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Wednesday 5 May 2021
Charlotte Woman and Her Co-Conspirator Are Sentenced to Prison for Stealing $300,000 from an Elderly, Dementia-Afflicted VictimRead the Press Release
CHARLOTTE, N.C. – Acting U.S. Attorney William T. Stetzer announced that a Charlotte woman and one of her two co-conspirators were sentenced to prison today for their involvement in a $300,000 embezzlement scheme perpetrated on an elderly, dementia-afflicted victim.
Acting U.S. Attorney Stetzer is joined in making today’s announcement by Robert R. Wells, Special Agent in Charge for the FBI in North Carolina, Tommy D. Coke, Inspector in Charge of the of the Atlanta Division of the U.S. Postal Inspection Service (USPIS), which oversees Charlotte, and Chief Joseph Hatley of the Mint Hill Police Department.
U.S. District Judge Max O. Cogburn Jr. sentenced Donna Graves, 58, to 97 months in prison and two years of supervised release. On October 2, 2020, a federal jury convicted Graves of conspiracy to commit wire fraud and money laundering conspiracy. Grave’s co-conspirator, Gerald Maxwell Harrison, 54, of Mint Hill, N.C., was ordered to serve three years in prison, followed by three years of supervised release. Harrison pleaded guilty in May 2020, to wire fraud conspiracy, interstate transportation of stolen property, and money laundering conspiracy. In addition to the prison terms imposed, Judge Cogburn also ordered Graves and Harrison to pay $298,407.85 as restitution, jointly and severally.
A third co-conspirator, Elizabeth Robin Williams, previously pleaded guilty to wire fraud conspiracy, interstate transportation of stolen property, and money laundering conspiracy and is currently awaiting sentencing.
According to filed court documents, evidence presented at Graves’ trial and witness testimony, including testimony provided by Harrison, from January 2015 through September 2019, Graves, who was the ringleader of the criminal conspiracy, conspired with Williams and Harrison to engage in a scheme to defraud a victim identified in court documents as “K.T.” The victim was an elderly widow who lived alone and suffered from dementia and other physical and mental challenges. During the relevant time period, Graves and her co-conspirators exploited K.T.’s vulnerabilities and defrauded the victim through a web of forged documents, lies, and deceptions.
According to evidence presented at Graves’ trial, beginning in 2014, Graves and Williams provided housekeeping services for the victim through a business owned and operated by Graves. Over the course of the scheme, the co-conspirators isolated the victim from her friends and family, induced the victim to give them power and control over her personal affairs, and fabricated a power of attorney purporting to give Graves and Williams control over the victim’s financial affairs. Once they gained access and control, Graves, Williams, and Harrison moved the victim out of her residence in Indian Land, South Carolina, first to an apartment in Charlotte, and later to a rental home in Mint Hill, refusing to let the victim’s friends and family know where she was living.
According to court records and trial testimony, Graves, Williams, and Harrison engaged in numerous illegal and unauthorized financial transactions that substantially depleted the victim’s money and property. Specifically, the co-conspirators emptied the victim’s bank accounts and used the money to pay for personal expenses, and “maxed out” at least one credit card in the victim’s name. The co-conspirators also fraudulently transferred or attempted to transfer the victim’s Indian Land residence to themselves by creating a quit claim deed purporting to gift the residence to Harrison; they then attempted to sell the residence and intended to split the proceeds amongst each other. They also pawned the victim’s jewelry, and they stole the victim’s federal benefits. Additionally, Williams unlawfully used the victim’s money to set up other businesses in her name, including a business selling handbags online and a business selling weight loss-related services. As a result of the fraudulent scheme, the co-conspirators defrauded the victim of approximately $300,000.
According to court documents and information presented at today’s sentencing hearing, over the course of the scheme, Graves and her co-conspirators failed to provide the victim with proper medical care, which greatly diminished the victim’s health. Furthermore, once the victim’s money was depleted, the co-conspirators abandoned the victim, who was later moved to a nursing home in New York, where she passed away in large part due to the mental and physical deterioration she had suffered in the hands of Graves and her co-conspirators.
In announcing Graves’s sentence, Judge Cogburn said the defendants knew that the victim was vulnerable and that this was a shameful manipulation of a person. Judge Cogburn also said the defendant’s made “the last part of her (the victim’s) life the worst part of her life.”
Graves will be ordered to report to the federal Bureau of Prisons to begin serving her sentence upon designation of a federal facility. Harrison is currently in custody. A sentencing date for Williams has not been set. Williams faces a maximum penalty of 20 years in prison and a $250,000 fine for the wire fraud conspiracy charge carries. The statutory maximum penalty for the money laundering conspiracy charge is 20 years in prison and a $500,000 fine, and the interstate transportation of stolen property charge carries a maximum prison term of 10 years and a $250,000 fine.
In making today’s announcement, Acting U.S. Attorney Stetzer commended the Mint Hill Police Department, the FBI, and USPIS for their investigation of this case.
Assistant United States Attorneys Kenneth M. Smith and Caryn D. Finley, of the U.S. Attorney’s Office in Charlotte, are prosecuting the case.
June 15TH Is World Elder Abuse Awareness Day
June 15, 2021, is World Elder Abuse Awareness Day (WEAAD). First launched in 2006 by the International Network for the Prevention of Elder Abuse and the World Health Organization at the United Nations, the purpose of WEAAD is to raise awareness about abuse and neglect toward the elderly and to prevent elder exploitation.
According to the National Council on Aging, elder abuse is a silent problem that robs seniors of their dignity, security, and – in some cases – it costs them their lives. “Up to five million older Americans are abused every year, and the annual loss by victims of financial abuse is estimated to be at least $36.5 billion.”
Combating elder abuse and financial fraud targeted at older adults is a key priority of the Department of Justice and the U.S. Attorney’s Office for the Western District of North Carolina. Elder abuse is an intentional or negligent act by any person that causes harm or a serious risk of harm to an older adult. Elder abuse is a serious crime against some of our nation’s most vulnerable citizens, affecting at least 10% of older Americans every year.
Together with our law enforcement partners, the Justice Department and the U.S. Attorney’s Office are committed to combatting all forms of elder abuse and financial exploitation through enforcement actions, training and resources, victim services and public awareness. Visit the Justice Department’s Elder Justice Initiative to learn more about available resources, including how to report elder abuse and financial exploitation.
California Man Sentenced to Five Years in Prison for Role in Drug ConspiracyRead the Press Release
TRENTON, N.J. – A California man was sentenced today to 60 months in prison for his role in a drug distribution conspiracy connected to the seizure of fentanyl and heroin at a New Jersey rest stop last year, Acting U.S. Attorney Rachael A. Honig announced today.
Luis Aponte, 50, previously pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court to an information charging him with one count of conspiracy to distribute fentanyl and heroin. Judge Sheridan imposed the sentence today in Trenton federal court.
According to the documents filed in the case and statements made in court:
On March 1, 2019, Aponte drove a tractor-trailer truck to a rest stop in Bloomsbury, New Jersey. The next day, he met his co-defendant, Denny Diaz, 31, of Philadelphia, Pennsylvania, in a car and gave Diaz approximately six kilograms of fentanyl. Both men were arrested shortly thereafter. Law enforcement officers searched Aponte’s truck at the rest stop and found an additional two kilograms of fentanyl and 11 kilograms of heroin inside. Diaz pleaded guilty in September 2019 and was sentenced on May 26, 2020, to 33 months in prison.
In addition to the prison term, Judge Sheridan sentenced Aponte to three years of supervised release.
Acting U.S. Attorney Honig credited special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Raymond P. Donovan, New York Division; New York City Police Commissioner Dermot F. Shea; and New York State Police Superintendent Keith M. Corlett with the investigation leading to today’s sentencing. This case is being investigated by the DEA’s New York Drug Enforcement Task Force, comprising agents and officers of the DEA, New York City Police Department and New York State Police.
The government is represented by Assistant U.S. Attorney Jonathan Fayer of the U.S. Attorney’s Office Economic Crimes Unit.
California Man Sentenced to 151 Months for MethamphetamineRead the Press Release
Acting United States Attorney Jan Sharp announced that Ricardo Barraza, age 41 of Los Angeles, California, was sentenced today in federal court in Omaha, Nebraska. United States District Judge Brian C. Buescher sentenced Barraza to 151 months’ imprisonment. After completing his term of imprisonment, Barraza will be required to serve a 5-year term of supervised release. There is no parole in the federal system. Barraza’s prison sentence was extended by approximately 5 years as he absconded after pleading guilty and while on pretrial release in 2005. He was rearrested in November of 2019.
On October 12, 2004, law enforcement stopped a red Chrysler PT Cruiser for a traffic violation while traveling in New Mexico. The driver of the vehicle, Ricardo Barraza, was accompanied by a passenger identified as Victor Jose Barraza Cazares. During the traffic stop, the officer became suspicious that the two were involved in criminal activity and requested permission to search the vehicle. Barraza granted permission for a search which resulted in the discovery of approximately 1,663 grams of methamphetamine. During a post arrest statement, Barraza admitted to his involvement in transporting the drugs to an individual in Grand Island, Nebraska.
The passenger was found guilty in July of 2005 of Conspiracy to Distribute Methamphetamine and was sentenced to 188 months’ imprisonment.
This case was investigated by the New Mexico State Police and the Drug Enforcement Administration.
Bronx Man Charged with 2012 Murder of Michael PerezRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, and Dermot Shea, Commissioner of the New York City Police Department (“NYPD”), announced today the unsealing of an indictment charging SHAREEF LANDSMARK, a/k/a “Reef, a/k/a “Wreef,” with murdering Michael Perez in the Bronx, New York, on September 17, 2012. LANDSMARK was arrested yesterday and will be presented later today before U.S. Magistrate Judge Katharine H. Parker. The case is assigned to U.S. District Judge Lorna G. Schofield.
U.S. Attorney Audrey Strauss said: “As alleged in the Indictment, almost nine years ago, Shareef Landsmark executed Michael Perez in the streets of the Bronx. Thanks to the perseverance of the NYPD, Landsmark now stands charged in federal court.”
NYPD Commissioner Dermot Shea said: “Today’s charges prove that the best investigators in the world will never cease to secure justice that is owed to victims and their families. I would like to thank the NYPD Detectives, our law enforcement partners, and the prosecutors of the U.S. Attorney’s Office for the Southern District of New York for their dedication to this investigation.”
As alleged in the Indictment[[1]] unsealed yesterday in Manhattan federal court:
On September 17, 2012, LANDSMARK was hired by a co-conspirator to kill Michael Perez in furtherance of a conspiracy to distribute crack cocaine. Later that night, LANDSMARK shot and killed Perez, who was standing in the street near the intersection of East 213th Street and Willett Avenue in the Bronx.
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LANDSMARK, 35, from the Bronx, New York, is charged with one count of murder through use of a firearm, which carries a maximum penalty of death or life in prison and a mandatory minimum sentence of five years in prison; one count of murder in connection with a drug trafficking crime, which carries a maximum penalty of death or life in prison and a mandatory minimum sentence of 20 years in prison; and one count of murder-for-hire, which carries a maximum penalty of death or life in prison and a mandatory minimum sentence of life in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for information purposes only, as any sentencing of the defendant will be determined by the judge.
Ms. Strauss praised the outstanding work of the NYPD. She also thanked the Special Agents of the United States Attorney’s Office for the Southern District of New York for their assistance in the investigation.
The case is being prosecuted by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Alexandra Rothman and Adam Hobson are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations and every fact described should be treated as an allegation.
Bristol, Tennessee Woman Pleads Guilty as Part of Ongoing Prosecution of CARES Act FraudstersRead the Press Release
ABINGDON, Va. – A Bristol, Tennessee woman pleaded guilty yesterday to conspiring to defraud the United States as part of the ongoing prosecution into dozens of individuals who fraudulently filed for more than $499,000 in pandemic unemployment benefits and committed mail fraud.
According to court documents, Melissa Hayes, 51, conspired with others, including those previously convicted as part of the ongoing prosecution, to file claims for pandemic unemployment benefits through the Virginia Employment Commission [VEC] website. The scheme involved submitting claims for various individuals who were not eligible to receive pandemic unemployment benefits, including for numerous inmates incarcerated in southwest Virginia regional jails.
Conspiracy members lied on the filings as part of the scheme to make filers appear eligible for benefits. Because pandemic unemployment benefits were paid weekly, those filing reverified and re-certified the false statements on numerous occasions throughout the scheme.
In all, the conspiracy filed fraudulent claims for approximately 37 individuals, causing at least $499,000 in false claims to be have been paid.
The aggregate actual loss for all fraudulent claims in which Hayes was directly involved is more than $70,000.
Hayes pleaded guilty to one count of conspiracy to defraud the government and one count of conspiracy to commit mail fraud. She is scheduled to be sentenced on July 26, 2021. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Daniel P. Bubar, Jonathan Mellone, Acting Special Agent-in-Charge, Philadelphia Region, U.S. Department of Labor Office of Inspector General and Acting Special Agent in Charge is Darrell J. Waldon of the Internal Revenue Service- Criminal Investigation announced the guilty plea today.
