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Thursday 8 July 2021
St. Thomas Man Sentenced After Marijuana, an AR-15, and Ammunition Found in Car Following an AccidentRead the Press Release
St. Thomas, USVI – U.S. Attorney Gretchen C.F. Shappert announced that a St. Thomas man was sentenced today to four years’ probation, a $1,000 fine, and 150 hours of community service for possession with intent to distribute marijuana.
According to court documents, Kahlid Blyden, 27, was involved in a car accident on August 21, 2020 in front of Rosa’s Place Bar and Restaurant. A Virgin Islands Police Department (VIPD) responding officer arrived to see one car. The responding officer smelled a strong odor of marijuana coming from the badly damaged car. Blyden, the only person in the vicinity, was standing by the open driver’s side door of the wrecked vehicle.
The officer observed a backpack covering the gas and brake pedals. When asked why a backpack was covering the operating pedals Blyden responded, “I don’t know what you are talking about.” Officers proceeded to search the car. The backpack contained a large plastic bag of nearly one pound of marijuana. In the rear passenger floorboard behind the driver’s seat, officers located an AR-15 firearm and a box of ammunition. Blyden attempted to flee while being placed under arrest but was detained after a brief chase.
The Virgin Islands Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case.
The United States Attorney’s Office of the Virgin Islands prosecuted the case.
St. Louis man pleads guilty and is sentenced for being a felon in possession of a firearmRead the Press Release
ST. LOUIS – United States District Court Judge Stephen N. Limbaugh, Jr. accepted a plea of guilty from Edward Wingo, Jr., on today’s date, for the crime of being a felon in possession of a firearm. Immediately after the guilty plea, Wingo, a 46-year-old St. Louis resident, was sentenced to a 37-month term of imprisonment.
On August 19, 2019, a St. Louis County police officer drove by a residence in the 4300 block of Melba. The officer spotted Wingo in a parked truck in the driveway of the residence. The officer was aware that Wingo was wanted for an unrelated criminal incident. The officer requested the assistance of the St. Louis County Police Department’s Special Response Unit’s fugitive apprehension team. Wingo was arrested for the unrelated criminal incident. As a result of the arrest, officers seized a .380 caliber, semi-automatic pistol located inside Wingo’s truck.
Prior to August 19, 2019, Wingo was convicted of one or more crimes punishable by a term of imprisonment exceeding one year under the laws of the State of Illinois.
The St. Louis County Police Department investigated the above firearm case. Assistant United States Attorney Jillian Anderson is handling this matter.
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St. Jude Medical Agrees to Pay $27 Million for Allegedly Selling Defective Heart DevicesRead the Press Release
Baltimore, Maryland – St. Jude Medical, Inc. (St. Jude) has agreed to pay $27 million to settle allegations under the False Claims Act that, between November 2014 and October 2016, it knowingly sold defective heart devices to health care facilities that, in turn, implanted the devices into patients insured by federal healthcare programs. St. Jude was acquired by Abbott Laboratories in January 2017.
The settlement agreement was announced today by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division; Special Agent in Charge Maureen Dixon of the Department of Health and Human Services, Office of Inspector General (HHS OIG); Special Agent in Charge Mark S. McCormack of the Food and Drug Administration (FDA) Office of Criminal Investigations Metro Washington Field Division; Special Agent in Charge Christopher Dillard, of the Defense Criminal Investigative Services (DCIS), Mid-Atlantic Field Office; Norbert E. Vint, Deputy Inspector General Performing the Duties of the Inspector General, OPM OIG.
“Medical device manufacturers have an obligation to be truthful with the Food and Drug Administration, and the U.S. government will not pay for devices that are unsafe and risk injury or death,” said Acting United States Attorney Jonathan F. Lenzner. “The government contends that St. Jude knowingly caused the submission of false claims and failed to inform the FDA with critical information about prior injuries and a death which, had the FDA been made aware, would have led to a recall. The U.S. Attorney’s Office is committed to protecting Medicare and other federal health care programs from fraud, and in doing so strengthen patient safety,” said Lenzner.
“To ensure the health and safety of patients, manufacturers of implantable cardiac devices must be transparent when communicating with the government about safety issues and incidents,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “We will hold accountable those companies whose conduct violates the law and puts patients’ health at risk.”
The government alleges that St. Jude failed to disclose serious adverse health events in connection with the premature depletion of the battery in certain models of its Fortify, Fortify Assura, Quadra, and Unify devices, which are implantable defibrillators used in patients at risk of cardiac arrest due to an irregular heartbeat. The devices are surgically implanted into patients’ chests, and when the devices detect an irregular heartbeat, they send an electrical pulse to the heart to “shock” it back to its normal rhythm. The government alleged that, by 2013, St. Jude knew that lithium clusters formed on the batteries of the devices, causing some of the batteries to short and, in turn, suffer a premature power drain.
The government alleges that, in late 2014, St. Jude submitted a request to the Food and Drug Administration (FDA) to approve a change to prevent lithium clusters from draining the battery, and told the FDA, “no serious injury, permanent harm or deaths have been reported associated with this” issue. However, according to the government’s allegations, St. Jude was aware at that time of two reported serious injuries and one death associated with premature battery depletion (PBD) induced by lithium clusters.
St. Jude continued to distribute devices that had been manufactured without the new design. In August 2016, St. Jude contacted the FDA and informed it that the number of PBD events had increased to 729, including two deaths and 29 events associated with loss of pacing. On October 10, 2016, St. Jude issued a medical advisory regarding the PBD caused by lithium cluster shorts, which FDA classified as a Class I recall. A Class I recall is where there is a reasonable probability that “violative” products “will cause serious adverse health consequences, including death.” After the recall, St. Jude no longer sold the older devices, but thousands of them had been implanted into patients between November 20, 2014 and October 10, 2016.
“Ensuring patient safety is our number one priority,” said Maureen R. Dixon, Special Agent in Charge for the Office of the Inspector General, U.S. Department of Health and Human Services. “HHS-OIG will continue to work with our law enforcement partners to investigate and hold accountable medical companies who put profits over people and ensure the integrity of the Medicare and Medicaid programs.”
“The FDA regulates medical devices to assure that patient health is protected. Reporting information untruthfully to the agency about the safety of medical devices jeopardizes patients’ health and safety,” said Special Agent in Charge Mark S. McCormack, FDA Office of Criminal Investigations Metro Washington Field Office. “We will continue to investigate and bring to justice those who place the public health at risk.”
“The Defense Criminal Investigative Service (DCIS) and its law enforcement partners will aggressively investigate corruption that puts the health of our military members and their families at risk,” said Special Agent in Charge Christopher W. Dillard, DCIS Mid-Atlantic Field Office. “We hope this settlement sends a clear warning to medical corporations that choose profit over patient care.”
“The OPM OIG prioritizes the health and safety of patients above all else,” said Norbert E. Vint, Deputy Inspector General Performing the Duties of the Inspector General, OPM OIG. “We are grateful for today’s settlement and applaud the hard work of our Department of Justice and law enforcement partners.”
The civil settlement resolves a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and obtain a portion of the government's recovery. The civil lawsuit was filed in the District of Maryland and is captioned United States ex rel. Burke v. St. Jude Medical, Inc., No. 16-cv-3611 (D. Md.).
The claims resolved by this settlement are allegations only, and there has been no determination of liability.
Acting U.S. Attorney Jonathan F. Lenzner commended the HHS Office of Inspector General, the FDA Office of Criminal Investigations, DCIS, and OPM OIG for their work in the investigation. The case was handled by Assistant United States Attorneys Thomas Corcoran and Jane Andersen and Trial Attorney Jonathan Gold of the Department of Justice Civil Fraud Section.
For more information about the Maryland U.S. Attorney’s Office, its programs and priorities, please visit https://www.justice.gov/usao-md.
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St. Jude Agrees to Pay $27 Million for Allegedly Selling Defective Heart DevicesRead the Press Release
St. Jude Medical Inc. (St. Jude) has agreed to pay $27 million to settle allegations under the False Claims Act that, between November 2014 and October 2016, it knowingly sold defective heart devices to health care facilities that, in turn, implanted the devices into patients insured by federal health care programs. St. Jude was acquired by Abbott Laboratories in January 2017.
“To ensure the health and safety of patients, manufacturers of implantable cardiac devices must be transparent when communicating with the government about safety issues and incidents,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “We will hold accountable those companies whose conduct violates the law and puts patients’ health at risk.”
“Medical device manufacturers have an obligation to be truthful with the Food and Drug Administration (FDA), and the U.S. government will not pay for devices that are unsafe and risk injury or death,” said Acting U.S. Attorney Jonathan F. Lenzner for the District of Maryland. “The government contends that St. Jude knowingly caused the submission of false claims and failed to inform the FDA with critical information about prior injuries and a death which, had the FDA been made aware, would have led to a recall. The U.S. Attorney’s Office is committed to protecting Medicare and other federal health care programs from fraud, and in doing so strengthen patient safety.”
The government alleges that St. Jude failed to disclose serious adverse health events in connection with the premature depletion of the battery in certain models of its Fortify, Fortify Assura, Quadra and Unify devices, which are implantable defibrillators used in patients at risk of cardiac arrest due to an irregular heartbeat. The devices are surgically implanted into patients’ chests, and when the devices detect an irregular heartbeat, they send an electrical pulse to the heart to “shock” it back to its normal rhythm. The government alleged that, by 2013, St. Jude knew that lithium clusters formed on the batteries of the devices, causing some of the batteries to short and, in turn, suffer a premature power drain.
The government alleges that, in late 2014, St. Jude submitted a request to the FDA to approve a change to prevent lithium clusters from draining the battery and told the FDA, “no serious injury, permanent harm or deaths have been reported associated with this” issue. However, according to the government’s allegations, St. Jude was aware at that time of two reported serious injuries and one death associated with premature battery depletion (PBD) induced by lithium clusters.
St. Jude continued to distribute devices that had been manufactured without the new design. In August 2016, St. Jude contacted the FDA and informed it that the number of PBD events had increased to 729, including two deaths and 29 events associated with loss of pacing. On Oct. 10, 2016, St. Jude issued a medical advisory regarding the PBD caused by lithium cluster shorts, which FDA classified as a Class I recall. A Class I recall is where there is a reasonable probability that “violative” products “will cause serious adverse health consequences, including death.” After the recall, St. Jude no longer sold the older devices, but thousands of them had been implanted into patients between Nov. 20, 2014, and Oct. 10, 2016.
“Ensuring patient safety is our number one priority,” said Special Agent in Charge Maureen R. Dixon of the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG). “HHS-OIG will continue to work with our law enforcement partners to investigate and hold accountable medical companies who put profits over people and ensure the integrity of the Medicare and Medicaid programs.”
“The FDA regulates medical devices to assure that patient health is protected,” said Special Agent in Charge Mark S. McCormack of the FDA Office of Criminal Investigations, Metro Washington Field Office. “Reporting information untruthfully to the agency about the safety of medical devices jeopardizes patients’ health and safety. We will continue to investigate and bring to justice those who place the public health at risk.”
“The Defense Criminal Investigative Service (DCIS) and its law enforcement partners will aggressively investigate fraud that puts the health of our military members and their families at risk,” said Special Agent in Charge Christopher W. Dillard of the DCIS Mid-Atlantic Field Office. “We hope this settlement sends a clear warning to medical corporations that choose profit over patient care.”
“The OPM OIG prioritizes the health and safety of patients above all else,” said Norbert E. Vint, Deputy Inspector General Performing the Duties of the Inspector General of the Office of Personnel Management’s Office of Inspector General (OPM-OIG). “We are grateful for today’s settlement and applaud the hard work of our Department of Justice and law enforcement partners.”
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Debbie Burke, a patient who received one of the devices that was subject to recall. The qui tam case is captioned United States ex rel. Debbie Burke v. St. Jude Medical, Inc., No. 16-cv-3611 (D. Md.).
The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section; the U.S. Attorney’s Office for the District of Maryland; the Department of Health and Human Services’ Office of Inspector General and Office of General Counsel; DCIS; OPM-OIG; and the FDA’s Office of Criminal Investigations and Office of Chief Counsel.
This matter was handled by Trial Attorney Jonathan Gold of the Civil Division and Assistant U.S. Attorneys Thomas Corcoran and Jane Andersen of the District of Maryland.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
St. Croix Man Pleads Guilty to Transporting a Minor with the Intent to Engage in Prostitution and Sexual ActivityRead the Press Release
St. Croix, USVI – U.S. Attorney Gretchen C.F. Shappert announced today that a St. Croix man, Zayvon Acoy, age 31, appeared before Magistrate Judge George W. Cannon, Jr., in District Court, and pleaded guilty on July 7, 2021 to one count of transporting a minor with the intent to engage in prostitution and sexual activity.
According to court documents, between May and July of 2017, the defendant, Zayvon Acoy, conspired with his co-defendant to transport Acoy’s minor-aged girlfriend (age 17) by vehicle from an area around Peter’s Rest in St. Croix to the co-defendant’s residence in an area of Beeston Hill in St. Croix, for the purpose of the co-defendant engaging the minor in unlawful sexual activity, specifically commercial sex. The minor entered the co-defendant’s residence and the co-defendant had sexual intercourse with the minor. After engaging the minor in unlawful sexual activity, the co-defendant gave Acoy cash in exchange for the co-defendant’s engagement with the minor.
Acoy is scheduled to be sentenced on November 5, 2021 and faces a mandatory minimum of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Virgin Islands Police Department and Homeland Security Investigations investigated the case.
Assistant U.S. Attorney Everard E. Potter is prosecuting the case.
This case is part of the Department of Justice’s Project Safe Childhood Initiative. Project Safe Childhood is a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information on the Department of Justice’s Project Safe Childhood, please see: https://www.justice.gov/psc.
Southwest Washington registered sex offender sentenced to 20+ years in prison for producing images of child rape and abuseRead the Press Release
Tacoma - A registered sex offender from Skamania County was sentenced today in U.S. District Court in Tacoma to 251 months in prison for production of child pornography, announced Acting U.S. Attorney Tessa M. Gorman. Steven Lee McBride, 51, pleaded guilty in August 2020. At the sentencing hearing U.S. District Judge Benjamin H. Settle said “It is not hyperbole to say what happened to this victim is a life sentence. These traumas follow the victim their whole life long.”
“Congress has appropriately mandated some of the lengthiest sentences for those who abuse our vulnerable children,” said Acting U.S. Attorney Gorman. “In this case the defendant, with prior child sex crime convictions, used stealth, deception and ultimately threats to harm and kill loved ones, to force a young child to do his sick bidding. This lengthy sentence is fully appropriate.”
According to records filed in the case, in 2007, McBride was convicted in Idaho of molesting two children under the age of 16 and was required to register as a sex offender following a state prison term of up to 15-years. Upon release from prison, McBride moved to a residence in Skamania County. There he moved next door to a distant relative and befriended that neighbor’s child. Between September 2017 and May 2019, McBride made sexually explicit images of the child by hiding a camera in the bathroom, molesting the child while the child slept and ultimately by posing as a school friend of the child online to demand the child send sexually explicit images. McBride threatened to kill the child’s family if the child did not continue to provide the photos.
Law enforcement learned of the production of child pornography when investigators in Queensland, Australia became aware of McBride providing sexually explicit images online in their jurisdiction. An undercover officer contacted McBride and got additional information about the identity of the victim from McBride. The Vancouver Police Department and Homeland Security Investigations moved quickly to alert the victim’s parent and arrest McBride on June 7, 2019.
