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21 April 2021
Pharmacy Owner Pleads Guilty to $6.5 million Health Care Fraud SchemesRead the Press Release
A New York woman pleaded guilty today to perpetrating schemes to defraud health care programs, including obtaining more than $6.5 million from Medicare Part D Plans and Medicaid drug plans.
According to court documents, Aleah Mohammed, 36, of Queens, was an owner and operator of five pharmacies: Superdrugs Inc., Superdrugs I Inc., Superdrugs II Inc., S&A Superdrugs II Inc. and Village Stardrugs Inc. Between 2018 and 2020, the defendant engaged in schemes that defrauded health care programs, including Medicare and Medicaid, through claims for prescription drugs that were not dispensed, not prescribed as claimed, not medically necessary, or that were purportedly dispensed during a time when the pharmacy was no longer registered with the State of New York. The fraudulent claims included, among others, claims for prescription drugs for the treatment of the human immunodeficiency virus (HIV). Mohammed admitted to using the proceeds of the scheme, among other things, to purchase luxury items such a Porsche and jewelry.
Mohammed pleaded guilty to mail fraud, health care fraud, and conspiracy to commit health care fraud. She is scheduled to be sentenced at a later date and faces a maximum penalty of 40 years in prison. Mohammed is required to pay $6.5 million in restitution to Medicare and Medicaid, and, as part of her plea agreement, agreed to a $5.1 million forfeiture money judgment. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Acting U.S. Attorney Mark J. Lesko of the Eastern District of New York; Assistant Director in Charge William F. Sweeney Jr. of the FBI’s New York Field Office; and Special Agent in Charge Scott J. Lampert of the Health and Human Services Office of Inspector General (HHS-OIG) made the announcement.
The FBI and HHS-OIG are investigating the case.
Trial Attorney Andrew Estes of the Criminal Division’s Fraud Section is prosecuting the case.
Pennsylvania man admits to his role in a drug trafficking operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Lance Smith, of Confluence, Pennsylvania, has admitted to his role in a drug trafficking conspiracy, Acting United States Attorney Randolph J. Bernard announced.
Smith, 47, pled guilty to one count of “Conspiracy to Distribute Heroin and Cocaine Base.” Smith admitted to working with others to distribute heroin and cocaine base, also known as “crack,” from March 2018 to September 2020 in Monongalia County and elsewhere.
Smith faces up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The Drug Enforcement Administration, the Mon Metro Drug & Violent Crimes Task Force, a HIDTA-funded initiative, and the Monongalia County Sheriff’s Office investigated.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
U.S. Magistrate Judge Michael John Aloi presided.
Related press release: https://www.justice.gov/usao-ndwv/pr/seventeen-people-charged-heroin-and-crack-cocaine-distribution-operation
Owner of the Surrogacy Group Sentenced in Maryland to 32 Months in Federal Prison for Defrauding Clients of Fees Paid to Find and Support a Pregnancy SurrogateRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander today sentenced Gregory Ray Blosser, age 39, of Tampa, Florida, to 32 months in federal prison, followed by three years of supervised release, for a wire fraud charge in connection with a scheme to defraud clients of The Surrogacy Group (TSG), which he owned and operated from offices in Annapolis, Maryland and Tampa, Florida. Judge Hollander also ordered that Blosser must forfeit $1,104,706 and pay restitution in the amount of $1,194,519.54. Blosser was arrested on April 29, 2019 in Florida and has been under home confinement since his arrest.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner and Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office.
“Gregory Blosser took advantage of and defrauded 44 individuals who were trying to become parents,” said Acting U.S. Attorney Jonathan F. Lenzner. “Blosser misappropriated funds from escrow accounts that belonged to families and were owed to surrogates carrying babies. This sentence should send a message to heartless criminals like Blosser who choose to line their pockets by taking advantage of people who are simply trying to start a family.”
“Dreams, hopes and bank accounts were wiped clean by Mr. Blosser who preyed on couples who were already in a vulnerable place,” said Jennifer C. Boone, Special Agent in Charge of the FBI Baltimore Field Office. “Today’s sentencing is a reminder that the FBI will use our resources appropriately to root out fraudulent surrogacy schemes that violate the trust of the American public.”
According to Blosser’s plea agreement, TSG was incorporated in Maryland on January 5, 2012 and offered and sold surrogacy-related services throughout the United States and internationally to individuals who desired to have children using a pregnancy surrogate. From at least 2015 until his arrest in 2019, Blosser solicited and accepted funds from TSG clients who desired to have children using a surrogate, representing that these funds would be held in escrow. Blosser told the clients that he would act as their agent disbursing the funds to the surrogate pursuant to contracts between the TSG client and TSG, and the TSG client and the surrogate.
Instead, Blosser admitted that beginning in 2017, he converted a significant portion of the funds he promised to hold in escrow to his own use without the authorization of the TSG client and failed to pay the surrogate as he had agreed to do. Blosser did not, as promised, create separate escrow accounts for these funds and as a result, those funds intermingled with TSG’s operating accounts and were used to pay business expenses, service business loans, and for other purposes not permitted under the escrow agreements. TSG clients were forced to pay the surrogate’s expenses themselves, effectively paying twice for the services Blosser had promised to deliver.
As detailed in his plea agreement, at Blosser’s direction, at least seven victims paid fees to establish an escrow account to be controlled by Blosser, with the funds to be used to find a suitable surrogate, and to support the surrogate during a pregnancy. The victims lived in Maryland, Australia, North Carolina, Germany, and Virginia. In each case, after the victims deposited funds into the escrow account, Blosser either did not locate a suitable surrogate, or did not pay the surrogate the agreed-upon fees.
In total, Blosser fraudulently obtained approximately $1,104,706 from approximately 44 victims.
Blosser is also facing related civil suits filed by the States of Maryland and Florida.
Acting United States Attorney Jonathan F. Lenzner commended the FBI for its work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Leo J. Wise, who prosecuted the case.
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Omaha Man Sentenced to 151 Months for Child PornographyRead the Press Release
Acting United States Attorney Jan Sharp announced that Nicholas Andrew Travis, age 33, of Omaha, Nebraska, was sentenced today in Omaha by United States District Court Judge Brian C. Buescher to 151 months’ imprisonment for Receipt of Child Pornography. There is no parole in the federal system. After his release, Travis will serve a 5-year term of supervised release and be required to register as a sex offender. Travis was also ordered to pay $33,000 in restitution and a $100 special assessment.
On January 24, 2020, special agents and task force officers with Homeland Security executed a search warrant at Travis’s apartment at the Open Door Mission in Omaha. They seized Travis’s cell phone. Travis admitted to the investigators that he had used his cell phone to download child pornography from the Internet while at his apartment in Omaha. As one method to receive child pornography, Travis admitted that he had paid for access to a foreign provider to download child pornography. A forensic examination of Travis’s cell phone revealed 3,127 images and videos depicting children, specifically girls between the ages of 3 to 10, engaging in sexually explicit conduct.
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.
This case was investigated by the Council Bluffs Police Department and Homeland Security Investigations.
Omaha Man Sentenced for Meth Conspiracy and Use of a WeaponRead the Press Release
Acting United States Attorney Jan Sharp announced that Michael Rogers, 27, of Omaha, Nebraska, was sentenced today by United States District Judge Brian C. Buescher for conspiracy to distribute methamphetamine and use of a firearm during a drug trafficking crime. He was sentenced of 180 months’ imprisonment. After his release from prison, he will begin a five-year term of supervised release. There is no parole in the federal system.
On March 31, 2020, Omaha Metro Drug Task Force Officers utilized a Confidential Informant to purchase 25 grams of actual methamphetamine from Rogers. On April 15, 2020, a second informant purchased 23.9 grams of actual methamphetamine from Rogers. The informant observed Rogers with a .38 caliber revolver and a 9mm Taurus handgun.
On April 16, 2020, a search warrant was served on Rogers’s hotel room. Rogers attempted to escape. In his backpack, TFOs found a loaded Ruger LCR .38 caliber revolver, a loaded Taurus PT111 handgun, 58.6 grams of actual methamphetamine and a digital scale. In his hotel room, a Hi-point JHP handgun, drug packaging materials, and more methamphetamine were found.
This case was investigated by the Omaha Police Department. This case was part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Omaha Man Sentenced as an Armed Career CriminalRead the Press Release
Acting United States Attorney Jan Sharp announced that Lionell Bland, 43, of Omaha, Nebraska, was sentenced today by United States District Judge Brian C. Buescher for possession of a firearm by an armed career criminal. He received a sentence of 180 months’ imprisonment with a five-year term of supervised release to follow. The term of incarceration will run consecutive to a sentence he is currently serving as a result of violating state parole. There is no parole in the federal system. An armed career criminal is a felon in possession of a firearm after three prior convictions involving crimes of violence or drug trafficking.
