Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Thursday 18 March 2021
Former Evansville Mental Health Counselor SentencedRead the Press Release
Evansville – Acting U.S. Attorney John Childress announced today that Barbara B. Witte, 74, of Evansville, Indiana, was convicted of felony health care fraud and sentenced to two years of federal probation by U.S. District Judge Richard L. Young. Witte was also ordered to pay $186,347.55 in restitution and a $50,000 fine.
“Health care fraud harms the entire healthcare system and those that need the care from it,” said Childress. “This office will continue to work with our law enforcement partners to investigate and prosecute those who do their best to undermine that system.”
Witte was a licensed mental health counselor. She provided counseling services for patients in Evansville and Vanderburgh County through her business, B-One Counseling. She billed health care benefit programs, including Medicaid and Medicare, for medical services she provided.
Between January 2014 and July 2018, Witte submitted over 2,000 materially false and fraudulent claims to Medicaid and Medicare. The claims were fraudulent because Witte had not actually provided services to the patients identified in the claims.
Medicaid and Medicare processed Witte’s false claims and paid her for services she never provided. Witte’s conduct caused a loss of $146,334.51 to the Medicaid program, and $40,013.04 to the Medicare program.
This investigation was a collaborative effort between the FBI, Indiana Medicaid Fraud Control Unit, Office of Attorney General, and the U.S. Department of Health and Human Services, Office of Inspector General.
"This sentence should put others on notice that exploiting federally funded health care programs will not be tolerated and those who engage in this type of crime will be identified and held accountable,” said FBI Indianapolis Special Agent in Charge Paul Keenan. “We will continue to work with our partners to protect taxpayer’s resources from those who would take advantage of such programs for their own greed.”
“Fighting fraud and protecting Hoosiers is our top priority. This criminal conviction is a win for all Indiana residents, as every dollar returned to Indiana Medicaid through this restitution is another taxpayer dollar that will go toward services for our most vulnerable,” said Indiana Attorney General Todd Rokita. “I am proud of the diligent work of our team and our federal partners to bring this case to justice.”
“Medical professionals are entrusted to provide only medically necessary services and bill for only for the services that they provide. Billing for services not rendered is fraud, pure and simple,” said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General – Chicago Region. “The OIG will continue to work with our partners to ensure that those who choose to submit fraudulent claims to the Medicare and Medicaid programs are held accountable.”
According to Assistant U.S. Attorney Matthew B. Miller, who prosecuted this case for the government, Witte must pay restitution in full within thirty days.
In November of 2020, Acting United States Attorney John E. Childress renewed a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s enduring commitment to investigating and prosecuting those who engage in fraud and abuse that harm the public and the healthcare system. See U.S. Attorney’s Office, Southern District of Indiana Strategic Plan Section 5.2.
Florida Man Charged with Federal Hate Crime for Setting Fire to ChurchRead the Press Release
WASHINGTON – A Florida man was charged with federal hate crime in Ocala.
Steven Shields, 24, of Dunnellon was charged with setting fire to and damaging the Queen of Peace Catholic Church in Ocala by a federal grand jury in Orlando, who returned an indictment against him.
According to the indictment, Shields intentionally set fire to the Queen of Peace Catholic Church on July 11, 2020. The indictment alleges that he was motivated to set this fire due to the religious character of the church. Shields is charged with one count of intentional damage to religious property, a hate crime charge that falls under the Church Arson Prevention Act, and one count of using fire to commit a felony.
If convicted, Shields faces a maximum term of 20 years imprisonment for intentionally damaging religious property. Shields faces an additional mandatory minimum of 10 years for using fire to commit a felony. He also faces up to three years of supervised release, a $250,000 fine and restitution.
The FBI, the ATF, the Florida State Fire Marshal, the Florida Bureau of Fire and Arson Explosives Investigations, the Marion County Sheriff’s Office, the Marion County Fire and Rescue Department and the Ocala Police Department conducted the investigation. Assistant U.S. Attorney Robert E. Bodnar, Jr. of the Middle District of Florida and Trial Attorney Maura White of the Justice Department’s Civil Rights Division are prosecuting the case.
For more information and resources about the Department’s work to combat hate crimes, visit www.justice.gov/hatecrimes.
An indictment is merely an accusation and Shields is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Florida Man Charged with Federal Hate CrimeRead the Press Release
A Florida man was charged with federal hate crime in Ocala for setting fire to a church.
Steven Shields, 24, of Dunnellon, was charged with setting fire to and damaging the Queen of Peace Catholic Church in Ocala by a federal grand jury in Orlando, who returned an indictment against him.
According to the indictment, Shields intentionally set fire to the Queen of Peace Catholic Church on July 11, 2020. The indictment alleges that he was motivated to set this fire due to the religious character of the church. Shields is charged with one count of intentional damage to religious property, a hate crime charge that falls under the Church Arson Prevention Act, and one count of using fire to commit a felony.
If convicted, Shields faces a maximum term of 20 years imprisonment for intentionally damaging religious property. Shields faces an additional mandatory minimum of 10 years for using fire to commit a felony. He also faces up to three years of supervised release, a $250,000 fine and restitution.
The FBI, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Florida State Fire Marshal, the Florida Bureau of Fire and Arson Explosives Investigations, the Marion County Sheriff’s Office, the Marion County Fire and Rescue Department and the Ocala Police Department conducted the investigation.
Assistant U.S. Attorney Robert E. Bodnar Jr. of the Middle District of Florida and Trial Attorney Maura White of the Justice Department’s Civil Rights Division are prosecuting the case.
An indictment is merely an accusation and Shields is presumed innocent unless and until proven guilty beyond a reasonable doubt.
For more information and resources about the department’s work to combat hate crimes, visit www.justice.gov/hatecrimes.
Federal jury convicts SNM gang member of murder, racketeering and firearm possessionRead the Press Release
ALBQUERQUE, N.M. – A federal jury in Albuquerque returned guilty verdicts on March 16, convicting Jody Rufino Martinez, 41, of Truchas, New Mexico, of murder, participation in a Racketeering Influenced and Corrupt Organizations (“RICO”) conspiracy, and being a felon in possession of a firearm and ammunition for conduct related to the Syndicato de Nuevo Mexico (“SNM”) prison gang. The jury acquitted Martinez on one count of witness tampering.
According to public court records, Martinez has been a member and self-identified “soldier” of the SNM prison gang since 1998. Martinez has committed numerous violent crimes on behalf of the SNM since joining the gang. These crimes included the murder of a victim on Dec. 5, 2008 in Rio Arriba County for failing to deliver drugs to an SNM gang member. On Oct. 24, 2018, Martinez knowingly possessed a firearm and ammunition when he shot a victim at a residence in Santa Fe County as retaliation for supposedly disrespecting the SNM. As a previously convicted felon, Martinez cannot legally possess a firearm or ammunition.
Martinez is currently in custody awaiting sentencing. He faces a mandatory life sentence for the murder conviction, and a sentence of up to life on the RICO conspiracy conviction.
The FBI, New Mexico State Police, Santa Fe County Sheriff’s Office and the New Mexico Department of Corrections investigated this case. Assistant U.S. Attorneys from the Las Cruces Branch Office are prosecuting the case as part of the Organized Crime Drug Enforcement Task Force program, a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
Elk Grove Woman Pleads Guilty to Medicare Kickback SchemeRead the Press Release
SACRAMENTO, Calif. — Mariela Panganiban, 48, of Elk Grove, pleaded guilty today to conspiring with the owners of home health care agencies to pay and receive illegal kickbacks in exchange for Medicare beneficiary referrals, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, Panganiban worked as the Director of Social Services at a skilled nursing facility in Roseville. In her role, Panganiban assisted Medicare beneficiaries in selecting home health care agencies following their discharge from the facility. Panganiban used her position to steer Medicare beneficiaries to home health agencies in Folsom and El Dorado Hills. In exchange for the referrals, the agencies’ owners paid Panganiban illegal cash kickbacks.
In her plea agreement, Panganiban admitted that the agencies’ owners paid her kickbacks in exchange for the referral of approximately 100 beneficiaries. Medicare paid the agencies over approximately $735,000 for services they purportedly provided to the beneficiaries. Because the agencies obtained the referrals by paying kickbacks, they should not have received any reimbursement from Medicare.
This case is a product of an investigation by the Federal Bureau of Investigation and the Department of Health and Human Services’ Office of Inspector General. Assistant U.S. Attorney Matthew Thuesen is prosecuting the case.
U.S. District Judge Troy L. Nunley is scheduled to sentence Panganiban on May 20. She faces a maximum statutory penalty of five years in prison and a fine of $250,000 or twice the gross loss or gain. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
East Greenwich Man Arrested on Child Pornography ChargeRead the Press Release
PROVIDENCE – An East Greenwich man was arrested on Wednesday following a court-authorized search of his home by federal Homeland Security Investigations agents and members of the Rhode Island State Police Internet Crimes Against Children Task Force that resulted in the seizure of electronic devices that a preliminary examination showed allegedly contained images and videos of child pornography.
An investigation determined that an electronic device using an IP address assigned to the residence where John Daniel Macintyre, 32, resides, had allegedly accessed and downloaded child pornography from websites accessible via the dark web. Information that led investigators to investigate Macintyre was first provided by a foreign law enforcement agency to the FBI.
According to court documents, it is alleged that the dark web website accessed by Macintyre facilitates the sharing of child abuse materials such as images, links, and videos, with an explicit focus on indecent material depicting boys. Accessing the website on the dark web required numerous affirmative steps by the user and, to do so, Macintyre downloaded a special browser and software designed specifically to facilitate anonymous communication over the Internet.
During the court-authorized search of the residence where Macintyre resided, law enforcement seized a laptop computer, 11 digital storage hard drives, and a cellular telephone allegedly belonging to Macintyre. Several videos of child pornography were allegedly discovered during a brief forensic review of one of the devices conducted by a Rhode Island State Police Computer Forensics Analyst.
John Daniel Macintyre appeared on Wednesday before U.S. District Court Magistrate Judge Lincoln D. Almond on a federal criminal complaint charging him with possession of child pornography, announced Acting United States Attorney Richard B. Myrus, Homeland Security Investigations Acting Special Agent in Charge William S. Walker, Special Agent in Charge of the FBI Boston Division Joseph R. Bonavolonta, and Superintendent of the Rhode Island State Police Colonel James M. Manni.
Macintyre was released on $10,000 unsecured bond.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant U.S. Attorney Ronald R. Gendron.
###
Defendant Faces Federal Charges for the 2015 Murder of Sapulpa ManRead the Press Release
A man convicted in Creek County for a murder that occurred during a 2015 robbery was charged in federal court, announced Acting U.S. Attorney Clint Johnson. The defendant’s state conviction was dismissed today by the Oklahoma Court of Criminal Appeals for lack of jurisdiction.
Arnold Dean Howell Jr., 27, was charged by criminal complaint with murder in the first degree in Indian Country.
Because Howell is an enrolled tribal member and the crime occurred within the Muscogee (Creek) Nation Reservation, the state conviction was vacated and ordered dismissed.
According to federal court documents, Howell and his sister Katherine Freeman, conspired to rob the victim at his home in Sapulpa. Investigators allege that during the robbery, Freeman held the victim at gunpoint with one of the victim’s rifles then Howell directed her to get a knife from the kitchen. He is alleged to have repeatedly stabbed the victim. When the knife broke, another was retrieved, and Howell continued his attack causing the victim’s death. Howell and Freemen stole, among other things, the victim’s vehicle, wallet, watch, two rifles, and laptop.
The victim was found deceased the next day during a welfare check, and his vehicle was later discovered abandoned in Tulsa.
The Oklahoma State Bureau of Investigation, Creek County Sheriff’s Office, Sapulpa Police Department and FBI are the investigative agencies. Assistant U.S. Attorneys Cymetra M. Williams and Christopher M. Kelly are prosecuting the case.
This matter will proceed in U.S. District Court in Tulsa, where the criminal complaint is currently pending. A complaint is a temporary charge alleging a violation of law. For the case to proceed to trial, the United States must present the charge to a federal grand jury within 30 days. Once a grand jury returns an indictment, a defendant has a right to a jury trial at which the United States would have the burden of proving the defendant’s guilt beyond a reasonable doubt. All defendants are presumed innocent until proven guilty in a court of law.
Court of Appeals upholds Evans Landscaping convictionsRead the Press Release
CINCINNATI – The United States Sixth Circuit Court of Appeals issued a ruling today affirming the convictions of Cincinnati businessman Doug Evans and his landscaping company.
Evans and Evans Landscaping Inc. were tried and convicted in December 2018 of two counts of conspiracy to commit wire fraud and three counts of wire fraud arising out of their scheme to secure government contracts through a shell company. After four weeks of trial, the defendant and his company were found guilty on all counts and convicted of defrauding the City of Cincinnati and other public entities by fraudulently obtaining contracts reserved for small and minority businesses.
