Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
7 September 2021
Former NFL Players Plead Guilty to Nationwide Health Care Fraud SchemeRead the Press Release
Three former National Football League (NFL) players have pleaded guilty for their roles in a nationwide scheme to defraud a health care benefit program for retired NFL players. A total of 15 defendants have pleaded guilty in connection with this scheme.
Clinton Portis, 40, of Fort Mill, South Carolina, and Tamarick Vanover, 47, of Tallahassee, Florida, pleaded guilty on Friday, Sept. 3. Robert McCune, 40, of Riverdale, Georgia, pleaded guilty on Aug. 24. The former players admitted to participating in a scheme to defraud the Gene Upshaw NFL Player Health Reimbursement Account Plan (the Plan). The Plan was established pursuant to the NFL’s 2006 collective bargaining agreement and provided for tax-free reimbursement of out-of-pocket medical care expenses that were not covered by insurance, and that were incurred by former players, their spouses, and their dependents – up to a maximum of $350,000 per player.
According to court documents, Portis caused the submission of false and fraudulent claims to the Plan on his behalf over a two-month period, obtaining $99,264 in benefits for expensive medical equipment that was not actually provided. Vanover recruited three other former NFL players into the fraudulent scheme and assisted them in causing false and fraudulent claims to be submitted to the Plan, obtaining $159,510 for expensive medical equipment that was not actually provided. McCune orchestrated the nationwide fraud, which resulted in approximately $2.9 million in false and fraudulent claims being submitted to the Plan and the Plan paying out approximately $2.5 million on those claims between June 2017 and April 2018.
Portis and Vanover pleaded guilty two days after a trial against them resulted in a hung jury and a mistrial on certain counts against Vanover. McCune, the third defendant in that trial, pleaded guilty to all charges against him on the second day of trial. A retrial on the charges against Portis and Vanover had been scheduled to begin today.
Portis and Vanover were originally indicted, along with McCune and seven other defendants, in the Eastern District of Kentucky in December 2019 for their roles in the fraud. Since the initial charges were announced, five additional retired NFL players were charged in the scheme. All 12 of the other defendants charged have pleaded guilty to conspiracy to commit health care fraud: Joseph Horn, Correll Buckhalter, Carlos Rogers, James Butler, Etric Pruitt, Ceandris Brown, John Eubanks, Antwan Odom, Darrell Reid, Anthony Montgomery, Fredrick Bennett, and Donald “Reche” Caldwell, who passed away in June 2020.
Portis and Vanover pleaded guilty to conspiracy to commit health care fraud and agreed to pay full restitution to the Plan. Portis is scheduled to be sentenced on Jan. 6, 2022, and Vanover is scheduled to be sentenced on Jan. 22, 2022. They each face a maximum penalty of 10 years in prison.
McCune pleaded guilty to conspiracy to commit wire fraud and health care fraud, 13 counts of health care fraud, 11 counts of wire fraud, and three counts of aggravated identity theft. McCune is scheduled to be sentenced on Nov. 19. He faces a maximum penalty of 20 years in prison for conspiracy to commit wire fraud and health care fraud, 10 years for each count of health care fraud, 20 years for each count of wire fraud, and two years for each count of aggravated identity theft.
A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Acting U.S. Attorney Carlton S. Shier IV for the Eastern District of Kentucky; and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office made the announcement.
This case was investigated by the FBI and included efforts by various FBI Field Offices and Resident Agencies, including Augusta, Georgia; Birmingham and Mobile, Alabama; Cleveland, Ohio; Chicago, Illinois; Columbia, South Carolina; Dallas and Houston, Texas; Denver, Colorado; Jackson, Mississippi; Lexington, Kentucky; New Orleans, Louisiana; Miami, Jacksonville, and Tampa, Florida; Newark, New Jersey; Los Angeles, San Diego, Sacramento, and Newport Beach, California; Phoenix, Arizona; Salt Lake City, Utah; and Washington, D.C.
Trial Attorneys John (Fritz) Scanlon and Alexander J. Kramer of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Andrew E. Smith of the Eastern District of Kentucky are prosecuting the case.
Former NFL Players Plead Guilty to Nationwide Health Care Fraud SchemeRead the Press Release
WASHINGTON – Three former National Football League (NFL) players have pleaded guilty for their roles in a nationwide scheme to defraud a health care benefit program for retired NFL players. A total of 15 defendants have pleaded guilty in connection with this scheme.
Clinton Portis, 40, of Fort Mill, South Carolina, and Tamarick Vanover, 47, of Tallahassee, Florida, pleaded guilty on Friday. Robert McCune, 40, of Riverdale, Georgia, pleaded guilty on August 24. The former players admitted to participating in a scheme to defraud the Gene Upshaw NFL Player Health Reimbursement Account Plan (the Plan). The Plan was established pursuant to the NFL’s 2006 collective bargaining agreement and provided for tax-free reimbursement of out-of-pocket medical care expenses that were not covered by insurance, and that were incurred by former players, their spouses, and their dependents – up to a maximum of $350,000 per player.
According to court documents, Portis caused the submission of false and fraudulent claims to the Plan on his behalf over a two-month period, obtaining $99,264 in benefits for expensive medical equipment that was not actually provided. Vanover recruited three other former NFL players into the fraudulent scheme and assisted them in causing false and fraudulent claims to be submitted to the Plan, obtaining $159,510 for expensive medical equipment that was not actually provided. McCune orchestrated the nationwide fraud, which resulted in approximately $2.9 million in false and fraudulent claims being submitted to the Plan and the Plan paying out approximately $2.5 million on those claims between June 2017 and April 2018.
Portis and Vanover pleaded guilty two days after a trial against them resulted in a hung jury and a mistrial on certain counts against Vanover. McCune, the third defendant in that trial, pleaded guilty to all charges against him on the second day of trial. A retrial on the charges against Portis and Vanover had been scheduled to begin today.
Portis and Vanover were originally indicted, along with McCune and seven other defendants, in the Eastern District of Kentucky in December 2019 for their roles in the fraud. Since the initial charges were announced, five additional retired NFL players were charged in the scheme. All 12 of the other defendants charged have pleaded guilty to conspiracy to commit health care fraud: Joseph Horn, Correll Buckhalter, Carlos Rogers, James Butler, Etric Pruitt, Ceandris Brown, John Eubanks, Antwan Odom, Darrell Reid, Anthony Montgomery, Fredrick Bennett, and Donald “Reche” Caldwell, who passed away in June 2020.
Portis and Vanover pleaded guilty to conspiracy to commit health care fraud and agreed to pay full restitution to the Plan. Portis is scheduled to be sentenced on Jan. 6, 2022, and Vanover is scheduled to be sentenced on Jan. 22, 2022. They each face a maximum penalty of 10 years in prison.
McCune pleaded guilty to conspiracy to commit wire fraud and health care fraud, 13 counts of health care fraud, 11 counts of wire fraud, and three counts of aggravated identity theft. McCune is scheduled to be sentenced on Nov. 19. He faces a maximum penalty of 20 years in prison for conspiracy to commit wire fraud and health care fraud, 10 years for each count of health care fraud, 20 years for each count of wire fraud, and two years for each count of aggravated identity theft.
A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Acting U.S. Attorney Carlton S. Shier IV for the Eastern District of Kentucky; and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office made the announcement.
This case was investigated by the FBI and included efforts by various FBI Field Offices and Resident Agencies, including Augusta, Georgia; Birmingham and Mobile, Alabama; Cleveland, Ohio; Chicago, Illinois; Columbia, South Carolina; Dallas and Houston, Texas; Denver, Colorado; Jackson, Mississippi; Lexington, Kentucky; New Orleans, Louisiana; Miami, Jacksonville, and Tampa, Florida; Newark, New Jersey; Los Angeles, San Diego, Sacramento, and Newport Beach, California; Phoenix, Arizona; Salt Lake City, Utah; and Washington, D.C.
Trial Attorneys John (Fritz) Scanlon and Alexander J. Kramer of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Andrew E. Smith of the Eastern District of Kentucky are prosecuting the case.
###
21-XXX
Former Monahans Businessman Pleads Guilty to Failure to Pay over $1 Million in Payroll TaxesRead the Press Release
ALPINE – A former Monahans businessman pleaded guilty today to 12 counts of failure to pay withholding taxes.
According to court documents, George Wayne Johnson, 73, of Lawrenceburg, TN, was the owner of Wayne’s Welding Services (WWS) in Monahans. From 2015 to 2018, WWS withheld tax payments from its employees’ paychecks but failed to pay $1,308,797 in required payroll tax to the Internal Revenue Service (IRS). Through his company, Johnson spent hundreds of thousands of dollars on his salary and personal expenses.
Johnson faces a maximum penalty on each count of five years in prison. A sentencing date has not been set. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Ashley C. Hoff of the Western District of Texas and IRS Special Agent in Charge Richard D. Goss, Houston Division, made the announcement.
The IRS is investigating the case.
Assistant U.S. Attorney Lance Kennedy is prosecuting the case.
###
Former Inmate Sentenced to Five Years in Prison for Jailhouse COVID-19 Unemployment Benefits FraudRead the Press Release
FRESNO, Calif. — Christina Smith, 38, who was formerly incarcerated at the Central California Women’s Facility (CCWF) in Chowchilla, was sentenced today to five years in prison for conspiracy and aggravated identity theft charges for the submission of fraudulent unemployment insurance claims to the California Employment Development Department (EDD) in the names of current CCWF inmates, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, another CCWF inmate sent Smith her own and several other inmates’ personally identifiable information (PII) to submit the unemployment insurance claims in their names. The underlying applications represented that the inmates had been working various jobs, which was untrue because they were incarcerated and therefore ineligible for benefits. The intended loss to the EDD and the United States was over $250,000. Smith split the proceeds with her co-conspirators.
This case is the product of an investigation by the Federal Bureau of Investigation, the California Department of Corrections and Rehabilitation’s Investigative Services Unit, and the EDD. Assistant U.S. Attorney Joseph Barton is prosecuting the case.
The CARES Act is a federal law enacted March 29 that is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization that expands states’ ability to provide unemployment insurance for many workers impacted by COVID-19, including for workers who are not ordinarily eligible for unemployment insurance benefits.
Former Federal Corrections Officer Pleads Guilty in Connection with Plan to Smuggle Drugs into PrisonRead the Press Release
Ocala, FL – Wayne Grant, Jr. (27, Orlando) has pleaded guilty to receipt of a bribe by a public official. He faces a maximum penalty of 15 years in federal prison. A sentencing date has not yet been set.
Grant had been indicted on March 31, 2021.
According to court documents, Grant worked as a corrections officer at the Coleman Federal Correctional Complex (FCC Coleman) in Sumter County. In December 2020, Grant agreed to smuggle methamphetamine into the prison for an inmate in exchange for money. Once federal authorities were notified, Grant unwittingly began communicating with an undercover agent to complete the transaction. Federal agents mailed approximately 70 grams of fake methamphetamine and $2,000 in money orders to Grant. Agents observed Grant retrieving the package from his post office box. Grant subsequently deposited the money orders into his bank account. During his assigned shift on February 4, 2021, Grant smuggled the contraband into FCC Coleman and provided it to an inmate.
This case was investigated by the Department of Justice – Office of the Inspector General and the Federal Bureau of Investigation, with assistance from the U.S. Postal Inspection Service. It is being prosecuted by Assistant United States Attorney Tyrie Boyer.
Final Member of Armed Drug Trafficking Organization SentencedRead the Press Release
RALEIGH, N.C. – A Wilson man was sentenced today to 216 months in prison for conspiracy to distribute and possession with intent to distribute 280 grams or more of cocaine base (crack) and 500 grams or more of cocaine, and possession with intent to distribute 28 grams or more of cocaine base (crack) and a quantity of cocaine.
Jerry Andre Melton was the leader of an armed drug trafficking organization that operated in Wilson and Nash Counties, and he was the final member of the organization to be sentenced.
According to court documents, Melton, was named in an Indictment filed on May 13, 2020. On February 25, 2021, Melton entered a plea of guilty.
In June 2018, members of the Wilson Police Department learned that Melton was the leader of a drug trafficking organization that was distributing cocaine and crack cocaine in the Wilson area. Other members of the organization included Demetrius Tyree Allen, Laquan Javon Allen, and Vanderbilt Johnson.
From July 2018 to March 2019, law enforcement conducted multiple controlled purchases of drugs from Melton, Demetrius Allen, Laquan Allen, and Vanderbilt Johnson.
Law enforcement also seized drugs and firearms from members of the Melton drug trafficking organization. On October 29, 2017, the Wilson Police Department responded to a night club after Laquan Allen entered the club and fired shots. Allen was arrested in the parking lot, and agents seized crack cocaine, cocaine, heroin, fentanyl, and a stolen .40 caliber handgun from Allen.
On September 6, 2018, Laquan Allen was arrested at a convenience store in Wilson, North Carolina on an outstanding arrest warrant. He was found in possession of crack cocaine, cocaine, and a stolen .380 caliber handgun.
On January 23, 2019, agents conducted a traffic stop of Melton’s vehicle in Wilson, North Carolina and seized crack cocaine, marijuana, and currency. A search warrant was executed at Melton’s and Demetrius Allen’s residence in Wilson, where agents seized crack cocaine and cocaine.
On June 26, 2019, agents executed a search warrant at Laquan Allen’s apartment on Chase Road in Wilson and seized crack cocaine, digital scales, and a .45 caliber handgun.
From February 2020 through March 2020, the Nash County Sheriff’s Office conducted controlled purchases of crack cocaine and two firearms from Vanderbilt Johnson.
In total, the Melton drug trafficking organization was responsible for distributing more than three kilograms of crack cocaine and more than three kilograms of cocaine.
Below are the results of the other cases in this investigation:
- Laquan Javon Allen, 5:20-CR-234-D-2:
- Convicted of: conspiracy to distribute and possess with intent to distribute 28 grams or more of cocaine base (crack) and cocaine; possession with intent to distribute 28 grams or more of cocaine base (crack); and possession of a firearm in furtherance of a drug trafficking crime.
- Sentenced to 120 months’ imprisonment.
- Demetrius Tyree Allen, 5:20-CR-234-D-3:
- Convicted of: conspiracy to distribute and possess with intent to distribute 28 grams or more of cocaine base (crack) and cocaine.
