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Monday 8 March 2021
Luzerne County Man Sentenced to 96 Months’ Imprisonment for Drug TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on March 4, 2021, Vincent Carter, age 36, of Nanticoke, Pennsylvania, was sentenced to 96 months’ imprisonment followed by a three-year term of supervised release by U.S. District Court Judge Malachy E. Mannion for drug trafficking offenses.
According to Acting U.S. Attorney Bruce D. Brandler, Carter distributed fentanyl on multiple occasions in March 2019, in Nanticoke, Pennsylvania. After a search of his residence and vehicle, additional amounts of fentanyl and narcotics packaging were recovered.
The case was investigated by the Kingston Police Department, the Nanticoke Police Department and the Bureau of Alcohol, Tobacco and Firearms. Assistant United States Attorney Geoffrey W. MacArthur prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal enforcement and the local community to develop effective, locally-based strategies to reduce crime. This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state, and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Leicester Man Arrested for Involvement in Unemployment Fraud SchemeRead the Press Release
BOSTON – A Leicester man was arrested on Friday, March 5, 2021 in connection with allegedly using a stolen identity to fraudulently claim unemployment benefits from the State of Nevada.
William Cordor, 26, was charged by criminal complaint one count of wire fraud and one count of aggravated identity theft. Following an initial appearance in federal court in Worcester, Cordor was detained pending a detention hearing set for March 11, 2021.
According to the charging documents, Cordor was encountered by police on Aug. 18, 2020 in connection with a domestic violence incident. Police found Cordor in possession of approximately 21 prepaid debit cards in approximately 13 different names. Investigators then determined that on July 17, 2020, Cordor electronically filed a claim with the Nevada Department of Employment, Training and Rehabilitation (NV DETR) for unemployment benefits using one of the identities that appeared on the prepaid debit cards, including the victim’s name and Social Security number. Cordor allegedly listed the prepaid debit card as the account to receive the unemployment benefits. Nevada authorities marked the claim as fraudulent and did not issue the unemployment benefits.
It is further alleged that Cordor’s residential address was listed to the prepaid debit card intended to receive the unemployment benefits. Agents also found documents with the victim’s name on Cordor’s laptop during a search at his residence.
Charging documents detailed that on May 21, 2020 Cordor admitted to federal agents that he had fraudulently obtained unemployment benefits from the Commonwealth of Massachusetts. That same day, Cordor agreed to surrender to federal authorities the balance of $79,600 in his bank account that were proceeds of his unemployment fraud scheme in Massachusetts. This occurred before Cordor is alleged to have filed the fraudulent unemployment claim with Nevada in July 2020.
The wire fraud charge provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of $250,000. The charge of aggravated identity theft provides for a mandatory sentence of two years in prison. 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; Michael Mikulka, Special Agent in Charge of Department of Labor, Office of Inspector General, Office of Investigations; Frederick J. Regan, Special Agent in Charge of U.S. Secret Service, Boston Field Office; Leicester Police Chief Kenneth Antanavica; and Marlboro Police Chief David Giorgi made the announcement. Assistant U.S. Attorney John T. Mulcahy of Mendell’s Worcester Branch Office is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Landlord to Pay $128,000 under the False Claims Act for Allegedly Renting Subsidized Section 8 Apartment to a Family MemberRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Dmitry Royzman, will pay $128,000 to resolve False Claims Act allegations that he illegally claimed subsidies from the U.S. Department of Housing and Urban Development (“HUD”) while renting an apartment to his mother-in-law in violation of the program’s requirements.
The settlement resolves allegations that, between December 2008 and August 2020, Royzman rented a subsidized apartment to his mother-in-law in violation of the Housing Choice Voucher Program’s (“HCVP”) requirements. The HCVP is commonly known as Section 8 housing. In the settlement agreement, the United States alleges that Royzman participated as a landlord in the HCVP, a program whereby HUD provides rental subsidies for eligible low-income tenants who locate acceptable rental units on the private market. The government alleges that Royzman submitted documents to the Bucks County Housing Authority (which administers the HCVP in Bucks County) falsely certifying that the assisted tenant in Royzman’s rental property was not an immediate relative of the property’s owners. In fact, the sole tenant was Royzman’s mother-in-law, which precluded Royzman’s receipt of HCVP rental subsidies.
“HUD instituted the HCVP program to help low-income residents without other options obtain decent housing,” said Acting U.S. Attorney Williams. “Landlords who agree to participate in this program cannot manipulate it to give subsidized housing to their relatives. By investigating this case, we have put all landlords participating in the Section 8 program on notice that they cannot put relatives in apartments for which they are receiving HCVP funds.”
Williams added, “From the time that this matter was brought to his attention, Mr. Royzman committed himself to setting things right. We appreciate his cooperative approach and efforts toward rectifying the problem.”
“The U.S. Department of Housing and Urban Development, Office of Inspector General is committed to working with the Department of Justice and community stakeholders to ensure that Federal funds intended to help low-income families are not wasted or misapplied,” said Acting Special Agent in Charge Shawn Rice. “Today’s settlement underscores the government’s commitment to protecting the integrity of HUD programs against fraud, waste, or abuse.”
This case was investigated by the U.S. Department of Housing and Urban Development, Office of Inspector General, and by the Bucks County Housing Authority. For the United States Attorney’s Office, Assistant United States Attorney Colin Cherico handled the investigation and settlement.
The claims resolved by the settlement are allegations only; there has been no determination of liability.
Laconia Couple Convicted of Participating in Methamphetamine Trafficking ConspiracyRead the Press Release
CONCORD – Acting United States Attorney John J. Farley announced that on Friday, March 5, 2021, after a three-day trial, a federal jury found Crystal Hardy, 38, and Christopher Kelly, 43, both of Laconia, guilty of conspiracy to distribute, and possess with intent to distribute, methamphetamine. The jury also found Kelly guilty of being a felon in possession of a firearm and ammunition.
According to evidence presented during the trial, on April 5, 2019, members of the Tilton Police Department stopped Crystal Hardy for a motor vehicle violation. Christopher Kelly was a passenger in the vehicle. Officers later executed a search warrant on the vehicle and discovered methamphetamine, fentanyl, two loaded firearms, over $28,000 in cash, a digital scale, measuring tools, a pouch full of plastic baggies and a drug ledger. Other trial evidence showed that Hardy and Kelly regularly distributed methamphetamine throughout 2019 and had no legitimate income to explain the large sum of money found in the vehicle.
The two loaded firearms were discovered in a backpack that also contained a large bullet-proof vest, a baton, mail addressed to Kelly and three prescription bottles in Kelly’s name. As a convicted felon, Kelly is prohibited from possessing a firearm and ammunition.
Crystal Hardy is scheduled to be sentenced on June 11, 2021.
Christopher Kelly is scheduled to be sentenced on June 14, 2021.
“Methamphetamine is a very dangerous drug that can damage users’ bodies and cause havoc in our communities,” said Acting U.S. Attorney Farley. “When armed criminals are involved in drug trafficking, the risk to public safety is even greater. I am grateful to the Tilton Police Department and all our law enforcement partners for their work on this investigation. We will continue to work closely with our law enforcement partners to identify and prosecute those who are responsible for distributing dangerous drugs in the Granite State.”
This case was the first federal jury trial conducted in New Hampshire in 2021. As with the trials conducted in 2020, the court conducted the trial using a variety of health and safety precautions. For example, all participants in the trial wore masks and maintained social distancing.
This matter was investigated by the Tilton Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration, Internal Revenue Service-Criminal Investigation, and United States Marshals Service. New Hampshire Employment Security and the Strafford County Attorney’s Office also provided assistance, The case was prosecuted by Assistant U.S. Attorneys Debra Walsh and Aaron Gingrande.
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Jury Convicts Richmond Fentanyl, Heroin, and Cocaine TraffickerRead the Press Release
RICHMOND, Va. – A federal jury convicted a Richmond man today for possessing with the intent to distribute a mixture of heroin, cocaine, and fentanyl.
“Synthetic opioids, including fentanyl, unfortunately continue to play a disproportionate role in drug overdoses and overdose deaths, inflicting devastation on families across the United States and in EDVA,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “We are grateful to our law enforcement partners who continue the fight to keep these lethal substances out of our communities and away from harming our loved ones.”
According to court records and evidence presented at trial, in May 2019, law enforcement initiated an investigation into certain heroin and cocaine trafficking activities in the Richmond metropolitan area. On September 26, 2019, a warrant was issued for the residence of Fernardo Lee Jordan, 67. Inside his home in Richmond, law enforcement agents discovered bags containing brown and white substances and $18,560 in U.S. currency. Agents also found a scale and packaging material, among other items associated with drug trafficking. The substances were later determined to be over a quarter of a kilogram of a mixture and substance containing heroin and fentanyl, over a quarter of a kilogram of cocaine powder, and several ounces of heroin, with a combined street value of over $40,000.
Jordan was convicted of possession with the intent to distribute controlled substances including over 100 grams of a mixture of heroin and fentanyl, a quantity of heroin, and a quantity of cocaine hydrochloride. Jordan faces a mandatory minimum penalty of five years in prison and a maximum of 40 years in prison when sentenced on May 20. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Jarod Forget, Special Agent in Charge for the Drug Enforcement Administration’s Washington Division; and Colonel Jeffrey S. Katz, Chesterfield County Police Department, made the announcement after Senior U.S. District Judge Robert E. Payne accepted the verdict.
Assistant U.S. Attorney Olivia L. Norman is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:20-cr-31.
Information Technology Company Owner and Former NSA Contractor Facing Federal Indictment for Submitting False Claims for Hours Worked on a Government ContractRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted Jacky Lynn McComber, formerly Jacky Lynn Kimmel age 48, of Elkridge, Maryland, on the federal charges of submitting false claims and making false statements, in connection with the hours she claimed to have worked on a federal contract. McComber is the CEO and owner of InfoTeK, an information technology (IT) services corporation. At her initial appearance and arraignment today in U.S. District Court in Baltimore, McComber pleaded not guilty and U.S. Magistrate Judge Thomas M. DiGirolamo ordered that she be released pending trial. The indictment was returned on February 25, 2021.
The indictment was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Robert P. Storch, Inspector General of the National Security Agency; and Special Agent in Charge Chris Dillard of the Defense Criminal Investigative Service - Mid-Atlantic Field Office.
The National Security Agency (NSA) is a component of the United States Department of Defense. According to the indictment, from July 2011 until February 2018, the NSA had an ongoing contract, known as the Ironbridge contract, with InfoTeK to provide maintenance and enhancement support for the information technology and software requirements of the NSA’s National Security Operations Center (NSOC) and the Counter Terrorism Mission Management Center (CTMMC). Because the subject matter of these contracts involved classified information, all of the work had to be performed at secure, access-controlled locations. McComber was therefore required to be physically present at her assigned duty locations to do her work. InfoTeK billed the NSA on a monthly basis for the hours worked by its employees and contractors.
According to the 20-count indictment, the Ironbridge contract required InfoTeK to identify a Program Manager (PM) who would be responsible for overseeing InfoTeK’s performance of its contractual obligations and serving as InfoTeK’s point of contact with government officials. From 2011 to 2013, several individuals, including McComber, served as the PM on the Ironbridge contract. Starting in the summer of 2013, Individual A held the position of Senior Program Manager on the Ironbridge contract, until she was replaced by McComber in mid-March 2016. McComber held the position through September 2017. The indictment alleges that for 17 months, beginning in mid-March 2016 when McComber took over the PM position, she billed an average of 144 hours per month to the NSA for her supposed work. In all, between March 14, 2016 and September 8, 2017, InfoTeK billed NSA for 2,603.5 hours of work on the Ironbridge contract allegedly performed by McComber in her role as Senior Program Manager. NSA paid these charges in full, at a total cost of $388,878.78.
The indictment alleges that a subsequent review and comparison by the NSA OIG in the fall of 2017 of McComber’s NSA key card with the time InfoTeK billed for her work on the Ironbridge contracts established that McComber was not present at her duty station for 2,342.5 (90%) of the 2.603.5 hours she had recorded on her timesheets and that InfoTeK subsequently billed to NSA. In addition to allegedly not being physically present at the worksite for the vast majority of hours she billed to the Ironbridge contract, the indictment alleges that McComber did not work the number of hours on the Ironbridge contract that she recorded on her timesheet. For example, the indictment alleges that on occasions when McComber billed a full eight-hour day to the Ironbridge contract, she participated in charity events, attended her high school reunion, vacationed in Texas and in Ocean City, Maryland, and performed other business development efforts on behalf of InfoTeK that were unrelated to the Ironbridge contract. As a result of McComber’s alleged false claims as to the time she worked on the Ironbridge contract between April 2016 and September 2017, the indictment alleges that NSA substantially overpaid InfoTeK.
Finally, the indictment alleges that on October 3, 2017, McComber participated in a voluntary interview with NSA OIG investigators concerning allegations that she had charged the government for hours that she did not actually work. McComber allegedly falsely claimed that she did not falsely fill out her timesheet or put any false information on it.
If convicted, McComber faces a maximum sentence of five years in federal prison for each of 19 counts of submitting false claims and for one count of making false statements. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
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.
Acting United States Attorney Jonathan F. Lenzner commended the National Security Agency Office of Inspector General and DCIS for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Jefferson M. Gray and Joyce K. McDonald, who are prosecuting the case.