The Department of Labor-Office of the Inspector General and the Internal Revenue Service – Criminal Investigation, the Norton Police Department, and the Russell County Sheriff’s Office are investigating the case.
Assistant U.S. Attorney Daniel J. Murphy is prosecuting the case.
Bay Area Executives Charged with Conspiracy to Commit Wire FraudRead the Press Release
SAN FRANCISCO – A federal grand jury indicted Geoffrey M. Palermo and Adan Roldan, aka George Villanuevo, charging the defendants with conspiracy in connection with an alleged plot to bilk a California company of more than $1.5 million as part of a kickback scheme, announced Acting United States Attorney Stephanie M. Hinds and Federal Bureau of Investigation Special Agent in Charge Craig D. Fair. The indictment adds to charges filed by the grand jury against Palermo in June of last year.
According to the indictment, Palermo, 57, of Novato, Calif., was working as the manager of a Hilton hotel located in downtown San Francisco between 2008 and 2016. During this timeframe, Palermo had authority to enter into contracts, choose contractors, and otherwise manage construction and capital improvement projects at the hotel. Further, between January 2013 and June 2016, Roldan, 53, was the owner of a construction company, A. Roldan Construction, that Palermo hired to perform various construction projects at the San Francisco Hilton. The indictment describes how Palermo arranged for the review and approval of millions of dollars of checks paid from Hilton’s owners to A. Roldan Construction based on invoices submitted by Roldan’s construction company.
According to the indictment, much of the billing dispensed by Roldan’s construction company to the Hilton was contained in fraudulent and inflated invoices. In addition, the indictment explains that Roldan allegedly created and submitted the false and fraudulent invoices as part of the scheme to conceal kickbacks to Palermo. Specifically, Palermo continued to hire Roldan to perform work at the Hilton and arranged to have the fraudulent invoices paid while Roldan arranged to kick back part of the funds to Palermo. The indictment alleges that between January 2013 and June 2016, Palermo authorized issuance and payment to Roldan’s construction company of more than 450 checks totaling approximately $6.4 million.
The indictment also describes how Palermo and Roldan used various bank accounts to carry out their scheme. Most prominently, Roldan maintained an account entitled “Bahama Reef Living Trust” from which he withdrew funds to make payments to various accounts controlled by Palermo. For example, the indictment describes how Roldan deposited four checks in October of 2015 totaling approximately $145,915 from the Hilton’s owners into the construction company bank account. On the same day, Roldan then allegedly transferred $125,000 from the construction company account into the Bahama Reef account and then, again on the same day, wrote a check for $125,000 from the Bahama Reef account to an account controlled by Palermo. The indictment estimates that by writing checks from the Bahama Reef account to various bank accounts controlled by Palermo, Roldan funneled to Palermo kickbacks totaling approximately $1,535,965.
The indictment filed against Palermo and Roldan charges each defendant with one count of conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349. The conspiracy charge carries a maximum statutory penalty of up to 20 years in prison and a $250,000 fine. These charges are in addition to a separate indictment against Palermo filed on June 30, 2020, in which he was charged with honest services wire fraud, in violation of 18 U.S.C. §§ 1343 and 1346; wire fraud, in violation of 18 U.S.C. § 1343; and making a false statement in a loan application to an FDIC-insured lender, in violation of 18 U.S.C. § 1014. The honest services fraud charges carry the same maximum penalties as the wire fraud charges and the false statement charge carries a maximum of 30 years in prison and a $1,000,000 fine. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing imposition of a sentence, 18 U.S.C. § 3553.
The charges contained in the indictments are mere allegations. As in any criminal case, the defendants are presumed innocent unless and until proven guilty in a court of law.
The defendants are scheduled to make their initial appearances in federal court on May 13, 2021, before U.S. Magistrate Judge Thomas S. Hixson. The court will likely determine bond conditions at that time.
The case is being prosecuted by the Corporate Fraud Strike Force of the U.S. Attorney’s Office. The case is being investigated by the FBI.
Bank Robber Pleads GuiltyRead the Press Release
NEW ORLEANS – REGINALD LUMAR, age 29, a resident of New Orleans, pleaded guilty to two counts of bank robbery before the Honorable Susie Morgan, announced U.S. Attorney Duane A. Evans. LUMAR faces up to 20 years imprisonment, a $250,000 fine, 3 years of supervised release, and a $100 special assessment fee, as to each count. Sentencing is currently scheduled for August 10, 2021.
According to count one of the indictment, on or about September 10, 2019, LUMAR and Byron Watson robbed the Total Choice Federal Credit Union located at 100 Palmetto Drive in LaPlace, Louisiana. They obtained approximately $7,000 in the robbery. According to count two of the indictment, on or about September 26, 2019, LUMAR and Watson robbed the Fidelity Bank located at 9099 Jefferson Highway, Jefferson, Louisiana. They obtained approximately $6,000 in that robbery.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation’s Violent Crime Task Force, Louisiana State Police, Jefferson Parish Sheriff’s Office, New Orleans Police Department, and Saint John Parish Sheriff’s Office. Assistant United States Attorney Jon Maestri is handling the prosecution.
Baltimore Man Sentenced to More Than Four Years in Federal Prison for Conspiring to Commit Sex Trafficking of a MinorRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel sentenced Gerald Marshall, age 31, of Baltimore, Maryland, yesterday to 54 months in federal prison, followed by five years of supervised release, for conspiracy to engage in sex trafficking of a minor. Marshall admitted that he conspired to traffic two minor girls, ages 15 and 17, to engage in commercial sex acts. Judge Hazel ordered Marshall to pay $2,405 in restitution to each of the minor victims. Judge Hazel also ordered that, upon his release from prison, Marshall will be required to register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; and Chief Russell E. Hamill, III of the Laurel Police Department.
According to Marshall’s plea agreement, beginning in or about January 2018, Marshall conspired with co-defendant Sean Dean to recruit, harbor, transport, and/or maintain three females, including two minors, to engage in commercial sex acts. In furtherance of the sex trafficking enterprise, Marshall rented hotel rooms in Timonium and Laurel, Maryland to be used by the victims to engage in commercial sex acts. Marshall and Dean transported the victims to the various hotels where they would stay for multiple days. While in the hotel rooms, at Dean’s direction the victims used a website to advertise themselves for commercial sex acts. The advertisements contained pictures of the victims in provocative poses and provided contact information for clients to use to secure a “date” with the victims. The victims were required to share a portion of the proceeds from any commercial sex acts with Dean.
As detailed in his plea agreement, during the first week of January 2018, Marshall and Dean transported the minor girls and the woman to a hotel in Timonium. The victims were at the hotel for approximately one week and met with multiple customers per day to engage in commercial sex acts. The victims shared a portion of the proceeds earned from their commercial sex acts with Dean.
During the second week of January, Marshall and Dean transported the victims to a hotel in Laurel, where they stayed for one or two days, engaging in commercial sex. On about January 11, 2018, Marshall and Dean transported the three females to a second hotel in Laurel. Marshall went to the front desk and obtained keys to the rooms intended for the two minor girls and the woman to use for commercial sex. Law enforcement subsequently responded to that hotel, after receiving a complaint about the smell of marijuana coming from the two rooms Marshall rented. The two minor females and the woman were located in the two rooms along with condoms and other items use in connection with their commercial sex acts.
Sean Dean, age 28, of Baltimore, previously pleaded guilty to conspiracy to engage in sex trafficking of a minor. Dean and the government have agreed that if the Court accepts the plea agreement Dean will be sentenced to 10 years in federal prison.
This case was investigated by law enforcement agencies that are members of the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.
Report suspected instances of human trafficking to HSI's tip line at 866-DHS-2ICE (1-866-347-2423) or by completing its online tip form. Both are staffed around the clock by investigators.
Acting United States Attorney Jonathan F. Lenzner commended HSI Baltimore and the Laurel Police Department for their work in the investigation and thanked the Baltimore County Police Department and the Federal Bureau of Investigation for their assistance. Mr. Lenzner thanked Assistant U.S. Attorneys Joseph R. Baldwin and Elizabeth Wright, who are prosecuting the case.
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Baltimore Man Pleads Guilty to Participating in a Conspiracy to Distribute Crack CocaineRead the Press Release
Baltimore, Maryland – Victor Davis, age 41, of Baltimore, Maryland, pleaded guilty on May 4, 2021, to conspiracy to distribute and posses with the intent to distribute cocaine base (crack cocaine). As part of his plea agreement, Davis admitted that during his participation in the conspiracy the members of the drug conspiracy distributed between 28 grams and 112 grams of crack cocaine.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Timothy Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Commissioner Michael Harrison of the Baltimore Police Department.
According to his guilty plea, from December 2019 through September 29, 2020, Davis conspired with at least two others to distribute crack cocaine in the area of the 2600 block of Greenmount Avenue and the 400 block of East Lorraine Avenue in Baltimore, Maryland, where Davis’s drug trafficking organization (DTO) operated a “drug shop.” Members of the DTO, including Davis, conducted multiple hand-to-hand sales of drugs to confidential informants.
Davis admitted that he sold crack cocaine to confidential informants on four different occasions. For example, on January 30, 2020, Davis sold two clear bags of crack cocaine to a confidential informant in exchange for $300. In February 2020, a witness observed Davis in a home in the 400 block of East Lorraine Avenue preparing crack cocaine for street-level distribution and discussed future purchases of narcotics. The witness also saw several guns in the home. Davis admitted that the firearms were used to protect the DTO business and, therefore, were possessed in furtherance of the drug conspiracy.
As detailed in the plea agreement, Davis sold a confidential informant two bags of crack cocaine base $600 on February 26, 2020 and again March 4, 2020. On March 18, 2020, the confidential informant purchased four bags of crack cocaine from Davis for $650 and discussed a potential firearm transaction. Davis told the confidential informant that he possessed a “joint,” which is a slang term for a firearm.
As detailed in the plea agreement, Davis agrees that it is reasonably foreseeable to him that the members of the drug conspiracy distributed between 28 grams and 112 grams of crack cocaine.
Davis and the government agreed that, if the Court accepts the plea agreement, Davis will be sentenced to five years in federal prison. U.S. District Judge Catherine C. Blake has not set a date for sentencing.
Acting United States Attorney Jonathan F. Lenzner commended the ATF and the Baltimore City Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Lindsey McCulley and Zachary B. Stendig, and Special Assistant U.S. Attorney Lindsay DeFrancesco who are prosecuting the case.
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Attorney General Merrick B. Garland's Statement on Missing and Murdered Indigenous Persons Awareness DayRead the Press Release
Attorney General Merrick B. Garland issued the following statement:
“Generations of American Indians and Alaska Natives have experienced violence or mourned a murdered or missing family member or loved one. The lasting effects of such trauma and suffering ripple across their communities.
“Today, we reaffirm our commitment to Tribes across the country who need and deserve our resources to help bring answers and justice to their grieving communities. In partnership with Tribal, federal, state and local agencies, the Justice Department is committed to finding lasting solutions to the public safety challenges Tribal communities encounter and to protecting them from violence, abuse, and exploitation.”
Arizona Man Sentenced to 46 Months in Prison for Conspiring to Distribute Five Kilograms of FentanylRead the Press Release
NEWARK, N.J. – An Arizona man was sentenced today to 46 months in prison for conspiring to distribute fentanyl and for possessing with intent to distribute fentanyl, Acting U.S. Attorney Rachael Honig announced.
Jose Manuel Ramos Lemus, 51, a citizen of Mexico residing in Arizona, previously pleaded guilty before U.S. District Judge Claire C. Cecchi to an indictment charging him with conspiracy to distribute and possess with the intent to distribute 400 grams or more of fentanyl and possession with intent to distribute 400 grams or more of fentanyl. Judge Cecchi imposed the sentence today by videoconference.
According to documents filed in this case and statements made in court:
On July 6, 2019, Ramos Lemus arrived at the Jersey Gardens Mall to meet with a confidential source (CS). In the parking lot of the mall, Lemus assured the CS that he had five kilograms of China White heroin for distribution. After leaving the vehicle, Ramos Lemus returned with a duffle bag containing five kilograms of fentanyl and was arrested.
In addition to the prison term, Judge Cecchi sentenced Ramos Lemus to three years of supervised release.
Acting U.S. Attorney Rachael A. Honig credited special agents of the Drug Enforcement Administration, under the direction of Special Agent Susan A. Gibson, with the investigation leading to today’s sentencing.
The government is represented by Assistant United States Attorney Lauren E. Repole of the Economic Crimes Unit.
Alabama Doctor Sentenced for Conspiracy to Distribute a Controlled SubstanceRead the Press Release
An Alabama doctor and her husband were sentenced Tuesday to 52 and 30 months in prison, respectively, for prescribing and dispensing controlled substances without a legitimate medical purpose and outside the course of professional practice.
Elizabeth Korcz, M.D., 48, and Matthew Korcz, 47, both of Hoover, pleaded guilty to conspiracy to distribute and dispense a controlled substance on Dec. 16, 2020. According to court documents, the defendants admitted to providing dangerous doses of hydrocodone to patients who were not examined by a medical professional and while Dr. Korcz was absent from their clinic. The defendants owned and operated Hoover Alt MD, a purported medical clinic with an in-house dispensary. The defendants did not employ registered nurses or other qualified medical professionals, despite Dr. Korcz’s absences. The defendants admitted to allowing hydrocodone to be dispensed from their in-house dispensary while Dr. Korcz was out of state on multiple occasions.
