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26 May 2021
Leader of Methamphetamine Drug Trafficking Conspiracy Sentenced to 15 Years in PrisonRead the Press Release
LAS VEGAS, Nev. – The leader and organizer of a drug trafficking conspiracy was sentenced on Tuesday to 15 years in prison for selling nearly 36 pounds of methamphetamine during the conspiracy.
According to court documents, Vang Tran, 53, of Los Angeles, Calif., also known as “Train,” conspired with Hieugod Tran, also known as “Rabbit,” Quang Duong Tao, David Roeum, and George Suarez to distribute approximately 36 pounds of methamphetamine from December 2017 to November 2018. Tran, who was the leader and organizer of the conspiracy, negotiated the drug sales that occurred at hotels and casinos in Las Vegas.
Tran pleaded guilty in March 2020, to one count of conspiracy to distribute a controlled substance, two counts of distribution of a controlled substance, and one count of possession of a controlled substance with intent to distribute. In addition to the prison term, U.S. District Judge Richard F. Boulware sentenced Tran to 10 years of supervised release.
Co-defendants Hieugod Tran, Tao, Roeum, and Suarez all previously pleaded guilty to their roles in the conspiracy. Hieugod Tran and Roeum were each sentenced to 10 years in prison; Suarez was sentenced to eight years and two months in prison; and Tao has not been sentenced yet.
Acting U.S. Attorney Christopher Chiou for the District of Nevada and Special Agent in Charge Aaron C. Rouse of the FBI made the announcement.
This case was investigated by the FBI, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Nevada Gaming Control Board. Assistant U.S. Attorney Allison Reese prosecuted the case.
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Joint Press Statement by U.S. Attorney General Merrick Garland and European Commissioner for Justice Didier ReyndersRead the Press Release
During their introductory conversation, the leaders emphasized their shared commitment to strengthening transatlantic cooperation on law enforcement matters and addressing common threats, including those posed by international terrorism. Attorney General Garland and Commissioner Reynders also discussed the importance of access to justice, ensuring resilient justice systems for the post-pandemic economic recovery, upholding the rule of law, and protecting citizens’ rights.
Jamestown Man Arrested While on Parole Going to Prison on Crack Cocaine ConvictionRead 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 Shaquelle Coleman, 28, of Jamestown, NY, who was convicted of possession with intent to distribute crack cocaine, was sentenced to serve 30 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Meghan E. Leydecker, who handled the case, stated that on January 23, 2019, the defendant was arrested with another absconding parolee, Earl Stone Jr., for violating terms of parole. Coleman and Stone were located in the upstairs bedroom of a residence on West 7th Street in Jamestown. During a search of the two defendants, law enforcement officers recovered $1,400 in U.S. Currency. They also recovered a quantity of suspected crack cocaine, a digital scale with white residue, and three cellular telephones from the residence.
Earl Stone was previously convicted and sentenced to serve 32 months in prison.
The sentencing is the culmination of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia; the Jamestown Police Department, under the direction of Chief Timothy Jackson; the New York State Department of Corrections and Community Supervision, under the direction of under the direction of Acting Commissioner Anthony J. Annucci; and the New York State Police, under the direction Major James Hall.
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Italian company admits guilt in scheme to evade U.S. national security trade sanctionsRead the Press Release
SAVANNAH, GA: An Italian company has entered a guilty plea in a scheme to evade United States national security laws.
GVA International Oil and Gas Services (GVA) pled guilty in U.S. District Court to violating the Export Control Reform Act, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. The plea subjects the company to a sentence of up to five years’ probation, along with significant fines and financial restitution.
GVA owner Gabrielle Villone currently is serving a 28-month prison sentence after pleading guilty to conspiracy in the case, USA v. World Mining and Oil Supply et. al.
“This conspiracy represents a tangled web of deceit designed to allow Russian interests to evade United States trade sanctions,” said Acting U.S. Attorney Estes. “With our law enforcement partners, we will continue to hold accountable those who would threaten our nation’s security.”
As described in court documents and testimony, the conspiracy began when an unnamed Russian government-controlled business contracted with Oleg Vladislavovich Nikitin, general director of KS Engineering (KSE), a St. Petersburg, Russia-based energy company, to purchase a power turbine from a U.S.-based manufacturer for approximately $17.3 million. The Russian company intended to use the turbine on a Russian Arctic deepwater drilling platform, expressly prohibited by the U.S. Department of Commerce without first obtaining a license.
Nikitin and KSE previously pled guilty to a conspiracy to evade U.S. export regulations and to defraud the United States and await sentencing.
Nikitin admitted that he and another KSE employee, Anton Cheremukhin, conspired with Villone, GVA, and GVA employee Bruno Caparini, to obtain the turbine on their behalf. Villone, Caprini and GVA then employed the services of Dali Bagrou and World Mining and Oil Supply (WMO) of Dacula, Ga., to procure the turbine from a U.S.-based manufacturer and to have the turbine shipped overseas. The parties conspired to conceal the true end user of the turbine from both the U.S. manufacturer and the U.S. government by submitting false documentation that stated it would be used by a U.S. company in and around Atlanta.
Nikitin, Villone, and Bagrou all were arrested in Savannah, Ga., while attempting to complete the illegal transaction. Bagrou remains in custody pending further legal action, and with all defendants is considered innocent unless and until found guilty in court.
The Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement, as well as the Defense Criminal Investigative Service and the Federal Bureau of Investigation are investigating the case with assistance from the Georgia Department of Natural Resources and Customs and Border Protection. Assistant U.S. Attorneys Jennifer G. Solari and Steven H. Lee are prosecuting the case with Trial Attorney William A. Mackie of the National Security Division’s Counterintelligence and Export Control Section.
Iowa City Man Sentenced to Federal Prison on Firearm ChargeRead the Press Release
DAVENPORT, Iowa – On May 21, 2021, United States District Court Chief Judge John A. Jarvey sentenced Parish Bennett, age 33, of Iowa City, to five years in prison for Felon in Possession of a Firearm. Following his term of imprisonment, Bennett was ordered to serve a term of supervised release of three years.
Bennett was charged in a one-count Indictment filed on March 11, 2020, in the Southern District of Iowa for being a Prohibited Person in Possession of a Firearm, on or about December 11, 2019. On September 14, 2020, Bennet pleaded guilty to the Indictment.
This charge arose from the execution of a search warrant on a residence in Iowa City after obtaining information that Bennett and his girlfriend were selling drugs out of the residence and locating controlled substance residue in their trash. During execution of the search warrant, officers located a firearm in the home. Bennett admitted using methamphetamine, being a felon, and possessing the firearm. The firearm was previously reported stolen.
Acting United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement.
The Johnson County Drug Task Force (JCDTF) investigated 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.
Illinois Man Named in 2-Count Indictment Charging Drug Law ViolationsRead the Press Release
PITTSBURGH – An Illinois man has been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics laws, Acting United States Attorney Stephen R. Kaufman announced today.
The two-count Indictment named Randall Langston, 27, of Bellwood, IL 60104, as the sole defendant.
According to the Indictment, on or about February 5, 2021, Langston was found to be in possession of 100 grams or more of heroin and 40 grams or more of a mixture and substance containing fentanyl and heroin; and a quantity of heroin.
The law provides for a maximum total sentence of 40 years in prison, a fine of $5 million or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendants.
Assistant United States Attorney Michael R. Ball is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania Attorney General’s Office conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Houston Man Pleads Guilty to Drug Trafficking in Southeast TexasRead the Press Release
BEAUMONT, Texas – A Houston man has pleaded guilty to federal drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Jeremy Klintman, 38, pleaded guilty to conspiracy to possess with intent to distribute a controlled substance today before U.S. Magistrate Judge Zack Hawthorn.
According to information presented in court, a law enforcement investigation from May 2016 through August 2016, revealed that Klintman was supplying methamphetamine to others, including members of the Aryan Circle, for trafficking in Houston, Southeast Texas, and Southwest Louisiana.
“Trafficking methamphetamine in the Eastern District of Texas is going to result in a knock on the door from law enforcement,” said Acting U.S. Attorney Nicholas J. Ganjei. “Ensuring safe communities in Southeast Texas is a top priority for EDTX, and shutting down the methamphetamine trade is a lynchpin of that effort.”
Klintman was indicted by a federal grand jury on Oct. 7, 2020 and faces up to life in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing 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 U.S. Probation Office.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case is being investigated by the U.S. Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms, and Explosives, Texas Department of Public Safety, and Houston Police Department and prosecuted by Assistant U.S. Attorney Christopher Rapp and Trial Attorney Alexander Gottfried with the Department of Justice’s Organized Crime and Gang Section (OCGS).
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Harrisburg Man Sentenced to 15 Years’ Imprisonment for Soliciting Child PornographyRead the Press Release
HARRISBURG—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Justin Wagner, age 40, of Harrisburg, Pennsylvania, was sentenced to 15 years’ imprisonment to be followed by 15 years on supervised release on May 24, 2021, by U.S. District Court Judge Jennifer P. Wilson, for soliciting child pornography.
According to Acting United States Attorney Bruce D. Brandler, Wagner previously pleaded guilty to soliciting child pornography. Wagner committed the offense on October 22, 2016. Wagner also used his laptop computer to access hundreds of images and videos of child pornography and traded them with others on the internet.
Judge Wilson also ordered Wagner to pay a total of $30,000 restitution to six minor victims depicted in the images and videos of child pornography that he received and distributed.
The matter was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Christian Haugsby prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
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Guatemalan Man Sentenced in Federal Court for Illegal Re-EntryRead the Press Release
A man who was illegally in the United States was sentenced May 21, 2021 to 99 days imprisonment.
Armando Ramirez-Lopez, 28, from Guatemala, received the prison term after a March 19, 2021, guilty plea to illegally re-entering the United States.
At the guilty plea and sentencing hearing, evidence showed that Ramirez-Lopez was arrested on August 29, 2020, in Sioux City, Iowa for possession of methamphetamine. On December 30, 2020, defendant was arrested on an active warrant for failure to appear. Investigation revealed Ramirez-Lopez is an alien who had been ordered removed from the United States to Guatemala on April 22, 2014. Ramirez-Lopez had been physically removed from the United States on January 11, 2017, through the Alexandria, Louisiana, Port of Entry.
Ramirez-Lopez was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Ramirez-Lopez was sentenced to time served of 99 days’ imprisonment. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorney Patrick T. Greenwood and investigated by Department of Homeland Security and Immigration and Customs Enforcement.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-4016. Follow us on Twitter @USAO_NDIA.
Greensboro Physician and Pain Management Practice to Pay $500,000 to Resolve Allegations of Health Care FraudRead the Press Release
GREENSBORO, N.C. – HEAG Pain Management Center, P.A. (HEAG) and its owner, Dr. Kwadwo Gyarteng-Dakwa (Dr. Dakwa), have agreed to pay $500,000.00 to resolve allegations that HEAG and Dr. Dakwa violated the False Claims Act by billing Medicare and Medicaid for medically unnecessary diagnostic testing between January 1, 2011 and October 31, 2016, announced Acting U.S. Attorney Sandra J. Hairston. HEAG and Dr. Dakwa will also enter into an Integrity Agreement with the U.S. Department of Health and Human Services Office of Inspector General.
The United States alleged that HEAG and Dr. Dakwa knowingly submitted or caused the submission of false claims to Medicare and Medicaid for diagnostic nerve conduction studies. Diagnostic tests must be ordered for a patient to treat a specific illness or injury and must be individualized to the patient’s need. The government alleged that HEAG performed the nerve conduction studies without regard to medical necessity, as these tests were performed prior to any examination by Dr. Dakwa and therefore not tailored to the treatment of the individual patient. In addition, unqualified staff at HEAG frequently performed the nerve conduction studies, despite coverage rules requiring a physician to perform the tests.
“Dr. Dakwa devised a scheme to increase his profits rather than make medical decisions based on individual patient need,” said Acting United States Attorney Sandra Hairston. “We will not tolerate and will continue to search for any fraud that allows individual practitioners to wrongfully profit off taxpayer-funded health care programs.”
The resolutions obtained in this matter were the result of a coordinated effort between the U.S. Attorney’s Office for the Middle District of North Carolina, the U.S. Department of Health and Human Services, Office of Counsel to the Inspector General, and the North Carolina Department of Justice, Medicaid Investigations Division. Assistant U.S. Attorney Rebecca Mayer represented the United States.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
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Grand Jury Returns Two IndictmentsRead the Press Release
MADISON, WIS. – A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments today. You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Stoughton Man Charged with Bank Robberies
Todd Templeton, 51, Stoughton, Wisconsin, is charged with committing two bank robberies. The indictment alleges that he robbed the Associated Bank on King Street in Stoughton on February 24, 2021, and that he robbed the Associated Bank on Cottage Grove Road in Madison, Wisconsin on March 3, 2021.
If convicted, Templeton faces a maximum penalty of 20 years in federal prison on each count. The charges against him are the result of an investigation by the Stoughton Police Department, Madison Police Department, and Federal Bureau of Investigation. Assistant U.S. Attorney Corey Stephan is handling the prosecution.
La Crosse Man Charged with Drug & Gun Crimes
Nickolas S. Fitzpatrick, 49, La Crosse, Wisconsin, is charged with possessing 50 grams of more of methamphetamine with the intent to distribute, with possessing a firearm in furtherance of that drug trafficking crime, and with being a felon in possession of a firearm. The indictment alleges that he possessed the methamphetamine and a handgun on April 3, 2021.
If convicted, Fitzpatrick faces a mandatory minimum penalty of 5 years and a maximum of 40 years in federal prison on the methamphetamine charge. The charge of possessing a firearm in furtherance of a drug trafficking crime carries a mandatory minimum penalty of 5 years in federal prison. Federal law requires that any sentence imposed on this charge be served consecutive to any other penalty imposed. The charge of being a felon in possession of a firearm has a maximum penalty of 10 years in federal prison.
The charges against Fitzpatrick are the result of an investigation by the La Crosse Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Steven Anderson is handling the prosecution.
Georgia Man Sentenced to Five Years of Probation for Conspiracy to Distribute Unapproved Drugs and Smuggling of GoodsRead the Press Release
CONCORD - George Kuiper, 74, of Lawrenceville, Georgia was sentenced to five years of probation for conspiracy to distribute unapproved drugs, distribution of unapproved drugs, and unlawful smuggling of goods into the United States, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, from 2006 to 2020, Kuiper operated an internet pharmacy on various websites that he managed from his residence in Lawrenceville, Georgia. On his websites, Kuiper sold over 100 products, including prescription drugs and controlled substances which he obtained from foreign sources. Some of the substances were purchased by customers in New Hampshire. Kuiper’s best-selling product was modafinil, a Schedule IV controlled substance and prescription new drug not approved by the FDA. Kuiper’s websites were not registered with the DEA to distribute controlled substances.
The sentence also included the forfeiture of over $440,000 and two properties.
Kuiper previously pleaded guilty on January 14, 2021.
“Unapproved drugs can pose a host of dangers to unsuspecting consumers,” said Acting U.S. Attorney Farley. “Thanks to the hard work of our law enforcement partners, this defendant’s unlawful activity has been stopped. To protect our citizens from the health and safety dangers of unapproved drugs, we will continue to target those who smuggle or sell unapproved drugs in the Granite State.”
“The FDA’s requirements are designed to ensure that U.S. consumers receive safe and effective drugs. Evading the FDA process and distributing unapproved drugs to U.S. consumers will not be tolerated,” said Special Agent in Charge Jeffrey J. Ebersole, FDA Office of Criminal Investigations, New York Field Office. “We will continue to investigate and protect the public health of the nation.”