- Sentenced to 70 months’ imprisonment.
- Vanderbilt Johnson, 5:20-cr-00248-FL-1:
- Convicted of: conspiracy to distribute and possess with intent to distribute 28 grams or more of cocaine base (crack) and cocaine; distribution of a quantity of cocaine base (crack); possession of a firearm in furtherance of a drug trafficking crime.
- Sentenced to 120 months’ imprisonment.
Norman Acker, Acting U.S. Attorney for the Eastern District of North Carolina, made the announcement after sentencing by U.S. District Judge James C. Dever III. The Wilson Police Department and Nash County Sheriff’s Office investigated the case and Assistant U.S. Attorney Scott A. Lemmon prosecuted the case.
This case is part of the United States Attorney’s Office’s Take Back North Carolina Initiative. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement. For additional information about this initiative, click here https://www.justice.gov/usao-ednc/tbnc.
This effort is also part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case Nos. 5:20-CR-234-D and 5:20-cr-00248-FL.
- Laquan Javon Allen, 5:20-CR-234-D-2:
Ex-Montebello Police Officer Pleads Guilty to Bribery ChargeRead the Press Release
LOS ANGELES – A former Montebello Police officer pleaded guilty today to a federal bribery charge for accepting at least $14,000 in cash from a drug trafficker in exchange for escorting narcotics shipments and searching a police database to supply the trafficker information on people suspected of cooperating with law enforcement.
Rudolph Petersen, 34, pleaded guilty to a single-count information charging him with bribery.
Petersen served as a Montebello Police officer for nearly four years, and from December 2018 to August 2020, according to his plea agreement, Petersen solicited and received numerous cash bribes from a gang member and drug trafficker identified in court document as “Co-Schemer 2.”
In mid-2018, Co-Schemer 2 had dinner with Petersen and stated he could put Petersen “on his payroll,” and, through an intermediary, gave Petersen $500.
Co-Schemer 2 met again with Petersen in December 2018. During that meeting, Co-Schemer 2 offered – and Petersen agreed to accept – a $10,000 bribe to escort a vehicle containing a shipment of narcotics and protect it from law enforcement and would-be robbers.
Three months later, Petersen – who was armed and wearing a security guard uniform that resembled an official police uniform – successfully escorted a white U-Haul truck containing what Petersen believed was illegally grown marijuana from Fontana to a location off California State Route 60 near Rowland Heights. Petersen returned to the residence of Co-Schemer 2, who gave him a paper bag filled with $10,000 in cash. Petersen admitted to escorting at least one additional drug shipment for Co-Schemer 2.
Petersen also admitted to accessing a law enforcement database to search for information on an individual whom Co-Schemer 2 believed was a “snitch” who had helped law enforcement intercept a cocaine shipment. In exchange for bribes of $500 to $1,000 per database search, Petersen reported to Co-Schemer 2 the information on the individual, as well as others suspected of cooperating with law enforcement.
In September 2020, Co-Schemer 2 paid Petersen $1,000 to investigate whether tracking devices found on vehicles that he and another co-schemer used were part of a state or federal law enforcement investigation.
Petersen admitted to accepting at least $14,000 in bribes.
United States District Judge Stanley Blumenfeld Jr. has scheduled a January 11, 2022 sentencing hearing, at which time Petersen will face a statutory maximum sentence of 10 years in federal prison.
Homeland Security Investigations investigated this matter.
Assistant United States Attorney Ian V. Yanniello of the International Narcotics, Money Laundering and Racketeering Section is prosecuting this case.
Erie Woman Sentenced to Prison for Meth Distribution SchemeRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, has been sentenced in federal court to 24 months home incarceration on her conviction of violating federal drug laws, Acting United States Attorney Stephen R. Kaufman announced today.
United States District Judge Susan Paradise Baxter imposed the sentence on Lindsey Michelle Thompson, 37 of Erie, Pennsylvania.
According to information presented to the court, on or about December 19, 2019, Thompson and a co-defendant conspired to distribute and distributed fifty grams or more of a mixture and substance containing a detectable amount of methamphetamine.
Assistant United States Attorney Paul S. Sellers prosecuted this case on behalf of the government.
Acting United States Attorney Kaufman commended the Drug Enforcement Administration, Erie County Detective Bureau, Erie Police Department and the Millcreek Police Department for the investigation leading to the successful prosecution of Thompson.
EDVA Commemorates the 20th Anniversary of 9/11Read the Press Release
ALEXANDRIA, Va. – Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia (EDVA), announced today that the U.S. Attorney’s Office will commemorate the 20th anniversary of September 11, 2001 with events reflecting on that tragic day, the aftermath of the terrorist attacks, and EDVA’s role in the prosecution of Zacarias Moussaoui, the only individual to date to have ever been convicted in a U.S. court in connection with the 9/11 attacks.
“As we approach the somber 20th anniversary of the 9/11 attacks, we will never forget the nearly 3,000 innocent lives that were lost, the countless individuals who suffered injuries or have experienced devastating effects from the aftermath of the attacks, and the families of victims and survivors who continue to endure unimaginable pain arising from the horrific events that day,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Our Office continues to reflect on the tragic events of 9/11, which have shaped us as Americans, as public servants, and as individuals. In addition to the loved ones that our staff members, families, and friends lost in New York, Virginia, and Pennsylvania on 9/11, as the attack on the Pentagon took place within EDVA, these tragedies are deeply personal for our community. In our sadness we also find the resolve to stand together against terror, hatred, and fear. We join with our neighbors in remembering those whom we lost, thanking those who responded to save lives, and honoring those who gave their last full measure of devotion following the attacks to protect and defend our country.”
EDVA’s history relating to 9/11 includes the prosecution of Zacarias Moussaoui, who remains the only individual to date to have ever been convicted in a U.S. court in connection with the September 11, 2001 attacks. As he admitted in an EDVA courtroom, Moussaoui knew of al Qaeda’s plan to fly airplanes into prominent buildings in the United States and he agreed to travel to the United States as a member of al Qaeda to participate in the terrorist operation. Moussaoui was arrested weeks before 9/11 on immigration charges after he engaged in suspicious behavior at a flight training school in Minnesota. At the time of his arrest, Moussaoui was in possession of knives, fighting gloves, and shin guards, along with flight manuals for the Boeing 747-400, a hand-held aviation radio, and other items. Moussaoui provided a series of false statements to federal agents to conceal his involvement in the plot and ensure his al Qaeda “brothers” could go forward with the operation. Moussaoui was sentenced on May 4, 2006 to life in prison without parole.
EDVA’s 9/11 20th anniversary commemoration will include the following events:
- On September 7, Acting U.S. Attorney Parekh will host a virtual fireside chat with Michael J. Morell, the former Acting Director and Deputy Director of the Central Intelligence Agency (CIA). Mr. Morell served for 33 years in the CIA, worked for six different U.S. presidents, and is the only person who was both with President Bush on September 11, 2001 and with President Obama on May 1, 2011 when Osama bin Laden was brought to justice. Mr. Morell will discuss the period leading up to 9/11, share his eyewitness accounts on the day of the attacks, describe the U.S. Government’s response leading up to the Bin Laden operation, and reflect upon counterterrorism efforts since then and going forward.
- On September 9, Acting U.S. Attorney Parekh will host a virtual panel discussion titled, “Behind the Scenes of the Moussaoui Prosecution,” featuring U.S. District Judge Leonie M. Brinkema, who presided over the case; former Assistant U.S. Attorney Rob Spencer, EDVA’s lead prosecutor on the case; and Edward MacMahon, Moussaoui’s lead defense attorney. The participants will share stories from both inside and outside the courtroom and reflect on the historic nature of the case in the aftermath of the 9/11 attacks.
- On September 10, EDVA will host an internal virtual remembrance program during which staff members district-wide will have the opportunity to voluntarily share their personal stories and recollections about 9/11, honor the memory of their loved ones, and describe the impact the tragedy had on their decision to enter or continue public service.
- On September 11, a team from EDVA will participate in the annual Arlington Police, Fire, Sheriff and Emergency Communications Center (ECC) 9/11 Memorial 5K Race. Members from all four of EDVA’s Divisions will participate in either the in-person event in Arlington, Virginia or virtually from other locations. The event raises funds for charities that focus on the healing of military personnel and civilians directly affected by the 9/11 attacks.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
- On September 7, Acting U.S. Attorney Parekh will host a virtual fireside chat with Michael J. Morell, the former Acting Director and Deputy Director of the Central Intelligence Agency (CIA). Mr. Morell served for 33 years in the CIA, worked for six different U.S. presidents, and is the only person who was both with President Bush on September 11, 2001 and with President Obama on May 1, 2011 when Osama bin Laden was brought to justice. Mr. Morell will discuss the period leading up to 9/11, share his eyewitness accounts on the day of the attacks, describe the U.S. Government’s response leading up to the Bin Laden operation, and reflect upon counterterrorism efforts since then and going forward.
District Heights Man Pleads Guilty to Federal Charges for the Sexual Abuse of a Two-Year-Old and a Seven-Year-Old Child in Order to Produce Images of the AbuseRead the Press Release
Greenbelt, Maryland – Brian Anthony Gilbert, age 33, of District Heights, Maryland, pleaded guilty today to federal charges for two counts of production of child pornography and one count of possession of child pornography, in connection with his sexual abuse of two minor children.
The plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Assistant Attorney General Kenneth A. Polite, Jr.; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Malik Aziz of the Prince George’s County Police Department.
“Brian Gilbert is a predator who sexually abused young children for his personal gain,” said Acting United States Attorney Jonathan F. Lenzner. “This conduct is reprehensible and criminal, and tragically Gilbert’s crimes will impact these vulnerable victims for the rest of their lives. This case sends a clear message that we will bring to justice those who victimize innocent children.”
According to his guilty plea, in August 2020, Gilbert uploaded and advertised at least two video files of child pornography depicting an approximately seven-year-old female victim (Victim 1) on an online bulletin board dedicated to child pornography, which was hosted over the Tor network, a computer network that is designed specifically to facilitate anonymous communication over the Internet. The videos were approximately 10 minutes and 15 minutes in length and depicted sexual acts between Gilbert and Victim 1. In Gilbert’s posts on the online bulletin board, Gilbert admits to having produced both videos.
As detailed in his plea agreement, on September 11, 2020, law enforcement executed a search warrant at Gilbert’s residence. Gilbert was in the residence at the time. Gilbert waived his rights and agreed to speak to law enforcement. Gilbert advised law enforcement that approximately five times between January 2019 and August 2020, Gilbert video recorded sexual acts between himself and Victim 1 in Gilbert’s bedroom and at Victim 1’s residence. He also stated that he had video recorded sexual acts between himself and another victim, who was approximately two-years old (“Victim 2”) at the time. Gilbert told law enforcement that he distributed the child sex abuse material that he produced on the Tor network.
During the execution of the search warrant, law enforcement also seized a number of electronic devices from Gilbert’s bedroom. A subsequent forensic analysis of Gilbert’s electronic devices revealed over 2,000 files depicting child pornography. Among those files were six videos of Gilbert engaging in sexual acts with Victim 1 and Victim 2 in Gilbert’s bedroom or in Victim 1’s residence. Some of the child pornography located on Gilbert’s devices included prepubescent children under the age of 12 as well as sadistic or masochistic conduct, including the use of instruments or tools on children, and sexual acts between adults and children.
Gilbert faces a mandatory minimum sentence of 15 years in prison and a maximum of 30 years in federal prison for each of the two counts of production of child pornography; and a maximum of 20 years in federal prison for possession of child pornography. U.S. District Judge Paul W. Grimm has scheduled sentencing for December 8, 2021 at 9:30 a.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
Acting United States Attorney Jonathan F. Lenzner and Assistant Attorney General Kenneth A. Polite commended the FBI and the Prince George’s County Police Department for their work in the investigation. Mr. Lenzner and Mr. Polite thanked Assistant U.S. Attorney Joseph R. Baldwin and Trial Attorneys Jessica Urban and Alicia Bove from the Justice Department’s Child Exploitation and Obscenity Section who are prosecuting federal 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/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
# # #
Detroit man sentenced for his role in a drug trafficking operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Alonzo Travis, of Detroit, Michigan, was sentenced today to 57 months of incarceration for his role in a drug trafficking conspiracy, Acting United States Attorney Randolph J. Bernard announced.
Travis, 28, pled guilty in March 2021 to one count of “Aiding and Abetting Distribution of Heroin.” Travis worked with another to distribute one to three kilograms of heroin in March 2020 in Monongalia County.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Drug Enforcement Administration, the Mon Metro Drug & Violent Crimes Task Force, a HIDTA-funded initiative, and the Monongalia County Sheriff’s Office investigated.
This case 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.
Senior U.S. District Judge Irene M. Keeley presided.
Related press release: https://www.justice.gov/usao-ndwv/pr/seventeen-people-charged-heroin-and-crack-cocaine-distribution-operation
Derry Man Sentenced to 65 months for Drug Trafficking ChargesRead the Press Release
CONCORD - Michael Lynch, 30, of Derry, was sentenced to 65 months in federal prison for possession of fentanyl and methamphetamine with intent to distribute, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, on May 2, 2020, a Derry police officer responded to an apartment complex for a report of a fight in progress. Lynch was seen driving away from the area at a high rate of speed. The officer knew Lynch had a suspended driver’s license. Further investigation disclosed that Lynch had assaulted an individual at the apartment complex. Lynch later was arrested for domestic violence assault and operating under suspension. A search of his vehicle yielded over 118 grams of fentanyl, 18 grams of methamphetamine, a telephone, and $3,143 in cash. A search of Lynch’s telephone disclosed numerous messages consistent with drug distribution.
Lynch previously pleaded guilty on May 24, 2021.
"Fentanyl and methamphetamine are very dangerous drugs that have caused grave damage to communities throughout New Hampshire,” said Acting U.S. Attorney Farley. “In order to protect the citizens of the Granite State, we are working closely with our law enforcement partners to identify and prosecute the drug dealers who seek to profit from distributing these deadly substances. As this case demonstrates, those who sell drugs in New Hampshire will be caught and will face significant consequences for their unlawful actions.”
