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20 September 2021
Bangor Man Sentenced for Possessing Images of Child Sexual Exploitation and Violating Supervised ReleaseRead the Press Release
PORTLAND, Maine: A Bangor man was sentenced today in U.S. District Court in Portland for possessing images of child sexual exploitation and violating the terms of his supervised release, Acting U.S. Attorney Donald E. Clark announced.
U.S. District Judge John A. Woodcock, Jr. sentenced Robert Goguen, 46, to a total of 16 years in prison—14 years for possessing images of child sexual exploitation, and two years for violating the conditions of supervised release. Judge Woodcock also sentenced Goguen to 20 years of supervised release following his term of imprisonment. Goguen pleaded guilty and admitted the supervised release violation on September 15, 2017.
According to court records, on November 10, 2015, U.S. probation officers went to Goguen’s apartment in Bangor and seized a laptop computer. A forensic search of the computer revealed images and videos of child sexual exploitation that Goguen had downloaded and saved. At the time, Goguen was on federal supervised release following a 2012 conviction for failing to register as a sex offender.
Homeland Security Investigations and the Bangor Police Department investigated the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Acting U.S. Attorney Kaufman Launches Media Campaign to Connect Western Pennsylvanians Needing Drug Treatment with Recovery ResourcesRead the Press Release
PITTSBURGH – Acting United States Attorney Stephen R. Kaufman announced today, Press Play PA, a media messaging campaign aimed at connecting western Pennsylvania individuals with substance use disorder to life-saving treatment.
In 2020, 123 people died from an overdose in Westmoreland County, an increase of nearly seven percent over 2019. In Allegheny County, there were 689 overdose deaths in 2020, up 22 percent from 564 in 2019.
Press Play PA includes billboards, bus shelter ads, and bus boards placed in Westmoreland and eastern Allegheny County locations experiencing high rates of overdose deaths. Targeted social media ads link individuals to a treatment database searchable by community, overdose statistics, and information about law enforcement initiatives and outreach. The messaging campaign encourages the public to learn more about treatment and resources at www.PressPlayPA.com and www.FindTreatment.gov.
“The Press Play PA campaign works to connect western Pennsylvanians experiencing substance use disorder to recovery resources,” said Acting U.S. Attorney Kaufman. “Treatment options are available across the state and our campaign aims to encourage people to seek treatment and press play on life. Our message is simple: treatment is effective and recovery is possible.”
The U.S. Attorney’s Office created the Press Play PA campaign with funding from the Ohio High Intensity Drug Trafficking Area (HIDTA). In 2020, Westmoreland joined three other southwestern Pennsylvania counties - Allegheny, Beaver and Washington - in receiving critical federal resources to coordinate federal, state and local governments to fight drug trafficking and abuse. Earlier this year, Erie County received HIDTA designation.
Acting U.S. Attorney Kaufman was joined by Westmoreland County District Attorney John Peck and Westmoreland County Judge Meagan Bilik-DeFazio of the Westmoreland County Drug Court in making the announcement.
The campaign was launched during Nation Recovery Awareness Month, a national observance held every September to promote and support new evidence-based treatment and recovery practices, the emergence of a strong and proud recovery community, and the dedication of service providers and community members across the nation who make recovery in all its forms possible. The focus of National Recovery Month this September is to celebrate all people that make the journey of recovery possible by embracing the 2021 theme, Recovery is For Everyone: Every Person, Every Family, Every Community. Recovery Month spreads the message that people can and do recover every day.
Acting U.S. Attorney Ellison C. Travis Announces $16,506,360 Award to Enhance Crime Victim Services and Compensation PaymentsRead the Press Release
Acting U.S. Attorney Ellison C. Travis announced that the Middle District of Louisiana received $16,506,360 from the Department of Justice’s Office of Justice Programs and its component, the Office for Victims of Crime, to enhance crime victim services in the State and to enhance State compensation payments to eligible crime victims. Victims of Crime Act (VOCA) compensation funds provide financial assistance to Federal and State victims of crime. The funds are typically awarded by the State to local community-based organizations that provide direct services to crime victims.
The recipient of this award, the Louisiana Commission on Law Enforcement, is a foundation located in Baton Rouge dedicated to improving the operations of the criminal justice and juvenile justice systems and to promoting public safety by providing progressive leadership and coordination within the criminal justice community.
Acting U.S. Attorney Travis stated, “The Department of Justice is committed to the rights of victims, and while United States Attorney Offices enforce federal criminal law and bring offenders to justice, these awards are important to provide comfort and peace of mind to those that have suffered at the hands of the criminal element.”
10-Year Sentence for Barre Man Who Sexually Exploited a Child over the InternetRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Alexander Chase, 25, of Barre, Vermont, was sentenced today to serve 121 months in prison, followed by a 20-year term of supervised release, for child exploitation crimes, including obtaining images from a child victim and distributing them to others via email. United States District Judge William K. Sessions also ordered Chase to pay $3,000 of restitution to the victim of the offense.
According to court records and proceedings, in the summer of 2019, Chase posed as a 14-year-old boy on a child chat website. Chase began corresponding with a 10-year-old girl from Pennsylvania on the chat platform, eventually transitioning to the use of email. Chase sent the girl a photo of his own genitalia and asked for images of her genitalia in return. In response, the 10-year-old child sent pictures of her vagina. Chase then asked the girl for her to pose in a particular manner using a marker or pen as a sexual implement, which led the girl to respond with a picture of herself engaged in conduct similar to what Chase had requested. During the email correspondence, Chase asked the girl if she would be able to get to Vermont and meet him at his location to engage in sexual contact.
Chase’s emails led to a notification by the email service provider to the National Center for Missing and Exploited Children. NCMEC notified the Vermont Internet Crimes Against Children task force, who in turn notified Homeland Security Investigations in Derby, Vermont. HSI obtained a search warrant for Chase’s email account, and through its contents and other investigative steps, determined Chase was the likely user of the account. The email contents revealed Chase had distributed the child pornography of the 10-year-old child to others. Chase also had received additional images of child pornography through his email account.
HSI’s investigation revealed Chase was living at a residence in Barre, Vermont. On September 18, 2020, HSI executed a search warrant at Chase’s residence, resulting in the seizure of electronics which were subsequently determined to contain additional child pornography. The electronic devices also had evidence corroborating that Chase had enticed the 10-year-old victim to send the images. At the time of the criminal conduct for which Chase was sentenced today, Chase was subject to probationary supervision for a prior conviction for Lewd and Lascivious Conduct in Caledonia County, Vermont related to the sexual abuse of young children.
Acting United States Attorney Jonathan A. Ophardt commended the coordinated investigatory efforts of the Department of Homeland Security’s Homeland Security Investigations, the Vermont Internet Crimes Against Children Task Force, and the Office of the District Attorney of Butler County, Pennsylvania in this matter. “Online sexual predators who exploit children through deceit and manipulation cause significant harm to the children they victimize. These criminals may not leave behind physical scars, but they nonetheless leave wakes of trauma, necessitating substantial therapy and support to assist survivors in their recovery. Once disseminated on the internet, these images are often shared over and over, exacerbating the victimization that these children experience.”
“Chase deceived and coerced a child to obtain exploitative imagery. With our partners on the Vermont Internet Crimes Against Children task force, HSI is working to protect our children online and ensure those who seek to prey on them face consequences,” said Matthew Millhollin, Special Agent in Charge for the Homeland Security Investigations’ Boston Field Office.
Acting United States Attorney Jonathan A. Ophardt handled the prosecution. Chase was represented by Assistant Federal Public Defender Steven Barth, Esq.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and Child Exploitation Obscenity Section, Criminal Division (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
$26.6 Million in Allegedly Illicit Proceeds to Be Used to Fight COVID-19 and Address Medical Needs in Equatorial GuineaRead the Press Release
The Department of Justice announced today that it has entered into agreements to distribute $19.25 million to the United Nations for the purchase and distribution of COVID-19 vaccines and $6.35 million to Medical Care Development International (MCDI) for the purchase and distribution of medicines and medical supplies throughout Equatorial Guinea as part of the implementation of a civil forfeiture settlement resolving the disposition of certain assets previously allegedly purchased by the current First Vice President of Equatorial Guinea Teodoro Nguema Obiang Mangue (Obiang Mangue) with the proceeds of corruption.
In the civil forfeiture matter United States v. One Michael Jackson Signed Thriller Jacket, No. 2:11-CV-03582 in the Central District of California, and related cases, the United States alleged that Obiang Mangue, who in 2011 was Minister of Agriculture and Forestry and received an official government salary of less than $100,000, used his position and influence to amass more than $300 million worth of assets through corruption and money laundering, in violation of both U.S. and Equatoguinean law.
Pursuant to the terms of a 2014 settlement agreement, Obiang Mangue was required to sell a Malibu, California, mansion that he purchased for $30 million, a Ferrari automobile and various items of Michael Jackson memorabilia, and to contribute $1 million representing the value of other property. As provided in the agreement, $10.3 million of these settlement funds were to be forfeited to the United States and the remaining settlement funds would be distributed to a charity or other organization for the benefit of the people of Equatorial Guinea. The Department of Justice has committed to returning the forfeited funds for the benefit of the people of Equatorial Guinea.
“Wherever possible, Kleptocrats will not be allowed to retain the benefits of corruption,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “The department’s tenacity in ensuring that these funds be returned for the benefit of the people of Equatorial Guinea demonstrates our commitment to making sure a nation’s resources are used to benefit the people of that nation and are not siphoned off inappropriately.”
As set forth in a donor agreement with the United Nations, the United Nations will use $19.25 million in settlement funds to purchase, store, distribute and administer COVID-19 vaccines to at least 600,000 people in Equatorial Guinea. In addition, MCDI, a charitable organization in Silver Spring, Maryland, with an established track record of administering programs in Equatorial Guinea, will receive $6.35 million to manage the purchase, storage, distribution and delivery of additional medicines and medical supplies throughout Equatorial Guinea.
Chief Gene Patton of Program Operations, and Deputy Chief Adam J. Schwartz of the International Unit of the Criminal Division’s Money Laundering and Asset Recovery Section handled the resolution of this matter.
19 September 2021
Baton Rouge Laboratory Owner and Florida Woman Charged with Scheme to Pay and Receive Health Care Kickbacks as Part of National Enforcement ActionRead the Press Release
The Medicare Fraud Strike Force (“MFSF”) is part of a joint initiative between the U.S. Department of Justice, U.S. Department of Health and Human Services and state Medicaid Fraud Control Units to reduce and prevent Medicare and Medicaid fraud through enhanced interagency cooperation. Its purpose is to focus on the worse offenders in fraud, in the highest intensity regions, using data analysis techniques to identify abnormal billing levels in health care fraud “hot spots,” i.e., cities with unusually high levels of billing and other fraud. The U.S. Department of Justice currently maintains 15 strike forces operations in 24 federal districts and has charged more than 4,600 defendants who have collectively billed federal health care programs and private insurers for approximately $23 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
As part of the recent National Enforcement Action, Acting United States Attorney Ellison C. Travis announced new charges against two individuals for health care related crimes in Baton Rouge. On September 9, 2021, a federal grand jury returned a seven-count indictment charging Terry Steven Wilks, Jr., age 39, of Greenwell Springs, Louisiana, and Leslie Amanda McHugh, age 36, of Riverview, Florida, with conspiracy to defraud the United States and to pay and receive kickbacks, offering and paying kickbacks, and soliciting and receiving kickbacks.
According to the indictment, Wilks was the owner of Acadian Diagnostic Laboratories, LLC, a clinical laboratory based in Baton Rouge that provided diagnostic testing services, including urine drug testing. Acadian was enrolled as a Medicare and a TRICARE provider. McHugh was formerly a registered nurse licensed in the State of Florida. The indictment alleges that in 2015, the Florida Board of Nursing revoked McHugh’s nursing license, and in 2016, Medicare excluded her from participation in all federal health care programs. According to the indictment, despite her exclusion and subsequent purported termination from Acadian, Wilks continued to pay McHugh to refer doctors’ orders and specimens to Acadian for urine drug testing in exchange for kickback payments. These payments were allegedly made in cash, as well as funneled through a company created by Wilks. The indictment alleges that from August 2017 to April 2018, Wilks and McHugh caused Acadian to submit approximately $549,580 in claims to Medicare and $17,612 in claims to TRICARE for laboratory testing services that were referred by McHugh in exchange for kickback payments.
Acting U.S. Attorney Ellison Travis stated, “My office will continue to work tirelessly with our outstanding federal, state and local partners to identify and bring justice to those who commit healthcare related crimes. This takedown was a team effort, and I commend the excellent work performed by our prosecutors and the men and women of the agencies involved.”
“Today's indictment sends a clear message to individuals like Terry Wilks and Leslie McHugh who engage in kickback schemes which defraud health care programs that they will be held accountable. Mr. Wilks and Ms. McHugh took advantage of a system set up to help patients get much-needed government assistance and instead benefitted themselves," said FBI New Orleans Special Agent in Charge Douglas A. Williams, Jr. "We would like to thank our state and federal partners with the Medicare Fraud Strike Force for their strong partnership and unrelenting pursuit of justice."
Miranda L. Bennett, Special Agent in Charge of the Department of Health and Human Services, Office of Inspector General, Dallas Region, stated: “Today’s indictment is yet another example of our commitment to vigorously defend the Medicare Trust Fund. Paying and receiving kickbacks for referrals undermines federal health care programs. We will continue to pursue those who conduct fraudulent kickback schemes to safeguard the beneficiaries of these programs.”
“I applaud my Medicaid Fraud Control Unit and our partners at the U.S. Attorney’s Office for their efforts to end criminal activity, especially when it is being perpetuated by people who are supposed to be taking care of our State’s vulnerable,” said Attorney General Jeff Landry.
This matter is being investigated by HHS-OIG, the FBI, and the Defense Criminal Investigative Service and was brought as part of the MFSF, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Middle District of Louisiana. The case is being prosecuted by Assistant United States Attorney Kristen L. Craig and Department of Justice Trial Attorney Justin M. Woodard.
NOTE: An indictment is an accusation by a grand jury. The defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
18 September 2021
White River Man Sentenced for Attempted Possession of Child PornographyRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a White River, South Dakota, man convicted of Attempted Possession of Child Pornography was sentenced on September 3, 2021, by Judge Jeffrey L. Viken, U.S. District Court.
Greydon Shangreaux, age 25, was sentenced to time served, equal to approximately three and 1/2 months in custody, followed by five years of supervised release. Shangreaux was also ordered to pay a special assessment to the Federal Crime Victims Fund in the amount of $100 and will be required to register as a sex offender under the Sex Offender Registration and Notification Act.
Shangreaux was arrested and federally indicted as a result of an undercover sex trafficking operation conducted during the 2019 Sturgis Motorcycle Rally, targeting online predators. Following multiple online communications with a person Shangreaux believed to be a 15-year-old girl, but who was in fact an undercover agent, he proceeded to request nude photographs and negotiate a time and place he would meet the minor to engage in unlawful sex acts. When Shangreaux went to the pre-determined location to meet the minor, he was instead met by law enforcement agents and placed under arrest.
This case was investigated by Homeland Security Investigations, South Dakota Division of Criminal Investigation, and the Internet Crimes Against Children Task Force. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Watertown Man Charged with Receipt and Distribution of Child PornographyRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Watertown, South Dakota, man has been indicted by a federal grand jury for Receipt and Distribution of Child Pornography.
Justin Derick Kohrt, age 38, was indicted on September 9, 2021. He appeared before U.S. Magistrate Judge Veronica L. Duffy on September 16, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in federal prison and/or a $250,000 fine, life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between on or about March 2, 2021, and June 3, 2021, Kohrt knowingly received, and attempted to receive, child pornography that had been mailed, shipped, and transported in or affecting interstate or foreign commerce by any means, including by computer.
The charge is merely an accusation and Kohrt is presumed innocent until and unless proven guilty.
The investigation is being conducted by Homeland Security Investigations. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Kohrt was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Wagner Man Sentenced for Abusive Sexual Contact of a Child Under 12 Years OldRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Wagner, South Dakota, man convicted of Abusive Sexual Contact of a Child Under 12 Years Old was sentenced on September 13, 2021, by U.S. District Judge Karen E. Schreier.
Frank Sanchez, age 66, was sentenced to 87 months in federal prison, followed by five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Sanchez was indicted by a federal grand jury on December 3, 2019. He was found guilty following a three-day jury trial in Sioux Falls, South Dakota.
The conviction stemmed from an incident that occurred between on or about June 1, 2006 and September 1, 2006, in the Marty area, when Sanchez engaged in sexual contact with a female minor who had not attained the age of 12 years.
This case was investigated by the Yankton Sioux Tribal Law Enforcement and the Federal Bureau of Investigation. Assistant U.S. Attorney Ann M. Hoffman prosecuted the case.
Sanchez was immediately turned over to the custody of the U.S. Marshals Service.
Sioux Falls Man Sentenced for Wire FraudRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Sioux Falls, South Dakota, man convicted of Wire Fraud was sentenced on September 13, 2021, by U.S. District Judge Karen E. Schreier.
Dallas Harkness, age 64, was sentenced to 30 months in federal prison, followed by three years of supervised release, restitution in the amount of $738,557.34 to Hoegemeyer Hybrids (formerly Curry Seed Company), and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Harkness was indicted by a federal grand jury on October 6, 2020. He pled guilty on June 21, 2021.
The conviction stemmed from a wire fraud scheme that began on or about January 2010 and continued through September 25, 2018. Harkness was a sales manager for Curry Seed Company located in Elk Point, South Dakota. On multiple occasions during the course of the scheme, Harkness received checks from Curry Seed customers as payment or pre-payment for seed. Instead of sending the checks to Curry Seed for deposit, Harkness falsely and fraudulently deposited some of those customer checks into checking accounts he controlled. Harkness then used the funds for his purposes.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Ann M. Hoffman prosecuted the case.