“Today’s sentencing of Mr. Kuiper is yet another reminder of how unsuspecting and vulnerable customers can be exploited by illicit operators of unlicensed on-line pharmacies, particularly during times when so many have heightened concerns about their own health and that of their loved ones” said William S. Walker, Acting Special Agent in Charge, Homeland Security Investigations, Boston. “HSI was pleased to partner with the U.S. Food and Drug Administration’s Office of Criminal Investigations and the U.S. Attorney’s Office for New Hampshire on this investigation to ensure Mr. Kuiper is prevented from further scamming residents of New Hampshire and elsewhere through the sale and distribution of potentially dangerous, unapproved prescription drugs.”
This matter was investigated by the Food and Drug Administration’s Office of Criminal Investigations with assistance from Homeland Security Investigations. The case was prosecuted by Assistant U.S. Attorney Georgiana L. MacDonald and Special Assistant U.S. Attorney Sarah Hawkins.
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Fredonia Man Pleads Guilty to Producing and Possessing 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 Dustin Post, 25, of Fredonia, NY, pleaded guilty before U.S. District Judge Lawrence J. Vilardo to production and possession of child pornography. The charges carry a mandatory minimum penalty of 25 years in prison, a maximum of 50 years in prison, and a fine of $250,000.
Assistant U.S. Attorney David J. Rudroff, who is handling the case, stated that the New York State Police in Fredonia began investigating the defendant after receiving a parental complaint involving the commission of a possible sex offense upon a minor.
In the summer of 2019, Post video-recorded his abuse of a 12-year-old girl. On November 15, 2019, investigators removed a cellular telephone, a laptop computer, and four flash drives from the defendant’s residence. An initial review of the electronic devices recovered multiple images and videos of suspected child pornography.
The plea is a result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly, and the New York State Police, under the direction of Major James Hall.
Sentencing is scheduled for October 1, 2021, at 9:30 a.m. before Judge Vilardo.
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Former San Antonio Police Officer Sentenced to Federal Prison for Distribution of Obscene Visual Representations of the Sexual Abuse of ChildrenRead the Press Release
SAN ANTONIO – A federal judge yesterday sentenced 27-year-old former San Antonio police officer Sebastian Torres to eight years in federal prison followed by 15 years of supervised release for the distribution of obscene visual representations of the sexual abuse of children.
On February 26, 2020, the San Antonio resident pleaded guilty to one count of distribution of obscene visual representations of the sexual abuse of children and admitted he sent numerous obscene depictions of young children being sexually assaulted to another individual on October 31, 2019. During this investigation, local authorities executed a search warrant at the defendant’s residence and seized the defendant’s cell phone which was used to commit the offense.
U.S. Attorney Ashley C. Hoff and FBI Special Agent in Charge Christopher Combs, San Antonio Division made the announcement.
This investigation was initiated by the San Antonio Police Department and then proceeded as a joint investigation with the San Antonio FBI Child Exploitation and Human Trafficking Task Force. Assistant U.S. Attorney Tracy Thompson prosecuted this case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Former Philadelphia City Treasurer Charged in Superseding Indictment with Tax Fraud and Failure to File Tax ReturnsRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Christian Dunbar, 41, of Philadelphia, PA, the former Philadelphia City Treasurer, was charged by Superseding Indictment with two counts of filing a false income tax return and three counts of failure to file tax returns. Dunbar was previously charged with 14 counts of embezzlement by a bank employee, procurement of naturalization through a false statement, procurement of naturalization unlawfully, obtaining false citizenship papers, and making false statements in support of naturalization.
According to the Superseding Indictment, Dunbar allegedly participated in three schemes – (1) bank embezzlement; (2) false statements submitted in his application to become a U.S. citizen; and (3) failing to file his tax returns and falsely filing returns.
The Superseding Indictment includes allegations from the original Indictment that, just weeks before his appointment to serve as the City’s Deputy Treasurer, Dunbar, while still employed at Wells Fargo Bank in Newtown Square, stole $15,000 from two different bank customers on two separate occasions, once in December 2015 and again in January 2016.
Dunbar also allegedly made false representations in his application for naturalization. Dunbar allegedly falsified with whom he was cohabitating, to whom he was married,
where he was residing, and where his child was residing. He is also charged with having submitted a false lease and a false W-2 tax form to immigration officials. And, he is charged with failing to disclose a previous crime that he committed, namely bank embezzlement.
The Superseding Indictment newly alleges that Dunbar did not file his personal income tax returns for tax years 2015, 2016, and 2019 (during the last of which he was serving as the Philadelphia City Treasurer). Also, Dunbar is charged with filing false tax returns for the years 2017 and 2018 by claiming business losses resulting in tax refunds to which he was not entitled.
If convicted, Dunbar faces a maximum possible sentence of 174 years’ imprisonment and a fine of $6.025 million.
“As first detailed in the initial Indictment announced last September, and further alleged in the Superseding Indictment announced today, Christian Dunbar’s conduct in this case demonstrates a shocking level of misconduct – three separate fraud schemes – for a person who held such a senior, cabinet-level position with City of Philadelphia,” said Acting U.S. Attorney Williams. “Our Office will continue to work with our law enforcement partners to investigate these types of complicated public corruption cases, and hold public officials accountable.”
“For whatever reason, some people feel like the laws we all must abide by simply don’t apply to them,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “Christian Dunbar allegedly perpetrated quite an array of fraud schemes. I guess he thought he’d get away with all of it. Today’s superseding indictment suggests otherwise. The FBI and our partners won’t stand for fraudsters flouting federal law, particularly those who’ve wound up in positions of public trust.”
“Today’s action demonstrates our collective efforts to enforce the law and ensure public trust,” said Thomas Fattorusso, Special Agent in Charge of IRS Criminal Investigation. “Public officials hold positions of trust in the public eye. That trust is eroded when public officials commit crimes. IRS-CI will continue to work with our law enforcement partners to seek justice on behalf of the citizens of Philadelphia.”
The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigations, and is being prosecuted by Assistant United States Attorneys Josh Davison and Denise S. Wolf.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former North Shore Resident Charged with COVID-Relief FraudRead the Press Release
BOSTON – A former North Shore resident was indicted yesterday in connection with allegedly filing fraudulent applications for loans and unemployment benefits to obtain over $660,000 in Paycheck Protection Program (PPP) loan funds and using those funds for personal expenses, including the purchase of an alpaca farm in Vermont.
Dana L. McIntyre, 57, of Grafton, V.T. and previously of Beverly and Essex, Mass., was indicted on four counts of wire fraud and three counts of money laundering. On May 4, 2021, McIntyre was arrested and charged by criminal complaint.
McIntyre is the former owner of Rasta Pasta Pizzeria in Beverly. According to the indictment, in March 2020, McIntyre allegedly used the names of his adult children to submit two fraudulent applications for Economic Injury Disaster Loans (EIDL) for fictitious businesses. Beginning in April 2020, McIntyre allegedly submitted an application and weekly certifications in order to receive Pandemic Unemployment Assistance (PUA) benefits. On these filings, McIntyre falsely claimed that he was not working or receiving income as a result of the pandemic, while McIntyre in fact was still operating the restaurant and paying himself income from the business. In August 2020 when McIntyre sold the restaurant , he had allegedly received over $17,000 in PUA and related benefits that he was not entitled to receive.
It is further alleged that, in April 2020, McIntyre submitted a fraudulent application for a PPP loan of over $660,000 through a Small Business Administration approved lender. In the application, McIntyre allegedly inflated information about the pizzeria’s employees and payroll expenses and falsified an official tax form in an effort to qualify the business for a larger loan amount. After receiving a PPP loan of over $660,000, McIntyre allegedly sold the pizzeria and used nearly all the funds to purchase an alpaca farm in Vermont and other personal expenses.
The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000, or twice the gross gain or loss from the scheme, whichever is greater. The charge of money laundering provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $500,000, or twice the value of the criminally derived property. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Ramsey E. Covington, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of the Inspector General, Northeast Regional Office made the announcement today. Assistant U.S. Attorneys David M. Holcomb of Mendell’s Securities, Financial & Cyber Fraud Unit and Carol Head of Mendell’s Asset Recovery Unit are prosecuting the case.
Information about allegations of attempted fraud involving COVID-19 can be reported by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) hotline by phone (1-866-720-5721) or via an online reporting form available at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Minister of Government of Bolivia, Owner of Florida-Based Company, and Three Others Charged in Bribery and Money Laundering SchemeRead the Press Release
Two Bolivian nationals and three U.S. citizens were arrested on May 21, and May 22, in Florida and Georgia on criminal charges related to their alleged roles in a bribery and money laundering scheme. The former Minister of Government of Bolivia and another former Bolivian official are accused of receiving bribes paid by a U.S. company and individuals to secure a Bolivian government contract, and then using the U.S. financial system to launder those bribes.
According to court documents, Arturo Carlos Murillo Prijic, 57, Sergio Rodrigo Mendez Mendizabal, 51, Luis Berkman, 58, Bryan Berkman, 36, and Philip Lichtenfeld, 48, engaged in the bribery scheme between approximately November 2019 and April 2020. During that time, Luis Berkman, Bryan Berkman, and Lichtenfeld paid $602,000 in bribes to Bolivian government officials for the benefit of Murillo, the former Minister of Government of Bolivia, Mendez, the former Chief of Staff of the Ministry of Government of Bolivia, and another Bolivian government official. The bribes were paid so that Bryan Berkman’s Florida-based company would obtain and retain business from the Bolivian Ministry of Defense, specifically, an approximately $5.6 million contract to provide to the Bolivian Ministry of Defense tear gas and other non-lethal equipment. To promote the bribery scheme, Bryan Berkman, Luis Berkman, and Lichtenfeld then laundered the payments to Bolivian government officials through bank accounts in Florida and Bolivia and orchestrated the payment of $582,000 in cash for Murillo and Mendez.
All five individuals are charged with one count of conspiracy to commit money laundering. If convicted, they face 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 Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Acting U.S. Attorney for the Southern District of Florida Juan Antonio Gonzalez; and Special Agent in Charge Anthony Salisbury of Homeland Security Investigations (HSI) Miami office made the announcement.
Trial Attorney Jil Simon and Assistant Chief Gerald M. Moody Jr. of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Eli S. Rubin of the U.S. Attorney’s Office for the Southern District of Florida are prosecuting the case. Assistant U.S. Attorney Marx P. Calderón is handling asset forfeiture.
The Fraud Section is responsible for investigating and prosecuting all Foreign Corrupt Practices Act (FCPA) matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
The charges in the complaint are allegations, and the defendants are presumed innocent unless and until proven guilty.
Former Madison County Man Sentenced on Child Exploitation ChargesRead the Press Release
HUNTSVILLE, Ala. – A federal judge today sentenced a former Madison County man on child exploitation charges, announced United States Attorney Prim F. Escalona and Federal Bureau of Investigation Special Agent in Charge Johnnie Sharp, Jr.
Chief United States District Judge L. Scott Coogler sentenced Justin David Beatty, 31, formerly of Madison County, to 50 years in prison followed by lifetime supervised release for two counts of production of child pornography, two counts of coercion and enticement of a minor, and two counts of receipt of child pornography. Beatty pleaded guilty to these charges in September 2020.
According to court documents, Beatty targeted and manipulated pre-teen and teenage girls through various online chat applications using false personas. Beatty used threats to coerce them to produce obscene photographs of themselves for his sexual pleasure. When they refused his demands, he would threaten to post their pornographic photographs online. This conviction will require Beatty to register as a sex offender in accordance with the Sex Offender Registration and Notification Act (SORNA).
“This defendant used the internet to gain the trust of vulnerable victims and exploited them for his own gratification,” U.S. Attorney Escalona said. “This sentence sends a strong message that individuals who target children for sexual exploitation will be brought to justice.”
“Beatty was a textbook “sextortionist” with his efforts to manipulate young girls,” SAC Sharp said. “This case should serve as a reminder that both youth and caregivers need to understand that a sexual predator can victimize children or teens in their own homes through the devices they use for gaming, homework, and communicating with friends. Awareness, online safety practices, and a willingness to ask for help, can put an end to this exploitation. Please report suspected sextortion, to your nearest FBI field office or call 1-800-CALL-FBI (225-5324). To make a CyberTipline report with the National Center for Missing & Exploited Children (NCMEC), visit report.cybertip.org.”
FBI Huntsville Resident Agency, along with the FBI Internet Crimes Against Children Task Force and the City of Madison Police Department investigated the case. Assistant United States Attorney R. Leann White prosecuted the case.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched by the Department of Justice in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Former Klamath Falls Police Officer Faces Federal Charges for Stealing Methamphetamine and Fentanyl from Evidence RoomRead the Press Release
MEDFORD, Ore.—A two-count indictment was unsealed today charging a former Klamath Falls, Oregon police officer for stealing methamphetamine and fentanyl from an evidence room.
Thomas Dwayne Reif, 27, has been charged with two counts of possessing a controlled substance by misrepresentation, fraud, forgery, deception, or subterfuge.
According to the indictment, on or about November 27, 2020, Reif is alleged to have entered the Klamath Falls Police Department’s temporary evidence room using an unauthorized key and removed an evidence item containing methamphetamine and fentanyl. Reif briefly left the evidence room before returning the evidence item to the evidence locker and leaving the facility.
Shortly thereafter, Reif overdosed while operating his police car. The car jumped a median, travelled into oncoming traffic, and caused a multiple-vehicle accident. Reif was rushed to the hospital and successfully revived by medical personnel. Toxicology reports showed that Reif was under the influence of substances including methamphetamine and fentanyl.
Investigators searched the personal locker assigned to Reif at the Klamath Falls Police Department. Inside the locker, investigators found that Reif had concealed an evidence bag containing methamphetamine.
Reif made his initial appearance in federal court today before a U.S. Magistrate Judge. He was arraigned, pleaded not guilty, and released pending a jury trial scheduled to begin on August 3, 2021.
If convicted, Reif faces a maximum sentence of four years in federal prison, one year of supervised release, and a fine of $250,000.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the Federal Bureau of Investigation with Oregon State Police and is being prosecuted by John C. Brassell, Assistant U.S. Attorney for the District of Oregon. Klamath Falls Police Department cooperated and provided assistance throughout the investigation.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Former Doctor Sentenced to Prison for Illegally Prescribing OxycodoneRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that JENNIFER FARRELL, 38, of Chapel Hill, North Carolina, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 30 days of imprisonment, followed by three years of supervised release, for writing illegal prescriptions for oxycodone while she was a doctor in New Haven. Judge Meyer also ordered Farrell to perform 600 hours of community service while she is on supervised release.
According to court documents and statements made in court, Farrell was a medical resident at Yale New Haven Health (“YNHH”) in its Emergency Department from July 2017 until June 2019. From March 2018 to March 2019, Farrell wrote more than 50 prescriptions for oxycodone for non-legitimate medical purposes outside the scope of her professional practice in the name of at least five individuals. Farrell did not see any of the other individuals for any medical purpose at any YNHH facility during the entire period of her residency. In total, she wrote illegal prescriptions for nearly 4,000 oxycodone tablets during that approximately one-year period.
Farrell was arrested on July 31, 2019. On March 4, 2021, she pleaded guilty to distribution of controlled substances outside the scope of her professional practice and without a legitimate medical purpose.