On August 20, 2019, Omaha Police officers received a call to Dailey’s Liquor Store located in northeast Omaha, regarding an armed party. Bland was outside in the parking lot and attempting to hide a loaded FN Hi Power 9mm handgun. Officers found the firearm on top of a t-shirt underneath the vehicle next to where Bland had been standing. Bland ultimately admitted to handling the firearm. At the time of the offense, Bland was on parole. He had four prior convictions for possession of cocaine with intent to distribute, and prior convictions for use of a weapon and terroristic threats.
This case was investigated by the Omaha Police Department. This case was part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Ohio man sentenced for selling cocaineRead the Press Release
WHEELING, WEST VIRGINIA – Quaison Maurice Harris, of Willoughby Hills, Ohio, was sentenced today to 41 months of incarceration for a drug charge, Acting United States Attorney Randolph J. Bernard announced.
Harris, also known as “Action,” age 35, pled guilty to one count of “Distribution of Cocaine Base within 1000 feet of a Protected Location” in November 2020. Harris admitted to selling cocaine near Belle Isle Playground on Wheeling Island in February 2020.
Assistant U.S. Attorneys Shawn M. Adkins and Clayton J. Reid prosecuted the case on behalf of the government. The Ohio Valley Drug and Violent Crimes Task Force, a HIDTA-funded initiative, which includes the Drug Enforcement Administration, West Virginia State Police, Ohio County Sheriff’s Office, and the Wheeling Police Department, investigated. The U.S. Marshal Service, Columbus Police Department Gang Crimes Unit, the Martins Ferry Police Department, and the Bellaire Police Department also assisted.
U.S. District Judge John Preston Bailey presided.
See related case here: https://www.justice.gov/usao-ndwv/pr/26-charged-drug-conspiracy-involving-heroin-fentanyl-crack-cocaine-and-meth-wheeling
New York Fisherman and Fish Dealer Charged with Conspiracy, Fraud, and ObstructionRead the Press Release
Today, a federal grand jury in the Eastern District of New York unsealed the indictment of one fisherman, a wholesale fish dealer, and two of its managers for conspiracy to commit mail and wire fraud and obstruction in connection with a scheme to illegally overharvest fluke and black sea bass. All four defendants are from Montauk.
Christopher Winkler, 61, Bryan Gosman, 48, Asa Gosman, 45, and Bob Gosman Co. Inc. were charged with one count of conspiracy to commit mail and wire fraud as well as to unlawfully frustrate the National Ocean and Atmospheric Administration's (NOAA) efforts at regulating federal fisheries. Winker and the corporate defendant each face substantive fraud charges. In addition, each of the defendants was charged with obstruction.
The indictment alleges that between May 2014 and July 2016, Winkler, as captain of the New Age, went on approximately 70 fishing trips where he caught fluke or black sea bass in excess of applicable quotas. This fish was then sold to a now-defunct company and unindicted co-conspirator in the New Fulton Fish Market in the Bronx. Both Asa Gosman and Bryan Gosman had an ownership interest in the defunct company. After the Bronx company went under, Winkler sold a smaller quantity of his illegal catch directly to Bob Gosman Co. Inc., a Montauk fish dealer in which Asa Gosman and Bryan Gosman had a management role. The overages of fish included at least 74,000 pounds of fluke, and the overall over-quota fish (of all species) were valued at least $250,000 wholesale.
Under federal law, a fishing captain is required to accurately detail his catch on a form known as a Fishing Vessel Trip Report (FVTR), which is mailed to NOAA. Similarly, the first company that buys fish directly from a fishing vessel is termed a fish dealer, and fish dealers are required to specify what they purchase on a federal form known as a dealer report, which is transmitted electronically to NOAA. Pursuant to statutory mandate, NOAA utilizes this information to set policies designed to ensure a sustainable fishery. The indictment alleges that the part of the conspiracy was to falsify both FVTRs and dealer reports in order to cover-up the fact that fish were taken in excess of quotas.
Additionally, Asa Gosman, Bryan Gosman, and Bob Gosman Co. Inc., acting through its agents and employees, were charged with obstructing the investigation into these crimes by corruptly withholding certain documents and records sought by a federal grand jury.
Initiated as part of Operation One-Way Chandelier, the indictment is part of a multi-year, ongoing investigation into fisheries fraud on Long Island. The case is being investigated by NOAA’s Office of Law Enforcement. Trial Attorney Christopher Hale of the Justice Department’s Environment and Natural Resources Division's Environmental Crimes Section is prosecuting the case.
The defendants will be arraigned at a future date.
An indictment is only an accusation, and the defendants are presumed innocent until proven otherwise before a jury at trial.
New Haven Man Admits Illegally Possessing FirearmRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, today announced that DEMETRIUS DREW, 26, of New Haven, pleaded guilty yesterday before U.S. District Judge Jeffrey A. Meyer in New Haven to possession of a firearm by a felon.
According to court documents and statements made in court, New Haven Police arrested Drew on August 18, 2020, after a court-authorized search of his residence revealed a loaded Glock model 26, 9mm pistol and a box containing 50 rounds of .38 Special ammunition.
Drew’s criminal history includes state convictions for felony narcotics and larceny offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Judge Meyer scheduled sentencing for July 13, 2021, at which time Drew faces a maximum term of imprisonment of 10 years.
Drew is released on a $100,000 bond pending sentencing.
This matter is being investigated by the New Haven Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The case is being prosecuted by Assistant U.S. Attorneys Tara E. Levens and Anthony E. Kaplan.
Acting U.S. Attorney Boyle noted that this prosecution is a part of the Justice’s Department’s Project Safe Neighborhoods (PSN) program and Project Longevity. PSN is a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone. Project Longevity is a comprehensive initiative to reduce gun violence in Connecticut’s major cities. Through Project Longevity, community members and law enforcement directly engage with members of groups that are prone to commit violence and deliver a community message against violence, a law enforcement message about the consequences of further violence and an offer of help for those who want it.
Nebraska Fugitive Pleads Guilty to Fraud ChargesRead the Press Release
Ocala, Florida – Howard D. Farley, Jr. (72, Weirsdale) has pleaded guilty to passport fraud, aggravated identity theft, and operating as a pilot without a legitimate airman’s certificate. Farley faces a maximum penalty of 15 years in federal prison. A sentencing date has not yet been scheduled. As part of the agreement, Farley also agreed to forfeit a firearm and ammunition in his home, as well as an aircraft that was seized by the Department of Homeland Security.
According to the plea agreement, Farley admitted to using the identity of a deceased person to obtain a United States passport and an Airman’s Certificate (pilot’s license). Farley admitted to operating as an airman using the fraudulently obtained certificate between January 4, 2016, until his arrest by federal authorities on November 28, 2020.
Other court documents established that Farley used the identity of a deceased infant for over 35 years to avoid apprehension in the District of Nebraska where, in 1985, he had been indicted with a narcotics conspiracy. Those charges were dismissed in 2014.
This case was investigated by the Department of State, Diplomatic Security Service, the Department of Transportation, Office of Inspector General, the Social Security Administration, Office of Inspector General, Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Internal Revenue Service, Criminal Investigations Division, and with support from the Marion County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Michael P. Felicetta.
National Park Service Official Arrested on Theft and Fraud ChargesRead the Press Release
St. Croix, USVI – U.S. Attorney Gretchen C.F. Shappert announced today that Gregory Camacho, 41, of St. Croix, appeared before Magistrate Judge George W. Cannon, Jr., for an Initial Appearance and Arraignment after his arrest by Special Agents of the Inspector General of the U.S. Department of the Interior on the charges of:
Counts 1–15: Conversion of Government Property, 18 U.S.C. § 641; Count 16: Acts Affecting a Personal Financial Interest, 18 U.S.C. § 208; Count 17: Wire Fraud, 18 U.S.C. § 1343; Count 18: False, Fictitious or Fraudulent Claims, 18 U.S.C. § 287; Count 19: Theft of Government Money, 18 U.S.C. § 641; Count 20-26: Wire Fraud, 18 U.S.C. § 1343; Count 27-33: False, Fictitious or Fraudulent Claims, 18 U.S.C. § 287; and
Count 34-36: Theft of Government Money, 18 U.S.C. § 641.According to court documents, Camacho failed to pay the required rent at National Park Service government housing from June 2019 – August 2020, directed a subordinate to change the housing classification to lessen the rent that was required from him in June 2020, submitted a change of duty station voucher that falsely reflected he was relocating various family members to St. Croix in August 2019, and submitted overlapping travel vouchers claiming meals and incidental expenses for two locations simultaneously from October 2018 – November 2019. The total loss amount alleged is over $46,000.00.
The case was investigated by the Office of the Inspector General of the U.S. Department of the Interior and is being prosecuted by Assistant U.S. Attorney Daniel H. Huston.
Camacho faces up to the following maximum penalties if convicted:
- Conversion/Theft of Government Property – a maximum of 10 years, fine up to $250,000 per count
- Acts Affecting a Personal Financial Interest – a maximum of 5 years, fine up to $250,000;
- Wire Fraud– a maximum of 20 years, fine up to $250,000
- False, Fictitious or Fraudulent Claims - a maximum of 5 years, fine up to $250,000.