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Indictment Alleges Visa Fraud Scheme that Used Surrogate Test-Takers and ‘Guaranteed’ Foreign Student Admission into CollegesRead the Press Release
LOS ANGELES – The second defendant named in a federal grand jury indictment surrendered today to face charges stemming from a scheme that used bogus transcripts, ghostwritten admissions essays, and imposters who took standardized tests to help foreigners gain admission to colleges, allowing them to fraudulently obtain student visas to enter or remain in the United States.
Yi Chen, aka “Brian Chen,” 33, of Monrovia, pleaded not guilty this afternoon to charges in a 21-count grand jury indictment that alleges conspiracy, visa fraud and aggravated identity theft.
Chen’s co-defendant – Yixin Li, aka “Eason Li” and “Calvin Wong,” 28, of San Gabriel – surrendered on March 2 and pleaded not guilty at an arraignment that afternoon.
The indictment alleges that Chen and Li owned “educational consulting” companies in Alhambra and Arcadia that charged foreign students thousands of dollars for “guaranteed” admission to a college that would lead to the issuance of an F-1 student visa. To secure admission to a school, the companies prepared application packages that used bogus or altered transcripts, and they hired people to impersonate the prospective student to take standardized tests, such as the Test of English as a Foreign Language (TOEFL).
The indictment lists a number of foreign nationals for whom Chen and Li allegedly obtained, altered or fabricated transcripts, which helped the students obtain admission to schools across the United States, including New York University, Columbia University, Boston College, and several University of California campuses.
Once a foreign student was admitted to a college, the school issued a “Form I-20, Certificate of Eligibility for Nonimmigrant (F-1) Student Status – For Academic and Language Students,” which provided the basis for a visa application or extension of permission to remain in the United States.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Chen and Li are charged with conspiracy, which carries a statutory maximum sentence of five years in federal prison. They are also named in various counts of fraud and misuse of visas, permits, and other documents, an offense that carries a sentence of up to 10 years in prison. Chen and Li are each charged with one count of aggravated identity theft, which carries a mandatory two-year prison sentence that would run consecutively to any other prison term imposed in the case.
Chen and Li are linked to a group of imposter test-takers who were the subject of an earlier indictment that outlined how they used fake Chinese passports to take TOEFL exams on behalf of foreigners seeking college admissions and student visas. All six defendants in that earlier case pleaded guilty and were sentenced to probation.
During today’s arraignment, Chen was ordered detained pending trial, which was scheduled for May 4.
At Li’s arraignment last week, a United States magistrate judge set bond at $200,000, but he has yet to post bond and remains in custody. A trial date for Li was scheduled for April 27.
The case against Chen and Li, as well as the earlier case targeting the test-takers, was investigated by Homeland Security Investigations and the Department of State, Diplomatic Security Service. U.S. Citizenship and Immigration Services, Fraud Detection and National Security Section, provided substantial assistance. The Educational Testing Service, which administers the TOEFL exam, provided assistance during the investigation.
The indictment against Chen and Li is being prosecuted by Special Assistant United States Attorney Matthew C. Chan and Assistant United States Attorney Julia Hu, both of the General Crimes Section.
Idabel Resident Sentenced to 30 Months for Possession of Firearm, AmmunitionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Robert L. Lemons, age 33, of Idabel, Oklahoma, was sentenced to 30 months’ imprisonment for Felon In Possession of Firearm & Ammunition, in violation of Title 18, United States Code, Sections 922(g)(1), 924(a)(2), and 924(e)(1). The charges arose from an investigation by the Idabel Police Department, the McCurtain County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The single-count Indictment to which Lemons previously entered a guilty plea alleged that on or about January 13, 2019, in the Eastern District of Oklahoma, the defendant, Robert L. Lemons, having previously been convicted of a crime punishable by imprisonment for a term exceeding one year, and knowing of said conviction, did knowingly possess in and affecting commerce, a firearm and ammunition which had been shipped and transported in interstate and foreign commerce.
“The investigation in this case began with a report of a person exhibiting suspicious behavior. A citizen doing the right thing led to removing a firearm out of the hands of a convicted felon. If you see something unusual or suspicious, contact law enforcement immediately,” said Acting United States Attorney Christopher J. Wilson.
“Felons and firearms don’t mix, Mr. Lemons now knows this. The streets are safer because of the hard work of all our law enforcement partners,” stated ATF Special Agent in Charge Jeffrey C. Boshek II.
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in custody pending transportation to the designated federal facility at which the non-paroleable sentence will be served. Assistant United States Attorney Ben Gifford represented the United States.Grant and Preston County residents indicted on drug chargesRead the Press Release
ELKINS, WEST VIRGINIA – Trampas Quint Wolford, of Cabins, West Virginia, was arraigned on charges after being indicted by a federal grand jury sitting in Elkins in February 2021, Acting United States Attorney Randolph J. Bernard announced.
Wolford, 57, was indicted on one count of “Conspiracy to Distribute Methamphetamine” and one count of “Distribution of Methamphetamine.”
Also named in the indictment are Angela Dawn Yuchek, of Tunnelton, West Virginia, and Peter Sanford Layne, of Cabins, west Virginia.
Yuchek, 31, was indicted on one count of “Conspiracy to Distribute Methamphetamine,” one count of “Distribution of Methamphetamine – Aiding and Abetting,” and one count of “Distribution of Methamphetamine.”
Layne, 48, was indicted on one count of “Conspiracy to Distribute Methamphetamine,” one count of “Distribution of Methamphetamine – Aiding and Abetting,” and one count of “Distribution of Methamphetamine.”
All three are accused of working together to distribute methamphetamine, also known as “crystal meth” and “ice,” from January 2019 to March 2019 in Preston and Grant Counties.
Yuchek, Layne, and Wolford each face up to 20 years of incarceration and a fine of up to $1,000,000 for each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Potomac Highlands Drug Task Force, a HIDTA-funded initiative; the West Virginia State Police; the Grant County Sheriff’s Office; the Moorefield Police Department investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
U.S. Magistrate Judge Michael John Aloi presided.
Grand Jury Indicts Two in "Grandparent Scam"Read the Press Release
PROVIDENCE – A federal grand jury has returned an indictment charging two Providence men with allegedly running a so-called “grandparent scam” in two states, fraudulently obtaining or attempting to obtain thousands of dollars in cash from at least nine elderly victims by claiming the money was needed immediately to assist a relative, typically the victim’s grandchild or child, who had purportedly been arrested or jailed.
It is alleged in the indictment that members of the conspiracy sometimes posed briefly on the telephone as the victims’ relative, sounding upset or ill to disguise their voice, to further persuade the victim to provide the cash. It is alleged that victims were instructed by a co-conspirator posing as an attorney to provide the cash to a courier or bail bondsman that would arrive at their home to collect the cash. The victims were told that a “gag order” was in place on their relative’s legal matter that prohibited the victims from sharing information about the matter.
In many instances, victims reported to law enforcement that the person who arrived at their home to collect the cash did so in a white van and wore a work uniform type vest.
It is alleged in the indictment that Vidal “Sandy” Roquez, 35, and Schmitt A. Prado, 26, participated in a conspiracy to defraud senior citizens in Portsmouth, Tiverton, Cranston, South Kingstown, and Warwick, Rhode Island, and in Shrewsbury, Northborough, and Weston, Massachusetts, of between $9,000 and $14,000.
According to court documents, on February 18, 2020, a Little Compton, R.I. resident reported to his local police department that he received a call from a female purporting to be his granddaughter and that she had been arrested and was in need of bail money. A male voice then came on the telephone to speak with the targeted victim, he identified himself as an attorney, said that the victim’s granddaughter had crashed into a police cruiser while taking a selfie and that $9,000 in cash was needed to bail his granddaughter out of jail. The money was to be paid to a bail bondsman, who would be arriving at his house.
The Little Compton man contacted the Little Compton Police Department about the call. Police officers were at the man’s house when Schmitt Prado allegedly arrived to collect the cash. Prado was arrested when it was determined that it was allegedly a scam.
Further investigation following the arrest of Prado led law enforcement to identify the white van described by many of the victims. The van was traced to Vidal Roquez’s residence.
The grand jury returned an indictment charging Schmitt Prado and Vidal Roquez with conspiracy to commit wire fraud and aggravated identity theft, announced Acting United States Attorney Richard B. Myrus, Homeland Security Investigations Acting Special Agent in Charge William S. Walker, and Little Compton Police Chief Scott Raynes.
A federal indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant U.S. Attorney Denise M. Barton.
Acting United States Attorney Richard B. Myrus acknowledges and thanks the Warwick, Portsmouth, Tiverton, Cranston, and South Kingstown, R.I. Police Departments; the Shrewsbury, Northborough, and Weston, MA, Police Departments; and the Rhode Island Fusion Center for their assistance in the investigation of this case.
Combatting elder abuse and financial fraud targeting seniors is a key priority of the Department of Justice. If you are a victim or know a victim of elder fraud, you can call 1-877-FTC-HELP or go to ftc.gov/complaint. For downloadable Elder Abuse Prevention resources and for information about community outreach programs in Rhode Island, visit the United States Attorney’s Office’s Elder Justice Initiative web page at https://www.justice.gov/usao-ri/elder-justice.
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Grand Bay Man Sentenced to Thirty-Five Years in Prison in Child Pornography CaseRead the Press Release
United States Attorney Sean P. Costello of the Southern District of Alabama announced that United States District Chief Judge Kristi DuBose sentenced defendant Bryan Thompson, 44, to 35 years imprisonment on a charge of production of child pornography and a charge of distribution of child pornography. Thompson pled guilty to the charges in December 2020.
According to court documents filed in connection with his guilty plea, in November of 2015, Alabama Law Enforcement Agency was provided with details of a joint investigation between the Bernalillo County Sheriff’s Department in New Mexico and the FBI. The Bernalillo Sheriff’s Department had been engaged in an online child exploitation investigation and identified a person in Alabama as someone who was trading child pornography online. Investigators were able to obtain a search warrant for the IP address which was sharing child pornography, and the physical address was associated with Thompson.
On November 12, 2015, a search warrant was executed at Thompson’s residence. Thompson was interviewed and admitted that he joined chat groups and received child pornography images and videos from a number of those chat groups. Agents seized numerous electronic devices from the home. A forensic analysis was completed by Homeland Security Investigations. The examination revealed that the two hard drives, one tablet, several smartphones and one micro SD card contained 971 images and 214 videos of child exploitation material.
During the forensic analysis of the devices, the forensic analyst discovered images that appeared to show Thompson performing sex acts on a pre-pubescent minor. On January 2, 2018, Thompson was interviewed. He was advised that the forensic analysis had been completed on his devices and that the analysis revealed that he had sexually abused a minor and documented the abuse electronically. Thompson admitted that he had inappropriate contact with a pre-pubescent minor, who was then about six years old. Thompson detailed the abuse for investigators, and admitted that he had filmed it. Agents again seized all electronic devices in the home.
In July 2018, a forensic analyst completed analysis on all the devices seized from Thompson in January. The analysis confirmed that there were approximately ten images created that showed Thompson’s sexual abuse of the minor. The analyst further located 394 images and 43 videos which appear to be child sexual abuse imagery in the laptop seized in 2018. There were also 547 child erotica and age-indeterminate images. There were 435 child sexual abuse images and 4 videos on Thompson’s cell phone that was seized in 2018. There were also 1706 child erotica and age-indeterminate images.Thompson gave permission to Homeland Security agents to take over his KIK account. Once in the KIK app, agents located a number of messages in chatrooms where child pornography was being advertised and distributed. In one such group, Thompson had posted a link to a MEGA account which contained 970 images of child pornography, including child bestiality and child S&M images. Of those images, over 900 of them were videos, and the remaining were still images. This same link to the MEGA account was shared in at least three different chat rooms. The content of the chat rooms makes it clear that the users were engaged in sharing child pornography.
United States District Court Chief Judge Kristi DuBose imposed a sentence of 35 years imprisonment. The judge ordered that Thompson undergo mental health treatment while incarcerated. The judge further ordered that Thompson be supervised by federal probation officers for the rest of his life after finishing his prison term, and he is to have no contact with minors. Upon his release from prison, Thompson will be required to register as a sex offender. Judge DuBose ordered that Thompson pay $10,200 in special assessments.
The Alabama Law Enforcement Agency and Homeland Security Investigations investigated the case. Assistant United States Attorney Kacey Chappelear prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Fremont Man Sentenced to 10 Years’ Imprisonment for Conspiring to Distribute MethamphetamineRead the Press Release
Acting United States Attorney Jan Sharp announced that Richard Snyder, age 46, of Fremont, Nebraska, was sentenced today in federal court in Omaha, Nebraska, after having pleaded guilty to Conspiracy to Distribute Methamphetamine. Senior United States District Judge Joseph F. Bataillon sentenced Snyder to 120 months’ imprisonment. After completing his term of imprisonment, Snyder will be required to serve a 5-year term of supervised release as there is no parole in the federal system.
On March 11, 2019, a Fremont police officer approached a parked vehicle. The driver's side window was down, and the officer observed Snyder sitting in the driver's seat holding a self-seal bag containing a white crystal-like substance. After making contact, the officer seized the substance which later tested positive for methamphetamine, with the total weight being approximately 2 grams. During a post-arrest interview, Snyder admitted to delivering 2-3 pounds of methamphetamine in the last six months.
This case was investigated by Officers of the III CORPS Task Force.
