was arraigned today before United States Magistrate Judge Kevin J. Doyle on an indictment charging her with providing false information to a federally licensed firearm dealer while purchasing a firearm in March of 2021. At the conclusion of the arraignment today, Byrd was released on conditions of supervision pending further proceedings.
The indictment alleges that on March 20, 2021, Byrd falsely informed a firearms dealer, Parro’s Gun Shop in Waterbury, that she was purchasing a 9-millimeter firearm for herself when she was actually purchasing the firearm for another person. This kind of illegal firearm transaction is commonly known as a “straw purchase.” The firearm Byrd purchased in March 2021 was seized by law enforcement seventeen days later during a search of the home of Thomas Caves in Plattsburgh, New York. At the time of the search, Caves was on parole and being supervised by the State of New York for a 2020 felony burglary conviction in Connecticut. Caves is currently charged by a federal criminal complaint in the Northern District of New York for possessing the firearm after having been convicted of a crime punishable by imprisonment for more than one year.
The charge in the indictment brought against Byrd is an accusation only, and she is presumed innocent until and unless proven guilty in further proceedings. If convicted of the crime of making a false statement to a licensed dealer of firearms during the purchase of a firearm in violation of 18 U.S.C. § 922(a)(6), Byrd would face a maximum possible penalty of 10 years in prison and a fine of up to $250,000. The actual sentence, however, would be determined by the Court with guidance from the advisory Federal Sentencing Guidelines.
Acting United States Attorney Jonathan A. Ophardt commended the coordinated investigatory efforts of Homeland Security Investigations in both the District of Vermont and the Northern District of New York and the Plattsburgh Police Department.
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. More information about the program can be found at https://www.justice.gov/psn.
The United States is represented in this matter by Assistant U.S. Attorney Matthew J. Lasher. Marissa Byrd is represented by David Kirby, Esq.
Vancouver, Washington area man sentenced to 20 years in prison for online sexual exploitation of teensRead the Press Release
Tacoma – A Ridgefield, Washington, man was sentenced today in U.S. District Court in Tacoma to 20 years in prison and lifetime supervised release, for multiple federal felonies for his scheme to entice and pressure young teens into sending him sexually explicit photos and videos, announced Acting U.S. Attorney Tessa M. Gorman. Joshua Henry Punt, 39, pleaded guilty in April 2021, to using the messaging apps ‘Kik’ and ‘Snapchat’ to connect with teens while posing as a teenager. Punt then enticed and pressured young teens to send him sexually explicit photos and videos. Victims have been identified across the U.S., including in New York, Arkansas, California, Texas, Nevada, Kentucky, Pennsylvania, and West Virginia.
At today’s sentencing hearing, U.S. District Judge Benjamin H. Settle said, “There are no words to express how serious this crime is. The weight of the damage will go on for scores of decades – rippling through lives….” To Punt, Judge Settle said, “You could see the pain in those girls, and you continued to do it – to eight precious, innocent young girls – you tortured them.”
“This predatory defendant infiltrated our homes, using electronic access and social media to deceive, pressure and sexually exploit young girls across the country,” said Acting U.S. Attorney Gorman. “We warn our children about the ‘dangerous stranger’ they might encounter on the street – we must be equally vigilant about the ones who are lurking online.”
According to records filed in the case, Punt presented himself in his social media accounts as an attractive teenager by using profile pictures of youthful YouTube personalities. After innocuous preliminary communications with his intended victims, Punt demanded sexually provocative and/or sexually explicit photos and videos. Unbeknownst to his victims, Punt recorded their videos and images on a second phone. So, for example, when a victim believed she was sending a “snap,” which would automatically delete or notify the sender if an attempt was made to copy it, Punt surreptitiously recorded the images and videos for future use. When victims inevitably became uncomfortable with his behavior and attempted to exit the “relationship,” Punt threatened to send the videos/images to members of their local communities–including schools, coaches, and others‑‑if they did not comply with his demands, which included production of additional sexually explicit videos and images. The victims range in age from 12 to 16 years of age.
At the sentencing hearing one mother said of her daughter, “She met a monster disguised as a boy, and her life will be changed forever…. She now knows what evil looks like.”
“Collaborative law enforcement work ensures child predators will not be allowed to weaponize online communication tools to fulfill their perverse desires,” said Special Agent in Charge Robert Hammer, who oversees HSI operations in the Pacific Northwest. “As HSI seeks to protect communities from child exploitation crimes, parents and their children should be especially cautious with who they are interacting with online.”
“Mr. Punt is a prime example of what is referred to as a ‘Sextortionist,’” said Special Agent in Charge Donald Voiret, FBI Seattle. “While he will be serving time in a federal penitentiary for his actions, I would encourage parents everywhere to engage with their children about the risks of online predators.”
Punt was arrested on May 21, 2019. He was originally charged in Clark County Superior Court. He was charged federally on November 7, 2019.
In a separate investigation, the FBI identified Punt as the administrator of a child pornography distribution group on Kik. As an administrator, Punt actively patrolled the group – demanding that new members share content and banning those that failed to share child pornography. An FBI online covert employee followed links posted by Punt leading to a cache of child pornography.
On April 27, 2021, Punt pleaded guilty to production of child pornography, enticement of a minor, distribution of child pornography, and advertisement of child pornography. Punt will be required to register as a sex offender following prison.
The case was investigated by the Vancouver Police Department’s Digital Evidence Cybercrime Unit, in conjunction with Homeland Security Investigations. The FBI investigated Punt’s activity administering a site for the trading of images of child abuse and molestation. Law enforcement agencies in other jurisdictions also assisted this investigation.
Assistant U.S. Attorneys Angelica Williams and Cecelia Gregson prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Utica Man Arrested on Child Pornography ChargesRead the Press Release
SYRACUSE, NEW YORK – John Seiselmyer, age 49, of Utica, New York, was arrested today and charged with possessing child pornography. The announcement was made by Acting United States Attorney Antoinette T. Bacon, Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), and New York State Police (NYSP) Superintendent Kevin P. Bruen.
According to the criminal complaint, Seiselmyer possessed videos of child pornography on his home computer. Seiselmyer is a registered sex offender who was convicted in 2007 of Criminal Sexual Act in the First Degree with a victim who was less than 11 years old. The charge in the complaint is merely an accusation. The defendant is presumed innocent unless and until proven guilty.
The charge against Seiselmyer carries a mandatory minimum sentence of 10 years and a maximum of 20 years in prison, a post-release term of supervision of between 5 years and life, and a fine of up to $250,000. A defendant’s sentence is imposed by a judge based on the statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
Seiselmyer made his initial appearance today before United States Magistrate Judge Therese Wiley Dancks and was detained pending further proceedings.
This case is being investigated by the FBI Syracuse Mid-State Child Exploitation Task Force, comprised of FBI Special Agents and Investigators of the New York State Police, Bureau of Criminal Investigation (BCI), with assistance from the Utica Police Department. The case is being prosecuted by Assistant U.S. Attorney Geoffrey J. L. Brown as a part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
United States Citizen Pleads Guilty to Conspiring to Assist North Korea in Evading SanctionsRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced today that VIRGIL GRIFFITH, a U.S. citizen, pled guilty to conspiring to violate the International Emergency Economic Powers Act (“IEEPA”) by providing services to the Democratic People’s Republic of Korea (“DPRK” or “North Korea”) including technical advice on using cryptocurrency and blockchain technology to evade sanctions. GRIFFITH pled guilty today before U.S. District Judge P. Kevin Castel.
U.S. Attorney Audrey Strauss stated: “As he admitted in court today, Virgil Griffith agreed to help one of our nation’s most dangerous foreign adversaries, North Korea. Griffith worked with others to provide cryptocurrency services to North Korea and assist North Korea in evading sanctions, and traveled to North Korea to do so. In the process, Griffith jeopardized the national security of the United States by undermining the sanctions that both Congress and the President have enacted to place maximum pressure on the threat posed by North Korea’s treacherous regime.”
According to the Indictment and other documents in the public record, as well as statements made in public court proceedings:
Pursuant to the IEEPA and Executive Order 13466, United States Persons are prohibited from exporting any goods, services, or technology to the DPRK without a license from the Department of the Treasury, Office of Foreign Assets Control (“OFAC”).
GRIFFITH, a cryptocurrency expert, began formulating plans as early as 2018 to provide services to individuals in the DPRK by developing and funding cryptocurrency infrastructure there, including to mine cryptocurrency. GRIFFITH knew that the DPRK could use these services to evade and avoid U.S. sanctions, and to fund its nuclear weapons program and other illicit activities.
In April 2019, GRIFFITH traveled to the DPRK to attend and present at the “Pyongyang Blockchain and Cryptocurrency Conference” (the “DPRK Cryptocurrency Conference”). Despite the fact that the U.S. Department of State had denied GRIFFITH permission to travel to the DPRK, GRIFFITH delivered presentations at the DPRK Cryptocurrency Conference, tailored to the DPRK audience, knowing that doing so violated sanctions against the DPRK.
At the DPRK Cryptocurrency Conference, GRIFFITH and his co-conspirators provided instruction on how the DPRK could use blockchain and cryptocurrency technology to launder money and evade sanctions. GRIFFITH’s presentations at the DPRK Cryptocurrency Conference had been approved by DPRK officials and focused on, among other things, how blockchain technology such as “smart contracts” could be used to benefit the DPRK, including in nuclear weapons negotiations with the United States. GRIFFITH and his co-conspirators also answered specific questions about blockchain and cryptocurrency technologies for the DPRK audience, including individuals whom GRIFFITH understood worked for the North Korean government.
After the DPRK Cryptocurrency Conference, GRIFFITH pursued plans to facilitate the exchange of cryptocurrency between the DPRK and South Korea, despite knowing that assisting with such an exchange would violate sanctions against the DPRK. GRIFFITH also attempted to recruit other U.S. citizens to travel to North Korea and provide similar services to DPRK persons, and attempted to broker introductions for the DPRK to other cryptocurrency and blockchain service providers. At no time did GRIFFITH obtain permission from OFAC to provide goods, services, or technology to the DPRK.