United States Attorney Gretchen C.F. Shappert reminds the public that an Indictment is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
Morris County Man Admits Role in Health Care Fraud Conspiracy, Conspiring to Obstruct JusticeRead the Press Release
CAMDEN, N.J. – A Morris County man today admitted defrauding New Jersey county health benefits programs and obstructing justice by seeking to provide false information to federal agents and the grand jury investigating the scheme, Acting U.S. Attorney Rachael A. Honig announced.
Rocco Cammalleri, 49, of Budd Lake, New Jersey, pleaded guilty by videoconference before U.S. District Judge Robert B. Kugler to an information charging him with one count of conspiracy to commit health care fraud and one count of conspiracy to obstruct justice.
According to documents filed in this case and statements made in court:
Compounded medications 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, such as if a patient is allergic to a dye or other ingredient.
In 2015, the conspirators learned that certain New Jersey local government employees, including county prison guards, had insurance coverage for these compounded medications. An entity referred to as the “Pharmacy Benefits Administrator” provided pharmacy benefit management services for the Bergen County Prescription Benefits Program (BCPBP), which covered certain local government employees, including county prison guards. The Pharmacy Benefits Administrator paid prescription drug claims and then billed the BCPBP for the amounts paid.
The conspirators learned that certain compounded medication prescriptions – including vitamins and pain, scar, antifungal, migraine, and libido creams – reimbursed thousands of dollars for a one-month supply. From September 2015 through April 2017, the conspirators – a including Cammalleri and an individual referred as Individual 2 – recruited local government employees and others to obtain medically unnecessary compounded medications. Cammalleri, who had no medical or sales background or training, recruited several individuals to receive medically unnecessary compound medications. Cammalleri and Individual 2 directed the recruits to an unnamed doctor – referred to as Individual 1 – to obtain his authorization for the compounded prescription medications. The recruits agreed to receive the very expensive compounded medications not because they needed them, but rather because they were paid to do so. Cammalleri received $175,467 in payments for the prescriptions he arranged and agreed to receive, and caused $2.98 million in fraudulent claims for compounded medications.
In 2017, Individual 2 informed Cammalleri that a federal grand jury was investigating the health care fraud conspiracy. Individual 2 and Cammalleri conspired to obstruct the federal investigation by providing and seeking to provide false information to federal agents and the grand jury.
The health care fraud conspiracy count to which Cammalleri pleaded guilty carries a maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the gain or loss from the offense, whichever is greater. The obstruction of justice conspiracy count carries a maximum penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greater. Sentencing is scheduled for Nov. 18, 2021.
Acting U.S. Attorney Rachael A. Honig credited special agents of IRS - Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez in Newark; special agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; and special agents of the U.S. Department of Labor Office of Inspector General, New York Region, under the direction of Special Agent in Charge Michael C. Mikulka, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Christina O. Hud and R. David Walk Jr. of the U.S. Attorney’s Office in Camden.
Monongalia County woman sentenced for her role in a drug trafficking operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Candice Marie Adams, of Morgantown, West Virginia, was sentenced today to 15 months of incarceration for her role in a drug trafficking conspiracy, Acting United States Attorney Randolph J. Bernard announced.
Adams, 31, pled guilty to one count of “Unlawful Use of Communication Facility” in November 2020. Adams admitted to using a phone to distribute drugs in March 2020 in Monongalia County.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Drug Enforcement Administration, the Mon Metro Drug & Violent Crimes Task Force, a HIDTA-funded initiative, and the Monongalia County Sheriff’s Office investigated.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Senior U.S. District Judge Irene M. Keeley presided.
Related press release: https://www.justice.gov/usao-ndwv/pr/seventeen-people-charged-heroin-and-crack-cocaine-distribution-operation
Middlesex Man Admits Paycheck Protection Program Fraud Scheme and Obtaining Funds from a Deposited Stolen and Altered U.S. Treasury CheckRead the Press Release
TRENTON, N.J. – A Middlesex County, New Jersey, man today admitted fraudulently receiving Payment Protection Program (PPP) funds and depositing a stolen and altered U.S. Treasury check, Acting U.S. Attorney Rachael A. Honig announced today.
Bernard Lopez, 40, pleaded guilty by videoconference before U.S. District Judge Peter G. Sheridan to an information charging him with one count each of bank fraud and theft of government funds.
According to the documents filed in this case and statements made in court:
Lopez devised a scheme to commit bank fraud through which a stolen and altered U.S. Treasury check was deposited into a corporate bank account Lopez created in the name of Pezlo Management LLC. The check was altered to be made payable to Pezlo in the amount of $211,886 and was then deposited into Pezlo’s corporate bank account. Lopez later withdrew or transferred the stolen proceeds from Pezlo’s bank account before the bank could detect the fraud.
On June 24, 2020, Lopez caused to be submitted a fraudulent PPP loan application to a lender on behalf of Company-1, a purported business that Lopez controlled. The Small Business Administration oversees the PPP, which is designed to provide forgivable loans to small businesses affected by the coronavirus pandemic. Applicants for PPP loans apply directly to banks or financial institutions participating in the program; in those applications, applicants make affirmative certifications about their average monthly payroll expenses and number of employees. Applicants also certify their intent to spend PPP proceeds on permissible business expenses, such as payroll costs, rent, utilities, and interest on mortgages. PPP loans may be entirely forgiven if the recipient spends the loan proceeds on these permissible expenses within a designated period after receiving the proceeds.
Lopez’s PPP application falsely represented that Company-1 employed 25 employees, had a monthly payroll expense of approximately $192,000, and had mortgage/lease and utilities expenses. Company-1 did not, in fact, employ any employees, nor did it incur payroll or utility expenses. Based on Lopez’s misrepresentations, the lender approved Lopez’s PPP loan application and provided Lopez’s purported business with $481,502 in federal COVID-19 emergency relief funds meant for distressed small businesses. Lopez then converted a portion of the proceeds for his own use.
The count of bank fraud is punishable by a maximum penalty of 30 years in prison and a $1 million fine, or twice the gross gain to the defendant or gross loss to the victim, whichever is greater. The count of theft of government funds is punishable by a maximum of 10 years in prison and a fine of up to $250,000, or twice the gross gain or loss from the offense, whichever is greater. Sentencing is scheduled for Oct. 6, 2021.
Acting U.S. Attorney Honig credited special agents and task force officers of the U.S. Department of the Treasury-OIG, under the direction of Assistant Inspector General for Investigations Sally D. Luttrell, with the investigation leading to the charges. She also thanked special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina in Newark, and special agents of the Federal Deposit Insurance Corporation Office of Inspector General, under the direction of Special Agent in Charge Patricia Tarasca for assistance.
The government is represented by Assistant U.S. Attorney Perry Farhat of the Government Fraud Unit of the U.S. Attorney’s Office’s Criminal Division in Newark.
Mexican National Sentenced to 8 Years in Federal Prison for Conspiracy to Distribute over 50 Grams of Actual MethamphetamineRead the Press Release
Jackson, TN – Saul Vega Flores, 51, has been sentenced to 100 months in federal prison for conspiracy to distribute and possess with the intent to distribute over 50 grams of actual methamphetamine. Acting U.S. Attorney, Joseph C. Murphy Jr., announced the sentence today.
According to information presented in court, in March 2017, DEA agents in the Nashville, TN office began an investigation into Rolando Lopez and his drug trafficking organization. Agents discovered Lopez and other co-conspirators were trafficking methamphetamine, heroin, marijuana, and other illegal substances from Texas to Tennessee. Investigators utilized several Title III wiretaps along with physical surveillance, confidential sources, traffic stops, and search warrants to investigate this organization, which was responsible for trafficking hundreds of pounds of actual methamphetamine/ICE. Saul Flores was found to have taken part in this conspiracy.
In early November 2017, investigators discovered through wiretap interceptions of Lopez's phone calls that he and Flores were meeting with individuals involved in the drug trafficking organization to pass out telephones. On November 13, 2017, Lopez and Flores met with Kenneth Garrett who transported Flores to Ronald Parham’s residence in Martin, Tennessee where Flores cooked methamphetamine/ICE.
On December 1, 2017, DEA agents developed information that Lopez was arranging a shipment of a significant amount of methamphetamine from Mexico to Tennessee. The shipment was to be picked up in Mexico by Virginia Torres and delivered to Parham's residence in Martin. This address was being used to convert liquid and powder methamphetamine into crystal methamphetamine.
On December 3, 2017, DEA agents set up surveillance at Parham’s residence. Investigators also followed Garrett and Flores from Nashville to Martin and Union City, TN. Through wiretap interceptions of phone calls between Lopez, Garrett, Flores, and Torres, investigators tracked Torres from Mexico to a Days Inn in West Memphis, Arkansas. Investigators observed Garrett and Flores meet with Torres who was driving a 2004 Lincoln Navigator. All three suspects left the Days Inn and headed toward Martin, Tennessee along Highway 51. DEA agents and members of the Tennessee Highway Patrol conducted a traffic stop on the vehicles on Highway 51 in Obion County.