This investigation was conducted by the Federal Bureau of Investigation and the Drug Enforcement Administration, Diversion Control Group. The case was prosecuted by Assistant U.S. Attorney Heather Cherry.
Former Chief of Staff to Illinois Speaker of the House Indicted for Allegedly Lying Under Oath to Federal Grand JuryRead the Press Release
CHICAGO — The former Chief of Staff to the Illinois Speaker of the House of Representatives was indicted today for allegedly providing false material declarations under oath to a federal grand jury and attempting to obstruct its investigation into allegations of public corruption.
TIMOTHY MAPES, 66, of Springfield, Ill., is charged with one count of making false declarations before a grand jury and one count of attempted obstruction of justice, according to an indictment returned in U.S. District Court in Chicago. Arraignment has not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and Tamera Cantu, Acting Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago. The government is represented by Assistant U.S. Attorneys Julia Schwartz, Amarjeet S. Bhachu, Diane MacArthur, Timothy J. Chapman, Sarah E. Streicker, Matthew L. Kutcher, and Michelle Kramer. The officials noted that the federal investigation into the allegations of public corruption remains ongoing.
According to the indictment, the federal grand jury was investigating possible violations of federal criminal law, including efforts by the Illinois Speaker of the House and an individual acting on the Speaker’s behalf, to obtain for others private jobs, contracts, and monetary payments, including from Commonwealth Edison (“ComEd”), the largest electric utility in Illinois, to influence and reward the Speaker in the Speaker’s official capacity. On March 24, 2021, Mapes was granted immunity to testify before the grand jury. The immunity order provided that no testimony or evidence provided by Mapes could be used against him in a criminal case, except for perjury, giving a false statement, or otherwise failing to comply with the immunity order.
On March 31, 2021, Mapes testified before the grand jury and knowingly made false material declarations in response to several questions about a consultant’s relationship with the Speaker from 2017 to 2019, the indictment states. Mapes in his testimony denied knowing that the consultant acted as an agent or performed work for the Speaker during those years, when, in fact, Mapes knew that the consultant carried out work and assignments on behalf of the Speaker and communicated messages on the Speaker’s behalf, the indictment states.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. The obstruction charge is punishable by up to 20 years in federal prison, while the false declaration charge carries a maximum sentence of five years.
Former Chief of Staff to Illinois Speaker of the House Indicted for Allegedly Lying Under Oath to Federal Grand JuryRead the Press Release
CHICAGO — The former Chief of Staff to the Illinois Speaker of the House of Representatives was indicted today for allegedly providing false material declarations under oath to a federal grand jury and attempting to obstruct its investigation into allegations of public corruption.
TIMOTHY MAPES, 66, of Springfield, Ill., is charged with one count of making false declarations before a grand jury and one count of attempted obstruction of justice, according to an indictment returned in U.S. District Court in Chicago. Arraignment has not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and Tamera Cantu, Acting Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago. The government is represented by Assistant U.S. Attorneys Julia Schwartz, Amarjeet S. Bhachu, Diane MacArthur, Timothy J. Chapman, Sarah E. Streicker, Matthew L. Kutcher, and Michelle Kramer. The officials noted that the federal investigation into the allegations of public corruption remains ongoing.
According to the indictment, the federal grand jury was investigating possible violations of federal criminal law, including efforts by the Illinois Speaker of the House and an individual acting on the Speaker’s behalf, to obtain for others private jobs, contracts, and monetary payments, including from Commonwealth Edison (“ComEd”), the largest electric utility in Illinois, to influence and reward the Speaker in the Speaker’s official capacity. On March 24, 2021, Mapes was granted immunity to testify before the grand jury. The immunity order provided that no testimony or evidence provided by Mapes could be used against him in a criminal case, except for perjury, giving a false statement, or otherwise failing to comply with the immunity order.
On March 31, 2021, Mapes testified before the grand jury and knowingly made false material declarations in response to several questions about a consultant’s relationship with the Speaker from 2017 to 2019, the indictment states. Mapes in his testimony denied knowing that the consultant acted as an agent or performed work for the Speaker during those years, when, in fact, Mapes knew that the consultant carried out work and assignments on behalf of the Speaker and communicated messages on the Speaker’s behalf, the indictment states.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. The obstruction charge is punishable by up to 20 years in federal prison, while the false declaration charge carries a maximum sentence of five years.
Former Bordentown Township Police Chief Sentenced to 28 Months in Prison for Lying to FBIRead the Press Release
CAMDEN, N.J. – The retired chief of the Bordentown Township Police Department was sentenced today to 28 months in prison for lying to FBI agents who were questioning him about violating an 18-year-old man’s civil rights during an arrest, Acting U.S. Attorney Rachael A. Honig announced.
Frank M. Nucera Jr., 64, of Bordentown, New Jersey, was convicted in October 2019 of one count of making false statements to FBI agents who were interviewing him about an arrest that occurred on Sept. 1. 2016. Nucera is also charged by indictment with one count of hate crime assault and one count of deprivation of civil rights under color of law; a mistrial was declared on those counts, and he is awaiting retrial.
According to documents filed in this case and the evidence at trial:
On Sept. 1, 2016, two Bordentown Township police officers responded to a phone call from the Bordentown Ramada, complaining that two teenagers had stayed in a room at the hotel without paying. The teens were listed in the indictment as “Civilian 1,” an 18-year-old African American teenager, and “Civilian 2,” a 16-year-old African American girl. After the officers arrived and questioned the teenagers, the situation allegedly escalated into a physical confrontation, with both teens attempting to resist arrest. The officers called for backup, and numerous officers, including then-Chief Nucera, arrived on the scene.
After Civilian 1 was handcuffed and was being escorted out of the hotel by police, Nucera allegedly approached him from behind and slammed the teenager’s head into a metal doorjamb. During a video recorded interview by FBI special agents, Nucera falsely stated multiple times that he did not touch Civilian 1 during the arrest.
In addition to the prison term, Judge Kugler sentenced Nucera to two years of supervised release. He also ordered that Nucera will not begin serving his sentence until the remaining counts are resolved.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to the charges and today’s sentencing.
The government is represented by Molly S. Lorber, Attorney in Charge of the Camden Office, and Senior Civil Rights Counsel R. Joseph Gribko.
The remaining two counts of the indictment on which Nucera will be retried are merely accusations, and he remains innocent unless and until proven guilty.
Florida Man Sentenced to 35 Years for Production of Child Pornography in Arizona, Minnesota, and South CarolinaRead the Press Release
TUCSON, Ariz. – Jeremy McCown, 39, of Wesley Chapel, Florida, was sentenced yesterday by U.S. District Judge Raner C. Collins to 35 years in prison. McCown previously pleaded guilty to fourteen counts of Production of Child Pornography.
McCown was arrested on January 31, 2019, after an investigation identified his repeated use of false personas to place online ads seeking models in exchange for money. McCown would then demand sexually explicit images from the women and minor children who responded to his ads. McCown convinced one woman to send sexually explicit images of her 1-year-old daughter and manipulated two other minors into sending sexually explicit images to him. He was charged with twelve counts of production of child pornography in Arizona. McCown entered into a plea agreement on January 13, 2020, which also included pleading guilty to conduct involving minor victims in Minnesota and South Carolina.
Upon release from prison, McCown will be placed on lifetime supervised release. He will be required to register as a sex offender and to complete a sex offender treatment program. McCown was also ordered to pay restitution to victims depicted in the child sex abuse images he produced.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A Tucson Police Department Crimes Against Children Detective conducted the investigation in this case in collaboration with the Federal Bureau of Investigation (FBI), Tucson. Agents from Homeland Security Investigations (HSI) and FBI participated in the investigation in Florida. Carin C. Duryee, Carmen C. Corbin, and Adam Rossi, Assistant U.S. Attorneys, District of Arizona, Tucson, handled the prosecution, with assistance from AUSA Francis Murray in the Middle District of Florida.
CASE NUMBER: CR 19-00183-TUC-RCC
RELEASE NUMBER: 2021- 035_McCown# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Drug Courier for the Pagans Motorcycle Club Pleads GuiltyRead the Press Release
PITTSBURGH, PA - A resident of Erie, Pennsylvania, pleaded guilty in federal court to a charge of violating federal narcotics trafficking laws, Acting United States Attorney Stephen R. Kaufman announced today.
Mark Stockhausen, 40, pleaded guilty to one count before United States District Judge Robert J. Colville.
In connection with the guilty plea, the court was advised that the Greater Pittsburgh Safe Streets Task Force, led by the Federal Bureau of Investigation, conducted a long-term investigation into drug-trafficking and illegal firearms activity occurring in the Western District of Pennsylvania, involving, among others, members and associates of the Pagans Motorcycle Club (MC). One of the targets of the investigation was co-defendant Bill Rana, who is a "fully patched" member of the PMC and Sergeant of Arms for the Pittsburgh Chapter of the MC. Rana is charged in Counts One (methamphetamine) and Two (cocaine) of the Indictment.
Beginning in August of 2020 and continuing through November 2020, the Court was further informed, that the FBI conducted a federal Title III investigation, which resulted in the interception of thousands of wire and electronic communications over a total of ten telephones. Stockhausen was intercepted over the telephone operated by Rana and also communicated with Rana over Facebook Messenger.
Through the investigation, Mr. Stockhausen was identified as an associate of Mr. Rana’s and a courier for Mr. Rana’s drug trafficking operation, obtaining cocaine from co-defendant Hasani James in Michigan and returning to the WD of PA with the cocaine, which was then distributed by members of the conspiracy.
Mr. Stockhausen, at the hearing, accepted responsibility for the sale of and/or could otherwise foresee the possession/distribution of at least, approximately, 252 grams of cocaine.
Judge Colville scheduled sentencing for Sept. 29, 2021 at 9:00 a.m. The law provides for a total sentence of not more than 20 years in prison, a fine of not more than $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Rebecca L. Silinski is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the United States Postal Inspection Service, Drug Enforcement Administration, United States Marshals Fugitive Task Force, Allegheny County Sheriff’s Office, Pennsylvania State Police, Pittsburgh Bureau of Police, and the Pennsylvania Office of Attorney General Bureau of Narcotics Investigations. Other assisting agencies include the Allegheny County Police Department Homicide, Baldwin Police Department, Brentwood Police Department, McKees Rocks Police Department, Stowe Township Police Department and West Deer Township Police Department.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
DOJ Announces Coordinated Law Enforcement Action to Combat Health Care Fraud Related to COVID-19Read the Press Release
FORT SMITH – The Department of Justice today announced criminal charges against 14 defendants, including 11 newly-charged defendants and three who were charged in superseding indictments, in seven federal districts across the United States for their alleged participation in various health care fraud schemes that exploited the COVID-19 pandemic and resulted in over $143 million in false billings.
“The multiple health care fraud schemes charged today describe theft from American taxpayers through the exploitation of the national emergency,” said Deputy Attorney General Lisa O. Monaco. “These medical professionals, corporate executives, and others allegedly took advantage of the COVID-19 pandemic to line their own pockets instead of providing needed health care services during this unprecedented time in our country. We are committed to protecting the American people and the critical health care benefits programs created to assist them during this national emergency, and we are determined to hold those who exploit such programs accountable to the fullest extent of the law.”
As part of the national takedown, Billy Joe Taylor, 42, of Lavaca, Arkansas, was charged by criminal complaint with health care fraud in connection with an alleged scheme to defraud the United States of over $88 million, including over $42 million in false and fraudulent claims during the COVID-19 health emergency that were billed in combination with claims that were submitted for testing for COVID-19 and other respiratory illnesses. Taylor, the owner and operator of Vitas Laboratories LLC and Beach Tox LLC, two testing laboratories, allegedly used access to beneficiary and medical provider information from prior laboratory testing orders to submit fraudulent claims for urine drug tests and other laboratory tests, including respiratory pathogen panel and COVID-19 tests, that were not actually ordered or performed. The complaint also alleges that hundreds of claims were submitted for beneficiaries after they had died or otherwise ceased providing samples.
“While the COVID-19 pandemic was raging, and Americans were suffering from the economic and health crisis brought on by this pandemic, these defendants were allegedly scheming to steal millions of dollars set aside to help ailing Americans through COVID-19 testing and other federal health-care programs,” said Acting U.S. Attorney David Clay Fowlkes. “This case demonstrates the importance of investigating and prosecuting those who would seek to line their own pockets by stealing funds set aside to help those struggling with the symptoms of COVID-19 and other health ailments.”
Additionally, the Center for Program Integrity, Centers for Medicare & Medicaid Services (CPI/CMS) separately announced today that it took adverse administrative actions against over 50 medical providers for their involvement in health care fraud schemes relating to COVID-19 or abuse of CMS programs that were designed to encourage access to medical care during the pandemic.
“Medical providers have been the unsung heroes for the American public throughout the pandemic,” said FBI Director Christopher Wray. “It’s disheartening that some have abused their authorities and committed COVID-19 related fraud against trusting citizens. The FBI, along with our federal law enforcement and private sector partners, are committed to continuing to combat healthcare fraud and protect the American people.”
The defendants in the cases announced today are alleged to have engaged in various health care fraud schemes designed to exploit the COVID-19 pandemic. For example, multiple defendants offered COVID-19 tests to Medicare beneficiaries at senior living facilities, drive-through COVID-19 testing sites, and medical offices to induce the beneficiaries to provide their personal identifying information and a saliva or blood sample. The defendants are alleged to have then misused the information and samples to submit claims to Medicare for unrelated, medically unnecessary, and far more expensive laboratory tests, including cancer genetic testing, allergy testing, and respiratory pathogen panel tests. In some cases, and as alleged, the COVID-19 test results were not provided to the beneficiaries in a timely fashion or were not reliable, risking the further spread of the disease, and the genetic, allergy, and respiratory pathogen testing was medically unnecessary, and, in many cases, the results were not provided to the patients or their actual primary care doctors. The proceeds of the fraudulent schemes were allegedly laundered through shell corporations and used to purchase exotic automobiles and luxury real estate.
“It’s clear fraudsters see the COVID-19 pandemic as a money-making opportunity — creating fraudulent schemes to victimize beneficiaries and steal from federal health care programs,” said Deputy Inspector General for Investigations Gary L. Cantrell of Health and Human Services – Office of Inspector General (HHS-OIG). “Our agency and its law enforcement partners are aggressively and effectively investigating these egregious crimes, which is made equally clear given the results of this takedown. We will continue to support the unprecedented COVID-19 public health effort by holding accountable people who use deceptive tactics to profit from the pandemic.”
In another type of COVID-19 health care fraud scheme announced today, defendants are alleged to have exploited policies that were put in place by CMS to enable increased access to care during the COVID-19 pandemic. For example, pursuant to the COVID-19 emergency declaration, telehealth regulations and rules were broadened so that Medicare beneficiaries could receive a wider range of services from their doctors without having to travel to a medical facility. The cases announced today include first in the nation charges for allegedly exploiting these expanded policies by submitting false and fraudulent claims to Medicare for sham telemedicine encounters that did not occur. As part of these cases, medical professionals are alleged to have offered and paid bribes in exchange for the medical professionals’ referral of medically unnecessary testing.
The law enforcement action today also includes the third set of criminal charges related to the misuse of Provider Relief Fund monies. The Provider Relief Fund is part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a federal law enacted March 2020 designed to provide needed medical care to Americans suffering from COVID-19.
The Fraud Section is prosecuting the cases in the following districts: Western District of Arkansas, Northern District of California, Middle District of Louisiana, Central District of California, Southern District of Florida, District of New Jersey, and the Eastern District of New York.