This matter was investigated by the Derry Police Department. The case was prosecuted by Assistant U.S. Attorney Joachim H. Barth.
###
Dayton man sentenced to federal prison for fraudulently obtaining Social Security, COVID relief funding in his deceased father’s nameRead the Press Release
DAYTON, Ohio – A 55-year-old Dayton man was sentenced in U.S. District Court today to 15 months in prison for fraudulently obtaining Social Security and COVID-19 relief funding in his deceased father’s name.
After a recent Social Security Administration Office of Inspector General audit caused the benefit payments to stop in summer 2020, Jon Devol, also known as John Atkins, called the SSA office pretending to be his elderly mother whom he had fraudulently named as the payee.
According to court documents, Devol impersonated his mother throughout the 30-minute, recorded phone call. During the call, Devol provided his parents’ Social Security numbers and when asked if his father was deceased, he said no. When the customer service representative reiterated that Devol’s father was listed as deceased in the SSA database, the defendant said, “That’s a mistake.”
In total, from 2015 until the 2020 audit, Devol received nearly $59,000 in Social Security benefits. Throughout those five years, Devol returned questionnaires to the SSA pretending to be his mother and stating the money was being used to care for his father’s needs.
In May 2020, Devol also received a $1,200 COVID-19 relief stimulus payment in his dead father’s name.
As part of his sentence, Devol was ordered to repay the $58,782 to Social Security and $1,200 to the IRS.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio, announced the sentence imposed by Senior U.S. District Court Judge Thomas M. Rose. Special Assistant United States Attorney Timothy Landry is representing the United States in this case. The SSA-OIG and United States Secret Service investigated the case.
# # #
Crownsville Man Sentenced to Six Years in Federal Prison for Possession of Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge Stephanie A. Gallagher today sentenced Jared Johnson, age 36, of Crownsville, Maryland, to six years in federal prison, followed by 15 years of supervised release, for possession of child pornography. Judge Gallagher also ordered Johnson to pay $45,000 in restitution to the victims. Finally, Judge Gallagher ordered that, upon his release from prison, Johnson must register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; Chief Amal E. Awad of the Anne Arundel County Police Department; and Anne Arundel County State’s Attorney Anne Colt Leitess.
According to his guilty plea, from May 2020 to August 2020, an internet cloud storage service provider sent the National Center of Missing and Exploited Children five cybertipline reports detailing hundreds of child pornography images uploaded to an account within its internet platform. The account was associated with Johnson’s cellular number and IP address located at Johnson’s Crownsville, Maryland residence. Over the course of five reports, the internet storage provider reported over 2,500 images of child pornography uploaded to Johnson’s account.
During a search of Johnson’s residence on July 24, 2020, Anne Arundel County detectives recovered Johnson’s cell phone and computer. The devices were hidden in the basement, submerged underwater within the basement’s sump pump system. A forensic analysis of the computer revealed that Johnson possessed over 12,000 images and videos of child pornography on the computer system.
After examination of Johnson’s online cloud account, Anne Arundel County Police detectives discovered thousands of images and videos containing child pornographic material, including a 38-minute video compilation depicting prepubescent children engaged in sexually explicit conduct.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
Acting United States Attorney Jonathan F. Lenzner commended the HSI, the Anne Arundel Police Department, and the Anne Arundel State’s Attorney’s Office for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Christine Duey who prosecuted the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
# # #
Craven County Armed Drug Trafficker Sentenced to More Than 28 YearsRead the Press Release
NEW BERN, N.C. – A Dover man was sentenced today to 340 months in prison for conspiracy to distribute and possession with intent to distribute 50 grams or more of methamphetamine and a quantity of cocaine, and possession with intent to distribute 50 grams or more of methamphetamine and a quantity of heroin.
According to court documents, Terrence Denon Miller, 31, also known as “Wank,” was named in a two-count Indictment filed on October 3, 2018. On August 20, 2020, the Defendant was convicted at trial on both counts.
Beginning in 2014, the Craven County Sheriff’s Office began receiving information regarding the drug trafficking activities of Miller at his residence on Sand Hill Road in Dover.
On August 14, 2014, members of the Craven County Sheriff’s Office executed a search. In the living room, deputies recovered hydrocodone and oxycodone pills, cocaine, electronic scales, drug packaging material, currency, and an empty .45 caliber handgun case.
On August 27, 2014, a second search warrant was executed at the same residence. Deputies seized cocaine and $7,565 in currency.
On September 28, 2016, the Craven County Sheriff’s Office used confidential informants to purchase 27.97 grams of cocaine from Miller at his residence on Harding Avenue in Kinston.
On June 16, 2017, North Carolina Probation and Parole conducted a search of Miller’s residence, and two firearms were seized. Investigators also recovered baggies containing residue that tested positive for illegal drugs.
On June 22, 2017, the Duplin County Sheriff’s Office conducted a traffic stop of Miller’s vehicle as he drove away from a known drug location. Miller consented to a search of the car, but he appeared to be very nervous. In the trunk, deputies found a 9mm handgun in a backpack. Miller admitted that he had purchased and then distributed more than a dozen kilograms of cocaine over the prior year.
In January 2018, the Lenoir County Sheriff’s Office used confidential informants to purchase methamphetamine from two individuals who were supplied by Miller.
On April 6, 2018, North Carolina Probation and Parole conducted a search of Miller’s residence on Sweet Amy Lane in La Grange. In the kitchen, officers located a bag containing 81.88 grams of crystal methamphetamine with a purity of 95% and 4.69 grams of heroin.
Deputies then obtained a search warrant and seized cocaine, marijuana, digital scales, $2,039 in currency, a grinder, and a loaded handgun magazine.
Miller agreed to speak with investigators, and he admitted that he had been distributing kilogram quantities of cocaine and more than a kilogram of methamphetamine.
Norman Acker, Acting U.S. Attorney for the Eastern District of North Carolina, made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Craven County Sheriff’s Office, Duplin County Sheriff’s Office, Lenoir County Sheriff’s Office, and the Drug Enforcement administration (DEA) investigated the case and Assistant U.S. Attorneys Dena J. King and Scott A. Lemmon prosecuted the case.
This case is part of the United States Attorney’s Office’s Take Back North Carolina Initiative. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement. For additional information about this initiative, click here https://www.justice.gov/usao-ednc/tbnc.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 4:18-cr-00054-FL-1.
Citrus Springs Man Pleads Guilty to Producing Child Sex Abuse ImagesRead the Press Release
Ocala, Florida – Dustin Shane Sandiford (31, Citrus Springs) has pleaded guilty to using a minor to produce child sex abuse images. He faces a minimum mandatory penalty of 15 years, and up to 30 years, in federal prison. He had been indicted on June 30, 2021. His sentencing hearing is scheduled for January 21, 2022.
According to the plea agreement, agents seized a cellphone from Sandiford on December 2, 2020, pursuant to a search warrant. The phone contained a cloud storage application tied to accounts that Sandiford used to hoard more than 17,000 images and videos depicting children being sexually abused. Further investigation revealed that Sandiford had enlisted another Citrus County resident to produce child sexual abuse images of an underaged relative and send them to Sandiford. This material was also found on one of Sandiford’s cloud storage accounts.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney William S. Hamilton.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Charleston Man Sentenced to Federal Prison for Gun CrimeRead the Press Release
CHARLESTON, W.Va. – A Charleston man was sentenced today to 16 months in prison for a federal gun crime.
According to court documents and statements made in court, Antoine Miller, 37, of Charleston, pleaded guilty earlier this year to being a felon in possession of a firearm and admitted that he possessed a stolen Ruger 9 mm handgun at Renaissance Circle in Charleston on April 28, 2020. Miller is prohibited from possessing firearms as a result of a prior felony conviction.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Charleston Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Senior United States District Judge David A. Faber imposed the sentence. Assistant United States Attorney Steve Loew handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:20-cr-00092.
###
California Man Sentenced to Eleven Years in Prison for Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – A California man was sentenced to 132 months in prison for a federal drug crime. Troyvon Lewis, also known as “B.C.,” 32, of Los Angeles, pleaded guilty to conspiracy to possess with intent to distribute 500 grams or more of methamphetamine in June 2021.
According to court documents and statements made in court, Lewis traveled from Los Angeles to Huntington to sell methamphetamine and marijuana. Lewis arranged the drug deal over the telephone and agreed to deliver approximately seven pounds of methamphetamine and two pounds of marijuana to an individual in Huntington. On March 28, 2021, the day the drug deal was to take place, Troopers with the West Virginia State Police conducted a traffic stop on I-64 in Cabell County on a vehicle in which Lewis was a passenger. The car was searched and Troopers seized seven pounds of methamphetamine and two pounds of marijuana from the trunk of the vehicle. Lewis admitted he intended to sell the controlled substances to the individual in Huntington.
Acting United States Attorney Lisa G. Johnston made the announcement and praised the collaborative work of the law enforcement agencies in the Southern and Northern Districts of West Virginia that conducted the investigation. The agencies that were involved in the investigation were the Drug Enforcement Administration (DEA), the Potomac Highlands Drug and Violent Crime Task Force, the Violent Crime and Drug Task Force West, and the West Virginia State Police.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Stephanie S. Taylor handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:21-cr-00054.
###
CEO, CFO and Boston-Area Spinal Device Company Charged in Bribery and Money Laundering SchemeRead the Press Release
BOSTON – A spinal device manufacturer based in Malden, Mass. and its Chief Executive Officer (CEO) and Chief Financial Officer (CFO) were arrested today and charged in connection with a kickback scheme to bribe surgeons to use company products in exchange for sham consulting fees.
Kingsley R. Chin, MD, 57, of Fort Lauderdale, Fla., the CEO and founder of SpineFrontier; Aditya Humad, 36, of Cambridge, Mass., the company’s CFO; and SpineFrontier, Inc., were indicted on one count of conspiracy to violate the Anti-Kickback Statute, six counts of violations of the Anti-Kickback Statute and one count of conspiracy to commit money laundering.
According to the indictment, SpineFrontier, Chin and Humad paid, and conspired to pay, millions of dollars in bribes to surgeons in the form of sham consulting fees for work they did not perform. The defendants allegedly bribed surgeons to use SpineFrontier’s products, and in turn, SpineFrontier received millions of dollars in revenue from surgeries the surgeons performed.
The defendants allegedly entered into contracts with surgeons, agreeing to pay the surgeons between $250 and $1,000 per hour for purported consulting for SpineFrontier. In reality, however, the defendants allegedly paid the surgeons for using SpineFrontier’s products. Although the surgeon-consulting program was purportedly directed at gathering technical feedback about SpineFrontier’s products, the indictment alleges that Chin and Humad designed and used the program, and the bribes they paid pursuant to that program, to induce surgeons to use SpineFrontier’s products in surgeries that were paid for by federal health care programs such as Medicare, Medicaid, TRICARE and VHA. It is further alleged that the surgeons frequently spent only a small fraction of their reported time, if any at all, performing actual consulting. On numerous occasions the bribe amounts were determined following a review of the number of procedures a surgeon performed and the amount of revenue those procedures generated for SpineFrontier. The defendants allegedly paid each surgeon described in the indictment between $32,625 and $978,000 in bribes during the conspiracy.
“Kickback arrangements pollute federal health care programs and take advantage of patient needs for financial gains,” said Acting United States Attorney Nathaniel R. Mendell. “Medical device manufacturers must play by the rules and we will keep pursuing those who fail to do so, regardless of how their corruption is disguised.”
“Kickbacks paid to surgeons as sham medical consultants, as alleged in this case, cheat patients and taxpayers alike,” said Phillip M. Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General. “Working with our law enforcement partners, we will continue to investigate kickback schemes that threaten the integrity of our federal health care system, no matter how those schemes are disguised.”
“As alleged, Chin, Humad, and their medical device company SpineFrontier conspired to pay out millions of dollars in kickbacks in the form of sham consulting fees to surgeons across the country who sadly, prioritized these payoffs over their patients’ best interests. We believe they also cheated taxpayers who ultimately foot the bill for their medical procedures,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “Today’s arrests show that the FBI will not hesitate to go after those who try to undermine the integrity of the medical decision-making process to take advantage of patients for their own personal gain.”
This indictment follows two guilty pleas in related criminal prosecutions. In August 2020, Jason Montone, D.O., 45, of Lawson, Miss., pleaded guilty to conspiracy to violate the Anti-Kickback Statute and obstruction and John Balzer, 43, of Lenexa, Kan., pleaded guilty to conspiracy to violate the Anti-Kickback Statute and one count of witness tampering. Montone and Balzer are scheduled to be sentenced on March 22 and 23, 2022, respectively.
The charge of conspiring to violate the Anti-Kickback Statute provides for a sentence of up to five years in prison, three years of supervised release, a fine of $250,000 or twice the gross gain or gross loss resulting from the offense, whichever is greater, forfeiture and restitution. The charges of violating the Anti-Kickback Statute provide for a sentence of up to 10 years in prison, three years of supervised release, a fine of up to $100,000, forfeiture and restitution. The charge of conspiracy to commit money laundering provides for a sentence of up to 20 years in prison, three years of supervised release, a fine of $500,000 or twice the value of the property involved in the transaction, whichever is greater, forfeiture and restitution. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney Mendell, HHS-OIG SAC Coyne and FBI SAC Bonavolonta made the announcement today. Valuable assistance was provided by the U.S. Department of Veterans Affairs, Office of Inspector General, Northeast Field Office and the U.S. Postal Service, Office of Inspector General. Assistant U.S. Attorneys Patrick M. Callahan, David J. Derusha, Abraham R. George and David G. Lazarus of Mendell’s Office are prosecuting the criminal case.
The details contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Buchanan County Man Sentenced on Child Pornography ChargesRead the Press Release
ABINGDON, Va.– A Whitewood, Virginia man was sentenced today to 84 months in prison for distributing child pornography using a means or facility of interstate commerce.
According to court documents, Jordan Seth Gross, 21, distributed child pornography to an undercover employee with the Federal Bureau of Investigation (FBI) in November 2020. Gross admitted to using the KIK computer messenger application to communicate with others in a known child pornography chatroom. Gross accessed his KIK account from both his home in Whitewood, in Buchanan County, Virginia, and his place of employment at Buchanan General Hospital in Grundy, Virginia. Using that account, Gross distributed multiple videos of prepubescent females under the age of twelve engaged in sexually explicit conduct to an FBI employee working undercover in the chatroom. Gross also admitted purchasing child pornography materials using PayPal.
