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5 August 2021
Jessup Correctional Institution Inmate Sentenced to More Than Five Years in Federal Prison for Racketeering Conspiracy Within Maximum Security PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Theodore D. Chuang sentenced Darnell Smith, a/k/a “Hook”, age 41, of Baltimore, Maryland to five years and three months in federal prison, to be served consecutive to Smith’s current state sentence, followed by three years of supervised release, for a racketeering conspiracy at the Jessup Correctional Institution (JCI). The conspiracy included former correctional officers, inmates, and outside “facilitators” who paid bribes to correctional officers to smuggle contraband, including narcotics, alcohol, tobacco, and cell phones into the prison.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; and Secretary Robert L. Green, of the Maryland Department of Public Safety and Correctional Services.
According to his plea agreement, between 2017 and the time of his arrest in 2020, Smith was an inmate at the Jessup Correctional Institution (JCI), a maximum-security prison located near Jessup, Maryland. While imprisoned at JCI, Smith agreed with others to participate in the conduct of JCI’s affairs through a pattern of racketeering activity. The racketeering acts at the center of this conspiracy were the distribution of controlled substances, bribery, and money laundering.
Specifically, while an inmate at JCI, Smith conspired with JCI Correctional Officer (CO) Chanel Pierce, outside facilitator Chaz Chriscore, the mother of his children (co-defendant Satya Hall) and others to smuggle controlled substances and other contraband items into JCI. Smith also distributed the controlled substances to other inmates. As part of the endeavor, Smith engaged in a romantic relationship with CO Pierce and bribed her to collect, package, and smuggle contraband into JCI. CO Pierce, Chriscoe, and Hall were all charged alongside Smith in this 15-defendant indictment.
As stated in his plea agreement, Smith possessed a contraband cell phone, which enabled him to communicate with CO Pierce, Hall, and Chriscoe to further the smuggling operation. Smith used the contraband phone to discuss the types and quantities of controlled substances that were to be smuggled into JCI, facilitate the distribution of drugs within JCI, and coordinate bribe payments that were being made to CO Pierce. Smith also used the cell phone to carry out his romantic relationship with CO Pierce.
On the morning of May 25, 2019, Chriscoe met CO Pierce at her home and provided her with several balloons filled with controlled substances to smuggle into JCI. CO Pierce then went to work and was stopped by law enforcement as she entered the facility and searched. Law enforcement recovered from CO Pierce’s person multiple packages containing contraband, including a balloon filled with Suboxone. A subsequent search of CO Pierce’s home revealed several more balloons filled with contraband that she intended for Smith and others to smuggle into JCI.
A total of nine defendants, including Smith, Chriscoe, former CO Pierce, and Hall, have pleaded guilty to their roles in the racketeering conspiracy. Six defendants are still facing charges. Former CO Chanel Pierce, age 28, of Pikesville, Maryland, pleaded guilty to the racketeering conspiracy and is awaiting sentencing. Co-defendant inmates Page Boyd, age 37, and Marshall Hill, a/k/a “Boosie,” age 29, pleaded guilty to their roles in the racketeering conspiracy and were each sentenced to four years in federal prison. Co-defendant facilitators Sataya Hall, age 38, of Baltimore, and Trinesse Butts, age 37, of Parkville, Maryland also pleaded guilty to the racketeering conspiracy and were sentenced to six months in federal prison and a year and a day in federal prison, respectively.
At sentencing, Judge Chuang ordered that Smith’s federal sentence be served consecutive to Smith’s state sentence, of which several years remain.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Acting United States Attorney Jonathan F. Lenzner expressed appreciation to the Department of Public Safety and Correctional Services, whose staff initiated the JCI investigation and have been full partners in this investigation. Mr. Lenzner also commended the FBI and the Department of Public Safety and Correctional Services for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Lauren E. Perry and Christopher M. Rigali, who prosecuted this case.
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Jamaican National Sentenced for Stealing more than $970,000 in Lottery ScamRead the Press Release
DENVER – Jamaican national Leonard Luton of Brooklyn, New York was sentenced yesterday to 108 months in federal prison, followed by 3 years supervised release and $881,477.41 in restitution for his role in a lottery scheme that targeted an elderly woman in Estes Park, Colorado.
According to court documents, Luton and another Jamaican national conspired to convince an elderly victim that she had won a $2.8 million dollar lottery and a Mercedes Benz but needed to pay thousands of dollars in “fees” in order to receive her winnings. During the scam, the victim was instructed to mail packages of cash and cashier’s checks, in addition to six iPhones, to the addresses of Luton’s friends.
On two occasions, Luton made trips to the victim’s home in Estes Park to pick up packages of cash. During the first trip in October of 2018, one of Luton’s co-conspirators went to the victim’s door at 1:30 a.m., identified himself as an FBI agent, showed her a fake FBI badge, and directed her to hand over a package containing $65,000 in cash. On the second trip in January of 2019, Luton was arrested at the victim’s residence when he arrived to pick up more cash. Upon his arrest, Luton was in possession of one of the iPhones purchased by the victim. In total, the victim was scammed out of more than $970,000.
“Lottery scams are just one way that fraudsters prey on the elderly and vulnerable victims,” said Acting U.S. Attorney Matt Kirsch. “Together with our law enforcement partners, we are working to protect the elderly and to make scammers like Luton face justice.”
Luton was sentenced by United States District Court Judge Christine M. Arguello, after being convicted on February 13, 2020 of one count of conspiracy to commit mail fraud and eight counts of aiding and abetting mail fraud. The Court also entered an order of forfeiture in the amount of $484,123.16 and imposed a $900 special assessment fee.
"This sentence is a significant step toward justice for the elderly victim of Mr. Luton's self-serving greed and deception. The FBI is committed to combating those who prey on vulnerable members of our community," said FBI Denver Special Agent in Charge Michael Schneider. "The FBI extends its appreciation to the Larimer County Sheriff’s Office, Estes Park Police Department, and the U.S. Attorney's Office for their collaboration on this investigation."
This case was investigated jointly by the FBI and the Estes Park Police Department with assistance from the Larimer County District Attorney’s Office.
Assistant United States Attorneys Martha Paluch and Sarah Weiss prosecuted this matter.
CASE NUMBER: 19-cr-00098
Inmate Charged with Possessing A Prohibited ObjectRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jose Martinez, age 54, an inmate at Federal Correctional Institute-Schuylkill (FCI Schuylkill), Minersville, Pennsylvania, was charged on August 4, 2021, by criminal information for unlawfully possessing a prohibited object.
According to Acting United States Attorney Bruce D. Bandler, the information alleges that on July 18, 2021, Martinez was found to be in possession of prohibited objects including a Samsung cellphone, charging cable, charging adapter, and a pair of Sony earbuds.
The matter is being investigated by the Federal Bureau of Prisons. Assistant United States Attorney James Buchanan is prosecuting the case.
Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is one year imprisonment. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Houma Man Sentenced for Conspiring to Distribute Heroin, Cocaine, and MethamphetamineRead the Press Release
NEW ORLEANS, LA – United States District Judge Sarah S. Vance sentenced DARREKA BOYKINS, age 44, of Houma, Louisiana, today to 73 months in the Bureau of Prisons for violating the Federal Controlled Substances Act, Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(B), and 846, announced U.S. Attorney Duane A. Evans.
According to the court records, BOYKINS conspired to possess with the intent to distribute and to distribute 100 grams or more of a mixture or substance containing a detectable amount of heroin, a quantity of a mixture or substance containing a detectable amount of cocaine, and a quantity of a mixture or substance containing a detectable amount of methamphetamine. BOYKINS admitted to being captured on a Title III wire intercept.
District Judge Vance sentenced BOYKINS to the 73 months imprisonment to be followed by four years of supervised release. She also ordered that he pay a mandatory $100 special assessment fee.
This case was investigated by Special Agents of the Drug Enforcement Administration (DEA). The prosecution is being handled by Assistant United States Attorney David Haller.
Gas Station Manager Arrested and Charged with Billing Fraudulent Fuel Charges on Amtrak VehiclesRead the Press Release
NEWARK, N.J. – A New Jersey gas station manager was charged today in connection with entering fraudulent charges on fuel credit cards assigned to at least four Amtrak vehicles, Acting U.S. Attorney Rachael A. Honig announced.
Umer Hassan Mir, 39, of South Amboy, is charged by complaint with knowingly and intentionally stealing and converting to his own use approximately $9,600 in money of a department or agency of the United States. He is also charged with making false statements to federal law enforcement. Mir appeared by videoconference this afternoon before U.S. Magistrate Judge Cathy L. Waldor and was released on $20,000.
According to the complaint:
From July 29, 2019, through Aug. 3, 2021, while working as a manager and attendant at a Delta gas station, in Metuchen, New Jersey, Mir caused numerous fraudulent fuel charges to be entered on fuel credit cards leased by the General Services Administration (GSA) and assigned to Amtrak vehicles. Amtrak employees using GSA vehicles are instructed to purchase regular unleaded fuel and provide accurate odometer readings when they are fueling their assigned vehicles with their fuel credit cards. The fraud was initially discovered when a GSA loss prevention technician discovered dozens of fuel credit card charges that exceeded the associated Amtrak vehicle’s fuel tank capacity, along with premium fuel transactions, and non-sequential odometer entries. Additional fuel credit cards assigned to Amtrak vehicles were discovered to have been compromised by fraudulent fuel charges at the Delta gas station.
The fraudulent charges were entered at the Delta gas station by Mir, who would manually enter information regarding fuel credit cards collected during legitimate fuel transactions electronically into the point-of-sale terminal. Immediately following certain false fuel transactions, Mir withdrew cash in the amount of the fraudulent transaction from the gas station’s cash register.
Mir made false statements to law enforcement when questioned about his presence at the gas station during one of the recent fraudulent transactions.
The theft charge carries a maximum potential penalty of 10 years in prison while the false statement charge carries a maximum potential penalty of five years. Each charge carries a maximum $250,000 fine.
Acting U.S. Attorney Honig credited special agents of the Amtrak, Office of Inspector General, Eastern Region, under the direction of Special Agent in Charge Michael J. Waters; the General Services Administration, Office of Inspector General, Northeast Field Investigations Division, under the direction of Special Agent in Charge Joseph Dattoria; and inspectors with the U.S. Postal Inspection Service, Newark Division, under the direction of Acting Inspector in Charge Rodney M. Hopkins, with the investigation leading to the charges. She also thanked the Metuchen Police Department, under the direction of Chief of Police David Irizarry, for its assistance.
The government is represented by Senior Trial Counsel Leslie Faye Schwartz, of the U.S. Attorneys’ Special Prosecutions Division and Assistant U.S. Attorney Cari Fais, Chief of the Opioid Abuse Prevention and Enforcement Unit.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Fox Chapel Cardiologist Sentenced to 78 Months in Prison for Health Care Fraud Scheme Involving More Than $13 Million of Insurance BillingsRead the Press Release
PITTSBURGH – A resident of Fox Chapel, Pennsylvania, was sentenced in federal court following his conviction at trial on two counts of health care fraud, Acting United States Attorney Stephen R. Kaufman announced today.
United States District Judge David S. Cercone sentenced Samirkumar J. Shah, 58, to 78 months of imprisonment followed by three years of supervised release.
“Dr. Shah risked the health of his patients so he could make millions of dollars through unnecessary procedures, and lied and fabricated records for years to perpetuate his fraud scheme,” said Acting U.S. Attorney Kaufman. “This prosecution demonstrates our commitment to protect the healthcare system from fraud and sends a clear message of deterrence to others who might consider similar criminal behavior.”
“Today's sentence holds Mr. Shah accountable for his appalling actions,” said FBI Pittsburgh Special Agent in Charge Mike Nordwall. “Mr. Shah used his position as a doctor to illegally profit from a healthcare program paid for by taxpayers. Fraud of this magnitude will not be tolerated. The FBI, along with our partners, are committed to making sure the integrity of our health care benefit programs remains intact and will always work diligently to investigate and hold accountable those who think they can steal from the system.”
“Rather than upholding the oath he swore and providing care for patients who trusted him, this defendant misled patients and drained critical Medicaid funds from families who needed it,” said Attorney General Josh Shapiro. “We will not let anyone put their patients’ lives at risk for a profit.”
Shah was convicted on June 14, 2019, following an eight-day jury trial in Pittsburgh. The evidence introduced at trial established that between 2008 and 2013, Shah, a practicing cardiologist, submitted fraudulent claims to private insurance plans—Highmark Blue Cross Blue Shield (Highmark), UPMC Health Plan (UPMC)—as well as government insurance programs—Medicare and Medicaid (through Gateway Health Plan)—for an outpatient treatment known as external counterpulsation, or ECP. ECP involves the use of a specialized bed equipped with pressure cuffs, which exert pressure to patients’ lower extremities as a means to increase blood flow to the heart. The evidence at trial further demonstrated that insurers only reimbursed for ECP treatments of patients who suffered from disabling angina—or significant chest pain caused by decreased blood flow to the heart—and only when a physician supervised the treatment.
In total, Shah purchased 25 beds and offered ECP to patients at more than 18 locations in Western Pennsylvania, Ohio, New York, and Florida. The evidence also showed that, in order to acquire new patients, Shah advertised ECP as “the Fountain of Youth,” claimed that it made patients “younger and smarter,” and offered the treatment for a range of ailments other than disabling angina, including obesity, migraines, high blood pressure, low blood pressure, diabetes, and erectile dysfunction. After signing up new patients, including many patients who never experienced chest pain, Shah instructed his employees to indicate that every patient had disabling angina on billing sheets that were used to support false insurance claims. In certain instances, Shah never met patients for whom he billed for ECP treatments.