Today’s enforcement actions were led and coordinated by Assistant Chief Jacob Foster and Trial Attorneys Rebecca Yuan and Gary A. Winters of the National Rapid Response Strike Force of the Health Care Fraud Unit of the Criminal Division’s Fraud Section, in conjunction with the Health Care Fraud Unit’s Medicare Fraud Strike Forces (MFSF) in Miami, Los Angeles, the Gulf Coast, and Brooklyn, as well as the U.S. Attorneys’ Offices for the Northern District of California, Western District of Arkansas, and Middle District of Louisiana.
The case here in the Western District of Arkansas is being prosecuted by Senior Litigation Counsel James Hayes and Trial Attorney D. Keith Clouser of the National Rapid Response Strike Force, and Assistant U.S. Attorney Kenneth Elser of the U.S. Attorney’s Office for the Western District of Arkansas.
The MFSF is a partnership among the Criminal Division, U.S. Attorneys’ Offices, the FBI and HHS-OIG. In addition, U.S. Postal Inspection Service, Internal Revenue Service Criminal Investigation, Veterans Affairs Office of Inspector General, Department of Defense Office of Inspector General, Federal Deposit Insurance Corporation, Louisiana Medicaid Fraud Control Unit, and other federal and state law enforcement agencies participated in the law enforcement action.
The law enforcement action was brought in coordination with the Health Care Fraud Unit’s COVID-19 Interagency Working Group, which is chaired by the National Rapid Response Strike Force and organizes efforts to address illegal activity involving health care programs during the pandemic.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 federal districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
The Department of Justice needs the public’s assistance in remaining vigilant and reporting suspected fraudulent activity. To report suspected fraud, contact the National Center for Disaster Fraud (NCDF) at (866) 720-5721 or file an online complaint at: https://www.justice.gov/disaster-fraud/webform/ncdf-disaster-complaint-form. Complaints filed will be reviewed at the NCDF and referred to federal, state, local, or international law enforcement or regulatory agencies for investigation.
To learn more about the department’s COVID response, visit: https://www.justice.gov/coronavirus. For further information on the Criminal Division’s enforcement efforts on PPP fraud, including court documents from significant cases, visit the following website: https://www.justice.gov/criminal-fraud/ppp-fraud.
Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
An indictment, complaint, or information is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
###
DOJ Announces Coordinated Law Enforcement Action to Combat Health Care Fraud Related to COVID-19Read the Press Release
The Department of Justice today announced criminal charges against 14 defendants, including 11 newly-charged defendants and three who were charged in superseding indictments, in seven federal districts across the United States for their alleged participation in various health care fraud schemes that exploited the COVID-19 pandemic and resulted in over $143 million in false billings.
“The multiple health care fraud schemes charged today describe theft from American taxpayers through the exploitation of the national emergency,” said Deputy Attorney General Lisa O. Monaco. “These medical professionals, corporate executives, and others allegedly took advantage of the COVID-19 pandemic to line their own pockets instead of providing needed health care services during this unprecedented time in our country. We are committed to protecting the American people and the critical health care benefits programs created to assist them during this national emergency, and we are determined to hold those who exploit such programs accountable to the fullest extent of the law.”
Additionally, the Center for Program Integrity, Centers for Medicare & Medicaid Services (CPI/CMS) separately announced today that it took adverse administrative actions against over 50 medical providers for their involvement in health care fraud schemes relating to COVID-19 or abuse of CMS programs that were designed to encourage access to medical care during the pandemic.
“Medical providers have been the unsung heroes for the American public throughout the pandemic,” said FBI Director Christopher Wray. “It’s disheartening that some have abused their authorities and committed COVID-19 related fraud against trusting citizens. The FBI, along with our federal law enforcement and private sector partners, are committed to continuing to combat healthcare fraud and protect the American people.”
The defendants in the cases announced today are alleged to have engaged in various health care fraud schemes designed to exploit the COVID-19 pandemic. For example, multiple defendants offered COVID-19 tests to Medicare beneficiaries at senior living facilities, drive-through COVID-19 testing sites, and medical offices to induce the beneficiaries to provide their personal identifying information and a saliva or blood sample. The defendants are alleged to have then misused the information and samples to submit claims to Medicare for unrelated, medically unnecessary, and far more expensive laboratory tests, including cancer genetic testing, allergy testing, and respiratory pathogen panel tests. In some cases, and as alleged, the COVID-19 test results were not provided to the beneficiaries in a timely fashion or were not reliable, risking the further spread of the disease, and the genetic, allergy, and respiratory pathogen testing was medically unnecessary, and, in many cases, the results were not provided to the patients or their actual primary care doctors. The proceeds of the fraudulent schemes were allegedly laundered through shell corporations and used to purchase exotic automobiles and luxury real estate.
“It’s clear fraudsters see the COVID-19 pandemic as a money-making opportunity — creating fraudulent schemes to victimize beneficiaries and steal from federal health care programs,” said Deputy Inspector General for Investigations Gary L. Cantrell of Health and Human Services – Office of Inspector General (HHS-OIG). “Our agency and its law enforcement partners are aggressively and effectively investigating these egregious crimes, which is made equally clear given the results of this takedown. We will continue to support the unprecedented COVID-19 public health effort by holding accountable people who use deceptive tactics to profit from the pandemic.”
In another type of COVID-19 health care fraud scheme announced today, defendants are alleged to have exploited policies that were put in place by CMS to enable increased access to care during the COVID-19 pandemic. For example, pursuant to the COVID-19 emergency declaration, telehealth regulations and rules were broadened so that Medicare beneficiaries could receive a wider range of services from their doctors without having to travel to a medical facility. The cases announced today include first in the nation charges for allegedly exploiting these expanded policies by submitting false and fraudulent claims to Medicare for sham telemedicine encounters that did not occur. As part of these cases, medical professionals are alleged to have offered and paid bribes in exchange for the medical professionals’ referral of medically unnecessary testing.
The law enforcement action today also includes the third set of criminal charges related to the misuse of Provider Relief Fund monies. The Provider Relief Fund is part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a federal law enacted March 2020 designed to provide needed medical care to Americans suffering from COVID-19.
The Fraud Section is prosecuting the cases in the following districts: Western District of Arkansas, Northern District of California, Middle District of Louisiana, Central District of California, Southern District of Florida, District of New Jersey, and the Eastern District of New York.
Today’s enforcement actions were led and coordinated by Assistant Chief Jacob Foster and Trial Attorneys Rebecca Yuan and Gary A. Winters of the National Rapid Response Strike Force of the Health Care Fraud Unit of the Criminal Division’s Fraud Section, in conjunction with the Health Care Fraud Unit’s Medicare Fraud Strike Forces (MFSF) in Miami, Los Angeles, the Gulf Coast, and Brooklyn, as well as the U.S. Attorneys’ Offices for the Northern District of California, Western District of Arkansas, and Middle District of Louisiana.
The MFSF is a partnership among the Criminal Division, U.S. Attorneys’ Offices, the FBI and HHS-OIG. In addition, U.S. Postal Inspection Service, Internal Revenue Service Criminal Investigation, Veterans Affairs Office of Inspector General, Department of Defense Office of Inspector General, Federal Deposit Insurance Corporation, Louisiana Medicaid Fraud Control Unit, and other federal and state law enforcement agencies participated in the law enforcement action.
The law enforcement action was brought in coordination with the Health Care Fraud Unit’s COVID-19 Interagency Working Group, which is chaired by the National Rapid Response Strike Force and organizes efforts to address illegal activity involving health care programs during the pandemic.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 federal districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Case Summaries
Western District of Arkansas
- Billy Joe Taylor, 42, of Lavaca, Arkansas, was charged by criminal complaint with health care fraud in connection with an alleged scheme to defraud the United States of over $88 million, including over $42 million in false and fraudulent claims during the COVID-19 health emergency that were billed in combination with claims that were submitted for testing for COVID-19 and other respiratory illnesses. Taylor, the owner and operator of Vitas Laboratories LLC and Beach Tox LLC, two testing laboratories, allegedly used access to beneficiary and medical provider information from prior laboratory testing orders to submit fraudulent claims for urine drug tests and other laboratory tests, including respiratory pathogen panel and COVID-19 tests, that were not actually ordered or performed. The complaint also alleges that hundreds of claims were submitted for beneficiaries after they had died or otherwise ceased providing samples. The case is being prosecuted by Senior Litigation Counsel James Hayes and Trial Attorney D. Keith Clouser of the National Rapid Response Strike Force, and Assistant U.S. Attorney Kenneth Elser of the U.S. Attorney’s Office for the Western District of Arkansas.
Northern District of California
- Mark Schena, 58, of Los Altos, California, the president of Arrayit Corporation, is charged along with two others, the Arrayit Vice President of Marketing and the President of an Arizona marketing organization, in connection with the submission of over $70 million in false and fraudulent claims for allergy and COVID-19 testing. The superseding indictment against Schena includes new counts of health care fraud, a conspiracy to pay kickbacks, and payment of kickbacks in connection with false and fraudulent statements about the existence, regulatory status, and accuracy of an Arrayit COVID-19 test. The conspiracy allegedly sought to induce the ordering of the Arrayit COVID-19 test and to bundle, i.e., require combination with, the COVID-19 test and Arrayit’s medically unnecessary allergy test. The COVID-19 test results were not provided in a timely fashion and were not reliable in detecting COVID-19. The cases are being prosecuted by Acting Principal Deputy Assistant Chief Justin Weitz of the Market Integrity and Major Fraud Unit of the Fraud Section, Assistant Chief Jacob Foster of the National Rapid Response Strike Force, and Assistant U.S. Attorney Wil Frentzen of the U.S. Attorney’s Office for the Northern District of California.
Central District of California
- Petros Hannesyan, 36, of Burbank, California, was charged with the theft of government property and wire fraud in connection with $229,454 that he obtained from COVID-19 relief programs. Hannesyan, the owner of Hollywood Home Health Services, Inc., a home health agency located in Los Angeles, allegedly misappropriated funds from the CARES Act Provider Relief Fund and submitted false loan applications and a false loan agreement to the Economic Injury Disaster Loan Program, rather than use the funds for COVID-19 patient care and to support small businesses experiencing disruption due to the COVID-19 pandemic. The case is being prosecuted by Trial Attorney Alexis Gregorian of the Los Angeles Strike Force.
Southern District of Florida
- Michael Stein, 35, and Leonel Palatnik, 42, both of Palm Beach County, Florida, were charged in connection with an alleged $73 million conspiracy to defraud the United States and to pay and receive health care kickbacks during the COVID-19 pandemic. Stein, the owner and operator of purported consulting company 1523 Holdings, LLC, and Palatnik, an owner and operator of Panda Conservation Group, LLC, a Texas company that owned and operated testing laboratories in Dallas and Denton, Texas, allegedly exploited temporary waivers of telehealth restrictions enacted during the pandemic by offering telehealth providers access to Medicare beneficiaries for whom they could bill consultations. In exchange, these providers agreed to refer beneficiaries to Panda’s laboratories for expensive and medically unnecessary cancer and cardiovascular genetic testing. The case is being prosecuted by Trial Attorney Ligia Markman of the National Rapid Response Strike Force.
- Juan Nava Ruiz, 44, and Eric Frank, 47, both of Coral Springs, Florida, were charged for an alleged $9.3 million health care kickback scheme, along with Christopher Licata, 44, of Boca Raton, Florida, who was previously charged in a separate Indictment. Licata, an owner of Boca Toxicology, LLC, a clinical laboratory based in Boca Raton, allegedly offered and paid kickbacks to patient brokers, including Ruiz and Frank, in exchange for referring Medicare beneficiaries to Boca Toxicology for various forms of genetic testing and other laboratory testing that they did not need, including the submission of $422,748 in claims related to medically unnecessary respiratory pathogen panel testing and genetic testing that was improperly bundled with COVID-19 testing. The cases are being prosecuted by Trial Attorney Jamie de Boer of the Miami Strike Force.
Middle District of Louisiana
- Malena Lepetich, 38, of Belle Chase, Louisiana, was charged for an alleged $15 million scheme to commit health care fraud, to defraud the United States, and to pay and receive health care kickbacks. Lepetich, the owner of MedLogic, LLC, a clinical laboratory based in Baton Rouge, Louisiana, allegedly solicited and received kickbacks in exchange for referrals of urine specimens for medically unnecessary testing. Lepetich also allegedly offered to pay kickbacks for referrals of specimens for COVID-19 and respiratory pathogen testing. Finally, Lepetich allegedly caused the submission of over $10 million in claims to Medicare, Medicaid, and Blue Cross Blue Shield of Louisiana for panels of expensive respiratory testing that was medically unnecessary. The case is being prosecuted by Trial Attorney Justin M. Woodard of the Gulf Coast Strike Force and Assistant U.S. Attorney Kristen Craig of the U.S. Attorney’s Office for the Middle District of Louisiana.
District of New Jersey
- Alexander Baldonado, 65, of Queens, New York, was charged with six counts of health care fraud. Baldonado, a medical doctor, allegedly participated in an event that advertised COVID-19 testing. In addition to authorizing the COVID-19 tests, Baldonado allegedly ordered expensive and medically unnecessary cancer genetic testing for Medicare beneficiaries who attended the event. Baldonado also allegedly billed Medicare for services, including lengthy office visits, that he never provided to these beneficiaries. Approximately $2 million in claims were submitted as a result of Baldonado’s COVID-19 health care fraud scheme, and approximately $17 million in claims were submitted as a result of Baldonado’s broader health care fraud scheme. The case is being prosecuted by Trial Attorney Rebecca Yuan of the National Rapid Response Strike Force.
- Donald Clarkin, 65, of Staten Island, New York, was charged in connection with a $5.4 million conspiracy to defraud the United States and pay and receive health care kickbacks. Clarkin, a partner at a diagnostic testing laboratory, allegedly exploited the pandemic by offering kickbacks in exchange for respiratory pathogen panel tests that would be improperly bundled with COVID-19 tests and billed to Medicare. Clarkin also allegedly paid and received kickbacks and bribes in exchange for arranging for the ordering of medically unnecessary genetic tests that were ineligible for Medicare reimbursement. The case is being prosecuted by Trial Attorney Rebecca Yuan of the National Rapid Response Strike Force.
Eastern District of New York
- Peter Khaim, 41, and Arkadiy Khaimov, 38, both of Forest Hills, New York, who owned and controlled several New York pharmacies and sham pharmacy wholesaling companies, were charged in a superseding indictment for their participation in an alleged $45 million health care fraud, wire fraud, and money laundering scheme. The defendants and their co-conspirators allegedly obtained billing privileges for multiple pharmacies by using nominees to serve as the purported owners and supervising pharmacists. The defendants then allegedly submitted false and fraudulent claims to Medicare, including by using COVID-19 “emergency override” billing codes to circumvent otherwise applicable pre-authorization requirements and limits on the frequency of refills for expensive drugs (primarily, the cancer treatment gels Targretin and Panretin). The defendants allegedly used an elaborate network of international money laundering operations to conceal and disguise the proceeds of the scheme. The case is being prosecuted by Trial Attorney Andrew Estes of the Brooklyn Strike Force.
The Department of Justice needs the public’s assistance in remaining vigilant and reporting suspected fraudulent activity. To report suspected fraud, contact the National Center for Disaster Fraud (NCDF) at (866) 720-5721 or file an online complaint at: https://www.justice.gov/disaster-fraud/webform/ncdf-disaster-complaint-form. Complaints filed will be reviewed at the NCDF and referred to federal, state, local, or international law enforcement or regulatory agencies for investigation.