Assistant United States Attorney Angelica Williams noted in her statements to the court that McBride was a serial child predator. “His conduct was intentional, malicious, and calculated… He bragged about the abuse.”
Judge Settle said that protecting the community was the top priority in this case. He ordered McBride to be on lifetime supervised release following his prison term.
McBride was sentenced to 75 months in prison in Skamania County Superior Court for the hands-on molestation. Under the terms of the plea agreement his state and federal sentences will run concurrently.
The case was investigated by Homeland Security Investigations with assistance from the Vancouver Police Department and the Queensland Australia Police.
The case is being prosecuted by Assistant United States Attorney Angelica Williams.
Smuggling 119 aliens in trailer lands Houston man in prisonRead the Press Release
LAREDO, Texas – A 32-year-old Houstonian has been ordered to federal prison for conspiracy to transport illegal aliens, announced Acting U.S. Attorney Jennifer B. Lowery.
Brodrick Keith Rhodes pleaded guilty April 7.
Today, U.S. District Judge Drew B. Tipton ordered him to serve a 50-month sentence to be immediately followed by three years of supervised release. In handing down the sentence, Judge Tipton noted that Rhodes had transported an exceptionally high number of aliens in his trailer.
On Jan. 12, Rhodes arrived at the Freer Border Patrol checkpoint driving a semi-truck and refrigerated trailer. He claimed he was hauling lettuce, but authorities noticed discrepancies with his bill of lading. They also noted he appeared nervous and that the trailer was set to 30 degrees but with an internal temperature of 68.
At secondary inspection, law enforcement ultimately found 119 aliens in the trailer’s cargo area.
Rhodes claimed he worked for a business in La Porte, but the bill of lading indicated he was transporting lettuce from a Laredo produce company to a location in Sugar Land. The business indicated Rhodes had never been employed with them nor do they even transport outside the Houston area. The other two companies confirmed they had no record of the shipment.
The aliens told authorities they had been taken to a truck and told to get in the trailer. It soon departed and did not stop until it reached the checkpoint.
Rhodes was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations conducted the investigation with the assistance of Border Patrol. Assistant U.S. Attorney Paul A. Harrison prosecuted the case.
Sixteen charged with gun crimes in third round of Cincinnati gun violence reduction initiativeRead the Press Release
CINCINNATI – Sixteen people living in Cincinnati have been arrested and charged with federal gun crimes in the third wave of federal cases filed as part of Cincinnati’s initiative to reduce gun violence.
Fifteen are convicted felons. They are all charged with illegal possession of a firearm by a convicted felon, a crime punishable by up to ten years in federal prison.
The defendants include one man, Carl Godfrey, who is now also facing state charges as part of a murder-for-hire plot. Another defendant, Kendall Black, led police on a six-mile chase last October that ended in a crash. Other defendants have been connected to incidents of shots fired and dealing illegal drugs including fentanyl, heroin and cocaine. The Gun Crimes Task Force, which includes the Cincinnati Police and ATF, recovered stolen weapons and stolen CPD body armor during this third wave.
One defendant, Darius Hillman-Carter is charged with possession with intent to distribute cocaine, a crime punishable by up to 20 years in prison, and possession of a firearm in furtherance of a crime, punishable by a minimum of five years in federal prison.
Acting U.S. Attorney Vipal J. Patel, ATF Special Agent in Charge Roland Herndon, Cincinnati Police Chief Eliot K. Isaac and Hamilton County Sheriff Charmaine McGuffey announced the cases today. In late September, the officials announced gun-related charges filed against 16 other individuals in Cincinnati. Charges against twenty more were announced in November.
The aim of the initiative is to identify repeat and dangerous offenders for federal prosecution.
“We are committed to getting guns out of the hands of people who have already been convicted of violent crimes and are prohibited under federal law from owning, possessing or controlling firearms,” said Acting U.S. Attorney Vipal J. Patel. “Enforcement is not the only answer to reducing violent crime facing our communities, but without enforcement, there is no answer.”
“ATF’s core mission is to investigate criminal cases against individuals who illegally possess and use firearms in furtherance of their criminal activities,” stated ATF Special Agent in Charge Roland H. Herndon, Jr. “We will continue to work with our partners in the greater Cincinnati area to ensure that persons who foster violence in our communities are dealt with accordingly.”
Those charged include:
Name
Age
BLACK, Kendall
30
BRYANT, Daniel
36
COACH, Nygel
31
COLVIN, Mashi
26
EVANS, Sa-Thon
40
FERGUSON, Marvin
39
GODFREY, Carl
21
HILLMAN-CARTER, Darious
22
HUBBARD, Brandon
31
JACKSON, Michael
37
LIGON, Leonard
32
MALONE, Dallis
37
MOYE, Matthew
48
RILEY, Carlito
23
RILEY, Kiontay
24
STUCKEY, Timothy
31
Patel also acknowledged the participation of the Ohio Adult Parole Authority, The Ohio State Highway Patrol and Hamilton County Prosecutor Joseph T. Deters for sharing their expertise and information in building federal cases against the defendants.
Indictments and criminal complaints merely contain allegations, and defendants are presumed innocent unless proven guilty in a court of law.
Assistant U.S. Attorneys Ashley Brucato, Julie Garcia, Timothy Oakley, Anthony Springer, Ebunoluwa Taiwo and Special Assistant U.S. Attorneys Jacqueline Stachowiak with the Hamilton County Prosecutor’s Office and Zach Kessler with the Cincinnati Law Department are representing the United States in the cases.
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Six Defendants Facing Federal Charges as Part of Intensified Focus on Gun CrimesRead the Press Release
ALBANY, NEW YORK – Acting United States Attorney Antoinette T. Bacon announced today that the following defendants have been indicted or arrested within the last month for illegally possessing firearms and ammunition in the Capital Region:
- Thomas Hendricks, age 39, of Schenectady, New York, was arrested on a federal complaint charging him with unlawfully possessing a firearm as a felon. The case is being investigated by the Schenectady Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), and prosecuted by Assistant United States Attorney Emmet O’Hanlon.
- Duquan Mcleod, age 31, of Rockingham, North Carolina, was indicted for unlawfully possessing a firearm as a felon. The case is being investigated by the Schenectady Police Department and ATF, and prosecuted by Assistant United States Attorney Emmet O’Hanlon.
- Justin Micheli, age 33, of Schodack, New York, was indicted for possessing a firearm in furtherance of a drug trafficking crime, possessing a firearm as a felon, and possessing and intending to distribute 500 grams or more of cocaine. The case is being investigated by the Drug Enforcement Administration (DEA), and prosecuted by Assistant United States Attorneys Ashlyn Miranda and Alexander Wentworth-Ping.
- Leonard Samuels, age 38 of Schenectady, was indicted for unlawfully possessing a firearm as a felon. The case is being investigated by the Federal Bureau of Investigation (FBI) and prosecuted by Assistant United States Attorney Emmet O’Hanlon.
- Frankie Rios, age 40, of Troy, New York, was indicted for unlawfully possessing a firearm as a felon, and possessing and intending to distribute cocaine and 28 grams or more of cocaine base. The case is being investigated by the ATF and Troy Police Department, and prosecuted by Assistant United States Attorney Rachel Williams.
- Mikal Smith, age 27, of Albany, was indicted for unlawfully possessing 20 rounds of ammunition as a felon, and possessing and intending to distribute cocaine. The case is being investigated by the DEA and Albany Police Department, and prosecuted by Assistant United States Attorney Rachel Williams.
These are separate cases brought as part of a larger effort to direct greater resources to prosecuting gun crimes in cities across the Northern District of New York. The charges are merely accusations. The defendants are presumed innocent unless and until proven guilty.
Citizen tips can help get illegal and unlawfully possessed guns off the streets, and can be provided as follows:
- Capital Region Crime Stoppers – tips can be made anonymously by visiting http://www.capitalregioncrimestoppers.com.
- Syracuse Police Department – tips can be made anonymously via the tip411 web site, or by calling (315) 442-5111.
Serial Cell Phone Store Robber Sentenced to 45 Years in Federal PrisonRead the Press Release
A Long Beach, California man was sentenced today to 45 years in federal prison after being convicted at trial of committing a spree of violent cell phone store robberies, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
A federal jury found Edward Eugene Robinson, 50, guilty of one count of conspiracy to interfere with commerce by robbery, two counts of interfering with commerce by robbery, and two counts of brandishing a firearm during a crime of violence in March.
According to evidence presented at trial — which included eyewitness testimony, store surveillance videos, and evidence obtained from search warrants — Mr. Robinson was the leader of a robbery crew that committed at least 15 armed robberies of cell phone stores across North Texas and Southern California in the spring and summer of 2019.
During the robberies, Mr. Robinson and his accomplices threatened store employees with guns and tazers and demanded that they open the safes where the phones and other equipment were stored. The robbers then restrained the employees using zip-ties or cell phone chargers.
Over the course of the conspiracy, Mr. Robinson stole more than $600,000 of inventory, including cell phones, tablets, and watches.
The other defendants in the case — Aaron Hardrick and Ncholeion Hollie, both of Fort Worth, Texas — previously pleaded guilty. Mr. Hardrick pleaded guilty in 2019 to multiple federal robbery and firearms charges in North Texas and Southern California. He was sentenced to 45 years in federal prison. Ms. Hollie pleaded guilty in 2020 to one federal robbery charge in North Texas and was sentenced to 9 years in federal prison.
The Federal Bureau of Investigation’s Dallas Field Office, Fort Worth Police Department, Hurst Police Department, and Bedford Police Department conducted the investigation. Assistant U.S. Attorney Matthew Weybrecht and Nancy Larson of the Northern District of Texas prosecuted the case, with substantial assistance from Assistant U.S. Attorneys Jerry C. Yang and Peter H. Dahlquist of the Central District of California.
Scranton Man Convicted for Production of Child Pornography and Attempted Witness IntimidationRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that John Lewis Kramer, age 36, of Scranton, Pennsylvania, was convicted on July 7, 2021, by United States District Court Judge Malachy E. Mannion for production of child pornography and attempted witness tampering.
According to Acting United States Attorney Bruce D. Brandler, during the two-day bench trial, the Government presented evidence that Kramer produced images and videos of child pornography between March 1, 2019 and March 27, 2020. Also, on January 22, 2021, Kramer sent a letter to the victim’s mother threatening to have her arrested and put in jail.
The case was investigated by the Federal Bureau of Investigation (FBI) and the Scranton Police Department. Assistant U.S. Attorney Jenny P. Roberts and Special Assistant United States Attorney Brian Gallagher are prosecuting the case.
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.
Kramer faces a mandatory minimum 15-year sentence. And the maximum penalty under federal law for this offense is 30 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.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
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Rocky Mount Man Sentenced to 87 Months for Role in Drive-By ShootingRead the Press Release
WILMINGTON, N.C. – A Rocky Mount man was sentenced to 87 months in prison for possessing multiple firearms despite being a previously convicted felon. Keyonte Da’quan Smith, also known as “Smiley,” entered his guilty plea on March 3, 2021.
According to court documents and other information presented in court, Smith, 27, of Rocky Mount, and another unidentified subject, were observed operating a sedan and shooting multiple rounds of ammunition into another vehicle while in traffic. The victim’s vehicle side door, front panel, and windshield sustained damage from the gunfire, but the victim survived. Officers located at least eight .45 caliber shell casings from the crime scene. Police tracked Smith to a nearby apartment, where he was found with 2 ski masks, two loaded .45 caliber handguns, including one that had been reported stolen, a loaded .40 caliber handgun, a large-capacity magazine, and multiple rounds of ammunition.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Richard E. Myers II. The Rocky Mount Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case and Assistant U.S. Attorney Aakash Singh 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. 5:20-CR-458-M.
Portland Man Sentenced to 19 Years in Federal Prison After Second Armed Career Criminal Act ConvictionRead the Press Release
PORTLAND, Ore.—After serving more than 15 years in federal prison for his first conviction under the Armed Career Criminal Act, a Portland man is headed back to federal prison for new drug and firearm offenses committed while on post-prison supervision.
Kelly David Ankeny, Sr., 61, was sentenced to 230 months in federal prison.
According to court documents, in October 2003, after being released from state prison, Ankeny took up residence in a house occupied by his 18-year-old son and his son’s roommates. At the time, Ankeny had prior convictions for second degree robbery, felon in possession of a firearm, and drug trafficking. Before long, Ankeny took over his son’s house, started selling methamphetamine, and obtained several firearms.
Ankeny’s ex-wife and the mother of his 18-year-old son tried to intervene and get Ankeny to leave the home. In response, Ankeny twice threatened her with a firearm. The ex-wife reported Ankeny’s conduct to the Portland Police Bureau who, after obtaining a federal search warrant, entered the home on November 20, 2003. Officers found Ankeny sitting in a recliner near the front door. Ankeny had one loaded handgun tucked beside the cushion of his recliner and a second sitting on an adjacent chair. Three other firearms were found in the house, including a sawed off shotgun and rifle.
On January 13, 2004, Ankeny was indicted by a federal grand jury in Portland for being a felon in possession of a firearm and illegally possessing an unregistered sawed off shotgun. On February 15, 2005, he pleaded guilty to both charges. After serving more than 15 years in federal prison, Ankeny began his term of supervised release on August 14, 2018. Less than one year after being released from prison, Ankeny admitted to using methamphetamine.
On June 25, 2019, several U.S. Probation officers conducted a home visit to Ankeny’s Gresham, Oregon residence. A safe in Ankeny’s room was found to contain more than four pounds of methamphetamine, a pound of heroin, and drug packaging material. During the search, Ankeny became enraged, hit a wall and yelled at the officers. Believing there was excessive danger in arresting Ankeny on the spot, the officers ordered Ankeny to report to the U.S. Probation office later that afternoon. Ankeny failed to appear and cut off his GPS monitoring bracelet.
U.S. Probation sought the assistance of the U.S. Marshals Service and Multnomah County Sheriff’s Office Special Investigations Unit who, over the next two months, attempted to locate and arrest Ankeny. On August 20, 2019, officers identified Ankeny driving a vehicle in east Multnomah County. They waited for Ankeny to enter a residence and developed a tactical plan to arrest him when he returned to this vehicle.
Later that day, Ankeny left the residence and got into his car. A deputy U.S. Marshal used his vehicle to block Ankeny’s car and Ankeny was ordered out at gunpoint. After he failed to comply with the orders, officers broke Ankeny’s driver side window, cut his seat belt, and removed him from the vehicle. A loaded 9mm firearm was found in a backpack, which was on Ankeny’s front passenger seat. Two additional handguns, ammunition, $16,000 in cash, and quantities of methamphetamine and cocaine were located elsewhere in the vehicle.
On September 26, 2019, a federal grand jury in Portland returned an eight-count indictment charging Ankeny with possessing with intent to distribute methamphetamine, heroin, and cocaine; possessing a firearm in furtherance of a drug trafficking crime; and illegally possessing firearms as a convicted felon.
On December 17, 2020, Ankeny pleaded guilty to possessing with intent to distribute methamphetamine and illegally possessing a firearm as a convicted felon.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the U.S. Marshals Service, Multnomah County Sheriff’s Office, and Oregon State Police Forensic Services Division. It was prosecuted by Thomas H. Edmonds, Assistant U.S. Attorney for the District of Oregon.
