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Wednesday 26 May 2021
Former Klamath Falls Police Officer Faces Federal Charges for Stealing Methamphetamine and Fentanyl from Evidence RoomRead the Press Release
MEDFORD, Ore.—A two-count indictment was unsealed today charging a former Klamath Falls, Oregon police officer for stealing methamphetamine and fentanyl from an evidence room.
Thomas Dwayne Reif, 27, has been charged with two counts of possessing a controlled substance by misrepresentation, fraud, forgery, deception, or subterfuge.
According to the indictment, on or about November 27, 2020, Reif is alleged to have entered the Klamath Falls Police Department’s temporary evidence room using an unauthorized key and removed an evidence item containing methamphetamine and fentanyl. Reif briefly left the evidence room before returning the evidence item to the evidence locker and leaving the facility.
Shortly thereafter, Reif overdosed while operating his police car. The car jumped a median, travelled into oncoming traffic, and caused a multiple-vehicle accident. Reif was rushed to the hospital and successfully revived by medical personnel. Toxicology reports showed that Reif was under the influence of substances including methamphetamine and fentanyl.
Investigators searched the personal locker assigned to Reif at the Klamath Falls Police Department. Inside the locker, investigators found that Reif had concealed an evidence bag containing methamphetamine.
Reif made his initial appearance in federal court today before a U.S. Magistrate Judge. He was arraigned, pleaded not guilty, and released pending a jury trial scheduled to begin on August 3, 2021.
If convicted, Reif faces a maximum sentence of four years in federal prison, one year of supervised release, and a fine of $250,000.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the Federal Bureau of Investigation with Oregon State Police and is being prosecuted by John C. Brassell, Assistant U.S. Attorney for the District of Oregon. Klamath Falls Police Department cooperated and provided assistance throughout the investigation.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Former Doctor Sentenced to Prison for Illegally Prescribing OxycodoneRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that JENNIFER FARRELL, 38, of Chapel Hill, North Carolina, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 30 days of imprisonment, followed by three years of supervised release, for writing illegal prescriptions for oxycodone while she was a doctor in New Haven. Judge Meyer also ordered Farrell to perform 600 hours of community service while she is on supervised release.
According to court documents and statements made in court, Farrell was a medical resident at Yale New Haven Health (“YNHH”) in its Emergency Department from July 2017 until June 2019. From March 2018 to March 2019, Farrell wrote more than 50 prescriptions for oxycodone for non-legitimate medical purposes outside the scope of her professional practice in the name of at least five individuals. Farrell did not see any of the other individuals for any medical purpose at any YNHH facility during the entire period of her residency. In total, she wrote illegal prescriptions for nearly 4,000 oxycodone tablets during that approximately one-year period.
Farrell was arrested on July 31, 2019. On March 4, 2021, she pleaded guilty to distribution of controlled substances outside the scope of her professional practice and without a legitimate medical purpose.
This investigation was conducted by the Federal Bureau of Investigation and the Drug Enforcement Administration, Diversion Control Group. The case was prosecuted by Assistant U.S. Attorney Heather Cherry.
Former Chief of Staff to Illinois Speaker of the House Indicted for Allegedly Lying Under Oath to Federal Grand JuryRead the Press Release
CHICAGO — The former Chief of Staff to the Illinois Speaker of the House of Representatives was indicted today for allegedly providing false material declarations under oath to a federal grand jury and attempting to obstruct its investigation into allegations of public corruption.
TIMOTHY MAPES, 66, of Springfield, Ill., is charged with one count of making false declarations before a grand jury and one count of attempted obstruction of justice, according to an indictment returned in U.S. District Court in Chicago. Arraignment has not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and Tamera Cantu, Acting Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago. The government is represented by Assistant U.S. Attorneys Julia Schwartz, Amarjeet S. Bhachu, Diane MacArthur, Timothy J. Chapman, Sarah E. Streicker, Matthew L. Kutcher, and Michelle Kramer. The officials noted that the federal investigation into the allegations of public corruption remains ongoing.
According to the indictment, the federal grand jury was investigating possible violations of federal criminal law, including efforts by the Illinois Speaker of the House and an individual acting on the Speaker’s behalf, to obtain for others private jobs, contracts, and monetary payments, including from Commonwealth Edison (“ComEd”), the largest electric utility in Illinois, to influence and reward the Speaker in the Speaker’s official capacity. On March 24, 2021, Mapes was granted immunity to testify before the grand jury. The immunity order provided that no testimony or evidence provided by Mapes could be used against him in a criminal case, except for perjury, giving a false statement, or otherwise failing to comply with the immunity order.
On March 31, 2021, Mapes testified before the grand jury and knowingly made false material declarations in response to several questions about a consultant’s relationship with the Speaker from 2017 to 2019, the indictment states. Mapes in his testimony denied knowing that the consultant acted as an agent or performed work for the Speaker during those years, when, in fact, Mapes knew that the consultant carried out work and assignments on behalf of the Speaker and communicated messages on the Speaker’s behalf, the indictment states.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. The obstruction charge is punishable by up to 20 years in federal prison, while the false declaration charge carries a maximum sentence of five years.
Former Chief of Staff to Illinois Speaker of the House Indicted for Allegedly Lying Under Oath to Federal Grand JuryRead the Press Release
CHICAGO — The former Chief of Staff to the Illinois Speaker of the House of Representatives was indicted today for allegedly providing false material declarations under oath to a federal grand jury and attempting to obstruct its investigation into allegations of public corruption.
TIMOTHY MAPES, 66, of Springfield, Ill., is charged with one count of making false declarations before a grand jury and one count of attempted obstruction of justice, according to an indictment returned in U.S. District Court in Chicago. Arraignment has not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and Tamera Cantu, Acting Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago. The government is represented by Assistant U.S. Attorneys Julia Schwartz, Amarjeet S. Bhachu, Diane MacArthur, Timothy J. Chapman, Sarah E. Streicker, Matthew L. Kutcher, and Michelle Kramer. The officials noted that the federal investigation into the allegations of public corruption remains ongoing.
According to the indictment, the federal grand jury was investigating possible violations of federal criminal law, including efforts by the Illinois Speaker of the House and an individual acting on the Speaker’s behalf, to obtain for others private jobs, contracts, and monetary payments, including from Commonwealth Edison (“ComEd”), the largest electric utility in Illinois, to influence and reward the Speaker in the Speaker’s official capacity. On March 24, 2021, Mapes was granted immunity to testify before the grand jury. The immunity order provided that no testimony or evidence provided by Mapes could be used against him in a criminal case, except for perjury, giving a false statement, or otherwise failing to comply with the immunity order.
On March 31, 2021, Mapes testified before the grand jury and knowingly made false material declarations in response to several questions about a consultant’s relationship with the Speaker from 2017 to 2019, the indictment states. Mapes in his testimony denied knowing that the consultant acted as an agent or performed work for the Speaker during those years, when, in fact, Mapes knew that the consultant carried out work and assignments on behalf of the Speaker and communicated messages on the Speaker’s behalf, the indictment states.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. The obstruction charge is punishable by up to 20 years in federal prison, while the false declaration charge carries a maximum sentence of five years.
Former Bordentown Township Police Chief Sentenced to 28 Months in Prison for Lying to FBIRead the Press Release
CAMDEN, N.J. – The retired chief of the Bordentown Township Police Department was sentenced today to 28 months in prison for lying to FBI agents who were questioning him about violating an 18-year-old man’s civil rights during an arrest, Acting U.S. Attorney Rachael A. Honig announced.
Frank M. Nucera Jr., 64, of Bordentown, New Jersey, was convicted in October 2019 of one count of making false statements to FBI agents who were interviewing him about an arrest that occurred on Sept. 1. 2016. Nucera is also charged by indictment with one count of hate crime assault and one count of deprivation of civil rights under color of law; a mistrial was declared on those counts, and he is awaiting retrial.
According to documents filed in this case and the evidence at trial:
On Sept. 1, 2016, two Bordentown Township police officers responded to a phone call from the Bordentown Ramada, complaining that two teenagers had stayed in a room at the hotel without paying. The teens were listed in the indictment as “Civilian 1,” an 18-year-old African American teenager, and “Civilian 2,” a 16-year-old African American girl. After the officers arrived and questioned the teenagers, the situation allegedly escalated into a physical confrontation, with both teens attempting to resist arrest. The officers called for backup, and numerous officers, including then-Chief Nucera, arrived on the scene.
After Civilian 1 was handcuffed and was being escorted out of the hotel by police, Nucera allegedly approached him from behind and slammed the teenager’s head into a metal doorjamb. During a video recorded interview by FBI special agents, Nucera falsely stated multiple times that he did not touch Civilian 1 during the arrest.
In addition to the prison term, Judge Kugler sentenced Nucera to two years of supervised release. He also ordered that Nucera will not begin serving his sentence until the remaining counts are resolved.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to the charges and today’s sentencing.
The government is represented by Molly S. Lorber, Attorney in Charge of the Camden Office, and Senior Civil Rights Counsel R. Joseph Gribko.
The remaining two counts of the indictment on which Nucera will be retried are merely accusations, and he remains innocent unless and until proven guilty.
Florida Man Sentenced to 35 Years for Production of Child Pornography in Arizona, Minnesota, and South CarolinaRead the Press Release
TUCSON, Ariz. – Jeremy McCown, 39, of Wesley Chapel, Florida, was sentenced yesterday by U.S. District Judge Raner C. Collins to 35 years in prison. McCown previously pleaded guilty to fourteen counts of Production of Child Pornography.
McCown was arrested on January 31, 2019, after an investigation identified his repeated use of false personas to place online ads seeking models in exchange for money. McCown would then demand sexually explicit images from the women and minor children who responded to his ads. McCown convinced one woman to send sexually explicit images of her 1-year-old daughter and manipulated two other minors into sending sexually explicit images to him. He was charged with twelve counts of production of child pornography in Arizona. McCown entered into a plea agreement on January 13, 2020, which also included pleading guilty to conduct involving minor victims in Minnesota and South Carolina.
Upon release from prison, McCown will be placed on lifetime supervised release. He will be required to register as a sex offender and to complete a sex offender treatment program. McCown was also ordered to pay restitution to victims depicted in the child sex abuse images he produced.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A Tucson Police Department Crimes Against Children Detective conducted the investigation in this case in collaboration with the Federal Bureau of Investigation (FBI), Tucson. Agents from Homeland Security Investigations (HSI) and FBI participated in the investigation in Florida. Carin C. Duryee, Carmen C. Corbin, and Adam Rossi, Assistant U.S. Attorneys, District of Arizona, Tucson, handled the prosecution, with assistance from AUSA Francis Murray in the Middle District of Florida.
CASE NUMBER: CR 19-00183-TUC-RCC
RELEASE NUMBER: 2021- 035_McCown# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Drug Courier for the Pagans Motorcycle Club Pleads GuiltyRead the Press Release
PITTSBURGH, PA - A resident of Erie, Pennsylvania, pleaded guilty in federal court to a charge of violating federal narcotics trafficking laws, Acting United States Attorney Stephen R. Kaufman announced today.
Mark Stockhausen, 40, pleaded guilty to one count before United States District Judge Robert J. Colville.
In connection with the guilty plea, the court was advised that the Greater Pittsburgh Safe Streets Task Force, led by the Federal Bureau of Investigation, conducted a long-term investigation into drug-trafficking and illegal firearms activity occurring in the Western District of Pennsylvania, involving, among others, members and associates of the Pagans Motorcycle Club (MC). One of the targets of the investigation was co-defendant Bill Rana, who is a "fully patched" member of the PMC and Sergeant of Arms for the Pittsburgh Chapter of the MC. Rana is charged in Counts One (methamphetamine) and Two (cocaine) of the Indictment.
Beginning in August of 2020 and continuing through November 2020, the Court was further informed, that the FBI conducted a federal Title III investigation, which resulted in the interception of thousands of wire and electronic communications over a total of ten telephones. Stockhausen was intercepted over the telephone operated by Rana and also communicated with Rana over Facebook Messenger.
Through the investigation, Mr. Stockhausen was identified as an associate of Mr. Rana’s and a courier for Mr. Rana’s drug trafficking operation, obtaining cocaine from co-defendant Hasani James in Michigan and returning to the WD of PA with the cocaine, which was then distributed by members of the conspiracy.
Mr. Stockhausen, at the hearing, accepted responsibility for the sale of and/or could otherwise foresee the possession/distribution of at least, approximately, 252 grams of cocaine.
Judge Colville scheduled sentencing for Sept. 29, 2021 at 9:00 a.m. The law provides for a total sentence of not more than 20 years in prison, a fine of not more than $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Rebecca L. Silinski is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the United States Postal Inspection Service, Drug Enforcement Administration, United States Marshals Fugitive Task Force, Allegheny County Sheriff’s Office, Pennsylvania State Police, Pittsburgh Bureau of Police, and the Pennsylvania Office of Attorney General Bureau of Narcotics Investigations. Other assisting agencies include the Allegheny County Police Department Homicide, Baldwin Police Department, Brentwood Police Department, McKees Rocks Police Department, Stowe Township Police Department and West Deer Township Police Department.
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.
DOJ Announces Coordinated Law Enforcement Action to Combat Health Care Fraud Related to COVID-19Read the Press Release
FORT SMITH – The Department of Justice today announced criminal charges against 14 defendants, including 11 newly-charged defendants and three who were charged in superseding indictments, in seven federal districts across the United States for their alleged participation in various health care fraud schemes that exploited the COVID-19 pandemic and resulted in over $143 million in false billings.
“The multiple health care fraud schemes charged today describe theft from American taxpayers through the exploitation of the national emergency,” said Deputy Attorney General Lisa O. Monaco. “These medical professionals, corporate executives, and others allegedly took advantage of the COVID-19 pandemic to line their own pockets instead of providing needed health care services during this unprecedented time in our country. We are committed to protecting the American people and the critical health care benefits programs created to assist them during this national emergency, and we are determined to hold those who exploit such programs accountable to the fullest extent of the law.”
As part of the national takedown, Billy Joe Taylor, 42, of Lavaca, Arkansas, was charged by criminal complaint with health care fraud in connection with an alleged scheme to defraud the United States of over $88 million, including over $42 million in false and fraudulent claims during the COVID-19 health emergency that were billed in combination with claims that were submitted for testing for COVID-19 and other respiratory illnesses. Taylor, the owner and operator of Vitas Laboratories LLC and Beach Tox LLC, two testing laboratories, allegedly used access to beneficiary and medical provider information from prior laboratory testing orders to submit fraudulent claims for urine drug tests and other laboratory tests, including respiratory pathogen panel and COVID-19 tests, that were not actually ordered or performed. The complaint also alleges that hundreds of claims were submitted for beneficiaries after they had died or otherwise ceased providing samples.
“While the COVID-19 pandemic was raging, and Americans were suffering from the economic and health crisis brought on by this pandemic, these defendants were allegedly scheming to steal millions of dollars set aside to help ailing Americans through COVID-19 testing and other federal health-care programs,” said Acting U.S. Attorney David Clay Fowlkes. “This case demonstrates the importance of investigating and prosecuting those who would seek to line their own pockets by stealing funds set aside to help those struggling with the symptoms of COVID-19 and other health ailments.”
Additionally, the Center for Program Integrity, Centers for Medicare & Medicaid Services (CPI/CMS) separately announced today that it took adverse administrative actions against over 50 medical providers for their involvement in health care fraud schemes relating to COVID-19 or abuse of CMS programs that were designed to encourage access to medical care during the pandemic.
“Medical providers have been the unsung heroes for the American public throughout the pandemic,” said FBI Director Christopher Wray. “It’s disheartening that some have abused their authorities and committed COVID-19 related fraud against trusting citizens. The FBI, along with our federal law enforcement and private sector partners, are committed to continuing to combat healthcare fraud and protect the American people.”
The defendants in the cases announced today are alleged to have engaged in various health care fraud schemes designed to exploit the COVID-19 pandemic. For example, multiple defendants offered COVID-19 tests to Medicare beneficiaries at senior living facilities, drive-through COVID-19 testing sites, and medical offices to induce the beneficiaries to provide their personal identifying information and a saliva or blood sample. The defendants are alleged to have then misused the information and samples to submit claims to Medicare for unrelated, medically unnecessary, and far more expensive laboratory tests, including cancer genetic testing, allergy testing, and respiratory pathogen panel tests. In some cases, and as alleged, the COVID-19 test results were not provided to the beneficiaries in a timely fashion or were not reliable, risking the further spread of the disease, and the genetic, allergy, and respiratory pathogen testing was medically unnecessary, and, in many cases, the results were not provided to the patients or their actual primary care doctors. The proceeds of the fraudulent schemes were allegedly laundered through shell corporations and used to purchase exotic automobiles and luxury real estate.