In January 2020, Evans was sentenced to 21 months in prison. Evans Landscaping was ordered to pay half a million dollars in fines.
In his appeal, Evans challenged the denial of his motion to suppress evidence, the District Court’s handling of various trial issues, and the jury instructions provided at the end of the trial.
During pretrial proceedings, Evans moved to suppress evidence obtained pursuant to search warrants, arguing that it violated his Fourth Amendment rights. The District Court denied the motion and the Court of Appeals upheld that denial today.
Evans also argued that the United States’ case “was overwhelmingly built on emails” that were hearsay. The Court of Appeals upheld that the emails were actually exempt from the hearsay rules as they were business records.
The defense also attempted to appeal conviction based on specifics of the jury instructions given at the conclusion of trial; however, the Court of Appeals rejected this argument because the defense did not object to the instructions at the time they were presented, and because, in any event, “the evidence overwhelmingly established that defendants joined the conspiracy and specifically intended to further its purpose.”
Evans is scheduled to report next month to serve his prison sentence.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio, announced today’s appellate opinion. Appellate Chief Mary Beth Young represented the United States on appeal. Assistant Deputy Criminal Chief Timothy S. Mangan and Deputy Criminal Chief Emily N. Glatfelter prosecuted the underlying criminal case.
# # #
Columbus man charged with hate crime for making anti-Semitic threats to neighbors, breaking their windowRead the Press Release
COLUMBUS, Ohio – A Columbus man has been charged by criminal complaint in federal district court with criminally interfering with the right to fair housing.
Douglas G. Schifer, 65, allegedly used force and the threat of force to intimidate his neighbors because of their religion.
According to documents filed in connection with the complaint, Schifer shouted anti-Semitic slurs, obscenities and other derogatory language about their religion at his neighbors on Nov. 7, 2020. Court documents also allege he broke one of their windows and spat on one of the neighbors.
In his alleged threats, Schifer stated he would shoot the neighbors, poison their dog and burn down a garage they were remodeling into an apartment. He allegedly made reference to gassing Jewish people and burning them in ovens.
If convicted, Schifer would face up to one year in prison and a possible fine of up to $100,000.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio; Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; and Columbus Police Interim Chief Michael Woods announced the charges. Assistant United States Attorneys Peter K. Glenn-Applegate and Heather A. Hill, and Trial Attorney Cameron Bell of the Department of Justice’s Civil Rights Division are representing the United States in this case.
A criminal complaint is merely an allegation, and defendants are presumed innocent unless proven guilty in a court of law.
# # #
Columbia Woman Sentenced to More Than 15 Years in Federal Prison for Enticing a Minor to Engage in Sexual ActivityRead the Press Release
Columbia, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that India Tykeyah-Najee Cuyler, a/k/a “Lady Tank,” 26, of Columbia, was sentenced to more than 15 years in federal prison, after pleading guilty in February 2019 to using a facility of interstate commerce to entice a minor under the age of 18 to engage in sexual activity.
Cuyler’s co-defendant, Donnell Salethian Woodard, a/k/a “Tank,” 33, also of Columbia, was sentenced February 24, 2021, to 25 years imprisonment, after pleading guilty to conspiracy to sex traffic minors and benefiting from sex trafficking of minors. Woodard was also ordered to pay restitution to the minor victims, register as a sex offender, and will be on supervision for 15 years following service of the term of imprisonment. There is no parole in the federal system.
“The cruelty of sex trafficking is hard to comprehend, and it must be punished severely,” said Acting U.S. Attorney DeHart. “This sentence closes the door on the horrific crimes committed by these defendants and demonstrates our commitment to stopping sex trafficking in South Carolina.”
“Today’s sentencing, along with the previous sentencing of Donnell Woodard, has brought an end to a local child sex trafficking operation,” said Susan Ferensic, Federal Bureau of Investigation (FBI) Special Agent in Charge. “These hideous crimes are frequently uncovered by local law enforcement. We thank the Lexington Police Department and the West Columbia Police Department for their vigilance and dedication as they worked alongside the FBI to bring these individuals to justice. We ask that if anyone sees any indication that a child is being trafficked, they report such to their local law enforcement agency or the FBI.”
Evidence presented to the court showed that on November 21, 2017, undercover officers with the Lexington Police Department encountered a minor advertising sex via a website. An undercover officer set up a time to meet with the minor at a local motel, wherein officers observed the minor being dropped off by Cuyler and Woodard. Officers learned that the minor was 16 years old and a runaway. When Cuyler and Woodard returned to the local motel to pick the minor up, officers placed them both under arrest. The investigation led to another nearby motel where the second minor, who was also involved in the illegal venture, was located. The investigation further revealed Woodard and Cuyler were using a cell phone to post photographs and advertisements for commercial sex with the minors on a website and taking a portion of the proceeds. The investigation further showed that the minors had sometimes up to ten (10) meetings per day at various hotel rooms rented by Woodard.
At sentencing, Cuyler received an obstruction of justice enhancement for 2017 jail phone calls in which she attempted to have another minor assault the minor victims in retaliation for cooperating with law enforcement. Cuyler also lost her reduction for acceptance of responsibility for pleading guilty after she assaulted another inmate inside the jail, which resulted in a state assault charge.
During the sentencing, United States District Court Judge J. Michelle Childs also ordered Cuyler to make restitution to the victims involved. Following service of her 188-month term of imprisonment, Cuyler will be on supervised release for 15 years and will be required to register as a sex offender.
The case was investigated by the FBI, the Lexington Police Department, and the West Columbia Police Department. Assistant United States Attorney Stacey D. Haynes of the Columbia office prosecuted the case.
The case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, 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 identify and rescue victims. For more information, please visit www.projectsafechildhood.gov.
#####
Clarence Man Going to Prison for Possessing Firearms in Furtherance of Drug Trafficking CrimesRead 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 Anthony Gerace, 41, of Clarence, NY, who was convicted of possessing firearms in furtherance of drug trafficking crimes, was sentenced to serve 60 months in prison by U.S. District Judge John L. Sinatra, Jr.
Assistant U.S. Attorneys Joseph M. Tripi and Brendan T. Cullinane, who handled the case, stated that between 2006 and January 28, 2019, the defendant was involved in the possession and distribution of marijuana, THC, cocaine, hydrocodone, and other federally controlled substances. On January 28, 2019, a federal search warrant was executed at the Gerace’s residence on Michael Douglas Drive in Clarence. Homeland Security Investigation special agents recovered quantities of marijuana and THC intended for distribution by the defendant, as well as 14 firearms and numerous rounds of ammunition for the various firearms. The firearms and ammunition were located in close proximity to the controlled substances, and also in close proximity to $103,360 in U.S. currency. As part of his plea, Gerace admitted that the firearms protected him, his proceeds, the location where he stored his controlled substances and currency, and the controlled substances, which had a conservative street value of approximately $98,850. The defendant also agreed to forfeit $103,360 as well as the firearms and ammunition seized from him on January 28, 2019.
The sentencing is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the Erie County Sheriff’s Office, under the direction of Sheriff Timothy Howard; the Amherst Police Department, under the direction of Chief John Askey; the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division, the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia, and Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy.
# # # #
Cardiologist Dinesh Shah Pays $2 Million to Resolve False Claims Act Allegations Relating to Excessive TestingRead the Press Release
DETROIT - An Oakland County Cardiologist, Dinesh M. Shah, M.D. and his practice, Michigan Physicians Group, P.C. (MPG) have paid the United States $2 million to resolve allegations that they violated the False Claims Act by knowingly billing federal healthcare programs for diagnostic testing that was either unnecessary or not performed. MPG is a Michigan professional corporation with primary offices located in Berkley and Livonia, Michigan, and with administrative offices, labs, and testing sites at other locations within the metropolitan Detroit area. Shah is a practicing cardiologist and the sole owner of MPG.
This settlement resolves allegations that from 2006 to 2017, Shah and MPG knowingly billed government programs, including Medicare, Medicaid, and TRICARE, for unnecessary diagnostic testing. The investigation focused on the provision of a group of diagnostic tests, which included Ankle Brachial Index and Toe Brachial Index tests, known as ABI/TBIs, which were routinely performed on patients without first being ordered by a physician and without regard to medical necessity. The ABI compares blood pressure in the ankle to blood pressure in the arm to determine how well blood is flowing from the heart to the feet. The TBI is an additional measure to assess blood pressure readings at the toes.
The investigation also focused on the provision of unnecessary Nuclear Stress Tests. The United States alleged that Shah was routinely ordering, and MPG was providing, unnecessary Nuclear Stress Tests to some patients. During a Nuclear Stress Test, a small amount of radioactive tracer is injected into a vein, after which it is detected by a special camera that produces images used to evaluate blood flow to the heart.
This settlement comes after a years-long investigation by the Office of Inspector General for the United States Department of Health and Human Services and the Defense Health Agency acting on behalf of the TRICARE Program. The State of Michigan Attorney General’s Office participated in the settlement as the State of Michigan was a named plaintiff in one of the cases.
“Subjecting patients to unnecessary testing in order to fill one’s pockets with taxpayer funds will not be tolerated. Such practices are particularly concerning because overuse of some tests can be harmful to patients,” said Acting U.S. Attorney Saima Mohsin. “With these lawsuits and the accompanying resolution, Dr. Shah and Michigan Physicians Group are being held to account for these exploitative and improper past practices.
“Physicians commit to providing and billing for only medically necessary services when they choose their profession and participate in federally funded health care programs,” said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & human Services, Office of Inspector General – Chicago Region. “To deviate from that commitment and potentially place their patient’s health and safety at risk as well as limited tax payer resources is unacceptable. The OIG will continue to work with our federal, state and local partners to ensure that patients and tax payer dollars are protected.”
In addition to the civil settlement agreement, Dinesh Shah and MPG simultaneously entered into an Integrity Agreement with the Office of Inspector General for the United States Department of Health and Human Services, which provides for some oversight of Shah and MPG’s billing practices for a three-year period.
The settlement resolves allegations originally brought in lawsuits filed under the qui tam, or whistleblower, provisions of the False Claims Act by two separate whistleblowers, Arlene Klinke and Khrystyna Mala, both former employees of MPG. The False Claims Act permits private parties to file suit on behalf of the United States and to share in any recovery.
The matter was handled by Assistant United States Attorneys Leslie Wizner and Lynn Dodge.
The two qui tam cases are docketed as United States ex rel. Arlene Klinke v. Dinesh Shah, M.D. and Michigan Physicians Group, Civil Action No. 10-cv-10726 (E.D. MI), and United States and State of Michigan ex rel. Khrystyna Mala v. Michigan Physicians Group, P.C. Dinesh Shah, M.D. Alka Shah, M.D., Rita Shah, M.D. and Tatiana Shcherbich, Civil Action No. 12-cv-10732 (E.D. MI).
The claims resolved by the settlement are allegations only; there has been no determination of liability.
California Man Charged with Conspiring to Launder Proceeds of Fraud Schemes Targeting New Jersey Law Firm and SBA LoansRead the Press Release
NEWARK, N.J. – A California man has been charged with laundering money that originated from fraudulently obtained loans from the U.S. Small Business Association and from a business email compromise scheme that targeted a law firm based in New Jersey, Acting U.S. Attorney Rachael A. Honig announced.
Eric Bullard, 59, of Los Angeles, California, is charged by complaint with one count of money laundering conspiracy. Bullard was taken into custody yesterday in California on an unrelated warrant for a violation of federal supervised release. Bullard is scheduled to appear by videoconference before U.S. Magistrate Judge Alexander MacKinnon at 1:00 p.m. PDT.
According to documents filed in this case and statements made in court:
In June 2020, Victim 1 communicated via email with a law firm in New Jersey that was helping Victim 1, a resident of Bergen County, New Jersey, with a real estate transaction. One of the law firm’s email accounts was compromised and someone purporting to be emailing on behalf of the law firm sent instructions to Victim 1 to wire approximately $560,000 into an escrow account under the name “Eric’s Commercial LLC.” Victim 1 wired approximately $560,000 into a business bank account controlled by Bullard. Victim 1 did not intend for the money to be transferred to Bullard and sent the wire transfer to Bullard’s account under the belief that the wire instructions had come from the New Jersey law firm.
Prior to receiving the $560,000 wire transfer, the Eric’s Commercial LLC bank account had a beginning statement period balance of approximately $40. Shortly after the $560,000 was transferred into the Eric’s Commercial LLC bank account, on the same day the wire transfer posted to his account, approximately 10 cash withdrawals were made from the account totaling $96,275. Surveillance footage obtained from the bank shows Bullard entering the bank to make withdrawals from the account. The same day, three large wire transfers sourced from the transfer from Victim 1 were executed from the Eric’s Commercial LLC bank account to other bank accounts, including an account controlled by a conspirator.