* * *
VIRGIL GRIFFITH, 38, a resident of Singapore and citizen of the United States, pled guilty to one count of conspiring to violate IEEPA, which carries a maximum term of 20 years in prison. GRIFFITH is scheduled to be sentenced by Judge Castel on January 18, 2022, at 11:00 a.m.
The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Ms. Strauss praised the outstanding investigative work of the Federal Bureau of Investigation and its New York Field Office, Counterintelligence Division, and thanked the U.S. Department of State’s Diplomatic Security Service, the Department of Justice’s National Security Division, Counterintelligence and Export Control Section, the Department of Justice’s Office of International Affairs, and the Singapore Police Force for their assistance.
The case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Kimberly Ravener and Kyle A. Wirshba are in charge of the case, with assistance from Deputy Chief Elizabeth Cannon and Trial Attorney Matthew J. McKenzie of the Counterintelligence and Export Control Section.
United States Announces Settlement of Civil Action Addressing Clean Air Act Violations at New York City Public SchoolsRead the Press Release
The United States filed suit today under the Clean Air Act (CAA) against the City of New York and the New York City Department of Education (NYCDOE) and lodged a proposed consent judgment to address the defendants’ longstanding failure to properly monitor and control harmful emissions from NYCDOE oil-fired boilers in New York City public schools.
Many of NYCDOE’s boilers are located in disadvantaged communities whose residents are exposed to disproportionately high pollution levels that result in adverse health and environmental impacts. The consent judgment, agreed upon by the parties and also filed today with the court, requires NYCDOE to: (1) conduct regular tune-ups to monitor and repair its boilers as required by the CAA to control excess emissions; (2) reduce its boiler emissions by transitioning seven of its largest oil-fired boilers to cleaner, natural gas boilers by 2023, at an approximate cost of $50 million; and (3) pay a civil penalty of $1 million to the United States.
The complaint and consent judgment were filed in the U.S. District Court for the Eastern District of New York, in Brooklyn, New York. Following a 30-day public comment period, the United States will review all comments and, if appropriate, ask the court to enter the consent judgment.
“Students and teachers should not have to be concerned that the air they are breathing at school is harmful to their health,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “This settlement will benefit New York’s schools and the communities they serve, who already suffer an unjust burden from polluted air.”
“The United States brought this action to protect our children, teachers, staff, and communities from exposure to high levels of hazardous air particles and particulate matter emitted by oil-fired boilers at NYCDOE schools, many of which are located in areas of the city that are already burdened by disproportionate levels of air pollution,” said Acting U.S. Attorney Jacquelyn M. Kasulis for the Eastern District of New York. “This settlement demonstrates that this office and its Environmental Justice Team are committed to addressing environmental justice concerns and reducing dangerous emissions and hazardous air pollutants in disadvantaged communities.”
“Thousands of New York City residents will be breathing cleaner air as a result of this case, many of whom live in communities overburdened by dangerous air pollution and other environmental challenges,” said Acting Regional Administrator Walter Mugdan of the Environmental Protection Agency (EPA). “This case demonstrates EPA’s commitment to advancing environmental justice and working with our partners, like the Justice Department, to ensure compliance with critical federal laws that protect public health and clean air. Children’s health is an EPA priority because children are often more vulnerable than adults to the risks of pollutants and environmental hazards.”
The CAA was passed by Congress in 1970, and amended in 1990, to protect public health and the environment through the regulation of air emissions from both stationary and mobile sources. The 1990 amendments to the law required the EPA to establish standards for air toxics, also known as hazardous air pollutants (HAPs). These standards impose limitations on HAP emissions from a variety of sources. In order to reduce these emissions from oil-fired boilers located at institutional sources including schools, the EPA promulgated national operation and maintenance standards for such boilers in 2011. These standards are commonly referred to as the Area Source Boiler Rule.
NYCDOE, the nation’s largest public-school system, operates oil-fired boilers at hundreds of public schools throughout the city. When these boilers are properly maintained, they play an important role in keeping the schools warm and do not emit excess pollution. When these boilers are not properly maintained, they can emit excess HAPs, along with other regulated pollutants such as particulate matter, nitrogen oxides, sulfur oxides, carbon monoxide and greenhouse gases. Regular tune-ups, which include monitoring of emissions, can increase a boiler’s combustion efficiency, lowering its actual emissions rate.
Over 1,300 of NYCDOE’s oil-fired boilers, at approximately 566 school facilities, became subject to the Area Source Boiler Rule in 2014. These regulations require boiler operators to conduct regular tune-ups and submit reports to the EPA about the status of all boilers subject to the rule. The rule also required NYCDOE to conduct one-time energy assessments for certain large oil-fired boilers. However, as set forth in the United States’ complaint, NYCDOE failed to comply with these requirements for several years after they took effect. As a result of the EPA’s and Department of Justice’s enforcement efforts, NYCDOE has now brought its boilers into compliance with the CAA.
The NYCDOE’s failure to properly perform tune-ups resulted in excess emissions that will be reduced under the consent judgment. Notably, many of NYCDOE’s boilers are located in communities identified by the EPA as posing environmental justice concerns, due to the large number of minority or low-income residents who are disproportionately exposed to air pollution and its harmful effects. Particulate matter and HAP emissions are linked to a range of health problems and cause environmental harm. The mitigation projects described below are targeted to provide environmental benefits in these communities.
The settlement requires the NYCDOE to regularly and properly conduct periodic tune-ups at regulated boilers. These tune-ups will proceed according to a checklist which ensures that the proper procedures and quality assurance measures are followed, and that all necessary maintenance or repairs are identified and addressed. To mitigate past emissions, NYCDOE has also agreed that prior to March 2023 it will convert to natural gas or replace seven large oil-fired boilers that burn more polluting number 4 oil – including one of the largest boilers in the school system, located at K430 (Brooklyn Tech High School). The other schools at which boilers will be replaced or converted are: Q053 (M.S. 53 Brian Piccolo), X029 (P.S./M.S. 029 Melrose School), K068 (I.S. 068 Isaac Bildersee); K306 (P.S. 306 Ethan Allen), M013 and M117 (each containing various co-located schools). These new or converted boilers will emit far less HAPs when running on natural gas, a cleaner-burning fuel. This effort is projected to reduce NYCDOE’s oil consumption and combustion by over three million gallons by November 2027, thereby mitigating excess emissions caused by NYCDOE’s earlier failure to follow the Area Source Boiler Rule. The mitigation projects effectively advance NYCDOE’s compliance with New York City’s PlaNYC, under which the city plans to phase out number 4 oil from all boilers by 2030.
In June, Acting U.S. Attorney Kasulis announced the creation of an Environmental Justice Team within the Office’s Civil Division comprised of seven Assistant U.S. Attorneys and led by Assistant U.S. Attorney Matthew Silverman, the Chief of Environmental Litigation. The Environmental Justice Team’s focus is the protection of the rights of residents of the Eastern District of New York who are disproportionately burdened by environmental and health hazards.
The civil negotiations and settlement were handled by Assistant U.S. Attorney Matthew Silverman, working with Liliana Villatora and Erick Ihlenburg of the EPA Region 2 Office of Regional Counsel, Chief Robert Buettner of the EPA Region 2 Air Compliance Branch, Chief Gaetano LaVigna of the Stationary Source Compliance Section of Air Compliance Branch and Ray Slizys and Harish Patel, also with the Air Compliance Branch.
United States Announces Settlement of Civil Action Addressing Clean Air Act Violations at New York City Public SchoolsRead the Press Release
Jacquelyn M. Kasulis, Acting United States Attorney for the Eastern District of New York, Todd Kim, Assistant Attorney General of the Justice Department’s Environment and Natural Resources Division, and Walter Mugdan, Acting Regional Administrator of the United States Environmental Protection Agency, Region 2 (EPA), announced today that the United States filed suit under the Clean Air Act (CAA) against the City of New York and the New York City Department of Education (NYCDOE) to address their longstanding failure to properly monitor and control harmful emissions from NYCDOE oil-fired boilers in New York City public schools. Many of NYCDOE’s boilers are located in disadvantaged communities whose residents are exposed to disproportionately high pollution levels that result in adverse health and environmental impacts. The parties agreed to enter into a Consent Judgment, also filed today with the court, that requires NYCDOE to: (1) conduct regular tune-ups to monitor and repair its boilers as required by the CAA to control excess emissions; (2) reduce its boiler emissions by transitioning seven of its largest oil-fired boilers to cleaner, natural gas boilers by 2023 at an approximate cost of $50 million; and (3) pay a civil penalty of $1 million to the United States.
The Complaint and Consent Judgment were filed in the United States District Court for the Eastern District of New York, in Brooklyn, New York. Following a 30-day public comment period, the United States will review all comments and, if appropriate, ask the court to enter the Consent Judgment.
“The United States brought this action to protect our children, teachers, staff, and communities from exposure to high levels of hazardous air particles and particulate matter emitted by oil-fired boilers at NYCDOE schools, many of which are located in areas of the city that are already burdened by disproportionate levels of air pollution,” stated Acting United States Attorney Kasulis. “This settlement demonstrates that this Office and its Environmental Justice Team are committed to addressing environmental justice concerns and reducing dangerous emissions and hazardous air pollutants in disadvantaged communities.”
"Students and teachers should not have to be concerned that the air they are breathing at school is harmful to their health,” stated Assistant Attorney General Kim. “This settlement will benefit New York’s schools and the communities they serve, who already suffer an unjust burden from polluted air.”
“Thousands of New York City residents will be breathing cleaner air as a result of this case, many of whom live in communities overburdened by dangerous air pollution and other environmental challenges,” stated EPA Acting Regional Administrator Mugdan. “This case demonstrates EPA’s commitment to advancing environmental justice and working with our partners like the Justice Department to ensure compliance with critical federal laws that protect public health and clean air. Children’s health is an EPA priority because they are often more vulnerable than adults to the risks of pollutants and environmental hazards.”
The CAA was passed by Congress in 1970, and amended in 1990, to protect public health and the environment through the regulation of air emissions from both stationary and mobile sources. The 1990 amendments to the law required the EPA to establish standards for air toxics, also known as hazardous air pollutants (HAPs). These standards impose limitations on HAP emissions from a variety of sources. In order to reduce these emissions from oil-fired boilers located at institutional sources including schools, the EPA promulgated national operation and maintenance standards for such boilers in 2011. These standards are commonly referred to as the Area Source Boiler Rule.