The evidence also showed that patients were required to undergo certain diagnostic ultrasounds as a precautionary measure prior to starting ECP—in part to rule out blood clots that could cause a stroke or heart attack during the treatment. Nevertheless, witness testimony established that Shah did not review any of the ultrasound imagery before approving new patients to begin ECP, placing his patients at risk of serious injury or even death.
Likewise, contrary to health insurance requirements, ECP treatments routinely occurred while neither Shah nor any other medical doctor was present at his various locations. On one such occasion, a patient experienced an adverse event during his ECP treatment and had to be transported via ambulance to the hospital.
In addition to billing for ECP treatments that were not medically necessary and were not provided under direct physician supervision, Shah also double-billed insurers by using a so-called “bundled” ECP code, which accounted for and included payment for various incidental procedures, and then separately submitting claims for the same included procedures. The evidence at trial further established that during reviews initiated by various insurers, Shah routinely submitted fabricated patient files and made false statements concerning his practice, his patient population, his record keeping, and his compliance with applicable coverage guidelines.
During the period of Shah’s scheme, the evidence showed that he submitted ECP-related claims for Medicare Part B, UPMC, Highmark, and Gateway beneficiaries, totaling more than $13 million and that he received reimbursement payments in excess of $3.5 million.
As part of his sentence, Shah must pay restitution totaling over $1.2 million to the victim insurers.
Shah failed to appear for his original sentencing date on July 14, 2021, and he has been in custody since the following day after Judge Cercone issued a warrant for his arrest.
Assistant United States Attorneys Eric G. Olshan and Nicole Vasquez Schmitt prosecuted this case on behalf of the government.
The Federal Bureau of Investigation and Pennsylvania Office of Attorney General, Medicaid Fraud Control Unit, conducted the investigation that led to the conviction of Shah.
Four Defendants Charged with Federal Drug or Firearm Violations in Probe Centered on North Suburbs of ChicagoRead the Press Release
CHICAGO — A joint federal and local criminal investigation in the far north suburbs of Chicago has resulted in federal drug or firearm charges against four individuals.
The alleged drug trafficking and illegal firearm possession occurred last winter in Waukegan and Beach Park, according to indictments unsealed this week in U.S. District Court in Chicago. According to the charges, ROBERT SPURLOCK, 36, of Beach Park, distributed cocaine and illegally possessed a loaded handgun with an obliterated serial number; KURT NASH, JR., 34, of Milwaukee, Wisc., distributed cocaine on two occasions; RAFAEL ALVAREZ-MURILLO, 27, of Waukegan, distributed methamphetamine and illegally possessed a handgun; and JASON NAJERA-PRADO, 31, of Waukegan, illegally possessed two handguns. Spurlock, Alvarez-Murillo, and Najera-Prado were previously convicted of felonies and were not lawfully allowed to possess firearms.
Spurlock, Nash, and Najera-Prado pleaded not guilty during arraignments Wednesday in federal court in Chicago. Arraignment for Alvarez-Murillo will be scheduled at a later date. Six other individuals were charged in state court as part of this investigation.
The federal indictments were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Kristen de Tineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; and John Idleburg, Lake County Sheriff. Assistant U.S. Attorneys Shawn McCarthy and Alejandro Ortega represent the government in the federal cases.
This investigation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies.
The public is reminded that indictments contain only charges and are not evidence of guilt. The defendants are 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 reasonable sentences under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
Fort Atkinson Man Sentenced to 15 Years for Distributing Child PornographyRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, Acting United States Attorney for the Western District of Wisconsin, announced that Christopher Cahill, 42, Fort Atkinson, Wisconsin, pleaded guilty and was sentenced yesterday by U.S. District Judge James Peterson to 15 years in federal prison for distributing child pornography. This term of imprisonment is to be followed by a life-time period of supervised release.
In May 2020, Cahill emailed himself a sexually explicit video of a minor. In sentencing him to 15 years, Judge Peterson found as an aggravating factor Cahill’s two prior convictions for sex offenses against juveniles.
The charge against Cahill was the result of an investigation conducted by the Wisconsin Department of Justice Division of Criminal Investigation, the Cottage Grove Police Department, the Fort Atkinson Police Department, and with the assistance of the Jefferson County District Attorney’s Office. The prosecution of the case has been handled by Assistant U.S. Attorney Elizabeth Altman.
Former Tangipahoa Parish Sheriff’s Office Employee Sentenced for Role in Bribery SchemeRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that SONJA DYSON EVANS, 59, of Kentwood, Louisiana, was sentenced on August 4, 2021 by the Honorable Ivan L.R. Lemelle, United States District Court Judge, to a five (5) year term of probation for using an interstate facility with intent to carry on unlawful activity. EVANS was also ordered to pay a $5,000 fine, a $100 special assessment and to perform 100 hours of community service.
EVANS pleaded guilty in March 2021. According to court records, at the time of the offense, EVANS was employed by the Tangipahoa Parish Sheriff’s Office as a Criminal Records Division Supervisor. From January 2016 through January 2017, EVANS, along with a co-defendant, Shawanda Dove, used cell phones to carry out a bribery scheme, in violation of 18 U.S.C. §§ 1952(a)(3) and 2. EVANS solicited and accepted bribe money from Dove in exchange for fraudulent bonds used for the release of incarcerated persons.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Tracey Knight is in charge of the prosecution.
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Former Springfield Man Pleads Guilty to Charges Related to Sham MarriageRead the Press Release
BOSTON – A former Springfield man pleaded guilty yesterday in connection with entering into a sham marriage in order to obtain immigration benefits for another individual.
Phu Thanh Huynh, 33, pleaded guilty to one count each of conspiracy, immigration fraud and making false statements. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Nov. 22, 2021. Huynh was indicted in October 2019.
On or about Sept. 28, 2013, Huynh married a Vietnamese national, referred to as Jane Doe, solely for the purpose of obtaining immigration benefits for Doe. Huynh and Doe never lived together after getting married. In or about late 2013 or early 2014, a co-conspirator paid Huynh $20,000 in cash for engaging in the sham marriage. On approximately Nov. 7, 2013, Huynh filed a false petition with the U.S. Citizenship and Immigration Services (USCIS) to classify Doe as his spouse for immigration purposes. On approximately May 3, 2017, Huynh made various false statements to a USCIS officer concerning his marriage to Doe, including that they spoke to each other almost every day.
The charges of conspiracy and making false statements each provide for a sentence of up to five years in prison, up to three years of supervised release and a fine of up to $250,000. The charge of immigration fraud 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 based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston; and Jonathan Davidson, Special Agent in Charge of U.S. Department of State’s Diplomatic Security Service, Boston Field Office made the announcement. Assistant U.S. Attorney Steven H. Breslow of Mendell’s Springfield Branch Office is prosecuting the case.
Former South Dakota Attorney Sentenced for Wire Fraud, Money Laundering, and Bank FraudRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Vale, South Dakota, woman convicted on two counts of Wire Fraud, two counts of Money Laundering, and one count of Bank Fraud, was sentenced on August 2, 2021, by Judge Jeffrey L. Viken, U.S. District Court.
Rena Hymans, age 48, was sentenced to 30 months in federal prison, ordered to pay a $500 special assessment to the Federal Crime Victims Fund, and $163,969.37 in restitution.
Hymans was indicted for the charges by a federal grand jury August 20, 2020. She pleaded guilty on January 27, 2021. Hymans, in her capacity as a South Dakota licensed attorney, transferred unearned money from her client trust account – where she was required to hold it for the benefit of a client - to her own business and personal accounts, and then used the money for her personal benefit between February 2014 and January 2020.
“IRS-CI will continue to investigate those who take advantage of their position of trust while knowingly taking advantage of their clients,” said Tyler Hatcher, Special Agent in Charge of IRS-Criminal Investigation’s St. Louis Field Office.
The investigation was conducted by the Internal Revenue Service – Criminal Investigation, the Federal Bureau of Investigation, and the South Dakota Division of Criminal Investigation. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Hymans was ordered to self-surrender to the custody of the U.S. Marshals Service on August 24, 2021.
Former Roseville Firearms Dealer Sentenced to 4 Years in Prison for Using Peace Officers’ Identities to Obtain and Sell New Off-Roster FirearmsRead the Press Release
SACRAMENTO, Calif. — Joseph John Deaser IV, 51, of Arizona, was sentenced today to four years in prison for aggravated identity theft and the illegal sale of firearms by a federally licensed dealer in violation of state law, Acting U.S. Attorney Phillip A. Talbert announced.
Under state law, California has an approved roster of firearms that may be sold to the public. A Federal Firearms Licensee is required to make sure any handgun sold is on the approved roster. There is an exemption, however, that permits licensed dealers to sell “off-roster” firearms, or firearms that do not appear on the approved roster, to sworn peace officers. Peace officers who own non-roster firearms may generally sell them to the public in a private sale, as long as the sale is brokered by a Federal Firearms Licensee.
According to court documents, Deaser was a federally licensed firearm dealer who owned and operated Capital Gun Club, a members-only gun club in Roseville, California. Between December 2014 and April 2018, Deaser circumvented California’s law by conducting at least 50 straw purchases of new off‑roster firearms using the names and personally identifiable information (PII) of six peace officers that he had obtained through legitimate firearm transactions. By falsely reporting sales to peace officers, Deaser obtained new “off-roster” firearms registered to peace officers that he then sold to members of his private gun club, who could not have otherwise purchased the firearms.
In order to complete many of the transactions, Deaser completed and signed federal and state firearm transaction forms that the purchaser was required to complete using an officer’s identity as the purchaser. Deaser also placed his finger print — almost always his middle finger — on the state firearm transaction forms in the box designated for the “Purchaser’s Right Thumb Print.”
Publicly, Deaser was an advocate for gun safety and universal background checks, who testified on several occasions before federal and state legislatures. In imposing the sentence, Judge Nunley found that Deaser had abused his position of trust as a Federally Licensed Firearms dealer and remarked, “I think it’s totally acceptable to, on the one hand, look at the things he’s done, but on the other hand, look at the life he was living behind the scenes. You know … on the one hand, he was … advocating for sensible gun laws before Congress, before local governments, before organizations, and on the other side of it, he was trying to circumvent those very same gun laws.”
“Firearms trafficking is a primary focus of ATF as one of the most pressing problems we face today,” said Special Agent in Charge Patrick Gorman, San Francisco Field Division, Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). “ATF’s strategy is multi-faceted and includes the inspection of licensed gun dealers, the identification/arrest of straw purchasers, and a greater intelligence-driven emphasis by identifying and targeting individuals responsible for organizing and directing illegal firearms trafficking operations in the United States. When criminal wrongdoing by a Federal Firearms Licensee (FFL) is suspected, the FFL will be thoroughly investigated. FFLs, as a whole, have the responsibility to ensure that firearms are not illegally diverted from lawful commerce. The vast majority who comply with the regulations suffer when a small number of corrupt FFLs threaten public safety by abusing the secondary market to obtain and sell firearms illegally for their own greed. ATF will continue to work alongside our law enforcement partners to ensure crimes of this nature are investigated and prosecuted.”
“Circumventing California law to illegally sell firearms by using the identities of peace officers in order to make a profit is a crime that violates the public’s trust and puts the safety of Californians at risk,” said California Attorney General Rob Bonta. “Successful cooperation with our law enforcement partners has put an end to this scheme and brought resolution to this case.”
Deaser was charged and pleaded guilty in May 2019.
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the California Depart of Justice’s Bureau of Firearms. Assistant U.S. Attorneys Michael D. Anderson and Shelley D. Weger are prosecuting the case.
Former Member of Boston Latin Kings Chapter Pleads Guilty to Racketeering ConspiracyRead the Press Release
BOSTON – A former leader of the Boston Chapter of the Massachusetts Almighty Latin King and Queen Nation (Latin Kings) pleaded guilty today to racketeering charges.
Angel Calderon, a/k/a “King Bam,” 29, pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for Nov. 10, 2021.
During the investigation, Calderon was identified as the Inca, or leader, of the Morton Street Bricks (MSB) Chapter of the Latin Kings. Named for the Morton Street housing project in Boston, the MSB Chapter included approximately half-a-dozen members. The MSB Chapter, in turn, reported to the Massachusetts State Leadership of the Latin Kings, providing information, structure, funds and other resources to further the Latin Kings goals and directives in the state. Additionally, Calderon conspired with members of the Latin Kings regarding the commission of criminal acts and discussed efforts to murder a rival gang member using poisoned narcotics, also known as a hotshot, in 2019.
The Latin Kings are a violent criminal enterprise comprised of thousands of members across the United States. The Latin Kings adhere to a national manifesto, employ an internal judiciary and use a sophisticated system of communication to maintain the hierarchy of the organization. As alleged in court documents, the gang uses drug distribution to generate revenue, and engages in violence against witnesses and rival gangs to further its influence and to protect its turf.
In December 2019, a federal grand jury returned an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against 62 leaders, members and associates of the Latin Kings. Calderon is the 48th defendant to plead guilty in the case.
The RICO conspiracy charge provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and New Bedford Police Chief Joseph C. Cordeiro made the announcement today. Valuable assistance was also provided by the FBI North Shore Gang Task Force and the Bristol County and Suffolk County District Attorney’s Offices. Assistant U.S. Attorneys Philip A. Mallard and Lauren A. Graber of Mendell’s Criminal Division are prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Federal Contractor Sentenced for Receiving Converted Government MoneyRead the Press Release
BOISE – Susan Mittleider, 55, of Kuna, Idaho, was sentenced in U.S. District Court for unlawfully receiving converted government money, Acting U.S. Attorney Rafael M. Gonzalez, Jr. announced today. Chief U.S. Magistrate Judge Candy W. Dale ordered Mittleider to serve one year of probation and pay restitution to the Social Security Administration (SSA).
