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Tuesday 3 August 2021
Couple Sentenced for Feigning Blindness for VA & Social Security BenefitsRead the Press Release
WICHITA, KAN. – A husband and wife from Hutchinson, Kansas, have been sentenced for deceiving the federal government about a medical condition to receive benefit payments. Addison Lewis, 41, and Brandi Lewis, 38, each received five years of probation after pleading guilty to one count of Theft of Government Property.
From 2013 to 2018, Addison Lewis misrepresented himself as having cortical visual blindness to the Department of Veterans Affairs (VA). In turn, the VA increased his benefits amount. Addison Lewis admitted misleading the VA by exaggerating symptoms and impairment attributed to cortical visual blindness. Brandi Lewis intentionally provided inaccurate information to the VA to support her husband’s false claim.The court ordered the Lewises to pay $111,510 in restitution to the Social Security Administration and $131,972 in restitution to the VA.
The Department of Veterans Affairs, Office of Inspector General (VA-OIG) Criminal Investigations Division and the Social Security Administration, Office of Inspector General investigated the case.
Assistant U.S. Attorney Mona Furst prosecuted the case.
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Convicted Felon Sentenced to 8 Years in Prison for Illegal Firearm PossessionRead the Press Release
BIRMINGHAM, Ala. – A federal judge today sentenced a convicted felon for illegally possessing a firearm, announced U.S. Attorney Prim F. Escalona and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Mickey French.
U.S. District Court Judge Abdul K. Kallon sentenced Reginald Lamar Bonner, 43, of Birmingham, to 96 months in prison on one count of possession of a firearm by a prohibited person. Bonner pleaded guilty in April 2021 to unlawfully possessing a Springfield .45 caliber pistol on April 24, 2020. Bonner is prohibited from having a firearm because of prior felony convictions. In January 2017, Bonner pleaded guilty to being a felon in possession of a firearm and possession of a stolen firearm and was still serving his sentence on that case when he committed the current offense.
Judge Kallon ordered the 96-month sentence to be served consecutively to a 24-month federal revocation sentence on the earlier case.
“Prosecuting those who illegally possess firearms is part of our strategy for reducing violent crime,” said U.S. Attorney Escalona. “We are grateful to the Birmingham Police Department and ATF for their efforts to take guns off the street and make our communities safer.”
“The partnerships with the public safety departments and the U.S. Attorney’s Office were crucial in reducing the potential for violent crime in this case,” Special Agent in Charge Mickey French stated.
The ATF investigated the case along with the Birmingham Police Department. Assistant U.S. Attorney Kristy Peoples prosecuted the case.
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.
Butler Man Sentenced to Six Years in Prison in Connection with Theft of Approximately $1.5 Million from Former EmployerRead the Press Release
PITTSBURGH, Pa. – A resident of Butler, Pennsylvania, was sentenced in federal court following his earlier guilty plea to one count of wire fraud, Acting United States Attorney Stephen R. Kaufman announced today.
United States District Judge J. Nicholas Ranjan sentenced Paul Harmon, 64, to six years of imprisonment followed by three years of supervised release.
During his plea hearing on January 26, 2021, Harmon admitted that for over 40 years he was the corporate controller for Butler-based Fuellgraf Electric Company, and an affiliated company, Technical Management Associates (collectively, “Fuellgraf”), which supplied electricians and related services to a variety of industrial and commercial business customers located primarily in Pennsylvania and Florida. As controller, Harmon admitted that he exercised day-to-day responsibility for and control over Fuellgraf’s finance, accounting, and treasury functions. He also maintained check-writing authority for Fuellgraf’s business bank accounts and control of Fuellgraf’s internal books and records.
Between at least October 2009 and his termination in December 2018, Harmon admitted that he misappropriated approximately $1.5 million in Fuellgraf funds and concealed his theft through manipulation of Fuellgraf’s books and records. As part of Harmon’s scheme to defraud Fuellgraf, he admitted stealing funds in a variety of ways, including by: causing the company to issue over $470,000 in duplicate or inflated payroll disbursements to Harmon, initiating electronic payments toward his personal credit card balances totaling approximately $500,000, issuing approximately $10,000 in corporate checks to pay his personal credit card balances, issuing almost $80,000 in corporate checks to himself, and misappropriating $200,000 in corporate checks written to cash. In addition, Harmon admitted that he issued Fuellgraf corporate checks to an entity he controlled, PM Accounting, totaling more than $200,000, for purported accounting work performed on behalf of Fuellgraf, when, in fact, no such work occurred. Harmon concealed his misappropriation by creating hundreds of false entries in Fuellgraf’s books and records that masked the true nature and purpose of the expenditures.
As part of his sentence, Harmon also must pay restitution to Fuellgraf in the amount of $1,466,456.71.
Assistant United States Attorney Eric G. Olshan prosecuted this case on behalf of the government. The Federal Bureau of Investigation conducted the investigation leading to the charge in this case.
Burlington Man Sentenced to 20 Years in Prison for Methamphetamine OffenseRead the Press Release
DAVENPORT, IOWA – On Wednesday, July 28, 2021, a Burlington man was sentenced by United States District Court Chief Judge John A. Jarvey to 20 years in federal prison for distributing methamphetamine.
According to court documents, Gerald Victor Terry, age 50, admitted to distributing ice methamphetamine in Burlington. Terry had several prior criminal convictions and was on State of Iowa parole for two felony convictions at the time of this offense. After Terry’s prison term he will serve five years of supervised release.
Acting United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Southeast Iowa Narcotics Taskforce, Burlington Police Department, Des Moines County Sheriff’s Office, Iowa Division of Narcotics Enforcement, and the Drug Enforcement Administration.
Boise Woman Pleads Guilty to Importation of Bath SaltsRead the Press Release
BOISE – Jennifer Niemann, 34, of Boise, pleaded guilty to importation of a controlled substance, Acting U.S. Attorney Rafael M. Gonzalez, Jr. announced today. Niemann was indicted by a federal grand jury in Boise on April 14, 2021.
According to court records, the United States Customs and Border Protection intercepted a parcel at the International Mail Facility in San Francisco, California. The parcel contained α-PHP, a bath salt analogue. The package was addressed to Jennifer Niemann in Boise, Idaho and originated from the Netherlands. As a part of a Homeland Security Investigations-led inquiry, agents and United States Postal Inspectors interviewed Niemann on July 1, 2019, Niemann admitted to using Bitcoin to purchase the α-PHP online.
Niemann faces a maximum sentence of 20 years in federal prison, a one million dollar fine, and at least three years of supervised release. Sentencing is set for October 20, 2021, before Chief U.S. District Judge David C. Nye at the federal courthouse in Boise.
Acting U.S. Attorney Gonzalez credited the efforts of the United States Customs and Border Protection, Homeland Security Investigations, and the United States Postal Inspection Service, which led to the charges.
This case was prosecuted by the Special Assistant United States Attorney hired by the Ada County Prosecuting Attorney’s Office with funds provided by the High Intensity Drug Trafficking Areas (HIDTA) program. HIDTA is part of the Office of National Drug Control Policy (ONDCP) created by Congress with the Anti-Drug Abuse Act of 1988. It provides assistance to federal, state, and local law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States. Idaho is part of the Oregon-Idaho HIDTA. The Idaho HIDTA is a collaboration of local, multi-jurisdictional law enforcement drug task forces, and prosecuting agencies dedicated to addressing regional drug trafficking organizations that operate in Ada, Canyon, Bannock, Kootenai, and Malheur Counties.
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Baker Man Sentenced to 112 Months in Federal Prison for Gun and Drug ChargesRead the Press Release
Acting United States Attorney Ellison C. Travis announced that U.S. District Judge John W. deGravelles sentenced Brian Spears, age 43, of Baker, Louisiana, to 112 months in federal prison following his convictions for possession with the intent to distribute heroin, methamphetamine, Xanax and Tramadol and possession of a firearm in furtherance of a drug trafficking crime. The Court further sentenced Jones to serve 3 years of supervised release following his term of imprisonment and ordered that the firearms involved be forfeited.
According to admissions as part of his guilty plea, on November 4, 2019, deputies with the East Baton Rouge Parish Sheriff’s Office sought and obtained a search warrant for Spears’ residence based on learning Spears was selling illegal drugs from his residence. On November 12, 2019, EBRSO deputies observed Spears leave his residence and drive to a nearby house a few blocks away. Deputies followed Spears and arrested him as he exited from his vehicle. A loaded AK-47 was found on the driver’s floorboard of Spears’ vehicle.
EBRSO deputies then executed the search warrant of Spears’ residence, where they found 90.8 grams of heroin, 2.6 grams of methamphetamine, 16 dose units of Xanax, and 2 dose units of Tramadol, a digital scale, and a loaded Glock 21, 9mm handgun. EBRSO also found three children under the age of 10 in the home alone when they arrived. Spears’ residence is less than 900 yards from an East Baton Rouge Parish school. Both the Ak-47 and the Glock 21 were loaded with extended round magazines.
Acting U.S. Attorney Travis stated, “This conviction and sentence of a repeat offender reaffirms our commitment to fight violence by investigating, arresting, and prosecuting convicted criminals who decide to illegally possess firearms and sell drugs. Great credit goes to our partnership with local authorities for this result. I want to thank our prosecutor, the ATF, and the East Baton Rouge Sheriff’s Office for their work on this case.”
“One of ATF’s primary missions is to investigate illegal possession of firearms by violent offenders,” said ATF New Orleans Field Division Special Agent in Charge Kurt Thielhorn. “The sentence imposed today is an example of ATF’s partnership with the East Baton Rouge Sheriff’s Office to identify and investigate individuals that plague our communities with gun violence and drugs.”
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the East Baton Rouge Sheriff’s Office. It was prosecuted by Assistant United States Attorney Jessica M.P. Thornhill.
Attorney General Garland Joins Acting U.S. Attorney Phillips at National Night Out CelebrationsRead the Press Release
WASHINGTON – The U.S. Attorney’s Office for the District of Columbia today joined community and law enforcement partners in celebrating National Night Out, with Attorney General Merrick B. Garland and Acting U.S. Attorney Channing D. Phillips participating in an event at the Washington Nationals Youth Baseball Academy in Southeast Washington.
More than 200 people turned out for the celebration of community collaboration, held at the baseball academy, located in the Sixth Police District. Thousands more gathered across the city and nation, with senior Justice Department officials and U.S. Attorneys taking part in a Department-wide effort to bring attention to events that build stronger community-police relations. The activities in the District of Columbia were led by the Metropolitan Police Department (MPD), which sponsored events in all seven police districts.
“Law enforcement is most effective when it has the trust and support of the communities it serves,” said Attorney General Garland. “That is why events like National Night Out are so important and effective; they help to bridge the gap between neighbors and their police departments in a positive and informal setting.”
“National Night Out is an opportunity for us to show our appreciation to the many people in neighborhoods throughout the District of Columbia for the assistance they provide in promoting public safety,” said Acting U.S. Attorney Phillips. “We depend upon their cooperation and vigilance and have a long history of working together to benefit the community.”
National Night Out is an annual community-building campaign that promotes police-community partnerships and neighborhood camaraderie to make our neighborhoods safer, better places to live. In most areas of the country, the program culminates annually on the first Tuesday of August. National Night Out organizers expect to hold more than 16,000 community events around the country this year.
Established in 1984 from a Department of Justice Bureau of Justice Assistance (BJA) grant, the goal of National Night Out is to build relationships with and between communities and law enforcement. National Night Out enhances the relationship between neighbors and law enforcement while bringing back a true sense of community.
The Washington Nationals Youth Baseball Academy, at 3675 Ely Place SE, is a nine-acre education and recreation campus in the Fort Dupont Park area. It is a centerpiece of Nationals Philanthropies, the official charitable arm of the Washington Nationals. Events there ran from afternoon into early evening and included a moon bounce, kickball, baseball tutorial sessions, food, entertainment, and information from government and community partners.
Wendy Pohlhaus, Director of the Community Engagement Section for the U.S. Attorney’s Office, joined District of Columbia officials, MPD, and federal law enforcement partners at one of the many other National Night Out events, a kickoff event at the Kennedy Recreation Center, 1401 Seventh St. NW, in the Third Police District. She leads a team of prosecutors and community engagement specialists, including Community Engagement Specialist Baretta Francis, who participated along with Attorney General Garland and Acting U.S. Attorney Phillips at the baseball academy event. The Community Engagement Section sponsors events year-round, including a recent youth summit that focused on the prevention of gun violence and the dangers of opioids.
Albuquerque man charged with drug trafficking and firearms violationRead the Press Release
ALBUQUERQUE, N.M. – Richard “Fat Jesus” Wheeler, 38, of Albuquerque, made an initial appearance in federal court on July 29 on charges of distribution of methamphetamine and carrying a firearm in furtherance of drug trafficking. Wheeler waived a detention hearing and will remain in custody pending trial.
According to a criminal complaint, on three occasions from July 16 through July 22, Wheeler allegedly sold a total of approximately 773 grams of methamphetamine to an undercover agent in Albuquerque. During the transaction on July 16, Wheeler was allegedly armed with a pistol in plain view of the agent.
A complaint is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Wheeler faces a minimum of five years and up to life in prison
The FBI’s Albuquerque Violent Crime Gang Task Force (VCGTF) investigated this case. Assistant United States Attorneys Jaymie L. Roybal and Alexander Uballez are prosecuting the case.
Acting U.S. Attorney Saima Mohsin to Take Part in National Night OutRead the Press Release
Detroit, MI – Acting U.S. Attorney Saima Mohsin will join law enforcement, community leaders and residents on Tuesday, August 3rd at several locations throughout Detroit to celebrate the National Night Out crime and drug prevention events.
National Night Out is a community-building and crime prevention campaign that promotes collaborative law enforcement-community partnerships and neighborhood camaraderie. Thousands of communities nationwide will participate in neighborhood block parties, festivals, cookouts, safety demonstrations, seminars, and activities that heighten crime and drug prevention awareness and generate support for and participation in local anticrime efforts. Events such as these help to strengthen neighborhood spirit, police-community partnerships, and demonstrate a shared commitment for strong and safe communities.
“Keeping our communities safe is a top Justice Department priority, as it is for state, local and Tribal police departments across the country,” said Attorney General Merrick B. Garland. “Law enforcement is most effective when it has the trust and support of the communities it serves. That is why events like National Night Out are so important and effective; they help to bridge the gap between neighbors and their police departments in a positive and informal setting.”
“National Night Out is a time for law enforcement, community leaders and residents to join together in the fight against crime in our communities. These types of events help to strengthen our resolve to root out crime and build stronger and safer communities,” said Acting US Attorney Mohsin. “I’m proud to stand shoulder-to-shoulder with our stakeholders to support safer streets.”
DPD Chief White stated, "National Night Out provides another opportunity to connect with our community and to build relationships based on trust and respect. It also illustrates our commitment to reduce crime and improve the quality of life for our residents through community policing. We look forward to joining millions across America including law enforcement members to mark this momentous event. We are #OneDetroit!”
Mrs. Mohsin will appear at Detroit Police precincts all throughout the city.Acting U.S. Attorney Bruce D. Brandler Encourages Participation in National Night OutRead the Press Release
HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Assistant U.S. Attorneys will join law enforcement, community leaders and residents on Tuesday, August 3rd at various event locations to celebrate the 37th Annual National Night Out.
The events Assistant U.S. Attorneys plan to attend are:
- Harrisburg Bureau of Police at Camp Curtain Academy Football Field in Harrisburg from 5:00 p.m. to 9:00 p.m.;
- Lebanon City Police Department at the Salvation Army building on Guilford Street in Lebanon from 6:00 p.m. to 8:00 p.m.;
- Derry Township Police Department on West Caracas Avenue in Hershey from 6:00 p.m. to 8:00 p.m.; and
- York City Police Department at numerous locations throughout the city from 6:00 p.m. to 8:00 p.m.
