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25 August 2021
Jefferson County man admits to sex offender registry violationRead the Press Release
MARTINSBURG, WEST VIRGINIA – Frederick M. Hilliard, of Charles Town, West Virginia, has admitted to a sex offender registry charge, Acting United States Attorney Randolph J. Bernard announced.
Hilliard, 66, pleaded guilty today to one count of “Failure to Register.” Hilliard admitted to not updating his sex offender registration from February to October 2019 in Jefferson County, as required by law, because of a rape conviction in Pennsylvania.
Hilliard faces up to 10 years of incarceration and fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Kimberley D. Crockett is prosecuting the case on behalf of the government. The U.S. Marshals Service investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Jay Man Sentenced for Conspiring to Distribute MethamphetamineRead the Press Release
BANGOR, Maine: A Jay man was sentenced today in federal court for conspiring to distribute and possess with intent to distribute methamphetamine, Acting U.S. Attorney Donald E. Clark announced.
U.S. District Judge Lance E. Walker sentenced Brian Holmes, 42, to 200 months in prison and 10 years of supervised release. Holmes pleaded guilty in February 2020.
According to court records, between January 2017 and August 2018, Holmes and other members of the conspiracy distributed large quantities of methamphetamine in northern Maine. Holmes recruited and directed others to distribute the drugs. Holmes and other members obtained the drugs from out-of-state sources in Colorado and Arizona. The organization sent thousands of dollars in cash to those sources to supply its drug trafficking enterprise.
The U.S. Drug Enforcement Administration and the Maine Drug Enforcement Agency investigated the case.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Harrison County woman admits to drug chargeRead the Press Release
ELKINS, WEST VIRGINIA – Nicole Elaine Cosner, of Clarksburg, West Virginia, has admitted to a drug charge, Acting U.S. Attorney Randolph J. Bernard announced.
Cosner, 34, pleaded guilty today to one count of “Distribution of Buprenorphine – Aiding and Abetting.” Cosner admitted to selling Buprenorphine in September 2019 in Grant County.
Cosner faces up to 10 years of incarceration and a fine of up to $500,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Potomac Highlands Drug Task Force, a HIDTA-funded initiative, and the Grant County Sheriff’s Office investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Harrisburg Man Sentenced to Eight Years’ Imprisonment for Fentanyl TraffickingRead the Press Release
HARRISBURG—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Julio Feliciano, age 27, of Harrisburg, Pennsylvania, was sentenced today to eight years’ imprisonment by United States District Judge Sylvia H. Rambo for possession with intent to distribute fentanyl.
According to Acting United States Attorney Bruce D. Brandler, Feliciano previously admitted to possessing over ten grams of fentanyl at a residence in Harrisburg in September 2018. Law enforcement also recovered from the residence drug-packaging materials, an Iver Johnson Arms revolver, and ammunition.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Pennsylvania Office of Attorney General, and the Pennsylvania State Police. Assistant U.S. Attorney Carlo D. Marchioli prosecuted the case.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.”
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Gun Smuggler Who Worked at Consulate Sentenced to Almost 4 Years in PrisonRead the Press Release
TUCSON, Ariz. –Luis Manuel Bray-Vazquez, 35, a Mexican citizen, was sentenced yesterday by U.S. District Judge Jennifer G. Zipps to 46 months in prison for attempting to smuggle firearms from the United States into Mexico. Bray-Vasquez previously pleaded guilty.
On November 4, 2020, Bray-Vazquez, a driver for the United States Consulate in Nogales, Sonora, Mexico, attempted to enter Mexico through the Nogales Port of Entry while driving a U.S. Consular vehicle. Customs and Border Protection officers tried to conduct an outbound border search of the vehicle, but Bray-Vazquez fled from the officers at a high rate of speed. Officers reacted quickly and were able to close the exit gate to prevent Bray-Vazquez from entering Mexico. They searched the Consular vehicle that Bray-Vazquez was driving and found a total of ten rifles and five pistols, including a Barrett .50 caliber rifle and several AK-47 and AR variant rifles and pistols. Bray-Vazquez admitted he was being paid to smuggle the firearms into Mexico and that he had successfully done so on previous occasions.
“The trafficking of weapons from the United States into Mexico – especially of the type and quantity smuggled by Bray-Vazquez – has devastating repercussions in both countries,” said Acting United States Attorney Glenn B. McCormick. “Bray-Vazquez’s prosecution and the length of sentence imposed should serve as a warning that weapons smugglers, including anyone attempting to hide behind the veil of an official position, will pay a heavy price for their crimes.”
“This sentence demonstrates that there are serious consequences for those who lack respect for our nation’s laws or our borders,” said Scott Brown, special agent in charge for HSI Phoenix. “HSI remains committed to combating the illegal smuggling of firearms that fuel violence both domestically and abroad. We will continue to collaborate with our law enforcement partners to get dangerous criminals off the streets and locked up behind bars.”
Homeland Security Investigations conducted the investigation in this case, with the assistance of Customs and Border Protection. Assistant U.S. Attorney Angela W. Woolridge, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: 21-0655-TUC-JGZ
RELEASE NUMBER: 2021-055_Bray-Vazquez# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Greenville Man Sentenced for Drug OffenseRead the Press Release
NEW BERN, N.C. – A Greenville man was sentenced yesterday to 110 months in prison for possessing heroin and fentanyl with intent to distribute. On December 12, 2019, Tobia Mila Moye pled guilty to the charge. Moye was also serving a term of federal supervised release at the time of the new offense.
According to court documents and other information presented in court, Moye, 42, possessed approximately eighty-five grams of a heroin and fentanyl mixture in March 2019. He had just purchased the drugs and had enlisted the help of another person to drive him to the deal. Moye was released from federal prison in July 2017 after serving a 102-month sentence for a cocaine and cocaine base (crack) conspiracy. Moye began serving a term of supervised release in December 2017 and resumed selling drugs within the year, continuing until the time of his arrest.
Moye was also sentenced to 46 months in prison on the revocation of supervised release of which 24 run concurrent with the new charges, for a total of 132 months in prison on the new conduct and revocation combined.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Greenville Regional Drug Task Force investigated the case, and Assistant U.S. Attorney Lucy Brown prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 4:19-CR-51-FL.
Grant County woman admits to drug chargeRead the Press Release
ELKINS, WEST VIRGINIA – Carrie A. Aughtry, of Petersburg, West Virginia, has admitted to a drug charge, Acting United States Attorney Randolph J. Bernard announced.
Aughtry, also known as “Corey Aughtry,”, 43, pleaded guilty today to one count of “Distribution of Methamphetamine.” Aughtry admitted to selling methamphetamine in July 2019 in Grant County.
Aughtry faces up to 20 years of incarceration and fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Potomac Highlands Drug Task Force, a HIDTA-funded initiative; the West Virginia State Police; and the Grant County Sheriff’s Office investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Grand Prairie Man Convicted of Trafficking Teenage GirlRead the Press Release
A Grand Prairie man was convicted yesterday of trafficking a 16-year-old girl, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
After a two-day trial, a federal jury in Dallas on Tuesday convicted 37-year-old Howard Sandford Williams of sex trafficking of a child.
“This defendant exploited a vulnerable teenager he found online,” said Acting U.S. Attorney Prerak Shah. “Far too often, traffickers target struggling women and girls, claiming that they can help. The U.S. Attorney’s Office and HSI are committed to fighting the scourge of trafficking, and to getting justice for the victims of this horrific crime.”
According to evidence presented at trial, Mr. Williams first contacted 16-year-old Jane Doe through Tagged, a dating app, after he viewed a live video of her venting about conflict within her family.
Mr. Williams checked Jane Doe into a hotel room in Irving, where he provided her with drugs and alcohol, had sex with her, and took photographs of her. He then posted those photographs online in commercial sex advertisements. Through the advertisements, Mr. Williams arranged for adult customers to go to Jane Doe’s hotel room for commercial sex; he also drove Jane Doe to adult customers for commercial sex.
Mr. Williams now faces up to life in federal prison.
Homeland Security Investigations conducted the investigation with the assistance of the Irving Police Department. Assistant U.S. Attorneys Nicole Hammond and John de la Garza are prosecuting the case. U.S. District Judge Jane J. Boyle presided over the trial.
Georgia psychotherapy services provider to pay $2 million to resolve false claims allegationsRead the Press Release
ATLANTA – Carenow Services, LLC, a Roswell-based psychotherapy services provider, as well as its CEO Leena Karun (collectively “Carenow”), have agreed to pay $2 million to settle allegations that they violated the False Claims Act by billing Medicare and Medicaid for psychotherapy sessions at nursing homes and skilled nursing facilities that were medically unnecessary, improperly documented, or billed at higher intensity levels than justified (a practice known as upcoding).
“Indiscriminately billing the government for psychotherapy services without regard to medical need or intensity of treatment deprives taxpayers of precious federal healthcare resources,” said Acting U.S. Attorney Kurt R. Erskine. “We remain committed to investigating healthcare fraud, particularly those schemes that target the most vulnerable in our communities. Those who commit healthcare fraud should know that they risk significant fines, penalties and even federal prison time.”
“Hopefully, the False Claims Act settlement in this case will be a deterrent to anyone thinking about abusing federal healthcare programs for their own benefit,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI is determined to protect taxpaying citizens and those who need federal help for their healthcare needs.”
“Carenow Services allegedly exploited not only its access to Federal health care dollars, but also its relationship with nursing facility residents in need of psychological services,” said Derrick L. Jackson, Special Agent in Charge with the Department of Health and Human Services Office of Inspector General. “Fraudulently billing Medicare and Medicaid for personal gain cheats millions of people who fund the programs or depend on their services. With our law enforcement partners, HHS-OIG unceasingly carries out our mission to protect these programs, in part, by bringing to justice those who bilk them.”
“Our Medicaid Fraud Division, in cooperation with our state and federal enforcement agencies, will remain vigilant in maintaining the integrity of public programs and prosecuting those who steal from taxpayers,” said Georgia Attorney General Chris Carr.
The settlement resolves False Claims Act allegations that between 2012 and 2018, Carenow billed Medicare and Medicaid for psychotherapy sessions at nursing homes and skilled nursing facilities that did not have any documented medical necessity. Additionally, in those situations where the psychotherapy sessions were medically necessary, Carenow allegedly upcoded its services and billed Medicare and Medicaid at higher reimbursing procedural codes. Consistent with the Justice Manual, the settlement includes credit to Carenow for immediately cooperating with the government in this investigation and for promptly taking steps to remediate the conduct described above.
This settlement resolves a lawsuit filed in the U.S. District Court for the Northern District of Georgia styled United States and Georgia ex rel. Whitaker v. Carenow Services, LLC, No. 1:17-CV-1314-ELR (N.D. Ga.) by a former Carenow employee under the qui tam or whistleblower provisions of the False Claims Act, which permit private citizens to bring lawsuits on behalf the United States and obtain a portion of the government’s recovery. The whistleblower in this case will receive a share of the government’s recovery.
This case was investigated by the U.S. Attorney’s Office for the Northern District of Georgia, the Georgia Medicaid Fraud Control Unit, and Health and Human Services—Office of the Inspector General, and the Federal Bureau of Investigations.
The civil settlement was reached by Assistant U.S. Attorney Armen Adzhemyan, who is the civil Elder Justice Coordinator, and Georgia Assistant Attorney General Sara Vann. The claims resolved by this settlement are allegations only and there has been no determination of liability.
For further information, please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Gang member with over a dozen felonies convicted again of firearms offenseRead the Press Release
HOUSTON – A 40-year-old Houston resident has admitted to being a felon in possession of a firearm while on supervised release from a previous conviction of the same crime, announced Acting U.S. Attorney Jennifer B. Lowery.
John Christopher Wolford is a documented member of the Gangster Disciples street gang. He has 18 prior convictions. As such he is prohibited from possessing a firearm or ammunition per federal law.
On March 28, an employee of a convenience store on the 8400 block of Main Street in Houston noticed Wolford pacing back and forth outside the building with a gun in his hand. He contacted authorities. Upon their arrival, law enforcement confronted Wolford and discovered a loaded 9-mm, semi-automatic pistol in his pants.
Wolford’s prior convictions include drug trafficking, tampering with physical evidence, assault causing bodily injury and assault of a family member. The most recent was in 2019 when he pleaded guilty to another felon in possession charge. He received a 37-month prison sentence followed by three years of supervised release.
As part of his plea today, Wolford also admitted to violating the terms of that supervised release.
U.S. District Judge Keith Ellison accepted the plea and set sentencing for Nov. 10. At that time, Wolford faces up to 10 years in prison and a possible $250,000 maximum fine. He also faces up to an additional two years for supervised release violation.
Wolford was taken into custody pending that hearing.
The Houston Police Department and FBI conducted the investigation. Assistant U.S. Attorney Adam Laurence Goldman is prosecuting the case.
Frankfort Man Convicted of MurderRead the Press Release
LONDON, Ky. - A Frankfort, Kentucky man, Patrick Baker, 43, was convicted on Wednesday, by a federal jury sitting in London, of first-degree murder committed during a drug trafficking crime.
After 6 hours of deliberation, following an approximately 3-week trial, the jury convicted Patrick Baker of one count of first-degree murder during a drug trafficking crime. According to testimony at trial, Baker fatally shot Donald L. Mills, Jr., 29, during an armed home invasion on May 9, 2014 in the Stinking Creek community. Mr. Mills’ pregnant wife and children were held at gunpoint while Baker ransacked the victims’ home for oxycodone pills. Baker entered the Mills’ home posing as a United States Marshal.