Fourth Circuit Court of Appeals Affirms $114 Million Judgment Against 3 Defendants Found Liable of Defrauding Medicare and TricareRead the Press Release
Columbia, South Carolina --- Acting United States Attorney for the District of South Carolina M. Rhett DeHart announced today that the United States Court of Appeals for the Fourth Circuit has affirmed a $114 million judgment against Floyd Calhoun “Cal” Dent, III, of Lexington, and his two co-conspirators, all of whom a South Carolina jury found liable for defrauding the federal healthcare programs Medicare and Tricare.
At trial, the United States contended that, when specialty labs Health Diagnostics Laboratory, Inc. (“HDL”) and Singulex, Inc. paid commissions to Dent’s marketing firm, BlueWave, based on the number of blood tests sold, the parties violated the Anti-Kickback Statute. The United States argued these volume-based commissions constituted “remuneration” intended to induce BlueWave’s sales representatives to sell as many blood tests as possible. The United States also contended the Anti-Kickback Statute prohibited BlueWave from paying its salespeople for recommending the tests. By paying these kickbacks, the defendants caused false claims to be submitted to federal healthcare programs for millions of dollars in unnecessary blood tests. The jury agreed, and now the Fourth Circuit has affirmed the jury’s verdict in a published opinion.
“This is an important victory for patients, the Medicare Program, and American taxpayers,” said Acting U.S. Attorney M. Rhett DeHart. “Individuals who scheme to defraud our federal health care system must be held personally accountable for their actions. This judgment, which was affirmed by the Court of Appeals, will send a strong deterrent message that this kind of conduct will not be tolerated. I am extremely proud of our office, particularly our Affirmative Civil Enforcement section, for its tireless work on this case. It takes a true team effort to protect the great people of South Carolina.”
“This result underscores the department’s commitment to holding accountable those who pay improper commissions or other financial incentives,” said Acting Assistant Attorney General Brian M. Boynton for the Justice Department’s Civil Division. “Kickbacks undermine the public’s trust in the healthcare system and the integrity of federal healthcare programs.”
The Fourth Circuit found the United States “provided abundant evidence as to Defendants’ knowledge and intent” to pay kickbacks. The court acknowledged that attorneys within HDL and BlueWave warned the defendants that paying commissions to independent contractors might well violate the Anti-Kickback Statute. The United States also presented sufficient evidence that outside lawyers warned all three defendants about the illegality of the commissions.
The Fourth Circuit also rejected the defendants’ contention that commissions to salespeople can never constitute kickbacks under the Anti-Kickback Statute, and found that the scheme violated the Statute and, in turn, violated the False Claims Act. Additionally, the court found the defendants’ contention that they were entitled to a new trial based on a variety of purported legal errors in the jury instructions to be “meritless.”
Finally, the Fourth Circuit rejected Dent’s challenge to the district court’s determination that pre-judgment transfers of three properties to Dent’s wife and two corporations controlled by her were fraudulent. The court upheld the district court’s finding, citing the timing of the transfers, the nominal amount paid for the properties, the fact that the transfers were made to family members, and the fact that the transfers were made several months after Dent knew he was under federal investigation.
The published opinion, U.S. v. LaTonya Mallory et al., No. 18-1811, filed February 22, 2021, may be found at https://www.ca4.uscourts.gov/Opinions/181811.P.pdf.
The appeal was handled by the Appellate Staff of the Justice Department. The underlying case was handled by Assistant U.S. Attorneys James Leventis, Tina Cundari, and Johanna Valenzuela of the U.S. Attorney’s Office for the District of South Carolina; the Commercial Litigation Branch of the Justice Department’s Civil Division; Health and Human Services, Office of the Inspector General; the Federal Bureau of Investigation; the U.S. Office of Personnel Management Office of the Inspector General; and the Department of Defense Office of Inspector General, Defense Criminal Investigative Service.
The civil lawsuit was filed in the District of South Carolina based on several whistleblower complaints and is captioned United States of America et al v. BlueWave Healthcare Consultants Inc., 9:14-cv-00230-RMG.
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This case illustrates the government’s emphasis on combating health care fraud. Tips and complaints from all sources about potential health care fraud, waste, and abuse can be reported to the Department of Health and Human Services at 1-800-HHS-TIPS (800-447-8477) or [email protected].
Former Practice Fusion Sales Executive Pleads Guilty to Obstructing Government Investigations into Purdue Pharma and Practice FusionRead the Press Release
Today Steven Mack, 46, of Bridgeville, Pennsylvania, pleaded guilty before Judge William K. Sessions III of the United States District Court for the District of Vermont to one count of attempting to obstruct a federal investigation into the relationship between Mr. Mack’s former employer, Practice Fusion, Inc., and Purdue Pharma LP, the seller of extended release opioid products, including OxyContin.
As explained during the plea hearing, in 2015 and 2016 Mr. Mack was the Director of National Accounts for Practice Fusion, an electronic medical record (EMR) company. In that position, Mr. Mack was a principal point of contact between Practice Fusion and Purdue Pharma with regard to the subject of the investigations. Mr. Mack admitted deleting from his company-issued laptop hundreds of computer files relevant to the investigation, with the intent to obstruct the investigation by impairing the integrity and availability of those records.
Pursuant to the plea agreement, Mr. Mack has agreed to cooperate with respect to ongoing investigations and to provide information about all criminal activities known to Mr. Mack. Pursuant to the plea agreement, which still must be accepted by Judge Sessions, Mr. Mack faces up to 18 months in prison and up to a $75,000 fine.
Acting Unites States Attorney Jonathan Ophardt stated: “Steve Mack criminally interfered with our investigations into the significant criminal conduct of both Purdue Pharma and Practice Fusion. This Office will hold individuals responsible for their roles in corporate malfeasance, and we will not tolerate efforts by anyone to subvert our investigations. Mr. Mack’s guilty plea today marks yet another person we have held individually accountable in connection with our efforts to expose white-collar crime.”
On January 27, 2020, the United States Attorney for the District of Vermont announced that it entered into a deferred prosecution agreement with Practice Fusion by which the EMR vendor admitted to a criminal conspiracy, in violation of 18 U.S.C. § 371, and a criminal kickback, in violation of 42 U.S.C. § 1320a-7b(b)(1). Practice Fusion solicited and received kickbacks from Purdue Pharma to arrange for an increase in prescriptions of extended release opioids by healthcare providers who used Practice Fusion’s EMR software. Purdue Pharma paid Practice Fusion nearly $1 million to create a clinical decision support (CDS) alert that would prompt physicians to prescribe more extended release opioids. Purdue Pharma’s marketing department financed the kickbacks and participated in designing the CDS alerts, which were presented to physicians as objective medical guidance. Practice Fusion and Purdue Pharma entered the conspiracy because they believed that the CDS would influence doctors’ prescriptions of extended release opioids.
On October 21, 2020, various components of the Department of Justice, including the United States Attorney’s Office for the District of Vermont, announced that Purdue Pharma had entered into a plea agreement by which Purdue Pharma would plead guilty to conspiring to violate the Anti-Kickback Statute relating to its arrangement with Practice Fusion, among other things. On November 24, 2020, Purdue Pharma pleaded guilty to its illegal conspiracy with Practice Fusion.
Today’s hearing marks the first individual to be prosecuted in connection with the Department of Justice’s recent investigations into Purdue Pharma and Practice Fusion. Mr. Mack is the first individual to be criminally charged from a leading EMR vendor, and, to date, the fourth individual held accountable by the District of Vermont in connection with its EMR investigations. On May 31, 2017, the United States Attorney’s Office for the District of Vermont announced a resolution with eClinicalWorks LLC (ECW), and in that case required three of ECW’s founders (CEO Girish Navani, CMO Dr. Rajesh Dharampuriya, and COO Mahesh Navani) to be jointly and severally liable for the payment of $154,920,000, and resolved civilly with three non-executive employees, Developer Jagan Vaithilingam, Project Manager Bryan Sequeira, and Project Manager Robert Lynes.
“Today’s guilty plea serves as a strong reminder that we will not tolerate fraud against our federal healthcare system or acts of obstruction that attempt to conceal those schemes,” said Phillip M. Coyne, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “We appreciate the partnership with the Vermont United States Attorney’s Office in pursuing this type of fraud.”
“Obstructing justice in any investigation will not be tolerated,” stated James A. Dawson, Special Agent in Charge of the FBI Washington Field Office Criminal Division. “This is yet another example of the dedication of the FBI and Department of Justice to hold accountable individuals and businesses who perpetrated and aided in the kickback scheme involving Purdue Pharma and Practice Fusion.”
This case was investigated by the Federal Bureau of Investigation and the Office of Inspector General of the United States Department of Health and Human Services.
Acting U.S. Attorney Ophardt commended the investigative efforts of the Federal Bureau of Investigation (FBI) and the Office of Inspector General of the United States Department of Health and Human Services (HHS-OIG).
Following today’s hearing, Mr. Mack was ordered released subject to conditions. His sentencing is scheduled for June 21, 2021.
Mr. Mack is represented by Stephen Huggard, Esq. of Boston and Robert Katims, Esq. of Burlington. The case is being prosecuted by Assistant United States Attorneys Owen Foster and Michael Drescher.
The case is captioned United States v. Steven Mack, 2:21-cr-00013-wks (D. Vt.).
2_2-1 Plea Agreement with Cooperation Exhibit.pdf
https://www.justice.gov/usao-vt/pr/electronic-health-records-vendor-pay-largest-criminal-fine-vermont-history-and-total-145
https://www.justice.gov/usao-vt/pr/justice-department-announces-global-resolution-criminal-and-civil-investigations-opioid-0
https://www.justice.gov/usao-vt/pr/purdue-pharma-lp-pleads-guilty-federal-felonies-relating-sale-and-marketing-prescription
Former Police Officer Admits Role in Multimillion-Dollar Compounded Prescription Drug SchemeRead the Press Release
NEWARK, N.J. – A former police officer with the North Brunswick police department today admitted his role in a multimillion-dollar scheme that defrauded state health benefits programs through the submission of medically unnecessary prescriptions for compounded medications, Acting U.S. Attorney Rachael A. Honig announced.
Daniel Passafiume, 45, of Monroe, New Jersey, pleaded guilty by videoconference before U.S. District Judge Michael A. Shipp to an information charging him with conspiring to commit health care fraud.
According to documents filed in this case and statements made in court:
Between January 2014 and November 2016, Passafiume and a conspirator, identified as CC-1 in the information, marketed certain prescription “compounded medications,” including vitamins and pain creams, to beneficiaries of New Jersey state insurance plans, including the State Health Benefits Program (SHBP). These insurance plans paid thousands of dollars for compounded medications, which are specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Although compounded drugs are not approved by the Food and Drug Administration (FDA), they are properly prescribed when a physician determines that an FDA-approved medication does not meet the health needs of a particular patient because, for example, the patient is allergic to a dye or other ingredient or requires the medication in a different form.
Passafiume and his conspirator had agreements with pharmacies to collect large commission payments for each prescription they obtained for the pharmacy. Passafiume and CC-1 found individuals with these insurance plans and connected them with doctors who were willing to sign prescriptions without an examination or a determination that the individuals needed the compounded medications. Those recruited to obtain prescriptions included employees of a New Jersey police department, family members of these employees, and Passafiume’s own family members. At times, Passafiume provided beneficiaries with cash, checks, and gift cards for agreeing to obtain these prescriptions.
The conspiracy charge carries a maximum potential penalty of 10 years in prison and a fine of $250,000 fine, or twice the gain or loss from the offense, whichever is greater. As part of his plea agreement, Passafiume must forfeit $284,659 in criminal proceeds and pay restitution of $3.27 million. Sentencing is scheduled for July 12, 2021.
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 today’s guilty plea.
The government is represented by Senior Trial Counsel Leslie Faye Schwartz of the Special Prosecutions Division and Assistant U.S. Attorney Osmar J. Benvenuto of the Health Care Fraud Unit in Newark.
Former Oilfield Manager Pleads Guilty in Connection with OSHA Worker Fatality InvestigationRead the Press Release
A Montana man pleaded guilty in federal court in the District of North Dakota to a felony charge of obstructing an Occupational Safety and Health Administration (OSHA) proceeding stemming from the 2014 death of an oilfield worker in Williston, North Dakota.
Stephan Todd Reisinger, 50, of Kalispell, was a maintenance manager at Nabors Completion and Production Services Company (NCPS) at its Williston facility. He supervised approximately 40 employees, including 28-year old U.S. Marine Corps veteran Dustin Payne. On Oct. 3, 2014, Payne welded on an uncleaned tanker trailer that had previously carried “produced water,” a liquid waste that is generated by oil wells and which contains flammable chemicals. The tank exploded and Payne was fatally injured.
Federal law makes it illegal to weld on tanks or other containers that have not been thoroughly cleaned to remove all flammable materials and explosion hazards.
“It is critical that OSHA be able to fully investigate worker safety fatalities,” said Acting Assistant Attorney General Jean E. Williams for the Justice Department’s Environment and Natural Resources Division. “The Justice Department will prosecute those who impede OSHA’s ability to find out the truth in the course of any safety investigation.”
“Federal workplace laws are designed to protect workers and enhance safety in order to prevent injuries and deaths,” said Special Agent in Charge Andrea M. Kropf of the U.S. Department of Transportation Office of Inspector General, Midwestern Region. “We will continue to work with our federal and law enforcement partners to hold those accountable who jeopardize transportation and hazardous material workers’ safety.”
