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Tuesday 7 September 2021
CEO, CFO and Boston-Area Spinal Device Company Charged in Bribery and Money Laundering SchemeRead the Press Release
BOSTON – A spinal device manufacturer based in Malden, Mass. and its Chief Executive Officer (CEO) and Chief Financial Officer (CFO) were arrested today and charged in connection with a kickback scheme to bribe surgeons to use company products in exchange for sham consulting fees.
Kingsley R. Chin, MD, 57, of Fort Lauderdale, Fla., the CEO and founder of SpineFrontier; Aditya Humad, 36, of Cambridge, Mass., the company’s CFO; and SpineFrontier, Inc., were indicted on one count of conspiracy to violate the Anti-Kickback Statute, six counts of violations of the Anti-Kickback Statute and one count of conspiracy to commit money laundering.
According to the indictment, SpineFrontier, Chin and Humad paid, and conspired to pay, millions of dollars in bribes to surgeons in the form of sham consulting fees for work they did not perform. The defendants allegedly bribed surgeons to use SpineFrontier’s products, and in turn, SpineFrontier received millions of dollars in revenue from surgeries the surgeons performed.
The defendants allegedly entered into contracts with surgeons, agreeing to pay the surgeons between $250 and $1,000 per hour for purported consulting for SpineFrontier. In reality, however, the defendants allegedly paid the surgeons for using SpineFrontier’s products. Although the surgeon-consulting program was purportedly directed at gathering technical feedback about SpineFrontier’s products, the indictment alleges that Chin and Humad designed and used the program, and the bribes they paid pursuant to that program, to induce surgeons to use SpineFrontier’s products in surgeries that were paid for by federal health care programs such as Medicare, Medicaid, TRICARE and VHA. It is further alleged that the surgeons frequently spent only a small fraction of their reported time, if any at all, performing actual consulting. On numerous occasions the bribe amounts were determined following a review of the number of procedures a surgeon performed and the amount of revenue those procedures generated for SpineFrontier. The defendants allegedly paid each surgeon described in the indictment between $32,625 and $978,000 in bribes during the conspiracy.
“Kickback arrangements pollute federal health care programs and take advantage of patient needs for financial gains,” said Acting United States Attorney Nathaniel R. Mendell. “Medical device manufacturers must play by the rules and we will keep pursuing those who fail to do so, regardless of how their corruption is disguised.”
“Kickbacks paid to surgeons as sham medical consultants, as alleged in this case, cheat patients and taxpayers alike,” said Phillip M. Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General. “Working with our law enforcement partners, we will continue to investigate kickback schemes that threaten the integrity of our federal health care system, no matter how those schemes are disguised.”
“As alleged, Chin, Humad, and their medical device company SpineFrontier conspired to pay out millions of dollars in kickbacks in the form of sham consulting fees to surgeons across the country who sadly, prioritized these payoffs over their patients’ best interests. We believe they also cheated taxpayers who ultimately foot the bill for their medical procedures,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “Today’s arrests show that the FBI will not hesitate to go after those who try to undermine the integrity of the medical decision-making process to take advantage of patients for their own personal gain.”
This indictment follows two guilty pleas in related criminal prosecutions. In August 2020, Jason Montone, D.O., 45, of Lawson, Miss., pleaded guilty to conspiracy to violate the Anti-Kickback Statute and obstruction and John Balzer, 43, of Lenexa, Kan., pleaded guilty to conspiracy to violate the Anti-Kickback Statute and one count of witness tampering. Montone and Balzer are scheduled to be sentenced on March 22 and 23, 2022, respectively.
The charge of conspiring to violate the Anti-Kickback Statute provides for a sentence of up to five years in prison, three years of supervised release, a fine of $250,000 or twice the gross gain or gross loss resulting from the offense, whichever is greater, forfeiture and restitution. The charges of violating the Anti-Kickback Statute provide for a sentence of up to 10 years in prison, three years of supervised release, a fine of up to $100,000, forfeiture and restitution. The charge of conspiracy to commit money laundering provides for a sentence of up to 20 years in prison, three years of supervised release, a fine of $500,000 or twice the value of the property involved in the transaction, whichever is greater, forfeiture and restitution. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney Mendell, HHS-OIG SAC Coyne and FBI SAC Bonavolonta made the announcement today. Valuable assistance was provided by the U.S. Department of Veterans Affairs, Office of Inspector General, Northeast Field Office and the U.S. Postal Service, Office of Inspector General. Assistant U.S. Attorneys Patrick M. Callahan, David J. Derusha, Abraham R. George and David G. Lazarus of Mendell’s Office are prosecuting the criminal case.
The details contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Buchanan County Man Sentenced on Child Pornography ChargesRead the Press Release
ABINGDON, Va.– A Whitewood, Virginia man was sentenced today to 84 months in prison for distributing child pornography using a means or facility of interstate commerce.
According to court documents, Jordan Seth Gross, 21, distributed child pornography to an undercover employee with the Federal Bureau of Investigation (FBI) in November 2020. Gross admitted to using the KIK computer messenger application to communicate with others in a known child pornography chatroom. Gross accessed his KIK account from both his home in Whitewood, in Buchanan County, Virginia, and his place of employment at Buchanan General Hospital in Grundy, Virginia. Using that account, Gross distributed multiple videos of prepubescent females under the age of twelve engaged in sexually explicit conduct to an FBI employee working undercover in the chatroom. Gross also admitted purchasing child pornography materials using PayPal.
Gross pleaded guilty in April 2021 to one count of knowingly distributing one or more visual depictions of a minor engaging in sexually explicit conduct that has been mailed or transported in interstate or foreign commerce.
Acting U.S. Attorney Daniel P. Bubar of the Western District of Virginia and Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Division announced the sentence today.
The Federal Bureau of Investigation and Virginia State Police are investigating the case.
Assistant U.S. Attorney Lena Busscher is prosecuted the case.
Blawnox Man Pleads Guilty to Possessing Child PornographyRead the Press Release
PITTSBRUGH - A resident of Blawnox, Pennsylvania, pleaded guilty in federal court to a charge of possession of material depicting the sexual exploitation of a minor, Acting United States Attorney Stephen R. Kaufman announced today.
Michael Marlette, age 55, pleaded guilty to one count before Senior United States District Judge Donetta W. Ambrose.
In connection with the guilty plea, the court was advised that, on April 19, 2018, Marlette possessed images and videos in computer graphic files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age.
Judge Ambrose scheduled sentencing for Jan. 4, 2022, at 11:00 a.m. The law provides for a maximum sentence of 20 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Mark V. Gurzo is prosecuting this case on behalf of the government.
Homeland Security Investigations, with the assistance of the Blawnox Police Department, conducted the investigation that led to the prosecution of Marlette.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Biloxi VA Employee Pleads Guilty to Stealing VA PropertyRead the Press Release
Gulfport, Miss. – A Saucier man pled guilty to stealing government property, announced Acting U.S. Attorney Darren J. LaMarca and Special Agent in Charge Jeffrey A. Breen of the VA Office of Inspector General (OIG) South Central Field Office.
According to court documents, Chad Paul Jacob, 54, pled guilty to stealing personal protective equipment (“PPE”), electronics, and medical equipment while working as the Assistant Chief of Supply Chain Management for the Gulf Coast Veterans Health Care System. Beginning in 2019 and until December 2020, Jacob stole VA property which he resold at local pawn stores and on his personal eBay account. During the COVID-19 pandemic, Jacob stole N-95 masks and resold them for grossly inflated prices. In total, Jacob made more than $50,000 selling the stolen N-95 masks and over $9,000 selling stolen iPads and iPhones.
“Since the onset of the pandemic, the VA Office of Inspector General has aggressively investigated the increasing and evolving threat posed by COVID-19-related fraud and criminal activity. Today’s guilty plea demonstrates our ongoing work to stop those who take advantage of public health emergencies to perpetrate such frauds,” said VA OIG Special Agent in Charge Breen.”
Jacob is scheduled to be sentenced on December 7, 2021 and faces a maximum penalty of 10 years in prison. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The VA Office of Inspector General is investigating the case.
Assistant U.S. Attorney Kathlyn R. Van Buskirk is prosecuting the case
Big Stone Gap Man Pleads Guilty to Unemployment Fraud, Mail FraudRead the Press Release
ABINGDON, Va.– A Big Stone Gap, Virginia man pleaded guilty last week to participating in a conspiracy that defrauded the government of more than $790,000 in pandemic-related unemployment funds and conspiring to commit mail fraud.
According to court documents, Johnny Hobbs, 37, joined convicted co-defendant Farren Ricketts, and others, in a scheme to file fraudulent claims for pandemic unemployment benefits via the Virginia Employment Commission [VEC] website. Conspirators submitted claims for various individuals who were known to be ineligible to receive pandemic unemployment benefits by making materially false representations.
Hobbs joined the scheme in May 2020, while incarcerated, initially seeking to receive unemployment benefits for himself. After he was released from jail, Hobbs approached Ricketts, and the other co-conspirators and accepted a limited role with their criminal enterprise submitting claims to the VEC and recertifying weekly claims for other co-conspirators.
Hobbs pleaded guilty last week to one count of conspiracy to defraud the government of the United States and one count of conspiracy to commit mail fraud. He is scheduled to be sentenced on December 10, 2021 and faces a maximum penalty of 30 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney Daniel P. Bubar of the Western District of Virginia, Darrell J. Waldon, Acting Special Agent in Charge of the IRS-CI Washington DC Field Office, and Syreeta Scott, Special Agent-in-Charge of the Philadelphia Region, U.S. Department of Labor Office of Inspector General announced the guilty plea.
The Department of Labor Office of the Inspector General and the Internal Revenue Service – Criminal Investigation are investigating the case.
Assistant U.S. Attorney Daniel J. Murphy is prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Monday 6 September 2021
Statement from Attorney General Merrick B. Garland Regarding Texas SB8Read the Press Release
The U.S. Department of Justice today issued the following statement from Attorney General Merrick B. Garland regarding Texas SB8:
“While the Justice Department urgently explores all options to challenge Texas SB8 in order to protect the constitutional rights of women and other persons, including access to an abortion, we will continue to protect those seeking to obtain or provide reproductive health services pursuant to our criminal and civil enforcement of the FACE Act, 18 U.S.C. § 248.
“The FACE Act prohibits the use or threat of force and physical obstruction that injures, intimidates, or interferes with a person seeking to obtain or provide reproductive health services. It also prohibits intentional property damage of a facility providing reproductive health services. The department has consistently obtained criminal and civil remedies for violations of the FACE Act since it was signed into law in 1994, and it will continue to do so now.
“The department will provide support from federal law enforcement when an abortion clinic or reproductive health center is under attack. We have reached out to U.S. Attorneys’ Offices and FBI field offices in Texas and across the country to discuss our enforcement authorities.
“We will not tolerate violence against those seeking to obtain or provide reproductive health services, physical obstruction or property damage in violation of the FACE Act.”
If you have an incident, concern, or questions, please contact the FBI at FBI.gov/tips or through the complaint portal civilrights.justice.gov.
Friday 3 September 2021
Yale Med School Employee Charged with Stealing and Selling Millions of Dollars in Computer HardwareRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, and David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that JAMIE PETRONE-CODRINGTON, 41, of Naugatuck, has been charged by federal criminal complaint with fraud and money laundering offenses related to her alleged theft of millions of dollars in computer hardware from the Yale University School of Medicine where she was employed.
Petrone-Codrington surrendered to law enforcement today and appeared before U.S. Magistrate Judge Robert M. Spector in New Haven. She was released on a $1 million bond.
As alleged in the complaint, beginning in approximately 2008, Petrone-Codrington was employed by the Yale University School of Medicine (“Yale Med”), Department of Emergency Medicine, and most recently served as the Director of Finance and Administration for the Department of Emergency Medicine. As part of her job responsibilities, Petrone-Codrington had authority to make and authorize certain purchases for departmental needs as long as the purchase amount stayed below $10,000. Beginning at least as early as 2013, Petrone-Codrington engaged in a scheme whereby she ordered, or caused others working for her, to order millions of dollars of computer hardware from Yale vendors using Yale Med funds and arranged to ship the stolen hardware to an out-of-state business in exchange for money.
It is further alleged that Petrone-Codrington falsely represented on Yale internal forms and in electronic communications that the hardware was for specified Yale Med needs, such as particular medical studies, and she broke up the fraudulent purchases into orders below the $10,000 threshold that would require additional approval. The out-of-state business, which resold the computer hardware to customers, paid Petrone-Codrington by wiring funds into an account of a company in which she is a principal.
The criminal complaint charges Petrone-Codrington with mail fraud, which carries a maximum term of imprisonment of 20 years; wire fraud, which carries a maximum term of imprisonment of 20 years; and money laundering, which carries a maximum term of imprisonment of 10 years.
Acting U.S. Attorney Boyle stressed that a complaint is only a charge and 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 investigation is being conducted by the Federal Bureau of Investigation with the assistance of the Yale Police Department. The case is being prosecuted by Assistant U.S. Attorney David E. Novick.
Woman from Albuquerque sentenced to 10 years in federal prison for possession and distribution of drugsRead the Press Release
ALBUQERQUE, N.M. – Karla Pena, 33, of Albuquerque, was sentenced in federal court on Aug. 23 to 10 years in prison for distribution of methamphetamine and fentanyl.
Pena pleaded guilty on Dec. 23, 2019. According to the plea agreement, from Jan. 15 to Jan. 24, 2019, Pena conspired with co-defendants Marysol Pena, 31, of Phoenix, Arizona, and Guillermo Rodriguez, 39, also of Phoenix, to sell methamphetamine and fentanyl to an undercover officer in Albuquerque. On Jan. 15, Pena sold an undercover officer 419 grams of methamphetamine and 97.3 grams of fentanyl in exchange for cash outside a Walmart parking lot. On Jan. 24, Pena sold the undercover officer more than 4.5 kilograms of methamphetamine and 76.9 grams of fentanyl pills in a suitcase that she wheeled into a motel room in Albuquerque.
At the time of the investigation, Pena was on supervised release for a 2016 conviction for possession with intent to distribute heroin.
Upon completion of her sentence, Pena will be subject to five years of supervised release.
Rodriguez pleaded guilty on Nov. 4, 2019, and was sentenced on May 19, 2020, to four years and two months in prison. Marysol Pena pleaded guilty on May 26, and was sentenced on Aug. 24 to a year and 11 months in prison and will be subject to three years of supervised release upon completion of her sentence.
The FBI and New Mexico State Police investigated this case. Assistant U.S. Attorney Matthew T. Nelson prosecuted this case.
Wilkes-Barre Woman Sentenced to 127 Months’ Imprisonment for Drug Trafficking ConspiracyRead the Press Release
Scranton - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on September 2, 2021, Danielle Moorer, age 36, formerly of Wilkes-Barre, Pennsylvania, was sentenced to 127 months’ imprisonment to be followed by five years of supervised release by U.S. District Court Judge Robert D. Mariani, for her involvement in a conspiracy that distributed more than a 1,000 grams of heroin and other drugs throughout Luzerne, Lackawanna, and Wyoming Counties.