“It’s clear fraudsters see the COVID-19 pandemic as a money-making opportunity — creating fraudulent schemes to victimize beneficiaries and steal from federal health care programs,” said Deputy Inspector General for Investigations Gary L. Cantrell of Health and Human Services – Office of Inspector General (HHS-OIG). “Our agency and its law enforcement partners are aggressively and effectively investigating these egregious crimes, which is made equally clear given the results of this takedown. We will continue to support the unprecedented COVID-19 public health effort by holding accountable people who use deceptive tactics to profit from the pandemic.”
In another type of COVID-19 health care fraud scheme announced today, defendants are alleged to have exploited policies that were put in place by CMS to enable increased access to care during the COVID-19 pandemic. For example, pursuant to the COVID-19 emergency declaration, telehealth regulations and rules were broadened so that Medicare beneficiaries could receive a wider range of services from their doctors without having to travel to a medical facility. The cases announced today include first in the nation charges for allegedly exploiting these expanded policies by submitting false and fraudulent claims to Medicare for sham telemedicine encounters that did not occur. As part of these cases, medical professionals are alleged to have offered and paid bribes in exchange for the medical professionals’ referral of medically unnecessary testing.
The law enforcement action today also includes the third set of criminal charges related to the misuse of Provider Relief Fund monies. The Provider Relief Fund is part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a federal law enacted March 2020 designed to provide needed medical care to Americans suffering from COVID-19.
The Fraud Section is prosecuting the cases in the following districts: Western District of Arkansas, Northern District of California, Middle District of Louisiana, Central District of California, Southern District of Florida, District of New Jersey, and the Eastern District of New York.
Today’s enforcement actions were led and coordinated by Assistant Chief Jacob Foster and Trial Attorneys Rebecca Yuan and Gary A. Winters of the National Rapid Response Strike Force of the Health Care Fraud Unit of the Criminal Division’s Fraud Section, in conjunction with the Health Care Fraud Unit’s Medicare Fraud Strike Forces (MFSF) in Miami, Los Angeles, the Gulf Coast, and Brooklyn, as well as the U.S. Attorneys’ Offices for the Northern District of California, Western District of Arkansas, and Middle District of Louisiana.
The case here in the Western District of Arkansas is being prosecuted by Senior Litigation Counsel James Hayes and Trial Attorney D. Keith Clouser of the National Rapid Response Strike Force, and Assistant U.S. Attorney Kenneth Elser of the U.S. Attorney’s Office for the Western District of Arkansas.
The MFSF is a partnership among the Criminal Division, U.S. Attorneys’ Offices, the FBI and HHS-OIG. In addition, U.S. Postal Inspection Service, Internal Revenue Service Criminal Investigation, Veterans Affairs Office of Inspector General, Department of Defense Office of Inspector General, Federal Deposit Insurance Corporation, Louisiana Medicaid Fraud Control Unit, and other federal and state law enforcement agencies participated in the law enforcement action.
The law enforcement action was brought in coordination with the Health Care Fraud Unit’s COVID-19 Interagency Working Group, which is chaired by the National Rapid Response Strike Force and organizes efforts to address illegal activity involving health care programs during the pandemic.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 federal districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
The Department of Justice needs the public’s assistance in remaining vigilant and reporting suspected fraudulent activity. To report suspected fraud, contact the National Center for Disaster Fraud (NCDF) at (866) 720-5721 or file an online complaint at: https://www.justice.gov/disaster-fraud/webform/ncdf-disaster-complaint-form. Complaints filed will be reviewed at the NCDF and referred to federal, state, local, or international law enforcement or regulatory agencies for investigation.
To learn more about the department’s COVID response, visit: https://www.justice.gov/coronavirus. For further information on the Criminal Division’s enforcement efforts on PPP fraud, including court documents from significant cases, visit the following website: https://www.justice.gov/criminal-fraud/ppp-fraud.
Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
An indictment, complaint, or information is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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DOJ Announces Coordinated Law Enforcement Action to Combat Health Care Fraud Related to COVID-19Read the Press Release
The Department of Justice today announced criminal charges against 14 defendants, including 11 newly-charged defendants and three who were charged in superseding indictments, in seven federal districts across the United States for their alleged participation in various health care fraud schemes that exploited the COVID-19 pandemic and resulted in over $143 million in false billings.
“The multiple health care fraud schemes charged today describe theft from American taxpayers through the exploitation of the national emergency,” said Deputy Attorney General Lisa O. Monaco. “These medical professionals, corporate executives, and others allegedly took advantage of the COVID-19 pandemic to line their own pockets instead of providing needed health care services during this unprecedented time in our country. We are committed to protecting the American people and the critical health care benefits programs created to assist them during this national emergency, and we are determined to hold those who exploit such programs accountable to the fullest extent of the law.”
Additionally, the Center for Program Integrity, Centers for Medicare & Medicaid Services (CPI/CMS) separately announced today that it took adverse administrative actions against over 50 medical providers for their involvement in health care fraud schemes relating to COVID-19 or abuse of CMS programs that were designed to encourage access to medical care during the pandemic.
“Medical providers have been the unsung heroes for the American public throughout the pandemic,” said FBI Director Christopher Wray. “It’s disheartening that some have abused their authorities and committed COVID-19 related fraud against trusting citizens. The FBI, along with our federal law enforcement and private sector partners, are committed to continuing to combat healthcare fraud and protect the American people.”
The defendants in the cases announced today are alleged to have engaged in various health care fraud schemes designed to exploit the COVID-19 pandemic. For example, multiple defendants offered COVID-19 tests to Medicare beneficiaries at senior living facilities, drive-through COVID-19 testing sites, and medical offices to induce the beneficiaries to provide their personal identifying information and a saliva or blood sample. The defendants are alleged to have then misused the information and samples to submit claims to Medicare for unrelated, medically unnecessary, and far more expensive laboratory tests, including cancer genetic testing, allergy testing, and respiratory pathogen panel tests. In some cases, and as alleged, the COVID-19 test results were not provided to the beneficiaries in a timely fashion or were not reliable, risking the further spread of the disease, and the genetic, allergy, and respiratory pathogen testing was medically unnecessary, and, in many cases, the results were not provided to the patients or their actual primary care doctors. The proceeds of the fraudulent schemes were allegedly laundered through shell corporations and used to purchase exotic automobiles and luxury real estate.
“It’s clear fraudsters see the COVID-19 pandemic as a money-making opportunity — creating fraudulent schemes to victimize beneficiaries and steal from federal health care programs,” said Deputy Inspector General for Investigations Gary L. Cantrell of Health and Human Services – Office of Inspector General (HHS-OIG). “Our agency and its law enforcement partners are aggressively and effectively investigating these egregious crimes, which is made equally clear given the results of this takedown. We will continue to support the unprecedented COVID-19 public health effort by holding accountable people who use deceptive tactics to profit from the pandemic.”
In another type of COVID-19 health care fraud scheme announced today, defendants are alleged to have exploited policies that were put in place by CMS to enable increased access to care during the COVID-19 pandemic. For example, pursuant to the COVID-19 emergency declaration, telehealth regulations and rules were broadened so that Medicare beneficiaries could receive a wider range of services from their doctors without having to travel to a medical facility. The cases announced today include first in the nation charges for allegedly exploiting these expanded policies by submitting false and fraudulent claims to Medicare for sham telemedicine encounters that did not occur. As part of these cases, medical professionals are alleged to have offered and paid bribes in exchange for the medical professionals’ referral of medically unnecessary testing.
The law enforcement action today also includes the third set of criminal charges related to the misuse of Provider Relief Fund monies. The Provider Relief Fund is part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a federal law enacted March 2020 designed to provide needed medical care to Americans suffering from COVID-19.
The Fraud Section is prosecuting the cases in the following districts: Western District of Arkansas, Northern District of California, Middle District of Louisiana, Central District of California, Southern District of Florida, District of New Jersey, and the Eastern District of New York.
Today’s enforcement actions were led and coordinated by Assistant Chief Jacob Foster and Trial Attorneys Rebecca Yuan and Gary A. Winters of the National Rapid Response Strike Force of the Health Care Fraud Unit of the Criminal Division’s Fraud Section, in conjunction with the Health Care Fraud Unit’s Medicare Fraud Strike Forces (MFSF) in Miami, Los Angeles, the Gulf Coast, and Brooklyn, as well as the U.S. Attorneys’ Offices for the Northern District of California, Western District of Arkansas, and Middle District of Louisiana.
The MFSF is a partnership among the Criminal Division, U.S. Attorneys’ Offices, the FBI and HHS-OIG. In addition, U.S. Postal Inspection Service, Internal Revenue Service Criminal Investigation, Veterans Affairs Office of Inspector General, Department of Defense Office of Inspector General, Federal Deposit Insurance Corporation, Louisiana Medicaid Fraud Control Unit, and other federal and state law enforcement agencies participated in the law enforcement action.
The law enforcement action was brought in coordination with the Health Care Fraud Unit’s COVID-19 Interagency Working Group, which is chaired by the National Rapid Response Strike Force and organizes efforts to address illegal activity involving health care programs during the pandemic.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 federal districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Case Summaries
Western District of Arkansas
- Billy Joe Taylor, 42, of Lavaca, Arkansas, was charged by criminal complaint with health care fraud in connection with an alleged scheme to defraud the United States of over $88 million, including over $42 million in false and fraudulent claims during the COVID-19 health emergency that were billed in combination with claims that were submitted for testing for COVID-19 and other respiratory illnesses. Taylor, the owner and operator of Vitas Laboratories LLC and Beach Tox LLC, two testing laboratories, allegedly used access to beneficiary and medical provider information from prior laboratory testing orders to submit fraudulent claims for urine drug tests and other laboratory tests, including respiratory pathogen panel and COVID-19 tests, that were not actually ordered or performed. The complaint also alleges that hundreds of claims were submitted for beneficiaries after they had died or otherwise ceased providing samples. The case is being prosecuted by Senior Litigation Counsel James Hayes and Trial Attorney D. Keith Clouser of the National Rapid Response Strike Force, and Assistant U.S. Attorney Kenneth Elser of the U.S. Attorney’s Office for the Western District of Arkansas.
Northern District of California
- Mark Schena, 58, of Los Altos, California, the president of Arrayit Corporation, is charged along with two others, the Arrayit Vice President of Marketing and the President of an Arizona marketing organization, in connection with the submission of over $70 million in false and fraudulent claims for allergy and COVID-19 testing. The superseding indictment against Schena includes new counts of health care fraud, a conspiracy to pay kickbacks, and payment of kickbacks in connection with false and fraudulent statements about the existence, regulatory status, and accuracy of an Arrayit COVID-19 test. The conspiracy allegedly sought to induce the ordering of the Arrayit COVID-19 test and to bundle, i.e., require combination with, the COVID-19 test and Arrayit’s medically unnecessary allergy test. The COVID-19 test results were not provided in a timely fashion and were not reliable in detecting COVID-19. The cases are being prosecuted by Acting Principal Deputy Assistant Chief Justin Weitz of the Market Integrity and Major Fraud Unit of the Fraud Section, Assistant Chief Jacob Foster of the National Rapid Response Strike Force, and Assistant U.S. Attorney Wil Frentzen of the U.S. Attorney’s Office for the Northern District of California.
Central District of California
- Petros Hannesyan, 36, of Burbank, California, was charged with the theft of government property and wire fraud in connection with $229,454 that he obtained from COVID-19 relief programs. Hannesyan, the owner of Hollywood Home Health Services, Inc., a home health agency located in Los Angeles, allegedly misappropriated funds from the CARES Act Provider Relief Fund and submitted false loan applications and a false loan agreement to the Economic Injury Disaster Loan Program, rather than use the funds for COVID-19 patient care and to support small businesses experiencing disruption due to the COVID-19 pandemic. The case is being prosecuted by Trial Attorney Alexis Gregorian of the Los Angeles Strike Force.
Southern District of Florida
- Michael Stein, 35, and Leonel Palatnik, 42, both of Palm Beach County, Florida, were charged in connection with an alleged $73 million conspiracy to defraud the United States and to pay and receive health care kickbacks during the COVID-19 pandemic. Stein, the owner and operator of purported consulting company 1523 Holdings, LLC, and Palatnik, an owner and operator of Panda Conservation Group, LLC, a Texas company that owned and operated testing laboratories in Dallas and Denton, Texas, allegedly exploited temporary waivers of telehealth restrictions enacted during the pandemic by offering telehealth providers access to Medicare beneficiaries for whom they could bill consultations. In exchange, these providers agreed to refer beneficiaries to Panda’s laboratories for expensive and medically unnecessary cancer and cardiovascular genetic testing. The case is being prosecuted by Trial Attorney Ligia Markman of the National Rapid Response Strike Force.
- Juan Nava Ruiz, 44, and Eric Frank, 47, both of Coral Springs, Florida, were charged for an alleged $9.3 million health care kickback scheme, along with Christopher Licata, 44, of Boca Raton, Florida, who was previously charged in a separate Indictment. Licata, an owner of Boca Toxicology, LLC, a clinical laboratory based in Boca Raton, allegedly offered and paid kickbacks to patient brokers, including Ruiz and Frank, in exchange for referring Medicare beneficiaries to Boca Toxicology for various forms of genetic testing and other laboratory testing that they did not need, including the submission of $422,748 in claims related to medically unnecessary respiratory pathogen panel testing and genetic testing that was improperly bundled with COVID-19 testing. The cases are being prosecuted by Trial Attorney Jamie de Boer of the Miami Strike Force.
Middle District of Louisiana
- Malena Lepetich, 38, of Belle Chase, Louisiana, was charged for an alleged $15 million scheme to commit health care fraud, to defraud the United States, and to pay and receive health care kickbacks. Lepetich, the owner of MedLogic, LLC, a clinical laboratory based in Baton Rouge, Louisiana, allegedly solicited and received kickbacks in exchange for referrals of urine specimens for medically unnecessary testing. Lepetich also allegedly offered to pay kickbacks for referrals of specimens for COVID-19 and respiratory pathogen testing. Finally, Lepetich allegedly caused the submission of over $10 million in claims to Medicare, Medicaid, and Blue Cross Blue Shield of Louisiana for panels of expensive respiratory testing that was medically unnecessary. The case is being prosecuted by Trial Attorney Justin M. Woodard of the Gulf Coast Strike Force and Assistant U.S. Attorney Kristen Craig of the U.S. Attorney’s Office for the Middle District of Louisiana.
District of New Jersey
- Alexander Baldonado, 65, of Queens, New York, was charged with six counts of health care fraud. Baldonado, a medical doctor, allegedly participated in an event that advertised COVID-19 testing. In addition to authorizing the COVID-19 tests, Baldonado allegedly ordered expensive and medically unnecessary cancer genetic testing for Medicare beneficiaries who attended the event. Baldonado also allegedly billed Medicare for services, including lengthy office visits, that he never provided to these beneficiaries. Approximately $2 million in claims were submitted as a result of Baldonado’s COVID-19 health care fraud scheme, and approximately $17 million in claims were submitted as a result of Baldonado’s broader health care fraud scheme. The case is being prosecuted by Trial Attorney Rebecca Yuan of the National Rapid Response Strike Force.
- Donald Clarkin, 65, of Staten Island, New York, was charged in connection with a $5.4 million conspiracy to defraud the United States and pay and receive health care kickbacks. Clarkin, a partner at a diagnostic testing laboratory, allegedly exploited the pandemic by offering kickbacks in exchange for respiratory pathogen panel tests that would be improperly bundled with COVID-19 tests and billed to Medicare. Clarkin also allegedly paid and received kickbacks and bribes in exchange for arranging for the ordering of medically unnecessary genetic tests that were ineligible for Medicare reimbursement. The case is being prosecuted by Trial Attorney Rebecca Yuan of the National Rapid Response Strike Force.
Eastern District of New York
- Peter Khaim, 41, and Arkadiy Khaimov, 38, both of Forest Hills, New York, who owned and controlled several New York pharmacies and sham pharmacy wholesaling companies, were charged in a superseding indictment for their participation in an alleged $45 million health care fraud, wire fraud, and money laundering scheme. The defendants and their co-conspirators allegedly obtained billing privileges for multiple pharmacies by using nominees to serve as the purported owners and supervising pharmacists. The defendants then allegedly submitted false and fraudulent claims to Medicare, including by using COVID-19 “emergency override” billing codes to circumvent otherwise applicable pre-authorization requirements and limits on the frequency of refills for expensive drugs (primarily, the cancer treatment gels Targretin and Panretin). The defendants allegedly used an elaborate network of international money laundering operations to conceal and disguise the proceeds of the scheme. The case is being prosecuted by Trial Attorney Andrew Estes of the Brooklyn Strike Force.
The Department of Justice needs the public’s assistance in remaining vigilant and reporting suspected fraudulent activity. To report suspected fraud, contact the National Center for Disaster Fraud (NCDF) at (866) 720-5721 or file an online complaint at: https://www.justice.gov/disaster-fraud/webform/ncdf-disaster-complaint-form. Complaints filed will be reviewed at the NCDF and referred to federal, state, local, or international law enforcement or regulatory agencies for investigation.