National Night Out is a community-building campaign that promotes collaborative law enforcement-community partnerships and neighborhood camaraderie. Communities nationwide will participate in neighborhood festivals, block parties, and cookouts, which provides a great opportunity to bring police and neighbors together under positive circumstances.
“National Night Out signifies the essential role the community plays in effective law enforcement” stated Acting U.S. Attorney Bruce Brandler. “We are pleased to join with our local law enforcement partners and the communities we serve to promote this important program.”
“Keeping our communities safe is a top Justice Department priority, as it is for state, local and Tribal police departments across the country,” said Attorney General Merrick B. Garland. “Law enforcement is most effective when it has the trust and support of the communities it serves. That is why events like National Night Out are so important and effective; they help to bridge the gap between neighbors and their police departments in a positive and informal setting.”
National Night Out events will be held in several communities throughout the Middle District of Pennsylvania. For more information about National Night Out, visit their website www.natw.org
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Monday 2 August 2021
West Hollywood Man Sentenced to over 12 Years in Prison for Real Estate Fraud Scheme that Victimized More Than 2,000 HomeownersRead the Press Release
LOS ANGELES – A West Hollywood man was sentenced today to 152 months in federal prison for orchestrating a real estate fraud scheme that victimized more than 2,000 homeowners, involved fraudulent filings that affected the title to properties across the country and caused more than $7 million in losses.
Patrick Joseph Soria, 35, was sentenced by United States District Judge Dale S. Fischer, who called Soria “a skillful conman who created a very sophisticated scheme.” Judge Fischer also stated, “This is not the largest case I have presided over in terms of dollars, but it is the most brazen and heartless.”
A restitution hearing is scheduled for October 25. Soria pleaded guilty on March 2 to one count of conspiracy to commit wire fraud and one count of contempt of court.
From January 2015 to June 2018, Soria stole money from homeowners and would-be home buyers through a two-pronged scheme.
Firstly, Soria hijacked title to properties through fraudulent title filings done at county recorders’ offices around the country. He faked the filings to make it appear that he owned the properties, and then “sold” the properties to victims who thought they were buying the homes from the true owner. In fact, Soria never owned the homes, and he instead used the victims’ “purchase” money for his own personal expenses, including escort services, stays at luxury hotels, and Bentley and Lamborghini car rentals.
In the second part of the scheme, Soria convinced homeowners that he could help them with their mortgages, either by assisting them with a loan modification or by taking over their mortgage from their lender, with the promised result, either way, of reducing their mortgage payments. He told them that he had achieved success in this area in the past, and he convinced them that he was trying to help them, often befriending them to gain their trust and give them hope. But as Judge Fischer stated at today’s hearing, “Mr. Soria turned their hopes into a nightmare.”
After gaining the victims’ trust, Soria convinced homeowners to stop paying their real lender and to start paying him. Through yet more fraudulent filings, Soria deceived his victims into believing he had taken over their mortgages. He also falsely lulled victims into doing nothing to protect themselves when they started receiving foreclosure and eviction notices. Many of the homeowners targeted in the scheme lost their homes.
As part of the fraud, Soria used company names such as HBSC US and Deutsche Mellon National Asset LLC, designed to trick homeowners into thinking that these companies were real. He also took advantage of the complex mix of lenders, trustees, beneficiaries, and servicers in the mortgage market, and the assignments of mortgage loans between entities, to confuse homeowners and to make it seem as if he did in fact own the properties and mortgages.
More than 2,000 individuals were victimized through this scheme. Soria admitted in court documents that losses totaled more than $7.6 million. In addition to causing losses to individual homeowners, the fraud scheme also victimized numerous lenders who held mortgages on, or other interests in, properties targeted in the scheme.
The targeted properties were located nationwide, including in Texas, New York, Nevada, and in the California cities of Vernon, Beverly Hills, Santa Ana, Yorba Linda, Anaheim and elsewhere.
In a related matter, Soria committed numerous acts of contempt of court in a related civil case before Judge Fischer, Nationstar Mortgage LLC v. Patrick Soria, et al., 18-cv-03041-DSF-RAO (C.D. Cal.), including willfully spending funds subject to an asset freeze. The contempt resulted in his incarceration in 2018, and criminal charges filed by the Court in 2019 by way of an Order to Show Cause.
This matter was investigated by the FBI and the Federal Housing Finance Agency – Office of Inspector General, with assistance from the Los Angeles Police Department; the Beverly Hills Police Department; the Los Angeles County Sheriff’s Department; the San Joaquin County District Attorney’s Office, the Ventura County District Attorney’s Office; and the Orange County District Attorney’s Office.
Assistant United States Attorney Kerry L. Quinn of the Major Frauds Section prosecuted this case.
United States Attorney's Office for the Eastern District of Oklahoma Obtains Twenty-Eight Indictments from Federal Grand JuriesRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced federal grand juries sitting in Muskogee recently completed two separate July sessions and returned twenty-eight (five under seal) felony indictments, including six superseding indictments.
The Eastern District of Oklahoma has experienced a dramatic increase in Indian Country cases for federal prosecution due to the U.S. Supreme Court decision of McGirt v. Oklahoma and recent Oklahoma Court of Criminal Appeals rulings. These opinions determined the reservations of the Five Civilized Tribes were never disestablished by Congress, and therefore, the United States has primary federal jurisdiction to prosecute major crimes committed by—or against—Native Americans occurring within the 26 counties of the Eastern District of Oklahoma. In response to the caseload rise, a second grand jury was empaneled in the Eastern District in the month of July.
From the two grand jury sessions in July, twenty-three indictments were publicly filed and five remain sealed pending arrest of the charged defendants. All but three of the unsealed charges involve crimes arising out of Indian Country. Four of the unsealed indictments are for murder or involuntary manslaughter, six are for sex crimes, and the balance contain allegations of assault with a dangerous weapon or resulting in serious bodily injury, assault with intent to commit murder, kidnapping, burglary, firearm violations, and robbery. The three unsealed non-Indian Country indictments involve possession with intent to distribute methamphetamine and firearm violations.
The following indictments were returned by the federal grand juries and filed in the United States District Court for the Eastern District of Oklahoma. The information listed in brackets is the county and reservation where the crime(s) allegedly occurred.
Murder:
United States v. Wendy Dawn Johnson – Count 1: Involuntary Manslaughter in Indian Country, 18 U.S.C. §§ 1112, 1151 & 1153 [McIntosh County – Muscogee (Creek) Nation Reservation]
United States v. Tyler Jay Mullins (superseding indictment) – Count 1: Murder in Indian Country, 18 U.S.C. §§ 1111(a), 1151 & 1153; Count 2: Use, Carry, Brandish and Discharge of a Firearm During and in Relation to a Crime of Violence, 18 U.S.C. §§ 924(c)(1)(A)(i),(ii) & (iii); Count 3: Causing the Death and Murder of a Person in the Course of a Violation to Title 18 U.S.C. § 924(c), 18 U.S.C. § 924(j)(1) [Pontotoc County – Chickasaw Nation Reservation]
United States v. Michael Lee Wolfe and Carlos Allen Locust (superseding indictment) – Count 1: Murder in Indian Country – 18 U.S.C. §§ 1111(a), 1151, 1153 & 2 [Adair County – Cherokee Nation Reservation]
United States v. Allysa Lynn Turner – Count 1: Murder in Indian Country, 18 U.S.C. §§ 1111(a), 1151 & 1152; Count 2: Use, Carry, Brandish and Discharge of a Firearm During and in Relation to a Crime of Violence, 18 U.S.C. § 924(c)(1)(A)(i)(ii)(iii); Count 3: Causing the Death of a Person in the Course of a Violation to Title 18, United States Code, Section 924(c), 18 U.S.C. § 924(j)(1); Forfeiture Allegation, 18 U.S.C. § 924(d) & 28 U.S.C. § 2461(c) [Latimer County – Choctaw Nation Reservation]
Sexual Assault:
United States v. Jimmy Dean Altom – Count 1: Aggravated Sexual Abuse of a Child in Indian Country, 18 U.S.C. §§ 2241(c) 2246(2)(D), 1151 & 1152; Count 2: Sexual Abuse of a Minor in Indian Country, 18 U.S.C. §§ 2243(a), 2246(2)(A), 1151 & 1152; Count 3: Sexual Abuse in Indian Country, 18 U.S.C. §§ 2242(1), 2246(2)(A), 1151 & 1152; Count 4: Sexual Abuse of a Minor in Indian Country, 18 U.S.C. §§ 2243(a), 2246(2)(D), 1151 & 1152 [Atoka County– Choctaw Nation Reservation]
United States v. Dallas Tyler Ewton – Counts 1 and 2: Aggravated Sexual Abuse of a Child in Indian Country, §§ 1151, 1153, 2241(c) & 2246(2)(B); Count 3: Aggravated Sexual Abuse of a Child in Indian Country, 18 U.S.C. §§ 1151, 1153, 2241(a) & 2246(2)(C); Counts 4 and 5: Aggravated Sexual Abuse of a Child in Indian Country, 18 U.S.C. §§ 1151, 1153, 2241(a) & 2246(2)(B); Count 6: Aggravated Sexual Abuse of a Child in Indian Country, 18 U.S.C. §§ 1151, 1153, 2241(a) & 2246(2)(C); Counts 7 and 8: Sexual Abuse of a Minor in Indian Country, 18 U.S.C. §§ 1151, 1153, 2243(a) & 2246(2)(B); Count 9: Sexual Abuse of a Minor in Indian Country, 18 U.S.C. §§ 1151, 1153, 2243(a) & 2246(2)(C); Counts 10 and 11: Sexual Abuse of a Ward in Indian Country, 18 U.S.C. §§ 1151, 1153, 2243(b) & 2246(2)(B); Count 12: Sexual Abuse of a Ward in Indian Country, 18 U.S.C. §§ 1151, 1153, 2243(b) & 2246(2)(C); Counts 13 and 14: Abusive Sexual Contact in Indian Country, 18 U.S.C. §§ 1151, 1153, 2244(a)(3) & 2246(3); Counts 15 and 16: Abusive Sexual Contact in Indian Country, 18 U.S.C. §§ 1151, 1153, 2244(a)(4) & 2246(3); Count 17: Tampering with a Witness in Indian Country, 18 U.S.C. §§ 1151, 1153 & 1512(a)(2)(c) [Okmulgee County – Muscogee (Creek) Nation Reservation]
United States v. Damian Wade Baldridge – Counts 1, 3 and 6: Assault Resulting in Serious Bodily Injury in Indian Country, 18 U.S.C. §§ 113(a)(6), 1151 & 1153; Counts 2 and 5: Assault Resulting in Substantial Bodily Injury to a Spouse, Intimate Partner or Dating Partner in Indian Country, 18 U.S.C. §§ 113(a)(7), 1151 & 115; Count 4: Kidnapping in Indian Country, 18 U.S.C. §§ 1201 (a)(2), 1151 & 1153; Count 7: Aggravated Sexual Abuse in Indian Country, 18 U.S.C. §§ 1151, 1153, 2241(a) & 2246 (2)(C) [Cherokee County – Cherokee Nation Reservation]
United States v. Levi Cody Root, Sr. (superseding indictment) – Count 1: Aggravated Sexual Abuse in Indian Country, 18 U.S.C. §§ 2241(c), 2246(2)(A), 1151 & 1152; Count 2: Aggravated Sexual Abuse in Indian Country, 18 U.S.C. §§ 2241(c), 2246(2)(B), 1151 & 1152; Count 3: Aggravated Sexual Abuse in Indian Country, 18 U.S.C. §§ 2241(c), 2246(2)(D), 1151 & 1153; Count 4: Sexual Abuse of a Minor in Indian Country, 18 U.S.C. §§ 2243, 2246(2)(B), 1151 & 1152; Count 5: Sexual Abuse of a Minor in Indian Country, 18 U.S.C. §§ 2243, 2246(2)(D), 1151 & 1152 [Seminole County – Seminole Nation Reservation]
United States v. Tyler James Stephens (second superseding indictment) – Count 1: Stalking, 18 U.S.C. § 2261(2)(B); Count 2: Extortionate Interstate Communications, 18 U.S.C. § 875(d); Counts 3 and 4: Video Voyeurism in Indian Country (Misdemeanor), 18 U.S.C. §§ 1151, 1152 & 1801(a); Count 5: Attempted First Degree Burglary in Indian Country, 18 U.S.C. §§ 1151, 1153 & 21 O.S.A. §§ 44 & 1431; Count 6: Attempted Sexual Abuse in Indian Country, 18 U.S.C. §§ 2242(1), 2246(2)(A), 1151 & 1153; Counts 7 and 8: First Degree Burglary in Indian Country, 18 U.S.C. §§ 1151, 1153 & 21 O.S.A. § 1431 [McIntosh County – Muscogee (Creek) Nation Reservation]
United States v. Brooke Lynn Davidson and Henry Charles Littlebear Redhat (superseding indictment) – Count 1: Child Neglect in Indian Country, 18 U.S.C. §§ 1151 & 1153 & 21 O. S. A. § 843.5(C); Count 2: Sexual Abuse in Indian Country, 18 U.S.C. §§ 2242(2), 2246(2)(A), 1151 & 1153; Count 3: Sexual Abuse in Indian Country, 18 U.S.C. §§ 2242(2), 2246(2)(B), 1151 & 1153; Count 4: Abusive Sexual Contact in Indian Country, 18 U.S.C. §§ 2244(a)(2), 2246(3), 1151 & 1153 [Carter County – Chickasaw Nation Reservation]
Other violent crime in Indian Country:
United States v. v. Francisco Perez – Count 1: Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country, 18 U.S.C. §§ 113(a)(3), 1151 & 1152; Count 2: Assault Resulting in Serious Bodily Injury in Indian Country, 18 U.S.C. §§ 113(a)(6), 1151 & 1152; Count 3: Use, Carry, Brandish, and Discharge of a Firearm During and in Relation to a Crime of Violence, 18 U.S.C. §§ 924(c)(1)(A)(i)(ii)(iii); Forfeiture Allegation, 18 U.S.C. § 924(d) & 28 U.S.C. § 2461(c) [Leflore County – Choctaw Nation Reservation]
United States v. Lakota Watson – Count 1: Assault Resulting in Serious Bodily Injury in Indian Country, 18 U.S.C. §§ 113(a)(6), 1151 & 1153; Count 2: Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country, 18 U.S.C. §§ 113(a)(3), 1151 & 1153; Count 3: Use, Carry, Brandish and Discharge of a Firearm During and in Relation to a Crime of Violence, 18 U.S.C. §§ 924(c)(1)(A)(i),(ii),(iii) [Okmulgee County – Muscogee (Creek) Nation Reservation]
United States v. Andre Lavell Tatum – Count 1: Assault with Intent to Murder in Indian Country, 18 U.S.C. §§ 113(a)(1), 1151, & 1152; Count 2: Assault with a Dangerous Weapon in Indian Country, 18 U.S.C. §§ 113(a)(1), 1151 & 1152; Count 3: Discharging a Firearm during a Crime of Violence, 18 U.S.C. § 942(c)(1)(A)(iii) [Muskogee County – Muscogee (Creek) Nation Reservation]
United States v. Shawn Claude Rose – Count: 1 Assault with a Dangerous Weapon in Indian Country, 18 U.S.C. §§ 113(a)(3), 1151 & 1153; Count 2: Assault Resulting in Serious Bodily Injury In Indian Country, 18 U.S.C. §§ 113(a)(6), 1151 and 1153; Count 3: Assault with a Dangerous, with Intent to do Great Bodily Harm in Indian Country, 18 U.S.C. §§ 113(a)(3), 1151 & 1153; Count 4: Assault Resulting in Serious Bodily Injury In Indian Country, 18 U.S.C. §§ 113(a)(6), 1151 & 1153 [Adair County – Cherokee Nation Reservation]
United States v. Shawn Claude Rose - Count 1: Assault with Intent to Commit Murder in Indian Country, 18 U.S.C. §§ 113(a)(1), 1151 & 1153; Count 2: Assault with a Dangerous Weapon in Indian Country, 18 U.S.C. §§ 113(a)(3), 1151 & 1153; Count 3: Assault Resulting in Serious Bodily Injury in Indian Country, 18 U.S.C. §§ 113(a)(6), 1151 & 1153; Count 4: Assault with a Dangerous Weapon in Indian Country, 18 U.S.C. §§ 113(a)(3), 1151 & 1153; Count 5: Assault Resulting in Serious Bodily Injury in Indian Country, 18 U.S.C. §§ 113(a)(6), 1151 & 1153; Count 6: Use, Carry, Brandish, and Discharge of a Firearm During and in Relation to a Crime of Violence, 18 U.S.C. § 924(c)(1)(A)(i)(ii)(iii) [Adair County – Cherokee Nation Reservation]