According to Acting United States Attorney Bruce D. Brandler, Moorer previously pleaded guilty to conspiring with others to distribute more than one kilogram of heroin (which is equivalent to more than 50,000 retail bags) between 2015 and 2018. Moorer also admitted that she possessed firearms in connection with her drug trafficking activities.
Moorer’s conviction and sentence resulted from a federal investigation involving Moorer and her husband, Hakim Wilburn, as drug traffickers operating throughout Luzerne, Lackawanna, and Wyoming Counties. Wilburn previously pleaded guilty to conspiring to distribute more than one kilogram of heroin and was sentenced to a term of 198 months’ imprisonment.
Federal agents also seized approximately $100,000 in cash from Moorer and Wilburn, which was forfeited as a resulted of their prosecution, along with multiple Rolex watches, vehicles, and four firearms.
The case was investigated by agents of the Federal Bureau of Investigation, and members of the Wilkes-Barre Police Department. Assistant U.S. Attorney Michelle Olshefski prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal enforcement and the local community to develop effective, locally-based strategies to reduce crime.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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West L.A. Man Sentenced to 4 Years in Prison for Running Massive Telemarketing Scheme that Targeted Businesses and CharitiesRead the Press Release
SANTA ANA, California – A West Los Angeles man was sentenced today to 48 months in federal prison – plus an additional 28 months of home confinement – for orchestrating a decades-long, multimillion-dollar telemarketing scheme that defrauded more than 50,000 victims, including small businesses and charities, by posing as their regular supplier of printer toner and selling them toner at greatly inflated prices.
Gilbert N. Michaels, 79, was sentenced by United States District Judge James V. Selna, who also ordered him to pay a criminal fine of $200,000.
In December 2019, at the conclusion of a six-week trial, a federal jury found Michaels guilty of one count of conspiracy to commit mail fraud, 10 counts of mail fraud and five counts of money laundering.
Michaels owned and operated IDC Servco and Mytel International, companies that, with the assistance of boiler room operators, fraudulently sold toner to businesses, charities, and other organizations throughout the United States. Michaels’ companies handled the billing and shipping of the toner, and charged the boiler rooms at or above retail prices for the toner they were selling to victims. Michaels provided price catalogs to the boiler rooms to use in making sales that listed the price of the toner at up to five to 10 times the retail price. Many of the victims already were receiving toner at no additional charge pursuant to their contracts for their copiers and printers.
The telemarketers told victims that the price of toner had increased, they had not been notified of the increase, and the victims now had a chance to purchase toner at the previous, lower price. Believing that they were dealing with their regular supplier of toner, employees at the victim businesses and organizations signed order confirmation forms, which prompted IDC to ship toner to victims and send invoices that demanded payment at the inflated prices.
When the victim businesses realized they had been scammed, they called IDC to complain. The victims were typically told that IDC could not cancel the order or refund money because the victims had signed order confirmation forms. IDC also failed to disclose its relationships to the telemarketing companies that brokered the fraudulent deals.
In many cases, IDC employees threatened victims with collections or legal action if they did not pay an invoice. In the cases where IDC agreed to take toner back, victims were often forced to pay significant “restocking fees.”
Over one six-year span, victims were induced to send more than $126 million to the telemarketing scammers.
Another aspect of the fraud was that the telemarketers failed to disclose that they were affiliated with IDC. In a series of court orders dating back to November 1988, Michaels and his companies were prohibited from making false statements and they were required to provide oversight to “independent sales companies.” Michaels violated these court orders by working with and providing financing to the supposedly independent boiler rooms that were engaged in deceptive and fraudulent practices, even though IDC received hundreds of thousands of complaints from victims claiming they had been defrauded.
Six other defendants were also found guilty along with Michaels in December 2019. Those already sentenced are:
- James R. Milheiser, 54, of Huntington Beach, who owned and/or controlled Material Distribution Center, PDM Marketing, Bird Coop Industries, Inc., and Copier Products Center, and who was convicted of conspiracy and mail fraud, was sentenced to 30 months in federal prison; and
- Francis S. Scimeca, 56, of Woodland Hills, who owned Supply Central Distribution, Inc. and Priority Office Supply, was sentenced to three years in federal prison for his convictions for conspiracy and mail fraud.
The following four defendants will be sentenced in the coming months:
- Leah D. Johnson, 57, of Ignacio, Colorado, who owned Capital Supply Center and LJT Distribution, Inc.;
- Jonathan M. Brightman, 54, of Westlake Village, who owned Copy Com Distribution, Inc.; Independent Cartridge Supplier; and Corporate Products;
- Sharon Scandaliato Virag, 56, of West Hills, who owned XL Supply, Inc.; and
- Tammi L. Williams, 46, of Chino Hills, who was the office manager at Elite Office Supply, and worked at Specialty Business Center, Rancho Office Supply and Select Imaging Supplies.
The four defendants pending sentencing were found guilty of conspiracy. Johnson and Brightman also were found guilty of mail fraud.
The United States Secret Service, the FBI, the Huntington Beach Police Department and the Orange County District Attorney’s Office investigated this matter, with assistance from the Federal Trade Commission.
Assistant United States Attorneys Gregory W. Staples, Bradley E. Marrett, and Benjamin D. Lichtman of the Santa Ana Branch Office are prosecuting this case.
Washington County Man Charged with Violating Federal Drug and Gun LawsRead the Press Release
PITTSBURGH, PA - A former resident of Charleroi, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on federal narcotics and firearms charges, Acting United States Attorney Stephen R. Kaufman announced today.
The three-count Indictment, returned on August 25 and unsealed today, named Tecko Tartt, age 35, as the sole defendant.
According to Count One of the Indictment, on or about March 31, 2021, Tartt possessed with the intent to distribute 10 grams or more of fluorofentanyl, a Schedule I controlled substance and an analogue of fentanyl; and quantities of cocaine. On or about that same date, Tartt also possessed a firearm and ammunition as a convicted felon (Count Three) and in furtherance of a drug trafficking crime (Count Two).
As to Count 1, the law provides for a minimum of five and up to 40 years in prison, a fine of $5,000,000 or both. The maximum sentence for Count 2 is at least five years and up to life in prison and a fine of up to $250,000. The maximum sentence for Count 3 is up to 10 years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Yvonne M. Saadi and Jonathan D. Lusty are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation leading to the Indictment in this case.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
United States Obtains $140 Million in False Claims Act Judgments against South Carolina Pain Management Clinics, Drug Testing Labs, and Substance Abuse Counseling CenterRead the Press Release
Columbia, South Carolina---- Acting United States Attorney M. Rhett DeHart announced today that the United States District Court for the District of South Carolina has entered $140 million in default judgments against a group of South Carolina pain management clinics, drug testing laboratories, and a substance abuse counseling center. This combined judgment is one of the largest ever False Claims Act judgments in the District of South Carolina.
Specifically, a default judgment entered on September 2, 2021, for the United States against Oaktree Medical Centre, P.C., FirstChoice Healthcare, P.C., Labsource, LLC, Pain Management Associates of the Carolinas, LLC, and Pain Management Associates of North Carolina, P.C. totals $136,025,077. It follows a July 20, 2020 default judgment in this matter in the amount of $4,269,084.78 against ProLab, LLC and ProCare Counseling Center, LLC. The Court entered these judgments after these defendants failed to defend against the United States’ allegations.
In its Complaint, filed on May 31, 2019, the United States alleged the pain management clinics and drug testing laboratories – all of which were owned or operated by chiropractor Daniel McCollum – provided illegal financial incentives to doctors and mid-level providers to induce the referrals of urinary drug tests, in violation of the Stark Law and the Anti-Kickback Statute. The United States also alleged the pain management clinics, laboratories, and a substance abuse counseling clinic billed federal healthcare programs for unnecessary urinary drug testing. Finally, the United State alleged the pain management clinics billed or caused to be billed false claims for steroid injections, opioid prescriptions, and lidocaine ointment prescriptions because the injections and prescriptions were medically unnecessary and/or lacked a legitimate medical purpose.
McCollum answered the United States’ Complaint and remains a party to the ongoing litigation.
Congress passed the Stark Law and the Anti-Kickback Statute to prevent financial incentives from improperly influencing medical decision-making, which can lead to excessive and unnecessary tests and services. Among other things, the Stark Law prohibits billing Medicare for laboratory testing services referred by a physician who has a financial relationship with the laboratory. The Anti‑Kickback Statute prohibits offering or paying anything of value to induce the referral of items or services covered by federal health care programs, including laboratory testing services.
“Improper financial relationships between health care providers and laboratories can lead to overutilization and increase the cost of health care services paid for by the taxpayers,” said Acting Assistant Attorney General Brian M. Boynton of the Department of Justice’s Civil Division. “We will continue to ensure that health care decisions are based on the needs of patients rather than the financial interests of providers.”
“Patients should not have to question whether their doctor recommended a test or procedure for personal gain,” said Acting U.S. Attorney DeHart. “For years, these companies used improper financial incentives to generate healthcare provider referrals. This $140 million judgment is a cautionary tale of why health care fraud does not pay.”
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Donna Rauch, Muriel Calhoun, Brandy Knight, Karen Mathewson, and Tracy Hawkins, former employees of pain management clinics owned or operated by McCollum. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery.
The qui tam cases are captioned United States ex rel. Rauch, et al. v. Oaktree Medical Centre, P.C., et al., No. 6:15-cv-01589-DCC (D.S.C.); United States ex rel. Mathewson v. Dr. Daniel A. McCollum, et al., No. 6:17-CV-01190-DCC (D.S.C.); and United States ex rel. Hawkins v. Pain Management Associates of the Carolinas, LLC, et al., No. 8:18-cv-02952-DCC (D.S.C.).
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the United States Attorney’s Office for the District of South Carolina, with assistance from the Federal Bureau of Investigation, the Department of Health and Human Service’s Office of Inspector General, the South Carolina Attorney General’s Office, and the Defense Criminal Investigative Service.
The investigation and resolution of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The matter was handled by Assistant U.S. Attorney Beth Warren and Justice Department Fraud Section Attorneys Yolonda Campbell, Michael Kass, Christopher Terranova, and David Wiseman.
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United States Obtains $140 Million in False Claims Act Judgments Against South Carolina Pain Management Clinics, Drug Testing Laboratories and a Substance Abuse Counseling CenterRead the Press Release
On Thursday, the U.S. District Court for the District of South Carolina entered default judgments for the United States totaling $136,025,077 against Oaktree Medical Centre P.C. (Oaktree), FirstChoice Healthcare P.C. (FirstChoice), Labsource LLC (Labsource), Pain Management Associates of the Carolinas LLC (PMA of the Carolinas) and Pain Management Associates of North Carolina P.C. (PMA of North Carolina). This is the second time the court has entered a default judgment in this matter. On July 20, 2020, the court entered a default judgment in the amount of $4,269,084.78 against ProLab LLC (ProLab) and ProCare Counseling Center LLC (ProCare). The court entered these judgments after these defendants failed to defend against the United States’ allegations.
In its complaint, filed on May 31, 2019, the United States alleged that Oaktree, FirstChoice, Labsource, PMA of the Carolinas and PMA of North Carolina — all of which were owned or operated by chiropractor Daniel McCollum — provided illegal financial incentives to providers to induce their referrals of urine drug tests in violation of the Stark Law and the Anti-Kickback Statute. The United States also alleged that ProCare, a substance abuse counseling clinic, and ProLab, a urine drug testing laboratory partially owned by McCollum, billed federal health care programs for unnecessary urine drug tests. McCollum answered the United States’ complaint and remains a party to the ongoing litigation.
Congress passed the Stark Law and the Anti-Kickback Statute to prevent financial incentives from improperly influencing medical decision-making, which can lead to excessive and unnecessary tests and services. Among other things, the Stark Law prohibits billing Medicare for laboratory testing services referred by a physician who has a financial relationship with the laboratory. The Anti‑Kickback Statute prohibits offering or paying anything of value to induce the referral of items or services covered by federal health care programs, including laboratory testing services.
“Improper financial relationships between health care providers and laboratories can lead to overutilization and increase the cost of health care services paid for by the taxpayers,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “We will continue to ensure that health care decisions are based on the needs of patients rather than the financial interests of providers.”
“Patients should not have to question whether their doctor recommended a test or procedure for personal gain,” said Acting U.S. Attorney M. Rhett DeHart for the District of South Carolina. “For years, these companies used improper financial incentives to generate health care provider referrals. This $140 million judgment is a cautionary tale of why health care fraud does not pay.”
The judgment includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Donna Rauch, Muriel Calhoun, Brandy Knight, Karen Mathewson and Tracy Hawkins, former employees of pain management clinics owned or operated by McCollum. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam cases are captioned United States ex rel. Rauch, et al. v. Oaktree Medical Centre, P.C., et al., No. 6:15-cv-01589-DCC (D.S.C.); United States ex rel. Mathewson v. Dr. Daniel A. McCollum, et al., No. 6:17-CV-01190-DCC (D.S.C.); and United States ex rel. Hawkins v. Pain Management Associates of the Carolinas, LLC, et al., No. 8:18-cv-02952-DCC (D.S.C.).
The resolution obtained in this matter was the result of a coordinated effort between the Civil Division's Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the District of South Carolina, with assistance from the FBI, the Department of Health and Human Service’s Office of Inspector General, the South Carolina Attorney General’s Office, and the Defense Criminal Investigative Service.
The investigation and resolution of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The matter was handled by Fraud Section Attorneys Yolonda Campbell, Michael Kass, Christopher Terranova, and David Wiseman, along with Assistant U.S. Attorney Beth Warren of the District of South Carolina.
U.S. Corporation Sentenced for Importing Illegally-Sourced Wood from the AmazonRead the Press Release
Global Plywood and Lumber Trading LLC (Global Plywood) pleaded guilty today in the U.S. District Court for the District of Columbia to violating the Lacey Act. The corporation admitted that it failed to exercise due care when it imported illegally-sourced timber from the Peruvian Amazon into the United States. The court sentenced Global Plywood to pay $200,000 in restitution to the Ministry of Environment of Peru and a $5,000 fine.
Global Plywood was incorporated in Nevada and operated out of Poway, California. In August 2015, Global Plywood purchased approximately 1,135 cubic meters of hardwood blanks from three Peruvian suppliers. The wood, consisting of species of Virola from the Loreto region of the Peruvian Amazon, arrived at the Port of Houston aboard the M/V Yacu Kallpa on September 27, 2015, where it was seized by Customs and Border Protection (CBP) officers.
Peru issues Forest Travel Guides to establish a chain of custody and ensure that any timber harvested or transported is legal. The Agency for Supervision of Forest Resources and Wildlife (OSINFOR) audits harvest sites to ensure legal compliance. OSINFOR made its findings available on SIGO, an open-source website maintained by the Peruvian government. Importers are able to check SIGO to determine if there have been any irregularities regarding specific harvest permits and Forest Travel Guides. Global Plywood was aware of such public reports detailing instances of illegal logging and fraud within the Peruvian timber industry.