In addition to laundering of the proceeds from the business email compromise, Bullard also obtained and laundered funds from the U.S. Small Business Administration’s (SBA) Economic Injury Disaster Loan (EDIL) program. In July 2020, Bullard received into a business bank account that he controlled $51,395 from an SBA EDIL loan intended for a pharmacy company with a listed location in Idaho and $143,100 from an SBA EDIL loan intended for a pharmacy company with a listed location in Colorado.
Money laundering conspiracy carries a maximum penalty of 20 years in prison and a fine of up to $500,000 or twice the value of the monetary instrument or funds involved in the transfer, whichever is greater.
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.
The government is represented by Assistant U.S. Attorney Jamie L. Hoxie of the Cybercrime Unit in Newark.
The charges and allegations in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Branson Performer Pleads Guilty to Fraud SchemeRead the Press Release
SPRINGFIELD, Mo. – A performer at a Branson, Missouri, theater pleaded guilty in federal court today to stealing more than $85,000 from hundreds of his own audience members who donated to his non-existent charity for foster children.
“For several years, this performer took advantage of his own audiences by pulling at their heartstrings while stealing from their pockets,” said Acting U.S. Attorney Teresa A. Moore. “He cynically and greedily victimized donors who falsely believed they were helping foster children. There’s no way to know how much cash was actually stolen, but we intend to seek restitution for the victims law enforcement has identified, as well as prison time and a hefty fine.”
James Patrick Garrett, 65, of Branson, waived his right to a grand jury and pleaded guilty to a federal information that charges him with one count of wire fraud.
“Today’s plea is a reminder that the United States Secret Service is committed to aggressively investigating and pursuing those who commit financial crimes,” said Brandon C. Bridgeforth, Special Agent in Charge, U.S. Secret Service Kansas City Field Office. “This defendant used his theater and platform as a performer, to prey on the generosity of those attending his performances. The defendant took advantage of these people who thought they were helping children in need, and then defrauded them. This investigation is a testament to the strong partnership between the Secret Service, the Branson, Mo., Police Department and the U.S. Attorney’s Office.”
“The Branson Police Department is always looking out for the best interest of our residents and visitors,” said Branson Police Chief Jeff Matthews. “We initiated this investigation and presented it to our federal partners at the United States Secret Service last year. They adopted the case and were successful in presenting it to the U.S. Attorney for prosecution. These kinds of relationships and partnerships help us protect our community and the values Branson is known for.”
Garrett performed the John Denver Tribute at the Branson IMAX. The show, which Garrett performed approximately six days a week throughout the year, consists of musicians covering songs made popular by the late John Denver and other classic country artists.
On Nov. 3, 2012, Garrett created Diamond Jym Ranch, Inc., with himself as president and a member of its board of directors. According to its articles of incorporation, Diamond Jym Ranch was ostensibly created for “the purpose of establishing homes for displaced or homeless boys or girls, to provide training and education for such children, to provide them with food, lodging, and their well being.”
By pleading guilty today, Garrett admitted that he victimized his audience members through a fraud scheme that lasted from March 2016 to August 2020. At the conclusion of each John Denver Tribute, Garrett solicited members of his audience to donate to Diamond Jym Ranch. Garrett falsely told audiences that he had created homes for foster children in Branson and Texas. Garrett told audience members their donations to Diamond Jym Ranch would go to support the foster homes and to support foster children. None of those claims were true, and Garrett knew they were false at the time he made the representations.
Garrett placed a donation box at the exit of the theatre where he performed the John Denver Tribute. Hundreds of audience members left their donations in the donation box. Garrett also directed audience members who wanted to make monthly or regular donations to Diamond Jym Ranch to mail their checks to his home address in Branson.
Garrett admitted that he used the money that he raised for his personal living expenses, which included frequently dining out at Branson restaurants, credit card debt, rent, taxes, mortgage payments, health insurance, and automobile insurance.
In total, over the course of many years, Garrett induced hundreds of John Denver Tribute audience members to make financial donations to Diamond Jym Ranch for the purpose of supporting foster children and homes for foster children. Garrett’s scheme to defraud resulted in a collective loss to his victims of at least $85,525.
The specific charge to which Garrett pleaded guilty today involves a $1,000 contribution made by an audience member identified in court documents as “D.C.,” a resident of Illinois. Garrett used D.C.’s donation for his own personal purposes and not to the benefit of foster children.
Under federal statutes, Garrett is subject to a sentence of up to 20 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Shannon Kempf. It was investigated by the U.S. Secret Service and the Branson, Mo., Police Department, as part of the U.S. Secret Service Financial Crimes Task Force.
Blount County Man Convicted of Child Exploitation ChargesRead the Press Release
KNOXVILLE, Tenn. – On March 17, 2021, a federal jury convicted a registered sex offender, Tywan Montrease Sykes, 45, of Louisville, Tennessee, of using a minor to produce child pornography, enticement of a minor for sex, committing those offenses while being required to register as a sex offender, and possession of child pornography. As a result of the convictions, the defendant is subject to a prison sentence of 25 years up to life. Honorable Thomas A. Varlan, United States District Judge, presided over the trial. Sentencing is scheduled for July 29, 2021.
The investigation began after Facebook notified the National Center for Missing and Exploited Children ("NCMEC") that Sykes was soliciting a 15-year-old girl for sex and child pornography with messages he sent to the girl through Facebook. NCMEC notified the Knoxville Police Department’s Internet Crimes Against Children unit ("KPD-ICAC"), which immediately contacted the local Department of Children’s Services office to help identify the girl and ensure her safety. KPD-ICAC arrested the defendant within 48 hours after the minor was interviewed. Federal search warrants were used to obtain the defendant’s and the victim’s Facebook communications and to search the defendant’s phone, which revealed substantial evidence that was used at trial to convict Sykes.
This was the first federal jury trial completed in the Eastern District of Tennessee since the expiration of the Court’s standing order suspending jury trials due to the COVID-19 pandemic.
The investigation was led by Knoxville Police Department officers who are designated as Task Force Officers with Homeland Security Investigations.
Assistant U.S. Attorneys Matthew T. Morris and Gretchen Mohr represented the United States in court.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, PSC 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 PSC, please visit www.projectsafechildhood.gov.
###
Bergen County Man Admits Decade-Long $80 Million Fraud SchemeRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man today admitted orchestrating a long-running bank and securities fraud scheme, which led to large-scale losses for financial institutions and investors, Acting U.S. Attorney Rachael A. Honig announced.
Seth Levine, 52, of Teaneck, New Jersey, pleaded guilty by videoconference before U.S. District Judge Madeline Cox Arleo to an information charging him with one count of conspiracy to commit bank fraud and one count of securities fraud.
According to documents filed in this case and statements made in court:
Levine was the founding partner, owner, and managing member of Norse Holdings, which was the parent company to more than 70 subsidiary companies. Each of the subsidiary companies owned one or more multifamily buildings, located primarily in New Jersey. From 2009 through August 2019, Levine directed a scheme to fraudulently refinance the multifamily properties by providing materially false information to financial institutions about the rents collected, the number of apartments leased, the expenses, and the true owners of the properties. Levine and others provided lenders fake documents, including falsified leases that created the appearance that vacant spaces were occupied and that overstated the rent paid by tenants; fake personal financial statements; fake expense documents; and fake operating agreements that misrepresented ownership interests in the multifamily properties. Levine also forged signatures on some of the fraudulent documents submitted to lenders. As a result of the fraudulent refinances, Levine received cash payouts from the lenders, which Levine and others used for their own enrichment and to continue the fraud scheme.
Many of the lenders who approved mortgages based on the false statements of Levine and others in turn sold those mortgages to the Federal Home Loan Mortgage Corporation (Freddie Mac) and the Federal National Mortgage Association (Fannie Mae). Because the refinances were obtained with fraudulent data regarding the properties’ income and expenses, the multifamily properties were overvalued and rents and other income from the properties did not cover the mortgage payments and other expenses associated with the properties. To cover the shortfalls, Levine obtained additional cash-out refinances, thereby increasing his total debt incurred. In total, Levine controlled at least 70 multifamily properties, comprising approximately 2,500 apartments. The outstanding balance of the fraudulently obtained mortgages on the multifamily properties was more than $150 million, including 40 mortgages held by Freddie Mac with an outstanding loan balance of approximately $103 million. The bank fraud conspiracy resulted in losses to victim lenders of at least $65 million.
While defrauding the lending financial institutions, Levine also carried out a securities fraud scheme to defraud investors in the multifamily properties. He solicited investors to invest in the multifamily properties based on materially false statements and promises about the condition of the properties and the use of investor funds. Levine represented to investors that his conduct would be limited by an operating agreement. However, after Levine acquired the multifamily properties, he violated representations made to the investors, including by selling off portions of Levine’s ownership interest in the properties without investor consent, bringing on additional investors without consent, and refinancing the multifamily properties without investor consent. Levine provided fraudulent documents to investors, such as operating agreements that overstated Levine’s personal investment in the multifamily properties and documents bearing signatures forged by Levine. He also co-mingled investor funds and used the funds in violation of representations to investors, by using investor money to support other multifamily properties, make payments to other investors, and further the fraud. The securities fraud victims lost more than $15 million.
The conspiracy to commit bank fraud carries a maximum potential penalty of 30 years in prison and a $1 million fine. The securities fraud count is punishable by a maximum of 20 years in prison and a $5 million fine. Sentencing is scheduled for July 26, 2021.
Individuals who believe they may have information about this case may contact the FBI at 1-800-CALL-FBI (225-5324).
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, and special agents of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent in Charge, Robert Manchak, with the investigation leading to today’s guilty plea. The U.S. Securities and Exchange Commission has filed a civil complaint against Levine today based on allegations underlying the securities fraud charge.
The government is represented by Assistant U.S. Attorney Heather Suchorsky of the
Economic Crimes Unit and Special Assistant U.S. Attorney Charlie L. Divine of the Federal Housing Finance Agency, Office of Inspector General.
Belle Man Sentenced to Seven Years in Prison for Dealing MethamphetamineRead the Press Release
CHARLESTON, W.Va. – A Belle man was sentenced today to seven years in prison and three years of supervised release for distribution of methamphetamine. Justin Lee Davis, 27, was indicted by a federal grand jury in September 2020 and charged with one count of distribution of methamphetamine and one count of possession with intent to distribute methamphetamine.
According to documents filed in the case and statements made in court, Davis sold approximately four ounces of methamphetamine to a confidential informant in the parking lot of a retail establishment near Belle on February 22, 2019. Law enforcement officers were able to observe Davis meeting with the confidential informant during the transaction. Following the transaction, Davis was followed back to his residence. A search warrant was executed at that residence four days later and Davis was located in a bedroom along with approximately 2.4 pounds of additional methamphetamine, digital scales and packaging materials.
The Drug Enforcement Administration (DEA) conducted the investigation. United States District Judge Joseph R. Goodwin imposed the sentence. Assistant United States Attorney Jeremy B. Wolfe 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-00164.
Follow us on Twitter: SDWVNews
###
Beckley Man Pleads Guilty to Federal Drug CrimeRead the Press Release
BECKLEY, W.Va. – A Beckley man pleaded guilty today to distributing cocaine base in Raleigh County. Greg Anthony Waters, 52, was indicted by a federal grand jury in November 2020.
Pursuant to the plea agreement and statements made in court, on September 20, 2020, Waters sold approximately one ounce of cocaine base to a person that was working with law enforcement as a confidential informant. Waters admitted to meeting the informant near a restaurant he owned in Beckley to sell the drugs. Waters also admitted to selling cocaine or cocaine base on several other occasions. Each transaction occurred within the Southern District of West Virginia. As further part of the plea, Waters agreed to forfeit cash in the amount of $2,481 and to have a money judgment entered in the amount of $5,000, the total of which represents the proceeds of his illegal drug trafficking. Waters also agreed to forfeit a 2015 Chevrolet Silverado truck which was used to facilitate the distribution of controlled substances.
Waters faces up to 20 years in federal prison when he is sentenced on July 2, 2021.
The Federal Bureau of Investigation and the Beckley/Raleigh County Drug and Violent Crime Unit, which is comprised of officers from the Raleigh County Sheriff’s Department, the Beckley Police Department and the West Virginia State Police, conducted the investigation. Assistant United States Attorney Timothy D. Boggess is in charge of the prosecution. United States District Judge Frank W. Volk presided over the hearing.
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. 5:20-cr-00191.
Follow us on Twitter: SDWVNews
###
Beckley Man Pleads Guilty to Child Pornography OffenseRead the Press Release
BECKLEY, W.Va. – A Beckley man pleaded guilty today to attempted production of child pornography. Douglas Patrick Humphrey, 32, was charged by a single-count Information in February 2021.
According to the plea agreement and statements made in court, Humphrey admitted that on August 25 and 26, 2020, he communicated with a 15-year-old female via Snapchat. During that conversation he asked her to meet him to engage in sexual activity and also asked her to produce and send a video of herself engaged in sexual intercourse with another man. Humphrey admitted that in July 2020 he had made a similar request of the minor female and had received a video depicting her engaged in sexual activity. Humphrey was arrested on August 26, 2020, when he arrived at the location where he had arranged to meet the minor.