Pittsburgh Drug Felon Gets 10 Years for Dealing CocaineRead the Press Release
PITTSBURGH – On Thursday, July 8, 2021, Raymond Erfort was sentenced to 120 months in prison for possessing 497 grams of cocaine with intent to distribute, Acting United States Attorney Stephen R. Kaufman announced today.
Erfort, age 45 of Pittsburgh, was sentenced by United States District Judge Reggie B. Walton. Judge Walton ordered that Erfort serve six years of supervised release following his prison sentence. Erfort had prior drug trafficking convictions from three state prosecutions between 2001 and 2009 and served prior state prison sentences of 2-6 years, 3-10 years, and 5-10 years.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
The Pennsylvania Attorney General’s Office, the Brentwood Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives conducted the investigation leading to the conviction and sentence in this case.
Owner of Trucking Companies Arrested on Charges Alleging Scheme to Fraudulently Obtain More Than $600,000 in COVID-Relief LoansRead the Press Release
SANTA ANA, California – The owner of trucking companies in the Inland Empire and elsewhere in California, who was out on bond awaiting trial in a separate federal criminal case, was arrested today on a criminal complaint alleging he fraudulently obtained more than $667,000 in Paycheck Protection Program (PPP) COVID-19 pandemic relief funds.
Carl Bradley Johansson, 62, of Newport Beach, was arrested this morning and is charged with one count of bank fraud and one count of conspiracy to commit bank fraud. He is expected to make his initial court appearance this afternoon in United States District Court in Santa Ana.
Johansson was on pretrial release in a separate case that remains scheduled to go on trial on September 14. In that matter, Johansson is alleged to have schemed to defeat federal transportation laws by ordering the illegal repair of an oil tanker that resulted in a fatal explosion in 2014, and to have unlawfully avoided the payment of at least $298,562 in federal income taxes from 2012 to 2017.
According to an affidavit filed with the complaint unsealed today, in April 2020, under Johansson’s direction, the Ontario-based trucking company Western Distribution LLC applied for a PPP loan in the amount of $436,390. Johansson’s son was listed as the company’s owner on the loan application and the loan application was approved.
Under Johansson’s direction, Western Distribution LLC immediately spent its PPP funds in May and June 2020, in large part on expenses unrelated to its payroll. Rather than use the funds to keep the company’s employees on staff, Johansson laid off most of the company’s employees, but rehired many of them in late 2020.
Also in April 2020, a different Johansson-controlled trucking company – a Merced County-based business identified in the affidavit as “Company A” – applied to another federally insured bank for its own PPP loan in the amount of $286,505, according to the affidavit. Johansson’s 85-year-old mother was listed as Company A’s owner on its PPP loan application, which was approved in the amount of $286,500.
To create the impression that Western Distribution LLC had spent more of its PPP loan on its payroll than it actually did, in September 2020 Johansson moved 21 of Company A’s employees onto Western Distribution LLC’s payroll, even though those employees never worked for Western Distribution, LLC, the affidavit alleges. This allegedly occurred just before the company’s 24-week window for spending its PPP funds closed.
As a result of this ruse, Western Distribution LLC could falsely claim on its PPP loan forgiveness application in January 2021 that the company had met the requisite threshold of spending at least 60 percent of its PPP loan on payroll, according to the affidavit.
In March 2021, Johansson allegedly caused Western Distribution LLC to repeat the same fraudulent representations concerning its employee lists and payroll numbers when the company submitted a second PPP loan application, this time for $231,527. The second loan application was approved.
The total loss alleged in this case is approximately $667,917.
A complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If convicted of both charges, Johansson would face a statutory maximum sentence of 70 years in federal prison.
IRS Criminal Investigation and the Department of Transportation – Office of Inspector General investigated this matter.
Assistant United States Attorneys Joseph O. Johns and Matthew W. O’Brien of the Environmental and Community Safety Crimes Section are prosecuting this case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Omaha Man Sentenced for Cocaine and Firearm ChargesRead the Press Release
Acting United States Attorney Jan Sharp announced that Lashannon Bland, 41, of Omaha, Nebraska, was sentenced today in federal court in Omaha for possessing with the intent to distribute cocaine and the possession of a firearm in furtherance of drug trafficking. United States District Judge Brian C. Buescher sentenced Bland to 78 months in the Bureau of Prisons. Bland will begin a five-year term of supervised release following his release from prison. There is no parole in the federal system.
On January 17, 2020, officers received a Crime Stoppers tip that Bland had guns and drugs at his Omaha residence which also had children present. A baggie which tested positive for cocaine residue was identified during a trash pull. As a result, a state search warrant was issued in February 2020 for the residence. During the search, officers located a padlocked bedroom. A search of the bedroom revealed 2 handguns (a Phoenix Arms .25 caliber handgun and a Hi Point GHP .45 caliber handgun), 2 clear bags containing 7.94 grams and 4.22 grams of cocaine, 18 grams of marijuana, 2 digital scales, as well as several venue items for Bland. Bland gave a statement admitting to possessing the firearms and narcotics as well as selling narcotics.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted this case with support from the following Project Guardian partner, the Omaha Police Department.
Odessa Businessman Sentenced to Federal Prison for Defrauding Family and Friends out of $18 MillionRead the Press Release
In Midland today, a federal judge sentenced 45-year-old James Clinton Fletcher, owner of now-defunct San Jan, LLC, to 15 years of imprisonment for defrauding investors out of more than $18 million through various fraudulent schemes.
In addition to the prison term, U.S. District Judge David Counts ordered that Fletcher pay $18,279,111 in restitution to his victims and $1,177,231 in restitution to the IRS. Judge Counts also ordered that Fletcher be placed on supervised release for a period of three years after his prison term.
On December 22, 2020, Fletcher pleaded guilty to one count of conspiracy to commit wire fraud and one count of willful failure to pay employee tax withholdings to the IRS following a multi-year extensive investigation by IRS Criminal Investigation and the FBI into Fletcher’s fraudulent schemes.
Fletcher admitted that from March 2015 to January 2018, he schemed to defraud more than two dozen family members, friends and business associates out of more than $18 million. Fletcher used those fraudulently obtained funds to purchase a home in Odessa valued at over $1 million; a vacation home in an upscale central Texas resort location; and expensive vehicles to include a Range Rover, Mercedes-Benz and a GMC Yukon Denali. Fletcher also gambled extensively and took frequent trips to Las Vegas using a private plane. He went on extravagant hunting trips using fraudulently obtained funds.
“Fletcher leveraged his relationships with family, friends and acquaintances to steal their hard-earned money and feed his endless greed,” said U.S. Attorney Ashley C. Hoff. “The magnitude of the millions in losses was only rivaled by his increased willingness to betray those who placed their trust in him. Working with our law enforcement partners, the U.S. Attorney’s Office will continue to seek justice for victims of financial fraud.”
Fletcher also admitted that for the third quarter in 2016, he failed to report and turn over to the IRS approximately $378,437.54 in employee withholdings.
“Today’s sentencing of James Clinton Fletcher, CEO of San Jan LLC, for both his conspiracy to commit wire fraud and his willful failure to pay over San Jan LLC’s employee withheld payroll taxes is a strong reminder that no matter your position or financial status, white collar financial and tax crimes are always serious offenses,” said Special Agent in Charge Richard Goss of IRS Criminal Investigation’s Houston Field Office. “And not only does employment tax evasion result in the loss of tax revenue to the U.S. government, it cheats the employees who thought their withheld payroll taxes had been paid over to the IRS for their future Social Security and Medicare benefits. IRS Criminal Investigation will vigorously pursue anyone at any level who commits financial crimes, including employment tax fraud, for their own personal gain.”
“This outcome is a result of the FBI and its partners’ commitment to investigating financial crimes and other criminal acts thoroughly and completely,” said Acting Special Agent in Charge Britton C. Boyd of the FBI’s El Paso Division.
Assistant U.S. Attorneys Shane A. Chriesman, Monica Daniels and Fidel Esparza III prosecuted this case.
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More Federal Charges for Local President of “We Build the Wall”Read the Press Release
PENSACOLA, FLORIDA – Brian G. Kolfage, of Miramar Beach, Florida, has been indicted by a federal grand jury for an additional crime related to the filing of his 2019 income taxes, announced Jason R. Coody, Acting United States Attorney for the Northern District of Florida today. Kolfage, who faces a separate federal indictment out of the Southern District of New York for fraud and money laundering related offenses, now faces two distinct counts of filing a false tax return and one count of wire fraud related to the electronic filing of his tax return in Northern Florida.
The original indictment alleged that between January 2019 and July 2020, Kolfage engaged in a scheme to defraud the government in relation to his 2019 federal income tax returns. The charges alleged that Kolfage received hundreds of thousands of dollars from multiple organizations during 2019, including We Build the Wall, Inc., which were deposited into his personal bank account. Kolfage is alleged to have failed to report this income to the Internal Revenue Service.
The recently filed superseding indictment in the Northern District of Florida alleges a new count of Kolfage filing a false amended tax return in December 2020, a few months after the Southern District of New York indictment became public.
Kolfage will be arraigned on this superseding indictment on July 21, 2021, at 11:00 am, at the United States Courthouse in Pensacola, Florida. If convicted, he faces up to 20 years’ imprisonment.
The charges contained in the superseding indictment are only allegations. A defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the Internal Revenue Service – Criminal Investigation, the Federal Bureau of Investigation, and the Office of Agricultural Law Enforcement of the Florida Department of Agriculture and Consumer Services. The case is being prosecuted by Assistant United States Attorneys David L. Goldberg and Lazaro P. Fields.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Michigan Man Sentenced to Prison for Attacking Black TeenagerRead the Press Release
The Justice Department announced that a Michigan man was sentenced today for willfully causing bodily injury to a Black teenager because of the teenager’s race.
Lee Mouat, 43, pleaded guilty on March 4. He was sentenced to 60 months in prison and three years of supervised release for his hate crime.
According to documents filed in connection with this case, Mouat admitted that he confronted a group of Black teenagers, including the victim, at a state park in Monroe, Michigan. Mouat repeatedly used racial slurs and said that Black people had no right to use the public beach where the incident occurred. Mouat then struck one of the teens in the face with a bike lock, knocking out several of the victim’s teeth, lacerating his face and mouth, and fracturing his jaw. Mouat also attempted to strike another Black teenager with the bike lock.
“The defendant brutally attacked teenagers at a public beach because these young people are Black,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “Hate-fueled violent crimes like this have no place in our communities. Protecting Americans from hate crimes is a top priority of the Justice Department and we will use every tool available to bring perpetrators to justice.”
“Our office is committed to protecting the rights of all citizens, and prosecuting hate crimes is a top priority,” said Acting U.S. Attorney Saima Mohsin for the Eastern District of Michigan. “The cowardly and unprovoked attack on this young victim is terribly disturbing. Every individual citizen has the right to not live in fear of violence or attack based on the color of their skin.”
“Combating hate crimes and protecting individual's civil rights is one of the top priorities of the FBI,” said Special Agent in Charge Timothy Waters of the FBI Detroit Field Office. “Mouat was held accountable for his violent and hateful actions due to the collaborative efforts of the FBI, the Monroe County Sheriff's Office and the Department of Justice. The outcome of this case sends a clear message to our community that law enforcement at every level will investigate crimes motivated by hate and bring the perpetrators to justice.”
This case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Frances Carlson of the Eastern District of Michigan and Trial Attorney Tara Allison of the Civil Rights Division.
For more information and resources on the department’s efforts to combat hate crimes, visit www.justice.gov/hatecrimes.
Michael Avenatti Sentenced to over Two Years in Prison for Attempting to Extort Nike and for Defrauding His ClientRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced that MICHAEL AVENATTI was sentenced today in Manhattan federal court by United States District Judge Paul G. Gardephe to 30 months in prison for attempting to extort NIKE, Inc., and for defrauding a client. AVENATTI was previously found guilty on February 14, 2020, following a three-week jury trial.
Manhattan U.S. Attorney Audrey Strauss said: “Michael Avenatti used illegal and extortionate threats and betrayed one of his clients for the purpose of seeking to obtain millions of dollars for himself. Not only did Avenatti attempt to weaponize his law license and celebrity to seek to extort payments for himself, he also defrauded his own client. Avenatti will now serve substantial time in prison for his criminal conduct.”
According to the Complaint, Superseding Indictment, court documents, and evidence presented at trial:
In a scheme that unfolded in less than a week, AVENATTI used threats of economic and reputational harm to seek to extort NIKE, Inc. (“Nike”), while defrauding his client (“Client-1”), by promising to settle potential claims by Client-1 against Nike if Nike agreed to make extortionate payments to AVENATTI. AVENATTI threatened to hold a press conference on the eve of Nike’s quarterly earnings call and the start of the annual National Collegiate Athletic Association (“NCAA”) basketball tournament at which he would announce allegations of misconduct by employees of Nike. However, AVENATTI stated that he would refrain from holding the press conference and harming Nike only if Nike made a payment of $1.5 million to Client-1, who was in possession of information potentially damaging to Nike, and further agreed to “retain” AVENATTI and another individual to conduct a supposed “internal investigation” – an investigation that neither Nike nor Client-1 requested – for which AVENATTI demanded to be paid, at a minimum, between $15 million and $25 million. Alternatively, in lieu of such a retainer, AVENATTI demanded a total payment of $22.5 million from Nike to resolve any claims Client-1 might have and to buy AVENATTI’s silence.
AVENATTI never told Client-1, among other things, that AVENATTI planned to and did threaten Nike that, unless Nike paid AVENATTI, he would hold the press conference, or that AVENATTI planned to and did seek money for himself separate from, and to the financial detriment of, Client-1.
* * *
In addition to the prison sentence, AVENATTI, 50, of Venice Beach, California, was sentenced to three years of supervised release. The Court deferred a determination as to restitution for a later date.
Ms. Strauss praised the work of the FBI and the Special Agents of the United States Attorney’s Office for the Southern District of New York.
The case is being handled by the Office’s Public Corruption Unit. Assistant United States Attorneys Matthew Podolsky, Daniel C. Richenthal, and Robert B. Sobelman are in charge of the prosecution.
Mexican National pleads guilty to employing and exploiting illegal aliens in the U.S.Read the Press Release
ROME, Ga. – Juan Antonio Perez has pleaded guilty to the offense of harboring illegal aliens for financial gain. Perez illegally encouraged and induced aliens illegally present in the United States to reside in the United States where they worked for him illegally for his own commercial advantage and private financial gain.
“Perez endangered the livelihood of those who follow the laws governing employment, as well as the lives of those who attempt to illegally enter the United States seeking jobs like those he provided,” said Acting U.S. Attorney Kurt R. Erskine. “Perez used illegal workers for his own personal financial gain without regard for the laws of this country.”
“The old saying that crime doesn’t pay couldn’t be truer than in this instance. Perez thought his scheme to exploit desperate people looking for work and a better life would go unnoticed, but he was wrong and will now be held accountable,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “Preventing the exploitation of people and protecting the integrity of the US immigration system are hallmarks of HSI’s mission and I’m proud of the work done in this case.”
According to Acting U.S. Attorney Erskine, the charge, and other information presented in court: Juan Antonio Perez allegedly came to the United States illegally in 1992. He has lived in Bartow County, Georgia and has operated Aztec Framing at least since 2009. Aztec Framing has offices in Cartersville and Rossville, Georgia, and Hixon, Tennessee.