United States v. Nathan Delann Horner – Count 1: Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country, 18 U.S.C. §§ 113(a)(3), 1151 & 1152; Count 2: Assault Resulting in Serious Bodily Injury in Indian Country, 18 U.S.C. §§ 113(a)(6), 1151 & 1153 [Bryan County – Choctaw Nation Reservation]
United States v. Antonio Morice Brooks – Count 1: Assault with Intent to Commit Murder in Indian Country, 18 U.S.C. §§ 113(a)(1), 1151 & 1152; Count 2: Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country, 18 U.S.C. §§ 113(a)(3), 1151 & 1152; Count 3: Use, Carry, Brandish, and Discharge of a Firearm During and in Relation to a Crime of Violence, 18 U.S.C. §§ 924(c)(1)(A)(i)(ii)(iii); Count 4: Felon in Possession of Ammunition, 18 U.S.C. §§ 922(g)(1) & 924(a)(2) [Atoka County – Choctaw Nation Reservation]
United States v. Aaron Isaiah Johnson (superseding indictment) – Count 1: Kidnapping in Indian Country, 18 U.S.C. §§ 1201(a)(2), 1151, 1153 & 1201(a)(2) & 2; Count 2: Robbery in Indian Country, 18 U.S.C. §§ 2111, 1151, 1153 & 2; Count 3: Use, Carry and Brandish of Firearm During and in Relation to a Crime of Violence, 18 U.S.C. §§ 924(c)(1)(A) & (ii) & 2; Count 4: Conspiracy to Commit Robbery in Indian Country, 18 U.S.C. § 371; Count 5: Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country, 18 U.S.C. §§ 113(a)(3), 1151, 1153 & 2; Count 6: Robbery in Indian Country, 18 U.S.C. §§ 2111, 1151, 1153 & 2; Count 7: Use, Carry and Brandish of Firearm During and in Relation to a Crime of Violence, 18 U.S.C. §§ 924(c)(1)(A)(i) & (ii) & 2; Count 8: Burglary in the Second Degree in Indian Country, 18 U.S.C. §§ 1151, 1153 & 21 O.S.A. § 1435(A); Count 9: Burglary in the Second Degree in Indian Country, 18 U.S.C. §§ 1151, 1153 & 21 O.S.A. § 1435(A) [Muskogee County and Wagoner County – Muscogee (Creek) Nation Reservation]
United States v. Kaleb Lee Oss – Count 1: Assault Resulting in Serious Bodily Injury, 18 U.S.C. §§ 113(a)(6), 1151 & 1153 [Pittsburg County – Choctaw Nation Reservation]
United States v. Kaleb Lee Oss - Count 1: First Degree Burglary in Indian Country, Title 18 U.S.C. §§ 13, 1151, 1153 & 21 O.S.A. § 1431; Count 2: Robbery in Indian Country, 18 U.S.C. §§ 2111, 1151 & 1153; Count 3: Use, Carry, and Brandish a Firearm During and in Relation to a Crime of Violence, 18 U.S.C. §§ 924(c)(1)(A)(i)(ii), 1151 & 1153; Count 4: Felon in Possession of a Firearm, 18 U.S.C. §§ 922(g)(1) & 924(a)(2); [Pittsburg County – Choctaw Nation Reservation]
Non-Indian Country offenses:
United States v. Jagger Levi Gordon – Count 1: Possession with Intent to Distribute Methamphetamine, 21 U.S.C. § 841(b)(1)(B)(viii); Count 2: Use/Discharge of Firearm During and in Relation to Drug Trafficking Offense; 18 U.S.C. § 924(c)(1)(A); Count 3: Possession of Firearm w/ Silencer in Furtherance of Drug Trafficking Offense, 18 U.S.C. § 924(c)(1)(B); Count 4: Possession of Firearm by a Felon, 18 U.S.C. § 922(g)(1); Count 5: Possession of Unregistered Firearm Silencer, 26 U.S.C. § 5861(d) [Okmulgee County]
United States v. Jeremy Don Harrison – Count 1: Possession with Intent to Distribute Methamphetamine, 21 U.S.C. §§ 841(a)(1), 841(b)(1)(c) & 2; Count 2: Possession of a Firearm in Furtherance of a Drug Trafficking Crime, 18 U.S.C. §§ 924(c)(1)(A), & 2; Count 3: Felon in Possession of a Firearm, 18 U.S.C. §§ 922(g)(1) & 924(a)(2); Count 4: Possession of a Stolen Firearm, 18 U.S.C. §§ 922(j) & 924(a)(2) & 2 [Seminole County]
United States v. Jeremy Chad Gilliland (superseding indictment) – Count 1: Possession of a Firearm by a Person Convicted in any Court of a Misdemeanor Crime of Domestic Violence, 18 U.S.C. §§ 922(g)(9) & 924(a)(2); Count 2: Possession of Unregistered Firearm, 26 U.S.C. §§ 5845, 5861(d) & 5871; Forfeiture Allegation – 18 U.S.C. § 924(d) & 28 U.S.C. § 2461(c) [Carter County]
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney Kennedy Announces Results of VIPER Task Force Through July 30, 2021Read the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.- U.S. Attorney James P. Kennedy, Jr., announced today the cumulative results of the Federal Violence Prevention and Elimination Response (VIPER) Task Force, a 60-day surge aimed at removing violent gun offenders from the streets of Rochester and Buffalo to enhance public safety and reduce violent crime. For the slightly over three-week period between July 7 and July 30, 2021, the following results were achieved in Rochester, Buffalo, and Niagara Falls through VIPER:
• District Wide
o Firearm Related Arrests – 125
o Narcotics Related Arrests - 217
o Violent Felony Arrests - 142
o Firearms Seized - 68
• Rochester
o Firearm Related Arrests - 69
o Narcotics Related Arrests - 41
o Violent Felony Arrests - 86
o Firearms Seized - 51
• Buffalo/Niagara Falls
o Firearm Related Arrests - 56
o Narcotics Related Arrests - 176
o Violent Felony Arrests - 56
o Firearms Seized - 17To date, 18 defendants have been adopted for federal prosecution, and 52 other defendant’s arrests are currently being reviewed to determine whether federal prosecution is appropriate.
“These latest numbers suggest that the all hands-on-deck, collaborative approach promoted by the VIPER Task Force is yielding positive results,” stated U.S. Attorney Kennedy. “Violent offenders, drug traffickers, and those with illegal guns are—or, at least, should be—starting to realize that they are the focus not only of the attention of every law enforcer in our community—but the attention of a growing number of community members themselves. Hopefully, that realization will cause those considering whether illegally to possess or use a gun to think twice and help them to recognize that they will only find lasting respect and protection once they choose to put the gun down.”
The VIPER Task Force involves enhanced information sharing, enhanced proactive investigations and prosecutions, and the improvement relations between the community and law enforcement.
Members of the VIPER Task Force include the United States Attorney’s Office, under the direction U.S. Attorney James P. Kennedy, Jr.; the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division; the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia; the United States Marshals Service, under the direction of Marshal Charles Salina; Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; Immigration and Customs Enforcement, Enforcement and Removal Operations, under the direction of Acting Field Office Director Robert F. Judge; and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division. VIPER Task Force members in Rochester also include: the Monroe County District Attorney’s Office, under the direction of District Attorney Sandra Doorley; the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter; and the Rochester Police Department, under the direction of Chief Cynthia Herriott-Sullivan. VIPER Task Force members in Buffalo also include: the Erie County District Attorney’s Office, under the direction of District Attorney John Flynn; the Erie County Sheriff’s Office, under the direction of Sheriff Timothy Howard; and the Buffalo Police Department, under the direction of Chief Byron Lockwood.
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Two MSC Gayane Crew Members Sentenced for Conspiracy to Smuggle $1 Billion Worth of Cocaine into the United StatesRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced today that Ivan Durasevic, 31, and Nenad Ilic, 41, both of Montenegro, were sentenced by United States District Court Judge Harvey Bartle III, on charges of conspiracy to possess with intent to distribute cocaine on a vessel subject to the jurisdiction of the United States. Durasevic was sentenced to six and a half years in prison and two years of supervised release. Ilic was sentenced to seven years in prison followed by two years of supervised release.
Durasevic and Ilic worked on board the MSC Gayane, a commercial shipping vessel, as crew members; Durasevic was the second officer and Ilic was the engineer cadet. For months in early 2019, Durasevic, and Ilic conspired with others to engage in a bulk cocaine smuggling scheme. On multiple occasions during the MSC Gayane’s voyage and while at sea, crew members including the defendants helped load bulk packages of cocaine onto the vessel from speedboats that approached the vessel in the middle of the night under cover of darkness. Crew members used the vessel’s crane to hoist cargo nets full of cocaine onto the vessel and then stashed the cocaine in the vessel’s shipping containers; they bent railings on the ship and pulled back doors on the shipping containers so they could fit the huge quantities of cocaine into the containers. After hiding the drugs among legitimate cargo, crew members used fake seals to reseal the shipping containers in which they had stashed the cocaine in order to disguise their clandestine activities and contraband. Durasevic and Ilic operated mobile “narco” phones to coordinate the bulk cocaine smuggling with others on land and recruited other crew members while at sea to assist in the scheme.
On June 17, 2019, federal, state, and local law enforcement agents boarded the MSC Gayane when it arrived at Packer Marine Terminal in Philadelphia and seized about 20 tons of cocaine worth over $1 billion U.S. dollars from its shipping containers in one of the largest drug seizures in U.S. history.
Five other crew members from the MSC Gayane involved in this smuggling scheme were arrested, pleaded guilty to conspiracy to possess with intent to distribute cocaine, and have previously been sentenced based on their participation in the scheme. These crew members include Bosko Markovic, 39, of Montenegro, the ship’s chief officer; Vladimir Penda, 27, of Montenegro, the fourth engineer; Stefan Bojevic, 29, of Serbia, the assistant reeferman; Fonofaavae Tiasaga, 29, of Samoa, an able seaman; and Laauli Pulu, 34, of Samoa, an ordinary seaman. A sixth crew member, Aleksandar Kavaja, 27, of Montenegro, the electrician, pleaded guilty and is awaiting sentencing.
“As the sentences for the illegal conduct in this case continue to happen, they serve as a reminder that drug smuggling operations will be uncovered one way or another,” said Acting U.S. Attorney Williams. “Prosecutors in our Office have been working non-stop to pursue justice since the MSC Gayane docked in the port of Philadelphia over two years ago, and we will not stop until the case is closed.”
The case is being investigated by Homeland Security Investigations and the United States Customs and Border Protection, together with a multi-agency team of federal, state, and local partners.
Three Men Admit to Stealing from ATMs & Gas Pumps, Staging a Fake Car Accident in Nationwide Fraud, Money Laundering SchemeRead the Press Release
SAN DIEGO – Three more men pleaded guilty today to engaging in a years-long, nation-wide fraud conspiracy that stole victims’ financial information from ATMs and gas pumps in San Diego and across the country, and then used the stolen information to make fake credit and debit cards. All told, six defendants have now admitted to participating in that conspiracy, and in a related money laundering conspiracy, that netted over a million dollars in ill-gotten gains.
In sentencing one of the coconspirators on April 21, 2021, the Honorable Michael M. Anello observed that the conspiracy constituted “a very, very serious and longstanding criminal enterprise.”
One defendant, Arsen Galstyan, pleaded guilty to engaging a conspiracy to commit access device fraud: essentially, using fake debit and credit cards. The remaining two defendants—brothers Davit and Vahram Simonyan—admitted to participating in a money laundering conspiracy that laundered the proceeds of access device fraud and other crimes.
In their plea agreements, the defendants admitted that their scheme inflicted actual and intended losses of at least $1.2 million. The Simonyan brothers each admitted to obtaining over $642,000 in stolen money over the course of the conspiracy, which stretched from 2017 to 2020. They also acknowledged structuring their withdrawals from the banks to avoid bank reporting requirements. For example, in one month alone, the Simonyan brothers allegedly withdrew $91,500 in cash from a single bank account. Davit Simonyan admitted that he and a co-conspirator possessed 75 fake debit and credit cards on just a single day in 2018.
Davit Simonyan also staged a phony car accident in order to commit insurance fraud, according to his plea agreement. He planned an accident involving cars insured by two of his codefendants, including Arsen Galstyan, who also pleaded guilty today. Then Simonyan had one of the damaged vehicles repaired at a collision shop owned by an unindicted co-conspirator who kicked back thousands of dollars in payment from the insurance company to Simonyan and his brother as part of their money laundering scheme. Davit Simonyan admitted that by staging a car accident, his conduct involved the reckless risk of a serious bodily injury.
The indictment alleges that the coconspirators worked together to steal unwitting victims’ credit and debit card information by using skimming devices installed in common points of sale such as gas pumps and ATMs. With the stolen information in hand, the conspirators made a host of unauthorized cards that they then used to buy postal money orders and make withdrawals from victims’ accounts.
“People should be able to use a gas pump or an ATM without fear that a criminal will steal their identities and their savings,” said Acting U.S. Attorney Randy Grossman. “This office will ensure that identity thieves, fraudsters and money launderers are held accountable for victimizing our community.” Grossman commended Assistant U.S. Attorney Nicholas Pilchak and the federal agents who diligently pursued this matter.
“Members of the public should remain vigilant as skimming crimes continue to be prevalent,” said Brian Lewin, Special Agent in Charge of the U.S. Secret Service San Diego field office. “The Secret Service is proud to work with our law enforcement and public safety partners to prevent future crimes like this.”
“The U.S. Postal Inspection remains unwavering in its mission to arrest those who intend to utilize the Postal Service as part of a criminal enterprise,” noted Carroll Harris, Inspector in Charge of the Los Angeles Division. “The customers of the Postal Service can be assured the Post Office still remains a safe and secure location to conduct business.”
On April 21, 2021, co-defendant Arsen Minasyan was sentenced by the Honorable Michael M. Anello to 37 months in custody. He was ordered to forfeit $75,145.90 and to pay restitution to victims in the amount of $109,834.14.
The remaining defendant, Gor Plavchyan, is scheduled to be in court next for a change of plea on Friday, August 6, 2021.
The defendants who pleaded guilty today will appear for sentencing on November 3, 2021 at 9:30 a.m. before U.S. District Court Judge Michael Anello.
Anyone who believes that they may be a victim of this offense can visit the U.S. Department of Justice’s large case website for more information: www.justice.gov/largecases.