Humphrey faces at least 15 years and up 30 years in prison when he is sentenced on July 2, 2021.
The Raleigh County Sheriff’s Office and the FBI Child Exploitation and Human Trafficking Task Force handled the investigation. United States District Judge Frank W. Volk presided over the hearing. Assistant United States Attorney Jennifer Rada Herrald is handling the prosecution.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:21-cr-00005.
Follow us on Twitter: SDWVNews
###
Anchorage Man Sentenced to Nine Years in Federal Prison for Stalking and Threatening Former OCS Caseworker, Attempted Extortion of FBI AgentRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Bryan Wilson announced that a man has been sentenced to federal prison for stalking an Office of Children’s Services caseworker, and threatening an FBI Agent, while serving a 10-year sentence in Arizona.
Peter Lee Norris (aka Peter Lee Bjorn Norris, aka Bjorn Erik Haapaniemi,) 56, originally of New York, was sentenced today, by U.S. District Judge Ralph R. Beistline to serve 9 years in prison, followed by three years of supervised release.
According to court documents, in July 2008, the Alaska Office of Children’s Services began investigating a report of suspected sexual abuse of minor children involving Norris. In July 2010, while the State of Alaska Child in Need of Aid (CINA) case was ongoing, Norris was indicted and sentenced to 10 years in Arizona for unlawful sexual conduct he committed against a different child.
While Norris was serving the 10-year sentence in Arizona, he sent many threatening letters to the Alaska Office Of Children’s Services (OCS), addressed to the former caseworker who investigated the report of suspected sexual abuse of minor children in Alaska. Norris was apparently motivated to take revenge on the caseworker because she had shared information with police and the Court in Arizona. Norris believed that the caseworker’s information resulted in him serving additional time in the Arizona case. Norris sent at least 22 letters over a period of nearly nine years, even after the caseworker was no longer employed with OCS. The letters included demands and threats to harm the victim and others, cyberstalk the victim, hack the victim’s digital files, hack federal systems, State of Alaska OCS and medical and law enforcement files. The victim sought a protective order and Norris violated the order.
During the course of the investigation, Norris sent a letter to an FBI Special Agent in Alaska in which he attempted to extort special treatment regarding his upcoming sex-offender probation in Arizona. Notably, the threat related if his demands were not met, he would “order others to issue mayhem” and noted that he would be “running amok in Homeland Security gunsights.”
At sentencing, Judge Beistline noted the seriousness of the crime, remarking that Norris committed the offenses to damage dedicated public servants who were just doing their jobs. The Court found that Norris was a danger to the community.
“Federal law enforcement will protect those public servants who protect our community’s children” said Acting United States Attorney Bryan Wilson.
The Federal Bureau of Investigation (FBI) and United States Postal Inspection Service (USPIS) conducted the investigation leading to the successful prosecution of this case. This case was prosecuted by Assistant U.S. Attorney Jonas M. Walker.
Anchorage Man Indicted on Child Pornography ChargesRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Bryan Wilson announced today that Michael Whitmore, 27, has been indicted on charges of possession and distribution of child pornography. Whitmore was arrested by the FBI on March 10, 2021.
The indictment alleges that on or about March 3, 2021 Whitmore was observed by Australian law enforcement distributing child pornography images on the WICKR social media application. The child pornography images allegedly contained prepubescent minors, or minors who have not attained 12 years of age. Australian Law Enforcement notified the FBI’s Child Exploitation Task Force who initiated an investigation. The investigation allegedly linked Whitmore through his username and associated information which lead to the identification of Whitmore. On March 10, 2021, the FBI executed a federal search warrant, which disclosed Whitmore possessed and accessed child pornography, including images involving prepubescent minors.
If the public has any further information regarding Whitmore,
please contact Anchorage FBI at (907) 276-4441.
If convicted, Whitmore faces a statutory minimum of five years in prison and guideline sentence of more than 20 years in prison. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The Federal Bureau of Investigation (FBI) conducted the investigation leading to the indictment in this case. This case is being prosecuted by Assistant U.S. Attorney Kyle Reardon.
This case is being brought as part of Project Safe Childhood. In May 2006, DOJ launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood combines federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Acting United States Attorney for the District of Columbia Channing D. Phillips’ Statement on Hate- and Bias-Related Crimes against Persons of Asian DescentRead the Press Release
WASHINGTON - As the District of Columbia and this nation have faced the unprecedented public health emergency posed by the COVID-19 pandemic, we also have witnessed, in some areas across our nation, an unsettling rise in crime that has targeted Asian-Americans. These acts are reprehensible and tear at the fabric of our society. Hate and bias-related crime have no place in our community, and any attack on Asian-Americans is an attack on us all. While we are making sacrifices and living and working in unusual conditions, we must continue to act responsibly and with compassion towards one another. The U.S. Attorney’s Office for the District of Columbia stands in solidarity with the community in seeking to root out hate- and bias-related crime.
The United States Attorney’s Office urges the community to be vigilant and to report any suspected hate- or bias-related crime to the Metropolitan Police Department (MPD) by dialing 9-1-1 in an emergency or contacting the MPD Hate Crimes Hotline by calling (202) 727-0500 or e-mailing [email protected].
29 Alleged Penn North Drug Dealers Facing Federal IndictmentsRead the Press Release
Baltimore, Maryland – A 10-month investigation by the Baltimore OCDETF Strike Force into violence and drug dealing in the area of Pennsylvania and North Avenues in West Baltimore has led to six federal indictments charging a total of 29 defendants for conspiracy, drug distribution, and firearms charges. The defendants are allegedly members of six different drug crews, each using a different name for their drugs, operating in a several block area in Penn North. The indictments remained sealed until today, as the majority of the defendants have now been arrested and had their initial appearances. Twenty-three defendants have been arrested. Five defendants are fugitives and a sixth defendant absconded from pretrial release.
The indictments were announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration, Baltimore District Office; Commissioner Michael Harrison of the Baltimore Police Department; Chief Melissa R. Hyatt of the Baltimore County Police Department; and Secretary Robert Green of the Maryland Department of Public Safety and Correctional Services.
Acting United States Attorney Jonathan F. Lenzner stated, “All too often, guns and drugs go hand in hand—and both tragically are killing a lot of people in Baltimore. The Strike Force will continue to target areas where violence is fueled by armed drug dealers. We are committed to working with our law enforcement partners to get both the guns and the drug dealers off of our streets and to reducing violent crime in our neighborhoods. The indictments we are announcing today reflect our commitment toward achieving that goal.”
“The Baltimore Police Department is committed to working alongside our law enforcement partners to target those involved in the illegal drug trade and those illegally carrying firearms in our city,” said Baltimore Police Commissioner Michael Harrison. “These indictments represent the great collaborative work that our agencies are doing to combat drug trafficking in some of our most challenged neighborhoods. We know that drug trafficking fuels violence in our communities and we must remain vigilant in combating these criminals who continue to contribute to overdose deaths in our city.”
“This case is another example of the Baltimore County Police Department’s commitment to work in partnership with our federal counterparts to aggressively dismantle those criminal enterprises that threaten the safety of our communities,” said Baltimore County Police Chief Melissa Hyatt.
Over the course of the investigation, law enforcement seized approximately $935,000 in cash, $70,000 worth of luxury jewelry, including Rolex watches, four kilograms of fentanyl—enough to kill 200,000 people, as well as quantities of cocaine and heroin, and nine firearms.
The first indictment (20-0268), returned on August 25, 2020, charges Wesley Clash, age 38; Dashelle Claridy, age 24; Vincent Davis, age 41; Myesha Jones, age 25; and Kevin Riggins, age 26, all of Baltimore, with conspiracy to distribute fentanyl, and crack and powder cocaine using the name “Dirty Sprite,” beginning no later than July 2019. Jones, Clash, and Claridy are also charged with possession with intent to distribute controlled substances. Kevin Riggins is a fugitive and Vincent Davis absconded from his pretrial release.
The second indictment (20-0269) was also returned on August 25, 2020. The 12-count indictment charges Jerold Gilliam, age 40; Akeem Ross, age 29; Charles Bond, age 25; Trevor Connors, age 50; Gilbert Conway, age 44; James Meekins, age 35; Isaiah Timms, age 28; Marquese Ward, age 30; and Welton Whittington, Jr., age 30, all of Baltimore for their participation in a conspiracy to distribute fentanyl and crack cocaine, using the name “Bullseye,” beginning in August 2019. Ross, Bond, Meekins Connors, and Gilliam are also charged with possession with intent to distribute controlled substances. Ward, Ross, Connors are charged with being felons in possession of a firearm and Ross and Connors are also charged with possession of a firearm during and in relation to a drug trafficking crime. Akeem Ross is a fugitive.
Five defendants are charged in a nine-count indictment (20-0385) that was returned by a federal grand jury on November 10, 2020. Ronald Green, age 47; Kinnard Riggs, age 46; Malik Gilmore, age 25; Edward Baker, age 36; Clifton Bryant, age 51; and Lawrence Nichols, age 50, all of Baltimore, allegedly participated in a conspiracy to distribute and possess with intent to distribute fentanyl using the name “Special,” from August 2019 through at least December 2019. Green, Riggs, Bryant, and Nichols are also charged with possession with intent to distribute controlled substances. Green and Riggs are each charged with possession of a firearm by a prohibited person and with possession of a firearm during and in relation to a drug trafficking offense. Lawrence Nichols is believed to be deceased.
A federal grand jury indicted (20-0386) Jerome Willingham, age 33, of Baltimore on November 10, 2020, charging him with conspiracy to distribute and possess with intent to distribute fentanyl that Willingham branded as “Lamar Jackson,” beginning in at least January 2020. Willingham is also charged with possession with intent to distribute controlled substances, possession of a firearm by a prohibited person, and possession of a firearm in furtherance of a drug trafficking offense. Willingham is a fugitive.
Torico Reaves, age 48; Michael Bowles, age 57, Shawn Jackson, age 48; Lafonte Johnson, age 40; Robert Ross, Jr., age 54; Albert Shields, age 51; and Kevin Toppin, age 33, all of Baltimore, are charged in a five-count indictment (20-0443) with conspiracy to distribute fentanyl between at least October 2019 and April 2020, using the brand name “Master P” for their fentanyl. The indictment was returned on December 9, 2020. Reaves, Toppin, Bowles, Jackson, and Ross are also charged with possession with intent to distribute controlled substances. Jackson is a fugitive.
Finally, Jacquez Maith-Bost, age 29, of Baltimore was indicted (20-0440) on December 9, 2020, charged with possession with intent to distribute heroin and crack cocaine on March 11, 2020, using the name “D. Rose”. Maith-Bost is also charged with possession of a firearm by a prohibited person and with possession of a firearm in furtherance of a drug trafficking offense.
The defendants face a minimum mandatory sentence of 10 years in prison and a maximum of life in prison for the conspiracy; a maximum of 20 year in federal prison for each count of possession with intent to distribute controlled substances; a maximum of life in federal prison for possession of a firearm in furtherance of a drug trafficking crime; and a maximum of 10 years in federal prison for possession of a firearm by a prohibited person. All of the defendants have had an initial appearance. Gilliam, Bond, Connors, Conway, Ward, Riggs, and Shields were ordered to be detained and the remaining defendants were released with conditions, under the supervision of U.S. Pretrial Services.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
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. Project Safe Neighborhoods (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.
This prosecution was brought as a part of the Department of Justice’s Organized Crime Drug Enforcement Task Forces (OCDETF) Co-located Strike Forces Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations against a continuum of priority targets and their affiliate illicit financial networks. These prosecutor-led co-located Strike Forces capitalize on the synergy created through the long-term relationships that can be forged by agents, analysts, and prosecutors who remain together over time, and they epitomize the model that has proven most effective in combating organized crime. The specific mission of the Baltimore OCDETF Strike Force is to reduce violent, drug-related, and gang crime in the Baltimore area and surrounding region.
Acting United States Attorney Jonathan F. Lenzner commended the DEA, the Baltimore Police Department, the Baltimore County Police Department, and the Maryland Department of Public Safety and Correctional Services for their work in the investigation and thanked the Office of the State’s Attorney for Baltimore City for its assistance. Mr. Lenzner thanked Assistant U.S. Attorneys Charles D. Austin and James T. Wallner, who are prosecuting the case.
# # #
13 Defendants Indicted in $5.4 Million Health Care Fraud ConspiracyRead the Press Release
Acting United States Attorney W. Anders Folk today announced charges against 13 defendants in a multi-million dollar health care fraud conspiracy. The defendants made their initial appearances yesterday before Magistrate Judge David T. Schultz in U.S. District Court.