Gross pleaded guilty in April 2021 to one count of knowingly distributing one or more visual depictions of a minor engaging in sexually explicit conduct that has been mailed or transported in interstate or foreign commerce.
Acting U.S. Attorney Daniel P. Bubar of the Western District of Virginia and Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Division announced the sentence today.
The Federal Bureau of Investigation and Virginia State Police are investigating the case.
Assistant U.S. Attorney Lena Busscher is prosecuted the case.
Blawnox Man Pleads Guilty to Possessing Child PornographyRead the Press Release
PITTSBRUGH - A resident of Blawnox, Pennsylvania, pleaded guilty in federal court to a charge of possession of material depicting the sexual exploitation of a minor, Acting United States Attorney Stephen R. Kaufman announced today.
Michael Marlette, age 55, pleaded guilty to one count before Senior United States District Judge Donetta W. Ambrose.
In connection with the guilty plea, the court was advised that, on April 19, 2018, Marlette possessed images and videos in computer graphic files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age.
Judge Ambrose scheduled sentencing for Jan. 4, 2022, at 11:00 a.m. The law provides for a maximum sentence of 20 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Mark V. Gurzo is prosecuting this case on behalf of the government.
Homeland Security Investigations, with the assistance of the Blawnox Police Department, conducted the investigation that led to the prosecution of Marlette.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Biloxi VA Employee Pleads Guilty to Stealing VA PropertyRead the Press Release
Gulfport, Miss. – A Saucier man pled guilty to stealing government property, announced Acting U.S. Attorney Darren J. LaMarca and Special Agent in Charge Jeffrey A. Breen of the VA Office of Inspector General (OIG) South Central Field Office.
According to court documents, Chad Paul Jacob, 54, pled guilty to stealing personal protective equipment (“PPE”), electronics, and medical equipment while working as the Assistant Chief of Supply Chain Management for the Gulf Coast Veterans Health Care System. Beginning in 2019 and until December 2020, Jacob stole VA property which he resold at local pawn stores and on his personal eBay account. During the COVID-19 pandemic, Jacob stole N-95 masks and resold them for grossly inflated prices. In total, Jacob made more than $50,000 selling the stolen N-95 masks and over $9,000 selling stolen iPads and iPhones.
“Since the onset of the pandemic, the VA Office of Inspector General has aggressively investigated the increasing and evolving threat posed by COVID-19-related fraud and criminal activity. Today’s guilty plea demonstrates our ongoing work to stop those who take advantage of public health emergencies to perpetrate such frauds,” said VA OIG Special Agent in Charge Breen.”
Jacob is scheduled to be sentenced on December 7, 2021 and faces a maximum penalty of 10 years in prison. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The VA Office of Inspector General is investigating the case.
Assistant U.S. Attorney Kathlyn R. Van Buskirk is prosecuting the case
Big Stone Gap Man Pleads Guilty to Unemployment Fraud, Mail FraudRead the Press Release
ABINGDON, Va.– A Big Stone Gap, Virginia man pleaded guilty last week to participating in a conspiracy that defrauded the government of more than $790,000 in pandemic-related unemployment funds and conspiring to commit mail fraud.
According to court documents, Johnny Hobbs, 37, joined convicted co-defendant Farren Ricketts, and others, in a scheme to file fraudulent claims for pandemic unemployment benefits via the Virginia Employment Commission [VEC] website. Conspirators submitted claims for various individuals who were known to be ineligible to receive pandemic unemployment benefits by making materially false representations.
Hobbs joined the scheme in May 2020, while incarcerated, initially seeking to receive unemployment benefits for himself. After he was released from jail, Hobbs approached Ricketts, and the other co-conspirators and accepted a limited role with their criminal enterprise submitting claims to the VEC and recertifying weekly claims for other co-conspirators.
Hobbs pleaded guilty last week to one count of conspiracy to defraud the government of the United States and one count of conspiracy to commit mail fraud. He is scheduled to be sentenced on December 10, 2021 and faces a maximum penalty of 30 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney Daniel P. Bubar of the Western District of Virginia, Darrell J. Waldon, Acting Special Agent in Charge of the IRS-CI Washington DC Field Office, and Syreeta Scott, Special Agent-in-Charge of the Philadelphia Region, U.S. Department of Labor Office of Inspector General announced the guilty plea.
The Department of Labor Office of the Inspector General and the Internal Revenue Service – Criminal Investigation are investigating the case.
Assistant U.S. Attorney Daniel J. Murphy is prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
6 September 2021
Statement from Attorney General Merrick B. Garland Regarding Texas SB8Read the Press Release
The U.S. Department of Justice today issued the following statement from Attorney General Merrick B. Garland regarding Texas SB8:
“While the Justice Department urgently explores all options to challenge Texas SB8 in order to protect the constitutional rights of women and other persons, including access to an abortion, we will continue to protect those seeking to obtain or provide reproductive health services pursuant to our criminal and civil enforcement of the FACE Act, 18 U.S.C. § 248.
“The FACE Act prohibits the use or threat of force and physical obstruction that injures, intimidates, or interferes with a person seeking to obtain or provide reproductive health services. It also prohibits intentional property damage of a facility providing reproductive health services. The department has consistently obtained criminal and civil remedies for violations of the FACE Act since it was signed into law in 1994, and it will continue to do so now.
“The department will provide support from federal law enforcement when an abortion clinic or reproductive health center is under attack. We have reached out to U.S. Attorneys’ Offices and FBI field offices in Texas and across the country to discuss our enforcement authorities.
“We will not tolerate violence against those seeking to obtain or provide reproductive health services, physical obstruction or property damage in violation of the FACE Act.”
If you have an incident, concern, or questions, please contact the FBI at FBI.gov/tips or through the complaint portal civilrights.justice.gov.
3 September 2021
Yale Med School Employee Charged with Stealing and Selling Millions of Dollars in Computer HardwareRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, and David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that JAMIE PETRONE-CODRINGTON, 41, of Naugatuck, has been charged by federal criminal complaint with fraud and money laundering offenses related to her alleged theft of millions of dollars in computer hardware from the Yale University School of Medicine where she was employed.
Petrone-Codrington surrendered to law enforcement today and appeared before U.S. Magistrate Judge Robert M. Spector in New Haven. She was released on a $1 million bond.
As alleged in the complaint, beginning in approximately 2008, Petrone-Codrington was employed by the Yale University School of Medicine (“Yale Med”), Department of Emergency Medicine, and most recently served as the Director of Finance and Administration for the Department of Emergency Medicine. As part of her job responsibilities, Petrone-Codrington had authority to make and authorize certain purchases for departmental needs as long as the purchase amount stayed below $10,000. Beginning at least as early as 2013, Petrone-Codrington engaged in a scheme whereby she ordered, or caused others working for her, to order millions of dollars of computer hardware from Yale vendors using Yale Med funds and arranged to ship the stolen hardware to an out-of-state business in exchange for money.
It is further alleged that Petrone-Codrington falsely represented on Yale internal forms and in electronic communications that the hardware was for specified Yale Med needs, such as particular medical studies, and she broke up the fraudulent purchases into orders below the $10,000 threshold that would require additional approval. The out-of-state business, which resold the computer hardware to customers, paid Petrone-Codrington by wiring funds into an account of a company in which she is a principal.
The criminal complaint charges Petrone-Codrington with mail fraud, which carries a maximum term of imprisonment of 20 years; wire fraud, which carries a maximum term of imprisonment of 20 years; and money laundering, which carries a maximum term of imprisonment of 10 years.
Acting U.S. Attorney Boyle stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the Federal Bureau of Investigation with the assistance of the Yale Police Department. The case is being prosecuted by Assistant U.S. Attorney David E. Novick.
Woman from Albuquerque sentenced to 10 years in federal prison for possession and distribution of drugsRead the Press Release
ALBUQERQUE, N.M. – Karla Pena, 33, of Albuquerque, was sentenced in federal court on Aug. 23 to 10 years in prison for distribution of methamphetamine and fentanyl.
Pena pleaded guilty on Dec. 23, 2019. According to the plea agreement, from Jan. 15 to Jan. 24, 2019, Pena conspired with co-defendants Marysol Pena, 31, of Phoenix, Arizona, and Guillermo Rodriguez, 39, also of Phoenix, to sell methamphetamine and fentanyl to an undercover officer in Albuquerque. On Jan. 15, Pena sold an undercover officer 419 grams of methamphetamine and 97.3 grams of fentanyl in exchange for cash outside a Walmart parking lot. On Jan. 24, Pena sold the undercover officer more than 4.5 kilograms of methamphetamine and 76.9 grams of fentanyl pills in a suitcase that she wheeled into a motel room in Albuquerque.
At the time of the investigation, Pena was on supervised release for a 2016 conviction for possession with intent to distribute heroin.
Upon completion of her sentence, Pena will be subject to five years of supervised release.
Rodriguez pleaded guilty on Nov. 4, 2019, and was sentenced on May 19, 2020, to four years and two months in prison. Marysol Pena pleaded guilty on May 26, and was sentenced on Aug. 24 to a year and 11 months in prison and will be subject to three years of supervised release upon completion of her sentence.
The FBI and New Mexico State Police investigated this case. Assistant U.S. Attorney Matthew T. Nelson prosecuted this case.
Wilkes-Barre Woman Sentenced to 127 Months’ Imprisonment for Drug Trafficking ConspiracyRead the Press Release
Scranton - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on September 2, 2021, Danielle Moorer, age 36, formerly of Wilkes-Barre, Pennsylvania, was sentenced to 127 months’ imprisonment to be followed by five years of supervised release by U.S. District Court Judge Robert D. Mariani, for her involvement in a conspiracy that distributed more than a 1,000 grams of heroin and other drugs throughout Luzerne, Lackawanna, and Wyoming Counties.
According to Acting United States Attorney Bruce D. Brandler, Moorer previously pleaded guilty to conspiring with others to distribute more than one kilogram of heroin (which is equivalent to more than 50,000 retail bags) between 2015 and 2018. Moorer also admitted that she possessed firearms in connection with her drug trafficking activities.
Moorer’s conviction and sentence resulted from a federal investigation involving Moorer and her husband, Hakim Wilburn, as drug traffickers operating throughout Luzerne, Lackawanna, and Wyoming Counties. Wilburn previously pleaded guilty to conspiring to distribute more than one kilogram of heroin and was sentenced to a term of 198 months’ imprisonment.
Federal agents also seized approximately $100,000 in cash from Moorer and Wilburn, which was forfeited as a resulted of their prosecution, along with multiple Rolex watches, vehicles, and four firearms.
The case was investigated by agents of the Federal Bureau of Investigation, and members of the Wilkes-Barre Police Department. Assistant U.S. Attorney Michelle Olshefski prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal enforcement and the local community to develop effective, locally-based strategies to reduce crime.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
# # #
West L.A. Man Sentenced to 4 Years in Prison for Running Massive Telemarketing Scheme that Targeted Businesses and CharitiesRead the Press Release
SANTA ANA, California – A West Los Angeles man was sentenced today to 48 months in federal prison – plus an additional 28 months of home confinement – for orchestrating a decades-long, multimillion-dollar telemarketing scheme that defrauded more than 50,000 victims, including small businesses and charities, by posing as their regular supplier of printer toner and selling them toner at greatly inflated prices.
Gilbert N. Michaels, 79, was sentenced by United States District Judge James V. Selna, who also ordered him to pay a criminal fine of $200,000.
In December 2019, at the conclusion of a six-week trial, a federal jury found Michaels guilty of one count of conspiracy to commit mail fraud, 10 counts of mail fraud and five counts of money laundering.
Michaels owned and operated IDC Servco and Mytel International, companies that, with the assistance of boiler room operators, fraudulently sold toner to businesses, charities, and other organizations throughout the United States. Michaels’ companies handled the billing and shipping of the toner, and charged the boiler rooms at or above retail prices for the toner they were selling to victims. Michaels provided price catalogs to the boiler rooms to use in making sales that listed the price of the toner at up to five to 10 times the retail price. Many of the victims already were receiving toner at no additional charge pursuant to their contracts for their copiers and printers.
The telemarketers told victims that the price of toner had increased, they had not been notified of the increase, and the victims now had a chance to purchase toner at the previous, lower price. Believing that they were dealing with their regular supplier of toner, employees at the victim businesses and organizations signed order confirmation forms, which prompted IDC to ship toner to victims and send invoices that demanded payment at the inflated prices.
When the victim businesses realized they had been scammed, they called IDC to complain. The victims were typically told that IDC could not cancel the order or refund money because the victims had signed order confirmation forms. IDC also failed to disclose its relationships to the telemarketing companies that brokered the fraudulent deals.
In many cases, IDC employees threatened victims with collections or legal action if they did not pay an invoice. In the cases where IDC agreed to take toner back, victims were often forced to pay significant “restocking fees.”
Over one six-year span, victims were induced to send more than $126 million to the telemarketing scammers.
Another aspect of the fraud was that the telemarketers failed to disclose that they were affiliated with IDC. In a series of court orders dating back to November 1988, Michaels and his companies were prohibited from making false statements and they were required to provide oversight to “independent sales companies.” Michaels violated these court orders by working with and providing financing to the supposedly independent boiler rooms that were engaged in deceptive and fraudulent practices, even though IDC received hundreds of thousands of complaints from victims claiming they had been defrauded.
Six other defendants were also found guilty along with Michaels in December 2019. Those already sentenced are:
- James R. Milheiser, 54, of Huntington Beach, who owned and/or controlled Material Distribution Center, PDM Marketing, Bird Coop Industries, Inc., and Copier Products Center, and who was convicted of conspiracy and mail fraud, was sentenced to 30 months in federal prison; and
- Francis S. Scimeca, 56, of Woodland Hills, who owned Supply Central Distribution, Inc. and Priority Office Supply, was sentenced to three years in federal prison for his convictions for conspiracy and mail fraud.