“Doctors who abuse their position of trust to unlawfully prescribe opioids for profit are fueling our country’s epidemic,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “The devastation to our communities caused by that betrayal of trust requires just punishment, as the court imposed.”
“It is disheartening when trusted medical professionals are engaged in the diversion of controlled substances,” said Special Agent in Charge Brad L. Byerley of the Drug Enforcement Administration (DEA). “Doctors have an obligation to ensure that prescription medications are getting into the hands of legitimate patients. This investigation is the result of DEA’s continued commitment to hold accountable those who participate in illegally dispensing controlled substances in our communities.”
“Health care professionals should be trusted and not exploit their profession to line their pockets,” said Special Agent in Charge Johnnie Sharp Jr of the FBI’s Birmingham Field Office. “I applaud the sentence handed down that holds the Korczs accountable for their greed, fraud and deceit. The FBI and our law enforcement partners will continue to root out fraud in the health care industry at every level and protect the public from their illegal and potentially deadly schemes.”
The DEA and FBI investigated the case.
Trial Attorney Devon Helfmeyer of the Criminal Division’s Fraud Section and Assistant U.S. Attorney J.B. Ward of the Northern District of Alabama prosecuted the case.
The Fraud Section leads the Appalachian Regional Prescription Opioid (ARPO) Strike Force. Since its inception in October 2018, the ARPO Strike Force, which operates in 10 districts, has charged more than 85 defendants who are collectively responsible for distributing more than 65 million pills. Since its inception in March 2007, the Health Care Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for approximately $19 billion. In addition, the Health and Human Services (HHS) Centers for Medicare & Medicaid Services, working in conjunction with the HHS-Office of Inspector General, are taking steps to increase accountability and decrease the presence of fraudulent providers.
"Get Dat Money" Gang Leader Sentenced to 20 Years in Federal PrisonRead the Press Release
MACON, Ga.– The leader of Macon’s “Get Dat Money” (GDM) methamphetamine drug trafficking organization was sentenced to serve 20 years in prison as the result of a lengthy investigation into the network’s illegal activities throughout Middle Georgia.
According to court documents, on Tuesday, May 4, Kelvin D. Carswell, aka “K-9,” “Nine,” “Kinineso Harlem Carswell,” “9ne Oharlem,” “Kninepunkin KinGcarswell,” 41, of Macon, was sentenced to serve 240 months in federal prison to be followed by three years of supervised release after he pleaded guilty to one count conspiracy to possess with the intent to distribute methamphetamine on December 15, 2020.
The following individuals were also sentenced to prison on Tuesday, May 4:
Terrico Wade, 40, of Macon, was sentenced to serve 71 months in prison to be followed by three years of supervised release after he pleaded guilty to distribution of methamphetamine on December 15, 2020.
Quateshia Carswell, 27, of Macon, was sentenced to serve 48 months in prison to be followed by three years of supervised release after she pleaded guilty to conspiracy to possess with intent to distribute methamphetamine on December 1, 2020.
Trent Burton, 50, of Macon, was sentenced to serve 48 months in prison to be followed by one year of supervised release after he pleaded guilty to use of communication facility on December 16, 2020.
Jahmi Booker, 38, of Macon, was sentenced to serve 10 months in prison to be followed by one year of supervised release after he pleaded guilty to use of communication facility on December 15, 2020.
Jacobi Jones, Sr., 35, of Macon, was sentenced to serve seven months in prison to be followed by one year of supervised release after he pleaded guilty to misprision of felony on December 21, 2020.
The following individuals were sentenced to prison on Monday, May 3:
Chad Cummings, 37, of Macon, was sentenced to serve 60 months in prison to be followed by three years of supervised release after he pleaded guilty to possession of a firearm in furtherance of a drug trafficking crime.
Trayvion Burney, 27, of Macon, was sentenced to serve 33 months in prison to be followed by one year of supervised release after he pleaded guilty to misprision of a felony on January 27, 2021.
Henry Flowers, 32, of Macon, was sentenced to time served to be followed by one year of supervised release after he pleaded guilty to use of a communication facility on January 11, 2021.
The following defendants are awaiting sentencing:
Tabitha Whitehead, 36, of Macon, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine on December 21, 2020, and faces a maximum of twenty years imprisonment to be followed by at least three years of supervised release and a maximum fine of $1,000,000.
Davan Randolph, 49, of Macon, pleaded guilty to possession with intent to distribute methamphetamine on December 15, 2020, and faces a maximum twenty years imprisonment to be followed by at least three years of supervised release and a maximum fine of $1,000,000.
Kelly Jones, 38, of Macon, pleaded guilty to use of communication facility on December 15, 2020, and faces a maximum of four years in prison to be followed by one year of supervised release and a maximum fine of $250,000.
Kewaunis King, 31, of Macon, pleaded guilty to use of communication facility on December 15, 2020, and faces a maximum of four years imprisonment to be followed by one year of supervised release and a maximum fine of $250,000.
U.S. District Judge Tilman E. “Tripp” Self, III handed down the sentences.
There is no parole in the federal system.
“Many lives have been undoubtedly damaged, even destroyed, due to the actions of Kelvin Carswell and the members of the ‘Get Dat Money’ drug trafficking organization. Carswell brazenly orchestrated a prolific meth trafficking organization from behind prison bars, and he has now received the maximum penalty provided by law. He, along with his co-conspirators, are being held accountable for their destructive choices,” said Acting U.S. Attorney Peter D. Leary. “The FBI and Bibb County Sheriff’s Office did an outstanding job investigating and ultimately shutting down this stream of methamphetamine into Middle Georgia.”
“Carswell and fellow members of the ‘Get Dat Money’ drug trafficking organization got serious prison time thanks to our partnerships with the Bibb County Sheriff Office and the U.S. Attorney’s Office,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Carswell’s actions, selling drugs from inside prison walls, were aberrant and unacceptable. The community can rest assured that this dangerous criminal organization is out of business.”
“This case illustrates the reach of a career criminal from even behind prison bars. Thanks to the determined work of Bibb Sheriff’s investigators and FBI agents, Kelvin Carswell and his associates will face the appropriate and undeniable consequences of their actions,” said Bibb County Sheriff David Davis.
According to the stipulation of fact entered into court, in 2017, the Macon office of the FBI and the Bibb County Sheriff’s Office initiated an investigation into the Carswell drug trafficking organization known as “Get Dat Money” or “GDM.” On May 30, 2012, Carswell had been incarcerated by the Georgia Department of Corrections, serving a sentence for attempted carjacking with a maximum release date of October 12, 2026. In June 2017, the FBI received information that Carswell was orchestrating the sale of drugs while incarcerated at the Washington State Prison in Sandersville, Georgia. A search of Carswell’s prison cell uncovered a quantity of drugs and a cellular phone with multiple SD cards. Investigators discovered Carswell was texting his co-conspirators explicit instructions via his contraband cell phone to facilitate the distribution of methamphetamine, heroin and crack cocaine from prison. The drugs, once obtained, were sold from a residence Carswell and his co-conspirators referred to as “The Mansion” located at 373 Fulton Street in Macon. Carswell’s co-conspirators would sell drugs out of “The Mansion” at his direction. Drugs were also sold by distributors working at the behest of Carswell at multiple motels located in Macon. Throughout the course of the conspiracy, Carswell’s co-conspirators obtained more than 10,000 grams of methamphetamine for distribution at his direction.
The FBI and Bibb County Sheriff’s Office investigated the case.
Assistant U.S. Attorney Steven Ouzts prosecuted the case.
Tuesday 4 May 2021
Wyoming County Man Arrested, Charged with Receipt and Possession of Child PornographyRead 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 Ronald Longhini, 59, of Warsaw, NY, was arrested and charged by complaint with receipt and possession 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 Aaron J. Mango, who is handling the case, stated that according to the complaint, on January 21, 2021, an undercover law enforcement officer identified an IP address downloading videos of suspected child pornography from a peer to peer sharing network. The IP address was traced to the defendant’s residence in Warsaw. Similar videos of suspected child pornography were also downloaded in February and March 2021. The videos included pre-pubescent minors engaged in sexual acts with adults. On April 28, 2021, investigators seized several digital items during the execution of a search warrant at Longhini’s residence.
The defendant made an initial appearance this afternoon before U.S. Magistrate Judge Jeremiah J. McCarthy and was held pending a detention hearing on May 6, 2021, at 2:45 p.m.
The complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Steve Belongia; the Wyoming County Sheriff’s Office, under the direction of Sheriff Gregory J. Rudolph; and the Tonawanda Police Department, under the direction of Chief James P. Stauffiger.
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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Woonsocket Man Twice Charged with Trafficking Cocaine Sentenced to PrisonRead the Press Release
PROVIDENCE – A Woonsocket man arrested by members of the FBI’s Safe Streets Violent Gang Task Force in July 2019 and by Woonsocket Police in June 2020 for trafficking crack cocaine was sentenced today to 41 months in federal prison.
According to court documents, beginning in March 2019, during an investigation into the drug trafficking activities of Sean Breton, 28, and others, members of law enforcement surveilled numerous drug transactions, including seven sales of crack cocaine by Breton. Breton pleaded guilty on November 8, 2019, to possession with intent to distribute cocaine base.
Subsequently, in June 2020, while awaiting sentencing on his conviction in federal court, Breton was arrested by Woonsocket Police on drug trafficking, fireworks, and firearm charges. At the time of his arrest, law enforcement seized from Breton’s residence 10 grams of crack cocaine, more than $22,000 in cash, gold jewelry, and two BB guns – one realistically resembling an M4 military weapon, the other a pistol. On August 19, 2020, a federal grand jury returned an indictment charging Breton with possession of cocaine base. He pled guilty on March 4, 2021, as charged in the indictment.
Sean Breton was sentenced today by U.S. District Court Judge William E. Smith to 41 months in federal prison to be followed by three years of supervised federal release, announced Acting United States Attorney Richard B. Myrus, Special Agent in Charge of the FBI Boston Division Joseph R. Bonavolonta, and Woonsocket Police Chief Thomas Oates.
The cases were prosecuted by Assistant U.S. Attorneys Christine D. Lowell and Sandra R. Hebert.
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Wausau Felon Sentenced to 6 Years for Possessing FirearmRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, Acting United States Attorney for the Western District of Wisconsin, announced that Michael Wienandt, 26, Wausau, Wisconsin, was sentenced today by Chief U.S. District Judge James D. Peterson to 6 years in federal prison for possessing a firearm as a convicted felon. Wienandt pleaded guilty to this charge on February 12, 2021.
Wienandt was arrested on May 15, 2020 by members of the Central Wisconsin Narcotics Task Force and Everest Metro Police Department at a bar in the Village of Weston in connection with an attempted burglary earlier in the day. When the officers took Wienandt into custody, he had a .40 caliber handgun in his waistband. The investigators also found a sawed-off shotgun in a room at a nearby hotel in Weston where Wienandt was staying. Wienandt has prior felony burglary convictions which make his possession of firearms unlawful.
During Wienandt’s sentencing, Judge Peterson expressed concern about Wienandt’s past repeated pattern of criminal behavior after completing earlier sentences. He also considered Wienandt’s “atrocious” conduct and threats toward police during his arrest an aggravating factor.
The charge against Wienandt was the result of an investigation conducted by the Central Wisconsin Narcotics Task Force, Wisconsin Department of Justice Division of Criminal Investigation, Everest Metro Police Department, and Wausau Police Department. The prosecution of the case has been handled by Assistant U.S. Attorney Robert A. Anderson.
Virginia man admits to sex offender chargeRead the Press Release
ELKINS, WEST VIRGINIA – Eddie Reese Cason, of Buckingham, Virginia, has admitted to a sex offender charge, Acting U.S. Attorney Randolph J. Bernard announced.
Cason, 37, pled guilty today to one count of “Failure to Update Sex Offender Registration.” Cason, a person required to register as a sex offender, admitted to failing to update his sex offender registration from October 2020 to January 2021 in Randolph County after traveling from Virginia to West Virginia.
Cason is facing up to 10 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Sarah E. Wagner is prosecuting the case on behalf of the government. The U.S. Marshal Service and the West Virginia State Police investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Vacaville Man Sentenced to over 4 Years in Prison for Unlawfully Possessing Ammunition as a FelonRead the Press Release
SACRAMENTO, Calif. — Carlos Biviescas, 29, of Vacaville, was sentenced today to four years and nine months in prison for being a felon in possession of ammunition, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, in May 2020, Biviescas was arrested for driving on a suspended license. A search of his car revealed a backpack containing a ghost gun loaded with an extended magazine containing 29 rounds of .40 caliber ammunition. The backpack also contained an additional 21 additional rounds of ammunition. Biviescas cannot lawfully possess firearms or ammunition because he has previously been convicted of two felony offenses.
This case was the product of an investigation by the Vacaville Police Department, the Solano County District Attorney’s Office, the FBI’s Solano County Violent Crimes Task Force, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Adrian T. Kinsella prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
Union County Man Admits Receipt of Child PornographyRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, man today admitted receiving images of child sexual abuse, Acting U.S. Attorney Rachael A. Honig announced.