Perez employed illegal aliens at below-market rates, provided no benefits or insurance, and did not pay payroll taxes or Social Security. Perez built a 7,500-square-foot house, bought other houses where he allowed some of his employees to live, and purchased more than 30 sports cars and heavily customized trucks for his own personal collection. Yet, the Georgia Department of Labor has no record of Perez reporting any income. Perez also collected firearms, and agents located 14 firearms when his home was searched on April 30, 2019.
On July 7, 2021, Juan Antonio Perez, age 48, of Rydal, Georgia, pleaded guilty to knowingly encouraging and inducing aliens to come to, enter, and reside in the United States for the purpose of commercial advantage and private financial gain, knowing or in reckless disregard of the fact that such coming to, entry, and residence in the United States was in violation of law. Sentencing for Perez is scheduled for October 5, 2021 at 10:00 a.m.
This case is being investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), and the Bartow-Cartersville Drug Task Force, with assistance from the Federal Bureau of Investigation, U.S. Customs and Border Protection Air and Marine Operations, the Georgia Bureau of Investigation, the Cherokee Multi-Agency Narcotics Squad, and the Polk County Drug Task Force.
Assistant U.S. Attorney Greg Radics is prosecuting the case.
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.
Mexican National Sentenced for $10 Million Marijuana Growing Operation in Daviess CountyRead the Press Release
KANSAS CITY, Mo. – A Mexican national who has been deported seven times after illegally entering the United States was sentenced in federal court today for his role in a Daviess County, Missouri, marijuana-growing operation where law enforcement officers seized nearly $10 million worth of plants.
Sergio Medina-Perez, 47, of El Monte, California, was sentenced by U.S. District Judge Greg Kays to six years in federal prison without parole. This federal sentence must be served consecutively to any sentence imposed as a result of his violation of probation in an unrelated California case. Medina-Perez pleaded guilty in California to being a felon in possession of a firearm, cultivating marijuana and resisting arrest for a marijuana grow operation in Shasta County, Calif. He received a suspended imposition of sentence and was placed on three years’ probation, but indicted eight months later in this federal case.
The court also ordered Medina-Perez to forfeit the Daviess County property to the government.
On Feb. 3, 2021, Medina-Perez pleaded guilty to participating in a conspiracy to manufacture and to possess marijuana plants with the intent to distribute. Medina-Perez also pleaded guilty to illegally reentering the United States after having been deported following a felony conviction.
Law enforcement officers, who had been keeping the marijuana grow site under surveillance, executed a search warrant at the property on Aug. 27, 2018. The plants were in a clearing inside a large area of timber. A distinct path led from a building in the wooded area to the area containing the marijuana plants.
Officers located approximately 2,464 cultivated marijuana plants. With an approximate street value of $1,800 per pound of marijuana, this results in approximately $9,757,440 in marijuana plants seized.
Two days later, on Aug. 29, 2018, Medina-Perez was arrested near the grow site. He told law enforcement that he came to Missouri from California to work as a trimmer at the marijuana grow operation and was paid $100 for every pound of marijuana that he trimmed.
Medina-Perez has been deported from the United States on seven previous occasions. He was convicted in Yakima County, Washington, of possessing cocaine on Sept. 22, 1993, and deported in 1995. He illegally reentered the United States and was deported again on April 3, 1998; Aug. 30, 2002; April 4, 2003; Dec. 17, 2005; July 6, 2006; and July 11, 2006.
Co-defendant Miguel Pulido-Maldonado, also known as “Mona,” 30, ran into the woods to escape custody but was arrested on Aug. 30, 2018; he was covered in mud, his arms had numerous bites from either mosquitos or other insects and it appeared he had been outside for several days. Pulido-Maldonado had previously illegally entered the United States and was removed on Jan. 30, 2017. Pulido-Maldonado was sentenced to three years in federal prison without parole after pleading guilty to his role in the drug-trafficking conspiracy and to illegally reentering the United States.
This case is being prosecuted by Assistant U.S. Attorney Brad K. Kavanaugh. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Northwest Missouri Drug Task Force, the Missouri State Highway Patrol, the Daviess County, Mo., Sheriff’s Department, the Grundy County, Mo., Sheriff’s Department, the Buchanan County, Mo., Sheriff’s Department, the Livingston County, Mo., Sheriff’s Department, the Drug Enforcement Administration and the Department of Homeland Security.
Medical Device Companies to Pay $38.75 Million to Settle False Claims Act AllegationsRead the Press Release
NEWARK, N.J. – Two medical device manufacturers have agreed to pay $38.75 million to resolve allegations that they violated the False Claims Act for billing the Medicare program for defective rapid point-of-care testing devices, Acting U.S. Attorney Rachael A. Honig announced today.
The settlement announced today resolves allegations that from 2008 to 2016 Alere Inc. and Alere San Diego Inc. (collectively, Alere) knowingly sold defective INRatio blood coagulation monitors used by Medicare beneficiaries taking anticoagulant drugs, such as warfarin. For those patients, blood coagulation monitoring is essential to determining a clinically appropriate and safe dosage for their medications. Too much of an anticoagulant drug can cause major bleeding, and too little of the drug can cause blood clots and strokes.
Since at least 2008, Alere allegedly knew that the software algorithm used in each version of its INRatio monitors contained a material defect. Based on its own internal research, as well as external complaints and warnings, Alere allegedly knew that INRatio devices had a “system limitation” that produced inaccurate and unreliable results for some patients. The United States alleged that despite awareness that INRatio systems were linked to over a dozen deaths and hundreds of injuries, including intra-cerebral hemorrhaging and cardiovascular events following bleeding episodes, Alere concealed the defect for years and billed Medicare for the use of defective INRatio devices. Alere allegedly failed to take appropriate corrective actions until 2016, when the devices were removed from the market following a nationwide Class I product recall undertaken at the request of the U.S. Food & Drug Administration (FDA).
“Health care companies have an obligation to be candid and clear in their disclosures to the FDA,” Acting U.S. Attorney Honig said. “The government expects companies to be proactive in investigating issues affecting patient safety. The U.S. Attorney’s Office for the District of New Jersey will hold accountable any company that fails to meet these obligations.”
“Patients and health care providers rely on diagnostic devices to provide reliable health information,” Acting Assistant Attorney General Brian M. Boynton of the Department of Justice’s Civil Division said. “The Department of Justice will hold accountable medical device companies that knowingly sell defective products that can harm patients and waste taxpayer dollars.”
“Companies that withhold information from or provide false information to FDA put patients’ health at risk and jeopardize the integrity of the regulatory process designed to protect the public health,” Timothy Stenzel M.D., Ph.D., Director of the Office of In Vitro Diagnostics and Radiological Health in the FDA’s Center for Devices and Radiological Health, said.
“Medical device providers who cut corners or purposefully market defective tools put profit above patient health,” FBI Special Agent in Charge George M. Crouch Jr. said. “The FBI will not sit idly by when people’s lives are at risk. It’s an ill-advised business model that ignores the consequences of getting caught.”
U.S. Attorney Honig credited special agents of the FBI Newark Division, under the direction of Special Agent in Charge Crouch, and Healthcare Fraud Unit Major Provider Response Team; special agents of the Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; and the Civil Division’s Commercial Litigation Branch (Fraud Section), with investigation.
The government is represented by Assistant U.S. Attorney Daniel Meyler of the Health Care Fraud Unit in the District of New Jersey and Trial Attorney Christopher Terranova of the Civil Division.
The claims settled by this agreement are allegations only, and there has been no determination of liability.
Medical Device Companies Alere Inc. and Alere San Diego Inc. Agree to Pay $38.75 Million to Settle False Claims Act AllegationsRead the Press Release
Medical device manufacturers Alere Inc. and Alere San Diego Inc. (collectively, Alere) have agreed to pay $38.75 million to resolve allegations that the companies violated the False Claims Act by billing, and causing others to bill, the Medicare program for defective rapid point-of-care testing devices.
The settlement announced today resolves allegations that, from 2008 to 2016, Alere knowingly sold defective INRatio blood coagulation monitors used by Medicare beneficiaries taking anticoagulant drugs, such as warfarin. For those patients, blood coagulation monitoring is essential to determining a clinically appropriate and safe dosage for their medications. Too much of an anticoagulant drug can cause major bleeding, and too little of the drug can cause blood clots and strokes.
Since at least 2008, Alere allegedly knew that the software algorithm used in each version of its INRatio monitors contained a material defect. Based on its own internal research, as well as external complaints and warnings, Alere allegedly was aware that INRatio devices had a “system limitation” that produced inaccurate and unreliable results for some patients. The United States alleged that, despite awareness that INRatio systems were linked to over a dozen deaths and hundreds of injuries, including intra-cerebral hemorrhaging and cardiovascular events following bleeding episodes, Alere concealed the defect for years and billed Medicare for the use of defective INRatio devices. Alere allegedly failed to take appropriate corrective actions until 2016, when the devices were removed from the market following a nationwide Class I product recall undertaken at the request of the U.S. Food and Drug Administration (FDA).
“Patients and health care providers rely on diagnostic devices to provide reliable health information,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department's Civil Division. “The Department of Justice will hold accountable medical device companies that knowingly sell defective products that can harm patients and waste taxpayer dollars.”
“Health care companies have an obligation to be candid and clear in their disclosures to the FDA,” said Acting U.S. Attorney Rachael A. Honig for the District of New Jersey. “The government expects companies to be proactive in investigating issues affecting patient safety. The U.S. Attorney’s Office for the District of New Jersey will hold accountable any company that fails to meet these obligations.”
“Companies that withhold information from or provide false information to FDA put patients’ health at risk and jeopardize the integrity of the regulatory process designed to protect the public health,” said Timothy Stenzel, M.D., Ph.D., Director of the Office of In Vitro Diagnostics and Radiological Health in the FDA’s Center for Devices and Radiological Health.
“Medical device providers who cut corners or purposefully market defective tools put profit above patient health,” said Special Agent in Charge George M. Crouch Jr. of the FBI. “The FBI will not sit idly by when people’s lives are at risk. It’s an ill-advised business model that ignores the consequences of getting caught.”
This settlement was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch (Fraud Section) and the U.S. Attorney’s Office for the District of New Jersey, with investigative support from the FBI’s Newark Division and Healthcare Fraud Unit Major Provider Response Team and the Department of Health and Human Services, Office of Inspector General.
This matter was handled by Trial Attorney Christopher Terranova of the Civil Division and Assistant U.S. Attorney Daniel W. Meyler of the District of New Jersey.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Manhattan Doctor Sentenced to More Than 17 Years in Prison for Bribery and Kickback Scheme, and for Distributing Oxycodone and Fentanyl for No Legitimate Medical PurposeRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced today that GORDON FREEDMAN, a doctor who practiced in New York, New York, was sentenced today in Manhattan federal court to 121 months in prison for participating in a scheme to receive bribes and kickbacks in the form of fees for sham educational programs (“Speaker Programs”) from pharmaceutical company Insys Therapeutics in exchange for prescribing millions of dollars’ worth of Subsys, a potent fentanyl-based spray manufactured by Insys, among other offenses (the “Insys Bribery Offenses”). FREEDMAN was convicted of the Insys Bribery Offenses following a jury trial. FREEDMAN was also sentenced to 210 months in prison, to run concurrently to the other sentence, for distributing oxycodone and fentanyl to a patient for no legitimate medical purpose (the “Diversion Offense”). That patient ultimately died of a fentanyl overdose from drugs FREEDMAN illegally prescribed him. FREEDMAN pled guilty to the Diversion Offense in December 2019.
FREEDMAN was sentenced by United States District Judge Kimba M. Wood.
U.S. Attorney Audrey Strauss said: “Dr. Gordon Freedman, a prominent Manhattan physician, allowed his medical judgment to be corrupted by hundreds of thousands of dollars in bribes that he accepted from Insys in return for prescribing Subsys, a potent fentanyl painkiller. These payments were made to appear like legitimate speaker program fees, but as the evidence at Freedman’s trial revealed, the speaker programs were a sham and were simply a way for Insys to line Freedman’s pockets. In addition, Freedman prescribed excessive quantities of oxycodone and fentanyl to one of his patients for no legitimate medical purpose. The patient overdosed and died from fentanyl prescribed by Freedman. Freedman will now be serving a long prison sentence for accepting bribes and prescribing medically unnecessary opioids.”
According to the allegations contained in the Indictments against FREEDMAN, the evidence presented in Court during the trial related to the Insys Bribery Offenses, and filings in related proceedings:
Insys manufactured Subsys, a powerful painkiller approximately 50 to 100 times more potent than morphine. The U.S. Food and Drug Administration (“FDA”) approved Subsys only for the management of breakthrough pain in cancer patients. Prescriptions of Subsys typically cost thousands of dollars each month, and Medicare and Medicaid, as well as commercial insurers, reimbursed prescriptions written by the defendants. In or about August 2012, Insys launched a “Speakers Bureau,” purportedly aimed at educating practitioners about Subsys. In reality, however, Insys used its Speakers Bureau to induce doctors to prescribe large volumes of Subsys by paying them Speaker Program fees. At each Speaker Program, speakers were supposed to conduct a slide presentation for other health care practitioners regarding Subsys. However, many of the Speaker Programs led by the speakers paid by Insys were predominantly social affairs where no educational presentation occurred. Attendance sign-in sheets for the Speaker Programs were frequently forged by adding the names and signatures of health care practitioners who had not actually been present.
FREEDMAN, a doctor certified in pain management and anesthesiology, owned a private pain management office on Manhattan’s Upper East Side and was an associate clinical professor at a large hospital in Manhattan (“Hospital-1”). FREEDMAN received approximately $308,600 in Speaker Program fees from Insys in exchange for prescribing large volumes of Subsys.
In March 2013, a Regional Sales Manager for Insys sent an email to FREEDMAN informing him that he would receive more Speaker Programs in the coming months because Insys wanted prescriptions of Subsys to increase, and urging FREEDMAN to put more patients on Subsys. FREEDMAN responded, in part, “Got it,” and significantly increased his Subsys prescriptions in the following months, during which he received approximately $33,600 in Speaker Program fees.
In 2014, FREEDMAN’s prescriptions of Subsys rose even further, and he was the fourth-highest prescriber of Subsys nationally in the final quarter of 2014, accounting for approximately $1,132,287 in overall net sales of Subsys in that quarter. During 2014, FREEDMAN was the highest-paid Insys Speaker in the nation, receiving approximately $143,000.
During the period in which FREEDMAN was receiving kickbacks from Insys, he was also distributing powerfully addictive prescription drugs to a particular patient (“Patient-1”) with no legitimate medical purpose. From in or about 2013 through in or about May 2017, FREEDMAN prescribed enormous quantities of oxycodone and fentanyl to Patient-1. For example, in 2013 alone, FREEDMAN prescribed Patient-1 approximately 85,427 oxycodone pills – an average of approximately 234 oxycodone pills per day – containing a total of approximately 2,422,435 mg of oxycodone. On or about April 13, 2017, FREEDMAN gave Patient-1 prescriptions for approximately 150 doses of a drug containing fentanyl, and for approximately 950 oxycodone pills containing approximately 30 mg of oxycodone per pill. On or about May 4, 2017, Patient-1 died of a fentanyl overdose after ingesting a quantity of the drug prescribed by FREEDMAN on or about April 13, 2017.