To learn more about the department’s COVID response, visit: https://www.justice.gov/coronavirus. For further information on the Criminal Division’s enforcement efforts on PPP fraud, including court documents from significant cases, visit the following website: https://www.justice.gov/criminal-fraud/ppp-fraud.
An indictment, complaint, or information is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
DOJ Announces Coordinated Law Enforcement Action to Combat Health Care Fraud Related to COVID-19Read the Press Release
The Department of Justice today announced criminal charges against 14 defendants, including 11 newly-charged defendants and three who were charged in superseding indictments, in seven federal districts across the United States for their alleged participation in various health care fraud schemes that exploited the COVID-19 pandemic and resulted in over $143 million in false billings.
“The multiple health care fraud schemes charged today describe theft from American taxpayers through the exploitation of the national emergency,” said Deputy Attorney General Lisa O. Monaco. “These medical professionals, corporate executives, and others allegedly took advantage of the COVID-19 pandemic to line their own pockets instead of providing needed health care services during this unprecedented time in our country. We are committed to protecting the American people and the critical health care benefits programs created to assist them during this national emergency, and we are determined to hold those who exploit such programs accountable to the fullest extent of the law.”
Additionally, the Center for Program Integrity, Centers for Medicare & Medicaid Services (CPI/CMS) separately announced today that it took adverse administrative actions against over 50 medical providers for their involvement in health care fraud schemes relating to COVID-19 or abuse of CMS programs that were designed to encourage access to medical care during the pandemic.
“Medical providers have been the unsung heroes for the American public throughout the pandemic,” said FBI Director Christopher Wray. “It’s disheartening that some have abused their authorities and committed COVID-19 related fraud against trusting citizens. The FBI, along with our federal law enforcement and private sector partners, are committed to continuing to combat healthcare fraud and protect the American people.”
The defendants in the cases announced today are alleged to have engaged in various health care fraud schemes designed to exploit the COVID-19 pandemic. For example, multiple defendants offered COVID-19 tests to Medicare beneficiaries at senior living facilities, drive-through COVID-19 testing sites, and medical offices to induce the beneficiaries to provide their personal identifying information and a saliva or blood sample. The defendants are alleged to have then misused the information and samples to submit claims to Medicare for unrelated, medically unnecessary, and far more expensive laboratory tests, including cancer genetic testing, allergy testing, and respiratory pathogen panel tests. In some cases, and as alleged, the COVID-19 test results were not provided to the beneficiaries in a timely fashion or were not reliable, risking the further spread of the disease, and the genetic, allergy, and respiratory pathogen testing was medically unnecessary, and, in many cases, the results were not provided to the patients or their actual primary care doctors. The proceeds of the fraudulent schemes were allegedly laundered through shell corporations and used to purchase exotic automobiles and luxury real estate.
“It’s clear fraudsters see the COVID-19 pandemic as a money-making opportunity — creating fraudulent schemes to victimize beneficiaries and steal from federal health care programs,” said Deputy Inspector General for Investigations Gary L. Cantrell of Health and Human Services – Office of Inspector General (HHS-OIG). “Our agency and its law enforcement partners are aggressively and effectively investigating these egregious crimes, which is made equally clear given the results of this takedown. We will continue to support the unprecedented COVID-19 public health effort by holding accountable people who use deceptive tactics to profit from the pandemic.”
In another type of COVID-19 health care fraud scheme announced today, defendants are alleged to have exploited policies that were put in place by CMS to enable increased access to care during the COVID-19 pandemic. For example, pursuant to the COVID-19 emergency declaration, telehealth regulations and rules were broadened so that Medicare beneficiaries could receive a wider range of services from their doctors without having to travel to a medical facility. The cases announced today include first in the nation charges for allegedly exploiting these expanded policies by submitting false and fraudulent claims to Medicare for sham telemedicine encounters that did not occur. As part of these cases, medical professionals are alleged to have offered and paid bribes in exchange for the medical professionals’ referral of medically unnecessary testing.
The law enforcement action today also includes the third set of criminal charges related to the misuse of Provider Relief Fund monies. The Provider Relief Fund is part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a federal law enacted March 2020 designed to provide needed medical care to Americans suffering from COVID-19.
The Fraud Section is prosecuting the cases in the following districts: Western District of Arkansas, Northern District of California, Middle District of Louisiana, Central District of California, Southern District of Florida, District of New Jersey, and the Eastern District of New York.
Today’s enforcement actions were led and coordinated by Assistant Chief Jacob Foster and Trial Attorneys Rebecca Yuan and Gary A. Winters of the National Rapid Response Strike Force of the Health Care Fraud Unit of the Criminal Division’s Fraud Section, in conjunction with the Health Care Fraud Unit’s Medicare Fraud Strike Forces (MFSF) in Miami, Los Angeles, the Gulf Coast, and Brooklyn, as well as the U.S. Attorneys’ Offices for the Northern District of California, Western District of Arkansas, and Middle District of Louisiana.
The MFSF is a partnership among the Criminal Division, U.S. Attorneys’ Offices, the FBI and HHS-OIG. In addition, U.S. Postal Inspection Service, Internal Revenue Service Criminal Investigation, Veterans Affairs Office of Inspector General, Department of Defense Office of Inspector General, Federal Deposit Insurance Corporation, Louisiana Medicaid Fraud Control Unit, and other federal and state law enforcement agencies participated in the law enforcement action.
The law enforcement action was brought in coordination with the Health Care Fraud Unit’s COVID-19 Interagency Working Group, which is chaired by the National Rapid Response Strike Force and organizes efforts to address illegal activity involving health care programs during the pandemic.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 federal districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Case Summaries
Western District of Arkansas
Billy Joe Taylor, 42, of Lavaca, Arkansas, was charged by criminal complaint with health care fraud in connection with an alleged scheme to defraud the United States of over $88 million, including over $42 million in false and fraudulent claims during the COVID-19 health emergency that were billed in combination with claims that were submitted for testing for COVID-19 and other respiratory illnesses. Taylor, the owner and operator of Vitas Laboratories LLC and Beach Tox LLC, two testing laboratories, allegedly used access to beneficiary and medical provider information from prior laboratory testing orders to submit fraudulent claims for urine drug tests and other laboratory tests, including respiratory pathogen panel and COVID-19 tests, that were not actually ordered or performed. The complaint also alleges that hundreds of claims were submitted for beneficiaries after they had died or otherwise ceased providing samples. The case is being prosecuted by Senior Litigation Counsel James Hayes and Trial Attorney D. Keith Clouser of the National Rapid Response Strike Force, and Assistant U.S. Attorney Kenneth Elser of the U.S. Attorney’s Office for the Western District of Arkansas.
Northern District of California
Mark Schena, 58, of Los Altos, California, the president of Arrayit Corporation, is charged along with two others, the Arrayit Vice President of Marketing and the President of an Arizona marketing organization, in connection with the submission of over $70 million in false and fraudulent claims for allergy and COVID-19 testing. The superseding indictment against Schena includes new counts of health care fraud, a conspiracy to pay kickbacks, and payment of kickbacks in connection with false and fraudulent statements about the existence, regulatory status, and accuracy of an Arrayit COVID-19 test. The conspiracy allegedly sought to induce the ordering of the Arrayit COVID-19 test and to bundle, i.e., require combination with, the COVID-19 test and Arrayit’s medically unnecessary allergy test. The COVID-19 test results were not provided in a timely fashion and were not reliable in detecting COVID-19. The cases are being prosecuted by Acting Principal Deputy Assistant Chief Justin Weitz of the Market Integrity and Major Fraud Unit of the Fraud Section, Assistant Chief Jacob Foster of the National Rapid Response Strike Force, and Assistant U.S. Attorney Wil Frentzen of the U.S. Attorney’s Office for the Northern District of California.
Central District of California
Petros Hannesyan, 36, of Burbank, California, was charged with the theft of government property and wire fraud in connection with $229,454 that he obtained from COVID-19 relief programs. Hannesyan, the owner of Hollywood Home Health Services, Inc., a home health agency located in Los Angeles, allegedly misappropriated funds from the CARES Act Provider Relief Fund and submitted false loan applications and a false loan agreement to the Economic Injury Disaster Loan Program, rather than use the funds for COVID-19 patient care and to support small businesses experiencing disruption due to the COVID-19 pandemic. The case is being prosecuted by Trial Attorney Alexis Gregorian of the Los Angeles Strike Force.
Southern District of Florida
Michael Stein, 35, and Leonel Palatnik, 42, both of Palm Beach County, Florida, were charged in connection with an alleged $73 million conspiracy to defraud the United States and to pay and receive health care kickbacks during the COVID-19 pandemic. Stein, the owner and operator of purported consulting company 1523 Holdings, LLC, and Palatnik, an owner and operator of Panda Conservation Group, LLC, a Texas company that owned and operated testing laboratories in Dallas and Denton, Texas, allegedly exploited temporary waivers of telehealth restrictions enacted during the pandemic by offering telehealth providers access to Medicare beneficiaries for whom they could bill consultations. In exchange, these providers agreed to refer beneficiaries to Panda’s laboratories for expensive and medically unnecessary cancer and cardiovascular genetic testing. The case is being prosecuted by Trial Attorney Ligia Markman of the National Rapid Response Strike Force.
Juan Nava Ruiz, 44, and Eric Frank, 47, both of Coral Springs, Florida, were charged for an alleged $9.3 million health care kickback scheme, along with Christopher Licata, 44, of Boca Raton, Florida, who was previously charged in a separate Indictment. Licata, an owner of Boca Toxicology, LLC, a clinical laboratory based in Boca Raton, allegedly offered and paid kickbacks to patient brokers, including Ruiz and Frank, in exchange for referring Medicare beneficiaries to Boca Toxicology for various forms of genetic testing and other laboratory testing that they did not need, including the submission of $422,748 in claims related to medically unnecessary respiratory pathogen panel testing and genetic testing that was improperly bundled with COVID-19 testing. The cases are being prosecuted by Trial Attorney Jamie de Boer of the Miami Strike Force.
Middle District of Louisiana
Malena Lepetich, 38, of Belle Chase, Louisiana, was charged for an alleged $15 million scheme to commit health care fraud, to defraud the United States, and to pay and receive health care kickbacks. Lepetich, the owner of MedLogic, LLC, a clinical laboratory based in Baton Rouge, Louisiana, allegedly solicited and received kickbacks in exchange for referrals of urine specimens for medically unnecessary testing. Lepetich also allegedly offered to pay kickbacks for referrals of specimens for COVID-19 and respiratory pathogen testing. Finally, Lepetich allegedly caused the submission of over $10 million in claims to Medicare, Medicaid, and Blue Cross Blue Shield of Louisiana for panels of expensive respiratory testing that was medically unnecessary. The case is being prosecuted by Trial Attorney Justin M. Woodard of the Gulf Coast Strike Force and Assistant U.S. Attorney Kristen Craig of the U.S. Attorney’s Office for the Middle District of Louisiana.
District of New Jersey
Alexander Baldonado, 65, of Queens, New York, was charged with six counts of health care fraud. Baldonado, a medical doctor, allegedly participated in an event that advertised COVID-19 testing. In addition to authorizing the COVID-19 tests, Baldonado allegedly ordered expensive and medically unnecessary cancer genetic testing for Medicare beneficiaries who attended the event. Baldonado also allegedly billed Medicare for services, including lengthy office visits, that he never provided to these beneficiaries. Approximately $2 million in claims were submitted as a result of Baldonado’s COVID-19 health care fraud scheme, and approximately $17 million in claims were submitted as a result of Baldonado’s broader health care fraud scheme. The case is being prosecuted by Trial Attorney Rebecca Yuan of the National Rapid Response Strike Force.
Donald Clarkin, 65, of Staten Island, New York, was charged in connection with a $5.4 million conspiracy to defraud the United States and pay and receive health care kickbacks. Clarkin, a partner at a diagnostic testing laboratory, allegedly exploited the pandemic by offering kickbacks in exchange for respiratory pathogen panel tests that would be improperly bundled with COVID-19 tests and billed to Medicare. Clarkin also allegedly paid and received kickbacks and bribes in exchange for arranging for the ordering of medically unnecessary genetic tests that were ineligible for Medicare reimbursement. The case is being prosecuted by Trial Attorney Rebecca Yuan of the National Rapid Response Strike Force.
Eastern District of New York
Peter Khaim, 41, and Arkadiy Khaimov, 38, both of Forest Hills, New York, who owned and controlled several New York pharmacies and sham pharmacy wholesaling companies, were charged in a superseding indictment for their participation in an alleged $45 million health care fraud, wire fraud, and money laundering scheme. The defendants and their co-conspirators allegedly obtained billing privileges for multiple pharmacies by using nominees to serve as the purported owners and supervising pharmacists. The defendants then allegedly submitted false and fraudulent claims to Medicare, including by using COVID-19 “emergency override” billing codes to circumvent otherwise applicable pre-authorization requirements and limits on the frequency of refills for expensive drugs (primarily, the cancer treatment gels Targretin and Panretin). The defendants allegedly used an elaborate network of international money laundering operations to conceal and disguise the proceeds of the scheme. The case is being prosecuted by Trial Attorney Andrew Estes of the Brooklyn Strike Force.
The Department of Justice needs the public’s assistance in remaining vigilant and reporting suspected fraudulent activity. To report suspected fraud, contact the National Center for Disaster Fraud (NCDF) at (866) 720-5721 or file an online complaint at: https://www.justice.gov/disaster-fraud/webform/ncdf-disaster-complaint-form. Complaints filed will be reviewed at the NCDF and referred to federal, state, local, or international law enforcement or regulatory agencies for investigation.
To learn more about the department’s COVID response, visit: https://www.justice.gov/coronavirus. For further information on the Criminal Division’s enforcement efforts on PPP fraud, including court documents from significant cases, visit the following website: https://www.justice.gov/criminal-fraud/ppp-fraud.
An indictment, complaint, or information is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Convicted Felon Who Was a Repeat Possessor of Guns Sentenced to over Seven Years in PrisonRead the Press Release
A Waterloo convicted felon who possessed a gun was sentenced today to 94 months in prison.
Jason John Evans, age 39, from Waterloo, Iowa, received the prison sentence after a December 8, 2020 guilty plea to possession of a firearm by a felon.
Information disclosed at sentencing and in a plea agreement show that in July 2020, law enforcement searched Evans’ home. During the search, officers located a loaded gun, ammunition, approximately one ounce of marijuana, and drug paraphernalia. At the time, Evans was a convicted felon, having previously been convicted of felon in possession of a firearm and possession of a sawed-off shotgun in federal court.
Evans was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Evans was sentenced to 94 months’ imprisonment. He was ordered to make payment of $100 to the special assessment fund. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorney Ashley Corkery and investigated by the Mid-Iowa Task Force (Marshall County Sheriff’s Office, Tama County Sheriff’s Office, Marshalltown Police Department), the Iowa National Guard and Counter Drug Program, the Tri-County Task Force (Cedar Falls Police Department, Waterloo Police Department, Black Hawk County Sheriff’s Office), the Federal Bureau of Investigation, the FBI Safe Streets Task Force, the Drug Enforcement Administration, the Iowa Division of Narcotics Enforcement, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
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.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number 20-CR-2036.
Follow us on Twitter @USAO_NDIA.
Convicted Felon Pleads Guilty to Possession with Intent to Distribute Kilogram of CocaineRead the Press Release
BOSTON – A Clinton man previously convicted in federal court of cocaine conspiracy pleaded guilty today to cocaine offenses.
Emmanuelli Rojas-Moraza, 40, pleaded guilty to one count of possession with intent to distribute 500 grams or more of cocaine and one count of use of a communications facility in connection with a narcotics offense. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for Sept. 14, 2021. Rojas-Moraza was indicted in March 2020.
In January 2020, agents seized approximately one kilogram of cocaine inside a package sent from Puerto Rico and addressed to Rojas-Moraza’s residence in Clinton. After picking up the package from the local post office, Rojas-Moraza was arrested and taken into federal custody. During a search of Rojas-Moraza’s residence following his arrest, agents recovered drug packaging tools and materials.
Because Rojas-Moraza has a prior drug conviction, the charge of possession with intent distribute 500 grams of cocaine provides for a sentence of up to 40 years in prison, four years of supervised release and a fine of $5 million. The charge of use of a communications facility provides for a sentence of eight 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; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Joshua McCallister, Acting Inspector in Charge of the U.S. Postal Inspection Service; and Clinton Police Chief Mark R. Laverdure made the announcement today. Assistant U.S. Attorney John T. Mulcahy of Mendell’s Worcester Branch Office is prosecuting the case.
Company Owner Pleads Guilty to Falsifying Pension Contribution ReportsRead the Press Release
BOSTON – An owner of a New Hampshire asbestos abatement company pleaded guilty yesterday in federal court in Boston to making false statements to employee pension plans.
Gary McCaffrey, 66, of Salem, N.H., pleaded guilty to one count of making false statements to a pension plan covered by the Employee Retirement Income Security Act. U.S. Senior District Court Judge Douglas P. Woodlock scheduled sentencing for Aug. 30, 2021.