According to the evidence at trial, the KSP firearm forensics’ laboratory tied shell casings recovered from the victim’s master bedroom to Baker’s Kel Tec PF9. The Kel Tec 9mm was later recovered from a mud pit in Bell County past the “Bridge to Nowhere.” A surveillance video from the London Dollar General showed Baker purchasing plastic handcuff approximately 7 hours before the murder. The same handcuffs were later recovered feet from where the victim was fatally shot. Furthermore, cell tower data was used to trace Baker’s movements throughout May 8th and 9th, 2014 from London, to Stinking Creek, to Bell County.
Baker was indicted in May 2021.
“At its core, this case was about one thing: Patrick Baker’s role in the death of Donald Mills,” said Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky. “Having heard the evidence, the jury found him guilty. I want to commend the steadfast work of our law enforcement partners and our trial team. This case warranted their dedication, and the jury’s verdict justifies their thorough effort.”
“Today’s guilty verdict sends a significant message and demonstrates our commitment to justice,” stated ATF Special Agent in Charge R. Shawn Morrow of the Louisville Division. “The result of this case would not have been possible without the excellent work of the ATF London Office, our law enforcement partners, and the United States Attorney’s Office. An examination of the evidence was overwhelmingly in support of Patrick Baker’s guilt. This case is a strong example of the work ATF is doing, every day, to combat violent crime in our communities.”
Acting United States Attorney Shier; Special Agent in Charge Morrow; and Colonel Phillip Burnett, Jr., Commissioner, Kentucky State Police, jointly announced the conviction.
The investigation was conducted by Bureau of Alcohol, Tobacco, Firearm and Explosives and the Kentucky State Police. The United States was represented in the case by Assistant U.S. Attorney Jenna Reed.
Baker will appear for sentencing on December 21, 2021. He faces up to life in prison. However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal sentencing statutes before imposing a sentence.
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Former Syracuse Postal Worker Sentenced for Stealing Mail in LiverpoolRead the Press Release
SYRACUSE, NEW YORK – Quayshaun Mitchell, age 28, of Syracuse, was sentenced today to serve 6 months of home detention, to be followed by 3 years of supervised release, for helping another person steal mail from United States Postal Service (USPS) collection boxes.
The announcement was made by Acting United States Attorney Antoinette T. Bacon; Joshua McCallister, Acting Postal Inspector in Charge of the Boston Division of the U.S. Postal Inspection Service; and Matthew Modafferi, Special Agent in Charge of the USPS Office of Inspector General-Northeast Region.
Mitchell was also ordered to perform 150 hours of community service.
On February 25, 2021, Mitchell pled guilty to one count of possession with the intent to unlawfully use a USPS key, and one count of aiding and abetting the theft of mail.
As part of his guilty plea, Mitchell admitted that on March 5, 2020, he provided a USPS arrow key to his co-defendant Kevin Williams so that Williams could open USPS blue collection boxes in Liverpool, New York, and steal mail from the boxes. Mitchell also admitted that he gave Williams a USPS letter carrier uniform jacket and mail satchel to wear so that Williams would look like a USPS employee as he improperly accessed the collection boxes. Williams stole mail contained in the USPS blue collection boxes, including 49 pieces of first-class mail with checks totaling $67,883.91.
Williams also pled guilty to one count of possession with the intent to unlawfully use a USPS key and one count of theft of mail. Williams was sentenced on May 12, 2021 to serve 6 months of home detention, followed by 3 years of supervised release, and ordered to perform 120 hours of community service.
This case was investigated by the United States Postal Inspection Service (USPIS) and the United States Postal Service-Office of Inspector General (USPS-OIG), and was prosecuted by Assistant U.S. Attorney Tamara Thomson.
Former Nurse Charged with Tampering with Consumer ProductsRead the Press Release
An indictment was unsealed today charging former registered nurse Mary Cheatham, 41, of Ypsilanti, MI, with one count of tampering with a consumer product, specifically the Schedule II controlled substance hydromorphone, which is used for pain relief, announced Acting United States Attorney Saima Mohsin.
Mohsin was joined in the announcement by Special Agent in Charge Lynda Burdelik, Food and Drug Administration (FDA).
According to the indictment, while working as a licensed registered nurse at DMC Sinai-Grace Hospital, Cheatham tampered with vials and syringes containing hydromorphone which she knew were intended to be administered to patients for the purpose of pain relief in the critical care unit of the hospital. She removed the hydromorphone from the vials and syringes; replaced the hydromorphone with another liquid, and returned the adulterated containers knowing they could be administered to patients at the hospital.
Acting United States Attorney Mohsin stated, “In order to protect the health and safety of our citizens, we take crimes like this seriously and will not hesitate to prosecute health care workers whose theft of drugs put patients in harm’s way.”
Patients should know they are receiving proper treatment from those entrusted with their medical care,” said Special Agent in Charge Lynda M. Burdelik, FDA Office of Criminal Investigations Chicago Field Office. “We must hold medical personnel accountable when they take advantage of their unique position and tamper with medications their patients need, potentially exposing them to contaminated medical products.”
This case is being prosecuted by Assistant United States Attorneys Mitra Jafary-Hariri and Regina R. McCullough. The case was investigated by special agents of the Food and Drug Administration.
An indictment is only a charge and is not evidence of guilt. The defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Former Member of New Bedford Latin Kings Chapter Pleads Guilty to Racketeering ConspiracyRead the Press Release
BOSTON – A former member of the New Bedford Chapter of the Massachusetts Almighty Latin King and Queen Nation (Latin Kings) pleaded guilty today to racketeering charges.
Tyson Jorge, a/k/a “King Music,” 35, pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for Nov. 16, 2021.
During today’s hearing, Jorge admitted to his membership in the New Bedford Latin Kings’ racketeering conspiracy and his involvement in the gang’s drug distribution efforts throughout the City. Jorge further admitted that he attended gang meetings in which violence against rival gang members was discussed.
The Latin Kings are a violent criminal enterprise comprised of thousands of members across the United States. The Latin Kings adhere to a national manifesto, employ an internal judiciary and use a sophisticated system of communication to maintain the hierarchy of the organization. As alleged in court documents, the gang uses drug distribution to generate revenue, and engages in violence against witnesses and rival gangs to further its influence and to protect its turf.
In December 2019, a federal grand jury returned an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against 62 leaders, members and associates of the Latin Kings. Jorge is the 49th defendant to plead guilty in the case.
The RICO conspiracy charge provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and New Bedford Police Chief Joseph C. Cordeiro made the announcement today. Valuable assistance was also provided by the FBI North Shore Gang Task Force and the Bristol County and Suffolk County District Attorney’s Offices. Assistant U.S. Attorneys Philip A. Mallard and Mark J. Grady of Mendell’s Criminal Division are prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Delaware Resident Pleads Guilty in Federal Court to Mailing ThreatsRead the Press Release
WILMINGTON, Del. – A former Delaware resident pleaded guilty today in the U.S. District Court for the District of Delaware to two counts of mailing threatening communications in Delaware.
According to court documents, Michael Protack, 63, mailed two explicit death threats to a Delawarean in January and February of 2021. The January letter threatened death by a date certain. The February threat included a graphic image of a dead body. Both threatening communications were sent anonymously. Protack pleaded guilty to mailing both letters and faces a maximum penalty of five years in prison on each count.
David C. Weiss, U.S. Attorney for the District of Delaware, made the announcement after U.S. District Judge Richard G. Andrews accepted the plea. Judge Andrews will sentence the defendant on December 6, 2021, after taking into account the U.S. Sentencing Guidelines and other statutory factors.
“Using the U.S. mail to threaten injury or death to others is a serious federal crime, stated U.S. Attorney Weiss. The defendant’s threats were graphic, violent, and specifically designed to inspire fear. My Office will do what is necessary to ensure that the U.S. Postal Service is not used as a communication vehicle for violent threats.”
“Using the United States Mail to make anonymous violent threats against another person is a federal crime,” said Damon Wood, Postal Inspector in Charge of Philadelphia Division of the Postal Inspection Service. He added that “Violent threats in the mail are exceedingly rare in 2021, but when they occur, the United States Postal Inspection Service will work to hold accountable those who made the threats. I want to thank our law enforcement partners and the U.S. Attorney’s Office for helping us keep the mail safe and free of violence.”
“We consider any threat to life a serious threat. These were disturbing, calculated messages sent by Mr. Protack and he now faces up to 10 years in prison for his actions,” said Thomas J. Sobocinski, Special Agent in Charge of the FBI Baltimore Field Office. “These types of cases are aggressively investigated by the FBI, Postal Inspectors and our law enforcement partners, and those who violate federal law will be held accountable.”
This case has been investigated by the U.S. Postal Inspection Service and the FBI Baltimore Division Wilmington Resident Office, with assistance from the Delaware State Police. Assistant U.S. Attorney Briana Knox is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 1:21-cr-0042-RGA.
Former Clay County Sheriff’s Deputy Sentenced to 35 Years in Federal Prison for Sexually Exploiting ChildrenRead the Press Release
Jacksonville, Florida – U.S. District Judge Timothy J. Corrigan has sentenced Travis Ryan Pritchard (38, Green Cove Springs) to 35 years in federal prison for producing an image of a 15-year-old child being sexually abused and one count of possessing an image of a prepubescent child being sexually abused. Pritchard was also ordered to serve a lifetime term of supervised release and to register as a sex offender. Pritchard had pleaded guilty on October 21, 2020.
According to court documents, Pritchard was employed as a deputy with the Clay County Sheriff’s Office, assigned to the DUI unit, at the time of the offenses. From December 2019 through May 2, 2020, Pritchard used a popular online chat application (app) to communicate with a 15-year-old girl whom he had sexually abused on a weekly basis. On April 29, 2020, an undercover detective from the Green Cove Springs Police Department assumed the child’s online identity and continued chatting with Pritchard using the online chat app. Late in the night of May 1, 2020, and into the early morning hours of the next day, Pritchard encouraged the “child” to sneak out of her home to meet with him for a “quickie.” In anticipation of their meeting, he sent the “child” a photograph of himself from the waist down, wearing only boxer shorts. At approximately 2:00 a.m. on May 2, 2020, Pritchard arrived near the child’s home to pick her up in his patrol vehicle, and sent the “child” a message saying, “I’m here.” A short time later, Pritchard was arrested by officers from the Green Cove Springs Police Department.
A forensic review of Pritchard’s cellular telephone revealed many conversations between the child and Pritchard, as well as an encrypted digital folder containing numerous visual depictions of child sexual abuse. This included an image of the sexual abuse of the 15-year-old produced at the direction of Pritchard, as well as an image of the rape of a prepubescent female child.
“All child sexual abuse is appalling, but when this crime is committed by someone in a position of trust, it is beyond comprehension,” said HSI Jacksonville Assistant Special Agent in Charge K. Jim Phillips. “Thanks to our HSI special agents and our local law enforcement partners, this perpetrator will no longer be in a position to harm children.”
“The Green Cove Springs Police Department is committed to serving our community and protecting our citizens against all evil, even when that evil comes hiding behind a badge,” said Commander John Guzman. “As a law enforcement officer, Mr. Pritchard betrayed those who trusted him the most and now he will have to pay for his crimes.”
This case was investigated by the Green Cove Springs Police Department and Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Kelly S. Karase.
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.
Foreign national found guilty of smuggling over $1M in methRead the Press Release
LAREDO, Texas – A Laredo federal jury has convicted a 32-year-old Mexican citizen for conspiracy to import and importation of meth, announced Acting U.S. Attorney Jennifer B. Lowery.
The jury deliberated for approximately three hours before convicting Juan Victor Larraga-Solano following a two-day trial.
On March 8, 2020, Larraga-Solano attempted to enter the United States through the Lincoln-Juarez International Bridge in Laredo. He claimed he was importing glass beer bottles, juice boxes and meat contained in coolers from Mexico.
Law enforcement inspected the items and noticed that, when shaken, the juice boxes sounded as if they contained rocks. Further, the alleged beer did not have any bubbles. A follow up X-ray examination also revealed anomalies in the walls of the coolers. Authorities conducted a thorough inspection and found 56 packages of meth and 12 beer bottles containing liquid meth.
Overall, authorities seized a total of 44.56 kilograms of meth from Larraga-Solano. During trial, the jury heard the total estimated street value was in excess of $1.1 million.
Testimony also revealed that Mexican cartels have increased the price of meth to raise demand for less expensive drugs like cocaine and marijuana.
U.S. District Judge Marina Garcia Marmolejo presided over trial and set sentencing for Nov. 30. At that time, Larraga-Solano faces up to life in federal prison and a possible $10 million maximum fine.
Larraga-Solano will remain in custody pending that hearing.
Homeland Security Investigations conducted the investigation with the assistance of Customs and Border Protection, Drug Enforcement Administration and Border Patrol. Assistant U.S. Attorneys Adam E. Harper and Brandon S. Bowling are prosecuting the case.
Ensley Man Sentenced to More Than 16 Years in Prison for Four Armed RobberiesRead the Press Release
BIRMINGHAM, Ala. – A federal judge today sentenced an Ensley man in connection with four armed robberies, announced U.S. Attorney Prim F. Escalona and Bureau of Alcohol, Tobacco, Explosives, and Firearms Special Agent in Charge Mikey French.