According to court records, in 2016, Mittleider completed a Social Security application for her half-brother who has been incarcerated at the South Dakota Department of Corrections since 1994, and is ineligible for parole until 2024. The No Social Security Benefits for Prisoners Act, however, generally prohibits the SSA from making social security payments to prisoners.
As a result, SSA incorrectly paid $19,180 in benefits to Mittleider’s half-brother before SSA realized the error. SSA then notified Mittleider and her half-brother via letter that the funds were incorrectly paid and that the funds needed to be returned to SSA. Mittleider and her half-brother, however, never attempted to return the funds or appeal SSA’s decision. Instead, even after receiving the letter, Mittleider directly received a portion of the funds that SSA had incorrectly paid to her half-brother and used the funds for her own benefit.
During the time that Mittleider applied for–and received–SSA benefits for her half-brother, she was employed as a federal contractor. As a result of this incident, her employment as a federal contractor was terminated.
Acting U.S. Attorney Gonzalez credited the cooperative efforts of the Department of Justice–Office of Inspector General and the Social Security Administration–Office of Inspector General, which led to charges.
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Five Alleged Members of Altadena- and Duarte-Based Street Gangs Face Federal Firearms Charges Related to Shootout in OntarioRead the Press Release
LOS ANGELES – Five alleged members of street gangs based in Altadena and Duarte have been arrested on federal charges of being felons in possession of firearms or ammunition during a shootout in Ontario that investigators say was part of an ongoing dispute with a rival gang, the Justice Department announced today.
According to the affidavit in support of the criminal complaint, all five defendants used firearms during the February 17 incident, which occurred during a funeral party for a suspected member of the Altadena Bloc Crips (ABC). Investigators with the Ontario Police Department believe the shooting was the result of an attack by the Pasadena Denver Lane Bloods (PDL), which has been in a long-running gang war with ABC and its allies in the Duarte-based Duroc Crips, the affidavit states.
Surveillance video from the house where the shooting took place “showed that once the PDL members fired the initial shots, at least five subjects from the ABC funeral party ran from the home’s backyard into the front yard and began firing recklessly toward the unidentified PDL members,” according to the affidavit by an ATF special agent, which notes that bullets struck several homes and vehicles in the neighborhood.
The defendants charged in the criminal complaint, all suspected members of the ABC or Duroc Crips gangs, are:
- Tristan Jon Taylor, 32, of Ontario, who was arrested Wednesday on a charge of illegally possessing a .38 special revolver;
- Daniel Corey Roach, 41, of Altadena, who was arrested Wednesday on a charge of illegal possession of ammunition;
- Dejon Thomas Nunley Sr., 32, of Adelanto, who was arrested Monday on a charge of illegally possessing a 9mm handgun;
- Lionel Roberts, 32, of Altadena, who was arrested Wednesday on a charge of illegally possessing a small revolver and is expected to make his first court appearance later today; and
- Shawn Terrell Lyndolph, 30, of Rialto, who was arrested Wednesday on a charge of illegally possessing a semiautomatic handgun.
During court appearances on the day of their arrests, Lyndolph was ordered held without bond, Taylor was ordered jailed pending a detention hearing scheduled for August 10, and both Roach and Nunley were released on bond. Arraignments for the defendants in this case are scheduled for later this month.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The charge of felon in possession of a firearm or ammunition carries a statutory maximum sentence of 10 years in federal prison.
This case is the product of a joint investigation between ATF and the Ontario Police Department. The United States Marshals Service provided substantial assistance.
The investigation used intelligence developed by the Los Angeles Crime Gun Intelligence Center and the National Integrated Ballistics Information Network (NIBIN). NIBIN is the only national network that allows the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms.
NIBIN, which is used to link incidents by determining when there is a common firearm, produced multiple intelligence leads during this investigation. The affidavit states that NIBIN linked multiple shooting incidents between October 2020 and the February shoutout, including homicides in Ontario and San Bernardino. As of now, all the incidents are the subjects of open and active investigations, according to the affidavit.
Assistant United States Attorneys John A. Balla and Peter H. Dahlquist of the Riverside Branch Office are prosecuting this case.
The ongoing federal investigation is part of the Firearms Trafficking Strike Force launched last month by the Department of Justice.
Federal Judge Sentences Former Waxhaw, N.C. Resident to 33 Months for Orchestrating an $845,000 Investment SchemeRead the Press Release
CHARLOTTE, N.C. – Kamlesh Gopal Pardasani, 50, formerly of Waxhaw, N.C., was sentenced today to 33 months in prison for orchestrating an $845,000 investment scheme, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, U.S. District Judge Robert J. Conrad also ordered Pardasani to serve three years of supervised release and to pay $880,000 in restitution.
Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, joins Acting U.S. Attorney Stetzer in making today’s announcement.
According to filed court documents and today’s court proceedings, from August 2016 to June 2017, Pardasani executed a scheme to defraud at least seven victims of at least $845,000, by inducing the victims to invest in his company, FreightGuru.com LLC (FreightGuru). Court documents show that Pardasani induced his victims to invest their money by falsely representing that he would use the investors’ money to fund a specific shipment of goods, and that, once the shipment cleared, the victims’ return rate on their initial investment would be between 15% and 20%. Pardasani further lied to victims by falsely assuring them that their funds were secure and safe, when in fact he used the victims’ money to fund his lifestyle, pay off personal creditors, and to engage in high-risk securities trading in his personal trading account. After failing to invest the victims’ funds as promised, Pardasani continued to make additional false and fraudulent representations to lull victims and provided excuses for failing to return the victims’ money.
Pardasani was arrested in January 2020, at the Philadelphia International Airport upon entering the United States from India. In July 2020, Pardasani pleaded guilty to wire fraud.
The FBI’s Charlotte Field Office led the investigation. Assistant U.S. Attorney Caryn Finley of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Fairmont man admits to his role in a drug conspiracyRead the Press Release
CLARKSBURG, WEST VIRGINIA – Nathaniel Lee Williams, of Fairmont, West Virginia, has admitted to his role in a drug trafficking conspiracy, Acting United States Attorney Randolph J. Bernard announced.
Williams, also known as “Sticks,” 63, pleaded guilty today to one count of “Possession with Intent to Distribute Five Grams or more of Methamphetamine.” Williams admitted to having 37.43 grams of methamphetamine, also known as “crystal” or “ice,” in August 2018 in Marion County. As a part of the plea agreement, Williams also admitted that he sold more than a half of a gram of fentanyl during three separate buys in July 2020.
Williams faces at least five and up 40 years of incarceration and a fine of up to $5,000,000. 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 Brandon S. Flower is prosecuting the case on behalf of the government. The Three Rivers Drug Task Force and the Fairmont Police Department investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Find the related case here: https://www.justice.gov/usao-ndwv/pr/west-virginia-and-detroit-residents-indicted-drug-trafficking-operation
Fairmont Man Found Guilty of Four Robberies in Robeson CountyRead the Press Release
NEW BERN, N.C. – A Fairmont man was found guilty today of four counts of Hobbs Act robbery, four counts of Brandishing a Firearm in Furtherance of a Crime of Violence, and one count of Possession of a Firearm by a Convicted Felon.
According to court documents and other information presented in court, Frank Giles McCree, 34, was accused of a series of robberies in Robeson County. During the month of June, 2016, three different Family Dollar stores and one Dollar General store were robbed at gun point. In each of the robberies, the robber wore a Jamaican style beanie, a wig of fake dreadlocks and a dark hooded sweatshirt. The robber would wait until the cash drawer was opened by a clerk and then would brandish a firearm. Using threats to shoot or kill the clerks, the robber would steal the entire drawer from the cash registers and demand the clerks open the safes, from which he would also steal money. During two of the robberies, he also stole the stores phone to make it more difficult for the victims to contact law enforcement.
On June 29, 2016, Frank McCree was the passenger in a car that was pulled over for a traffic violation. The car also matched the description of a car leaving the scene of the first Family Dollar robberies. When law enforcement spoke to the driver and the defendant, law enforcement noticed a dreadlock wig in the glove compartment. McCree and the driver were removed from the car. In the middle of the passenger floorboard, at McCree’s feet, was a loaded, .40 Hi-Point Firearm. Also located in the car was the distinct Jamaican style beanie worn by the robber.
McCree made a phone call from the Robeson County jail to a family member asking them to get in touch with his girlfriend to get rid of something under her bed. When law enforcement went to her home, they found a Family Dollar bag with change in it, in bank rolls consistent with how the Family Dollar would get coins from the bank.
In an interview, McCree admitted possession of the firearm and said he had borrowed it from a friend for protection. McCree will be sentenced during the November 9, 2021 term of court.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after U.S. District Judge Louise W. Flanagan accepted the verdict. The Bureau of Alcohol, Tobacco and Firearms, Rowland Police Department, Maxton Police Department, Robeson County Sheriff’s Office, and St. Pauls Police Department investigated the case and Assistant U.S. Attorney Charity Wilson prosecuted the case.
This case is also part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The United States Attorney’s Office for the Eastern District of North Carolina implements the PSN Program through its Take Back North Carolina Initiative. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
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. 7:17-cr-00134-FL-1
Eleven Methamphetamine Traffickers Are Sentenced to PrisonRead the Press Release
CHARLOTTE, N.C. – Eleven members of a methamphetamine trafficking ring have been ordered to serve prison sentences ranging from 36 months to 210 months for federal drug conspiracy charges, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina.
According to filed court documents and court proceedings, from 2018 to April 2019, the co-defendants were involved in a drug conspiracy that trafficked and distributed methamphetamine in Catawba, Lincoln, Caldwell, and Alexander Counties and elsewhere in Western North Carolina. Over the course of the multi-agency investigation, law enforcement seized at least 23 firearms, and more than $250,000 in drug proceeds.
The 11 defendants, each of whom previously pleaded guilty conspiracy to distribute and to possess with intent to distribute methamphetamine, were sentenced by U.S. District Judge Kenneth D. Bell on Wednesday, August 4, and Thursday, August 5, 2021, as follows:
- Kimberly Deann Bumgarner, 56, of Claremont, N.C., was sentenced to 60 months in prison and two years of supervised release. In addition to the conspiracy charge, Bumgarner also pleaded guilty to possession with intent to distribute methamphetamine.
- Ruth Marie Dugger, 38, of Claremont, N.C., was sentenced to 132 months in prison and five years of supervised release. Duggar also pleaded guilty to possession with intent to distribute methamphetamine.
- Aaron Douglas Goodson, 30, of Maiden, N.C., was sentenced to 210 months in prison and five years of supervised release. Goodson also pleaded guilty to possession with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime.
- Tiffany Christmas Hirani, 34, of Monroe, Georgia, was sentenced to 210 months in prison and five years of supervised release.
- Priscilla Chapman Lambert, 34, of Hickory, N.C., was sentenced to 151 months in prison and five years of supervised release.
- Brian Duane Martz, 42, was sentenced to 191 months in prison and five
years of supervised release. - Lowell Thomas Messer, 44, of Newton, N.C., was sentenced to 120 months in prison and five years of supervised release. Messer also pleaded guilty to two counts of possession with intent to distribute methamphetamine.
- Jason Keith Reichard, 39, of Newton, N.C., was sentenced to 36 months in prison and three years of supervised release.
- Cynthia Roxanne Shook, 35, of Catawba, N.C., was sentenced to 60 months in prison and two years of supervised release. Shook also pleaded guilty to possession with intent to distribute methamphetamine.
- Thomas Dewayne Simmons, Jr., 35, of Snellville, Georgia, was sentenced to 150 months in prison and five years of supervised release. Simmons also pleaded guilty to possession with intent to distribute methamphetamine.
- Samantha Jean Taylor, 26, of Newton, N.C., was sentenced to 120 months in prison and five years of supervised release.
Three other members of the conspiracy have pleaded guilty for their participation in the drug conspiracy. James Kristoffer Cantley, Jonathan Corey Daniel, and Michael James Notheisen, have pleaded guilty to conspiracy to distribute and to possess with intent to distribute methamphetamine and distribution and possession with intent to distribute methamphetamine. Cantley and Notheisen have also each pleaded guilty to possession of a firearm in furtherance of a drug trafficking crime. A sentencing date for Cantley, Daniel and Notheisen has not been set.
In making today’s announcement Acting U.S. Attorney Stetzer thanked the following agencies for their investigative efforts: the DEA in Charlotte, Asheville, and Atlanta; the North Carolina State Bureau of Investigation; the North Carolina State Highway Patrol; the Catawba County Sheriff’s Office; the Newton Police Department; the Conover Police Department; the Maiden Police Department; the Hickory Police Department; the Longview Police Department; the Caldwell County Sheriff’s Office; the Granite Falls Police Department; the Lincoln County Sheriff’s Office; the Cleveland County Sheriff’s Office; the Huntersville Police Department; the Cornelius Police Department; the Mint Hill Police Department; the Pineville Police Department; the Charlotte Mecklenburg Police Department; the Monroe Police Department; the Taylorsville Police Department; the Gaston County Police Department; the Georgia Highway Patrol; the Franklin County Sheriff’s Office in Georgia; the Georgia Bureau of Investigation; the Georgia Department of Corrections; the Clayton County Sheriff’s Office in Georgia; and the Commerce Police Department in Georgia.
Assistant U.S. Attorney Christopher Hess, of the U.S. Attorney’s Office in Charlotte, is prosecuting the case.