In a plea agreement with the government, Reisinger admitted to knowing the tanker trailers hauled produced water. During an investigation into Payne’s death, he made false statements in an interview with OSHA, including that he did not know of the hazards and composition of produced water. Reisinger falsely stated that he thought “just water” was in the tanks.
C&J Well Services, the corporate successor to NCPS, previously pleaded guilty to charges related to Payne’s death and on Aug. 28, 2019, was sentenced to pay $2.1 million in fines and restitution. NCPS policies mandated special training for welders and internal auditing procedures to make sure that welding rules were actually being followed. However, NCPS did not provide welding-specific training to Payne or other welders at the Williston facility. As a result, Payne and other welders repeatedly welded on uncleaned tanks that contained flammable hydrocarbon residue.
OSHA, the U.S. Environmental Protection Agency - Criminal Investigation Division and the U.S. Department of Transportation Office of the Inspector General, with additional support from the Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated the case.
Senior Trial Attorney Christopher Costantini of the Environment and Natural Resources Division’s Environmental Crimes Section and Assistant U.S. Attorney Gary Delorme for the District of North Dakota prosecuted the case.
Former Mariner Admits to Facilitating Bribes, Two Others Plead Guilty, in Coast Guard Test-Fixing SchemeRead the Press Release
NEW ORLEANS, LA –U.S Attorney Duane A. Evans announced that on March 5, 2021 three pleaded guilty related to a test score-fixing scheme at a United States Coast Guard exam center, bringing the total number of defendants convicted in this matter to 19.
SHARRON ROBINSON, a former maritime industry worker, pleaded guilty to conspiracy to defraud the United States. In a factual basis filed into the record, ROBINSON admitted that she acted as an intermediary between Coast Guard exam center employee Beverly McCrary and merchant mariners who were willing to pay for false passing exam scores. The exams tested mariners’ knowledge and training to safely operate under the authority of licenses, which were legally required to work various positions on vessels.
ROBINSON acknowledged that she would take money from mariners and then pay McCrary for the false scores. ROBINSON understood that McCrary would keep a portion of that money and use the rest to bribe another exam center employee to enter the scores. Sometimes ROBINSON put mariners directly in touch with McCrary to arrange their payments. ROBINSON admitted that, in addition to assisting nine other mariners in obtaining false scores, she also had her own scores fixed. All of these false scores resulted in the Coast Guard issuing unearned licenses.
On November 20, 2020, as alleged in the indictment, Coast Guard credentialing specialist Dorothy Smith entered the false scores in this scheme. The indictment further alleged that Smith accepted bribes and used a network of intermediaries. Smith and McCrary are scheduled to stand trial on June 28, 2021.
Previously, the U.S. Attorney’s Office announced the guilty pleas of 16 defendants which occurred on January 20, 27 and 28, 2021 for unlawfully receiving and possessing endorsements as part of the scheme. Since that announcement, on February 4, 2021 and March 4, 2021, respectively, two more defendants, ANTHONY GARCES and QUANG TRAN, have also plead guilty to that charge.
U.S. Attorney Evans reiterated that the indictment’s allegations against Smith and McCrary are merely charges and their guilt must be proven beyond a reasonable doubt.
The Honorable Barry W. Ashe presided over the guilty pleas and set sentencing dates of May 27, 2021 for GARCES and June 10, 2021 for ROBINSON and TRAN. The maximum penalty for each defendant is five years’ imprisonment, a $250,000 fine, three years of supervised release, and a $100 special assessment.
This case is being investigated by the Coast Guard Investigative Service. Assistant U.S. Attorney Chandra Menon is in charge of the prosecution.
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Erie Man Sentenced to 18 Years’ Imprisonment for Discharging A Firearm During A Crime of ViolenceRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on March 5, 2021, Jimmy Carter, age 56, of Erie, Pennsylvania, was sentenced to 216 months’ imprisonment followed by a three-year term of supervised release by U.S. District Court Judge Matthew W. Brann for discharging a firearm during a crime of violence.
According to Acting U.S. Attorney Bruce D. Brandler, Carter, along with two others, robbed a Unimart convenience store in Ferguson Township, Pennsylvania, in January 2017. During the course of this robbery, Carter fired a handgun at the proprietor of the store (who was not injured).
The case was investigated by the Ferguson Township Police Department and the Bureau of Alcohol, Tobacco and Firearms. and the Federal Bureau of Investigation. Assistant United States Attorney Geoffrey W. MacArthur prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal enforcement and the local community to develop effective, locally-based strategies to reduce crime.
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Eastern Idaho Cocaine Dealer Sentenced to 58 Months in PrisonRead the Press Release
POCATELLO – Charles Lee Schmidt, 51, of Idaho Falls, was sentenced in U.S. District Court to 58 months in federal prison for possession with intent to distribute cocaine, Acting U.S. Attorney Rafael M. Gonzalez, Jr. announced today. U.S. District Judge David C. Nye also ordered Schmidt to serve three years of supervised release following his prison sentence. Schmidt pleaded guilty to the charge on October 13, 2020.
According to court records, on May 20, 2019, a confidential informant, under the direction of law enforcement, purchased 36 grams of cocaine from Schmidt for $1,200. The controlled purchase took place in an Idaho Falls grocery store parking lot.
According to court records, in July 2019, law enforcement received information that a person, later confirmed to be Schmidt, was distributing controlled substances out of a residence in Idaho Falls. On July 31, 2019, law enforcement obtained and executed a search warrant for the residence. Schmidt was present when law enforcement executed the search warrant and seized 173.31 grams of methamphetamine and 1.3 grams of LSD.
This case was investigated by the Bonneville County Sheriff’s Office and the Idaho Falls Police Department.
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Doctor, Clinic Owner and Staff Charged with Falsifying Clinical Trial DataRead the Press Release
In an indictment unsealed today, a federal grand jury in Miami charged a Florida medical doctor and three others for their roles in an alleged scheme to falsify clinical trial data.
According to court documents, Dr. Martin Valdes, 64, of Coral Gables, Florida, Fidalgis Font, 53, of Miami, Julio Lopez, 54, of Miami, and Duniel Tejeda, 35, of Canon City, Colorado, were charged in a six-count indictment returned by a federal grand jury on Feb. 23, 2021. Each defendant was charged with conspiracy to commit mail and wire fraud and at least one substantive count of mail fraud. In addition, Valdes and Font were charged with money laundering and Valdes was further charged with making a false statement to inspectors with the U.S. Food and Drug Administration (FDA).
“The public must be able to rely on the accuracy and honesty of clinical trial data, which is essential to ensuring the safety of drugs approved for patient use,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The defendants undermined that process and put patients at risk. The Department of Justice will pursue and prosecute those who put personal profit before public health.”
According to the indictment, from at least February 2014 through at least July 2016, the defendants fabricated clinical trial data for profit while working at Tellus Clinical Research, a medical clinic based in Miami. The indictment alleges that the defendants knowingly enrolled subjects in clinical trials when those subjects failed to meet eligibility criteria, falsified subject laboratory results, falsified subject medical records, and falsely represented that subjects were taking the drugs being studied when in fact they were not. Valdes served as primary investigator for the clinical trials conducted at Tellus, Font was the owner of the business, and Lopez and Tejeda were senior Tellus employees.
“Reliable and accurate data from clinical trials is the cornerstone of FDA’s evaluation of a new drug,” said Catherine A. Hermsen, FDA Assistant Commissioner for Criminal Investigations. “Compromised clinical trial data could impact the agency’s decisions about the safety and effectiveness of the drug under review. We will continue to monitor, investigate and bring to justice those whose actions may subvert the FDA approval process and endanger the public health.”
“Falsifying clinical data is a violation of the public’s trust and it endangers the safety of consumers,” said Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida. “Those who enrich themselves while compromising public health in this way commit serious crimes and will be prosecuted.”
If convicted of conspiracy to commit mail and wire fraud or mail fraud, each defendant faces a maximum penalty of 20 years’ imprisonment. If convicted of money laundering, Valdes faces a maximum penalty of 20 years’ imprisonment, and Font faces a maximum of 10 years’ imprisonment. If convicted of making a false statement to the FDA, Valdes faces a maximum of five years’ imprisonment. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Director Clint Narver, Trial Attorney Lauren M. Elfner, and Trial Attorney Joshua Rothman of the Justice Department’s Consumer Protection Branch are prosecuting the case. The FDA’s Office of Criminal Investigations, Miami Field Office, investigated the case, and the U.S. Attorney’s Office of the Southern District of Florida provided critical assistance.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Southern District of Florida, visit https://www.justice.gov/usao-sdfl.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Couple Pleads Guilty to $1.1 Million COVID-Relief Fraud After Falsely Claiming to Be FarmersRead the Press Release
A Florida couple pleaded guilty for their participation in a scheme to file four fraudulent loan applications seeking more than $1.1 million in forgivable Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
On Aug. 26, 2020, Latoya Stanley, 38, and Johnny Philus, 33, both of Miami, were originally charged via a complaint filed in the Southern District of Florida.
In Stanley’s PPP application, she claimed to employ 18 individuals from her company, Dream Gurl Beauty Supply LLC. Philus, meanwhile, stated that he employed 29 individuals at his company, Elegance Auto Boutique LLC. In actuality, Stanley and Philus did not employ anyone at their respective companies.
In her EIDL application, Stanley claimed to generate over $800,000 in income and to employ five individuals from a farm based in the yard of her Miami home. In his EIDL application, Philus claimed to generate $400,000 in income and to employ 10 individuals from a farm located in the yard of a small residential home. In actuality, Stanley and Philus employed no one and the farms did not exist.
Stanley and Philus worked together to effectuate the fraud and ultimately received over $1 million in fraudulent funds from the fraudulent PPP and EIDL applications before their schemes were uncovered.
Sentencing has been scheduled for June 2.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida; Treasury Inspector General for Tax Administration (TIGTA) J. Russell George; Inspector General Hannibal “Mike” Ware of the SBA’s Office of Inspector General (OIG); and Inspector in Charge Antonio Gomez of the U.S. Postal Inspection Service Miami Division made the announcement.
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 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 EIDL program is designed to provide economic relief to small businesses that are currently experiencing a temporary loss of revenue. EIDL proceeds can be used to cover a wide array of working capital and normal operating expenses, such as continuation of health care benefits, rent, utilities and fixed debt payments. If an applicant also obtains a loan under the PPP, the EIDL funds cannot be used as the same purpose as the PPP funds.
This case was investigated by the SBA-OIG, USPIS, and TITGA. Trial Attorney Louis Manzo of the Criminal Division’s Fraud Section is prosecuting the case.
Anyone with 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.
Cedar Rapids Man Who Produced Child Pornography Sentenced to 30 Years in Federal PrisonRead the Press Release
A Cedar Rapids man, responsible for producing child pornography and then distributing it online, was sentenced today to 360 months in prison.
Nathan Krejci, age 41, from Cedar Rapids, Iowa, received the prison sentence after a June 24, 2020 guilty plea to being a drug user in possession of a firearm, sexual exploitation of a child, and distribution of child pornography.
Information disclosed at his plea and sentencing hearings showed that, beginning in September 2016 and continuing to September 24, 2019, Krejci engaged in sexually explicit conduct with a female child between the ages of 6 and 9 years old. Krejci produced a video of the conduct and distributed still shots of the video to an undercover officer online. Krejci later admitted he distributed the images to less than 12 people on the internet. The Court found that Krejci drugged the victim prior to the sexual abuse, rendering the victim unconscious during the abuse. Krejci also sexually and physically abused a 7 to 9-year-old boy approximately 13 years ago. The abuse included holding a gun to the child’s head when the child refused to drink alcohol. Investigators executed a warrant at Krejci’s residence in September 2019. During the search, they seized multiple electronic devices, two guns, marijuana, and some methamphetamine. Krejci admitted to being a frequent user of marijuana and methamphetamine. Investigators searched Krejci’s electronic devices and located between 300 and 600 images of child pornography. Krejci received some of the images from people online in exchange for sending them the images he produced with the 6 to 9-year-old female victim.
Krejci has some criminal history. This includes an OWI conviction wherein Krejci hit two pedestrians and left the scene.
“Mr. Krejci earned every day of his 30-year sentence with his shocking criminal conduct,” said Acting United States Attorney Sean Berry following the sentencing. “Our community is safer thanks to the hard work of our law enforcement partners.”
Krejci was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Krejci was sentenced to 360 months’ imprisonment. He was ordered to make payment of $300 to the special assessment fund. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorney Ashley Corkery and investigated by the Federal Bureau of Investigation. After today’s sentencing, FBI Omaha Special Agent in Charge Eugene Kowel said, “The 30-year sentence of Nathan Krejci means a despicable predator will no longer be able to commit horrific crimes against children. This case highlights the dedication of our agents and law enforcement partners to hold those who terrorize children accountable for their crimes.” The following agencies also assisted in the investigation: the Iowa Division of Criminal Investigation, Cedar Rapids Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
This case was also brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see /media/1122011/dl?inline.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-0110.
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Cardiologist Admits Unlawfully Distributing Thousands of Oxycodone PillsRead the Press Release
NEWARK, N.J. – A New Jersey cardiologist today admitted unlawfully prescribing thousands of Oxycodone pills, Acting U.S. Attorney Rachael A. Honig announced.
Raymond Catania, 59, of Warren, New Jersey, pleaded guilty by videoconference before U.S. District Judge Michael A. Shipp to an information charging him with dispensing Oxycodone outside of the usual course of professional practice and not for a legitimate medical purpose.