On December 5, 2017, investigators searched the Lincoln Navigator and discovered a large quantity of methamphetamine/ICE in a hidden lead compartment in the tires and wrapped around the wheels. A DEA forensic laboratory examination revealed that Torres was carrying 44.85 kilograms of 98% pure ICE. Investigators confirmed that Parham's garage was being used to store and convert methamphetamine, and that either Flores or Parham would convert the powder or liquid methamphetamine to crystal methamphetamine.
Investigators also learned from cooperating witnesses that Flores is an "expert" at converting methamphetamine and that Lopez arranged for him to be transported from Mexico to Tennessee to convert methamphetamine into crystal form for distribution.
The Drug Enforcement Administration and the Tennessee Highway Patrol investigated this case.
On April 2, 2021, Chief U.S. District Judge S. Thomas Anderson sentenced Flores to 100 months in federal prison to be followed by three years supervised release. The co-defendants in this case received the following sentences: Kenneth Garnett was sentenced to 200 months; Ronald Parham was sentenced 120 months; Virginia Torres was sentenced to 60 months and Ronald Lopez was sentenced to life imprisonment. There is no parole in the federal system.
Assistant U.S. Attorneys Josh Morrow and Jerry Kitchen prosecuted this case on behalf of the government.
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Mathematics Professor and University Researcher Indicted for Grant FraudRead the Press Release
Note: A full copy of the indictment can be viewed
here.WASHINGTON – Today, a federal grand jury in Carbondale, Ill. returned an indictment charging a mathematics professor and researcher at Southern Illinois University – Carbondale (SIUC) with two counts of wire fraud and one count of making a false statement.
According to court documents, Mingqing Xiao, 59, of Makanda, Illinois, fraudulently obtained $151,099 in federal grant money from the National Science Foundation (NSF) by concealing support he was receiving from the Chinese government and a Chinese university.
“Again, an American professor stands accused of enabling the Chinese government’s efforts to corruptly benefit from U.S. research funding by lying about his obligations to, and support from, an arm of the Chinese government and a Chinese public university,” said Assistant Attorney General John C. Demers for the Justice Department’s National Security Division (NSD). “Honesty and transparency about funding sources lie at the heart of the scientific research enterprise. They enable U.S. agencies to distribute scarce grants for scientific research fairly and equitably. And they allow other researchers to evaluate potential conflicts of interest and conflicts of commitment. When researchers fall short of fulfilling these core academic values in ways that violate the law, the Department stand ready to investigate and prosecute.”
“Fraudulently obtaining U.S. taxpayer funding is a slap in the face to the vast majority of university researchers who do the right thing and abide by the rules,” said Alan E. Kohler, Jr., Assistant Director of the FBI’s Counterintelligence Division. “To those individuals who choose to conceal affiliations with foreign universities or foreign governments while applying for U.S. taxpayer-funded grants, the message should be clear: the FBI and its partners are aggressively investigating allegations of grant fraud.”
“The FBI takes seriously its commitment to work with our partners in academia to protect U.S. research funded grants,” said Special Agent in Charge Sean M. Cox of the FBI’s Springfield Field Office. “This investigation, like so many others, should serve as a reminder that failure to be truthful and transparent on an application for U.S. funded grants is a violation of the law. In this case the applicant allegedly failed to disclose his affiliation with China. Individuals who fail to disclose their affiliation with any foreign nation will be held accountable.”
“The charges in this case are very serious,” said U.S. Attorney Steven D. Weinhoeft for the Southern District of Illinois. “University grant fraud allows China to co-opt U.S. research and development at a fraction of the cost. Prosecutions like this one play an important role, not just in protecting American investments in academic research from foreign exploitation, but also in combating the growing threat that China poses to our national security. We will continue to work with our partners at NSD and the FBI on these important cases.”
According to the indictment, Xiao has worked in SIUC’s mathematics department since 2000, focusing his research on partial differential equations, control theory, optimization theory, dynamical systems, and computational science. In that position, Xiao allegedly applied for and received NSF grant funds for a project set to run from 2019 to 2022 without informing NSF about another, overlapping grant he had already received from the Natural Science Foundation of Guangdong Province, China. Xiao also allegedly failed to inform NSF that he was on the payroll of Shenzhen University, a public university in Guangdong Province, and that he had already committed to teaching and conducting research at Shenzhen University from 2018 to 2023.
The indictment further alleges that in March 2019, while his NSF grant proposal was still pending, Xiao submitted another grant proposal to the Natural Science Foundation of China. According to the indictment, Xiao allegedly applied for the funds as an employee of Shenzhen University and did not disclose the new Chinese proposal to NSF. Xiao is charged with falsely certifying to SIUC that his NSF grant proposal was true, complete, and accurate.
Before awarding the grant, NSF questioned Xiao about any current or pending funding from “worldwide sources,” including specifically whether he held any position outside of the United States or had obtained funding from non-U.S. funding sources. The indictment accuses Xiao of falsely reporting to NSF that he had nothing else to disclose.
If convicted, Xiao faces up to 20 years in prison on each count of wire fraud and up to five years in prison for making a false statement. All three charges are also punishable by a fine of up to $250,000. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The investigation was conducted by the FBI, the IRS, and the Department of Homeland Security. Assistant U.S. Attorney Peter T. Reed is prosecuting the case, with assistance from NSD’s Counterintelligence & Export Section.
The prosecution is part of the Justice Department’s ongoing China Initiative. Led by the Department’s National Security Division, the China Initiative is a broad, multi-faceted effort to counter Chinese national security threats and safeguard American intellectual property.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Maple Heights man sentenced to 39 months for elder fraud schemeRead the Press Release
Acting U.S. Attorney Bridget M. Brennan announced that Andrew V. Thomas, 35, of Maple Heights, Ohio, was sentenced on Tuesday, March 20, to 39 months imprisonment by U.S. Judge Donald C. Nugent. Thomas pleaded guilty in December of 2020 to wire fraud and aggravated identify theft. Thomas devised a scheme to defraud three elderly victims out of more than $62,000.
“Mr. Thomas targeted multiple elderly victims, including one suffering from dementia, and stole their hard-earned life savings,” said Acting U.S. Attorney Bridget M. Brennan. “Working with our partners to raise awareness about such schemes, protecting aging and vulnerable populations, and prosecuting those who seek to exploit others for personal gain is an important part of the work we do every day at the Department of Justice.”
“This individual took advantage of his position to financially victimize elderly customers,” said FBI Special Agent in Charge Eric B. Smith. “It is imperative that we as a community educate and look out for our elderly who are often targets of financial scams. Mr. Thomas will now be held accountable for the fraud and deception he perpetrated against the more trusting and vulnerable among us. The FBI will continue collaborative efforts to inform and educate older communities and their caregivers and aggressively investigate allegations like this wherever and whenever appropriate.”
According to court documents, from November 2018 to November 2019, Thomas was employed as a Call Center Representative for an insurance company with an office in Cleveland, Ohio, tasked with speaking to clients and their agents regarding annuities, updating client bank account information and processing withdrawal transactions.
During this time, Thomas devised a scam to defraud three elderly victims by transferring money from his victim’s annuities into his personal bank accounts. Court documents state that Victim 1 was an 84-year-old woman in Avon, Connecticut; Victim 2, an 83-year woman with dementia in Philadelphia, Pennsylvania; and Victim 3, a 96-year-old woman and a resident of Metairie, Louisiana, were all victims of the scheme to defraud.
Victim 1, Victim 2’s power of attorney and Victim 3 all called Thomas to inquire about a policy-related matter. Thomas spoke to all of the victims or their agents and had access to their accounts.
Thomas would then use the company’s computer system to make unauthorized transfers from the annuities of Victim 1, Victim 2 and Victim 3 into his personal bank accounts. As a result of the unauthorized transfers, Victim 1, Victim 2 and Victim 3 suffered a total loss of approximately $62,600.
The investigation was conducted by the Federal Bureau of Investigation, Cleveland Division and was prosecuted by Assistant U.S. Attorney Brian McDonough.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps.
Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals on a case-by-case basis.
Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses.
The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m. eastern time. English, Spanish and other languages are available.
Manchester Man Sentenced to 180 Months for Child Pornography CrimesRead the Press Release
CONCORD - Robert Severance, 61, of Manchester, was sentenced to 180 months in federal prison for distributing and possessing child pornography, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, on July 15, 2019, the Manchester Police Department (“MPD”) received a tip previously submitted to the National Center for Missing and Exploited Children by the social media website Instagram. The tip reported that on June 6, 2019, a file uploaded to Instagram was identified as a Child Sexual Abuse Image. MPD investigators later determined that the Instagram account was associated with Severance, who was a registered sex offender in Manchester, New Hampshire.
MPD investigators spoke with Severance at his residence in Manchester on July 22, 2019. He voluntarily went to the MPD and consented to an interview. Severance admitted to creating the Instagram account and explained that he portrayed himself as a 15-year-old female in order to talk with other young females. He stated that he had a laptop at home and admitted to receiving thousands of pictures and/or videos of child pornography via email.