U.S. District Judge R. David Proctor sentenced Eric Tyree Blanding, 47, to 198 months in prison. Blanding pleaded guilty to four counts of Hobbs Act Robbery, one count of carrying and brandishing a firearm during and in relation to a crime of violence, and one count of being a felon in possession of a firearm.
“As today’s sentence makes plain, armed robbery is a serious federal crime deserving of serious prison time,” U.S. Attorney Escalona said. “To achieve long-term reductions in violent crime, my office focuses our efforts on those offenders who are the most violent and who commit the most serious crimes.”
“Removing the criminal element that uses a firearm to facilitate violent crimes such as a robbery is a priority of ATF,” ATF Special Agent in Charge Mickey French stated.
According to the plea agreement, Blanding committed four robberies at three different Family Dollar stores in Birmingham by brandishing a firearm at store employees and taking cash and other property. The robberies occurred in May and June of 2019.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
ATF investigated the case. Assistant U.S. Attorney Kristy Peoples prosecuted the case.
El Departamento de Justicia llega a un acuerdo con una organización grande de atención sanitaria que resuelve acusaciones de discriminación relacionada con la inmigración basadas en softwareRead the Press Release
WASHINGTON - El Departamento de Justicia anunció hoy que ha llegado a un acuerdo con Ascension Health Alliance (Ascension), una organización de atención sanitaria radicada en Missouri con más de 2.600 locales, entre ellos 146 hospitales y más de 40 residencias de tercera edad, en 19 estados y el Distrito de Columbia. El acuerdo resuelve las acusaciones del Departamento de que Ascension vulneró la ley de Inmigración y Nacionalidad («INA», por sus siglas en inglés) cuando discriminó a trabajadores no ciudadanos de los EE. UU. que contaban con autorización para trabajar al pedirles documentos adicionales o diferentes a los que eran necesarios a la hora de intentar reverificar que seguían siendo autorizados para trabajar.
Con base en su investigación, el Departamento determinó que Ascension solicitó automáticamente que sus empleados no ciudadanos de los EE. UU. presentasen documentos nuevos para demostrar que seguían contando con autorización para trabajar, incluso en situaciones cuando esto no se les requería. Ascension utilizó un programa de software personalizado de verificación de la elegibilidad para trabajar para completar electrónicamente el Formulario I-9 y monitorizar las fechas de vencimiento de los documentos de empleados no ciudadanos de los EE. UU. La investigación halló que Ascensión programó el software, de manera incorrecta, para que enviara correos electrónicos automáticos pidiendo pruebas de una autorización continua para trabajar a todos los empleados no ciudadanos de los EE. UU., incluyendo nacionales de los EE. UU., residentes permanentes legales, asilados y refugiados cuando se acercaba la fecha de vencimiento de los documentos que ellos habían presentado en el momento de completar en Formulario I-9. En muchos casos, estos empleados no ciudadanos de los EE. UU. habían presentado documentos que no requerían una reverificación de su elegibilidad para trabajar. Más aún, en algunas instancias después de enviar esos correos electrónicos, Ascension también requirió que sus empleados no ciudadanos de los EE. UU. presentasen nuevos documentos para poder seguir trabajando. En cambio, Ascension no programó el software para enviar correos electrónicos a ciudadanos de los EE. UU. y, por lo tanto, no notificó a trabajadores que son ciudadanos de los EE. UU. cuando se acercaba la fecha de vencimiento de sus documentos.
«Se les recuerda a los empleadores que, aunque los programas de software parecen eficientes, todavía existe la responsabilidad de asegurar que las decisiones relacionadas con la programación no resulten en discriminación», declaró la Fiscal General Auxiliar, Kristen Clarke, de la División de Derechos Civiles del Departamento de Justicia. «El acuerdo hace claro que el Departamento de Justicia hará cumplir con firmeza las leyes federales de derechos civiles y hacer responsables a los empleadores si su software resulta en discriminación ilegal».
Las leyes federales permiten a todo individuo con autorización para trabajar, independientemente de su estatus de ciudadanía, elegir los documentos válidos y legalmente aceptables que desea presentar para demostrar su autorización para trabajar en los Estados Unidos. Muchas personas que no son ciudadanos de los EE. UU., incluyendo a residentes permanentes legales, refugiados y asilados, entre otros, tienen una autorización para trabajar que no vence y son elegibles para varios de los mismos tipos de documentos como lo son los ciudadanos de los EE. UU. (tales como carnets de conducir y tarjetas de seguro social sin restricciones) para demostrar su autorización para trabajar. La disposición antidiscriminatoria de la INA prohíbe que los empleadores pidan documentos adicionales o diferentes a los necesarios para demostrar la autorización para trabajar con base en el estatus migratorio o de ciudadanía del empleado o bien por su nacionalidad de origen.
Conforme los términos del acuerdo conciliatorio, Ascension pagará una sanción civil a los Estados Unidos que asciende a 84.832,00 $. Asimismo, Ascension capacitará a sus empleados en cuanto a los requisitos de la disposición antidiscriminatoria de la INA, incluyendo una capacitación dirigida por la Sección de Derechos de Inmigrantes y Empleados («IER», por sus siglas en inglés), y será supervisado durante un período de tres años para garantizar que la compañía esté cumpliendo con el acuerdo.
La Sección de Derechos de Inmigrantes y Empleados de la División de Derechos Civiles es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. La ley prohíbe la discriminación por motivos de estatus migratorio o de ciudadanía o bien por la nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión, prácticas documentales injustas y represalias e intimidación.
Aquellos aspirantes o empleados que creen haber sido discriminados por motivos de su estatus de ciudadanía o nacionalidad de origen en los procesos de contratación, despido, reclutamiento o verificación de la elegibilidad para trabajar (Formulario I-9 e E-Verify) o sujetos a represalias pueden presentar una denuncia. El público también puede llamar a la línea directa de la IER para trabajadores al 1-800-255-7688; llamar a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); enviar un correo electrónico a [email protected]; inscribirse a un seminario en línea gratuito; o visitar los sitios web de la IER en inglés o español. Para recibir las últimas noticias de la IER, inscríbase a GovDelivery.
Eight Indicted in Nationwide Grandparent Fraud ScamRead the Press Release
Assistant U. S. Attorney Oleksandra “Sasha” Johnson (619) 546-9769
NEWS RELEASE SUMMARY – August 25, 2021
SAN DIEGO – Eight people are charged in a federal grand jury indictment unsealed this week, accused of participating in a criminal enterprise that has stolen millions of dollars from elderly victims in San Diego County and around the nation.
Click here for indictment
According to statements made by prosecutors in court, the defendants swindled more than $2 million from 70-plus elderly victims across the nation, with at least 10 in San Diego County, by feeding them phony stories that their grandchildren were in terrible trouble and needed money fast.
“This scheme has left many elderly victims financially and emotionally devastated,” said Acting U.S. Attorney Randy Grossman. “It is unconscionable to target the elderly and exploit their love for their grandchildren. Elder fraud is a serious crime against some of our nation’s most vulnerable citizens. We are committed to combating all types of elder abuse in our community.”
“These defendants were part of a large network of individuals that systematically targeted elderly Americans by preying on their concern for loved ones. The Department of Justice is committed to prosecuting individuals who take part in such schemes that target vulnerable people,” said Deputy Assistant Attorney General Arun G. Rao for the Civil Division’s Consumer Protection Branch. “We are grateful to our partners at the U.S. Attorney’s Office in the Southern District of California and the FBI in advancing the Department’s efforts against organized elder fraud, and to the San Diego County District Attorney’s Office.”
This is the first case investigated by the San Diego Elder Justice Task Force, which is a collaboration between the U.S. Attorney’s Office, the FBI, the District Attorney’s Office and all San Diego County law enforcement agencies. The Elder Justice Task Force was established in February 2020 and is believed to be the first comprehensive law enforcement effort for this purpose anywhere in the country.
“Elder Fraud is a massive and growing problem as our county’s population gets older, with losses into the billions of dollars nationwide,” said FBI Special Agent in Charge Suzanne Turner. “The San Diego Elder Justice Task Force was set up to combine resources, experience, and capabilities to have a sophisticated and coordinated law enforcement response to fight this battle.”
“This first-of-its-kind Elder Justice Task Force leverages the power of collaboration and innovation to effectively take down organized criminal rings that target the elderly in San Diego County and across the nation,” said Summer Stephan, the San Diego County District Attorney. “The Task Force shares key information, and actively works to connect those dots and reveal patterns that lead to successful prosecutions. We believe it will become a model for the rest of the nation on how to stop the billion-dollar criminal industry of elder fraud.”
“The level of law enforcement cooperation and coordination in the San Diego Region is unique and helps make all San Diego residents safer,” said El Cajon Police Chief Michael Moulton. I commend all the investigators involved in this case for their tenacity and determination in helping bring justice to these victims. The San Diego Elder Justice Task Force is a vital component to helping protect San Diego county’s seniors.”
As of today, six of eight defendants have been arrested. The defendants are charged with violating the racketeering statute known as RICO, the federal law designed to combat organized crime. This is believed to be the first time the RICO statute has been used in an elder fraud case. The indictment alleges that this organization was involved in extortion, fraud and money laundering – all hallmarks of organized crime.
The investigation began in San Diego with one victim and a small loss, and grew exponentially to include victims in El Cajon, Escondido, Carlsbad, Bonita, Santee, Coronado and across at least 15 states.
According to the indictment, scammers contacted elderly victims, usually by telephone, and impersonated a grandchild or someone else close to the victim. The scammer pretended to be in dire legal trouble because of an accident or arrest. He or she claimed to need money for bail, medical expenses, or legal fees.
The scheme involved multiple “actors” who played varying roles using a well-rehearsed script. One would play the beloved relative; another would pretend to be a lawyer; and still others would pose as bail agents or medical professionals. They provided victims with false case numbers, and they instructed the victims to lie to family, friends, and bank representatives about the reasons for the withdrawal or money transfer.
The grandparents were so fearful and desperate to help that they handed over tens of thousands of dollars in tremendous acts of selflessness. Once the victim was on board, other members of the criminal enterprise were dispatched to doorsteps to collect money.
According to the indictment, the scammers took elaborate steps to conceal their true identities from victims and law enforcement. They used false names. They rented residences to receive cash sent through the mail and commercial carriers. They used rental cars or ride share vehicles to pick up funds from victims. And once they received funds from the victims, the scammers quickly tried to hide it by transferring proceeds to other members of the criminal conspiracy, who converted fiat currency to cryptocurrency.
According to court documents, one defendant collected $33,000 from three different victims in a single day. Messages from his phone reveal that he was provided victims’ names and addresses and used a fake name to collect money from the victims. In a text exchange with a coconspirator, the defendant asked: “What's gon (sic) be my name”
According to the indictment, one of the victims lived in Oceanside. She was 87 years old. She is identified in the indictment as “JD.”
JD received a phone call on May 11, 2020, from a woman claiming to be her granddaughter. The caller said she had been arrested following a car accident and needed $9,000 for bail. She then turned the phone over to her supposed lawyer, who warned JD not to discuss this with anyone or risk violating a court gag order. A courier went to JD’s address and picked up the cash.
The next day, a man purporting to be an accident specialist called JD and claimed that the other party in the vehicle collision had lost her baby as a result of the accident. If JD did not provide another $42,000, her granddaughter would be charged with first degree manslaughter and spend 15-20 years in prison. JD sent a wire transfer in the amount of $42,000 to an account associated with the defendants.
The scammers didn’t stop there.
About a week later, yet another scammer called JD and advised her that she and her granddaughter had violated the gag order. If JD didn’t pay an additional $57,000, her granddaughter would go to jail. JD sent another wire transfer in the amount of $57,000 to an account associated with the defendants.
“I know some victims may be reluctant to come forward because they feel embarrassed that they fell for this hoax,” Grossman said. “But I want to assure victims that it is not your fault. You are one of many, many people who were deceived by a sophisticated criminal organization whose members concocted a number of plausible storylines and conspired together to trick you. These are unscrupulous manipulators who prey on the elderly. They are to blame, not you.”
For those who may be contacted in the future by scammers, please know that law enforcement is here to help. Please call your local law enforcement agency, sheriff, FBI or 911 if there is an emergency.
Grossman commended prosecutors Sasha Johnson from the Southern District of California, Lauren Elfner and Wei Xiang from the Department of Justice’s Consumer Protection Branch, the Justice Department’s Office of International Affairs, as well as agents from the FBI for their excellent work on this case. Grossman also acknowledged excellent work of the District Attorney’s Office and the multiple local law enforcement agencies in the San Diego Elder Justice Task Force that relentlessly investigated this case to pursue justice for the elderly victims.
DEFENDANTS Case Number 21cr2216-CAB
Tracy Adrine Knowles 29 Orlando, Florida
Fugitive
Adonis Alexis Butler Wong 29 Pembroke Pines, Florida
Fugitive
Timothy Ingram, AKA Bleezy 29 North Hollywood, California
In custody. Arrested in Los Angeles on August 10, 2021. Judge denied bond.
Anajah Gifford 23 North Hollywood, California
In custody. Arrested in Los Angeles on August 10, 2021. Judge denied bond.
Lyda Harris 73 Laveen, Arizona
Arrested in Albania on a Provisional Arrest Warrant. United States is seeking extradition.
Joaquin Lopez 45 Hollywood, Florida
Arrested in Hollywood, Florida, on August 18, 2021. He will be released on bond.