According to documents filed in this case and statements made in court:
Catania was a New Jersey physician specializing in cardiology and practicing in Watchung, New Jersey. From January 2016 through March 2017, Catania issued prescriptions for thousands of Oxycodone pills to one of his patients, and Catania did so without a legitimate medical purpose and outside of the usual course of professional practice. Catania also issued prescriptions for thousands of Oxycodone pills to that patient’s wife even though the wife was not Catania’s patient. Oxycodone – a Schedule II controlled substance – has a high potential for abuse that can lead to severe psychological and physical dependence and can result in fatal overdoses. Catania prescribed more than 8,600 Oxycodone 30 mg pills.
Catania faces a maximum penalty of 20 years in prison and a $1 million fine. Sentencing is scheduled for July 14, 2021.
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 today’s guilty plea.
The government is represented by Assistant U.S. Attorney Osmar J. Benvenuto of the Health Care Fraud Unit, and Leslie F. Schwartz, Senior Litigation Counsel, of the Special Prosecutions Division, in Newark.
California man admits meth trafficking crimeRead the Press Release
BILLINGS — A California man accused of trafficking methamphetamine after law enforcement officers found 24 pounds of the drug hidden in a vehicle he was driving pleaded guilty today to a trafficking crime, Acting U.S. Attorney Leif Johnson said.
Christopher Santillanes Ceja, 31, of Riverside, California, pleaded guilty to possession with intent to distribute meth. Ceja faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Ceja was detained pending further proceedings.
U.S. Magistrate Judge Timothy J. Cavan presided. A sentencing date before U.S. District Judge Susan P. Watters has not yet been set.
In court documents filed in the case, the government alleged that law enforcement agents learned in March 2019 about a shipment of meth being transported from Mexico to Billings. Law enforcement surveillance saw a vehicle with a California license plate registered to Ceja pull into a Billings hotel. Ceja was known to law enforcement as having been involved in meth trafficking in the Billings area. Later that same evening, officers conducted a traffic stop of the vehicle and Ceja was driving. Agents impounded and searched the vehicle pursuant to a warrant. Agents located 19 bundles of meth concealed throughout the vehicle. The meth totaled 11 kilograms, or about 24.2 pounds, of pure meth. Eleven kilograms of meth is the equivalent of about 87,700 doses.
Assistant U.S. Attorney Lori Suek is prosecuting the case, which was investigated by the FBI Western Transnational Organized Crime Task Force and the Eastern Montana High Intensity Drug Trafficking Area Task Force.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. According to the FBI’s Uniform Crime Reports, violent crime in Montana increased by 48% from 2013 to 2019. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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California Man Pleads Guilty to Distribution of MethamphetamineRead the Press Release
PORTLAND, Ore.—A Coachella, California man pleaded guilty today to transporting five pounds of methamphetamine from Coachella to Aumsville, Oregon, announced Acting U.S. Attorney Scott Erik Asphaug.
Gerardo Figueroa-Felix, 36, pleaded guilty to one count of distribution of methamphetamine.
According to court documents, on January 7, 2019, Marion County Sheriff’s Office deputies responded to a call that squatters had returned to a foreclosed property in Aumsville and that there was methamphetamine inside the house. Deputies had locked the property four days prior in response to a court order. Two deputies approached the house together and spotted a white Chevrolet pickup truck with a California license plate backed into the driveway. As they approached, the deputies saw Figueroa-Felix tying up a tarp near the back of the vehicle.
One of the deputies approached Figueroa-Felix and asked why he was on the property. Figueroa-Felix produced three identification cards with his name and photograph on them. The deputy watched as Figueroa-Felix began to reach his hands into the front pockets of his jacket and ordered him to remove them. The deputy then proceeded to search Figueroa-Felix’s person and located a loaded semi-automatic Ruger 9mm handgun in his left-front pants pocket. The deputy discovered a second loaded handgun tucked into Figueroa-Felix’s waistband. Figueroa-Felix also had a double magazine pouch attached to his belt.
The investigation revealed Figueroa-Felix was a drug mule from Coachella and was paid to transport five pounds of crystal methamphetamine from Southern California to Oregon. He previously sold two pounds of methamphetamine on the Aumsville property and returned that day to sell more. Deputies seized three pounds of methamphetamine and large quantities of live .45 caliber ammunition from his truck along with another handgun.
On March 20, 2019, a federal grand jury in Portland returned a three-count indictment charging Figueroa-Felix with possession with intent to distribute methamphetamine, distribution of methamphetamine, and possession of a firearm in furtherance of a drug trafficking crime.
Figueroa-Felix faces a maximum sentence of 40 years in prison, a $5 million fine, and four years of supervised release. With Figueroa-Felix’s continued acceptance of responsibility, the government has agreed to a recommended sentence of 70 months in prison and four years’ supervised release. Figueroa-Felix will be sentenced on June 7, 2021 before U.S. District Court Judge Karin Immergut.
This case was investigated by the Marion County Sheriff’s Office, Salem Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). It is being prosecuted by Hannah Horsley and Pamela Paaso, Assistant U.S. Attorneys for the District of Oregon.
Boston Man Pleads Guilty to Fentanyl Trafficking and Cocaine ConspiracyRead the Press Release
BOSTON – A Boston man pleaded guilty today in connection with drug trafficking activities involving fentanyl and cocaine.
Jovani Santiago, 29, pleaded guilty to one count of distribution of and possession with intent to distribute 400 grams or more of fentanyl and one count of conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine. U.S. Senior District Court Judge Mark L. Wolf scheduled sentencing for May 31, 2021. Santiago was charged by complaint and arrested on Aug. 27, 2020.
Santiago sold approximately 500 grams of fentanyl to a cooperating witness in a Roxbury apartment on Aug. 12, 2020. Additionally, it is alleged that Santiago conspired with others to distribute cocaine in Massachusetts and New York.
The charges of distribution of and possession with intent to distribute 400 grams or more of fentanyl and conspiracy to distribute with intent to distribute five kilograms or more of cocaine carry a mandatory minimum sentence of 10 years and up to life in prison, at least five years of supervised release and a fine of up to $10 million. 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 and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement. Special assistance was provided by the Drug Enforcement Administration, New York Field Division and the U.S. Attorney’s Office for the Southern District of New York. Assistant U.S. Attorney Stephen W. Hassink of Mendell’s Narcotics and Money Laundering Unit is prosecuting the case.
The operation was conducted by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.
Boise Man Sentenced to 25 Years for Sexual Exploitation of a ChildRead the Press Release
BOISE – Aaron John Lane, 57, of Boise, was sentenced in U.S. District Court to 300 months in federal prison for sexual exploitation of a child, Acting U.S. Attorney Rafael M. Gonzalez, Jr. announced today. U.S. District Judge B. Lynn Winmill also ordered Lane to pay a $3,000 fine and to serve 20 years of supervised release following his prison sentence. Lane pleaded guilty to the charge on December 7, 2020.
According to court records, in July 2019, the mother of the thirteen-year-old victim contacted law enforcement to report that Lane had been communicating with her daughter through Facebook. Law enforcement learned that Lane was a registered sex offender and had posed as a teenaged male during his communications with the victim. During the communications, Lane asked the victim take explicit images of herself and send them to him. Lane was arrested after arranging to meet the victim. During an interview, Lane admitted to communicating with the victim and to receiving explicit images of her.
As part of the investigation, law enforcement seized two cellphones belonging to Lane. A federal magistrate judge issued a search warrant for the cellphones. An agent with the Federal Bureau of Investigation (FBI) examined the cellphones and located Facebook and Instagram communications between Lane and other underage females. A federal magistrate judge also issued search warrants for Lane’s social media accounts. In reviewing the accounts, the FBI agent determined that Lane had requested, and received, sexually explicit images from several minors.
At sentencing, Judge Winmill also ordered Lane to forfeit the electronic devices used in the commission of the offense. As a result of conviction, Lane will be required to register as a sex offender.
This case was investigated by the FBI and the Boise Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Berkeley County woman sentenced for role in drug conspiracyRead the Press Release
MARTINSBURG, WEST VIRGINIA – Ashley Marie Seal, of Bunker Hill, West Virginia, was sentenced today to 21 months of incarceration for her role in a drug conspiracy that spanned several states, Acting United States Attorney Randolph J. Bernard announced.
Seal, 32, pled guilty in November 2020 to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Heroin, Fentanyl, and Cocaine Base.” Seal admitted to working with others to distribute heroin, fentanyl, and cocaine base from January 2019 to September 2019 in Berkeley and Jefferson Counties and elsewhere.
This case is the result of investigations supported by the Organized Crime Drug Enforcement Task Force (OCDETF) under the Attorney General-led Synthetic Opioid Surge (SOS)/Special Operations Division (SOD) Project Clean Sweep. This initiative seeks to reduce the supply of synthetic opioids in “hot spot” areas previously identified by the Attorney General of the United States, thereby reducing drug overdoses and drug overdose deaths, and identify wholesale distribution networks and sources of supply operating nationally and internationally.
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.
Assistant U.S. Attorney Lara Omps-Botteicher and Special Assistant U.S. Attorney C. Lydia Lehman, also with the Berkeley County Prosecuting Attorney’s Office, prosecuted the case on behalf of the government. The FBI; Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms & Explosives; and the Eastern Panhandle Drug and Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
Chief U.S. District Judge Gina M. Groh presided.Arizona Man Pleads Guilty in Cocaine ConspiracyRead the Press Release
PITTSBURGH – Richard Georgelos pleaded guilty to conspiring to distribute at least 500 grams of cocaine between 2017 and 2019, Acting United States Attorney Stephen R. Kaufman announced today.
Georgelos, age 37 of Santa Cruz, Arizona, pled guilty before United States District Judge J. Nicholas Ranjan. Judge Ranjan scheduled sentencing to occur on July 13, 2021, at 10:00 a.m.
The law provides for a sentence of at least 5 years and up to 40 years in prison and a fine of up to $5,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed is to be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Craig W. Haller is prosecuting this case on behalf of the United States.
The Drug Enforcement Administration, the Internal Revenue Service, the federal Bureau of Prisons, and the Pennsylvania Office of Attorney General led the multi-agency investigation that also included the United States Postal Inspection Service, the Beaver County District Attorney’s Office, the Department of Homeland Security/Homeland Security Investigations, the Pittsburgh Police Department, the United States Marshals Service, the Pennsylvania State Police, the Munhall Police Department, the Robinson Township Police Department, the McKees Rocks Police Department, the Stowe Township Police Department, the Etna Police Department, and the Erie County District Attorney’s Office.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Acting U.S Attorney Seth D. DuCharme Announces Resignation from OfficeRead the Press Release
Seth D. DuCharme is resigning as Acting United States Attorney for the Eastern District of New York effective March 19, 2021. Mr. DuCharme has served in the position as chief federal law enforcement officer for the district comprising Brooklyn, Queens and Staten Island in New York City, and Nassau and Suffolk Counties on Long Island, since July 10, 2020. Earlier today, Mr. DuCharme sent letters to President Biden and Acting United States Attorney General Monty Wilkinson informing them of his decision.
First Assistant U.S. Attorney Mark J. Lesko will become the Acting U.S. Attorney upon Mr. DuCharme’s departure.
Statement from Acting United States Attorney DuCharme:
“Earlier today, I announced that I am stepping down as Acting U.S. Attorney in the Eastern District of New York, effective March 19, 2021. I have enjoyed a long and rewarding career in the Department, from Deputy U.S. Marshal to Principal Deputy Associate Attorney General of the United States, to my current position. At each stage of my career, I was blessed to be faced with worthy challenges on behalf of the American people. My time in EDNY and the Department gives me great confidence that the American people are well served by forward-leaning professionals, who put mission first, and assume risks every day on behalf of the people they are sworn to serve. My guiding principles have been to serve others and to do my best to go where I am needed most. After having had the opportunities to serve at so many levels, from junior AUSA, to close advisor to the Attorney General and Deputy Attorney General, and most recently as Acting U.S. Attorney, I am now thrilled to be spending more time with my family, and to transitioning thoughtfully and successfully into private practice, where I intend to serve clients zealously, capably and honorably. To all of those who offered me the chances to take risks, to test myself against the most skilled adversaries in the defense bar, to grow as a lawyer, and to serve the public, I am forever grateful. Over the next two weeks, I will be increasingly shifting responsibility to my First Assistant U.S. Attorney, Mark Lesko – a proven professional who has served the District and the nation with distinction. I have great confidence that the Office and the Department will function smoothly and effectively as we prepare for my departure.”
During his tenure as Acting U.S. Attorney, Mr. DuCharme’s notable achievements include the expansion of the Office’s Rapid and Strategic Prosecution (RASP) Initiative to more effectively use crime data to identify, investigate, disrupt and prosecute violent armed criminals and organizations; and the creation of a Bank Integrity Task Force to investigate and charge corporate and individual actors who launder criminal proceeds using the U.S. banking system and to enforce anti-money laundering controls.
Prior to his designation as Acting United States Attorney, Mr. DuCharme served as the Principal Associate Deputy Attorney General at the Department of Justice in Washington, D.C. from December 2019 until July 2020. From March 2019 to December 2019, Mr. DuCharme served as Counselor to Attorney General William P. Barr. He worked with Attorney General Barr and Deputy Attorney General Jeffrey Rosen to supervise and coordinate the work of all of the Department’s components, including all 94 United States Attorney’s Offices. In addition, he helped to coordinate national initiatives against fraud, opioid trafficking, transnational organized crime, international terrorism and other national security priorities.