NYCDOE, the nation’s largest public school system, operates oil-fired boilers at hundreds of public schools throughout the city. When these boilers are properly maintained, they play an important role in keeping the schools warm. When these boilers are not properly maintained, they can emit excess HAPs, along with other regulated pollutants such as particulate matter, nitrogen oxides, sulfur oxides, carbon monoxide, and greenhouse gases. Regular tune-ups, which include monitoring of emissions, can increase a boiler’s combustion efficiency, lowering its actual emissions rate.
Over 1,300 of NYCDOE’s oil-fired boilers, at approximately 566 school facilities, became subject to the Area Source Boiler Rule in 2014. These regulations require boiler operators to conduct regular tune-ups and submit reports to the EPA about the status of all boilers subject to the rule. The rule also required NYCDOE to conduct one-time energy assessments for certain large oil-fired boilers. However, as set forth in the United States’ complaint, NYCDOE failed to comply with these requirements for several years after they took effect. As a result of the EPA’s enforcement efforts, NYCDOE has now brought its boilers into compliance with the CAA.
The NYCDOE’s failure to properly perform tune-ups resulted in excess emissions that will be mitigated under the Consent Judgment. Notably, many of NYCDOE’s boilers are located in communities identified by the EPA as posing Environmental Justice concerns, due to the large number of minority or low-income residents who are disproportionately exposed to air pollution and its harmful effects. Particulate matter and HAP emissions are linked to a range of health problems and also cause environmental harm. The mitigation projects described below are targeted to provide environmental benefits in these communities.
The settlement requires the NYCDOE to regularly and properly conduct periodic tune-ups of regulated boilers. These tune-ups will proceed according to a checklist which ensures that the proper procedures and quality assurance measures are followed, and that all necessary maintenance or repairs are identified and addressed. To mitigate past emissions, NYCDOE has also agreed to convert or replace seven large oil-fired boilers that burn more polluting number 4 oil to natural gas prior to March 2023 – including one of the largest boilers in the school system, located at K430 (Brooklyn Tech High School). The other schools at which boilers will be replaced or converted are: Q053 (M.S. 53 Brian Piccolo), X029 (P.S./M.S. 029 Melrose School), K068 (I.S. 068 Isaac Bildersee); K306 (P.S. 306 Ethan Allen), M013 and M117 (each containing various co-located schools). These new or converted boilers will emit far less HAPs when running on natural gas, a cleaner-burning fuel. This effort is projected to reduce NYCDOE’s oil consumption and combustion by over 3 million gallons by November 2027, thereby mitigating excess emissions caused by NYCDOE’s earlier failure to follow the Area Source Boiler Rule. The mitigation projects effectively advance NYCDOE’s compliance with New York City’s PlaNYC, under which the city plans to phase out number 4 oil from all boilers by 2030.
The civil negotiations and settlement were handled by Assistant U.S. Attorney Matthew Silverman of the U.S. Attorney’s Office for the Eastern District of New York, working with Liliana Villatora and Erick Ihlenburg, Office of Regional Counsel, U.S. EPA Region 2, Robert Buettner, Chief, Air Compliance Branch, U.S. EPA Region 2, Gaetano LaVigna, Chief, Stationary Source Compliance Section, Air Compliance Branch, and Ray Slizys and Harish Patel, also with the EPA Region 2 Air Compliance Branch, Greg Fried, Chief, Stationary Source Enforcement Branch, Air Enforcement Division, EPA Office of Enforcement and Compliance Assurance (OECA) and Robert Klepp, also with OECA.
In June of this year, Acting U.S. Attorney Kasulis announced the creation of an Environmental Justice Team within the Office’s Civil Division comprised of seven Assistant U.S. Attorneys and led by Assistant U.S. Attorney Silverman, the Chief of Environmental Litigation. The Environmental Justice Team’s focus is the protection of the rights of residents of the Eastern District of New York who are disproportionately burdened by environmental and health hazards.
E.D.N.Y. Docket No.: 21-CV-5338 (PKC)
Troy Felon Charged with Unlawful Possession of a FirearmRead the Press Release
ALBANY, NEW YORK – Justin Smith, age 21, of Troy, New York, was ordered detained on Friday pending trial on a charge that he unlawfully possessed a firearm as a felon.
The announcement was made by Acting United States Attorney Antoinette T. Bacon and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
The complaint alleges that Smith, a felon, possessed a handgun in Troy on or about March 5, 2021. The charge in the complaint is merely an accusation. The defendant is presumed innocent unless and until proven guilty.
The charge carries a maximum sentence of 10 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the FBI and the Troy Police Department, and is being prosecuted by Assistant U.S. Attorney Dustin Segovia.
Three New York Men Sentenced to Prison for Elaborate Scheme to Sell Illegally Imported DrugsRead the Press Release
PITTSBURGH, PA - Three New York state residents were sentenced in federal court on Friday to terms of imprisonment on their convictions for participating in a complex Bank and Wire Fraud conspiracy, Acting United States Attorney Stephen R. Kaufman announced today.
United States District Judge David Stewart Cercone imposed the following sentences on the following individuals:
• 38-month term of imprisonment followed by three years of supervised release on Devan Abrams, age 40, of West 37th Street, New York, New York;
• 38-month term of imprisonment followed by three years of supervised release on Azad Khizgilov, age 47, of Dahlgren Place, Brooklyn, New York; and
• 28-month term of imprisonment followed by two years of supervised release on Roman Shaulov, age 54, of Shore Parkway, Brooklyn, New York.According to information presented to the court, including in a public filing, for years these defendants enriched themselves by leading a massive and sophisticated fraud scheme that facilitated the black-market importation and sale of tens of millions of dollars of dangerous and addictive prescription medications and controlled substances. In summary, they established and ran a business that, through a series of misrepresentations, misled various credit card companies into processing credit card transactions for purchases of drugs that were illegal to be sold in the United States. These drugs were often imported from Russia, China, India, and other countries. The complex scheme involved front companies, fake websites, and a tangled web of bank accounts.
“Committing fraud was the full-time job of these defendants,” said Acting U.S. Attorney Kaufman. “They manipulated friends and even family members to serve as owners of front companies, they had a cadre of employees whom they supervised and trained to commit fraud, and they created and executed a complex scheme that allowed them, for years, to deceive sophisticated financial institutions. Now they have been held accountable for their criminal actions.”
“When prescription drugs from outside FDA’s secure supply chain enter the U.S. marketplace, patients are put at risk. The risk is even greater when the criminals disguise the purchase of these unlawful drugs to avoid detection,” said Special Agent in Charge Mark S. McCormack, FDA Office of Criminal Investigations Metro Washington Field Office. “We will continue to pursue and bring to justice those who engage in illegal conduct that undermines the safety of the US drug supply.”
Assistant United States Attorney Brendan T. Conway prosecuted this case on behalf of the
government.Acting United States Attorney Kaufman commended the Food and Drug Administration Office of Criminal Investigations, Homeland Security Investigations, Pennsylvania State Police and United States Postal Inspection Service for the investigation leading to the successful prosecution of these defendants.
Three Alleged Drug Traffickers Arrested, Charged in PampaRead the Press Release
Three alleged drug traffickers in Pampa, Texas – including the alleged local president of the Bandidos motorcycle gang – have been charged with gun and drug crimes, announced Acting U.S. Attorney Prerak Shah.
Tracey Dylan Cain, 31, Jason Mulenax, 43, and Erik Gutierrez, 23, were charged via criminal complaint with possession with intent to distribute controlled substances and possession of firearms in furtherance of drug trafficking crimes. All three defendants made their initial appearances before U.S. Magistrate Judge Lee Ann Reno in Amarillo Monday afternoon. The federal government has moved to detain them based upon dangerousness and risk of flight.
According to court documents, the men were arrested Friday during searches of their respective residences.
Inside Mr. Cain’s home, law enforcement recovered large amounts of cocaine, methamphetamine, LSD, ecstasy, and marijuana, large amounts of U.S. currency, and numerous firearms, including a gold-plated .50 caliber pistol with a handmade suppressor. Prior to the search, Mr. Cain barricaded himself inside his home and refused to cooperate with officers.
Inside Mr. Gutierrez’s home, law enforcement recovered a powdery substance believed to be cocaine, a 10mm Glock pistol, and approximately $6,000 in cash. Inside Mr. Mulenax’s home, they recovered a green leafy substance believed to be marijuana, seven firearms, drug paraphernalia, and approximately $1,098 in cash.
During interviews, both Mr. Gutierrez and Mr. Mulenax admitted to selling drugs and named their supplier as Mr. Cain.
Law enforcement previously identified Mr. Mulenax as the alleged local president of the Bandidos, one of the nation’s most dangerous organized motorcycle gangs. The organization’s former national president, Jeffrey Fay Pike, was convicted of drug trafficking, racketeering, and other violent crimes in federal court in San Antonio in 2018 and later sentenced to life plus ten years in federal prison.
A criminal complaint is merely an allegation of criminal conduct, not evidence. All defendants are presumed innocent until proven guilty in a court of law.
If convicted, these men face up to life in federal prison.
The Federal Bureau of Investigation’s Dallas Field Office and the Texas Department of Public Safety conducted the investigation with help from the Drug Enforcement Administration, the Pampa Police Department, and the Gray County Sheriff’s Office. Assistant U.S. Attorney Anna Marie Bell is prosecuting the case.
Sureños Gang Member Sentenced to 120 Months in Federal Prison for Brandishing a Firearm While Committing a Carjacking and Illegal Possession of a FirearmRead the Press Release
Spokane – Joseph H. Harrington, Acting United States Attorney for the Eastern District of Washington, announced that Orlando Raul Rodriguez, a/k/a “Toon,” age 31, of Yakima, Washington, was sentenced today after having pleaded guilty on June 22, 2021, of brandishing a firearm while committing a crime of violence and for illegal possession of a firearm. United States District Judge Salvador Mendoza, Jr. sentenced Rodriguez to a 120-month term of imprisonment, to be followed by a 3-year term of court supervision after he is released from federal prison.