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In addition to the prison sentence, FREEDMAN, 61, of New York, New York, was sentenced to three years of supervised release, ordered to forfeit $308,600 and ordered to pay a total fine across the two cases of $75,000.
FREEDMAN was one of five Manhattan doctors convicted for participating in the Subsys bribery conspiracy. Todd Schlifstein was convicted upon a guilty plea and sentenced by Judge Wood on October 28, 2019, principally to a term of two years in prison. Alexandru Burducea was convicted upon a guilty plea and sentenced by Judge Wood on January 27, 2020, principally to a term of 57 months in prison. Dialecti Voudouris was convicted upon a guilty plea and sentenced by Judge Wood on March 5, 2020, principally to time served. Jeffrey Goldstein was convicted upon a guilty plea and sentenced by Judge Wood on June 16, 2021, principally to a term of 57 months in prison.
Ms. Strauss praised the outstanding investigative work of the Federal Bureau of Investigation and thanked the U.S. Department of Health and Human Services - Office of the Inspector General for its participation in the investigation.
The cases are being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Noah Solowiejczyk, David Abramowicz, and Katherine Reilly are in charge of the prosecutions.
Man Charged in Connection with Shooting of Federal Agents in ChicagoRead the Press Release
CHICAGO — A criminal complaint filed today in federal court accuses a man of forcibly assaulting two federal agents and a task force officer in Chicago yesterday morning.
EUGENE MCLAURIN, 28, of Chicago, is charged with one count of using a dangerous and deadly weapon to assault a special agent from the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives. The charge is punishable by a maximum sentence of 20 years in federal prison.
McLaurin is scheduled to make an initial appearance in federal court today at 1:30 p.m. before U.S. Magistrate Judge Heather K. McShain. The hearing will be conducted telephonically.
The complaint was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Kristen deTineo, Special Agent-in-Charge of the Chicago Field Division of ATF; and David Brown, Superintendent of the Chicago Police Department. Valuable assistance was provided by the Illinois State Police. The government is represented by Assistant U.S. Attorneys Elizabeth Pozolo and Jared Jodrey.
According to the complaint, two ATF agents and an ATF Task Force officer were driving in an unmarked law enforcement vehicle early Wednesday morning while participating in a federal investigation on the South Side of Chicago. The officers noticed that a white Chevrolet Malibu sedan was following their vehicle, and they took note of the license plate number, the complaint states. The driver of the Malibu pulled alongside the officers’ vehicle, and the officers observed the driver’s side window roll down, the complaint states. A man later identified as McLaurin began shooting at the officers’ vehicle, wounding all three officers, the complaint states.
After the shooting, law enforcement located the Malibu parked on a street in Chicago, the complaint states. McLaurin was taken into law enforcement custody later Wednesday morning.
The investigation into the shooting remains ongoing.
The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
Littleton Felon Sentenced to 24 Months for Unlawfully Possessing FirearmsRead the Press Release
CONCORD – Johnathon Irish, 34, of Littleton, was sentenced on Wednesday to 24 months in federal prison for unlawfully possessing firearms, Acting United States Attorney John J. Farley announced today.
Irish was found guilty of one count of being a felon in possession of firearms after a four-day trial in February of 2020. Evidence presented at trial showed that between December of 2018 and November of 2019, Irish possessed at least two firearms, a Sig Sauer 1911, .45 caliber pistol and a Catamount Fury, 12-gauge shotgun.
Irish previously was convicted in 2014 of aiding and abetting a false statement in connection with the acquisition of a firearm and making a false statement to a federal agent. Due to these felony convictions, he is legally prohibited from possessing firearms.
“In order to protect our community from violent crime, it is vital to keep firearms out of the hands of criminals,” said Acting U.S. Attorney Farley. “Despite a prior gun-related felony conviction, this defendant chose to violate federal law by possessing multiple firearms. We will continue to work with our law enforcement partners to ensure that convicted criminals cannot endanger our citizens by possessing firearms.”
“Despite being barred from possessing firearms, Johnathon Irish demonstrated time and again he was unwilling to give up guns or abide by a law meant to keep them out of the hands of felons. Today’s sentence stops his revolving door of risky behavior, and our streets are safer for it,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “The FBI thanks our law enforcement partners for their assistance in helping us protect the communities we all serve.”
This matter was investigated by the Federal Bureau of Investigation, with assistance from the New Hampshire State Police. The case was prosecuted by Assistant U.S. Attorneys Anna Krasinski and Kasey Weiland.
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Lexington Doctor and Wife Charged in Superseding Indictment in International Money Laundering and Health Care Fraud SchemeRead the Press Release
BOSTON – A Lexington doctor and his wife, who works as his office manager, were charged today in a superseding indictment in connection with an international money laundering scheme involving importing illegal, misbranded drugs.
Rahim Shafa, 64, was indicted on health care fraud conspiracy, international money laundering conspiracy, money laundering, conspiracy to defraud the United States, illegally importing merchandise contrary to law and receiving and delivering misbranded drugs with an intent to defraud and mislead. Nahid “Nina” Tormosi Shafa, 63, was indicted on one count of health care fraud conspiracy and one count of international money laundering conspiracy. The defendants were previously indicted in August 2020.
According to the charging documents, Shafa was a psychiatrist who owned and operated Novel Psychopharmacology, for which Tormosi Shafa served as office manager. From April 2016 through January 2019, the defendants allegedly filed false and fraudulent Medicare reimbursement claims that they deposited into bank accounts they controlled.
It is further alleged that from approximately January 2008 through January 2018, Shafa and Tormosi Shafa engaged in an international money laundering scheme to purchase naltrexone pellet implants as well as disulfiram pellet implants and injections from Hong Kong. Naltrexone and disulfiram are approved by the U.S. Food and Drug Administration (FDA) in certain forms for the treatment of alcohol dependence and alcohol and opioid dependence, respectively. However, the forms that Shafa and Tormosi Shafa allegedly purchased are not approved by the FDA. Shafa allegedly falsified shipping documents to conceal that the packages containing the drugs were shipped from Hong Kong to Shafa in Massachusetts. For example, packages containing naltrexone pellet implants were falsely declared as ‘plastic beads in plastic tubes’ in shipping documents. Shafa and Tormosi Shafa offered to sell these drugs to patients of Novel.
The charge of health care fraud conspiracy provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. The charges of money laundering and money laundering conspiracy provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. The charge of conspiracy to defraud the United States provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. The charge of importing merchandise contrary to law provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. The charge of exporting merchandise contrary to law provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. The charge of receiving and delivering a misbranded drug with intent to defraud and mislead provides for a sentence of up to three 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; Jeffrey Ebersole, Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations, New York Field Office; Philip M. Coyne, Special Agent in Charge of U.S. Department of Health & Human Services, Office of the Inspector General, Office of Investigations, Boston Regional Office; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police, made the announcement today. Assistant U.S. Attorney John T. Mulcahy of Mendell’s Worcester Branch Office is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Kentwood Man Sentenced to Ten Years for Possession of Child PornographyRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that RANDOLPH ARD (“ARD”), age 65, of Kentwood, Louisiana, was sentenced today for Possession of Child Pornography, in violation of Title 18, United States Code, Section 2252(a)(4)(B).
According to documents filed in federal court, on November 22, 2017, law enforcement officers with the Louisiana Bureau of Investigation arrested ARD at his Kentwood home after finding that ARD was in possession of several items, including a laptop computer and thumb drive that contained images depicting the sexual victimization of prepubescent children. Court records also revealed that ARD was previously convicted in Tangipahoa Parish Criminal District Court for pornography involving juveniles and indecent behavior with juveniles on March 6, 2013. ARD was on state parole supervision at the time of his arrest.
U.S. District Judge Eldon E. Fallon sentenced ARD to 120 months imprisonment, followed by five (5) years of supervised release, sex offender registration, and a $100 special assessment.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
U.S. Attorney Evans praised the work of the U. S. Department of Homeland Security, Homeland Security Investigations, the Louisiana Bureau of Investigation, and Louisiana Probation and Parole in investigating this matter. The prosecution of this case is being handled by Project Safe Childhood Coordinator and Chief of the Financial Crimes Unit, Assistant U. S. Attorney Brian M. Klebba.
Jury Convicts Boston Man of Being Felon in Possession of Firearm and AmmunitionRead the Press Release
BOSTON – A Boston man was found guilty by a federal jury in Boston yesterday of illegally possessing a firearm and ammunition.
Rahshjeem Benson, a/k/a “Six Nine,” 38, was convicted following a six-day trial of one count of being a felon in possession of a firearm and ammunition. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for Sept. 29, 2021.
Evidence at trial established that, on April 5, 2019, Benson was arrested inside a bar in the Copley area of Boston for cocaine distribution. A Charter Arms Bulldog Pug .44 SPL caliber revolver loaded with five Smith & Wesson .44 caliber SPL cartridges was found in Benson’s sweatshirt pocket following his arrest. Due to a prior felony conviction, Benson is prohibited from possessing firearms or ammunition.
The charge of being a felon in possession of a firearm and ammunition provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Boston Police Acting Commissioner Gregory Long made the announcement today. Assistant U.S. Attorneys Elianna J. Nuzum and Fred M. Wyshak, III of Mendell’s Criminal Division prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Jersey City Gang Member Charged with MurderRead the Press Release
NEWARK, N.J. – An alleged member of a Jersey City, New Jersey, gang has been charged with the March 31, 2020, murder of a Jersey City resident, Acting U.S. Attorney Rachael A. Honig announced today.
Phillip Wiggins Jr., 24, of Newark, is charged by complaint with one count each of murder in aid of racketeering, discharging a firearm in furtherance of a crime of violence, and causing death through use of a firearm. He made his initial appearance by videoconference before U.S. Magistrate Judge Michael A. Hammer and was detained without bail.
According to documents filed in this case and statements made in court:
Wiggins is allegedly associated with a street gang known to operate in the area of Wilkinson Avenue, Ocean Avenue, Martin Luther King Drive, and Wegman Parkway in Jersey City. On March 31, 2020, Wiggins traveled to an area controlled by a rival gang with which Wilkinson was feuding, and allegedly murdered Victim-1.
Wiggins faces a potential mandatory life sentence for the murder in aid of racketeering count. The count of causing death through use of a firearm carries a maximum sentence of life in prison. The count of discharging a firearm during an act of violence carries a potential mandatory consecutive sentence of 10 years in prison.
Acting U.S. Attorney Honig credited the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez, and the Jersey City Police Department, under the direction of Public Safety Director James Shea, as well as special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to the charges.
This investigation was conducted as part of the Jersey City Violent Crime Initiative (VCI). The VCI was formed in 2018 by the U.S. Attorney’s Office for the District of New Jersey, the Hudson County Prosecutor’s Office, and the Jersey City Police Department, for the sole purpose of combatting violent crime in and around Jersey City. As part of this partnership, federal, state, county, and city agencies collaborate to strategize and prioritize the prosecution of violent offenders who endanger the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the Drug Enforcement Administration’s (DEA) New Jersey Division, the U.S. Marshals, the Jersey City Police Department, the Hudson County Prosecutor’s Office, the Hudson County Sheriff’s Office, New Jersey State Parole Board, the Hudson County Jail, and the New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center.
The government is represented by Assistant U.S. Attorney Francesca Liquori of the Organized Crime and Gangs Unit and Assistant U.S. Attorney Sophie Reiter of the Violent Crime Unit.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Head of Telemarketing Operation Charged in $19 Million Credit Card Laundering SchemeRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced the arrest today of STEVEN SHORT, the former head of E.M. Systems & Services, LLC, and affiliated companies (“E.M. Systems”), on charges of fraudulently obtaining credit card processing services for his deceptive Florida-based telemarketing operation. As alleged in a superseding indictment unsealed today, which also contains charges previously announced against Brandon Becker, the former CEO of CardReady, LLC (“CardReady”), SHORT and Becker fraudulently carried out a credit card laundering scheme that provided access to the credit card system for SHORT’s underlying telemarketing scheme. From about 2012 through 2015, according to the Indictment, SHORT and E.M. Systems generated over $19 million from thousands of customers who received cold calls promising to reduce their overall debt burdens in exchange for fees of up to $1,495. The telemarketing operation resulted in hundreds of complaints of fraud and deceptive tactics, and requests for millions of dollars in refunds and chargebacks. The charges include that, from approximately 2012 through 2015, SHORT, Becker and their co-conspirators carried out a fraudulent credit card processing scheme, processing credit card charges for SHORT’s telemarketing operation, even though applicable contracts prohibited the processing of credit card charges for purported “debt consolidation” and “interest rate reduction” services. SHORT and Becker are charged with accomplishing this processing fraud by creating dozens of sham merchant accounts and false merchant applications, concealing the true nature of SHORT’s telemarketing operation, and defrauding an associated credit card processing company and a federally insured bank into processing more than $19 million in payments for the scheme.
SHORT was arrested this morning in Tampa, Florida, and is scheduled to be presented in Tampa before U.S. Magistrate Judge Sean Flynn. Becker was originally arrested at Los Angeles International Airport on September 22, 2019. The case is assigned to Judge Preska, and is scheduled to go to trial on January 31, 2022.
U.S. Attorney Strauss said: “Steven Short and his codefendant allegedly preyed on people already in debt in order to enrich themselves, using a web of sham companies to perpetuate and conceal their conduct. As credit cards and electronic payments become an ever more central part of our society and our economy, both consumers and corporations have every right to expect truthfulness and fair dealing in the marketplace – not fraud and deception.”
FBI Assistant Director William F. Sweeney Jr. said: "As alleged, Becker and Short created more than $19 million in illegitimate profits, derived from victims who were deliberately targeted due to their debt-laden status. They entered into this scheme together and will exit in much the same way—facing a federal indictment that carries significant charges of its own."
According to the Indictment unsealed today:[1]
SHORT controlled E.M. Systems and its affiliates, based in Florida. Beginning in 2012, SHORT sought to use E.M. Systems to carry out a telemarketing scheme targeting people with outstanding debt, and to offer them purported financial services. In order to charge for such purported services via credit cards, SHORT sought access to the credit card processing market, through Becker and CardReady.
Becker was the CEO of CardReady, a Los-Angeles based company acting as a sales agent in the credit card processing industry. As part of its business as a sales agent, CardReady found merchants who wanted credit card processing services, such as SHORT, and submitted merchant applications on behalf of those merchants to an Independent Sales Organization (“ISO”), referred to in the Indictment as the “New York ISO.” The New York ISO then evaluated the merchant applications, and referred acceptable merchant accounts up the chain to Payment Processor-1 and to Bank-1. Bank-1 and Payment Processor-1, in turn, processed payments to merchants for purchases by customers who had used credit cards.
In or about 2012, SHORT negotiated a deal with Becker, to obtain credit card processing for SHORT and E.M. Systems. Under this deal, CardReady would keep approximately one-third of the credit card sale transactions of SHORT and E.M. Systems, in exchange for providing them access to the credit card processing network. For roughly the next two years, SHORT and E.M. Systems carried out a telemarketing scheme in which they used telemarketers to cold-call consumers, targeting consumers with outstanding credit card debt. The cold-callers offered the customers services, including debt consolidation and interest rate reduction on their debts, which were prohibited by the applicable guidelines from Bank-1 and associated processing entities (the “Guidelines”), and which – as SHORT and Becker knew – would produce chargebacks from dissatisfied customers far in excess of the number and rate of chargebacks permitted under the Guidelines.