McCaffrey and co-defendant Richard Quinn owned and operated Absolute Environmental Inc., an asbestos abatement company. Between November 2014 and May 2017, McCaffrey and Quinn continued to employ several undocumented individuals after being notified of their status. During this time period, McCaffrey and Quinn knowingly falsified reports to pension plans about the work performed by the undocumented individuals, failing to make required pension contributions of over $337,000.
Quinn pleaded guilty on May 3, 2021 and is scheduled to be sentenced on Aug. 30, 2021.
Pursuant to McCaffrey’s plea agreement, the government will recommend a sentence of two years of supervised release, six months of home confinement and a fine of $10,000 to $25,000.
The charging statute provides for a sentence of up to five 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; Nikitas Splagounias, Acting Special Agent in Charge of the U.S. Department of Labor, Office of the Inspector General, Office of Investigations, Labor Racketeering and Fraud, New York Region; and Carol Hamilton, Boston Regional Director of the Employee Benefits Security Administration made the announcement today. Assistant U.S. Attorney Mark Grady of Mendell’s Public Corruption & Special Prosecutions Unit is prosecuting the case.
Clendenin Man Sentenced to Federal Prison for Gun CrimeRead the Press Release
CHARLESTON, W.Va. – Terry L. Spradlin, 34, of Clendenin was sentenced to 24 months in federal prison for being a felon in possession of a firearm.
According to court documents, on August 31, 2019 officers with the Dunbar Police Department encountered Spradlin before opening hours in Shawnee Park in Dunbar. Spradlin possessed a firearm which he had strapped in a holster. Spradlin admitted he was in possession of the firearm and that he knew he was prohibited from possessing firearms because he had a prior felony conviction for first degree robbery in Roane County Circuit Court.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Dunbar Police Department.
United States District Judge Joseph R. Goodwin imposed the sentence. Assistant United States Attorney Negar M. Kordestani handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:20-cr-0161.
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Charlotte Man Is Sentenced to 2 ½ Years in Prison for Aggravated Identity TheftRead the Press Release
CHARLOTTE, N.C. – U.S. District Judge Max O. Cogburn Jr. sentenced Twyjuan Demetric Jenkins, 29, of Charlotte, to 30 months in prison for aggravated identity theft charges, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, Judge Cogburn ordered Jenkins to remain under court supervision for a period of three years after he is released from prison, and to pay $75,150 in restitution.
On May 19, 2021, Judge Cogburn sentenced Jenkins’ co-defendant, Andrell Nachef Walker, 23, also of Charlotte, to 37 months in prison and three years of supervised release for his role in the scheme. Walker was also ordered to pay $75,150 in restitution, jointly and severally with Jenkins. The charges against a third co-defendant, Tyquis Syjuan Jenkins, are still pending.
According to filed court documents and statements made in court, from 2018 to May 2020, Twyjuan Jenkins, Tyquis Jenkins, and Walker were involved in an identity theft and fraud ring operating in and around Mecklenburg County. Court records show that the defendants used the stolen personal identifying information (PII) of actual persons, such as their names, dates of birth, Social Security numbers, and addresses, to withdraw and attempt to withdraw cash at banks, lease apartments, rent hotel rooms, and make and attempt to make fraudulent purchases of goods and services in excess of $95,000. Court documents also show that the co-conspirators, each of whom is a previously convicted felon, also used the stolen PII to obtain, possess, and use firearms and ammunition at two different shooting ranges in Mecklenburg County.
Twyjuan Demetric Jenkins previously pleaded guilty to conspiracy to commit aggravated identity theft and aggravated identity theft. Walker pleaded guilty to possession of a firearm by a felon.
Tyquis Syjuan Jenkins is charged in this case with conspiracy to commit identity theft, conspiracy to commit bank and wire fraud, bank fraud, making a false statement during the acquisition of a firearm, aggravated identity theft, possession of a firearm by a convicted felon. The charges against him are still pending and they are allegations. The defendant is presumed innocent until proven guilty beyond reasonable doubt in a court of law.
In making today’s announcement, Acting U.S. Attorney Stetzer thanked the Charlotte-Mecklenburg Police Department, the U.S. Postal Inspection Service, and the Bureau of Alcohol, Tobacco, Firearms & Explosives for their investigation of this case.
Assistant U.S. Attorney Michael E. Savage, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
California Man Convicted by Alaska Jury of Multiple Drug Trafficking and Firearm OffensesRead the Press Release
ANCHORAGE – A federal jury convicted a Compton, California, man yesterday for possession of methamphetamine with intent to distribute, attempted distribution of methamphetamine and cocaine, maintaining a place for drug purposes and illegally possessing firearms. The convictions followed a five-day jury trial before Chief United States District Judge Timothy M. Burgess.
According to court documents and evidence presented at trial, Antoine Lapoleon Davis aka “Shorty,” 48, trafficked large amounts of methamphetamine, heroin, cocaine and crack cocaine to Alaska through the U.S. mail and distributed it in the Anchorage area during 2017 and 2018.
The Federal Bureau of Investigation (FBI) executed a search warrant on Davis’s Anchorage apartment on October 4, 2018, where they seized methamphetamine, heroin, cocaine, crack cocaine, four firearms and other drug dealing paraphernalia. Davis later told the FBI that he distributed nearly three kilograms of methamphetamine and half a kilogram of cocaine per month as well as heroin and crack cocaine. He also stated that he obtained the firearms found in his apartment to defend his drug supply. The firearms included three handguns and a semi-automatic rifle that Davis referred to as a “chopper.”
Davis also mailed two parcels containing drugs and guns that were intercepted by the U.S. Postal Inspectors in 2017. One parcel sent from Anchorage to Arizona contained methamphetamine, meth pills, and multiple firearms. The second package sent from California to Anchorage contained nearly two kilograms of methamphetamine and cocaine. Investigators linked Davis to the two parcels through forensic fingerprinting and handwriting analysis as well as post office surveillance footage.
Davis faces a mandatory minimum sentence of 20 years in prison and a maximum sentence of up to life in prison based on his prior criminal history and convictions of drug trafficking. A federal district court judge will determine the sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney Bryan Wilson of the District of Alaska made the announcement.
The FBI Safe Streets Task Force, the United States Postal Inspection Service (USPIS), the U.S. Bureau of Alcohol, Firearms and Explosives (ATF) and the Anchorage Police Department (APD) investigated the case.
Assistant U.S. Attorneys Ryan Tansey, Kayla Doyle and Jennifer Ivers prosecuted the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Bulgarian National Sentenced for ATM SkimmingRead the Press Release
BOSTON – A Bulgarian national was sentenced today in connection with a scheme to create counterfeit ATM cards and to withdraw money from the bank accounts of unsuspecting customers.
Georgi Kanev, 33, a Bulgarian national, was sentenced by U.S. District Court Judge Leo T. Sorokin to 30 months in prison and restitution to be determined at a later date. On March 16, 2021, Kanev pleaded guilty to conspiracy to commit access device fraud and aggravated identity theft.
Kanev and a co-conspirator installed skimmers and cameras on two Martha’s Vineyard Savings Bank ATMs over a period of approximately four weeks in July and August 2013. The devices allowed the conspirators to obtain magnetic strip information and PIN numbers from ATM customers. The information was then used to create counterfeit ATM cards to withdraw funds from the compromised accounts.
Acting United States Attorney Nathaniel R. Mendell and Frederick J. Regan, Special Agent in Charge of the U.S. Secret Service, Boston Field Office made the announcement today. Valuable assistance was provided by the Edgartown Police Department and the Oak Bluffs Police Department. Assistant U.S. Attorney Mackenzie A. Queenin of Mendell’s Securities, Financial & Cyber Fraud Unit prosecuted the case.
The details contained in the charging document are allegations. The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Brooklyn Man Pleads Guilty to Conspiring to Commit COVID-19 Relief FraudRead the Press Release
SYRACUSE, NEW YORK – Sean M. Andre, age 31, of Brooklyn, New York, pled guilty yesterday to conspiring with an Ulster County man to fraudulently obtain more than $5.6 million in government-backed loans meant for businesses struggling with the financial effects of the coronavirus pandemic.
The announcement was made by Acting United States Attorney Antoinette T. Bacon; Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); Jonathan D. Larsen, Special Agent in Charge, New York Field Office, Internal Revenue Service (IRS)-Criminal Investigation; and Amaleka McCall-Brathwaite, Special Agent in Charge of the Eastern Region of the Office of Inspector General for the Small Business Administration (SBA-OIG).
Andre pled guilty to conspiring to commit bank fraud and conspiring to commit wire fraud. He admitted to helping an Ulster County man obtain $4,309,581 in Paycheck Protection Program (PPP) loans between June and August 2020, by submitting fraudulent loan applications in the names of four companies that the Ulster County man controlled. Each loan application misrepresented the number of employees, and total payroll, that each company had, and included false corporate tax documents that Andre created as part of the scheme. Andre was paid $157,578 for his role in the scheme.
Andre also admitted that he fraudulently obtained an additional $1,309,754 in pandemic relief loans, by submitting loan applications, and receiving loans, in the names of companies he controlled. In these loan applications, Andre lied about the number of employees, and total payroll, that his companies had.
Andre faces up to 30 years in prison and up to 5 years of post-imprisonment supervised release, when Chief United States District Judge Glenn T. Suddaby sentences him on September 23, 2021 in Albany. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
Andre also agreed to pay $1,309,754 in restitution, representing the fraud proceeds he personally received, and to forfeit five bank accounts and a 2019 Mercedes Benz GLS.
This case is being investigated by the FBI, as well as IRS-CI and SBA-OIG, and is being prosecuted by Assistant U.S. Attorneys Michael Barnett and Joshua R. Rosenthal.
Birmingham Man Sentenced for Making Unapproved Drug ProductsRead the Press Release
BIRMINGHAM, Ala. – A Birmingham man was sentenced today for his role in making unapproved drug products in his kitchen and warehouse, and then marketing and selling them as a cancer treatment, announced U.S. Attorney Prim F. Escalona and FDA Office of Criminal Investigations, Miami Field Office Special Agent in Charge Justin C. Fielder.
U.S. Senior District Judge Karen O. Bowdre sentenced Patrick Charles Bishop, 54, to 30 months in prison followed by three years’ supervised release for conspiracy to fraudulently introduce adulterated drugs and misbranded drugs into interstate commerce. Judge Bowdre also ordered Bishop to forfeit $900,000 in proceeds from his crimes. Bishop pleaded guilty to the charge in January.
“The defendant posed a dangerous threat to patients who thought they were receiving an approved and effective treatment for cancer,” U.S. Attorney Escalona said. “My office will continue to prosecute those who deceive the public by selling unapproved drug products.”
“The FDA’s requirements are designed to ensure that patients receive safe and effective medical treatments. Evading the FDA process and distributing unapproved, adulterated, and misbranded drugs to vulnerable Americans will not be tolerated,” said Special Agent in Charge Justin C. Fielder, FDA Office of Criminal Investigations, Miami Field Office. “Today’s announcement serves as a reminder of FDA’s continued focus on protecting the public health of the nation.”
According to the plea agreement, Bishop ran a business that made, marketed, sold, and distributed products purportedly containing a peptide called PNC-27, and purportedly effective in treating cancer. During 2015 and 2016, Bishop received millions of dollars from sales of PNC-27 products.
PNC-27 has not been approved by the FDA for use in the United States as a drug to treat any disease, including cancer; nor has PNC-27 undergone clinical trials in the United States. Bishop took steps to conceal these activities from the FDA and others. Bishop used the business name Best Peptide Supply, LLC, to buy PNC-27 from a Chinese supplier, and a different business name, Immuno Cellular Restoration Program, Inc., to sell PNC-27 products to others. He described his distribution of PNC-27 products as part of a research effort and promoted himself as a research director. Bishop had no formal training or education in medicine or the treatment of diseases.
Bishop repeatedly assured his Chinese supplier that he would use the peptide solely for laboratory research purposes. In reality, he used the peptide to make homemade suppositories in his kitchen in Birmingham, and at a warehouse he rented in Pelham, and then marketed and sold those products as a cancer treatment. The kitchen and warehouse were not sterile and the process of making the suppositories did not comply with current good manufacturing practices.
The FDA’s Office of Criminal Investigation investigated the case, which Assistant U.S. Attorney J.B. Ward is prosecuting.
Billings Man Sentenced to Six Years in Prison for Trafficking MethRead the Press Release
BILLINGS – A Billings man who admitted to trafficking methamphetamine and heroin was sentenced today to 72 months in prison followed by 4 years of supervised release, Acting U.S. Attorney Leif M. Johnson said.
Christopher Dennis Shelton, 43, pleaded guilty on November 23, 2020 to possession with intent to distribute methamphetamine.
U.S. District Judge Susan P. Watters presided. Shelton was detained.
In court documents filed in the case, the government alleged that in July 2019, Shelton, after being found in possession of a stolen trailer, fled with his co-defendant, Susan Wilkinson, in a truck that contained 56 grams of meth and 22 grams of heroin. Later that day, Shelton and Wilkinson attempted to escape from law enforcement in a grocery store parking lot by entering a stranger’s vehicle and seeking help. When the stranger refused, Shelton fled on foot while Wilkinson was arrested. Wilkinson pleaded guilty in the case and was sentenced to five years in prison.
Assistant U.S. Attorney Karla E. Painter prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
Attorney General Merrick B. Garland Announces New Effort to Reduce Violent CrimeRead the Press Release
WASHINGTON - Attorney General Merrick B. Garland today announced a new Department of Justice effort to help protect our communities from the recent increase in major violent crimes.
“Today, we renew our commitment to reducing violent crime and building strong communities where all Americans are safe,” said Attorney General Garland. “The Deputy Attorney General is issuing a comprehensive strategy to deploy our federal resources in the most effective way, disrupting the most dangerous threats and supporting the ground-level efforts of local law enforcement. In this endeavor, we will engage our communities as critical partners. And through our grantmaking, we will support programming at all stages – from the earliest violence interruption strategies to post-conviction reentry services.”
The strategy announced today is three-pronged. First, it establishes a set of four fundamental principles to be applied Department-wide to guide violent crime reduction:
- Build trust and earn legitimacy. Meaningful law enforcement engagement with, and accountability to, the community are essential underpinnings of any effective strategy to address violent crime, as well as important ends in themselves. Accordingly, building trust and earning legitimacy within our communities is the foundation on which the strategy is built.
- Invest in prevention and intervention programs. Violent crime is not a problem that can be solved by law enforcement alone. Accordingly, the Department must invest in community-based violence prevention and intervention programs that work to keep violence from happening before it occurs.
- Target enforcement efforts and priorities. The Department is most effective when it focuses its limited enforcement resources on identifying, investigating, and prosecuting the most significant drivers of gun violence and other violent crime.
- Measure results. Because the fundamental goal of this work is to reduce the level of violence in our communities, not to increase the number of arrests or prosecutions as if they were ends in themselves—we must measure the results of our efforts on these grounds.
The whole-of-Department approach means that these four fundamental principles will guide not only the Department’s 94 U.S. Attorneys’ offices, but also its law enforcement components (the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), and the United States Marshals Service (USMS)), its grant-making components (the Office of Justice Programs (OJP), the Office of Community Oriented Policing Services (COPS), and the Office of Victims of Crime (OVC)), and litigating divisions, such as the Criminal Division.
Second, the strategy enhances the Project Safe Neighborhoods (PSN) program by directing all U.S. Attorneys across the country to update their PSN programs to be aligned with the Department’s guiding principles to improve community engagement, support proven community-violence intervention programs, develop strategic enforcement plans in coordination with state, local, and Tribal law enforcement partners as well as community groups, and measure the effectiveness of these collective efforts to reduce violence. By drawing on lessons learned from research and experience over the past two decades, the Department will help ensure that PSN remains the leading initiative bringing together law enforcement partners at all levels and a broad array of community stakeholders to develop comprehensive solutions to the more pressing violent crime problems in our communities.
Third, the strategy directs each U.S. Attorney’s Office to work with its state, local, federal, Tribal, and community partners to establish an immediate plan to address spikes in violent crime that are typically seen during the summer.
The Department recognizes that there is no one-size-fits-all solution and that the needs of each jurisdiction will vary based on the nature of violent crimes and the ability of local criminal justice systems to respond. Thus, the Department has committed to providing the following additional support where it is needed and appropriate:
- The FBI will make available cutting-edge analytical resources to support state and local law enforcement efforts to identify the most violent offenders and most dangerous criminal organizations in communities. The FBI will then deploy agents to assist with enforcement operations targeting these entities.
- Where feasible, the ATF will embed with local homicide units and expand the availability of its NIBIN Correlation Center, which matches ballistics from crime scenes to other ballistic evidence nationwide.
- The DEA will focus its efforts, in coordination with state, local and Tribal law enforcement, to disrupt the activities of the most violent drug trafficking gangs and egregious drug-trafficking organizations operating in the highest-crime areas.