Jack Owuor 24 Paramount, California
Arrested in Paramount, near Los Angeles, August 11, 2021. Judge denied bond.
Tracy Glinton 34 Orlando, Florida
Arrested in Orlando, Florida on August 17, 2021. She is released on bond.
SUMMARY OF CHARGES
Title 18, U.S.C., Sec. 1962(d) – Conspiracy to Conduct or Participate in an Enterprise
Through a Pattern of Racketeering Activity
Maximum penalty: Twenty years in prison and a fine of not more than the greater of twice the amount of gain or loss associated with the offense or $250,000
AGENCIES
Department of Justice’s Consumer Protection Branch
San Diego Elder Justice Task Force, which includes:
San Diego FBI
San Diego County District Attorney’s Office
San Diego Police Department
San Diego Sheriff’s Department
Carlsbad Police Department
Oceanside Police Department
Escondido Police Department
Chula Vista Police Department
El Cajon Police Department
La Mesa Police Department
National City Police Department
Coronado Police Department
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
EOIR Launches FOIA Public Access LinkRead the Press Release
FALLS CHURCH, VA – The Executive Office for Immigration Review (EOIR) has launched its Freedom of Information Act (FOIA) Public Access Link (PAL), a new online portal that streamlines records requests for parties with business before the agency and members of the public seeking records.
“We are excited to launch this new portal, which highlights EOIR’s dedication to transparency through its FOIA request process,” said EOIR Acting Director Jean King. “We expect increased efficiency both for those seeking records from our agency and for our hard-working FOIA staff with the Office of the General Counsel.”
PAL allows users to submit FOIA and Privacy Act requests, check the status of submitted requests, download records, browse the FOIA reading room, and correspond with the EOIR FOIA Service Center. The PAL also allows users to pay required fees online and to receive delivery of large volumes of responsive records more quickly.
Duquesne Felon Indicted on Firearms Law ViolationRead the Press Release
PITTSBURGH, PA - A resident of Duquesne, PA, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal firearms laws, Acting United States Attorney Stephen R. Kaufman announced today.
The one-count Indictment named Keyjuan King, 22, as the sole defendant.
According to the Indictment, King was a convicted felon who unlawfully possessed a firearm and ammunition.
According to the previously filed complaint and supporting affidavit, detectives observed King walking hastily through a parking lot and quickly approaching an occupied vehicle in the street. Detectives saw that King had a firearm visible in the front pocket of his shorts and was clutching the handle of the unholstered firearm. Fearing that King would potentially harm the individuals inside the vehicle, detectives approached him on foot and asked him to show his hands. When King noticed the detectives, he turned and fled on foot. While King was fleeing, he removed the firearm from his shorts and ran toward the wood-line behind a building. He rounded the corner behind the building and was out of detectives’ sight for a brief time. King stumbled, fell, and was eventually taken into custody. A K9 then searched and found a fully loaded firearm in the hillside, woodline area in the vicinity of where King had been when he was not in the detectives’ sight. King is a convicted felon, so it is a violation of federal law for him to possess a firearm.
The law provides for a maximum total sentence of 10 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 offense and the prior criminal history, if any, of the defendant. On August 3, 2021, King was released to home detention with location monitoring, as well as other conditions.
Assistant United States Attorney Ira M. Karoll is prosecuting this case on behalf of the government.
The Allegheny County Police Department conducted the investigation leading to the Indictment in this case, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Downey Company that Provides In-Home Respiratory Services Agrees to Pay over $3.3 Million to Resolve Fraud AllegationsRead the Press Release
LOS ANGELES – SuperCare Health, Inc., a Downey-based provider of home respiratory services and durable medical equipment, has agreed to pay $3,315,308 to resolve allegations that it defrauded public health care programs by billing for ventilator services that were not medically necessary or reasonable, the Justice Department announced today.
SuperCare entered into a settlement agreement with the United States and two states – California and Nevada – in a federal False Claims Act case that a federal judge unsealed today.
The allegations in this case stem from SuperCare providing non-invasive ventilators, also known as NIVs, for home use by respiratory patients in California and Nevada. Medicare and Medicaid provide a monthly reimbursement for a patient’s rental of an NIV, so long as the NIV is necessary or reasonable for the patient’s treatment.
Between May 2013 and October 2019, according to the lawsuit, SuperCare submitted, or caused others to submit, bogus claims to Medicare and Medicaid. SuperCare allegedly billed public health programs for NIV rentals even when patients no longer needed the NIVs or were no longer using them.
The settlement resolves allegations brought in a 2018 lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act by Benjamin Martinez Jr., a respiratory therapist who worked for SuperCare. These provisions permit private parties to sue on behalf of the government for false claims for government funds and to share in any recovery. Mr. Martinez will receive more than $612,000 from the federal government as his share of the settlement amount.
The U.S. Department of Health and Human Services, Office of Inspector General investigated this case.
Assistant United States Attorney Ross M. Cuff of the Civil Division’s Civil Fraud Section negotiated the settlement for the government.
The claims resolved by the settlement are allegations only; there has been no determination of liability.
Dover Man Pleads Guilty to Fentanyl Trafficking ChargesRead the Press Release
CONCORD - Marc Martin, 44, of Dover, pleaded guilty in federal court to two counts of possession of fentanyl with intent to distribute, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, in June of 2019, Dover police were notified that Martin was suspected of distributing drugs from his Dover apartment. On June 19, 2019, detectives conducted surveillance of Martin’s apartment and observed a male enter and leave the apartment within a few minutes. Officers confronted the male and he admitted he had just purchased fentanyl from Martin in the apartment. After obtaining a search warrant, officers entered the apartment and located over 32 grams of fentanyl, drug packaging, and a cell phone that contained evidence of drug activity.
On January 14, 2020, the same detectives followed Martin as he drove to Massachusetts and pulled into a parking lot in Amesbury. After a brief period, Martin drove northbound back to New Hampshire, where he was stopped for speeding. During the stop, Martin admitted he had drugs with him and relinquished a bag containing over 39 grams of fentanyl.
Martin is scheduled to be sentenced on December 1, 2021.
“Fentanyl traffickers are seeking to profit from the sales of this deadly substance,” said Acting U.S. Attorney Farley. “In order to stop the flow of fentanyl into the Granite State, we continue to work closely with our law enforcement partners to identify and prosecute the dealers who are obtaining and distributing this dangerous drug.”
This matter was investigated by the Dover Police Department. The case is being prosecuted by Assistant U.S. Attorney Joachim H. Barth.
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Davenport Man Sentenced to Prison for Felon in Possession of AmmunitionRead the Press Release
DAVENPORT, IOWA – A Davenport man, Christopher Michael Screechfield, age 23, was sentenced today by United States District Court Judge Stephanie M. Rose to 24 months in prison for Felon in Possession of Ammunition. Screechfield was ordered to serve three years of supervised release to follow his prison term as well as pay $100 to the Crime Victims’ Fund. This sentence is to be served consecutively to a supervised release revocation sentence for a prior federal offense from 2017.
According to court documents, Screechfield was identified after officers responded to a residence in Davenport where Screechfield attempted to commit suicide and injured himself. Screechfield was transported to the hospital. Further investigation from law enforcement revealed Screechfield was wanted for a supervised release violation by the United States Marshals Service. When officers took Screechfield into custody, he had three bullets in his possession. On April 20, 2021, Screechfield pleaded guilty to the charge.
Screechfield had previously been convicted of possession of an unregistered firearm in March of 2018 and was sentenced to 42 months in prison with three years of supervised release to follow. Screechfield was placed on supervised release on October 15, 2020. Due to the instant charge, his supervised release was revoked, and he was sentenced to serve 14 months in prison. That term was ordered to be served consecutive to the 24-month term imposed today.
Acting United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Davenport Police Department investigated the case.
Davenport Man Sentenced to Federal Prison for Firearm ChargeRead the Press Release
DAVENPORT, IOWA – A Davenport man, Willie James Powell, Jr., age 22, was sentenced today by United States District Court Chief Judge John A. Jarvey to 57 months in prison for the offense of Felon in Possession of Firearms. Powell was ordered to serve three years of supervised release following his imprisonment as well as pay $100 to the Crime Victims’ Fund.
The investigation began on September 2, 2020, when Davenport Police responded to a report of suspicious and threatening activity in the area of West 8th Street. Shortly after, officers located a vehicle associated with the activity and attempted to initiate a traffic stop. The vehicle fled from officers along many residential streets, exceeded 80 miles per hour, and eventually crashed. Powell, Jr. was the front seat passenger of the vehicle, which was discovered to have been stolen. A search of the vehicle produced two firearms—a Glock nine-millimeter pistol and a H&K nine-millimeter pistol. On April 19, 2021, Powell, Jr. pleaded guilty to knowingly possessing both the firearms. As a convicted felon, Powell, Jr. knew he was prohibited from possessing firearms.
Acting United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Davenport Police Department investigated the case.
Dallas Drug Trafficker Sentenced in East Texas Methamphetamine and Cocaine Trafficking ConspiracyRead the Press Release
SHERMAN, Texas – A Dallas man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Zachariah Logan Carl, 31, pleaded guilty on April 12, 2021, to conspiring to possess with intent to deliver methamphetamine and cocaine and was sentenced to 135 months in federal prison today by U.S. District Judge Amos L. Mazzant.
“The sentence handed down today reflects EDTX’s policy to aggressively target and pursue those responsible for bringing drugs into the Eastern District regardless of where they live,” said Acting U.S. Attorney Nicholas J. Ganjei. “Drug traffickers need to understand that despite their best efforts, it is only a matter of time until they are caught and brought to justice.”
According to information presented in court, from May 2019 through September 2019, a narcotics investigation into methamphetamine, MDMA and other drugs that were being sold in and around Cooke County identified Carl as the main source of supply. On Sep. 17, 2021, Carl was arrested on an outstanding felony warrant at his Dallas apartment, along with co-defendants Michael Luke Allison and Mary Margaret Merrell. A search of the apartment revealed an assault-style rifle on the couch; 489 grams of methamphetamine; 82.387 grams of cocaine; a digital scale; 119.6 grams of various pills; 1,121.8 grams of various liquid substances suspected of being GHB; 20 milligrams of Diazepam rectal gel; multiple fraudulent identification cards containing Carl’s photograph; multiple cellular phones; and a bag containing multiple rounds of ammunition. Merrell and Allison both explained the methamphetamine inside the apartment belonged to Carl. A forensic analysis of Merrell’s cell phone revealed evidence that Merrell had been acting as a middle-man for Carl, arranging purchases of narcotics for others. A forensic analysis of Allison’s phone showed extensive communications with Carl relating to the distribution of cocaine, methamphetamine, Xanax, and gamma-hydroxybutyrate (“GHB”). Ultimately, the investigation revealed that Carl had been selling an extensive amount of various narcotics for many years, all while living under an assumed identity.
Other members of the conspiracy included Dallas residents Kathe Tran Vo, James Travis Tanner, Maxine Juliette Mitchell, and James Anthony Marzioli, all of whom previously pleaded guilty and have already been sentenced to terms of imprisonment. Vo and Mitchell both received 120 months for their role in the conspiracy. Tanner received 145 months for his role in the conspiracy. Marzioli was sentenced to 135 months, Allison received 60 months, and Merrell was sentenced to 120 months in federal prison.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Cooke County Sheriff’s Office, the Dallas Police Department, the U.S. Drug Enforcement Administration, and the Rockwall County Sheriff’s Office. The case was prosecuted by Assistant U.S. Attorney Matthew T. Johnson.
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Cryptocurrency CEO Sentenced to Five Years in $4 Million Crypto SchemeRead the Press Release
The inventor of cryptocurrency AriseCoin was sentenced today to five years in federal prison for duping investors out of more than $4 million, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
AriseBank CEO Jared Rice, Sr. – who settled a civil action involving AriseCoin filed by the SEC’s Fort Worth regional office last year – pleaded guilty to one count of securities fraud in March 2019. He was sentenced Wednesday by U.S. District Judge Ed Kinkeade, who ordered him to pay $4,258,073 in restitution.
According to his plea papers, Mr. Rice, 33, admitted he lied to would-be investors, claiming that AriseBank – billed as the world’s “first decentralized banking platform” based on the proprietary digital currency AriseCoin – could offer consumers FDIC-insured accounts and traditional banking services, including Visa-brand credit cards, in addition to cryptocurrency services. In actuality, AriseBank had not been authorized to conduct banking in Texas, was not FDIC insured, and did not have any sort of partnership with Visa.
Even as he touted AriseBank’s nonexistent benefits, Mr. Rice quietly converted investor funds for his own personal use, spending the money on hotels, food, transportation, a family law attorney, and even a guardian ad litem – facts he failed to disclose to investors. He also failed to disclose that he’d plead guilty to state felony charges in connection with a prior internet-related business scheme.
Meanwhile, hundreds of investors bought approximately $4,250,000 in AriseCoin using digital currencies like Bitcoin, Ethereum, and Litecoin, as well as fiat currency.
The Federal Bureau of Investigation’s Dallas Field Office conducted the investigation. Assistant U.S. Attorneys Mary Walters, Sid Mody, and Erica Hilliard prosecuted the case.