DEFENDANTS Age Case Number 20cr314-MMA
1. Davit Simonyan 30 Residence: Glendale, California
2. Vahram Simonyan 34 Residence: Glendale, California
3. Arsen Minasyan 34 Residence: Terminal Island FCI
4. Gor Plavchyan 26 Residence: Winnetka, California
5. Arsen Galstyan 40 Residence: Glendale, California
6. Mukuch Mkrtchyan 32 Residence: Fair Oaks, California
7. Smbat Shahinyan 41 Residence: Glendale, CaliforniaSUMMARY OF CHARGES
Conspiracy to Launder Monetary Instruments, in violation of Title 18, United States Code, Section 1956(h) (Defendants 1 through 3 only)
Maximum Penalty: twenty years in prison; fine of $500,000 or twice the value of the property involvedConspiracy to Possess Fifteen or More Unauthorized Access Devices, in violation of Title 18, United States Code, Sections 1029(b)(2), 1029(a)(3), and 1029(c)(1)(A)(i) (Defendants 1 and 3–7 only)
Maximum Penalty: five years in prison; fine of $250,000 or twice the gross gain or lossINVESTIGATING AGENCIES
United States Secret Service
U.S. Postal Inspection Service*The charges and allegations contained in an indictment are merely accusations. The defendants are considered innocent unless and until proven guilty
Texas Woman Pleads Guilty to Conspiring to Stage Automobile Accidents in Order to Defraud Insurance and Trucking CompaniesRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that GENETTA ISREAL (“ISREAL”), age 53, of Houston, Texas, pled guilty today to Conspiracy to Commit Wire Fraud, in violation of Title 18, United States Code, Section 371, arising out of staged automobile accidents with tractor-trailers occurring in New Orleans. Thus far, twenty-six (26) of the thirty-three (33) indicted defendants have tendered guilty pleas in federal court.
Damien Labeaud, Mario Solomon, Larry Williams, and ISREAL were charged with staging an accident on June 12, 2017, occurring on Chef Menteur Highway near the Danziger Bridge in New Orleans. Labeaud and Larry Williams planned to stage an automobile accident to obtain money through fraud. During their planning, Labeaud told Larry Williams that he had an Attorney who would handle everything. Larry Williams recruited ISREAL and another individual (now deceased) to participate in the fraudulent scheme. To execute the scheme, Larry Williams borrowed a Chevrolet Trailblazer, and that Labeaud drove the Trailblazer, which he then used to collide with a 2015 Peterbilt tractor-trailer. After the staged accident, Labeaud fled the scene and Larry Williams got behind the wheel to make it appear that he was driving the Trailblazer during the staged accident. Solomon picked up Labeaud after the staged accident. Larry Williams told the New Orleans Police Department (“NOPD”) that he was the driver of the Trailblazer and that the tractor-trailer was at fault. After the staged accident, Labeaud introduced Larry Williams and ISREAL to Attorney A.
Larry Williams and ISREAL were treated by doctors and healthcare providers at the direction of Attorney A. On June 12, 2018, Attorney A’s firm filed the Larry Williams Lawsuit in Civil District Court (“CDC”) for the Parish of Orleans and on September 14, 2018, Attorney A’s firm demanded approximately $60,000.00 in settlement for the deceased passenger and approximately $56,155.00 in settlement for ISREAL. After the suit was filed, Larry Williams and ISREAL each provided false testimony in depositions taken in conjunction with the lawsuit filed by Attorney A’s firm.
ISREAL faces a maximum sentence of five (5) years imprisonment and/or a fine of up to $250,000 or the greater of twice the gross gain to the defendant or twice the gross loss to any person under Title 18, United States Code, Section 3571, up to three (3) years of supervised release and a mandatory $100.00 special assessment fee. Sentencing will occur before U.S. District Judge Eldon E. Fallon on November 4, 2021.
The U.S. Attorney’s Office would also like to acknowledge the assistance of the Federal Bureau of Investigation, Louisiana State Police, and the Metropolitan Crime Commission with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Chief of the Financial Crimes Unit; Assistant U.S. Attorney Edward Rivera; Assistant U.S. Attorney Shirin Hakimzadeh; and Assistant U.S. Attorney Maria Carboni.
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Spokane Man Sentenced to 70 Months for Bank Fraud Conspiracy, Mail Theft, and Aggravated Identity TheftRead the Press Release
Spokane – Joseph H. Harrington, Acting United States Attorney for the Eastern District of Washington, announced that Jonny Shineflew, age 48, of Spokane, Washington, was sentenced to a 70-month term of imprisonment after pleading guilty on March 25, 2021, to one count of Conspiracy to Commit Bank Fraud, one count of Mail Theft, and one count of Aggravated Identity Theft. United States District Judge Thomas O. Rice also imposed a five-year term of court supervision after Shineflew is released from federal prison.
According to information disclosed during court proceedings, between March 15 and July 31, 2018, Shineflew entered into an agreement with co-defendants and others to commit bank fraud. Shineflew and his co-defendants unlawfully obtained checks, altered the stolen checks, and presented the altered checks for payment at financial institutions and businesses for the use and benefit of the members of the conspiracy. Shineflew and his co-conspirators utilized computer equipment and printers to create false identifications to be used in connection with presenting the fraudulent checks for payment, at times using the identities of real people without their knowledge or consent. Shineflew was recorded passing some of the fraudulent checks on security video.
During a search of Shineflew’s apartment, which he shared with other members of the conspiracy, investigators seized computers, printers, blank identification cards, stolen checks, lists with personal identifying information for third parties, and empty envelopes for commercial checks stolen from the mail, issued in the total amount of $458,498.00. The conspiracy resulted in $29,453.15 of actual loss.
Shineflew was the last remaining defendant in this case to be sentenced. Angus Johnston, 36, of Spokane, Washington, pleaded guilty to Conspiracy to Commit Bank Fraud, Mail Theft, and Aggravated Identity Theft, and was sentenced to 60 months; Michael Slater, 48, of Spokane, Washington, pleaded guilty to Conspiracy to Commit Bank Fraud, and was sentenced to 21 months; Anthony Wright, 36, of Spokane, Washington, pleaded guilty to Conspiracy to Commit Bank Fraud, and was sentenced to 7 months; Jordan Yates, 26, of Spokane, Washington, pleaded guilty to Conspiracy to Commit Bank Fraud, and was sentenced to 99 days; Jared Pilon, 34, of Spokane, Washington, Tabitha Shineflew, 32, of Spokane, Washington, Britney McDaniel, 30, of Spokane, Washington, Andrianna McCrea, 30, of Spokane, Washington, and Tyler Bordelon, 30, of Mead, Washington, each pleaded guilty to Conspiracy to Commit Bank Fraud and were sentenced to time served. All these defendants were sentenced to a five-year term of court supervision following release from custody and ordered to pay restitution.
Acting United States Attorney Harrington said, “The sentence imposed sends a strong message. Crimes such as bank fraud, mail theft, and identity theft should not be taken lightly. The United States Attorney’s Office for the Eastern District of Washington and our federal, state, local and Tribal law enforcement partners will continue to work closely and bring to justice those individuals who may engage in such conduct. I commend the work of the United States Postal Inspector’s Office and Spokane County Sheriff’s Office who investigated this case.”
This case was investigated by the United States Postal Inspector’s Office, in cooperation with the Spokane County Sheriff’s Office. The case was prosecuted by Ann T. Wick, Assistant United States Attorney for the Eastern District of Washington.
Safety Harbor Man Who Distributed Fentanyl Causing Death to One Individual and Serious Injury to Another Sentenced to 20 Years in Federal PrisonRead the Press Release
Tampa, FL – U.S. District Judge William Jung has sentenced David Burkes (52, Safety Harbor) to 20 years’ imprisonment for distributing narcotics, resulting in death to one individual and seriously bodily injury to another.
Burkes had pleaded guilty on April 21, 2021.
According to the plea agreement, beginning on August 12, 2019, Burkes distributed fentanyl and acetyl fentanyl to two individuals (J.B. and B.G.). Both individuals snorted the substance, lost control of the vehicle they had been driving, and overdosed in a parking lot. Medical personnel responded to the scene and successfully revived B.G. The second individual (J.B.) died.
Between August 13 and 15, 2019, after the fatal overdose, Burkes continued to distribute narcotics, this time to undercover officers. The substances he distributed to the officers tested positive for fentanyl.
On August 25, 2019, Burkes was arrested by deputies from the Pinellas County Sheriff’s Office. The following day, agents executed a federal search warrant on Burke’s residence and car. The agents recovered methamphetamines, fentanyl, cocaine, and items used for packaging and distributing narcotics.
The Medical Examiner’s Office for Pasco and Pinellas Counties determined that the deceased individual’s cause of death was fentanyl toxicity.
This case was investigated by the Drug Enforcement Administration and the Pinellas County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Diego F. Novaes.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Providence Man Charged in Schemes to Defraud RI Businesses, MA FoundationRead the Press Release
PROVIDENCE, R.I. – A Providence man has been charged in federal court based on allegations that he orchestrated schemes to defraud Rhode Island businesses and a Massachusetts foundation of tens of thousands of dollars by depositing fraudulent checks drawn on the entities and quickly withdrawing the funds before it was determined by the banks that the checks were bogus, announced Acting United States Attorney Richard B. Myrus.
The government has alleged that Rachon Waite, 31, known to some as “RJ,” 31, made social media solicitations seeking persons willing to provide him with their debit cards and personal identifying number (PIN), and/or access to their bank accounts so that he could deposit fraudulent checks as part of the scheme, promising to pay them for the use of this account information.
Waite made an initial appearance in federal court this afternoon, charged by way of a federal criminal complaint with wire fraud, bank fraud, access device (ATM) fraud, and aggravated identity theft.
According to court documents, in early March 2021, a Bristol-based engineering company reported to the Bristol Police Department that a fraudulent check drawn on their business account in the amount of $23,754 had been cashed. An investigation determined that the check had been made out to and was deposited into a Coventry resident’s bank account. The bank account holder told investigators that he responded to a solicitation posted on social media by a person he came to know as “RJ,” and provided “RJ” with his debit card and PIN. The account holder agreed to let “RJ” use his bank account to deposit checks and withdraw funds, in return receiving a portion of the amount of money withdrawn. On March 19, 2021, the account holder saw that his account was overdrawn by approximately $24,000. The next day the account was closed by the bank and the remaining funds were kept by the bank, including funds from the account holder’s paycheck. The account holder was unable to contact “RJ” again and his debit card was never returned.
According to court documents, at in early March, a Wrentham, Massachusetts-based foundation reported to Wrentham Police that two fraudulent checks totaling nearly $15,000 were drawn on the foundation’s bank account and cashed. Two individuals whose accounts were identified by law enforcement as allegedly used to assist in the fraud described a similar scheme to that which defrauded the Bristol engineering company. They too communicated with “RJ” and provided him with their debit cards and PINs, in return for the promise of a portion of funds deposited into and withdrawn from their accounts. A description of the person with whom the account holders met with matched the description of the person who allegedly facilitated the fraud against the Bristol company.
A Coventry woman who allegedly provided “RJ” with her debit card and PIN was allegedly paid $2,000 for the use of her banking information when “RJ” withdrew $7,000 from the woman’s account. He allegedly deposited a fraudulent foundation check for $7,417,14. A Johnston man who allegedly provided his ATM card and PIN to “RJ” never heard from “RJ” again. It is alleged that Waite deposited a fraudulent foundation check for $7,117.40 into the Johnston man’s account and withdrew most of the funds.
Rachon Waite was released to the custody of OpenDoors RI following his initial appearance in U.S. District Court. A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant United States Attorney Denise M. Barton.
The matter was investigated by the FBI, Bristol Police Department, and Wrentham Police Department.
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Previously convicted felon pleads guilty to federal firearms chargeRead the Press Release
ALBUQUERQUE, N.M. – Eduardo Zazueta, 25, pleaded guilty on July 30 in federal court to being a felon in possession of a firearm and ammunition. Zazueta will remain in custody pending sentencing, which has not been scheduled.
Zazueta was indicted on Nov. 17, 2020. According to the indictment and other court records, on Sept. 30, 2020, in Bernalillo County, New Mexico, Zazueta sold a 9mm handgun to an undercover agent. Zazueta had been convicted previously of possession of a controlled substance and trafficking in controlled substances. As a previously convicted felon, Zazueta cannot legally possess firearms or ammunition.
Zazueta faces up to 10 years in prison.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case. Assistant U.S. Attorney Jaymie L. Roybal is prosecuting the case.
Previously Deported Alien Sentenced to 12 Months’ Imprisonment for Illegal Re-EntryRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on July 30, 2021, Pablo Ramirez-Hernandez, age 35, was sentenced to 12 months and one day of imprisonment followed by one-year of supervised release, by United States District Court Judge Christopher C. Conner for illegal re-entry of a previously deported alien.
According to Acting United States Attorney Bruce D. Brandler, Ramirez-Hernandez previously pleaded guilty to having illegally reentered the United States sometime after his last removal in August 2009 after eluding examination or inspection by immigration officers.
This matter was investigated by U.S. Immigration and Customs Enforcement and Removal Operations (ERO). Assistant United States Attorney Joanne M. Sanderson prosecuted the case.
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Port Arthur Felon Guilty of Federal Firearms ViolationRead the Press Release
BEAUMONT, Texas – A Port Arthur man has pleaded guilty to a federal firearms violation in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Jesus Antonio Ceja, 30, pleaded guilty to being a felon in possession of a firearm today before U.S. District Judge Marcia A. Crone.
“I am grateful for the good work of the Port Arthur Police Department and the ATF in bringing this matter to a successful conclusion,” said Acting U.S. Attorney Nicholas J. Ganjei. “Violent felons cannot be allowed to possess firearms, and today’s guilty plea represents another step forward in making the streets of Port Arthur safer.”
According to court documents, on Feb. 9, 2020, law enforcement officers observed a vehicle stopped at an intersection in 5200 block of 15th Street in Port Arthur. As the officer approached the vehicle, he saw the driver, later identified as Ceja, with his head down. The officer drove towards the vehicle to see if the driver was in need of assistance, at which time Ceja looked at the officer and accelerated away at a high rate of speed. As the officer turned around to follow the vehicle, he saw that Ceja had crashed his vehicle into a pole at the nearby intersection of Lewis and Lakeview streets. Ceja repeatedly reached under the seat and ignored commands to show his hands and exit the vehicle. After the officer opened the passenger door, Ceja exited the vehicle and crawled on top of it, refusing to come down. Once other officers arrived, Ceja came down off the car and told officers there was methamphetamine and a firearm in the car. Further investigation revealed Ceja was a convicted felon having previously been found guilty of felony escape in Jefferson County in 2008. As a convicted felon, Ceja is prohibited from owning or possessing firearms or ammunition.
Ceja was indicted by a federal grand jury on April 27, 2021. He faces up to 10 years in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is being investigated by the Port Arthur Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorney Matthew Quinn.
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Philadelphia Man Charged with Forcible Sex Trafficking of Multiple Victims Including a MinorRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Kevin Smith, 27, of Philadelphia, PA, was charged by Indictment with sex trafficking by force and sex trafficking a minor. The charges against the defendant stem from his operation of a sex trafficking ring in Philadelphia and the surrounding region—including Bucks and Delaware counties.
The Indictment alleges that for about seven days at the end of September 2019, Smith knowingly recruited, enticed, harbored, transported, maintained a minor for the purposes of forcing that minor to engage in commercial sex acts in Philadelphia. It also alleges that Smith operated a sex trafficking enterprise at various times over a period of two years from July 2015 to July 2017, during which he used physical threats to force three different young adult victims to have sex for money.