Joseph Hinksmon, 41, of Cranford, New Jersey, pleaded by videoconference before U.S. District Judge Claire C. Cecchi to one count of an indictment charging him with receipt of child pornography.
According to documents filed in this case and statements made in court:
From July 10, 2019, through July 24, 2019, Hinksmon accessed the internet to download and receive videos and images of child sexual abuse to his personal hard drive. Hinksmon’s computer devices contained more than 600 images of child sexual abuse that Hinksmon had downloaded from the internet, including images of prepubescent children.
The charge of receiving child pornography carries a mandatory minimum sentence of five years in prison, a maximum of 20 years in prison, and a $250,000 fine. Hinksmon will be required to register as a sex offender. Sentencing is scheduled for Sept. 23, 2021.
Acting U.S. Attorney Rachael A. Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney John Wilson Jr. of the Criminal Division in Newark.
Two Men Charged with Heroin TraffickingRead the Press Release
KANSAS CITY, Mo. – Two men traveling through Kansas City, Missouri, were charged in federal court today for possessing nearly 24 pounds of heroin aboard a bus en route from California to New York.
Darwin G. Morales-Sagastume, 23, and Cristian J. Lopez-Catalan, 28, were charged in a criminal complaint filed in the U.S. District Court in Kansas City, Mo., with one count of possessing heroin to distribute. They remain in federal custody pending a detention hearing.
According to an affidavit filed in support of the federal criminal complaint, Morales-Sagastume and Lopez-Catalan arrived in Kansas City, Mo., on Monday, May 3, aboard a bus that originated in Los Angeles, Calif. As they were waiting in the bus terminal, a police service dog detected illegal drugs in a suitcase that was stored under the bus. The suitcase had the destination of New York written on its tag.
An officer approached Morales-Sagastume and Lopez-Catalan and asked them to identify their luggage. They identified four suitcases, the affidavit says, including the suitcase alerted upon by the police service dog. Officers searched the four suitcases and found two bundles hidden inside each of the suitcases. The eight bundles contained a total of 23.7 pounds of heroin.
The charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Bradley K. Kavanaugh and Special Assistant U.S. Attorney Sarah Rasalam. It was investigated by the Drug Enforcement Administration with the Missouri Western Interdiction Narcotics Task Force.
Thurston County man sentenced to prison for drug trafficking and illegal gun possessionRead the Press Release
Tacoma – A Yelm, Washington man was sentenced today in U.S. District Court in Tacoma to 57 months in prison for being a felon in possession of firearms and possession of methamphetamine with intent to distribute, announced Acting U.S. Attorney Tessa M. Gorman. Daniel Ague Masters, 51, kept a substantial arsenal at both an underground bunker and in a garage on a property in Rainer, Thurston County. At the sentencing hearing, U.S. District Judge Benjamin H. Settle said distributing methamphetamine “is trafficking in poison. Methamphetamine is a dangerous substance… it destroys people’s lives. When one is engaged in distributing methamphetamine there is harm being done.”
According to records filed in the case, Masters was known in the Thurston County community as a dealer of methamphetamine who amassed a collection of firearms. Sources told law enforcement that Masters traded meth for stolen firearms. A Court-authorized search warrant served on Masters’ homes, underground bunker, and a detached garage he controlled turned up two dozen firearms and hundreds of rounds of ammunition. Many of the firearms had been reported stolen. One of the guns was a submachine gun, and another was a rifle with a high-capacity magazine. Masters is prohibited from possessing firearms due to felony convictions in Thurston County for methamphetamine trafficking, bail jumping, and attempt to elude.
Masters has been in federal custody since January 2019. He pleaded guilty in August 2019.
The case was investigated by Homeland Security Investigation (HSI) and the Lewis County Joint Narcotic Enforcement Task Force and the Thurston County Narcotics Task Force and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF).
The case is being prosecuted by Assistant United States Attorney Ye-Ting Woo.
Three Plead Guilty to Bank Fraud, Aggravated Identity TheftRead the Press Release
ABINGDON, Va. – A group of three individuals have pleaded guilty to using stolen checks and identification documents to commit bank fraud and aggravated identity theft.
According to court documents, on May 24, 2020, at the Iron Furnace Trailhead in Lee County, Virginia, individuals broke into several vehicles and stole personal items, including identification documents, Social Security cards, and personal checks. Four days later, Anica Marie Santiago, 34, of Lexington, Kentucky, Cregg Mitchell-Feazell, 28, of Oakland Park, Florida, and Patricia Butcher, 31, of Clay City, Kentucky, took one of the stolen checks to a drive-through lane at a Commercial Bank in Newport, Tennessee. The check was fraudulently made out to one of the victims of the previously thefts. Butcher produced the fraudulent check and a stolen state-issued photo ID to the bank teller, who cashed the check for $935.
The group used the stolen checks and IDs at least three other times to cash fraudulent checks. These events were also part of a larger organized scheme involving other break-ins at other locations, other thefts of checkbooks and identification documents, and the cashing of other fraudulent checks.
All three defendants pleaded guilty to one count of conspiracy to commit bank fraud and one count of aggravated identity theft. Sentencing hearings have been scheduled for June 3, 2021, July 22, 2021, and July 23, 2021 for Santiago, Mitchell-Feazell, and Butcher, respectively. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The investigation of the case was conducted by the National Park Service, with assistance from the Jacksboro, Tennessee Police Department, the Campbell County, Tennessee Sheriff’s Office, the Fentress County, Tennessee Sheriff’s Office, and the Cookeville, Tennessee Police Department.
Assistant U.S. Attorneys Whit D. Pierce and Randy Ramseyer are prosecuting the case.
Texas woman handed significant sentence for health care fraud schemeRead the Press Release
HOUSTON – A 58-year-old resident of Richmond has been ordered to prison for 25 years following her convictions of conspiracy and aiding and abetting health care fraud, announced Acting U.S. Attorney Jennifer B. Lowery.
A Houston jury returned guilty verdicts against Brenda Rodriguez in January 2019 following a three-day trial.
Today, U.S. District Judge Lynn H. Hughes ordered her to serve a total of 300 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the court heard additional evidence of her role in the scheme. In handing down the sentence, the court noted that as part of a larger conspiracy Rodriguez was responsible for all of the loss to taxpayers the scheme generated.
Brenda Rodriguez owned and operated the QC Medical Clinic in Richmond.
At trial, the jury heard Rodriguez paid doctors to approve patients for home health care regardless of whether it was medically necessary. Rodriguez then sold those approvals to various corrupt home health care providers. These providers then billed Medicare for services that were either unnecessary or never provided.
During the trial, jurors were able to watch video that captured the fraud committed at Rodriguez’s clinic. Potential clients were given brief exams, often by unlicensed people posing as doctors, and then quickly approved for medical services that were unnecessary.
As a result of the investigation and prosecution, several other doctors and administrators have also been convicted of crimes ranging from Medicare fraud to the payment of kickbacks.
Ultimately, the providers billed Medicare for over $11 million as a result of patients Rodriguez provided.
Rodriguez was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The Department of Health and Human Service (DHHS)-Office of Inspector General and FBI conducted the investigation. Assistant U.S. Attorneys Tina Ansari and Thomas Carter prosecuted the case along with Trial Attorney Scott Armstrong of the Fraud Section in the Department of Justice’s Criminal Division.
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 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, DHHS Centers for Medicare & Medicaid Services, working in conjunction with DHHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Texan sentenced in CARES Act unemployment fraud schemeRead the Press Release
CORPUS CHRISTI, Texas - A 29-year-old Corpus Christi man has been ordered to federal prison after he admitted to devising a scheme to fraudulently misappropriate $255,052 in unemployment benefits meant for those suffering financial hardship due to the COVID-19 pandemic, announced Acting U.S. Attorney Jennifer B. Lowery.
William Cleveland Peck pleaded guilty Oct. 22, 2020.
Today, U.S. District Judge David S. Morales ordered him to serve a 41-month sentence to be immediately followed by three years of supervised release.
As part of his guilty plea, Peck admitted to misappropriating personally identifiable information, such as Social Security numbers and dates of birth, related to various individuals. Peck then used that information to file multiple false and fraudulent claims for Pandemic Unemployment Assistance (PUA) and general unemployment benefits between May and July 2020.
Peck admitted to committing mail fraud by using misappropriated identities to file false and fraudulent claims with the Texas Workforce Commission (TWC), causing TWC to mail debit cards to a P.O. Box Peck utilized. Peck then used the fraudulently-obtained debit cards to withdraw cash and make purchases. The individuals under whose identities Peck filed the false claims were not residents of Texas, not eligible for benefits through TWC and did not authorize Peck to file such claims.
PUA benefits were made available through the Coronavirus Aid, Relief and Economic Security (CARES) Act - a federal law enacted March 29, 2020, which provides emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic.
Previously released on bond, Peck was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The Department of Labor - Office of the Inspector General, U.S. Postal Inspection Service and TWC conducted the investigation. Assistant U.S. Attorneys Andrew Swartz and Asha Natarajan are prosecuting the case.
Springfield Man Pleads to Child Pornography on Day of TrialRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Missouri, man who was scheduled to begin his criminal jury trial today instead pleaded in federal court to receiving child pornography over the internet.
Scott James Wells, 55, withdrew his plea of not guilty before U.S. District Judge M. Douglas Harpool in order to enter a nolo contendre, or “no contest,” plea, neither admitting nor disputing the federal charges against him, but acknowledging the government had sufficient evidence to convict him of the crimes charged beyond a reasonable doubt. The court found Wells guilty of one count of receiving and distributing child pornography. Wells remains detained in federal custody until his sentencing hearing.
Wells received child pornography over the internet between Dec. 15, 2016, through March 22, 2017. Law enforcement received two CyberTipline reports from the National Center for Missing and Exploited Children after Wells used his Facebook account to transmit two images of child pornography to another Facebook user.
Officers executed a search warrant at Wells’s residence and seized his laptop computer, which contained child pornography.
Under federal statutes, Wells is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 20 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys James J. Kelleher and Nhan Nguyen. It was investigated by Homeland Security Investigations and the Southwest Missouri Cyber Crimes Task Force.
Six Charged with Fraudulently Seeking to Obtain $9 Million in COVID-Relief FundingRead the Press Release
Acting U.S. Attorney Bridget M. Brennan announced that a federal grand jury in Cleveland returned a 14-count indictment charging six individuals for their alleged roles in a scheme to fraudulently obtain approximately $9 million in COVID-19 relief funds guaranteed by the U.S. Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Terrence L. POUNDS, 44, of Holland, Ohio; Charles B. TILLER, 37, of Columbus, Ohio; Terri DAVIS, 30, of Old Hickory, Tennessee; Randolph NUNN, 48, of Canton, Ohio; Samira ABDUL-KARIM, 27, of New Haven, Connecticut; and Quwan SIMMONS, 28, of Hartford, Connecticut are all charged with conspiracy to commit wire fraud and wire fraud. In addition, Defendants POUNDS, NUNN, DAVIS and TILLER are also charged with various counts of money laundering.
“COVID-19 relief funds are intended to support hardworking Americans and small businesses struggling with financial challenges as a result of the pandemic,” said Acting U.S. Attorney Bridget M. Brennan. “The U.S. Attorney’s Office is committed to pursuing anyone alleged to have fraudulently obtained relief funding.”
"These six individuals allegedly defrauded United States taxpayers by engaging in this scheme,” said FBI Special Agent in Charge Eric B. Smith. “The CARES Act was designed to help struggling Americans, not for greedy fraudsters to line their pockets. The FBI will continue to work with our partners to root out cheaters engaged in criminal financial deception.”
“The CARES Act was enacted with provisions to help struggling businesses stay afloat during the COVID-19 pandemic,” stated Bryant Jackson, Special Agent in Charge of the IRS-Criminal Investigation Cincinnati Field Office. “Those individuals who have or continue to exploit the programs as a ‘get rich quick’ scheme will be held accountable for their actions.”
According to the indictment, from on or about March 31, 2020, through on or about Dec. 17, 2020, the six Defendants, and others known and unknown to the Grand Jury, are accused of devising a scheme to defraud the SBA and other financial institutions by obtaining Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program (PPP) loans under false pretenses.
The indictment states that POUNDS recruited TILLER, DAVIS, NUNN, ABDUL-KARIM, SIMMONS and others to provide him with their personal identifying information, which he then used to apply for EIDL loans in their names.
POUNDS allegedly claimed in the EIDL loan applications that TILLER, DAVIS, NUNN, ABDUL-KARIM and SIMMONS each operated a non-profit organization that was a “Faith-Based Organization” and a “Church” with $1,000,000 in revenue and 15 employees. Based on this false information, the SBA approved these loan applications. In return, the indictment states that TILLER, DAVIS, NUNN, ABDUL-KARIM and SIMMONS then paid POUNDS a portion of the fraudulently obtained loan proceeds.
TILLER, DAVIS, NUNN, ABDUL-KARIM and SIMMONS are all accused of using the EIDL loan proceeds for the benefit of themselves and others, and in a manner that was inconsistent with the purposes of the EIDL program.