- The United States Marshals Service, in coordination with state and local authorities, will conduct fugitive sweeps throughout the country focused on individuals subject to state or local warrants for homicide, aggravated assault with a firearm, aggravated robbery, robbery with a firearm, rape or aggravated sexual assault.
- The Department’s grantmaking components will highlight funding opportunities for community programs focused on reducing gun violence and other violent crime, share information about effective community-violence intervention programs, and provide training and technical assistance to support the violent crime reduction work of state, local, tribal and community partners.
To learn more, see the Deputy Attorney General’s detailed guidance to federal prosecutors, law enforcement agencies, and other components across the Department of Justice. A Fact Sheet on 2021 Grant Opportunities and Other Resources to Support Violent Crime Reduction can be found here.
Ashburnham Man Sentenced for Firearms OffensesRead the Press Release
BOSTON – An Ashburnham man was sentenced today in federal court in Worcester for selling firearms on three occasions in 2019 in Fitchburg.
Terrick Bishoff, 40, was sentenced by U.S. District Court Judge Timothy S. Hillman to five years in prison and three years of supervised release. In July 2020, Bishoff pleaded guilty to one count each of unlawful possession or transfer of a machine gun, dealing in firearms without a license and possession of a machinegun without a serial number.
On three separate occasions in 2019, Bishoff sold firearms to a buyer he did not know in Fitchburg. On May 10, 2019, Bishoff sold a Glock-style pistol without a serial number and 54 rounds of 9mm ammunition in exchange for $580. Bishoff told the buyer that the firearm was “untraceable” and that it had been custom made for a silencer. On May 15, 2019, Bishoff again met with the buyer and sold him a machinegun without a serial number and a 25-round magazine. In return, the buyer paid Bishoff $2,500. On June 24, 2019, Bishoff sold the buyer a Glock-style firearm without a serial number and a magazine in exchange for $800. Bishoff told the buyer he was getting what he could before authorities started cracking down on firearms without serial numbers.
Acting United States Attorney Nathaniel R. Mendell; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Ashburnham Police Chief Lorring Barrett, Jr.; Worcester Police Chief Steven M. Sargent; and Hopkinton Police Chief Joseph Bennett made the announcement. Assistant U.S. Attorneys Michelle L. Dineen Jerrett and Kristen Noto of Mendell’s Worcester Branch Office prosecuted the case.
Arrest Made in the Overdose Death of a Henderson County Kentucky WomanRead the Press Release
EVANSVILLE - An Evansville man was arrested on May 21st, 2021 in Evansville on charges related to his alleged distribution of controlled substances to a Henderson County Kentucky woman found dead at a Reed, Kentucky residence in February 2021.
According to court documents, in December 2020, deputies with the Henderson County Sheriff’s Office and officers from the Pennyrile Narcotics Task Force responded to a residence for a suspected heroin overdose of a 28-year-old female named Lindsey Wiley. Wiley was transported to the hospital while officers recovered a variety of controlled substances from the residence. Wiley recovered and later spoke with law enforcement. Officer’s learned that Wiley had overdosed on heroin that she obtained from a “guy in Evansville”.
In February 2021, EMS and law enforcement again responded to Wiley’s residence for an overdose and found that Wiley was deceased. Officers collected evidence that Wiley had traveled to Evansville the night before her death, returned home, went to her room, and never left before her body was discovered. Investigators discovered Wiley made several monetary transactions, to include the times she overdosed, and had conversations about illegal drug purchases with a 28-year-old Evansville man named Johntavis Matlock.
Matlock is charged with Distribution of a Controlled Substance Causing Serious Bodily Injury and Distribution of a Controlled Substance Causing Death. If convicted Matlock faces a mandatory minimum of 20 years and up to a maximum term of life in federal prison, at least 5 years of supervised release, and a $1,000,000 fine. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney John E. Childress of the Southern District of Indiana; and DEA Assistant Special Agent in Charge J. Michael Gannon made the announcement today at a press conference held at the Winfield K. Denton Federal Building and U.S. Courthouse in Evansville.
The Drug Enforcement Administration, the Evansville-Vanderburgh County Drug Task Force, the Pennyrile Narcotics Task Force, and the Henderson County Sheriff’s Office investigated the case.
Assistant U.S. Attorney Kristian Mukoski is prosecuting the case and said that Matlock made his first appearance in court before a U.S. Magistrate Judge in Evansville on May 24th, 2021. Matlock is scheduled for a detention and probable cause hearing at 2:30 p.m. on May 27th, 2021 in the Evansville District Court before Magistrate Judge Matthew P. Brookman.
A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
9 Department of Correction Officers and Employees Charged with Taking Bribes to Smuggle Contraband to Inmates at New York City JailsRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and Margaret Garnett, Commissioner of the New York City Department of Investigation (“DOI”), announced the unsealing of indictments charging nine current and former employees and officers of the New York City Department of Correction with taking cash bribes in return for smuggling contraband such as scalpels, razor blades, drugs, alcohol, and cellphones to inmates in New York City area jails. Nine defendants were arrested today and will be presented before United States Magistrate Judges. Seven defendants were arrested in New York, one defendant in Pennsylvania, and one defendant in Virginia.
U.S. Attorney Audrey Strauss said: “These defendants were responsible for maintaining a safe and orderly environment in New York City’s jails. Instead, as alleged, they abused their positions to enrich themselves by smuggling weapons, drugs, and other dangerous contraband in return for thousands of dollars of cash bribes. This alleged activity violated the defendants’ duties, and endangered the inmates they were charged to supervise and guard.”
FBI Assistant Director William F. Sweeney Jr. said: “The nine defendants charged today risked the safety and security of their colleagues and others within the New York City Department of Correction when they carelessly decided to smuggle contraband into our jails, as we allege today. We shouldn’t have to remind public servants that accepting bribes while conducting illegal activity could constitute a federal crime, but when necessary, that’s exactly what we’ll do.”
DOI Commissioner Margaret Garnett said: “These charged crimes involving contraband smuggling and bribery by City Correction officers and employees reflect the pernicious and damaging impact of corruption. Correction officers and staff should protect the integrity of the jails, not promote lawlessness and violence by accepting bribes in return for trafficking drugs, scalpels, razor blades, cell phones, and other contraband – all highly valued, illegal items that undermine order in the jails and compromise the safety of other correction officers and inmates. DOI thanks the FBI and the U.S. Attorney’s Office for the Southern District of New York for their partnership on these significant investigations.”
According to the allegations in the Indictments[1] unsealed today:
MIGUEL COMPRES, 35, of New York, New York, abused his position as a correction officer to smuggle scalpels, smokable synthetic cannabinoids, often referred to as “K2” or “Spice,” cellphones, and large quantities of cigarettes into the Manhattan Detention Complex in downtown Manhattan, in return for over $6,000 in bribes, from at least in or about November 2019 up through and including in or about August 2020. He is charged with one count of conspiracy to commit federal crimes, which carries a maximum sentence of five years in prison, one count of federal program bribery, which carries a maximum sentence of 10 years in prison, and one count of honest services wire fraud, which carries a maximum sentence of 20 years in prison.
TAMEKA LEWIS, 41, of Brooklyn, New York, abused her position as a counselor with the Department of Correction to smuggle K2 and other contraband into the Otis Bantum Correctional Center on Rikers Island, in return for over $40,000 in bribes, from at least in or about June 2019 up through and including in or about September 2020. She is charged with one count of conspiracy to commit federal crimes, which carries a maximum sentence of five years in prison, one count of federal program bribery, which carries a maximum sentence of 10 years in prison, one count of honest services wire fraud, which carries a maximum sentence of 20 years in prison, and one count of distribution of a controlled substances analogue, which carries a maximum sentence of 20 years in prison.
DARIEL DIAZ, 33, of Reading, Pennsylvania, abused his position as a correction officer to smuggle K2, a cellphone, and large quantities of cigarettes into the George R. Vierno Center on Rikers Island, in return for over $8,000 in bribes, from at least in or about March 2020 up through and including in or about September 2020. He is charged with one count of conspiracy to commit federal crimes, which carries a maximum sentence of five years in prison, one count of federal program bribery, which carries a maximum sentence of 10 years in prison, and one count of honest services wire fraud, which carries a maximum sentence of 20 years in prison.
JASMINE REED, 34, of Norfolk, Virginia, abused her position as an exterminator with the Department of Correction to smuggle a razor, K2, marijuana, cigarettes, a cellphone, and other contraband into the Manhattan Detention Complex in downtown Manhattan in return for cash bribes, from at least in or about September 2019 up through and including in or about December 2019. She is charged with one count of conspiracy to commit federal crimes, which carries a maximum sentence of five years in prison, one count of honest services wire fraud, which carries a maximum sentence of 20 years in prison, and one count of distribution of a controlled substance, which carries a maximum sentence of 20 years in prison.
TEMAINE PELZER, 45, of Brooklyn, New York, abused his position as a correction officer to smuggle cigarettes and other contraband into the Manhattan Detention Complex, in return for over $8,000 in bribes, from at least in or about August 2019 up through and including in or about February 2020. He is charged with one count of conspiracy to commit federal crimes, which carries a maximum sentence of five years in prison, one count of federal program bribery, which carries a maximum sentence of 10 years in prison, and one count of honest services wire fraud, which carries a maximum sentence of 20 years in prison.
BRIAN HARRELL, 60, of Pelham, New York, abused his position as a correction officer to smuggle K2, alcohol, cigarettes, and other contraband into the Manhattan Detention Complex, in return for over $6,500 in bribes, from at least in or about May 2020 up through and including in or about June 2020. He is charged with one count of conspiracy to commit federal crimes, which carries a maximum sentence of five years in prison, one count of federal program bribery, which carries a maximum sentence of 10 years in prison, one count of honest services wire fraud, which carries a maximum sentence of 20 years in prison, and one count of distribution of a controlled substances analogue, which carries a maximum sentence of 20 years in prison.
RASHAWN ASSANAH, 25, of Queens, New York, abused his position as a correction officer to smuggle a cellphone, a large quantity of cigarettes, and other contraband into the Robert N. Davoren Center on Rikers Island, in return for over $7,500 in bribes, from at least in or about November 2020 up through and including in or about February 2021. He is charged with one count of conspiracy to commit federal crimes, which carries a maximum sentence of five years in prison, one count of federal program bribery, which carries a maximum sentence of 10 years in prison, and one count of honest services wire fraud, which carries a maximum sentence of 20 years in prison.
ROBERT BALDUCCI, 33, of the Bronx, New York, abused his position as a correction officer to smuggle razor blades, marijuana, and other contraband into the Otis Bantum Correctional Center on Rikers Island, in return for at least $5,000 in bribes, in or about October 2020. He is charged with one count of conspiracy to commit federal crimes, which carries a maximum sentence of five years in prison, one count of federal program bribery, which carries a maximum sentence of 10 years in prison, and one count of honest services wire fraud, which carries a maximum sentence of 20 years in prison.
JOHNATHAN GARRETT, 32, of Brooklyn, New York, abused his position as a correction officer to smuggle methamphetamine, K2, and other contraband into the Anna M. Kross Center on Rikers Island, in return for at least $5,000 in bribes, from at least in or about September 2020 up through and including in or about October 2020. He is charged with one count of conspiracy to commit federal crimes, which carries a maximum sentence of five years in prison, one count of federal program bribery, which carries a maximum sentence of 10 years in prison, and one count of honest services wire fraud, which carries a maximum sentence of 20 years in prison.
The maximum potential sentences in these cases are prescribed by Congress and are provided here for informational purposes only, as any sentencing of each defendant will be determined by the judge.
Ms. Strauss praised the outstanding investigative work of the FBI and DOI.
These cases are being handled by the Office’s Public Corruption Unit. Assistant United States Attorneys Marguerite Colson, Jarrod L. Schaeffer, and Hagan Scotten are in charge of the prosecutions.
The charges in the Indictments are merely accusations and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictments and the description of the Indictments set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Tuesday 25 May 2021
Wolcott Man Arrested, Charged with Receipt and Possession of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Roger Roberts, 49, of Wolcott, NY, was arrested and charged by criminal complaint with possession of child pornography involving prepubescent minors and receipt of child pornography. The charges carry a mandatory minimum penalty of five years in prison, a maximum of 20 years and a $250,000 fine.
Assistant U.S. Attorney Meghan K. McGuire, who is handling the case, stated that according to the complaint, in October 2020, the New York State Police in Wolcott received a complaint regarding the online activities of the defendant. On October 19, 2020, investigators searched the defendant’s residence on East Port Bay Road in Wolcott. During the search, investigators observed impressions in the carpeting in the first-floor den, indicating that furniture had recently been removed. Power cords and computer related equipment were present in the den; however, no computer was present. Investigators found an iPhone and two shotguns in the residence. During the search of a barn located on the property, just across the street from the main residence, investigators discovered damaged remains of a computer desk and computer components in a garbage tote in the driveway of the barn. Notably absent was a computer tower and/or hard drive. Concealed within a pile of wood scraps inside the barn were a damaged computer tower, another iPhone, and 10 additional firearms.
A forensic review of the computer recovered 69 images and 13 videos of child pornography. The images included the sexual abuse of minors. In addition, investigators recovered Snapchat messages that were sexual in nature involving the defendant and a 13-year-old from one of the iPhones.
The complaint is the result of an investigation by the New York State Police, under the direction of Major Barry Chase and Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Washington, PA Man Charged with Stealing from the US GovernmentRead the Press Release
PITTSBURGH - A resident of Washington, Pennsylvania, has been indicted by a federal grand jury on a charge of committing theft from the government, Acting United States Attorney Stephen R. Kaufman announced today.
The one-count Indictment named Michael Pierce, age 49, as the sole defendant.
According to the Indictment, Pierce stole approximately $12,800 in United States currency from the United States Government between the dates of October 2018 and September 2019.
The law provides for a maximum total sentence of not more than 10 years in prison, a fine of not more than $250,000.00, a term of supervised release of not more than 3 years, or a combination thereof. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brian W. Castello is prosecuting this case on behalf of the government.
The U.S. Department of Veterans Affairs Office of the Inspector General conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
VIPD’s Crime Prevention Bureau, the U.S. Attorney’s Office Project Safe Neighborhoods Initiative, Community Action NOW! and Senator Dwayne M. DeGraff Announce a Town Hall Meeting in the Savan Community, St. Thomas on Thursday, June 3rdRead the Press Release
St. Thomas, USVI – United States Attorney Gretchen C.F. Shappert announced today that Captain Sandra Colbourne and members of the VIPD Crime Prevention Bureau; representatives from the U.S. Attorney’s Office Project Safe Neighborhoods initiative; Iffat Walker, Founder and Executive Director of Community Action NOW!; and Senator Dwayne M. DeGraff of the 34th Legislature of the Virgin Islands will participate in a Town Hall Meeting with the Savan Community next week. The meeting will be held on Thursday, June 3rd from 6:00 p.m. to 8:00 p.m. in the Romeo Malone Community Center. The meeting is free and open to the public. Participation is also available via Zoom.
"Savan is a diverse community of native families, small business owners, and an aging population. We know that the citizens of Savan want and need access to resources to restore the community to its once vibrant history, " Shappert said. "We look forward to hearing community members’ ideas and their concerns."
Persons wishing to join by Zoom can use Meeting ID 864 7247 5481; Passcode 90122.
Project Safe Neighborhoods is a nationwide initiative that brings together federal, state, local and tribal law enforcement officials, prosecutors, and community leaders to identify the most pressing violent crime problems in a community and develop comprehensive solutions to address them. For more information on the Department of Justice’s Project Safe Neighborhoods, please see: https://www.justice.gov/psn.
Community Action Now is a nonprofit focused on empowering youth and adults living in underserved communities to overcome poverty and gain economic independence through outreach services geared toward self-advocacy, education, training, community services, and emergency management. For more information, see https://communityactionnow.org/.
For additional information, please call 340-244-6539 or 340-474-1510.
VA Employee Sentenced to Prison for Stealing Veterans' Personal InformationRead the Press Release
LITTLE ROCK—A former program analyst for the Department of Veterans Affairs (VA) was sentenced to prison on Thursday afternoon after stealing personal information from veterans and VA employees. Phillip Hill, 35, of Malvern, was sentenced to 46 months in federal prison by United States District Judge Kristine G. Baker.
In the fall of 2017, federal agents learned that Hill, who worked at the North Little Rock VA Medical Center, had access to veterans’ and current VA employees’ personal information to include names, dates of birth, and social security numbers.
Agents learned that Hill had contacted another individual and attempted to sell personal identifying information to a buyer for approximately $100,000. Multiple recorded conversations with this individual and Hill were monitored by agents. Throughout one monitored conversation, Hill repeatedly acknowledged the illegality of his conduct. Hill explained that he was offering to sell the personal identifying information for any veteran who had received VA compensation or a pension, visited a VA medical center, or had completed a VA financial assessment. Hill also offered to sell personal identifying information for VA employees, explaining the employees data would be particularly valuable to identity thieves, as it would include personal identifying information and personal account information for employees who were earning over $50,000 a year.