Prior to his work at Main Justice, Mr. DuCharme served as Chief of the Criminal Division in the U.S. Attorney’s Office for the Eastern District of New York, where he initiated and supervised numerous investigations and prosecutions across a wide range of subject areas, including corporate and securities fraud, terrorism, cybercrime, public corruption, international narcotics trafficking, civil rights violations, and violent and organized crime.
Mr. DuCharme first joined the U.S. Attorney’s Office for the Eastern District of New York in March 2008 and has served in the General Crimes, Violent Crimes and Terrorism, and National Security and Cybercrime Sections. He also has served as Chief and Deputy Chief of the Office’s National Security and Cybercrime Section, the Office’s National Security Cyber Specialist and the Office’s representative on the Anti-Terrorism Advisory Council.
Saturday 6 March 2021
Ross Elliot Hoelscher Indicted for Use of a Communication FacilityRead the Press Release
TOPEKA, KAN. – Ross E. Hoelscher, 38, of Topeka, Kansas, has been indicted and arrested on federal charges of violation of two counts of 21 U.S.C. 843(b), Use of a Communication Facility.
“During this investigation, federal, state and local law enforcement partners worked extremely well together to make certain these alleged criminal acts do not go unpunished,” said Acting U.S. Attorney Duston Slinkard.
Upon conviction, the crimes carry the following penalties:
COUNTS ONE AND TWO
21 U.S.C. 843(b) Use of a Communication Facility
- Punishable by a term of imprisonment not to exceed eight (8) years.
- A fine not to exceed the greater of that authorized in accordance with 18 U.S.C. 3571(b)(3) or $250,000.00.
- Or both, and
- A term of supervised release not to exceed three (3) years.
- A mandatory special assessment of $100.00
An initial appearance for Mr. Hoelscher is scheduled for March 8, 2021, at 2:30, before U.S. Magistrate Judge Angel D. Mitchell.
This case is a joint investigation being conducted by the Topeka Police Department and the Federal Bureau of Investigation.
Assistant U.S. Attorney Jared Maag is prosecuting the case.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
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Jeremiah M. Guesby Indicted for Possession with Intent to Distribute MarijuanaRead the Press Release
TOPEKA, KAN. – Jeremiah M. Guesby, 18, of Topeka, Kansas, has been indicted and arrested on federal charges of violation of 21 U.S.C. 841(a)(1), Possession with Intent to Distribute Marijuana and 18 U.S.C. 924(c)(1)(A), Possession of a Firearm in Furtherance of a Drug Trafficking Crime.
“This case highlights the importance of the strong working relationships among federal, state and local law enforcement,” said Acting U.S. Attorney Duston Slinkard.
Upon conviction, the crimes carry the following penalties:
COUNT ONE
21 U.S.C. 841(a)(1) Possession with the Intent to Distribute Marijuana
- Punishable by a term of imprisonment not to exceed five (5) years.
- A fine not to exceed the greater of that authorized in accordance with 18 U.S.C. 3571(b)(3) or $250,000.00.
- Or both, and
- A term of supervised release of at least two (2) years.
- A mandatory special assessment of $100.00.
COUNT TWO
18 U.S.C. 924(c)(1)(A) and Possession of a Firearm During and in Relation to Drug Trafficking Crime
- A term of imprisonment of not less than five (5) years and no more than life to run consecutive to any term of imprisonment imposed for the drug trafficking crime during which the firearm was possessed.
- A fine not to exceed $250,000.00.
- A term of supervised release not to exceed five (5) years.
- A mandatory special assessment of $100.00 per count of conviction.
An initial appearance for Mr. Guesby is scheduled for March 8, 2021, at 1:00, before U.S. Magistrate Judge Angel D. Mitchell.This case is a joint investigation being conducted by the Topeka Police Department and the Federal Bureau of Investigation.
Assistant U.S. Attorney Jared Maag is prosecuting the case.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
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Friday 5 March 2021
West Virginia Man Sentenced for Role in DS44 Drug Trafficking RingRead the Press Release
PITTSBURGH - A resident of Hundred, West Virginia, has been sentenced in federal court to time served and 3 years’ supervised release on his conviction of conspiring to distribute fentanyl, heroin, and other drugs, Acting United States Attorney Stephen R. Kaufman announced today.
United States District Judge William S. Stickman, IV, imposed the sentence on Jesse Tedrow, age 28. Tedrow is one of 37 defendants charged in the Indictment.
According to information presented to the court, in 2017, the Greater Pittsburgh Safe Streets Task Force initiated an investigation targeting the Darccide/Smash 44, or DS44, neighborhood gang, and its drug-trafficking activity, in and around the South Side area of Pittsburgh. As part of this large-scale narcotics and firearms investigation, in February of 2019, the United States received authorization to conduct a federal wire investigation, which continued through June of 2019. Jesse Tedrow was identified as a low-level fentanyl and heroin distributor through intercepted communications and surveillance conducted as part of the investigation. Tedrow accepted responsibility for the distribution of 18 grams of a mixture of fentanyl and heroin.
Prior to imposing sentence, Judge Stickman noted that Tedrow’s criminal conduct appeared to be directly related to his own drug addiction and ordered that he complete a drug treatment program as part of his sentence.
Assistant United States Attorneys Carolyn J. Bloch and Brendan J. McKenna prosecuted this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Bureau of Alcohol Tobacco Firearms and Explosives, Allegheny County Adult Probation, Allegheny County Police Department, Allegheny County Sheriff’s Office, Pennsylvania Attorney General’s Office Bureau of Narcotics, Pittsburgh Bureau of Police, and the Wilkinsburg Police Department. Other assisting agencies include the Green Tree Police Department, New York City Police Department, Mount Oliver Police Department, Pennsylvania State Police, Yonkers Police Department, United States Marshals Fugitive Task Force, and the United States Postal Inspection Service.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Webster City Man Sentenced to Federal Prison for Child PornRead the Press Release
A man who received and distributed child pornography was sentenced February 26, 2021, to more than 14 years in federal prison.
Kevin Eugene Dill, age 56, from Webster City, Iowa, received the prison term after an October 9, 2020, guilty plea to one count of distribution of child pornography and one count of receipt of child pornography.
In a plea agreement, Dill admitted that between March 2012 through June 2020, he knowingly received and possessed over thousands of images and videos of child pornography. In September of 2017, an FBI Special Agent operating in an undercover capacity conducted several undercover sessions with Dill, wherein Dill distributed child pornography to the undercover agent. On October 31, 2017, law enforcement executed a search warrant at Dill’s residence, and Dill admitted to receiving child pornography. Despite being confronted, Dill continued to access child pornography utilizing PayPal to purchase child pornography from a Chinese website. When Dill was arrested in June 2020, he again admitted to accessing child pornography for sexual gratification.
Dill was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Dill was sentenced to 169 months’ imprisonment. He was ordered to make $60,500 in restitution. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system.
Dill is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
The case was prosecuted by Assistant United States Attorney Mikala Steenholdt and investigated by The Iowa Internet Crimes Against Children Task Force and the FBI Child Exploitation and Human Trafficking Task Force.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-3013.
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United States Attorney’s Office Files Lawsuit Against Saipan Physician for Violations of the Controlled Substances ActRead the Press Release
SAIPAN, MP – The United States filed a civil complaint seeking to enjoin a Saipan physician from unlawfully dispensing opioids and other controlled substances. The government alleges that Dr. John L. Doyle unlawfully issued controlled substance prescriptions in violation of the Controlled Substances Act under Title 21 of the United States Code.
The complaint, filed in U.S. District Court for the Northern Mariana Islands, alleges that Dr. Doyle issued multiple prescriptions for high quantities of a dangerous combination of drugs commonly known as the Holy Trinity – opioids, benzodiazepines, and muscle relaxants – as well as other controlled substances to the spouse of a colleague, frequently without examining the patient. He allegedly ignored obvious signs of addiction and physical and mental deterioration when issuing opioid prescriptions and other controlled substances to another patient. The complaint also alleges that Dr. Doyle’s actions contributed to a high risk of overdose or death in these patients, a risk that he knew or should have known because he had been previously disciplined by the Kentucky Medical Board for similar violations that were related to the overdose death of a patient.
“It is a sad reality that some medical practitioners are fueling drug addiction in the United States. All too often, the diversion of drugs for illegitimate use results in tragic consequences,” said U.S. Attorney Shawn N. Anderson. “The Department of Justice is fighting this epidemic in a variety of ways. As this case demonstrates, we can and will pursue civil litigation to cut off the flow of illicit prescriptions at the source. We look forward to proving our claims in court and holding Dr. Doyle accountable for his conduct.”
“Doctors have a trusted responsibility to properly and legally care for their patients and when individuals take actions to harm them, they will be held accountable,” said DEA Assistant Special Agent in Charge Leslie Tomaich. “We have no tolerance for medical professionals that violate their oath and illegally distribute prescription drugs that exacerbate the opioid epidemic.”
The complaint alleges that Dr. Doyle wrote prescriptions for potent and dangerous opioids that he knew or should have known were not issued for a legitimate medical reason and outside the usual course of professional practice. The complaint seeks civil penalties up to $67,627 for each of the 73 violations of the Controlled Substances Act, as well as an injunction against the defendant. While several settlements have been reached with other physicians in this region pre-complaint, this lawsuit represents the first-ever Controlled Substances Act civil suit against a physician in the history of the District of the Northern Mariana Islands.
The claims asserted against defendants in a civil suit are allegations only and are not determinations of liability.
The investigation is being conducted by the Drug Enforcement Administration, Honolulu Diversion Group and Saipan Post of Duty. The case is being prosecuted by Mikel Schwab and Jessica F. Wessling, Assistant U.S. Attorneys for the Districts of Guam and the Northern Mariana Islands.
U.S. Attorney's Office and Danbury Hospital Resolve ADA ComplaintRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, today announced that the U.S. Attorney’s Office has reached a settlement agreement with Danbury Hospital, which owns and operates Morganti Wound Care Center (“MWCC”), to resolve allegations that MWCC was not operating in compliance with the Americans with Disabilities Act of 1990 (“ADA”).
The settlement agreement resolves an ADA complaint filed by a patient who uses a wheelchair, who alleged that he was denied full and equal access to the services provided by MWCC based on his disability, when he attempted to receive medical treatment. Specifically, he alleged that he was told he must reschedule his appointment because MWCC did not have the equipment or training necessary to transfer him from his wheelchair to the examination table.
Under the terms of the settlement agreement, Danbury Hospital will adopt a nondiscrimination policy that outlines its obligations pursuant to Title III of the ADA. MWCC will also ensure that individuals with mobility disabilities are afforded equal access to its facilities and services, by training all staff who interact with patients on the requirements of Title III of the ADA as they apply to healthcare facilities and on techniques for safely assisting individuals with mobility disabilities to transfer to examination tables.
Danbury Hospital is also taking steps to ensure that each of its outpatient facilities has and will maintain access to a Hoyer lift, and has implemented other practices to transfer a patient onto examination tables, or other equipment, safely. Danbury Hospital has also agreed to compensate the complainant in the amount of $10,000.
Under federal law, private entities that own or operate places of “public accommodation,” including professional offices of healthcare providers, hospitals, and other service establishments are prohibited from discriminating on the basis of disability. The ADA authorizes the U.S. Department of Justice to investigate complaints and undertake periodic reviews of compliance of covered entities. The Justice Department is also authorized to commence a civil lawsuit in federal court in any case that involves a pattern or practice of discrimination or that raises issues of general public importance, and to seek injunctive relief, monetary damages, and civil penalties.
Acting U.S. Attorney Boyle noted that Danbury Hospital was cooperative with the U.S. Attorney’s Office and is committed to addressing the issues raised by the ADA investigation without litigation.
Any member of the public who wishes to file a complaint alleging that any place of public accommodation or public entity in Connecticut is not accessible to persons with disabilities may contact the U.S. Attorney’s Office at 203-821-3700.
Additional information about the ADA can be found at www.ada.gov, or by calling the Justice Department’s toll-free information line at (800) 514-0301 and (800) 514-0383 (TTY). More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.
Two Ukrainian Nationals Extradited to U.S. on Money Laundering ChargesRead the Press Release
Two members of an international organized network that provided cash-out and money laundering services to cyber actors were extradited from the Czech Republic to Dallas.
Viktor Vorontsov, 39, and Zlata Hanska Muzhuk, 40, were charged in a one-count indictment with conspiracy to launder funds filed in February 2020 in the Northern District of Texas.
According to the indictment, Muzhuk and Vorontsov were allegedly members of an international organized network providing cash-out and money laundering services to cyber actors who used stolen bank login credentials to initiate fraudulent electronic funds transfers from victims’ bank accounts to bank accounts (drop accounts) created and controlled by the cash-out actors. For a fee, Muzhuk and Vorontsov provided a network of drop accounts and money mules to receive, transfer, and conceal money derived from the fraudulent online transfers of funds. The indictment alleges the conspiracy existed for the entirety of 2017 and focused on seven electronic funds transfers in October and November 2017, totaling almost $500,000.
During the FBI’s investigation of Muzhuk and Vorontsov, the Czech National Organized Crime Agency (NCOZ) collaborated to gather information and evidence. In late January 2020, NCOZ informed the FBI that Muzhuk was visiting Vorontsov at his residence in the Czech Republic. A criminal complaint and an arrest warrant were issued by a U.S. Magistrate Judge in Dallas and an FBI special agent from Dallas traveled to the Czech Republic to coordinate with the NCOZ.