Furthermore, it is alleged that POUNDS submitted an SBA EIDL loan application for a purported “Faith-Based Organization” and “Church” that POUNDS claimed to operate. In response to the information provided, the SBA approved and funded this loan application. POUNDS is accused of using portions of the loan proceeds and payments received from others to purchase a 2021 Chevrolet Tahoe, a 2021 Kia Telluride, a 2020 Hyundai Elantra and a 2020 BMW X4.
According to the indictment, POUNDS, TILLER, DAVIS, NUNN, ABDUL-KARIM and SIMMONS, together and with other co-conspirators, submitted at least 60 fraudulent EIDL loan applications and other fraudulent PPP loan applications seeking a total of approximately $9 million. The SBA approved approximately $3.3 million.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the Defendant’s sentence will be determined by the Court after review of factors unique to this case, including the Defendant’s prior criminal record, if any, the Defendant’s role in the offense, and the characteristics of the violation.
In all cases, the sentence will not exceed the statutory maximum, and in most cases, it will be less than the maximum.
This investigation was conducted by the Cleveland FBI – Canton Resident Agency and the IRS – Criminal Investigations. This case is being prosecuted by Assistant U.S. Attorneys Brendan D. O’Shea and Elliot Morrison.
The public is encouraged to submit any allegations of COVID-19 fraud to the National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form.
Second Member of "Boogaloo Bois" Pleads Guilty to Conspiracy to Provide Material Support to HamasRead the Press Release
WASHINGTON – A Minnesota man pleaded guilty today to conspiracy to provide material support and resources, namely property, services and weapons, to what he believed was Hamas, a designated foreign terrorist organization, for use against Israeli and U.S. military personnel overseas.
According to court documents, Michael Solomon, 31, of New Brighton, Minn., was a member of the “Boogaloo Bois,” a group of individuals who espouse violent anti-government sentiments. In late May 2020, the FBI initiated an investigation into Solomon and co-defendant Benjamin Ryan Teeter, both members of the “Boogaloo Bois,” and a sub-group called the “Boojahideen.”
According to court documents, on June 10, 2020, Solomon and Teeter met with a confidential human source (CHS), whom the defendants believed to be a member of Hamas. During this meeting, Solomon and Teeter proposed assisting Hamas as a means of furthering the goals of the Boogaloo Bois. Throughout the course of the conspiracy, Solomon used encrypted messaging applications to communicate with Teeter and the CHS about various aspects of the conspiracy.
On June 28, 2020, Solomon, Teeter and the CHS met an undercover employee of the FBI (UCE) that Solomon believed was a member of Hamas. During this meeting, Solomon and Teeter proposed manufacturing suppressors, untraceable firearms and fully automatic firearms for Hamas.
On July 6, 2020, Solomon and Teeter purchased a drill press for the purpose of manufacturing suppressors for Hamas. Solomon admitted that he and Teeter had planned to use the drill press to also manufacture suppressors for members of the Boogaloo Bois. Solomon and Teeter brought the drill press to Solomon’s home and later used the drill press to manufacture five suppressors.
On July 30, 2020, Solomon and Teeter delivered the suppressors to the CHS and UCE believing those devices would be used by the militant wing of Hamas. During that meeting, the defendants agreed to manufacture additional suppressors for Hamas believing that the next batch of suppressors would be used against Israeli and U.S. military personnel overseas.
Solomon admitted that he and Teeter again met the UCE on Aug. 29, 2020. During this meeting, the defendants gave the UCE a 3-D printed “auto sear” believing that the auto sear would be used by Hamas to convert semi-automatic rifles into fully automatic rifles. At this time, Solomon and Teeter agreed to obtain, and did obtain, another order of auto sears for the CHS and the UCE.
Solomon pleaded guilty to one count of conspiracy to provide material support to a designated foreign terrorist organization. Solomon faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney W. Anders Folk for the District of Minnesota; Assistant Attorney General John C. Demers for the Justice Department’s National Security Division; and Special Agent in Charge Michael Paul of the FBI’s Minneapolis Field Office made the announcement after Senior U.S. District Judge Michael J. Davis accepted the plea.
The FBI’s Joint Terrorism Task Force is investigating the case, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Trial Attorneys George Kraehe and Felice John Viti of the National Security Division's Counterterrorism Section and Assistant U.S. Attorney Andrew R. Winter of the District of Minnesota are prosecuting the case.
Second Member of "Boogaloo Bois" Pleads Guilty to Conspiracy to Provide Material Support to HamasRead the Press Release
ST. PAUL, Minn. – Michael Solomon, 31, of New Brighton, pleaded guilty today to conspiracy to provide material support and resources, namely property, services and weapons, to what he believed was Hamas, a designated foreign terrorist organization, for use against Israeli and U.S. military personnel overseas.
According to court documents, in late May of 2020, the FBI initiated an investigation into Solomon and co-defendant Benjamin Ryan Teeter, two members of the “Boogaloo Bois,” and a sub-group called the “Boojahideen.” The Boogaloo Bois are a group of individuals who espouse violent anti-government sentiments.
According to court documents, on June 10, 2020, Solomon and Teeter met with a confidential human source (“CHS”), whom the defendants believed to be a member of Hamas. During this meeting, Solomon and Teeter proposed assisting Hamas as a means of furthering the goals of the Boogaloo Bois. Throughout the course of the conspiracy, Solomon used encrypted messaging applications to communicate with Teeter and the CHS about various aspects of the conspiracy.
On June 28, 2020, Solomon, Teeter, and the CHS, met an undercover employee of the FBI (“UCE) that Solomon believed was a member of Hamas. During this meeting, Solomon and Teeter proposed manufacturing suppressors, untraceable firearms, and fully automatic firearms for Hamas.
On July 6, 2020, Solomon and Teeter purchased a drill press for the purpose of manufacturing suppressors for Hamas. Solomon admits that he and Teeter had planned to use the drill press to also manufacture suppressors for members of the Boogaloo Bois. Solomon and Teeter brought the drill press to Solomon’s home and later used the drill press to manufacture five suppressors.
On July 30, 2020, Solomon and Teeter delivered the suppressors to the CHS and UCE believing those devices would be used by the militant wing of Hamas. During that meeting, the defendants agreed to manufacture additional suppressors for Hamas believing that the next batch of suppressors would be used against Israeli and U.S. military personnel overseas.
Solomon admitted that he and Teeter again met the UCE on August 29, 2020. During this meeting, the defendants gave the UCE a 3-D printed “auto sear” believing that the auto sear would be used by Hamas to convert semi-automatic rifles into fully automatic rifles. At this time, Solomon and Teeter agreed to obtain, and did obtain, another order of auto sears for the CHS and the UCE.
Solomon pleaded guilty to one count of conspiracy to provide material support to a designated foreign terrorist organization. Solomon faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney W. Anders Folk for the District of Minnesota; Assistant Attorney General John C. Demers for the Justice Department’s National Security Division; and Special Agent in Charge Michael Paul of the FBI’s Minneapolis Field Office made the announcement after Senior U.S. District Judge Michael J. Davis accepted the plea.
The FBI’s Joint Terrorism Task Force is investigating the case, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Assistant U.S. Attorney Andrew R. Winter, and Trial Attorneys George Kraehe and Felice John Viti of the National Security Division's Counterterrorism Section are prosecuting the case.
Seattle man pleads guilty to federal crimes for creating sexually explicit images of young childrenRead the Press Release
Seattle – A Seattle man pleaded guilty today in U.S. District Court in Seattle to three federal felonies connected to his creation and possession of sexually explicit images of children, announced Acting U.S. Attorney Tessa M. Gorman. Cameron Bennett Scott, 53, pleaded guilty to enticement of a minor, possession of child pornography, and receipt of child pornography. He faces a mandatory minimum ten years in prison and up to life in prison when sentenced by U.S. District Judge Robert S. Lasnik on July 30, 2021.
According to the plea agreement, Scott came to the attention of law enforcement in December 2018 when an internet service provider reported an internet address to the National Center for Missing and Exploited Children (NCMEC) for uploading suspected images of child pornography. An investigation by Homeland Security Investigations and the Internet Crimes Against Children Task Force traced the images to Scott. The investigation revealed that he had been communicating with a woman in British Columbia, Canada, about sexually molesting her children—both under the age of ten and he received files depicting their abuse.
Law enforcement served a search warrant at Scott’s residence in August 2019, seizing two computers and his mobile devices. An examination of his mobile device revealed that he had taken sexually explicit photos of a minor child in his residence in July 2019.
The woman in British Columbia is being prosecuted in Canada for the sexual abuse and exploitation of two minor children, as a result of the Seattle Police Department and Homeland Security investigation.
Enticement of a minor is punishable by a mandatory minimum ten years in prison and up to life in prison. Receipt of child pornography is punishable by a mandatory minimum five years in prison and up to twenty years in prison. Possession of child pornography is punishable by up to twenty years in prison.
The case was investigated by the Seattle Police Department and Homeland Security Investigation (HSI) as part of the Internet Crimes Against Children Task Force. The case is being prosecuted by Assistant United States Attorney Cecelia Gregson.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Prolific and ‘relentless’ identity thief sentenced to 5+ years in prisonRead the Press Release
Seattle – A Seattle man who stole tens of thousands of dollars from a woman in her 70’s while she lay dying in the hospital, was sentenced today in U.S. District Court to 65 months in prison for ten federal felonies, announced Acting U.S. Attorney Tessa M. Gorman. Dwayne Brooks, 38, was convicted following a four-day trial in February 2020 of six counts of bank fraud and attempted bank fraud, two counts of use of unauthorized access devices, and two counts of aggravated identity theft. At the sentencing hearing, U.S. District Judge James L. Robart noted Brooks victimized the elderly. “This was a population that was extremely vulnerable … He was relentless to go out and steal from these people,” the judge said.
“This defendant is a financial predator who ruthlessly exploited anyone he could, including the elderly, infirm, or even medically incapacitated,” said Acting U.S. Attorney Gorman. “He was relentless in his efforts to open credit accounts, cash stolen checks, and steal from bank and retirement accounts. His victims are still sorting out the damage he did to their financial lives.”
According to records in the case and testimony at trial, between November 2016 and April 2018, Brooks used debit cards, credit cards, checks, and other financial information stolen from mail, cars, and homes to steal money from multiple victims. One of the victims, a 78-year-old woman, ultimately died in the hospital while Brooks was looting her accounts. During the scheme, Brooks repeatedly used her information to open credit accounts, drain bank accounts, and even attempted to obtain her power of attorney. While the woman was in the hospital, surveillance video shows Brooks using keys stolen from her ex-husband’s car to burglarize her condominium, taking bags full of valuables. A second victim, an 84-year-old Seattle woman, is still trying to untangle the fraud he committed against her accounts, including her retirement investment account. Finally, Brooks stole and attempted to cash a $34,000 tax refund check.
In all, Brooks’ fraud exceeds $120,000. Judge Robart ordered restitution of $128,802.
Brooks began his ID theft scheme just months after being released from prison. He was sentenced to 55 months in prison in 2010 for armed robbery. Judge Robart noted that the 65-month sentence he handed down is on top of a 15-month sentence Brooks already served for related crimes in state prison.
The case was investigated by the U.S. Postal Inspection Service (USPIS) with assistance from the Treasury Inspector General for Tax Administration (TIGTA), the Duvall Police Department, King County Sheriff’s Office, Renton Police Department, and the Washington State Patrol.
The case was prosecuted by Assistant United States Attorney Benjamin Diggs.
Portland Man Pleads Guilty for Role in Bank Fraud SchemeRead the Press Release
PORTLAND, Ore.—A Portland man pleaded guilty today for his role in a fraud scheme whereby he and a co-conspirator would steal mail from residential mailboxes and use stolen personal identification information to defraud local banks.
Demontae Sanders, 48, pleaded guilty to conspiring to commit bank fraud and mail theft.
According to court documents, beginning on an unknown date and continuing until at least July 7, 2020, Sanders and an accomplice, Latanya Jenkins, 50, also of Portland, conspired with one another to steal mail from residential mailboxes throughout the Portland Metropolitan Area. Sanders and Jenkins stole checks, credit cards, and other personal identity information that they used to impersonate victims and open accounts at several local credit unions and banks. Sanders and Jenkins used the accounts to defraud these financial institutions.
To further their scheme, Sanders and Jenkins communicated with one another by text and used the internet at Jenkins’ residence to open several bank accounts using stolen information. Sanders and Jenkins collected hundreds of stolen financial documents including bank statements, checks, tax returns, U.S. Passports, and other government-issued identification documents. The pair also stole and cashed an Economic Impact Payment check issued by the U.S. Treasury.
On September 24, 2020, a federal grand jury in Portland returned an 18-count indictment charging Sanders and Jenkins with conspiracy to commit bank fraud, bank fraud, aggravated identity theft, and mail theft.
Sanders faces a maximum sentence of 35 years in prison; a $1.25 million fine or twice his criminally derived gains, whichever is larger; and five years of supervised release. He will be sentenced on July 20, 2021 before U.S. District Court Judge Anna J. Brown.
As part of the plea agreement, Sanders has agreed to pay restitution in full to his victims as identified by the government and ordered by the court.