Hill was arrested on December 17, 2017, at the VA Regional Office by agents. As part of the investigation, his phone was searched. Records found on the phone indicated that a VA database spreadsheet containing personal information had been loaded onto Hill’s Google drive account had been accessed by Hill on his phone days prior to his arrest.
“This defendant took advantage of his position of trust within the VA healthcare system,” stated Jonathan D. Ross, Acting United States Attorney for the Eastern District of Arkansas. “His fraudulent scheme had the potential to create financial chaos for those whose information he stole. This sentence demonstrates our office’s commitment to prosecuting those who would defraud the heroes who have served our country.”
“This sentence sends a clear message that those entrusted with the protection of the personal information of our nation’s veterans and VA employees will be held accountable should they violate that trust,” said U.S. Department of Veterans Affairs Office of Inspector General (VA OIG) Special Agent in Charge Jeffrey Breen, South Central Field Office. “The VA OIG thanks the United States Attorney’s Office and our law enforcement partners at the United States Secret Service for their joint efforts to achieve justice in this case.”
Hill was indicted in January 2018 with attempted trafficking in access devices, aggravated identity theft, and possession of access device-making equipment. In September 2019, he pleaded guilty to attempted trafficking in access devices in exchange for dismissal of the remaining charges. In addition to 46 months in prison, Judge Baker sentenced Hill to two years of supervised release following his term of imprisonment. The case was investigated by the VA OIG with assistance from the United States Secret Service and prosecuted by Assistant United States Attorney Jana Harris.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Upper Allegheny Health System to Pay $2.7 Million to Settle False Claims Act AllegationsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Upper Allegheny Health System (UAHS), a health care system which operates several dental clinics in the Southern Tier of New York and in Pennsylvania, has agreed to pay $2.7 million dollars to resolve False Claim Act allegations. Under the settlement, the federal government will receive approximately $1.3 million dollars.
Assistant U.S. Attorney MaryEllen Kresse, who handled the case for the U.S. Attorney’s Office in Buffalo, stated that between April 1, 2010, and May 31, 2015, UAHS submitted false claims to Medicaid for dental services that were performed using handpieces which had not been appropriately sterilized. Dental handpieces are considered semi-critical devices and are therefore required to be heat sterilized between each patient use. UAHS failed to purchase sufficient dental hand pieces to allow for such heat sterilization. Instead, UAHS directed personnel to use CaviWipes to “clean” handpieces between patients. The government alleged that billing Medicaid for services provided using unsterilized dental handpieces violates the Federal False Claims Act as well as the New York False Claims Act.
“It is inconceivable that a healthcare business would seek to cut corners when it comes to the appropriate cleaning and sterilization of medical devices,” noted U.S. Attorney Kennedy. “This settlement under the False Claims Act holds Upper Allegheny accountable for the risks created for patients in the past, while ensuring that in the future patient safety will be preserved and that taxpayers will only pay for services which are properly provided.”
This settlement was reached by the U.S. Attorney’s Office for the Western District of New York, in conjunction with the U.S. Attorney’s Office for the Western District of Pennsylvania, and the New York State Attorney General’s Office, Medicaid Fraud Control Unit (MFCU).
The case against UAHS was brought in federal court by a whistleblower who alleged the health system violated the federal False Claims Act and the New York False Claims Act by improperly billing health care programs. Under the federal False Claims Act, private citizens are permitted to bring lawsuits known as qui tams on behalf of the United States and receive a portion of the proceeds of any settlement or judgment awarded against a defendant.
New York's Medicaid program provides medical insurance to groups of low-income people and individuals with disabilities. Medicaid is a nationwide program jointly funded by the federal government and states. Medicaid eligibility, benefits, and administration are managed by states within federal guidelines.
The claims resolved by this settlement are allegations only, and there have been no determinations of liability.
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University Professor and Wife Plead Guilty to Offenses Involving Department of Energy GrantsRead the Press Release
OKLAHOMA CITY – Yesterday, JUAN LU, 57, of Norman, pleaded guilty to making a false statement regarding Department of Energy grants, announced Acting U.S. Attorney Robert J. Troester. Her husband, SHAORONG LIU, 58, of Norman, already pleaded guilty to using false documents in the same case.
On February 18, 2021, a federal grand jury returned a 16-count Superseding Indictment against Liu and Lu. According to the Superseding Indictment, Liu is employed as a professor at the University of Oklahoma Department of Chemistry and Biochemistry. Liu and Lu controlled a company called MicroChem Solutions (MCS). Through MCS, they applied for and received federal grant monies from the Small Business Technology Transfer Program of the Department of Energy. The mission of the grant program was to support scientific excellence and technological innovation through the investment of federal research funds in critical American priorities to build a strong national economy. Liu and Lu spent this grant money on matters unrelated to the purpose of the grant funding, including on personal expenses. Additionally, Liu and Lu made false statements and submitted altered documents to the Department of Energy regarding how they spent grant money.
Yesterday, Lu pleaded guilty to using documents containing materially false statements regarding a matter pertaining to the executive branch of the United States government, namely the Department of Energy. On April 21, 2021, Liu pleaded guilty to making a materially false statement regarding a matter pertaining to the executive branch of the United States government, namely the Department of Energy.
At sentencing, Liu and Lu each face a maximum penalty of 5 years in prison and a potential fine of $250,000.
This case is a result of investigations by the Department of Energy Office of Inspector General, the National Science Foundation Office of Inspector General, and the Federal Bureau of Investigation Oklahoma City Field Office. Assistant U.S. Attorneys Will Farrior and Matt Dillon are prosecuting the case.
Reference is made to court filings for more information.
United States Attorney's Office District of Arizona April 2021 Immigration and Border Crimes ReportRead the Press Release
I. Illegal Reentry After Deportation (8 U.S.C. 1326)
214 individuals were charged in April with illegal reentry
A. 190 of those 214 individuals had previously been convicted of non-immigration criminal offenses in the U.S.
Of the 190 individuals with non-immigration criminal records:
1. 46 had violent crime convictions, including:
2 individuals had homicide convictions
13 individuals had sex offense convictions
18 individuals had domestic violence convictions2. 11 had property crime convictions
3. 41 had DUI convictions
4. 103 had drug crime convictions
B. 106 of those 214 individuals had been deported three or more times
II. Alien Smuggling (8 U.S.C. 1324)
52 individuals were charged in April with alien smuggling
III. Illegal Entry (Criminal Consequence Initiative) (8 U.S.C. 1325)
0 individuals were charged in April with illegal entry on the CCI calendar
Criminal conviction information is based on preliminary criminal history reports provided by the arresting agency.
These numbers represent United States Attorney's Office prosecutions only. These numbers do not include individuals apprehended by immigration enforcement officials and subjected solely to administrative process.
*The Department of Homeland Security instituted a policy in March 2020 of expeditiously returning aliens who illegally enter the United States rather than detaining them. The decreased number of individuals presented to this Office for prosecution coincides with the implementation of that policy and other COVID-19 related border restrictions.
RELEASE NUMBER: 2021-034_April Immigration and Border Crimes Report
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Two New Orleans Men Plead Guilty in Connection with the 2013 Murder of Loomis Armored Guard Hector TrochezRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced that LILBEAR GEORGE, 31, and CHUKWUDI OFOMATA, 35, both of New Orleans, pleaded guilty today before U.S. District Judge Lance Africk to Count Three of the Second Superseding Indictment, charging them with Using, Carrying, Brandishing, and Discharging of a Firearm in Furtherance of a Crime of Violence which resulted in death, to wit: the murder of Hector Trochez, which took place on December 18, 2013, a violation of Title 18, United States Code, Sections 924(c)(1)(A)(iii), 924(j)(1), and 2.
According to court documents, on the morning of December 18, 2013, GEORGE, OFOMATA and co-defendants Jeremy Esteves, Curtis Johnson, Jr., and Robert Brumfield III, robbed the Loomis armored vehicle as it was making a delivery of approximately $265,000 to the Chase Bank located at the intersection of S. Carrollton and S. Claiborne Avenues. The defendants learned about the Loomis deliveries from a known individual who was employed at this particular Chase branch. Esteves knew the bank employee and learned that the Loomis truck made scheduled deliveries to the bank on Wednesdays at approximately 10:00 a.m. The co-conspirators used this information to prepare for and plan the robbery.
As the Loomis guard, Hector Trochez, prepared to make the delivery, GEORGE and OFOMATA, both armed, exited their vehicle (a Chevy Tahoe stolen by GEORGE in preparation for the robbery), and ordered Trochez to give up the money. Trochez pulled his weapon and fired at the robbers. OFOMATA and GEORGE fired their weapons in Trochez’s direction. Johnson fired at the Loomis truck to keep the driver inside the truck. Trochez was fatally struck on the left side of his forehead and suffered a graze wound to his elbow. One of the robbers ran towards the rear of the Loomis truck and took possession of the money bag before re-entering the Tahoe. The robbers fled the Chase Bank parking lot.
A witness, seated in a vehicle at the corner of S. Claiborne and S. Carrollton Avenues observed the shooting and provided a description of the shooters and the vehicle they occupied. That witness followed the Chevy Tahoe as it fled the location of the shooting/robbery. During the vehicle’s flight, one of the shooters fired at the witness’s vehicle in an attempt to stop the witness from following. The witness observed the Chevy Tahoe arrive in the 1700 block of Adams Street and saw the four robbers exit the Chevy Tahoe and entered a Honda Accord being driven by Brumfield. After the individuals entered the Honda Accord, they fled the area.
The Chevy Tahoe was recovered by the New Orleans Police Department and searched pursuant to a federal search warrant. During the search, FBI agents observed that the steering wheel column of the vehicle had been breached. Agents located two screwdrivers on the floorboard of the Tahoe. The screwdrivers were collected and submitted for DNA testing at the Louisiana State Police Crime Laboratory. An unknown DNA profile, later confirmed to be that of GEORGE, was recovered from one of the screwdrivers. Based on the recovery of GEORGE’s DNA from the screwdriver, an arrest warrant was issued.
GEORGE and OFOMATA both face a statutory sentence of 10 years up to life imprisonment, a fine of up to $250,000.00, a period of up to 5 years supervised release, and a mandatory special assessment of $100.00.
United States District Court Judge Lance M. Africk will sentence OFOMATA and GEORGE on September 29, 2021.
Co-defendants Jeremy Esteves and Robert Brumfield III were found guilty by a jury at trial in November 2019. Co-defendant Jasmine Theophile, GEORGE’s girlfriend, previously pled guilty to obstructing justice. They will be sentenced on October 13, 2021.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation along with the New Orleans Police Department and the Louisiana State Police. Assistant United States Attorneys Brittany L. Reed and Gregory M. Kennedy are prosecuting the matter.
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Two Individuals Indicted for Money Laundering Related to Odebrecht Bribery and Fraud SchemeRead the Press Release
Earlier today, in federal court in Brooklyn, an indictment was unsealed charging Peter Weinzierl and Alexander Waldstein, both citizens of Austria, for their roles in a scheme to launder hundreds of millions of dollars through the U.S. financial system on behalf of Odebrecht S.A. (Odebrecht), a Brazil-based global construction conglomerate, in order to pay bribes around the world and defraud the Brazilian government. Weinzierl was arrested earlier today in the United Kingdom pursuant to a provisional arrest request from the United States. Waldstein remains at large.
Mark J. Lesko, Acting United States Attorney for the Eastern District of New York, Nicholas L. McQuaid, Acting Assistant Attorney General, U.S. Justice Department’s Criminal Division, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the indictment and arrest.
“As alleged, the defendants, high-ranking officials at an Austrian bank, brazenly assisted a large corporation in laundering millions of dollars through the United States financial system as part of a scheme to commit tax fraud on the Brazilian government,” stated Acting U.S. Attorney Lesko. “This Office is committed to protecting the integrity of the U.S. financial system and will hold accountable those who seek to misuse it to defraud a foreign government.” Mr. Lesko thanked the Department of Justice’s Criminal Division and the FBI for their work on the investigation.
As alleged in the indictment, Weinzierl served as chief executive officer and Waldstein served as an officer of an Austrian bank (the “Austrian Bank”), and both served as board members of an Antiguan bank (the “Antiguan Bank”). In and about and between 2006 and 2016, Weinzierl and Waldstein conspired with Odebrecht and others to launder money in a scheme to defraud Brazil’s tax authority of more than $100 million in taxes and to create off-books slush funds used by Odebrecht to pay hundreds of millions of dollars in bribes for the benefit of public officials around the world.
Specifically, Weinzierl, Waldstein, and their co-conspirators allegedly used fraudulent transactions and sham agreements to move more than $170 million from bank accounts in New York held in the name of Odebrecht, through the Austrian Bank, to offshore shell company bank accounts secretly owned and controlled by Odebrecht. As part of the scheme, Odebrecht used the slush funds funneled to the offshore shell company bank accounts to pay bribes. Odebrecht falsely recorded the hundreds of millions of dollars in international wire transfers sent to the Austrian Bank as legitimate business expenses and deducted the fraudulent payments from the overall profits that it reported in Brazil, thus reducing its tax liability and evading more than $100 million in taxes. Shell company bank accounts that were involved in the scheme, and used to pay bribes to foreign officials, were held at the Antiguan Bank, which was controlled by Weinzierl, Waldstein, and their co-conspirators and used to promote the scheme. Weinzierl and Waldstein also caused millions of dollars in criminal proceeds to be transferred from the Antiguan Bank to a brokerage account located in the United States to purchase U.S. Treasury securities and corporate stocks and bonds on U.S. exchanges. In exchange for their roles in the scheme, Weinzierl and Waldstein demanded and collected substantial fees for the benefit of the Austrian Bank and the Antiguan Bank.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
The FBI’s International Corruption squad in New York is investigating this case. Assistant U.S. Attorney Julia Nestor of the U.S. Attorney’s Office for the Eastern District of New York, Trial Attorney Michael Culhane Harper of the Criminal Division’s Fraud Section and Trial Attorney Michael B. Redmann of the Criminal Division’s Money Laundering and Asset Recovery Section are prosecuting the case. The Justice Department’s Criminal Division and United Kingdom authorities provided significant assistance.
The Defendants:
PETER WEINZIERL
Age: 55
AustriaALEXANDER WALDSTEIN
Age: 73
AustriaE.D.N.Y. Docket No. 20-CR-383 (RJD)
Two Cargo Handlers at LAX Arrested in Alleged Theft of Gold BarsRead the Press Release
LOS ANGELES – Two employees of a cargo handling company who worked at Los Angeles International Airport were arrested this morning pursuant to a federal grand jury indictment that charges them will stealing four gold bars that were part of a larger shipment going from Australia to New York.
Marlon Moody, 38, and Brian Benson, 35, both of South Los Angeles, were arrested without incident by special agents with the FBI. The two defendants are expected to make their initial appearances this afternoon in United States District Court in downtown Los Angeles.
A two-count indictment filed Tuesday charges Moody and Benson with conspiracy and theft of interstate and foreign shipment.
The indictment alleges that both men worked for Alliance Ground International, a company that provided ground handling services at LAX. On the evening of April 22, 2020, a shipment of gold bars arrived at LAX on Singapore Airlines. A total of 2,000 gold bars, each weighing one kilogram and valued at approximately $56,000, were being shipped at the direction of a Canadian bank. During a stopover at LAX, the gold was offloaded and secured, but an inventory that evening showed one box containing 25 gold bars was missing.
Moody allegedly found the missing box of gold bars near the Singapore Airlines cargo warehouse on the morning of April 23, placed the box on a belt loader and drove that vehicle to a nearby location, where he removed four of the bars. Soon after, Benson arrived to pick up Moody in a company van, where they exchanged text messages about the gold bars because other employees were in the van. The two defendants later left the airport and went to a nearby parking lot, where Moody gave Benson one of the four gold bars, the indictment states.
The lost box with the 21 remaining gold bars was discovered by other cargo handlers later on April 23, and authorities began an investigation that ultimately led to Moody and Benson.
Moody gave one gold bar to a relative on May 4 “and directed the family member to exchange the gold bar for a vehicle and/or money,” according to the indictment. Around this time, Moody buried the remaining two gold bars in the backyard of his residence.
The FBI recovered all four gold bars about two weeks after they went missing from LAX.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If they were to be convicted of the two charges, Moody and Benson each would face a statutory maximum sentence of 15 years in federal prison.
The FBI, the Federal Air Marshal Service, the Los Angeles Police Department, and the Los Angeles Airport Police investigated this matter.
Assistant United States Attorneys J. Jamari Buxton of the Public Corruption and Civil Rights Section and Lyndsi C. Allsop of the General Crimes Section are prosecuting the case.
Two Bank Executives Charged for Conspiring to Launder Hundreds of Millions of Dollars Through U.S. Financial System in Connection with Odebrecht Bribery and Fraud SchemeRead the Press Release
An Austrian man was arrested today in the United Kingdom on criminal charges related to his alleged participation in a conspiracy to launder hundreds of millions of dollars through the U.S. financial system as part of a scheme to pay bribes around the world and defraud the Brazilian government.