Harkness has been allowed to self-surrender by October 12, 2021.
Sioux Falls Man Charged with Receipt and Distribution of Child PornographyRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Sioux Falls, South Dakota, man has been indicted by a federal grand jury for Receipt and Distribution of Child Pornography.
Dylan St. Claire, age 30, was indicted on September 9, 2021. He appeared before U.S. Magistrate Judge Veronica L. Duffy on September 14, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in federal prison and/or a $250,000 fine, life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between on or about March 10, 2021, and July 21, 2021, St. Claire knowingly received, and attempted to receive, child pornography that had been mailed, shipped, and transported in or affecting interstate or foreign commerce by any means, including by computer.
The charge is merely an accusation and St. Claire is presumed innocent until and unless proven guilty.
The investigation is being conducted by Homeland Security Investigations. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
St. Claire was released on bond pending trial which has been set for November 23, 2021.
Sioux Falls Man Charged with Failure to Register as a Sex OffenderRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Sioux Falls, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Ricky Jason Bedlington, Jr., age 42, was indicted on September 9, 2021. He appeared before U.S. Magistrate Judge Veronica L. Duffy on September 15, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between on or about May 28, 2021, and May 31, 2021, Bedlington, a sex offender by reason of a conviction under state law, unlawfully and knowingly failed to provide information required by the Sex Offender Registration and Notification Act relating to intended travel to a foreign country.
The charge is merely an accusation and Bedlington is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Ann M. Hoffman is prosecuting the case.
Bedlington was released on bond pending trial, which has been set for November 23, 2021.
Rapid City Man Sentenced to Federal Prison for Receiving Child PornographyRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Rapid City, South Dakota, man convicted of Receipt of Child Pornography was sentenced on September 3, 2021 by Jeffrey L. Viken, U.S. District Judge.
Caleb Oien, age 26, was sentenced to five years in federal prison, followed by five years supervised release. Oien was also ordered to pay a special assessment to the Federal Crime Victims Fund in the amount of $100, and will be required to register as a sex offender under the Sex Offender Registration and Notification Act.
Oien was arrested and federally indicted following a Cybertip from the National Center of Missing and Exploited Children. The Cybertip included images of child pornography of young children downloaded by Oien to his Dropbox account. A forensic examination of Oien’s devices and Dropbox account revealed well over 600 images of child pornography of children under the age of 12.
This case was investigated by the Internet Crimes Against Children Taskforce. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Oien was immediately turned over to the custody of the U.S. Marshals Service.
Rapid City Man Sentenced to Federal Prison for Firearm CrimesRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Rapid City, South Dakota, man convicted of two counts of Possession of a Firearm by a Prohibited Person was sentenced on September 7, 2021, by Chief Judge Roberto A. Lange, U.S. District Court.
Casey Brasgalla, age 39, was sentenced to five years in federal prison, followed by three years of supervised release for each count. The sentences are to be served concurrently. Brasgalla was also ordered to pay a $200 special assessment to the Federal Crime Victims Fund.
The convictions relate to Brasgalla and another male, both who are prohibited from possessing firearms, possessing firearms which were found after they came into contact with Rapid City Police Department officers in November 2020. Brasgalla was also found to be in possession of a firearm and destructive device in December 2020.
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.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Rapid City Police Department. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Brasgalla was immediately turned over to the custody of the U.S. Marshals Service.
Rapid City Man Sentenced to Federal Prison for Firearm ChargeRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Rapid City, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person was sentenced on September 7, 2021, by U.S. District Judge Karen E. Schreier.
Darius Emery, age 33, was sentenced to two years and three months in federal prison, followed by three years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Emery was indicted by a federal grand jury on January 12, 2021. He pleaded guilty on May 7, 2021. The conviction stems from Emery, previously convicted of a felony and prohibited from possessing firearms, possessing a semi-automatic pistol and a double-action revolver, which were found after Emery came into contact with Rapid City Police Department officers in August 2019 and June 2020.
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.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Rapid City Police Department. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Emery was immediately turned over to the custody of the U.S. Marshals Service.
Rapid City Man Sentenced to 30 Years for 15 Internet Crimes Against ChildrenRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Rapid City, South Dakota, man convicted of five counts of Sexual Exploitation of a Minor, one count of Attempted Sexual Exploitation of a Minor, six counts of Enticement of a Minor Using the Internet, two counts of Receipt of Child Pornography, and one count of Possession of Child Pornography was sentenced on September 8, 2021, by Judge Karen E. Schreier, U.S. District Court.
Kyle Garret Soto, age 34, was sentenced to 30 years in federal prison, followed by 15 years of supervised release, and ordered to pay a $1500 and a $5,000 special assessment to the Federal Crime Victims Fund.
Soto was indicted by a federal grand jury on May 8, 2018, and was convicted by a jury following a week-long jury trial in Rapid City in April 2021. Between February 2014 and April 2018, Soto engaged in prolific sexual activity with numerous minors over the internet, including demanding, receiving, and sending pornographic images and videos. Soto threatened to distribute the minors’ images and videos online if they failed to comply with his ultimatums to provide him with additional pornographic items. Subsequent to his arrest in April 2018, forensic examination of Soto’s devices revealed hundreds of images of child pornography. Soto’s victims ranged in age from approximately seven years old to 15 years old.
The investigation was conducted by the South Dakota Internet Crimes Against Children Taskforce, South Dakota Division of Criminal Investigation, Homeland Security Investigations, Pennington County Sheriff’s Office, Rapid City Police Department, Rhode Island Internet Crimes Against Children Taskforce, and the New Mexico Office of Attorney General.
Assistant U.S. Attorneys Sarah Collins and Heather Sazama prosecuted the case.
Pine Ridge Man Sentenced to Seven Years on Firearm ChargeRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Pine Ridge, South Dakota, man convicted of Use and Brandishing of a Firearm During the Commission of a Crime of Violence was sentenced on August 24, 2021, by Judge Jeffrey L. Viken, U.S. District Court.
Thomas Richards, age 23, was sentenced to seven years in federal prison, followed by five years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund and $320 in restitution to the Corner Pantry convenience store.
Richards was indicted by a federal grand jury on March 10, 2021, and pleaded guilty on May 14, 2021. In February 2021, Richards used a pistol to rob a Corner Pantry convenience store in Rapid City by brandishing the firearm at the store clerk.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Rapid City Police Department. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Richards was immediately remanded to the custody of the U.S. Marshals Service.
Marty Man Sentenced for Assault with a Dangerous WeaponRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Marty, South Dakota, man convicted of Assault with a Dangerous Weapon was sentenced on September 14, 2021, by U.S. District Judge Karen E. Schreier.
Gordon Primeaux, age 63, was sentenced to 24 months in federal prison, followed by three years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Primeaux was indicted by a federal grand jury on October 6, 2020. He pled guilty on June 10, 2021.
The conviction stemmed from an incident on or about August 22, 2020, when Primeaux stabbed the victim with a knife three times, with intent to do bodily harm to the victim.
This case was investigated by the Yankton Sioux Tribe and the Federal Bureau of Investigation. Assistant U.S. Attorney Ann M. Hoffman prosecuted the case.
Primeaux was immediately turned over to the custody of the U.S. Marshals Service.
Kyle Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Kyle, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on September 8, 2021, by Chief Judge Roberto A. Lange.
Marcus Pawnee Leggins, age 33, was sentenced to two and a half years in federal prison, followed by three years supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Pawnee Leggins was indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury on September 17, 2020. He pleaded guilty on May 26, 2021.
Beginning at an unknown date, but no later than January 2016 to September 2020, Pawnee Leggins knowingly and intentionally conspired and acted in concert with numerous other individuals to possess and distribute methamphetamine in and around the areas of Kyle and Allen, South Dakota, as well as other locations on the Pine Ridge Reservation. During the course of the conspiracy, Pawnee Leggins possessed and distributed at least 50 grams of substances containing a detectable amount of methamphetamine.
This case was investigated by the Federal Bureau of Investigation, Bureau of Indian Affairs Office of Justice Services – Division of Drug Enforcement, Oglala Sioux Tribe Department of Public Safety, and the South Dakota Department of Criminal Investigation. Assistant U.S. Attorney Eric Kelderman prosecuted the case.
Pawnee Leggins was immediately turned over to the custody of the U.S. Marshals Service.
Iowa Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Sioux City, Iowa, man convicted of Failure to Register as a Sex Offender was sentenced on September 13, 2021, by U.S. District Judge Karen E. Schreier.
Jacob Lee Schmidt, age 32, was sentenced to 17 months in federal prison, followed by five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Schmidt was indicted by a federal grand jury on May 4, 2021. He pled guilty on June 23, 2021.
The conviction stems from Schmidt failing to register as a sex offender as required by federal law between February 1, 2021, and May 4, 2021. Schmidt had previously been convicted of a sex offense in state court which requires him to register for the rest of his life.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Schmidt was immediately turned over to the custody of the U.S. Marshals Service.
Hurley Man Charged with Receipt and Distribution of Child PornographyRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Hurley, South Dakota, man has been indicted by a federal grand jury for Receipt and Distribution of Child Pornography.
Lester Jahnig, age 50, was indicted on September 9, 2021. He appeared before U.S. Magistrate Judge Veronica L. Duffy on September 14, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in federal prison and/or a $250,000 fine, life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between on or about May 3, 2019, and December 16, 2020, Jahnig knowingly received, and attempted to receive, child pornography that had been mailed, shipped, and transported in or affecting interstate or foreign commerce by any means, including by computer.
The charge is merely an accusation and Jahnig is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Homeland Security Investigations. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Jahnig was released on bond pending trial. A trial date has not been set.
Colorado Nurse Sentenced to Prison for Stealing Controlled SubstancesRead the Press Release
DENVER – A Colorado nurse was sentenced to prison for abusing his position of trust by taking fentanyl from a hospital to use while on the job. Advanced Nurse Practitioner and Registered Nurse Kurt Vasquez, 41, was sentenced to three months’ imprisonment for illegally obtaining fentanyl through fraud and deception while working in the catheterization lab at a hospital.
Vasquez was a contract nurse placed at a hospital in summer 2019. Shortly after his placement, he began executing a plan to obtain fentanyl, midazolam, and propofol for his personal use. Between June 2019 and September 2019, he obtained more drugs than was necessary for scheduled procedures and then kept the drugs for himself. On some occasions, he also falsely documented in patient charts that he had administered drugs that were not actually administered. The defendant also took filled syringes, used the drugs himself, and then falsely stated that he had used the syringes on a patient. On at least two occasions, the defendant flushed used syringes and vials down a toilet, which caused flooding in the hospital.
“Vulnerable hospital patients need to trust that they will receive the drugs they are prescribed, and we will prosecute professionals who steal these drugs for their own use,” said Acting United States Attorney Matt Kirsch. “We commend our law enforcement partners for their careful investigation in this matter.”
“The theft of fentanyl by a primary care giver working with patients and using it on the job is a reminder of how bad the opioid epidemic is,” said Deanne Reuter, DEA Denver Division, Special Agent in Charge. “I want to applaud our Diversion Investigators and our partners at the FDA, Office of Criminal Investigations and the U.S. Attorney’s office on their work for this investigation.”
“The FDA oversees the U.S. drug supply to ensure that it is safe and effective, and those who knowingly tamper with medicines put patients’ health at risk,” said Special Agent in Charge Charles L. Grinstead, FDA Office of Criminal Investigations Kansas City Field Office. “We will continue to protect the public health and bring to justice health care professionals who take advantage of their unique position and compromise their patients’ health and comfort by tampering with needed drugs.”
The defendant ultimately agreed to work with law enforcement to ensure that no drugs were tampered and to otherwise mitigate the public health risk associated with his crime.
On September 14, 2021, U.S. District Judge Christine M. Arguello sentenced Mr. Vasquez to three months’ imprisonment. The sentence also includes one year of supervised release with conditions requiring 100 hours of community service. The defendant must also make state licensing authorities aware of his conviction and cooperate with their procedures. The government recommended a lower sentence in this case in consideration of the defendant’s confession and cooperation in disclosing everything known about his diversion of drugs, which was a matter potentially affecting the public health and integrity of the health care system. The felony offense in this case had a maximum sentence of four years of imprisonment and a fine of $250,000, per count.
The investigation in this case was conducted by the Food and Drug Administration, Office of Criminal Investigations, and the Drug Enforcement Administration.
Assistant United States Attorney Bryan Fields prosecuted the case.
CASE NUMBER: 20-cr-00067-CMA
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17 September 2021
“Trainer to the Trainers” Pleads Guilty as a Result of Multi-State Dog Fighting, Drug Trafficking InvestigationRead the Press Release
MACON, Ga. – A well-known dog-fighting trainer and breeder has pleaded guilty to a federal animal fighting charge as the result of an ongoing investigation into a significant multi-state dog fighting and drug trafficking ring.
Vernon Vegas, 49, of Suwanee, Georgia, pleaded guilty to conspiracy to participate in an animal fighting venture before U.S. District Judge Tilman E. “Tripp” Self, III on Tuesday, Sept. 14. Vegas faces a maximum five years in prison to be followed by three years of supervised release and a maximum $250,000 fine. Sentencing is scheduled for December 7, 2021.
“Vernon Vegas was the trainer to the trainers—he taught individuals about the bloody and brutal business of dog-fighting and worked to ensure it was thriving,” said Acting U.S. Attorney Peter D. Leary. “Dog fighting ventures are magnets for a multitude of dangerous criminal activity. Our office and law enforcement will not tolerate animal fighting or the crimes surrounding it; we will seek federal prosecution when warranted.”
“This case illustrates the connection between the underworld of drugs, organized crime and dog-fighting,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “Vernon Vegas profited from these dogs’ pain and will rightly be held to account.”
According to court documents, law enforcement investigated a criminal organization involved in both cocaine distribution and organized dog fighting based out of Roberta, Georgia, which extended into North Georgia, Florida and Alabama from May 2019 until February 2020. In February 2020, law enforcement executed 15 residential search warrants and seized more than 150 dogs that were being used for organized dog fighting.
Between October 1996 and February 2020, Vegas, the owner of Cane Valley Kennels, bred, trained, sold and transported dogs for the purpose of the dog fighting, including Grand Champion “Baby Gracie,” Champion “Son of Sam 2XBis,” Champion “Spider,” Champion “Bucky Mike,” Champion “Bear,” Champion “Kocky Mike,” Champion “Fantasmin,” Champion “Julie the Great,” and one-time winner, “Brenda.” As part of his business, Vegas designed and offered a seven-week “keep” where he trained dogs for animal fighting ventures, prepared on-line pedigrees for the fighting dogs bred and trained at Cane Valley Kennels, provided advice to his co-conspirators on how to train dogs for purposes of engaging in animal fighting ventures, and kept a multitude of training and conditioning equipment including slat mills, chains, a staple gun, hanging weight scales, break sticks, flirt poles and various medicines to treat injuries or disease sustained by dogs made to fight. Between January 2017 and February 2020, Vegas attended dog fights with co-conspirators Derrick Owens and Christopher Raines at locations in the Middle District of Georgia and advised Owens on various matters related to preparing dogs for animal fighting.
The case was investigated by the Drug Enforcement Administration, The United States Department of Agriculture, Office of the Inspector General (USDA-OIG), U.S. Marshals Service, The Department of Justice, Environment and Natural Resources Division (ENRD), Georgia Bureau of Investigation (GBI), Bibb County Sheriff’s Office, Crawford County Sheriff’s Office, Houston County Sheriff’s Office, Merriweather County Sheriff’s Office, Peach County Sheriff’s Office, Taylor County Sheriff’s Office, Webster County Sheriff’s Office, Byron Police Department and the Fort Valley Police Department.
Assistant U.S. Attorney Will Keyes with the U.S. Attorney’s Office for the Middle District of Georgia and Trial Attorney Banu Rangarajan with the Department of Justice, Environmental Crimes Section are prosecuting the case.
Van Buren Man Sentenced to 30 Years in Federal Prison for Interstate Transportation of A MinorRead the Press Release
FORT SMITH – A Van Buren man was sentenced yesterday to 360 months in prison followed by 10 years of supervised release on one count of Transportation of a Minor with Intent to Engage in Criminal Sexual Activity. The Honorable Judge P. K. Holmes III presided over the sentencing hearing in the U.S. District Court in Fort Smith.
According to court documents, in September of 2014, Jeffrey Callen Gonzagowski Jr., 39, transported a minor, across state lines from Mt Ida, Arkansas to Oklahoma. During this time Gonzagowski sexually assaulted the minor. Gonzagowski was arrested in December 2020 and pled guilty in March 2021.
Acting U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.
The Federal Bureau of Investigations investigated the case.
Assistant U.S. Attorney Tyler Williams prosecuted the case for the United States.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Two Defendants Indicted for Oahu Game Room Robbery, Drug Trafficking, and "Ghost Gun" PossessionRead the Press Release
HONOLULU – A federal grand jury returned an indictment yesterday charging Makoa K.F. Wilson, 26, and Jessica R. Lorrin, 30, both residents of Oahu, with the gunpoint robbery of an Oahu game room establishment. The indictment also charges Wilson and Lorrin with possession of 50 grams or more of methamphetamine with intent to distribute; with possession of a privately made firearm—commonly referred to as a “ghost gun”—in furtherance of that drug trafficking crime; and with possession of ammunition after having each sustained a felony conviction.
Judith A. Philips, Acting U.S. Attorney for the District of Hawaii, said that according to the indictment, Wilson and Lorrin committed an armed robbery at an illegal game room on Keaulana Avenue on July 15, 2020. Acting U.S. Attorney Philips emphasized the continued commitment of the U.S. Attorney’s Office to combating illegal game room activity, as well as the robberies, drug trafficking, firearm offenses, and other crimes frequently associated with them.