Conspirator in Scheme to Defraud a Maryland Company of More Than $2 Million Sentenced to Three Years in Federal PrisonRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge James K. Bredar today sentenced Chonnathason Has, a/k/a Bora Has, age 54, of Philadelphia, Pennsylvania, to three years in federal prison, followed by three years of supervised release, for conspiracy and wire fraud, in connection with a scheme to defraud a Maryland company of more than $2 million. Chief Judge Bredar also ordered Has to pay restitution in the amount of $2,478,069.16.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner and Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office.
According to his plea agreement and other court documents, Has and co-defendants Mean Peach, Eam Peng Chou, and Thi Ho, conspired with Kevin Miller, who was employed as the Director of Planning, Logistics, and Control at Company A, located in Linthicum, Maryland, and was engaged in the business of manufacturing personal products, such as hair care, hair dye and lotions. Miller was responsible for determining the timing and volume requirements for materials used in the manufacturing operations at Company A, and had the authority to approve payments of invoices submitted by vendors and service providers without obtaining approval from anyone else at Company A.
As detailed in their plea agreements, from about September 2015, through March 2019, Has, Peach, Chou, Ho, and Miller engaged in a scheme to defraud Company A of at least $2.4 million. Specifically, in approximately September 2015, Company A assigned Miller the task of arranging for vendors to dispose of various waste products that were stored at the Company’s two warehouse locations in Maryland. Has, Peach, Chou, and other conspirators created and used shell companies in various names, with business addresses that were mail boxes at commercial mail facilities, to submit fraudulent invoices to Company A for waste disposal and other work that was never performed by those entities. Miller approved the fraudulent invoices and submitted them to Company A’s accounting department for payment. Company A then issued checks which the conspirators would transmit and cause to be transmitted from Maryland to Pennsylvania. Has, Peach, and Chou, would cash the checks at facilities in Philadelphia and the proceeds would be divided up among the conspirators.
As a result of the conspiracy and scheme to defraud, the defendants caused Company A to issue approximately $2.4 million in checks for goods and services that it never received.
Thi Ho, age 51, of Bear, Delaware, who pleaded guilty to conspiracy and interstate transportation of stolen property, was sentenced to 46 months in federal prison and ordered to pay restitution of $2,478,069.16. Mean Peach, age 65 and Eam Peng Chou, age 56, both of Philadelphia, Pennsylvania, were sentenced to two years in federal prison and a year and a day in federal prison, respectively, for conspiracy and for interstate transportation of stolen property and were each ordered to pay restitution in the amount of $1,645,494. Kevin Miller, age 48, of Bel Air, Maryland, pleaded guilty to his role in the scheme and is scheduled to be sentenced on October 22, 2021.
Acting United States Attorney Jonathan F. Lenzner commended the FBI for its work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Kathleen O. Gavin, who is prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Co-Founder and Former CEO of Palo Alto-Based Start-Up Technology Company Headspin Charged with Securities Fraud and Wire FraudRead the Press Release
SAN FRANCISCO - Manish Lachwani, co-founder and former CEO of technology company Headspin, was arrested today on charges of securities fraud and wire fraud perpetrated to raise money from investors, announced Acting United States Attorney Stephanie M. Hinds and Federal Bureau of Investigation Special Agent in Charge Craig D. Fair.
According to the federal complaint unsealed today, Lachwani, 45, of Santa Clara County, is a co-founder of the Palo Alto-based technology company Headspin and acted as its CEO from its inception in 2015 until approximately May 2020. Headspin provides a remote service that allows customers to access mobile devices around the world and remotely test their applications across different communications networks and in different locations. Headspin earns revenue by selling subscriptions to its services, according to the complaint.
The complaint alleges that from its 2015 inception until about March 2020, Headspin raised millions of dollars from investors during four major rounds of financing. At its inception, Headspin raised approximately $11 million through the sale of Series A preferred shares. Later, in April 2017 to May 2018, Headspin raised approximately $24.7 million selling promissory notes convertible into future Series B preferred stock. During September to October 2018, Headspin raised approximately $20 million dollars in the sale of Series B preferred shares. The fourth round of fundraising occurred from November 2019 to early 2020, and Headspin raised approximately $60 million in selling Series C preferred shares.
During the Series C fund raising round – starting no later than November 1, 2019, through at least January 30, 2020 – the federal complaint charges that Lachwani engaged in a scheme of securities fraud and wire fraud. The complaint alleges that in materials and presentations to potential investors, Lachwani reported false revenue and overstated key financial metrics of the company. According to the complaint, Lachwani maintained control over operations, sales, and record-keeping, including invoicing, and he was the final decision maker on what revenue was booked and included in the company’s financial records. Multiple examples are alleged in the complaint of Lachwani instructing employees to include revenue from potential customers that inquired but did not engage Headspin, from past customers who no longer did business with Headspin, and from existing customers whose business was far less than the reported revenue. Among other information, Lachwani provided investors false information that overstated Headspin’s annual recurring revenue (ARR) – a key metric for evaluating the success of companies that provide “software as a service” – by approximately $51 to $55 million.
The company’s unaudited financial statements were reviewed by an auditing firm in May 2020. According to the complaint, the review concluded that Headspin’s cumulative revenues from inception through the first half of 2020 totaled only approximately $26.3 million, instead of the $95.3 million originally reported by the company. The review also calculated the cumulative net loss from Headspin’s inception through the first half of 2020, totaling approximately $15.9 million, instead of the $3.7 million net income originally reported by the company.
The complaint alleges that in the fall of 2018, during Headspin’s Series B fundraising round, investors agreed to purchase shares at prices that valued the company at approximately $500 million dollars. By late 2019, during the Series C fundraising round, investors agreed to purchase shares at prices that valued the company at approximately $1.1 billion. According the allegations in the complaint, after the company discovered the overstated revenue and recapitalized the company’s investors, the valuation of the company dropped to approximately $300 million.
Lachwani will make an initial appearance in federal court to face the charges in the complaint on date and time to be set by the court.
Lachwani is charged in the complaint with one count of wire fraud in violation of 18 U.S.C. § 1343 and one count of securities fraud in violation of 15 U.S.C. §§ 78j(b) and78ff and Title 17 C.F.R. § 240.10b-5. If convicted of wire fraud, he faces a maximum sentence of 20 years in prison and a fine of $250,000. If convicted of securities fraud, he faces a maximum sentence of 20 years in prison and a fine of $5,000,000. If convicted of either count, Lachwani is required to pay restitution. Any sentence following conviction, however, would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
A complaint merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
The case is being prosecuted by the Corporate and Securities Fraud Section of the U.S. Attorney’s Office for the Northern District of California. The prosecution is the result of an investigation by the FBI. The U.S. Attorney’s Office and the FBI thank the San Francisco Regional Office of the Securities and Exchange Commission (SEC). The SEC announced today the filing of a civil enforcement action against Lachwani in the Northern District of California.
Clinton Man Sentenced to Federal Prison for Child Pornography ChargeRead the Press Release
DAVENPORT, IOWA – A Clinton man, Ray Daytrel Hopkins, age 45, was sentenced on August 24, 2021, by United States District Court Judge Stephanie M. Rose to 120 months in prison for Possession of Child Pornography. Hopkins was ordered to serve 10 years of supervised release to follow his prison term and pay $100 to the Crime Victims’ Fund and $6,000 in restitution.
According to court documents, Hopkins was identified by law enforcement when an SD card from a camera belonging to Hopkins was turned over to the Clinton Police Department. Upon reviewing the SD card’s contents, law enforcement uncovered multiple videos of nude minor females. Law enforcement then executed a valid search warrant at Hopkins’s residence and seized additional electronic devices. On Hopkins’s cell phone, law enforcement located additional sexually explicit images of minor females. Hopkins pleaded guilty to the charge on April 9, 2021, admitting to knowingly possessing these visual depictions.
Acting United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Clinton Police Department and the Federal Bureau of Investigation investigated the case.
Cincinnati man pleads guilty to using identity of deceased friend to obtain Social Security, SNAP benefitsRead the Press Release
CINCINNATI – Frank Morris, 73, of Cincinnati, pleaded guilty in U.S. District Court to using the identity of a deceased childhood friend to obtain more than $120,000 in Social Security and SNAP food stamp benefits. Morris also compiled a criminal record in the victim’s name over the 50-year span in which Morris used the identity.
Specifically, Morris pleaded guilty to theft of public money (punishable by up to 10 years in prison) and false representation of a Social Security number (punishable by up to five years in prison).
According to court documents, Morris assumed the identity of an individual after the individual’s death in 1966. Since at least 1973 and continuing up to present, Morris was repeatedly arrested under the victim’s identity.
In 2004, Morris began using the victim’s identity to collect Supplemental Security Income disability payments. From 2004 until 2020, Morris received more than $123,000 in disability payments.
In 2018, Morris applied for SNAP food stamp benefits using the victim’s identity and received approximately $1,600 in benefits.
The Social Security Administration’s Office of Inspector General, United States Secret Service, USDA Office of Inspector General and the Ohio Bureau of Motor Vehicles cooperatively investigated this case.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio, announced the plea entered into before Senior U.S. District Judge Susan J. Dlott. Special Assistant United States Attorney Timothy Landry is representing the United States in this case.
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Connecticut Woman Sentenced for Walking on Thermal Area in Yellowstone National ParkRead the Press Release
Acting United States Attorney Bob Murray announced today that MADELINE S. CASEY, age 26 of New Hartford, Connecticut was sentenced to seven days in jail for walking on thermal ground at Norris Geyser Basin in Yellowstone National Park. In addition, she was ordered to pay a $1,000 fine, $40 in fees and a $1,000 community service payment to the Yellowstone Forever Geological Resource Fund. Casey appeared in front of Magistrate Judge Mark L. Carman in Mammoth Hot Springs, Wyoming on August 18, 2021, for sentencing.
Casey was with two other people as they made their way up to a thermal pool and geyser at Norris Geyser Basin. She and one other person got off the boardwalk and were walking on thermal ground. Multiple other people were concerned and took photos and videos of the three. Norris Geyser Basin is an area well marked with signs and warnings to stay on the boardwalk.
“Boardwalks in geyser basins protect visitors and delicate thermal formations,” said Yellowstone National Park Public Affairs Officer Morgan Warthin. “The ground is fragile and thin and scalding water just below the surface can cause severe or fatal burns. More than 20 people have died from burns suffered after they entered or fell into Yellowstone’s hot springs.”
“For those who lack a natural ability to appreciate the dangerousness of crusty and unstable ground, boiling water, and scalding mud, the National Park Service does a darn good job of warning them to stay on the boardwalk and trial in thermal areas,” said Acting United States Attorney Bob Murray. “Yet there will always be those like Ms. Casey who don’t get it. Although a criminal prosecution and jailtime may seem harsh, it’s better than spending time in a hospital’s burn unit.”
This case was handled by Yellowstone National Park law enforcement officers and prosecuted by Assistant United States Attorney Stephanie Hambrick.
For questions relating to Yellowstone National Park, please contact the Public Affairs Office at 307-344-2015 or [email protected].
Burlington Man Sentenced to 320 Months in Prison for Conspiring to Distribute Ice MethamphetamineRead the Press Release
DAVENPORT, IOWA – Michael Antonio Davison, age 36, of Burlington, was sentenced by United States District Court Chief Judge John A. Jarvey to 320 months in prison for trafficking ice methamphetamine into Burlington. Davison was involved in importing/distributing approximately 160 kilograms of ice methamphetamine in the Burlington area. Davison was also a leader/organizer of a drug trafficking group and possessed a firearm related to his drug trafficking activities. Davison has five prior convictions for felony drug offenses, and was under criminal justice supervision for two different drug felony offenses at the time of this criminal activity. Davison was ordered to serve five years of supervised release to follow his prison term. Davison was also ordered to pay $200 to the Crime Victims’ Compensation Fund.
Acting United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Southeast Iowa Narcotics Taskforce, Iowa Division of Narcotics Enforcement, Des Moines County Sheriff’s Office, and the Burlington Police Department. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Box Elder Man Sentenced to Life in Federal Prison for Sex CrimesRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Box Elder, South Dakota, man convicted of Sexual Exploitation of a Minor and Attempted Enticement of a Minor Using the Internet was sentenced on August 17, 2021, by Jeffrey L. Viken, U.S. District Judge.
Adam Ryan Swift, age 32, was sentenced to 30 years in federal prison for Sexual Exploitation of a Minor and life in prison for Attempted Enticement of a Minor Using the Internet. The sentences are to run concurrently. Swift was also ordered to pay $24,700 in restitution and a $200 special assessment to the Federal Crime Victims Fund.
Swift was indicted by a federal grand jury on June 11, 2020. He pleaded guilty on April 9, 2021. The conviction stems from Swift communicating with the parent of a 9- year-old girl in New York state, who was in fact an undercover agent, with the purpose of engaging in sexual activity with the minor female. The undercover agent in New York prepared a report and sent to local law enforcement, who were able to identify Swift. Local law enforcement then contacted Swift, posing as the parent of a 5-year-old girl and arranged a time to meet, again with the purpose of Swift engaging in sexual activity with the minor. The meeting took place and Swift was arrested. Forensics of Swift’s devices and accounts revealed he produced images of child pornography with a 4-year-old male, as well as downloaded child pornography off the internet.
This case was investigated by the South Dakota Division of Criminal Investigation, Homeland Security Investigations, Federal Bureau of Investigation, Rapid City Police Department, and the Pennington County Sheriff’s Office. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Swift was immediately turned over to the custody of the U.S. Marshals Service.