In securing payment card processing for E.M. Systems, SHORT and Becker concealed that E.M. Systems was the true underlying merchant. Instead, SHORT, Becker and their co-conspirators, over a period of more than 20 months, created approximately 26 sham merchant companies, each headed by a “signer” (the “Sham Merchants” and the “Sham Merchant Accounts”). The 26 signers for the 26 Sham Merchants typically had no businesses of their own, and knew little or nothing about E.M. Systems’ business. In return for signing paperwork, the signers were paid a nominal fee from CardReady. SHORT, Becker, and their co-conspirators prepared and coordinated fraudulent merchant applications for each of the Sham Merchants, through merchant applications that falsely described the Sham Merchants to make them look like legitimate independent businesses and to make it more likely that the associated Sham Merchant Account would be approved for processing by the New York ISO, Payment Processor-1, and Bank-1. These false merchant applications also concealed the Sham Merchants’ true association with E.M. Systems.
By steering E.M. Systems’ payment processing through these Sham Merchant Accounts, SHORT and Becker accomplished a number of fraudulent purposes. First, the use of these Sham Merchant Accounts made it possible for E.M. Systems to conceal its identity from Payment Processor-1 and Bank-1 and to maintain payment card processing. This was particularly relevant as Payment Processor-1 repeatedly required CardReady to close individual Sham Merchant Accounts because of excessive chargebacks and reports of sales of prohibited services. SHORT and Becker then caused CardReady to quickly replace the closed Sham Merchant Accounts with new Sham Merchant Accounts, precluding Payment Processor-1 from shutting down its processing of Telemarketer-1 and other high-risk merchants. Second, the fraudulent processing scheme enabled E.M. Systems to spread out its charges, refunds, and chargebacks across multiple Sham Merchant Accounts. SHORT and Becker thus enabled E.M. Systems to evade chargeback monitoring programs operated by Bank-1, Payment Processor-1, and the New York ISO.
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SHORT, 44, of Tampa, Florida, is charged in Counts One and Four of the Indictment, with conspiracy to commit wire fraud and bank fraud, and bank fraud. Count One and Count Four each carries a maximum sentence of 30 years in prison, and a maximum fine of $1 million or twice the gross gain or loss from the offense.
Becker, 50, of Los Angeles, California, is charged in four counts, conspiracy to commit wire fraud and bank fraud, conspiracy to make false statements to a bank, wire fraud, and bank fraud. Count One and Count Four each carries a maximum sentence of 30 years in prison, and a maximum fine of $1 million or twice the gross gain or loss from the offense. Count Two and Count Three each carries a maximum sentence of 20 years in prison, and a maximum fine of $250,000 or twice the gross gain or loss from the offense.
The maximum potential sentences for each defendant are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Ms. Strauss praised the extraordinary work of the FBI and thanked the Federal Trade Commission for its assistance.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys David Raymond Lewis and Vladislav Vainberg 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.
Harrison County man indicted on firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Chad Perkins, of Wallace, West Virginia, was indicted yesterday on a firearms charge, Acting United States Attorney Randolph J. Bernard announced.
Perkins, 31, was indicted on one count of “Unlawful Possession of Firearm.” Perkins, a person prohibited from having a firearm because of prior convictions, is accused of having a .32 caliber revolver in February 2021 in Harrison County.
Perkins faces up to 10 years of incarceration and a fine of up to $250,000 for each count. 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 Jennifer Conklin is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms & Explosives and West Virginia State Police investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Hardy County man indicted on firearms chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Gregory Stump, of Moorefield, West Virginia, was indicted yesterday on firearms charges, Acting United States Attorney Randolph J. Bernard announced.
Stump, 51, was indicted on one count of “Unlawful Possession of a Firearm” and one count of “Possession of Firearm with Obliterated Serial Number.” Stump, a person prohibited from having a firearm, is accused of having a .45 caliber pistol with an obliterated serial number in April 2020 in Monongalia County.
Stumps faces up to 10 years of incarceration and a fine of up to $250,000 for the unlawful possession charge and faces up to 10 years of incarceration and a fine of up to $10,000 fine for the obliterated serial number charge. 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 Zelda E. Wesley is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Morgantown Police Department investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Hampshire County woman admits to role in drug trafficking operationRead the Press Release
MARTINSBURG, WEST VIRGINIA – Jessica Lee Lynch, of Augusta, West Virginia, has admitted to her role in a drug trafficking conspiracy, Acting United States Attorney Randolph J. Bernard announced.
Lynch, age 38, pleaded guilty to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Heroin. Fentanyl, and Cocaine Base.” Lynch admitted to working with another individual to distribute the controlled substances from January 2020 through October 2020.
Lynch faces up to 20 years of incarceration and a 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 Lara K. Omps-Botteicher prosecuted the case on behalf of the government. The U.S. Attorney’s Office worked closely with the Hampshire County Prosecutor’s Office to bring this case forward. In addition, the Potomac Highlands Drug & Violent Crime task Force, a HIDTA funded initiative, investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Gypsum Business Owner Sentenced for Tax FraudRead the Press Release
GRAND JUNCTION — The U.S. Attorney’s Office for the District of Colorado announces that Trenton Switzer, age 40, of Gypsum, CO was sentenced by U.S. District Court Judge Christine M. Arguello to serve 12 months and one day in prison and to pay restitution of $241,964.71 for submitting a false tax return to the IRS. Switzer previously pled guilty to an Information on April 26, 2021.
According to the filed information and the stipulated facts in the plea agreement, Switzer operated a sales training business that generated significant income. Switzer then attempted to avoid paying taxes on his income by falsely claiming that he had made a $250,000 charitable contribution to a fake church that he created for the purpose of evading taxes. As part of this scheme, Switzer incorporated the “Church of Divine Sovereignty” and opened a bank account in its name. Less than 24 hours after incorporating it, Switzer filed documents dissolving the fake church. Later, Switzer deposited $250,000 into the church bank account he created and then used that money to purchase Bitcoin.
When it came time to prepare his 2015 tax return, Switzer provided his tax preparer with a letter, signed by Switzer himself as the “pastor” of his fake church, purporting to memorialize the $250,000 as a charitable contribution. Switzer’s tax preparer warned him that his fake church did not qualify as a charitable organization and that the purported payment could not be deducted. Nevertheless, despite these clear warnings, Switzer signed and personally filed his 2015 U.S. Federal Tax Return, falsely claiming a $250,000 charitable contribution deduction.
“Mr. Switzer’s claim to be the pastor of a fake church he created to evade his taxes landed him in a real prison,” said Acting U.S. Attorney Matt Kirsch. “My office will continue to aggressively pursue people who cheat on their taxes.”
“Trenton Switzer’s creation of a nonprofit church to generate false charitable deductions is not only a crime but an insult to all taxpaying citizens who pay their fair share of taxes,” said IRS-Criminal Investigation Special Agent in Charge Andy Tsui. “IRS-CI Special Agents will always devote the necessary resources to bring to justice those who fail to uphold their civic obligation to file truthful and accurate income tax returns.”
This matter was investigated by IRS-CI and prosecuted by Assistant United States Attorney Jeremy Chaffin.
Case number. 21-cr-00093-CMA-GPG
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Ghanaian National Sentenced for Lying on Naturalization Application and Fleeing Country After ArraignmentRead the Press Release
BOSTON – A Ghanaian national was sentenced today in federal court in Boston for making a false statement on an application for naturalization and fleeing the United States after being released on conditions from pretrial custody.
Richard Kyeremeh, 46, previously of Worcester, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 18 months in prison and three years years of supervised release. Earlier in the hearing, Kyeremeh pleaded guilty to one count of making a false statement relating to naturalization and one count of committing contempt.
In February 2019, a federal grand jury indicted Kyeremeh on one count of making a false statement relating to naturalization and one count of aggravated identity theft. After his arraignment, Kyeremeh was released from pretrial custody on certain conditions, including that he not travel outside New England without permission from Pretrial Services.
In August 2019, Pretrial Services was unable to locate Kyeremeh. His roommate discovered a letter and sent it to Pretrial Services. The letter was an attempt to mislead authorities about Kyeremeh’s whereabouts. It said, “I am going back to Ghana because I can’t bear what is going on. I have not been myself after my arrest and I have decided to go back to Ghana to start at fresh.” In fact, Kyeremeh had fled on foot into Quebec from Champlain, N.Y.
In January 2020, Kyeremeh was located living and working in Ontario by Canadian authorities and was later extradited to the United States. In January 2021, the grand jury returned a superseding indictment adding a charge of contempt based on Kyeremeh’s flight to Canada.
Acting United States Attorney Nathaniel R. Mendell; William S. Walker, Acting Special Agent in Charge of Homeland Security Investigations in Boston; and Denis C. Riordan, District Director, U.S. Citizenship and Immigration Services, District 1, made the announcement today. Assistance with the investigation was also provided by U.S. Customs and Border Protection, U.S. Immigration and Customs Enforcement, the U.S. Marshals Service and the Royal Canadian Mounted Police. Assistant U.S. Attorney Christine Wichers of Mendell’s Criminal Division prosecuted the case.
Fresno Man Indicted for Assaulting a Court Security OfficerRead the Press Release
FRESNO, Calif. — A federal grand jury returned a one-count indictment today against Carlos Perez, 45, of Fresno, charging him with assault on a federal contractor, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, on June 21, 2021, Perez assaulted a Court Security Officer inside the U.S. Federal Courthouse in Fresno by striking the officer in the face.
This case is the product of an investigation by the Federal Protective Services, the U.S. Marshals Service, and the Fresno Police Department. Assistant U.S. Attorney Katherine E. Schuh is prosecuting the case.
If convicted, Perez faces a maximum statutory penalty of eight years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Fraudster Who Stole Protected Health Information to Fund Spending Spree Sentenced to PrisonRead the Press Release
PLANO, Texas – A McKinney man has been sentenced to prison for federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Demetrius Cervantes, 46, pleaded guilty on Dec. 4, 2020, to conspiracy to obtain information from a protected computer on Dec. 4, 2020, and was sentenced to 48 months in federal prison today by U.S. District Judge Sean D. Jordan.
“Today’s sentence sends the message that the theft of protected health information, the fabrication of physicians’ orders, and the sale of prescriptions will not be tolerated in the Eastern District of Texas,” said Acting U.S. Attorney Nicholas J. Ganjei. “This office will continue to pursue those who place profits over patients and manipulate the healthcare system for their personal gain.”
According to information presented in court, Cervantes, Amanda Lowry, and Lydia Henslee, were named in a federal indictment on Sept. 11, 2019 charging them with conspiracy to obtain information from a protected computer and conspiracy to unlawfully possess and use a means of identification. They are alleged to have breached a health care provider’s electronic health record (EHR) system in order to steal protected health information and personally identifiable information belonging to patients. This stolen information was then “repackaged” in the form of false and fraudulent physician orders and subsequently sold to durable medical equipment (DME) providers and contractors. The defendants obtained more than $1.4 million in proceeds from the sale of the stolen information. The defendants used those proceeds to purchase items such as sport utility vehicles, off-road vehicles and jet skis.
Lowry pleaded guilty to conspiracy to obtain information from a protected computer and is set to be sentenced on July 22, 2021.
On Nov. 18, 2020, Henslee was charged in a ten-count superseding indictment with one count of conspiracy to unlawfully transfer, possess, and use a means of identification, and nine counts of unlawfully transferring, possessing, and using a means of identification.
Henslee was also charged in a separate superseding indictment along with Steven Churchill, 34, of Boca Raton, Florida, Samson Solomon, 23, of West Palm Beach, Florida, David Warren, 50, of Boca Raton, Florida, and Daniel Stadtman, 67, of Allen, Texas, with one count of conspiracy to commit illegal remunerations.
According to the superseding indictment, the defendants are alleged to have conspired to pay and receive kickbacks in exchange for orders from physicians that were subsequently used to obtain payments from federal health care programs. The conspirators obtained patient information, including protected health information and personally identifiable information, and used the information to create fictitious physician orders. The conspirators then sold the physicians’ orders to each other and to other DME providers. Within approximately eight months, the defendants collectively obtained more than $2.9 million in proceeds from the criminal scheme.
The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by federally funded programs, including Medicare, Medicaid, and TRICARE. If convicted, the defendants each face up to five years in federal prison.
Henslee pleaded guilty to conspiring to possess and use means of identification in connection with various offenses on March 25, 2021. A sentencing date has not been set.
These cases were investigated by the U.S. Department of Health and Human Services, Office of Inspector General; U.S. Department of the Treasury, Internal Revenue Service, Criminal Investigation; and the U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service. They are being prosecuted by Assistant U.S. Attorneys Nathaniel C. Kummerfeld and Adrian Garcia and Special Assistant U.S. Attorney Bethany Pickett.
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Four Women Leaders in Law Enforcement in Philadelphia Talk with Girls About Careers, Mentorship, and Breaking the Glass CeilingRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Girls Inc. of Greater Philadelphia & Southern New Jersey, in partnership with the U.S. Attorney’s Office for the Eastern District of Pennsylvania, hosted a virtual panel discussion for Girls Inc. program participants with women leaders in law enforcement in Philadelphia. The women leader panelists were Acting U.S. Attorney Jennifer Arbittier Williams, City of Philadelphia Police Commissioner Danielle Outlaw, City of Philadelphia Controller Rebecca Rhynhart, and City of Philadelphia Solicitor Diana Cortes. Dena Herrin, Executive Director of Girls Inc. of Greater Phila. & Southern New Jersey, provided welcoming remarks, and the discussion was moderated by Girls Inc. Eureka! Coordinator Sarah Kane.
The meeting marks a moment when, for the first time in Philadelphia history, four major law enforcement agencies – the United States Attorney’s Office for the Eastern District of PA, the Philadelphia Police Department, the City Controller’s Office and the City’s Law Department – are being led by women, two by women of color. The goal of the discussion, which was attended by approximately 60 participants ranging in age from 11 to 18, was to engage directly with girls who may be beginning to think about their own education and career paths, and to share the message that they can become leaders in any field, even fields like law enforcement that are traditionally dominated by men. The panelists spoke candidly about a wide variety of topics including their personal and professional backgrounds, typical duties of their current jobs, mentors and inspiration, professional challenges and rewarding moments, and even misconceptions about women in the field.
“Representation matters; seeing and engaging directly with women role models matters,” said Acting U.S. Attorney Williams. “Girls in middle school and high school are laying the groundwork for their futures. I enthusiastically participated in this event because, as a mother of four students, I know how important it is for youth to see diverse examples of people pursuing different careers and interests, especially people serving in leadership roles. As the late Justice Ginsburg said: ‘Women belong in all places where decisions are being made.’ And if we can do it, you can, too.”
“Blazing a new path can be challenging but is not impossible,” said Police Commissioner Outlaw. “It is important that young women know that what traditionally has been seen as weaknesses in us are, in fact, strengths. Women have long deserved many seats at the table due to our skill sets, lived experiences, perspectives and qualifications. It is crucial we develop our young women early to prepare them to not only take their seats at the table or to recognize when a seat at the table is not enough , but to ensure they are equipped to address any inequities or other challenges they may experience as they blaze trails for others behind them.”