If convicted, each defendant faces a maximum sentence of 20 years in prison on the robbery charge, a minimum of ten years and up to life in prison on the methamphetamine trafficking charge, a mandatory five years in prison consecutive to the term of imprisonment on the drug charge, and up to ten years in prison for possession of the ammunition. An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Acting U.S. Attorney Philips recognized the investigative work of Homeland Security Investigations (“HSI”) and the assistance of the Honolulu Police Department (“HPD”) that resulted in this indictment. Assistant U.S. Attorney Micah Smith is handling the prosecution.
Three Defendants Plead Guilty to 2011 Murder of Joshua RubinRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced today that KEVIN TAYLOR, GARY ROBLES, and MICHAEL MAZUR pled guilty to participating in the October 31, 2011, murder of Joshua Rubin. After shooting and killing Rubin in Brooklyn, New York, the defendants drove Rubin’s body to rural Pennsylvania, where they doused his body in lighter fluid and set it on fire. TAYLOR and ROBLES pled guilty today. MAZUR pled guilty on July 1, 2021. All three defendants will be sentenced by U.S. District Judge Jed S. Rakoff, to whom the case is assigned.
U.S. Attorney Audrey Strauss said: “On October 31, 2011, Kevin Taylor, Gary Robles, and Michael Mazur participated in the murder of Joshua Rubin after they tried to rob Rubin of a quantity of marijuana. Not only did the defendants kill Rubin, they then drove his body to rural Pennsylvania where they set it on fire in an attempt to conceal the murder. Thanks to the relentless, nearly decade-long efforts of our law enforcement partners to find the individuals who cut short Joshua Rubin’s life, the defendants now face significant prison time for their crimes.”
According to the allegations in the Indictment and other documents filed in federal court, as well as statements made in public court proceedings:
On or about October 31, 2011, TAYLOR, ROBLES, and MAZUR agreed to rob Joshua Rubin of a pound of marijuana. TAYLOR arranged by phone to purchase the marijuana from Rubin. ROBLES agreed to bring a firearm to the robbery. That night, TAYLOR and ROBLES waited inside an apartment while MAZUR served as the lookout. Rubin entered the apartment, and TAYLOR and ROBLES demanded that Rubin give them the marijuana. When Rubin refused, ROBLES shot and killed Rubin.
After the murder, TAYLOR, ROBLES, and MAZUR put Rubin’s body into the trunk of a car and drove to rural Pennsylvania. There, TAYLOR, ROBLES, and MAZUR put Rubin’s body in a garbage can, poured lighter fluid over the body, and set the body on fire. TAYLOR, ROBLES, and MAZUR then drove back to New York in the early morning hours.
In 2019 and 2020, prior to federal charges being filed in this case, TAYLOR paid cash bribes to a potential witness in an attempt to prevent the witness from speaking with law enforcement.
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TAYLOR, 28, ROBLES, 38, and MAZUR, 27, each pled guilty to one count of Hobbs Act robbery, in violation of 18 U.S.C. § 1951, which carries a maximum penalty of 20 years in prison. In connection with his guilty plea, each defendant admitted his role in the murder.
TAYLOR also pled guilty to one count of conspiracy to commit Hobbs Act robbery, in violation of 18 U.S.C. § 371, and one count of conspiracy to commit witness tampering, in violation of 18 U.S.C. § 371, each of which carries a maximum penalty of five years in prison.
ROBLES also pled guilty to one count of conspiracy to commit Hobbs Act robbery, in violation of 18 U.S.C. § 371, and one count of conspiracy to distribute marijuana, in violation of 18 U.S.C. § 371, each of which carries a maximum penalty of five years in prison.
MAZUR is scheduled to be sentenced on October 6, 2021. TAYLOR and ROBLES are each scheduled to be sentenced on January 3, 2022.
The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants would be determined by the judge.
Ms. Strauss praised the outstanding work of the Federal Bureau of Investigation, the New York City Police Department, and the Special Agents of the United States Attorney’s Office for the Southern District of New York. She also thanked the Lehigh County District Attorney’s Office, the Pennsylvania State Police, and the South Whitehall Township Police Department for their assistance in the investigation.
The case is being prosecuted by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Alexandra N. Rothman, Mollie Bracewell, and Dominic A. Gentile are in charge of the prosecution.
Tennessee Podiatrist Charged with Health Care Fraud for Alleged Foot Bath SchemeRead the Press Release
A federal grand jury in Memphis, Tennessee, returned an indictment charging a podiatrist with a scheme to defraud Medicare and TennCare by prescribing and dispensing medically unnecessary foot bath medications.
According to the indictment, Nathan Lucas, D.P.M., 56, of Memphis, owned and operated a podiatry clinic, Advanced Foot & Ankle Care of Memphis LLC, as well as multiple in-house pharmacies. The indictment alleges that Lucas regularly prescribed antibiotic and antifungal drugs to be mixed into a tub of warm water for patients to soak their feet. These drug cocktails included capsules, creams, and powders that were not indicated to be dissolved in water and some of which were not water soluble. The indictment alleges that Lucas chose these medications to prescribe and dispense based on their anticipated reimbursement amount, rather than medical necessity. For example, in 2019, Lucas wrote a prescription to a patient for 1,080 capsules of vancomycin, 7,650 grams of econazole cream, and 180 grams of lidocaine, all to be dissolved in a foot bath, and caused Medicare to reimburse his pharmacy over $18,000 for dispensing these drugs. From in or around October 2018 to the present, Lucas allegedly caused his pharmacies to submit nearly $4 million in claims to Medicare and TennCare for dispensing expensive foot bath medications that were not medically necessary and would not have been eligible for reimbursement.
Lucas is charged with five counts of health care fraud. If convicted, he faces a maximum penalty of 10 years in prison per count. A federal district court judge in the Western District of Tennessee will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Acting U.S. Attorney Joseph C. Murphy Jr. for the Western District of Tennessee; and Special Agent in Charge Derrick L. Jackson of the Department of Health and Human Services–Office of Inspector General (HHS-OIG) made the announcement.
HHS-OIG and the Tennessee Bureau of Investigation are investigating the case.
Trial Attorneys Justin M. Woodard and Sara E. Porter of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Chris Cotten of the U.S. Attorney’s Office for the Western District of Tennessee are prosecuting the case.
The Fraud Section leads the Health Care Fraud Strike Force. Since its inception in March 2007, the Health Care Fraud Strike Force, which maintains 15 strike forces operating in 24 federal districts, has charged more than 4,600 defendants who have collectively billed federal health care programs and private insurers for approximately $23 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Tallahassee Woman Arrested in Murder-For-Hire PlotRead the Press Release
TALLAHASSEE, FLORIDA – Gretchen Buselli (a/k/a “Gretchen Yarbrough”), 47, of Tallahassee, Florida, was arrested yesterday on a charge of Use of Interstate Commerce Facility in the Commission of Murder-for-Hire. Jason R. Coody, Acting United States Attorney for the Northern District of Florida, announced the charge today after Buselli made her initial appearance in federal court in Tallahassee.
The complaint alleges that between on or about June 17, 2021, and on or about September 16, 2021, in the Northern District of Florida, Buselli did knowingly and intentionally use or cause another to use the mail or any facility of interstate commerce with the intent that a murder be committed in violation of the laws of the State of Florida, as consideration for the receipt of, or as consideration for a promise or agreement to pay anything of pecuniary value.
Buselli was ordered temporarily detained until a preliminary and detention hearing on September 22, 2021, at 1:30 pm, at the United States Courthouse in Tallahassee. If convicted, she faces up to ten years’ imprisonment.
This arrest resulted from a joint investigation by the Federal Bureau of Investigation and the Tallahassee Police Department. The case is being prosecuted by Assistant United States Attorneys Eric Mountin and Lazaro Fields.
A criminal complaint is merely an allegation by a sworn affiant that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to due process, to include a fair trial, during which it is the government’s burden to prove guilt beyond a reasonable doubt.
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 available 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.
Syracuse Man Pleads Guilty to Drug and Gun ChargesRead the Press Release
SYRACUSE, NEW YORK – Charles Scott, age 61, of Syracuse pled guilty yesterday to distributing cocaine and heroin, possessing with intent to distribute fentanyl, and possessing a firearm as a convicted felon, announced Acting United States Attorney Antoinette T. Bacon, and Ray Donovan, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division.
As part of his guilty plea yesterday, Scott admitted that he sold a quantity of heroin and cocaine during a DEA undercover operation on January 21, 2020 in Syracuse. He also pled guilty to possession of fentanyl with intent to distribute, and possession of a 45. caliber semiautomatic pistol and 12 rounds of ammunition that were recovered during the execution of search warrants on February 26, 2020 at his residence and at another location he was using, both in the city of Syracuse. Scott admitted as part of his guilty plea that he was a previously convicted felon when he possessed the pistol and ammunition.
Charles Scott is scheduled to be sentenced on January 22, 2022 in Utica, New York. At that time, he faces a maximum sentence of up to 20 years in prison, and a fine of up to $1,000,000.00 on each count for his distribution of cocaine and heroin on January 22, 2020, and his possession with intent to distribute fentanyl on February 26, 2020. He faces a maximum sentence of up to 10 years in prison, and a fine of up to $250,000.00 for his conviction for possession of a firearm and ammunition by a convicted felon. Scott could also be sentenced to a post-imprisonment term of supervised release of at least 3 years and up to life A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case is being investigated by the United States Drug Enforcement Administration (DEA) with assistance from the New York State Police, and is being prosecuted by Assistant U.S. Attorney Richard Southwick.
South Hills Pharmacist Pleads to Health Care Fraud Conspiracy, Fraudulently Obtaining Controlled Substances and Misbranding DrugsRead the Press Release
PITTSBURGH, PA - A South Hills pharmacist pleaded guilty in federal court to charges of obtaining controlled substances by fraud, misbranding of drugs, and health care fraud conspiracy, Acting United States Attorney Stephen R. Kaufman announced today.
Timothy W. Forester, 46, of Venetia, PA pleaded guilty to three counts before Senior United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Forester was a licensed pharmacist who owned four pharmacies – Century Square Pharmacy in West Mifflin, PA and Prescription Center Plus with locations in South Park, PA, McMurray, PA and Eight Four, PA. From on or about November 14, 2018, to on or about February 14, 2019, Forester admitted he knowingly, intentionally and unlawfully obtained oxycodone and hydrocodone, Schedule II controlled substances, by misrepresentations, fraud, and deception. Forester admitted he did not place the controlled substances into the inventories of the four pharmacies and did not maintain records to show the controlled substances were dispensed. In addition, Forester admitted he relabeled generic drugs as name brand medications and then sold them as if they were the more expensive drugs. Finally, Forester admitted filling prescriptions with generic drugs, but billing Medicare and Medicaid for the more expensive name brand drugs, thereby committing health care fraud and causing a loss to Medicare and Medicaid of approximately $680,000.
“Timothy Forester ordered opioids without adding them to inventory, mislabeled generic drugs as name-brand medications, and billed Medicare and Medicaid for name-brand drugs when he provided generics, all in violation of federal law,” said Acting U.S. Attorney Kaufman, “We will continue to pursue medical professionals who engage in fraud schemes to enrich themselves at the expense of their patients.”
“U.S. consumers rely on health care professionals to follow FDA requirements pertaining to prescription medications. When they take actions to evade these requirements, they put patient health at risk,” said Special Agent in Charge Mark S. McCormack, FDA Office of Criminal Investigations Metro Washington Field Office. “We will continue to investigate and bring to justice those who threaten the safety of the nation’s drug supply and, ultimately, the patients who take those drugs.”
“Pharmacy professionals who mishandle opioids in an effort to enrich themselves only exacerbate the challenges and devastation families and communities experience as a result of our nation's opioid epidemic," said Maureen R. Dixon, Special Agent in Charge for the Inspector General’s Office of the U.S. Department of Health and Human Services in Philadelphia. “We will continue to work with our law enforcement partners to bring unscrupulous health professionals to justice.”
“Pharmacists such as Forester have an obligation to properly dispense and safeguard controlled substances such as oxycodone and hydrocodone,” said Thomas Hodnett, Acting Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “Forester used his position of trust and access to obtain these powerful painkillers for his own use through fraud and deception.”
Judge Cercone scheduled sentencing for February 8, 2020 at 11:30 a.m. As to Count 1, the law provides for a maximum sentence of four years in prison, a fine of $250,000 or both. As to Count 11, the law provides for a maximum sentence of three years in prison, a fine of $250,000 or both. As to Count 12, the law provides for a maximum sentence of 10 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Robert S. Cessar is prosecuting this case on behalf of the government.
The investigation leading to the filing of charges in this case was conducted by the Western Pennsylvania Opioid Fraud and Abuse Detection Unit, which combines personnel and resources from the following agencies to combat the growing prescription opioid epidemic: Federal Bureau of Investigation, U.S. Health and Human Services – Office of Inspector General, Drug Enforcement Administration, Internal Revenue Service-Criminal Investigations, Pennsylvania Office of Attorney General - Medicaid Fraud Control Unit, United States Postal Inspection Service, U.S. Attorney’s Office – Criminal Division, Civil Division and Asset Forfeiture Unit, Department of Veterans Affairs-Office of Inspector General, Food and Drug Administration-Office of Criminal Investigations and the Pennsylvania Bureau of Licensing.
South Bend Man Sentenced to 28 Years in PrisonRead the Press Release
SOUTH BEND – Bradley Burns, age 33, of South Bend, Indiana was sentenced before United States District Court Judge Damon R. Leichty upon his pleas of guilty to conspiracy to distribute methamphetamine as well as being a felon in possession of a firearm, announced Acting United States Attorney Tina L. Nommay.
Burns was sentenced to 336 months in prison followed by 5 years of supervised release.
According to documents in this case, between October of 2019, and February of 2020, Burns conspired to distribute over 500 grams of methamphetamine. Burns employed another individual to make cross-country drug trafficking trips for him between California and Indiana. In February of 2020 the other individual was stopped in Oklahoma on a return trip to Indiana with over 100 pounds of methamphetamine and a kilogram of heroin. Burns was expecting the methamphetamine to be delivered to his house when law enforcement executed a search warrant and found him to be in possession of multiple firearms, fentanyl, and other drug trafficking paraphernalia such as a money counter and a drug ledger.
This case was investigated Homeland Security Investigations (a component of the Department of Homeland Security) with the assistance from the Drug Enforcement Administration, Oklahoma Bureau of Narcotics, South Bend Police Department (including its Strategic Focus and SWAT Units), St. Joseph County Police Department, St. Joseph County Cyber Crimes Unit, Indiana State Police, and Elkhart City Police. This case was prosecuted by Assistant U.S. Attorney Kimberly Schultz.
Sand Springs Man Sentenced for Kidnapping a Former GirlfriendRead the Press Release
A Sand Springs man who kidnapped and threatened to kill a former dating partner was sentenced today in federal court, announced Acting U.S. Attorney Clint Johnson.
U.S. District Judge Gregory K. Frizzell sentenced Michael Joseph Pointer, 43, to 15 years in federal prison followed by five years of supervised release.
Pointer pleaded guilty in May 2021 to carjacking; kidnapping in Indian Country; and carrying, using, and discharging a firearm during and in relation to a crime of violence. According to court documents and hearings, Pointer had a history of threats and acts of violence.
In a written plea plea agreement, Pointer admitted that on April 3, 2020, he kidnapped a former dating partner using force and intimidation. The defendant threatened to kill the victim and her family in a ‘bloodbath’ and fired his shotgun at the victim, narrowly missing her head. At that time, Pointer knew he was prohibited from possessing a firearm because of his previous felony conviction.
Pointer then took the victim and her Mercury minivan, driving her around Tulsa against her will. At one point, the victim was able to break away from Pointer and run into a convenience store where she hid in a bathroom. A store employee called authorities. Tulsa Police officers responded to the call, located the vehicle, and conducted a traffic stop. Officers discovered a 12-gauge shot gun and ammunition in the vehicle.
At his sentencing hearing, Assistant U.S. Attorney Chantelle Dial stated that Pointer exhibited an escalating pattern of domestic violence since 2005. She noted previous allegations of abuse, including an incident where Pointer strangled an intimate partner. Dial suggested that based on domestic violence statistics, those strangulation allegations coupled with his use of a firearm during the kidnapping made it far more likely Pointer would kill his next intimate partner.
The FBI and Tulsa Police Department conducted the investigation. Assistant U.S. Attorney Chantelle Dial prosecuted the case.
Rogersville Business Owner Stole from Customers in $4 Million Fraud SchemeRead the Press Release
SPRINGFIELD, Mo. – A Rogersville, Missouri, business owner who engaged in a $4 million scheme to defraud his customers was sentenced in federal court today for tax evasion after failing to pay more than $768,000 in state and federal taxes.
“Not only did this defendant steal millions of dollars from his customers, but he stole from the public by evading taxes he owed on his lucrative business operations,” said Acting U.S. Attorney Teresa Moore. “Despite his many efforts to hide his income and property from the IRS, he has been held accountable for his criminal actions and will be forced to pay his fair share.”
Michael David Dismer, 53, was sentenced by U.S. District Judge Roseann Ketchmark to five years in federal prison without parole. The court also ordered Dismer to pay $4,335,656 in restitution to his fraud victims, $721,218 to the IRS, and $46,943 to the Missouri Department of Revenue.
“As shown by Mr. Dismer’s sentencing today, operating a complex fraud scheme involving numerous victims and committing tax fraud will get you shipped to prison,” said IRS Criminal Investigation Special Agent in Charge Tyler Hatcher. “IRS-CI is committed to investigating not only income and employment tax fraud but also fraud schemes which target innocent customers.”