The following four defendants will be sentenced in the coming months:
- Leah D. Johnson, 57, of Ignacio, Colorado, who owned Capital Supply Center and LJT Distribution, Inc.;
- Jonathan M. Brightman, 54, of Westlake Village, who owned Copy Com Distribution, Inc.; Independent Cartridge Supplier; and Corporate Products;
- Sharon Scandaliato Virag, 56, of West Hills, who owned XL Supply, Inc.; and
- Tammi L. Williams, 46, of Chino Hills, who was the office manager at Elite Office Supply, and worked at Specialty Business Center, Rancho Office Supply and Select Imaging Supplies.
The four defendants pending sentencing were found guilty of conspiracy. Johnson and Brightman also were found guilty of mail fraud.
The United States Secret Service, the FBI, the Huntington Beach Police Department and the Orange County District Attorney’s Office investigated this matter, with assistance from the Federal Trade Commission.
Assistant United States Attorneys Gregory W. Staples, Bradley E. Marrett, and Benjamin D. Lichtman of the Santa Ana Branch Office are prosecuting this case.
Washington County Man Charged with Violating Federal Drug and Gun LawsRead the Press Release
PITTSBURGH, PA - A former resident of Charleroi, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on federal narcotics and firearms charges, Acting United States Attorney Stephen R. Kaufman announced today.
The three-count Indictment, returned on August 25 and unsealed today, named Tecko Tartt, age 35, as the sole defendant.
According to Count One of the Indictment, on or about March 31, 2021, Tartt possessed with the intent to distribute 10 grams or more of fluorofentanyl, a Schedule I controlled substance and an analogue of fentanyl; and quantities of cocaine. On or about that same date, Tartt also possessed a firearm and ammunition as a convicted felon (Count Three) and in furtherance of a drug trafficking crime (Count Two).
As to Count 1, the law provides for a minimum of five and up to 40 years in prison, a fine of $5,000,000 or both. The maximum sentence for Count 2 is at least five years and up to life in prison and a fine of up to $250,000. The maximum sentence for Count 3 is up to 10 years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Yvonne M. Saadi and Jonathan D. Lusty are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation leading to the Indictment in this case.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
United States Obtains $140 Million in False Claims Act Judgments against South Carolina Pain Management Clinics, Drug Testing Labs, and Substance Abuse Counseling CenterRead the Press Release
Columbia, South Carolina---- Acting United States Attorney M. Rhett DeHart announced today that the United States District Court for the District of South Carolina has entered $140 million in default judgments against a group of South Carolina pain management clinics, drug testing laboratories, and a substance abuse counseling center. This combined judgment is one of the largest ever False Claims Act judgments in the District of South Carolina.
Specifically, a default judgment entered on September 2, 2021, for the United States against Oaktree Medical Centre, P.C., FirstChoice Healthcare, P.C., Labsource, LLC, Pain Management Associates of the Carolinas, LLC, and Pain Management Associates of North Carolina, P.C. totals $136,025,077. It follows a July 20, 2020 default judgment in this matter in the amount of $4,269,084.78 against ProLab, LLC and ProCare Counseling Center, LLC. The Court entered these judgments after these defendants failed to defend against the United States’ allegations.
In its Complaint, filed on May 31, 2019, the United States alleged the pain management clinics and drug testing laboratories – all of which were owned or operated by chiropractor Daniel McCollum – provided illegal financial incentives to doctors and mid-level providers to induce the referrals of urinary drug tests, in violation of the Stark Law and the Anti-Kickback Statute. The United States also alleged the pain management clinics, laboratories, and a substance abuse counseling clinic billed federal healthcare programs for unnecessary urinary drug testing. Finally, the United State alleged the pain management clinics billed or caused to be billed false claims for steroid injections, opioid prescriptions, and lidocaine ointment prescriptions because the injections and prescriptions were medically unnecessary and/or lacked a legitimate medical purpose.
McCollum answered the United States’ Complaint and remains a party to the ongoing litigation.
Congress passed the Stark Law and the Anti-Kickback Statute to prevent financial incentives from improperly influencing medical decision-making, which can lead to excessive and unnecessary tests and services. Among other things, the Stark Law prohibits billing Medicare for laboratory testing services referred by a physician who has a financial relationship with the laboratory. The Anti‑Kickback Statute prohibits offering or paying anything of value to induce the referral of items or services covered by federal health care programs, including laboratory testing services.
“Improper financial relationships between health care providers and laboratories can lead to overutilization and increase the cost of health care services paid for by the taxpayers,” said Acting Assistant Attorney General Brian M. Boynton of the Department of Justice’s Civil Division. “We will continue to ensure that health care decisions are based on the needs of patients rather than the financial interests of providers.”
“Patients should not have to question whether their doctor recommended a test or procedure for personal gain,” said Acting U.S. Attorney DeHart. “For years, these companies used improper financial incentives to generate healthcare provider referrals. This $140 million judgment is a cautionary tale of why health care fraud does not pay.”
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Donna Rauch, Muriel Calhoun, Brandy Knight, Karen Mathewson, and Tracy Hawkins, former employees of pain management clinics owned or operated by McCollum. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery.
The qui tam cases are captioned United States ex rel. Rauch, et al. v. Oaktree Medical Centre, P.C., et al., No. 6:15-cv-01589-DCC (D.S.C.); United States ex rel. Mathewson v. Dr. Daniel A. McCollum, et al., No. 6:17-CV-01190-DCC (D.S.C.); and United States ex rel. Hawkins v. Pain Management Associates of the Carolinas, LLC, et al., No. 8:18-cv-02952-DCC (D.S.C.).
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the United States Attorney’s Office for the District of South Carolina, with assistance from the Federal Bureau of Investigation, the Department of Health and Human Service’s Office of Inspector General, the South Carolina Attorney General’s Office, and the Defense Criminal Investigative Service.
The investigation and resolution of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The matter was handled by Assistant U.S. Attorney Beth Warren and Justice Department Fraud Section Attorneys Yolonda Campbell, Michael Kass, Christopher Terranova, and David Wiseman.
#####
United States Obtains $140 Million in False Claims Act Judgments Against South Carolina Pain Management Clinics, Drug Testing Laboratories and a Substance Abuse Counseling CenterRead the Press Release
On Thursday, the U.S. District Court for the District of South Carolina entered default judgments for the United States totaling $136,025,077 against Oaktree Medical Centre P.C. (Oaktree), FirstChoice Healthcare P.C. (FirstChoice), Labsource LLC (Labsource), Pain Management Associates of the Carolinas LLC (PMA of the Carolinas) and Pain Management Associates of North Carolina P.C. (PMA of North Carolina). This is the second time the court has entered a default judgment in this matter. On July 20, 2020, the court entered a default judgment in the amount of $4,269,084.78 against ProLab LLC (ProLab) and ProCare Counseling Center LLC (ProCare). The court entered these judgments after these defendants failed to defend against the United States’ allegations.
In its complaint, filed on May 31, 2019, the United States alleged that Oaktree, FirstChoice, Labsource, PMA of the Carolinas and PMA of North Carolina — all of which were owned or operated by chiropractor Daniel McCollum — provided illegal financial incentives to providers to induce their referrals of urine drug tests in violation of the Stark Law and the Anti-Kickback Statute. The United States also alleged that ProCare, a substance abuse counseling clinic, and ProLab, a urine drug testing laboratory partially owned by McCollum, billed federal health care programs for unnecessary urine drug tests. McCollum answered the United States’ complaint and remains a party to the ongoing litigation.
Congress passed the Stark Law and the Anti-Kickback Statute to prevent financial incentives from improperly influencing medical decision-making, which can lead to excessive and unnecessary tests and services. Among other things, the Stark Law prohibits billing Medicare for laboratory testing services referred by a physician who has a financial relationship with the laboratory. The Anti‑Kickback Statute prohibits offering or paying anything of value to induce the referral of items or services covered by federal health care programs, including laboratory testing services.
“Improper financial relationships between health care providers and laboratories can lead to overutilization and increase the cost of health care services paid for by the taxpayers,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “We will continue to ensure that health care decisions are based on the needs of patients rather than the financial interests of providers.”
“Patients should not have to question whether their doctor recommended a test or procedure for personal gain,” said Acting U.S. Attorney M. Rhett DeHart for the District of South Carolina. “For years, these companies used improper financial incentives to generate health care provider referrals. This $140 million judgment is a cautionary tale of why health care fraud does not pay.”
The judgment includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Donna Rauch, Muriel Calhoun, Brandy Knight, Karen Mathewson and Tracy Hawkins, former employees of pain management clinics owned or operated by McCollum. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam cases are captioned United States ex rel. Rauch, et al. v. Oaktree Medical Centre, P.C., et al., No. 6:15-cv-01589-DCC (D.S.C.); United States ex rel. Mathewson v. Dr. Daniel A. McCollum, et al., No. 6:17-CV-01190-DCC (D.S.C.); and United States ex rel. Hawkins v. Pain Management Associates of the Carolinas, LLC, et al., No. 8:18-cv-02952-DCC (D.S.C.).
The resolution obtained in this matter was the result of a coordinated effort between the Civil Division's Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the District of South Carolina, with assistance from the FBI, the Department of Health and Human Service’s Office of Inspector General, the South Carolina Attorney General’s Office, and the Defense Criminal Investigative Service.
The investigation and resolution of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The matter was handled by Fraud Section Attorneys Yolonda Campbell, Michael Kass, Christopher Terranova, and David Wiseman, along with Assistant U.S. Attorney Beth Warren of the District of South Carolina.
U.S. Corporation Sentenced for Importing Illegally-Sourced Wood from the AmazonRead the Press Release
Global Plywood and Lumber Trading LLC (Global Plywood) pleaded guilty today in the U.S. District Court for the District of Columbia to violating the Lacey Act. The corporation admitted that it failed to exercise due care when it imported illegally-sourced timber from the Peruvian Amazon into the United States. The court sentenced Global Plywood to pay $200,000 in restitution to the Ministry of Environment of Peru and a $5,000 fine.
Global Plywood was incorporated in Nevada and operated out of Poway, California. In August 2015, Global Plywood purchased approximately 1,135 cubic meters of hardwood blanks from three Peruvian suppliers. The wood, consisting of species of Virola from the Loreto region of the Peruvian Amazon, arrived at the Port of Houston aboard the M/V Yacu Kallpa on September 27, 2015, where it was seized by Customs and Border Protection (CBP) officers.
Peru issues Forest Travel Guides to establish a chain of custody and ensure that any timber harvested or transported is legal. The Agency for Supervision of Forest Resources and Wildlife (OSINFOR) audits harvest sites to ensure legal compliance. OSINFOR made its findings available on SIGO, an open-source website maintained by the Peruvian government. Importers are able to check SIGO to determine if there have been any irregularities regarding specific harvest permits and Forest Travel Guides. Global Plywood was aware of such public reports detailing instances of illegal logging and fraud within the Peruvian timber industry.
The investigation revealed that approximately 92% of the wood that Global Plywood imported had been unlawfully harvested or transported. In pleading guilty, Global Plywood acknowledged that it failed to exercise due care in that it (i) did not obtain or review relevant harvest permits or Forest Travel Guides prior to import, (ii) failed to check SIGO for irregularities connected to the timber purchased, and (iii) relied on statements made by suppliers without further investigation, a site visit, or other confirmation of the truth of those statements.
The Lacey Act prohibits, among other things, the import of plants, wildlife, or fish without exercising due care to identify the source of the goods. Global Plywood dissolved in 2017, having forfeited and disposed of the illegal timber pursuant to a civil action.
The Trade Enforcement Group of Homeland Security Investigations in Houston and CBP conducted the investigation with assistance from Peruvian authorities. Trial Attorneys Patrick Duggan and Ryan Connors of the Environmental Crimes Section of the Environment and Natural Resources Division prosecuted the case.
U.S. Attorney’s Office presents Medicolegal Symposium to discuss the case against Reta Mays, convicted VA hospital murdererRead the Press Release
CLARKSBURG, WEST VIRGINIA – The U.S. Attorney’s Office, Northern District of West Virginia, is teaming up with Department of Veterans Affairs Office of Inspector General, the FBI, and West Virginia University to hold a symposium discussing the cutting-edge methods used to convict a serial killer who preyed on veterans at the veteran’s hospital in Clarksburg.
In May 2021, Reta Mays, a former nursing assistant at the veteran’s hospital in Clarksburg, was sentenced to seven life terms in prison plus 20 years for murdering seven patients with insulin and attempting to murder an eighth veteran. The two-year investigation that preceded the July 2020 guilty pleas was highly complex.
The symposium consists of examining the clinical, forensic, psychiatry, and legal prosecution techniques used to ensure justice for Mays’ victims and their families. The prosecution team, investigators, and experts from around the globe will be presenting during this dynamic event. The symposium has been approved for CLE and CME credits. Credits for LE in-service are pending.
“The Medicolegal Symposium on the Serial Murder Case of Reta Mays” will be held at the WVU College of Law on Thursday, October 14 from 9:00 a.m.-4:30 p.m. Space is limited. Registration for in-person attendance must be submitted by September 14, 2021.
The training will also be available virtually via the U.S. Attorney’s Office, Northern District of West Virginia’s YouTube channel at https://www.youtube.com/c/usaondwv. Registration for virtual attendance must be received no later than October 12, 2021.
Medical professionals and medical students, attorneys and law students, criminal investigators and criminal justice students are welcome to attend. Registration is free but is required. For more information or to register, go to justice.gov/usao-ndwv.
Watch Acting U.S. Attorney Randolph J. Bernard and Assistant U.S. Attorney Jarod J. Douglas discuss the symposium here: https://youtu.be/FIG0Oef6RYA
Two Federal Felons Charged with Possession of Ammunition Recovered at Murder ScenesRead the Press Release
SAN JUAN, Puerto Rico – A federal grand jury returned two indictments charging Hitler Cintrón-Ortiz and Omar Francisco Delgado-Martínez with being felons in possession of ammunition, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. The Bureau of Alcohol, Tobacco, Firearms and Explosives is in charge of the investigation under the direction of Special Agent in Charge Robert Cekada.
According to the Government’s allegations, Cintrón-Ortiz possessed ammunition that was recovered after a man was shot to death during the early morning hours of October 3, 2018 in Santurce. Cintrón-Ortiz was then on supervised release for a federal sentence related to narcotics.