“I’m thrilled to participate in this event with Girls, Inc. to encourage today’s young women – the leaders of tomorrow – to consider fields long-believed to be ‘men’s work,’ like government, law enforcement or STEM,” said Controller Rhynhart. “I am the first woman to be elected City Controller and while women are in positions of power across the city, Philadelphia has never had a woman mayor. Pennsylvania has never had a woman senator or governor. Girls need to know that they can, and should, hold positions of power, no matter the field, whether in the public or private sector. Events like this give girls the opportunity to see women creating change and leading, opening their minds to endless possibilities.”
“This program was a great opportunity to share with tomorrow’s women leaders the importance of public service work and how the City of Philadelphia Law Department plays a role in our community by defending the work of our City Council, our affirmative litigation program, or working to ensure the health and safety of our residents are protected,” said Solicitor Cortes.
Girls Inc. is a nonprofit organization with roots dating to 1864 and national status since 1945. The local affiliate was founded in 1961 as Teen Aid, and became affiliated with the national organization in 2002. Its mission is to inspire all girls to be strong, smart, and bold, through direct service and advocacy. Girls Inc. serves girls in K-12th grades at local schools, community partner sites, Philadelphia Juvenile Justice Service Center, and the Girls Inc. center. Girls Inc. programs focus on leadership and community action, STEM, early grade literacy, financial literacy, healthy decision making, and media literacy. The combination of long-lasting mentoring relationships, a pro-girl environment, and research-based programming equips girls to navigate gender, economic, and social barriers, and grow up healthy, educated, and independent. A Girls Inc. participant learns to value herself, take risks, and discover and develop her inherent strengths. The mission and the proven, holistic approach the organization employs to fulfill its mission is making a meaningful impact on thousands of girls in the region.
Former Sales Representative Admits Role in $7.89 Million Compounded Prescription Drug SchemeRead the Press Release
NEWARK, N.J. – A former sales representative for several compounding pharmacies and marketing companies today admitted his role in a scheme to defraud public and private health benefits programs of $7.89 million for the billing of medically unnecessary compounded prescriptions, Acting U.S. Attorney Rachael A. Honig announced.
Christopher Cuffari, 55, of Little Falls, New Jersey, pleaded guilty by videoconference before U.S. District Judge John Michael Vazquez to an information charging him with conspiracy to commit health care fraud.
According to documents filed in this case and statements made in court:
Compounded medications are specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Although compounded drugs are not approved by the Food and Drug Administration (FDA), they are properly prescribed when a physician determines that an FDA-approved medication does not meet the health needs of a particular patient, such as if a patient is allergic to a dye or other ingredients in the prescription.
Between November 2014 and September 2017, Cuffari participated in a conspiracy that involved the submission of fraudulent prescriptions for compounded medications to public and private insurance plans. The scheme centered on the discovery that certain insurance plans paid for prescription compounded medications – including scar creams, wound creams, and metabolic supplements/vitamins – at exorbitant reimbursement rates.
Cuffari exploited this opportunity through working as a sales representative for several compounding pharmacies. To profit as a sales representative, Cuffari targeted individuals who had insurance plans that covered compounded medications and then convinced those individuals to obtain prescriptions for compounded medications, regardless of medical necessity, often by providing them with cash payments. To obtain prescriptions for compounded medications for some of the recruited individuals, Cuffari caused payments to be made to a New Jersey-based physician.
Once the prescriptions were written, they were filled by the compounding pharmacies with which Cuffari worked. The compounding pharmacies would then receive reimbursement from the insurance plans and would pay Cuffari a percentage of the reimbursement amount.
As part of his plea agreement, Cuffari must forfeit $995,328 in criminal proceeds he received for his role in the scheme and pay restitution of at least $7.89 million. He faces a statutory maximum of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for Nov. 9, 2021.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Sean M. Sherman of the U.S. Attorney’s Office, Opioid Abuse Prevention and Enforcement Unit, in Newark.
Former Rochester CEO Pleads Guilty to Defrauding His Own CompanyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Michael Margiotta, 50, of Rochester, NY, pleaded guilty before U.S. District Judge Charles J. Siragusa to wire fraud and filing a false tax return. The charges carry a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that the defendant was employed as the Chief Executive Officer of eHealth Global Technologies. In May 2011, as eHealth CEO, Margiotta entered into a contract with Healthcare Network Alliance, LLC (HCNA) for employment recruiting services. HCNA was owned by the defendant’s wife. The agreement provided that HCNA would be compensated if candidates referred to eHealth were hired. Between June 2011, and January 2014, Margiotta caused HCNA to submit invoices for recruiting services to eHealth that he knew that HCNA had not provided. For instance, on April 19, 2013, HCNA submitted an invoice to eHealth requesting payment of $44,000 for recruiting an employee. HCNA had not recruited the employee, and defendant knew that HCNA was not entitled to be paid a recruiting fee for the employee. In total, Margiotta caused HCNA to prepare and submit fraudulent invoices for approximately 23 employees of eHealth that HCNA had not recruited totaling $380,960.
In addition, the defendant filed a false tax return for the year 2013, claiming income of $260,334, in actuality, his taxable income was $611,195.00, resulting in a tax loss to the IRS of $137,067.
The plea is the culmination of an investigation by the Internal Revenue Service, Criminal Investigations Division, under the direction of Thomas Fattorusso, Acting Special Agent-in-Charge, New York Field Office.
Sentencing is scheduled for October 28, 2021, at 9:30 a.m. before Judge Siragusa.
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Federal Jury Convicts Department of Defense Contractor of Attempted Child EnticementRead the Press Release
SAN ANTONIO – A federal jury today convicted Rick A. Benavides, a 48-year-old Department of Defense information technology contractor, of attempting to entice a child to engage in sexual activity.
According to evidence presented during the three-day trial, in February 2019 Benavides repeatedly requested that the minor send him a photograph of her full body while she showered through multiple online chats, including while at work. During his chat conversations, Benavides described the sexual acts he wanted to engage in with the minor. He also made plans to pick up the minor on Joint Base San Antonio (JBSA)-Lackland, take her to his off-base residence to engage in sexual activity, then return her.
On February 20, 2019, Benavides arrived at Lyons Park on JBSA-Lackland to meet the minor only to discover that the individual he believed he was communicating with was in fact an undercover U.S. Air Force Office of Investigations agent.
U.S. Attorney Ashley C. Hoff made today’s announcement.
Benavides remains in federal custody pending sentencing scheduled for October 20, 2021, before U.S. District Judge Xavier Rodriguez. He faces from 10 years to life in federal prison.
The U.S. Air Force Office of Special Investigations conducted this investigation. Assistant U.S. Attorney Bettina Richardson is prosecuting this case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
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Federal Grand Jury A Indictments Announced for JulyRead the Press Release
Acting United States Attorney Clint Johnson today announced the results of the July 2021 Federal Grand Jury A.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
John Jacob Ahrens. Threat Against the President of the United States (Count 1). Interstate Communication with a Threat to Injure (Counts 2 and 3). Ahrens, 58, of Tulsa, is charged in Count 1 with threatening to kill the President of the United States. In Count 2, he is charged with generating a threatening email sent to KOTV Channel 6 on June 10, 2021, stating “America is going to get to see a sitting President get his head blown off right in front of them. A kill contract went out on one Joseph Biden, President of the United States of America. America is going to watch him die right in front of them.” In Count 3, he is charged with sending a threatening email on May 10, 2021, stating “I tried to contact you earlier but the Feds shut me down they got a little up tight because I informed the men of the United States Congress if they didn’t hand my money over in less than 48 hours. I will have their children killed. If that doesn’t get the message across. Then I start on their women....” See the initial press release announcing charges by criminal complaint. The U.S. Secret Service, FBI, and Oklahoma State Bureau of Investigation are the investigative agencies. 21-CR-00318
Jeremy Quenton Bell. Conveying False and Misleading Information Concerning an Explosive Device (Count 1 and 2). Bell, 41, of Broken Arrow, allegedly sent false information regarding explosive devices to U.S. Senator Jim Inhofe (R-OK) on April 6, 2021. In the email he stated, “Might want to check your Tulsa office for explosives.” He is also charged with conveying false and misleading information concerning an explosive device to U.S. Congresswoman Rashida Tlaib (D-MI) on May 16, 2021. He reportedly sent the statement, "So now that you have identified as a supporter of Nazism I would advise to check your Michigan offices for explosives. As well as your homes. Also, for the staff it might be best if you distance yourself." The U.S. Capital Police Threat Assessment Section, Tulsa Police Department’s Bomb Squad, and the FBI are the investigative agencies. 21-CR-00319
Dylan Boyd. Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country (superseding Indictment). Boyd, 28, of Tulsa, faces charges after using a vehicle to strike a male victim on March 20, 2020. Boyd is a citizen of the Muscogee Nation, and the alleged crime occurred within the Muscogee Nation Reservation. The Tulsa Police Department and FBI are the investigative agencies. 21-CR-00307
Madelyn Abigail Brown. Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country (Count 1 and 2) (superseding indictment). Brown, 27, of Tulsa, reportedly use a knife to stab two male victims in the arm, back, shoulder, and eyebrow on May 10, 2020. Brown is a citizen of the Cherokee Nation, and the alleged crime occurred within the Muscogee Nation Reservation. The Tulsa Police Department and FBI are the investigative agencies. 20-CR-00213
Megan Renee Carney. Possession of Methamphetamine with Intent to Distribute. Carney, 36, of Tulsa, is charged with possessing with intent to distribute more than 50 grams of methamphetamine on May 20, 2021. The Tulsa Police Department, Oklahoma Bureau of Narcotics and Dangerous Drugs, Drug Enforcement Agency, and FBI are the investigative agencies. (21-CR-320)
Brock Deckard. Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country (Count 1) and Child Abuse in Indian Country (Count 2). Deckard, 29, of Twin Oaks, allegedly threatened to harm his girlfriend and her children who were under 18 years of age with a loaded firearm on June 3, 2021. He further endangered the welfare of the children by threatening to harm their safety. The victims are citizens of the Cherokee Nation, and the alleged crime occurred within the Cherokee Nation Reservation. The Delaware County Sheriff’s Office and FBI are the investigative agencies. 21-CR-00310
Josiah Gammill; Hailey Micaela Mace. First Degree Murder in Indian Country (Count 1); Carrying, Using, Brandishin, and Discharging a Firearm During and in Relation to a Crime of Violence (Count 2) Accessory After the Fact to First Degree Murder in Indian Country (Count 3) and False Statement to a Federal Agency (Count 4 and 5) (superseding). Gammill, 18, of Tulsa, is charged with shooting and killing Hunter Allen Majors on March 21, 2021. He is further charged with carrying and brandishing a firearm during the crime. See the initial press release announcing charges by criminal complaint. Gammill’s girlfriend, Hailey Mace, 24, of Tulsa, allegedly had knowledge of the crime occurring and failed to notify authorities. She later allegedly made false statements to the investigative agencies regarding Gammill’s alleged involvement in crime. Gammill is a citizen of the Quapaw Nation, and the crimes occurred in the Cherokee Nation Reservation. The victim was a citizen of the Choctaw Nation. The Craig County Sheriff’s Office, Oklahoma State Bureau of Investigation, Tulsa Police Department and FBI are the investigative agencies. 21-CR-00140
Audrey Hop. Possession of Fentanyl with Intent to Distribute. Hop, 35, of Tulsa, is charged with possessing fentanyl with intent to distribute 40 grams or more. According to court documents, federal officials discovered more than 270 grams of suspected fentanyl and $30,000 allegedly in her possession on a plane at Jones Riverside Airport on June 23, 2021. U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Drug Enforcement Administration, and FBI are the investigative agencies. 21-CR-00321
Kelton Jeffrey Pair. Assault of an Intimate/Dating Partner by Strangling in Indian Country (Count 1), Assault of an Intimate/Dating Partner in Indian Country resulting in Substantial Bodily Injury (Count 2), and Kidnapping in Indian Country (Count 3). Pair, 22, of Grove, reportedly assaulted his girlfriend by strangling her, headbutting her in the nose, and threatening to harm her on September 22, 2018. Pair further attempted to confine her to a bedroom before allowing her to seek medical attention. Pair is a citizen of the Cherokee Nation, and the alleged crimes occurred within the Cherokee Nation reservation. The Delaware County Sherriff’s Office and FBI are the investigative agencies. 21-CR-00311
Satch Williams. Kidnapping in Indian Country (Count 1) and Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country (Count 2.) Satch Williams, 31, of Grove, is charged with assaulting a female victim in a trailer home located outside of Jay. Williams entered the trailer home and began assaulting the victim with a gold-colored bar. He further used a glass object to strike the victim resulting in significant blood loss. Williams knocked the victim to the ground and began kicking her in the head. He also allegedly placed a metal bar over the victim’s neck when she tried to escape. Williams is a citizen of the United Keetoowah Band of Cherokees, and the alleged crimes occurred within the Cherokee Nation Reservation. The FBI and Delaware County Sheriff’s Office are the investigative agencies. 21-CR-00312
Ted Roosevelt Yargee. Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country (Count 1 and 3) and Assault of an Intimate/Dating Partner by Strangling and Suffocating in Indian Country (Count 2) Yargee, 59, of Tulsa, is charged with assault with a dangerous weapon after using a pole to strike his girlfriend on April 4, 2018, and after forcefully strangling and suffocating her on Aug. 13, 2018. Further, Yargee also used his automobile to rear end the woman’s vehicle on Oct. 20, 2018. At the time of the third incident, the victim and Yargee were no longer dating. Yargee is a citizen of the Muscogee Nation, and all alleged crimes occurred within the Muscogee Nation Reservation. The FBI and Tulsa Police Department are the investigative agencies.21-CR-00313
Federal Charges Filed Against Man in Killing of Terre Haute Police OfficerRead the Press Release
TERRE HAUTE – Criminal charges were filed today against a Terre Haute man who was taken into custody yesterday for killing Terre Haute Police Detective and FBI Task Force Officer, Gregory Ferency, outside the FBI Resident Agency office on July 7, 2021.
According to court documents, Shane Meehan, 44, drove his pickup truck to the gate of the FBI Resident Agency building. Meehan exited his truck and threw a Molotov Cocktail toward the building. Detective Ferency walked out of the building shortly after Meehan threw the incendiary device and was confronted by Meehan who was holding a firearm. Meehan raised the firearm and shot Detective Ferency. Detective Ferency was able to return fire to defend himself but later died.
Shortly thereafter, an FBI Special Agent ran out of the building and engaged Meehan in a gun battle. Despite being shot twice, Meehan got into his truck and fled the scene. Meehan was located at the Vigo County Regional Hospital where he was treated for his gunshot wounds. A firearm was recovered from Meehan’s pickup truck along with three Molotov Cocktails and additional ammunition.
“An attack on law enforcement is an attack on us all, said Acting U.S. Attorney John E. Childress. “As citizens of this county, we enjoy on a daily basis the security and protection provided by the men and women of law enforcement. That security and protection is all the more precious because it is at times paid for with the lives of those who have chosen to protect us. The selfless dedication exhibited by Detective Ferency throughout his career and his tragic death yesterday is yet another example of why we all owe our respect and gratitude to the members of law enforcement. On behalf of the Department of Justice I would like to extend my deepest sympathies to Detective Ferency’s family and his many colleagues.”