“The FBI is committed to protecting individuals and businesses from fraud schemes such as the one Mr. Dismer has been sentenced for today,” said Charles Dayoub, Special Agent in Charge, FBI Kansas City Division. “Dismer defrauded not only the federal government, but also individuals and communities to support his personal and lavish lifestyle. His betrayal of trust was twofold: not only did he betray his employees, he betrayed the confidence and trust of his clients. His fraud scheme disrupted the operations of commerce, by not providing large boats, barges and tugboats to customers around the world. Instead he deceived these individuals, with no regard to the impact his scheme would have and betrayed his employee by failing to pay employment taxes over 10 years. As a consumer, you have the right to expect to receive the goods and services you have contracted for, and as an employee you have the right to expect your employment tax obligation to be paid on your behalf.”
On April 14, 2021, Dismer pleaded guilty to tax evasion. Dismer has operated at least eight different businesses (most recently, Worldwide Construction, Inc., and Lakeland Marine Builders, LLC, at Stockton, Mo.) that built large boats, barges, and tugboats for customers around the world since 1993. Dismer engaged in a practice known as “pyramiding” – he ceased operating under business names that accumulated unpaid tax assessment, and continued to earn income through newly created business entities.
Dismer admitted that he defrauded 22 customers of his boat-building businesses from 2013 to 2018. Dismer received $4,335,656 from those customers for the construction of specific vessels, but failed to deliver the promised completed vessels. Instead, Dismer admitted, he diverted substantial funds to his personal use.
Dismer made false representations (including providing misleading photographs) to his customers, claiming that the construction of their boats had reached progress points or milestones to induce customers to make their next incremental payments. At least 14 customers received incomplete, inoperable, or unseaworthy vessels from Dismer after paying him more than $2.9 million. At least seven customers who paid Dismer more than $1.3 million received nothing in return.
For example, Dismer received $96,250 from the Village of Igiugig (an unincorporated Native American village in Alaska), which was the proceeds of a federal economic development grant, in December 2015. Dismer immediately withdrew $70,000 of those funds and used it to purchase his Stockton construction facility, including the land and shop. Dismer then transferred title to the Stockton property to Cardgames on Motorcycles, Inc., in which the sole shareholder was a 21-year-old person, to attempt to keep the real estate out of the reach of the IRS and other creditors. The Igiugig Tribal Council paid Dismer a total of $242,375 to build a push-style truckable tugboat, but received nothing in return.
Under the terms of his plea agreement, Dismer was required to sell the Stockton property, with the net proceeds of the sale to be paid as restitution to his victims. Dismer also was required to liquidate all of his other assets so that the proceeds can be used to pay restitution to his victims.
Tax Evasion
Dismer also admitted that he did not file business or personal income tax returns for tax years 2009 through 2017. Dismer’s total tax liability for tax years 2012 through 2016 was at least $291,441, based on a gross income that totaled more than $4 million. Additionally, the state of Missouri suffered an income tax loss of $46,942 from 2012 to 2016.
In an effort to evade paying taxes, Dismer used 28 different bank accounts at six different banks and transferred funds between those accounts, mingling business and personal accounts. Dismer kept no contemporaneous business books and records that would have enabled him to accurately and timely file his individual tax returns. Dismer admitted he made false statements to law enforcement officials during an interview.
Employment Taxes
Dismer also admitted that he collected payroll taxes from his employees but failed to pay over to the government a total of $429,777 of federal income tax and payroll taxes between 1996 and 2007. From 2012 to 2017, Dismer treated his workers as contract labor rather than employees to avoid additional employment tax liabilities.
This case was prosecuted by Assistant U.S. Attorney Shannon Kempf. It was investigated by IRS-Criminal Investigation and the FBI.
Richmond Man Sentenced to 240 Months for Methamphetamine Trafficking and Firearm ChargesRead the Press Release
LEXINGTON, Ky.— A Richmond, Kentucky, man, John William Lawson, 57, was sentenced on Thursday to 240 months in prison, by U.S. District Judge Gregory Van Tatenhove, for distribution of more than 500 grams of methamphetamine, distribution of heroin, possession of a firearm in furtherance of drug trafficking, and possession of firearms by a convicted felon.
According to testimony at trial, Lawson was arrested after a traffic stop during which officers located a loaded handgun, drug paraphernalia, and more than $23,000 in United States currency. Subsequent search warrants at Lawson’s residence in Madison County revealed more than one pound of methamphetamine, which was determined to be 100% pure. The search also resulted in the seizure of an additional $57,000 in United States currency, thousands of Xanax pills, and several firearms.
Lawson was convicted in May 2021.
Under federal law, Lawson must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for 10 years.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; J. Todd Scott, Special Agent in Charge of the Drug Enforcement Administration’s Louisville Field Division; Chief James Ebert, Richmond Police Department, and Sheriff Mike Coyle, Madison County Sheriff’s Office, jointly announced the sentence.
The investigation was conducted by the DEA, the Madison County AHIDTA Task Force, the Richmond Police Department, and the Madison County Sheriff’s Office. The United States was represented in the case by Assistant U.S. Attorneys Todd Bradbury and David Kiebler.
This case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. t involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, Acting U.S. Attorney Shier coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
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Republic Man Sentenced to 25 Years for Transporting Minors for SexRead the Press Release
SPRINGFIELD, Mo. – A Republic, Missouri, truck driver was sentenced in federal court today for transporting two Missouri teenagers across state lines and sexually assaulting them.
Cleveland Lee Crumsey, 38, was sentenced by U.S. District Judge Roseann Ketchmark to 25 years in federal prison without parole. The court also sentenced Crumsey to spend the rest of his life on supervised release following incarceration.
On March 13, 2020, Crumsey pleaded guilty to one count of transporting a minor across state lines to engage in criminal sexual activity. Crumsey admitted that he transported two child victims across state lines from Missouri to Iowa in his truck. Crumsey also admitted that he had sexual intercourse with both of the child victims. According to court documents, one of the victims was 16 years old and the second victim was 17 years old.
This case was prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the Southwest Missouri Cyber Crimes Task Force, the Monett, Mo., Police Department, Homeland Security Investigations, and the Fremont County, Iowa, Sheriff’s Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Repeat Sex Offender Sentenced to 30 Years in Federal Prison for Enticement of a Minor to Engage in Unlawful Sexual ActivityRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Jeffrey Cummings, age 36, of Baltimore, Maryland to 30 years in federal prison, followed by a lifetime of supervised release, for a federal charge for enticement of a minor to engage in illegal sexual activity during a period of time when Cummings was required to register as a sex offender. Judge Blake also ordered that, upon his release from prison, Cummings must continue to register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA). Cummings has been detained since his arrest on July 19, 2019.
The sentence 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 Postal Inspector in Charge Daniel A. Adame of the U.S. Postal Inspection Service - Washington Division.
According to his plea agreement, from March 2017 to July 2019, Cummings attempted to coerce dozens of minor victims to engage in sexually explicit conduct on a popular social media platform. Using a smartphone and computers, Cummings communicated with at least six minor victims. During that time, Cummings was required to register as a sex offender, as the result of a 2008 conviction in Anne Arundel County, Maryland for sexual contact with a 10-year-old boy.
"Cummings was a repeat sex offender who preyed on children, deceiving them to send him illegal images, and threatening to kill them if they refused to comply”, said Acting U.S. Attorney Jonathan F. Lenzner. “We hope this sentence will deter others like Cummings from victimizing children, and we hope this case will remind parents that there are predators, like this defendant, lurking on the internet. Every parent should familiarize themselves with the social media platforms their children may use and their online contacts. Educate your child on the dangers of communicating with persons online, even those that may seem non-threatening, and how to report suspicious persons to an adult."
“Online safety for today’s children is constantly changing as advancing technology poses new risks”, said Inspector in Charge Daniel A. Adame, Washington Division of the U.S. Postal Inspection Service. “Postal Inspectors continue their long tradition of working with our law enforcement partners to investigate those predators who seek to sexually exploit children.”
The investigation into Cummings’ illegal conduct began after the National Center for Missing and Exploited Children received a CyberTip from a guardian of two minor boys. The guardian alerted authorities to a suspicious individual who had contacted her minor nephews on the internet and asked the minor boys to send dirty socks in the mail.
According to his plea agreement, from March 2017 through July 2019, Cummings operated multiple social media accounts using a variety of aliases, including elaborate, false female personas, to communicate with minor boys under the false pretense that he was a minor girl. Using his accounts, Cummings coerced and enticed at least six minor male victims, ranging in age from 13 to 16 years old, to send Cummings pictures and videos of themselves engaged in sexually explicit conduct. Cummings also admitted that he further distributed some of the sexually explicit photos received from the victims.
As detailed in the plea agreement, during his conversations with the victims, Cummings, posing as a teenage girl, requested the victims to send “her” a sexually explicit photograph or video. Thinking that they were communicating with a teenage girl, and often after Cummings sent the victims pictures of a teenage girl purported to be pictures of “herself,” including nude images of a pubescent female’s genital area, at least five of the minor victims sent Cummings sexually explicit images of themselves.
Throughout his conversations with several of the victims, Cummings requested that the victims send him their previously worn socks by mail. Cummings claimed that they were for a “science project,” and even offered one victim “$20 a pair”.
If the victims declined to comply with Cummings’ demands, he threatened the victims including death threats, threatening to publicly post the victims’ home addresses, distribute the victims’ sexually explicit videos to their teachers and school, or post the victims’ sexually explicit videos to social media. For example, in a group chat that included a minor boy and at least two of Cummings’ alias social media accounts, Cummings threatened to publicly post a sexually explicit video of a minor victim if the victim did not meet his demands. Despite the minor boy’s objections, Cummings subsequently posted the video to a group chat on a social media platform. Using his alias accounts, Cummings continued to taunt the minor boy and threatened to post the victim’s video and address online and send the video to the victim’s teachers.
Law enforcement executed a search warrant at Cummings’ residence on July 19, 2019, and seized his cell phone, which contained images of child pornography, including sexually explicit images of the victims. The phone also had accessed several of Cummings’ alias social media accounts. After his arrest that same day, Cummings agreed to speak with investigators. Cummings made numerous statements attributing exchanges of nude photos on social media and the solicitation of dirty socks for a sexual fetish to his teenage son, stating that he had two sons, ages 15 and nine, who lived with his mother in Pennsylvania. Further, Cummings stated that he asked his brother to pick up socks from his post office box and deliver them to his son in Pennsylvania. In fact, Cummings is an only child, has not fathered or raised any children, and his mother has never raised or kept any children for Cummings.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
Acting United States Attorney Jonathan F. Lenzner commended the U.S. Postal Inspection Service and FBI for their work in the investigation, and thanked the Baltimore Police Department for its assistance. Mr. Lenzner thanked Assistant U.S. Attorneys Mary W. Setzer and Christine L. Duey, who are prosecuting the federal case, and recognized Assistant U.S. Attorney Zachary A. Myers for his assistance.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
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Patient Recruiter and Physician Plead Guilty in Bribery and Kickback Scheme in Connection with Transvaginal Mesh LitigationRead the Press Release
Earlier today, in federal court in Brooklyn, Christopher Walker, a licensed urogynecologist, pleaded guilty to participating in a scheme involving the payment of bribes and kickbacks to obtain referrals of female patients across the United States for surgeries to remove transvaginal mesh (TVM) implants. Wesley Blake Barber, an owner of Surgical Assistance Inc., pleaded guilty on September 14, 2021 to participating in the same scheme. Both proceedings took place before United States District Judge Raymond J. Dearie.
Jacquelyn M. Kasulis, Acting United States Attorney for the Eastern District of New York, Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI) announced the guilty pleas.
“With these guilty pleas, both defendants have admitted to participating in a reprehensible bribery and kickback scheme to exploit women across the country in connection with costly transvaginal mesh removal surgeries,” stated Acting United States Attorney Kasulis. “This Office, the Department of Justice and the FBI are committed to investigating and prosecuting medical professionals and others who take advantage of vulnerable victims for their own illegal gain and personal profit.”
According to court filings and facts presented at the plea proceeding, Barber and Walker sought to profit in connection with lawsuits filed throughout the United States relating to alleged harm that TVM implants had caused female patients. The scheme sought to take advantage of the fact that female patients who had their TVM implants surgically removed were entitled to receive larger settlements than female patients whose inserts remained implanted. As part of the scheme, Walker and others paid kickbacks and bribes to Barber in exchange for the referral of female patients for these surgeries, including patients who traveled across the United States to undergo the surgeries.
When sentenced, Walker faces up to 10 years in prison and has agreed to forfeit approximately $800,000. Barber faces up to 5 years in prison and has agreed to forfeit approximately $1.1 million.
The government’s case is being prosecuted by Assistant United States Attorneys Elizabeth Geddes and Sarah Evans and Trial Attorney Andrew Estes of the Criminal Division’s Fraud Section.
The Defendants:
WESLEY BLAKE BARBER
Age: 51
Detroit, MichiganCHRISTOPHER WALKER
Age: 49
Windermere, FloridaE.D.N.Y. Docket No. 19-CR-239 (RJD)
Owings Mills Couple Facing Federal Indictment for Charges Relating to a $20 Million Life Insurance SchemeRead the Press Release
Baltimore, Maryland – A federal grand jury has returned an indictment charging James William Wilson, Jr., age 74, of Owings Mills, Maryland; and Maureen Ann Wilson, age 73, of Owings Mills, Maryland with federal charges of conspiracy, mail fraud, wire fraud, money laundering, and filing a false tax return. James Wilson has also been charged with aggravated identity theft.
The indictment was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Acting Special Agent in Charge Darrell J. Waldon of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to the 21-count indictment, from at least 1996 until the present, the Wilsons conspired to fraudulently obtain more than 30 life insurance policies, worth more than $20 million in life insurance benefits, on behalf of applicants. Specifically, the Indictment alleges that the life insurance applications contained material misrepresentations about the applicant, including the amount of the applicant’s existing life insurance coverage, the applicant’s health, and the applicant’s income.
The indictment further alleges that the Wilsons fraudulently obtained money from victim investors to pay the premiums on life insurance policies. Allegedly, the Wilsons obtained these funds by misleading victim investors to believe their money was being used as either a loan or an investment that would be repaid with interest, when, in fact, the money was being used to pay premiums on fraudulently-obtained life insurance policies.
The indictment further alleges that the Wilsons forged signatures to make themselves and other nominees they controlled the owners and the beneficiaries of the life insurance policies. The Indictment alleges that when certain insureds died, the Wilsons received more than $8 million in life insurance proceeds.
Further, the indictment alleges the Wilsons attempted to launder and conceal the fraudulently-obtained funds by controlling multiple bank accounts, opening bank accounts with nominee owners, and causing fraud proceeds to move through bank accounts owned by others.
The indictment further alleges that Wilsons filed false tax returns in 2018 and 2019 when they failed to report millions of dollars of fraudulently-obtained life insurance proceeds.
If convicted, James and Maureen Wilson face a maximum sentence of 20 years in federal prison for each count of conspiracy, wire fraud, mail fraud, and money laundering with intent to conceal; and three years in federal prison for each count of filing a false tax return. James Wilson faces a mandatory sentence of two years, consecutive to any other sentence imposed, for each of two counts of aggravated identity theft. Maureen Wilson faces 10 years in federal prison for transactional money laundering. Actual sentences for federal crimes are typically less than the maximum penalties.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Jonathan F. Lenzner commended the IRS-Criminal Investigation, the Maryland Insurance Administration, and the Maryland Office of the Attorney General for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Matthew Phelps and Stephanie Williamson, and Trial Attorney Shawn Noud of the Justice Department’s Tax Division, who are prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/community-outreach.
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Ohio Man Indicted for Threatening a Local Reproductive Health Services FacilityRead the Press Release
A federal grand jury in Columbus, Ohio, returned an indictment charging an Ohio man for threatening a reproductive health services facility.
According to court documents, Carlos Manuel Rodriguez Brime, 25, of Columbus, made two separate telephone threats to an Ohio reproductive health services clinic. The first count charges Brime with a violation of the Freedom of Access to Clinic Entrances (FACE) Act, which makes it a federal crime to threaten the use of force to intimidate anyone receiving or providing reproductive health services. The second count charges Brime with making threatening statements through interstate communications and the third count charges Brime with making a bomb threat.
The charges stem from two separate telephoned threats that Brime made to a reproductive health care clinic on April 11, in which Brime made a death threat and a bomb threat.
If convicted of the offenses, Brime faces up to a maximum of 10 years in prison, three years of supervised release and a fine of up to $250,000.
The case was investigated by the FBI’s Columbus Resident Agency of the Cincinnati Field Office and the Columbus Police Department. The case was prosecuted by Trial Attorney Sanjay Patel of the Civil Rights Division and Assistant U.S. Attorney Emily Czerniejewski.
An indictment is a formal accusation of criminal conduct, and not evidence of guilt. The defendant is presumed innocent unless proven guilty.
National healthcare fraud enforcement action results in charges involving more than $1.4 billion in alleged lossesRead the Press Release
WASHINGTON: A strategically coordinated, six-week nationwide federal law enforcement action has resulted in criminal charges against 138 defendants, including 42 doctors, nurses, and other licensed medical professionals, in 31 federal districts across the United States for their alleged participation in various healthcare fraud schemes for more than $1.4 billion in alleged losses.
The enforcement action includes criminal charges against six defendants here in the Southern District of Georgia. The charges announced involve some defendants accused of committing a kickback conspiracy involving cancer genomic testing claims, and other defendants accused of illegal distribution of opioids. The Southern District of Georgia’s announced charges account for more than $50 million in collective billings to federal health benefit programs.