El Departamento de Justicia anuncia una investigación de la Ciudad de Phoenix y la Policía de Phoenix.Read the Press Release
El Fiscal General Merrick B. Garland y la Fiscal General Auxiliar de la División de Derechos Civiles, Kristen Clarke, anunciaron hoy que el Departamento de Justicia ha iniciado una investigación de patrones y prácticas de la Ciudad de Phoenix y la Policía de Phoenix (PhxPD).
La investigación evaluará todos los tipos de uso de fuerza por parte de agentes de la PhxPD, incluyendo la fuerza letal. La investigación también intentará determinar si la PhxPD toma represalias contra personas por conductas protegidas por la Primera Enmienda; si la vigilancia policial de la PhxPD es discriminatoria o si la PhxPD, de una forma ilegal, decomisa o se deshace de pertenencias de personas desamparadas. Asimismo, la investigación evaluará los sistemas y las prácticas de la Ciudad y de la PhxPD para responder a personas con discapacidades. La investigación incluirá una revisión integral de las políticas, capacitación, supervisión e investigaciones de fuerza de la PhxPD, así como sus sistemas de rendición de cuentas, lo que incluye la recepción, investigación, revisión, resolución y disciplina en lo que se refiere a demandas por mala conducta.
Funcionarios del Departamento de Justicia informaron a la Alcalde de Phoenix Kate Gallego, el Jefe de la PhxPD Jeri Williams y otros oficiales municipales de la investigación. Como parte de esta investigación, el Departamento de Justicia se comunicará con grupos comunitarios y miembros del público para aprender más sobre sus experiencias con la PhxPD.
«Cuando realizamos investigaciones de patrones y prácticas para determinar si se ha vulnerado la Constitución o una ley federal, nuestro objetivo es la promoción de transparencia y responsabilidad», afirmó el Fiscal General Merrick Garland. «Eso aumenta el nivel de confianza pública, lo que en cambio mejora la seguridad pública. Nosotros sabemos que las autoridades policiales comparten estas metas».
«Una de las prioridades principales de la División de Derechos Civiles es garantizar que cada persona en este país se beneficie de una vigilancia policial legal, eficaz, transparente y libre de discriminación», comentó Kristen Clarke, la Fiscal General Auxiliar. «Oficiales de policía por todo el país deben usar su autoridad de una manera que se adhiera a la Constitución, que cumpla con las leyes de derechos civiles federales y que respeta la dignidad humana».
La investigación se está desarrollando en virtud de la ley de Control de Delitos Violentos y Aplicación de la Ley de 1994, la cual prohíbe que los gobiernos estatales y locales incurran en un patrón o una práctica de conducta por parte de oficiales de policía que prive a individuos de sus derechos protegidos en la Constitución o las leyes federales. Por otra parte, la ley permite al Departamento de Justicia a corregir tal mala conducta mediante litigios civiles. Esta representa la 73º investigación de una agencia policíaca que se ha llevado a cabo al amparo de esta ley desde su promulgación en 1994. El Departamento también evaluará las prácticas de aplicación de la ley en virtud de la Primera, Cuarta y Decimocuarto Enmiendas a la Constitución de los Estados Unidos, así como al amparo de la ley de Calles Seguras de 1968; el Título VI de la ley de Derechos Civiles de 1964; y el Título II de la ley de Estadounidenses con Discapacidades.
La Sección de Litigios Especiales de la División de Derechos Civiles del Departamento de Justicia, en Washington, D.C., llevará a cabo esta investigación. Se anima a cualquiera que tenga información relevante a comunicarse con el Departamento de Justicia por correo electrónico a [email protected] o por teléfono a la siguiente línea gratuita: (866) 432-0335. También se puede informarnos de vulneraciones de derechos civiles en conexión con este u otros casos usando el nuevo portal para denuncias en civilrights.justice.gov.
Para información específica sobre el trabajo de reformación policíaca de la División de Derechos Civiles, vaya a: /media/872116/dl?inline.
Corrupt Puerto Rico Police Officer Pleads Guilty to Murder and RacketeeringRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced today that WILLIAM VAZQUEZ-BAEZ, a former member of the Puerto Rico Police Department (“PRPD”), pled guilty today in Manhattan federal court in connection with his years of corrupt assistance to a criminal enterprise known as La Organización de Narcotraficantes Unidos (“La ONU”), including his participation in the May 9, 2007, murder of Anthony Castro-Carrillo in Carolina, Puerto Rico. U.S. District Judge Jesse M. Furman accepted the defendant’s guilty plea.
U.S. Attorney Audrey Strauss said: “William Vazquez-Baez perverted his official position for personal gain, and in so doing brought deadly violence into the homes of the very people he was sworn to protect. Today’s plea represents a milestone in holding Vazquez-Baez responsible for the cold-blooded, murderous violence he wrought.”
According to the allegations in the Information and other filings and statements made in court:
From approximately 1994 until his arrest in connection with this case in May 2017, VAZQUEZ-BAEZ was an active police officer with the PRPD. From in or about 2004 until in or about 2016, members of La ONU shipped thousands of kilograms of cocaine from Puerto Rico to New York, including cocaine that was then distributed out of a Bronx daycare center, and protected their territory and trade through numerous acts of violence. Members of La ONU paid VAZQUEZ-BAEZ a salary to corruptly use his position as a police officer to further the interests of La ONU. For example, VAZQUEZ-BAEZ provided narcotics and intelligence, including information obtained from the police narcotics unit. Members of La ONU would also contact VAZQUEZ-BAEZ, among others, when transporting large quantities of cocaine within the San Juan, Puerto Rico, area to ensure the shipment avoided areas of police activity. VAZQUEZ-BAEZ also distributed payments to other corrupt police officers who assisted La ONU.
VAZQUEZ-BAEZ also assisted La ONU in acts of violence:
In or about 2006 or 2007, VAZQUEZ-BAEZ alerted La ONU members that Freddy Mendez-Rivera, a local resident, had complained to police about drug dealing occurring in his neighborhood, which led to members of La ONU kidnapping and then killing Mendez-Rivera. Around the same time, VAZQUEZ-BAEZ alerted a senior member of La ONU that the kidnapping was being reported over the police radio. VAZQUEZ-BAEZ advised that, because the fact that Mendez-Rivera had spoken with the police was known throughout the Carolina Narcotics division, it was important that the body never be discovered. When later updated about what had happened, VAZQUEZ-BAEZ laughed and remarked, in substance, that Mendez-Rivera would not be giving the police information any further.
On or about May 9, 2007, members of La ONU hired VAZQUEZ-BAEZ to participate in the murder of Anthony Castro-Carrillo in Carolina, Puerto Rico, in exchange for a cash bonus. VAZQUEZ-BAEZ and members of La ONU stormed Castro-Carrillo’s residence while dressed as police officers and shot and killed him.
In or about 2007, VAZQUEZ-BAEZ delivered a confidential informant, who was in VAZQUEZ-BAEZ’s custody, to members of La ONU, who pretended to be other police officers. Those members of La ONU then shot and killed the informant.
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VAZQUEZ-BAEZ, 52, pled guilty to one count of racketeering conspiracy, in violation of 18 U.S.C. § 1962(d), which carries a maximum penalty of 20 years in prison, and one count of conspiracy to commit murder for hire, in violation of 18 U.S.C. § 1958, which carries a maximum penalty of 10 years in prison. The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
VAZQUEZ-BAEZ is scheduled to be sentenced before Judge Furman on December 2, 2021, at 3:00 p.m.
Ms. Strauss praised the investigative work of the U.S. Postal Inspection Service, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New York City Police Department. Ms. Strauss also thanked the United States Attorney’s Office in the District of Puerto Rico and the Puerto Rico Police Department for their support in this ongoing investigation.
The prosecution is being handled by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Lara Pomerantz, Justin Rodriguez, and Andrew Thomas are in charge of the prosecution.
Concord Man Sentenced to 120 Months for Methamphetamine Trafficking and Firearm OffensesRead the Press Release
CONCORD - Jason Manley, 32, of Concord, was sentenced on Tuesday to 120 months in federal prison for attempted possession of methamphetamine with intent to distribute and possessing a firearm in furtherance of a drug trafficking crime, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, in March of 2019, the United States Postal Inspection Service identified Manley as a customer of an illegal drug vendor operating on the internet. Between March of 2019 and July of 2020, postal inspectors intercepted four parcels addressed to Manley at his residence. Pursuant to search warrants, the seized parcels were found to contain a total of over 2.3 kilograms of highly-pure methamphetamine. On July 10, 2020, an undercover agent made a controlled delivery of an intercepted parcel to Manley’s residence. After Manley accepted the parcel, investigators executed a search warrant of his residence and recovered additional methamphetamine, a handgun and ammunition, $54,483 in cash, and additional items consistent with drug distribution activities.
Manley previously pleaded guilty on April 23, 2021. As part of his plea agreement, Manley has agreed to forfeit cash, a firearm, ammunition, jewelry, and other items seized during the investigation.
“Methamphetamine is a highly-dangerous drug that is appearing with increased frequency in New Hampshire,” said Acting U.S. Attorney Farley. “Armed drug dealers who are distributing this dangerous substance are a significant threat to the health and safety of the citizens of the Granite State. In order to protect our community, we are working closely with our law enforcement partners to identify these drug dealers and hold them accountable for their unlawful conduct.”
This matter was investigated by the United States Postal Inspection Service with assistance from the New Hampshire State Police. The case was prosecuted by Assistant U.S. Attorney Cam Le.
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Columbia Man Pleads Guilty to Being a Felon in PossessionRead the Press Release
Columbia, South Carolina ---- Acting United States Attorney M. Rhett DeHart announced that Leonard Earl Mitchell, 30, of Columbia, has entered a guilty plea in federal court to being a felon in possession of ammunition. United States District Judge Mary Geiger Lewis accepted the guilty plea and will impose sentence after she has reviewed the presentence report prepared by the U.S. Probation Office.
Evidence presented in court established that, on May 23, 2020, after receiving reports of shots fired on Two Notch Road, officers from the City of Columbia Police Department located nine 9mm spent shell casings in a business’ parking lot. While reviewing the surveillance footage, the officers saw that an unknown person discharged two rounds in the direction of Mitchell, as he was exiting the business. Realizing that he was being shot at, Mitchell sought cover near a car in the parking lot, then retrieved a 9mm firearm off his person and discharged 10 rounds at a car traveling northbound on Two Notch Road. After the shooting incident, Mitchell fled from the parking lot.
A City of Columbia police officer was able to identify Mitchell as the person involved in the shooting from a prior encounter with him, as well as from Mitchell’s distinctive facial tattoos.
On June 4, 2020, Mitchell was arrested in his home on other warrants. At the time of his arrest, he had a 9mm pistol on his person that ballistically matched the 9 shell casings found in the business parking lot.
Mitchell has previously been convicted of several felony offenses including Failure to Stop for Blue Lights and Siren, Assault and Battery of a High and Aggravated Nature, Assault and Battery 2nd Degree, Distribution of Marijuana, Assault and Battery, 1st Degree, Possession of Methamphetamine/Cocaine, and Carrying or Concealing Weapon by Inmates. As such, Mitchell is prohibited from possessing a firearm and/or ammunition.
The maximum penalty for a felon in possession of ammunition is imprisonment for 10 years and/or a fine of $250,000.
The case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the City of Columbia Police Department. Assistant United States Attorney William K. Witherspoon is prosecuting the case, as part of the joint federal, state, and local Project CeaseFire initiative, which aggressively prosecutes firearm cases.
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Charlotte Man Is Sentenced to 22 Years for Carjacking A Vehicle with A Child in the CarseatRead the Press Release
CHARLOTTE, N.C. – Acting U.S. Attorney William T. Stetzer announced today that Maurice Rakestraw, 31, of Charlotte, was sentenced to 264 months in prison for carjacking and related firearms offenses. In addition to the prison term imposed, U.S. District Judge Robert J. Conrad Jr. also ordered Rakestraw to serve five years under court supervision upon his release.
Vincent C. Pallozzi, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD) join Acting U.S. Attorney Stetzer in making today’s announcement.
According to court documents and evidence presented at Rakestraw’s sentencing hearing, on December 5, 2019, Rakestraw was a passenger in a vehicle that was stopped by CMPD officers. Over the course of the traffic stop, Rakestraw fled from the scene on foot until he encountered his carjacking victims in a parking lot of an apartment complex. Court documents show that Rakestraw approached the two adult victims, pointed a firearm at one of them and threatened to kill him if he did not give Rakestraw his car. Rakestraw sped off in the stolen vehicle with the victims’ baby still secured in the car seat. Approximately six minutes later, Rakestraw crashed the stolen vehicle into a trailer being pulled by a truck and flipped the vehicle onto its roof. According to evidence presented at the sentencing hearing, Rakestraw crawled out of the car and ran away from the crash scene, leaving the baby in the overturned vehicle. The occupants of the truck were able to pry the vehicle’s door open and remove the baby from the car seat.
According to court documents, CMPD officers encountered Rakestraw shortly thereafter, walking along a sidewalk. An officer attempted to take Rakestraw into custody but Rakestraw fled into nearby woods. Rakestraw was apprehended after he was located in the schoolyard of Merry Oaks International Elementary. Officers also located Rakestraw’s firearm nearby in the woods. Over the course of the investigation, law enforcement determined that Rakestraw had stolen the firearm during a domestic violence assault two days prior.
In November 2020, Rakestraw pleaded guilty to carjacking, possession and brandishing of a firearm in furtherance of a crime of violence, possession of a firearm by a felon, and stealing a firearm. He is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
Assistant United States Attorneys David Kelly and Erik Lindahl handled the prosecution.