“I want to offer the deepest sympathy of the FBI to the family, friends and colleagues of Detective Ferency. Greg was a valued member of our FBI family and had worked side by side with us as a Task Force Officer since 2010 in our Terre Haute office,” said FBI Indianapolis Special Agent in Charge Paul Keenan. “We will work day and night to carefully examine the circumstances of the shooting and we are dedicated to honoring Greg’s memory through a meticulous investigation.”
Meehan is charged with the murder of a federal agent. If convicted, Meehan faces up to life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Federal Bureau of Investigation is investigating the case.
Assistant United States Attorneys Kate Oliver and Barry Glickman are prosecuting the case.
A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
El Cajon Resident Pleads Guilty to Selling Counterfeit Pills that Caused Death of Nineteen-Year-OldRead the Press Release
Assistant U. S. Attorneys Michael A. Deshong and Adam Gordon (619) 546-9290
NEWS RELEASE SUMMARY—July 8, 2021
SAN DIEGO—Olatunde James Temitope Akintonde of El Cajon pleaded guilty in federal court today, admitting that he sold fentanyl-laced pills that caused the death of a nineteen-year-old Santee man, identified in court records as S.J.G., in March of 2019.
According to his plea agreement, Akintonde admitted that he sent messages to S.J.G. through social media on February 28, 2019, to coordinate the sale of what the victim believed to be oxycodone pills. Later that evening, Akintonde delivered two counterfeit oxycodone pills laced with fentanyl to S.J.G. After the meeting, Akintonde sent additional messages to S.J.G. through social media warning that he should only take one of the pills because they were “strong.” Akintonde further admitted in his plea agreement that the pills he gave to S.J.G. caused his death. According to other filings in the case, S.J.G. died in his home sometime in the evening of February 28, 2019 or the early morning hours of March 1, 2019.
“The epidemic of counterfeit fentanyl-laced pills poisoning our community has raised the stakes of drug dealing considerably,” said Acting U.S. Attorney Randy Grossman. “Dealers who ignore these risks and carry on with their deadly trade will be pursued and prosecuted.” Grossman praised prosecutors Michael Deshong and Adam Gordon as well as the Drug Enforcement Administration’s Narcotics Task Force Team 10, officials from the San Diego Sheriff’s Department and the San Diego County District Attorney’s Office for their excellent work on this case.
“As fentanyl-related overdose deaths continue to rise at an alarming rate in San Diego County and throughout the United States, DEA is determined to track down these drug dealers and bring them to justice,” said DEA Special Agent in Charge John W. Callery.
Akintonde is scheduled to be sentenced on September 24, 2021 at 10 a.m. before U.S. District Judge Janis L. Sammartino.
This case is the result of ongoing efforts by the U.S. Attorney’s Office, the San Diego County District Attorney’s Office and the Drug Enforcement Administration to investigate and prosecute the distribution of dangerous illegal drugs—fentanyl, in particular—that result in overdose deaths. The Drug Enforcement Administration created Narcotics Task Force Team 10 as a response to the increase in overdose deaths in San Diego County. Agents from Team 10 contributed to the investigation into S.J.G.’s death.
DEFENDANTS Case Number 21cr1178-JLS
Olatunde James Temitope Akintonde Age: 23 El Cajon, CA
SUMMARY OF CHARGES
Distribution of Fentanyl – Title 18, United States Code, Section 841(a)(1)
Maximum penalty: Twenty years in prison
AGENCY
Drug Enforcement Administration
San Diego Sheriff’s Department
San Diego County District Attorney’s Office
Drug Trafficker with Firearms Sentenced to 15 Years in Federal PrisonRead the Press Release
DENVER – The U.S. Attorney’s Office for the District of Colorado announces that defendant Anthony Eli Lucero, a/k/a “Blade,” age 42, of Denver, was sentenced to 15 years in federal prison after pleading guilty to possession of methamphetamine with intent to distribute in violation of 21 U.S.C. § 841. The sentence will be followed by 10 years of federal supervised release. The Court also ordered the forfeiture of approximately $35,873 in seized U.S. currency as well as 9 firearms, high-capacity magazines, and over 100 rounds of assorted ammunition
According to the plea agreement, on May 4, 2018, state and federal narcotics investigators were preparing to execute a search warrant at a residence located on Lowell Blvd., in Denver. Inside, Anthony Lucero sold methamphetamine and heroin to a man later identified as Christopher Chavez. Denver Police stopped Chavez and other individuals in a Cadillac a short distance from the residence. The police recovered approximately two pounds of methamphetamine from the backseat of the Cadillac and approximately 14 grams of heroin and 27 grams of methamphetamine from Chavez himself. All the drugs had come from defendant Lucero.
A few minutes later, the Denver Police Department’s SWAT team executed the search warrant. After breaking through a barricaded front door, the officers found Lucero inside. Investigators also found and seized distribution amounts of narcotics, 9 firearms (including AK-47 style rifles with high capacity magazines), ammunition, body armor, and scales. In total, investigators recovered over 2 kilograms of methamphetamine, 196 grams of heroin, 576 grams of cocaine, and 249 grams of crack cocaine.
Lucero is the last of several individual to be sentenced in connection with this case. Last month, co-defendant Christopher Chavez was sentenced to 102 months’ imprisonment (8.5 years) for his role. The Court previously sentenced additional co-defendants in relation to this investigation and prosecution, including Donovan Roybal, who was sentenced to a total term of 70 months’ imprisonment, and Jonathan James Lovato, who was sentenced to serve 72 months’ imprisonment.
“The U.S. Attorney’s Office will continue to work with our law enforcement partners to aggressively prosecute drug dealers, especially those, like Mr. Lucero, who possess guns in connection with their drug trade,” said Acting U.S. Attorney Matt Kirsch
“The DEA is very pleased with this sentencing,” said DEA Denver Field Division Special Agent in Charge Deanne Reuter. “Lucero is another example of a heavily armed criminal, distributing poison in our communities who is being held accountable.”
“This case demonstrates the commitment that ATF has to work in partnership with our law enforcement partners. We will continue to actively pursue any individuals that bring violence into our neighborhoods,” said ATF Special Agent in Charge David Booth.
United States District Court Judge Raymond P. Moore sentenced Anthony Lucero on July 6, 2021.
The Denver Police Department, the Lakewood Police Department, West Metro Drug Task Force, U.S. Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms and Explosives all participated in this investigation and prosecution. Assistant United States Attorneys Cyrus Chung and Bradley Giles handled the prosecution of the case.
Case number: 18-cr-00236-RM
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Disbarred Attorney Pleads Guilty to Securities Fraud in Connection with Fraudulent Opinion Letter SchemeRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced today that RICHARD RUBIN, a disbarred attorney, pled guilty in Manhattan federal court to securities fraud. RUBIN’s guilty plea results from his involvement in a fraudulent scheme in which he falsely represented that he was a licensed attorney in signing certain attorney opinion letters, which enabled the relevant securities to be sold to the investing public. In addition, RUBIN engaged in the fraudulent scheme with Thomas Craft, a licensed attorney, who falsely represented that he had undertaken certain legal work in connection with other attorney opinion letters, when in truth and in fact, RUBIN, despite his disbarment, had undertaken all of the legal work attested to in the letters.
RUBIN was arrested on December 2, 2020, and pled guilty today before U.S. District Judge Paul A. Engelmayer.
Manhattan U.S. Attorney Audrey Strauss said: “As he admitted today, Richard Rubin falsely represented in attorney opinion letters that he was a licensed attorney, giving false comfort to the investing public that an attorney, acting as a gatekeeper, had performed certain work in connection with securities. Now he stands guilty of securities fraud and awaits sentencing for his crime.”
As alleged in the Indictment filed against RUBIN, as well as his co-conspirator Craft,[1] and other statements made in open court:
Securities Registration Requirements and SEC Rule 144
Under the Securities Act of 1933 (the “Securities Act”), anyone seeking to sell a security must first register that security unless an exemption applies. See 15 U.S.C. § 77e. This registration requirement protects investors by promoting disclosure of information pertinent to informed investment decisions.
A company registering new securities must complete a registration statement known as U.S. Securities and Exchange Commission (“SEC”) Form S-1 before the securities can be listed on a national exchange and publicly traded. SEC Form S-1 contains information pertinent to informed investment decisions, including, among other things, information on the company’s business operations, the company’s financial condition, and a description of the company’s management. In connection with SEC Form S-1, the company is required to file an opinion letter (the “Form S-1 Opinion Letter”) from a licensed attorney attesting that the statements in the SEC Form S-1 are true and correct. A company’s SEC Form S-1 and the Form S-1 Opinion Letter are available to the public on the SEC’s Electronic Data Gathering, Analysis, and Retrieval System (“EDGAR”).
“Restricted securities” refers to securities acquired in unregistered, private sales from the issuing company or from an affiliate of the issuer, with “affiliate” meaning a person who directly or indirectly controls, or is controlled by, or is under common control with, an issuer. Affiliates can also include an executive officer or a director or large shareholder who is in a relationship of control with respect to the issuing company. Restricted securities bear a legend indicating that the securities may not be resold in the marketplace unless they are registered with the SEC or are exempt from such registration requirements.
Securities Act Rule 144 (“Rule 144”), codified at 17 C.F.R. § 230.144, provides a registration exemption for restricted securities. Specifically, it permits the public resale of restricted securities if a number of conditions are met, including conditions relating to how long the securities are held, the way in which they are sold, the public information available to investors about the securities, and the amount that can be sold at any one time. Pursuant to Rule 144, however, even if these conditions are met, the sale of restricted securities to the public is still not permitted until a transfer agent removes the “restricted” legend from the security.
The term “transfer agent” refers to a company that keeps track of individuals and entities that own the stocks and bonds of a given company that has publicly traded securities. Among other things, transfer agents issue and cancel certificates to reflect changes in ownership, serve as the company’s intermediary for payouts, exchanges, or mailings, and handle lost, destroyed, or stolen certificates. Transfer agents also, when appropriate, remove the “restricted” legend from securities.
A Rule 144 Seller’s Representation Letter, or “Seller’s Representation Letter,” is a letter from an affiliate seller (that is, a seller in a relationship of control with the issuer, such as an executive officer, a director, or a large shareholder) of restricted securities to a transfer agent to establish certain facts underlying a legal opinion that the securities at issue can be sold publicly pursuant to Rule 144. The issuer’s consent to the removal of a legend typically comes in the form of an opinion letter from the issuing company’s attorney, the Seller’s Representation Letter, indicating that the securities at issue satisfy the conditions of Rule 144. Seller’s Representation Letters contain multiple attestations that are required by law prior to the restricted legend being removed. The transfer agent relies on the Seller’s Representation Letter in determining whether to remove the restricted legend from a security.
Over-the-Counter Securities and OTC Markets Group
Over-the-counter (“OTC”) securities are securities that are traded between two counterparties outside of a formal securities exchange. OTC Markets Group (“OTC Markets”) is a securities market headquartered in New York, New York, that provides price and liquidity information for OTC securities.
OTC Markets requires issuers seeking to be listed on OTC Markets to hire a licensed attorney to review company records and submit a letter to OTC Markets (an “OTC Markets Attorney Letter”) regarding whether information publicly disclosed by the issuer is in compliance with the condition in SEC Rule 144 governing the public information available to investors about the issuer. OTC Markets relies on the OTC Markets Attorney Letter to determine whether an issuer’s security may be listed on OTC Markets. OTC Markets Attorney Letters are available to the public on the OTC Markets website.
The Scheme to Defraud
From at least in or about 2011 through at least in or about September 2018, RUBIN and Craft participated in a fraudulent scheme in which Craft falsely represented that he had undertaken certain legal work in connection with Seller’s Representation Letters, OTC Markets Attorney Letters, and S-1 Opinion Letters, all of which enabled the relevant securities to be sold to the investing public. In addition, in connection with the securities of certain issuers, Rubin, the defendant, falsely represented that he was an attorney in Seller’s Representation Letters and OTC Markets Attorney Letters, all of which enabled the relevant securities to be sold to the investing public. The false representations were in letters pertaining to over a dozen companies.
RUBIN, 79, of Brooklyn, New York, pled guilty to one count of securities fraud in violation of 15 U.S.C. §§ 78j(b) and 78ff, 17 C.F.R. § 240.10b-5, and 18 U.S.C. § 2, which carries a maximum sentence of 20 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
RUBIN will be sentenced on November 2, 2021.
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Ms. Strauss praised the investigative work of the Office of Inspector General of the SEC and also thanked the SEC Division of Enforcement for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Jordan Estes is in charge of the prosecution.
The charges against Craft are pending, and he is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Delano Drug Suppliers Indicted for Methamphetamine, Fentanyl DistributionRead the Press Release
FRESNO, Calif. — A federal grand jury returned a four-count indictment today against Jesus Manuel Morfin Villa, 27, of Delano, charging him with distribution of methamphetamine and distribution of fentanyl, charging Omar Vayas Duran, 41, of Delano, with distribution of fentanyl, and charging both Villa and Duran with conspiracy to distribute and to possess with intent to distribute methamphetamine and fentanyl, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents over the course of 11 months, Villa distributed methamphetamine on one occasion, distributed fentanyl with Duran on another occasion, and distributed both methamphetamine and fentanyl on yet another occasion.
This case is the product of an investigation by the Drug Enforcement Administration. Assistant U.S. Attorney Laura Jean Berger is prosecuting the case.
If convicted, Villa and Duran face a maximum statutory penalty of life in prison and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Darkweb Drug Trafficker Arrested in Operation DisrupTor Sentenced to 6.5 Years in PrisonRead the Press Release
A darkweb cocaine and heroin trafficker has been sentenced to 6 ½ years in federal prison for drug conspiracy, announced U.S. Attorney for the Northern District of Texas.
Aaron Brewer – a 39-year-old charged under Operation DisrupTor, a coordinated international effort to disrupt opioid trafficking on the Darknet – pleaded guilty in December to conspiracy to possess with intent to distribute a controlled substance. He was sentenced Thursday to 78 months by Chief U.S. District Judge Barbara M.G. Lynn, who also ordered the defendant to forfeit $50,000 in drug proceeds.
According to plea papers, Mr. Brewer admitted he created darkweb market vendor accounts in order to sell cocaine, heroin, and other controlled substances online.
Mr. Brewer’s customers paid him in cryptocurrency, typically bitcoin, and frequently used aliases for shipping. After receiving payment, Mr. Brewer used the U.S. Mail and other shipping services to transmit controlled substances to customers in North Texas and across the country.
In March 2020, law enforcement discovered a ledger linking controlled substances orders with tracking numbers inside his apartment.
Mr. Brewer later admitted that over an 11-monthe period, he dealt more than 4,000 grams of cocaine and more than 80 grams of black tar heroin, then used the more than $50,000 in proceeds of the illegal activity to pay his mortgage.
The U.S. Postal Inspection Service and the Federal Bureau of Investigation’s Dallas Field Office conducted the investigation. Assistant U.S. Attorney Sid Mody is prosecuting the case.
Operation DisrupTor actions have resulted in the arrest of 179 Darknet drug traffickers and fraudulent criminals who engaged in tens of thousands of sales of illicit goods and services across the United States and Europe. The operation also resulted in the seizure of over $6.5 million; approximately 500 kilograms of drugs worldwide (including approximately 275 kilograms of drugs in the U.S.); and 63 firearms.