The investigation revealed that approximately 92% of the wood that Global Plywood imported had been unlawfully harvested or transported. In pleading guilty, Global Plywood acknowledged that it failed to exercise due care in that it (i) did not obtain or review relevant harvest permits or Forest Travel Guides prior to import, (ii) failed to check SIGO for irregularities connected to the timber purchased, and (iii) relied on statements made by suppliers without further investigation, a site visit, or other confirmation of the truth of those statements.
The Lacey Act prohibits, among other things, the import of plants, wildlife, or fish without exercising due care to identify the source of the goods. Global Plywood dissolved in 2017, having forfeited and disposed of the illegal timber pursuant to a civil action.
The Trade Enforcement Group of Homeland Security Investigations in Houston and CBP conducted the investigation with assistance from Peruvian authorities. Trial Attorneys Patrick Duggan and Ryan Connors of the Environmental Crimes Section of the Environment and Natural Resources Division prosecuted the case.
U.S. Attorney’s Office presents Medicolegal Symposium to discuss the case against Reta Mays, convicted VA hospital murdererRead the Press Release
CLARKSBURG, WEST VIRGINIA – The U.S. Attorney’s Office, Northern District of West Virginia, is teaming up with Department of Veterans Affairs Office of Inspector General, the FBI, and West Virginia University to hold a symposium discussing the cutting-edge methods used to convict a serial killer who preyed on veterans at the veteran’s hospital in Clarksburg.
In May 2021, Reta Mays, a former nursing assistant at the veteran’s hospital in Clarksburg, was sentenced to seven life terms in prison plus 20 years for murdering seven patients with insulin and attempting to murder an eighth veteran. The two-year investigation that preceded the July 2020 guilty pleas was highly complex.
The symposium consists of examining the clinical, forensic, psychiatry, and legal prosecution techniques used to ensure justice for Mays’ victims and their families. The prosecution team, investigators, and experts from around the globe will be presenting during this dynamic event. The symposium has been approved for CLE and CME credits. Credits for LE in-service are pending.
“The Medicolegal Symposium on the Serial Murder Case of Reta Mays” will be held at the WVU College of Law on Thursday, October 14 from 9:00 a.m.-4:30 p.m. Space is limited. Registration for in-person attendance must be submitted by September 14, 2021.
The training will also be available virtually via the U.S. Attorney’s Office, Northern District of West Virginia’s YouTube channel at https://www.youtube.com/c/usaondwv. Registration for virtual attendance must be received no later than October 12, 2021.
Medical professionals and medical students, attorneys and law students, criminal investigators and criminal justice students are welcome to attend. Registration is free but is required. For more information or to register, go to justice.gov/usao-ndwv.
Watch Acting U.S. Attorney Randolph J. Bernard and Assistant U.S. Attorney Jarod J. Douglas discuss the symposium here: https://youtu.be/FIG0Oef6RYA
Two Federal Felons Charged with Possession of Ammunition Recovered at Murder ScenesRead the Press Release
SAN JUAN, Puerto Rico – A federal grand jury returned two indictments charging Hitler Cintrón-Ortiz and Omar Francisco Delgado-Martínez with being felons in possession of ammunition, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. The Bureau of Alcohol, Tobacco, Firearms and Explosives is in charge of the investigation under the direction of Special Agent in Charge Robert Cekada.
According to the Government’s allegations, Cintrón-Ortiz possessed ammunition that was recovered after a man was shot to death during the early morning hours of October 3, 2018 in Santurce. Cintrón-Ortiz was then on supervised release for a federal sentence related to narcotics.
The indictment against Delgado-Martínez alleges that he possessed ammunition that was recovered after the murder of a 24-year-old man. The man was shot to death during the early morning of March 14, 2020 in the Miramar area of San Juan. At the time, Delgado-Martínez was on supervised release after serving a federal sentence for conspiring with intent to distribute cocaine.
Assistant U.S. Attorneys Juan Carlos Reyes and Jeanette Collazo of the Violent Crimes and National Security Section are in charge of the prosecutions of the cases. If convicted, each defendant faces a sentence of up to ten years in prison.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Two Arkansas Men Found Guilty of Fraud and Money Laundering in Connection with Proposed Elm Springs, Arkansas Wind FarmRead the Press Release
FAYETTEVILLE – A federal jury convicted two Arkansas men today for Wire Fraud, Aiding and Abetting Wire Fraud, Money Laundering and Aiding and Abetting Money Laundering in connection with the development of a wind turbine that was never operational and a proposed wind farm project in Elm Springs, Arkansas, that was never constructed.
According to court documents and evidence presented at trial, Jody Douglas Davis, 46, of Searcy, Arkansas, and Phillip Vincent Ridings 64, of North Little Rock, Arkansas, formed a limited liability company in Texas in 2014 called Dragonfly Industries International, LLC (“Dragonfly”) and Arkansas Wind Power (“AWP”), an Arkansas limited liability company located in Springdale, Arkansas, to develop what they told investors was a revolutionary wind turbine design that was to be installed on a 311-acre wind farm proposed for construction in Elm Springs, Arkansas.
According to the superseding indictment, Davis and Ridings conspired with Cody Fell of Springdale, Arkansas, and others, beginning as early as June 2014 and continuing through and including March 2018, to obtain money from investors who were told that the investors’ money would be used to build a prototype of the wind turbine and develop wind farms in Elm Springs, Arkansas, in Iowa, and other states. The evidence presented at trial showed that Davis and Ridings used most of the $700,000 they obtained from investors for Davis’ and Ridings’ personal use. Specifically, evidence at trial revealed that investors were told that Dragonfly’s wind turbine could produce more energy than the traditional three-blade wind turbines commonly used on existing wind farms; that nationally recognized engineering firms and a University of Memphis mechanical engineering professor had “validated” the Dragonfly wind turbine’s design; that the Department of Defense has expressed strong interest in acquiring Dragonfly’s wind turbines for use in combat zones; that a prototype of the wind turbine was nearing completion; that leaders of underdeveloped countries were ready to buy Dragonfly’s wind turbines; and that a $10 million grant from the Department of Energy was soon to be awarded to Dragonfly, when in truth and fact, none of these representations were true.
Cody Fell pled guilty to Wire Fraud and Tax Evasion in December 2018 and will be sentenced on September 17, 2021. A sentencing date for Davis and Ridings has not yet been scheduled.
Acting U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.
The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation.
Assistant U.S. Attorneys Kyra Jenner and Kenneth Elser prosecuted the case.
Related court documents may be found on the Public Access to Electronic Records website at www.pacer.gov.
Tulsa Man Pleads Guilty for Conspiring with his Girlfriend to Make an Illegal Firearms PurchaseRead the Press Release
TULSA, Okla. – A Tulsa man pleaded guilty Friday in U.S. District Court for conspiring with his girlfriend, a Tulsa Police officer at the time, to lie on a federal firearms transaction form so she could purchase a gun on his behalf, announced Acting U.S. Attorney Clint Johnson.
Devon Jamyll Jones, 28, pleaded guilty to conspiracy to make a false statement to a firearms dealer and to false statement to a firearms dealer.
In his plea agreement, the defendant admitted that he conspired with Latoya Dythe, to illegally purchase a firearm. The two agreed that she would buy a firearm in her name then transfer the gun to Jones. On April 11, 2020, Jones and Dythe drove to a Bass Pro Shop in Broken Arrow to make the purchase. When they arrived, Jones gave Dythe the money to buy the gun. Per their agreement, Dythe then entered the store, selected an FN HERSTAL S.A., 5.7 X 28mm, and lied on a federal firearms transaction form during the purchase. On the ATF Form 4473, Dythe answered “yes” to the question “Are you the actual transferee/buyer of the firearm(s) listed on this form?” Her answer was false since she was purchasing the gun at Jones’ request. When returning to the car, Dythe handed the gun over to Jones.
The ATF Form 4473 specifically issues a warning to purchasers: “Warning: You are not the actual transferee/buyer if you are acquiring the firearm(s) on behalf of another person. If you are not the actual transferee/buyer, the licensee cannot transfer the firearm(s) to you.”
Previously, Dythe, 27, also pleaded guilty to conspiracy to make a false statement to a firearms dealer and with making a false statement to a firearms dealer. On Aug. 10, 2021, she was sentenced to five years of probation and ordered to pay a $1,000 fine.
The FBI and the Tulsa Police Department conducted the investigation. Assistant U.S. Attorney Edward Snow prosecuted the case.
This case was prosecuted as part of the 2150 Initiative. The initiative is a collaborative effort between the U.S. Attorney’s Office for the Northern District of Oklahoma, Tulsa Police Department, ATF, and all other local, state, tribal and federal law enforcement partners to combat violent crime by focusing efforts on prohibited persons in possession of firearms as well as straw purchasers.
Trinitarios Gang Member Charged with Murder of A Confidential InformantRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, Michael J. Driscoll, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), Dermot Shea, Police Commissioner for the City of New York (“NYPD”), and Stuart K. Cameron, Acting Commissioner of the Suffolk County Police Department (“SCPD”), announced that WILLIAM JONES, a/k/a “Principe,” was charged with the murder of a federal confidential informant. JONES was arrested yesterday and will be presented today in Manhattan federal court. The case has been assigned to United States District Judge Edgardo Ramos.
U.S. Attorney Audrey Strauss said: “William Jones allegedly participated in the premeditated murder of Frederick Delacruz solely because Delacruz had the courage to cooperate with law enforcement. The indictment and arrest demonstrate that this office and its partners will be relentless in our pursuit of anyone who seeks to harm a witness to a crime.”
FBI Assistant Director Michael J. Driscoll said: “Those who witness crimes and cooperate with the government to keep our communities safe are vital to our work in arresting criminals and holding them accountable for their criminal acts. Mr. Jones may have allegedly thought murdering an informant would make his problems go away. But violence is never the answer. Instead, he’s now facing up to a lifetime in federal prison for allegedly murdering a man who would have testified against him.”
NYPD Commissioner Dermot Shea said: “Nearly two years ago in eastern Long Island, William Jones allegedly fatally shot a confidential informant who was a fellow Trinitarios gang member. But our NYPD investigators and law enforcement partners worked together from the beginning, never giving up, and we welcome these federal charges by the United States Attorney’s Office in the Southern District of New York to achieve some measure of justice in this case.”
Suffolk County Police Commissioner Stuart K. Cameron said: “The ability for individuals to come forward and work with law enforcement is a critical pillar in police work. Those who have the courage to come forward should be confident their safety is of the utmost importance when pursuing alleged perpetrators of violent crimes, like William Jones. We hope this arrest will reinforce the partnership between members of law enforcement and those who put themselves at risk to provide valuable information in criminal investigations.”
According to the allegations contained in the Indictment:[1]
In or around December 2019, JONES, who is a member of the Trinitarios street gang, and others agreed to kill Frederick Delacruz, who was a member of the Trinitarios and also a confidential informant for law enforcement. On December 28, 2019, JONES and others drove Delacruz from the Bronx to Suffolk County, where they caused Delacruz to be shot and killed.
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JONES, 43, of the Bronx, New York, is charged with two counts of conspiracy to murder a federal informant, each of which carries a maximum penalty of death or life in prison and a mandatory minimum sentence of life in prison; two counts of murder of a federal informant, each of which carries a maximum penalty of death or life in prison and a mandatory minimum sentence of life in prison; and murder through the use of a firearm, which carries a maximum penalty of death or life in prison and a mandatory minimum sentence of five years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Ms. Strauss praised the outstanding investigative work of the FBI, the NYPD, and the Suffolk County Police Department. She also thanked the Suffolk County District Attorney’s Office for its assistance.
The prosecution is being handled by the Office’s Violent & Organized Crime Unit. Assistant United States Attorneys Justin V. Rodriguez and Emily A. Johnson are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Three Peruvian Nationals Sentenced to Incarceration for Conspiring to Defraud Thousands of Spanish-Speaking ImmigrantsRead the Press Release
Three Peruvian nationals have been sentenced to serve several years in prison for operating a series of call centers in Peru that defrauded Spanish-speaking U.S. residents by falsely threatening them with arrest, deportation and other legal consequences.
Fernan Huerta Haro, 34, Jerson Isai Renteria, 38, and Evelyng Milla Campuzano, 36, all from Lima, Peru, were sentenced to 90 months, 100 months, and 90 months in prison, respectively. Each pleaded guilty for their roles in conspiring to commit mail fraud and wire fraud through a series of Peruvian call centers that used false statements and threats to obtain money from Spanish-speaking individuals across the United States. The defendants and their employees falsely told victims that they were required to accept and pay for English-language courses and other educational products and that failure to do so placed them in legal jeopardy. The defendants and their co-conspirators falsely threatened to have their victims arrested and deported in order to collect millions of dollars from victims in South Florida and across the United States. Many of the defendants’ victims were elderly.
“The Department of Justice’s Consumer Protection Branch will pursue and prosecute transnational criminals who defraud vulnerable U.S. consumers,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department's Civil Division. “The defendants in this case defrauded immigrants by falsely promising free products to improve their English. In reality, the defendants were luring their victims into a trap of intimidation and fear, leaving them far worse off – with substantial financial losses and, often, emotional scars from these crimes. Today’s sentences demonstrate that defendants who prey upon U.S. consumers from abroad will not do so with impunity.”
“This case demonstrates that the long arm of justice has no limits when it comes to reaching fraudsters who prey on our nation’s most vulnerable populations,” said Acting U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida. “We will continue to bring American justice to transnational criminals who use fear tactics and intimidation to steal money from immigrants, seniors and others who live in this country.”
“The U.S. Postal Inspection Service constantly strives to protect our communities from predatory criminals seeking to abuse and exploit the most vulnerable members of our society,” said Inspector in Charge Joseph W. Cronin of the USPIS Miami Division. “This particular case is an example of how Postal Inspectors will vigorously pursue these types of crime and ensure that the perpetrators will be brought to justice to pay for the crimes they have committed.”
In pleading guilty, each of these defendants admitted that they and their employees falsely claimed to be lawyers, court officials, federal agents and representatives of a so-called “minor crimes court,” which does not exist. The callers falsely threatened victims with court proceedings, negative marks on their credit reports, imprisonment and immigration consequences if they did not immediately pay for the purportedly delivered products and settlement fees.
Huerta was the co-owner of the Camino al Progreso and Neshuer Corporation call centers in Lima, Peru. From April 2011 until his arrest in July 2019, he and his co-conspirators called victims as well as victims’ family members and friends and fraudulently threatened them with legal consequences if they did not make payments for the purportedly delivered products and settlement fees for English language classes.
Renteria was the co-owner of the Accion Latino and Bienester Hispano call centers in Lima, Peru. In pleading guilty, he admitted that from June 2013 until July 2019, he and his employees falsely impersonated U.S. government officials and falsely threatened victims with court proceedings, imprisonment and immigration consequences.