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Earlier this week, in an unrelated armed carjacking case, Judge Conrad ordered Kshune Jackson, 23, and Blaine Cook, 23, both of Charlotte, to serve 125 months in prison each, for taking a car at gunpoint from two victims in Charlotte on January 16, 2020. At the time of this federal offense, Jackson and Cook were both on state post-release supervision after having served prison sentences for armed robbery. Acting U.S. Attorney Stetzer thanked Homeland Security Investigations and CMPD for their investigation of this case, which was prosecuted by Assistant U.S. Attorney David Kelly.
Catawba County Man Is Sentenced to 13 ½ Years for Robbing Two Hickory Area Businesses at GunpointRead the Press Release
CHARLOTTE, N.C. – A Catawba County man who robbed two Hickory-area businesses at gunpoint in March 2020 was sentenced on Wednesday, August 4, 2021, to 162 months in prison, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina. Lester Deontae Lackey, 30, of Newton, N.C., was also ordered to serve three years under court supervision after he is released from prison. The Honorable Kenneth D. Bell presided over the sentencing hearing.
Vincent C. Pallozzi, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, Sheriff Alan C. Jones, of the Caldwell County Sheriff’s Office, and Chief Thurman Whisnant of the Hickory Police Department join Acting U.S. Attorney Stetzer in making today’s announcement.
According to filed court documents, and statements made in court, on March 21, 2020, at 11:55 p.m., Lackey robbed a Speedway Store located 1835 Hwy 70 SE in Hickory, N.C. Upon entering the store, Lackey pointed a rifle at a store clerk and demanded money. The store clerk complied and handed Lackey $300 in cash and Lackey fled the scene. Court records show that two days later, on March 23, 2020, at approximately 1:50 p.m., Lackey entered a CVS Pharmacy located at 2259 12th Avenue, in Hickory. As with the previous robbery, upon entering the pharmacy Lackey pointed a rifle at the store’s shift manager and another employee and demanded money. The shift manager handed Lackey approximately $252 in cash and Lackey fled the scene. At the time of the robbery, there were multiple customers inside the pharmacy who managed to flee to the rear of the store.
According to court records, law enforcement quicky identified Lackey’s getaway vehicle and a Hickory police officer located Lackey who was still in the Hickory area. Law enforcement attempted to stop Lackey’s vehicle but Lackey proceeded to attempt to evade the police. A pursuit by multiple law enforcement agencies ensued which lasted approximately 30 minutes. During the pursuit, Lackey traveled into Caldwell County and back into the Long View area of Catawba County. Law enforcement arrested Lackey after his vehicle collided with a power pole and Lackey attempted to flee on foot.
On December 4, 2020, Lackey pleaded guilty to Hobbs Act robbery, which is the robbery of a business engaged in interstate commerce, and possession of a firearm in furtherance of the robbery.
Lackey is currently in federal custody. He will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In announcing the sentence, Acting U.S. Attorney Stetzer thanked the ATF, the Caldwell County Sheriff's Office, the Hickory Police Department and the North Carolina Highway Patrol for their investigation of the case.
Assistant U.S. Attorney Christopher Hess handled the prosecution.
California Man Sentenced in Cross-Country Marijuana Trafficking ConspiracyRead the Press Release
PITTSBURGH _ A resident of California has been sentenced in federal court to five years’ probation on his conviction of conspiracy to distribute marijuana, Acting United States Attorney Stephen R. Kaufman announced today.
Senior United States District Judge David S. Cercone imposed the sentence on Ryan Hendrix, age 33, of Santa Barbara, CA.
According to information presented to the court, the Drug Enforcement Administration and other agencies conducted a multi-year investigation of the marijuana trafficking conspiracy of Hendrix and his co-conspirators. From 2012 through 2017, Hendrix and his co-conspirators arranged for marijuana to be supplied from the West Coast and mailed to the Pittsburgh area through the United States Postal Service. Hendrix’s co-conspirators would then distribute the marijuana in the Western District of Pennsylvania, primarily on college campuses, such as Indiana University of Pennsylvania.
Prior to imposing sentence, Judge Cercone stated that the sentence was sufficient but not greater than necessary to achieve the goals of sentencing.
Assistant United States Attorney Tonya Sulia Goodman prosecuted this case on behalf of the government.
Acting United States Attorney Kaufman commended the Drug Enforcement Administration, the Internal Revenue Service – Criminal Investigation, the Pittsburgh Bureau of Police, and the Indiana Borough Police for the investigation leading to the successful prosecution of Hendrix.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Boone County Man Sentenced to Five Years in Prison for Distributing Heroin and FentanylRead the Press Release
CHARLESTON, W.Va. – A Boone County man was sentenced today to 60 months in federal prison for distributing opioids. The five-year sentence was a significant upward departure from the U.S. Sentencing Guideline Range.
According to court documents and statements made in court, John Massey II, 40, of Seth, sold heroin to a confidential informant in Boone County in January and October 2018. On October 19, 2018, Massey possessed a mixture of heroin and fentanyl at his Seth residence, which Massey admitted he intended to distribute.
At sentencing, the United States sought an upward variance from the Court based largely on Massey’s role in perpetuating the opioid crisis as a dealer, his persistent drug dealing activity while out on bond and his relevant conduct wherein he distributed a particularly potent batch of fentanyl to buyers on December 23, 2017, that resulted in multiple drug overdoses in Boone County, one of which resulted in an overdose death. After hearing the testimony of several witnesses and receiving evidence, including testimony from the Chief Medical Examiner for the State of West Virginia and a paramedic, the Court determined that a “substantial upward variance” from Massey’s original sentencing range of six to twelve months addressed the serious nature of the offense and relevant conduct.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the U.S. 119 Drug and Violent Crimes Task Force.
Senior United States District Judge John T. Copenhaver Jr. imposed the sentence. Assistant United States Attorneys Kristin F. Scott and John File prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:18-cr-00268.
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Billings man admits cocaine trafficking, promoting prostitution crimesRead the Press Release
BILLINGS – A Billings man accused of trafficking cocaine and promoting prostitution in the community by setting up a commercial sex date for an individual admitted charges today, Acting U.S. Attorney Leif M. Johnson said.
Anthony Marcos Chadwell, 27, pleaded guilty to a superseding information charging him with conspiracy to possess with intent to distribute cocaine and with use of a facility in interstate commerce in aid of racketeering. Chadwell faces a maximum 20 years in prison, a $1 million fine and three years of supervised release.
U.S. District Judge Susan P. Watters presided. Judge Watters set sentencing for Dec. 16. Chadwell was detained.
The government alleged in court documents that in 2019, Chadwell became involved in a cocaine trafficking conspiracy and distributed cocaine in Billings and elsewhere. In early 2019, Chadwell was introduced to an individual, identified as Jane Doe 11. At some point Doe 11 began engaging in commercial sex with Chadwell’s assistance. Chadwell used his cellular phone to set up a commercial sex date for Doe 11 at a Billings motel in which Doe 11 engaged in a sex act in exchange for money.
Assistant U.S. Attorneys Zeno B. Baucus and Bryan T. Dake are prosecuting the case, which was investigated by the FBI.
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Ava Man Sentenced to 10 Years for Meth Trafficking, Illegal FirearmRead the Press Release
SPRINGFIELD, Mo. – An Ava, Missouri, man has been sentenced in federal court for illegally possessing methamphetamine and a firearm.
Charles D. Kessler, 41, was sentenced by U.S. Chief District Judge Beth Phillips on July 29, 2021, to 10 years in federal prison without parole.
On July 2, 2020, Kessler pleaded guilty to one count of possessing methamphetamine with the intent to distribute and one count of being a felon in possession of a firearm. Kessler admitted he was in possession of 37.8 grams of methamphetamine and a loaded Taurus .380-caliber pistol when law enforcement officers executed a search warrant at his residence on Jan. 5, 2017. The methamphetamine, which Kessler admitted he intended to distribute, was found inside a locked security safe next to a bed in Kessler’s bedroom, along with drug distribution materials. The pistol was found on the headboard of Kessler’s bed.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Kessler has prior felony convictions for possession of a controlled substance, burglary, retail theft, aggravated battery, and theft.
This case was prosecuted by Assistant U.S. Attorneys Byron H. Black and Josephine L. Stockard. It was investigated by the Douglas County, Mo., Sheriff’s Department, the Wright County, Mo., Sheriff’s Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Project Safe Neighborhoods
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.
Ascension Michigan to Pay $2.8 Million to Resolve False Claims Act AllegationsRead the Press Release
WASHINGTON – Ascension Michigan and related hospitals, Providence Park Hospital, St. John Hospital and Medical Center, St. John Macomb Oakland Hospital and Ascension Crittenton Hospital (collectively, Ascension Michigan), all located in Michigan, have agreed to pay $2.8 million to resolve claims that they violated the False Claims Act by submitting or causing the submission of false claims for payment to federal health care programs related to alleged medically unnecessary procedures performed by a gynecologic oncologist (the “Doctor”).
“When hospitals receive payment from federal health care programs for medically unnecessary surgical procedures, they cannot simply retain those payments; they have an obligation to return them,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “We will continue to ensure that taxpayer funds are used appropriately for the important programs that they support.”
The settlement announced today resolves allegations that, from Feb. 1, 2011, through June 30, 2017, Ascension Michigan knowingly submitted false claims for payment to federal health care programs and improperly retained payment for professional and facility fees related to medically unnecessary radical hysterectomies that the Doctor performed, chemotherapy services that the Doctor administered or ordered that were not medically necessary, and evaluation and management services by the Doctor that were not performed or not rendered as represented. The government alleged that Ascension Michigan had concerns about the quality of care provided by the Doctor due to patient complaints and his suspected higher than average rates of pulmonary embolisms and surgical infections. The government further alleged that, as a result of these concerns, Ascension Michigan engaged a third-party doctor to conduct a peer review of a sample of the Doctor’s patients, which found that, for the majority of the radical hysterectomies and chemotherapy performed by the Doctor, a less aggressive surgery or medical intervention would have been the standard of care.
“Health care providers cannot avoid their obligation to repay government funds owed to federal health care programs,” said Acting U.S. Attorney Saima Mohsin for the Eastern District of Michigan. “We will vigorously pursue those who knowingly fail to repay monies they have received based on services which were not medically necessary or not rendered as billed.”
On June 28, 2018, Ascension Michigan made a submission under the Provider Self-Disclosure Protocol of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG) related to professional and facility fees it billed to federal health care programs for services provided by the Doctor. Though Ascension Michigan initially improperly retained the monies that it collected related to its billings, Ascension Michigan cooperated in the government’s investigation and took active steps to address concerns related to the Doctor by: (i) engaging a third-party doctor to conduct the peer review; (ii) placing the Doctor on a performance improvement plan; (iii) ending its contractual relationship with the Doctor; and (iv) submitting the self-disclosure.
“Our agency will continue to hold accountable medical providers who perform medically unnecessary procedures and then inappropriately bill federal health care programs,” said Special Agent in Charge Lamont Pugh III of HHS-OIG. “Working with our law enforcement partners, we will continue to investigate such misconduct to protect beneficiaries and the taxpayer-funded health care programs serving those beneficiaries.”
The civil settlement includes the resolution of claims brought by Pamela Satchwell, Dawn Kasdorf and Bethany Silva-Gomez under the qui tam or whistleblower provisions of the False Claims Act. Under these provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned United States ex rel. Satchwell v. Ascension Health, No. 17-CV-12315 (E.D. Mich.). Relators will receive a combined payment in the amount $532,000.
The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Eastern District of Michigan, with assistance from HHS-OIG and the U.S. Defense Health Agency, Office of Program Integrity.
The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The matter was investigated by Trial Attorney Denise Barnes of the Civil Division’s Commercial Litigation Branch, Fraud Section, and Assistant U.S. Attorney Carolyn Bell-Harbin of the U.S. Attorney’s Office for the Eastern District of Michigan.Ascension Michigan to Pay $2.8 Million to Resolve False Claims Act AllegationsRead the Press Release
Ascension Michigan and related hospitals, Providence Park Hospital, St. John Hospital and Medical Center, St. John Macomb Oakland Hospital and Ascension Crittenton Hospital (collectively, Ascension Michigan), all located in Michigan, have agreed to pay $2.8 million to resolve claims that they violated the False Claims Act by submitting or causing the submission of false claims for payment to federal health care programs related to alleged medically unnecessary procedures performed by a gynecologic oncologist (“the Doctor”).
“When hospitals receive payment from federal health care programs for medically unnecessary surgical procedures, they cannot simply retain those payments; they have an obligation to return them,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “We will continue to ensure that taxpayer funds are used appropriately for the important programs that they support.”
The settlement announced today resolves allegations that, from Feb. 1, 2011, through June 30, 2017, Ascension Michigan knowingly submitted false claims for payment to federal health care programs and improperly retained payment for professional and facility fees related to medically unnecessary radical hysterectomies that the Doctor performed, chemotherapy services that the Doctor administered or ordered that were not medically necessary, and evaluation and management services by the Doctor that were not performed or not rendered as represented. The government alleged that Ascension Michigan had concerns about the quality of care provided by the Doctor due to patient complaints and his suspected higher than average rates of pulmonary embolisms and surgical infections. The government further alleged that, as a result of these concerns, Ascension Michigan engaged a third-party doctor to conduct a peer review of a sample of the Doctor’s patients, which found that, for the majority of the radical hysterectomies and chemotherapy performed by the Doctor, a less aggressive surgery or medical intervention would have been the standard of care.
“Health care providers cannot avoid their obligation to repay government funds owed to federal health care programs,” said Acting U.S. Attorney Saima Mohsin for the Eastern District of Michigan. “We will vigorously pursue those who knowingly fail to repay monies they have received based on services that were not medically necessary or not rendered as billed.”