Nationwide, the charges target approximately $1.1 billion in fraud committed using telemedicine, more than $29 million in COVID-19 health care fraud, more than $133 million connected to substance abuse treatment facilities, or “sober homes,” and more than $160 million connected to other health care fraud and illegal opioid distribution schemes across the country.
“The vigilance of our law enforcement partners plays a vital role in identifying illegal healthcare activities throughout the nation and the Southern District of Georgia,” said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. “We will continue to hold accountable those who would seek to gain illicit profit by criminally exploiting our nation’s healthcare safety net.”
“This nationwide enforcement action demonstrates that the Criminal Division is at the forefront of the fight against health care fraud and opioid abuse by prosecuting those who have exploited health care benefit programs and their patients for personal gain,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “The charges announced today send a clear deterrent message and should leave no doubt about the department’s ongoing commitment to ensuring the safety of patients and the integrity of health care benefit programs, even amid a continued pandemic.”
Today’s enforcement actions were led and coordinated by the Health Care Fraud Unit of the Criminal Division’s Fraud Section, in conjunction with its Health Care Fraud and Appalachian Regional Prescription Opioid (ARPO) Strike Force program, and its core partners, the U.S. Attorneys’ Offices, the Department of Health and Human Services Office of Inspector General (HHS-OIG), FBI, and the Drug Enforcement Administration (DEA), as part of the department’s ongoing efforts to combat the devastating effects of health care fraud and the opioid epidemic. The Southern District of Georgia worked with the Justice Department’s Criminal Division and agents from HHS-OIG, FBI, and DEA in the investigation and prosecution of these cases.
Telemedicine Fraud Cases
The largest amount of alleged fraud loss charged in connection with the cases announced today – more than $1.1 billion in allegedly false and fraudulent claims submitted by 43 criminal defendants in 11 judicial districts nationwide – relates to schemes involving telemedicine: the use of telecommunications technology to provide health care services remotely. In the Southern District of Georgia, two marketers were charged by way of Information relating to their role in a conspiracy that bought and sold cancer genomic (“CGx”) testing for Medicare beneficiaries. Court documents allege that the CGx tests bought in that conspiracy were ultimately billed to Medicare by a series of laboratories for more than $45 million.
The continued focus on prosecuting health care fraud schemes involving telemedicine reflects the success of the nationwide coordinating role of the Fraud Section’s National Rapid Response Strike Force.
“Healthcare crimes hurt every taxpayer and put profits over the care of our nation’s most vulnerable citizens,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “It puts a tremendous strain on our federally-subsidized health care programs. The FBI and our federal partners will hold accountable anyone who usurps healthcare assistance for their personal greed.”
The focus on telemedicine fraud also builds on the telemedicine component of last year’s national takedown and the impact of the 2019 “Operation Brace Yourself” Telemedicine and Durable Medical Equipment Takedown, which resulted in an estimated cost avoidance of more than $1.9 billion in the amount paid by Medicare for orthotic braces in the 20 months following that takedown. The Southern District of Georgia has played a major role in these nationwide schemes, having charged more than 30 defendants responsible for a collective $1.6 billion in billings across Operation Brace Yourself, Operation Double Helix, and Operation Rubber Stamp. The Southern District of Georgia kickback charges announced today are being prosecuted by Assistant U.S. Attorney Jonathan A. Porter.
Cases Involving the Illegal Prescription and/or Distribution of Opioids and Cases Involving Traditional Health Care Fraud Schemes
The cases announced today involving the illegal prescription and/or distribution of opioids include 19 defendants, including several charges against medical professionals and others who prescribed more than 12 million doses of opioids and other prescription narcotics while submitting more than $14 million in false billings. The cases that fall into more traditional categories of healthcare fraud include charges against more than 60 defendants who allegedly participated in schemes to submit more than $145 million in false and fraudulent claims to Medicare, Medicaid, TRICARE, and private insurance companies for treatments that were medically unnecessary and often never provided.
In the Southern District of Georgia, three South Georgia medical professionals were indicted for illegal distribution of opioids and conspiracy to commit health care fraud. The indictment alleges that the charged physician, nurse practitioner, and physician assistant operated a nominal pain clinic that distributed opioids with no legitimate medical purpose. These charges are being prosecuted by Assistant U.S. Attorneys Matthew A. Josephson and Bradford C. Patrick.
“The public relies on medical professionals to be part of the solution to our nation’s prescription drug abuse epidemic – not to worsen the problem by distributing controlled substances without a legitimate medical purpose," said Special Agent in Charge Derrick L. Jackson of HHS-OIG. “Working closely with our law enforcement partners, we will continue to investigate unscrupulous providers who prey on vulnerable members of the public.”
“Medical practitioners who unlawfully dispense dangerous, addictive and potentially deadly substances do so under the guise of a stethoscope and white coat to hide behind a veil of legitimacy. They commit fraudulent acts and prey on patients who are addicted to prescription opioids and are unfit to administer care to anyone,” said Robert J. Murphy, Special Agent in Charge of the DEA Atlanta Field Division. “DEA and its law enforcement partners stand united and are committed to bringing those to justice who engage in these unlawful acts.”
Prior to the charges announced as part of today’s nationwide enforcement action and since its inception in March 2007, the Health Care Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,600 defendants who have collectively billed the Medicare program for approximately $23 billion. In addition to the criminal actions announced today, CMS, working in conjunction with HHS-OIG, announced 28 administrative actions to decrease the presence of fraudulent providers.
The National Rapid Response Strike Force also announced prosecutions across the country today regarding $128 million in COVID-19 fraud, cases and nearly $1 billion in fraud cases involving sober homes.
A complaint, information or indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
To view Assistant Attorney General Polite’s remarks, go to: https://www.justice.gov/opa/video/assistant-attorney-general-kenneth-polite-jr-delivers-remarks-health-care-enforcement.
National Health Care Fraud Enforcement Action Results in Charges of over $308 Million in Intended Loss Against 52 Defendants in the Southern District of FloridaRead the Press Release
Miami, Florida – Over 50 defendants were charged in the Southern District of Florida in the last six weeks, as part of a nationwide federal law enforcement action to combat health care fraud.
The federal charges filed in South Florida cover a wide range of schemes, from novel crimes like theft of Covid-19 personal protection equipment and fraud connected to substance abuse treatment facilities (sober homes), to more familiar violations like health care fraud involving durable medical equipment suppliers, home health, pharmacies, payment of kickbacks, money laundering, and more. It is alleged that $308 million in fraudulent claims was billed by the defendants charged in the Southern District of Florida during the six-week enforcement period. Over $106 million of that billed amount was paid.
Nationwide, 138 defendants, including 42 doctors, nurses, and other licensed medical professionals, in 31 federal districts across the United States, were charged during the enforcement period for their alleged participation in various healthcare fraud schemes that resulted in approximately $1.4 billion in alleged losses. Nationally, the charges target approximately $1.1 billion in fraud committed using telemedicine (the use of telecommunications technology to provide health care services remotely), $29 million in COVID-19 health care fraud, $133 million connected to substance abuse treatment facilities, or “sober homes,” and $160 million connected to other health care fraud and illegal opioid distribution schemes across the country.
“The results of the coordinated law enforcement effort that we announce today exemplify my Office and its law enforcement partners’ enduring commitment to combatting all forms of health care fraud-related schemes.” said Juan Antonio Gonzalez, Acting U.S. Attorney for the Southern District of Florida. “We will not relent in holding accountable those in South Florida who exploit health care programs and patient trust for personal gain, particularly during the COVID-19 global pandemic.”
“This nationwide enforcement action demonstrates that the Criminal Division is at the forefront of the fight against health care fraud and opioid abuse by prosecuting those who have exploited health care benefit programs and their patients for personal gain,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “The charges announced today send a clear deterrent message and should leave no doubt about the department’s ongoing commitment to ensuring the safety of patients and the integrity of health care benefit programs, even amid a continued pandemic.”
Today’s enforcement actions were led and coordinated by the Health Care Fraud Unit of the Criminal Division’s Fraud Section, in conjunction with its Health Care Fraud and Appalachian Regional Prescription Opioid (ARPO) Strike Force program, and its core partners, the U.S. Attorneys’ Offices, the Department of Health and Human Services Office of Inspector General (HHS-OIG), FBI, and the Drug Enforcement Administration (DEA), as part of the department’s ongoing efforts to combat the devastating effects of health care fraud and the opioid epidemic.
The Southern District of Florida, in particular, worked with the Department’s Criminal Division and the following law enforcement organizations to investigate and prosecute the cases filed during the enforcement period: FBI Miami; U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), Miami Region; Social Security Administration, Office of Inspector General (SSA-OIG), Atlanta Field Division; Homeland Security Investigations (HSI), Miami; United States Postal Inspection Service (USPIS), Miami Region; Florida’s Office of the Attorney General, Medicaid Fraud Control Unit (MFCU); Florida State Attorney’s Office; City of Miami Beach Police Department; Palm Beach County Sober Homes Task Force; Amtrack Office of the Inspector General; and the Department of Insurance Fraud.
“South Florida is ground zero for health care fraud. As such, the FBI and its partners devote vast resources to investigate, catch and prosecute those committing this fraud,” said George L. Piro, Special Agent in Charge, FBI Miami. The victims are U.S. taxpayers, you and me. Our message to those who commit health care fraud and steal from U.S. taxpayers is clear: you will be caught, and you will be punished.”
“Healthcare fraud is hardly a victimless crime. The well-being and trust of patients and taxpayers are at risk when corrupt providers engage in schemes that drain taxpayer-funded health care programs and undermine impartial medical judgement,” said Special Agent in Charge Omar Pérez Aybar of HHS-OIG Miami. “These cases demonstrate our resolve to investigate bad actors and protect the patients served by vital federal health and human services programs.”
“Those who misuse the Social Security numbers of other individuals for personal gain are warned -- we will hold you accountable.” said Rodregas W. Owens, Special Agent-in-Charge, SSA-OIG, Atlanta Field Division. “We will continue to work aggressively to identify such fraud in an effort to protect taxpayers against fraud, waste, and abuse.”
“We as a law enforcement community will not allow individuals to defraud government health-care programs for their own personal gain,” said Anthony Salisbury, Special Agent in Charge, HSI Miami. “HSI and its partners will continue to pursue individuals and companies who are taking advantage of innocent patients seeking medical care.”
“My Medicaid Fraud Control Unit works tirelessly to stop the exploitation of the taxpayer-funded Medicaid program and protect the vulnerable Floridians who rely on its services. I’m proud of our partnership with federal authorities to hold these criminals abusing the system accountable,” said Florida Attorney General Ashley Moody.
COVID-19 Fraud Cases
Across the nation, nine defendants are charged with engaging in various health care fraud schemes designed to exploit the COVID-19 pandemic, which resulted in the submission of over $29 million in false billings.
In the Southern District of Florida, for example, a defendant is charged with stealing personal protective equipment from a hospital and reselling it at inflated prices:
In U.S. v. Rickey Delancey, Jr., Case No. 21-20471-Cr-Moore, a 30-year-old Miami resident is charged by indictment with conspiracy to steal medical products, theft of medical products, and transportation of stolen goods. According to the indictment, Delancey worked in the supplies department of Mount Sinai Hospital. From about April to November 2020, Delancey stole N95 masks and other medical supplies from his workplace and sold them to various purchasers. Among other items, he sold $55,000 worth of stolen masks to a purchaser in California, says the indictment. As a result of the thefts, during the height of the COVID-19 pandemic, Mount Sinai did not have the supplies needed for nurses, doctors, staff, and patients, and at one point was down to only a three-day supply of N95 masks.
FBI Miami and USPIS Miami investigated this case, along with City of Miami Beach Police Department. Southern District of Florida Assistant U.S. Attorney Lindsey Lazopoulos Friedman is prosecuting it.
The law enforcement action today also includes criminal charges against five defendants across the country who allegedly engaged in the misuse of Provider Relief Fund monies. The Provider Relief Fund is part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a federal law enacted March 2020 designed to provide needed medical care to Americans suffering from COVID-19.
The COVID-19 cases announced today build upon the success of the COVID-19 Health Care Fraud Takedown on May 26, a coordinated law enforcement action against 14 defendants in seven judicial districts for over $128 million in false billings. The law enforcement action and the cases announced today were brought in coordination with the Health Care Fraud Unit’s COVID-19 Interagency Working Group, which is chaired by the National Rapid Response Strike Force and organizes efforts to address illegal activity involving health care programs during the pandemic.
Sober Homes Cases
Today’s announcement of sober homes cases charged across the nation coincides with the one-year anniversary of the first national sober homes initiative in 2020, which included charges against more than a dozen criminal defendants in connection with more than $845 million of allegedly false and fraudulent claims for tests and treatments for vulnerable patients seeking treatment for drug and/or alcohol addiction. The over $133 million in false and fraudulent claims that are additionally alleged in cases announced today reflect the continued effort by the National Rapid Response Strike Force and the Health Care Fraud Unit’s Los Angeles Strike Force, with the participation of the U.S. Attorney’s Offices for the Central District of California and the Southern District of Florida, to prosecute those who participated in illegal kickback and bribery schemes involving the referral of patients to substance abuse treatment facilities; those patients could be subjected to medically unnecessary drug testing – often billing thousands of dollars for a single test – and therapy sessions that frequently were not provided, and which resulted in millions of dollars of false and fraudulent claims being submitted to private insurers.
In the Southern District of Florida, two defendants are charged with sober homes fraud:
In United States v. Mimi Bieda and Levi Bieda a/k/a Larry, Case No. 21-80112-CR-Rosenberg, Mimi Bieda, 62, and Levi Bieda, 36, of West Palm Beach, Florida, are charged by information with conspiracy to commit $128 million of health care fraud. According to the information, the Biedas owned and operated Academy Health Solutions, LLC (“Academy”), a substance abuse treatment center in Palm Beach County, Florida, as well as a sober home and detox facilities. They also had ownership interest in several drug testing laboratories. It is alleged that the Biedas hired a medical director for Academy, Dr. Michael Ligotti, who signed standing orders for medically unnecessary and expensive drug testing in exchange for patient referrals. Dr. Ligotti then billed the patients’ insurance plans for duplicative, excessive, non-rendered, and/or medically unnecessary treatment and testing. The Biedas used the standing orders signed by Dr. Ligotti, and by a subsequent medical director at Academy, to authorize medically unnecessary drug testing at laboratories in which they had an ownership interest, allowing them to receive percentages of all claim reimbursements for those tests, says the information. It is alleged that the Biedas also paid kickbacks and bribes, in the form of free or reduced rent, access to controlled substances provided by Academy’s medical directors, and other benefits, to individuals who agreed to live at their sober home, attend treatment at Academy, and submit to drug testing, so that the Biedas could bill these services to the residents’ insurance plans.
FBI Miami investigated this case, along with Palm Beach County Sober Homes Task Force, Florida State Attorney’s Office, Amtrack Office of the Inspector General, and Department of Insurance Fraud. Southern District of Florida Assistant United States Attorneys Alexandra Chase and Danielle Croke, as well as National Rapid Response Strike Force Senior Litigation Counsel James V. Hayes and Trial Attorney Ligia Markman are prosecuting it.
Cases Involving Traditional Healthcare Fraud Schemes and the Illegal Prescription and/or Distribution of Opioids
The cases announced today that fall into more traditional categories of health care fraud include charges filed across the nation against over 60 defendants who allegedly participated in schemes to submit more than $145 million in false and fraudulent claims to Medicare, Medicaid, TRICARE, and private insurance companies for treatments that were medically unnecessary and often never provided. Cases filed across the nation involving the illegal prescription and/or distribution of opioids involve 19 defendants, including several charges against medical professionals and others who prescribed over 12 million doses of opioids and other prescription narcotics, while submitting over $14 million in false billings.
In the Southern District of Florida, defendants are charged in cases involving a wide range of traditional health care fraud schemes. Some of the cases charged in the Southern District of Florida during the six-week enforcement period include the following:
In United States v. Edward Pizzi, Case No. 21-20467-CR-Altman, a 40-year-old from Miami, Florida is charged by information with conspiracy to pay health care kickbacks. According to the information, Pizzi owned and operated Miami-based Rios Medical Center and Union Medical Clinic. Pizzi directed his employees to pay kickbacks to recruit Medicare beneficiaries and Medicaid recipients to the clinics. The clinics used the identification numbers of these beneficiaries and recipients to submit claims to Medicare Part C and Medicaid for, among other things, purported mental health therapy services. Most of the recruited beneficiaries neither needed nor qualified for such services.
FBI Miami, HHS-OIG Miami, and MFCU investigated this case. Southern District of Florida Assistant U.S. Attorney Michael Homer is prosecuting it.
In United States v. Mayara Gonzalez Chaviano, Case No. 21-20468-CR-King, a 28-year-old Miami, Florida resident is charged by information with conspiracy to pay health care kickbacks. According to the information, Chaviano was the office manager of Rios Medical Center and Union Medical Clinic, in Miami, Florida. Chaviano managed the clinics’ scheme to pay kickbacks to recruit Medicare beneficiaries and Medicaid recipients to the clinics. The clinics used the identification numbers of these beneficiaries and recipients to submit claims to Medicare Part C and Medicaid for, among other things, purported mental health therapy services. Most of the recruited beneficiaries neither needed nor qualified for such services.
FBI Miami, HHS-OIG Miami, and MFCU investigated this case. Southern District of Florida Assistant U.S. Attorney Michael Homer is prosecuting it.
In United States v. Liliana Liseth Duarte, Case No. 21-20469-CR-Bloom, a 47-year-old resident of Miami, Florida, is charged by information with conspiracy to pay health care kickbacks. According to the information, Duarte was an employee of Rios Medical Center and Union Medical Clinic, in Miami, Florida. Duarte paid kickbacks to individuals to recruit Medicare beneficiaries and Medicaid recipients to the clinics. The clinics used the identification numbers of these beneficiaries and recipients to submit claims to Medicare Part C and Medicaid for, among other things, purported mental health therapy services. Most of the recruited beneficiaries neither needed nor qualified for such services.