Jenkins is on pre-trial release pending a three-day jury trial scheduled to begin on June 8, 2021.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
Homeland Security Investigations and the U.S. Postal Inspection Service jointly investigated this case. Assistant U.S. Attorney Seth D. Uram is prosecuting the case.
Point Pleasant Man Pleads Guilty to Child Sex Trafficking OffenseRead the Press Release
CHARLESTON, W.Va. – A Point Pleasant man pleaded guilty today to a federal child sex trafficking offense.
According to court documents, Dale Randall McCarthy, Jr., 51, admitted that on August 8, 2020, he agreed with a man he met online to pay $100 to have sex with a 14-year-old girl that would be supplied by the other man. McCarthy met with the man at a motel in Dunbar and paid the man $40 up front for sex with the girl, with the remainder to be paid after the sexual activity. After paying the man $40, McCarthy was placed under arrest. McCarthy further admitted that he had previously used Craigslist to communicate with minors about meeting for sexual activity. In one such conversation, McCarthy admitted to requesting and receiving a sexually explicit image of a person who stated they were a minor.
McCarthy pleaded guilty to attempted sex trafficking of a minor and faces at least 10 years and up to life in prison when he is sentenced on August 12, 2021.
Acting United States Attorney Lisa G. Johnston made the announcement and praised the investigative work of the FBI Child Exploitation and Human Trafficking Task Force. Assistant United States Attorney Jennifer Rada Herrald is handling the prosecution.
Senior United States District Judge John T. Copenhaver, Jr., presided over the hearing.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:20-cr-00160.
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Pittsburgh Man Sentenced to Prison for Heroin TraffickingRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania has been sentenced in federal court to 37 months’ imprisonment followed by three years of supervised release on his conviction for conspiracy to distribute and possess with intent to distribute heroin, Acting United States Attorney Stephen R. Kaufman announced today.
United States District Judge William S. Stickman, IV imposed the sentence on Doron McCarthy, 29, of Pittsburgh, Pennsylvania.
According to information presented to the court, McCarthy conspired to distribute and possessed with intent to distribute heroin from September of 2018 through October of 2019. In 2018 the Federal Bureau of Investigation began investigating a heroin trafficking organization operating throughout the greater Pittsburgh area of which McCarthy was a member. Beginning in February of 2019 and continuing through September of 2019, the FBI initiated a Title III wiretap investigation into the organization. McCarthy was intercepted communicating with his codefendants about acquiring quantities of heroin, prices of heroin, and the purity of the heroin. Through extensive physical and electronic surveillance, McCarthy was observed meeting with his codefendants to conduct heroin transactions. Judge Stickman referenced the seriousness of the offense as well as McCarthy’s criminal history.
Assistant United States Attorney Mark V. Gurzo prosecuted this case on behalf of the government.
Acting United States Attorney Kaufman commended the Federal Bureau of Investigation, Homeland Security Investigations, the Allegheny County Police Department, the Stowe Township Police Department, the Pittsburgh Bureau of Police, the Office of the Attorney General, the Allegheny County Sheriff's Office, the North Versailles Police Department, the Allegheny County Port Authority Police Department, the Munhall Police Department, and the Pennsylvania State Police for the investigation leading to the successful prosecution of McCarthy.
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.
Pittsburgh Man Admits Distributing Videos of Children Engaged in Sex with AdultsRead the Press Release
PITTSBURGH, PA - A resident of Pittsburgh, PA pleaded guilty in federal court to a charge of distribution of material depicting the sexual exploitation of children, Acting United States Attorney Stephen R. Kaufman announced today.
George Goodwin, 49, pleaded guilty to one count before United States District Judge Nicholas Ranjan.
In connection with the guilty plea, the court was advised that on March 8, 2020, Goodwin was engaged in an internet chat when he distributed two videos of prepubescent children engaged in sexual acts with adults. The Court was also advised that the investigation of Goodwin involved multiple search warrants and the discovery of a large collection of child pornography, including videos that depicted sadistic and masochistic abuse of prepubescent children.
Judge Ranjan scheduled sentencing for Sept. 7, 2021. The law provides for a total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, the court released Goodwin on home detention and required a $50,000 bond.
Assistant United States Attorney Lee J. Karl is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Goodwin.
Pharr man pleads guilty to smuggling multiple drugs in cardboard boxRead the Press Release
LAREDO, Texas – A 46-year-old Pharr man has entered a guilty plea to conspiracy to possess with intent to distribute 1.42 kilograms of meth, announced Acting U.S. Attorney Jennifer B. Lowery.
On Feb. 8, Eduardo Maldonado applied for entry into the United States from Mexico at the Lincoln-Juarez bridge port of entry in Laredo as a passenger on a commercial bus. During a routine X-ray examination of luggage and other items on the bus, authorities noted anomalies in a cardboard box belonging to Maldonado. A K-9 unit also positively alerted to the presence of contraband. A subsequent physical search revealed nine packages which tested positive for cocaine, meth and heroin.
Law enforcement weighed the narcotics and determined the packages contained 1.42, 2.04 and 4.16 kilograms of meth, heroin and cocaine, respectively. The collective street value of the drugs was approximately $162,820.
Maldonado admitted he was at a bar in Mexico with his girlfriend when he met a man who offered him $3,000 to transport the box to Birmingham, Alabama. He was to give it to someone waiting for him at the bus stop. The man paid for Maldonado’s bus ticket.
Maldonado claimed he did not know what was in the box and did not check, but admitted he knew “something” was in it based on the amount of money he was to be paid. He further acknowledged he did not ask the man many questions about the box.
U.S. District Judge Marina Garcia Marmolejo accepted the plea and set sentencing for Aug. 2. At that time, Maldonado faces up to life in prison and a possible $10 million maximum fine. He has been and will remain in custody pending that hearing.
Homeland Security Investigations conducted the investigation with the assistance of Customs and Border Protection. Assistant U.S. Attorney Paul A. Harrison is prosecuting the case.
Pharmaceutical Manufacturer Agrees to Pay $12.6 Million to Resolve Allegations it Provided Kickbacks Through Donations to a Third-Party CharityRead the Press Release
PHILADELPHIA—Acting United States Attorney Jennifer Arbittier Williams announced that Incyte Corporation, headquartered in Delaware, has agreed to pay $12.6 million to resolve allegations that it violated the False Claims Act by using a foundation as a conduit to pay the copays of Medicare and TRICARE patients taking Incyte’s drug Jakafi. TRICARE is the health care program for uniformed service members, retirees, and their families.
When a Medicare or TRICARE beneficiary obtains a prescription drug covered by a federal health care plan, the beneficiary may be required to make a partial payment, in the form of a copayment, coinsurance, or a deductible (collectively “copays”). Congress included copays in the programs, in part, to serve as a check on health care costs, including the prices that pharmaceutical manufacturers can demand for their drugs.
Under the Anti-Kickback Statute, a pharmaceutical company cannot offer or pay, directly or indirectly, any remuneration—which includes money or any other thing of value—to induce Medicare or TRICARE patients to purchase the company’s drugs. This prohibition includes the payment of patients’ copay obligations. Payment of those prescriptions in violation of the Anti-Kickback Statute leads to submission of false claims to Medicare and TRICARE and violations of the False Claims Act.
Incyte sells Jakafi, a medication approved to treat myelofibrosis in 2011 and approved to treat other disorders after 2014. Incyte allegedly was the sole donor to a fund that was opened by a nonprofit foundation in November 2011 to assist only myleofibrosis patients. After the fund opened, the government alleges that from November 2011 through December 2014, Incyte used its influence as the sole donor of the fund to have the foundation pay the copays of Medicare and TRICARE patients taking Jakafi that did not have myelofibrosis, and thus were not eligible for assistance from the fund. Incyte managers allegedly pressured the foundation, through phone calls and emails, to provide economic assistance to these ineligible patients, and Incyte’s contractor helped ineligible patients to complete their applications that were submitted to the fund for assistance. The government alleges that through this conduct, Incyte caused false claims for Jakafi to be submitted to Medicare and TRICARE.
“Pharmaceutical companies cannot skirt the anti-kickback rules by disguising their inducements to federally-insured patients as charitable donations,” said Acting United States Attorney Jennifer Arbittier Williams. “This resolution shows our office’s continuing commitment to holding drug companies accountable for this conduct.”
“Protecting TRICARE is a top priority for the Defense Criminal Investigative Service (DCIS),” stated Special Agent in Charge Patrick J. Hegarty, DCIS Northeast Field Office. “Incyte’s false claims for ineligible patients compromised the integrity of the TRICARE program. Today’s settlement is the result of a joint effort with the U.S. Attorney's Office, DOJ Civil Frauds, and HHS-OIG, and it demonstrates our ongoing commitment to work with our law enforcement partners to investigate those who engage in health care fraud.”
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Justin Dillon, a former compliance executive at Incyte. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned U.S. ex rel. Dillon v. Incyte Corp., No. 2:18 -cv-2642 (E.D. Pa.) and was filed by Brian McCormick of Ross Feller Casey LLP in Philadelphia, PA.
“We thank the relator and relator’s counsel for their contributions to this case. Without information from citizens like the relator, detecting fraud and conserving government program funds would be much more difficult,” said Acting U.S. Attorney Williams.
The investigation was conducted by the Department of Defense Office of Inspector General and the U.S. Department of Health and Human Services Office of Inspector General. The investigation and resolution obtained in this action were handled by Assistant United States Attorneys Paul J. Koob and Matthew E.K. Howatt, Deputy Chief Charlene Keller Fullmer, and Auditor George Niedzwicki. This matter was handled in conjunction with the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section’s Senior Trial Counsel Jennifer Cihon.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Pennsylvania Man Charged with Conspiring to Distribute 430 Kilograms of KhatRead the Press Release
NEWARK, N.J. – A Pennsylvania man was charged with conspiring to distribute 430 kilograms of khat imported into Newark International Airport, Acting U.S. Attorney Rachael A. Honig announced today.
Azeez Adebari, 46, of Harrisburg, Pennsylvania, is charged by complaint with one count of conspiring to distribute and to possess with intent to distribute a quantity of a mixture containing cathinone and cathine. He made his initial appearance by videoconference before U.S. Magistrate Judge Edward S. Kiel on May 3, 2021, and was detained.
According to documents filed in this case and statements made in court:
On April 21, 2021, U.S. Customs and Border Protection (CBP) officers identified a freight container suspected of containing khat that had arrived by air at Newark International Airport. Khat is a flowering shrub that is abused for its stimulant-like effects and has no accepted medical use in the United States. Khat contains two active ingredients that are controlled substances: cathinone, a Schedule I controlled substance, and cathine, a Schedule II controlled substance.
CBP officers determined that the shipment contained approximately 430 kilograms of khat. The shipping manifest and other customs documentation identified the contents of the shipment as clothing, and ground melon and pepper, among other things. On May 3, 2021, Adebari, who was listed as the consignee on the shipment, arrived at Newark Airport to pick up the khat shipment and was arrested.
The count with which the defendant is charged carries a maximum potential penalty of 20 years in prison and a maximum fine of $1 million.
Acting U.S. Attorney Honig credited special agents of Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina in Newark, and officers of CBP, under the direction of Marty Raybon, Acting Director of Field Operations, New York Field Office, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Angelica M. Sinopole of the Organized Crime & Gangs Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Pawtucket Man Facing 5-40 Years in Prison for Trafficking CocaineRead the Press Release
PROVIDENCE – A Pawtucket man who sold a kilogram of cocaine while under law enforcement surveillance faces between 5 and 40 years in federal prison, having pleaded guilty today to conspiracy and distributing 500 grams or more of cocaine.
Appearing before U.S. District Court Mary S. McElroy, Modesto Mercado, 37, admitted that on February 12, 2020, he met by Facetime and later in person at a Providence restaurant to arrange with an individual to sell him a kilogram of cocaine for $30,000. During the second meeting, Mercado told the buyer that the price for the kilogram was actually $31,500, with the additional $1,500 going to Mercado and a person assisting him to arrange the purchase. At the second meeting, Mercado told the buyer he could supply as many kilograms of cocaine as the buyer wanted to purchase.
According to information presented to the court, later that evening Mercado met with the buyer and another individual and sold him a kilogram of cocaine. After the buyer claimed he could not pay more than the original agreed upon price of $30,000, Mercado indicated he wanted to remove and keep 150 grams of pure cocaine from the kilogram and replace it with cocaine that had been mixed with cutting agents, keeping the 150 grams for himself.
Appearing today before U.S. District Court Judge Mary S. McElroy, Mercado pleaded guilty to conspiracy with the intent to distribute 500 grams or more of cocaine and distribution of 500 grams or more of cocaine, announced Acting United States Attorney Richard B. Myrus and Homeland Security Investigations Acting Special Agent in Charge William S. Walker.
At sentencing on July 26, 2021, Mercado faces statutory penalties of between five and forty years in federal prison to be followed by between four years and lifetime federal supervised release.
The case is being prosecuted by Assistant U.S. Attorney Ronald F. Gendron.
The matter was investigated by Homeland Security Investigations.