The indictment against Delgado-Martínez alleges that he possessed ammunition that was recovered after the murder of a 24-year-old man. The man was shot to death during the early morning of March 14, 2020 in the Miramar area of San Juan. At the time, Delgado-Martínez was on supervised release after serving a federal sentence for conspiring with intent to distribute cocaine.
Assistant U.S. Attorneys Juan Carlos Reyes and Jeanette Collazo of the Violent Crimes and National Security Section are in charge of the prosecutions of the cases. If convicted, each defendant faces a sentence of up to ten years in prison.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
###
Two Arkansas Men Found Guilty of Fraud and Money Laundering in Connection with Proposed Elm Springs, Arkansas Wind FarmRead the Press Release
FAYETTEVILLE – A federal jury convicted two Arkansas men today for Wire Fraud, Aiding and Abetting Wire Fraud, Money Laundering and Aiding and Abetting Money Laundering in connection with the development of a wind turbine that was never operational and a proposed wind farm project in Elm Springs, Arkansas, that was never constructed.
According to court documents and evidence presented at trial, Jody Douglas Davis, 46, of Searcy, Arkansas, and Phillip Vincent Ridings 64, of North Little Rock, Arkansas, formed a limited liability company in Texas in 2014 called Dragonfly Industries International, LLC (“Dragonfly”) and Arkansas Wind Power (“AWP”), an Arkansas limited liability company located in Springdale, Arkansas, to develop what they told investors was a revolutionary wind turbine design that was to be installed on a 311-acre wind farm proposed for construction in Elm Springs, Arkansas.
According to the superseding indictment, Davis and Ridings conspired with Cody Fell of Springdale, Arkansas, and others, beginning as early as June 2014 and continuing through and including March 2018, to obtain money from investors who were told that the investors’ money would be used to build a prototype of the wind turbine and develop wind farms in Elm Springs, Arkansas, in Iowa, and other states. The evidence presented at trial showed that Davis and Ridings used most of the $700,000 they obtained from investors for Davis’ and Ridings’ personal use. Specifically, evidence at trial revealed that investors were told that Dragonfly’s wind turbine could produce more energy than the traditional three-blade wind turbines commonly used on existing wind farms; that nationally recognized engineering firms and a University of Memphis mechanical engineering professor had “validated” the Dragonfly wind turbine’s design; that the Department of Defense has expressed strong interest in acquiring Dragonfly’s wind turbines for use in combat zones; that a prototype of the wind turbine was nearing completion; that leaders of underdeveloped countries were ready to buy Dragonfly’s wind turbines; and that a $10 million grant from the Department of Energy was soon to be awarded to Dragonfly, when in truth and fact, none of these representations were true.
Cody Fell pled guilty to Wire Fraud and Tax Evasion in December 2018 and will be sentenced on September 17, 2021. A sentencing date for Davis and Ridings has not yet been scheduled.
Acting U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.
The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation.
Assistant U.S. Attorneys Kyra Jenner and Kenneth Elser prosecuted the case.
Related court documents may be found on the Public Access to Electronic Records website at www.pacer.gov.
Tulsa Man Pleads Guilty for Conspiring with his Girlfriend to Make an Illegal Firearms PurchaseRead the Press Release
TULSA, Okla. – A Tulsa man pleaded guilty Friday in U.S. District Court for conspiring with his girlfriend, a Tulsa Police officer at the time, to lie on a federal firearms transaction form so she could purchase a gun on his behalf, announced Acting U.S. Attorney Clint Johnson.
Devon Jamyll Jones, 28, pleaded guilty to conspiracy to make a false statement to a firearms dealer and to false statement to a firearms dealer.
In his plea agreement, the defendant admitted that he conspired with Latoya Dythe, to illegally purchase a firearm. The two agreed that she would buy a firearm in her name then transfer the gun to Jones. On April 11, 2020, Jones and Dythe drove to a Bass Pro Shop in Broken Arrow to make the purchase. When they arrived, Jones gave Dythe the money to buy the gun. Per their agreement, Dythe then entered the store, selected an FN HERSTAL S.A., 5.7 X 28mm, and lied on a federal firearms transaction form during the purchase. On the ATF Form 4473, Dythe answered “yes” to the question “Are you the actual transferee/buyer of the firearm(s) listed on this form?” Her answer was false since she was purchasing the gun at Jones’ request. When returning to the car, Dythe handed the gun over to Jones.
The ATF Form 4473 specifically issues a warning to purchasers: “Warning: You are not the actual transferee/buyer if you are acquiring the firearm(s) on behalf of another person. If you are not the actual transferee/buyer, the licensee cannot transfer the firearm(s) to you.”
Previously, Dythe, 27, also pleaded guilty to conspiracy to make a false statement to a firearms dealer and with making a false statement to a firearms dealer. On Aug. 10, 2021, she was sentenced to five years of probation and ordered to pay a $1,000 fine.
The FBI and the Tulsa Police Department conducted the investigation. Assistant U.S. Attorney Edward Snow prosecuted the case.
This case was prosecuted as part of the 2150 Initiative. The initiative is a collaborative effort between the U.S. Attorney’s Office for the Northern District of Oklahoma, Tulsa Police Department, ATF, and all other local, state, tribal and federal law enforcement partners to combat violent crime by focusing efforts on prohibited persons in possession of firearms as well as straw purchasers.
Trinitarios Gang Member Charged with Murder of A Confidential InformantRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, Michael J. Driscoll, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), Dermot Shea, Police Commissioner for the City of New York (“NYPD”), and Stuart K. Cameron, Acting Commissioner of the Suffolk County Police Department (“SCPD”), announced that WILLIAM JONES, a/k/a “Principe,” was charged with the murder of a federal confidential informant. JONES was arrested yesterday and will be presented today in Manhattan federal court. The case has been assigned to United States District Judge Edgardo Ramos.
U.S. Attorney Audrey Strauss said: “William Jones allegedly participated in the premeditated murder of Frederick Delacruz solely because Delacruz had the courage to cooperate with law enforcement. The indictment and arrest demonstrate that this office and its partners will be relentless in our pursuit of anyone who seeks to harm a witness to a crime.”
FBI Assistant Director Michael J. Driscoll said: “Those who witness crimes and cooperate with the government to keep our communities safe are vital to our work in arresting criminals and holding them accountable for their criminal acts. Mr. Jones may have allegedly thought murdering an informant would make his problems go away. But violence is never the answer. Instead, he’s now facing up to a lifetime in federal prison for allegedly murdering a man who would have testified against him.”
NYPD Commissioner Dermot Shea said: “Nearly two years ago in eastern Long Island, William Jones allegedly fatally shot a confidential informant who was a fellow Trinitarios gang member. But our NYPD investigators and law enforcement partners worked together from the beginning, never giving up, and we welcome these federal charges by the United States Attorney’s Office in the Southern District of New York to achieve some measure of justice in this case.”
Suffolk County Police Commissioner Stuart K. Cameron said: “The ability for individuals to come forward and work with law enforcement is a critical pillar in police work. Those who have the courage to come forward should be confident their safety is of the utmost importance when pursuing alleged perpetrators of violent crimes, like William Jones. We hope this arrest will reinforce the partnership between members of law enforcement and those who put themselves at risk to provide valuable information in criminal investigations.”
According to the allegations contained in the Indictment:[1]
In or around December 2019, JONES, who is a member of the Trinitarios street gang, and others agreed to kill Frederick Delacruz, who was a member of the Trinitarios and also a confidential informant for law enforcement. On December 28, 2019, JONES and others drove Delacruz from the Bronx to Suffolk County, where they caused Delacruz to be shot and killed.
* * *
JONES, 43, of the Bronx, New York, is charged with two counts of conspiracy to murder a federal informant, each of which carries a maximum penalty of death or life in prison and a mandatory minimum sentence of life in prison; two counts of murder of a federal informant, each of which carries a maximum penalty of death or life in prison and a mandatory minimum sentence of life in prison; and murder through the use of a firearm, which carries a maximum penalty of death or life in prison and a mandatory minimum sentence of five years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Ms. Strauss praised the outstanding investigative work of the FBI, the NYPD, and the Suffolk County Police Department. She also thanked the Suffolk County District Attorney’s Office for its assistance.
The prosecution is being handled by the Office’s Violent & Organized Crime Unit. Assistant United States Attorneys Justin V. Rodriguez and Emily A. Johnson are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Three Peruvian Nationals Sentenced to Incarceration for Conspiring to Defraud Thousands of Spanish-Speaking ImmigrantsRead the Press Release
Three Peruvian nationals have been sentenced to serve several years in prison for operating a series of call centers in Peru that defrauded Spanish-speaking U.S. residents by falsely threatening them with arrest, deportation and other legal consequences.
Fernan Huerta Haro, 34, Jerson Isai Renteria, 38, and Evelyng Milla Campuzano, 36, all from Lima, Peru, were sentenced to 90 months, 100 months, and 90 months in prison, respectively. Each pleaded guilty for their roles in conspiring to commit mail fraud and wire fraud through a series of Peruvian call centers that used false statements and threats to obtain money from Spanish-speaking individuals across the United States. The defendants and their employees falsely told victims that they were required to accept and pay for English-language courses and other educational products and that failure to do so placed them in legal jeopardy. The defendants and their co-conspirators falsely threatened to have their victims arrested and deported in order to collect millions of dollars from victims in South Florida and across the United States. Many of the defendants’ victims were elderly.
“The Department of Justice’s Consumer Protection Branch will pursue and prosecute transnational criminals who defraud vulnerable U.S. consumers,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department's Civil Division. “The defendants in this case defrauded immigrants by falsely promising free products to improve their English. In reality, the defendants were luring their victims into a trap of intimidation and fear, leaving them far worse off – with substantial financial losses and, often, emotional scars from these crimes. Today’s sentences demonstrate that defendants who prey upon U.S. consumers from abroad will not do so with impunity.”
“This case demonstrates that the long arm of justice has no limits when it comes to reaching fraudsters who prey on our nation’s most vulnerable populations,” said Acting U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida. “We will continue to bring American justice to transnational criminals who use fear tactics and intimidation to steal money from immigrants, seniors and others who live in this country.”
“The U.S. Postal Inspection Service constantly strives to protect our communities from predatory criminals seeking to abuse and exploit the most vulnerable members of our society,” said Inspector in Charge Joseph W. Cronin of the USPIS Miami Division. “This particular case is an example of how Postal Inspectors will vigorously pursue these types of crime and ensure that the perpetrators will be brought to justice to pay for the crimes they have committed.”
In pleading guilty, each of these defendants admitted that they and their employees falsely claimed to be lawyers, court officials, federal agents and representatives of a so-called “minor crimes court,” which does not exist. The callers falsely threatened victims with court proceedings, negative marks on their credit reports, imprisonment and immigration consequences if they did not immediately pay for the purportedly delivered products and settlement fees.
Huerta was the co-owner of the Camino al Progreso and Neshuer Corporation call centers in Lima, Peru. From April 2011 until his arrest in July 2019, he and his co-conspirators called victims as well as victims’ family members and friends and fraudulently threatened them with legal consequences if they did not make payments for the purportedly delivered products and settlement fees for English language classes.
Renteria was the co-owner of the Accion Latino and Bienester Hispano call centers in Lima, Peru. In pleading guilty, he admitted that from June 2013 until July 2019, he and his employees falsely impersonated U.S. government officials and falsely threatened victims with court proceedings, imprisonment and immigration consequences.
Milla was Renteria’s co-owner at the Accion Latino call center. From 2013 until her arrest in 2019, she also threatened and intimidated Spanish-speakers in the United States by overseeing call centers that impersonated U.S. law enforcement and demanded payments from vulnerable victims across the United States.
Huerta, Renteria and Milla were arrested in July 2019 by Peruvian authorities based on a U.S. extradition request, and each has remained incarcerated since that time. The defendants were extradited to the Southern District of Florida in October 2020. A co-defendant Omar Cuzcano was previously sentenced to serve 90 months in prison. Another co-defendant Henrry Milla Campuzano will be sentenced by U.S. District Judge Robert N. Scola Jr. on Sept. 21.
Two additional defendants in the case – Carlos Alberto Espinoza Huerta and Josmell Arturo Espinoza Huerta – evaded arrest at the time of their five co-defendants’ arrests in Peru. They were subsequently located and extradited to the United States on June 25, and are being detained at the Federal Detention Center in Miami. Their trial is scheduled to begin on Feb. 14, 2022, before Judge Scola.
U.S. Postal Inspection Service and the Civil Division’s Consumer Protection Branch investigated the case, along with the department’s Transnational Elder Fraud Strike Force. Senior Trial Attorney Phil Toomajian and Trial Attorney Max Goldman of the Consumer Protection Branch are prosecuting the case. The Federal Trade Commission, the Justice Department’s Office of International Affairs, the U.S. Attorney’s Office for the Southern District of Florida, the State Department’s Diplomatic Security Service, and the Peruvian National Police provided critical assistance.
The Consumer Protection Branch coordinates the department’s Transnational Elder Fraud Strike Force, working with U.S. Attorney’s Offices and law enforcement agencies to investigate and prosecute scams run by transnational criminal organizations, including mass mailing, telemarketing, and tech support scams. For more information about the Consumer Protection Branch, visit its website at http://www.justice.gov/civil/consumer-protection-branch
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Tax Preparer Pleads Guilty to Stealing from His Clients and Filing False Tax ReturnsRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced today that CARLOS DE LA TORRE pled guilty before United States District Judge Naomi Reice Buchwald to one count of mail fraud and two counts of filing false income tax returns in connection with a years-long scheme to steal from the clients of his tax preparation business and defraud the Internal Revenue Service (“IRS”) and New York State Department of Taxation and Finance (“NYSDTF”).
U.S. Attorney Audrey Strauss said: “As he admitted today, Carlos De La Torre defrauded his tax preparation clients by converting to his own use money the clients had been told they owed the IRS and New York State. As he further admitted, De La Torre defrauded the IRS and the State by seeking refunds for overpayments of his taxes that were actually the funds he stole from his clients, and by failing to report those stolen funds as income. Now Carlos De La Torre awaits sentencing for his crimes.”