To learn more about the department’s COVID response, visit: https://www.justice.gov/coronavirus. For further information on the Criminal Division’s enforcement efforts on PPP fraud, including court documents from significant cases, visit the following website: https://www.justice.gov/criminal-fraud/ppp-fraud.
An indictment, complaint, or information is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
DOJ Announces Coordinated Law Enforcement Action to Combat Health Care Fraud Related to COVID-19Read the Press Release
The Department of Justice today announced criminal charges against 14 defendants, including 11 newly-charged defendants and three who were charged in superseding indictments, in seven federal districts across the United States for their alleged participation in various health care fraud schemes that exploited the COVID-19 pandemic and resulted in over $143 million in false billings.
“The multiple health care fraud schemes charged today describe theft from American taxpayers through the exploitation of the national emergency,” said Deputy Attorney General Lisa O. Monaco. “These medical professionals, corporate executives, and others allegedly took advantage of the COVID-19 pandemic to line their own pockets instead of providing needed health care services during this unprecedented time in our country. We are committed to protecting the American people and the critical health care benefits programs created to assist them during this national emergency, and we are determined to hold those who exploit such programs accountable to the fullest extent of the law.”
Additionally, the Center for Program Integrity, Centers for Medicare & Medicaid Services (CPI/CMS) separately announced today that it took adverse administrative actions against over 50 medical providers for their involvement in health care fraud schemes relating to COVID-19 or abuse of CMS programs that were designed to encourage access to medical care during the pandemic.
“Medical providers have been the unsung heroes for the American public throughout the pandemic,” said FBI Director Christopher Wray. “It’s disheartening that some have abused their authorities and committed COVID-19 related fraud against trusting citizens. The FBI, along with our federal law enforcement and private sector partners, are committed to continuing to combat healthcare fraud and protect the American people.”
The defendants in the cases announced today are alleged to have engaged in various health care fraud schemes designed to exploit the COVID-19 pandemic. For example, multiple defendants offered COVID-19 tests to Medicare beneficiaries at senior living facilities, drive-through COVID-19 testing sites, and medical offices to induce the beneficiaries to provide their personal identifying information and a saliva or blood sample. The defendants are alleged to have then misused the information and samples to submit claims to Medicare for unrelated, medically unnecessary, and far more expensive laboratory tests, including cancer genetic testing, allergy testing, and respiratory pathogen panel tests. In some cases, and as alleged, the COVID-19 test results were not provided to the beneficiaries in a timely fashion or were not reliable, risking the further spread of the disease, and the genetic, allergy, and respiratory pathogen testing was medically unnecessary, and, in many cases, the results were not provided to the patients or their actual primary care doctors. The proceeds of the fraudulent schemes were allegedly laundered through shell corporations and used to purchase exotic automobiles and luxury real estate.
“It’s clear fraudsters see the COVID-19 pandemic as a money-making opportunity — creating fraudulent schemes to victimize beneficiaries and steal from federal health care programs,” said Deputy Inspector General for Investigations Gary L. Cantrell of Health and Human Services – Office of Inspector General (HHS-OIG). “Our agency and its law enforcement partners are aggressively and effectively investigating these egregious crimes, which is made equally clear given the results of this takedown. We will continue to support the unprecedented COVID-19 public health effort by holding accountable people who use deceptive tactics to profit from the pandemic.”
In another type of COVID-19 health care fraud scheme announced today, defendants are alleged to have exploited policies that were put in place by CMS to enable increased access to care during the COVID-19 pandemic. For example, pursuant to the COVID-19 emergency declaration, telehealth regulations and rules were broadened so that Medicare beneficiaries could receive a wider range of services from their doctors without having to travel to a medical facility. The cases announced today include first in the nation charges for allegedly exploiting these expanded policies by submitting false and fraudulent claims to Medicare for sham telemedicine encounters that did not occur. As part of these cases, medical professionals are alleged to have offered and paid bribes in exchange for the medical professionals’ referral of medically unnecessary testing.
The law enforcement action today also includes the third set of criminal charges related to the misuse of Provider Relief Fund monies. The Provider Relief Fund is part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a federal law enacted March 2020 designed to provide needed medical care to Americans suffering from COVID-19.
The Fraud Section is prosecuting the cases in the following districts: Western District of Arkansas, Northern District of California, Middle District of Louisiana, Central District of California, Southern District of Florida, District of New Jersey, and the Eastern District of New York.
Today’s enforcement actions were led and coordinated by Assistant Chief Jacob Foster and Trial Attorneys Rebecca Yuan and Gary A. Winters of the National Rapid Response Strike Force of the Health Care Fraud Unit of the Criminal Division’s Fraud Section, in conjunction with the Health Care Fraud Unit’s Medicare Fraud Strike Forces (MFSF) in Miami, Los Angeles, the Gulf Coast, and Brooklyn, as well as the U.S. Attorneys’ Offices for the Northern District of California, Western District of Arkansas, and Middle District of Louisiana.
The MFSF is a partnership among the Criminal Division, U.S. Attorneys’ Offices, the FBI and HHS-OIG. In addition, U.S. Postal Inspection Service, Internal Revenue Service Criminal Investigation, Veterans Affairs Office of Inspector General, Department of Defense Office of Inspector General, Federal Deposit Insurance Corporation, Louisiana Medicaid Fraud Control Unit, and other federal and state law enforcement agencies participated in the law enforcement action.
The law enforcement action was brought in coordination with the Health Care Fraud Unit’s COVID-19 Interagency Working Group, which is chaired by the National Rapid Response Strike Force and organizes efforts to address illegal activity involving health care programs during the pandemic.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 federal districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Case Summaries
Western District of Arkansas
Billy Joe Taylor, 42, of Lavaca, Arkansas, was charged by criminal complaint with health care fraud in connection with an alleged scheme to defraud the United States of over $88 million, including over $42 million in false and fraudulent claims during the COVID-19 health emergency that were billed in combination with claims that were submitted for testing for COVID-19 and other respiratory illnesses. Taylor, the owner and operator of Vitas Laboratories LLC and Beach Tox LLC, two testing laboratories, allegedly used access to beneficiary and medical provider information from prior laboratory testing orders to submit fraudulent claims for urine drug tests and other laboratory tests, including respiratory pathogen panel and COVID-19 tests, that were not actually ordered or performed. The complaint also alleges that hundreds of claims were submitted for beneficiaries after they had died or otherwise ceased providing samples. The case is being prosecuted by Senior Litigation Counsel James Hayes and Trial Attorney D. Keith Clouser of the National Rapid Response Strike Force, and Assistant U.S. Attorney Kenneth Elser of the U.S. Attorney’s Office for the Western District of Arkansas.
Northern District of California
Mark Schena, 58, of Los Altos, California, the president of Arrayit Corporation, is charged along with two others, the Arrayit Vice President of Marketing and the President of an Arizona marketing organization, in connection with the submission of over $70 million in false and fraudulent claims for allergy and COVID-19 testing. The superseding indictment against Schena includes new counts of health care fraud, a conspiracy to pay kickbacks, and payment of kickbacks in connection with false and fraudulent statements about the existence, regulatory status, and accuracy of an Arrayit COVID-19 test. The conspiracy allegedly sought to induce the ordering of the Arrayit COVID-19 test and to bundle, i.e., require combination with, the COVID-19 test and Arrayit’s medically unnecessary allergy test. The COVID-19 test results were not provided in a timely fashion and were not reliable in detecting COVID-19. The cases are being prosecuted by Acting Principal Deputy Assistant Chief Justin Weitz of the Market Integrity and Major Fraud Unit of the Fraud Section, Assistant Chief Jacob Foster of the National Rapid Response Strike Force, and Assistant U.S. Attorney Wil Frentzen of the U.S. Attorney’s Office for the Northern District of California.
Central District of California
Petros Hannesyan, 36, of Burbank, California, was charged with the theft of government property and wire fraud in connection with $229,454 that he obtained from COVID-19 relief programs. Hannesyan, the owner of Hollywood Home Health Services, Inc., a home health agency located in Los Angeles, allegedly misappropriated funds from the CARES Act Provider Relief Fund and submitted false loan applications and a false loan agreement to the Economic Injury Disaster Loan Program, rather than use the funds for COVID-19 patient care and to support small businesses experiencing disruption due to the COVID-19 pandemic. The case is being prosecuted by Trial Attorney Alexis Gregorian of the Los Angeles Strike Force.
Southern District of Florida
Michael Stein, 35, and Leonel Palatnik, 42, both of Palm Beach County, Florida, were charged in connection with an alleged $73 million conspiracy to defraud the United States and to pay and receive health care kickbacks during the COVID-19 pandemic. Stein, the owner and operator of purported consulting company 1523 Holdings, LLC, and Palatnik, an owner and operator of Panda Conservation Group, LLC, a Texas company that owned and operated testing laboratories in Dallas and Denton, Texas, allegedly exploited temporary waivers of telehealth restrictions enacted during the pandemic by offering telehealth providers access to Medicare beneficiaries for whom they could bill consultations. In exchange, these providers agreed to refer beneficiaries to Panda’s laboratories for expensive and medically unnecessary cancer and cardiovascular genetic testing. The case is being prosecuted by Trial Attorney Ligia Markman of the National Rapid Response Strike Force.
Juan Nava Ruiz, 44, and Eric Frank, 47, both of Coral Springs, Florida, were charged for an alleged $9.3 million health care kickback scheme, along with Christopher Licata, 44, of Boca Raton, Florida, who was previously charged in a separate Indictment. Licata, an owner of Boca Toxicology, LLC, a clinical laboratory based in Boca Raton, allegedly offered and paid kickbacks to patient brokers, including Ruiz and Frank, in exchange for referring Medicare beneficiaries to Boca Toxicology for various forms of genetic testing and other laboratory testing that they did not need, including the submission of $422,748 in claims related to medically unnecessary respiratory pathogen panel testing and genetic testing that was improperly bundled with COVID-19 testing. The cases are being prosecuted by Trial Attorney Jamie de Boer of the Miami Strike Force.
Middle District of Louisiana
Malena Lepetich, 38, of Belle Chase, Louisiana, was charged for an alleged $15 million scheme to commit health care fraud, to defraud the United States, and to pay and receive health care kickbacks. Lepetich, the owner of MedLogic, LLC, a clinical laboratory based in Baton Rouge, Louisiana, allegedly solicited and received kickbacks in exchange for referrals of urine specimens for medically unnecessary testing. Lepetich also allegedly offered to pay kickbacks for referrals of specimens for COVID-19 and respiratory pathogen testing. Finally, Lepetich allegedly caused the submission of over $10 million in claims to Medicare, Medicaid, and Blue Cross Blue Shield of Louisiana for panels of expensive respiratory testing that was medically unnecessary. The case is being prosecuted by Trial Attorney Justin M. Woodard of the Gulf Coast Strike Force and Assistant U.S. Attorney Kristen Craig of the U.S. Attorney’s Office for the Middle District of Louisiana.
District of New Jersey
Alexander Baldonado, 65, of Queens, New York, was charged with six counts of health care fraud. Baldonado, a medical doctor, allegedly participated in an event that advertised COVID-19 testing. In addition to authorizing the COVID-19 tests, Baldonado allegedly ordered expensive and medically unnecessary cancer genetic testing for Medicare beneficiaries who attended the event. Baldonado also allegedly billed Medicare for services, including lengthy office visits, that he never provided to these beneficiaries. Approximately $2 million in claims were submitted as a result of Baldonado’s COVID-19 health care fraud scheme, and approximately $17 million in claims were submitted as a result of Baldonado’s broader health care fraud scheme. The case is being prosecuted by Trial Attorney Rebecca Yuan of the National Rapid Response Strike Force.
Donald Clarkin, 65, of Staten Island, New York, was charged in connection with a $5.4 million conspiracy to defraud the United States and pay and receive health care kickbacks. Clarkin, a partner at a diagnostic testing laboratory, allegedly exploited the pandemic by offering kickbacks in exchange for respiratory pathogen panel tests that would be improperly bundled with COVID-19 tests and billed to Medicare. Clarkin also allegedly paid and received kickbacks and bribes in exchange for arranging for the ordering of medically unnecessary genetic tests that were ineligible for Medicare reimbursement. The case is being prosecuted by Trial Attorney Rebecca Yuan of the National Rapid Response Strike Force.
Eastern District of New York
Peter Khaim, 41, and Arkadiy Khaimov, 38, both of Forest Hills, New York, who owned and controlled several New York pharmacies and sham pharmacy wholesaling companies, were charged in a superseding indictment for their participation in an alleged $45 million health care fraud, wire fraud, and money laundering scheme. The defendants and their co-conspirators allegedly obtained billing privileges for multiple pharmacies by using nominees to serve as the purported owners and supervising pharmacists. The defendants then allegedly submitted false and fraudulent claims to Medicare, including by using COVID-19 “emergency override” billing codes to circumvent otherwise applicable pre-authorization requirements and limits on the frequency of refills for expensive drugs (primarily, the cancer treatment gels Targretin and Panretin). The defendants allegedly used an elaborate network of international money laundering operations to conceal and disguise the proceeds of the scheme. The case is being prosecuted by Trial Attorney Andrew Estes of the Brooklyn Strike Force.
The Department of Justice needs the public’s assistance in remaining vigilant and reporting suspected fraudulent activity. To report suspected fraud, contact the National Center for Disaster Fraud (NCDF) at (866) 720-5721 or file an online complaint at: https://www.justice.gov/disaster-fraud/webform/ncdf-disaster-complaint-form. Complaints filed will be reviewed at the NCDF and referred to federal, state, local, or international law enforcement or regulatory agencies for investigation.
To learn more about the department’s COVID response, visit: https://www.justice.gov/coronavirus. For further information on the Criminal Division’s enforcement efforts on PPP fraud, including court documents from significant cases, visit the following website: https://www.justice.gov/criminal-fraud/ppp-fraud.
An indictment, complaint, or information is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Convicted Felon Who Was a Repeat Possessor of Guns Sentenced to over Seven Years in PrisonRead the Press Release
A Waterloo convicted felon who possessed a gun was sentenced today to 94 months in prison.
Jason John Evans, age 39, from Waterloo, Iowa, received the prison sentence after a December 8, 2020 guilty plea to possession of a firearm by a felon.
Information disclosed at sentencing and in a plea agreement show that in July 2020, law enforcement searched Evans’ home. During the search, officers located a loaded gun, ammunition, approximately one ounce of marijuana, and drug paraphernalia. At the time, Evans was a convicted felon, having previously been convicted of felon in possession of a firearm and possession of a sawed-off shotgun in federal court.
Evans was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Evans was sentenced to 94 months’ imprisonment. He was ordered to make payment of $100 to the special assessment fund. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorney Ashley Corkery and investigated by the Mid-Iowa Task Force (Marshall County Sheriff’s Office, Tama County Sheriff’s Office, Marshalltown Police Department), the Iowa National Guard and Counter Drug Program, the Tri-County Task Force (Cedar Falls Police Department, Waterloo Police Department, Black Hawk County Sheriff’s Office), the Federal Bureau of Investigation, the FBI Safe Streets Task Force, the Drug Enforcement Administration, the Iowa Division of Narcotics Enforcement, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number 20-CR-2036.
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Convicted Felon Pleads Guilty to Possession with Intent to Distribute Kilogram of CocaineRead the Press Release
BOSTON – A Clinton man previously convicted in federal court of cocaine conspiracy pleaded guilty today to cocaine offenses.