According to the allegations in two separate indictments, 13 defendants are charged with participating in a scheme to defraud the Medicaid program. The scheme involved mental health practitioners and interpreters who were associated with Live Better, LLC, a patient services company with offices in Roseville and Minneapolis, and Multicultural Counseling Clinic (“MMCC”), a counseling clinic with offices in St. Paul, Brooklyn Park, and Burnsville. As part of the scheme, the health practitioners and interpreters would submit fraudulent claims through their respective employers for services purportedly provided to Medicaid recipients. In reality, neither the mental health services nor the ancillary interpretation services were rendered. Some defendants participated in this scheme for nearly three years. As a result of the false and fraudulent claims, the Medicaid program paid Live Better and MMCC a total of more than $5.4 million.
The two separate indictments charge defendants OKACH OKWAYOO KWOT, 51, ELIJAH S. KOLLIE, 62, ABDIRAHMAN YONIS, 33, ALPHONSO VASCO JOHNSON, 58, ILYAS ABDI FARAH, 38, ANAB ARTAN AWAD, 50, AYAN ALI MOHAMUD, 41, ELIFAA HENRY KINYAIYA, 45, VARBAR B. KANNEH, 30, ESKENDER M. YOUSUF, 39, HODAN ABDI HASHI, 52, OMAR ALI OSMAN, 28, and UBAH HASSAN HAGI, 43, with conspiracy and wire fraud.
This case is the result of an investigation conducted by the FBI, the U.S. Department of Health and Human Services Office of Inspector General, and the Minnesota Attorney General Office’s Medicaid Fraud Control Unit.
This case is being prosecuted by Assistant U.S. Attorney Angela M. Munoz.
The charges contained in the indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Defendant Information:
OKACH OKWAYOO KWOT, 51
Columbia Heights, Minn.
Charges:
- Conspiracy to commit wire fraud, 1 count
- Wire fraud, 3 counts
ELIJAH S. KOLLIE, 62
Robbinsdale, Minn.
Charges:
- Conspiracy to commit wire fraud, 1 count
- Wire fraud, 2 counts
ABDIRAHMAN YONIS, 33
Bloomington, Minn.
Charges:
- Conspiracy to commit wire fraud, 1 count
- Wire fraud, 2 counts
ALPHONSO VASCO JOHNSON, 58
Oakdale, Minn.
Charges:
- Conspiracy to commit wire fraud, 1 count
- Wire fraud, 2 counts
ILYAS ABDI FARAH, 38St. Louis Park, Minn.
Charges:
- Conspiracy to commit wire fraud, 1 count
- Wire fraud, 2 counts
ANAB ARTAN AWAD, 50
Plymouth, Minn.
Charges:
- Conspiracy to commit wire fraud, 1 count
- Wire fraud, 2 counts
AYAN ALI MOHAMUD, 41
St. Paul, Minn.
Charges:
- Conspiracy to commit wire fraud, 1 count
- Wire fraud, 2 counts
ELIFAA HENRY KINYAIYA, 45
Brooklyn Park, Minn.
Charges:
- Conspiracy to commit wire fraud, 1 count
- Wire fraud, 2 counts
VARBAR B. KANNEH, 30
New Brighton, Minn.
Charges:
- Conspiracy to commit wire fraud, 1 count
- Wire fraud, 2 counts
ESKENDER M. YOUSUF, 39
Maple Grove, Minn.
Charges:
- Conspiracy to commit wire fraud, 1 count
- Wire fraud, 2 counts
HODAN ABDI HASHI, 52
Woodbury, Minn.
Charges:
- Conspiracy to commit wire fraud, 1 count
- Wire fraud, 2 counts
OMAR ALI OSMAN, 28
Eagan, Minn.
Charges:
- Conspiracy to commit wire fraud, 1 count
- Wire fraud, 2 counts
UBAH HASSAN HAGI, 43
Eagan, Minn.
Charges:
- Conspiracy to commit wire fraud, 1 count
- Wire fraud, 2 counts
###
Additional news available on our website.
Follow us on Twitter and Facebook.
United States Attorney’s Office, District of Minnesota: (612) 664-5600
Wednesday 17 March 2021
Wolf Point man admits assaulting infantRead the Press Release
GREAT FALLS — A Wolf Point man accused of injuring an infant on the Fort Peck Indian Reservation pleaded guilty to assault charges today, Acting U.S. Attorney Leif Johnson said.
Charles Connor Clark, 27, pleaded guilty to assault resulting in serious bodily injury as charged in a superseding information. Clark faces a maximum 10 years in prison, a $250,000 fine, and three years of supervised release.
Chief U.S. District Judge Brian M. Morris presided. Chief Judge Morris set sentencing for June 16. Clark was detained pending further proceedings.
In court documents filed in the case, the government alleged that in November 2017, the FBI was notified that an infant, identified as John Doe, had been flown from Wolf Point, on the Fort Peck Indian Reservation, to a hospital in Billings. The victim appeared to have suffered life-threatening, non-accidental injuries. Doctors informed agents that John Doe’s injuries were classic signs of physical abuse. When interviewed, the victim’s mother said Clark had told her the victim had vomited, that he was trying to burp him and that the victim had choked.
Assistant U.S. Attorney Lori Suek is prosecuting the case, which was investigated by the FBI and Fort Peck Tribal Law Enforcement.
XXX
Wise Psychiatrist Sentenced for Federal Health Care FraudRead the Press Release
ABINGDON, Va.- Uzma Ehtesham, a Wise, Virginia psychiatrist who defrauded Virginia Medicaid and Medicare by fraudulently billing these programs for services not performed, was sentenced yesterday to two years’ probation, six months of which must be spent on home detention, Acting United States Attorney Daniel P. Bubar and Virginia Attorney General Mark Herring announced today.
Ehtesham, 52, pleaded guilty in November 2020 to a one-count Information charging her with health care fraud.
“Eradicating health care fraud remains a top priority for this office,” said Acting U.S. Attorney Bubar today. “When people like Ehtesham’s steal from our state and federal programs, they divert funds from the most vulnerable in our communities. We will continue to work closely with the local, state, and federal law enforcement partners whose good work brought Ehtesham to justice.”
“Health care providers and other individuals who defraud our health care system just to line their own pockets are not only stealing from Medicaid and Medicare, but they are also stealing from taxpayers and they must be held accountable,” said Attorney General Herring. “I want to thank our state and federal partners for their cooperation on this case, as well as my Medicaid Fraud Control Unit for their hard work and dedication.”
According to court documents, from 2010 to 2016, Ehtesham devised a scheme to defraud Virginia Medicaid and Medicare by billing for individual office visits when she often saw patients in groups. Frequently, Ehtesham would meet with patients in groups of two to four in a single visit, but subsequently bill as if she had met with them independently.
In addition, Ehtesham billed for extensive, time consuming, and costly office visits when she was conducting brief office visits with a patient. In many instances, Ehtesham would only meet with a patient for five to six minutes and then billed for services not supported by required documentation.
During the time of the investigation, Ehtesham was seeing more than 50 patients per day. Prescriptions were often written in advance of a scheduled visit by the office staff, placed in patient files, and signed by Ehtesham during the brief patient visit. At times, Ehtesham did not employ any medically certified staff to compile a patient’s vital statistics – such as blood pressure, pulse, height and weight? -- at each visit. Instead, vital statistics were copied from previous patient visits to each new visit information sheet at Ehtesham’s direction.
As part of the scheme, Ehtesham received $500,000 in fraudulently obtained proceeds from Virginia Medicare and Medicaid.
As part of the plea agreement, Ehtesham is required to pay a total of $1,000,000 in restitution, fines, and forfeiture.
The investigation of the case was conducted by the Virginia Office of the Attorney General’s Medicaid Fraud Control Unit, Norton Police Department, Southwest Virginia Drug Task Force, and Virginia State Police. The following agencies assisted with the execution of a search warrant during the investigation: Big Stone Gap Police Department, Virginia Alcohol and Beverage Control Special Investigations Unit, Wise County Commonwealth’s Attorney’s Office, Wise County Sheriff’s Office, and Wise Police Department. Special Assistant United States Attorney Suzanne Kerney-Quillen, a Virginia Assistant Attorney General assigned to the Major Crimes and Emerging Threat Unit, is prosecuting the case for the United States. Virginia Assistant Attorney Generals and Special Assistant United States Attorneys Janine Myatt and Joe Hall also assisted with the investigation.
Westfield Woman Pleads Guilty to Sex Trafficking ConspiracyRead the Press Release
BOSTON – A Westfield woman pleaded guilty in federal court in Springfield yesterday to conspiracy to commit sex trafficking.
Jaclyn Lemelin, 35, pleaded guilty to one count of conspiracy to commit sex trafficking. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for June 15, 2021. Lemelin was charged by complaint in December 2018.
Co-conspirator William Coleman previously pleaded guilty to one count of conspiracy to commit sex trafficking and nine counts of sex trafficking and was sentenced to 186 months in prison in September 2020.
As stated during court proceedings, Lemelin conspired with Coleman who operated a sex trafficking enterprise that used violence and the drug addictions of female victims to coerce them into engaging in commercial sex acts with paying customers. The victims were typically required to turn over all of their earnings to Coleman and were subject to his tight control over their daily lives. Most of the women were not allowed to keep any of the money they earned, and they were only to obtain the drugs they needed from Coleman. In most cases, the victims were addicted to heroin.
Victims who did not engage in prostitution for Coleman, or who did not follow his rules, were subjected to physical assaults, sexual violence and the withholding of drugs. Coleman enlisted Lemelin, among others, to carry out tasks associated with the trafficking enterprise.
Lemelin admitted that she assaulted two victims working for Coleman and was paid by Coleman for each assault. The assaults were for perceived violations of Coleman’s rules. Lemelin also admitted that she rented cars for Coleman to be used in the trafficking enterprise.
Co-conspirators Virginia Maldonado, 32, and Shannon Yelinek, 36, pleaded guilty earlier this month to conspiracy to commit sex trafficking and are scheduled to be sentenced on June 3 and 4, 2021, respectively.
The charge of conspiracy to commit sex trafficking provides for a sentence of up to life in prison, a lifetime 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; Hampden County District Attorney Anthony D. Gulluni; William S. Walker, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Hampden County Sheriff Nicholas Cocchi; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Springfield Police Commissioner Cheryl Clapprood; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police made the announcement. Assistant U.S. Attorney Alex J. Grant of Mendell’s Springfield Branch Office prosecuted the case.
This case is the result of the efforts of the Western Massachusetts Human Trafficking Working Group, which was established in August 2015 to investigate and prosecute crimes involving commercial sex trafficking.
USP Lewisburg Inmate Charged with Possession of A WeaponRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Hugo Reynosa, age 25, an inmate at the United States Penitentiary Lewisburg (USP Lewisburg) was indicted on March 16, 2021, by a federal grand jury for being in possession of a weapon in prison.
According to Acting United States Attorney Bruce D. Brandler, the indictment alleges that during a search conducted on May 12, 2020, Reynosa was found in possession of a homemade sharpened piece of metal, commonly referred to as a “shank,” that was designed and intended to be used as a weapon.
The charges stem from an investigation by USP Lewisburg and the Federal Bureau of Investigation. Assistant United States Attorney Alisan V. Martin is prosecuting the case.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Reynosa is facing a maximum of five years of incarceration and a $250,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
U.S. Attorney's Office Seeks to Return 1996 Ferrari Taken into Custody at the Peace Bridge to Its Rightful OwnerRead 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 the United States Attorney’s Office for the Western District of New York has filed a civil action seeking to determine the ownership of a 1996 Ferrari F50.
Assistant U.S. Attorney Paul C. Parisi, who is handling the case, stated that according to the civil complaint, the Italian luxury sports car was being transported across the border from Canada into the United States at the Peace Bridge Port of Entry on December 14, 2019, at which time the vehicle was taken into custody by Customs and Border Protection (CBP). Subsequent investigation by CBP officers determined that the vehicle was reported stolen in Italy in 2003. Since being taken into custody by CBP officers, multiple parties have claimed ownership of the vehicle. The Government filed the civil action with the Court to determine who can take ownership of the vehicle, which is valued at an estimated $1,900,000.
The Ferrari was initially taken into custody after it was discovered during the inspection of the vehicle at the border that some of the rivets on the VIN plate located on the dashboard were covered in a black tar type substance, which is inconsistent with factory standards. Due to the inconsistencies, CBP placed a hold on the vehicle to conduct additional investigation of the Ferrari’s history.
“After investigation, my Office determined that it would not be appropriate for us to exercise our authority and forfeit this extremely valuable and previously stolen luxury car,” stated U.S. Attorney Kennedy. “Instead, after an 18-year odyssey, which we know took it across continents and countries, we have decided that the time has come for a court of law to determine the rightful owner of the vehicle.”
“This case highlights the hard work, dedication, and enforcement mindset of our officers,” said CBP Buffalo Director Field Operations, Rose Brophy. “We continue to work closely with our law enforcement partners, even through an extensive time frame and over multiple countries, as shown with the outstanding teamwork by all involved in this case.”