According to the allegations in the Complaint, Information, and statements made in court:
DE LA TORRE is a tax preparer and the sole proprietor of a bookkeeping and tax preparation business in New York, New York. From at least in or about 2014, through at least in or about 2020, DE LA TORRE represented certain small businesses based in New York City and their owners (the “Victims”) in connection with the preparation and filing of their personal and business federal and state tax returns. During that time period, DE LA TORRE told the Victims how much they allegedly owed in state and federal personal and business taxes, and the Victims gave DE LA TORRE checks in those amounts.
Instead of submitting the Victims’ checks as payments to be applied toward the Victims’ federal and state tax liabilities, DE LA TORRE fraudulently altered the checks and mailed them to the IRS and the NYSDTF as estimated tax payments to be credited against his own personal tax liabilities. Those payments greatly exceeded DE LA TORRE’s own tax liabilities each year. At the end of each tax period, DE LA TORRE fraudulently sought and received refunds from the IRS and the NYSDTF for the total amount of the altered checks he submitted to each agency, less any amount DE LA TORRE actually owed in taxes. Refunds from the IRS and the NYSDTF were wired by the U.S. Treasury and New York State, respectively, directly into DE LA TORRE’s personal bank account. In total, DE LA TORRE stole more than $466,000 from the Victims through this scheme.
DE LA TORRE also filed false tax returns with the IRS and NYSDTF in connection with this scheme, by failing to report on his tax returns the money he stole from the Victims. Had DE LA TORRE reported that income, as he was required to do, his total tax liability each year would have been much greater than it was, and he would not have been entitled to the refunds that he claimed. As a result, DE LA TORRE defrauded the IRS and NYSDTF of a total of at least $91,663 (including interest).
* * *
DE LA TORRE, 79, of Little Neck, New York, pled guilty to one count of mail fraud, in violation of Title 18, United States Code, Section 1341, which carries a maximum sentence of 20 years in prison, and to two counts of subscribing to false individual tax returns, in violation of Title 26, United States Code, Section 7206(1), each of which carries a maximum sentence of three years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge. DE LA TORRE is scheduled to be sentenced by Judge Buchwald on December 21, 2021.
Ms. Strauss praised the outstanding investigative work of IRS Criminal Investigation and NYSDTF.
The prosecution of this case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Sarah L. Kushner is in charge of the prosecution.
Springfield Man Sentenced for ExtortionRead the Press Release
BOSTON – A Springfield man was sentenced today in federal court in Springfield for collecting on an extension of credit by extortionate means.
Anthony J. Scibelli, 52, was sentenced by U.S. District Court Judge Mark G. Mastroianni to six months in prison and two years of supervised release. Scibelli was also ordered to pay restitution of $200 and forfeiture of $1,300. On April 6, 2021, Scibelli pleaded guilty to one count of collecting on an extension of credit by extortionate means.
Beginning in 2017, Scibelli made collections on a $5,000 loan to the victim, who made monthly payments of $1,300 until June 2019. Scibelli used threats as he attempted to collect on that line of credit. Specifically, on June 19, 2019, Scibelli beat the victim for failing to make the monthly $1,300 payment. During the beating, the defendant threatened that the victim must have all the money “on the first,” referring to the 1st of the month.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police made the announcement today. Assistant U.S. Attorney Neil Desroches of Mendell’s Springfield Branch Office and Trial Attorney Marianne Shelvey of the Department of Justice’s Criminal Division’s Organized Crime and Gang Section prosecuted the case.
Southwestern PA Man Charged with Possessing CocaineRead the Press Release
PITTSBURGH, PA - A southwestern Pennsylvania man has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal narcotics laws, Acting United States Attorney Stephen R. Kaufman announced today.
The one-count Indictment, returned on August 25 and unsealed today, named Leonard Jackson, age 45, of Washington, PA and/or Brownsville, PA, as the sole defendant.
According to the Indictment, Jackson possessed with the intent to distribute 500 grams or more of cocaine on or about June 3, 2021.
The law provides for a minimum of five years and up to 40 years in prison, a fine of up to $5,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Yvonne M. Saadi and Jonathan D. Lusty are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation leading to the Indictment in this case.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
South Florida Immigration Consultant, Husbands, Wives Charged with Marriage FraudRead the Press Release
Miami, Florida – Federal prosecutors have charged 47-year-old Miami resident Yamira Sanchez with helping foreign national men fraudulently obtain their United States green cards by brokering their marriages to Cuban-born women living in South Florida as United States citizens or legal permanent residents. These brokered marriages allowed the foreign men to take advantage of accelerated immigration benefits under the Cuban Adjustment Act.
According to the indictment unsealed this week in federal district court in Miami, Sanchez owned Immigration Consultant and Immigration Corp., a South Florida company that offered immigration application and other services to the public. Some of the services were illegal, says the indictment. It is alleged that Sanchez and her co-conspirators profited from arranging fraudulent marriages between men from Italy with no legal status in the United States and women who had been born in Cuba, immigrated to the United States, and obtained legal status here as United States citizens or legal permanent residents. Because the women had been born in Cuba, the Cuban Adjustment Act allowed them to seek expedited immigration benefits for their foreign national husbands: immediate legal permanent residence in the United States, in most cases.
In exchange for thousands of dollars from men they barely knew, the women – all recruited by Sanchez and her co-conspirators – married the men and filed immigration petitions on their behalf, asking the United States government to grant legal permanent residence status to their newly-minted husbands, says the indictment. This allowed the men to permanently reside and legally work in the United States. It was Sanchez, through her company, who prepared, notarized, and filed the marriage and immigration paperwork necessary to secure immigration benefits for the Italian men, according to the indictment.
The indictment charges Sanchez with one count of conspiring to commit marriage fraud and five counts of unlawfully encouraging an alien to reside in the United States. If convicted, she faces up to 10 years in prison and a fine of up to $250,000.
The indictment also charges husband-beneficiaries Gennaro di Tommaso (32), Massimillano di Napoli (47), Fernando Sivo (25), Alessio Sarno (31), and Vincenzo Lopopolo (34), with conspiracy and marriage fraud, for which they face up to five years in prison and a fine of up to $250,000. It charges wife-petitioners Yaneisi Osorio Rodriguez (35), Emily Perez (30), Jaileen Dominguez (23), Elizabeth Penalver (29), and Loi Torriente (29), with conspiracy, marriage fraud, and one count each of unlawfully encouraging an alien to reside in the United States. If convicted, they face up to 10 years in prison and a fine of up to $250,000.
Defendants made their initial appearances this week before U.S. Magistrate Judge Edwin G. Torres. They are free on bond, pending trial.
Juan Antonio Gonzalez, Acting U.S. Attorney for the Southern District of Florida, and Anthony Salisbury, Special Agent in Charge, Homeland Security Investigations (HSI), Miami Field Office, announced the charges.
HSI Miami investigated this matter with assistance from United States Citizenship and Immigration Services. Assistant U.S. Attorney Will J. Rosenzweig is prosecuting the case. Assistant U.S. Attorney Annika Miranda is handling asset forfeiture.
An indictment contains mere allegations and defendants are innocent until proven guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov, under case no. 21-cr-20434.
###
Richland Medical Doctor Pleads Guilty to Conspiracy to Distribute Fentanyl, Oxycodone and Other Controlled SubstancesRead the Press Release
Spokane – Joseph H. Harrington, Acting United States Attorney for the Eastern District of Washington, announced today that Dr. Janet Sue Arnold, age 63, of Benton City, Washington, pleaded guilty to conspiracy to distribute and possess with intent to distribute opioid pain medications (specifically, fentanyl, oxycodone, methadone, hydromorphone, methylphenidate, and amphetamine mixture) and other controlled substances (carisoprodol and alprazolam), without a legitimate medical purpose and outside the usual course of professional practice. Dr. Arnold faces a maximum term of imprisonment of twenty years. United States District Judge Edward F. Shea accepted Dr. Arnold’s guilty plea and scheduled a sentencing hearing for December 7, 2021, at 1:15 p.m. in Richland, Washington. Dr. Arnold is the final defendant to plead guilty in the case. Four other defendants, Danielle Corine Mata, age 44, of Richland, Washington, David Barnes Nay, age 43, of Kennewick, Washington, Lisa Marie Cooper, age 55, of Prosser, Washington, and Jennifer Cheri Prichard, age 46, of Prosser, Washington, previously pleaded guilty to conspiracy to distribute and possess with intent to distribute opioid pain medications and other controlled substances, and are scheduled to be sentenced on October 19, 2021, November 2, 2021, and November 9, 2021, in Richland, Washington.
According to court documents and information disclosed during court proceedings, Dr. Arnold owned and operated Desert Wind Family Practice, at 431 Wellsian Way in Richland, Washington. Beginning in approximately March 2016, and continuing until May 3, 2017, Dr. Arnold pre-signed hundreds of blank prescription forms and provided them to Mata, Prichard, and Cooper, who were drug addicts. These individuals then provided the illegal prescriptions to individuals seeking opioids and other controlled substances or used the prescriptions to get their drugs of choice. Dr. Arnold allowed Mata, who also acted as Desert Wind Family Practice’s office manager, to fill in all the required prescription information (patient name, drug type, dosage, and quantity) on the pre-signed blank prescriptions. Dr. Arnold’s practice of pre-signing blank prescription forms enabled the conspirators, including Nay, a drug dealer and addict, to distribute significant quantities of opioid medications and other controlled substances.
Acting United States Attorney Joseph H. Harrington said, “Dr. Arnold abandoned her role as a medical doctor by essentially turning over her prescription pad to her office manager and others. Today’s guilty plea should serve as a warning to all medical professionals that if you abuse your medical license by prescribing opioids and other drugs without a legitimate medical purpose and outside the usual course of professional practice, you will be held accountable. I commend the U.S. Drug Enforcement Administration and the U.S. Department of Health & Human Services, Office of the Inspector General, agents who investigated this case.”
This investigation was conducted by the U.S. Drug Enforcement Administration and the U.S. Department of Health & Human Services, Office of the Inspector General. This case is being prosecuted by George J.C. Jacobs, III and Dominique J. Park, Assistant United States Attorneys for the Eastern District of Washington.
Registered Sex Offender Sentenced for Possessing Child PornographyRead the Press Release
WILMINGTON, N.C. – A Washington, North Carolina man was sentenced to 210 months in prison for possession of child pornography followed by a lifetime of supervised release. On April 8, 2021, Nathanael Thomas Jackson pled guilty to the charges.
According to court documents and other information presented in court, Jackson, 28, possessed over 10,000 images of child pornography. The investigation began in 2018 with a cybertip that Jackson had uploaded two videos depicting sexual abuse of children to an online account. Agents were able to trace the uploads back to Jackson. Using search warrants, agents found Jackson in possession of 10,715 images, including videos, of child sexual abuse and child exploitation. The investigation uncovered that Jackson had used a pseudo identity and email account to coerce and threaten minors to send him explicit images of themselves.
Jackson is a registered sex offender from previous convictions in 2015 for incest in Perquimans County, North Carolina.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Richard E. Myers II. The Federal Bureau of Investigation and the North Carolina State Bureau of Investigation investigated the case, with assistance from the Beaufort County Sheriff’s Office, the Michigan State Police, the National Center for Missing and Exploited Children and the Beaufort County District Attorney’s Office. Assistant U.S. Attorney John Parris prosecuted the case.
This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 4:20-CR-00094-M.
Progress Towards Reforming the UAWRead the Press Release
Acting U.S. Attorney Saima S. Mohsin announced that progress has been made towards reforming the International Union, United Automobile, Aerospace, and Agricultural Workers of America (“UAW”). The UAW represents over 400,000 active members and over 580,000 retired members in more than 600 local unions across the United States.
Previously, numerous high-level officials of the UAW had been the subject of criminal prosecutions based on fraud, corruption, embezzlement, and labor law violations. These prosecutions had resulted in the criminal convictions of two UAW Presidents, Gary Jones and Dennis Williams, two UAW Vice Presidents, Joseph Ashton and Norwood Jewell, as well as seven other senior UAW officials.
Following the completion of a significant portion of the criminal investigation, the United States brought an anti-corruption and anti-fraud civil action against the UAW in December 2020 seeking injunctive and equitable relief in order to stop the fraud and corruption and to reform the UAW. After the United States filed its civil complaint against the UAW in United States of America v. UAW, Case No. 20-cv-13293-Lawson, and after extensive negotiations, the United States and the UAW entered into an agreement to resolve the case through a Consent Decree. The Consent Decree governing the UAW was entered by the Honorable David M. Lawson, United States District Judge, on January 29, 2021.
Under the terms of the Court’s Consent Decree, the Court appointed an independent Monitor who has the authority to exercise disciplinary powers within the UAW, to investigate possible fraud or corruption within the union, and to seek discipline against UAW officers and members before a UAW Trial Committee, or before an independent Adjudications Officer appointed by the Court. Members can report misconduct by UAW officials to the Monitor at https://www.uawmonitor.com. The Monitor’s oversight of the union will last for six years, with a possible early termination if the Monitor were to find that his work is complete, and the UAW no longer needs the Monitor’s services, or extension if the Monitor or the parties feel that a longer period is appropriate.
The Consent Decree fully and finally resolved the criminal and civil investigation of the UAW as an entity. The UAW agreed to resolve a tax investigation by making a payment of $1.5 million to the Internal Revenue Service in connection with administrative fees that the union received from the three joint training centers that were operated with the three car manufacturers. The UAW has made that payment to the IRS. In addition, the UAW has already paid back over $15 million to the training centers for improper chargebacks that the union received from two of the training centers. This money will be used by the joint programs for the health and safety of auto workers. The National Training Center, which was the mechanism whereby FCA US LLC executives corruptly funneled money and other things of value to UAW officials will be dissolved and replaced with an untainted entity.
After undergoing a rigorous selection process, the U.S. Attorney’s Office selected Neil M. Barofsky to serve as the Monitor of the UAW and asked the Court to so appoint him. On May 12, 2021, Judge Lawson entered an order appointing Mr. Barofsky as the UAW Monitor. Mr. Barofsky is a partner at the law firm of Jenner & Block. There, he leads the firm’s monitorship practice, and has served as a monitor in other matters, including his appointment to monitor Credit Suisse Securities LLC and Credit Suisse AG following billion dollar settlements. In these matters, Mr. Barofsky was separately appointed by the Department of Justice and the New York State Department of Financial Services. Prior to Mr. Barofsky’s employment with Jenner & Block, he worked as an Assistant United States Attorney in the United States Attorney’s Office in the Southern District of New York. He was also appointed to be the initial Special Inspector General for the Troubled Asset Relief Program (or TARP), an investigative agency that he built from scratch. The Monitor’s staff includes experts in auditing, compliance, internal investigations, labor law, and labor elections.