A search warrant executed at Severance’s home the following day resulted in the seizure of numerous electronic devices and other media items. Forensic review of all items seized from the defendant revealed thousands of images and over one hundred videos of child pornography.
Severance previously pleaded guilty on November 23, 2020. In addition to the prison sentence, Severance must spend 10 years on supervised release and pay a total of $9,000 in restitution to three victims.
“Child pornography crimes exploit innocent youngsters and cause immeasurable damage to their lives,” said Acting U.S. Attorney Farley. “This sentence reflects the seriousness of the defendant’s conduct and demonstrates the commitment of the law enforcement community to protecting children in the Granite State. As Mr. Severance has learned, those who engage in child pornography offenses in New Hampshire will face substantial consequences for their illegal conduct.”
"The dedicated men and women associated with the NH ICAC Task Force will continue to be vigilant and partner with hard working agencies like the Manchester Police Department, Homeland Security Investigations, and the Department of Justice in an effort to hold individuals accountable and keep our children safe,” said Lt. Eric Kinsman, Commander, NH ICAC Task Force. “For more information and tips about internet safety, please go to http://www.nhicac.org."
This matter was investigated by Homeland Security Investigations, the NH Internet Crimes Against Children Task Force, and the Manchester Police Department. The case was prosecuted by Assistant U.S. Attorney Kasey Weiland.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Manager of Hospice and Home Health Companies Sentenced to Prison for Role in $150 Million Health Care Fraud SchemeRead the Press Release
A Texas man was sentenced today to 27 months in prison for his role in a conspiracy at the Merida Group, a chain of hospice and home health agencies throughout Texas, to falsely convince thousands of patients with long-term incurable diseases they had less than six months to live in order to enroll the patients in hospice programs for which they were otherwise unqualified, thereby increasing revenue to the company.
According to court documents, Jose Garza, 44, of Harlingen, was the operations manager for the Merida Group and responsible for carrying out the business’s day to day operations, including overseeing the recruitment of patients at certain locations throughout the Rio Grande Valley. Garza, and others working at his direction, recruited patients at hospitals and other medical practices by touting that the Merida Group offered “hospice that you don’t have to die to use,” pursuant to the Merida Group’s corporate marketing strategy.
At the trial of co-defendants Rodney Mesquias and Henry McInnis, witnesses testified that from 2009 to 2018, the vast majority of hospice and home health patients at the Merida Group did not qualify for services. Rather, physicians were bribed with illegal kickbacks, under the pretense of medical directorships, to falsely certify unqualified patients for services. Employees were instructed to falsify medical records, making non-terminal patients appear to be terminally ill and declining. Garza admitted to participating in the scheme, facilitating kickback payments to physicians, and directing employees to falsify medical records.
Garza pleaded guilty to one count of conspiracy to commit health care fraud on Sept. 9, 2019. Garza was charged along with three others who were convicted by a federal jury in Brownsville, Texas, in one of the largest criminal hospice fraud cases tried to a jury. Mesquias, 50, the owner of the Merida Group, was sentenced to 20 years in prison in December 2020. McInnis, 50, the CEO of the Merida Group, was sentenced to 15 years in prison in February 2020.
In addition to the prison sentence, Garza was ordered to pay $4,700,000 in restitution.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Acting U.S. Attorney Jennifer Lowery of the Southern District of Texas; said Special Agent in Charge Christopher Combs of the FBI’s San Antonio Field Office made the announcement.
The Department of Health and Human Service – Office of Inspector General (HHS-OIG); FBI and Texas Health and Human Services Commission conducted the investigation.
Assistant Chief Jacob Foster and Trial Attorney Kevin Lowell of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Andrew Swartz of the Southern District of Texas are prosecuting the case.
The Fraud Section leads the Health Care Fraud Strike Force. Since its inception in March 2007, the Health Care Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Man Sentenced to 110 Months for Distributing Methamphetamine in Sauk CountyRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, Acting United States Attorney for the Western District of Wisconsin, announced that Timothy Savannah, 29, Waupun, Wisconsin, was sentenced today by Chief U.S. District Judge James D. Peterson to 110 months in federal prison for distributing methamphetamine. Savannah pleaded guilty to this charge on February 2, 2021.
In September 2020, an undercover police officer purchased methamphetamine from Savannah on two separate occasions in Lake Delton, Wisconsin. The two distributions totaled 76 grams of methamphetamine. On September 18, 2020, police officers executed a search warrant at the apartment in Lake Delton where he was staying. During the search, officers recovered a loaded Smith & Wesson 9mm handgun, a variety of drugs including heroin and crack cocaine, and over $7,000 in cash.
In imposing the sentence, Judge Peterson noted that Savannah has an “unrelenting pattern of criminal offenses” including multiple violent felony convictions. Judge Peterson also stated that a substantial sentence was warranted in light of Savannah’s deep involvement in drug trafficking and his possession of a loaded firearm.
The charge against Savannah was a result of an investigation conducted by the Sauk County Sheriff’s Office, Wisconsin Department of Justice Division of Criminal Investigation, Drug Enforcement Administration, and Sauk County District Attorney’s Office. The prosecution of the case has been handled by Assistant U.S. Attorney Aaron Wegner.
Lewis County man guilty of firearms chargeRead the Press Release
ELKINS, WEST VIRGINIA – Samuel Lee Donaldson, Jr., of Weston, West Virginia, was found guilty today of a firearms charge, Acting United States Attorney Randolph J. Bernard announced.
After a two-day trial, a jury found Donaldson, 37, guilty of one count of “Unlawful Possession of a Firearm.” According to court documents and evidence presented at trial, Donaldson is a person prohibited from having a firearm because of prior convictions of domestic battery and third offense DUI. On October 5, 2019, a Lewis County Sheriff’s Deputy and a Weston Police Department K-9 unit responded to a 911 call about a felon with a firearm. When the officers made eye contact with Donaldson, he immediately fled on foot. Just before the officers apprehended him, Donaldson threw a 9mm semi-automatic firearm, which was quickly recovered.
Donaldson is facing up to 10 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorneys Christopher L. Bauer and Andrew R. Cogar are prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms & Explosives, the Lewis County Sheriff’s Office, and the Weston Police Department investigated.
U.S. District Judge Thomas S. Kleeh presided.
Lee’s Summit Man Sentenced to 25 Years for Conspiracy to Distribute More Than 2,000 Kilos of CocaineRead the Press Release
KANSAS CITY, Mo. – A Lee’s Summit, Missouri, man has been sentenced in federal court for his leadership role in a multi-million dollar conspiracy that distributed more than 2,000 kilograms of cocaine in the metropolitan area.
“This heavily-armed drug dealer was still on court supervised release for a prior federal drug-trafficking conviction while he was engaged in this drug trafficking conspiracy,” said Acting U.S. Attorney Teresa A. Moore. “A long prison sentence will help protect our community from the violence that always accompanies guns and drugs, and send a clear signal to drug traffickers that their criminal activity won’t be tolerated.”
Howard Christopher Walters, also known as “Chris,” 43, was sentenced by U.S. Chief District Judge Beth Phillips on Tuesday, April 20, to 25 years in federal prison without parole. The court also ordered Walters to forfeit $976,862 to the government, which represents the profit he made from the sale of illegal drugs.
“Today’s sentencing further shows that IRS Criminal Investigation along with its law enforcement partners are working vigorously to stop individuals conspiring to distribute cocaine and commit money laundering offenses. IRS CI will go after those who commit crimes that involve a financial nexus,” said David Talcott, Acting Special Agent in Charge of the IRS Criminal Investigation division in the St. Louis Field Office.
On Aug. 6, 2020, Walters pleaded guilty to participating in a drug-trafficking conspiracy and a money-laundering conspiracy from October 2013 to Nov. 15, 2018. His wife, Nina Walters, 39, was sentenced on April 7, 2021, to a year and a day for her role in the money-laundering conspiracy.
Law enforcement believes that Howard Walters directly distributed approximately 25 kilograms of cocaine during his involvement in the conspiracy. He also sold more than 1,421 kilograms of marijuana. In total, he profited at least $976,862 from the sale of illegal drugs.
“This defendant profited off an industry that makes its money off endangering the safety of our citizens,” said Special Agent in Charge Todd Zimmerman of the Drug Enforcement Administration in Missouri. “Working closely with our federal, state and local partners, we’re committed to dismantling and destroying these drug trafficking organizations that bring their drugs into our communities, and then use those proceeds to fund temporary lavish lifestyles.”
“Walters and his co-conspirators flooded the Kansas City area with more than 2,000 kilograms of cocaine and profited from a multi-million dollar conspiracy in the process. This investigation, prosecution and sentencing demonstrates that the FBI and our law enforcement partners are committed to removing drug traffickers from the streets and protecting our community,” said Timothy Langan, Special Agent in Charge of the FBI Kansas City Division.