The complaint is the result of an investigation by Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy, and Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
# # # #
Two Indicted for Conspiring to Distribute Fentanyl following Investigation by PA State Police and Homeland Security InvestigationsRead the Press Release
PITTSBURGH, PA – A Philadelphia woman and Dominican Republican man have been charged federally with violating federal drug laws, Acting United States Attorney Stephen R. Kaufman announced today.
The two-count Indictment named, Yarelis Mary Garcia Corretjer, 23, of Philadelphia, Pennsylvania, and Reyelin Manuel Abreu Vasquez, 23, of the Dominican Republic.
According to the Indictment, on or about September 16, 2020, Garcia Corretjer and Abreu Vasquez conspired to possess with intent to distribute fentanyl. Also, on September 16, 2020, Troopers with the Pennsylvania State Police (PSP) Safe Highways Initiative through Effective Law Enforcement and Detection (SHIELD) Unit, seized from the vehicle, occupied by Garcia Corretjer and Abreu Vasquez, approximately 400 bricks of suspected fentanyl. The suspected fentanyl field-tested positive for the controlled substance. Abreau Vasquez informed law enforcement that he was illegally in the United States and had crossed the Mexican border approximately four years ago.
The law provides for a maximum total sentence of not more than life in prison, a fine of $10,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The Department of Homeland Security Investigations (HSI) and the Pennsylvania State Police conducted the investigation leading to the Indictment in this case.
Assistant United States Attorney Katherine C. Jordan is prosecuting this case for the government.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Telemarket Fraudster Sentenced to Federal PrisonRead the Press Release
PROVIDENCE – An Indian national who owned and operated an India-based call center that targeted and defrauded Americans, mostly senior citizens, and who assisted other India-based call centers in doing the same, that collectively intended to bilk Americans out of millions of dollars, was sentenced today in U.S. District Court in Providence to three years in federal prison.
Sahil Narang, 29, of Gurgoan Haryana, India, who was in the United States illegally at the time of his arrest in May 2019, is described in court documents as a key participant in sophisticated so-called Tech Fraud and Refund Fraud online telemarketing schemes that targeted technologically unsophisticated computer users, usually senior citizens.
In the Tech Fraud scheme, Internet pop-up advertisements were used to deceive computer users into believing that they needed computer protection services. The pop-up ads provided a telephone number to call, and on dialing the number, the victims were routed to call center operators who perpetuated the lie that malware had been detected on the victims’ computers and offered the victims supposed computer protection services at exaggerated prices.
In the Refund Fraud scheme, call center operators telephoned those who had fallen prey to Tech Fraud and offered to refund the sum previously paid. Through manipulation – usually the display of false bank account balances on the victims’ computer screens – the operators convinced the victims that sums far in excess of the refund amount had accidentally been deposited into the victims’ accounts. Because the victims had not in fact received any money, those who “returned” money were actually sending more of their own money to the fraudsters.
According to information presented to the court, between August 30, 2019, and May 1, 2019, employing the Tech Fraud scheme, Narang and others worked together to manipulate thousands of callers, seeking to obtain from them an estimated $1.5 million to $3 million dollars. An FBI investigation determined that over a nine-month period Narang routed on average more than 70 calls to call centers every day. It is also estimated that Narang’s Tech Fraud scheme was successful 30% of the time.
In round two of the scheme, the Refund Fraud scheme, executed during the same nine-month period, Narang and others associated with call centers sought to obtain from their victims cumulatively $560,900 dollars. The FBI investigation identified at least nine individuals who fell victim to the Tech Fraud Scheme at a total loss of $110,900, which the FBI was able to intercept and return to the victims. During the investigation the FBI interceded and prevented loss when a tenth victim was on the verge of losing up to $450,000 to the fraudsters.
Sahil Narang pleaded guilty on December 11, 2020, to conspiracy to commit wire fraud and ten counts of wire fraud. He was sentenced today to 36 months in federal prison to be followed by three years of supervised release, announced Acting United States Attorney Richard B. Myrus. A restitution order will be forthcoming from the Court.
The case was prosecuted by Assistant U.S. Attorney Milind M. Shah.
###
Tax Preparer Charged with COVID-19 Loan FraudRead the Press Release
A South Florida tax preparer was charged Tuesday by criminal information with wire fraud in connection with a scheme to obtain over 100 COVID-19-relief loans under the Paycheck Protection Program (PPP).
According to the allegations in the information, Leonel Rivero, 35, of Miami, owned a tax-preparation business and submitted approximately 118 fraudulent PPP loan applications on behalf of himself and his accomplices. Combined, the 118 PPP loan applications sought more than $2.3 million in PPP loans. On each PPP loan application, Rivero allegedly falsified the applicant’s prior-year income and expenses and submitted fraudulent IRS tax forms. Rivero and his accomplices allegedly received approximately $975,582 in PPP loans as a result of the fraud.
Rivero is scheduled for his initial court appearance on March 23 in the U.S. District Court for the Southern District of Florida. If convicted, Rivero faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; U.S. Attorney Ariana Fajardo Orshan of the U.S. Attorney’s Office for the Southern District of Florida; Special Agent in Charge Michael J. De Palma of the IRS-Criminal Investigation (IRS-CI) Miami Office; and Special Agent in Charge Amaleka McCall-Brathwaite of the U.S. Small Business Administration, Office of Inspector General (SBA-OIG), Investigations Division, Eastern Regional Office, made the announcement.
The IRS-CI is investigating the case with assistance from the SBA-OIG.
Trial Attorney Della Sentilles of the Justice Department’s Fraud Section and Assistant U.S. Attorney Christopher Browne of the U.S. Attorney’s Office for the Southern District of Florida are prosecuting the case. Assistant U.S. Attorney Nicole Grosnoff is handling the asset-forfeiture component of the case.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1%. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal on the PPP loan to be forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses at least a certain percentage of the PPP loan proceeds on payroll expenses.
The Fraud Section leads the Department of Justice’s prosecution of fraud schemes that exploit the CARES Act. In the months since the CARES Act was passed, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases. The Fraud Section has also seized more than $65 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real-estate properties and luxury items purchased with such proceeds. More information can be found at: https://www.justice.gov/criminal-fraud/cares-act-fraud.
Anyone with general information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
An information is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
St. Martinville Man Sentenced to Federal Prison for Distribution of Child PornographyRead the Press Release
LAFAYETTE, La. – Anthony Sal Melancon, Jr., 48, of St. Martinville, Louisiana, was sentenced today by United States District Judge Michael J. Juneau to 120 months (10 years) in prison, followed by 15 years of supervised release, for distribution of child pornography.
A federal grand jury in Lafayette returned an indictment on August 21, 2019 charging Melancon with child pornography offenses. Melancon pleaded guilty to distribution of child pornography on December 14, 2020. Evidence introduced at the hearing established that while in a sexual relationship with a woman, Melancon discussed with her his desire to have sex with a minor girl and he asked the woman if she would agree to have sex with Melancon and a minor girl. On January 21, 2017, Melancon sent the woman a pornographic image over the internet of a prepubescent girl that he claimed he had performed sexual acts upon. Melancon began asking the woman to send pictures of her minor daughter to him. The woman’s husband found the communications on the woman’s laptop and contacted law enforcement. A search warrant was executed and Melancon admitted to law enforcement agents that he sent the child pornography images over the internet.
The U.S. Department of Homeland Security – Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney J. Luke Walker prosecuted the case.
# # #
Shenandoah County Man Pleads Guilty to Possession ofRead the Press Release
HARRISONBURG, Va. – Paul Wayne Shell, a convicted felon prohibited from possessing explosive materials, pleaded guilty today in U.S. District Court to possessing a series of military grade explosives items, Acting United States Attorney Daniel P. Bubar and Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Washington Field Division announced today.
Shell, 51, pleaded guilty yesterday to one count of possession of explosive materials by a prohibited person. At sentencing Shell faces up to 10 years in prison and a fine of up to $250,000.
According to court documents, in August 2019 the ATF and a Shenandoah County Fire Marshal received information that Shell was in possession of trip mines, dummy mines, tear gas, and other military grade items that he was willing to sell.
On August 29, 2019, investigators with ATF setup a controlled buy from Shell in a parking lot in Quicksburg, Virginia. At that time, Shell sold investigators smoke grenades, tear gas, trip wires, red flare rockets, and hand grenade demos, for $900.
In an interview with law enforcement on September 3, 2019, Shell admitted he stole the items 10 years earlier from a farm where he worked. Shell told investigators he believed the explosives were being sold to a motorcycle gang.
The investigation of the case was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Shenandoah County Fire Marshal. Assistant United States Attorney Heather L. Carlton is prosecuting the case for the United States.
Seattle computer security consultant indicted for threatening cyberstalking campaign against a former roommate, her family members, boyfriend, police, and prosecutorsRead the Press Release
Seattle – A Seattle man employed as a cyber security consultant was indicted today by a federal grand jury for conspiracy to engage in cyberstalking, three counts of cyberstalking in violation of criminal order, and two counts of cyberstalking, announced Acting U.S. Attorney Tessa M. Gorman. SUMIT GARG, 31, was transferred to federal custody last week and was ordered detained at the Federal Detention Center at SeaTac on March 15, 2021. GARG will be arraigned on the indictment Thursday March 25, 2021.
According to a detailed criminal complaint and the indictment in the case, GARG has been involved in an extensive campaign of threats and sexually explicit messaging and posts about a woman who used to share an apartment with GARG’s spouse. Using personal information GARG accessed after he moved into the apartment with his spouse, GARG has threatened and tormented the former roommate in violation of court order. GARG allegedly also used his computer skills to threaten multiple people in the former roommate’s life, including her uncle who represented her in obtaining a civil protection order; her current boyfriend; the Seattle Police Detective who investigated the threats; and even the Deputy Prosecuting Attorney who filed charges against GARG for his illegal stalking conduct. GARG used his computer skills to try to hide who was sending the threats or making the posts. At one point in his scheme, GARG was videotaped in the lobby of the victim’s new apartment building at the same time photos were taken and sent of that location to frighten the victim.
Conspiracy to engage in cyberstalking is punishable by up to five years in prison. Cyberstalking in violation of criminal order is punishable by a mandatory minimum of one year and a maximum of five years in prison. Cyberstalking is punishable by up to five years in prison.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the United States Secret Service with assistance from the Seattle Police Department.
The case is being prosecuted by Assistant United States Attorney Francis Franze-Nakamura.
garg_indictment.pdfRochester Man Sentened for Selling Cocaine and Laundering the ProceedsRead 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 Edwin Calderon, 39, of Rochester, NY, who was convicted of conspiring to possess with intent to distribute, and to distribute, 500 grams or more of cocaine, and conspiring to commit money laundering, was sentenced to serve 120 months in prison by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Katelyn M. Hartford, who handled the case, stated that between 2015 and September 27, 2018, the defendant conspired with Carlos Cruz-Garcia and others, to sell cocaine. Calderon obtained quantities of cocaine to distribute in the Rochester area. Some came through the United States Postal Service addressed to other people, including Cruz-Garcia. Those packages contained half-kilogram quantities of cocaine and were shipped from Puerto Rico. Co-conspirators would then deliver the packages to the defendant who would sell the cocaine for profit.
In furtherance of the money laundering conspiracy, Calderon and his co-conspirators exchanged small denomination bills from drug sales for larger denomination bills at banks, in an effort to reduce the physical size of the bills and, therefore, make it easier to conceal and transport.
On July 20 and July 31, 2018, the defendant and Cruz-Garcia traveled to a credit union on Ridge Road in Rochester and exchanged approximately $11,000 worth of small denomination bills for $100 bills. On July 20, 2018, Calderon and Cruz-Garcia traveled to another credit union on Mt. Read Boulevard in Rochester and exchanged approximately $8,000 worth of small denomination bills for $100 bills. After obtaining the larger denomination bills, the defendant and his co-conspirators would send large amounts of money – consisting of drug proceeds – concealed in multiple packages through the United States Postal Service from Rochester to Puerto Rico.
Calderon was charged along with Carlos Cruz-Garcia and Manuel Medina. All three defendants have been convicted.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division, and the United States Postal Inspection Service, under the direction of Inspector-in-Charge Joseph W. Cronin of the Boston Division.
# # # #
Rochester Man Pleads Guilty to Participating in Fentanyl Trafficking ConspiracyRead the Press Release
CONCORD - Matthew Gittings, 37, of Rochester, pleaded guilty in federal court to conspiracy to possess fentanyl with intent to distribute, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, on December 19, 2018, a New Hampshire state trooper initiated a traffic stop on I-95 after observing a motor vehicle violation. Gittings was one of two passengers and was seated in the rear of the vehicle. After speaking to the driver outside of the vehicle, the trooper asked Gittings for his identification. When the trooper opened the rear passenger door to retrieve Gittings’ identification, he observed a large knotted plastic baggie of fentanyl in the rear door compartment. A consensual search of Gittings’ backpack revealed two digital scales, unused plastic baggies, and rubber bands. The trooper conducted a pat search of Gittings and located additional fentanyl.