Billings methamphetamine trafficker sentenced to 12 years in prisonRead the Press Release
BILLINGS — A Billings man who admitted to trafficking methamphetamine after law enforcement officers seized about eight pounds of the drug and three loaded handguns from his vehicle during a stop near Miles City was sentenced today to 12 years in prison to be followed by five years of supervised release, Acting U.S. Attorney Leif M. Johnson said.
Tyler James Fleming, 39, pleaded guilty on Oct. 8, 2020 to conspiracy to possess with intent to distribute meth and to possession with intent to distribute meth.
U.S. District Judge Susan P. Watters presided.
The government alleged in court documents that in 2019, drug task force officers received information that Fleming was trafficking drugs in the Billings area and also possessed firearms for protection. In December 2019, investigators learned Fleming had traveled to Arizona and returned two days later. Officers conducted a traffic stop of Fleming's vehicle outside of Miles City. Officers located approximately eight pounds of meth and three loaded handguns in the cab of his truck. Eight pounds of meth is the equivalent of about 28,992 doses.
Assistant U.S. Attorney Julie R. Patten prosecuted the case, which was investigated by the Eastern Montana High Intensity Drug Trafficking Area Task Force and the FBI’s Western Transnational Organized Crime Task Force.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Billings massage parlor owner admits enticing workers to provide sexual servicesRead the Press Release
BILLINGS – A Billings woman who owned and operated massage parlors in Billings admitted allegations on Tuesday that she enticed women to work and provide prostitution services in her businesses, Acting U.S. Attorney Leif M. Johnson said today.
Kyong Cha Roberts, 68, pleaded guilty to an indictment charging her with coercion and enticement. Roberts faces a maximum 20 years in prison, a $250,000 fine and five years of supervised release.
U.S. Magistrate Judge Timothy J. Cavan presided. A sentencing date is pending before U.S. District Judge Dana L. Christensen. Roberts was released pending further proceedings.
In court documents, the government alleged that from about 2016 through 2019, Roberts owned and operated massage parlors in Billings, including U-Spa and Happy Spa. In June 2019, Roberts posted an advertisement in an online Korean newspaper, Kyocharo, seeking women to work in her massage business and provided her phone number. A woman, identified as Jane Doe 1, contacted Roberts, who told Doe that she could make around $5,000 per month at the massage parlor. Doe talked over the phone with Roberts about sexual services being provided at U-Spa. Doe agreed to come to Billings, bought a bus ticket, arrived in June 2019 and began working at U-Spa. Doe and Roberts discussed sexual services again. Customers typically would pay cash for services. Most customers received a massage and sexual services. Prostitution is illegal in Montana.
Assistant U.S. Attorneys Zeno B. Baucus and Bryan T. Dake are prosecuting the case, which was investigated by the FBI.
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Berwick Man Charged with Conspiring to Manufacture and Distribute Anabolic SteroidsRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Casey Seesholtz, age 31, of Berwick, Pennsylvania, was charged in a criminal information with conspiring to manufacture and distribute anabolic steroids. Seesholtz was charged on August 27, 2020 and pleaded guilty on September 3, 2020, but the information remained under seal until recently.
According to Acting United States Attorney Bruce D. Brandler, the Information alleges that between October 2017 and October 2019, Seesholtz conspired to distribute and manufacture the anabolic steroids methylstenbolone (known as M-Sten) and dimethazine (known as DMZ). Seesholtz pleaded guilty to manufacturing between 40,000 and 60,000 pills of the anabolic steroids at a warehouse in Berwick, Pennsylvania. He also admitted to selling some of the anabolic steroids through a storefront in Kingston, Pennsylvania, while others were sold online by his coconspirators. Federal agents seized pill presses and encapsulating machines during the course of the investigation.
The case was investigated by the Drug Enforcement Administration, the Food and Drug Administration, and Homeland Security Investigations. Assistant U.S. Attorney Phillip J. Caraballo is prosecuting the case.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is 10 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Baltimore Felon Sentenced to Seven Years in Federal Prison After Pleading Guilty to Illegal Possession of a Stolen FirearmRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander yesterday sentenced Frank Davis, age 52, of Baltimore, Maryland, to seven years in federal prison, followed by three years of supervised release, after Davis pleaded guilty to possession of a stolen firearm.
The guilty plea and sentence were announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Timothy Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Commissioner Michael Harrison of the Baltimore Police Department.
According to his plea agreement, on March 12, 2020 a Baltimore Police officer on patrol near the intersection of West North Avenue and McCullough Street in Baltimore saw Davis reach his hands inside his sweatshirt and attempt to adjust something multiple times. The officer believed that what Davis was adjusting was a firearm and contacted the City Watch Unit to see if the individual monitoring the City Watch camera in that area agreed with the officer’s assessment. The camera operator confirmed that she did agree and the officer approached Davis to investigate further. Davis ran away, but was quickly apprehended and the gun, a 9mm semi-automatic pistol, loaded with 15 rounds of 9mm ammunition, was recovered from Davis’ waistband area. Davis agreed that he knew or had reasonable cause to believe the firearm was stolen at the time he possessed it.
As detailed in his plea agreement, at the time of his arrest Davis had at least two previous felony convictions for either a crime of violence or a controlled substance offense.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Acting United States Attorney Jonathan F. Lenzner commended the ATF and the Baltimore Police Department for their work in the investigation. Mr. Lenzner thanked Special Assistant U.S. Attorney Lindsay DeFrancesco and Assistant U.S. Attorney LaRai Everett, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Baltimore Felon Sentenced to over Six Years in Federal Prison for Possession of a Stolen FirearmRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Daniel Taylor, age 41, of Baltimore, Maryland to 80 months in federal prison, followed by three years of supervised release, for possession of a stolen firearm.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Timothy Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Commissioner Michael Harrison of the Baltimore Police Department.
According to his plea agreement, on September 9, 2019, as BPD detectives patrolled the 600 block of Cumberland Street, detectives observed Taylor with a heavy object on the right side of his pants that caused the pants to bulge. When Taylor noticed detectives, he immediately let go of the object and made an unusual maneuver.
As a detective exited the patrol car to approach Taylor, Taylor fled on foot until he was apprehended at the intersection of Pennsylvania Avenue and Baker Street. During the chase, a pursing detective observed Taylor throw a firearm onto a nearby rooftop. After contacting BPD’S Aviation Unit, Foxtrot, for support, law enforcement recovered a 9mm semi-automatic pistol loaded with sixteen rounds of ammunition.
After voluntarily waving his Miranda rights, Taylor admitted to possessing the firearm for protection and that he was not the lawful owner of the firearm. Taylor also agreed that he knew, or had reason to know, that the firearm was stolen at the time of his possession.
Taylor agreed that he committed the offense after sustaining at least two felony convictions for either a crime of violence or a controlled substance offense and his civil rights had not been restored.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Acting United States Attorney Jonathan F. Lenzner praised the ATF and Baltimore Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Patricia C. McLane and Special Assistant U.S. Attorney Lindsay DeFrancesco, who prosecuted the case.
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Attorneys and Doctors in New York Charged with Defrauding Businesses and Insurance Companies of More Than $31 Million Through Trip-And-Fall Fraud SchemeRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an Indictment charging GEORGE CONSTANTINE, MARC ELEFANT, ANDREW DOWD, and SADY RIBEIRO with conspiracy to commit mail and wire fraud, mail fraud, and wire fraud in connection with a scheme to obtain fraudulent insurance reimbursements and other compensation for fraudulent trip-and-fall accidents. ELEFANT, DOWD, and RIBEIRO were arrested earlier this morning and will be presented today before United States Magistrate Kevin Nathaniel Fox in Manhattan federal court. CONSTANTINE is expected to surrender and be presented in Manhattan federal court tomorrow. The case has been assigned to United States District Judge Loretta A. Preska.
Manhattan U.S. Attorney Audrey Strauss said: “As alleged, the defendants abused their professional licenses and positions of trust to steal millions of dollars from New York City businesses and their insurance companies through a massive trip-and-fall fraud scheme. In carrying out the scheme, the defendants allegedly preyed upon the most vulnerable members of society. Now, thanks to the FBI, the defendants are in custody and facing federal charges.”
FBI Assistant Director-in-Charge Michael J. Driscoll said: “The scheme allegedly carried about by the defendants charged today highlights the extent to which some are willing to go in the name of money. Licensed attorneys are well aware of their obligation to uphold the law. As we allege today, they did just the opposite, stealing from business owners and preying upon other vulnerable victims who were coerced into risking their own personal health and safety. This alleged conduct is beyond reprehensible, and something we won’t let people get away with.”
As alleged in the Indictment unsealed today in Manhattan federal court[1]:
From in or about January 2013, up to and including in or about April 2018, the defendants engaged in an extensive fraud scheme through which the defendants defrauded businesses and insurance companies by staging trip-and-fall accidents and filing fraudulent lawsuits arising from those staged trip-and-fall accidents. In or about 2015, certain members of the fraud scheme split from the original conspiracy and formed a separate conspiracy that operated in substantially the same manner. GEORGE CONSTANTINE was the primary attorney who filed fraudulent lawsuits in the original conspiracy starting in 2013. MARC ELEFANT was the primary attorney who filed fraudulent lawsuits in the separate conspiracy, formed in or about 2015.
Fraud scheme participants recruited individuals (the “Patients”) to stage or falsely claim to have suffered trip-and-fall accidents at particular locations throughout the New York City area (the “Accident Sites”). In the course of the fraud scheme, scheme participants recruited more than 400 Patients. In the beginning, scheme participants would instruct Patients to claim they had tripped and fallen at a particular location, when in fact the Patients had suffered no such accidents. Eventually, at the direction of the lawyers who filed fraudulent lawsuits on behalf of the Patients, scheme participants began to instruct Patients to stage trip-and-fall accidents, i.e., to go to a location and deliberately fall. Common Accident Sites used during the fraud scheme included cellar doors, cracks in concrete sidewalks, and purported “potholes.”
After the staged trip-and-fall accidents, Patients were referred to specific attorneys, including GEORGE CONSTANTINE and MARC ELEFANT, who would file personal injury lawsuits (the “Fraudulent Lawsuits”) against the owners of the Accident Sites and/or insurance companies of the owners of the accident sites (the “Victims”). The Fraudulent Lawsuits did not disclose that the Patients had deliberately fallen at the accident sites or, in some cases, had not fallen at all. During the course of the fraud scheme, the defendants, together with others known and unknown, attempted to defraud the Victims of more than $31,000,000.
The Patients were also instructed to receive ongoing chiropractic and medical treatment from certain chiropractors and doctors, including ANDREW DOWD and SADY RIBEIRO. The fraud scheme participants advised the Patients that if they intended to continue with their lawsuits, they were required to undergo surgery. As an incentive to getting surgery, the recruited Patients were offered a payment of typically between $1,000 and $1,500 after they completed surgery (“Post-Surgery Payments”). Patients generally were told to undergo two surgeries.
Doctors in the fraud scheme, including DOWD and RIBEIRO, were expected to, and in fact did, conduct these surgeries regardless of the legitimate medical needs of the Patients. For example, in a March 2016 email, before DOWD examined the shoulder of a particular Patient who had staged a trip-and-fall accident (“Patient-2”), one of the scheme organizers asked DOWD to “write us an additional report today stating that [Patient-2’s] Lt. shoulder has worsened [so that I can] book this surgery for you.” DOWD provided the requested report and recommended that Patient-2 undergo arthroscopic surgery.
Likewise, in an August 2015 email from RIBEIRO to the owner of a litigation funding company, in which RIBEIRO described the services that he performed, RIBEIRO wrote, “I will play very honest ‘game’ with you . . . I see the patient and I generate a very good dictation that justifies the treatment-there is a cost for that and I hope a profit.”
Members of the fraud scheme often recruited individuals who were extremely poor as Patients – individuals desperate enough to submit to surgeries in exchange for the small Post-Surgery Payments. For example, it was common for Patients to ask for food when they would appear for their intake meetings with the lawyers. Many of the Patients did not have sufficient clothing to keep them warm during the wintertime and had poor-quality shoes. Members of the fraud scheme also recruited Patients who were drug addicts. It was also common for scheme participants to recruit Patients from homeless shelters in New York City.
The Patients’ legal and medical fees were usually paid for by litigation funding companies (the “Funding Companies”), even if the Patient maintained medical coverage through an insurance company or a government-subsidized program. The Funding Companies also paid the fraud scheme organizers and participants referral fees, typically $1,000 to $2,500, for each Patient who signed a funding agreement. In exchange for funding Patients’ medical and legal costs, the Funding Companies charged the Patients high interest rates, sometimes up to 50% on medical loans and up to 100% on personal loans. The interest rates were so high that oftentimes the majority (if not all) of the proceeds that were awarded in the Fraudulent Lawsuits were paid to the Funding Companies, CONSTANTINE, ELEFANT, DOWD, RIBEIRO, and others, with the Patients receiving a much smaller percentage of the remaining recovery.
GEORGE CONSTANTINE, 58, and MARC ELEFANT, 49, are New York-licensed attorneys who represented hundreds of Patients and filed Fraudulent Lawsuits on their behalf as part of the fraud scheme.
ANDREW DOWD, 45, is a New York-licensed orthopedic surgeon who performed hundreds of knee and shoulder surgeries on Patients as part of the fraud scheme, earning approximately $9,500 per surgery.
SADY RIBEIRO, 51, is a New York-licensed pain management doctor and surgeon who performed back surgeries, among other medical procedures, on Patients. RIBEIRO paid participants cash kickbacks in exchange for patient referrals and treated nearly 200 Patients during the fraud scheme.