The indictment unsealed today was previously returned by a federal grand jury in Brooklyn, New York, and charges Peter Weinzierl, 55, and Alexander Waldstein, 73, both of Austria, for their role in a massive money laundering scheme involving Odebrecht S.A. (Odebrecht), a Brazil-based global construction conglomerate. Weinzierl was arrested today in the United Kingdom pursuant to a provisional arrest request from the United States. Waldstein remains at large.
Weinzierl served as chief executive officer and Waldstein as officer of an Austrian bank, and both served as board members of an Antiguan bank. According to the indictment, between approximately 2006 and 2016, Weinzierl and Waldstein conspired with Odebrecht and others to launder money in a scheme to defraud Brazil’s tax authority of more than $100 million in taxes and to create off-books slush funds used by Odebrecht to pay hundreds of millions of dollars in bribes for the benefit of public officials around the world.
According to the indictment, Weinzierl, Waldstein, and their co-conspirators used fraudulent transactions and sham agreements to move more than $170 million from bank accounts in New York held in the name of Odebrecht, through the Austrian bank, to offshore shell company bank accounts secretly controlled by Odebrecht. As part of the scheme, Odebrecht used the slush funds funneled to the offshore shell company bank accounts to pay bribes. Odebrecht falsely recorded the hundreds of millions of dollars in international wire transfers sent to the Austrian bank as legitimate business expenses and deducted the fraudulent payments from the overall profits that it reported in Brazil, thus reducing its tax liability and evading more than $100 million in taxes. Shell company bank accounts involved in the scheme and used to pay bribes to foreign officials were held at the Antiguan bank that Weinzierl, Waldstein, and their co-conspirators controlled and used to promote the scheme. Weinzierl and Waldstein also caused millions of dollars in criminal proceeds to be transferred from the Antiguan bank to a brokerage account located in the United States to purchase U.S. Treasury securities and corporate stocks and bonds on U.S. exchanges. In exchange for their role in the scheme, Weinzierl and Waldstein collected substantial fees for the benefit of the Austrian and Antiguan banks.
On Dec. 21, 2016, Odebrecht pleaded guilty in federal court in Brooklyn to a criminal information charging it with conspiracy to violate the anti-bribery provisions of the Foreign Corrupt Practices Act (FCPA) for its involvement in the bribery and money laundering scheme.
Weinzierl and Waldstein are charged with one count of conspiracy to commit money laundering and two counts of international promotional money laundering. Weinzierl is also charged with one count of engaging in a transaction in criminally derived property. If convicted of all counts, Weinzierl and Waldstein would face a maximum penalty of 70 and 60 years in prison, respectively. A federal district court judge in Brooklyn will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Acting U.S. Attorney Mark J. Lesko for the Eastern District of New York; and Assistant Director in Charge William F. Sweeney Jr. of the FBI’s New York Field Office made the announcement.
The FBI’s International Corruption squad in New York is investigating this case.
Trial Attorney Michael Culhane Harper of the Criminal Division’s Fraud Section, Trial Attorney Michael B. Redmann of the Criminal Division’s Money Laundering and Asset Recovery Section, and Assistant U.S. Attorney Julia Nestor of the U.S. Attorney’s Office for the Eastern District of New York are prosecuting the case. The Justice Department’s Office of International Affairs and UK authorities provided significant assistance.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
The Kleptocracy Asset Recovery Initiative in the Criminal Division’s Money Laundering and Asset Recovery Section was formed to prosecute money launderers and forfeit the proceeds of foreign official corruption and, where appropriate, to use those recovered asset to benefit the people harmed by the corruption and abuse of office. Individuals with information about possible proceeds of foreign corruption located in or laundered through the United States should contact federal law enforcement or send an email to [email protected].
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Tampa Man Sentenced to Prison for Manufacturing Counterfeit Federal Reserve Notes While on Federal Supervised ReleaseRead the Press Release
Jacksonville, Florida – United States District Judge Brian J. Davis has sentenced Darius Jondi Edwards (42, Tampa) to four years and three months in federal prison for manufacturing counterfeit Federal Reserve notes and for violating his federal supervised release.
Edwards had pleaded guilty on January 25, 2021, and admitted that he had violated his federal supervision by again manufacturing counterfeit Federal Reserve notes.
According to court documents, in 2015 Edwards pleaded guilty in federal court in Jacksonville to charges he manufactured counterfeit Federal Reserve notes (i.e., counterfeit currency), that he and others passed throughout the Jacksonville area. Edwards was sentenced to 33 months in federal prison, followed by 3 years of supervised release.
After his release from prison in October 2019, and while still on federal supervised release for those prior counterfeiting charges, the Pinellas Park Police Department arrested Edwards for possession of counterfeit currency and forging/making counterfeit bank bills. During the course of arresting Edwards at a hotel, law enforcement found him to be in possession of counterfeit currency, partially completed counterfeit currency, and computer media used to manufacture counterfeit Federal Reserve notes. Follow up investigation by the United States Secret Service determined that Edwards had purchased the computer media used to manufacture the counterfeit notes in Duval County and then transported the computer media to Pinellas County, where he manufactured the counterfeit Federal Reserve notes.
This case was investigated by the Pinellas Park Police Department and the United States Secret Service Jacksonville Field Office. It was prosecuted by Assistant United States Attorney Kevin C. Frein.
State Senator and His Campaign Treasurer Charged in Scheme to Obtain Public Election FundsRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, and David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that a federal grand jury in New Haven returned an indictment yesterday charging Connecticut State Senator DENNIS A. BRADLEY, JR., and his former campaign Treasurer, JESSICA MARTINEZ, with multiple offenses related to defrauding Connecticut’s program for publicly funding political campaigns during Bradley’s 2018 run for State Senate.
Bradley and Martinez appeared today before U.S. Magistrate Judge Robert M. Spector in New Haven, entered pleas of not guilty to the charges, and were released on bonds in the amount of $300,000 and $250,000, respectively.
As alleged in the indictment, Bradley, 38, of Bridgeport, has been a member of the Connecticut State Senate since 2018, representing the 23rd State Senate District. Martinez, 39, of Bridgeport, was the Treasurer for Bradley’s 2018 State Senate campaign. In Bradley’s 2018 campaign for State Senate, Bradley, Martinez, and others conspired to defraud the Connecticut State Election Enforcement Commission (“SEEC”), the Citizens’ Election Fund, and the State of Connecticut by making misrepresentations concerning Bradley’s compliance with state election law and the requirements and restrictions of the Citizens’ Election Program (“CEP”), a voluntary public election-financing program under which candidates can apply to SEEC for grants to fund their primary and general election campaigns.
“Candidates for public office must be held to a high standard of conduct, especially when they apply for public funds for their campaigns,” said Acting U.S. Attorney Boyle. “It is alleged that these defendants not only broke the rules at the outset of Mr. Bradley’s first campaign for the State Senate, but then engaged in an extensive cover up to conceal their illegal behavior and to receive additional public funds. The U.S. Attorney’s Office and our FBI partners are committed to holding public officials to account.”
“The Federal Bureau of Investigation is committed to protecting the citizens of Connecticut against all forms of illegal fraud and deception,” said FBI Special Agent in Charge Sundberg. “Maintaining the integrity of our state and federal election processes is crucial to ensuring the will of the voting public is carried out based on truth and fairness.”
The indictment alleges that Bradley, Martinez, and their co-conspirators violated CEP rules by holding a March 15, 2018, campaign event at Dolphin’s Cove restaurant in Bridgeport, then engaged in a scheme to trick SEEC into awarding his campaign undeserved CEP grants by making misrepresentations and omissions to disguise the nature of that event.
It is alleged that, although CEP rules imposed a $2,000 limit on Bradley’s expenditure of personal funds, Bradley used personal funds to pay Dolphin’s Cove $5,597.31 for the campaign event, and used personal funds for other campaign expenditures related to the event, including printed invitations and a band.
It is further alleged that, in an attempt to hide the March 15 campaign event from SEEC, Bradley, Martinez and their co-conspirators claimed it was a “Thank You Party” for friends and clients of Bradley’s law firm, Bradley, Denkovich & Karayiannis, P.C., also known as BDK Law Group.
It is alleged that, although at least eight donors gave to Bradley’s campaign at the Dolphin’s Cove event, Bradley’s and Martinez’s co-conspirators altered and falsified the contribution cards so that none were dated March 15, 2018.
It is further alleged that, although CEP rules required complete and truthful disclosures of Bradley’s campaign contributions and expenditures, in April, May and June 2018, Bradley’s campaign filed Itemized Campaign Finance Disclosure Statements with SEEC that omitted that Bradley had held a campaign event on March 15, 2018 at Dolphin’s Cove restaurant, omitted that Bradley had incurred approximately $6,307 in expenses for the event, omitted that Bradley had accepted multiple campaign contributions at the event, and misrepresented the dates of those March 15, 2018 contributions.
It is further alleged that on May 24, 2018, Bradley and Martinez applied for a CEP grant to fund Bradley’s Democratic primary campaign. On July 10, 2018, relying on the false and misleading information contained in Bradley’s filings, SEEC issued the campaign $84,140 in public funds. On August 14, 2018, Bradley won the Democratic primary with approximately 55 percent of the vote.
It is further alleged that, after issuing a CEP primary grant to Bradley, SEEC began investigating a citizen complaint regarding Bradley’s campaign, including the campaign event at Dolphin’s Cove. On August 21, 2018, Bradley emailed a letter to SEEC in which he denied all the allegations in the citizen complaint as “frivolous and manipulative.” In that letter, Bradley falsely stated, “On March 15, 2018, BDK hosted a Client Appreciation event at Dolphin’s Cove restaurant[.] … This was in no shape or form a political event. … In fact, we did not collect any donations at this event and have no donations dated 03/15/2018.”
It is further alleged that on October 12, 2018, after Bradley and Martinez attempted to obtain an additional $95,710 CEP grant to fund Bradley’s general election campaign, Martinez made similar false statements under oath to SEEC. SEEC eventually denied Bradley a general election grant. On November 6, 2018, Bradley won the general election with approximately 87 percent of the vote.
It is further alleged that Martinez made similar false statements to investigating FBI special agents in March 2020, and under oath before the grand jury in September 2020.
Bradley is charged with one count of conspiracy to commit wire fraud and five counts of wire fraud, and Martinez is charged with one count of conspiracy to commit wire fraud, five counts of wire fraud, one count of making a false statement to the FBI, and one count of making a false declaration before the grand jury. The conspiracy and fraud offenses carry a maximum term of imprisonment of 20 years on each count, and the false statement and declaration offenses carry a maximum term of imprisonment of five years on each count.
Acting U.S. Attorney Boyle stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This case is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorneys Jonathan N. Francis and David E. Novick.
South Korean Owner of Physical Therapy Clinic Indicted on Health Care Fraud ChargesRead the Press Release
BOSTON – The former owner of several physical therapy clinics in Greater Boston has been indicted by a federal grand jury on health care fraud charges.
Chang Goo Yoon, 59, a South Korean national residing in Queens, N.Y., was indicted on two counts of health care fraud and one count of aggravated identity theft. Yoon was arrested and charged by criminal complaint in February 2021.
According to charging documents, Yoon was the owner and operator of several physical therapy clinics in Allston, Waltham and Brookline between 2014 and 2018. It is alleged that Yoon billed patients for non-existent physical therapy appointments, including approximately $200,000 in claims billed on dates when Yoon was traveling in South Korea, Los Angeles and Toronto. Yoon also billed $60,000 in claims on dates when he was gambling at casinos including the Golden Nugget in Atlantic City, N.J., MGM Springfield in Massachusetts and Twin River Casino in Lincoln, R.I. Additionally, Yoon submitted approximately $30,000 in physical therapy claims for himself after three automobile accidents. According to the indictment, most of those claims falsely listed one of Yoon’s employees as the servicing physical therapist. The remaining claims allegedly listed Yoon as both the patient and the servicing physical therapist.
The charge of health care fraud provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. The charge of aggravated identity theft provides for a mandatory two-year sentence to be served consecutively to any other sentence imposed. 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; Anthony DiPaolo, Chief of Investigations of the Insurance Fraud Bureau of Massachusetts; and Joshua McCallister, Acting Inspector in Charge of the U.S. Postal Inspection Service made the announcement today. Assistant U.S. Attorney Elysa Q. Wan of Mendell’s Health Care Fraud Unit is prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Shrewsbury Woman Sentenced for Perjury in Connection with Insurance and Tax FraudRead the Press Release
BOSTON – A Shrewsbury woman was sentenced today in federal court in Worcester for lying about her role with a Worcester-based employment agency while testifying before a federal grand jury.
Linda Le, 42, was sentenced by U.S. District Court Judge Timothy S. Hillman to two years of probation, with five months to be served in home confinement and a $10,000 fine. On Feb. 5, 2021, Le pleaded guilty to one count of falsely testifying before a grand jury.
In late 2017 and early 2018, Le assisted with the transition of several client companies from one employment agency to UT Services, a Worcester-based employment agency. Thereafter, Le performed various tasks on behalf of UT Services, including reviewing and analyzing client invoices and maintaining a spreadsheet that tracked invoice amounts and profit. Le received cash payments in exchange for her work for UT Services.
In May 2018, Le testified before a federal grand jury and falsely stated under oath that she did not know anyone who was involved with UT Services and did not know anything about a specific client company using temporary workers from UT Services. In March 2019, Le testified again before a federal grand jury and falsely stated under oath that she did not know anything about UT Services and that she did not have any role with UT Services. At the time, investigators were conducting an investigation into fraudulent UT Services tax filings and insurance audits.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Ramsey E. Covington, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Anthony DiPaolo, Chief of Investigations of the Insurance Fraud Bureau of Massachusetts made the announcement today. Assistant U.S. Attorneys Bill Abely, Chief of Mendell’s Major Crimes Unit, and Ian Stearns of Mendell’s Securities, Financial & Cyber Fraud Unit prosecuted the case.
Sandy Springs Heroin Supplier Pleads Guilty in Middle Georgia Drug Trafficking CaseRead the Press Release
MACON, Ga. – The primary supplier of a heroin distribution ring operating between Atlanta and Macon, which funneled up to 30,000 doses of heroin into the region over a three month span, pleaded guilty to his crime in federal court.
Michael Duffy, 43, of Sandy Springs, Georgia, pleaded guilty to one count conspiracy to possess with intent to distribute heroin on Thursday, May 20. Duffy faces a maximum 20 years in prison to be followed by at least three years of supervised release and a $1,000,000 fine.
The following co-defendants have previously pleaded guilty for their crimes in federal court and have been sentenced for their crimes:
Chad Bresach, 38, of Eatonton, Georgia, pleaded guilty to one count distribution of heroin. Bresach was sentenced to serve 84 months in prison to run consecutively to any term of imprisonment imposed in Peach County, Jones County, Putnam County and Houston County Superior Courts to be followed by three years of supervised release on March 3, 2021;
Reginald Summerford, 49, of Macon, pleaded guilty to one count conspiracy to possess with intent to distribute heroin. Summerford was sentenced to serve 80 months in prison to be followed by three years of supervised release on March 3, 2021;
Courtney Dews, 36, of Macon, pleaded guilty to one count use of a communication facility to facilitate a drug trafficking offense. Dews was sentenced to serve 48 months in prison to be followed by one year of supervised release on March 3, 2021;
Patrick Dews, 34, of Macon, pleaded guilty to one count use of a communication facility to facilitate a drug trafficking offense. Dews was sentenced to serve 20 months in prison to be followed by one year of supervised release on March 3, 2021; and
Kathy Black, 40, of Macon, pleaded guilty to one count use of a communication facility to facilitate a drug trafficking offense. Black was sentenced to serve 18 months in prison to be followed by one year of supervised release on March 3, 2021.
The following co-defendants have previously pleaded guilty for their crimes in federal court and are awaiting sentencing:
Terrance Jackson, 43, of Macon, pleaded guilty to one count conspiracy to possess with intent to distribute heroin. Jackson faces a maximum 20 years in prison to be followed by at least three years of supervised release and a $1,000,000 fine; and
Arthur Anderson, 57, of Macon, pleaded guilty to one count use of a communication facility to facilitate a drug trafficking offense. Anderson faces a maximum sentence of four years in prison to be followed by three years of supervised release and a $250,000 fine.
U.S. District Judge Marc Treadwell is presiding over the hearings. There is no parole in the federal system.
“Law enforcement successfully stopped what was a steady flow of heroin from an Atlanta-based supplier into the Macon community, undoubtedly saving lives,” said Acting U.S. Attorney Peter D. Leary. “Individuals will face the possibility of federal prosecution when found trafficking large quantities of illegal drugs into the Middle District of Georgia.”
“With the arrest of Duffy, the head of the snake was cut off of this major heroin pipeline that ran from Atlanta to Middle Georgia,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “As the source of the operation, Duffy fueled an epidemic and wreaked havoc in many communities. Now he faces many years in prison for the damage he has caused.”