Gittings is scheduled to be sentenced on June 23, 2021.
“The damage that fentanyl has caused to our communities cannot be overstated,” said Acting U.S. Attorney Farley. “We continue to work closely with our law enforcement partners to identify and prosecute the drug traffickers who are responsible for peddling this dangerous substance in the Granite State.”
This matter was investigated by the Drug Enforcement Administration and New Hampshire State Police Mobile Enforcement Team. The case is being prosecuted by Assistant U.S. Attorney Jennifer Cole Davis.
This investigation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
###
Repeat Meth Trafficker Sentenced to 14 Years Federal PrisonRead the Press Release
VALDOSTA, Ga. – A Doerun, Georgia, resident found guilty of distributing large amounts of methamphetamine in two southwest Georgia communities was sentenced to 14 years in federal prison today for his crimes, said Peter D. Leary, the Acting U.S. Attorney for the Middle District of Georgia.
Samuel Matthew “Cruz” Howard, 27, of Doerun, Georgia, was sentenced to serve 168 months in a federal prison, to be followed by five years of supervised release, by U.S. District Judge Louis Sands after Howard was found guilty of two counts of possession of methamphetamine with intent to distribute following a bench trial before Judge Sands on August 6, 2020. There is no parole in the federal system.
“The defendant brazenly continued pushing large quantities of methamphetamine into southwest Georgia communities, even following his first arrest. Howard’s repeat criminal actions have resulted in a lengthy federal prison sentence,” said Acting U.S. Attorney Leary. “I want to commend the Thomas County-Thomasville Narcotics/Vice Division and the DEA for their excellent investigative work in this case and helping bring this repeat offender to justice.”
“This ‘meth’ trafficker, who happens to be a repeat offender, was ultimately sentenced because of DEA’s commitment to remove dangerous drugs from our streets to protect our communities,” said the Special Agent in Charge of the DEA Atlanta Field Division, Robert J. Murphy. “Mr. Cruz will now spend well-deserved time in prison, and his apprehension makes the southwest Georgia community a safer place today.”
“As drug dealers prey on communities, they often ignore county or state lines. It’s great to have the cooperation of all state and federal agencies to aid in the arrest and prosecution of these drug traffickers. Hopefully, Mr. Howard’s arrest and incarceration will be a deterrent to current and/or future drug traffickers,” said Lieutenant Commander Louis Schofill, Thomas County-Thomasville Narcotics/Vice Division.
According to the facts presented by the Government, the defendant was taken into custody on two separate occasions for attempting to distribute large quantities of methamphetamine in communities in southwest Georgia. The first incident occurred on October 11, 2016. A Thomas County-Thomasville Narcotics/Vice Division agent received information from a confidential source (CS) who stated that a male known as “Cruz” would be delivering a large quantity of methamphetamine to someone at a residence on North Church Street in Meigs, Georgia, within the hour. Agents, conducting surveillance, observed the defendant drive up to the residence in a blue Buick, and they approached Howard. During a legal search of Howard’s vehicle, agents found three plastic sandwich bags containing 85.2 grams of 99% pure “ice” methamphetamine inside the center console armrest, a gray zip pouch containing numerous empty plastic sandwich bags, a digital scale and $1,819 under the armrest. A search warrant of Howard’s cell phone revealed numerous text messages to and from Howard discussing drug transactions and prices right up to the hour of his arrest.
The second incident occurred on April 26, 2018, when Howard was arrested in possession of approximately 222.3 grams of methamphetamine. This time, a CS contacted Howard via text message to arrange the purchase of methamphetamine from Howard at a McDonald’s in Adel, Georgia. Howard was taken into custody at the McDonald’s in possession of a box with “Gucci” written on it, containing 222.3 grams of methamphetamine, found inside his blue Buick. The defendant has a criminal history and was previously convicted of Theft by Taking in Colquitt County Superior Court.
The case was investigated by Drug Enforcement Administration (DEA) and Thomas County-Thomasville Narcotics/Vice Division. Assistant U.S. Attorney Leah McEwen prosecuted the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Registered sex offender sentenced to 35 years for sexual exploitation of children and receipt and distribution of visual depictions of minors engaged in sexually explicit conductRead the Press Release
Acting U.S. Attorney Bridget M. Brennan announced today that James Marquand, 39, of Madison, Ohio, was sentenced by U.S. District Court Judge Sara Lioi to a term of 420 months imprisonment and ordered to pay $13,000 in restitution after he pleaded guilty in October of 2020 to sexual exploitation of children and receipt and distribution of visual depictions of real minors engaged in sexually explicit conduct. Additionally, the Court recommended that Marquand receive any mental health, drug abuse, and sex offender treatment for which he qualifies and is prohibited from accessing the internet without supervision.
“Serial child predators bring these significant terms of incarceration on themselves. It is as simple as that,” said Acting U.S. Attorney Bridget M. Brennan. “Despite prior convictions for similar conduct, this defendant chose to sexually exploit a child and also to repeatedly exploit other children by receiving and distributing more than 100 images of them. Because of the collaborative efforts of the Federal Bureau of Investigation and the Cuyahoga County Prosecutor’s Office, as well as the dedication of the Assistant U.S. Attorneys who prosecute these matters, this predator’s 35-year term of incarceration guarantees that he is no longer a threat to our children.”
“This is a lengthy, well-deserved sentence,” said FBI Special Agent in Charge Eric B. Smith. “Marquand has a history of sexually exploiting minors and it's clear he learned nothing from his prior incarceration. Fortunately, this most recent sentence will ensure this predator will be kept away from children for 35 years. All of us share a responsibility to protect innocent children, especially from sexual predators, whether online or in your own home."
“This predator, who is a previously convicted sex offender, sexually abused a minor and uploaded more than 100 files of child abuse material,” said Cuyahoga County Prosecutor Michael C. O’Malley. “Our community is significantly safer with him behind bars for the next 35 years.”
According to court records and statements made during courtroom proceedings, in October of 2019, the Ohio Internet Crimes Against Children Task Force (ICAC) received a tip from the National Center of Missing and Exploited Children that a Google email address had uploaded 120 images of known child pornography to Google Photos. Through subpoenas, investigators traced the IP address used to upload the photos to Defendant James Marquand, who was living in Madison, Ohio.
At the time of the investigation, Marquand was on parole from a conviction in Cuyahoga County for attempted rape and unlawful sexual conduct with a minor. Additionally, Marquand was a registered sex offender who had been convicted for not providing notice of his change of address, in violation of his Sex Offender Registration provisions and was currently living at an address from which he was prohibited.
Law enforcement reviewed Marquand’s Google account in response to a federal warrant and found fifty-six files depicting minors engaged in sexual conduct. These images were uploaded to a Google account belonging to Marquand between March and September of 2019. Later, Marquand’s Google account was forensically analyzed and found to contain 150 images and 97 videos of child pornography. Court records state that the account also contained sexually explicit images and videos of Minor Victim #1, a four-year-old girl engaged in sexual conduct with Marquand.
Law enforcement officers interviewed Marquand, and he admitted to engaging in the conduct with Minor Victim #1 on multiple occasions and recording some instances on his cellphone.
This case was investigated by the Cleveland Division of the FBI, Ohio Internet Crimes Against Children Task Force and the Cleveland Adult Parole Authority (APA) Sex Offender Unit. This case was prosecuted by Assistant U.S. Attorneys Carol M. Skutnik and John C. Hanley.
Quincy Man Sentenced to 12 1/2 Years in Federal Prison for Trafficking MethamphetamineRead the Press Release
SPRINGFIELD, Ill. – Senior U.S. District Judge Richard Mills today sentenced Sharnell Washington, 25, of Quincy, Ill., to serve 151 months (12 years 7 months) in federal prison for trafficking methamphetamine in Quincy in 2020. Washington, whose last known address was in the 800 block of N. 7th St., has remained in law enforcement custody since his arrest in March 2020.
Washington pleaded guilty on Jan. 27, 2021, to distribution of methamphetamine and was found responsible for approximately 46.84 grams of pure meth, or ice, and an additional two grams of a mixture containing methamphetamine.
At sentencing, the court noted that Washington was convicted in Adams County in December 2016 for aggravated battery to a child and has prior convictions for trafficking methamphetamine.
The West Central Illinois Task Force; Illinois State Police; and the Drug Enforcement Administration investigated the case. Assistant U.S. Attorney Gregory M. Gilmore represented the government in the prosecution in cooperation with the Office of Adams County State’s Attorney Gary Farha.
Pulaski County Man Sentenced to 180 Months for Armed Methamphetamine TraffickingRead the Press Release
LONDON, Ky.— Danny Butt, 48, of Science Hill, Ky., was sentenced to 180 months in federal prison on Wednesday, by U.S. District Judge Claria Horn Boom, after previously pleading guilty to possession with intent to distribute 50 grams or more of methamphetamine and possession of a firearm in furtherance of drug trafficking.
According to Butt’s plea agreement, on August 11, 2020, law enforcement conducted a search warrant at Butt’s residence and found him in possession of 50 grams of methamphetamine, which he admitted was his and intended to sell. In the same room, law enforcement found digital scales, baggies, syringes, cash, a loaded rifle, and a loaded pistol. Butt admitted to owning the firearms to protect himself, his methamphetamine, and the proceeds.
Butt pleaded guilty in November 2020.
Under federal law, Butt must serve 85 percent of their prison sentence. Upon Butt’s release from prison, he will be under the supervision of the U.S. Probation Office for four years.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky, James Robert Brown, Jr., Special Agent in Charge, FBI, Louisville Field Office and Greg Speck, Pulaski County Sheriff , jointly announced the sentence.
The investigation was conducted by the FBI and the Pulaski County Sheriff's Department. The United States was represented by Assistant U.S. Attorney Andrew Trimble.
This is case was prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, the U.S. Attorney coordinates PSN efforts, in cooperation with various federal, state, and local law enforcement officials.
This case is also part of Project Guardian, the Department of Justice’s targeted initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. Click here for more information about Project Guardian.
Portland Man Sentenced on Federal Gun and Drug ChargesRead the Press Release
PORTLAND, Maine: A Portland man was sentenced in federal court yesterday for possessing cocaine base with intent to distribute and possessing a firearm after being convicted of a felony, Acting U.S. Attorney Donald E. Clark announced.
U.S. District Judge George Z. Singal sentenced Alexander Burnham, 22, to 70 months in prison and three years of supervised release. Burnham pleaded guilty in October 2020.
According to court records, on April 7, 2020, Burnham accidently shot himself in the leg with a Smith & Wesson 9 mm semi-automatic pistol. While being driven to the hospital for the injury, he threw the loaded firearm and crack cocaine out the window of the vehicle. He was prohibited from possessing firearms because of his prior felony convictions.
The FBI Safe Streets Task Force and the Westbrook Police Department investigated the case.
Pharmacist and Pharmacy Technician Charged in a $1.2 Million Illegal Opioid Distribution ConspiracyRead the Press Release
An indictment was unsealed charging a pharmacist and a pharmacy technician with conspiracy to illegally distribute prescription drugs, announced Acting U.S. Attorney Saima Mohsin.
Mohsin was joined in the announcement by Special Agent in Charge Keith Martin, U.S. Drug Enforcement Administration, Detroit Field Division; Special Agent in Charge Timothy Waters, Federal Bureau of Investigation, Detroit Division; and Special Agent in Charge Lamont Pugh, the Department of Health and Human Services, Office of the Inspector General (HHS-OIG).
Charged were Cosmos George, 46, of Southfield and Tarielle Dixon, 33, of Detroit.
According to the indictment, from September 2017 through June 2020, Cosmos George, a pharmacist working at the Village Script East Pharmacy located in Dearborn and Tarielle Dixon, a pharmacy technician working at the Nottingham Pharmacy located in Detroit, conspired with others to dispense a large number of prescription opioids for fictitious patients who did not have a legitimate medical need for the drugs. Both George and Dixon dispensed addictive and highly diverted prescriptions for the same opioid distribution ring.
Over the course of the conspiracy, George and Dixon primarily dispensed oxycodone and oxymorphone, two of the most addictive opioids that have high black market resale values.
The indictment further alleges that the pharmacies dispensed more than 41,995 dosage units of Schedule II opioid prescriptions during the course of the conspiracy. These controlled substances had a conservative street value in excess of $1,200,000.
This case is being prosecuted by Assistant United States Attorneys Mitra Jafary-Hariri and Brandy R. McMillion. The Eastern District of Michigan is one of the twelve districts included in the Opioid Fraud Abuse and Detection Unit, a Department of Justice initiative, using data to target and prosecute individuals that are contributing to the nation’s opioid crisis.
If convicted of the charges, each face a statutory maximum penalty of 20 years in federal prison.
An indictment is only a charge and is not evidence of guilt. Each defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Pharmacist Charged in $4 Million Health Care Fraud and Kickback SchemeRead the Press Release
A New York man was arrested today for his role in a conspiracy to commit health care fraud and to pay kickbacks and bribes to customers for expensive prescription orders in connection with more than $4 million in Medicare and Medicaid reimbursements.