Since Mr. Barofsky became the Monitor in May 2021, he has taken a number of actions in furtherance of the Consent Decree’s goal of reforming the UAW and blocking additional criminal conduct.
First, the Monitor has been diligently working towards holding the referendum provided for by the Consent Decree. The Consent Decree requires that the referendum occur by November 12, 2021. The Monitor has directed that the referendum take place by a secret-ballot vote of all of the membership, overseen by the Department of Labor. The referendum will determine whether to change the UAW’s election method from the current delegate system to a direct election model, where the entire UAW membership could vote for the UAW President and the other members of the UAW’s International Executive Board. Through the referendum, members will decide whether the UAW’s constitution will be changed to provide for a direct election system in the union, sometimes referred to as “one member, one vote,” starting in the 2022 election cycle.
The Monitor has been working closely with officials from the Department of Labor’s Office of Labor Management Standards (“OLMS”) to plan and organize the referendum. OLMS is the department’s expert in conducting and overseeing labor union elections. The Monitor has directed that the referendum will be conducted by mail-in voting so-as-to ensure that all active and retired UAW members will have an opportunity to participate fully in the referendum. The Monitor has issued interim rules governing the conduct of the referendum. The rules direct that no UAW dues money can be used to campaign for or against the referendum. The rules can be found here: https://www.uawmonitor.com/electionsreferendum.
Acting US Attorney Mohsin stated, “The UAW Monitor has made significant progress over the past three months in implementing reform in the UAW. The November referendum provides a historic opportunity for the UAW’s rank and file membership to be heard on whether to change the union’s election system. We insisted that the Consent Decree give the union’s membership the opportunity to decide for themselves whether to change to a direct election system because of the pervasive culture of corruption that has plagued the UAW’s leadership for so many years. We encourage all UAW members to educate themselves on the issues in the referendum, make up their own minds, and let their voices to be heard by casting a vote in the referendum.”
As part of the referendum process, the UAW Monitor has gone live with a Website, www.uawmonitor.com, to provide information to the UAW’s membership and to the public about the Referendum and about the Monitor’s activities. The Monitor is planning a joint webcast in the fall so that both sides on the issue presented by the referendum will be able to make their case to the UAW’s membership.
A second aspect of the work of the UAW Monitor is to investigate misconduct by UAW officials and then, where appropriate, to bring internal UAW charges against any official found by the Monitor to have engaged in misconduct. The UAW Monitor will present and try these charges before the UAW Adjudications Officer. The Adjudications Officer is another official to be appointed under the terms of the Consent Decree. The Adjudications Officer will have the power to act as the judge and factfinder of the disciplinary charges brought by the UAW Monitor. The Adjudications Officer will have the power to punish UAW officials who engage in misconduct as found by the Monitor. The punishments could include, for example, expulsion from the UAW or termination from UAW positions.
The UAW Monitor has already begun investigating historical acts of misconduct that were discovered by the United States during the criminal investigation in instances where the United States has decided not to bring criminal charges. As part of this process, prosecutors with the U.S. Attorney’s Office and federal law enforcement agents have been meeting with the Monitor’s staff to provide information about historical misconduct. As part of this process, the United States has provided the Monitor, as an arm of the Court and pursuant to Court order, with various investigative materials to assist the Monitor in investigating historical misconduct. The United States has also sought and received permission from the Court to provide the Monitor with certain grand jury materials relating to closed matters and with copies of sealed search warrant applications. Finally, members of the Monitor’s staff have met with a number of individuals who have been cooperating with the government’s criminal investigation. The Monitor is seeking to gather additional information for purposes of deciding whether any internal disciplinary charges are appropriate against any UAW officials or members.
Besides planning and organizing the upcoming referendum and beginning to investigate possible internal misconduct, the Monitor is also in the process of reviewing audit, accounting, and financial controls at the UAW. The Monitor is assessing the controls the UAW has implemented to meet its obligations under the Consent Decree, is identifying gaps and areas of improvement through rigorous testing protocols, and is overseeing the implementation of further reforms by the UAW and its consultants. In addition, the Monitor has the right under the Consent Decree to disapprove certain employment and contractual decisions by the UAW, and to review relevant financial data, books, records, audit findings, and other similar records.
The United States will soon propose to the Court a candidate to serve as the UAW Adjudications Officer. The Court will then decide whether to appoint that individual as the Adjudications Officer. If appointed, the Monitor will be able to bring internal UAW disciplinary matters before the Adjudications Officer if appropriate.
The Consent Decree governing the UAW is being handled by Assistant U.S. Attorneys David A. Gardey and Steven Cares.
Previously Convicted Baltimore Bank Robber Pleads Guilty to Committing Two Bank Robberies at the Same Bank Within One WeekRead the Press Release
Baltimore, Maryland – Lloyd Phillip Simon, age 71, of Baltimore, Maryland, pleaded guilty today to bank robbery, in connection with two 2019 bank robberies at the same bank within one week.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; and Commissioner Michael Harrison of the Baltimore Police Department.
According to his guilty plea, on August 13 and August 19, 2019, Simon robbed a bank located in the University of Maryland Medical Center. In each instance, Simon entered the lobby of the Medical Center, partially obscuring his face by wearing a baseball hat and large glasses. Upon entering the bank, Simon approached a teller and demanded money. In the first robbery, Simon told the teller he had a gun. Fearing for their safety, the tellers gave Simon money and he left the bank.
Specifically, on August 13, 2019, a video surveillance camera captured Simon walk into the lobby of the Medical Center wearing a black jacket, white shirt, black and white shorts, and black and white shoes. He also wore a purple and gold lanyard around his neck. His face was partially hidden by a grey baseball hat and large glasses. Simon obtained a white wristband from the receptionist, which allowed him access to the food court and bank area of the Medical Center. As Simon walked toward the bank, he reached into a donation bin located in the atrium and took one of the donations placed there - a black backpack. He then approached the bank and placed his black jacket and the newly acquired black backpack on a bench outside the bank. Simon immediately approached Bank Teller #1, who was in the process of counting money from the bank’s night drop. Simon demanded money from Bank Teller #1, stating, “Give me that money. I have a gun. No dye packs.” Fearing for her safety, Bank Teller #1 gave Simon all of the money that she had been counting. Simon left the bank, grabbing the backpack and black jacket, as he quickly walked away. Simon donned the black jacket to cover his white shirt and as he exited the Medical Center, he took off his hat and glasses. Simon’s face was captured on an outdoor video surveillance camera.
On August 19, 2019 Simon robbed the same bank. A video surveillance camera captured Simon entering the Medical Center lobby, where he again obtained a white wristband from the receptionist. Simon was wearing different clothing—a black and grey striped shirt; red shorts; black, white, and red shoes; and a lanyard depicting flames. Simon again wore large glasses and a baseball cap – a blue LA Dodgers baseball cap, to partially obscure his face. This time, Simon went through a back corridor before approaching the bank and did not immediately enter the bank. Instead, Simon is observed on video surveillance peering toward the bank, then sitting down on a bench outside of the bank. Simon waited on the bench until the bank security guard left on his lunch break. Simon then donned his glasses and entered the bank. Bank Teller #1 immediately recognized Simon from the previous robbery the week before. She told Simon to go wait in line, and then went to press the panic button. Simon approached Bank Teller #2, and stated words to the effect of “Give me all of your money, I want the big stuff!” Fearing for her safety, Bank Teller #2 gave him money, and Simon stated, “Hurry up, I’m not joking!” Simon continued to demand more money, so Bank Teller #2 gave Simon more money, and she slipped a hidden GPS tracking device into the money. As Simon left the bank, he is observed on camera fanning through the money that he took from Bank Teller #2. Simon found the hidden GPS tracking device, removed it from the wad of cash and dropped the tracker on the floor of the bank as he left. Simon quicky left the Medical Center, and outdoor video cameras captured Simon’s image after he took off his hat and glasses.
On August 28, 2019, investigators obtained and executed a search warrant at Simon’s apartment. Law enforcement recovered the two lanyards, shorts, shoes, and a shirt that matched the clothing worn by Simon during the robberies, as well as a black backpack consistent with the backpack Simon took from the donation bin. In addition, investigators recovered a single round of .357 Magnum ammunition in Simon’s kitchen cabinet.
On January 29, 2013, Simon was sentenced to 78 months in federal prison, after being convicted of bank robbery. As a result of this conviction, Simon knew he was prohibited from possessing ammunition.
Simon faces a maximum sentence of 20 years in federal prison for bank robbery. U.S. District Judge Catherine C. Blake has not yet scheduled a sentencing date.
Acting United States Attorney Jonathan F. Lenzner commended the FBI and the Baltimore Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Christine Duey and Mary Setzer, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
# # #
Postal Service Employee Charged with Stealing MailRead the Press Release
Jacksonville, Florida – Acting United States Attorney Karin Hoppmann announces the unsealing of an indictment charging James Gregory Sweat (60, Jacksonville) with theft of mail by a United States Postal Service employee. If convicted, Sweat faces a maximum penalty of five years in federal prison.
According to the indictment, on June 4, 2021, while serving as a United States Postal Service employee, Sweat took a greeting card from the mail and stole cash contained inside.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the U.S. Postal Service – Office of Inspector General. It will be prosecuted by Assistant United States Attorney Scot Morris.
Pennsylvania Man Sentenced to More than Eight Years in Prison for Sex Offense Against MinorRead the Press Release
BECKLEY, W.Va. – A Pennsylvania man was sentenced today to 97 months in prison for a sex offense against a minor. Gregory Thomas O’Connor, 48, of Stahlstown, Pennsylvania, previously pleaded guilty to travel in interstate commerce to engage in illicit sexual activity with a minor. Following release from prison, O’Connor will be placed on 15 years of supervised release and will be required to register as a sex offender.
According to court documents, O’Connor admitted that on August 7, 2020, he initiated contact with a person on a Kik Messaging group for West Virginia teens. Believing this person to be a 13-year-old girl from Beckley, O’Connor engaged in conversations over the next 6 weeks wherein he told the minor he wanted to meet her to engage in sexual activity and also coached her on masturbation and watching pornography in order to prepare for their sexual encounter. On September 2, 2020, O’Connor intended to travel to Beckley to meet the minor. He drove from Pennsylvania to Fairmont but then had to turn around due to a work emergency. He continued to discuss traveling at a future date to meet the girl for sexual activity.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the FBI Child Exploitation and Human Trafficking Task Force.
United States District Judge Frank W. Volk imposed the sentence. Assistant United States Attorneys Jennifer Rada Herrald and Timothy Boggess are handling the prosecution.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:21-cr-00073.
###
Omaha Woman Sentenced for Role in Sex Trafficking of MinorsRead the Press Release
Acting United States Attorney Jan Sharp announced that Lauryn Besta, 22, of Omaha, Nebraska, was sentenced today in federal court in Omaha for conspiracy to engage in sex trafficking of a minor. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Besta to 142 months’ imprisonment. There is no parole in the federal system. After her release from prison, Besta will begin a five-year term of supervised release.
An investigation conducted by Homeland Security Investigations and the Nebraska Attorney General’s Office determined that from January 2016 and continuing through January 2019, in the District of Nebraska and elsewhere, Besta (also known as “Lola”) and a co-defendant, Darien Brewer, conspired and agreed to recruit, transport, and entice four minor females, under the age of 18 years old, to engage in commercial sex. The victims were introduced into the lifestyle of prostitution through the use of drugs and alcohol provided by Besta and Brewer. Besta and Brewer often referred to the minors as “the Bunny Gang.”
Investigators determined that Besta and Brewer would instruct the minors how to advertise, solicit, and charge for commercial sex acts in the District of Nebraska and elsewhere. They obtained commercial sex customers for the minors by purchasing and posting advertisements on internet sites such as www.backpage.com. Sex customers responded to the advertisements via telephone and text message and commercial sex acts were coordinated to occur at various hotels, motels, and other locations. Besta and Brewer used vehicles and public highways to drive the minors to various hotels, motels, and other locations for commercial sex acts, including Omaha, Nebraska; Lincoln, Nebraska; Iowa; and Houston, Texas. The minors paid a portion or all of the payments received for commercial sex acts to Besta and Brewer.
On August 27, 2021, Chief Judge Rossiter sentenced Brewer to 180 months’ imprisonment and a five-year term of supervised release.
This case was investigated by Homeland Security Investigations and the Nebraska Attorney General’s Office.
Omaha Man Gets 120 Months’ Imprisonment for Possessing Child PornographyRead the Press Release
Acting United States Attorney Jan Sharp announced that Tevin R. King, 28, of Omaha, Nebraska, was sentenced today in federal court in Omaha for possession of child pornography. Senior United States District Judge Joseph F. Bataillon sentenced King to 120 months’ imprisonment. There is no parole in the federal system. After his release from prison, King will begin a 15-year term of supervised release. Senior Judge Bataillon also ordered King to pay $3,000 in restitution and he will be required to register as sex offender.
On November 14, 2019, King self-reported to the United States Probation Office that he had viewed child pornography on his computer in his apartment in Omaha, Nebraska. King was previously convicted of possession of child pornography in the Northern District of Oklahoma on May 18, 2017 and was sentenced to 24 months’ imprisonment followed by a term of supervised release. After his release from prison, King moved to Nebraska where his term of supervised release was enforced.
On November 18, 2019, the United States Probation Office subsequently conducted a search of King’s residence to retrieve his computer. During the search of the residence, King admitted to looking at child pornography on his computer. He also admitted that he acquired and viewed the child pornography using the internet through the “dark web,” or Tor. King admitted using a computer cleaning software program to wipe child pornography files from his computer.
A forensic search of King’s computer identified at least 10 images of child pornography. The images depicted nude or semi-nude, prepubescent females, between 5-10 years old, engaging in sexually explicit conduct, which included exhibiting their genitals and pubic areas.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Omaha FBI's Child Exploitation and Human Trafficking Task Force.