On June 28, 2018, Ascension Michigan made a submission under the Provider Self-Disclosure Protocol of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), related to professional and facility fees it billed to federal health care programs for services provided by the Doctor. Though Ascension Michigan initially improperly retained the monies that it collected related to its billings, Ascension Michigan cooperated in the government’s investigation and took active steps to address concerns related to the Doctor by: (i) engaging a third-party doctor to conduct the peer review; (ii) placing the Doctor on a performance improvement plan; (iii) ending its contractual relationship with the Doctor; and (iv) submitting the self-disclosure.
“Our agency will continue to hold accountable medical providers who perform medically unnecessary procedures and then inappropriately bill federal health care programs,” said Special Agent in Charge Lamont Pugh III of HHS-OIG. “Working with our law enforcement partners, we will continue to investigate such misconduct to protect beneficiaries and the taxpayer-funded health care programs serving those beneficiaries.”
The civil settlement includes the resolution of claims brought by Pamela Satchwell, Dawn Kasdorf and Bethany Silva-Gomez under the qui tam or whistleblower provisions of the False Claims Act. Under these provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned United States ex rel. Satchwell v. Ascension Health, No. 17-CV-12315 (E.D. Mich.). Relators will receive a combined payment in the amount $532,000.
The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch (Fraud Section) and the U.S. Attorney’s Office for the Eastern District of Michigan, with assistance from HHS-OIG and the U.S. Defense Health Agency, Office of Program Integrity.
The investigation and resolution of this matter illustrate the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The matter was investigated by Trial Attorney Denise Barnes of the Civil Division’s Commercial Litigation Branch, Fraud Section, and Assistant U.S. Attorney Carolyn Bell-Harbin of the U.S. Attorney’s Office for the Eastern District of Michigan.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
4 August 2021
Youth Wrestling Coach and Referee from Ocean County Charged with Distribution of Child PornographyRead the Press Release
NEWARK, N.J. – A local youth wrestling coach was arrested today on a charge of receipt and distribution of child pornography, Acting U.S. Attorney Rachael A. Honig announced today.
Alec Donovan, 24, of Brick, New Jersey, is charged by complaint with receipt and distribution of child pornography. He appeared by videoconference before U.S. Magistrate Judge Cathy L. Waldor and was released on $100,000 unsecured bond.
According to documents filed in this case and statements made in court:
Donovan used a messaging application to share videos containing child pornography over the Internet. From January 2021 through March 2021, Donovan sent three videos containing images of child sexual abuse and received two videos containing images of child sexual abuse via the web-based messaging application. The videos Donovan sent and received depicted sexual acts involving pre-pubescent children.
Donovan also used the web-based messaging application to solicit and engage in conversations with minors, including requesting nude photographs from the minors and sending nude photographs to them.
The charge of receipt and distribution of child pornography carries a mandatory minimum penalty of five years in prison, a maximum potential penalty of 20 years in prison, and a $250,000 fine.
The FBI’s Newark Field Office is asking anyone with information related to this case or who may be a victim to contact them at [email protected].
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr., with the investigation leading to today’s charge.
The government is represented by Assistant U.S. Attorneys Nicole F. Mastropieri of the Health Care Fraud Unit and Shawn Barnes of the Economic Crimes Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Woman Sentenced for Bogus Airbag ClaimRead the Press Release
MOBILE, AL – The U.S. District Court sentenced a Mobile woman to 3 years of probation, 80 hours of community service, and a $1,000 fine for sending by mail a false claim for personal injuries and vehicle damage allegedly caused by defective Takata airbag inflators that sent shrapnel flying when they deployed.
According to court documents, Tracey Lanette Adams, 48, used pictures she obtained from the internet and altered medical records that she submitted by mail from Mobile to try to obtain over $13,000 from the Takata Individual Restitution Fund (TIRF). The TIRF was established in the Eastern of District of Michigan when Takata Corporation was sentenced for wire fraud. In February 2017, the Court there ordered that Takata Corporation pay $125,000,000.00 into a fund to compensate those injured or who would be injured by its defective airbag deflators. The Special Master appointed to administer the fund oversees the evaluation of claims seeking compensation.
Evaluators saw red flags as it considered Adams’s claim, including photographs Adams had altered from the internet that she said were of her and her injuries. When the TIRF denied her claim, she appealed and submitted once again the false documents and photographs. A face-to-face interview with the Mobile FBI confirmed that she was not the person in the photographs and had not suffered the serious facial injuries depicted. Adams did not receive any compensation.
“The Takata Individual Restitution Fund is for actual victims who suffered or will suffer injuries caused by their defective airbag inflators. This defendant wasted the valuable time of the evaluators that they could have spent considering claims of people who were actually injured by these defective products. And now she’s been convicted of a felony for it and will be under the watchful eyes of federal probation officers for 3 years,” U.S. Attorney Sean P. Costello remarked.
FBI Special Agent in Charge James Jewell stated, “The defendant in this particular case has no regard for the real victims and their injuries. Where there are large sums of money there will be fraud, and the men and women of the FBI stand ready to assist our partners in seeing the prosecution of these defendants carried out.” The FBI in the Eastern District of Michigan and in Mobile investigated the case.
Assistant U.S. Attorney Alex Lankford prosecuted the case on behalf of the United States.
Williamsport Man Sentenced for Wire FraudRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on August 2, 2021, Benjamin Butler, age 33, of Williamsport, Pennsylvania, was sentenced by Chief U.S. District Court Judge Matthew W. Brann to one day of imprisonment followed by two- years of supervised release, including four-months of home confinement, for wire fraud. Butler was also ordered to pay $18,850 in restitution.
According to Acting U.S. Attorney Bruce D. Brandler, Butler engaged in a kiting scheme in September and October of 2015, whereby he used multiple credit accounts to fraudulently pay off $18,850 of credit card charges by using the temporary credit on one card to pay off another account even though he did not have the funds to ultimately cover such a payment.
The charges stem from an investigation by the Federal Bureau of Investigation and the Department of Justice Office of the Inspector General. Assistant United States Attorney Geoffrey W. MacArthur prosecuted the case.
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Wetzel County woman indicted on drug chargesRead the Press Release
WHEELING, WEST VIRGINIA – Kerry L. Sands, of New Martinsville, West Virginia, was indicted today on heroin and fentanyl charges, Acting United States Attorney Randolph J. Bernard announced.
Sands, 37, was indicted on three counts of “Distribution of Heroin and Fentanyl” and one count of “Distribution of Fentanyl.” Sands is accused of selling heroin and fentanyl in March and April 2021 in Wetzel County.
Sands faces up to 20 years of incarceration and a fine of up to $1,000,000 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 Clayton J. Reid is prosecuting the case on behalf of the government. The Marshall County Drug Task Force, a HIDTA-funded initiative, investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Wetzel County man indicted on drug and firearm chargesRead the Press Release
WHEELING, WEST VIRGINIA – Franklin Keith Dotson, of New Martinsville, West Virginia, was indicted today on methamphetamine and firearm charges, Acting United States Attorney Randolph J. Bernard announced.
Dotson, 43, was indicted on one count of “Distribution of Methamphetamine,” two counts of “Possession with Intent to Distribute Methamphetamine,” and one count of “Unlawful Possession of Firearm.” Dotson is accused of having and selling methamphetamine in Wetzel County in April and July 2021. Dotson, a person prohibited from having firearms because of prior convictions, is accused of having a 9mm pistol in Wetzel County in July 2021.
Dotson faces up to 20 years of incarceration and a fine of up to $1,000,000 for each of the drug charges. He faces 10 years of incarceration and a fine of up to $250,000 for the firearms 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 Shawn M. Adkins is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms & Explosives; the Marshall County Drug Task Force, a HIDTA-funded initiative; the Wetzel County Sheriff’s Office; and the Marshall County Sheriff’s Office investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
ValueWise CEO Michael Mann Sentenced to 144 Months in Prison for $100 Million FraudRead the Press Release
ALBANY, NEW YORK – Michael T. Mann, age 51, was sentenced today to 144 months in prison for running a complex scheme that caused more than $100 million in losses to banks, financing companies, and other businesses, and also involved his misappropriation of millions of dollars entrusted to payroll companies that he owned.
The announcement was made by Acting United States Attorney Antoinette T. Bacon and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
Senior United States District Judge Lawrence E. Kahn also ordered Mann to serve 3 years of post-imprisonment supervised release, pay restitution to victims in the total amount of $101,038,793.31, and to forfeit assets already seized by the Government, including $14,522,474.90 contained in bank accounts and 30,000 common shares of Pioneer Bancorp Inc.
Acting United States Attorney Antoinette T. Bacon stated: “Today’s sentence holds Michael Mann accountable for his despicable crimes. For years, instead of growing a legitimate business in Clifton Park, he grew a fraudulent scheme. Mann inflicted major losses on companies that loaned him money. He also stole the paychecks of thousands of hard-working people, and the tax payments of hundreds of small businesses, across the country. Mann caused immense stress for small business owners and fear among employees living paycheck to paycheck, and he justly deserves the term of imprisonment imposed today. This case should be a deterrent to businesspeople who would seek to lie, cheat and steal their way to success.”
FBI Special Agent in Charge Janeen DiGuiseppi stated: “Michael Mann's intricate fraud scheme allowed him to manipulate the system to the tune of $100 million. He played a dangerously deceitful game with the paychecks of thousands of hard-working Americans trying to make an honest living. Not only were thousands of employees impacted, but some small business owners lost their livelihoods when they went out of business due to Mann’s criminal scheme. While today’s sentence cannot build back those businesses or give back lost jobs, we can only hope it serves as a resounding message that the FBI, together with our law enforcement partners, will not stand for anyone looking to gamble with the hard-earned incomes of our citizens.”
Mann operated ValueWise Corporation, based in Clifton Park, New York, as well as subsidiary companies including MyPayrollHR.com LLC. He admitted that from 2013 to September 2019, he engaged in a fraudulent scheme to deceive banks and financing companies into loaning his companies tens of millions of dollars. Because Mann could not repay the loans with legitimate business revenues, he expanded the fraud, by stealing and diverting millions of dollars that were entrusted to his payroll companies, and engaging in the daily kiting of millions of dollars among bank accounts he controlled.
Mann’s scheme collapsed in late August and early September 2019, when one of his banks froze his accounts, setting off a chain of events that left his payroll companies unable to process payroll and tax payments for hundreds of small business customers nationwide.
On August 12, 2020, Mann pled guilty to one count of conspiracy to commit wire fraud, one count of aggravated identity theft, nine counts of bank fraud, and one count of filing a false tax return.
Mann’s scheme had multiple layers, including:
- Mann obtained tens of millions of dollars in loans from three financing companies, located in New York, Colorado and California, respectively, by falsifying his companies’ revenues and receivables. Mann falsely told the financing companies that Minnesota-based UnitedHealth Group Incorporated (“UHG”) and its subsidiary OptumInsight Inc. (“Optum”), owed millions of dollars to his companies. Mann created fake invoices reflecting the fictitious debt and assigned them to the financing companies as collateral for the loans.
- Mann fraudulently obtained a line of credit from several Capital Region banks; the line of credit had grown to $42 million by August 2019. To obtain the line of credit, Mann created companies whose sole purpose was to further the fraud by generating fake invoices, disguising sources of funds, and artificially inflating his assets; falsely represented to the banks that his fake businesses had revenues and receivables based on consulting work for Optum/UHG and other well-known companies, including 3M, Best Buy and T-Mobile; hid the tens of millions of dollars in loans he was receiving from the financing companies, and that he was using the line of credit to pay down these loans; and provided false financial statements, and individual and corporate tax returns, to his outside auditor, which in turn made inaccurate reports to the banks.
- Mann misappropriated payroll monies, entrusted to MyPayrollHR and other payroll companies he owned, by changing the instructions for digital Automated Clearing House (“ACH”) files that were supposed to transmit payroll from customers (employers) to the employees of the customers. Although his companies’ contracts with Cachet Financial Services specified that ACH transfers would route payroll funds from the employers’ accounts to a designated Cachet trust account and then directly to the customers’ employees, Mann changed the instructions inside digital ACH files provided to Cachet, in order to divert payroll funds into accounts that he controlled at Pioneer Bank. When Pioneer Bank froze Mann’s corporate accounts on or about August 30, 2019, it froze the payroll funds in those accounts, and caused several thousand people across the country to not receive a payroll payment.
Mann is the first person to be sentenced in connection with this fraud. A co-conspirator, former Optum employee Luke E. Steiner, age 33, of Minneapolis, Minnesota, pled guilty in February 2020 to conspiring with Mann to defraud two financing companies out of millions of dollars.This case was investigated by the FBI, as well as Internal Revenue Service-Criminal Investigation, and was prosecuted by Assistant U.S. Attorneys Michael Barnett and Cyrus P.W. Rieck.
- Mann obtained tens of millions of dollars in loans from three financing companies, located in New York, Colorado and California, respectively, by falsifying his companies’ revenues and receivables. Mann falsely told the financing companies that Minnesota-based UnitedHealth Group Incorporated (“UHG”) and its subsidiary OptumInsight Inc. (“Optum”), owed millions of dollars to his companies. Mann created fake invoices reflecting the fictitious debt and assigned them to the financing companies as collateral for the loans.
Union County Man Charged with Possessing Three Firearms and NarcoticsRead the Press Release
NEWARK, N.J. – A Union County resident was charged with possessing three firearms, as well as possessing with intent to distribute narcotics, Acting U.S. Attorney Rachael A. Honig announced today.
Orlando Perez, 38, of Elizabeth, New Jersey, is charged by complaint with possession of firearms and ammunition by a convicted felon, and possession with intent to distribute controlled substances. Perez appeared by videoconference this afternoon before U.S. Magistrate Judge Cathy L. Waldor and was detained.