Emmanuelli Rojas-Moraza, 40, pleaded guilty to one count of possession with intent to distribute 500 grams or more of cocaine and one count of use of a communications facility in connection with a narcotics offense. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for Sept. 14, 2021. Rojas-Moraza was indicted in March 2020.
In January 2020, agents seized approximately one kilogram of cocaine inside a package sent from Puerto Rico and addressed to Rojas-Moraza’s residence in Clinton. After picking up the package from the local post office, Rojas-Moraza was arrested and taken into federal custody. During a search of Rojas-Moraza’s residence following his arrest, agents recovered drug packaging tools and materials.
Because Rojas-Moraza has a prior drug conviction, the charge of possession with intent distribute 500 grams of cocaine provides for a sentence of up to 40 years in prison, four years of supervised release and a fine of $5 million. The charge of use of a communications facility provides for a sentence of eight years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Joshua McCallister, Acting Inspector in Charge of the U.S. Postal Inspection Service; and Clinton Police Chief Mark R. Laverdure made the announcement today. Assistant U.S. Attorney John T. Mulcahy of Mendell’s Worcester Branch Office is prosecuting the case.
Company Owner Pleads Guilty to Falsifying Pension Contribution ReportsRead the Press Release
BOSTON – An owner of a New Hampshire asbestos abatement company pleaded guilty yesterday in federal court in Boston to making false statements to employee pension plans.
Gary McCaffrey, 66, of Salem, N.H., pleaded guilty to one count of making false statements to a pension plan covered by the Employee Retirement Income Security Act. U.S. Senior District Court Judge Douglas P. Woodlock scheduled sentencing for Aug. 30, 2021.
McCaffrey and co-defendant Richard Quinn owned and operated Absolute Environmental Inc., an asbestos abatement company. Between November 2014 and May 2017, McCaffrey and Quinn continued to employ several undocumented individuals after being notified of their status. During this time period, McCaffrey and Quinn knowingly falsified reports to pension plans about the work performed by the undocumented individuals, failing to make required pension contributions of over $337,000.
Quinn pleaded guilty on May 3, 2021 and is scheduled to be sentenced on Aug. 30, 2021.
Pursuant to McCaffrey’s plea agreement, the government will recommend a sentence of two years of supervised release, six months of home confinement and a fine of $10,000 to $25,000.
The charging statute provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Nikitas Splagounias, Acting Special Agent in Charge of the U.S. Department of Labor, Office of the Inspector General, Office of Investigations, Labor Racketeering and Fraud, New York Region; and Carol Hamilton, Boston Regional Director of the Employee Benefits Security Administration made the announcement today. Assistant U.S. Attorney Mark Grady of Mendell’s Public Corruption & Special Prosecutions Unit is prosecuting the case.
Clendenin Man Sentenced to Federal Prison for Gun CrimeRead the Press Release
CHARLESTON, W.Va. – Terry L. Spradlin, 34, of Clendenin was sentenced to 24 months in federal prison for being a felon in possession of a firearm.
According to court documents, on August 31, 2019 officers with the Dunbar Police Department encountered Spradlin before opening hours in Shawnee Park in Dunbar. Spradlin possessed a firearm which he had strapped in a holster. Spradlin admitted he was in possession of the firearm and that he knew he was prohibited from possessing firearms because he had a prior felony conviction for first degree robbery in Roane County Circuit Court.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Dunbar Police Department.
United States District Judge Joseph R. Goodwin imposed the sentence. Assistant United States Attorney Negar M. Kordestani handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:20-cr-0161.
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Charlotte Man Is Sentenced to 2 ½ Years in Prison for Aggravated Identity TheftRead the Press Release
CHARLOTTE, N.C. – U.S. District Judge Max O. Cogburn Jr. sentenced Twyjuan Demetric Jenkins, 29, of Charlotte, to 30 months in prison for aggravated identity theft charges, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, Judge Cogburn ordered Jenkins to remain under court supervision for a period of three years after he is released from prison, and to pay $75,150 in restitution.
On May 19, 2021, Judge Cogburn sentenced Jenkins’ co-defendant, Andrell Nachef Walker, 23, also of Charlotte, to 37 months in prison and three years of supervised release for his role in the scheme. Walker was also ordered to pay $75,150 in restitution, jointly and severally with Jenkins. The charges against a third co-defendant, Tyquis Syjuan Jenkins, are still pending.
According to filed court documents and statements made in court, from 2018 to May 2020, Twyjuan Jenkins, Tyquis Jenkins, and Walker were involved in an identity theft and fraud ring operating in and around Mecklenburg County. Court records show that the defendants used the stolen personal identifying information (PII) of actual persons, such as their names, dates of birth, Social Security numbers, and addresses, to withdraw and attempt to withdraw cash at banks, lease apartments, rent hotel rooms, and make and attempt to make fraudulent purchases of goods and services in excess of $95,000. Court documents also show that the co-conspirators, each of whom is a previously convicted felon, also used the stolen PII to obtain, possess, and use firearms and ammunition at two different shooting ranges in Mecklenburg County.
Twyjuan Demetric Jenkins previously pleaded guilty to conspiracy to commit aggravated identity theft and aggravated identity theft. Walker pleaded guilty to possession of a firearm by a felon.
Tyquis Syjuan Jenkins is charged in this case with conspiracy to commit identity theft, conspiracy to commit bank and wire fraud, bank fraud, making a false statement during the acquisition of a firearm, aggravated identity theft, possession of a firearm by a convicted felon. The charges against him are still pending and they are allegations. The defendant is presumed innocent until proven guilty beyond reasonable doubt in a court of law.
In making today’s announcement, Acting U.S. Attorney Stetzer thanked the Charlotte-Mecklenburg Police Department, the U.S. Postal Inspection Service, and the Bureau of Alcohol, Tobacco, Firearms & Explosives for their investigation of this case.
Assistant U.S. Attorney Michael E. Savage, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
California Man Convicted by Alaska Jury of Multiple Drug Trafficking and Firearm OffensesRead the Press Release
ANCHORAGE – A federal jury convicted a Compton, California, man yesterday for possession of methamphetamine with intent to distribute, attempted distribution of methamphetamine and cocaine, maintaining a place for drug purposes and illegally possessing firearms. The convictions followed a five-day jury trial before Chief United States District Judge Timothy M. Burgess.
According to court documents and evidence presented at trial, Antoine Lapoleon Davis aka “Shorty,” 48, trafficked large amounts of methamphetamine, heroin, cocaine and crack cocaine to Alaska through the U.S. mail and distributed it in the Anchorage area during 2017 and 2018.
The Federal Bureau of Investigation (FBI) executed a search warrant on Davis’s Anchorage apartment on October 4, 2018, where they seized methamphetamine, heroin, cocaine, crack cocaine, four firearms and other drug dealing paraphernalia. Davis later told the FBI that he distributed nearly three kilograms of methamphetamine and half a kilogram of cocaine per month as well as heroin and crack cocaine. He also stated that he obtained the firearms found in his apartment to defend his drug supply. The firearms included three handguns and a semi-automatic rifle that Davis referred to as a “chopper.”
Davis also mailed two parcels containing drugs and guns that were intercepted by the U.S. Postal Inspectors in 2017. One parcel sent from Anchorage to Arizona contained methamphetamine, meth pills, and multiple firearms. The second package sent from California to Anchorage contained nearly two kilograms of methamphetamine and cocaine. Investigators linked Davis to the two parcels through forensic fingerprinting and handwriting analysis as well as post office surveillance footage.
Davis faces a mandatory minimum sentence of 20 years in prison and a maximum sentence of up to life in prison based on his prior criminal history and convictions of drug trafficking. A federal district court judge will determine the sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney Bryan Wilson of the District of Alaska made the announcement.
The FBI Safe Streets Task Force, the United States Postal Inspection Service (USPIS), the U.S. Bureau of Alcohol, Firearms and Explosives (ATF) and the Anchorage Police Department (APD) investigated the case.
Assistant U.S. Attorneys Ryan Tansey, Kayla Doyle and Jennifer Ivers prosecuted the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Bulgarian National Sentenced for ATM SkimmingRead the Press Release
BOSTON – A Bulgarian national was sentenced today in connection with a scheme to create counterfeit ATM cards and to withdraw money from the bank accounts of unsuspecting customers.
Georgi Kanev, 33, a Bulgarian national, was sentenced by U.S. District Court Judge Leo T. Sorokin to 30 months in prison and restitution to be determined at a later date. On March 16, 2021, Kanev pleaded guilty to conspiracy to commit access device fraud and aggravated identity theft.
Kanev and a co-conspirator installed skimmers and cameras on two Martha’s Vineyard Savings Bank ATMs over a period of approximately four weeks in July and August 2013. The devices allowed the conspirators to obtain magnetic strip information and PIN numbers from ATM customers. The information was then used to create counterfeit ATM cards to withdraw funds from the compromised accounts.
Acting United States Attorney Nathaniel R. Mendell and Frederick J. Regan, Special Agent in Charge of the U.S. Secret Service, Boston Field Office made the announcement today. Valuable assistance was provided by the Edgartown Police Department and the Oak Bluffs Police Department. Assistant U.S. Attorney Mackenzie A. Queenin of Mendell’s Securities, Financial & Cyber Fraud Unit prosecuted the case.
The details contained in the charging document are allegations. The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Brooklyn Man Pleads Guilty to Conspiring to Commit COVID-19 Relief FraudRead the Press Release
SYRACUSE, NEW YORK – Sean M. Andre, age 31, of Brooklyn, New York, pled guilty yesterday to conspiring with an Ulster County man to fraudulently obtain more than $5.6 million in government-backed loans meant for businesses struggling with the financial effects of the coronavirus pandemic.
The announcement was made by Acting United States Attorney Antoinette T. Bacon; Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); Jonathan D. Larsen, Special Agent in Charge, New York Field Office, Internal Revenue Service (IRS)-Criminal Investigation; and Amaleka McCall-Brathwaite, Special Agent in Charge of the Eastern Region of the Office of Inspector General for the Small Business Administration (SBA-OIG).
Andre pled guilty to conspiring to commit bank fraud and conspiring to commit wire fraud. He admitted to helping an Ulster County man obtain $4,309,581 in Paycheck Protection Program (PPP) loans between June and August 2020, by submitting fraudulent loan applications in the names of four companies that the Ulster County man controlled. Each loan application misrepresented the number of employees, and total payroll, that each company had, and included false corporate tax documents that Andre created as part of the scheme. Andre was paid $157,578 for his role in the scheme.
Andre also admitted that he fraudulently obtained an additional $1,309,754 in pandemic relief loans, by submitting loan applications, and receiving loans, in the names of companies he controlled. In these loan applications, Andre lied about the number of employees, and total payroll, that his companies had.
Andre faces up to 30 years in prison and up to 5 years of post-imprisonment supervised release, when Chief United States District Judge Glenn T. Suddaby sentences him on September 23, 2021 in Albany. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
Andre also agreed to pay $1,309,754 in restitution, representing the fraud proceeds he personally received, and to forfeit five bank accounts and a 2019 Mercedes Benz GLS.
This case is being investigated by the FBI, as well as IRS-CI and SBA-OIG, and is being prosecuted by Assistant U.S. Attorneys Michael Barnett and Joshua R. Rosenthal.
Birmingham Man Sentenced for Making Unapproved Drug ProductsRead the Press Release
BIRMINGHAM, Ala. – A Birmingham man was sentenced today for his role in making unapproved drug products in his kitchen and warehouse, and then marketing and selling them as a cancer treatment, announced U.S. Attorney Prim F. Escalona and FDA Office of Criminal Investigations, Miami Field Office Special Agent in Charge Justin C. Fielder.
U.S. Senior District Judge Karen O. Bowdre sentenced Patrick Charles Bishop, 54, to 30 months in prison followed by three years’ supervised release for conspiracy to fraudulently introduce adulterated drugs and misbranded drugs into interstate commerce. Judge Bowdre also ordered Bishop to forfeit $900,000 in proceeds from his crimes. Bishop pleaded guilty to the charge in January.
“The defendant posed a dangerous threat to patients who thought they were receiving an approved and effective treatment for cancer,” U.S. Attorney Escalona said. “My office will continue to prosecute those who deceive the public by selling unapproved drug products.”
“The FDA’s requirements are designed to ensure that patients receive safe and effective medical treatments. Evading the FDA process and distributing unapproved, adulterated, and misbranded drugs to vulnerable Americans will not be tolerated,” said Special Agent in Charge Justin C. Fielder, FDA Office of Criminal Investigations, Miami Field Office. “Today’s announcement serves as a reminder of FDA’s continued focus on protecting the public health of the nation.”
According to the plea agreement, Bishop ran a business that made, marketed, sold, and distributed products purportedly containing a peptide called PNC-27, and purportedly effective in treating cancer. During 2015 and 2016, Bishop received millions of dollars from sales of PNC-27 products.
PNC-27 has not been approved by the FDA for use in the United States as a drug to treat any disease, including cancer; nor has PNC-27 undergone clinical trials in the United States. Bishop took steps to conceal these activities from the FDA and others. Bishop used the business name Best Peptide Supply, LLC, to buy PNC-27 from a Chinese supplier, and a different business name, Immuno Cellular Restoration Program, Inc., to sell PNC-27 products to others. He described his distribution of PNC-27 products as part of a research effort and promoted himself as a research director. Bishop had no formal training or education in medicine or the treatment of diseases.
Bishop repeatedly assured his Chinese supplier that he would use the peptide solely for laboratory research purposes. In reality, he used the peptide to make homemade suppositories in his kitchen in Birmingham, and at a warehouse he rented in Pelham, and then marketed and sold those products as a cancer treatment. The kitchen and warehouse were not sterile and the process of making the suppositories did not comply with current good manufacturing practices.
The FDA’s Office of Criminal Investigation investigated the case, which Assistant U.S. Attorney J.B. Ward is prosecuting.
Billings Man Sentenced to Six Years in Prison for Trafficking MethRead the Press Release
BILLINGS – A Billings man who admitted to trafficking methamphetamine and heroin was sentenced today to 72 months in prison followed by 4 years of supervised release, Acting U.S. Attorney Leif M. Johnson said.
Christopher Dennis Shelton, 43, pleaded guilty on November 23, 2020 to possession with intent to distribute methamphetamine.
U.S. District Judge Susan P. Watters presided. Shelton was detained.
In court documents filed in the case, the government alleged that in July 2019, Shelton, after being found in possession of a stolen trailer, fled with his co-defendant, Susan Wilkinson, in a truck that contained 56 grams of meth and 22 grams of heroin. Later that day, Shelton and Wilkinson attempted to escape from law enforcement in a grocery store parking lot by entering a stranger’s vehicle and seeking help. When the stranger refused, Shelton fled on foot while Wilkinson was arrested. Wilkinson pleaded guilty in the case and was sentenced to five years in prison.
Assistant U.S. Attorney Karla E. Painter prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
Attorney General Merrick B. Garland Announces New Effort to Reduce Violent CrimeRead the Press Release
WASHINGTON - Attorney General Merrick B. Garland today announced a new Department of Justice effort to help protect our communities from the recent increase in major violent crimes.