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Passaic County Man Sentenced to 21 Months in Prison for Assault with a Dangerous Weapon at Delaware Water GapRead the Press Release
TRENTON, N.J. – A Passaic County, New Jersey, man was sentenced today to 21 months in prison for assaulting with a dangerous weapon two people who were swimming in the Delaware River, Acting U.S. Attorney Rachael A. Honig announced.
Jeffrey A. Mulcahy, 59, of Wayne previously pleaded guilty by videoconference before U.S. District Judge Michael A. Shipp to an information charging him with one count of assault with a dangerous weapon with intent to do bodily harm. Judge Shipp imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
On Sept. 2, 2019, two individuals (Victim 1 and Victim 2) were swimming in the Delaware River in the Kittatinny Point area of the Delaware Water Gap in Warren County, New Jersey. Mulcahy approached them and began speaking to them about fishing. After a few minutes, Mulcahy departed the area, returning approximately 15 minutes later, holding a can of beer. He continued to talk to Victim 1 and Victim 2 about fishing, however, Mulcahy appeared agitated. Victim 1 and Victim 2 had gotten out of the river and were standing near the riverbed. Mulcahy removed what appeared to be a handgun from his waistband and pointed it at Victim 2’s head. While pointing the gun at Victim 2, Mulcahy ordered Victims 1 and 2 to the ground. Mulcahy then pointed the gun at Victim 1 and stated that he was going to kill Victim 1 if Victim 1 did not listen to him. Mulcahy struck Victim 1 in the head and neck area with the handgun. Mulcahy then began pulling rope out of his pocket and attempted to get Victim 1’s hands behind Victim 1’s back. Victim 1 resisted and was able to take Mulcahy to the ground, where the two began a physical struggle. Mulcahy’s handgun fell to the ground and Victim 2 recovered it and left to contact law enforcement. After the brief physical altercation, Victim 1 ran off to a nearby picnic area to locate Victim 2. Mulcahy departed the area and was later apprehended by law enforcement officers in Hackettstown, New Jersey. Subsequent investigation of the handgun that Victim 2 recovered from Mulcahy revealed that it was a pellet gun.
In addition to the prison term, Judge Shipp sentenced Mulcahy to three years of supervised release and fined him $2,000.
Acting U.S. Attorney Honig credited park rangers of the U.S. National Park Service, under the direction of Chief Ranger Eric Lisnik, the Hackettstown Police Department, under the direction of Chief James A. Macaulay, and the N.J. State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Nicholas P. Grippo, Deputy Chief of the Criminal Division in Newark.
Passaic County Couple Sentenced for Roles in $4.5 Million Food Stamps Fraud SchemeRead the Press Release
NEWARK N.J. – A Passaic County, New Jersey, couple were sentenced to prison today for engaging in a food stamps fraud scheme, Acting U.S. Attorney Rachael A. Honig announced.
Ibrahim Zughbi, 67, of Wayne, New Jersey, was sentenced to 41 months in prison and his wife, Miriam Zughbi, 63, also of Wayne, was sentenced to 24 months in prison. Ibrahim Zughbi previously pleaded guilty before U.S. District Judge Peter G. Sheridan to an information charging him with Supplemental Nutrition Assistance Program (SNAP) benefit fraud and money laundering. Miriam Zughbi previously pleaded guilty to an information charging her with conspiracy to defraud the United States through SNAP benefit fraud. U.S. District Judge Anne E. Thompson imposed the sentences today in Trenton federal court.
According to documents filed in these cases and statements made in court:
From January 2014 to January 2018, the defendants owned and worked at Jamaica Meat Market, a medium-size grocery store in Paterson, New Jersey, that was authorized to accept benefits provided by SNAP, formerly known as the Food Stamp Program. The program is administered by the U.S. Department of Agriculture. Retail food stores approved for participation in SNAP may sell food in exchange for SNAP benefits. They may not exchange SNAP benefits for cash. While the Zughbis ran the store, another individual owned the store and was the person registered with SNAP. From between 2014 and 2018, through unlawfully exchanging SNAP benefits for cash, Ibrahim and Miriam Zughbi defrauded SNAP more than $4.5 million.
Every SNAP recipient receives an Electronic Benefit Transfer (EBT) card, similar to a debit card, with which to make purchases. Every retailer authorized to accept SNAP benefits has an EBT terminal. Food purchases are made by swiping the card at the terminal. After the customer enters a Personal Identification Number (PIN), the EBT terminal verifies the PIN, determines whether the customer’s account balance is sufficient to cover the proposed transaction and informs the retailer whether the transaction should be authorized or denied. The amount of the purchase is deducted electronically from the SNAP benefits reserved for the customer and the amount is credited to the retailer’s designated bank account. In addition to the high volume of SNAP benefits redemptions for Jamaica Meat Market indicating fraud, law enforcement agents verified the fraudulent exchange of SNAP benefits for cash through the use of a confidential source who, at the direction of law enforcement, engaged in 16 “purchases” at Jamaica Meat Market where both defendants exchanged money for SNAP benefits.
Ibrahim Zughbi had previously participated in SNAP when he was the owner of Neighborhood Supermarket, a grocery store that operated out of the same location as the Jamaica Meat Market. In March 2011, the USDA had permanently disqualified Ibrahim Zughbi from SNAP when Zughbi and the Neighborhood Supermarket were administratively charged with SNAP violations. Another individual took over the business, changed its name to Jamaica Meat Market, and certified in writing to the USDA that Ibrahim Zughbi would have nothing to do with the business or its participation in the program. Ibrahim Zughbi continued to run Jamaica Meat Market, and he and his wife continued to exchange cash for SNAP benefits.
To conceal the proceeds of the SNAP benefit fraud, from January 2014 to January 2018, Ibrahim Zughbi wrote inflated checks from the Jamaica Meat Market account containing the SNAP fraud proceeds to a supplier, and then received funds back in cash from the supplier. Zughbi also issued checks to family members with no apparent connection to Jamaica Meat Market.
In addition to the prison term, Judge Thompson sentenced Ibrahim Zughbi and Miriam Zughbi to three years of supervised release and ordered them to pay restitution of $4.66 million.
Acting U.S. Attorney Honig credited special agents of the U.S. Department of Agriculture –Office of Inspector General, under the direction of Special Agent in Charge Bethanne M. Dinkins, and Homeland Security Investigations (HSI), Newark, under the direction of Special Agent in Charge Jason J. Molina, with the investigation leading to today’s sentencings. She also thanked the Passaic County Prosecutor’s Office, the Wayne Township Police Department and the Paterson Police Department for their roles in the investigation.
The government is represented by Assistant U.S. Attorney Sean M. Sherman of the Opioid Abuse Prevention & Enforcement in Newark.
Owner of Currency Exchange House Pleads Guilty to Intentionally Violating Anti-Money Laundering LawsRead the Press Release
Assistant U.S. Attorneys Daniel C. Silva and Michael A. Deshong (619) 546-9713
NEWS RELEASE SUMMARY – May 4, 2021
SAN DIEGO – Marco A. Gonzalez, a local business owner of MRK Casa de Cambio, pleaded guilty in federal court today to violating laws and regulations designed to prevent money laundering by customers of his currency exchange business.
Special Agents from Homeland Security Investigations (“HSI”) led the investigation into millions of dollars of transactions at MRK Casa de Cambio from approximately 2015 to 2020.
As admitted in the plea agreement entered today before U.S. Magistrate Judge William V. Gallo, Gonzalez knew of, and intentionally failed to adhere to, the anti-money laundering (“AML”) laws and regulations imposed on currency exchange businesses like MRK Casa de Cambio. As with any U.S. financial institution, casas de cambio, currency exchanges houses, and other “money services businesses” must comply with the United States Bank Secrecy Act, found at Title 31, United States Code and Title 31, Code of Federal Regulations, which requires these businesses to assist U.S. government agencies in detecting and preventing money laundering and other financial crimes.
Chief among the violations to which Gonzalez admitted in his plea agreement were: failing to disclose MRK Casa de Cambio’s Mexico-based offices and branches with the Secretary of the Treasury; reporting false and materially incomplete information in connection with the registration of MRK Casa de Cambio; filing false or materially misleading (if filed at all) reports of currency transactions exceeding $10,000 and reports of suspicious activity.
Acting U.S. Attorney Randy S. Grossman said, “The gatekeepers of the United States financial system must be steadfast in the fight against international money laundering. The U.S. Attorney’s Office will continue to demand the highest standards of anti-money laundering compliance by all financial institutions—whether a global financial conglomerate, or a single-office currency exchange house. I commend the diligence of the Homeland Security Investigations special agents for their commitment to prosecuting these crimes.” Grossman also praised prosecutors Daniel Silva and Michael A. Deshong for their excellent work on this case.
As a result of these intentional failures, among others, Gonzalez admitted in his plea agreement that he caused MRK Casa de Cambio to engage in cash transactions without applying adequate scrutiny to the source, purpose, ownership, or destination of the funds, or otherwise whether they were relevant to a possible violation of law or regulation. In doing so, Gonzalez acknowledged that he failed to adhere to best practices for all financial institutions; but, more specifically for a money services business like MRK Casa De Cambio, Gonzalez failed to develop and maintain an AML program that was commensurate with the risks posed by the location, size, nature, and volume of the financial services provided by his money services business.
Cardell T. Morant, Special Agent in Charge for Homeland Security Investigations, San Diego, also stated, “Communities along the Southwest border are particularly vulnerable to money laundering, and HSI is committed to protecting our communities by investigating the financial networks and third-party money launderers that facilitate introduction of the illicit proceeds into the U.S. financial system. This guilty plea, by the owner of a money service business in San Ysidro, sends a strong signal to financial institutions and especially money service businesses to remain vigilant in their anti-money laundering duties.”
Special Agent in Charge Morant further noted the assistance of local, regional, and federal partners on this investigation, including: San Diego County Sheriff’s Department, U.S. Customs and Border Protection, IRS Criminal Investigation, and Drug Enforcement Administration.
Sentencing is scheduled to occur on August 2, 2021 before U.S. District Judge Todd W. Robinson.
DEFENDANT Case Number 21-CR-1319-TWR
Marco A. Gonzalez San Diego, CA Age: 47
SUMMARY OF CHARGES*
Willful Violations of the Bank Secrecy Act – Title 31, U.S.C., Sections 5318 / 5322
Maximum penalty: Five years in prison, forfeiture, and $500,000 fine
AGENCIES
Homeland Security Investigations
*The charges and allegations contained in an indictment or information are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Owner of A Consumer Products Testing Company Pleads Guilty to $46 Million Fraud Scheme Involving Fabricated Test ResultsRead the Press Release
Audrey Strauss, United States Attorney for the Southern District of New York, announced that GABRIEL LETIZIA Jr., the owner and executive director of AMA Laboratories, Inc. (“AMA”), a consumer products testing company in New City, pled guilty today to defrauding customers by reporting laboratory test results for panelist testing that was not fully performed. LETIZIA pled guilty before United States Magistrate Judge Paul E. Davison. Former AMA employees David Winne, Mayya Tatsene, Patrycja Wojtowicz, and Kaitlyn Gold previously pled guilty in connection with their respective roles in the scheme.
U.S. Attorney Audrey Strauss said: “As he has now admitted, Gabriel Letizia schemed for decades to defraud customers of his laboratory, and caused sunscreens and other consumer products to be sold and marketed to consumers on the basis of false laboratory testing reports. Letizia’s guilty plea underscores that my Office will continue to work with our law enforcement partners to investigate and prosecute fraud and endangerment in the consumer products testing industry.”
According to the allegations contained in the Second Superseding Information, publicly available information, court filings, and statements made during the plea proceedings:
LETIZIA is the owner and executive director of AMA, a consumer products testing company in Rockland County, New York. David Winne served as AMA’s technical director, Mayya Tatsene served as AMA’s clinical laboratory director, Patrycja Wojtowicz served as AMA’s associate director of clinical studies, and Kaitlyn Gold served as AMA’s supervising laboratory technician. AMA tested the safety and efficacy of cosmetics, sunscreens and other products on specified numbers of volunteer panelists for consumer products companies.
From 1987 through April 2017, LETIZIA and his co-conspirators defrauded AMA’s customers of more than $46 million by testing products on materially lower numbers of panelists than the numbers specified and paid for by AMA’s customers. LETIZIA, and AMA employees acting under his direction, sent the customers fraudulent reports, which falsely represented that AMA had tested the products on the number of panelists specified by the customers, causing the introduction of misbranded products into interstate commerce.
* * *
LETIZIA, 71, of New City, New York, pled guilty to one count of conspiracy to commit wire fraud, which carries a maximum penalty of five years in prison; and two counts of causing a misbranded drug to be introduced into interstate commerce, each of which carries a maximum penalty of one year in prison.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as the sentence of LETIZIA will be determined by the Court.
LETIZIA will be sentenced by U.S. District Judge Kenneth M. Karas on September 14, 2021, at 2:00 p.m.
Ms. Strauss praised the outstanding work of the Federal Bureau of Investigation, the U.S. Food and Drug Administration, Office of Criminal Investigations, and the Rockland County District Attorney’s Office.
This case is being prosecuted by the Office’s White Plains Division. Assistant U.S. Attorneys Jeffrey C. Coffman, James McMahon, and Olga I. Zverovich are in charge of the prosecution
New York Man Sentenced for Crack Cocaine TraffickingRead the Press Release
BANGOR, Maine: A Bronx, New York man was sentenced today in federal court for possessing cocaine base, aka crack cocaine, with intent to distribute, Acting U.S. Attorney Donald E. Clark announced.