“The crimes Smith is accused of committing are some of the most devastating to victims that our office prosecutes,” said Acting U.S. Attorney Williams. “Allegedly, this defendant forced four young people, one a minor child, to sell their bodies for his financial gain. We will continue to work collectively to investigate these destructive crimes against the most vulnerable victims.”
“Using physical threats to control another human being, to force them into sexual exploitation, is unconscionable,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “Kevin Smith allegedly did just that to three young women — and a child. The FBI will never stop working to find and help trafficked victims, to protect them from further abuse and keep their traffickers from hurting anyone else.”
If convicted, the defendant faces a maximum possible sentence of life in prison.
The case was investigated by the Federal Bureau of Investigation, with assistance from the Delaware County District Attorney’s Office, the Bensalem Police Department, the Media Borough Police Department, the Tinicum Township Police Department and the Philadelphia Police Department. The case is being prosecuted by Assistant United States Attorneys David Metcalf and Brittany Jones.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pasadena Man Sentenced to 25 Years in Federal Prison for Shooting and Killing Victim During a Carjacking in South BaltimoreRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett today sentenced Collin Davis, age 34, of Pasadena, Maryland, to 25 years in federal prison, followed by five years of supervised release, for the federal charge of carjacking resulting in death, related to Davis’ carjacking and murder in Baltimore of an individual who he knew and had attempted to carjack.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Timothy Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; and Commissioner Michael Harrison of the Baltimore Police Department.
“Collin Davis will spend 25 years in federal prison because he brutally murdered another human being with a firearm in the process of trying to carjack him,” said Acting U.S. Attorney Jonathan Lenzner. “This is the kind of senseless violence that is plaguing our communities. This sentence demonstrates we will always hold murderers like Davis accountable.”
According to his guilty plea, on September 15, 2018, the victim drove to Curtis Bay, Maryland to pick up Davis. After Davis entered the victim’s vehicle, Davis and the victim traveled to Severn, Maryland, where the victim lived. Approximately one hour later, the two drove back to Curtis Bay. At some point during the drive, the victim’s vehicle was stopped, and Davis took control of the victim’s vehicle by force. Davis handcuffed the victim by tying a shirt around the victim’s hands behind the victim’s back. Davis’s DNA was left behind on the car’s steering wheel and inside the knot of the shirt used to tie the victim’s hands.
As detailed in the plea agreement, while Davis drove the victim’s car back to Curtis Bay, the victim attempted to break free from the makeshift handcuffs. The vehicle was stopped near the 5100 block of Curtis Avenue and Davis shot the victim five times with lethal intent. The victim died as a result of the gunshot wounds. Davis admitted that the victim died as a result of his carjacking of the victim’s car.
A witness observed the victim’s body being dragged from the vehicle onto the street and called law enforcement. Police officers responding to the call discovered the victim’s body in the street.
After abandoning the victim’s body, Davis parked the victim’s vehicle in an alley almost directly behind an apartment where Davis had lived only weeks before the murder. Davis then fled the Curtis Bay area. The following day, law enforcement discovered the victim’s vehicle, which contained bullet holes from the murder the night before.
Davis was arrested in November 2018.
Acting United States Attorney Jonathan F. Lenzner commended the ATF, the FBI, and the Baltimore Police Department for their work in the investigation and thanked the Office of the State’s Attorney for Baltimore City for its assistance. Mr. Lenzner thanked Assistant U.S. Attorneys Patricia McLane and Lindsey McCulley, who prosecuted the case.
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Palm Beach man found guilty of receiving child pornography and transporting minor for sexRead the Press Release
Miami, Florida – Following a bench trial in West Palm Beach last week, United States District Judge Donald Middlebrooks found a Palm Beach county man guilty of receiving child pornography and transporting a minor with intent to engage in criminal sexual activity.
At trial, Assistant U.S. Attorneys Elena Smukler and Dayron Silverio proved that 39-year-old Mauricio Gonzalez was involved in an unlawful sexual relationship with a 17-year-old Bahamian girl who was being sex trafficked. According to the evidence they presented at trial, the victim was in the United States in 2020. During that time, Gonzalez had sex with the girl on several occasions. The two then began an unlawful sexual and “romantic” relationship, which continued after the victim left the United States. While the victim was in the Bahamas, Gonzalez requested sexual images from her, asked her to participate in live sexual video streams, and otherwise primed their relationship so as to convince the girl to produce sexualized digital content. Ultimately, the victim recorded a sexually explicit video of herself and sent it to Gonzalez through a messenger application. Gonzalez flew the victim from the Bahamas to the United States for sex.
Judge Middlebrooks will sentence Gonzalez on October 4, at 10:30 a.m., at the West Palm Beach federal courthouse. He faces a maximum of life imprisonment, with a 10 year minimum mandatory for transportation of a minor with intent to engage in criminal sexual activity and a 5 year minimum mandatory for receipt of child pornography.
Juan Antonio Gonzalez, Acting United States Attorney for the Southern District of Florida, and Anthony Salisbury, Special Agent in Charge, Homeland Security Investigations (HSI), Miami Field Office, made the announcement.
HSI Miami and Palm Beach County Sheriff’s Office 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 Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov, under case no. 21-cr-80087.
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Orangevale Man Pleads Guilty to Distribution of Child PornographyRead the Press Release
SACRAMENTO, Calif. — Daniel Wayne Benner, 35, pleaded guilty today to distribution of child pornography, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, between July 3 and 5, 2019, Benner distributed child pornography, using the Kik Messenger app. Benner used a smartphone, the internet, and Kik messenger to distribute to a person located in Arkansas a video and still images depicting minors engaging in sexually explicit conduct.. At the time of his arrest, Benner’s publicly accessible Facebook profile included a picture of a “My Little Pony” costume with a caption reading, “Rainbow Dash is looking to come to your birthday party, and she brings candy and music … contact me for quotes / She will travel anywhere in Sacramento County.” Benner stated that he and two friends were going to start a birthday party business but were unable to secure any customers.
This case is the product of an investigation by the FBI and the Internet Crimes Against Children Task Force, a federally and state-funded task force managed by the Sacramento Sheriff’s Department with agents from federal, state, and local agencies. The Sacramento ICAC investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. Assistant U.S. Attorney Christina McCall is prosecuting the case.
Benner is scheduled to be sentenced by U.S. District Judge Kimberly J. Mueller on Oct. 25, 2021. Benner faces a mandatory minimum sentence of five years and a maximum statutory penalty of 20 years in prison, a $250,000 fine, and up to a lifetime of supervised release. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
North Georgia Health Clinic and its CEO agree to pay $130,000.00 to settle False Claims Act allegations that they issued medically unnecessary opioid prescriptionsRead the Press Release
ATLANTA – North Georgia Healthcare Center, Inc. (“NGHC”), a Ringgold, Georgia, based nonprofit corporation and healthcare provider, as well as its CEO, Delaine Hunter, have agreed to pay $130,000.00 dollars to settle allegations that they violated the False Claims Act by causing the submission – between January 1, 2012 and September 10, 2018 – of medically unnecessary claims for Schedule II controlled substances to the United States and State of Georgia. Specifically, the Complaint alleges that Dr. Gary Smith, a former NGHC physician, improperly prescribed opioids without appropriate medical review and judgment of medical necessity.
“Medical professionals are trusted to prescribe controlled substances in compliance with the law and in a manner that protects the health and safety of their patients,” said Acting U.S. Attorney Kurt R. Erskine. “We will continue to vigorously pursue those who breach that trust using every tool at our disposal.”
“Healthcare fraud is not a victimless crime, with fraudsters often preying on beneficiaries across the country. Especially insidious is the fraud committed by heath care practitioners who are trusted to prescribe only medically necessary, quality services to patients,” said Special Agent in Charge Derrick L. Jackson of the Department of Health and Human Services Office of Inspector General. “Working closely with our law enforcement partners, our agency will continue to protect the public by holding those responsible for such schemes responsible for their actions.”
“We are fighting the opioid epidemic on many fronts, including holding those accountable who improperly prescribe without appropriate medical review and judgment,” said Georgia Attorney General Chris Carr. “These types of allegations will receive our full attention because of the potential harm to Georgians and the improper use of taxpayer dollars.”
“The opioid addiction crisis in this country affects everyone to include the military and their families,” stated Special Agent in Charge Cynthia A. Bruce, Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Southeast Field Office. “This settlement is another step forward in striking at the heart of physician assisted addiction and holding those medical professionals accountable for unethical service.”
To be reimbursable under Government insurance programs such as Medicare, Medicaid and Tricare, drugs prescribed by a physician must be (1) rendered pursuant to the prescriber’s medical judgment, and (2) reasonable and medically necessary. Additionally, under Georgia law, only physicians – and not mid-level practitioners such as physician assistants – can write prescriptions for Schedule II drugs, which includes, but is not limited to, opioids such as oxycodone and hydrocodone. Where a physician assistant interacts with a patient and concludes that the patient requires a Schedule II drug, the doctor that supervises the physician assistant must concur that the pertinent Schedule II drug is medically necessity and must sign the associated prescription.
The Government alleges that physician assistants – and not Dr. Smith –saw most of the patients at NGHC. Dr. Smith only visited NGHC one afternoon per week, and rarely saw patients or reviewed their charts. The Government further alleges that Dr. Smith routinely signed stacks of prescriptions (which included, but were not limited to, prescriptions for Schedule II drugs) for patients that he had neither seen nor otherwise evaluated. Finally, the Government alleges that NGHC’s CEO failed to promptly address this behavior once alerted to it by several NGHC employees.
Dr. Smith, in a separate settlement agreement with the United States Department of Health and Human Services – Office of Inspector General, has agreed to a voluntary 10 year exclusion from participation in all federal healthcare programs. As result, both Dr. Smith and any provider using Dr. Smith’s services will be unable to obtain reimbursement for care provided to any patients insured under a government healthcare program, such as Medicare, Medicaid and Tricare.
The settlement resolves a lawsuit filed in the U.S. District Court for the Northern District of Georgia by a former NGHC employee under the qui tam or whistleblower provisions of the False Claims Act, which permit private citizens to bring lawsuits on behalf of the United States and obtain a portion of the government’s recovery. The case is captioned United States and Georgia ex rel. Krysta Mangrum v. LabCorp, et al. (Civil Action No. 1-18-cv-312). The claims resolved by this settlement are allegations only and there has been no determination of liability.
This matter was investigated by the U.S. Attorney’s Office for the Northern District of Georgia, the Georgia Medicaid Fraud Control Unit, the U.S. Department of Health and Human Services – Office of Inspector General and the Defense Criminal Investigative Service of the U.S. Department of Defense – Office of Inspector General.
Assistant U.S. Attorney Paris A. Wynn and Assistant Attorney General Sara Vann handled this matter.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is https://www.justice.gov/usao-ndga/.
North Carolina Tax Preparer Pleads Guilty to Preparing False ReturnsRead the Press Release
A Winston-Salem, North Carolina, tax preparer pleaded guilty today to aiding and assisting in the preparation of a false tax return and to filing a false personal income tax return.
According to court documents, from 2014 to 2019, Nicholas Laws managed the Winston-Salem branch of Tax Mind, a tax-return preparation business. During that period, Laws prepared fraudulent returns for clients that reported false wages and business incomes to increase the clients’ refunds. Laws charged additional fees to prepare false returns with fees occasionally exceeding $1,000. Laws also filed a false personal income tax return for 2014 and did not file tax returns reporting his income for 2015 through 2019, despite having an obligation to do so. Laws intended to cause a tax loss to the IRS of $2,934,891.
Laws is scheduled to be sentenced on Oct. 20, 2021. Laws faces a statutory maximum sentence of three years in prison for assisting in the preparation of a false tax return and three years in prison for filing a false personal income tax return, as well as a period of supervised release, restitution and monetary penalties. Laws agreed in his plea agreement to pay restitution to the IRS in the amount of $184,072. 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 and Acting U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Brian Flanagan and Kevin Schneider of the Tax Division and Assistant U.S. Attorney Cliff Barrett of the Middle District of North Carolina are prosecuting the case.
North Carolina Tax Preparer Pleads Guilty to Preparing False ReturnsRead the Press Release
A Winston-Salem, North Carolina, tax preparer pleaded guilty today to aiding and assisting in the preparation of a false tax return and to filing a false personal income tax return.
According to court documents, from 2014 to 2019, Nicholas Laws managed the Winston-Salem branch of Tax Mind, a tax-return preparation business. During that period, Laws prepared fraudulent returns for clients that reported false wages and business incomes to increase the clients’ refunds. Laws charged additional fees to prepare false returns with fees occasionally exceeding $1,000. Laws also filed a false personal income tax return for 2014 and did not file tax returns reporting his income for 2015 through 2019, despite having an obligation to do so. Laws intended to cause a tax loss to the IRS of $2,934,891.
Laws is scheduled to be sentenced on Oct. 20, 2021. Laws faces a statutory maximum sentence of three years in prison for assisting in the preparation of a false tax return and three years in prison for filing a false personal income tax return, as well as a period of supervised release, restitution and monetary penalties. Laws agreed in his plea agreement to pay restitution to the IRS in the amount of $184,072. 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 and Acting U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Brian Flanagan and Kevin Schneider of the Tax Division and Assistant U.S. Attorney Cliff Barrett of the Middle District of North Carolina are prosecuting the case.
New Orleans Man Pleads Guilty to Violating the Federal Controlled Substances Act and the Federal Gun Control ActRead the Press Release
NEW ORLEANS, LOUISIANA – RONALD JACOBS, age 38, of New Orleans, Louisiana, pleaded guilty today before the Honorable Jay C. Zainey to an indictment charging him with violating the Federal Controlled Substances Act and the Federal Gun Control Act, announced U.S. Attorney Duane A. Evans.
According to the court records, JACOBS was arrested after concerned citizens reported his vehicle stopped in a travel lane on Williams Boulevard in Kenner. Kenner Police responded and found JACOBS asleep in the vehicle with what appeared to be drugs in his lap. When the officers made contact with JACOBS, he attempted to flee by ramming his vehicle into the officers’ vehicles and was reaching for an area in his truck where the officers later found a pistol. In addition to the loaded gun, officers also located 14 grams of crack, a digital scale, a razor blade, and about $1,100. JACOBS admitted that he possessed the crack for distribution.
Sentencing is scheduled for November 2, 2021. On the possession of crack with the intent to distribute charge, JACOBS faces a term of imprisonment of up to twenty years, a fine of up to $1,000,000, and at least three years of supervised release. On the related gun charge, JACOBS faces a term of imprisonment of at least five years up to life in prison, which must run consecutively to any term of imprisonment on the drug charge, a fine of up to $250,000, and up to five years of supervised release. There is also a mandatory special assessment of $100 per count.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Kenner Police Department and Special Agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). The prosecution is being handled by Assistant United States Attorney David Haller.
New Jersey Man Sentenced to Prison after Pleading Guilty to Posting Restricted Information to Social MediaRead the Press Release
PITTSBURGH - A resident of Paramus, New Jersey, pleaded guilty and was sentenced in federal court in relation to a charge of making restricted information publicly available, Acting United States Attorney Stephen R. Kaufman announced today.
William Kaetz, age 56, pleaded guilty to one count before United States District Judge J. Nicholas Ranjan.
In connection with the guilty plea, the court was advised that on October 18, 2020, Kaetz publicly posted the home address of a United States District Court Judge to the social media sites Facebook and Twitter, and did so with the intent to threaten or intimidate, or with the intent and knowledge that others would use the information to threaten or intimidate, said judge.
Following the guilty plea hearing, Judge Ranjan sentenced Kaetz to a term of imprisonment of 16 months, with three years’ supervised release and a fine of $5000.
Assistant United States Attorneys Tonya Sulia Goodman and Cindy K. Chung prosecuted this case on behalf of the government.