“Today, we renew our commitment to reducing violent crime and building strong communities where all Americans are safe,” said Attorney General Garland. “The Deputy Attorney General is issuing a comprehensive strategy to deploy our federal resources in the most effective way, disrupting the most dangerous threats and supporting the ground-level efforts of local law enforcement. In this endeavor, we will engage our communities as critical partners. And through our grantmaking, we will support programming at all stages – from the earliest violence interruption strategies to post-conviction reentry services.”
The strategy announced today is three-pronged. First, it establishes a set of four fundamental principles to be applied Department-wide to guide violent crime reduction:
- Build trust and earn legitimacy. Meaningful law enforcement engagement with, and accountability to, the community are essential underpinnings of any effective strategy to address violent crime, as well as important ends in themselves. Accordingly, building trust and earning legitimacy within our communities is the foundation on which the strategy is built.
- Invest in prevention and intervention programs. Violent crime is not a problem that can be solved by law enforcement alone. Accordingly, the Department must invest in community-based violence prevention and intervention programs that work to keep violence from happening before it occurs.
- Target enforcement efforts and priorities. The Department is most effective when it focuses its limited enforcement resources on identifying, investigating, and prosecuting the most significant drivers of gun violence and other violent crime.
- Measure results. Because the fundamental goal of this work is to reduce the level of violence in our communities, not to increase the number of arrests or prosecutions as if they were ends in themselves—we must measure the results of our efforts on these grounds.
The whole-of-Department approach means that these four fundamental principles will guide not only the Department’s 94 U.S. Attorneys’ offices, but also its law enforcement components (the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), and the United States Marshals Service (USMS)), its grant-making components (the Office of Justice Programs (OJP), the Office of Community Oriented Policing Services (COPS), and the Office of Victims of Crime (OVC)), and litigating divisions, such as the Criminal Division.
Second, the strategy enhances the Project Safe Neighborhoods (PSN) program by directing all U.S. Attorneys across the country to update their PSN programs to be aligned with the Department’s guiding principles to improve community engagement, support proven community-violence intervention programs, develop strategic enforcement plans in coordination with state, local, and Tribal law enforcement partners as well as community groups, and measure the effectiveness of these collective efforts to reduce violence. By drawing on lessons learned from research and experience over the past two decades, the Department will help ensure that PSN remains the leading initiative bringing together law enforcement partners at all levels and a broad array of community stakeholders to develop comprehensive solutions to the more pressing violent crime problems in our communities.
Third, the strategy directs each U.S. Attorney’s Office to work with its state, local, federal, Tribal, and community partners to establish an immediate plan to address spikes in violent crime that are typically seen during the summer.
The Department recognizes that there is no one-size-fits-all solution and that the needs of each jurisdiction will vary based on the nature of violent crimes and the ability of local criminal justice systems to respond. Thus, the Department has committed to providing the following additional support where it is needed and appropriate:
- The FBI will make available cutting-edge analytical resources to support state and local law enforcement efforts to identify the most violent offenders and most dangerous criminal organizations in communities. The FBI will then deploy agents to assist with enforcement operations targeting these entities.
- Where feasible, the ATF will embed with local homicide units and expand the availability of its NIBIN Correlation Center, which matches ballistics from crime scenes to other ballistic evidence nationwide.
- The DEA will focus its efforts, in coordination with state, local and Tribal law enforcement, to disrupt the activities of the most violent drug trafficking gangs and egregious drug-trafficking organizations operating in the highest-crime areas.
- The United States Marshals Service, in coordination with state and local authorities, will conduct fugitive sweeps throughout the country focused on individuals subject to state or local warrants for homicide, aggravated assault with a firearm, aggravated robbery, robbery with a firearm, rape or aggravated sexual assault.
- The Department’s grantmaking components will highlight funding opportunities for community programs focused on reducing gun violence and other violent crime, share information about effective community-violence intervention programs, and provide training and technical assistance to support the violent crime reduction work of state, local, tribal and community partners.
To learn more, see the Deputy Attorney General’s detailed guidance to federal prosecutors, law enforcement agencies, and other components across the Department of Justice. A Fact Sheet on 2021 Grant Opportunities and Other Resources to Support Violent Crime Reduction can be found here.
Ashburnham Man Sentenced for Firearms OffensesRead the Press Release
BOSTON – An Ashburnham man was sentenced today in federal court in Worcester for selling firearms on three occasions in 2019 in Fitchburg.
Terrick Bishoff, 40, was sentenced by U.S. District Court Judge Timothy S. Hillman to five years in prison and three years of supervised release. In July 2020, Bishoff pleaded guilty to one count each of unlawful possession or transfer of a machine gun, dealing in firearms without a license and possession of a machinegun without a serial number.
On three separate occasions in 2019, Bishoff sold firearms to a buyer he did not know in Fitchburg. On May 10, 2019, Bishoff sold a Glock-style pistol without a serial number and 54 rounds of 9mm ammunition in exchange for $580. Bishoff told the buyer that the firearm was “untraceable” and that it had been custom made for a silencer. On May 15, 2019, Bishoff again met with the buyer and sold him a machinegun without a serial number and a 25-round magazine. In return, the buyer paid Bishoff $2,500. On June 24, 2019, Bishoff sold the buyer a Glock-style firearm without a serial number and a magazine in exchange for $800. Bishoff told the buyer he was getting what he could before authorities started cracking down on firearms without serial numbers.
Acting United States Attorney Nathaniel R. Mendell; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Ashburnham Police Chief Lorring Barrett, Jr.; Worcester Police Chief Steven M. Sargent; and Hopkinton Police Chief Joseph Bennett made the announcement. Assistant U.S. Attorneys Michelle L. Dineen Jerrett and Kristen Noto of Mendell’s Worcester Branch Office prosecuted the case.
Arrest Made in the Overdose Death of a Henderson County Kentucky WomanRead the Press Release
EVANSVILLE - An Evansville man was arrested on May 21st, 2021 in Evansville on charges related to his alleged distribution of controlled substances to a Henderson County Kentucky woman found dead at a Reed, Kentucky residence in February 2021.
According to court documents, in December 2020, deputies with the Henderson County Sheriff’s Office and officers from the Pennyrile Narcotics Task Force responded to a residence for a suspected heroin overdose of a 28-year-old female named Lindsey Wiley. Wiley was transported to the hospital while officers recovered a variety of controlled substances from the residence. Wiley recovered and later spoke with law enforcement. Officer’s learned that Wiley had overdosed on heroin that she obtained from a “guy in Evansville”.
In February 2021, EMS and law enforcement again responded to Wiley’s residence for an overdose and found that Wiley was deceased. Officers collected evidence that Wiley had traveled to Evansville the night before her death, returned home, went to her room, and never left before her body was discovered. Investigators discovered Wiley made several monetary transactions, to include the times she overdosed, and had conversations about illegal drug purchases with a 28-year-old Evansville man named Johntavis Matlock.
Matlock is charged with Distribution of a Controlled Substance Causing Serious Bodily Injury and Distribution of a Controlled Substance Causing Death. If convicted Matlock faces a mandatory minimum of 20 years and up to a maximum term of life in federal prison, at least 5 years of supervised release, and a $1,000,000 fine. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney John E. Childress of the Southern District of Indiana; and DEA Assistant Special Agent in Charge J. Michael Gannon made the announcement today at a press conference held at the Winfield K. Denton Federal Building and U.S. Courthouse in Evansville.
The Drug Enforcement Administration, the Evansville-Vanderburgh County Drug Task Force, the Pennyrile Narcotics Task Force, and the Henderson County Sheriff’s Office investigated the case.
Assistant U.S. Attorney Kristian Mukoski is prosecuting the case and said that Matlock made his first appearance in court before a U.S. Magistrate Judge in Evansville on May 24th, 2021. Matlock is scheduled for a detention and probable cause hearing at 2:30 p.m. on May 27th, 2021 in the Evansville District Court before Magistrate Judge Matthew P. Brookman.
A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
9 Department of Correction Officers and Employees Charged with Taking Bribes to Smuggle Contraband to Inmates at New York City JailsRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and Margaret Garnett, Commissioner of the New York City Department of Investigation (“DOI”), announced the unsealing of indictments charging nine current and former employees and officers of the New York City Department of Correction with taking cash bribes in return for smuggling contraband such as scalpels, razor blades, drugs, alcohol, and cellphones to inmates in New York City area jails. Nine defendants were arrested today and will be presented before United States Magistrate Judges. Seven defendants were arrested in New York, one defendant in Pennsylvania, and one defendant in Virginia.
U.S. Attorney Audrey Strauss said: “These defendants were responsible for maintaining a safe and orderly environment in New York City’s jails. Instead, as alleged, they abused their positions to enrich themselves by smuggling weapons, drugs, and other dangerous contraband in return for thousands of dollars of cash bribes. This alleged activity violated the defendants’ duties, and endangered the inmates they were charged to supervise and guard.”
FBI Assistant Director William F. Sweeney Jr. said: “The nine defendants charged today risked the safety and security of their colleagues and others within the New York City Department of Correction when they carelessly decided to smuggle contraband into our jails, as we allege today. We shouldn’t have to remind public servants that accepting bribes while conducting illegal activity could constitute a federal crime, but when necessary, that’s exactly what we’ll do.”
DOI Commissioner Margaret Garnett said: “These charged crimes involving contraband smuggling and bribery by City Correction officers and employees reflect the pernicious and damaging impact of corruption. Correction officers and staff should protect the integrity of the jails, not promote lawlessness and violence by accepting bribes in return for trafficking drugs, scalpels, razor blades, cell phones, and other contraband – all highly valued, illegal items that undermine order in the jails and compromise the safety of other correction officers and inmates. DOI thanks the FBI and the U.S. Attorney’s Office for the Southern District of New York for their partnership on these significant investigations.”
According to the allegations in the Indictments[1] unsealed today:
MIGUEL COMPRES, 35, of New York, New York, abused his position as a correction officer to smuggle scalpels, smokable synthetic cannabinoids, often referred to as “K2” or “Spice,” cellphones, and large quantities of cigarettes into the Manhattan Detention Complex in downtown Manhattan, in return for over $6,000 in bribes, from at least in or about November 2019 up through and including in or about August 2020. He is charged with one count of conspiracy to commit federal crimes, which carries a maximum sentence of five years in prison, one count of federal program bribery, which carries a maximum sentence of 10 years in prison, and one count of honest services wire fraud, which carries a maximum sentence of 20 years in prison.
TAMEKA LEWIS, 41, of Brooklyn, New York, abused her position as a counselor with the Department of Correction to smuggle K2 and other contraband into the Otis Bantum Correctional Center on Rikers Island, in return for over $40,000 in bribes, from at least in or about June 2019 up through and including in or about September 2020. She is charged with one count of conspiracy to commit federal crimes, which carries a maximum sentence of five years in prison, one count of federal program bribery, which carries a maximum sentence of 10 years in prison, one count of honest services wire fraud, which carries a maximum sentence of 20 years in prison, and one count of distribution of a controlled substances analogue, which carries a maximum sentence of 20 years in prison.
DARIEL DIAZ, 33, of Reading, Pennsylvania, abused his position as a correction officer to smuggle K2, a cellphone, and large quantities of cigarettes into the George R. Vierno Center on Rikers Island, in return for over $8,000 in bribes, from at least in or about March 2020 up through and including in or about September 2020. He is charged with one count of conspiracy to commit federal crimes, which carries a maximum sentence of five years in prison, one count of federal program bribery, which carries a maximum sentence of 10 years in prison, and one count of honest services wire fraud, which carries a maximum sentence of 20 years in prison.
JASMINE REED, 34, of Norfolk, Virginia, abused her position as an exterminator with the Department of Correction to smuggle a razor, K2, marijuana, cigarettes, a cellphone, and other contraband into the Manhattan Detention Complex in downtown Manhattan in return for cash bribes, from at least in or about September 2019 up through and including in or about December 2019. She is charged with one count of conspiracy to commit federal crimes, which carries a maximum sentence of five years in prison, one count of honest services wire fraud, which carries a maximum sentence of 20 years in prison, and one count of distribution of a controlled substance, which carries a maximum sentence of 20 years in prison.
TEMAINE PELZER, 45, of Brooklyn, New York, abused his position as a correction officer to smuggle cigarettes and other contraband into the Manhattan Detention Complex, in return for over $8,000 in bribes, from at least in or about August 2019 up through and including in or about February 2020. He is charged with one count of conspiracy to commit federal crimes, which carries a maximum sentence of five years in prison, one count of federal program bribery, which carries a maximum sentence of 10 years in prison, and one count of honest services wire fraud, which carries a maximum sentence of 20 years in prison.
BRIAN HARRELL, 60, of Pelham, New York, abused his position as a correction officer to smuggle K2, alcohol, cigarettes, and other contraband into the Manhattan Detention Complex, in return for over $6,500 in bribes, from at least in or about May 2020 up through and including in or about June 2020. He is charged with one count of conspiracy to commit federal crimes, which carries a maximum sentence of five years in prison, one count of federal program bribery, which carries a maximum sentence of 10 years in prison, one count of honest services wire fraud, which carries a maximum sentence of 20 years in prison, and one count of distribution of a controlled substances analogue, which carries a maximum sentence of 20 years in prison.
RASHAWN ASSANAH, 25, of Queens, New York, abused his position as a correction officer to smuggle a cellphone, a large quantity of cigarettes, and other contraband into the Robert N. Davoren Center on Rikers Island, in return for over $7,500 in bribes, from at least in or about November 2020 up through and including in or about February 2021. He is charged with one count of conspiracy to commit federal crimes, which carries a maximum sentence of five years in prison, one count of federal program bribery, which carries a maximum sentence of 10 years in prison, and one count of honest services wire fraud, which carries a maximum sentence of 20 years in prison.
ROBERT BALDUCCI, 33, of the Bronx, New York, abused his position as a correction officer to smuggle razor blades, marijuana, and other contraband into the Otis Bantum Correctional Center on Rikers Island, in return for at least $5,000 in bribes, in or about October 2020. He is charged with one count of conspiracy to commit federal crimes, which carries a maximum sentence of five years in prison, one count of federal program bribery, which carries a maximum sentence of 10 years in prison, and one count of honest services wire fraud, which carries a maximum sentence of 20 years in prison.
JOHNATHAN GARRETT, 32, of Brooklyn, New York, abused his position as a correction officer to smuggle methamphetamine, K2, and other contraband into the Anna M. Kross Center on Rikers Island, in return for at least $5,000 in bribes, from at least in or about September 2020 up through and including in or about October 2020. He is charged with one count of conspiracy to commit federal crimes, which carries a maximum sentence of five years in prison, one count of federal program bribery, which carries a maximum sentence of 10 years in prison, and one count of honest services wire fraud, which carries a maximum sentence of 20 years in prison.
The maximum potential sentences in these cases are prescribed by Congress and are provided here for informational purposes only, as any sentencing of each defendant will be determined by the judge.
Ms. Strauss praised the outstanding investigative work of the FBI and DOI.
These cases are being handled by the Office’s Public Corruption Unit. Assistant United States Attorneys Marguerite Colson, Jarrod L. Schaeffer, and Hagan Scotten are in charge of the prosecutions.
The charges in the Indictments are merely accusations and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictments and the description of the Indictments set forth herein constitute only allegations, and every fact described should be treated as an allegation.
25 May 2021
Wolcott Man Arrested, Charged with Receipt and Possession of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Roger Roberts, 49, of Wolcott, NY, was arrested and charged by criminal complaint with possession of child pornography involving prepubescent minors and receipt of child pornography. The charges carry a mandatory minimum penalty of five years in prison, a maximum of 20 years and a $250,000 fine.