According to information disclosed during court proceedings, Rodriguez, a known member of the Sureños street gang, and three others lured the victim to a parking lot in downtown Yakima at approximately 9 a.m. on July 5, 2020. Rodriguez pointed a .22 caliber rifle at the victim and ordered the victim and his passenger out of the vehicle. Once the victim was out of the vehicle, one of Rodriguez’s accomplices drove the vehicle away with Rodriguez in the passenger seat. The victim and his passenger walked to a nearby business and called police. Officers from Yakima Police Department responded quickly and where able to locate and apprehend Rodriguez and his accomplices within an hour of the carjacking being reported.
Acting United States Attorney Harrington said, “The lengthy sentence reflects our commitment to prosecute those who seek to commit violent crimes against members of our community. The United States Attorney’s Office for the Eastern District of Washington commends the law enforcement officers with the Yakima Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives who investigated this case. Violent crime in our communities will not be tolerated.”
Yakima Police Department Chief Matt Murry said, “The partnership we share with federal law enforcement and this U.S. Attorney’s Office is invaluable. This case and others like it that are working through the system are examples of the commitment to use every tool available to hold those who commit violence accountable. Make no mistake about it, if you choose to engage in violence we WILL investigate and prosecute you.”
This case was investigated by the Yakima Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by Richard Burson and Todd Swenson, Assistant United States Attorneys for the Eastern District of Washington.
Six members of the Nine Trey Gangster Bloods gang plead guilty to RICO conspiracyRead the Press Release
ATLANTA – In a series of pleas, six members of the Nine Trey Gangsters (NTG) national criminal organization pleaded guilty to Racketeer Influenced and Corruption Organization (RICO) conspiracy charges.
“Members of the Nine Trey Gangsters showed a shocking indifference to human life, both in carrying out planned acts of violence, and in distributing drugs, including methamphetamine, throughout Georgia,” said Acting U.S. Attorney Kurt Erskine. “While the gang offered members a sense of belonging and the opportunity to make money through illicit drug sales, it was those same members who were most often the targets of violence from the gang based solely on the whims of the gang’s leaders.”
“The Department will continue to bring to justice the leaders and most violent members of dangerous criminal enterprises like the Nine Trey Gangsters,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “Removing those most responsible for the violence and drug dealing perpetrated by members and associates of violent street gangs like the Nine Trey Gangsters makes our neighborhoods and communities safer.”
“Members of Nine Trey Gangsters have plagued our streets with violence and drug trafficking for far too long,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “These pleas are an example of our commitment to dismantle organized, violent criminal enterprises. The community can rest assured these defendants won’t be on our streets for a very long time, thanks to the efforts of the FBI led Safe Streets Gang Task Force and its state and local partners.”
“As part of our commitment of ridding our facilities of criminal activity, we maintain a robust plan for identifying and managing those participating in gang activity from behind prison walls,” said Georgia Department of Corrections Commissioner Timothy C. Ward. “We appreciate the support and assistance of our law enforcement partners on every level, in our efforts to see that justice is being served on those who pose a threat to the safety of the public and the safe operations of our facilities.”
According to Acting U.S. Attorney Erskine, the charges and other information presented in court: The Nine Trey Gangsters are a national gang that started in the prisons of New York as a subset of the United Bloods Nation and has since spread throughout the East Coast and Southeast. The NTG are a criminal organization whose members and associates engage in acts of violence, including murder, assaults, robbery, firearms possession, witness tampering, obstruction of justice, drug trafficking, extortion, and other criminal activities, which took place in the Northern District of Georgia and elsewhere.
The Nine Trey Gangsters have a hierarchical structure their members throughout the country are subdivided into separate groups or “lines.” Each NTG member has a specific rank within the gang or a specific line, and this rank comes with specific duties and responsibilities. Each of the six defendants who pleaded guilty were part of the gang’s “Fire” line.
The following NTG gang members have pleaded guilty to count one of the second superseding indictment charging them and four others with RICO conspiracy:
Tyrone Clark, a/k/a “Tight Eye,” Joseph Riley, a/k/a “Joe Blow,” Gary Sartor a/k/a “G-Stacks,” and Patrick Caple a/k/a “Zoe,” all held the rank of “Fifth Floor” in the gang’s hierarchy, one of the highest ranks an individual can hold within a line of the gang. In those roles they were responsible for overseeing all of the members below them and reporting up to the gang’s national leadership.
- Tyrone Clark, a/k/a “Tight Eye,” Joseph Riley, a/k/a “Joe Blow,” Gary Sartor a/k/a “G-Stacks,” and Patrick Caple a/k/a “Zoe,” all held the rank of “Fifth Floor” in the gang’s hierarchy, one of the highest ranks an individual can hold within a line of the gang. In those roles they were responsible for overseeing all of the members below them and reporting up to the gang’s national leadership.
- Brandon Asberry a/k/a “B5,” held the rank of “Second Floor” in the gang’s hierarchy. In the role of Second Floor, Asberry was responsible for collecting dues form the gang’s members and overseeing the gang’s meetings or “nines.”
- Michael Jackson a/k/a “MJ,” held the rank of “Third Floor” in the gang’s hierarchy, where he was responsible for planning “wars” or conflicts with rival gangs and providing weapons to other NTG members.
Gary Sartor, Patrick Caple, and Michael Jackson were in Georgia Department of Corrections custody when they participated in the conspiracy.
Tyrone Clark, 40, of Marietta, Georgia, Joseph Riley, 37, of Atlanta, Georgia, Gary Sartor, 37, of Atlanta, Georgia, Patrick Caple, 56, of Glennville, Georgia, Michael Jackson, 27, of Chester, Georgia, and Brandon Asberry, 32, of Atlanta, Georgia have pleaded guilty to Count 1 of the Second Superseding Indictment, charging them and four others with RICO Conspiracy, in violation of 18 U.S.C. § 1962(d) for their involvement in planning, facilitating, and executing multiple acts of violence and participation in the gang’s drug trafficking activities, including the distribution of methamphetamine, marijuana and Xanax. Each defendant will be sentenced in the coming months by U.S. District Court Judge Amy Totenberg.
This case is being investigated by the Federal Bureau of Investigation as part of their FBI Safe Streets Task Force with assistance from the Georgia Department of Corrections.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Six Members of Nine Trey Gangster Bloods Gang Plead Guilty to RICO ConspiracyRead the Press Release
Last week, six members of the Nine Trey Gangsters (NTG) national criminal organization pleaded guilty to Racketeer Influenced and Corruption Organization (RICO) conspiracy charges.
According to court documents, the NTG is a national gang that started in the prisons of New York as a subset of the United Bloods Nation and has since spread throughout the East Coast and Southeast. The NTG is a criminal organization whose members and associates engage in acts of crime and violence including murder, assault, robbery, firearms possession, witness tampering, obstruction of justice, drug trafficking and extortion among other criminal activity.
“The Department will continue to bring to justice the leaders and most violent members of dangerous criminal enterprises like the Nine Trey Gangsters,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “Removing those most responsible for the violence and drug dealing perpetrated by members and associates of violent street gangs like the Nine Trey Gangsters makes our neighborhoods and communities safer.”
“Members of the Nine Trey Gangsters showed a shocking indifference to human life, both in carrying out planned acts of violence, and in distributing drugs, including methamphetamine, throughout Georgia,” said Acting U.S. Attorney Kurt Erskine for the Northern District of Georgia. “While the gang offered members a sense of belonging and the opportunity to make money through illicit drug sales, it was those same members who were most often the targets of violence from the gang based solely on the whims of the gang’s leaders.”
“Members of Nine Trey Gangsters have plagued our streets with violence and drug trafficking for far too long,” said Special Agent in Charge Chris Hacker of the FBI’s Atlanta Field Office. “These pleas are an example of our commitment to dismantle organized, violent criminal enterprises. The community can rest assured these six defendants won’t be on our streets for a very long time, thanks to the efforts of the FBI-led Safe Streets Gang Task Force and its state and local partners.”
“As part of our commitment of ridding our facilities of criminal activity, we maintain a robust plan for identifying and managing those participating in gang activity from behind prison walls,” said Commissioner Timothy C. Ward of the Georgia Department of Corrections. “We appreciate the support and assistance of our law enforcement partners on every level, in our efforts to see that justice is being served on those who pose a threat to the safety of the public and the safe operations of our facilities.”
“These Bloods members terrorized communities by committing murders and robberies with no regard for human life,” said Assistant Director Calvin Shivers of the FBI Criminal Investigative Division. “Today’s convictions provide a measure of justice, and the FBI will continue to dismantle these criminal enterprises and protect communities from gang violence.”
The NTG have a hierarchical structure in which members throughout the country are subdivided into separate groups or “lines.” Each NTG member has a specific rank within the gang or a specific line, and this rank comes with specific duties and responsibilities. Each of the six defendants who pleaded guilty were part of the gang’s “fire” line.
The following NTG gang members, all of Georgia, pleaded guilty to count 1 of the second superseding indictment charging them and four others with RICO conspiracy:
- Tyrone Clark, aka “Tight Eye”; Joseph Riley, III, aka “Joe Blow”; Gary Sartor aka “G-Stacks”; and Patrick Caple, aka “Zoe,” all held the rank of “Fifth Floor” in the gang’s hierarchy, one of the highest ranks an individual can hold within a line of the gang. In those roles they were responsible for overseeing all the members below them and reporting up to the gang’s national leadership.
- Brandon Asberry, aka “B5,” held the rank of “Second Floor” in the gang’s hierarchy. In this role, Asberry was responsible for collecting dues form the gang’s members and overseeing the gang’s meetings or “nines.”
- Michael Jackson, aka “MJ,” held the rank of “Third Floor” in the gang’s hierarchy. He was responsible for planning “wars” or conflicts with rival gangs and providing weapons to other NTG members.