In an unprecedentedly prompt response on Feb. 6, 2020, the NCOZ effected the arrests of Muzhuk and Vorontsov at the request of the U.S. and seized valuable evidence from both defendants and from Vorontsov’s residence. Muzhuk and Vorontsov were detained pending the extradition proceedings. On Dec. 4, 2020, and Jan. 21, 2021, respectively, the Ministry of Justice of the Czech Republic granted the extradition of Muzhuk and Vorontsov. The defendants were transferred to FBI custody on March 3, 2021 and were flown from Prague to Dallas.
Vorontsov and Muzhuk appeared before U.S. Magistrate Judge Toliver in the Northern District of Texas and entered not-guilty pleas to the charges. Vorontsov and Muzhuk remain in the custody of the U.S. Marshals Service.
The FBI’s Dallas Field Office conducted the investigation. The Justice Department’s Office of International Affairs provided substantial assistance in securing the defendants’ extradition from the Czech Republic.
Senior Trial Attorney C.S. Heath of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Robert Nichols of the Northern District of Texas are prosecuting the case.
An indictment is merely an accusation. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Two Buffalo Men Arrested on Fentanyl Conspiracy ChargesRead 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 Alexis Lopez, 27, and Ivan Irizarry-Ramos, 35, both of Buffalo, NY, were arrested and charged by criminal complaint with conspiring to possess with intent to distribute fentanyl. The charge carries a minimum penalty of 10 years in prison, a maximum of life, and a $10,000,000 fine.
“Sadly, this deadly mixture of cocaine and fentanyl is becoming increasingly prevalent in our District,” noted U.S. Attorney Kennedy. “Buyers of cocaine may have no idea that their drug of choice is laced with fentanyl. This situation is extremely dangerous and often deadly, especially for unsuspecting cocaine users who have no tolerance for opioid drugs.”
Assistant U.S. Attorneys David J. Rudroff and Charles M. Kruly, who are handling the case, stated that according to the complaint, on March 1, 2021, the U.S. Postal Inspection Service executed a search warrant on a Priority Mail Express Parcel, which contained approximately ½ a kilogram of a substance containing a mixture of fentanyl and cocaine. The drugs inside the parcel were replaced with sham material, and an undercover agent delivered the parcel to an address on Leroy Avenue in Buffalo, where it was accepted by defendant Lopez. After the parcel was taken inside, agents were alerted that the parcel had been opened. Following that alert, a search warrant was executed and agents discovered Lopez and defendant Irizarry-Ramos together in an apartment, from which they also recovered a digital scale, plastic packaging materials, and an electric blender with white powdery substance inside.
The defendants made an initial appearance before Magistrate Judge Michael J. Roemer and are being held pending a detention hearing on March 11, 2021.
The complaint is the result of an investigation by the United States Postal Inspection Service, under the direction of Inspector-in-Charge Joseph W. Cronin of the Boston Division, and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Troy Businessman Pleads Guilty to Hoarding and Price Gouging FacemasksRead the Press Release
ALBANY, NEW YORK – Imran Selcuk, age 35, of Troy, New York, pled guilty today to hoarding and price gouging in violation of the Defense Production Act of 1950 (DPA). The announcement was made by Acting U.S. Attorney Antoinette T. Bacon and Kevin Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
“Selcuk saw the pandemic as an opportunity to rip off Capital Region residents and prey upon their fears,” said Acting U.S. Attorney Antoinette T. Bacon. “He purchased thousands of masks from overseas and offered them for sale at highly inflated prices when masks were scarce and the pandemic had just started to take hold. This office will continue to work in coordination with the COVID-19 Hoarding and Price Gouging Task Force to prevent greedy profiteers from taking advantage of this emergency for illicit gain.”
“It is unfathomable that during a global pandemic, individuals such as Selcuk place their selfish greed above service to community,” said Kevin Kelly, Special Agent in Charge of HSI Buffalo. “Homeland Security Investigations will continue to work tirelessly to arrest anyone attempting to leverage the pandemic to illicitly profit from our communities.”
As part of his guilty plea to a misdemeanor, Selcuk admitted that, in March 2020, he purchased approximately 100,000 KN95 facemasks and 25,000 surgical-style facemasks for $1 per mask and 50 cents per mask, respectively. Selcuk then offered these masks for sale at his Troy pizza restaurant and through a website at markups of as high as 500%. Selcuk also admitted that his website falsely represented that the KN95 masks he offered for sale were certified by the U.S. Food & Drug Administration (FDA). In fact, the FDA does not “certify” facemasks.
U.S. Magistrate Judge Christian F. Hummel is scheduled to sentence Selcuk on July 2, 2021. Selcuk faces up to one year in prison, a $10,000 fine, and up to one year of post-imprisonment supervised release. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by HSI, with assistance from the U.S. Postal Inspection Service, and is being prosecuted by Assistant U.S. Attorneys Michael D. Gadarian and Joshua R. Rosenthal.
This case was brought in coordination with the Department of Justice’s COVID-19 Hoarding and Price Gouging Task Force, which organizes efforts among the Antitrust Division and U.S. Attorney’s offices across the country to address illegal activity involving personal protective equipment.
Three Correctional Officers and a Sergeant Charged with Assaulting Federal Pretrial DetaineeRead the Press Release
NEWARK, N.J. – Three Essex County correctional officers and one sergeant have been charged with conspiring to violate a pretrial detainee’s civil rights, Acting U.S. Attorney Rachael A. Honig announced today.
Officers Angel Chaparro, 38, Damion James, 40, and Luis Ortiz, 29, and Sgt. Herman Pride, 51, are each charged by complaint with one count of conspiracy to violate civil rights. Pride and Ortiz were arrested on March 4, 2021, and had their initial appearances before U.S. Magistrate Judge James B. Clark III. Both were released on bail. Chaparro and James were arrested this morning and will have their initial appearances by videoconference Judge Clark this afternoon.
According to the criminal complaint:
On the evening of Aug. 17, 2020, a federal pretrial detainee at Essex County Correctional Facility (ECCF) squirted a mixture of urine, yogurt, and milk onto a correctional officer. The detainee subsequently was transported to a disciplinary cell, where Chaparro, James, and Ortiz assaulted the detainee, striking him multiple times. Pride did not intervene to stop the assault. At the end of the assault, Pride said, “okay, that’s enough.” During the assault, James’ watch fell off. He and other officers returned to the detainee’s cell to retrieve his watch.
The detainee asked for, and was initially denied, medical assistance. The victim later told Pride that if Pride would provide the victim with medical attention, the victim would lie and say that he had fallen off his bed. Pride refused to provide any medical attention. Two days later, the detainee was finally taken to the emergency room at University Hospital in Newark. He was diagnosed with large swelling and tenderness in the right side of his face and discoloration and bruising around his right eye.
The defendants all were required to submit documentation regarding their use of force. None of them submitted any such reports. Instead, Chaparro signed a false report indicating that no force had been used.
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 the Essex County Correctional Facility Internal Affairs Bureau, under the direction of Director Alfaro Ortiz and the Office of the Warden, with the investigation leading to the charges.
The government is represented by Acting Principal Assistant U.S. Attorney Rahul Agarwal.
The charges and allegations in the criminal complaint are merely accusations, and the defendants are all presumed innocent unless and until proven guilty.
Texas woman sent to prison for importing over $1M of methRead the Press Release
McALLEN, Texas – A 21-year-old woman from Houston has been ordered to federal prison following her conviction for attempting to import approximately 55 kilograms of meth, announced Acting U.S. Attorney Jennifer B. Lowery.
Heidy Jackaline Diaz pleaded Nov. 6, 2020.
Today, U.S. District Judge Micaela Alvarez ordered Diaz to serve a 70-month sentence to be immediately followed by three years of supervised of release. At the hearing, the court noted the large amount of meth involved its potential harm to the community .
On May 23, 3020, Diaz arrived at the Hidalgo Port of Entry driving a Ford truck and applied for admission into the United States from Mexico. During inspection, authorities conducted an X-ray examination which showed anomalies in the gas tank area of the vehicle. A K-9 also altered to the presence of narcotics.
Law enforcement ultimately extracted more than 120 pounds of meth with an approximate street value of over $1 million.
Diaz admitted she knowingly imported the meth into the United States from Mexico with the intent to deliver them to another individual in McAllen. She expected to be paid $3,000.
She has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the future.
Immigration and Customs Enforcement’ s Homeland Security Investigations and Customs and Border Protection conducted the investigation. Assistant U.S. Attorneys Frances E. Blake and Eliza Carmen prosecuted the case.
Tax Preparer Pleads Guilty to Conspiring to Defraud the IRSRead the Press Release
A Maryland tax return preparer pleaded guilty today to conspiracy to defraud the United States and aiding in the preparation of a false tax return.
According to court documents and statements made in court, Anita Fortune, 56, of Upper Marlboro, provided return preparation services under multiple business names, including Tax Terminatorz Inc. Fortune prepared and filed returns using co-conspirators’ electronic filing identification numbers and identifiers, which they provided in exchange for fees and office space. For the tax years 2011 to 2018, Fortune and her associates fraudulently reduced their clients’ tax liabilities and increased their refunds by adding fictitious or inflated itemized deductions and business losses to the clients’ returns. In total, Fortune caused a tax loss to the IRS of $189,748.
Fortune is scheduled to be sentenced on June 4, 2021, and faces a maximum sentence of five years in prison for the conspiracy count and three years for the preparing a false return count. Fortune also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any 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 Jonathan Lenzner for the District of Maryland made the announcement.
The IRS-Criminal Investigation is investigating the case.
Trial Attorney Kathryn Sparks of the Tax Division and Assistant U.S. Attorney Leah Grossi are prosecuting the case.
Statesboro man sentenced to federal prison for illegally possessing ammunitionRead the Press Release
STATESBORO, GA: A Statesboro man arrested after a shooting on a residential street has been sentenced to eight years in federal prison while still facing state charges.
Courtney Raynard Spann, 29, of Statesboro, was sentenced to 96 months in prison by U.S. District Court Judge R. Stan Baker after pleading guilty to Possession of Ammunition by a Convicted Felon, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. Spann also was ordered to serve three years of supervised release upon completion of his prison term.
There is no parole in the federal system.
“Previously convicted felons are prohibited from possessing firearms or ammunition - period,” said Acting U.S. Attorney Estes. “Courtney Spann’s record makes it abundantly clear why these laws are in place, and our office will relentlessly enforce these laws to keep firearms out of the hands of violent criminals.”
As described in court documents and testimony, Spann came to the attention of officers from the Statesboro Police Department who were investigating reports of gunfire in a high-density residential area on Jan. 25, 2020, that resulted in damage to multiple homes and vehicles. Spann was located and later arrested, and officers found four firearms, including assault-style weapons, along with multiple rounds of ammunition, extended magazines and drum magazines in his vehicle.
Investigators also determined that Spann is a member of the Gangster Disciples criminal street gang, with a criminal history that includes a felony conviction for drug trafficking. He faces additional state charges related to the incident that led to his arrest.
“Keeping guns out of the hands of repeat felony offenders is a priority for the FBI because of offenders like Spann,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “But we couldn't do it without the partnerships with our fellow local, state, and federal law enforcement agencies, in particular in this case, the Statesboro Police Department.”
The case is being investigated by the FBI and the Statesboro Police Department, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives, and prosecuted for the United States by Assistant U.S. Attorneys Jennifer Stanley and Tara M. Lyons.
Springfield Man Sentenced for Failing to Register as a Sex OffenderRead the Press Release
BOSTON – A Springfield man was sentenced today in federal court for failing to register as a sex offender.
Ruben Pagan, 50, was sentenced by U.S. District Court Judge Mark G. Mastroianni to two years in prison and 10 years of supervised release. In August 2020, Pagan pleaded guilty to one count of failing to register as a sex offender.
Pagan, who was convicted of a sex offense in 2002, moved from Springfield to Providence, R.I. in October 2017. He remained in Providence until March 2018, when he was arrested on a Massachusetts state court warrant charging him with child sexual abuse. Pagan failed to register as a sex offender in Rhode Island, including while the warrant for his arrest was outstanding.
The two-year sentence imposed today will run consecutively to a six-year state court sentence Pagan is currently serving after previously pleading guilty to rape and abuse of a child. Pagan was also convicted of failure to register as a sex offender on two prior occasions in Massachusetts state court.
Acting United States Attorney Nathaniel R. Mendell and John Gibbons, United States Marshal for the District of Massachusetts made the announcement. Assistant U.S. Attorney Alex J. Grant of Mendell’s Springfield Branch Office prosecuted the case.
South Florida Escort Sentenced to Prison for Tax FraudRead the Press Release
Miami, Florida – A South Florida male escort who lied to the IRS about his income was sentenced today to 21 months in prison and ordered to pay $278,325 in restitution.
According to court documents, 46-year-old Jami Kopacz worked as a paid escort directly with individual clients and with a private escort company as an independent contractor. Kopacz accepted payment for his work through cash, check, wire transfer, and electronic money transfer to JK Trading LLC, a Florida “Subchapter S” corporation that he established in 2015. Kopacz, the sole owner of JK Trading, elected to report the company’s income and losses on his personal tax returns. This meant that JK Trading’s income, losses, deductions, and credits would pass through to Kopacz’s individual tax returns and that Kopacz would pay tax on the company’s earnings at the individual, and not the corporate, tax rate.