During the course of the investigation, law enforcement used a confidential source to purchase cocaine directly from Howard Walters on several occasions. During one transaction, the confidential source reported that he saw approximately 15 empty cocaine kilogram wrappers at the residence used by Howard Walters. The source also reported that he observed several kilograms of cocaine in the kitchen cabinets. During the controlled purchase, Walters commented that his source of supply, co-defendant Jesus Campoy-Estrada, 26, of Kansas City, Kansas, received 50 to 60 kilograms of cocaine per delivery. Walters said he purchased 10 to 20 kilograms of cocaine from Campoy-Estrada after each delivery.
On Nov. 19, 2018, federal agents executed a search warrant at the Walters’s residence. Although Howard Walters is prohibited from possessing any firearms, agents seized from his residence a FNH 5.7 x 28mm handgun on the top shelf in the master bathroom closet; a FNH 5.7 x 28mm handgun in a cabinet above a built-in desk in the kitchen; a Taurus Millennium G2 PT111 9mm handgun located under the sink in the master bathroom; a Glock 10mm handgun located under the sink in the master bathroom; a PTR91 .308-caliber rifle on the floor of the master bathroom closet; a Spikes Tactical Model ST-15 multi-caliber rifle; approximately 638 live rounds of 5.7 x 28mm ammunition; 89 rounds of 5.56 x 45mm ammunition; and other assorted ammunition.
Howard Walters also admitted that he used illicit drug proceeds to purchase several vehicles with cash in an effort to conceal the illicit nature of the purchases, including a Cadillac Escalade, a Porsche Panamera, and a Mercedes Benz GLS550 SUV. Nina Walters deposited more cash in her bank accounts than both she and her husband reported to the IRS as their income during those years. Nina Walters knew the cash deposits she made were derived from the illicit activity of Howard Walters.
Campoy-Estrada pleaded guilty to his role in the drug-trafficking conspiracy on Dec. 19, 2019, and awaits sentencing.
Co-defendant Jose Luis Armendariz-Rascon, also known as “Uncle” or “Rambo,” 40, of Kansas City, Kan., pleaded guilty on Jan. 22, 2020, to his role in the drug-trafficking conspiracy and to money laundering. Armendariz-Rascon was in charge of coordinating the transportation of loads of cocaine from the El Paso area to the Kansas City metropolitan area for distribution. Armendariz-Rascon would then coordinate the collection of bulk cash that was sent back to El Paso as payment for the cocaine. Armendariz-Rascon admitted that he coordinated the distribution of 10 to 15 kilograms of cocaine per week for four years, for a total of more than 2,000 kilograms of cocaine.
Co-defendant Otilio Zaragoza-Navarrette, 64, of El Paso, Texas, pleaded guilty to his role in the drug-trafficking conspiracy and was sentenced on Aug. 28, 2020, to five years in federal prison without parole. Zaragoza-Navarrette admitted that he was a drug courier for the drug-trafficking organization, transporting cocaine to the Kansas City metropolitan area and transporting illicit drug proceeds from the drug-trafficking organization back to Texas and/or to Mexico. Zaragoza-Navarrette hid the cocaine and/or the cash proceeds inside of five-gallon gas cans and anti-freeze jugs on his commercial semi-tractor trailer. Officers seized nearly $500,000 in illegal drug proceeds from Zaragoza-Navarrette at the time of his arrest.
This case is being prosecuted by Assistant U.S. Attorneys Trey Alford and Robert Smith. It was investigated by the Drug Enforcement Administration, the FBI, IRS-Criminal Investigation and the Lee’s Summit, Mo., Police Department.
Leesburg Men Indicted on Methamphetamine ChargesRead the Press Release
Ocala, Florida – Acting United States Attorney Karin Hoppmann announces the return of an indictment charging Kenneth Wayne Pea, Jr. (39) and Travis Ramone Williams (37), both of Leesburg, with possession of 500 grams or more of methamphetamine with intent to distribute. Pea is also charged with distribution of 50 grams or more of methamphetamine. If convicted, Pea and Williams face a mandatory minimum penalty of 10 years, and up to life, in federal prison.
According to the indictment and other court documents, Pea sold approximately 2 ounces of methamphetamine to a confidential informant on March 31, 2021, at a business in Belleview, Florida. Thereafter, on April 14, 2021, officers attempted to stop a vehicle driven by Williams. After a high-speed chase, Williams and Pea fled from the car on foot and discarded three bags containing 2 pounds of methamphetamine along with scales, baggies, and several bags of cocaine and heroin.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
The case is part of the Middle District of Florida’s anti-opioid strategy to combat opioid trafficking and abuse. It was investigated by the Drug Enforcement Administration and the Marion County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Michael P. Felicetta.
Leader of International Cocaine Trafficking Organization IndictedRead the Press Release
A federal grand jury returned an indictment today charging former Michigan resident Ylli Didani, 43, with conspiracy to distribute cocaine, announced Acting United States Attorney Saima S. Mohsin.
Mohsin was joined in the announcement by Special Agent in Charge Keith Martin, Drug Enforcement Administration, Detroit Division, Christopher Perry, Director of Fields Operation, US Customs and Border Protection, Acting Special Agent in Charge Kelly Lewis, Internal Revenue Service-Criminal Investigations and Chief Jeff King, Farmington Hills Police Department.
Acting US Attorney Mohsin stated, “This is a very significant and important prosecution of a large scale, well-organized drug trafficking organization involved in the distribution of thousands of kilograms of cocaine worth tens of millions of dollars, across multiple continents. I salute the entire law enforcement team who labored so tirelessly on this case, from prosecutors to police officers, federal agencies to local police departments. Their efforts culminated in today’s indictment and demonstrate cooperation and teamwork at its best.”
Special Agent Martin stated, “This indictment of a major cocaine trafficker is the result of a joint investigation with law enforcement partners from around the globe. Our combined efforts should send a clear message to drug traffickers everywhere that you will be held accountable for your crimes.”
Director Perry stated, “The complexity of this case, which involved so many law enforcement partners throughout the region is a testament to the importance of cooperation among agencies. I’m proud of efforts of our CBP personnel, along with our federal, state, and local partners who played an important role in reaching this indictment.”
“Today’s indictment is a result of the hard work and dedication of our local and federal law enforcement partners. IRS-CI will continue to provide our financial expertise to disrupt and dismantle international drug trafficking organizations,” said Internal Revenue Service – Criminal Investigation, Detroit Field Office, Acting Special Agent in Charge, Kelly Lewis.
Chief King stated, “This is an excellent example of the inter-agency cooperation and capabilities of our investigative taskforce. The Farmington Hills Police Department is extremely proud of our investigator and his tireless commitment toward disrupting and indicting a large scale-international drug trafficking organization.”
As alleged in the indictment, Didani and other unindicted co-conspirators planned and financed the distribution of cocaine from several locations including the Eastern District of Michigan. According to the Indictment, in two transactions that occurred in June 2016 and December 2017, Didani received at least $550,000 from other co-conspirators for the purpose of purchasing bulk cocaine. Allegedly, Didani and other co-conspirators used several means of transportation, including private aircraft and commercial containerships, for purposes of obtaining and distributing the cocaine throughout Europe.
According to a criminal complaint that was unsealed on April 1, 2021, following Didani’s arrest on March 31, 2021 in Charlotte North Carolina, it is alleged that Didani was the leader of an international drug trafficking organization with ties to the United States, Mexico, South America, and Europe. The complaint also alleges that in 2017, a co-conspirator in Didani’s organization was overseeing the design of an underwater drone that would be utilized to transport large quantities of cocaine to Europe. The drone, which was going to be equipped with an underwater modem and GPS antenna, would transport the cocaine while attached to the bottom of a commercial containership. The drone would then be remotely released from the containership off the shore of Europe. The drone and cocaine would then be picked up by a fishing boat controlled by Didani’s organization.
The criminal complaint further alleges that Didani arranged the distribution of several shipments of cocaine from South America to Europe, where the cocaine was seized by law enforcement. In 2019 and 2020, Law enforcement seized over 3400 kilograms of cocaine from Didani’s organization. The seized cocaine has a street value of over $100,000,000.00.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
The case was investigated by the DEA (High Intensity Drug Trafficking Area (HIDTA) Group 6 consisting of both DEA Special Agents and Task Force Officers from Farmington Hills PD, Sterling Heights PD, Troy PD, Novi PD, Dearborn Heights PD, and Northfield Township PD. IRS-CI, and US Customs and Border Protection. The case is being prosecuted by Assistant United States Attorneys Mark Bilkovic, Timothy McDonald and Michael El-Zein.
Kokomo Man Sentenced to 35 Years in Prison for Sextortion SchemeRead the Press Release
FORT WAYNE--Bradley M. Cox, 30, of Kokomo, Indiana, was sentenced by United States District Court Judge Holly A. Brady on April 21, 2021 after his December 2020 conviction on all counts of a six-count Superseding Indictment charging him with extortion, production and attempted production of child pornography, and receipt of child pornography, announced Acting United States Attorney Bell.
Cox was sentenced to 420 months in prison followed by 20 years of supervised release. Cox was ordered to pay restitution to one of his victims in the total amount of $3,000.00.