GEORGE CONSTANTINE, MARC ELEFANT, ANDREW DOWD, and SADY RIBEIRO are each charged with conspiracy to commit mail and wire fraud, which carries a maximum sentence of 20 years in prison, mail fraud, which carries a maximum sentence of 20 years in prison, and wire fraud, which carries a maximum sentence of 20 years in prison. DOWD and RIBEIRO are also charged with one additional count each of conspiracy to commit mail and wire fraud, mail fraud, and wire fraud. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by the judge.
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Ms. Strauss praised the outstanding investigative work of the New York FBI. Ms. Strauss also thanked the National Insurance Crime Bureau for their assistance in the investigation.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Nicholas Chiuchiolo, Nicholas Folly, and Alexandra Rothman are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
24 August 2021
Woman Sentenced to 70 Months in Federal Prison for Assault with a Dangerous WeaponRead the Press Release
Spokane – Joseph H. Harrington, Acting United States Attorney for the Eastern District of Washington, announced that Kathleen Joy Yallup, age 45, of Parker, Washington, was sentenced today after having been found guilty on April 21, 2021, of assault with a dangerous weapon following a three-day jury trial. United States District Judge Salvador Mendoza, Jr. sentenced Yallup to a 70-month term of imprisonment, to be followed by a 3-year term of court supervision after she is released from federal prison.
According to information disclosed during court proceedings, Yallup stabbed the male victim multiple times in the face and chest during an argument inside his car on January 10, 2020, in Parker, Washington, which is within the external boundaries of the Yakama Nation. Shortly after the assault, Yallup was arrested by Yakama Nation Police officers.
Acting United States Attorney Harrington said, “The United States Attorney’s Office for the Eastern District of Washington commends the law enforcement officers with the Yakama Nation Police Department, Yakima County Sheriff’s Office, and the Federal Bureau of Investigation who investigated this case. Violent crime in the external boundaries of the Yakama Nation is extremely serious and the United States Attorney’s Office for the Eastern District of Washington will prosecute vigorously any individuals who may engage in such conduct.”
This case was investigated by the Yakama Nation Police Department, Yakima County Sheriff’s Office, and the Federal Bureau of Investigation. This case was prosecuted by Benjamin D. Seal, and Matthew A. Stone, Assistant United States Attorneys for the Eastern District of Washington.
Watertown Family Charged with Lottery Scam and Tax FraudRead the Press Release
BOSTON – A father and his two sons were charged yesterday in connection with a “ten-percenting” scheme in which they allegedly cashed winning Massachusetts state lottery tickets on behalf of the ticket holders to avoid taxes on the winnings.
Ali Jaafar, 62, and Yousef Jaafar, 28, both of Watertown, and Mohamed Jaafar, 30, of Watertown and Waltham, and were each indicted on one count of conspiracy to defraud the Internal Revenue Service, one count of conspiracy to commit money laundering and multiple counts of filing false tax returns.
According to the charging documents, the defendants conspired with others to purchase winning lottery tickets from the actual winners for cash, at a discount that was typically between 10-20 percent of each ticket’s value, thereby allowing the ticket holders to avoid reporting the winnings on their tax returns – a scheme commonly known as “ten-percenting.” The defendants and co-conspirators then allegedly presented the winning tickets to the Massachusetts Lottery Commission as their own and collected the full value of the tickets. It is also alleged that the defendants reported the ticket winnings as their own on their income tax returns and improperly offset the claimed winnings with purported gambling losses, thereby avoiding federal income taxes.
Between 2011 and 2019, the defendants together cashed more than 13,000 lottery tickets and claimed more than $20,989,284 in Massachusetts lottery winnings. Based upon their submitted lottery claims, in 2019, Ali Jaafar was the top individual lottery ticket casher for Massachusetts. Mohamed Jaafar was the third highest individual ticket casher and Yousef Jaafar was the fourth highest individual ticket casher.
The charge of conspiracy to defraud the Internal Revenue Service 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 loss, whichever is greater, 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, restitution and forfeiture. The charge of filing false tax returns provides for a sentence of up to three years in prison, one year of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Ramsey E. Covington, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement. Assistance was provided by the Massachusetts State Lottery Commission. Assistant U.S. Attorney Sara Miron Bloom of Mendell’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.
The details contained in the charging document are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Washington tech executive sentenced to prison for COVID-19 relief fraud schemeRead the Press Release
Seattle – A Washington tech executive was sentenced today to 2 years in prison for perpetrating a scheme to fraudulently obtain COVID-19 disaster relief loans guaranteed by the Small Business Administration (SBA) through the Paycheck Protection Program (PPP) under the Coronavirus Aid, Relief and Economic Security (CARES) Act.
Mukund Mohan, 48, of Clyde Hill, pleaded guilty to charges of wire fraud and money laundering on March 15, 2021. According to court documents, Mohan submitted eight fraudulent disaster loan applications seeking over $5.5 million. In support of the fraudulent loan applications, Mohan submitted fake and altered documents, including fake federal tax filings and altered incorporation documents. For example, Mohan misrepresented to a lender that, in 2019, his company Mahenjo Inc. had dozens of employees and paid millions of dollars in employee wages and payroll taxes. In support of Mahenjo’s loan application, Mohan submitted false incorporation documents and tax forms suggesting the company had been in business prior to 2020. In truth, Mohan purchased Mahenjo in May 2020 and, at the time he purchased the company, it had no employees and no business activity. The incorporation documents he submitted to the lender were altered and the federal tax filings he submitted were fake. Five of Mohan’s eight fraudulent loan applications were approved, and he fraudulently obtained nearly $1.8 million in COVID-19 relief funds.
In addition to the prison sentence, Mohan was ordered to pay a fine in the amount of $100,000 and $1,786,357 in restitution.
“When individuals like Mr. Mohan abuse the benefit programs under the CARES act to unjustly enrich themselves, they are stealing from those that are the most vulnerable,” said Acting Special Agent in Charge Corinne Kalve of IRS Criminal Investigation (IRS:CI). “Today, Mr. Mohan is being held accountable for the harm his greed has caused our friends, our families, and our communities.”
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Acting U.S. Attorney Tessa M. Gorman for the Western District of Washington; Acting Inspector General Phyllis Fong of the Federal Housing Finance Agency Office of Inspector General (FHFA-OIG); Acting Special Agent in Charge Corinne Kalve of Internal Revenue Service Criminal Investigation (IRS-CI); Inspector General J. Russell George of the U.S. Treasury Inspector General for Tax Administration (TIGTA); and Special Agent In Charge Jeff Pittano of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG), made the announcement.
This case was investigated by FHFA-OIG, IRS-CI, TIGTA, and FDIC-OIG.
Assistant U.S. Attorney Andrew Friedman of the Western District of Washington and Trial Attorney Christopher Fenton of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the department’s prosecution of fraud schemes that exploit the PPP. In the months since the PPP began, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases. The Fraud Section has also seized more than $65 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at: https://www.justice.gov/criminal-fraud/ppp-fraud.
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.
Washington Tech Executive Sentenced for Covid-19 Relief Fraud SchemeRead the Press Release
A Washington state tech executive was sentenced today in the Western District of Washington to two years in prison for perpetrating a scheme to fraudulently obtain COVID-19 disaster relief loans guaranteed by the Small Business Administration (SBA) through the Economic Injury Disaster Loan (EIDL) and the Paycheck Protection Program (PPP) under the Coronavirus Aid, Relief and Economic Security (CARES) Act.
Mukund Mohan, 48, of Clyde Hill, pleaded guilty to charges of wire fraud and money laundering on March 15. According to court documents, Mohan sought more than $5.5 million through eight fraudulent disaster loan applications. In support of the fraudulent loan applications, Mohan submitted fake and altered documents, including fake federal tax filings and altered incorporation documents. For example, Mohan misrepresented to a lender that, in 2019, his company Mahenjo Inc. had dozens of employees and paid millions of dollars in employee wages and payroll taxes. In support of Mahenjo’s loan application, Mohan submitted false incorporation documents and tax forms suggesting that the company had been in business prior to 2020. In truth, Mohan purchased Mahenjo in May 2020 and at the time he purchased the company, it had no employees and no business activity. The incorporation documents that he submitted to the lender were altered and the federal tax filings he submitted were fake. Five of Mohan’s eight fraudulent loan applications were approved, and he fraudulently obtained nearly $1.8 million in COVID-19 relief funds.
In addition to the prison sentence, Mohan was ordered to pay a fine in the amount of $100,000 and $1,786,357 in restitution.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Acting U.S. Attorney Tessa M. Gorman for the Western District of Washington; Special Agent in Charge Jay Johnson of the Federal Housing Finance Agency Office of Inspector General (FHFA-OIG); Acting Special Agent in Charge Corinne Kalve of IRS-Criminal Investigation (IRS-CI); Inspector General J. Russell George of the U.S. Treasury Inspector General for Tax Administration (TIGTA); and Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG), made the announcement.
This case was investigated by FHFA-OIG, IRS-CI, TIGTA, and FDIC-OIG.
Trial Attorney Christopher Fenton of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Andrew Friedman of the Western District of Washington are prosecuting the case.
The Fraud Section leads the department’s prosecution of fraud schemes that exploit the PPP. In the months since the PPP began, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases. The Fraud Section has also seized more than $65 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at: https://www.justice.gov/criminal-fraud/ppp-fraud.
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.
Valley resident sentenced for meth chargesRead the Press Release
McALLEN, Texas – A 49-year-old Mission resident has been ordered to federal prison for conspiracy and possession with intent to distribute more than 500 grams of meth, announced Acting U.S. Attorney Jennifer B. Lowery.
The jury deliberated for approximately 40 minutes before convicting Eugenio Perez Jr. following a two-day trial which included three witnesses.
Today, U.S. District Judge Randy Crane, who presided over the trial and sentencing, ordered Perez to serve 135 months in federal prison.
According to the testimony, authorities discovered 1.6 kilograms of meth while investigating a drag racing incident that resulted in a two-car collision.
At trial, the jury heard from a local police officer who explained how Perez crashed into an SUV pulling out of a parking lot. The officer approached Perez after observing him pull a bag from his truck’s cab and place it into the bed of the truck. He instructed Perez to not take anything from the vehicle.
Perez’s daughter arrived on the scene. At that time, she took the bag from the bed of the truck and placed it in her car, according to testimony.
The officer further testified that he stopped her from leaving the area and asked her to show him what was inside the bag. The daughter opened the bag which was found to contain approximately 1.6 kilograms of meth.
The defense attempted to convince the jury that law enforcement had rushed to judgment and did not perform an adequate and thorough enough investigation to convict Perez. The jury disagreed and found him guilty as charged.
Perez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigation with the assistance of Palmview Police Department. Assistant U.S. Attorneys Michael Mitchell and M. Alexis Garcia prosecuted the case.
United States Coast Guard High-Seas Interdiction Off the Coast of Colombia Results in the Seizure of 973 Kilograms of Cocaine and Arrests of Three South American Nationals Brought to the US Virgin IslandsRead the Press Release
ST. THOMAS, USVI – U.S. Attorney Gretchen C.F. Shappert announced today that three (3) South American nationals charged by Complaint on August 19, 2021, with possession of cocaine onboard a vessel subject to the jurisdiction of the United States were ordered detained by United States Magistrate Ruth Miller pending trial in this matter.
According to court documents, on July 12, 2021, while on patrol, the United States Coast Guard (USCG) Cutter Mohawk intercepted a low-profile vessel located 125 nautical miles south, southwest of Isla De Molpelo, Colombia. The vessel was in international waters and displayed no signs of nationality. It also exhibited suspicious factors including the low-profile construction, no navigation lights, and operation in a known drug vector. The USCG later determined that the vessel was without nationality, thus subject to the jurisdiction of the United States.
Upon inspection of the low-profile vessel, three occupants were identified as Ignasio Espana, 30, and Jairo Riascos Preciado, 52, both of Columbia, and Nestor Vera Escalante, 41, of Ecuador. The USCG boarding team removed a bale in plain view inside the hull of the vessel. Two presumptive NIK tests were conducted on the recovered bale and yielded a positive reaction for cocaine. Thereafter, a search of the entire low-profile vessel resulted in the seizure of approximately 793 kilograms of suspected cocaine.
This case is being investigated by the USCG and the Drug Enforcement Agency, and prosecuted by Assistant United States Attorney Delia Smith. The investigation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
United States Attorney Shappert reminds the public that a criminal complaint is merely a charging document and that all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
U.S. Attorney Announces Criminal and Civil Enforcement Actions Against Medical Practitioners for Roles in Telemedicine Fraud SchemesRead the Press Release
GRAND RAPIDS – U.S. Attorney Andrew B. Birge announced a series of criminal and civil enforcement actions taken as part of a joint-agency healthcare fraud operation in the Western District of Michigan investigating medical practitioners who signed off on illegitimate orders for medical braces and cancer genetic testing promoted by telemarketers. The ongoing investigation—dubbed Operation “Happy Clickers” to reflect many of the practitioners’ habits of approving these orders with little to no review—resolves alleged fraud losses to date to the Medicare Program of over $7.3 million.