Clark, 40, of Marietta; Jackson, 27, of Chester; Caple, 56, of Glennville; and Riley, 37, Sartor, 37, and Asberry, 32, all of Atlanta, pleaded guilty to the RICO conspiracy charge for their involvement in planning, facilitating and executing multiple acts of violence and participating in the gang’s drug trafficking activities, including the distribution of methamphetamine, marijuana, and Xanax. Sartor, Caple and Jackson were in Georgia Department of Corrections custody when they participated in the conspiracy.
The defendants face a statutory maximum penalty of life in prison. Jackson, Riley and Clark are scheduled to be sentenced on Feb. 1, 2022. The others will be sentenced in the coming months by U.S. District Court Judge Amy Totenberg in the Northern District of Georgia. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This case is being investigated by the FBI as part of the Safe Streets Task Force, with valuable assistance provided by the Georgia Department of Corrections.
Trial Attorney Kristen Taylor of the Criminal Division’s Organized Crime and Gangs Section and Assistant U.S. Attorneys in the Northern District of Georgia are prosecuting the case.
Rochester Man Pleads Guilty to Fentanyl Trafficking and Cuasing Non-Fatal OverdoseRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Shermart D. Merriwether, 26, of Rochester, NY, pleaded guilty before Chief U.S. District Judge Elizabeth A. Wolford to distribution of fentanyl. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Brett A. Harvey, who is handling the case, stated that the defendant was part of a group of individuals who ran a drug house at 192 Weaver Street in the City of Rochester. Merriwether and others sold quantities of fentanyl from the house in 2018 and 2019. As part of his guilty plea, the defendant admitted to selling a quantity of fentanyl to a 24-year-old female who suffered a non-fatal overdose at a gas station on East Ridge Road in Irondequoit, NY. The victim ingested the fentanyl and then lost consciousness while at a pump at the gas station. Irondequoit Ambulance personnel responded and gave the victim Narcan, after which she regained consciousness. Merriwether admitted that, if emergency personnel had not administered Narcan to the victim, there was a substantial risk that she would have died from fentanyl toxicity.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter; and the Rochester Police Department, under the direction of Chief Cynthia Herriott-Sullivan.
Sentencing is scheduled for January 12, 2022, at 2:30 p.m., before Chief Judge Wolford.
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Rochester Man Going to Prison for Selling FentanylRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Derek Torres a/k/a Bebe, 22, of Rochester, NY, who was convicted of conspiring to possess with intent to distribute 40 grams or more of fentanyl, was sentenced to serve 18 months in prison by U.S. District Judge David G. Larimer.
Assistant U.S. Attorney Cassie Kocher, who handled the case, stated that between July and November 28, 2018, the defendant conspired with others to distribute cocaine, heroin, and fentanyl in the area of Wilkins Street in Rochester. On July 18, 2021, Torres sold 10 wax envelopes containing heroin and fentanyl and 10 zip-loc baggies containing cocaine to an undercover law enforcement officer in exchange for $200 in cash.
The sentencing is the result of an investigation by the New York State Police, under the direction of Major Barry Chase; the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito; and the Monroe County District Attorney’s Office, under the direction of District Attorney Sandra Doorley.
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Richland Man Extradited from Kazakhstan Pleads Guilty to Attempted Production of Child PornographyRead the Press Release
Spokane – Joseph H. Harrington, Acting United States Attorney for the Eastern District of Washington, announced that Trent Drexel Howard, age 50, of West Richland, Washington, pleaded guilty on September 23, 2021 pursuant to a plea agreement to one count of Attempted Production of Child Pornography. In the plea agreement, Howard and the United States agreed to a sentence of 23 years in prison. District Judge Salvador Mendoza, Jr. will decide whether to accept the plea agreement during the sentencing hearing set for January 6, 2022.
According to court documents, beginning on or about March 2008 and continuing through April 2016, Howard knowingly attempted to use fourteen different children to take part in sexually explicit conduct for the purpose of producing visual depictions of such conduct. For years, Howard used cameras hidden in bathrooms and bedrooms of his residence, within the Eastern District of Washington, to capture video footage of the minor victims in nude and semi-nude states. Federal agents discovered the video footage after execution of a search warrant authorizing the search of evidence of child pornography at Howard’s residence. Agents seized over 100 electronic devices. The investigation began, however, when Howard distributed over 168 suspected child pornography files to an undercover agent over a publicly accessible, Internet based, file-sharing network. Forensic review of the seized devices led to the discovery of the hidden camera footage and later identification of at least fourteen minor victims.
According to court documents, Howard was working in Kazakhstan when federal agents executed the search warrant at his residence in Richland, Washington. After learning of the investigation, Howard stayed in Kazakhstan and was eventually arrested by Kazakhstan authorities on September 12, 2019. A Kazakh judge ordered Howard be detained pending an extradition request from the United States. According to the Department of Justice’s Office of International Affairs, Howard’s removal from Kazakhstan is the first extradition from that country by the United States.
Acting United States Attorney Harrington said the United States Attorney’s Office for the Eastern District of Washington, said, “Production of child pornography is a despicable crime. The United States Attorney’s Office for the Eastern District of Washington will continue to aggressively prosecute those who exploit children. I commend our state, local and federal law enforcement partners who investigated this case.”
This case was pursued as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States 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. The Project Safe Childhood Initiative (“PSC”) has five major components:
· Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue children;
· Participation of PSC partners in coordinated national initiatives;
· Increased federal enforcement in child pornography and enticement cases;
· Training of federal, state, and local law enforcement agents; and
· Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
This case was investigated by the Spokane Resident Office of the Federal Bureau of Investigation, with the assistance of the Southeast Regional Internet Crimes Against Children Task Force, which includes detectives from the Kennewick and Richland Police Departments, and the Moses Lake Police Department. This case was prosecuted by Ann T. Wick, Assistant United States Attorney for the Eastern District of Washington.
Randolph County man sentenced to more than 13 years for meth distribution and firearms violationRead the Press Release
ELKINS, WEST VIRGINIA – Joshua Jesse White, of Montrose, West Virginia, was sentenced today to 160 months of incarceration for drug and firearms charges, Acting U.S. Attorney Randolph J. Bernard announced.
White, 40, pled guilty to one count of “Possession with Intent to Distribute Methamphetamine” and one count of “Possession of a Firearm in Furtherance of a Drug Crime” in September 2020. White admitted to having more than 5 grams of methamphetamine, also known as “ice” and “crystal meth” in October 2018 in Randolph County. White also admitted to having a .22 caliber revolver with him during the drug crime.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Mountain Region Drug and Violent Crimes Task Force investigated.
U.S. District Judge Thomas S Kleeh presided.
Princeton Man Pleads Guilty to Federal Drug CrimeRead the Press Release
BLUEFIELD, W.Va. – Charles Boyett Mitchell, Jr., 35, of Princeton, pleaded guilty today to distribution of a quantity of cocaine.
According to court documents, Mitchell sold a quantity of cocaine to a confidential informant in Princeton on May 7, 2018. As part of the plea, Mitchell also admitted to distributing cocaine and methamphetamine on three other occasions, and to possessing a quantity of methamphetamine that he intended to distribute.
Mitchell faces up to 20 years in prison when he is sentenced on January 10, 2022.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Southern Regional Drug and Violent Crime Task Force. The Southern Regional Drug and Violent Crime Task Force is composed of officers from the West Virginia State Police, the Mercer County Sheriff’s Department, the Bluefield Police Department and the Princeton Police Department.
Senior United States District Judge David A. Faber presided over the hearing. Assistant United States Attorney Timothy D. Boggess is handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 1:21-cr-00089.
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Prentiss Man Sentenced to over Seven Years in Prison for Selling Firearms to a Convicted FelonRead the Press Release
Hattiesburg, Miss. – Marquis Jamal Buckley, 27, of Prentiss, was sentenced by U.S. District Judge Taylor B. McNeel to serve 87 months in the custody of the Bureau of Prisons, followed by three years of supervised release, for selling firearms to a convicted felon, announced Acting U.S. Attorney Darren J. LaMarca and Special Agent in Charge Kurt Thielhorn of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
According to court documents, on May 4, 2017, Buckley arranged to sell several firearms at an apartment in Hattiesburg. Buckley sold a Davis Industries .38 caliber derringer, a H&R .22 caliber revolver, and one FIE .22 caliber revolver to an individual for $600. Buckley had been previously advised by the individual that he was a convicted felon and was prohibited from possessing firearms.
Buckley pled guilty on April 7, 2021, to selling firearms to a convicted felon.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case.
Assistant U.S. Attorney Andrea Jones prosecuted the case.
Pope County White Supremacist Operative Convicted of RacketeeringRead the Press Release
LITTLE ROCK—A two-week federal jury trial has resulted in the conviction of the financial backer of a white supremacist gang for his involvement in a racketeering and drug conspiracy. Marcus Millsap, 54, of Little Rock, was found guilty on all counts when the jury returned their verdict late Friday afternoon. United States District Judge Brian S. Miller presided over the trial, and Judge Miller will sentence Millsap later.
Millsap was indicted in September 2019 for his involvement in a white supremacist prison gang known as the “New Aryan Empire,” or NAE. NAE’s slogan is “to the dirt,” referring to the fact that members must remain in the organization until they die. Millsap was charged with, and ultimately convicted of, conspiracy to violate racketeering influenced corrupt organization laws, or RICO, attempted murder in aid of racketeering, and drug conspiracy. Evidence at trial established that Millsap and others used the NAE as a corrupt organization to conduct racketeering activities including drug distribution, solicitations of murder, and attempted murder.
At trial, the prosecution presented evidence that in May 2014, Millsap sold methamphetamine to an individual named Bruce Hurley, who was working as a confidential informant. Once Hurley completed the controlled purchase of methamphetamine and reported back to law enforcement, a traffic stop located more methamphetamine in Millsap’s vehicle. Millsap was convicted in the methamphetamine case, and while on an appeal bond, Millsap solicited members and associates of NAE to kill Hurley for his work in cooperating with law enforcement against Millsap. In January 2016, other NAE members attempted to murder Hurley. That attempt failed, and NAE members and associates continued attempting to arrange Hurley’s death. This conduct resulted in Millsap’s conviction Friday for attempted murder in aid of racketeering.