Assistant U.S. Attorney Meghan K. McGuire, who is handling the case, stated that according to the complaint, in October 2020, the New York State Police in Wolcott received a complaint regarding the online activities of the defendant. On October 19, 2020, investigators searched the defendant’s residence on East Port Bay Road in Wolcott. During the search, investigators observed impressions in the carpeting in the first-floor den, indicating that furniture had recently been removed. Power cords and computer related equipment were present in the den; however, no computer was present. Investigators found an iPhone and two shotguns in the residence. During the search of a barn located on the property, just across the street from the main residence, investigators discovered damaged remains of a computer desk and computer components in a garbage tote in the driveway of the barn. Notably absent was a computer tower and/or hard drive. Concealed within a pile of wood scraps inside the barn were a damaged computer tower, another iPhone, and 10 additional firearms.
A forensic review of the computer recovered 69 images and 13 videos of child pornography. The images included the sexual abuse of minors. In addition, investigators recovered Snapchat messages that were sexual in nature involving the defendant and a 13-year-old from one of the iPhones.
The complaint is the result of an investigation by the New York State Police, under the direction of Major Barry Chase and Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Washington, PA Man Charged with Stealing from the US GovernmentRead the Press Release
PITTSBURGH - A resident of Washington, Pennsylvania, has been indicted by a federal grand jury on a charge of committing theft from the government, Acting United States Attorney Stephen R. Kaufman announced today.
The one-count Indictment named Michael Pierce, age 49, as the sole defendant.
According to the Indictment, Pierce stole approximately $12,800 in United States currency from the United States Government between the dates of October 2018 and September 2019.
The law provides for a maximum total sentence of not more than 10 years in prison, a fine of not more than $250,000.00, a term of supervised release of not more than 3 years, or a combination thereof. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brian W. Castello is prosecuting this case on behalf of the government.
The U.S. Department of Veterans Affairs Office of the Inspector General conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
VIPD’s Crime Prevention Bureau, the U.S. Attorney’s Office Project Safe Neighborhoods Initiative, Community Action NOW! and Senator Dwayne M. DeGraff Announce a Town Hall Meeting in the Savan Community, St. Thomas on Thursday, June 3rdRead the Press Release
St. Thomas, USVI – United States Attorney Gretchen C.F. Shappert announced today that Captain Sandra Colbourne and members of the VIPD Crime Prevention Bureau; representatives from the U.S. Attorney’s Office Project Safe Neighborhoods initiative; Iffat Walker, Founder and Executive Director of Community Action NOW!; and Senator Dwayne M. DeGraff of the 34th Legislature of the Virgin Islands will participate in a Town Hall Meeting with the Savan Community next week. The meeting will be held on Thursday, June 3rd from 6:00 p.m. to 8:00 p.m. in the Romeo Malone Community Center. The meeting is free and open to the public. Participation is also available via Zoom.
"Savan is a diverse community of native families, small business owners, and an aging population. We know that the citizens of Savan want and need access to resources to restore the community to its once vibrant history, " Shappert said. "We look forward to hearing community members’ ideas and their concerns."
Persons wishing to join by Zoom can use Meeting ID 864 7247 5481; Passcode 90122.
Project Safe Neighborhoods is a nationwide initiative that brings together federal, state, local and tribal law enforcement officials, prosecutors, and community leaders to identify the most pressing violent crime problems in a community and develop comprehensive solutions to address them. For more information on the Department of Justice’s Project Safe Neighborhoods, please see: https://www.justice.gov/psn.
Community Action Now is a nonprofit focused on empowering youth and adults living in underserved communities to overcome poverty and gain economic independence through outreach services geared toward self-advocacy, education, training, community services, and emergency management. For more information, see https://communityactionnow.org/.
For additional information, please call 340-244-6539 or 340-474-1510.
VA Employee Sentenced to Prison for Stealing Veterans' Personal InformationRead the Press Release
LITTLE ROCK—A former program analyst for the Department of Veterans Affairs (VA) was sentenced to prison on Thursday afternoon after stealing personal information from veterans and VA employees. Phillip Hill, 35, of Malvern, was sentenced to 46 months in federal prison by United States District Judge Kristine G. Baker.
In the fall of 2017, federal agents learned that Hill, who worked at the North Little Rock VA Medical Center, had access to veterans’ and current VA employees’ personal information to include names, dates of birth, and social security numbers.
Agents learned that Hill had contacted another individual and attempted to sell personal identifying information to a buyer for approximately $100,000. Multiple recorded conversations with this individual and Hill were monitored by agents. Throughout one monitored conversation, Hill repeatedly acknowledged the illegality of his conduct. Hill explained that he was offering to sell the personal identifying information for any veteran who had received VA compensation or a pension, visited a VA medical center, or had completed a VA financial assessment. Hill also offered to sell personal identifying information for VA employees, explaining the employees data would be particularly valuable to identity thieves, as it would include personal identifying information and personal account information for employees who were earning over $50,000 a year.
Hill was arrested on December 17, 2017, at the VA Regional Office by agents. As part of the investigation, his phone was searched. Records found on the phone indicated that a VA database spreadsheet containing personal information had been loaded onto Hill’s Google drive account had been accessed by Hill on his phone days prior to his arrest.
“This defendant took advantage of his position of trust within the VA healthcare system,” stated Jonathan D. Ross, Acting United States Attorney for the Eastern District of Arkansas. “His fraudulent scheme had the potential to create financial chaos for those whose information he stole. This sentence demonstrates our office’s commitment to prosecuting those who would defraud the heroes who have served our country.”
“This sentence sends a clear message that those entrusted with the protection of the personal information of our nation’s veterans and VA employees will be held accountable should they violate that trust,” said U.S. Department of Veterans Affairs Office of Inspector General (VA OIG) Special Agent in Charge Jeffrey Breen, South Central Field Office. “The VA OIG thanks the United States Attorney’s Office and our law enforcement partners at the United States Secret Service for their joint efforts to achieve justice in this case.”
Hill was indicted in January 2018 with attempted trafficking in access devices, aggravated identity theft, and possession of access device-making equipment. In September 2019, he pleaded guilty to attempted trafficking in access devices in exchange for dismissal of the remaining charges. In addition to 46 months in prison, Judge Baker sentenced Hill to two years of supervised release following his term of imprisonment. The case was investigated by the VA OIG with assistance from the United States Secret Service and prosecuted by Assistant United States Attorney Jana Harris.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Upper Allegheny Health System to Pay $2.7 Million to Settle False Claims Act AllegationsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Upper Allegheny Health System (UAHS), a health care system which operates several dental clinics in the Southern Tier of New York and in Pennsylvania, has agreed to pay $2.7 million dollars to resolve False Claim Act allegations. Under the settlement, the federal government will receive approximately $1.3 million dollars.
Assistant U.S. Attorney MaryEllen Kresse, who handled the case for the U.S. Attorney’s Office in Buffalo, stated that between April 1, 2010, and May 31, 2015, UAHS submitted false claims to Medicaid for dental services that were performed using handpieces which had not been appropriately sterilized. Dental handpieces are considered semi-critical devices and are therefore required to be heat sterilized between each patient use. UAHS failed to purchase sufficient dental hand pieces to allow for such heat sterilization. Instead, UAHS directed personnel to use CaviWipes to “clean” handpieces between patients. The government alleged that billing Medicaid for services provided using unsterilized dental handpieces violates the Federal False Claims Act as well as the New York False Claims Act.
“It is inconceivable that a healthcare business would seek to cut corners when it comes to the appropriate cleaning and sterilization of medical devices,” noted U.S. Attorney Kennedy. “This settlement under the False Claims Act holds Upper Allegheny accountable for the risks created for patients in the past, while ensuring that in the future patient safety will be preserved and that taxpayers will only pay for services which are properly provided.”
This settlement was reached by the U.S. Attorney’s Office for the Western District of New York, in conjunction with the U.S. Attorney’s Office for the Western District of Pennsylvania, and the New York State Attorney General’s Office, Medicaid Fraud Control Unit (MFCU).
The case against UAHS was brought in federal court by a whistleblower who alleged the health system violated the federal False Claims Act and the New York False Claims Act by improperly billing health care programs. Under the federal False Claims Act, private citizens are permitted to bring lawsuits known as qui tams on behalf of the United States and receive a portion of the proceeds of any settlement or judgment awarded against a defendant.
New York's Medicaid program provides medical insurance to groups of low-income people and individuals with disabilities. Medicaid is a nationwide program jointly funded by the federal government and states. Medicaid eligibility, benefits, and administration are managed by states within federal guidelines.
The claims resolved by this settlement are allegations only, and there have been no determinations of liability.
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University Professor and Wife Plead Guilty to Offenses Involving Department of Energy GrantsRead the Press Release
OKLAHOMA CITY – Yesterday, JUAN LU, 57, of Norman, pleaded guilty to making a false statement regarding Department of Energy grants, announced Acting U.S. Attorney Robert J. Troester. Her husband, SHAORONG LIU, 58, of Norman, already pleaded guilty to using false documents in the same case.
On February 18, 2021, a federal grand jury returned a 16-count Superseding Indictment against Liu and Lu. According to the Superseding Indictment, Liu is employed as a professor at the University of Oklahoma Department of Chemistry and Biochemistry. Liu and Lu controlled a company called MicroChem Solutions (MCS). Through MCS, they applied for and received federal grant monies from the Small Business Technology Transfer Program of the Department of Energy. The mission of the grant program was to support scientific excellence and technological innovation through the investment of federal research funds in critical American priorities to build a strong national economy. Liu and Lu spent this grant money on matters unrelated to the purpose of the grant funding, including on personal expenses. Additionally, Liu and Lu made false statements and submitted altered documents to the Department of Energy regarding how they spent grant money.
Yesterday, Lu pleaded guilty to using documents containing materially false statements regarding a matter pertaining to the executive branch of the United States government, namely the Department of Energy. On April 21, 2021, Liu pleaded guilty to making a materially false statement regarding a matter pertaining to the executive branch of the United States government, namely the Department of Energy.
At sentencing, Liu and Lu each face a maximum penalty of 5 years in prison and a potential fine of $250,000.
This case is a result of investigations by the Department of Energy Office of Inspector General, the National Science Foundation Office of Inspector General, and the Federal Bureau of Investigation Oklahoma City Field Office. Assistant U.S. Attorneys Will Farrior and Matt Dillon are prosecuting the case.
Reference is made to court filings for more information.
United States Attorney's Office District of Arizona April 2021 Immigration and Border Crimes ReportRead the Press Release
I. Illegal Reentry After Deportation (8 U.S.C. 1326)
214 individuals were charged in April with illegal reentry
A. 190 of those 214 individuals had previously been convicted of non-immigration criminal offenses in the U.S.
Of the 190 individuals with non-immigration criminal records:
1. 46 had violent crime convictions, including:
2 individuals had homicide convictions
13 individuals had sex offense convictions
18 individuals had domestic violence convictions2. 11 had property crime convictions
3. 41 had DUI convictions
4. 103 had drug crime convictions
B. 106 of those 214 individuals had been deported three or more times
II. Alien Smuggling (8 U.S.C. 1324)
52 individuals were charged in April with alien smuggling
III. Illegal Entry (Criminal Consequence Initiative) (8 U.S.C. 1325)
0 individuals were charged in April with illegal entry on the CCI calendar
Criminal conviction information is based on preliminary criminal history reports provided by the arresting agency.
These numbers represent United States Attorney's Office prosecutions only. These numbers do not include individuals apprehended by immigration enforcement officials and subjected solely to administrative process.
*The Department of Homeland Security instituted a policy in March 2020 of expeditiously returning aliens who illegally enter the United States rather than detaining them. The decreased number of individuals presented to this Office for prosecution coincides with the implementation of that policy and other COVID-19 related border restrictions.
RELEASE NUMBER: 2021-034_April Immigration and Border Crimes Report
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Two New Orleans Men Plead Guilty in Connection with the 2013 Murder of Loomis Armored Guard Hector TrochezRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced that LILBEAR GEORGE, 31, and CHUKWUDI OFOMATA, 35, both of New Orleans, pleaded guilty today before U.S. District Judge Lance Africk to Count Three of the Second Superseding Indictment, charging them with Using, Carrying, Brandishing, and Discharging of a Firearm in Furtherance of a Crime of Violence which resulted in death, to wit: the murder of Hector Trochez, which took place on December 18, 2013, a violation of Title 18, United States Code, Sections 924(c)(1)(A)(iii), 924(j)(1), and 2.
According to court documents, on the morning of December 18, 2013, GEORGE, OFOMATA and co-defendants Jeremy Esteves, Curtis Johnson, Jr., and Robert Brumfield III, robbed the Loomis armored vehicle as it was making a delivery of approximately $265,000 to the Chase Bank located at the intersection of S. Carrollton and S. Claiborne Avenues. The defendants learned about the Loomis deliveries from a known individual who was employed at this particular Chase branch. Esteves knew the bank employee and learned that the Loomis truck made scheduled deliveries to the bank on Wednesdays at approximately 10:00 a.m. The co-conspirators used this information to prepare for and plan the robbery.
As the Loomis guard, Hector Trochez, prepared to make the delivery, GEORGE and OFOMATA, both armed, exited their vehicle (a Chevy Tahoe stolen by GEORGE in preparation for the robbery), and ordered Trochez to give up the money. Trochez pulled his weapon and fired at the robbers. OFOMATA and GEORGE fired their weapons in Trochez’s direction. Johnson fired at the Loomis truck to keep the driver inside the truck. Trochez was fatally struck on the left side of his forehead and suffered a graze wound to his elbow. One of the robbers ran towards the rear of the Loomis truck and took possession of the money bag before re-entering the Tahoe. The robbers fled the Chase Bank parking lot.
A witness, seated in a vehicle at the corner of S. Claiborne and S. Carrollton Avenues observed the shooting and provided a description of the shooters and the vehicle they occupied. That witness followed the Chevy Tahoe as it fled the location of the shooting/robbery. During the vehicle’s flight, one of the shooters fired at the witness’s vehicle in an attempt to stop the witness from following. The witness observed the Chevy Tahoe arrive in the 1700 block of Adams Street and saw the four robbers exit the Chevy Tahoe and entered a Honda Accord being driven by Brumfield. After the individuals entered the Honda Accord, they fled the area.
The Chevy Tahoe was recovered by the New Orleans Police Department and searched pursuant to a federal search warrant. During the search, FBI agents observed that the steering wheel column of the vehicle had been breached. Agents located two screwdrivers on the floorboard of the Tahoe. The screwdrivers were collected and submitted for DNA testing at the Louisiana State Police Crime Laboratory. An unknown DNA profile, later confirmed to be that of GEORGE, was recovered from one of the screwdrivers. Based on the recovery of GEORGE’s DNA from the screwdriver, an arrest warrant was issued.
GEORGE and OFOMATA both face a statutory sentence of 10 years up to life imprisonment, a fine of up to $250,000.00, a period of up to 5 years supervised release, and a mandatory special assessment of $100.00.
United States District Court Judge Lance M. Africk will sentence OFOMATA and GEORGE on September 29, 2021.
Co-defendants Jeremy Esteves and Robert Brumfield III were found guilty by a jury at trial in November 2019. Co-defendant Jasmine Theophile, GEORGE’s girlfriend, previously pled guilty to obstructing justice. They will be sentenced on October 13, 2021.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation along with the New Orleans Police Department and the Louisiana State Police. Assistant United States Attorneys Brittany L. Reed and Gregory M. Kennedy are prosecuting the matter.
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