U.S. District Judge Lance E. Walker sentenced Christopher Martinez, 31, to 85 months in prison and four years of supervised release. Martinez pleaded guilty on November 20, 2020.
According to court records, on May 2, 2020, law enforcement executed a search warrant at a residence in Cutler, Maine. During the search, law enforcement officers recovered cocaine base, heroin, a firearm and more than $4,000. Martinez and others were engaged in the distribution of controlled substances from the residence.
The Maine Drug Enforcement Agency, the FBI, the U.S. Drug Enforcement Administration, the Hancock and Washington County Sheriff’s Offices, and the Maine State Police investigated the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Milton Woman Pleads Guilty to Tax and Drug Charges Arising from Multimillion-Dollar Marijuana EnterpriseRead the Press Release
BOSTON – A Milton woman pleaded guilty today to her role in a marijuana delivery service.
Deana Martin, 53, of Milton, pleaded guilty to one count of tax evasion, one count of conspiracy to distribute marijuana, one count of possession with intent to distribute marijuana and three counts of money laundering. U.S. District Judge Timothy S. Hillman scheduled sentencing for Sept. 1, 2021.
Martin and co-defendant Tatiana Fridkes were indicted in May 2019 in connection with their management of Northern Herb, a marijuana delivery service that operated in Massachusetts from 2015 to 2018. In September 2020, Fridkes pleaded guilty to conspiracy to distribute marijuana and is scheduled to be sentenced on June 3, 2021.
Martin owned and managed Northern Herb, which operated a website offering marijuana products for sale including raw marijuana, pre-rolled marijuana cigarettes and marijuana edibles. While Northern Herb purported to provide medical marijuana, it did not require a customer to provide proof of a medical marijuana card. Furthermore, Northern Herb delivered marijuana to unattended locations (such as a front door or hallway) where unknown third parties could have accessed it. Northern Herb used locations in Canton, Milton, Foxborough and Hyde Park to store and distribute marijuana, and employed at least 25 workers.
From May 2016 through July 2018, Northern Herb’s revenue exceeded $14 million. Northern Herb did not withhold or pay taxes on its millions of dollars in marijuana sales and did not pay taxes on its profits. Much of the cash collected by Northern Herb from customers was used to pay its suppliers and its workers. In paying cash wages, Northern Herb did not withhold, remit, or pay any payroll or income taxes. Northern Herb did not report worker wages to the IRS via Form 941, nor did it issue W-2s or 1099s to its workers.
On the drug counts, Martin faces a sentence of up to 20 years in prison, at least three years and up to a lifetime of supervised release and a fine of up to $1 million. The charge of money laundering provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $500,000 or twice the value of the money laundered. The charge of tax evasion provides for a sentence of up to five years in prison, up to three years of supervised release and a fine of up to $100,000. Martin also faces restitution and forfeiture. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division; and Ramsey E. Covington, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. The United States Postal Inspection Service also provided valuable assistance with this investigation. Assistant U.S. Attorneys Bill Abely and John Mulcahy of Lelling’s Criminal Division and Assistant Chief Kathleen Barry of the Justice Department’s Tax Division are prosecuting the case.
Mexican National Sentenced for Federal Firearms ViolationsRead the Press Release
TYLER, Texas – A Mexican National has been sentenced to federal prison for firearms violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Ramiro Ortiz Perez, 35, pleaded guilty on Jan. 7, 2021, to being a prohibited person in possession of a firearm and was sentenced to 30 months in federal prison today by U.S. District Judge Jeremy Kernodle.
“This investigation by Homeland Security Investigations is a reminder that possession of firearms by those not legally permitted to possess them, especially in connection with illegal narcotics trafficking, is a direct threat to the safety of our communities,” said Acting U.S. Attorney Nicholas J. Ganjei. “Our office, together with HSI, will continue to vigorously uphold the law.”
According to information presented in court, on July 3, 2020, Ortiz Perez possessed a pistol in Tyler. At the time he possessed the pistol, he was illegally and unlawfully in the United States, having entered, and remained in, the United States without proper authority. Ortiz Perez knew that he was in the United States illegally and admitted that he possessed the pistol in furtherance of his drug trafficking activities.
This case was prosecuted as part of the Project Safe Neighborhoods Initiative. Project Safe Neighborhoods is aimed at reducing gun and gang violence; deterring illegal possession of guns, ammunition, and body armor; and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state, and local law enforcement agencies.
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Mexican Citizen Sentenced to 21 Months for Illegally Reentering US & Failing to Register as Sex OffenderRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, Acting United States Attorney for the Western District of Wisconsin, announced that Jose David Saldana-Ramirez, 38, a citizen of Mexico, was sentenced today by U.S. District Judge William M. Conley to 21 months in federal prison for illegally reentering the United States and failing to register as a sex offender. Saldana-Ramirez pleaded guilty to these charges on February 4, 2021.
On July 20, 2020, Saldana-Ramirez was stopped for a traffic violation in Columbia County, Wisconsin. Law enforcement officers later learned that he had been convicted of sexual assault of a child in 2008 in Texas, and thus, was required to register as a sex offender. He failed to do so upon his illegal reentry into the United States.
The charges against Saldana-Ramirez were the result of an investigation conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the U.S. Marshals Service. The prosecution of the case has been handled by Assistant U.S. Attorney Julie Pfluger.
Massachusetts Woman Pleads Guilty to Tax and Drug Charges Arising from Multimillion-Dollar Marijuana EnterpriseRead the Press Release
A Massachusetts woman pleaded guilty today to tax evasion, conspiracy to distribute marijuana, possession of marijuana with intent to distribute, and money laundering.
According to court documents and the criminal complaint, Deana Martin, 53, of Milton, owned and managed Northern Herb, an illegal marijuana delivery service that operated in Massachusetts from 2015 to 2018. While Northern Herb purported to sell medical marijuana, it did not require a customer to provide proof of a medical marijuana card. Furthermore, it is alleged that Northern Herb would deliver marijuana to unattended locations (such as a front door or hallway) where unknown third parties might have access to it. Northern Herb used locations in Canton, Milton, Foxborough, and Hyde Park to store and distribute marijuana, and employed at least 25 workers.
From May 2016 through July 2018, Northern Herb had total revenue exceeding $14 million. Northern Herb did not pay taxes on its profits nor withhold taxes due from its employees’ wages. Martin paid many of the employees in cash and did not collect or pay the IRS withholdings that were due nor file with the IRS required reports documenting the payments made to Northern Herb’s employees and independent contractors.
U.S. District Judge Timothy S. Hillman today accepted Martin’s guilty plea but reserved acceptance of the plea agreement that, if accepted, would guide the sentence to be imposed. Martin is scheduled to be sentenced on Sept. 1, 2021.
On the drug counts, Martin faces a maximum sentence of up to 20 years of prison and a maximum fine of $1,000,000. On the money laundering counts, Martin faces a maximum sentence of 20 years in prison and a maximum fine of $500,000 or twice the value of the money laundered. On the tax count, Martin faces a maximum sentence of five years in prison and a maximum fine of $100,000. Martin also faces restitution and forfeiture. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division; Acting U.S. Attorney Nathaniel R. Mendell of the District of Massachusetts; Special Agent in Charge Brian D. Boyle of the Drug Enforcement Administration, New England Division; and Special Agent in Charge Ramsey Covington of the IRS-Criminal Investigations in Boston made the announcement today. The U.S. Postal Inspection Service also provided valuable assistance with this investigation.
Assistant U.S. Attorneys Bill Abely and John Mulcahy of the U.S. Attorney’s Office for the District of Massachusetts and Assistant Chief Kathleen Barry of the Tax Division prosecuted the case.
Martinsburg man sentenced for role in drug trafficking operationRead the Press Release
MARTINSBURG, WEST VIRGINIA – Michael Pierre Christian, of Martinsburg West Virginia, was sentenced today to 71 months of incarceration for his role in a drug distribution operation, Acting U.S. Attorney Randolph J. Bernard announced.
Christian, 44, pled guilty to one count of “Aiding and Abetting Possession with Intent to Distribute 28 Grams or More of Cocaine Base” in January 2021. Christian admitted to working with another to distribute cocaine base in April 2020 in Berkeley and Jefferson Counties.Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The FBI; the Department of Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Marshals Service; the West Virginia State Police; the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative; and the West Virginia Air National Guard investigated.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Chief U.S. District Judge Gina M. Groh presided.
Find the related case here: https://www.justice.gov/usao-ndwv/pr/west-virginia-and-virginia-residents-indicted-drug-trafficking-operation-berkeley-and
Incyte Corporation to Pay $12.6 Million to Resolve False Claims Act Allegations for Paying KickbacksRead the Press Release
A pharmaceutical company headquartered in Delaware has agreed to pay $12.6 million to resolve allegations that it violated the False Claims Act by paying kickbacks.
Today’s settlement resolves allegations that, from November 2011 through December 2014, Incyte Corporation purportedly used an independent foundation as a conduit to pay the copays of certain federal beneficiaries taking Incyte’s drug Jakafi, which was approved to treat myleofibrosis in 2011. Specifically, Incyte was the sole donor to a fund that was opened in November 2011 to assist only myleofibrosis patients. After the fund opened, the government alleges that Incyte used the fund to pay the copays of federal beneficiaries taking Jakafi who were ineligible for assistance from the fund because they did not have myleofibrosis. Incyte managers pressured the foundation, through phone calls and emails, to provide economic assistance to these ineligible patients, and Incyte’s contractor helped ineligible patients to complete applications submitted to the fund for assistance. The government alleges that through this conduct, Incyte caused false claims for Jakafi to be submitted to Medicare and TRICARE.
“Drug companies undermine the integrity of federal health care programs and contribute to rising drug costs when they illegally use foundations to cover patients’ costs for their own drugs,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “This resolution reflects the government’s continuing commitment to hold pharmaceutical companies accountable for this conduct.”
“Pharmaceutical companies cannot skirt the anti-kickback rules by disguising their inducements to federally-insured patients as charitable donations,” said Acting U.S. Attorney Jennifer Arbittier Williams for the Eastern District of Pennseylvania. “This resolution shows our office’s continuing commitment to holding drug companies accountable for this conduct.”
“Protecting TRICARE, the health care system for U.S. military members and their dependents, is a top priority for the Defense Criminal Investigative Service (DCIS),” said Special Agent in Charge Patrick J. Hegarty of the DCIS Northeast Field Office. “Submitting false claims for ineligible patients compromises the integrity of the TRICARE program. Today's settlement is the result of a joint effort with the U.S. Attorney’s Office, DOJ Civil Frauds, and HHS-OIG, and it demonstrates our ongoing commitment to work with our law enforcement partners to investigate those who engage in health care fraud.”
When a beneficiary obtains a prescription drug covered by Medicare or TRICARE, the beneficiary may be required to make a partial payment, which may take the form of a copayment, coinsurance or a deductible (collectively “copays”). Congress included copay requirements in these federal programs, in part, to serve as a check on health care costs, including the prices that pharmaceutical manufacturers can demand for their drugs.
Under the Anti-Kickback Statute, a pharmaceutical company is prohibited from offering or paying, directly or indirectly, any remuneration — which includes money or any other thing of value — to induce federal beneficiaries to purchase the company’s drugs. This prohibition extends to the payment of patients’ copay obligations.
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Justin Dillon, a former compliance executive at Incyte. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned U.S. ex rel. Dillon v. Incyte Corp., No. 2:18 -cv-2642 (E.D. Pa.). Dillon will receive approximately $3.59 million of the recovery.
The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Eastern District of Pennsylvania, with assistance from the U.S. Department of Health and Human Services Office of Inspector General, the Department of Defense Office of Inspector General, and the Office of Personnel Management Office of the Inspector General.
The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The matter was investigated by Senior Trial Counsel Jennifer Cihon of the Civil Division’s Commercial Litigation Branch, Fraud Section, and Assistant U.S. Attorneys Paul Koob and Matthew Howatt and Auditor George Niedzwicki of the U.S. Attorney’s Office for the Eastern District of Pennsylvania.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Houston woman admits to smuggling liquid meth in gas tankRead the Press Release
LAREDO, Texas – A 24-year-old Houston woman has entered a guilty plea to conspiring to import $300,000 of meth into the country, announced Acting U.S. Attorney Jennifer B. Lowery.
On March 6, Yatziri Barboza arrived at the Juarez–Lincoln International Bridge in Laredo driving a Volkswagen Touareg. Law enforcement conducted an X-ray inspection of her vehicle and noticed an anomaly in the gas tank.
They removed the gas tank and found a compartment with 57.46 kilograms of meth in liquid form.
The narcotics have an estimated street value of approximately $300,000.
U.S. District Judge Marina Garcia Marmolejo will set sentencing for a later date. At that time, Barboza faces a minimum of 10 years and up to life in prison. She was taken into custody pending that hearing.
Homeland Security Investigations conducted the investigation with the assistance of Customs and Border Protection. Assistant U.S. Attorney David Fawcett is prosecuting the case.