Another 54 defendants were indicted in the case, all of whom have pleaded guilty except for Millsap and Troy Loadholt, who is currently a fugitive. While some defendants are still awaiting sentencing, the highest sentence so far has been given to Wesley Gullett, who was the President of the New Aryan Empire. Gullett was sentenced to 35 years imprisonment.
“The United States will not tolerate the vile and outrageous crimes committed by members and associates of the New Aryan Empire or any other white supremacist group,” said Jonathan D. Ross, Acting United States Attorney for the Eastern District of Arkansas. “If you are a member or associate of this or any other violent criminal organization, know that the United States will stop at nothing to dismantle and disrupt those who pose a threat to our communities and the future of our children.”
The statutory penalty for conspiracy to violate racketeering laws is up to life imprisonment. The statutory penalty for attempted murder in aid of racketeering is up to 10 years imprisonment. The statutory penalty for conspiracy to possess with intent to distribute methamphetamine, based on the amount of methamphetamine involved in the case, is a minimum of 15 years and up to life imprisonment.
The investigation included the Bureau of Alcohol, Tobacco, and Firearms; the Drug Enforcement Administration; the Federal Bureau of Investigation; the Pope County Sheriff’s Office; the Russellville Police Department; the U.S. Marshals Service; the U.S. Postal Inspection Service; the Arkansas State Police; 5th Judicial Drug Task Force; the Conway Police Department, and the Arkansas Army National Guard’s Counterdrug Unit. The case was prosecuted by Assistant United States Attorneys Liza Brown and Stephanie Mazzanti.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Pharmacy Owner Pleads Guilty to Federal Charge Involving theVaccination of Minors Under 12 with the Pfizer-BioNTech Covid-19 VaccineRead the Press Release
SAN JUAN, Puerto Rico – Liz Ann Banchs, the owner and president of Farmacia Gabriela, Inc. was charged and pleaded guilty on September 24, 2021 to participating in a felony conspiracy to convert government property and to commit health care fraud in connection with the illegal vaccination of minors between the ages of 7 to 11 with the Pfizer-BioNTech COVID-19 vaccine. The announcement was made by W. Stephen Muldrow, United States Attorney for the District of Puerto Rico and Scott Lampert, Special Agent in Charge for the United States Department of Health and Human Services, Office of Inspector General (HHS-OIG), New York Regional Office.
From approximately May 28, 2021 through June 22, 2021, Liz Ann Banchs and employees of Farmacia Gabriela, Inc.’s pharmacy in Juana Díaz, Puerto Rico, conspired to knowingly and willfully administer the Pfizer-BioNTech COVID-19 vaccine to children 11 years old or younger and to submit corresponding Medicaid claims to MC-21. A total of twenty-four children aged 7-11 were administered the Pfizer-BioNTech COVID-19 vaccine, at full dosage, without lawful authority as a part of the conspiracy.
The Centers for Disease Control and Prevention (“CDC”) COVID-19 Vaccination Program required eligible pharmacies, like Farmacia Gabriela, Inc., to comply with all requirements established by the United States Food and Drug Administration (“FDA”), including the Emergency Use Authorization “EUA” which permitted the administration of the Pfizer-BioNTech COVID-19 vaccine to children aged 12 and older. Importantly, the EUA has not approved the administration of the Pfizer-BioNTech COVID-19 vaccine to children 11 years old and younger. As a result, the administration of the vaccine to children aged 7-11 represents an unauthorized and unlawful administration of the vaccine. The Pfizer-BioNTech COVID-19 vaccine batches at issue were the property of the United States government and were illegally converted without authority from the United States. Similarly, Farmacia Gabriela, Inc. was not permitted to submit claims to MC-21, the Pharmacy Benefit Manager for Medicaid in Puerto Rico, for the unlawful and unauthorized administration of the Pfizer-BioNTech COVID-19 vaccine to children aged 7-11.
Banchs’ unlawful activity was identified quickly by the Puerto Rico Department of Health and the COVID-19 vaccination program at Farmacia Gabriela, Inc. was subsequently suspended. No serious medical conditions have been identified to date as a result of the illegal vaccination program and all funds received for the corresponding Medicaid billings have been voluntarily returned to the United States. In conjunction with pleading guilty, Banchs has voluntarily agreed to be excluded as a provider for Medicare, Medicaid, and all federal health care programs for a period of five years.
“Pharmacists rank among the most trusted professionals,” said U.S. Attorney Muldrow. “This individual used her special access to illegally vaccinate children under the age of 12 years old putting their health at risk. The Department of Justice will continue to work with its law enforcement partners to ensure the public receives safe and effective vaccines.”
Special Agent in Charge Scott J. Lampert said, “HHS-OIG and our law enforcement partners are committed to helping the country get through the COVID-19 public health crisis, but the safety of our citizens comes first, especially when we are dealing with keeping children safe. There are clear guidelines set forth by our nation’s public health agencies regarding who is eligible to receive the COVID-19 vaccine at this time. We will not stray from our mission to protect the public and the federal health care programs that serve them.”
Banchs faces a maximum penalty of 5 years in prison, a fine of up to $250,000, and three years of supervised release.
The case was investigated by the HHS-OIG with the collaboration of the Puerto Rico Department of Health Office of Investigations, the Puerto Rico Medicaid Fraud Control Unit, the Puerto Rico Department of Justice Economic Crimes Unit, the United States Food and Drug Administration, Pfizer Global Security & Compliance Division, and the MC-21 Benefit Integrity Unit. The case was prosecuted by Assistant United States Attorney Seth A. Erbe, Chief of the Financial Fraud and Public Corruption Section at the United States Attorney’s Office.
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Northeastern Iowa Man Sentenced to Federal Prison for Guiding and Outfitting Illegal Deer HuntsRead the Press Release
A Northeastern Iowa man who guided and outfitted illegal deer hunts was sentenced on September 23, 2021, to federal prison. Cory Gene Fritzler, age 46, from Lansing, Iowa, received the prison term after a March 18, 2021 guilty plea to one count of conspiracy.
Evidence at Fritzler’s plea, sentencing, and other hearings established that Fritzler operated a guiding and outfitting business in Northeastern Iowa known as “NE Iowa Outfitters.” The Northeastern Iowa region is nationally recognized as a prime geographic area for hunting mature whitetail buck deer. Hunters travel to Northeastern Iowa from all over the United States to hunt high value, mature buck deer with large antlers. The demand for out-of-state hunting licenses, however, greatly exceeds the supply.
During the 2015 hunting season, Fritzler agreed to conduct an illegal hunt with two hunters from Florida who were actually undercover law enforcement officers. The agreed-upon cost of the illegal five-day hunt was $3,450 per person, plus an additional $500 per person for illegal licenses that Fritzler provided. Fritzler recruited others to participate in the illegal hunting scheme by applying for and receiving Iowa hunting licenses and tags to cover the deer.
That same hunting season, Fritzler legally provided guiding and outfitting services to two non-resident hunters from Louisiana. In 2015, one of the hunters shot a valuable “double drop tine buck” but wounded this deer in its backside only. When the hunters did not obtain out-of-state licenses the next year to obtain this deer, known as “the Monster Buck,” Fritzler accepted $3,450 from the hunters to guide and outfit their illegal hunts during the 2016 hunting season. Fritzler instructed the Louisiana hunters to tell people, falsely, that they were hunting in a public area in Wisconsin to hide the fact that they were illegally hunting on Fritzler's ground in Iowa. When questioned by law enforcement, Fritzler and the Louisiana hunters falsely stated they were hunting in Wisconsin. In the ensuing months, Fritzler later encouraged the Louisana hunters to continue to “stick to their story” as law enforcement was investigating the case.
Fritzler was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Fritzler was sentenced to two months’ imprisonment, two months of home detention, and fined $5,000. Fritzler must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
Fritzler 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 Tim Vavricek and investigated by the United States Fish and Wildlife Service, the Iowa Department of Natural Resources, and the Florida Fish and Wildlife Conservation Commission.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-1034.
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New York Man Sentenced for Heroin and Crack TraffickingRead the Press Release
BANGOR, Maine: A Rochester, New York man was sentenced today in U.S. District Court in Bangor for conspiring to distribute heroin and cocaine base, Acting U.S. Attorney Donald E. Clark announced.
U.S. District Judge John A. Woodcock, Jr. sentenced Quinton Spinks, aka “Q,” aka “Travis,” 37, to 115 months in prison and three years of supervised release. Spinks pleaded guilty in August 2019.
According to court records, between November 2016 and September 2017, Spinks conspired with others from Rochester and central Maine to distribute heroin and crack. The drugs were acquired in Rochester and Spinks and others distributed the drugs in Augusta and surrounding communities.
The Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Drug Enforcement Administration; and the Maine Drug Enforcement Agency investigated the case, with significant assistance provided by the Maine State Police. The case is being prosecuted as part of the Department of Justice’s program to combat the opioid epidemic.
Miami Man Sentenced for Healthcare Fraud Kickback SchemeRead the Press Release
ABINGDON, Va. – A Miami, Florida man was sentenced last week to five months in prison and five months of home confinement for conspiring with another man to pay and receive kickbacks. In addition to home confinement, he will pay $66,000 in monetary penalties and will be permanently excluded from participating in federal healthcare programs.
According to court documents, Michael Olshavsky, conspired to receive and pay kickbacks to encourage urine drug screen testing performed by a lab in Florida. Some of the testing referred to the lab was paid for by Medicare, Virginia Medicaid, and TennCare. Co-conspirator John Linke was sentenced last week to three months home confinement.
“Using an opioid treatment practice to defraud federal and state health care programs is unconscionable and a serious federal crime,” Acting U.S. Attorney Daniel P. Bubar said today. “Investigating and prosecuting those who seek to commit health care fraud and illegally profit from the opioid crisis remains a top priority of this office. I appreciate the great work and assistance from our many state and federal partners, whose hard work brought Olshavsky to justice.”
“Healthcare providers who defraud the system are not only stealing from Medicaid and Medicare, but they are also stealing from taxpayers,” said Attorney General Mark Herring. “Virginians should be able to trust their healthcare providers to make decisions in a patient’s best interest, without any kind of outside influence or monetary gain. I want to thank my Medicaid Fraud Control Unit for their hard work on this case, as well as our local, state, and federal partners who continue to help my team hold individuals accountable when they defraud our healthcare system.”