Milla was Renteria’s co-owner at the Accion Latino call center. From 2013 until her arrest in 2019, she also threatened and intimidated Spanish-speakers in the United States by overseeing call centers that impersonated U.S. law enforcement and demanded payments from vulnerable victims across the United States.
Huerta, Renteria and Milla were arrested in July 2019 by Peruvian authorities based on a U.S. extradition request, and each has remained incarcerated since that time. The defendants were extradited to the Southern District of Florida in October 2020. A co-defendant Omar Cuzcano was previously sentenced to serve 90 months in prison. Another co-defendant Henrry Milla Campuzano will be sentenced by U.S. District Judge Robert N. Scola Jr. on Sept. 21.
Two additional defendants in the case – Carlos Alberto Espinoza Huerta and Josmell Arturo Espinoza Huerta – evaded arrest at the time of their five co-defendants’ arrests in Peru. They were subsequently located and extradited to the United States on June 25, and are being detained at the Federal Detention Center in Miami. Their trial is scheduled to begin on Feb. 14, 2022, before Judge Scola.
U.S. Postal Inspection Service and the Civil Division’s Consumer Protection Branch investigated the case, along with the department’s Transnational Elder Fraud Strike Force. Senior Trial Attorney Phil Toomajian and Trial Attorney Max Goldman of the Consumer Protection Branch are prosecuting the case. The Federal Trade Commission, the Justice Department’s Office of International Affairs, the U.S. Attorney’s Office for the Southern District of Florida, the State Department’s Diplomatic Security Service, and the Peruvian National Police provided critical assistance.
The Consumer Protection Branch coordinates the department’s Transnational Elder Fraud Strike Force, working with U.S. Attorney’s Offices and law enforcement agencies to investigate and prosecute scams run by transnational criminal organizations, including mass mailing, telemarketing, and tech support scams. For more information about the Consumer Protection Branch, visit its website at http://www.justice.gov/civil/consumer-protection-branch
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Tax Preparer Pleads Guilty to Stealing from His Clients and Filing False Tax ReturnsRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced today that CARLOS DE LA TORRE pled guilty before United States District Judge Naomi Reice Buchwald to one count of mail fraud and two counts of filing false income tax returns in connection with a years-long scheme to steal from the clients of his tax preparation business and defraud the Internal Revenue Service (“IRS”) and New York State Department of Taxation and Finance (“NYSDTF”).
U.S. Attorney Audrey Strauss said: “As he admitted today, Carlos De La Torre defrauded his tax preparation clients by converting to his own use money the clients had been told they owed the IRS and New York State. As he further admitted, De La Torre defrauded the IRS and the State by seeking refunds for overpayments of his taxes that were actually the funds he stole from his clients, and by failing to report those stolen funds as income. Now Carlos De La Torre awaits sentencing for his crimes.”
According to the allegations in the Complaint, Information, and statements made in court:
DE LA TORRE is a tax preparer and the sole proprietor of a bookkeeping and tax preparation business in New York, New York. From at least in or about 2014, through at least in or about 2020, DE LA TORRE represented certain small businesses based in New York City and their owners (the “Victims”) in connection with the preparation and filing of their personal and business federal and state tax returns. During that time period, DE LA TORRE told the Victims how much they allegedly owed in state and federal personal and business taxes, and the Victims gave DE LA TORRE checks in those amounts.
Instead of submitting the Victims’ checks as payments to be applied toward the Victims’ federal and state tax liabilities, DE LA TORRE fraudulently altered the checks and mailed them to the IRS and the NYSDTF as estimated tax payments to be credited against his own personal tax liabilities. Those payments greatly exceeded DE LA TORRE’s own tax liabilities each year. At the end of each tax period, DE LA TORRE fraudulently sought and received refunds from the IRS and the NYSDTF for the total amount of the altered checks he submitted to each agency, less any amount DE LA TORRE actually owed in taxes. Refunds from the IRS and the NYSDTF were wired by the U.S. Treasury and New York State, respectively, directly into DE LA TORRE’s personal bank account. In total, DE LA TORRE stole more than $466,000 from the Victims through this scheme.
DE LA TORRE also filed false tax returns with the IRS and NYSDTF in connection with this scheme, by failing to report on his tax returns the money he stole from the Victims. Had DE LA TORRE reported that income, as he was required to do, his total tax liability each year would have been much greater than it was, and he would not have been entitled to the refunds that he claimed. As a result, DE LA TORRE defrauded the IRS and NYSDTF of a total of at least $91,663 (including interest).
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DE LA TORRE, 79, of Little Neck, New York, pled guilty to one count of mail fraud, in violation of Title 18, United States Code, Section 1341, which carries a maximum sentence of 20 years in prison, and to two counts of subscribing to false individual tax returns, in violation of Title 26, United States Code, Section 7206(1), each of which carries a maximum sentence of three years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge. DE LA TORRE is scheduled to be sentenced by Judge Buchwald on December 21, 2021.
Ms. Strauss praised the outstanding investigative work of IRS Criminal Investigation and NYSDTF.
The prosecution of this case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Sarah L. Kushner is in charge of the prosecution.
Springfield Man Sentenced for ExtortionRead the Press Release
BOSTON – A Springfield man was sentenced today in federal court in Springfield for collecting on an extension of credit by extortionate means.
Anthony J. Scibelli, 52, was sentenced by U.S. District Court Judge Mark G. Mastroianni to six months in prison and two years of supervised release. Scibelli was also ordered to pay restitution of $200 and forfeiture of $1,300. On April 6, 2021, Scibelli pleaded guilty to one count of collecting on an extension of credit by extortionate means.
Beginning in 2017, Scibelli made collections on a $5,000 loan to the victim, who made monthly payments of $1,300 until June 2019. Scibelli used threats as he attempted to collect on that line of credit. Specifically, on June 19, 2019, Scibelli beat the victim for failing to make the monthly $1,300 payment. During the beating, the defendant threatened that the victim must have all the money “on the first,” referring to the 1st of the month.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police made the announcement today. Assistant U.S. Attorney Neil Desroches of Mendell’s Springfield Branch Office and Trial Attorney Marianne Shelvey of the Department of Justice’s Criminal Division’s Organized Crime and Gang Section prosecuted the case.
Southwestern PA Man Charged with Possessing CocaineRead the Press Release
PITTSBURGH, PA - A southwestern Pennsylvania man has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal narcotics laws, Acting United States Attorney Stephen R. Kaufman announced today.
The one-count Indictment, returned on August 25 and unsealed today, named Leonard Jackson, age 45, of Washington, PA and/or Brownsville, PA, as the sole defendant.
According to the Indictment, Jackson possessed with the intent to distribute 500 grams or more of cocaine on or about June 3, 2021.
The law provides for a minimum of five years and up to 40 years in prison, a fine of up to $5,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Yvonne M. Saadi and Jonathan D. Lusty are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation leading to the Indictment in this case.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
South Florida Immigration Consultant, Husbands, Wives Charged with Marriage FraudRead the Press Release
Miami, Florida – Federal prosecutors have charged 47-year-old Miami resident Yamira Sanchez with helping foreign national men fraudulently obtain their United States green cards by brokering their marriages to Cuban-born women living in South Florida as United States citizens or legal permanent residents. These brokered marriages allowed the foreign men to take advantage of accelerated immigration benefits under the Cuban Adjustment Act.
According to the indictment unsealed this week in federal district court in Miami, Sanchez owned Immigration Consultant and Immigration Corp., a South Florida company that offered immigration application and other services to the public. Some of the services were illegal, says the indictment. It is alleged that Sanchez and her co-conspirators profited from arranging fraudulent marriages between men from Italy with no legal status in the United States and women who had been born in Cuba, immigrated to the United States, and obtained legal status here as United States citizens or legal permanent residents. Because the women had been born in Cuba, the Cuban Adjustment Act allowed them to seek expedited immigration benefits for their foreign national husbands: immediate legal permanent residence in the United States, in most cases.
In exchange for thousands of dollars from men they barely knew, the women – all recruited by Sanchez and her co-conspirators – married the men and filed immigration petitions on their behalf, asking the United States government to grant legal permanent residence status to their newly-minted husbands, says the indictment. This allowed the men to permanently reside and legally work in the United States. It was Sanchez, through her company, who prepared, notarized, and filed the marriage and immigration paperwork necessary to secure immigration benefits for the Italian men, according to the indictment.
The indictment charges Sanchez with one count of conspiring to commit marriage fraud and five counts of unlawfully encouraging an alien to reside in the United States. If convicted, she faces up to 10 years in prison and a fine of up to $250,000.
The indictment also charges husband-beneficiaries Gennaro di Tommaso (32), Massimillano di Napoli (47), Fernando Sivo (25), Alessio Sarno (31), and Vincenzo Lopopolo (34), with conspiracy and marriage fraud, for which they face up to five years in prison and a fine of up to $250,000. It charges wife-petitioners Yaneisi Osorio Rodriguez (35), Emily Perez (30), Jaileen Dominguez (23), Elizabeth Penalver (29), and Loi Torriente (29), with conspiracy, marriage fraud, and one count each of unlawfully encouraging an alien to reside in the United States. If convicted, they face up to 10 years in prison and a fine of up to $250,000.
Defendants made their initial appearances this week before U.S. Magistrate Judge Edwin G. Torres. They are free on bond, pending trial.
Juan Antonio Gonzalez, Acting U.S. Attorney for the Southern District of Florida, and Anthony Salisbury, Special Agent in Charge, Homeland Security Investigations (HSI), Miami Field Office, announced the charges.
HSI Miami investigated this matter with assistance from United States Citizenship and Immigration Services. Assistant U.S. Attorney Will J. Rosenzweig is prosecuting the case. Assistant U.S. Attorney Annika Miranda is handling asset forfeiture.
An indictment contains mere allegations and defendants are innocent until proven guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov, under case no. 21-cr-20434.
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Richland Medical Doctor Pleads Guilty to Conspiracy to Distribute Fentanyl, Oxycodone and Other Controlled SubstancesRead the Press Release
Spokane – Joseph H. Harrington, Acting United States Attorney for the Eastern District of Washington, announced today that Dr. Janet Sue Arnold, age 63, of Benton City, Washington, pleaded guilty to conspiracy to distribute and possess with intent to distribute opioid pain medications (specifically, fentanyl, oxycodone, methadone, hydromorphone, methylphenidate, and amphetamine mixture) and other controlled substances (carisoprodol and alprazolam), without a legitimate medical purpose and outside the usual course of professional practice. Dr. Arnold faces a maximum term of imprisonment of twenty years. United States District Judge Edward F. Shea accepted Dr. Arnold’s guilty plea and scheduled a sentencing hearing for December 7, 2021, at 1:15 p.m. in Richland, Washington. Dr. Arnold is the final defendant to plead guilty in the case. Four other defendants, Danielle Corine Mata, age 44, of Richland, Washington, David Barnes Nay, age 43, of Kennewick, Washington, Lisa Marie Cooper, age 55, of Prosser, Washington, and Jennifer Cheri Prichard, age 46, of Prosser, Washington, previously pleaded guilty to conspiracy to distribute and possess with intent to distribute opioid pain medications and other controlled substances, and are scheduled to be sentenced on October 19, 2021, November 2, 2021, and November 9, 2021, in Richland, Washington.
According to court documents and information disclosed during court proceedings, Dr. Arnold owned and operated Desert Wind Family Practice, at 431 Wellsian Way in Richland, Washington. Beginning in approximately March 2016, and continuing until May 3, 2017, Dr. Arnold pre-signed hundreds of blank prescription forms and provided them to Mata, Prichard, and Cooper, who were drug addicts. These individuals then provided the illegal prescriptions to individuals seeking opioids and other controlled substances or used the prescriptions to get their drugs of choice. Dr. Arnold allowed Mata, who also acted as Desert Wind Family Practice’s office manager, to fill in all the required prescription information (patient name, drug type, dosage, and quantity) on the pre-signed blank prescriptions. Dr. Arnold’s practice of pre-signing blank prescription forms enabled the conspirators, including Nay, a drug dealer and addict, to distribute significant quantities of opioid medications and other controlled substances.
Acting United States Attorney Joseph H. Harrington said, “Dr. Arnold abandoned her role as a medical doctor by essentially turning over her prescription pad to her office manager and others. Today’s guilty plea should serve as a warning to all medical professionals that if you abuse your medical license by prescribing opioids and other drugs without a legitimate medical purpose and outside the usual course of professional practice, you will be held accountable. I commend the U.S. Drug Enforcement Administration and the U.S. Department of Health & Human Services, Office of the Inspector General, agents who investigated this case.”
This investigation was conducted by the U.S. Drug Enforcement Administration and the U.S. Department of Health & Human Services, Office of the Inspector General. This case is being prosecuted by George J.C. Jacobs, III and Dominique J. Park, Assistant United States Attorneys for the Eastern District of Washington.
Registered Sex Offender Sentenced for Possessing Child PornographyRead the Press Release
WILMINGTON, N.C. – A Washington, North Carolina man was sentenced to 210 months in prison for possession of child pornography followed by a lifetime of supervised release. On April 8, 2021, Nathanael Thomas Jackson pled guilty to the charges.
According to court documents and other information presented in court, Jackson, 28, possessed over 10,000 images of child pornography. The investigation began in 2018 with a cybertip that Jackson had uploaded two videos depicting sexual abuse of children to an online account. Agents were able to trace the uploads back to Jackson. Using search warrants, agents found Jackson in possession of 10,715 images, including videos, of child sexual abuse and child exploitation. The investigation uncovered that Jackson had used a pseudo identity and email account to coerce and threaten minors to send him explicit images of themselves.
Jackson is a registered sex offender from previous convictions in 2015 for incest in Perquimans County, North Carolina.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Richard E. Myers II. The Federal Bureau of Investigation and the North Carolina State Bureau of Investigation investigated the case, with assistance from the Beaufort County Sheriff’s Office, the Michigan State Police, the National Center for Missing and Exploited Children and the Beaufort County District Attorney’s Office. Assistant U.S. Attorney John Parris prosecuted the case.
This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.
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. 4:20-CR-00094-M.
Progress Towards Reforming the UAWRead the Press Release
Acting U.S. Attorney Saima S. Mohsin announced that progress has been made towards reforming the International Union, United Automobile, Aerospace, and Agricultural Workers of America (“UAW”). The UAW represents over 400,000 active members and over 580,000 retired members in more than 600 local unions across the United States.
Previously, numerous high-level officials of the UAW had been the subject of criminal prosecutions based on fraud, corruption, embezzlement, and labor law violations. These prosecutions had resulted in the criminal convictions of two UAW Presidents, Gary Jones and Dennis Williams, two UAW Vice Presidents, Joseph Ashton and Norwood Jewell, as well as seven other senior UAW officials.
Following the completion of a significant portion of the criminal investigation, the United States brought an anti-corruption and anti-fraud civil action against the UAW in December 2020 seeking injunctive and equitable relief in order to stop the fraud and corruption and to reform the UAW. After the United States filed its civil complaint against the UAW in United States of America v. UAW, Case No. 20-cv-13293-Lawson, and after extensive negotiations, the United States and the UAW entered into an agreement to resolve the case through a Consent Decree. The Consent Decree governing the UAW was entered by the Honorable David M. Lawson, United States District Judge, on January 29, 2021.