According to an indictment returned by a federal grand jury in the Eastern District of New York, Robert John Sabet, 44, of Brooklyn, was the owner of Brooklyn Chemists in Gravesend, Brooklyn, and Lucky Care Pharmacy in Flushing, Queens. Since September 2016, Sabet allegedly conspired to bill Medicare and Medicaid for expensive prescription drugs that were not eligible for reimbursement because, among other reasons, they were not needed or not dispensed. Sabet also allegedly conspired to pay kickbacks and bribes to customers to convince them to fill prescriptions at his pharmacies, and to pay customers cash in exchange for the ability to bill Medicare and Medicaid for over-the-counter health care-related products on their behalf.
In December 2020, Sabet allegedly wired nearly $100,000 from Lucky Care’s bank accounts to an automobile dealership to pay for a luxury car. Investigators conducted a search warrant at Sabet’s home at the time of his arrest and seized a 2020 Porsche Taycan worth over $250,000, as well as cash and luxury goods.
Sabet is charged with conspiracy to commit health care fraud, conspiracy to defraud the United States by paying kickbacks and bribes in connection with the provision of health care services, and unlawfully spending the proceeds of his fraud. The defendant is scheduled for his initial court appearance today before U.S. Magistrate Judge Ramon E. Reyes, Jr. of the U.S. District Court for the Eastern District of New York. If convicted, he faces a maximum penalty of 10 years in prison for conspiracy to commit health care fraud, five years in prison for conspiracy to pay kickbacks and bribes, and 10 years in prison for unlawful spending. 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 Seth D. DuCharme of the Eastern District of New York; Special Agent in Charge Scott J. Lampert of the Health and Human Services Office of Inspector General (HHS-OIG), New York Regional Office; Special Agent in Charge Jonathan D. Larsen of IRS-Criminal Investigation (IRS-CI), New York; and Acting Medicaid Inspector General Frank T. Walsh Jr. of the New York State Office of the Medicaid Inspector General (OMIG) made the announcement.
HHS-OIG, IRS-CI, and OMIG are investigating the case.
Trial Attorney Miriam L. Glaser Dauermann of the Justice Department’s Fraud Section is prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Owner of Pharmacies in Brooklyn and Queens Charged in Healthcare Fraud and Kickback SchemeRead the Press Release
BROOKLYN, NY – An indictment was unsealed today in federal court in Brooklyn charging Robert John Sabet, the owner of Brooklyn Chemists in Gravesend, Brooklyn, and Lucky Care Pharmacy in Flushing, Queens, with conspiracy to commit health care fraud, conspiracy to defraud the United States by paying kickbacks and bribes in connection with the provision of health care services, and unlawfully spending the proceeds of his fraud. Sabet was arrested today and is scheduled to be arraigned this afternoon via videoconference before United States Magistrate Judge Ramon E. Reyes, Jr.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York; Nicholas L. McQuaid, Acting Assistant Attorney General of the Justice Department’s Criminal Division; Scott J. Lampert, Special Agent-in-Charge, Health and Human Services, Office of Inspector General, New York Regional Office (HHS-OIG); Jonathan D. Larsen, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York (IRS-CI); and Frank T. Walsh, Jr., Acting Medicaid Inspector General, New York State Office of the Medicaid Inspector General (OMIG), announced the arrest and indictment..
“The defendant’s alleged participation in health care fraud, and his payment of kickbacks and bribes, corrupted the trusted relationship between pharmacies and patients, and potentially harmed the very people that the Medicare and Medicaid programs are intended to serve,” stated Acting U.S. Attorney DuCharme.
“Billing Medicare and Medicaid for medically unnecessary costs diverts taxpayer funds from their intended purpose of providing life-sustaining health care services to beneficiaries. Sabet’s alleged payment of bribes and kickbacks also threatens the integrity of federal health care programs. It is unacceptable when health care providers seek personal enrichment by defrauding the programs on which their patients rely, and along with our law enforcement partners, we will continue to hold these individuals accountable for their actions,” stated HHS-OIG Special Agent-in-Charge Lampert.
“Many Americans rely heavily on the social safety nets provided by Medicare and Medicaid when they are needed,” stated IRS Special Agent-in-Charge Larsen. “Benefiting personally as alleged impacts all of us both today and tomorrow.”
“Particularly as we continue to recover from the COVID pandemic, individuals who commit Medicaid fraud prey on the most vulnerable New Yorkers, threaten the viability of programs that provide vital health care services, and steal taxpayer dollars. My office will continue to work closely with our partners in law enforcement to hold fully accountable those who seek to exploit the Medicaid program for personal gain,” stated OMIG Acting Inspector General Walsh.
As set forth in court filings, since September 2016, Sabet allegedly conspired to bill Medicare and Medicaid for expensive prescription drugs that were not eligible for reimbursement because they were not needed or not dispensed. Sabet also allegedly conspired to pay kickbacks and bribes to customers to convince them to fill prescriptions at his pharmacies, and to pay customers cash in exchange for the ability to bill Medicare and Medicaid for over-the-counter health care-related products on their behalf.
In December 2020, Sabet allegedly wired nearly $100,000 from Lucky Care’s bank accounts to an automobile dealership to pay for a luxury car. Investigators conducted a search warrant at Sabet’s home at the time of his arrest and seized a 2020 Porsche Taycan worth over $250,000, as well as cash and luxury goods.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, Sabet faces a maximum sentence of 10 years in prison for conspiracy to commit health care fraud; five years in prison for conspiracy to pay kickbacks and bribes and 10 years in prison for unlawful spending.
The case is being prosecuted by Trial Attorney Miriam L. Glaser Dauermann of the Justice Department’s Fraud Section. The case was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of New York.
The Defendant:
ROBERT SABET
Age: 44
Brooklyn, New YorkE.D.N.Y. Docket No.: 21-CR-140 (VMS)
Ohio man sentenced for his role in drug conspiracy involving heroin, fentanyl, “crack” cocaine, and meth in WheelingRead the Press Release
WHEELING, WEST VIRGINIA – Michael Moon, of Toledo, Ohio, was sentenced today to 27 months of incarceration for his role in a drug conspiracy, Acting United States Attorney Randolph J. Bernard announced.
Moon, also known as “Meezy,” 25, pled guilty in September 2020 to one count of “Aiding and Abetting the Distribution of Methamphetamine within 1000 feet of a Protected Location.” Moon admitted to working with others to selling methamphetamine near Madison Elementary School in Wheeling on February 14, 2020.
Assistant U.S. Attorneys Shawn M. Adkins and Clayton J. Reid prosecuted the case on behalf of the government. The Ohio Valley Drug and Violent Crimes Task Force, a HIDTA-funded initiative, which includes the Drug Enforcement Administration, West Virginia State Police, Ohio County Sheriff’s Office, and the Wheeling Police Department, investigated. The U.S. Marshal Service, Columbus Police Department Gang Crimes Unit, the Martins Ferry Police Department, and the Bellaire Police Department also assisted.
U.S. District Judge John Preston Bailey presided.
ODNI, DOJ and DHS Release Unclassified Summary of Assessment on Domestic Violent ExtremismRead the Press Release
Note: An executive summary of the joint comprehensive report can be viewed
here.The Office of the Director of National Intelligence (ODNI), the Department of Justice (DOJ), and the Department of Homeland Security (DHS) today released an unclassified summary of the joint comprehensive threat assessment on domestic violent extremism. The unclassified summary is attached and will be available on DNI.gov later today.
The assessment was prepared under the auspices of the DNI, in consultation with DOJ and DHS, and drafted by the National Counterterrorism Center, the Federal Bureau of Investigation, and DHS with contributions from the Central Intelligence Agency and the Defense Intelligence Agency. All agencies involved are mindful of the duty to respect privacy, civil rights, and civil liberties and to act within the authorities granted to them as they seek to put together as complete an intelligence and analytic picture as is possible.
New Jersey Man Charged with Tax Evasion and Filing False ReturnsRead the Press Release
A federal grand jury in Newark, New Jersey, returned an indictment today charging a New Jersey man with tax evasion and filing false tax returns.
According to the indictment, from 2011 through 2014, Gabriel M. Ferrari, owner of Buses and Trucks Inc. (B&T) in Linden used B&T’s gross receipts to pay personal expenses, including gambling on horse races, and then did not disclose the diverted receipts to his return preparer or the IRS. To hide his income, Ferrari allegedly filed false business and personal tax returns with the IRS.
If convicted, Ferrari faces a maximum sentence of five years in prison for each count of tax evasion, and three years in prison for each false tax return charge. Ferrari also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine a sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Rachael A. Honig for the District of New Jersey made the announcement.
The IRS-Criminal Investigation is investigating the case.
Trial Attorney Ann Marie Cherry of the Tax Division and Assistant U.S. Attorney Andrew Trombly of the U.S. Attorney’s Office for the District of New Jersey are prosecuting the case.
Mountain Home Couple Plead Guilty to Charges in Connection with Obtaining Covid-19 Relief FundsRead the Press Release
Fort Smith, Arkansas – David Clay Fowlkes, Acting United States Attorney for the Western District of Arkansas, announced that James Read, age 44, and his wife, Crystal Payne, age 42, both of Mountain Home, Arkansas, pleaded guilty to charges stemming from their attempts to obtaining pandemic relief funds unlawfully. The Honorable Judge P. K. Holmes III accepted the pleas in the U.S. District Court in Fort Smith.
According to the plea agreement in his case, Read applied to the Small Business Administration for Payment Protection Program (PPP) funds, which, as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, are forgivable loans intended for businesses struggling with essential expenses, such as payroll, during the pandemic. In that application, Read provided inflated wage and employee data about his business, SnowbirdBob LLC, and provided falsified tax documents. He further admitted to laundering the PPP loan proceeds by purchasing a new vehicle.
Read also pleaded guilty to one count of wire fraud for attempting to obtain unemployment benefits for himself and others in Louisiana. He falsely represented that he lived and worked in Louisiana to Louisiana’s state unemployment administrator.
Payne pleaded guilty to a single count for false statements made in her own PPP loan application.
Read and Payne’s sentencings will be later determined by the court, following the U.S. Probation Office’s completion of a presentence investigation.Based on his guilty plea, the maximum penalties Read faces include imprisonment for up to 30 years and a fine of up to $1,000,000. Payne faces up to five years imprisonment and a fine of up to $250,000.
The PPP allows qualifying small-businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1%. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal on the PPP loan to be forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses at least a certain percentage of the PPP loan proceeds on payroll expenses.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The case was investigated by IRS-Criminal Investigations, the Federal Bureau of Investigations, the Treasury Inspector General for Tax Administration (TIGTA), and the Small Business Administration Office of the Inspector General. Assistant United States Attorney Hunter Bridges is prosecuting the case for the United States.
Moses Lake Man Indicted for Unlawful Possession of Firearm and Improvised Destructive DeviceRead the Press Release
Spokane – Joseph H. Harrington, Acting United States Attorney for the Eastern District of Washington, announced the Indictment of Timothy Richard Ray Riggins, age 32, of Moses Lake, Washington, in connection with possession of an unregistered firearm/destructive device, in violation of 26 U.S.C. §§ 5845(a)(8), (f), and 5861(d). If proved, the offense carries a potential penalty of up to ten years in prison, a $10,000 fine, and up to three years supervised release.
According to state court records, in the early morning hours on or about November 3, 2019, Moses Lake Police Department (“MLPD”) received a 911call from a reporting party that Riggins had just assaulted her, stolen her vehicle, and was in possession of a “bomb.” The reporting party advised the explosive device was in a fanny pack and she was concerned for the safety of a mutual friend. MLPD was familiar with Riggins, a documented Norteno criminal street gang member, and knew he had an active felony warrant for his arrest from Washington State Department of Corrections. The reporting party’s vehicle was located, and Riggins was tracked to a nearby residence. After applying for and executing a warrant to search the residence, police found Riggins hiding inside a top-loading washing machine in one of the rooms.
While searching along Riggins’ path of travel from the stolen vehicle to the residence, police found a fanny pack that contained an operable improvised destructive device, more specifically described as a large commercial firework with more than 20 nails taped to the outside, with a large fuse. Two additional similar improvised destructive devices were located near the fanny pack.
This case is being investigated under the Project Safe Neighborhoods (PSN) program. PSN is a federal, state, and local law enforcement collaboration to identify, investigate, and prosecute individuals responsible for violent crimes in our neighborhoods. The U.S. Attorney’s Office is partnering with federal, state, local, and tribal law enforcement to specifically identify the criminals responsible for violent crime in the Eastern District of Washington and pursue criminal prosecution.
The charges contained in an Indictment are merely accusations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case is being investigated by the Spokane Resident Office of the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Moses Lake Police Department. This case is being prosecuted by Caitlin Baunsgard, an Assistant United States Attorney for the Eastern District of Washington.