FBI Miami, HHS-OIG Miami, MFCU investigated this case. Southern District of Florida Assistant U.S. Attorney Michael Homer is prosecuting it.
In United States v. Jason Kashou, Case No. 21-60245-CR-Dimitrouleas, the 35-year-old owner of 1st Choice is charged by information with conspiracy to solicit and receive illegal kickbacks from pharmacies. Kashou bought Medicare and Medicaid beneficiary information from a call center in India. Kashou then agreed to provide the beneficiary information to pharmacies so that the pharmacies could fill prescriptions for expensive diabetic supplies and topical pain creams. In exchange, the pharmacies agreed to pay Kashou a percentage of the profits from the amount Medicare and Medicaid paid on a per patient basis.
On September 14, Kashou pled guilty to the charge. His sentencing hearing is set for November 23, at 1:15 p.m., before U.S. District Judge William P. Dimitrouleas.
HSI Miami, HHS-OIG Miami and MFCU investigated this case. Southern District of Florida Assistant U.S. Attorneys Stephanie Hauser and Michael Gilfarb are prosecuting it.
In United States v. Greisy Rosario Varona Docasal, Case No. 21-20439-CR-Cooke, a 52-year-old Miami, Florida resident is charged by indictment with conspiracy to receive health care kickbacks, and substantive counts of receiving kickbacks in connection with a federal health care program. According t0 the indictment, Varona Docasal, as office manager of a doctor’s office, was involved in a scheme to illegally recruit Medicare beneficiaries and refer them to home health agencies in exchange for receiving illegal kickbacks from the owners and operators of the home health agencies who in turn billed Medicare for home health services for the recruited Medicare beneficiaries.
HHS-OIG Miami investigated this case. Southern District of Florida Assistant U.S. Attorney Aimee C. Jimenez is prosecuting it.
In United States v. Mayra De La Paz, Case No. 21-20474-CR-Bloom, a 69-year-old resident of Hialeah, Florida is charged by information with conspiracy to solicit and receive kickbacks in connection with a federal health care program. According to the information, De La Paz participated in a conspiracy to solicit and receive kickback payments for the referral of Medicare beneficiaries to a home health agency.
HHS-OIG Miami and FBI Miami investigated this case. Southern District of Florida Assistant U.S. Attorney Timothy J. Abraham is prosecuting it.
In U.S. v. Michael Marcelus Mogollon, Case No. 21-20432-CR-Moore, a 33-year-old from Miami, Florida is charged by information with conspiracy to commit health care and wire fraud. According to the information, Mogollon paid kickbacks to beneficiaries with Blue Cross Blue Shield health insurance in exchange for the patients allowing Miami clinics Quality Professional, Zion Medical, and Renewal to bill the insurance plans for medical benefits, items, and services, that were not medically necessary, not eligible for reimbursement, and not received by the beneficiaries. As a result of Mogollon’s participation in the conspiracy, the clinics billed Blue Cross Blue Shield approximately $678,800, and Blue Cross Blue Shield paid approximately $220,000 based on the false claims, says the information.
FBI Miami investigated this case. Southern District of Florida Assistant U.S. Attorney Lindsey Lazopoulos Friedman is prosecuting it.
In U.S. v. Jorge Luis Taboada, Case No. 21-20443-CR-Williams, a 52-year-old resident of Miami, Florida is charged by information with conspiracy to commit health care and wire fraud. According to the information, Taboada paid kickbacks to beneficiaries with Blue Cross Blue Shield and Aetna health insurance in exchange for the patients allowing United Medical of South Florida, d/b/a Sleep Study of South Florida, Inc. to bill the insurance plans for medical benefits, items, and services, that were not medically necessary, not eligible for reimbursement, and not received by the beneficiaries. As a result of Taboada’s participation in the conspiracy, the clinics billed Blue Cross Blue Shield and Aetna between $1,500,000 and $3,500,000, says the information.
FBI Miami investigated this case. Southern District of Florida Assistant U.S. Attorney Lindsey Lazopoulos Friedman is prosecuting it.
In United States of America vs. Patricia M. Cleary, a/k/a Patricia M. Cleary Syling, a/k/a Patricia M. Syling, a/k/a Patricia A. Cleary, Case No. 21-60262-CR-Singhal, a 51-year-old from Odessa, Florida is charged by indictment with one count of falsely representing a social security number and one count of aggravated identity theft.
According to the indictment, Cleary knowingly gave a false social security number to a Medicaid Managed Care Organization while applying for a job with the company. The social security number did not belong to Cleary. Instead, it belonged to a victim living in a different state. Cleary did this to hide her real identity from the company, says the indictment.
HHS-OIG Miami, State of Florida Medicaid Fraud Control Unit, SSA-OIG Miami, and FBI Miami investigated this case. Southern District of Florida Special Assistant U.S. Attorney Marc Canzio is prosecuting it.
In United States v. Julio Cesar Betancourt, Case No. 21-20425-CR-Moore, a 31-year-old resident of Hialeah Gardens, Florida is charged by information with conspiracy to commit money laundering. According to the information, Betancourt, as owner of owner of JD Solution USA, Inc., conspired to launder $363,139 in health care fraud proceeds between July 2019 and October 2019. These proceeds were related to a durable medical equipment company located in Miami that was committing health care fraud, says the information.
HHS-OIG Miami and FBI Miami investigated this case. Southern District of Florida Assistant U.S. Attorney Timothy J. Abraham is prosecuting it.
In United States v. Jorge Luis Lopez Pena, Case No. 21-CR-20466-Gayles, a 36-year-old from Miami, Florida is charged by information with conspiracy to commit money laundering. According to the information, Lopez Pena, as owner of Lopez Distributors, Inc., conspired to launder $185,671 in health care fraud proceeds between August 2019 and December 2019. These health care fraud proceeds were related to a durable medical equipment company located in Miami that was committing health care fraud, says the information.
HHS-OIG Miami and FBI Miami investigated this case. Southern District of Florida Assistant U.S. Attorney Timothy J. Abraham is prosecuting it.
In U.S. v. Angel Pimentel, Case No. 21-20420-CR-King, a 72-year-old from Miami, Florida, is charged by indictment with conspiracy to commit health care fraud and substantive counts of health care fraud. According to the indictment, Pimentel owned Maggie Pharmacy Discount, Inc. From about March 2015 to August 2019, Pimentel submitted $988,983 in claims to Medicare, which falsely and fraudulently represented that various health care benefits, primarily prescription drugs, were medically necessary, prescribed by a doctor, and had been provided by Maggie Pharmacy Discount, Inc. to Medicare beneficiaries. As a result of the false claims, Medicare prescription drug plan sponsors, through their pharmacy benefit managers, made payments funded by the Medicare Part D Program to the corporate bank accounts of Maggie Pharmacy Discount, Inc. of at least $988,983, says the indictment.
HHS-OIG Miami and FBI Miami investigated this case. Southern District of Florida Assistant U.S. Attorney Christopher J. Clark is prosecuting it.
Prior to the charges announced as part of today’s nationwide enforcement action and since its inception in March 2007, the Health Care Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,600 defendants who have collectively billed the Medicare program for approximately $23 billion. In addition to the criminal actions announced today, CMS, working in conjunction with HHS-OIG, announced 28 administrative actions to decrease the presence of fraudulent providers.
Telemedicine Fraud Cases
More than 43 criminal defendants in 11 judicial districts nationwide are charged in cases involving telemedicine: the use of telecommunications technology to provide health care services remotely. It is alleged that these telemedicine defendants filed over $1.1 billion in fraudulent claims.
The continued focus on prosecuting health care fraud schemes involving telemedicine reflects the success of the nationwide coordinating role of the Fraud Section’s National Rapid Response Strike Force, the creation of which was announced at the 2020 National Health Care Fraud and Opioid Takedown. The National Rapid Response Strike Force helped coordinate the prosecution of the telemedicine initiative, Sober Homes initiative, and COVID-19 cases that were announced today. The focus on telemedicine fraud also builds on the telemedicine component of last year’s national takedown and the impact of the 2019 “Operation Brace Yourself” Telemedicine and Durable Medical Equipment Takedown, which resulted in an estimated cost avoidance of more than $1.9 billion in the amount paid by Medicare for orthotic braces in the 20 months following that takedown.
Health Care Fraud Prosecutions in the Southern District of Florida for
Fiscal Year 2020-2021
The Southern District of Florida is a national leader in health care fraud prosecutions. So far, during the 2020-2021 Fiscal Year (from October 1, 2020 through today), a total of 196 defendants have been charged in the Southern District of Florida with health care fraud-related offenses. It is alleged that approximately $2.2 billion was billed by these defendants and that approximately $488 million was paid.
A complaint, information or indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt 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.
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National Health Care Fraud Enforcement Action Results in Charges Involving over $1.4 Billion in Alleged LossesRead the Press Release
The Department of Justice announced today criminal charges against 138 defendants, including 42 doctors, nurses, and other licensed medical professionals, in 31 federal districts across the United States for their alleged participation in various health care fraud schemes that resulted in approximately $1.4 billion in alleged losses.
The charges target approximately $1.1 billion in fraud committed using telemedicine (the use of telecommunications technology to provide health care services remotely), $29 million in COVID-19 health care fraud, $133 million connected to substance abuse treatment facilities, or “sober homes,” and $160 million connected to other health care fraud and illegal opioid distribution schemes across the country.
“This nationwide enforcement action demonstrates that the Criminal Division is at the forefront of the fight against health care fraud and opioid abuse by prosecuting those who have exploited health care benefit programs and their patients for personal gain,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “The charges announced today send a clear deterrent message and should leave no doubt about the department’s ongoing commitment to ensuring the safety of patients and the integrity of health care benefit programs, even amid a continued pandemic.”
Today’s enforcement actions were led and coordinated by the Health Care Fraud Unit of the Criminal Division’s Fraud Section, in conjunction with its Health Care Fraud and Appalachian Regional Prescription Opioid (ARPO) Strike Force program and its core partners, the U.S. Attorneys’ Offices, Department of Health and Human Services Office of Inspector General (HHS-OIG), FBI, and Drug Enforcement Administration (DEA), as part of the department’s ongoing efforts to combat the devastating effects of health care fraud and the opioid epidemic. The cases are being prosecuted by Health Care Fraud and ARPO Strike Force teams from the Criminal Division’s Fraud Section, in coordination with 31 U.S. Attorneys’ Offices nationwide, and agents from HHS-OIG, FBI, DEA, and other federal and state law enforcement agencies.
“Health care fraud targets the vulnerable in our communities, our health care system, and our basic expectation of competent, available care,” said Assistant Director Calvin Shivers of the FBI’s Criminal Investigative Division. “Despite a continued pandemic, the FBI and our law enforcement partners remain dedicated to safeguarding American taxpayers and businesses from the steep cost of health care fraud.”
“We have seen all too often criminals who engage in health care fraud — stealing from taxpayers while jeopardizing the health of Medicare and Medicaid beneficiaries,” said Deputy Inspector General for Investigations Gary L. Cantrell of HHS-OIG. “Today’s announcement should serve as another warning to individuals who may be considering engaging in such illicit activity: our agency and its law enforcement partners remain unrelenting in our commitment to rooting out fraud, holding bad actors accountable, and protecting the millions of beneficiaries who rely on federal health care programs.”
“Holding to account those responsible for health care fraud and diversion of prescription drugs is a priority for DEA,” said DEA Administrator Anne Milgram. “These fraudulent activities prey on our most vulnerable – those in pain, the substance-addicted, and even the homeless – those who are most susceptible to promises of relief, recovery, or a new start. Not only do these schemes profit from desperation, but they often leave their victims even deeper in addiction. We are grateful to our partners who stand with us to keep our communities safer and healthier through our collective efforts to prevent the misuse and over-prescribing of controlled medications.”
“Every dollar saved is critical to the sustainability of our Medicare programs and meeting the needs of seniors and people with disabilities,” said Centers for Medicare & Medicaid Services (CMS) Administrator Chiquita Brooks-LaSure. “CMS has taken actions against 28 providers on behalf of people with Medicare coverage and to protect the Medicare Trust Fund. Actions like this to combat fraud, waste and abuse in our federal programs would not be possible without the successful partnership of Centers for Medicare & Medicaid Services, the Department of Justice and the U.S. Department of Health and Human Services, Office of Inspector General.”
Telemedicine Fraud Cases
The largest amount of alleged fraud loss charged in connection with the cases announced today – over $1.1 billion in allegedly false and fraudulent claims submitted by more than 43 criminal defendants in 11 judicial districts – relates to schemes involving telemedicine. According to court documents, certain defendant telemedicine executives allegedly paid doctors and nurse practitioners to order unnecessary durable medical equipment, genetic and other diagnostic testing, and pain medications, either without any patient interaction or with only a brief telephonic conversation with patients they had never met or seen. Durable medical equipment companies, genetic testing laboratories, and pharmacies then purchased those orders in exchange for illegal kickbacks and bribes and submitted over $1.1 billion in false and fraudulent claims to Medicare and other government insurers. In some instances, medical professionals billed Medicare for sham telehealth consultations that did not occur as represented. The proceeds of the scheme were spent on luxury items, including vehicles, yachts, and real estate.
The continued focus on prosecuting health care fraud schemes involving telemedicine reflects the success of the nationwide coordinating role of the Fraud Section’s National Rapid Response Strike Force, the creation of which was announced at the 2020 National Health Care Fraud and Opioid Takedown. The National Rapid Response Strike Force helped coordinate the prosecution of the telemedicine initiative, Sober Homes initiative, and COVID-19 cases that were announced today. The focus on telemedicine fraud also builds on the telemedicine component of last year’s national takedown and the impact of the 2019 “Operation Brace Yourself” Telemedicine and Durable Medical Equipment Takedown, which resulted in an estimated cost avoidance of more than $1.9 billion in the amount paid by Medicare for orthotic braces in the 20 months following that takedown.
COVID-19 Fraud Cases
Nine defendants in the cases announced today are alleged to have engaged in various health care fraud schemes designed to exploit the COVID-19 pandemic, which resulted in the submission of over $29 million in false billings. In one type of scheme, defendants are alleged to have exploited policies that were put in place by the CMS to enable increased access to care during the COVID-19 pandemic, such as expanded telehealth regulations and rules. Defendants allegedly misused patient information to submit claims to Medicare for unrelated, medically unnecessary, and expensive laboratory tests, including cancer genetic testing.
The law enforcement action today also includes criminal charges against five defendants who allegedly engaged in the misuse of Provider Relief Fund monies. The Provider Relief Fund is part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a federal law enacted March 2020 designed to provide needed medical care to Americans suffering from COVID-19. The defendants allegedly used the moneys for their own personal expenses, including for gambling at a Las Vegas casino and paying a luxury car dealership.
The COVID-19 cases announced today build upon the success of the COVID-19 Health Care Fraud Takedown on May 26, a coordinated law enforcement action against 14 defendants in seven judicial districts for over $128 million in false billings. The law enforcement action and the cases announced today were brought in coordination with the Health Care Fraud Unit’s COVID-19 Interagency Working Group, which is chaired by the National Rapid Response Strike Force and organizes efforts to address illegal activity involving health care programs during the pandemic.
Sober Homes Cases
The sober homes cases are announced on the one-year anniversary of the first ever national sober homes initiative in 2020, which included charges against more than a dozen criminal defendants in connection with more than $845 million of allegedly false and fraudulent claims for tests and treatments for vulnerable patients seeking treatment for drug and/or alcohol addiction. The over $133 million in false and fraudulent claims that are additionally alleged in cases announced today reflect the continued effort by the National Rapid Response Strike Force and the Health Care Fraud Unit’s Los Angeles Strike Force, with the participation of the U.S. Attorneys’ Offices for the Central District of California and the Southern District of Florida, to prosecute those who participated in illegal kickback and bribery schemes involving the referral of patients to substance abuse treatment facilities; those patients could be subjected to medically unnecessary drug testing – often billing thousands of dollars for a single test – and therapy sessions that frequently were not provided, and which resulted in millions of dollars of false and fraudulent claims being submitted to private insurers.
Cases Involving the Illegal Prescription and/or Distribution of Opioids and Cases Involving Traditional Health Care Fraud Schemes
The cases announced today involving the illegal prescription and/or distribution of opioids involve 19 defendants, including several charges against medical professionals and others who prescribed over 12 million doses of opioids and other prescription narcotics, while submitting over $14 million in false billings. The cases that fall into more traditional categories of health care fraud include charges against over 60 defendants who allegedly participated in schemes to submit more than $145 million in false and fraudulent claims to Medicare, Medicaid, TRICARE, and private insurance companies for treatments that were medically unnecessary and often never provided.
Prior to the charges announced as part of today’s nationwide enforcement action and since its inception in March 2007, the Health Care Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,600 defendants who have collectively billed the Medicare program for approximately $23 billion. In addition to the criminal actions announced today, CMS, working in conjunction with HHS-OIG, announced 28 administrative actions to decrease the presence of fraudulent providers.
A complaint, information or indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
To view Assistant Attorney General Polite’s remarks, see https://www.justice.gov/opa/video/assistant-attorney-general-kenneth-polite-jr-delivers-remarks-health-care-enforcement.
National Health Care Fraud Enforcement Action Results in Charges Involving over $1.4 Billion in Alleged LossesRead the Press Release
PHOENIX, Ariz. – The Department of Justice announced today criminal charges against 138 defendants, including 42 doctors, nurses, and other licensed medical professionals, in 31 federal districts across the United States for their alleged participation in various healthcare fraud schemes that resulted in approximately $1.4 billion in alleged losses.