Under the terms of the Court’s Consent Decree, the Court appointed an independent Monitor who has the authority to exercise disciplinary powers within the UAW, to investigate possible fraud or corruption within the union, and to seek discipline against UAW officers and members before a UAW Trial Committee, or before an independent Adjudications Officer appointed by the Court. Members can report misconduct by UAW officials to the Monitor at https://www.uawmonitor.com. The Monitor’s oversight of the union will last for six years, with a possible early termination if the Monitor were to find that his work is complete, and the UAW no longer needs the Monitor’s services, or extension if the Monitor or the parties feel that a longer period is appropriate.
The Consent Decree fully and finally resolved the criminal and civil investigation of the UAW as an entity. The UAW agreed to resolve a tax investigation by making a payment of $1.5 million to the Internal Revenue Service in connection with administrative fees that the union received from the three joint training centers that were operated with the three car manufacturers. The UAW has made that payment to the IRS. In addition, the UAW has already paid back over $15 million to the training centers for improper chargebacks that the union received from two of the training centers. This money will be used by the joint programs for the health and safety of auto workers. The National Training Center, which was the mechanism whereby FCA US LLC executives corruptly funneled money and other things of value to UAW officials will be dissolved and replaced with an untainted entity.
After undergoing a rigorous selection process, the U.S. Attorney’s Office selected Neil M. Barofsky to serve as the Monitor of the UAW and asked the Court to so appoint him. On May 12, 2021, Judge Lawson entered an order appointing Mr. Barofsky as the UAW Monitor. Mr. Barofsky is a partner at the law firm of Jenner & Block. There, he leads the firm’s monitorship practice, and has served as a monitor in other matters, including his appointment to monitor Credit Suisse Securities LLC and Credit Suisse AG following billion dollar settlements. In these matters, Mr. Barofsky was separately appointed by the Department of Justice and the New York State Department of Financial Services. Prior to Mr. Barofsky’s employment with Jenner & Block, he worked as an Assistant United States Attorney in the United States Attorney’s Office in the Southern District of New York. He was also appointed to be the initial Special Inspector General for the Troubled Asset Relief Program (or TARP), an investigative agency that he built from scratch. The Monitor’s staff includes experts in auditing, compliance, internal investigations, labor law, and labor elections.
Since Mr. Barofsky became the Monitor in May 2021, he has taken a number of actions in furtherance of the Consent Decree’s goal of reforming the UAW and blocking additional criminal conduct.
First, the Monitor has been diligently working towards holding the referendum provided for by the Consent Decree. The Consent Decree requires that the referendum occur by November 12, 2021. The Monitor has directed that the referendum take place by a secret-ballot vote of all of the membership, overseen by the Department of Labor. The referendum will determine whether to change the UAW’s election method from the current delegate system to a direct election model, where the entire UAW membership could vote for the UAW President and the other members of the UAW’s International Executive Board. Through the referendum, members will decide whether the UAW’s constitution will be changed to provide for a direct election system in the union, sometimes referred to as “one member, one vote,” starting in the 2022 election cycle.
The Monitor has been working closely with officials from the Department of Labor’s Office of Labor Management Standards (“OLMS”) to plan and organize the referendum. OLMS is the department’s expert in conducting and overseeing labor union elections. The Monitor has directed that the referendum will be conducted by mail-in voting so-as-to ensure that all active and retired UAW members will have an opportunity to participate fully in the referendum. The Monitor has issued interim rules governing the conduct of the referendum. The rules direct that no UAW dues money can be used to campaign for or against the referendum. The rules can be found here: https://www.uawmonitor.com/electionsreferendum.
Acting US Attorney Mohsin stated, “The UAW Monitor has made significant progress over the past three months in implementing reform in the UAW. The November referendum provides a historic opportunity for the UAW’s rank and file membership to be heard on whether to change the union’s election system. We insisted that the Consent Decree give the union’s membership the opportunity to decide for themselves whether to change to a direct election system because of the pervasive culture of corruption that has plagued the UAW’s leadership for so many years. We encourage all UAW members to educate themselves on the issues in the referendum, make up their own minds, and let their voices to be heard by casting a vote in the referendum.”
As part of the referendum process, the UAW Monitor has gone live with a Website, www.uawmonitor.com, to provide information to the UAW’s membership and to the public about the Referendum and about the Monitor’s activities. The Monitor is planning a joint webcast in the fall so that both sides on the issue presented by the referendum will be able to make their case to the UAW’s membership.
A second aspect of the work of the UAW Monitor is to investigate misconduct by UAW officials and then, where appropriate, to bring internal UAW charges against any official found by the Monitor to have engaged in misconduct. The UAW Monitor will present and try these charges before the UAW Adjudications Officer. The Adjudications Officer is another official to be appointed under the terms of the Consent Decree. The Adjudications Officer will have the power to act as the judge and factfinder of the disciplinary charges brought by the UAW Monitor. The Adjudications Officer will have the power to punish UAW officials who engage in misconduct as found by the Monitor. The punishments could include, for example, expulsion from the UAW or termination from UAW positions.
The UAW Monitor has already begun investigating historical acts of misconduct that were discovered by the United States during the criminal investigation in instances where the United States has decided not to bring criminal charges. As part of this process, prosecutors with the U.S. Attorney’s Office and federal law enforcement agents have been meeting with the Monitor’s staff to provide information about historical misconduct. As part of this process, the United States has provided the Monitor, as an arm of the Court and pursuant to Court order, with various investigative materials to assist the Monitor in investigating historical misconduct. The United States has also sought and received permission from the Court to provide the Monitor with certain grand jury materials relating to closed matters and with copies of sealed search warrant applications. Finally, members of the Monitor’s staff have met with a number of individuals who have been cooperating with the government’s criminal investigation. The Monitor is seeking to gather additional information for purposes of deciding whether any internal disciplinary charges are appropriate against any UAW officials or members.
Besides planning and organizing the upcoming referendum and beginning to investigate possible internal misconduct, the Monitor is also in the process of reviewing audit, accounting, and financial controls at the UAW. The Monitor is assessing the controls the UAW has implemented to meet its obligations under the Consent Decree, is identifying gaps and areas of improvement through rigorous testing protocols, and is overseeing the implementation of further reforms by the UAW and its consultants. In addition, the Monitor has the right under the Consent Decree to disapprove certain employment and contractual decisions by the UAW, and to review relevant financial data, books, records, audit findings, and other similar records.
The United States will soon propose to the Court a candidate to serve as the UAW Adjudications Officer. The Court will then decide whether to appoint that individual as the Adjudications Officer. If appointed, the Monitor will be able to bring internal UAW disciplinary matters before the Adjudications Officer if appropriate.
The Consent Decree governing the UAW is being handled by Assistant U.S. Attorneys David A. Gardey and Steven Cares.
Previously Convicted Baltimore Bank Robber Pleads Guilty to Committing Two Bank Robberies at the Same Bank Within One WeekRead the Press Release
Baltimore, Maryland – Lloyd Phillip Simon, age 71, of Baltimore, Maryland, pleaded guilty today to bank robbery, in connection with two 2019 bank robberies at the same bank within one week.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; and Commissioner Michael Harrison of the Baltimore Police Department.
According to his guilty plea, on August 13 and August 19, 2019, Simon robbed a bank located in the University of Maryland Medical Center. In each instance, Simon entered the lobby of the Medical Center, partially obscuring his face by wearing a baseball hat and large glasses. Upon entering the bank, Simon approached a teller and demanded money. In the first robbery, Simon told the teller he had a gun. Fearing for their safety, the tellers gave Simon money and he left the bank.
Specifically, on August 13, 2019, a video surveillance camera captured Simon walk into the lobby of the Medical Center wearing a black jacket, white shirt, black and white shorts, and black and white shoes. He also wore a purple and gold lanyard around his neck. His face was partially hidden by a grey baseball hat and large glasses. Simon obtained a white wristband from the receptionist, which allowed him access to the food court and bank area of the Medical Center. As Simon walked toward the bank, he reached into a donation bin located in the atrium and took one of the donations placed there - a black backpack. He then approached the bank and placed his black jacket and the newly acquired black backpack on a bench outside the bank. Simon immediately approached Bank Teller #1, who was in the process of counting money from the bank’s night drop. Simon demanded money from Bank Teller #1, stating, “Give me that money. I have a gun. No dye packs.” Fearing for her safety, Bank Teller #1 gave Simon all of the money that she had been counting. Simon left the bank, grabbing the backpack and black jacket, as he quickly walked away. Simon donned the black jacket to cover his white shirt and as he exited the Medical Center, he took off his hat and glasses. Simon’s face was captured on an outdoor video surveillance camera.
On August 19, 2019 Simon robbed the same bank. A video surveillance camera captured Simon entering the Medical Center lobby, where he again obtained a white wristband from the receptionist. Simon was wearing different clothing—a black and grey striped shirt; red shorts; black, white, and red shoes; and a lanyard depicting flames. Simon again wore large glasses and a baseball cap – a blue LA Dodgers baseball cap, to partially obscure his face. This time, Simon went through a back corridor before approaching the bank and did not immediately enter the bank. Instead, Simon is observed on video surveillance peering toward the bank, then sitting down on a bench outside of the bank. Simon waited on the bench until the bank security guard left on his lunch break. Simon then donned his glasses and entered the bank. Bank Teller #1 immediately recognized Simon from the previous robbery the week before. She told Simon to go wait in line, and then went to press the panic button. Simon approached Bank Teller #2, and stated words to the effect of “Give me all of your money, I want the big stuff!” Fearing for her safety, Bank Teller #2 gave him money, and Simon stated, “Hurry up, I’m not joking!” Simon continued to demand more money, so Bank Teller #2 gave Simon more money, and she slipped a hidden GPS tracking device into the money. As Simon left the bank, he is observed on camera fanning through the money that he took from Bank Teller #2. Simon found the hidden GPS tracking device, removed it from the wad of cash and dropped the tracker on the floor of the bank as he left. Simon quicky left the Medical Center, and outdoor video cameras captured Simon’s image after he took off his hat and glasses.
On August 28, 2019, investigators obtained and executed a search warrant at Simon’s apartment. Law enforcement recovered the two lanyards, shorts, shoes, and a shirt that matched the clothing worn by Simon during the robberies, as well as a black backpack consistent with the backpack Simon took from the donation bin. In addition, investigators recovered a single round of .357 Magnum ammunition in Simon’s kitchen cabinet.
On January 29, 2013, Simon was sentenced to 78 months in federal prison, after being convicted of bank robbery. As a result of this conviction, Simon knew he was prohibited from possessing ammunition.
Simon faces a maximum sentence of 20 years in federal prison for bank robbery. U.S. District Judge Catherine C. Blake has not yet scheduled a sentencing date.
Acting United States Attorney Jonathan F. Lenzner commended the FBI and the Baltimore Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Christine Duey and Mary Setzer, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Postal Service Employee Charged with Stealing MailRead the Press Release
Jacksonville, Florida – Acting United States Attorney Karin Hoppmann announces the unsealing of an indictment charging James Gregory Sweat (60, Jacksonville) with theft of mail by a United States Postal Service employee. If convicted, Sweat faces a maximum penalty of five years in federal prison.
According to the indictment, on June 4, 2021, while serving as a United States Postal Service employee, Sweat took a greeting card from the mail and stole cash contained inside.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the U.S. Postal Service – Office of Inspector General. It will be prosecuted by Assistant United States Attorney Scot Morris.
Pennsylvania Man Sentenced to More than Eight Years in Prison for Sex Offense Against MinorRead the Press Release
BECKLEY, W.Va. – A Pennsylvania man was sentenced today to 97 months in prison for a sex offense against a minor. Gregory Thomas O’Connor, 48, of Stahlstown, Pennsylvania, previously pleaded guilty to travel in interstate commerce to engage in illicit sexual activity with a minor. Following release from prison, O’Connor will be placed on 15 years of supervised release and will be required to register as a sex offender.
According to court documents, O’Connor admitted that on August 7, 2020, he initiated contact with a person on a Kik Messaging group for West Virginia teens. Believing this person to be a 13-year-old girl from Beckley, O’Connor engaged in conversations over the next 6 weeks wherein he told the minor he wanted to meet her to engage in sexual activity and also coached her on masturbation and watching pornography in order to prepare for their sexual encounter. On September 2, 2020, O’Connor intended to travel to Beckley to meet the minor. He drove from Pennsylvania to Fairmont but then had to turn around due to a work emergency. He continued to discuss traveling at a future date to meet the girl for sexual activity.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the FBI Child Exploitation and Human Trafficking Task Force.
United States District Judge Frank W. Volk imposed the sentence. Assistant United States Attorneys Jennifer Rada Herrald and Timothy Boggess are handling the prosecution.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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. 5:21-cr-00073.
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Omaha Woman Sentenced for Role in Sex Trafficking of MinorsRead the Press Release
Acting United States Attorney Jan Sharp announced that Lauryn Besta, 22, of Omaha, Nebraska, was sentenced today in federal court in Omaha for conspiracy to engage in sex trafficking of a minor. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Besta to 142 months’ imprisonment. There is no parole in the federal system. After her release from prison, Besta will begin a five-year term of supervised release.
An investigation conducted by Homeland Security Investigations and the Nebraska Attorney General’s Office determined that from January 2016 and continuing through January 2019, in the District of Nebraska and elsewhere, Besta (also known as “Lola”) and a co-defendant, Darien Brewer, conspired and agreed to recruit, transport, and entice four minor females, under the age of 18 years old, to engage in commercial sex. The victims were introduced into the lifestyle of prostitution through the use of drugs and alcohol provided by Besta and Brewer. Besta and Brewer often referred to the minors as “the Bunny Gang.”
Investigators determined that Besta and Brewer would instruct the minors how to advertise, solicit, and charge for commercial sex acts in the District of Nebraska and elsewhere. They obtained commercial sex customers for the minors by purchasing and posting advertisements on internet sites such as www.backpage.com. Sex customers responded to the advertisements via telephone and text message and commercial sex acts were coordinated to occur at various hotels, motels, and other locations. Besta and Brewer used vehicles and public highways to drive the minors to various hotels, motels, and other locations for commercial sex acts, including Omaha, Nebraska; Lincoln, Nebraska; Iowa; and Houston, Texas. The minors paid a portion or all of the payments received for commercial sex acts to Besta and Brewer.
On August 27, 2021, Chief Judge Rossiter sentenced Brewer to 180 months’ imprisonment and a five-year term of supervised release.
This case was investigated by Homeland Security Investigations and the Nebraska Attorney General’s Office.