“Those who seek to profit from the opioid crisis through illegal schemes make the problem worse,” said Special Agent in Charge Mark S. McCormack, FDA Office of Criminal Investigations Metro Washington Field Office. “We will continue to investigate and bring to justice those who, through their dishonesty, jeopardize the public health.”
Between November 30, 2015, and May 30, 2016, Linke was employed at an office-based opioid treatment program that used medication-assisted treatment for patients suffering from substance use disorder. In exchange for being paid $5,000 per month, Linke arranged for the clinic to send urine drug screen samples to the laboratory in Florida where Olshavasky worked. These payments were disguised as commissions paid to Linke as an “independent sales representative” for Olshavsky’s company, Encore Holdings LLC. Olshavasky paid Linke at least $16,000 through Encore Holdings to direct WRC’s drug screening business to the Florida lab, although Linke was not actually an independent sales representative for Encore, and he did not act as such.
The Virginia Medicaid Fraud Control Unit, the Drug Enforcement Administration, the Food and Drug Administration Office of Criminal Investigations, the Department of Health and Human Services—Office of Inspector General, the Tennessee Bureau of Investigation, and the Virginia State Police investigated the case.
Special Assistant United States Attorney Janine M. Myatt and Assistant United States Attorneys Randy Ramseyer and Whit Pierce prosecuted the case for the United States.
Media Advisory: Press Conference to Announce Project Safe Neighborhood Gun Charges and Arrests in Waterloo, IowaRead the Press Release
CEDAR RAPIDS, IA – There will be a press conference held on Wednesday, September 29, 2021, at 11:00 a.m. at the United States Attorney’s Office in the federal courthouse, 111 Seventh Ave SE, in Cedar Rapids. Representatives from the United States Attorney’s Office and federal and local law enforcement agencies, including the Waterloo Police Departments, the Federal Bureau of Investigation, the Bureau of Alcohol Tobacco, Firearms, and Explosives, and the United States Marshal’s Service will be present at the press conference.. The purpose of the press conference is to announce more than a dozen recent Project Safe Neighborhood gun charges and arrests in Waterloo.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime
Event Details
When: September 29, 2021
Where: Cedar Rapids Federal Courthouse (United States Attorney’s Office), 111 Seventh Ave. SE
Time: 11:00 a.m.
A press release will be provided and interview opportunities will be available.
Please RSVP to Tony Morfitt at [email protected] if you plan to attend.
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Manhattan U.S. Attorney Announces $72.6 Million Settlement of Fraud Lawsuit Against Wells Fargo Bank for Overcharging Foreign Exchange Customers over Seven YearsRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that the United States has simultaneously filed and settled a civil fraud lawsuit against Wells Fargo Bank, N.A. (“Wells Fargo” or the “Bank”) alleging that it violated the Financial Institutions Reform Recovery and Enforcement Act (“FIRREA”) by fraudulently overcharging hundreds of commercial customers, many of them small and medium-sized businesses and federally-insured financial institutions, who used the Bank’s foreign exchange (“FX”) service. Specifically, the United States alleged that, from 2010 through 2017, Wells Fargo FX sales specialists defrauded 771 customers by systematically charging them higher markups on FX transactions than they represented the Bank would charge, and concealing these overcharges through various misrepresentations and deceptive practices.
As part of the settlement, approved today by U.S. District Judge John G. Koeltl, Wells Fargo will pay a total of approximately $72.6 million, with approximately $35.3 million having been paid directly to the 771 customers collectively as restitution and approximately $37.3 million to be paid to the United States as civil penalties under FIRREA and as asset forfeiture. Wells Fargo also made extensive admissions of certain conduct alleged in the Government’s complaint, including that many FX sales specialists overcharged hundreds of commercial customers by applying larger sales margins or spreads than they represented they would, and that, in certain instances, when customers contacted the Bank to inquire about higher-than-agreed-upon pricing, FX sales specialists would give customers false explanations for the inflated prices.
U.S. Attorney Audrey Strauss said: “We all put trust in our banking institutions to deal with us honestly, fairly, and transparently when we are their customers. For the better part of a decade, Wells Fargo abused this trust, using tricks, false information, and other deceptive practices to fraudulently overcharge customers who used the Bank’s foreign exchange service. This settlement, which requires Wells Fargo to make its customers whole for their losses and pay a substantial penalty, sends a strong message to the banking industry that financial institutions who take advantage of their customers will be held to account.”
As alleged in the Government’s complaint:
During 2010 through 2017 (the “Covered Period”), Wells Fargo offered FX services to commercial customers located throughout the United States, such as converting the customers’ US dollars into foreign currency for outgoing wire transfers and converting incoming wire transfers of foreign currency into U.S. dollars. Wells Fargo profited from these transactions by marking up the prices on currency it was selling to and marking down the prices on currency it was buying from its customers. Wells Fargo employees referred internally to this currency mark-up as a “spread” or “sales margin.” Wells Fargo FX sales specialists frequently entered into agreements with the Bank’s customers pursuant to which they represented that the Bank would charge specific spreads or sales margins on their FX transactions. These agreements, referred to internally as “fixed-pricing agreements,” were both written and oral in nature.
During the Covered Period, Wells Fargo defrauded 771 of its commercial customers with fixed-pricing agreements, many of them small or medium-sized companies and federally-insured financial institutions, by falsely representing to the customers that the Bank would charge specific fixed FX spreads on FX transactions, when, in fact, Wells Fargo was surreptitiously and systematically charging significantly higher spreads and pocketing tens of millions of dollars in ill-gotten FX revenue. By financially incentivizing its FX sales specialists to overcharge FX customers while failing to take steps to ensure that FX sales specialists honored pricing representations, Wells Fargo created an atmosphere in which employees openly joked about and celebrated taking advantage of the Bank’s customers.
Wells Fargo FX sales specialists used a variety of misrepresentations and deceptive practices to defraud customers. For example, instead of applying agreed-upon fixed spreads to customers’ outgoing wires, FX sales specialists would charge inflated spreads that were as large as the FX sales specialists thought they could get away with. Furthermore, rather than charging the agreed-upon fixed spread to the FX market rate at the time the outgoing wire was converted, FX sales specialists would select the best rate for the Bank and worst rate for the customer from the FX price fluctuations from the beginning of the trading day until the time of the transaction. This practice was referred to internally as “Range of Day” Pricing.
In addition, FX sales specialists sometimes would give customers fictitious underlying FX market rates and spread calculations to create the false impression that Wells Fargo was complying with pricing representations when that was not the case. Other times, FX sales specialists would make intentional “errors” to the exchange rate given to a customer to make the Bank’s spread much larger. If caught, the FX sales specialist would falsely claim that digits in the price had been mistakenly transposed. This practice was known as the “Big Figure Trick.”
FX sales specialists also at times would charge a customer different spreads depending on which customer representative initiated the transaction. Because Wells Fargo’s online FX service tracked user identities, FX sales specialists would impose larger spreads on transactions initiated by those representatives thought to be less sophisticated or experienced in FX trading. This practice was known internally as “User-Based Pricing.”
FX sales specialists frequently would apply an even more egregious form of Range of Day pricing to customers’ incoming wire transfers, called “BSwift” wires. Because Wells Fargo generally did not notify customers when they received incoming wires of foreign currency or when those wires were converted, FX sales specialist could wait until the end of the day and select the best rate for the Bank and worst rate for the customer from price fluctuations throughout the entire trading day. One FX specialist called this practice the “BSwift Pinata.”
As part of the settlement, Wells Fargo admitted and accepted responsibility for the following conduct:
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- During the Covered Period, many FX sales specialists overcharged hundreds of commercial customers by applying larger sales margins or spreads to customer FX transactions than they represented they would.
- Wells Fargo received millions of dollars from customers to which the Bank was not entitled.
- FX sales specialists internally discussed and even celebrated transactions resulting in larger FX spreads than agreed to with customers or transactions generating large FX revenue. For example, FX sales specialists on Wells Fargo’s San Francisco FX desk would celebrate transactions with large spreads or sales margins by ringing a bell located on the trading floor. Other FX sales specialists would use expressions such as, “back the truck up,” and “when in doubt, spread them out,” to jokingly describe how Wells Fargo and its FX sales specialists were making money on transactions by charging large FX spreads, including larger FX spreads than agreed to with customers.
- Wells Fargo’s own internal CMR database indicated that FX sales specialists were charging customers FX spreads that were higher than those the Bank had represented. Certain CMR notes reflected that while a customer thought it would receive the rate that the Bank had represented to the customer, the Bank in fact charged the customer undisclosed higher spreads. For example, an FX sales specialist stated in one CMR note concerning Customer A that there was an “agreement w/the customer” to charge “25 pips [points in percentage]on spot trades” but that the Bank would “take 30-35 . . . if possible.”
False Information
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- In certain instances, when customers contacted the Bank to inquire about higher-than-agreed-upon pricing, FX sales specialists would give false explanations for the prices such as “time fluctuations” or other supposed events in the market.
- In a few cases, FX sales specialists provided customers false transaction data. In one instance, an FX sales specialist represented to Customer E that it would charge a spread of 5 basis points on certain BSwift wire transactions. Contrary to this agreement, the Bank actually charged higher spreads on a series of FX transactions. Then, in email correspondence with representatives of Customer E, the FX sales specialist provided inaccurate market rate information to the customer to make the FX spread falsely appear consistent with the agreement terms.
The Big Figure Trick
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- For some customers, FX sales specialists also used what they internally called the “big figure trick” or the “transposition error game” to increase the FX sales margin by switching digits in the price of the transactions in a way that would cost customers more money. For example, if the correct hypothetical price to purchase a Euro was 1.0123 dollars, an FX sales specialist would use the big figure trick to switch the price to 1.0213 dollars, thus taking more spread (in this example, an additional 89 basis points) from the customer.
- If caught by the customer, the FX sales specialist would claim that it was simply a mistake of adjusting the wrong digit in the price. One FX sales specialist explained, “You can play the transposition error game if you get called out.” Another FX sales specialist noted to a colleague about a previous transaction that a customer “didn’t flinch at the big fig the other day. Want to take a bit more?”