Acting United States Attorney Kaufman commended the Federal Bureau of Investigation and the United States Marshals Service for the investigation leading to the successful prosecution of Kaetz.
Navajo man sentenced to two years in prison for assault with a dangerous weapon in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Darrin Begay, 29, and an enrolled member of the Navajo Nation, was sentenced by a federal judge on July 27 to two years and three months in prison for assault with a dangerous weapon in Indian Country. Begay pleaded guilty on Dec. 16, 2020.
According to his plea agreement and other court records, Begay had been living in an inoperable car on the property of his girlfriend’s family in Shiprock, New Mexico, on the Navajo Nation. Begay was not allowed in his girlfriend’s family’s home. The night of August 22, 2020, after arguing via text messages with his girlfriend, identified in court records as Jane Doe, Begay went to her bedroom window and threatened to break the window if she did not let him in. She relented and let him in through the window, but they argued because she did not want him there.
Jane Doe eventually fell asleep, but upon waking in the morning found that her necklace and other belongings were missing. An argument ensued and Begay pulled a pocketknife from his pocket and slashed her right leg. Jane Doe left the house, but Begay followed her, knocked her down and kicked her multiple times. Begay again threatened her with a pocketknife. Navajo Police arrived and arrested Begay at the scene. Jane Doe was transported to the Northern Navajo Medical Center in Shiprock where she was treated for her injuries.
Upon his release from prison, Begay will be subject to two years of supervised release.
The Farmington Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Department of Criminal Investigations. Assistant U.S. Attorney Alexander F. Flores prosecuted the case.
Mexican Citizen Sentenced to 15 Years in Federal Prison for Production of Child PornographyRead the Press Release
Spokane – Joseph H. Harrington, Acting United States Attorney for the Eastern District of Washington, announced Juan Carlos Sandoval-Guerrero, age 21, a citizen of Mexico, was sentenced today, after pleading guilty to production and attempted production of child pornography, on April 1, 2021. United States District Judge Salvador Mendoza, Jr. sentenced Sandoval-Guerrero to a 15-year term of imprisonment, to be followed by a lifetime term of court supervision after he is released from federal prison. Sandoval-Guerrero was also ordered to pay $53,040.00 in restitution to his victims.
According to information disclosed during court proceedings, Homeland Security Investigations (HSI) began investigating Sandoval-Guerrero after law enforcement received a complaint from a concerned local mother. The mother expressed concern regarding interactions her nine-and eleven-year-old sons were having with a person she believed to be an adult over Xbox.
Through further investigation, HSI determined that Sandoval-Guerrero had been using Xbox to encourage the boys to engage in sexually-explicit activities, to video and photograph those activities, and send the images to him. Sandoval-Guerrero also communicated with the eleven-year-old boy via an application called TextNow.
On February 6, 2020, HSI executed a warrant to search Sandoval-Guerrero’s Grandview, Washington, residence, and seized numerous electronic devices that contained images of child pornography involving the boys. Officers transported Sandoval-Guerrero to the Grandview Police Department where he was interviewed. Sandoval-Guerrero admitted contacting the boys through the video game “Fortnite.” Sandoval-Guerrero also admitted that he requested and directed the boys to produce sexually-explicit images and videos.
At sentencing Judge Mendoza said “This is a very serious offense. The effects of the offense are not limited to those instances, those moments with the children. The brain of a 9, 11-year old is just developing. It has severe life-long impacts – what happens to them at that age. Impacts that you caused. You did it.”
Acting United States Attorney Harrington said, “The United States Attorney’s Office for the Eastern District of Washington, in collaboration with its federal, state, local and tribal law enforcement partners, uses every resource and tool available to investigate and prosecute aggressively those involved in child exploitation. This Office will continue to do all we can to protect vulnerable child victims of these horrible crimes.”
This case was pursued as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. The Project Safe Childhood Initiative (“PSC”) has five major components:
· Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue children;
· Participation of PSC partners in coordinated national initiatives;
· Increased federal enforcement in child pornography and enticement cases;
· Training of federal, state, and local law enforcement agents; and
· Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
This case was investigated by Homeland Security Investigations, the Benton County Sheriff’s Office, and the Southeast Regional ICAC. This case was prosecuted by Alison Gregoire and Brian Donovan, Assistant United States Attorneys for the Eastern District of Washington.
Mexican Citizen Pleads Guilty to Transporting 10 Lbs. of Methamphetamine and Illegal Possession of a FirearmRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that MARTIN ALMEDA-PINEDA, age 37, of Mexico, pled guilty as charged on July 28, 2021 to a three-count indictment. He was charged in Count 1 with possession with the intent to distribute 500 grams or more of methamphetamine, in violation of Title 21, United States Code, Section 841(a)(1) and (b)(1)A); Count 2 with possessing a firearm in furtherance of his drug trafficking activities, in violation of Title 18, United States Code, Section 924(c); and charged in Count 3 with being an illegal alien in possession of a firearm, in violation of Title 18, United States Code, Section 922(g)(5)(A). His sentencing is set for October 27, 2021 at 9:30 am before United States District Court Judge Jane Triche Milazzo.
He will face a sentence of 10 years to life in prison and a term of not less than 5 years of supervised release for Count 1; a consecutive sentence of five years to life in prison and not more than five years of supervised release for Count 2; and up to 10 years imprisonment and not more than 3 years of supervised release for Count 3. He will also have to pay a total of $300.00 in mandatory special assessment costs.
According to the documents that were placed into the court record during his guilty plea, the defendant was arrested by St. Tammany Parish Sheriff Detectives after they conducted a lawful traffic stop of his vehicle and found 10 lbs. of methamphetamine in the back seat of his vehicle and a firearm in the center console. The detectives conducted the stop based off of information that they learned about the defendant from Special Agents with the Department of Homeland Security, who had knowledge that the defendant would be transporting a significant amount of drugs to the Eastern District of Louisiana.
U. S. Attorney Evans praised the work of the Department of Homeland Security and the St. Tammany Parish Sheriff’s Office in working together to investigate this matter. The case is being prosecuted by Assistant United States Attorney Maurice E. Landrieu, Jr.
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Mars Hill Man Pleads Guilty to Federal Drug ChargeRead the Press Release
BANGOR, Maine: A Mars Hill man pleaded guilty in federal court today to conspiring to distribute and possess with intent to distribute methamphetamine, Acting U.S. Attorney Donald E. Clark announced.
According to court records, between approximately July 2018 and May 2019, members of the conspiracy obtained methamphetamine in western and southern states from sources in Mexico. Josh Cook, 26, and his co-conspirators then distributed the drugs in Aroostook County and other parts of central and northern Maine.
Cook faces up to 20 years in prison and a fine of up to $1 million. He also faces between 3 years and a lifetime of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The U.S. Drug Enforcement Administration, Homeland Security Investigations and the Maine Drug Enforcement Agency investigated this case with the assistance of multiple state and local law enforcement agencies.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Mail-Order Diabetic Testing Supplier and Parent Company Agree to Pay $160 Million to Resolve Alleged False Claims to MedicareRead the Press Release
Arriva Medical LLC (Arriva), at one point the nation’s largest Medicare mail-order diabetic testing supplier, and its parent, Alere Inc. (Alere), have agreed to pay $160 million to resolve allegations that they violated the False Claims Act.
Until it ceased business operations in December 2017, Arriva was a mail-order diabetic testing supply company based in Coral Springs, Florida. Alere is a medical device company now based in Abbott Park, Illinois. Alere acquired Arriva in November 2011. The settlement resolves allegations that Arriva and Alere made, or caused, claims to Medicare that were false because kickbacks were paid to Medicare beneficiaries, patients were ineligible to receive meters, or patients were deceased.
“Paying illegal inducements to Medicare beneficiaries in the form of free items and routine copayment waivers can result in overutilization and waste taxpayer funds,” said Acting Assistant Attorney General Brian M. Boynton for the Justice Department’s Civil Division. “We will continue to protect the integrity of the Medicare program by pursuing fraudulent claims arising from violations of the Anti-Kickback Statute or other applicable reimbursement requirements.”
The United States alleged that, from April 2010 until the end of 2016, Arriva, with Alere’s approval, paid kickbacks to Medicare beneficiaries by providing them “free” or “no cost” glucometers and by routinely waiving, or not collecting, their copayments for meters and diabetic testing supplies. Specifically, the United States alleged that Arriva advertised that glucometers would be “free,” and then during intake calls offered Medicare beneficiaries a “no cost guarantee,” under which Arriva would provide the meters at “no cost” if Medicare denied payment, which typically happened because the beneficiaries were not yet entitled to a new glucometer paid for by Medicare. Arriva also allegedly offered and provided existing customers “free” additional meters to induce them to reorder testing supplies from Arriva.
Arriva also allegedly routinely waived, and failed to make reasonable efforts to collect, Medicare copayments. It allegedly failed to send invoices to beneficiaries, and failed to take other basic steps, like sending collection letters or making phone calls, to collect copayments. Specifically, Arriva allegedly systematically waived “small” dollar copayments without informing beneficiaries of their copayment obligations by sending them an invoice, and allegedly automatically waived other unpaid copayments after sending no more than three invoices seeking payment and making no other collection efforts. Arriva also allegedly waived copayments when customers complained that Arriva had advertised and otherwise indicated that their supplies would be free or at no cost.
“The False Claims Act and related statutes exist to protect the public fisc and to ensure companies do not benefit from unfair competition by gaining an illegal advantage over competitors,” said Acting U.S. Attorney Mary Jane Stewart for the Middle District of Tennessee. “When companies engage in such practice, they can expect to be held accountable for their actions.”
“Engaging in activities that result in the submission of false claims to Medicare diverts funding from the necessary treatment and medical supplies beneficiaries need,” said Special Agent in Charge Derrick L. Jackson of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “We will continue working with our law enforcement partners to hold accountable those who seek to enrich themselves by submitting false claims to federal health care programs.”
“The TBI is diligent in pursuing false claims allegations such as these,” said Director David Rausch of the Tennessee Bureau of Investigation. “The partnership we have with our federal counterparts is key in combating healthcare fraud.”
The settlement also resolves allegations that Arriva and Alere caused the submission of false claims to Medicare for glucometers because Arriva, with Alere’s approval, allegedly systematically provided to all of its new patients, and billed Medicare for, a meter without regard to the patients’ eligibility for one. Medicare beneficiaries are only eligible to seek reimbursement for a new meter once every five years. Arriva also allegedly repeatedly billed Medicare for new meters for existing patients where Arriva itself had previously billed Medicare for meters for those patients within the five-year window.
Finally, the settlement resolves claims that Arriva submitted false claims to Medicare on behalf of deceased beneficiaries. In November 2016, the Medicare program revoked Arriva’s Medicare supplier number for doing so.
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Gregory Goodman, a former employee at an Arriva call center in Antioch, Tennessee. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The Act also permits the United States to intervene and take over the litigation of such actions, as the United States did here. Mr. Goodman will receive $28,548,749 as his share of the recovery. The qui tam case is captioned United States ex rel. Goodman v. Arriva Medical LLC et al., Case No. 3:13-cv-00760 (M.D. Tenn.).
Arriva’s founders, David Wallace and Timothy Stocksdale, previously paid $1 million to resolve allegations that they participated in the kickback scheme. Ted Albin and Albin’s company, Grapevine Billing and Consulting Services Inc., are not parties to the settlement and remain defendants in the ongoing litigation. The United States filed suit against Albin and Grapevine shortly after it intervened in the qui tam action against Arriva and Alere.
The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, the U.S. Attorney’s Office for the Middle District of Tennessee, HHS-OIG, and the Tennessee Bureau of Investigation.
The investigation and resolution of this matter illustrate the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste abuse, and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The matter was handled by Trial Attorney Jake M. Shields of the Civil Division and Assistant U.S. Attorney Ellen Bowden McIntyre of the Middle District of Tennessee.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Mail-Order Diabetic Testing Supplier and Its Parent Company Agree to Pay $160 Million to Resolve Alleged False Claims to MedicareRead the Press Release
NASHVILLE – Arriva Medical, LLC (Arriva), at one point the nation’s largest Medicare mail-order diabetic testing supplier, and its parent, Alere Inc. (Alere), have agreed to pay $160 million to resolve allegations that they violated the False Claims Act. Until it ceased business operations in December 2017, Arriva was a mail-order diabetic testing supply company based in Coral Springs, Florida and one of the largest such mail order diabetic supply companies in the nation. Alere is a medical device company now based in Abbott Park, Illinois, which acquired Arriva in November 2011. The settlement resolves allegations that Arriva and Alere made, or caused, claims to Medicare that were false because of kickbacks to Medicare beneficiaries, because patients were ineligible to receive meters, or because patients were deceased.
“The False Claims Act and related statutes exist to protect the public fisc and to ensure companies do not benefit from unfair competition by gaining an illegal advantage over competitors,” said Acting U.S. Attorney Mary Jane Stewart. “When companies engage in such practice, they can expect to be held accountable for their actions.”
“Paying illegal inducements to Medicare beneficiaries in the form of free items and routine copayment waivers can result in overutilization and waste taxpayer funds,” said Acting Assistant Attorney General Bryan M. Boynton for the Justice Department’s Civil Division. “We will continue to protect the integrity of the Medicare program by pursuing fraudulent claims arising from violations of the Anti-Kickback Statute or other applicable reimbursement requirements.
The United States alleged that, from April 2010 until the end of 2016, Arriva, with Alere’s approval, paid kickbacks to Medicare beneficiaries by providing them “free” or “no cost” glucometers and by routinely waiving, or not collecting, their copayments for these meters and other diabetic testing supplies. Specifically, the United States alleged that Arriva advertised that glucometers would be “free,” and then during intake calls offered Medicare beneficiaries a “no cost guarantee,” under which Arriva would provide the meters at “no cost” if Medicare denied payment, which typically happened because the beneficiaries were not yet entitled to a new glucometer paid for by Medicare. Arriva also allegedly offered and provided existing customers “free” additional meters to induce them to reorder testing supplies from Arriva.
Arriva also allegedly routinely waived, and failed to make reasonable efforts to collect, Medicare copayments. It allegedly failed to send invoices to beneficiaries, and failed to take other basic steps, like sending collection letters or making phone calls, to collect copayments. Specifically, Arriva allegedly systematically waived “small” dollar copayments without informing beneficiaries of their copayment obligations by sending them an invoice, and allegedly automatically waived other unpaid copayments after sending no more than three invoices seeking payment and making no other collection efforts. Arriva also allegedly waived copayments when customers complained that Arriva had advertised and otherwise indicated that their supplies would be free or at no cost.
“Engaging in activities that result in the submission of false claims to Medicare diverts funding from the necessary treatment and medical supplies beneficiaries need,” said Special Agent in Charge Derrick L. Jackson, U.S. Department of Health and Human Services Office of Inspector General. “We will continue working with our law enforcement partners to hold accountable those who seek to enrich themselves by submitting false claims to federal healthcare programs.”
“The TBI is diligent in pursuing false claims allegations such as these,” said Director David Rausch of the Tennessee Bureau of Investigation. “The partnership we have with our federal counterparts is key in combating healthcare fraud.”
The settlement also resolves allegations that Arriva and Alere caused the submission of false claims to Medicare for glucometers because Arriva, with Alere’s approval, allegedly systematically provided to all of its new patients, and billed Medicare for, a meter without regard to the patients’ eligibility for one. Medicare beneficiaries are only eligible to seek reimbursement for a new meter once every five years. Arriva also allegedly repeatedly billed Medicare for new meters for existing patients where Arriva itself had previously billed Medicare for meters for those patients within the five-year window.
Finally, the settlement resolves claims that Arriva submitted false claims to Medicare on behalf of deceased beneficiaries. In November 2016, the Medicare program revoked Arriva’s Medicare supplier number for doing so.