Omaha Man Gets 120 Months’ Imprisonment for Possessing Child PornographyRead the Press Release
Acting United States Attorney Jan Sharp announced that Tevin R. King, 28, of Omaha, Nebraska, was sentenced today in federal court in Omaha for possession of child pornography. Senior United States District Judge Joseph F. Bataillon sentenced King to 120 months’ imprisonment. There is no parole in the federal system. After his release from prison, King will begin a 15-year term of supervised release. Senior Judge Bataillon also ordered King to pay $3,000 in restitution and he will be required to register as sex offender.
On November 14, 2019, King self-reported to the United States Probation Office that he had viewed child pornography on his computer in his apartment in Omaha, Nebraska. King was previously convicted of possession of child pornography in the Northern District of Oklahoma on May 18, 2017 and was sentenced to 24 months’ imprisonment followed by a term of supervised release. After his release from prison, King moved to Nebraska where his term of supervised release was enforced.
On November 18, 2019, the United States Probation Office subsequently conducted a search of King’s residence to retrieve his computer. During the search of the residence, King admitted to looking at child pornography on his computer. He also admitted that he acquired and viewed the child pornography using the internet through the “dark web,” or Tor. King admitted using a computer cleaning software program to wipe child pornography files from his computer.
A forensic search of King’s computer identified at least 10 images of child pornography. The images depicted nude or semi-nude, prepubescent females, between 5-10 years old, engaging in sexually explicit conduct, which included exhibiting their genitals and pubic areas.
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.projectsafechildhood.gov.
This case was investigated by the Omaha FBI's Child Exploitation and Human Trafficking Task Force.
Nigerian National Pleads Guilty to Various Online Fraud SchemesRead the Press Release
BOSTON – A Nigerian national residing in Boston pleaded guilty on Wednesday, Sept. 1, 2021 to his role in online fraud schemes.
Macpherson Osemwegie, 32, pleaded guilty to one count of conspiracy to commit bank and wire fraud before U.S. District Court Judge Denise J. Casper, who scheduled sentencing for Jan. 27, 2022. Osemwegie was charged on July 26, 2021.
Osemwegie conspired with others to participate in a series of romance and other online scams designed to defraud victims into sending money to accounts and debit cards that Osemwegie and others controlled. Romance scams occur when a criminal adopts a fake online identity to gain a victim’s affection and trust. The scammer then uses the illusion of a romantic or close relationship to manipulate and/or steal from the victim.
To carry out the schemes, Osemwegie and his co-conspirators used false foreign passports in others’ names to open numerous bank accounts, and in turn directed the victims to send money to these accounts.
The charge of conspiracy to commit bank and wire fraud provides for a sentence of up to 30 years in prison, five years of supervised release, a fine of up to $1 million or twice the gross gain or loss, whichever is greater, restitution and forfeiture. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Joshua McCallister, Acting Inspector in Charge of the U.S. Postal Inspection Service; and Jonathan Davidson, Special Agent in Charge of the U.S. Department of State’s Diplomatic Security Service made the announcement. Assistant U.S. Attorneys Sara Miron Bloom and Ian Stearns of Mendell’s Securities, Financial & Cyber Fraud Unit are prosecuting the case.
New Haven Man Pleads Guilty to Federal Firearm OffenseRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that TERRENCE COLEMAN, 20, of New Haven, pleaded guilty today in New Haven federal court to a firearm offense.
According to court documents and statements made in court, in September 2020, Coleman, an habitual user of marijuana, possessed a Beretta .22 caliber pistol, which he subsequently traded to another individual in exchange for marijuana.
Coleman, who was arrested on April 16, 2021, pleaded guilty to possession of a firearm by an individual who is an unlawful user of or addicted to a controlled substance.
Coleman is scheduled to be sentenced by U.S. District Judge Janet C. Hall on November 29, 2021, at which time he faces a maximum term of imprisonment of 10 years. He is released on a $10,000 bond pending sentencing.
This matter has been investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by Assistant U.S. Attorneys Natasha M. Freismuth and Konstantin Lantsman.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Monessen, PA Man Indicted on Drug and Gun ChargesRead the Press Release
PITTSBURGH, PA - A resident of Monessen, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on federal narcotics and firearms charges, Acting United States Attorney Stephen R. Kaufman announced today.
The three-count Indictment, returned on August 25 and unsealed today, named Byron McCrae, age 32, as the sole defendant.
According to Count One of the Indictment, on or about March 3, 2021, McCrae possessed with the intent to distribute 500 grams or more of cocaine and 28 grams or more of cocaine base, in the form commonly known as crack. On or about that same date, McCrae also possessed a firearm and ammunition as a convicted felon (Count Three) and in furtherance of a drug trafficking crime (Count Two).
As to Count 1, the law provides for a minimum of five and up to 40 years in prison, a fine of $5,000,000 or both. The maximum sentence for Count 2 is at least five years and up to life in prison and a fine of up to $250,000. As to Count 3, the minimum sentence is 15 years in prison up to life and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Yvonne M. Saadi and Jonathan D. Lusty are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation leading to the Indictment in this case.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Milwaukee Area Community Support Program Facilities Agree to Pay $390,080 to Resolve False Claims Act AllegationsRead the Press Release
Acting United States Attorney Richard Frohling announced today that Bell Therapy, Inc., and its parent company, Phoenix Care Systems, Inc., agreed to pay $390,080 to resolve allegations that they billed for services at the incorrect rates and billed for services not properly reimbursed, causing false claims for those services to be submitted to the Medicaid Program.
Bell Therapy operated two facilities in the Milwaukee area licensed to administer Community Support Programs (CSPs). CSPs provide services to mentally ill individuals in Wisconsin and are supported by state and federal Medicaid funds. The settlement resolves allegations that Bell Therapy fraudulently submitted claims for services rendered by providers without the requisite credentials or qualifications and/or at an incorrect billing rate as well as claims for group services billed as individual services. It also resolves allegations that Bell Therapy providers improperly billed for non-face-to-face activities.
“The U.S. Attorney’s Office prioritizes efforts to stop healthcare fraud and seeks to protect health care program beneficiaries and the American taxpayers,” said Acting United States Richard Frohling. “This settlement demonstrates our continuing efforts to combat violations of the False Claims Act.”
“Medical providers must ensure that the services they provide and bill for are conducted by personnel with appropriate credentials and qualifications and accurately reflect the service that is actually provided,” said Lamont Pugh III, U.S. Department of Health & Human Services, Office of Inspector General – Chicago Region. “The OIG will continue to identify and investigate allegations of potential fraudulent billing to the Medicaid program in order to protect the health and safety of patients and vital taxpayer dollars.”
The settlement resolves a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States. Accordingly, the whistleblower will receive a share of the settlement proceeds.
Assistant United States Attorney Lisa Yun represented the government in this matter. The U.S. Department of Health and Human Services Office of Inspector General assisted in the investigation. The claims resolved by the settlement are allegations only; Bell Therapy and Phoenix Care Systems do not admit liability for the allegations.
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For further information contact:
Public Information Officer Kenneth Gales
414-297-1700
Mexican National Who Allegedly Headed International Cocaine Trafficking Organization Extradited from MexicoRead the Press Release
LOS ANGELES – The Mexican leader of a transnational drug trafficking organization arrived here this afternoon after being extradited from Mexico to face federal charges that he conspired to transport cocaine worth hundreds of millions of dollars from South America to the United States.
Angel Humberto Chavez-Gastelum, 47, who was initially arrested by Mexican authorities in November 2018 in Querétaro, Mexico, is scheduled to be arraigned Tuesday afternoon on charges contained in a 22-count indictment that accuses him of being the principal manager of a narcotics enterprise.
Chavez-Gastelum – who has been designated by the United States government as one of the world’s most-wanted drug traffickers – allegedly controlled a drug distribution network with supply routes that brought cocaine from Colombia into Central America, then to Mexico, with a final destination of the United States. During the investigation into the organization, law enforcement authorities around the world seized approximately 7,700 pounds of cocaine, with a potential U.S. street value of $500 million.
The indictment charges Chavez-Gastelum with 12 offenses, including drug trafficking, drug importation and money laundering. He is also charged with being the principal leader of a continuing criminal enterprise, an offense that carries a mandatory sentence of life in federal prison.
Chavez-Gastelum is also charged with two murders on July 7, 2017, committed in connection with the alleged continuing criminal enterprise and related drug offenses.
The investigation in this case has led to the arrests of co-conspirators on three continents. The alleged Colombian leader of the organization, Victor Hugo Cuellar-Silva, was captured and extradited to the United States in September 2018.
Chavez-Gastelum is the lead defendant in the indictment that charges a total of 47 defendants. With Chavez-Gastelum’s expected court appearance, a total of 22 defendants will have been arraigned in this case. A trial in this case was previously scheduled for March 15, 2022.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until proved guilty in court.
This indictment is the result of a coordinated effort of multiple law enforcement agencies, including the Drug Enforcement Administration, Homeland Security Investigations and IRS Criminal Investigation.
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 Justice Department’s Office of International Affairs of the Department’s Criminal Division provided substantial assistance in this matter.
Assistant United States Attorneys Brittney M. Harris, J. Mark Childs, Matthew J. Rosenbaum, and Jehan M. Pernas of the International Narcotics, Money Laundering, and Racketeering Section are prosecuting this case.
Mexican National Sentenced for Trafficking in WildlifeRead the Press Release
A citizen of Mexico was sentenced today to three years in prison to be followed by three years of supervised release for his role in a conspiracy to smuggle protected reptiles from Mexico to the United States.
According to court documents, Jorge Alonso Gutierrez pleaded guilty on April 28 to a two-count information charging him with one count of conspiracy to traffic wildlife and one count of smuggling. Gutierrez admitted to being part of a conspiracy to smuggle wildlife from Mexico into the United States via El Paso, Texas. The reptiles included a Central American river turtle (Dermatemys mawaii), a species that is protected under the Convention on International Trade in Endangered Species (CITES) and is also listed as endangered under the Endangered Species Act.
Gutierrez was the middleman between several Mexico-based suppliers of wildlife and their U.S.-based customers. Gutierrez’s role as middleman was to coordinate and receive wildlife at the Jaurez, Mexico airport and deliver them to a co-conspirator in Juarez who smuggled them in his car into the United States through an El Paso border crossing. Once in the United States, the wildlife was shipped via Fed Ex or U.S. Postal Service to U.S.-based customers. On many occasions, animals died during transport.
Between April 2015 and February 2020, Gutierrez either illegally transported or caused to be illegally transported wildlife across the U.S.-Mexico border with a market value in excess of $3,500,000. Gutierrez was paid by Mexican suppliers to facilitate the smuggling of wildlife into the United States.
On Sept. 22, 2016, Gutierrez received wildlife from the Juarez airport and transported and delivered the wildlife to a co-conspirator who smuggled the wildlife into the United States and an El Paso, Texas, border crossing. The wildlife was ultimately repackaged and sent by Fed-Ex to buyers in the United States. Neither Guiterrez nor the co-conspirator had a CITES import permit for any of the smuggled animals, nor were permits issued in the name of any of the suppliers.
The sentencing was announced by Assistant Attorney General Todd Kim for the Environment and Natural Resources Division and Assistant Director for Law Enforcement Edward Grace of the U.S. Fish and Wildlife Service (USFWS).
The investigation was handled by the U.S. Fish & Wildlife Service’s Office of Law Enforcement, and the Environmental and Natural Resources Division’s Environmental Crimes Section. The government is represented by Trial Attorneys Mary Dee Carraway and Gary Donner of the Justice Department’s Environmental Crimes Section of the Environment and Natural Resources Division.
Mescalero man charged with federal firearms violationRead the Press Release
ALBUQUERQUE, N.M. – Wallace Reid Rice, 29, of Mescalero, New Mexico, and an enrolled member of the Mescalero Apache Tribe, appeared in federal court today for a preliminary hearing where he was charged with being a felon in possession of a firearm and ammunition. Rice will remain detained pending trial.
According to a criminal complaint, on July 25, Rice allegedly was found in possession of a loaded 9mm handgun on the Mescalero Apache Reservation. In 2016, Rice was convicted of possession with intent to distribute a substance containing methamphetamine. As a previously convicted felon, Rice cannot legally possess a firearm or ammunition.
A complaint is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Rice faces up to 10 years in prison.
The Mescalero Agency of the Bureau of Indian Affairs is investigating this case with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Matilda McCarthy Villalobos is prosecuting the case.
Martinsville Man Sentenced on Child Pornography Charges, Possession of a Firearm by a Convicted FelonRead the Press Release
DANVILLE, Va. – A Martinsville, Virginia man was sentenced last month to 140 months in prison for possessing child pornography and possessing a firearm after having been previously convicted of a felony.
According to court documents, Terrance Antwain Penn, 38, came to the attention of law enforcement in December 2019 after a minor female reported having sexual contact with him on several occasions. The minor told police Penn used a phone to record this sexual activity and provided descriptions of two cell phones Penn possessed.
On December 7, 2019, authorities initiated a traffic stop on a car being driven by Penn. A subsequent search of the vehicle revealed two cell phones matching the descriptions given by the minor, as well as a loaded Taurus, model G2C, 9mm semi-automatic pistol in the center counsel.
Investigators obtained search warrants for Penn’s phones, which contained videos of the defendant having sexual contact with the minor female.
Acting U.S. Attorney Daniel P. Bubar of the Western District of Virginia and Special Agent in Charge Charlie J. Patterson for the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) made the announcement.
The investigation of the case was conducted by ATF, with the assistance of Homeland Security Investigations and the Martinsville Police Department. Assistant U.S. Attorney Kristin B. Johnson prosecuted the case for the United States.
Marine Corps Colonel Pleads Guilty in International Navy Bribery and Fraud ScandalRead the Press Release
SAN DIEGO – U.S. Marine Corps Colonel Enrico DeGuzman pleaded guilty to a bribery charge today, admitting that he accepted more than $67,000 in extravagant meals, drinks, entertainment and hotel stays in Hong Kong, Singapore, and Tokyo from foreign defense contractor Leonard Glenn Francis.
DeGuzman admitted that in return for this and other things of value, he corruptly used his official position to assist Francis, the owner and CEO of Singapore-based Glenn Defense Marine Asia, a ship husbanding company that serviced U.S. Navy ships in the Asia Pacific region. DeGuzman admitted that he endeavored to influence Navy ships into ports serviced by GDMA; he shared confidential Navy information with Francis in order to help GDMA; and he helped with evaluating and indoctrinating potential new Navy members into Francis’s cabal.
In one instance, DeGuzman joined Francis and others for a $40,000 meal that featured foie gras terrine, duck leg confit, ox-tail soup, and roasted Chilean sea bass, paired with expensive wine and champagne, followed by digestifs, cigars and overnights at the Shangri La - all at Francis’s expense.
DeGuzman was one of nine members of the U.S. Navy’s Seventh Fleet indicted by a federal grand jury in March 2017 for conspiring with Francis and for receiving bribes. DeGuzman is the second of the Seventh Fleet defendants to plead guilty. The trial of the remaining defendants was scheduled to begin November 1, 2021, but yesterday it was postponed until February 7, 2022. The remaining defendants - who are accused of trading military secrets and substantial influence for sex parties with prostitutes and luxurious dinners and travel - include U.S. Navy Rear Admiral Bruce Loveless; Captains David Newland, James Dolan, Donald Hornbeck and David Lausman; Commander Stephen Shedd; and Commander Mario Herrera.