According to documents filed in this case and statements made in court:
On Dec. 10, 2020, law enforcement officers lawfully searched Perez’s residence and recovered the following: one .38 caliber Smith and Wesson revolver loaded with five rounds of .38 caliber ammunition; a .45 caliber Harrington and Richardson semiautomatic carbine; a 20 gauge Browning shotgun; three magazines; approximately 1,500 rounds of ammunition; as well as heroin, fentanyl, cocaine, methamphetamine pills, and drug paraphernalia.
The narcotics offense carries a maximum potential penalty of 20 years in prison, and a fine of $1 million. The felon in possession of firearms and ammunition charge carries a maximum potential penalty of 10 years in prison and a maximum fine of $250,000.
Acting U.S. Attorney Honig credited special agents and task force officers with the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; and officers of the Elizabeth Police Department, under the direction of Police Director Earl Graves, with the investigation leading to the charges.
The government is represented by Special Assistant U.S. Attorney Stacey E. Zyriek Enriquez of the Violent Crimes Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Two North Louisiana Men Headed to Federal PrisonRead the Press Release
MONROE, La. - Acting United States Attorney Alexander C. Van Hook announced that two North Louisiana men each have been sentenced to 10 years in prison by United States District Judge Terry A. Doughty for offenses involving drug trafficking and illegal possession of firearms.
Derrick King Brooks, 45, of Monroe, Louisiana, was sentenced to spend 120 months (10 years) in prison, followed by 5 years of supervised release, for possession with intent to distribute cocaine and possession of a firearm during a drug trafficking offense. In February 2020, officers with the Monroe Police Department received a crime stoppers tip that Brooks was supplying cocaine in the Monroe area. Law enforcement agents with the Metro Narcotics Unit began investigating and surveilling the residence where Brooks was staying on Medra Street in Monroe. Through their investigation, agents seized baggies from Brooks’ residence containing chunks of cocaine residue which were sent to the lab for testing and was determined to be cocaine. A search warrant was obtained for the residence and arrest warrant for Brooks. Agents arrested Brooks as he was leaving from the residence and a search of the residence was conducted. In his vehicle, agents found baggies with cocaine, cash and two cell phones. A search of the residence resulted in more bags containing cocaine, other narcotics, a loaded semi-automatic pistol, cash and drug paraphernalia. In total, agents seized over $11,000 in cash, over 2,159 grams of powder cocaine, 29 grams of crack cocaine, and 38 pills.
The ATF and Monroe Police Department conducted the investigation. Assistant U.S. Attorney J. Aaron Crawford prosecuted the case.
Anthony Tywan Newton, 38, of Ruston, Louisiana, was sentenced to spend 124 months (10 years, 4 months) in prison, followed by 5 years of supervised release, for possession with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime. In March 2020, agents with the U.S. Drug Enforcement Administration (DEA) executed a search warrant at a residence on Eastland Avenue in Ruston. Agents seized plastic bags containing 17.5 grams of methamphetamine, 267 dosage units of MDMA, 7 dosage units of Xanax, 27 dosage units of penicillin, and 15 dosage units of Tylenol with codeine, as well as cash. When examining the serial numbers on the U.S. Currency, agents were able to determine that a portion of it was used in earlier controlled buys conducted by law enforcement agents and involving Newton. In addition to the drugs and cash, agents seized a pistol and rifle in Newton’s residence.
The DEA and ATF conducted the investigation. Assistant U.S. Attorney Robert F. Moody prosecuted the case.
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Two Men Admit Receiving over $500,000 in Global Robocall Scam that Defrauded Elderly VictimsRead the Press Release
CAMDEN, N.J. – Two Indian nationals today admitted to conspiracy to commit wire fraud by accepting illegally obtained wire transfers from victims across the country totaling over $600,000, Acting U.S. Attorney Rachael A. Honig announced.
Zeeshan Khan, 22, and Maaz Ahmed Shamsi, 24, pleaded guilty before U.S. District Judge Joseph Rodriguez in Camden federal court to an information charging each with one count of conspiracy to commit wire fraud.
According to documents filed in this case and statements made in court:
As part of an international fraud scheme, criminal India-based call centers utilized automated robocalls to victims with the intent of defrauding U.S. residents, particularly the elderly. After establishing contact with victims through these automated calls, other members of the conspiracy would coerce or trick the victims into sending large sums of cash through physical shipments or wire transfers to other members of the conspiracy, including Shamsi and Khan. These conspirators used a variety of schemes to convince victims to send money, including impersonating government officials from agencies such as the Social Security Administration, or impersonating law enforcement officers from the FBI or Drug Enforcement Administration, and threatened victims with severe legal or financial consequences if they did not comply. Another method utilized by the callers involved convincing the victims they were speaking with someone from a tech support company and coercing the victims into granting the caller remote access to their personal computers, and through that, to the victims’ bank accounts. By manipulating the victims’ bank accounts, the caller would convince the victims that an overpayment was made to the victims and ultimately instruct them to send money by way of mail or wire transfer to other members of the conspiracy, including Shamsi and Khan.
As part of this scheme, Shamsi and Khan are charged with receiving fraudulent wire transfers from 19 victims across the country totaling approximately $618,000.
The conspiracy to commit wire fraud charge carries a maximum penalty of 20 years in prison and a $250,000 fine or twice the amount of the loss, whichever is greatest. Sentencing for both defendants is scheduled for Dec. 6, 2021.
Acting U.S. Attorney Honig credited special agents of the Social Security Administration, Office of the Inspector General Office of Investigations, New York Field Division, under the direction of Special Agent in Charge John F. Grasso; and special agents of the Department of Homeland Security, Homeland Security Investigations (HSI) New York Field Office – El Dorado Task Force, under the direction of Special Agent in Charge Peter C. Fitzhugh, with the investigation leading to the charges.
The government is represented by Special Assistant U.S. Attorney Meriah Russell of the U.S. Attorney's Office Criminal Division in Camden.
Three drug traffickers convicted of drug and money laundering conspiracies, as well as illegal gun possession, following a two-week jury trialRead the Press Release
Seattle – Three men were convicted late yesterday of multiple federal felonies for distributing fentanyl disguised as oxycodone pills in Snohomish, Skagit and Whatcom Counties, announced Acting U.S. Attorney Tessa M. Gorman. The leader of the drug ring, Bradley Woolard, 42, of Arlington, was convicted of 28 counts involving conspiracy to distribute controlled substances, conspiracy to commit money laundering, money laundering, illegal gun possession, and possessing drugs with the intent to distribute them. Co-defendants Anthony Pelayo, 34, of Marysville, and Jerome Isham, 40, of Everett, were also convicted of conspiracies related to drug distribution and illegal gun possession.
The jury deliberated for two days following the ten-day trial. The men are scheduled for sentencing by U.S. District Judge John C. Coughenour on November 16, 2021.
According to testimony and exhibits during trial, the case began in the summer of 2018, when law enforcement officers from the Drug Enforcement Administration and the Snohomish Regional Drug and Gang Task Force obtained multiple court-authorized search warrants for Woolard’s home. On July 28, 2018, they found more than 12,000 fentanyl pills designed to look like 30 mg oxycodone prescription narcotic. The pills ultimately tested positive for furanyl fentanyl, an analogue of fentanyl and a controlled substance.
The pills were pale blue in color and had “M” printed on one side and “30” on the other side. Over the course of multiple searches, law enforcement seized more than $1 million in cash and gold from Woolard’s five-acre compound, including cash hidden behind drywall, in the ceilings of outbuildings, and in a hole beneath a dishwasher. Investigators also discovered a hidden room containing 29 firearms ranging from handguns to assault rifles, including four firearm silencers and several thousand rounds of ammunition.
Testimony at trial revealed that in 2015 and 2016, Woolard began buying fentanyl and furanyl fentanyl powder from China after researching how to do so on the Dark Web. He bought a pill press and mixing materials from websites such as Amazon and eBay and taught himself how to make homemade pills. Testimony at trial established that Woolard’s pill making operation was capable of producing more than 2.5 million pills containing fentanyl and furanyl fentanyl, and that he regularly provided thousands of pills to other conspirators for distribution. In 2017, Woolard turned the pill press operation over to Pelayo, who continued the manufacturing at a rural compound in Snohomish County. Woolard retained the role of ordering the fentanyl from China and continued to help Pelayo make and distribute the pills. Woolard continued to distribute the pills while seeking treatment for his own drug addictions at spa-like resorts in Costa Rica and Mexico which cost him between $30,000 and $50,000 per month, which he paid for with the profits of his illicit pill operation.
Jerome Isham was one of the conspiracy’s top distributors. Evidence at trial established that he was responsible for re-distributing close to 100,000 illegal fentanyl and furanyl fentanyl pills over a one-year period between July 2017, and June 2018. Isham also recruited people to receive the shipments of powdered fentanyl and furanyl fentanyl from China. Woolard and Pelayo paid for the drugs by recruiting co-conspirators to wire money to China or by paying with bitcoin.
Pelayo was also convicted of two money laundering conspiracies and multiple counts of money laundering, including using $100,000 of his cash drug proceeds to purchase a luxury RV. He was also convicted of possessing a firearm in furtherance of his drug trafficking – resulting in a 5 year consecutive prison term to any other sentence imposed in the case.
Woolard was convicted of being a drug user and drug addict in possession of firearms. Isham was convicted of being a felon in possession of a firearm.
Conspiracy and possession of fentanyl with intent to distribute is punishable by a mandatory minimum ten years in prison and up to life in prison. Being a felon in possession of a firearm, or a drug user and drug addict in possession of firearms, is punishable by up to ten years in prison. Money laundering is punishable by up to twenty years in prison.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF. The investigation is being led by the Drug Enforcement Administration (DEA) with assistance from the Snohomish Regional Drug and Gang Task Force (SRDGTF) and the Whatcom County Drug and Gang Task Force. A total of eleven defendants were charged in this case. Eight have pleaded guilty, and two have been sentenced. Woolard, Pelayo, and Isham were the final three defendants in this conspiracy to proceed to trial.
The case is being prosecuted by Assistant United States Attorneys Karyn Johnson and Mike Lang.
Texas Man Sentenced After Pleading Guilty to Making a False Statement to Law EnforcementRead the Press Release
NEW ORLEANS, LOUISIANA – EDMOND ARZATE, age 29, a resident of Houston, Texas, was sentenced to one year of probation by U.S. District Judge Jay C. Zainey after pleading guilty to a superseding bill of information charging him with making a false statement to a Special Agent of Homeland Security Investigations in violation of Title 18, United States Code, Section 1001 announced U.S. Attorney Duane A. Evans.
According to court documents, on October 12, 2017, a suspected drug trafficker informed a Homeland Security Investigations confidential source that a money courier would arrive in the Eastern District of Louisiana to collect funds for a previously conducted drug transaction. That evening, ARZATE contacted the source and instructed him to meet at a Waffle House in Mandeville, Louisiana. The source me with ARZATE and provided gave him with $30,000.00 in government funds as payment for the previously conducted drug transaction. ARZATE departed from the area but the Louisiana State Police conducted a traffic stop and obtained the money from his vehicle. A Homeland Security Investigations Special Agent and Louisiana State Police Trooper interviewed ARZATE regarding the money. ARZATE told the officers that he won the money playing poker at a Louisiana casino. When the officers asked if he had any receipts for the winnings, ARZATE changed his story and said he played “underground poker.” ARZATE then changed his story a second time and said he received the money from a “random guy” and provided no further information.
ARZATE faced a maximum term of imprisonment of five (5) years, a fine of up to $250,000.00 and three years of supervised release following any term of imprisonment.
This prosecution was part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
This case was investigated by the Department of Homeland Security-Office of Homeland Security Investigations and the Louisiana State Police. The prosecution was handled by Assistant United States Attorney André Jones.
Ten Chicago-Area Residents Charged in Bank Fraud Schemes Involving Counterfeit Postal Service Money OrdersRead the Press Release
CHICAGO — Ten Chicago-area residents have been indicted on federal fraud charges for allegedly scheming to cash counterfeit U.S. Postal Service money orders.
The defendants deposited the counterfeit USPS money orders into various bank accounts to which they had access and then quickly withdrew the funds before the banks learned of the fraudulent nature of the deposits, according to indictments returned July 28, 2021, in U.S. District Court in Chicago. The defendants had purchased or caused to be purchased the money orders from post offices in amounts less than $10, so that the orders could then be altered to higher amounts – typically between $800 and $1,000 – before the deposits, the charges allege.
Charged with bank fraud are NATHAN R. CHAVIS, 29, of Chicago, Ill.; MARVIN L. COLE, 29, of Chicago Heights, Ill.; REGINALD RUSSELL, 29, of Glenwood, Ill.; DARIUS D. GOODWIN, 26, of Country Club Hills, Ill.; VICTOR J. JOHNSON, 27, of Oak Forest, Ill.; LANCE BRANDON COLE, 27, of Richton Park, Ill.; MUNANG O. EKOI, 26, of Lisle, Ill.; SERNARD D. GILL, JR., 26, of Matteson, Ill.; ARMANI M. SPENCER-SPRATTLIN, 32, of Park Forest, Ill.; and ALEXANDER S. COCROFT, 28, of Country Club Hills, Ill.. Most of the defendants have made initial appearances in federal court in Chicago.
The indictments were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and William Hedrick, Inspector-in-Charge of the Chicago Division of the U.S. Postal Inspection Service. The Elmhurst, Ill., Police Department provided valuable assistance. The government is represented by Assistant U.S. Attorneys L. Heidi Manschreck and Ramon Villalpando.