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Gregory Goodman, a former employee at an Arriva call center in Antioch, Tennessee. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The Act also permits the United States to intervene and take over the litigation of such actions, as the United States did here. Mr. Goodman will receive $28,548,748.98 as his share of the recovery. The qui tam case is captioned United States ex rel. Goodman v. Arriva Medical LLC et al., Case No. 3:13-cv-00760 (M.D. Tenn.).
Arriva’s founders, David Wallace and Timothy Stocksdale, previously paid $1 million to resolve allegations that they participated in the kickback scheme. Ted Albin and Albin’s Florida-based company, Grapevine Billing and Consulting Services, Inc., are not parties to the settlement and remain defendants in the ongoing litigation. The United States filed suit against Albin and Grapevine shortly after it intervened in the qui tam action against Arriva and Alere.
The settlement of this case is the largest single False Claims Act settlement by the U.S. Attorney’s Office for the Middle District of Tennessee and one of the largest settlements for allegations of kickbacks involving durable medical equipment in the United States.
The resolution obtained in this matter was the result of a coordinated effort between the U.S. Attorney’s Office for the Middle District of Tennessee, the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, the U.S. Department of Health and Human Services Office of Inspector General, and the Tennessee Bureau of Investigation.
The investigation and resolution of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The matter was handled by Assistant U.S. Attorney Ellen Bowden McIntyre of the Middle District of Tennessee and Trial Attorney Jake M. Shields of the Civil Division.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
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Leader of Drug Trafficking Organization Sentenced to 11 Years in Federal Prison for Trafficking Kilograms of Cocaine in Maryland and Bribing U.S. Postal Letter CarriersRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paula Xinis sentenced Russell Stanley III, age 40, of Bowie, Maryland, today to 11 years in federal prison, followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute cocaine, conspiracy to commit an offense against the United States, and bribery of a government official.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Postal Inspector in Charge Daniel A. Adame of the U.S. Postal Inspection Service - Washington Division; Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration, Baltimore District Office; Special Agent in Charge Imari R. Niles of the U.S. Postal Service, Office of Inspector General; and Chief Malik Azziz of the Prince George’s County Police Department.
“Russell Stanley and his co-conspirators received kilograms of cocaine through the mail and bribed U.S. Postal Service letter carriers to help their narcotics operation,” said Acting United States Attorney Jonathan Lenzner. “This drug trafficking organization not only polluted our communities with dangerous narcotics, it also corrupted postal carriers who facilitated the organization’s illegal business. We are committed to targeting those who supply and distribute illegal narcotics in Maryland and as well as those government employees who knowingly assist drug dealers. This case reflects impressive and creative investigative work by federal and Prince George’s County law enforcement who brought the members of this conspiracy to justice.”
“Postal Inspectors stand committed to ensuring the public’s trust in the U.S. mail system,” said U.S. Postal Inspector in Charge Daniel A. Adame, Washington Division. “The mission of the U.S. Postal Inspection Service is to protect consumers by ensuring the nation's mail system is not used in furtherance of criminal activity which safeguards our customer’s trust in the United States Postal Service. Postal Inspectors, along with our federal partners, bear the burden of holding responsible those individuals who corrupt the US Postal Service to further their criminal enterprises.”
“Postal employees are paid to deliver mail, not drugs,” said Imari R. Niles, Special-Agent-in-Charge of the Capitol Metro Area of the U.S. Postal Service Office of Inspector General. Niles added that most Postal Service workers are “hard-working, trustworthy individuals.”
According to Stanley’s guilty plea, in August 2018 the United States Postal Inspection Service (USPIS) and the Drug Enforcement Administration (DEA) began a joint investigation regarding the importation of cocaine into Maryland through the United States mail. Investigators identified Stanley as the leader of the drug trafficking organization (DTO) in Maryland. As part of his plea agreement, Stanley admitted that he conspired with others to distribute and possess with the intent to distribute cocaine in Maryland. Stanley further admitted that he had others assisting him with facilitating his distribution of cocaine in Maryland. Among those who assisted Stanley was Jovan Kirk Louis Savage, age 35, of Bowie, who picked up cocaine parcels in exchange for $500 per parcel from Stanley and assisted with delivering proceeds of the drug sales to pay off Stanley’s drug debt.
The investigation revealed that two U.S. Postal Service (USPS) letter carriers, Zakiyya Holloman, age 35, of Middle River, Maryland and Maurice Vaughn, age 34, of Washington, D.C. agreed to divert U.S. Priority Mail parcels, containing cocaine, sent to addresses on their routes, to Stanley or a member of the Stanley DTO in exchange for money. Holloman serviced a route in Bowie from April 2017 to October 2019, and Vaughn serviced a route in Bowie from July 2018 to October 2019. As USPS letter carriers, Vaughn and Holloman were public officials and were expected, among other things, to deliver each package to the addressee at the proper address and to keep an accurate record of their deliveries. Holloman began diverting packages containing cocaine to Stanley in approximately April 2018, after being introduced to Stanley by a mutual acquaintance. Holloman received $500 from Stanley for each parcel diverted. Hollman diverted cocaine parcels on at least six occasions, receiving a total of at least $3,000 from Stanley. In an effort to conceal the scheme, Holloman scanned the parcels as delivered to the addressees, despite delivering those parcels to Stanley.
As detailed in the plea agreement, at least once a month from December 2018 until October 2019, Vaughn diverted a U.S. Priority Mail parcel containing two kilograms of cocaine to the Stanley DTO. Specifically, on February 15, 2019, Vaughn delivered to Stanley’s vehicle, a U.S. Priority Mail parcel containing two kilograms of cocaine with a Bowie address on Vaughn’s postal route. After Vaughn delivered the parcel to Stanley’s vehicle, Vaughn was paid $200 via Cash App. Similarly, Vaughn delivered U.S. Priority Mail parcels containing two kilograms of cocaine each on August 29, 2019, and October 2, 2019. Savage picked up each of the parcels, conducting counter-surveillance to make sure that law enforcement was not in the area. Vaughn was paid $200 in exchange for diverting each of those cocaine parcels to the Stanley DTO. In an effort to conceal the scheme, Vaughn scanned the United States Priority Mail parcels as delivered to the addressees, despite delivering those parcels to the Stanley DTO or to particular locations for pick-up by the Stanley DTO.
To help ensure that the letter carriers would not report their criminal activity to law enforcement, Stanley and a co-defendant required letter carriers to provide them with the letter carriers’ home addresses. Stanley discussed with a co-defendant that they should also tell the letter carriers that they knew the location of the daycare providers for the letter carriers’ children.
In October 2019, Postal Inspectors intercepted a United States Priority Mail parcel destined for an Upper Marlboro address that contained the same contents as previous parcels including, edible peanuts, blue-and-white drinking straws, styrofoam plates and cups, and two kilograms of cocaine inside a Tupperware container. Law enforcement executed a search and seizure warrant, seizing the two kilograms of cocaine from the package. On October 9, 2019, Stanley and Savage worked together to pick up the parcel, not knowing that the cocaine had already been seized by law enforcement. They conducted counter-surveillance to make sure that law enforcement was not in the area, but before they could pick up the package, they detected the presence of law enforcement who were conducting surveillance of the Upper Marlboro package’s delivery. Stanley fled the scene in his vehicle, but Savage was arrested.
On October 9, 2019 investigators executed a search warrant at the shared residence of Stanley, Savage, and co-defendant Delonte Andre Gomez. Among the items that investigators found and seized were approximately 15 grams of cocaine in a clear baggie and two digital scales from a kitchen cabinet as well as a money counter. Investigators searched Stanley upon his arrest, seizing $3,196 from his person. Stanley admitted that during the course of the conspiracy at least 40 kilograms of cocaine were attributable to him.
Jovan Kirk Louis Savage previously pleaded guilty to conspiracy to distribute and possess with intent to distribute cocaine and faces a maximum sentence of life in federal prison.
The two corrupt postal carriers, Maurice Vaughn and Zakiyya Holloman, each pleaded guilty to conspiracy to commit an offense against the United States and to bribery. They face a maximum sentence of five years in federal prison for the conspiracy charge and a maximum of 15 years in federal prison for bribery. Actual sentences for federal crimes are typically less than the maximum penalties. U.S. District Judge Paula Xinis will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Judge Xinis has not yet scheduled sentencing dates for Savage, Vaughn, or Holloman.
Delonte Andre Gomez, a/k/a Turk, age 39, also of Bowie, previously pleaded guilty to conspiracy to distribute and possess with intent to distribute cocaine as well as possession with the intent to distribute cocaine. Gomez and the government have agreed that, if the Court accepts the plea agreement, Gomez will be sentenced to five years in federal prison and a consecutive sentence of six months in federal prison for violations of his federal supervised release. U.S. District Judge Paula Xinis has scheduled sentencing for September 22, 2021, at 10:00 a.m.
Co-defendant Barrington Albert Edwards, Jr. age 37, of Bowie, Maryland, is charged with conspiracy to distribute and possess with intent to distribute cocaine, conspiracy to commit an offense against the United States, and bribery. 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.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Acting United States Attorney Jonathan F. Lenzner commended the USPIS, the DEA, the U.S. Postal Service OIG, and the Prince George’s County Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Samika N. Boyd and Jason D. Medinger, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Laredo man sentenced for undocumented alien death due to car wreckRead the Press Release
LAREDO, Texas – A 28-year-old Laredoan has been ordered to federal prison for a conspiracy which resulted in the death of an undocumented alien, announced Acting U.S. Attorney Jennifer B. Lowery.
David Valadaz pleaded guilty March 11.
Today, U.S. District Judge Marina Garcia Marmolejo ordered Valadaz to serve a 97-month sentence to be immediately followed by five years of supervised release.
On Nov. 5, 2020, law enforcement attempted to pull over Valadaz, but he fled. He then crashed into the fence of a local business before fleeing on foot. Three undocumented aliens were in the vehicle, one of whom was in the trunk.
The individual in the truck of the vehicle was deceased when authorities found him. Another had suffered serious bodily injury requiring surgery to his elbow.
Valadaz has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations conducted the investigation with the assistance of the Texas Department of Public Safety. Assistant U.S. Attorneys Anthony Brown and April Ayers-Perez prosecuted the case.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following person was arraigned today on an indictment before U.S. Magistrate Judge Kathleen L. DeSoto in Missoula. The indictment is merely an accusation, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law:
Michael Blake Defrance, 28, of Missoula, pleaded not guilty to an indictment charging him with prohibited person in possession of firearms and ammunition. The indictment alleges that on about June 27, 2018 and Oct. 2, 2018 in Missoula, Defrance, knowing he had been convicted on May 6, 2013 of a misdemeanor crime of violence under the laws of the State of Montana, possessed firearms and ammunition in violation of federal law. If convicted of the most serious crime, Defrance faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Defrance was released pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives, FBI’s Montana Regional Violent Crime Task Force and the Missoula Police Department investigated the case.
PACER case reference. 21-29.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Illinois Women Charged in Yellowstone National Park Case Involving Grizzly Sow and CubsRead the Press Release
Acting United States Attorney Bob Murray announced today that SAMANTHA R DEHRING, age 25 of Carol Stream, Illinois, was charged with one count of willfully remaining, approaching, and photographing wildlife within 100 yards and one count of feeding, touching, teasing, frightening, or intentionally disturbing wildlife. Dehring is expected to appear in front of Magistrate Judge Mark L. Carman in Mammoth Hot Springs, Wyoming on August 26, 2021, for her arraignment.
According to the violation notices, Dehring was at Roaring Mountain in Yellowstone Nation Park on May 10, 2021, when visitors noticed a sow grizzly and her three cubs. While other visitors slowly backed off and got into their vehicles, Dehring remained. She continued to take pictures as the sow bluff charged her. Witnesses took pictures and video of the incident which was shared with news outlets and eventually led to her identification. Dehring faces up to a year in prison and up to $10,000 in fines. Park Rangers from Yellowstone National Park provided the results of their investigation to Rangers in Dehring’s area who served her the violation notices in person. These charges are only accusations of a violation of law and Dehring is presumed innocent until when and if proven guilty.
This case is being investigated by Yellowstone National Park Rangers and will be prosecuted by Assistant United States Attorney Stephanie Hambrick. For questions relating to Yellowstone National Park, please contact the Public Affairs Office at 307-344-2015 or [email protected].
Human smuggling recruiter sentenced for conspiracyRead the Press Release
LAREDO, Texas – A 58-year-old Chandler woman has been ordered to federal prison for conspiracy to transport illegal aliens, announced Acting U.S. Attorney Jennifer B. Lowery.
Maria Rivera-Maldonado pleaded guilty Sept. 18, 2020.
Today, U.S. District Judge Marina Garcia Marmolejo ordered her to serve a 60-month sentence to be immediately followed by three years of supervised release. In handing down the sentence, Judge Marmolejo noted Rivera-Maldonado played an active role in recruiting the truck drivers to help carry out the scheme.
On July 3, 2020, law enforcement discovered 52 undocumented non-citizens after stopping a tractor trailer in Laredo. Authorities arrested Rivera-Maldonado as the driver of a scout vehicle for the tractor trailer.
Further investigation revealed Rivera-Maldonado recruited truck drivers to travel to Laredo to smuggle undocumented non-citizens. The investigation revealed that from March 2019 to July 2020, drivers Rivera-Maldonado recruited smuggled over 100 undocumented non-citizens in their vehicles.
Rivera-Maldonado will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations conducted the investigation with the assistance of Border Patrol. Assistant U.S. Attorney Anthony Garrie Brown prosecuted the case.
Hobbs Act Robber Sentenced to 408 Months in Federal PrisonRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced that JOHN WELDON (“WELDON”), age 26, of New Orleans, Louisiana was sentenced to imprisonment on July 28, 2021 by U.S. District Court Judge Lance Africk for charges relating to nine armed robberies of gas stations, convenience stores, and a bank.
WELDON committed armed robberies of three Shell Gas Stations on General de Gaulle Drive, multiple convenience stores in the West Bank and Seventh Ward, and a bank in Algiers. He brandished a firearm and wore blue gloves in each of the robberies.
In August of 2019, WELDON was charged with one count of conspiracy to commit Hobbs Act robbery, Hobbs Act robbery, two counts of brandishing a firearm during and in relation to a crime of violence, one count of armed bank robbery, and one count of being a felon in possession of a firearm. WELDON was found guilty by a jury in December 2019 on all counts.
Judge Africk sentenced WELDON to 408 months in the Bureau of Prisons, 60 months of supervised release, and $600 in mandatory special assessment fees. The U.S. Attorney's Office praised the work of the Federal Bureau of Investigation. The prosecution of the case was conducted by Assistant U.S. Attorneys Kathryn McHugh and Greg Kennedy.
Georgia man sentenced in dog-fighting operationRead the Press Release
AUGUSTA, GA: A Georgia man has been sentenced in federal court in connection with a dog-fighting ring broken up in 2018 in Dodge County.
Benjaman Shinhoster III, a/k/a “Benji,” 41, of Louisville, Ga., was sentenced to 30 months in prison after pleading guilty to Sponsoring and Exhibiting a Dog in an Animal Fighting Venture, said Acting U.S. Attorney David H. Estes. U.S. District Court Judge Dudley H. Bowen Jr. also ordered Shinhoster to pay a fine of $2,500 and to serve three years of supervised release after completion of his prison sentence.
There is no parole in the federal system.
“It is appalling that anyone could find ‘entertainment’ from forcing animals into bloody and often fatal fights,” said Acting U.S. Attorney Estes. “We’re grateful to our alert law enforcement partners for shutting down this dogfighting operation, and Benji Shinhoster and his co-defendants are being held accountable.”