The overarching fraud and bribery case has resulted in federal criminal charges against 34 U.S. Navy officials, defense contractors and the GDMA corporation. So far, 27 of those have pleaded guilty, admitting collectively that they accepted millions of dollars in luxury travel and accommodations, meals, or services of prostitutes, among many other things of value, from Francis in exchange for helping GDMA win and maintain contracts and overbill the Navy by over $35 million.
DeGuzman served on the Seventh Fleet Staff as the Fleet Marine Officer from July 2004 to July 2007. In this role, DeGuzman was responsible for coordinating the mission of the U.S. Marine Corps within the Seventh Fleet area of responsibility. From July 2007 to January 1, 2011, DeGuzman served as the Assistant Chief of Staff of Operations for U.S. Marine Corps Forces, Pacific, and thereafter, DeGuzman served in a civilian capacity as the Deputy Chief of Staff of Operations for U.S. Marine Corps Forces, Pacific.
The U.S. Navy’s Seventh Fleet represents a vital piece of the United States military’s projection of power as well as American foreign policy and national security. The largest numbered fleet in the U.S. Navy, the Seventh Fleet is comprised of 60-70 ships, 200-300 aircraft and approximately 40,000 Sailors and Marines. The Seventh Fleet is responsible for U.S. Navy ships and subordinate commands that operate in the Western Pacific throughout Southeast Asia, Pacific Islands, Australia, and Russia and the Indian Ocean territories, as well ships and personnel from other U.S. Navy Fleets that enter the Seventh Fleet’s area of responsibility.
“With every extravagant meal, Enrico DeGuzman violated his duty to serve the United States with honor and integrity,” said Acting U.S. Attorney Randy Grossman. “Today those choices have caught up to him, and he has been held accountable.” Grossman commended the federal prosecutors and agents who diligently pursued this case.
“Mr. DeGuzman knowingly misused his position of trust as a senior U.S. Marine Corps officer to actively work with, and advocate for, a corrupt U.S. Navy contractor, while expecting and receiving lavish gifts in return, all at the expense of the U.S. Navy and the national security interests of the United States,” said Kelly P. Mayo, the Director of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS). “As this case underscores, DCIS will work tirelessly with its partners to root out corruption within the Department of Defense and its components in order to maintain the trust, faith, and precious resources of the American taxpayer.”
“Colonel DeGuzman put his personal interests ahead of protecting the nation,” said NCIS Director Omar Lopez. “NCIS and our law enforcement partners will continue to aggressively pursue any act of bribery and corruption involving Mr. Francis and GDMA or otherwise as these reprehensible acts diminish the operational readiness of the fleet and warfighter superiority of the USMC and U.S. Navy.”
According to his plea agreement, DeGuzman admitted to receiving the following bribes from Francis:
- On February 17, 2006, during the U.S.S. Blue Ridge's port visit to Hong Kong, DeGuzman and others dined and drank at Francis’s expense at the Petrus Restaurant at a cost of more than $20,000. To conceal and cover up their corrupt relationship, Francis created fraudulent receipts for the Petrus dinner that DeGuzman knew represented a small fraction of the actual cost of the dinner. While in Hong Kong, DeGuzman and others also stayed at the Shangri-La Hotel paid for, in part, by Francis.
- On March 9, 2006, during the U.S.S. Blue Ridge’s port visit to Singapore, DeGuzman and others dined with Francis at the Jaan Restaurant in Singapore. Prior to dinner, DeGuzman and others enjoyed entertainment and cocktails on the exclusive rooftop helipad. At dinner, enjoyed foie gras terrine, duck leg confit, ox-tail soup, and roasted Chilean sea bass, paired with expensive wine and champagne, followed by digestifs and cigars. The estimated cost to Francis was $40,000.
- On September 9, 2006, DeGuzman and others dined at Francis's expense at the New York Grill in Tokyo, Japan, and stayed at Francis's expense at the Park Hyatt Hotel, all at a total cost to Francis of approximately $30,000.
- During the U.S.S. Blue Ridge's port visit to Singapore from about February 22-27, 2007, Francis paid for the hotel expenses for DeGuzman and others at the Shangri-La Hotel, Singapore at a total cost to Francis of approximately $50,000. As part of this port visit, DeGuzman and others dined with Francis at Francis's expense on multiple occasions, including at the Blu Restaurant within the Shangri-La Hotel, and at the Jaan Restaurant atop the Shangri-La Hotel.
- On March 24, 2007, DeGuzman and others attended a multi-course dinner hosted by Francis at the Oak Door in Tokyo, Japan, during which was served, at Francis's expense, foie gras, Lobster Thermidor, and Sendai Tenderloin, and for dessert, “Liberté Sauvage,” the winning cake of the 10th Coupe du Monde de la Patisserie 2007, followed by cognac and cigars. During the event, the attendees posed for a photograph wearing custom-made GDMA neckties.
In a moment of candor encapsulating these corrupt relationships, just before DeGuzman departed Seventh Fleet assignment, he warned Francis in an email dated July 7 2007, “[U]nfortunately, I don't think I'll be able to influence people [in my next assignment] like I did there at 7th Fleet.”
DEFENDANT Case Number: 17-CR-0623-JLS
Enrico DeGuzman Age: 63 Las Vegas, Nevada
SUMMARY OF CHARGES
Bribery of a Public Official, in violation of 18 U.S.C. § 201(b)(2)
Maximum Penalty: Fifteen years in prison, $250,000 fine
INVESTIGATING AGENCIES
Defense Criminal Investigative Service
Naval Criminal Investigative Service
Defense Contract Audit Agency
Lockport Man Pleads Guilty to Cocaine ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Robert Jones, 48, of Lockport, NY, pleaded guilty before U.S. District Judge Lawrence J. Vilardo to possessing with intent to distribute cocaine. The charge carries carry a maximum penalty of 20 years in prison.
Assistant U.S. Attorney Joshua A. Violanti, who is handling the case, stated that on November 29 and December 20, 2017, the Drug Enforcement Administration conducted controlled purchases of cocaine from the defendant. On February 23, 2018, investigators executed a search warrant at Jones’ Gooding Avenue residence and recovered a box of sandwich bags consistent with narcotics distribution, plastic bags containing cocaine residue, three digital scales containing cocaine residue, 207 grams of cocaine, approximately 33 grams of marijuana, and $12,000 in United States currency.
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.
Sentencing is scheduled for January 18, 2022, before Judge Vilardo.
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Las Vegas Business Owner Sentenced to 12 Years in Federal Prison for Participation in Multi-Million Dollar Fraud Upon the North Carolina MedicaidRead the Press Release
WILMINGTON, N.C. – Timothy Mark Harron, a Las Vegas resident, was sentenced today to 144 months in federal prison and ordered to pay $4,321,590.39 in restitution to the North Carolina Medicaid Program on charges of Conspiracy to Commit Health Care Fraud and Wire Fraud, in violation of Title 18, United States Code, Section 1349; Aggravated Identity Theft, in violation of Title 18, United States Code, Section 1028A; and Conspiracy to Commit Money Laundering, in violation of Title 18, United States Code, Section 1956(h). The court also sentenced Harron to forfeit various assets as a part of his case. Court documents reflect that forfeitable items include up to $13,396,921.64 in cash, a British Aerospace Bae 125-800A Aircraft, a 2017 Aston Martin DB 11 sports car; a 2016 Ford F-150 Super-Crew pickup truck; real property held in the name of Assured Healthcare Systems in Hertford County, North Carolina; as well as various other items of designer jewelry and luxury items seized from the defendant’s penthouse condominium in Las Vegas.
According to court documents, Timothy Mark Harron, 52, of Las Vegas, Nevada, admitted to conspiring with his wife, Latisha Harron, to carry out a massive fraud upon the North Carolina Medicaid Program (“NC Medicaid”) by billing the government for fictitious home health services. Harron admitted to working with his wife to launder the proceeds of the fraud into, among other things, a private jet, luxury jewelry and clothing, and properties in Ahoskie and Rich Square, North Carolina.
According to the charges, Latisha Harron created, and was operating, Agape Healthcare Systems, Inc. (“Agape”) a Medicaid home health provider, in Roanoke Rapids, North Carolina. As charged, to enroll Agape as a Medicaid provider, Latisha Harron fraudulently concealed her prior felony conviction for Identity Theft. In 2012, she moved out of North Carolina to Maryland. Despite that move, Latisha Harron continued to bill NC Medicaid as though Agape was providing home health services to North Carolina recipients.
In May of 2017, Latisha Harron moved to Las Vegas, Nevada to live with Harron, and the two were married in 2018. Together they formed Assured Health Care Systems (“Assured”), a company purportedly operated by Harron, its president. Although Harron publicly portrayed Assured as a successful healthcare company, in reality it was funded entirely by Agape’s fraudulent Medicaid claims. The indictment alleges that the Harrons also registered Assured as a Medicaid provider. In so doing, it is charged that Harron’s own prior felony fraud conviction was concealed from the NC Medicaid on enrollment documents. Harron and his wife worked together to expand the Agape fraud upon NC Medicaid -- fraudulently billing the program for more than $10 million, just in the period between 2017 and 2019.
Harron admitted that he and his wife carried out the fraud by exploiting an eligibility tool that was entrusted only to NC Medicaid providers. Specifically, Harron and his wife searched publicly available sources, such as obituary postings on the internet by North Carolina funeral homes, to locate recently deceased North Carolinians. Harron admitted that the two would then extract from the obituary postings certain personal information for the deceased, including their name, date of birth, and date of death. Then, utilizing the extracted information, the defendants would then query the NC Medicaid eligibility tool to determine whether the deceased individual had a Medicaid Identification Number. If the deceased North Carolinian had a valid Medicaid Identification Number and was otherwise eligible for Medicaid coverage during their life, the defendants would use that individual’s identity to “back-bill” NC Medicaid, through Agape, for up to one year of fictitious home health services that were allegedly rendered prior to the death of the individual. NC Medicaid then disbursed millions to Agape, all of which flowed into accounts controlled by Harron and her husband.
Harron admitted that he and his wife carried out the fraud via the internet from locations around the globe, including their corporate office building in Las Vegas, their penthouse condominium in Las Vegas, a corporate office in North Carolina, and from various hotels and luxury resorts in and outside of the United States.
Harron further pled guilty to conspiring with his wife to launder the proceeds of the Agape fraud, often through Assured’s bank accounts, into various luxury items. These expenses included a $900,000 wire for the purchase of a British Aerospace Bae 125-800A private jet, hundreds of thousands of dollars in Tiffany & Co. and Brioni clothing and jewelry, thousands of dollars on Eastern North Carolina business properties, and thousands of dollars in gym equipment.
On May 18, 2021, Latisha Harron was sentenced to 14 years in federal prison for her role in the fraud.
Acting United States Attorney G. Norman Acker, III stated, “This case is purely about greed and an insatiable desire to live a life of luxury. Stealing millions from Medicaid through lies, the defendant and his wife achieved their life of luxury – at least for a while. But there is a serious price to be paid when you purchase your private jet, resort stays, jewelry, and fine dining on the backs of the poorest and most vulnerable in our society. The defendant and his wife will pay that price by spending more than a decade of their lives in prison. I wish to thank our many state and federal counterparts in Las Vegas and beyond for their work in bringing these partners in crime to justice.”
The Harrons targeted the Medicaid program in North Carolina which the most vulnerable North Carolinians depend on in their time of need.” Said FBI Special Agent in Charge Robert R. Wells. “Our agents and law enforcement partners stand ready to work together to make sure those who attack the most vulnerable pay greatly for their crimes.”
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina, made the announcement after U.S. District Judge Richard E. Myers II announced the sentence. The Federal Bureau of Investigation, the United States Department of Health and Human Services Office of the Inspector General, the Internal Revenue Service Criminal Investigation, and the North Carolina Attorney General’s Office Medicaid Investigations Division, all investigated the case. Assistant U.S. Attorney William M. Gilmore served as the prosecutor. Assistant U.S. Attorney John Harris represented the United States with respect to forfeiture aspects of the case.
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. 2:20-cr-00005-M.
Justice Department Settles Sexual Harassment Lawsuit Against Owners and Managers of Rental Properties in PennsylvaniaRead the Press Release
PITTSBURGH - The Justice Department announced today that it has reached an agreement to resolve a lawsuit against Allen and Heidi Woodcock, owners and managers of rental properties in Oil City, alleging sexual harassment and retaliation in violation of the Fair Housing Act.
The lawsuit, filed in the U.S. District Court for the Western District of Pennsylvania, alleges that Allen Woodcock sexually harassed a female tenant in April 2019 after he entered her home to perform maintenance. According to the complaint, Allen Woodcock touched the tenant’s body without her consent and forcibly tried to kiss her, and the Woodcocks evicted the tenant after she reported the harassment to Heidi Woodcock.
Under the consent decree, which still must be approved by the U.S. District Court for the Western District of Pennsylvania, defendants are required to pay a total of $13,000 in monetary damages to the woman who was harmed as a result of the sexual harassment. The consent decree also bars future discrimination, prevents Allen Woodcock from participating in the rental or management of residential properties in the future, mandates Fair Housing Act training and requires monitoring and reporting regarding property management activities and compliance with the terms of the consent decree.
“This resolution demonstrates the commitment of our office to swiftly enforce the Fair Housing Act, especially when it comes to discrimination in housing,” said Acting U.S. Attorney Steve Kaufman. “Sexual harassment in housing will not be tolerated.”
The Justice Department’s Sexual Harassment in Housing Initiative is led by the Civil Rights Division, in coordination with U.S. Attorney’s Offices across the country. The goal of the initiative is to address and raise awareness about sexual harassment by landlords, property managers, maintenance workers, loan officers, or other people who have control over housing. Since launching the Initiative in October 2017, the Justice Department has filed 22 lawsuits alleging sexual harassment in housing.
The Justice Department’s Civil Rights Division enforces the Fair Housing Act, which prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt.
Individuals who believe that they may have been victims of sexual harassment or other types of housing discrimination should call the Justice Department’s Housing Discrimination Tip Line at 1-833-591-0291, email the Justice Department at [email protected], or submit a report online.
Individuals can also report sexual harassment and other forms of housing discrimination by contacting the Department of Housing and Urban Development at 1-800-669-9777 or by filing a HUD complaint online.
Inmate Sentenced for Possessing Weapon at FCI BeckleyRead the Press Release
BECKLEY, W.Va. - An inmate at the Federal Correctional Institution (FCI) at Beckley was sentenced today for possessing a weapon at the correctional facility. Jerry Stewart, 31, was sentenced to 18 months in prison, which will run consecutively to the sentence he currently is serving.