These actions follow nationwide takedowns of so-called marketers and owners of durable medical equipment (“DME”) supply companies and cancer genetic testing laboratories who conducted large-scale fraud schemes designed to defraud the Medicare Program (see press releases for takedowns on April 9, 2019, September 27, 2019, and September 30, 2020). The marketers called Medicare beneficiaries, often through overseas call centers, soliciting them for medically unnecessary braces and cancer genetic testing for screening purposes. The marketers, typically working through locum tenens companies, paid medical practitioners to purportedly review and sign these orders under the guise of telemedicine and then sold those signed orders to the owners of the DME supply companies and laboratories in violation of the federal anti-kickback statute.
The resolutions U.S. Attorney Birge announced involved four of the Michigan practitioners who approved and signed these orders on behalf of the marketers:
Richard Laksonen, N.P., a nurse practitioner from Ishpeming, MI, pleaded guilty on August 6, 2021, to one count of making a false statement relating to health care matters. As part of his guilty plea, Mr. Laksonen admitted that he signed orders for medical braces and cancer genetic testing, attesting that he had performed the assessments and verifying that the orders were reasonably and medically necessary, when, in fact, he typically executed the orders without reviewing the records. For example, Mr. Laksonen admitted that, in a one-week period, he signed approximately 335 separate single-patient files, many containing multiple types of braces, spending on average 18 seconds from the time he opened the record to the time he executed it. Mr. Laksonen continued to approve these orders, even after an investigator for a health insurer warned him that the patient referrals were the result of aggressive telemarketing. The investigation further established that many of these braces and tests were not medically necessary. As part of his plea agreement, Mr. Laksonen admitted that Medicare paid over $5.7 million for the orders he approved and signed. The Court will sentence Mr. Laksonen on November 15, 2021.
Hugh G. Deery II, M.D., of Petoskey, MI, Colleen Browne, D.O., formerly of Portland, MI, and Mosab Deen, D.O., of Royal Oak, MI, resolved civil liability for alleged violations of the False Claims Act by entering into civil settlements with the United States. These physicians approved orders for medically unnecessary braces and cancer genetic testing despite many red flags that these items and services were illegitimate. For example, there were often discrepancies between the brace orders and “examination” notes that the physicians signed and the recorded phone calls between the overseas call centers and the Medicare beneficiaries. Additionally, the marketer often suggested the physicians sign multiple brace orders for each beneficiary, and the physicians were pressured not to deny claims.
Medicare beneficiaries targeted by this fraud scheme complained of being “bombarded” by overseas telemarketing calls offering “free” braces. If the doctors took the time to listen to these recorded phone calls, they would have known that the calls were run by telemarketers and not medical professionals. The orders the physicians signed resulted in hundreds of thousands of dollars paid by Medicare for medically unnecessary braces, which beneficiaries often did not want or use.
To resolve their individual liability, Dr. Deery has agreed to pay $301,140, Dr. Browne has agreed to pay $42,000, and Dr. Deen has agreed to pay $28,545. Dr. Browne’s settlement agreement also resolved allegations that she ordered medically unnecessary cancer genetic testing for Medicare beneficiaries for cancer screening purposes. Generally, Medicare does not cover genetic testing solely for the purpose of screening for cancer.
“Given that their approval and signatures are necessary for Medicare to pay for these braces and testing, medical practitioners are the professional backstop against these fraud schemes,” said U.S Attorney Birge. “And when medical practitioners ignore their professional responsibilities, facilitating these fraud schemes in our district, they will be held accountable.”
“The ordering of medically unnecessary services resulting from purported telemedicine visits to Medicare is blatant fraud,” said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General – Chicago Region. “The OIG will continue to work with our law enforcement partners and federal prosecutors to identify and hold accountable those individuals who choose to execute healthcare fraud schemes, and the practitioners who legitimize these schemes, and waste vital taxpayer dollars.”
“As medical professionals, these defendants had an obligation to conduct a good faith review of the devices and medical tests being ordered on behalf of Medicare patients,” said Timothy Waters, Special Agent in Charge of the FBI’s Detroit Field Office. “Their failure to do so contributes to the billions of dollars of fraud losses Medicare suffers annually. Collaborative efforts like this one, demonstrate the FBI and our partners resolve to hold accountable those seeking to defraud the Medicare system.”
Operation “Happy Clickers” is an ongoing initiative by HHS-OIG, the FBI, and the U.S. Attorney’s Office for the Western District of Michigan. Assistant U.S. Attorney Raymond E. Beckering III is overseeing and prosecuting the criminal investigation, and Assistant U.S. Attorney Andrew J. Hull is representing the United States in the parallel civil investigations.
Individuals, including medical professionals, who are aware of past or ongoing conduct involving solicitation and fraudulent approval of medical braces and cancer genetic testing through purported telemedicine services can call the U.S. Attorney’s Office Healthcare Fraud Investigator at 616-808-7572 or submit an online complaint to the HHS-OIG Hotline: https://oig.hhs.gov/fraud/report-fraud/
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South Carolina Resident Sentenced in Multi-Million Dollar Health Care Fraud ConspiracyRead the Press Release
PITTSBURGH, Pa. – A resident of Fort Mill, South Carolina, was sentenced in federal court for conspiracy to defraud the Pennsylvania Medicaid program and health care fraud, Acting United States Attorney Stephen R. Kaufman announced today.
United States District Judge Cathy Bissoon sentenced Tia Collins, 45, to four years’ probation, including six months of home detention for her role in the years-long conspiracy. Collins was also ordered to pay restitution to the Pennsylvania Medicaid program in the amount of $97,907.68.
During her plea hearing, Collins admitted that between 2011 and 2017 she was affiliated with Moriarty Consultants, Inc. (MCI), Activity Daily Living Services, Inc. (ADL), and Everyday People Staffing, Inc. (EPS)—three related entities operating in the home health care industry. MCI, ADL, and a fourth company, Coordination Care, Inc. (CCI), were approved under the Pennsylvania Medicaid program to offer certain services to qualifying Medicaid recipients (“consumers”), including personal assistance services (PAS), service coordination, and non-medical transportation, among other services. Between in and around January 2011 and in and around April 2017, MCI, ADL, and CCI, collectively, received more than $87,000,000 in Medicaid payments based on claims submitted for these services, with PAS payments accounting for more than $80,000,000 of the total amount.
During that time, Collins admitted that she participated in a wide-ranging conspiracy to defraud the Pennsylvania Medicaid program for the purpose of obtaining illegal Medicaid payments through the submission of fraudulent claims for services that were never provided to the consumers identified on the claims, or for which there was insufficient or fabricated documentation to support the claims. As part of the conspiracy, Collins admitted that she fabricated timesheets to reflect the provision of in-home PAS care that, in fact, she never provided to consumers. Collins also admitted that she caused the submission of Medicaid claims in the name of a “ghost” employee for PAS care that was never provided to the consumers specified on the claims. Collins also paid or caused other individuals to pay certain consumers cash kickbacks in exchange for the consumers’ participation in the fraudulent arrangement. Likewise, Collins admitted that she paid additional kickbacks to consumers out of the proceeds of fraudulent transportation reimbursements Collins caused Medicaid to disburse on behalf of the consumers. In total, Collins admitted causing losses to the Pennsylvania Medicaid program in excess of $150,000.
To date, a total of sixteen defendants have been charged in connection with this investigation, twelve of whom have pleaded guilty. The remaining defendants are presumed innocent unless and until proven guilty.
Assistant United States Attorneys Eric G. Olshan and Special Assistant United States Attorney Edward Song are prosecuting this case on behalf of the government. The Federal Bureau of Investigation, Pennsylvania Office of the Attorney General – Medicaid Fraud Control Unit, Internal Revenue Service – Criminal Investigation, U.S. Department of Health and Human Services – Office of Inspector General, and United States Postal Inspection Service conducted the investigation of the defendant.
Second Superseding Indictment Charges Members and Associates of the Byrd Gang with Committing Violent Crimes in Aid of Racketeering, Conspiracy to Commit Rico and Drug Trafficking, and Other Serious Federal CrimesRead the Press Release
NEW ORLEANS, LOUISIANA – TIM JACKSON, a/k/a “T-Maf,” JAMES ALEXANDER, a/k/a “Poo,” a/k/a “Black,” a/k/a “Freak,” CHANCE SKIPPER, a/k/a “Duna,” ERNEST THOMAS, a/k/a “E-Maf,” SAMUEL MORTON, a/k/a “Sosa,” TERRAN WILLIAMS, a/k/a “Funky,” TYRONE BOVIA, a/k/a “Sixx,” JAVONTA DOLEMAN, a/k/a “Dutt,” ALLEN GRAY, a/k/a “Kyedi,” and Randy Calvin, a/k/a “Tokey Hefner,” all of New Orleans, Louisiana, were charged in an eleven count second superseding indictment by a Federal Grand Jury on Friday, August 13, 2021.
According to the second superseding indictment, members of this organization and their associates ran a violent drug trafficking ring in and around the City of New Orleans dating back to 2014. During the course of this organization’s life, its members and associates distributed controlled substances, possessed firearms, committed shootings and violent acts, including murder, attempted murder and aggravated battery.
All of the defendants are charged in Counts 1, 2 and 3. Specifically, TIM JACKSON, a/k/a “T-Maf,” JAMES ALEXANDER, a/k/a “Poo,” a/k/a “Black,” a/k/a “Freak,” CHANCE SKIPPER, a/k/a “Duna,” ERNEST THOMAS, a/k/a “E-Maf,” SAMUEL MORTON, a/k/a “Sosa,” TERRAN WILLIAMS, a/k/a “Funky,” TYRONE BOVIA, a/k/a “Sixx,” JAVONTA DOLEMAN, a/k/a “Dutt,” ALLEN GRAY, a/k/a “Kyedi,” and Randy Calvin, a/k/a “Tokey Hefner,” are charged in Count 1 with a violation of 18 U.S.C. § 1962(d) (Racketeer Influenced and Corrupt Organizations Conspiracy), for which they face a sentence of up to life imprisonment, up to a $250,000 fine, up to five years supervised release, and a mandatory $100 special assessment fee. They are charged in Count 2 with a violation of 21 U.S.C. § 846 (Conspiracy to Distribute Controlled Substances), for which they face a mandatory minimum of 10 years imprisonment up to life, up to a $10,000,000 fine, at least five years supervised release, and a mandatory $100 special assessment fee. Finally, all the defendants are charged in Count 3 with a violation of 18 U.S.C. § 924(o) (Conspiracy to Possess Firearms), for which they face up to 20 years imprisonment, a fine of up to $250,000, up to three years supervised release, and a mandatory $100 special assessment fee.
Defendants TERRAN WILLIAMS, a/k/a “Funky,” TYRONE BOVIA, a/k/a “Sixx,” JAVONTA DOLEMAN, a/k/a “Dutt,” are charged in Counts 4 and 6 with a violation of 18 U.S.C. § 1959(a)(1) (Murder in Aid of Racketeering) for the murders of Wynston Jackson and Lawrence Williams, IV, for which they face a sentence of mandatory life imprisonment or death, up to a $250,000 fine, up to five years of supervised release, and a mandatory $100 special assessment fee.
Defendants TERRAN WILLIAMS, a/k/a “Funky,” TYRONE BOVIA, a/k/a “Sixx,” JAVONTA DOLEMAN, a/k/a “Dutt,” are charged in Counts 5 and 7 with a violation of 18 U.S.C. § 924(j) (Causing Death Through the Use of a Firearm) also for the murders of Wynston Jackson and Lawrence Williams, IV, for which they face a mandatory minimum sentence of ten years up to life imprisonment or death, up to a $250,000 fine, up to five years of supervised release, and a mandatory $100 special assessment fee.
No decision concerning the death penalty has been made at this time. As in all possible capital cases, this case will have to be reviewed by the Department of Justice Capital Crimes Unit in Washington D.C. before the Attorney General makes a final decision on this issue.
JAMES ALEXANDER, a/k/a “Poo,” a/k/a “Black,” a/k/a “Freak,” and TYRONE BOVIA, a/k/a “Sixx,” are charged in Count 8 for a violation of 18 U.S.C. § 1959(a)(3) (Assault with a Dangerous Weapon in Aid of Racketeering), which carries a sentence of up to 20 years imprisonment, up to a $250,000 fine, up to three years supervised release, and a mandatory $100 special assessment fee. They are likewise charged in Count 9 for a violation of 18 U.S.C. § 924(c)(1)(A) (Discharge of a Firearm During and in Relation to a Crime of Violence or Drug Trafficking Crime), which carries a mandatory minimum sentence of 10 years imprisonment up to life, up to a $250,000 fine, up to five years supervised release, and a mandatory $100 special assessment fee. This sentence must run consecutive to any other sentence.
Finally, JAMES ALEXANDER, a/k/a “Poo,” a/k/a “Black,” a/k/a “Freak,” is charged in Counts 10 and 11 for a violation of 18 U.S.C. § 1959(a)(3) (Assault with a Dangerous Weapon in Aid of Racketeering) and for a violation of 18 U.S.C. § 924(c)(1)(A) (Discharge of a Firearm During and in Relation to a Crime of Violence or Drug Trafficking Crime), respectively.
U. S. Attorney Evans reiterated that the second superseding indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This second superseding indictment is the culmination of a long federal grand jury investigation that was conducted with the assistance of the Federal Bureau of Investigation, the New Orleans Police Department, the New Orleans District Attorney’s Office, and the United States Attorney’s Office for the Eastern District of Louisiana. The case is being prosecuted out of the Violent Crime Unit by Assistant United States Attorneys David Haller, Inga Petrovich and Liz Privitera.