User-Based Pricing
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- At times, Wells Fargo’s FX sales specialists charged the same customers different spreads depending on which representative of the customer happened to be involved in executing the trade. Specifically, Wells Fargo’s FX sales specialists would charge larger spreads on transactions requested by certain customer representatives thought to be less sophisticated or experienced in FX trading.
BSwift Piñata
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- As noted above, because Wells Fargo generally did not provide immediate notice to customers when they received incoming wires, known as BSwifts, Wells Fargo’s FX sales specialists took advantage of this time delay to charge higher spreads than the Bank had represented it would.
- An FX sales specialist in a written instant message to another sales specialist referred to the Bank’s pricing of BSwift wire transfers as the “BSWIFT pinata.” An additional FX sales specialist noted in a recorded call that she preferred to book her own BSwifts to stretch the spread and could take more spread because she was doing the pricing herself. She observed that she could “dance around it” if the customer called with questions.
- Another FX sales specialist observed in an internal email communication that customers would not notice higher spreads on BSwift wires. He wrote, after noting that he “bumped spreads up a pinch,” that “these clients who are in the mode of just processing wires will most likely not notice this slight change in pricing” and that it “could have a very quick positive impact on revenue without a lot of risk.”
Financial Incentives and Lack of Meaningful or Effective Oversight
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- Wells Fargo incentivized its FX sales specialists to generate FX sales revenue by tying their bonuses exclusively to the amount of sales revenue they generated for the Bank from FX transactions. Specifically, before 2017, Wells Fargo paid bonuses to FX sales specialists based upon the percentage of the FX sales revenue that each FX sales specialist and FX desk generated. Each year during the Covered Period, Wells Fargo paid hundreds of thousands of dollars in bonuses to various FX sales specialists based on FX revenue. Some FX sales specialists received bonus compensation exceeding $1 million in a single year.
- Prior to 2017, Wells Fargo failed to put meaningful or effective safeguards in place to ensure that FX sales specialists priced customer FX transactions in accordance with the terms represented in fixed-pricing agreements. For example, during the Covered Period, Wells Fargo: (i) had no meaningful or effective policies or procedures governing how fixed-pricing agreements should be negotiated, memorialized, recorded, or implemented; (ii) provided no training to FX sales specialists concerning fixed-pricing agreements; (iii) had no meaningful or effective process to systematically track the existence or terms of fixed-pricing agreements; (iv) had no systemic process in place to monitor whether FX sales specialists were pricing FX transactions in a manner that was consistent with fixed-pricing agreements; (v) did not implement any electronic safeguards that would have prevented FX sales specialists from pricing transactions in a manner that deviated from fixed-pricing agreements; and (vi) did not conduct any audits or reviews of FX transactions to determine whether FX pricing matched fixed-pricing agreements until 2017.
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In the settlement, Wells Fargo acknowledged that it took adverse employment actions against more than 20 Wells Fargo employees who were involved in the FX business, including various disciplinary actions and separation of employment, and affirmed that it has taken various steps in an effort to comply with industry FX best practices.This matter was initially brought to the Government’s attention by a whistleblower who filed a confidential declaration with the U.S. Department of Justice pursuant to the Financial Institutions Anti-Fraud Enforcement Act.
Ms. Strauss praised the investigative work of the FBI.
The case is being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorneys Lawrence H. Fogelman and Pierre G. Armand are in charge of the case, and Assistant U.S. Attorney Alex Wilson of the Money Laundering and Transnational Criminal Enterprises Unit is responsible for the forfeiture aspects of the case.
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Man admits burglary on Fort Peck Indian ReservationRead the Press Release
GREAT FALLS – A Mississippi man accused of breaking into a residence on the Fort Peck Indian Reservation and threatening individuals admitted to charges today, Acting U.S. Attorney Leif M. Johnson said.
Dejarreh La’Kean Talley, also known as “DJ” Talley, 23, of Philadelphia, Mississippi, pleaded guilty to burglary. Talley faces a maximum 20 years in prison, a $50,000 fine and three years of supervised release.
Chief U.S. District Judge Brian M. Morris presided. Chief Judge Morris set sentencing for Dec. 30. Talley was detained pending further proceedings.
The government alleged in court documents that at about 5:30 a.m. on June 30, 2020, law enforcement responded to a 911 call that someone had kicked in the door of a Poplar residence, on the Fort Peck Indian Reservation. An individual at the residence reported that Talley had kicked in a door, held a baseball bat in his hands, punched the individual in the face and threatened others. Law enforcement interviewed Talley, who admitted to kicking in the door but denied having a bat, striking the individual and threatening anyone.
Assistant U.S. Attorney Ethan R. Plaut is prosecuting the case, which was investigated by the FBI and Fort Peck Law Enforcement.
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Madera County Woman Sentenced for Dealing Heroin that Caused Overdose DeathRead the Press Release
FRESNO, Calif. — Ashley Michelle Hill, 33, of Coarsegold, was sentenced today to 11 years and three months in prison for selling heroin that resulted in the overdose death of another Coarsegold resident, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Aug. 22, 2019, Hill and Georgia Nicole Dean, 38, of Coarsegold, drove to the victim’s residence because he had contacted Dean asking for heroin. They arrived after midnight and met with the victim outside his residence on the street. Hill gave approximately .3 grams of heroin and a syringe to Dean, who then gave it to the victim. The victim died later that day as a result of using that heroin.
On April 19, 2021, Dean was sentenced to 12 years in prison for distributing heroin.
This case was the product of an investigation by the Madera County Sheriff’s Office, the Fresno Police Department, and the Drug Enforcement Administration. Assistant U.S. Attorneys Kathleen A. Servatius and Justin J. Gilio prosecuted the case.
Jury Convicts Clarksville Doctor of 36 Counts Related to Pill Mill OperationRead the Press Release
NASHVILLE – A federal jury on Friday, completed its deliberations in the case of Dr. Samson Orusa, 59, of Clarksville, Tennessee, who was convicted last month of federal drug charges, healthcare fraud, money laundering, and illegally distributing oxycodone at his medical practice, announced Acting U.S. Attorney Mary Jane Stewart for the Middle district of Tennessee.
After finding Orusa guilty in August of 36 of the 45 counts, the jury returned on Friday to hear evidence supporting the forfeiture of the ill-gotten proceeds of the crimes. After deliberations, the jury determined that five bank accounts, one annuity and one 401K, with a combined value of more than $918,000 was subject to forfeiture, and also a 2017 Mercedes Benz.
Following a two-week trial, Dr. Orusa was convicted on August 13, 2021, of maintaining a drug-involved premise, 13 counts of unlawfully distributing controlled substances without a legitimate medical purpose and outside the bounds of professional medical practice, 13 counts of health care fraud, seven counts of money laundering, and two counts of laundering more than $10,000 of criminally derived property. The jury acquitted Dr. Orusa of nine counts of illegal distribution of oxycodone.
“Physicians like Dr. Orusa who violate their oath and engage in such reckless conduct and contribute to the opioid epidemic facing this nation can expect to bear the full force and effect of the federal justice system,” said Acting U.S. Attorney Stewart. “I commend our prosecutors and law enforcement partners for their exceptionally hard work in thoroughly investigating this case and preparing it for a successful prosecution.”
Dr. Orusa was initially charged in a 45-count indictment handed down in December 2018. The evidence at trial established that Dr. Orusa, while operating a pain clinic in Clarksville, routinely prescribed oxycodone and other Schedule II controlled substances without obtaining the patient’s prior medical history, performing a physical examination, or ordering diagnostic tests of patients. Evidence also established that two patients overdosed while inside Dr. Orusa’s clinic.
Trial testimony from former employees and patients described a standing room only lobby area at Orusa’s clinic, along with an unsanitary public bathroom. Patients with insurance coverage were forced to visit the clinic four to six times a month and undergo cortisone shots to receive pain medication and Dr. Orusa threatened to withhold pain management prescriptions from those who refused the injections. Cash paying patients generally were not required to accept injections in order to receive prescriptions. Due to the excessive number of controlled substance prescriptions, Walmart and CVS pharmacies refused to fill prescriptions written by Dr. Orusa.
Other evidence and testimony established that Orusa conducted financial transactions designed to disguise the nature of the unlawful activity and that he transferred proceeds of the unlawful activity to foreign bank accounts; used clinic proceeds to make a $12,451.00 down payment on a Mercedez-Benz; and wrote a check for the purchase of $100,000 in securities.
In one instance, Dr. Orusa billed Medicare for services he claimed to have provided to 57 patients in a single day despite being at the clinic for less than six hours.
Orusa faces up to 20 years in prison on each drug-related count and up to 10 years in prison on each healthcare fraud and money laundering count. A sentencing date has not yet been scheduled.
This case was prosecuted by the U.S. Drug Enforcement Administration; the U.S. Department of Health & Human Services Office of Inspector General; the IRS-Criminal Investigation; the Tennessee Bureau of Investigation; the Clarksville Police Department; and the 19th Judicial District Drug Task Force.
Assistant United States Attorneys Stephanie N. Toussaint and Miller A. Bushong prosecuted the case.
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Judge sentences St. Louis County business owner to 18 months in federal prison for tax fraudRead the Press Release
Charles, Missouri to 18 months in prison today. Additionally, Windsor was ordered to pay restitution in the amount of $304,296. The defendant had previously been found guilty during a four-day jury trial in May.
The evidence during the trial proved Windsor was the owner of a St. Louis County company that produced mass mailers for its customers. During the years 2013 and 2014, large sums of money, which were business receipts, were deposited into Windsor’s personal bank account. These funds were payments from only one client. All other business receipts from other company customers were deposited in Windsor’s business account. Many of the sales which were deposited into Windsor’s personal account were not reported on his tax returns. This methodology caused the gross receipts to be underreported on Windsor’s tax documentation in years 2013 and 2014. Thus, Windsor assisted in the preparation of personal tax returns that were fraudulent.
The Internal Revenue Service investigated this case which was prosecuted by Assistant United States Attorney Anthony Box.
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