In December 2017, following the arrest of a heroin dealer in Macon, federal and local law enforcement began investigating heroin distribution by co-defendant Summerford. The wiretap investigation ultimately led to the discovery of Duffy being the source of heroin supply. On a number of occasions, co-defendants Summerford, Black and Patrick Dews would travel to metro-Atlanta to purchase heroin from Duffy, generally 142 grams on each trip – enough heroin to provide more than 1,000 doses. During December 2018 and January 2019, Duffy sold heroin from a “trap house” located in an Atlanta apartment. In early February 2019, Duffy moved into a house in Sandy Springs, Georgia, and used that residence to sell heroin.
From December 2018 to February 2019, Summerford generally went to Duffy to resupply heroin approximately every four to five days and usually purchased approximately 142 grams on each trip. Those trips that were confirmed using interceptions and/or surveillance. On the way back from purchasing heroin from Duffy on February 20, 2019, Summerford’s van was stopped and the heroin was seized. The heroin that was seized at that time was tested at the Drug Enforcement Agency (DEA) Mid-Atlantic Laboratory and was positively identified as heroin weighing 98.47 grams. On February 22, 2019, pursuant to a valid federal search warrant, law enforcement searched Duffy’s narcotics sales location at his Sandy Springs home. During the search, a Kel-Tec 9mm pistol, 9mm and .40 caliber ammunition, a bag containing small drug baggies and a quantity of suspected narcotics were seized. Duffy admitted that he conspired with others to possess with intent to distribute between one and three kilograms of heroin, or enough heroin to provide more than 10,000-30,000 doses, from December 2018 to February 2019.
The case was investigated by the FBI.
Assistant U.S. Attorney Robert McCullers is prosecuting the case.
SKS, Inc. Doctor Sentenced for Unlawfully Dispensing Controlled Substances, Health Care FraudRead the Press Release
PITTSBURGH - A prescribing physician with SKS, Inc. has been sentenced in federal court to two years’ probation and fined $5,500 on her conviction of unlawfully prescribing buprenorphine and health care fraud, Acting United States Attorney Stephen R. Kaufman announced today.
United States District Judge Cathy Bissoon imposed the sentence on Ruth Jones, 58, of Bedford, Pennsylvania.
According to information presented to the court, Jones was employed at SKS, Inc., a buprenorphine clinic located in Johnstown, Pa. During the course her employment, Jones prescribed buprenorphine outside the course of accepted medical practice and not for a legitimate medical reason. The healthcare fraud occurred when a patient’s insurance provided paid for the prescription. Under federal law, medical insurance cannot be used to pay for an unlawfully issued prescription.
Under the terms of her plea agreement, Jones agreed to forfeit $10,000.
Assistant United States Attorneys Robert Cessar and Michael Ivory prosecuted this case on behalf of the government.
The investigation leading to the filing of charges in this case was conducted by the Western Pennsylvania Opioid Fraud and Abuse Detection Unit (OFADU). The Western Pennsylvania OFADU, led by federal prosecutors in the U.S. Attorney’s Office, combines the expertise and resources of federal and state law enforcement to address the role played by unethical medical professionals in the opioid epidemic.
The agencies which comprise the Western Pennsylvania OFADU include: Federal Bureau of Investigation, U.S. Health and Human Services – Office of Inspector General, Drug Enforcement Administration, Internal Revenue Service-Criminal Investigations, Pennsylvania Office of Attorney General - Medicaid Fraud Control Unit, Pennsylvania Office of Attorney General – Bureau of Narcotic Investigations, United States Postal Inspection Service, U.S. Attorney’s Office – Criminal Division, Civil Division and Asset Forfeiture Unit, Department of Veterans Affairs-Office of Inspector General, Food and Drug Administration-Office of Criminal Investigations, U.S. Office of Personnel Management – Office of Inspector General and the Pennsylvania Bureau of Licensing.
Roseville Man Charged with Distribution and Possession of Child PornographyRead the Press Release
SACRAMENTO, Calif. — A federal indictment was unsealed today charging Randy Edward Martin, 38, of Roseville, with distribution and possession of child pornography, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, Martin distributed child pornography between July 6, 2020, and Sept. 14, 2020, using the Kik Messenger app. Martin used a smartphone, the internet, and Kik Messenger to distribute videos depicting minors engaging in sexually explicit conduct to a person in Oregon. Further, between July 6, 2020 and April 6, 2021, Martin knowingly possessed visual depictions of children engaging in sexually explicit conduct on his smartphone.
This case is the product of an investigation by Homeland Security Investigations. Assistant U.S. Attorneys Audrey B. Hemesath and Denise N. Yasinow are prosecuting the case.
If convicted, Martin faces a maximum statutory penalty of 20 years in prison, a $250,000 fine, and potentially a lifetime of supervised release. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
Richmond Man Sentenced for Fentanyl TraffickingRead the Press Release
RICHMOND, Va. – A Richmond man who was convicted by a federal jury in March was sentenced yesterday to 12 years in prison for distributing fentanyl in the Mosby Court neighborhood.
According to court records and evidence presented at trial and sentencing, Quotez Tyveck Pair, 33, was a drug trafficker with a reputation for violence in and around Mosby Court. Pair formerly associated with the “II Bloods” gang.
In October and November 2019, Drug Enforcement Administration (DEA) agents, with the aid of an inside cooperator, completed two controlled drug purchases from Pair. The cooperator, at the direction and under the supervision of law enforcement, purchased from Pair one ounce of heroin on October 30, 2019 and two ounces of heroin on November 12, 2019. Upon analysis, both substances purchased from Pair were found to be fentanyl.
Pair was subsequently arrested on January 21, 2020 in Henrico County and convicted on March 10, 2021 following a jury trial. At sentencing, the Court found that in addition to fentanyl, Pair also distributed over a half-kilogram of cocaine.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and Jarod Forget, Special Agent in Charge for the DEA’s Washington Division, made the announcement after sentencing by Senior U.S. District Robert E. Payne.
Assistant U.S. Attorney Olivia L. Norman prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:20-cr-3.
Rhinelander Man Indicted for Child Related Sex CrimesRead the Press Release
Acting United States Attorney Richard G. Frohling of the Eastern District of Wisconsin announced that on May 25, 2021, a federal grand jury returned a three-count indictment against Paul S. Osterman (age 35) of Rhinelander, Wisconsin, charging him with crimes related to soliciting a 13-year-old Illinois girl on the MeetMe social media electronic application for commercial sex.
Count One alleges that from July 3 through July 5, 2019, Osterman solicited the child for sex in exchange for money, in violation of Title 18, United States Code, Sections 1591(a)(1), (b)(1), and (c). Count Two alleges that during these same dates, Osterman used a facility and means of interstate commerce (MeetMe) to persuade, induce, and entice the child to engage in illegal sexual activity, in violation of Title 18, United States Code, Section 2422(b). Count Three alleges that during these same dates, Osterman traveled in interstate commerce (from Wisconsin to Illinois) for the purpose of engaging in commercial sex with the child, in violation of Title 18, United States Code, Section 2423(b).
Counts One and Two each carry a maximum penalty of life in prison, while Count Three carries a maximum penalty of 30 years in prison. If convicted of Counts One and Two, Osterman would face a mandatory minimum sentence of 15 and 10 years respectively. All of the charges in the indictment carry additional possible penalties of up to a life term of supervised release following any term of imprisonment, and up to a $250,000 fine.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006, by the U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Federal Bureau of Investigation, Wisconsin Department of Justice’s Division of Criminal Investigation, and the Oneida County Sherriff’s Office. The case is being prosecuted by Assistant United States Attorney Abbey M. Marzick.
The public is cautioned that an indictment is merely a formal charge that a defendant has committed one or more violations of federal law, and every defendant is presumed innocent unless, and until, proven guilty.
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Purlear, N.C. Man Is Sentenced to 25 Years for Production and Possession of Child PornographyRead the Press Release
CHARLOTTE, N.C. – William Jon Patric Ebert, 60, of Purlear, N.C. was sentenced today to 25 years prison for production and possession of child pornography, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina. U.S. District Judge Frank D. Whitney presided over today’s sentencing hearing and ordered Ebert to serve a lifetime of supervised release and to register as a sex offender after he is released from prison. A federal jury convicted Ebert on July 17, 2020, following a two-day trial.
Robert Schurmeier, Director of the North Carolina State Bureau of Investigation (SBI) joins Acting U.S. Attorney Stetzer in making today’s announcement.
According to filed court documents, evidence presented at trial, and today’s sentencing hearing, Ebert sexually abused a minor for more than six years. The sexual abuse took place in Ohio and in North Carolina. Evidence presented at trial established that Ebert also used the minor to produce child pornography photographs of the minor, and that he stored those photographs on his computer and other devices he owned. On September 22, 2016, law enforcement officials executed a search warrant at Ebert’s residence in Boone, N.C. and seized several devices and computers. A forensic analysis of Ebert’s hard drive revealed that it contained sexually explicit images of the minor victim.
In making today’s announcement Acting U.S. Attorney Stetzer thanked the North Carolina State Bureau of Investigation and the Avon Police Department in Ohio for their investigation of this case.
Assistant United States Attorneys Kimlani Ford and Erik Lindahl prosecuted the case for the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Previously Convicted Felon who Shot Another Individual Admits Possession of Firearm and AmmunitionRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, man today admitted illegally possessing a firearm and ammunition in connection with an incident in which he shot another individual in Jersey City, Acting U.S. Attorney Rachael A. Honig announced.
Hassan Mosby, 40, of Jersey City, pleaded guilty by videoconference before U.S. District Judge Susan D. Wigenton to an indictment charging him with one count of possession of a firearm and ammunition by a convicted felon.
According to documents filed in this case and statements made in court:
On Oct. 12, 2019, members of the Jersey City Police Department were dispatched to the area of Martin Luther King Drive between Woodlawn Avenue and Armstrong Avenue in Jersey City on a report of shots fired in the area.
Officers located a crime scene which included six 9-millimeter shell casings. While the officers were canvassing the area and processing the crime scene, they reviewed video footage from city cameras located near the shooting. The video showed a brief altercation within a group of males on the sidewalk on Martin Luther King Drive. At the end of the altercation, Mosby pointed and fired a handgun several times at a victim, striking the victim.
By viewing additional video footage from other city cameras, officers were able to determine that Mosby walked directly to a nearby residence immediately after the shooting. Officers went to the residence and were let inside by a resident, where they observed Mosby sitting in a chair. Mosby stated, “You got me, I’m who you are looking for. They had nothing to do with it.” Mosby was arrested and a search warrant was obtained for the residence. Officers then found a 9-millimeter semiautomatic handgun, which was loaded with seven rounds of ammunition.
Subsequent ballistics testing determined that five shell casings found at the crime scene were discharged from the firearm found in the residence.
The charge to which Mosby pleaded guilty carries a maximum penalty of 10 years in prison and a fine of up to $250,000. Sentencing is scheduled for Sept. 30, 2021.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local and tribal authorities in investigating and prosecuting gun crimes; improves information sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensured that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see https://www.justice.gov/projectguardian.
Acting U.S. Attorney Honig credited special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Newark Division, under the direction of Acting Special Agent in Charge Craig B. Kailimai, and the Jersey City Police Department, under the direction of Public Safety Director James Shea, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Emma Spiro and Jonathan W. Romankow of the U.S. Attorney’s Office Violent Crimes Unit in Newark.
Pittsburgh Man Pleads Guilty to Possessing Multiple DrugsRead the Press Release
PITTSBURGH, PA - A resident of Pittsburgh pleaded guilty in federal court to violating the federal narcotics laws, Acting United States Attorney Stephen R. Kaufman announced today.
Nathaniel Thomas, 40, formerly of Pittsburgh, PA pleaded guilty to a two-count Indictment charging him with possessing over 100 grams of fentanyl, acetyl fentanyl (an analogue of fentanyl), and heroin, along with a quantity of cocaine, before United States District Judge Marilyn Horan.
In connection with the guilty plea, the Court was advised that in April 2019, the Pennsylvania State Police Drug Law Enforcement Division began an investigation into heroin, fentanyl, and cocaine distribution by Thomas. As part of that investigation, agents obtained a federal search warrant for Thomas’s residence on Coleridge Street in Pittsburgh, which was executed on May 29, 2019. Inside of Thomas’s bedroom, agents seized approximately 158 "bricks" – the equivalent of roughly 7,900 individual dosage units – containing mixtures of fentanyl, acetyl fentanyl (an analogue of fentanyl) and heroin. Agents also found roughly 40 grams of cocaine and a digital scale containing a white powder residue in the same area. By pleading guilty, Thomas admitted that he possessed those scheduled narcotics intending to distribute them. In a related filing, the government advised the Court that Thomas has a prior conviction for a serious drug felony offense arising out of the Court of Common Pleas of Allegheny County (PA), and that the enhanced penalties set forth in the federal narcotics laws would, therefore, apply to Thomas.
Judge Horan scheduled sentencing for Sept. 14, 2021, at 10:00 a.m. The law provides for a total sentence of incarceration of not less than fifteen years and up to life, a fine of not more than $20,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history of the defendant.
Pending sentencing, the Court remanded Thomas to the custody of the United States Marshals Service.
Assistant United States Attorney Jerome A. Moschetta is prosecuting this case on behalf of the government.
The Pennsylvania State Police Drug Law Enforcement Division conducted the investigation that led to the prosecution of Thomas.
Pittsburgh Felon Charged with Possessing a Gun and AmmunitionRead the Press Release
PITTSBURGH - One resident of Pittsburgh, PA, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal firearms laws, Acting United States Attorney Stephen R. Kaufman announced today.
The one-count Indictment named Dane Brooks, 52, formerly of Pittsburgh, PA 15208, as the sole defendant.
According to the Indictment, on or about April 28, 2021, Brooks was found in possession of a firearm and ammunition. His prior felony convictions make it unlawful for him to possess a firearm or ammunition.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant. The defendant is currently being detained at Allegheny County Jail
Assistant United States Attorney Michael R. Ball is prosecuting this case on behalf of the government.
The Pittsburgh Bureau of Police and the Drug Enforcement Administration conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pittsburgh Business Owner Indicted on Tax ChargesRead the Press Release
PITTSBURGH, PA- One resident of Pittsburgh, PA, has been indicted by a federal grand jury in Pittsburgh on tax charges, Acting United States Attorney Stephen R. Kaufman announced today.
The 16-count Indictment named Shelley L. Fant, 52, of Pittsburgh, PA 15238, as the sole defendant.
According to Indictment, from in and around 2016 through in and around 2018, Fant, president and owner of FCG Solutions, Inc., both failed to collect and to pay over FICA taxes to the Internal Revenue Service, in violation of Title 26, United States Code, Section 7202, and also failed to file personal income tax returns, in violation of Title 26, United States Code, Section 7203.
The law provides for a total sentence, for each count, of not more than 64 years imprisonment, a fine of not more than $3,050,000, and a special assessment of $100.00 for the 7202 counts and $25.00 for each count of 7203. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The Internal Revenue Service – Criminal Investigation conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Man Sentenced to 15 Years for Drug Trafficking and Firearms OffensesRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Omar Acosta, 43, of Philadelphia, PA, was sentenced to 15 years in prison, and five years of supervised release by United States District Judge Wendy Beetlestone for narcotics and firearms offenses stemming from an undercover operation.
In February 2020, the defendant pleaded guilty to possession with intent to distribute 5+ kilograms of cocaine, and possession of a firearm in furtherance of a drug trafficking crime. Less than a year earlier, in May 2019, Drug Enforcement Administration agents learned that Acosta was in possession of multiple kilogram quantities of cocaine that he was seeking to sell. Through a confidential source, agents arranged a controlled purchase for four kilograms of cocaine from the defendant for $32,000 per kilogram. As the defendant drove to meet the confidential source to execute the purported transaction, he was stopped by law enforcement. With his consent, law enforcement officers searched Acosta’s car and found 21.5 kilograms of cocaine inside of a suitcase. A subsequent search of his residence in the Mayfair section of Northeast Philadelphia led to the discovery of multiple firearms, narcotics and cash including: a loaded Ruger .22 caliber rifle; a loaded Glock 22 semiautomatic pistol; a .40 caliber magazine and extra rounds; an extended Glock magazine; almost 2,000 grams of cocaine; 214 grams of heroin, and more than $57,000 in U.S. currency.
“Drug distribution and gun violence are an epidemic in Philadelphia and the federal government is aggressively prosecuting both in order to be ‘All Hands On Deck’ to get dangerous criminals like this defendant off the streets,” said Acting U.S. Attorney Williams. “Omar Acosta was a large-scale drug trafficker with a weapons cache to support it, both of which put our community in grave danger. We want to thank our law enforcement partners in this case, the DEA, for their hard work and dedication.”
The case was investigated by the Drug Enforcement Administration, and is being prosecuted by Assistant United States Attorney Erica Kivitz.