From 2015 to 2018, Kopacz filed false corporate tax returns with the IRS that substantially underreported JK Trading’s gross receipts and total income. This understatement on JK Training’s corporate tax returns passed through to Kopacz’s individual tax returns, which were also false because they underreported his total income. Kopacz caused a total tax loss to the Internal Revenue Service of $278,325.
In addition to imposing a term of imprisonment, Judge Roy K. Altman ordered Kopacz to pay $278,325 in restitution to the IRS.
Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida, Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division, and Tyler R. Hatcher, Acting Special Agent in Charge, Internal Revenue Service-Criminal Investigation, Miami Field Office, made the announcement.
U.S. Attorney Fajardo Orshan and Principal Deputy Assistant Attorney General Zuckerman commended the investigative efforts of Internal Revenue Service-Criminal Investigation, Miami Field Division. The case is being prosecuted by Assistant U.S. Attorney Christopher Browne and Trial Attorney Grace Albinson.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov, under case number 20-cr-60096-RKA.
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Robert J. Troester Assumes Role as Acting United States Attorney for the Western District of OklahomaRead the Press Release
OKLAHOMA CITY – On March 1, 2021, Robert J. Troester assumed the role as the Acting United States Attorney for the Western District of Oklahoma, following the departure of U.S. Attorney Timothy J. Downing on February 28, 2021. This is the fourth time Troester has held this position.
As Acting U.S. Attorney, Troester serves as the chief federal law enforcement officer responsible for all federal criminal prosecutions and civil litigation involving the United States in the Western District of Oklahoma, an area covering 40 counties and including 21 Indian tribes.
"It is an honor and privilege to represent the United States and lead the talented team in this office as we pursue justice for the people of Western District of Oklahoma," said Acting U.S. Attorney Troester. "I will strive to further strengthen our partnerships with federal, state, local, and tribal law enforcement agencies to ensure the ethical, vigorous, fair and impartial enforcement of the laws of the United States."
Troester joined the U.S. Attorney’s Office in 1995 as an Assistant U.S. Attorney and held various management positions since 2002, including serving as First Assistant U.S. Attorney, Executive Assistant U.S. Attorney, and Chief of the Civil Division.
Throughout his 25-plus year career in the Department of Justice, Troester has served in various capacities within the Department. In 2020, he was Chair of the Victim Services Working Group for the President’s Commission on Law Enforcement and the Administration of Justice. From 2017 to 2018, he served as Associate Deputy Attorney General and Sr. Counsel to the Deputy Attorney General in Washington D.C.
From 2018 to 2019, while serving as Acting U.S. Attorney, he served as Vice-Chair of the Attorney General’s Advisory Committee (AGAC) Civil Rights Subcommittee and as Vice-Chair of the AGAC Health Care Fraud Working Group. In 2005, he was appointed by the Attorney General as the sole career member to serve a three-year term on the AGAC.
In 2011 and 2012, Troester also served on several short-term special projects with the DOJ Criminal Division’s Overseas Prosecutorial Development Assistance and Training office and the U.S. Embassy in Chisinau, Moldova, to conduct a management and training needs assessment for Supervisory Prosecutors in the Moldova Prosecutor General’s Office, develop a training curriculum, and implement a training program in Moldova.
Troester has served on two details to the Executive Office for U.S. Attorneys (EOUSA) in Washington D.C. From 2001 to 2002 he served as Deputy Director for Legal Programs, and from 1999 to 2000 he served as the national Affirmative Civil Enforcement (ACE) Coordinator.
Prior to joining his federal service at the United States Attorney’s Office, Troester worked in private practice in Oklahoma City, in state government at the Oklahoma Employment Security Commission, and in local law enforcement at the Buffalo County Sheriff’s Office in Nebraska.
Troester received his Juris Doctorate from Oklahoma City University School of Law and his Bachelor of Science degree from the University of Nebraska at Kearney.
Richmond Man Sentenced for Role in Multimillion-Dollar Investment Fraud SchemeRead the Press Release
RICHMOND, Va. – A Richmond man was sentenced today to 97 months in prison for his role in an investment scheme that defrauded investors of $5.7 million.
According to court documents and evidence presented at trial, James Michael Johnson, 69, participated in a worldwide scheme through Chimera Group Ltd., a purported investment company based out of the United Kingdom. Johnson was convicted by a federal jury of conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering on October 30, 2020, after a four-day trial.
“For more than four years, the defendant and his co-conspirators stole over $5 million from victim investors, which included individuals, startup business entities, and a volunteer fire department,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Thanks to the outstanding work of the trial team and our law enforcement partners, the defendant has been held accountable for inflicting significant economic harm on his victims and abusing their trust.”
From July 2014 to March 2019, the fraud operated as an advance-fee scheme in which the defendants acted as promoters who promised to pay the victims a sum of money at a later date, in exchange for an upfront advanced payment. Among other misrepresentations, Johnson and his co-conspirators told potential victims that their principal payments would be protected based on letters of credit and other documents that purported to be from a large financial institution. However, these letters were fabricated. The evidence also showed that Johnson and his co-conspirators used escrow attorneys, who were themselves part of the scheme, in order to give the victims the impression that their money would remain secure until the conspirators’ promises had been kept.
Johnson and his co-conspirators stole approximately $5.7 million from their victims. Co-conspirator James Leonard Smith, 64, of Midlothian, Virginia, is scheduled to be sentenced on May 27, and Stuart Jay Anderson, 54, of Alisa Viejo, California, was sentenced to four years in prison on December 3, 2020. Brian Michael Bridge, 46, of London, England, a fugitive, was also charged in the superseding indictment and is presumed innocent unless and until proven guilty.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Nicholas L. McQuaid, Acting Assistant Attorney General of the Justice Department’s Criminal Division; Delany De Leon-Colón, Inspector in Charge of the U.S. Postal Inspection Service’s Criminal Investigations Group; Christopher R. Derrickson, Acting Special Agent in Charge of the FBI’s Richmond Field Office; and Judith Williams Jagdmann, Chair of the Virginia State Corporation Commission, made the announcement.
Assistant U.S. Attorney Michael C. Moore and Trial Attorneys Christopher Jackson and Vasanth Sridharan of the Justice Department’s Fraud Section prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:19-cr-117.
Repeat Offender Caught Breaking into Cars in Downtown Macon Is Sentenced to Federal Prison for Illegally Possessing A FirearmRead the Press Release
MACON, Ga. – A convicted felon apprehended in possession of a firearm while attempting to break into vehicles in downtown Macon was sentenced to federal prison for his crime, said Peter D. Leary, the Acting U.S. Attorney for the Middle District of Georgia.
Matthew Dixon, 33, of Milledgeville, Georgia, was sentenced to serve 41 months in prison by U.S. District Judge Tilman “Tripp” Self on Tuesday, March 2, to be followed by three years of supervised release. Dixon previously pleaded guilty to one count of possession of a firearm by a convicted felon. There is no parole in the federal system.
“I applaud law enforcement for working 24/7 in an effort to keep Macon safe. Repeat offenders who are arrested in illegal possession of guns should know they face the possibility of their criminal cases being transferred to the federal court system,” said Acting U.S. Attorney Leary. “Thank you to the Bibb County Sheriff’s Office and ATF for their work in this case.”
“This case represents how potentially dangerous a career criminal with a gun can be. Thanks to the good work of the Bibb deputy and the follow up by federal authorities, this felon will be off our streets for a few years,” said Bibb County Sheriff David Davis.
On October 4, 2019, at approximately 1:26 a.m., the Bibb County Sheriff’s Office received a report of a suspicious person trying to break into parked vehicles in downtown Macon. Dixon, matching the complainant’s description and exiting the vehicle described by the complainant, was spotted by the deputy. Dixon fled on foot and the deputy saw Dixon attempt to pull something from his pants with his right hand, which was later found to be a .40 caliber pistol. The deputy repeatedly gave commands for Dixon to stop, but he did not comply and was tased after multiple warnings. Dixon was taken into custody. Dixon was previously convicted of five counts entering an auto in the Superior Court of Baldwin County, Georgia.
The investigation was conducted as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see https://www.justice.gov/archives/projectguardian.
The case was investigated by the Bibb County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Assistant U.S. Attorney Elizabeth Howard prosecuted the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, U.S. Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Officer (Contractor), U.S. Attorney’s Office, at (478) 765-2362.
Red Springs Man Sentenced to 24 Years for Firearms CrimesRead the Press Release
RALEIGH, N.C. – A Red Springs man was sentenced today to 288 months in prison for possessing multiple stolen firearms as a convicted felon.
According to court documents, as well as evidence presented at the sentencing hearing, Martin Elliott Brooks, 39, possessed multiple stolen firearms as a convicted felon. On November 26, 2018, the Myrtle Beach Police Department investigated a burglary where multiple firearms were stolen from a hotel room. The investigation established that Brooks, stole an AK-47 rifle, an AR-22 rifle, two handguns, and hundreds of rounds of ammunition. Brooks later sold two of those firearms unlawfully.
On December 12, 2018, investigators with the United States Marshals Service, Robeson County Sheriff’s Office, and Pembroke Police Department located and arrested Brooks on outstanding warrants. During the arrest, Brooks locked himself in a bedroom and fired multiple shots into the ceiling. Several hours later, he surrendered without further incident. Investigators searched the residence and recovered two of the stolen firearms, and an additional firearm.
This case is part of the Take Back North Carolina Initiative of The United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement. For more information about this initiative click here: https://www.justice.gov/usao-ednc/tbnc.
G. Norman Acker, III, Acting United States Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), United States Marshals Service, Robeson County Sheriff’s Office, Pembroke Police Department, and North Carolina Department of Public Safety Special Operations and Intelligence Unit investigated the case and Assistant U.S. Attorney Chad E. Rhoades prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:19-cr-00084-D.
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Readout of the Department of Justice’s Efforts to Combat Hate Crimes Against Asian American and Pacific Island CommunitiesRead the Press Release
The Department of Justice today held a listening session with more than a dozen Asian American and Pacific Islander (AAPI) community groups as part of its continuing efforts to deter hate crimes and other unlawful acts against the AAPI community.
“No one in America should fear violence because of who they are, what they look like or what part of the world they or their families came from,” said Acting Deputy Attorney General John Carlin, the host of the meeting. “The Department of Justice and our component agencies are committed to bringing all of our tools to bear in supporting AAPI communities as we address the horrific rise in hate and bias incidents occurring across the country.”
Today’s listening session follows a meeting Carlin had earlier this week with key U.S. Attorneys in Districts around the country with significant AAPI populations including:
- Northern District of California (San Francisco, San Jose, Oakland)
- Central District of California (Los Angeles)
- Southern District of Texas (Houston)
- Northern District of Illinois (Chicago)
- Southern District of New York (Manhattan)
Carlin requested feedback from each District’s work on AAPI-related hate crimes and incidents including cases trends, community outreach efforts and data collection. The meeting was also attended by senior leaders of the Department’s Civil Rights Division, Executive Office for the U.S. Attorneys and FBI Headquarters.
Additional Background
- On January 26, 2021, President Biden issued the “Presidential Memorandum Condemning and Combating Racism, Xenophobia, and Intolerance Against Asian Americans and Pacific Islanders in the United States,” which mandates that the “Attorney General shall:
- explore opportunities to support, consistent with applicable law, the efforts of State and local agencies, as well as AAPI communities and community-based organizations, to prevent discrimination, bullying, harassment, and hate crimes against AAPI individuals, and
- expand collection of data and public reporting regarding hate incidents against such individuals.
- Since the signing of that memo the Department has been working to combat discrimination and violence through both direct federal law enforcement action and capacity building, training, support, and outreach to our partners in state and local law enforcement and the AAPI community.
- The Department has investigated complaints of discrimination and violence against the AAPI community on all fronts – ranging from employment or housing discrimination to reported assaults.
- The Department has monitored reports by organizations like the Asian Pacific Policy & Planning Council (A3PCON) and Stop AAPI Hate, as well as media reporting, to identify which might be actionable under federal hate crime statutes.
- DOJ hosted Hate Crime Forums aimed at state and local law enforcement, attorneys, community members, community advocacy organizations, and other groups, to provide education raise awareness about hate crimes investigations, challenges and available resources.
- DOJ’s Community Relations Service is working with community-based groups including youth, faith leaders, cultural leaders, and civil rights organizers from API, Black, and Latino communities to reduce racial tensions and prevent violence.
- DOJ is just getting started. Among other things, DOJ plans to make clear that this issue is among our highest priority, engage in increased outreach, and dedicate resources to combat the threat.
- DOJ is taking a fresh look at ways of reinvigorating the Department’s Hate Crimes Enforcement and Prevention Initiative, to identify how we can best expand data collection and reporting regarding hate incidents against AAPI persons including:
- Launch a new community outreach and engagement program designed to improve identifying, reporting, and preventing hate crimes and build trust with federal, state, local, and tribal law enforcement;
- Translate our hate crimes resources website and complaint portal to the 4 most common AAPI languages, beginning with Chinese (Traditional and Simplified) and conduct outreach to reach those limited English proficient communities;
Work with state victims’ programs to help them address hate crimes; - Establish a new grant program to help states, localities, and tribal law enforcement agencies to conduct educational outreach and training on hate crimes and to investigate and prosecute hate crimes;
- Launch a new Hate Crimes program under the Matthew Shepard/James Byrd Hate Crimes Program to support funds and training and technical assistance to support outreach, education, reporting, investigation and prosecution of hate crimes; and
- Review how we collect and use hate crime data and statistics.