The enforcement action includes criminal charges against two defendants here in the District of Arizona, involving health care fraud, for over $1.2 million in losses.
Nationwide, the charges target approximately $1.1 billion in fraud committed using telemedicine (the use of telecommunications technology to provide health care services remotely), $29 million in COVID-19 health care fraud, $133 million connected to substance abuse treatment facilities, or “sober homes,” and $160 million connected to other health care fraud and illegal opioid distribution schemes across the country.
“Today’s announcement highlights law enforcement’s ongoing, nationwide commitment to eradicate health care fraud,” said Acting United States Attorney Glenn B. McCormick. “Anyone tempted by greed to cheat taxpayers, abuse our healthcare system, and place vulnerable people at risk through health care fraud will be discovered, disgorged of ill-gotten gains, face loss of licensure, and time in prison. We are committed to work alongside our partners in law enforcement to protect the integrity of our health care system.”
“This nationwide enforcement action demonstrates that the Criminal Division is at the forefront of the fight against health care fraud and opioid abuse by prosecuting those who have exploited health care benefit programs and their patients for personal gain,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “The charges announced today send a clear deterrent message and should leave no doubt about the department’s ongoing commitment to ensuring the safety of patients and the integrity of health care benefit programs, even amid a continued pandemic.”
Today’s enforcement actions were led and coordinated by the Health Care Fraud Unit of the Criminal Division’s Fraud Section, in conjunction with its Health Care Fraud and Appalachian Regional Prescription Opioid (ARPO) Strike Force program, and its core partners, the U.S. Attorneys’ Offices, the Department of Health and Human Services Office of Inspector General (HHS-OIG), FBI, and the Drug Enforcement Administration (DEA), as part of the department’s ongoing efforts to combat the devastating effects of health care fraud and the opioid epidemic. The District of Arizona worked with the Justice Department’s Criminal Division and agents from HHS-OIG, FBI, DEA, and other federal and state law enforcement agencies in the investigation and prosecution of these cases.
“Health care fraud targets the vulnerable in our communities, our health care system, and our basic expectation of competent, available care,” said Assistant Director Calvin Shivers of the FBI’s Criminal Investigative Division. “Despite a continued pandemic, the FBI and our law enforcement partners remain dedicated to safeguarding American taxpayers and businesses from the steep cost of health care fraud.”
“We have seen all too often criminals who engage in health care fraud — stealing from taxpayers while jeopardizing the health of Medicare and Medicaid beneficiaries,” said Deputy Inspector General for Investigations Gary L. Cantrell of HHS-OIG. “Today’s announcement should serve as another warning to individuals who may be considering engaging in such illicit activity: our agency and its law enforcement partners remain unrelenting in our commitment to rooting out fraud, holding bad actors accountable, and protecting the millions of beneficiaries who rely on federal health care programs.”
“Holding to account those responsible for health care fraud and diversion of prescription drugs is a priority for DEA,” said DEA Administrator Anne Milgram. “These fraudulent activities prey on our most vulnerable – those in pain, the substance-addicted, and even the homeless – those who are most susceptible to promises of relief, recovery, or a new start. Not only do these schemes profit from desperation, but they often leave their victims even deeper in addiction. We are grateful to our partners who stand with us to keep our communities safer and healthier through our collective efforts to prevent the misuse and over-prescribing of controlled medications.”
“Every dollar saved is critical to the sustainability of our Medicare programs and meeting the needs of seniors and people with disabilities,” said Centers for Medicare & Medicaid Services (CMS) Administrator Chiquita Brooks-LaSure. “CMS has taken actions against 28 providers on behalf of people with Medicare coverage and to protect the Medicare Trust Fund. Actions like this to combat fraud, waste and abuse in our federal programs would not be possible without the successful partnership of Centers for Medicare & Medicaid Services, the Department of Justice and the U.S. Department of Health and Human Services, Office of Inspector General.”
Telemedicine Fraud CasesThe largest amount of alleged fraud loss charged in connection with the cases announced today – over $1.1 billion in allegedly false and fraudulent claims submitted by more than 43 criminal defendants in 11 judicial districts nationwide – relates to schemes involving telemedicine.
The continued focus on prosecuting health care fraud schemes involving telemedicine reflects the success of the nationwide coordinating role of the Fraud Section’s National Rapid Response Strike Force, the creation of which was announced at the 2020 National Health Care Fraud and Opioid Takedown. The National Rapid Response Strike Force helped coordinate the prosecution of the telemedicine initiative, Sober Homes initiative, and COVID-19 cases that were announced today. The focus on telemedicine fraud also builds on the telemedicine component of last year’s national takedown and the impact of the 2019 “Operation Brace Yourself” Telemedicine and Durable Medical Equipment Takedown, which resulted in an estimated cost avoidance of more than $1.9 billion in the amount paid by Medicare for orthotic braces in the 20 months following that takedown.
COVID-19 Fraud Cases
Nine defendants in the cases announced today are alleged to have engaged in various health care fraud schemes designed to exploit the COVID-19 pandemic, which resulted in the submission of over $29 million in false billings.
The law enforcement action today also includes criminal charges against five defendants across the country who allegedly engaged in the misuse of Provider Relief Fund monies. The Provider Relief Fund is part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a federal law enacted March 2020 designed to provide needed medical care to Americans suffering from COVID-19.
The COVID-19 cases announced today build upon the success of the COVID-19 Health Care Fraud Takedown on May 26, a coordinated law enforcement action against 14 defendants in seven judicial districts for over $128 million in false billings. The law enforcement action and the cases announced today were brought in coordination with the Health Care Fraud Unit’s COVID-19 Interagency Working Group, which is chaired by the National Rapid Response Strike Force and organizes efforts to address illegal activity involving health care programs during the pandemic.
Sober Homes Cases
The sober homes cases are announced on the one-year anniversary of the first ever national sober homes initiative in 2020, which included charges against more than a dozen criminal defendants in connection with more than $845 million of allegedly false and fraudulent claims for tests and treatments for vulnerable patients seeking treatment for drug and/or alcohol addiction. The over $133 million in false and fraudulent claims that are additionally alleged in cases announced today reflect the continued effort by the National Rapid Response Strike Force and the Health Care Fraud Unit’s Los Angeles Strike Force, with the participation of the U.S. Attorney’s Offices for the Central District of California and the Southern District of Florida, to prosecute those who participated in illegal kickback and bribery schemes involving the referral of patients to substance abuse treatment facilities; those patients could be subjected to medically unnecessary drug testing – often billing thousands of dollars for a single test – and therapy sessions that frequently were not provided, and which resulted in millions of dollars of false and fraudulent claims being submitted to private insurers.
Cases Involving the Illegal Prescription and/or Distribution of Opioids and Cases Involving Traditional Health Care Fraud Schemes
The cases announced today involving the illegal prescription and/or distribution of opioids involve 19 defendants, including several charges against medical professionals and others who prescribed over 12 million doses of opioids and other prescription narcotics, while submitting over $14 million in false billings. The cases that fall into more traditional categories of health care fraud include charges against over 60 defendants who allegedly participated in schemes to submit more than $145 million in false and fraudulent claims to Medicare, Medicaid, TRICARE, and private insurance companies for treatments that were medically unnecessary and often never provided.
In the District of Arizona, Dale and Zoila Henson, both of Chandler, Arizona, were indicted earlier this year on 58 counts related to fraudulently billing the Arizona Healthcare Cost Containment System and for fraud involving receipt of COVID-19 Economic Injury Disaster Loan Funds. The couple is alleged to have submitted $1.2 million in fraudulent bills to AHCCS over a 9-month period in 2019-2020. They Hensons are also alleged to have lied in their applications for COVID-19 pandemic-related loans and used the proceeds of the loan funds for personal expenses, such as the purchase of a residence in Mexico.
More details are available in the District’s prior press release: https://www.justice.gov/usao-az/pr/chandler-couple-arrested-ahcccs-fraud-and-pandemic-loan-fraud
Prior to the charges announced as part of today’s nationwide enforcement action and since its inception in March 2007, the Health Care Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,600 defendants who have collectively billed the Medicare program for approximately $23 billion. In addition to the criminal actions announced today, CMS, working in conjunction with HHS-OIG, announced 28 administrative actions to decrease the presence of fraudulent providers.
A complaint, information or indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
To view Assistant Attorney General Polite’s remarks, see: https://www.justice.gov/opa/video/assistant-attorney-general-kenneth-polite-jr-delivers-remarks-health-care-enforcement.
RELEASE NUMBER: 2021-061_Health Care Fraud NEA# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.National Health Care Fraud Enforcement Action Results in Charges Involving over $1.4 Billion in Alleged LossesRead the Press Release
For Further Information, Contact:
Assistant U. S. Attorney Valerie Chu (619) 546-6750
SAN DIEGO – A strategically coordinated, six-week nationwide federal law enforcement action has resulted in criminal charges against 138 defendants, including 42 doctors, nurses, and other licensed medical professionals, in 31 federal districts across the United States for their alleged participation in various health care fraud schemes that resulted in approximately $1.4 billion in alleged losses.
The enforcement action includes criminal charges against four defendants here in the Southern District of California, involving more than $129 million in intended losses.
Nationwide, this action includes more than $1.1 billion in fraud committed using telemedicine, more than $29 million in COVID-19 health care fraud, more than $133 million connected to substance abuse treatment facilities, or “sober homes,” and more than $160 million connected to other health care fraud and illegal opioid distribution schemes across the country
"Federal dollars devoted to care for the sick and suffering in our community should not be diverted to line the pockets of greedy opportunists,” said Acting U.S. Attorney Randy Grossman. “Now more than ever, we recognize the importance of our health care system and the important federal programs that care for elderly and Americans with disabilities."
“This nationwide enforcement action demonstrates that the Criminal Division is at the forefront of the fight against health care fraud and opioid abuse by prosecuting those who have exploited health care benefit programs and their patients for personal gain,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “The coordinated law enforcement actions announced today send a clear deterrent message and should leave no doubt about the department’s ongoing commitment to ensuring the safety of patients and the integrity of health care benefit programs, even amid a continued pandemic. I am proud of the hard work and dedication of those throughout law enforcement who are working to safeguard our health care system and our nation.”
Today’s enforcement actions were led and coordinated by the Health Care Fraud Unit of the Criminal Division’s Fraud Section, in conjunction with its Health Care Fraud and Appalachian Regional Prescription Opioid (ARPO) Strike Force program, and its core partners, the U.S. Attorneys’ Offices, the Department of Health and Human Services Office of Inspector General (HHS-OIG), FBI, and the Drug Enforcement Administration (DEA), as part of the department’s ongoing efforts to combat the devastating effects of health care fraud and the opioid epidemic. The Southern District of California worked with the Justice Department’s Criminal Division and agents from HHS-OIG, FBI, and DEA in the investigation and prosecution of these cases.
Telemedicine Fraud Cases
The largest amount of alleged fraud loss charged in connection with the cases announced today – over $1.1 billion in allegedly false and fraudulent claims submitted by more than 50 criminal defendants in 11 judicial districts nationwide – relates to schemes involving telemedicine: the use of telecommunications technology to provide health care services remotely.
The continued focus on prosecuting health care fraud schemes involving telemedicine reflects the success of the nationwide coordinating role played by the Fraud Section’s National Rapid Response Strike Force, the creation of which was announced at the 2020 National Health Care Fraud and Opioid Takedown. The National Rapid Response Strike Force helped coordinate the prosecution of the telemedicine initiative, Sober Homes initiative, and COVID-19 cases that were announced today. The focus on telemedicine fraud also builds on the telemedicine component of last year’s national takedown and the impact of the 2019 “Operation Brace Yourself” Telemedicine and Durable Medical Equipment Takedown, which resulted in an estimated cost avoidance of more than $1.5 billion in the amount paid by Medicare for orthotic braces in the 17 months following that takedown.
COVID-19 Fraud Cases
Nine defendants in the cases announced today are alleged to have engaged in various health care fraud schemes designed to exploit the COVID-19 pandemic, which resulted in the submission of over $29 million in false billings.
In the Southern District of California, Roselia Kubeck and Rosario Gonzalez pleaded guilty to having approached residents of senior complexes in El Centro and Calexico, California, who were Medicare beneficiaries, and offering COVID-19 screening tests for the residents. The defendants knew at the time that the tests would not actually test for COVID-19 but would be a general respiratory pathogens screening panel that tested for the presence of several kinds of respiratory pathogens. They also took urine samples from the Medicare beneficiaries without explaining that the urine samples were not necessary to conduct a COVID-19 test. The defendants then completed requisition forms for tests on the nasal swabs and urine samples, and inaccurately indicated on the forms that the beneficiaries needed the respiratory tests because they were suffering from acute respiratory infections and needed urine tests because the beneficiaries were long-term users of opiates or had urinary tract infections. The laboratories that performed the tests subsequently submitted inaccurate and medically unnecessary claims to Medicare based on the inaccurate diagnoses that the defendants put on the requisition forms.
The law enforcement action today also includes criminal charges against five defendants across the country related to the misuse of Provider Relief Fund monies. The Provider Relief Fund is part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a federal law enacted March 2020 designed to provide needed medical care to Americans suffering from COVID-19.
The COVID-19 cases announced today build upon the success of the COVID-19 Health Care Fraud Takedown on May 26, a coordinated law enforcement action against 14 defendants in seven judicial districts for over $128 million in false billings. The law enforcement action and the cases announced today were brought in coordination with the Health Care Fraud Unit’s COVID-19 Interagency Working Group, which is chaired by the National Rapid Response Strike Force and organizes efforts to address illegal activity involving health care programs during the pandemic.
Sober Homes Cases
The sober homes cases are announced on the one-year anniversary of the first ever national sober homes initiative in 2020, which included charges against more than a dozen criminal defendants in connection with more than $845 million of allegedly false and fraudulent claims for tests and treatments for vulnerable patients seeking treatment for drug and/or alcohol addiction. The over $133 million in false and fraudulent claims that are additionally alleged in cases announced today reflect the continued effort by the National Rapid Response Strike Force and the Health Care Fraud Unit’s Los Angeles Strike Force, with the participation of the U.S. Attorney’s Offices for the Central District of California and the Southern District of Florida, to prosecute those who participated in illegal kickback and bribery schemes involving the referral of patients to substance abuse treatment facilities; those patients could be subjected to medically unnecessary drug testing – often billing thousands of dollars for a single test – and therapy sessions that frequently were not provided, and which resulted in millions of dollars of false and fraudulent claims being submitted to private insurers.
Cases Involving the Illegal Prescription and/or Distribution of Opioids and Cases Involving Traditional Health Care Fraud Schemes
The cases announced today involving the illegal prescription and/or distribution of opioids involve more than 13 defendants, including several charges against medical professionals and others who prescribed over seven million doses of opioids and other prescription narcotics. The cases that fall into more traditional categories of health care fraud include charges against 67 defendants who allegedly participated in schemes to submit more than $160 million in false and fraudulent claims to Medicare, Medicaid, TRICARE, and private insurance companies for treatments that were medically unnecessary and often never provided.
In the Southern District of California, Ronald Charles Green Jr. and Melinda Elizabeth Green were charged with conspiring to defraud TRICARE and Medicare out of more than $129 million. In connection with a compounding pharmacy fraud, the defendants allegedly engaged in a scheme involving the submission of false and fraudulent claims to TRICARE for expensive and medically unnecessary pain creams, scar creams and multi-vitamins, which were billed through compound pharmacies. Thereafter, the defendants allegedly launched multiple durable medical equipment companies, and carried out a scheme to defraud Medicare through the submission of false and fraudulent claims for expensive durable medical equipment which were induced through a system of illegal kickbacks. Out of the $129 million in claims, Medicare paid the defendants’ companies more than $69 million.
Prior to the charges announced as part of today’s nationwide enforcement action and since its inception in March 2007, the Health Care Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,600 defendants who have collectively billed the Medicare program for approximately $23 billion. In addition to the criminal actions announced today, CMS, working in conjunction with HHS-OIG, announced more than 15 payment suspensions to decrease the presence of fraudulent providers.
To view Assistant Attorney General Polite’s remarks, see https://www.justice.gov/opa/video/assistant-attorney-general-kenneth-polite-jr-delivers-remarks-health-care-enforcement.
The Southern District of California cases discussed herein were prosecuted by Assistant U.S. Attorneys Valerie Chu and Kevin Larsen and investigated by the Federal Bureau of Investigation, the Office of Inspector General for the United States Department of Health and Human Services, and the Defense Criminal Investigative Service. Grossman thanked the prosecutors and law enforcement agencies for working hard to achieve justice in these matters.
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.
*A complaint, information or indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
National Health Care Fraud Enforcement Action Results in Charges Involving over $1.4 Billion in Alleged LossesRead the Press Release
WASHINGTON – The Department of Justice announced today criminal charges against 138 defendants, including 42 doctors, nurses, and other licensed medical professionals, in 31 federal districts across the United States for their alleged participation in various healthcare fraud schemes that resulted in approximately $1.4 billion in alleged losses.
The enforcement action includes criminal charges against four defendants in the Eastern District of Texas involving telemedicine, alleging over $2.9 million in losses.
Nationwide, the charges target approximately $1.1 billion in fraud committed using telemedicine (the use of telecommunications technology to provide health care services remotely), $29 million in COVID-19 health care fraud, $133 million connected to substance abuse treatment facilities, or “sober homes,” and $160 million connected to other health care fraud and illegal opioid distribution schemes across the country.
“While the United States government works to ensure the physical health of the American people through numerous federal programs, the Department of Justice and the Eastern District of Texas work tirelessly to safeguard the financial health of these programs against theft and fraud,” said Acting U.S. Attorney Nicholas J. Ganjei. “The present enforcement action is not only a decisive blow against fraud and malfeasance in these specific cases, but also serves as a reminder to would-be fraudsters that the federal government is keeping a watchful eye on the use and abuse of taxpayer-funded health care dollars.”