According to the indictments, Chavis caused at least $158,610 in altered and counterfeit money orders to be deposited into third-party bank accounts; Marvin Cole and Russell were responsible for at least $132,593; Goodwin, Johnson, Lance Cole, Ekoi, Gill, and Spencer-Sprattlin were responsible for at least $895,000; and Cocroft was responsible for at least $207,985.
Bank fraud is punishable by up to 30 years in federal prison. If convicted, the Court must impose reasonable sentences under federal statutes and the advisory United States Sentencing Guidelines.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Tacoma couple caught with more than 23 pounds of methamphetamine sentenced to lengthy prison termsRead the Press Release
Seattle – A Tacoma couple who had large quantities of methamphetamine, cocaine and MDMA in their home were sentenced today in U.S. District Court in Tacoma for being armed drug traffickers, announced Acting U.S. Attorney Tessa M. Gorman. Jaymes Arthur Gallagher, 34, was sentenced to 7 years in prison and Brittany Nicole Chipman, 28, was sentenced to 5-and-a-half years in prison. U.S. District Judge Benjamin H. Settle ordered both to be on four years of supervised release following their prison terms. “The quantity of methamphetamine in this case is staggering… and it is not just addicts that are suffering, it is their families too,” Judge Settle said at the Chipman sentencing hearing.
According to records filed in the case, Gallagher came to the attention of law enforcement as a significant distributor of methamphetamine in the Thurston County and Tacoma areas. After some undercover purchases in August 2019, law enforcement obtained a court authorized search warrant for the home Gallagher and Chipman shared. In the home, officers seized 6 pounds of MDMA, more than a pound of cocaine, and more than 4 pounds of methamphetamine. In a detached garage on the property, officers located another 19 pounds of methamphetamine. There was $76,000 in cash in the house as well as a shotgun and a pistol that the couple admit were used to protect their drug operation. Gallagher admitted to officers that he purchased 20-30 pounds of methamphetamine from a California source every week or so, and would then distribute the meth in Western Washington.
The couple was indicted in October 2019, and each pleaded guilty to conspiracy to distribute controlled substances and possession of a firearm in furtherance of a drug trafficking crime, in March 2020.
In her sentencing memo, Assistant United States Attorney Angelica Williams noted that Gallagher “has introduced hundreds of thousands of doses of harmful narcotics into Western Washington. He made a profit. He purchased firearms and kept them loaded to protect his business. He turned a blind eye to the harm he was doing to the community…. His drug distribution has undoubtedly affected many lives.”
The case was investigated by the Drug Enforcement Administration (DEA) with assistance from the Joint Narcotics Enforcement Team (JNET).
The case is being prosecuted by Assistant United States Attorney Angelica Williams.
Tacoma Landlord Agrees to Pay $16,618 for Overcharging Homeless Veteran Tenant and Fraudulently Obtaining Federal FundsRead the Press Release
Sunrhys, LLC, a landlord and property management company headquartered in Tacoma, Washington, agreed to pay $16,618 to resolve allegations that it violated the False Claims Act by overcharging a tenant and by fraudulently obtaining federal funds from a federal program designed to provide housing to homeless Veterans.
The United States Department of Housing and Urban Development (HUD) and United States Department for Veterans Affairs (VA) jointly administer the HUD-VA Support Housing (HUD-VASH) program. HUD provides rental assistance for Veterans experiencing homelessness, while VA support services assist homeless veterans in identifying, obtaining, and maintaining housing and other needed support services. At the end of Fiscal Year 2020, approximately 80,000 formerly homeless Veterans were receiving permanent housing through the HUD-VASH program.
“In creating the VA’s predecessor agency, President Abraham Lincoln said that we must ‘care for him who shall have borne the battle,’” said Joseph H. Harrington, Acting U.S. Attorney for the Eastern District of Washington. “No Veteran who has served our country and given everything to protect the safety and comfort of Americans should be himself or herself without the safety and comfort of a home. The HUD-VASH program provides important benefits to homeless Veterans. This settlement is an example of the United States Attorney’s Office for the Eastern District of Washington’s commitment to ensuring the integrity of that program.”
Between July 2019 and April 2020, Sunrhys was a participating landlord in the HUD-VASH program with respect to a Sunrhys rental property in Walla Walla, Washington that Sunrhys rented to Daniel Avila, an eligible Veteran. Each month, Sunrhys collected a portion of the monthly rent for the Walla Walla property from Mr. Avila. Sunrhys then submitted a claim for federal rent support funds for the remainder of the total agreed-upon rent. Pursuant to the Housing Assistance Payment Agreement governing Sunrhys’ participation in the program, Sunrhys was expressly prohibited from seeking or collecting additional rent from Mr. Avila in excess of the eligible amount. The United States alleged that Sunrhys violated the Agreement and the HUD-VASH program requirements by fraudulently overcharging Mr. Avila for monthly rent between July 2019 and April 2020.
Jason Root, Special Agent in Charge at the VA Office of Inspector General, stated, “VA OIG’s joint oversight of HUD-VASH is one of the agency’s highest priorities because of the importance of safeguarding grant programs designed to end veteran homelessness. VA OIG thanks the U.S. Attorney’s Office for the Eastern District of Washington and the HUD Office of General Counsel for their partnership and commitment to protecting at-risk homeless veterans.”
This matter originated when Mr. Avila filed a whistleblower, or “qui tam” complaint in February 2021. When a relator files a qui tam complaint, the False Claims Act requires the United States to investigate the allegations and elect whether to intervene and take over the action or to decline to intervene and allow the relator to go forward with the litigation on behalf of the United States. The relator is generally able to then share in any recovery. Here, the United States intervened in the action contemporaneous with the settlement. Mr. Avila will receive $4,154 of the settlement. Mr. Avila was represented by the Northwest Justice Project, Washington’s largest publicly funded legal aid program, which provides civil legal assistance and representation to low-income people in cases affecting basic human needs such as family safety and security, housing preservation, protection of income, access to health care, education and other basic needs.
“Under the False Claims Act, landlords that overcharge tenants under this program are liable not just to repay the amount that they overcharged their tenants, but for three times the total amount of federal funding that the landlord received in rent support payments plus additional penalties for each month, providing a powerful deterrent to fraud,” added Acting U.S. Attorney Harrington. “I want to especially commend the exceptional investigative work performed by the VA’s Office of Inspector General, Spokane Resident Agency, as well as the excellent work done by the Northwest Justice Project, which represented the whistleblower. Our office will continue to work together with our law enforcement partners, with whistleblowers, and with public interest groups like Northwest Justice Project to hold accountable landlords that abuse critical housing programs.”
The settlement was the result of a joint investigation conducted by the VA Office of Inspector General and the U.S. Attorney’s Office for the Eastern District of Washington, with support provided by HUD’s Office of General Counsel, Office of Program Enforcement and HUD’s Office of Inspector General. The investigation and prosecution for the U.S. Attorney’s Office for the Eastern District of Washington was handled by Assistant United States Attorneys Dan Fruchter and Tyler H.L. Tornabene. The claims resolved by the civil settlement are allegations only and there has been no determination of liability. The case is captioned United States ex rel. Avila v. Sunrhys, LLC, 4:21-cv-5013-TOR (E.D. Wash.).
Sturgis Man Sentenced to 15 ½ Years for Meth Trafficking ConspiracyRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Sturgis, South Dakota, man who pleaded guilty to Conspiracy to Distribute a Controlled Substance was sentenced on July 28, 2021, by U.S. District Court Judge Karen E. Schreier.
John Thornberry, age 24, was sentenced to 15 1/2 years in federal prison, followed by five years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
John Thornberry was indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury on September 17, 2020. He pleaded guilty on May 7, 2021. The defendant was stopped by law enforcement in June 2020 and found in possession of multiple firearms. He was prohibited from possessing those firearms, which he forfeited as part of his plea agreement.
During his involvement in the conspiracy, methamphetamine was brought to South Dakota by others. The defendant then dispersed methamphetamine to others for use and further distribution, primarily in the Rapid City area.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Unified Narcotics Enforcement Team (UNET), Drug Enforcement Agency, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. UNET is comprised of law enforcement from the Pennington County Sheriff’s Office, Rapid City Police Department, South Dakota Division of Criminal Investigation, South Dakota National Guard, and the South Dakota Highway Patrol. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Thornberry was immediately returned to the custody of the U.S. Marshals Service.
Spirit Lake Man Pleads Guilty in Federal Court to Felon in Possession of a FirearmRead the Press Release
A Spirit Lake Man was sentenced July 30, 2021 to more than 5 years in federal prison.
Dylan Robert Hurd, age 30, from Spirit Lake, Iowa, received the prison term after a February 18, 2021, guilty plea to possession of a firearm by a felon.
At the plea hearing, Hurd admitted to knowing he was restricted from possessing a firearm after being convicted in 2017 of assault causing serious bodily injury in Dickinson County, Iowa. Hurd knowingly possessed a .380 ACP caliber Smith & Wesson M&P handgun.
Hurd was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand to 63 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Hurd is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Ron Timmons and was investigated by the Spirit Lake Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-4076.
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Sparta Man Sentenced for $600,000 Tax EvasionRead the Press Release
SPRINGFIELD, Mo. – A Sparta, Missouri, man has been sentenced in federal court for failing to pay more than $600,000 in federal taxes.
Jeffrey Scott Allen, 52, was sentenced by U.S. District Judge M. Douglas Harpool on Tuesday, Aug. 3, to two years in federal prison without parole. The court also ordered Allen to pay $758,517 in restitution.
On Sept. 1, 2020, Allen pleaded guilty to one count of tax evasion. Allen admitted that he evaded, and failed to pay, $606,338 in federal taxes and $96,478 in state taxes from 2012 through 2017.
Allen, who operates his own business, has worked as a successful installer for satellite-based internet and television for the past 21 years. According to court documents, he utilizes contract labor with five separate contractors, claims a gross annual profit of $2.1 million, and takes a $6,000 draw each month from the business.
According to court documents, Allen substantially underreported net income from his business and paid most of his and his family’s personal expenses from his business accounts. By underreporting his income, Allen was able to illegally receive federal benefits to which he was not entitled. Allen fraudulently received $15,856 in Medicaid benefits for three of his children, $4,392 in free and reduced school lunches for his children, and $35,453 in federal student aid under the Pell Grant program. Allen is required to repay federal and state agencies for those benefits under the court’s restitution order.
This case was prosecuted by Supervisory Assistant U.S. Attorney Randall D. Eggert. It was investigated by IRS-Criminal Investigation, Missouri Department of Revenue – Criminal Tax Investigation Bureau, Missouri Department of Social Services – Welfare Investigations Unit, U.S. Department of Education – Office of Inspector General, and USDA – Office of Inspector General.
Smithfield Man Sentenced to Three Life Sentences for Human TraffickingRead the Press Release
RALEIGH, N.C. – A Smithfield man was sentenced today to three consecutive life sentences in prison for conspiracy to commit sex trafficking by force, fraud, or coercion and of a minor; sex trafficking by force fraud and coercion; sex trafficking of a minor; using the internet to promote a prostitution business enterprise (ITAR); and possession of a firearm by a convicted felon. On March 1, 2021, Jenkins was convicted of those crimes by a jury after a five-day trial. Jenkins was also ordered to pay restitution in an amount of at least $418,361.70.
According to court records and evidence presented at trial, Jonathan Lynn Jenkins, aka “Max,” 48, and his co-conspirator prostituted many women between November 2014 and October 2015, including minors. The victims were young, vulnerable, and often struggling to survive. After luring the victims with promises of food, shelter, and a better life, Jenkins and his co-conspirator manipulated and controlled the victim’s lives, isolating them, withholding food, and keeping all money the victims earned. The defendant beat and choked the victims, sometimes to unconsciousness. He emotionally and psychologically abused them. Among other threats, he claimed to have magical powers that allowed him to hunt down victims and kill them. He sexually assaulted victims and forced them into sexual acts against their will. And he attempted to murder a man who helped one victim escape.
Before imposing the sentence, Judge Dever described Jenkins as “an extraordinarily dangerous human being” and his crimes as a “form of modern-day slavery.”
Jenkins was convicted of second-degree murder in North Carolina state court in 2006, and first-degree murder charges are pending against him in state court in Johnston County, North Carolina.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Department of Homeland Security – Homeland Security Investigations, the Raleigh Police Department, the North Carolina State Bureau of Investigation, and the Johnston County Sheriff’s Office investigated the case. Assistant U.S. Attorneys Erin Blondel and Lucy Brown prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:18-CR-451-D.
Shreveport Man Convicted of Illegal Possession of FirearmRead the Press Release
SHREVEPORT, La. – Lee Antonio Dunlap a.k.a Ra El Bey, 40, of Shreveport, Louisiana, was sentenced today by Chief United States District Judge S. Maurice Hicks, Jr. to spend 60 months in prison, followed by 3 years of supervised release, for being a felon in possession of a firearm, Acting United States Attorney Alexander C. Van Hook announced.
According to information presented to the court at the guilty plea hearing for Dunlap, on or about May 17, 2019, a Shreveport Police Department officer conducted a traffic stop of Dunlap’s vehicle near the intersection of Line Avenue and Olive Street in Shreveport. Dunlap was the driver and only occupant of the vehicle. When the officer approached the vehicle, he observed a firearm in plain view on the passenger seat. The firearm was seized and determined to be loaded with 15 rounds of ammunition.
Dunlap was previously convicted of a felony offense and knew that he was prohibited from possessing the firearm. His previous convictions are for possession with intent to distribute marijuana (2014), possession or introduction of contraband into a penal institution (2011), simple burglary of an inhabited dwelling (2007), and simple arson (2000).
The ATF and Shreveport Police Department conducted the investigation. Assistant U.S. Attorney Brian C. Flanagan prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN is part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
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