According to evidence presented at trial, Cox obtained nude photographs of a woman while pretending to be a modeling recruiter. Cox used a social media account in the woman’s name to communicate with a Rochester, Indiana, man. Cox exchanged the photos of the woman with the Rochester man. Eventually, Cox threatened publicly to release the nude pictures of the Rochester man unless the man gave Cox the login to his social media account. Cox was given access to the Rochester man’s account. Once inside the account, Cox found thousands of nude pictures of women and girls. Cox hacked into another social media account, this time of a high school boy. Cox then sent multiple females the nude pictures of themselves he had found in the Rochester man’s social media account and threatened to publicize their nude photos online unless they sent more sexually explicit pictures and videos. At least two of these were high school girls at the time.
When victims refused Cox’s demands, Cox posted their nude pictures to a pornographic website. Using the hacked social media account, Cox demanded sexually explicit pictures and videos from a pregnant 15-year-old girl, bragging to others online that he had this girl “on the payroll,” which was a reference to her sending him pictures and videos. Cox divulged his scheme to at least one other woman whom he met online and eventually met in person. Other evidence in the case showed that Cox also attempted to recruit others, including at least one high school student, to help him with his scheme.
According to the evidence presented at trial, the FBI’s forensic analysis of Cox’s work computer, the social media accounts, and Cox’s cellular telephone identified Cox as the person using the relevant social media accounts, despite Cox’s use of sophisticated concealment efforts. Cox also admitted much of this conduct during later interviews with the FBI.
“Mr. Cox thought he could hide behind the anonymity of the internet to terrorize his young victims, causing them untold mental anguish, but this sentence is a clear message that those who engage in sextortion will be held accountable for their heinous actions,” said FBI Indianapolis Special Agent in Charge Paul Keenan. “The FBI and our partners are dedicated to rooting out these perpetrators and ensuring they can never impose such terror on their victims and their families ever again.”
This case was investigated by the Federal Bureau of Investigation with assistance from the Fulton County Sheriff’s Department, the Rochester, Indiana Police Department, and the Peru Indiana Police Department. This case was prosecuted by Assistant United States Attorneys Lesley J. Miller Lowery and Sarah E. Nokes.
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Kanawha County Man Pleads Guilty to Federal Drug and Gun ChargesRead the Press Release
CHARLESTON, W.Va. – A St. Albans man pleaded guilty today to federal drug and gun crimes.
According to court documents, Ricky Lee Clark, Sr., 53, admitted that on July 2, 2019, a member of the St. Albans Police Department pulled over his truck, which was being driven by a woman, but in which he was the passenger. Clark admitted that handgun ammunition was recovered from the truck and he had approximately thirteen grams of methamphetamine in his pocket. Clark also admitted that pursuant to the execution of a search warrant at his residence, the police recovered six firearms later that day. Clark is prohibited from possessing firearms and ammunition because of a prior felony conviction for conspiring to operate a clandestine drug laboratory.
Clark pleaded guilty to possession with intent to distribute methamphetamine, being a felon in possession of firearms and being a felon in possession of ammunition. He is scheduled to be sentenced on July 22, 2021 and faces up to 40 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Lisa G. Johnston of the Southern District of West Virginia made the announcement.
The St. Albans Police Department conducted the investigation with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the United States Marshals Service. United States District Judge Joseph R. Goodwin presided over the hearing. Assistant United States Attorney Nowles Heinrich is handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-00034.
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Kansas City Man Sentenced to 96 Months Imprisonment for Possession of a Firearm While Trafficking Drugs and Discharging a Firearm on School PropertyRead the Press Release
TOPEKA, KAN. – A Kansas City man has been sentenced on federal charges of possession of a firearm in furtherance of drug trafficking and discharging a firearm on school property, Acting U.S. Attorney Duston Slinkard said today.
DALLAS SRIVISAY, 21, of Kansas City, Missouri, was sentenced on April 20, 2021 to 96 months in federal prison, followed by 3 years of supervised release. Srivisay entered a guilty plea on October 6, 2020. According to court records, this investigation involved an incident where Srivisay and a codefendant participated in a drug exchange with others in a Manhattan, Kansas high school parking lot. The intended drug deal went bad when the unknown buyer attempted to rob Srivisay’s brother and his codefendant at gunpoint. The attempted robbery ended in an exchange of gunfire between Srivisay and others when Srivisay began discharging a firearm into the would-be robber’s car. Immediately following the shootout at the high school, Srivisay and the codefendant were engaged in a high-speed police chase on I-70 where the vehicle reached speeds exceeding 120 miles per hour until the vehicle was forcibly stopped by law enforcement.
This case was investigated by the Bureau of Alcohol Tobacco and Firearms, Riley County Kansas Police Department, Kansas City Kansas Police Department, Kansas Highway Patrol, and the Overland Park Police Department. Assistant United States Attorney Skipper Jacobs prosecuted the case.
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Jury Convicts Man of Kidnapping and Assaulting his Ex-WifeRead the Press Release
A federal jury today found a man from Choctaw guilty of kidnapping and assaulting his ex-wife in April 2017.
Randy Alan Hamett, 64, was convicted on all 12 counts: kidnapping in Indian Country; carjacking; possessing and receiving a stolen firearm and stolen ammunition; possession of a firearm while subject to a domestic violence protective order; burglary in the second degree in Indian Country; assaults with a dangerous weapons (2 counts) in Indian Country; domestic violence in Indian Country; interstate violation of a protective Order (2 counts); carrying, using, and brandishing firearms during and in relation to a crime of violence (2 counts). U.S. District Judge Claire V. Eagan set sentencing for July 29, 2021.
“A jury considered the evidence and then held Randy Hamett accountable for terrorizing Alisa Henin, the victim in this case,” said Acting U.S. Attorney Clint Johnson. “Alisa faced abuser Randy Hamett through a harrowing ordeal and then two trials. She is a survivor and is to be commended for her courage. She exemplifies the resiliency and strength we see in victims every day.”
On April 25, 2017, Hamett parked his truck at a nearby Wal-Mart, walked to Ms. Henin’s home, and cut a hole in an outside wall to gain entry. When she returned home, Hamett tased her, pointed his own revolver at her, and bound her hands and feet. Hamett then forced the victim into a car, stole a revolver she had purchased after obtaining a protective order against him, then kidnapped her and sexually assaulted her. During the two-day ordeal, Hamett threatened to kill himself, the victim, and anyone who tried to help her.
Convinced that Hamett was going to kill her, she made every effort to prolong the trip and gain the defendant’s trust. She convinced Hamett they should get back together and remarry in Arkansas. The defendant eventually allowed her to text her parents and her boyfriend so they would not become suspicious concerning her whereabouts. Based on the nature of the text, Ms. Henin’s parents became worried that she was in danger and contacted the Broken Arrow Police Department. Through a concerted investigation by the Broken Arrow and Siloam Springs Police Departments, officers were able to locate Hamett and the victim at a hotel in Siloam Springs, Arkansas, where they determined Hamett was holding the victim against her will. Officers found him in possession of a firearm and ammunition, along with Taser cartridges, and Hamett was arrested for violation of a protective order.
At an August 2020 press conference announcing Justice Department domestic violence funding awards, Ms. Henin shared her story of survival and recognized the 28 domestic violence warriors who helped her escape a violent marriage and who ultimately held Hamett accountable for his crimes. Those who assisted her were law enforcement, victim services agencies, friends and family.
As she ended her story, Alisa said, “In June 2020, [Randy Hamett] won an appeal on a procedural technicality, so he will be re-tried in federal court. Am I worried? No, I still have faith in God and confidence in the trained professionals who are fighting for my long-term protection. He may have had a dark plan to control and silence me, but there was obviously a greater plan at work. That plan included meeting extraordinary people who dedicate their lives to protecting and serving others. I will always be grateful to them and to those who provide resources to domestic violence victims.”
Hamett was previously convicted in federal court for the kidnapping, but the 10th U.S. Circuit Court of Appeals reversed his conviction and ordered a new trial. In a 2-1 decision, the appellate court found that the trial judge had “erred in finding that Mr. Hamett knowingly and intelligently waived his right to counsel” at his July 2018 trial.
“I am thankful for the work of Assistant U.S. Attorneys Jeff Gallant and Devon Lash in securing today’s conviction,” said Johnson. “Devon volunteered to join our team from the Eastern District of New York as this office took on an exponential increase in cases. This week was her first trial as a federal prosecutor, and I couldn’t be more proud of her performance in court.”
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Broken Arrow Police and Siloam Springs Police Departments, and the Rogers State University Police.
Jury Convicts Bourbonnais Man for Enticement of a MinorRead the Press Release
PEORIA, Ill. – A federal jury deliberated for approximately one hour before returning its guilty verdict this afternoon against Timothy Lyle Dean, 38, of the 200 block of Spencer Court, Bourbonnais, Ill., for one count of enticement of a minor.
Over two days of testimony this week, the government presented evidence to establish that Dean was identified when he arranged to meet an individual whom he believed to be a 14-year-old minor for sexual activity on the dating application Grindr.