According to court documents, Stewart possessed a handcrafted weapon, commonly referred to as a “shank,” on February 13, 2020, while an inmate at the FCI Beckley. A staff member recovered the weapon after seeing Stewart place the shank on the ground in the compound at the prison after an incident with another inmate. The weapon was a piece of metal about six inches long, sharpened to a point on one end with a cloth handle on the other end.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Federal Bureau of Prisons. Assistant United States Attorney Timothy D. Boggess handled the prosecution.
United States District Judge Frank W. Volk imposed the sentence.
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. 5:20-cr-00204.
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Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on Sept. 2 was:
Rachell Sheree Abbott, 34, of Great Falls, on charges of conspiracy to commit wire fraud, wire fraud and aggravated identity theft. If convicted of the most serious crime, Abbott faces a maximum 20 years in prison, a $250,000 fine and three years of supervised release on the fraud crimes and a mandatory minimum two years in prison, a $250,000 fine and one year of supervised release consecutive to any other sentence on the aggravated identity theft crime. Abbott was detained pending further proceedings. The FBI and Great Falls Police Department investigated the case. PACER case reference. 21-58.
Kent James Fox, 48, of Great Falls, conspiracy to distribute and possess with intent to distribute controlled substances, possession with intent to distribute controlled substances, distribution of controlled substances resulting in death and drug user in possession of firearms and ammunition. If convicted of the most serious crime, Fox faces a mandatory minimum 20 years to life in prison, a $1 million fine and three years of supervised release. Fox was detained pending further proceedings. The FBI and Great Falls Police Department investigated the case. PACER case reference. 21-63.
Brandie Rae Fulbright, 39, of Great Falls, on charges of conspiracy to distribute and possess with intent to distribute controlled substances, possession with intent to distribute controlled substances and distribution of controlled substances resulting in death. If convicted of the most serious crime, Fulbright faces a mandatory minimum 20 years to life in prison, a $1 million fine and three years of supervised release. Fulbright was detained pending further proceedings. The FBI and Great Falls Police Department investigated the case. PACER case reference. 21-63.
Appearing on Aug. 31 was:
David Jay Pando, 33, of Glendive, on charges of conspiracy to possess with intent to distribute controlled substances, possession with intent to distribute controlled substances, conspiracy involving firearm and drug trafficking crime and using and carrying a firearm during and in relation to a drug trafficking offense. If convicted of the most serious crime, Pando faces a mandatory minimum five years to 40 years in prison, a $5 million fine and at least four years of supervised release on the drug crime and a mandatory minimum five years in prison, a $250,000 fine and three years of supervised release on the firearms crime. Pando was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives, Great Falls Police Department, Cascade County Sheriff’s Office, Teton County Sheriff’s Office and Montana Highway Patrol investigated the case. PACER case reference. 21-55.
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on
Sept. 3 was:
John Michael Perault, 48, of Billings, on charges of prohibited person in possession of a firearm and ammunition. If convicted of the most serious crime, Perault faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Perault was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 21-62.
Appearing on Sept. 2 was:
Nicole Marie Bezjon, 42, a transient, on charges of conspiracy to possess with intent to distribute meth, possession with intent to distribute meth and possession of a firearm in furtherance of a drug trafficking crime. If convicted of the most serious crime, Bezjon faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release on the drug crime and a mandatory minimum five years to life in prison, a $250,000 fine and at least five years of supervised release on the firearms count. Bezjon was detained pending further proceedings. The Eastern Montana High Intensity Drug Trafficking Area Task Force investigated the case. PACER case reference. 21-57.
Mark Jay Albrecht, 64, of Gillette, Wyoming, on charges of false statement. If convicted of the most serious crime, Albrecht faces a maximum five years in prison, a $250,000 fine and three years of supervised release. Albrecht was released pending further proceedings. The FBI investigated the case. PACER case reference. 21-41.
Dakota James Calendrillo, 30, of Billings, on charges of prohibited person in possession of a firearm. If convicted of the most serious crime, Calendrillo faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Calendrillo was released pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 21-48.
Appearing on Aug. 31 was:
Brian Pretty Weasel, 31, of Crow Agency, on charges of prohibited person in possession of a firearm. If convicted of the most serious crime, Pretty Weasel faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Pretty Weasel was detained pending further proceedings. The FBI and Bureau of Indian Affairs investigated the case. PACER case reference. 21-63.
Amir Burhan Mallak, 41, of Billings, on charges of possession with intent to distribute controlled substances, distribution of controlled substances, prohibited person in possession of a firearm and possession of a firearm in furtherance of a drug trafficking crime. If convicted of the most serious crime, Mallak faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release on the drug crime and a mandatory minimum five years to life in prison consecutive to any other sentence, a $250,000 fine and five years of supervised release on possessing a firearm in furtherance of a drug trafficking crime. Mallak was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 21-53.
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on Aug. 30 was:
Tina Rae Wood, 49, of Thompson Falls, on charges of wire fraud and aggravated identity theft. If convicted of the most serious crime, Wood faces a maximum 20 years in prison, a $250,000 fine and three years of supervised release. Wood was released pending further proceedings. The FBI investigated the case. PACER case reference. 21-31.
Noah Alexander Van Pelt, 28, of Missoula, on charges of prohibited person in possession of a firearm. If convicted of the most serious crime, Van Pelt faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Van Pelt was released pending further proceedings. The Missoula Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 21-34.
Andrew David Golie, 34, of Hamilton, on charges of prohibited person in possession of a firearm. If convicted of the most serious crime, Golie faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Golie was detained pending further proceedings. The FBI, FBI’s Safe Streets Task Force, Bureau of Alcohol, Tobacco, Firearms and Explosives and Missoula Police Department investigated the case. PACER case reference. 21-27.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Glen Burnie Man Sentenced for Federal Charge of False Personation of a U.S. MarshalRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake today sentenced Renul Forbes a/k/a “Michael Renul,”, age 32, of Glen Burnie, Maryland, to 12 months of home confinement as part of three years of probation for false personation of a U.S. Marshal, an officer of the United States. Judge Blake also ordered Forbes to perform 100 hours of community service.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Timothy Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; U.S. Marshal for the District of Maryland Johnny Hughes; and Chief Amal Awad of the Anne Arundel County Police Department (AAPD).
According to his guilty plea, from January 2019 to September 26, 2020, Forbes falsely pretended to be a “Supervisory Deputy” of the United States Marshals Service and possessed a fraudulent seal of the United States Marshals Service.
“Members of our Maryland law enforcement community serve a critical role when it comes to public safety and community relations,” said Acting U.S. Attorney Jonathan Lenzner. By impersonating a federal agent, Renul Forbes not only deceived the public, he also undermined the credibility of the many legitimate law enforcement personnel who diligently and bravely serve their communities throughout the state.”
As detailed in his plea agreement, on September 26, 2020, an Anne Arundel County police officer witnessed Forbes arrive at a Glen Burnie retail store in a vehicle equipped with police lights. Forbes was carrying a firearm on his hip.
Shortly after Forbes exited his vehicle, Forbes approached the AAPD officer and asked whether he worked in the Northern District of the Anne Arundel County Police Department and whether he knew a particular police officer, who Forbes identified by name.
While Forbes entered the store, the AAPD officer determined that the rear tag affixed to Forbes’s vehicle belonged to a different vehicle, the windows were tinted, and the vehicle lacked a front tag. The AAPD officer subsequently asked Forbes to identify himself. Forbes provided a false name and refused to present an official driver’s license telling the officer that he was “not qualified” to ask for Forbes’ credentials. Forbes not only possessed a fraudulent U.S. Marshals badge pinned to his belt next to his firearm, but also possessed two magazines in a magazine carrier on the right side of his waist.
Forbes attempted to avoid identification by claiming to be a U.S. Marshal working out of Greenbelt and provided the name and contact information of a purported U.S. Marshals Service supervisor. In fact, that individual was not a U.S. Marshal. Officers later contacted a legitimate U.S. Marshals Service Supervisory Deputy who confirmed that Forbes was not employed with the U.S. Marshals Service in any capacity and that the badge Forbes possessed was not a legitimate badge or seal of the U.S. Marshals Service.
A search of Forbes’s person revealed that he carried three loaded magazines, with several rounds each, and a black Glock-style airsoft gun. Additionally, Forbes’s vehicle was equipped with three USB powered red and blue police lights that were controlled by a control panel on the driver’s seat visor. Within a brown backpack located in the vehicle, authorities discovered loose ammunition and a handgun that was not registered to Forbes. Furthermore, a search of the vehicle’s VIN number was determined to be associated with a New Jersey tag, which was located in the trunk of the vehicle.
Officers contacted the registered owner of the handgun and discovered the owner met with Forbes on several occasions. The registered handgun owner believed Forbes was a legitimate U.S. Marshal as he openly carried a firearm and a U.S. Marshals badge.
As detailed in his plea agreement, it was later determined that Forbes had previously identified himself as a U.S. Marshal to another Anne Arundel County police officer within a text message and in person on multiple occasions, in order to obtain information about police responses to his apartment complex, as well as the Anne Arundel County Police Department in general. Forbes also falsely claimed to be a U.S. Marshal to a Metropolitan police officer in order to learn about rules and regulations, policy and discipline within the police department.
Acting United States Attorney Jonathan F. Lenzner commended the ATF, U.S. Marshals Service, and the Anne Arundel County Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Mary W. Setzer who prosecuted the case.
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Galesburg Area Man Sentenced to 20 Years in Prison for Possession of Controlled Substance with Intent to DistributeRead the Press Release
ROCK ISLAND, Ill. – A Galesburg, Illinois, man, Forest “Woody” Norville, 47, was sentenced to twenty years in prison, to be followed by five years of supervised release, on August 10, 2021, for possession with intent to deliver methamphetamine.
On March 31, 2021, a federal jury found Norville guilty of possession with intent to deliver at least 50 grams of methamphetamine. The evidence at trial and during his recent sentencing hearing showed that while conducting a traffic stop on April 17, 2019, Galesburg Police officers found Norville with two vacuum sealed bags containing 106.2 grams of pure methamphetamine. At the sentencing hearing, U.S. District Judge Sara Darrow noted that Norville, who has previous convictions for burglary and other drug-related offenses, also committed perjury during the trial.
“Methamphetamine distribution and use continues to plague our community,” said Acting U.S. Attorney Douglas J. Quivey. “The United States Attorney’s office, in close collaboration with our State’s Attorney partners, will continue to work with local, state, and federal law enforcement partners to investigate and prosecute large-scale dealers. The sentence imposed by Judge Darrow sends another strong message that methamphetamine dealers will pay a stiff price for the harm they cause.”
The investigation was conducted by the Galesburg Police Department. Valuable assistance was provided by the Knox County Sherriff’s Office and the Drug Enforcement Administration. Assistant U.S. Attorneys Jennifer Mathew and Alyssa Raya represented the government.
Gainesville Man Sentenced to 40 Years in Federal Prison for Production, Receiving, and Possessing Child PornographyRead the Press Release
GAINESVILLE, FLORIDA – John Ernst Tennant, Jr., 71, of Gainesville, Florida, was sentenced Wednesday to 480 months in federal prison for production, receipt, and possession of child pornography. The sentence was announced by Jason R. Coody, Acting United States Attorney for the Northern District of Florida.
Tennant’s sentence was the result of a federal jury returning a guilty verdict on June 3, 2021, finding Tennant guilty of production, receipt, and possession of child pornography.
“The Court’s sentence ensures that this defendant will never harm another child and should serve as a significant deterrent to others who would attempt to prey upon our most vulnerable,” stated Acting U.S. Attorney Coody. “Acts of such depravity, committed by a caregiver, are both horrific and incomprehensible. We will continue to work tirelessly with our law enforcement partners to investigate and prosecute those who engage in such heinous conduct.”
The sentencing court described the crimes as “horrific,” and further stated “too many people are doing these things.” The evidence showed that Tennant sexually victimized toddlers left in his care at a daycare run by his wife in Gainesville, Florida. Tennant photographed the abuse of the children and maintained a large secret collection of child pornography.
The Gainesville Police Department recognizes that child exploitation is the most heinous of crimes that could be committed. “These predators, such as John Tennant, Jr., seek out and perpetrate on the most vulnerable, our children,” said Gainesville Police Chief Tony Jones. “Our detectives, and specifically our ICAC unit, work tirelessly and endure a great deal to ensure that our children are safe from predators like these. We are pleased with today’s conclusion but understand that there are many more out there which we will continue to pursue.”
“This case once again demonstrates the FBI's commitment to pursue those who seek to exploit innocent children,” said Rachel L. Rojas, Special Agent in Charge of the FBI Jacksonville Division. “Together with our law enforcement partners, we will not waver in our efforts to identify these predators and seek justice for their victims.”
Tennant’s prison sentence will be followed by a lifetime of supervised release. He will also be required to register as a sex offender and will be subject to all sex offender conditions.
The case was investigated by the Gainesville Police Department, North Florida Internet Crimes Against Children Taskforce, and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Frank Williams.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Four Previously Deported Aliens Charged with Illegal Re-EntryRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that four previously deported aliens were indicted separately on September 1, 2021, by a federal grand jury for illegal reentry into the United States. These matters arose in counties throughout the District including Dauphin, Franklin, and Lackawanna.
According to Acting United States Attorney Bruce D. Brandler, Luis Mizhirumbay-Taquiri, age 42, was previously deported from the United States to Ecuador in June 2019. He is alleged to have illegally reentered the United States again sometime after June 2019 and was found in the United States in Lackawanna County, Pennsylvania after eluding examination or inspection by immigration officers.
Edwin Jeovany Sanchez-Ordonez, age 37, of Honduras, was charged by a federal grand jury with illegal re-entry into the United States by a previously deported alien. Sanchez-Ordonez was previously deported from the United States to Honduras in June 2014. He is alleged to have illegally reentered the United States again sometime after June 2014 and was found in the United States in Franklin County, Pennsylvania after eluding examination or inspection by immigration officers.
Hector Bienvenido Amador-Medina, age 34, was indicted by a federal grand jury with illegal re-entry into the United States by a previously deported alien. Amador-Medina was previously deported from the United States to the Dominican Republic in June 2018. He is alleged to have illegally reentered the United States again sometime after June 2018 and was found in the United States in Dauphin County, Pennsylvania after eluding examination or inspection by immigration officers.
Mizhirumbay-Taquiri, Sanchez-Ordonez and Amador-Medina face a maximum penalty of two years of imprisonment, a term of supervised release following imprisonment, and a fine.
Rodrigo Cabrera-Tolentino, age 22, of Mexico, was charged by a federal grand jury with illegal re-entry into the United States by a previously deported alien. Cabrera-Tolentino was previously deported from the United States to Mexico in November 2017. He is alleged to have illegally reentered the United States again sometime after November 2017 and was found in the United States in Franklin County, Pennsylvania after eluding examination or inspection by immigration officers.
Cabrera-Tolentino faces a maximum penalty of 20 years of imprisonment, a term of supervised release following imprisonment, and a fine.
These matters were investigated by U.S. Immigration and Customs Enforcement and Removal Operations (ERO). Assistant United States Attorney Joanne M. Sanderson is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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