“This nationwide enforcement action demonstrates that the Criminal Division is at the forefront of the fight against health care fraud and opioid abuse by prosecuting those who have exploited health care benefit programs and their patients for personal gain,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “The charges announced today send a clear deterrent message and should leave no doubt about the department’s ongoing commitment to ensuring the safety of patients and the integrity of health care benefit programs, even amid a continued pandemic.”
Today’s enforcement actions were led and coordinated by the Health Care Fraud Unit of the Criminal Division’s Fraud Section, in conjunction with its Health Care Fraud and Appalachian Regional Prescription Opioid (ARPO) Strike Force program, and its core partners, the U.S. Attorneys’ Offices, the Department of Health and Human Services Office of Inspector General (HHS-OIG), FBI, and the Drug Enforcement Administration (DEA), as part of the department’s ongoing efforts to combat the devastating effects of health care fraud and the opioid epidemic. The Eastern District of Texas worked with the Justice Department’s Criminal Division and agents from HHS-OIG, FBI, DEA, and other federal and state law enforcement agencies in the investigation and prosecution of these cases.
“Health care fraud targets the vulnerable in our communities, our health care system, and our basic expectation of competent, available care,” said Assistant Director Calvin Shivers of the FBI’s Criminal Investigative Division. “Despite a continued pandemic, the FBI and our law enforcement partners remain dedicated to safeguarding American taxpayers and businesses from the steep cost of health care fraud.”
“We have seen all too often criminals who engage in health care fraud — stealing from taxpayers while jeopardizing the health of Medicare and Medicaid beneficiaries,” said Deputy Inspector General for Investigations Gary L. Cantrell of HHS-OIG. “Today’s announcement should serve as another warning to individuals who may be considering engaging in such illicit activity: our agency and its law enforcement partners remain unrelenting in our commitment to rooting out fraud, holding bad actors accountable, and protecting the millions of beneficiaries who rely on federal health care programs.”
“Holding to account those responsible for health care fraud and diversion of prescription drugs is a priority for DEA,” said DEA Administrator Anne Milgram. “These fraudulent activities prey on our most vulnerable – those in pain, the substance-addicted, and even the homeless – those who are most susceptible to promises of relief, recovery, or a new start. Not only do these schemes profit from desperation, but they often leave their victims even deeper in addiction. We are grateful to our partners who stand with us to keep our communities safer and healthier through our collective efforts to prevent the misuse and over-prescribing of controlled medications.”
“Every dollar saved is critical to the sustainability of our Medicare programs and meeting the needs of seniors and people with disabilities,” said Centers for Medicare & Medicaid Services (CMS) Administrator Chiquita Brooks-LaSure. “CMS has taken actions against 28 providers on behalf of people with Medicare coverage and to protect the Medicare Trust Fund. Actions like this to combat fraud, waste and abuse in our federal programs would not be possible without the successful partnership of Centers for Medicare & Medicaid Services, the Department of Justice and the U.S. Department of Health and Human Services, Office of Inspector General.”
Telemedicine Fraud Cases
The largest amount of alleged fraud loss charged in connection with the cases announced today – over $1.1 billion in allegedly false and fraudulent claims submitted by more than 43 criminal defendants in 11 judicial districts nationwide – relates to schemes involving telemedicine. In the Eastern District of Texas, four defendants were charged with conspiracy to commit illegal remunerations and with substantive counts of illegal remunerations. The conspirators obtained patient information, including protected health information and personally identifiable information, and used the information to create fictitious physicians’ orders. The conspirators then sold the physicians’ orders to each other and to other durable medical equipment providers. Within approximately eight months, the defendants collectively obtained more than $2.9 million in proceeds from the criminal scheme.
The continued focus on prosecuting health care fraud schemes involving telemedicine reflects the success of the nationwide coordinating role of the Fraud Section’s National Rapid Response Strike Force, the creation of which was announced at the 2020 National Health Care Fraud and Opioid Takedown. The National Rapid Response Strike Force helped coordinate the prosecution of the telemedicine initiative, Sober Homes initiative, and COVID-19 cases that were announced today. The focus on telemedicine fraud also builds on the telemedicine component of last year’s national takedown and the impact of the 2019 “Operation Brace Yourself” Telemedicine and Durable Medical Equipment Takedown, which resulted in an estimated cost avoidance of more than $1.9 billion in the amount paid by Medicare for orthotic braces in the 20 months following that takedown.
COVID-19 Fraud Cases
Nine defendants in the cases announced today are alleged to have engaged in various health care fraud schemes designed to exploit the COVID-19 pandemic, which resulted in the submission of over $29 million in false billings.
The law enforcement action today also includes criminal charges against five defendants across the country who allegedly engaged in the misuse of Provider Relief Fund monies. The Provider Relief Fund is part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a federal law enacted March 2020 designed to provide needed medical care to Americans suffering from COVID-19.
The COVID-19 cases announced today build upon the success of the COVID-19 Health Care Fraud Takedown on May 26, a coordinated law enforcement action against 14 defendants in seven judicial districts for over $128 million in false billings. The law enforcement action and the cases announced today were brought in coordination with the Health Care Fraud Unit’s COVID-19 Interagency Working Group, which is chaired by the National Rapid Response Strike Force and organizes efforts to address illegal activity involving health care programs during the pandemic.
Sober Homes Cases
The sober homes cases are announced on the one-year anniversary of the first ever national sober homes initiative in 2020, which included charges against more than a dozen criminal defendants in connection with more than $845 million of allegedly false and fraudulent claims for tests and treatments for vulnerable patients seeking treatment for drug and/or alcohol addiction. The over $133 million in false and fraudulent claims that are additionally alleged in cases announced today reflect the continued effort by the National Rapid Response Strike Force and the Health Care Fraud Unit’s Los Angeles Strike Force, with the participation of the U.S. Attorney’s Offices for the Central District of California and the Southern District of Florida, to prosecute those who participated in illegal kickback and bribery schemes involving the referral of patients to substance abuse treatment facilities; those patients could be subjected to medically unnecessary drug testing – often billing thousands of dollars for a single test – and therapy sessions that frequently were not provided, and which resulted in millions of dollars of false and fraudulent claims being submitted to private insurers.
Cases Involving the Illegal Prescription and/or Distribution of Opioids and Cases Involving Traditional Health Care Fraud Schemes
]The cases announced today involving the illegal prescription and/or distribution of opioids involve 19 defendants, including several charges against medical professionals and others who prescribed over 12 million doses of opioids and other prescription narcotics, while submitting over $14 million in false billings. The cases that fall into more traditional categories of health care fraud include charges against over 60 defendants who allegedly participated in schemes to submit more than $145 million in false and fraudulent claims to Medicare, Medicaid, TRICARE, and private insurance companies for treatments that were medically unnecessary and often never provided.
Prior to the charges announced as part of today’s nationwide enforcement action and since its inception in March 2007, the Health Care Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,600 defendants who have collectively billed the Medicare program for approximately $23 billion. In addition to the criminal actions announced today, CMS, working in conjunction with HHS-OIG, announced 28 administrative actions to decrease the presence of fraudulent providers.
A complaint, information or indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
To view Assistant Attorney General Polite’s remarks, see
https://www.justice.gov/opa/video/assistant-attorney-general-kenneth-polite-jr-delivers-remarks-health-care-enforcement.
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Member of Drug Trafficking Conspiracy Receives SentenceRead the Press Release
SHREVEPORT, La. - Acting United States Attorney Alexander C. Van Hook announced that Michael Shane Haynes, IV, 43, of Bossier City, Louisiana, has been sentenced by Chief United States District Judge S. Maurice Hicks, Jr. to 42 months in prison, followed by 4 years of supervised release for conspiracy to distribute and possess with intent to distribute marijuana.
Haynes was indicted in October 2020, along with eight other defendants in connection with a long-term investigation into the illegal drug trafficking activities in the Shreveport/Bossier City area. This investigation, dubbed Operation Hustle City, was conducted by the U.S. Drug Enforcement Administration’s (DEA) Organized Crime Drug Enforcement Task Force (OCDETF) which is comprised of federal, state, and local law enforcement officers working jointly on drug trafficking cases in the Western District of Louisiana.
During their investigation, law enforcement agents learned that Haynes was a known high-level dealer of marijuana in the Shreveport/Bossier City area and dealt marijuana from his place of business on West 62nd Street in Shreveport and his residence in Bossier City. In July 2018, agents were able to intercept phone calls and text messages between Haynes and a co-defendant wherein they discussed Haynes having marijuana. Through their investigation, agents observed Haynes selling marijuana on three different occasions to individuals, in the amounts of 441.9 grams, 230 grams, and 444 grams. Haynes was charged and pleaded guilty May 6, 2021.
One of his co-defendants, Danny Glen Roy Welch, also pleaded guilty and was sentenced September 3, 2021 to 37 months in prison, followed by 3 years of supervised release. The remaining seven defendants are Shamariay Duntae Locke, Jeremy Rechard Francis, Rico DeAngelo Lawrence, Robert Lynn Baulkman, Frank Gilford Joshua, IV, Keynon Letray Frazier, and Garrett Oshann Sudds and are set to go to trial on December 13, 2021.
The DEA, Shreveport Police Department and Caddo Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Brandon B. Brown is prosecuting the case.
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Maryland Couple Indicted in $20 Million Insurance Fraud SchemeRead the Press Release
A federal district court in Baltimore, Maryland, unsealed an indictment today charging a Maryland couple with conspiracy to commit insurance fraud and related charges for money laundering, filing false tax returns and identity theft.
The indictment charges that from 1996 to the present, James and Maureen Wilson, of Owings Mills, allegedly conspired to defraud insurance companies by obtaining over 30 life insurance policies for applicants by mispresenting their health, wealth and existing life insurance coverage. The total death benefits from these policies allegedly was approximately $20 million. The indictment also charges that the Wilsons conspired to defraud individual investors to obtain funds that the Wilsons used to pay premiums on fraudulently-obtained life insurance policies. To conceal the fraud, the Wilsons allegedly transferred the proceeds of the fraud through multiple bank accounts, including accounts in the name of trusts. The Wilsons allegedly did not report approximately $5.7 million and $2 million that they received in life insurance proceeds on their 2018 and 2019 individual tax returns.
James Wilson is scheduled for his initial court appearance today before U.S. Magistrate Judge A. David Copperthite of the U.S. District Court for the District of Maryland. Maureen Wilson’s initial appearance is scheduled for Sept. 20 before U.S. Magistrate Judge Beth P. Gesner of the U.S. District Court for the District of Maryland.
If convicted, the Wilsons faces a maximum penalty of 20 years in prison for each count of conspiracy, wire fraud, mail fraud, and money laundering; and three years in prison for each count of filing a false tax return. James Wilson faces two years in prison for each count of aggravated identity theft and Maureen Wilson faces 10 years in prison for transactional money laundering. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division, Acting U.S. Attorney Jonathan Lenzner of the U.S. Attorney’s office for the District of Maryland, and Acting Special Agent in Charge Darrell J. Waldon of IRS-Criminal Investigation, Washington, D.C. Field Office, made the announcement.
IRS-Criminal Investigation is investigating the case, with assistance from the Maryland Insurance Administration and the Maryland Office of the Attorney General.
Trial Attorney Shawn Noud of the Justice Department’s Tax Division and Assistant U.S. Attorneys Matthew Phelps and Stephanie Williamson of the U.S. Attorney’s Office for the District of Maryland are prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Lynn Man Sentenced for Being a Felon in Possession of AmmunitionRead the Press Release
BOSTON – A Lynn man was sentenced today for illegally possessing ammunition as a previously convicted felon.
Paul Votano, 38, was sentenced by U.S. Senior District Court Judge Mark L. Wolf to 78 months in prison and three years of supervised release. On May 13, 2021, Votano pleaded guilty to one count of being a felon in possession of ammunition.
In September 2019, Votano arranged the sale of a Romarm Cuguir, AK-47 rifle and over 300 rounds ammunition with a cooperating witness. Following the sale, agents observed Votano carry the ammunition and store it in a vehicle. Due to prior felony convictions, Votano is prohibited from possessing firearms and ammunition.
Acting United States Attorney Nathaniel R. Mendell and James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division made the announcement. Assistant U.S. Attorney Philip A. Mallard of Mendell’s Organized Crime and Gang Unit prosecuted the case.
This prosecution is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The 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 law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Las Vegas Man Indicted for Distributing Methamphetamine While on ParoleRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man made his initial court appearance Thursday for allegedly distributing methamphetamine while he was on parole for a previous offense.
Nathaniel Royal, aka “Champ,” 50, is charged with two counts of distribution of a controlled substance. U.S. Magistrate Judge Elayna J. Youchah scheduled a jury trial for November 15, 2021 before U.S. District Judge James C. Mahan.
As alleged in the indictment, on February 3 and 7, 2021, Royal distributed 50 grams or more of methamphetamine, a Schedule II controlled substance. At the time, Royal was on parole for Robbery with a Dangerous Weapon out of California.
If convicted, Royal faces a statutory minimum penalty of ten years in prison and a statutory maximum penalty of life imprisonment and a $10,000,000 fine.
Acting U.S. Attorney Christopher Chiou for the District of Nevada and Assistant Special Agent in Charge Daniel Neill for the DEA made the announcement.
This case was investigated by the DEA and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Kimberly Sokolich is prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
If you suspect a possible violation of controlled substance laws and regulations, such as the growing, manufacture, distribution, or trafficking of controlled substances, please promptly report the alleged violation to the DEA at https://www.dea.gov/submit-tip.
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Key figure in Laurens County drug trafficking conspiracy sentenced to federal prisonRead the Press Release
DUBLIN, GA: A key figure in a Laurens County-area drug trafficking conspiracy has been sentenced to more than 20 years in federal prison.
Rodney Jarrod Denson, a/k/a “RD,” 45, of Dublin, Ga., was sentenced to 262 months in prison after pleading guilty Conspiracy to Possess with Intent to Distribute and to Distribute Methamphetamine, Cocaine, Crack Cocaine, and Marijuana, and Conspiracy to Possess Firearms in Furtherance of a Drug-Trafficking Crime, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. U.S. District Court Judge Dudley H. Bowen also ordered Denson to pay a fine of $2,000 and to serve three years of supervised release after completion of his prison term. There is no parole in the federal system.
“This defendant, along with his co-conspirators, was a major distributor of illegal narcotics in the Laurens County area until our law enforcement partners infiltrated and dismantled their illicit operation,” said Acting U.S. Attorney Estes. “This sentence sends a clear message that we will be relentless in pursuing and removing those who spread poison in our communities.”
“By slamming the prison door on these illegal drug traffickers, we hope it sends a message to the citizens of Laurens County that we mean business in our pursuit of those who threaten the safety of our community,” said Larry Dean, Sheriff of Laurens County. “We appreciate the hard work and dedication of our local, state, and federal law enforcement partners in our fight to remove violent, drug-dealing criminals from our neighborhoods.”
Dubbed Operation “The Hole,” the investigation targeted a drug trafficking ring moving large quantities of methamphetamine, cocaine, crack cocaine and marijuana into the Laurens County area as early as 2013. Coordinated by agents of the U.S. Drug Enforcement Administration, along with the Laurens County Sheriff’s Office and the Ocmulgee Drug Task Force, the investigation in 2018 identified a shack in Montrose, Ga., called “The Hole” as the “trap house,” or central distribution site, complete with a retail-like service counter for drug transactions, along with other Dublin-area locations for drug distribution.
During the execution of multiple federal search warrants, agents seized significant quantities of narcotics, including pounds of methamphetamine, cocaine and marijuana; 24 firearms, including assault-style guns with high-capacity magazines; nearly $37,000 in cash, gold, and silver with an estimated value of $90,000; devices for pressing bricks of cocaine; pill presses; a stolen vehicle; and two stolen generators with lights. Additional drugs, firearms, and cash also were discovered during arrests of the defendants.
Denson, a member of a street gang with a long record of felony convictions, was indicted on the federal charges in January 2020 along with seven codefendants – six of whom, like Denson, have since pled guilty to felony charges. Four of them have been sentenced to prison terms of up to 121 months, while two others await sentencing.
The final co-defendant, Quaveris Leshaun Mims, a/k/a “Strong,” 49, of Dublin, Ga., is awaiting trial and is presumed innocent unless and until proven guilty.
“Methamphetamine, cocaine, crack cocaine and marijuana, are dangerous drugs that pose a clear and present danger to the community,” said the Special Agent in Charge of the DEA Atlanta Field Division Robert J. Murphy. “Because of the collective law enforcement effort, this poly-drug trafficker received a well-deserved prison sentence. This case is a shining example of what can be achieved when DEA and its law enforcement partners present a united front to protect our communities from the scourge of drug abuse.”
“Laurens County residents can take comfort in this sentence because it will keep this predatory gang member off their streets,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Denson and his co-conspirators were a plague in the community with their drugs, guns and violence that threatened the safety of the citizens who live there. Our commitment to dismantling these predatory gangs will never end.”
Operation “The Hole” was investigated under the 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.
Agencies involved in the investigation include the DEA; the Bureau of Alcohol, Firearms, Tobacco and Explosives (ATF); the FBI; the U.S. Postal Inspection Service; the Laurens County Sheriff’s Office; Ocmulgee Drug Task Force; the Twiggs County Sheriff’s Office; the Wilkinson County Sheriff’s Office; the Baldwin County Sheriff’s Office; the Washington County Sheriff’s Office; the Johnson County Sheriff’s Office; and the Warner Robins Police Department, and prosecuted for the United States by Assistant U.S. Attorneys Patricia G. Rhodes and Henry W. Syms Jr.