Shinhoster had been on pre-sentencing supervised release after pleading guilty in the case, but his bond was revoked after he was discovered to have been attempting to sell several dogs.
“The gall of this defendant to continue as a proprietor of death while on bond is unnerving,” said Jason Williams, Special Agent in Charge, U.S. Department of Agriculture-Office of Inspector General. “This prosecution should serve as notice that our agency in conjunction with our federal partners will be unrelenting in our pursuit for justice for these mild defenseless creatures bred and trained for this malicious pastime.”
The lead defendant in the investigation, James Lampkin, a/k/a “Pookie,” 46, of Eastman, Ga., awaits sentencing after pleading guilty in U.S. District Court to Conspiracy to Violate the Animal Welfare Act, while co-defendants Deveon Hood, 34, of Tennille, Ga.; Andre Archer, 23, of Sandersville, Ga.; Xavier Simmons, 34, of Sandersville, Ga.; and Joe Ford, 33, of Elgin, S.C., await sentencing in federal court after pleading guilty to related felony charges. Dwight McDuffie, 44, of Eastman, Ga., is serving two years of probation after pleading guilty to a misdemeanor charge in the case.
In March 2018, Georgia State Patrol troopers and Georgia Department of Natural Resources game wardens conducted traffic stops in Eastman after the Oconee (Georgia) Drug Task Force received reports of a dogfighting operation at Lampkin’s property. During those traffic stops, officers discovered a dog in one of the vehicles that appeared to have been injured while fighting. Investigators later seized 63 dogs at Lampkin’s residence while serving a search warrant after finding the animals chained in the back yard. Investigators also discovered a disassembled pit where fights were held, and equipment used to train dogs for fighting.
While the Asset Forfeiture Unit of the Southern District of Georgia U.S. Attorney’s Office initiated a civil forfeiture action, an animal rescue operation took custody of the dogs.
The case is being investigated by the U.S. Department of Agriculture Office of Inspector General, and prosecuted for the United States by Special Assistant U.S. Attorney Jessica Rock and Assistant U.S. Attorney Alejandro V. Pascual IV.
Georgia company and owner admit guilt in scheme to evade U.S. national security trade sanctionsRead the Press Release
SAVANNAH, GA: A Georgia company and its owner have admitted guilt in a scheme to evade United States national security laws.
Dali Bagrou pled guilty in U.S. District Court to Conspiracy, while his company, World Mining and Oil Supply (WMO) of Dacula, Ga., pled guilty to Violation of the Export Control Reform Act, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. The plea subjects Bagrou to a statutory sentence of up to five years in prison and substantial financial penalties, followed by up to three years of supervised release, while WMO is subject to a sentence of up to five years’ probation, along with significant fines and financial restitution. As part of his plea, Bagrou also agreed to forfeit a home purchased with illicit proceeds; the Atlanta-area residence is valued at approximately $800,000.
“The conspirators in this case were attempting to enrich themselves by evading trade sanctions put in place to protect the national security of the United States,” said Acting U.S. Attorney Estes. “Thanks to outstanding effort by our law enforcement partners, these defendants are now being held accountable for their violations of the law.”
As described in court documents and testimony in USA v. World Mining and Oil Supply et. al., the conspiracy began when an unnamed Russian government-controlled business began working with with Oleg Vladislavovich Nikitin, general director of KS Engineering (KSE), a St. Petersburg, Russia-based energy company, in 2016 to purchase a power turbine from a U.S.-based manufacturer for approximately $17.3 million. The Russian company intended to use the turbine on a Russian Arctic deepwater drilling platform, expressly prohibited by the U.S. Department of Commerce unless a license is first obtained.
Nikitin admitted that he and another KSE employee, Anton Cheremukhin, conspired with Gabrielle Villone, Villone’s company GVA, and Villone’s business partner Bruno Caparini, to obtain the turbine on their behalf. Villone, Caprini and GVA then employed the services of Bagrou and WMO to procure the turbine from a U.S.-based manufacturer and to have the turbine shipped overseas. The parties conspired to conceal the true end user of the turbine from both the U.S. manufacturer and the U.S. government by submitting false documentation that stated the turbine would be used by a U.S. company in and around Atlanta.
Nikitin, Villone, and Bagrou all were arrested in Savannah, Ga., in 2019 while attempting to complete the illegal transaction. Villone currently is serving a 28-month prison sentence after pleading guilty to Conspiracy, while the other named defendants await sentencing after pleading guilty.
“Special Agents of the Bureau of Industry and Security’s Office of Export Enforcement (OEE) will aggressively enforce Russia sectoral sanctions violations and any attempt to procure U.S origin goods in violation of U.S. export laws,” said Ariel Joshua Leinwand, Special Agent in Charge of OEE’s Atlanta Office. “The substantial penalties from this guilty plea should serve as a deterrent to those seeking to engage in illegal export activities.”
“The FBI and our partners will always make threats to our national security a top priority, and this conspiracy was a direct threat,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “This was a methodical plan to undercut United States sanctions to put our goods in the hands of actors who are a direct threat to our national security.”
“The illegal export of technology to other countries poses a significant threat to America’s warfighters,” said Special Agent in Charge, Cynthia A. Bruce, Department of Defense Office of Inspector General, Defense Criminal Investigative Service, (DCIS) Southeast Field Office. “DCIS and our investigative partners will aggressively pursue those who violate the trade sanctions that threaten the national security of the United States.”
The Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement, as well as the Defense Criminal Investigative Service and the Federal Bureau of Investigation are investigating the case with assistance from U.S. Customs and Border Protection and the Georgia Department of Natural Resources. Assistant U.S. Attorneys Jennifer G. Solari and Steven H. Lee are prosecuting the case, with assistance from Assistant U.S. Attorney Xavier A. Cunningham, Section Chief of the Asset Forfeiture Recovery Unit.
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Gang “enforcer” sentenced for trafficking a large amount of stolen marijuanaRead the Press Release
VICTORIA, Texas – A Rio Grande City man and ranking member of the Texas Chicano Brotherhood (TxCB) organization has been ordered to federal prison for conspiring to possess with intent to distribute more than 1,000 kilograms of marijuana as well as being a felon in possession of a firearm, announced Acting U.S. Attorney Jennifer B. Lowery.
Hector Guerra pleaded guilty May 3.
Today, U.S. District Judge John D. Rainey ordered him to serve a 120-month sentence to be immediately followed by five years of supervised release. In handing down the sentence, Judge Rainey noted how Guerra changed during the prosecution in that he earnestly appeared to be accepting responsibility for his criminal actions.
The TxCB is a violent criminal organization operating primarily in Starr County and Hidalgo Counties. Members have been involved in numerous crimes to include drug, firearm and human trafficking; kidnappings; home invasions; aggravated assaults; murders and other major crimes.
In May 2016, law enforcement at federal, state and local levels launched a multi-agency investigation in an effort to disrupt the organization’s violent acts. To date, 15 members and criminal associates have been charged.
Authorities identified Guerra and at least four other TxCB members as part of a “rip crew.” At times, they used force and intimidation to steal marijuana and re-sold it to other traffickers in the Rio Grande Valley area. The investigation involved the trafficking and distribution of at least 1,000 kilograms of marijuana between February 2017 and February 2018.
Law enforcement arrested Guerra at his home in October 2018 for his role in the conspiracy. At that time, they also executed a search warrant which led to the discovery of a .45 caliber pistol in his bedroom with approximately 123 rounds of ammunition.
Guerra will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations; Texas Department of Public Safety; Bureau of Alcohol, Tobacco, Firearms and Explosives; District Attorney’s Offices in Starr and Hidalgo Counties; and the Texas Attorney General’s Office conducted the joint investigation. Assistant U.S. Attorneys Patti Hubert Booth prosecuted the case.
Former Labor Union Chief of Staff Convicted of Health Care FraudRead the Press Release
A federal jury in the U.S. District Court for the District of Columbia convicted an Arkansas man on Friday for fraudulently arranging for a labor union to provide health plan coverage to his girlfriend, who was never a union employee.
According to court documents and evidence presented at trial, Roderick Marvin Bennett, 53, of Camden, the former chief of staff for Laborers International Union of North America (LIUNA) in Washington, D.C., was convicted by a jury of one count of health care fraud. The charges stemmed from Bennett, unbeknownst to LIUNA, placing his girlfriend on the health care plan designed for employees at LIUNA’s headquarters when he knew she was not eligible to participate in the plan.
“The jury’s conviction affirms the Justice Department’s efforts to rid our health care delivery systems of corrupt influences and our pursuit of those who would exploit those systems through fraudulent means,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “Department of Labor investigators worked diligently with our prosecutors to ensure that individuals, such as Bennett, who are sworn to safeguard their members’ dues and health and pension plans do not exploit those plans for personal gain.”
LIUNA is a labor organization that represents more than 500,000 laborers in the construction industry in the United States and Canada. For approximately four years, until October 2016, Bennett served as the chief of staff at LIUNA headquarters. The current conviction is in addition to Bennett’s January 2018 guilty plea to three counts of theft from a labor organization stemming from his unauthorized personal purchases – exceeding $150,000 – on his LIUNA-issued American Express card.
Bennett will be sentenced for his convictions at a later date and faces up to five years in prison. Any sentence will be determined after considering the U.S. Sentencing Guidelines and other statutory factors.
The U.S. Department of Labor investigated the case.
Trial Attorneys Vincent Falvo and Jeremy Franker of the Criminal Division’s Organized Crime and Gang Section are prosecuting the case.
Former Chief Financial Officer of Publicly Traded Company Convicted of Securities and Accounting FraudRead the Press Release
A federal jury in the Eastern District of Wisconsin on Thursday convicted the former chief financial officer of Roadrunner Transportation Systems Inc. (Roadrunner), a publicly traded trucking and logistics company formerly headquartered in Cudahy, Wisconsin, on four counts of violating federal securities laws for his role in a complex securities and accounting fraud scheme.
According to court documents and evidence presented at trial, Peter R. Armbruster, 62, of Milwaukee, the former chief financial officer (CFO) of Roadrunner, whose shares were traded on the New York Stock Exchange using the ticker symbol #RRTS, committed securities fraud, falsified Roadrunner’s books and records, and misled Roadrunner’s auditors. Armbruster was convicted in relation to a sophisticated accounting fraud scheme that resulted in Roadrunner’s financial statements and Securities and Exchange Commission filings for the third quarter of 2016 being materially false and fraudulent.
Armbruster was convicted of one count of securities fraud, one count of misleading Roadrunner’s auditors, and two counts of falsifying Roadrunner’s books and records. He is scheduled to be sentenced on Oct. 29 before U.S. District Judge Matthew F. Kennelly. He faces a maximum prison sentence of 25 years' imprisonment for securities fraud, 20 years imprisonment for misleading auditors, and 20 years' imprisonment for each books and records violation. Judge Kennelly 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, Special Agent in Charge Robert E. Hughes of the FBI’s Milwaukee Field Office and Special Agent in Charge Andrea Kropf of the Department of Transportation – Office of Inspector General’s Chicago Field Office made the announcement.
The FBI’s Milwaukee Field Office and the Department of Transportation’s Office of Inspector General are investigating the case.
Trial Attorneys Emily Scruggs and Kyle Hankey and Acting Principal Assistant Chief Justin Weitz of the Criminal Division’s Fraud Section prosecuted the case. Assistant U.S. Attorney Caitlin R. Cottingham, formerly of the Criminal Division’s Fraud Section, provided valuable assistance.
The Fraud Section is the nation’s leading prosecuting authority for complex white-collar criminal cases, including accounting and securities fraud cases involving public companies.
Fentanyl Dealer Who Distributed Narcotics Which Resulted in Death Sentenced to 20 Years' ImprisonmentRead the Press Release
Tampa, FL – U.S. District Judge Thomas P. Barber has sentenced Jared Collins (28, Pasco County) to 20 years’ imprisonment for distributing narcotics, resulting in death. Collins had pleaded guilty on April 27, 2021.
According to the plea agreement, on December 16, 2019, Collins distributed narcotics to M.B. in Wesley Chapel. M.B. injected the narcotics and died. M.B. was found by family members, who immediately called 911. Deputies from the Pasco Sheriff’s Office responded to the scene and located a hypodermic syringe and a plastic bag, both of which tested positive for fentanyl. Law enforcement also recovered a cellphone that revealed that Collins had supplied M.B. with narcotics earlier that day.
The next day, deputies from the Pasco Sheriff’s Office arrested Collins as he was attempting to again distribute narcotics. Two syringes were found in his car, and two hypodermic syringes and a spoon with residue were found in his pocket, all of which tested positive for fentanyl. A federal search warrant was executed at Collins’s residence. Law enforcement officers recovered numerous items of drug paraphernalia, empty capsules containing traces of fentanyl, assorted spoons, straws, clear baggies, and approximately 20 syringes from his bedroom.
The Medical Examiner’s Office for Pasco and Pinellas Counties determined that M.B.’s cause of death was fentanyl toxicity.
On March 26, 2020, after bonding out of state custody, Collins again distributed fentanyl, this time to a law enforcement confidential source. The substance Collins distributed tested positive for fentanyl.
This case was investigated by Drug Enforcement Administration and the Pasco Sheriff’s Office. It was prosecuted by Assistant United States Attorney Diego F. Novaes.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Felon indicted following roadway shootingRead the Press Release
ATLANTA – Rico Laprince Southall has been charged with possession of a firearm by a convicted felon. Southall fired shots at the victim, who happened also to be a family member.
“A key factor in reducing gun violence is to remove firearms from the hands of individuals prohibited from possessing them,” said Acting U.S. Attorney Kurt R. Erskine. “We will pursue those who illegally possess firearms and undermine the safety of our community through continued collaboration with our federal, state, and local law enforcement partners.”
“There is no question about the level of violence displayed by Southall,” said ATF Special Agent in Charge Arthur Peralta. “He indiscriminately fired the gun he illegally possessed without any concern about who might be hurt. The arrest and indictment of Southall is part of our commitment to make our communities safer each and every day.”
“The Cobb County Police Department continues to proudly coordinate investigations across jurisdictional boundaries in order to ensure justice is served for all victims. Law enforcement agencies must continue to share information in cases like this in order to maintain the safety of all those living and working within our communities,” said Cobb County Police Chief Tim Cox.
According to Acting U.S. Attorney Erskine, the charges, and other information presented in court: On April 1, 2021, Rico Laprince Southall targeted a victim, a member of his family, as the victim drove in the area of Powder Springs, Georgia. Southall pursued the victim’s vehicle through the residential area and fired multiple rounds at her vehicle from a semi-automatic pistol equipped with a high-capacity magazine. Several rounds entered the passenger compartment of the victim’s vehicle, with at least one round striking an unoccupied infant safety seat. One of the rounds also struck another car in the vicinity.
The Cobb County Police Department responded to the scene and saw Southall leaving the area in his vehicle in which his girlfriend and minor child were passengers. The responding officers arrested Southall and recovered the semi-automatic pistol he had fired, as well as a second gun, a revolver. The officers noted that Southall had reloaded the semi-automatic weapon during the shooting. Both firearms had been reported stolen.
Southall was arraigned before U.S. Magistrate Judge Christopher C. Bly on July 30, 2021, and detained pending trial. Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and Cobb County Police Department.
Assistant U.S. Attorney D’Juan B. Jones is prosecuting the case.
This case was brought as part of Project Safe Neighborhoods (PSN). In keeping with the Attorney General’s mission to reduce violent crime, the Northern District of Georgia’s PSN program focuses on prosecuting those individuals who most significantly drive violence in our communities, and supports and fosters partnerships between law enforcement and schools, the faith community, and local community leaders to prevent and deter future criminal conduct.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.