Sentencing for Dean has been scheduled for Sept. 14, 2021, before Senior U.S. District Judge Michael M. Mihm. Dean faces statutory penalties of 10 years to life imprisonment. Dean has remained in the custody of the U.S. Marshals Service since his arrest in February 2020.
Dean was arrested and charged as a result of an investigation by the FBI – Springfield Division, with the assistance of the Bradley Police Department, the Kankakee County Sheriff’s Office, and the Kankakee Area Metropolitan Enforcement Group. Assistant U.S. Attorney Elly M. Peirson and Special Assistant U.S. Attorney Shannon O’Brien-Ranck of the Illinois Attorney General’s Office represent the government.
The case was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Jacksonville Navy Airman Pleads Guilty to Distributing Child Sexual Abuse Images and Video over the InternetRead the Press Release
Jacksonville, Florida - Evan Andrew Bubbers (21, Bettendorf, IA) today pleaded guilty to distributing materials depicting the sexual abuse of children over the internet. Bubbers faces a mandatory minimum term of 5 years, and up to 20 years, in federal prison. Bubbers was arrested on March 30, 2021, at Naval Air Station - Jacksonville. A sentencing hearing has not yet been scheduled.
According to court documents, on March 17, 2021, the Jacksonville Sheriff’s Office (JSO) contacted the Naval Criminal Investigative Service (NCIS) in Jacksonville about an investigative tip, known as a “CyberTip,” that had been received by the National Center for Missing & Exploited Children (NCMEC). NCMEC reported that a particular social media application (app) had filed a CyberTip indicating that videos depicting child sexual abuse had been uploaded over the internet and shared with other users on this app. A JSO investigation determined that the distribution of these videos was connected to Bubbers through the internet service for his barracks residence at Naval Air Station - Jacksonville. During an interview on March 30, 2021, Bubbers admitted to uploading and sharing material depicting the sexual abuse of children using the app, including the video from the Cybertip. This same video was also located during a search of Bubbers’s cell phone.
This case was investigated by the Jacksonville Sheriff’s Office and the Naval Criminal Investigative Service. It is being prosecuted by Assistant United States Attorney Ashley Washington.
It is another case 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.
Holyoke Man Indicted on Child Pornography ChargesRead the Press Release
BOSTON – A Holyoke man was charged in connection with receipt and possession of child pornography.
Alfredo Aldeco, 35, was indicted on one count of receipt of child pornography and one count of possession of child pornography. Alcedo made an initial appearance yesterday in federal court in Springfield. He is currently detained in federal custody in connection with another federal case.
According to the indictment, between March and October 2018, Aldeco received child pornography. On Nov. 21, 2018, Aldeco allegedly possessed material that contained one or more images of child pornography involving a prepubescent minor.
The charge of receipt of child pornography provides for a mandatory minimum sentence of five years and up to 20 years in prison. The charge of possession of child pornography provides for a sentence of up to 10 years in prison. Each charge also provides for a mandatory minimum of five years and up to a lifetime of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathanial R. Mendell and Joseph R. Bonavolonta, Special Agent in Charge of Federal Bureau of Investigation, Boston Field Division made the announcement today. Assistant U.S. Attorney Catherine G. Curley of Mendell’s Springfield Branch Office is prosecuting the case.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Georgia Correctional Officer Pleads Guilty to Civil Rights Offense for Assaulting InmateRead the Press Release
A Georgia correctional officer pleaded guilty today to violating the civil rights of an inmate.
According to documents filed in connection with the guilty plea, Jamal Scott, 33, an on-duty correctional officer at the Valdosta State Prison (VSP) in Valdosta, struck an inmate with his fist multiple times while the inmate was handcuffed and lying on the ground on Dec. 29, 2018. Specifically, Scott, along with Correctional Officer Brian Ford, Sergeant Patrick Sharpe, and other prison officials, escorted the handcuffed inmate to an outdoor area on the grounds of the prison for the purpose of assaulting the inmate in retaliation for an earlier altercation between the inmate and a female officer. Scott and Ford, carrying out a directive from their supervisor, Sharpe, took the inmate to the ground and struck him multiple times in the body. The inmate was handcuffed and compliant at the time of the assault.
Ford previously pleaded guilty on Nov. 9, 2020, to one count of deprivation of rights under color of law, for his role in this incident. Scott and co-defendant Sharpe were indicted in a four-count indictment on Dec. 11, 2020.
“When Scott assaulted this inmate, he violated the inmate’s civil rights and betrayed his oath of office as a correctional officer,” said Principal Deputy Assistant Attorney General Pam S. Karlan of the Justice Department's Civil Rights Division. “The Justice Department will continue to protect the civil rights of all individuals, and work to ensure that officers who abuse their power are held accountable.”
“Damaging repercussions are felt across our community and beyond whenever a sworn officer violates the civil rights of a person in their charge,” said Acting U.S. Attorney Peter D. Leary for the Middle District of Georgia. “Our office will work tirelessly to protect the civil rights of all people, and we will hold abusive officers accountable for breaking the laws they are sworn to uphold.”
“There is never a reason for a correctional officer to resort to violence that violates an inmate’s constitutional rights,” said Special Agent in Charge Chris Hacker of the FBI Atlanta Field Office. “The FBI understands that working in a correctional institution is stressful and dangerous work, and that the vast majority of the men and women working in these institutions do their jobs honorably on a daily basis. When an officer violates the rights of inmates in their care, it erodes public trust in these important positions and damages the reputation of the hard-working officers who continue to serve.”
Scott faces a maximum statutory penalty of up to 10 years in prison and a fine of up to $250,000. A sentencing hearing has not been scheduled at this time.
This case was investigated by the FBI and was prosecuted by Trial Attorneys Katherine G. DeVar and Nicole Raspa of the Civil Rights Division, with assistance from Criminal Chief Michael Solis of the U.S. Attorney’s Office for the Middle District of Georgia.
Fort Dodge Man Pleads Guilty to Methamphetamine and Firearm Charges Following a Hit and Run AccidentRead the Press Release
A man who conspired to distribute methamphetamine pled guilty April 19, 2021, in federal court in Sioux City.
Daniel Moss, 45, from Fort Dodge, Iowa, was convicted of conspiracy to distribute methamphetamine and illegal possession of a firearm. Previously, in 2009, Moss was convicted of another drug felony offense in the United States District Court for the Northern District of Iowa, of conspiracy to distribute methamphetamine, distribution of methamphetamine within a protected location, and employment or use of person under 18 to assist in conspiracy to distribute methamphetamine.
At the plea hearing, Moss admitted that from June 2020 through about July 5, 2020, he conspired to distribute more than 50 grams of pure methamphetamine to others in the Fort Dodge, Iowa area. On or about July 5, 2020, Moss was involved in a hit and run accident with another vehicle. After fleeing the scene, Fort Dodge police officers pursued Moss and ultimately caught him that same day, at which time Moss assaulted a police officer and a loaded handgun fell from his waistband. The firearm was later determined to be stolen. Moss also had approximately $2,500 and a black Nike sports duffel bag he discarded as he fled the accident. A search of the Nike sports bag revealed a drug ledger, paperwork with Moss’ name, syringes, baggies with residue, a scale, a cell phone, approximately $14,500, and approximately 2 grams of methamphetamine. Another bag found within Moss’ abandoned vehicle contained approximately 54 grams of pure methamphetamine, a scale, and a pipe used for ingesting controlled substances. Moss’s prior felony conviction, and drug use, prohibited him from possessing a gun.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Moss remains in custody of the United States Marshal pending sentencing. On the conspiracy conviction, Moss faces a mandatory minimum sentence of 15 years’ imprisonment and a possible maximum sentence of life imprisonment, a $20,000,000 fine, and at least 10 years of supervised release following any imprisonment. On the firearm conviction, Moss faces a maximum sentence of not more than 10 years’ imprisonment without the possibility of parole, a fine of not more than $250,000, and a term of supervised release of not more than 3 years.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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.
The case is being prosecuted by Special Assistant United States Attorney Patrick T. Greenwood and was investigated by Fort Dodge Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, Iowa Division of Narcotics Enforcement, and Iowa DCI.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-3002. Follow us on Twitter @USAO_NDIA.
Former Wilmington Fire Department Union President Pleads Guilty to Possessing Prepubescent Child PornographyRead the Press Release
WILIMINGTON, Del. – Joseph J. Leonetti, Jr., Former Union President of the Wilmington Fire Department, pled guilty today before the Honorable Colm F. Connolly to possessing prepubescent child pornography, announced David C. Weiss, U.S. Attorney for the District of Delaware. Mr. Leonetti faces a maximum penalty of 20 years in prison when sentenced on August 24, 2021. 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.
According to publicly filed documents and statements made in open court, law enforcement officers executed a federal search warrant at Leonetti’s Wilmington residence on June 19, 2020, and seized his personal cellphone. After a later forensic review of that cellphone, investigators found nine videos and more than 500 cached images of child pornography. A cache is a reserved storage location that collects temporary data for easy retrieval. Also, in the cellphone’s “Notes” app, investigators found links to folders associated with cloud-based file storage services Dropbox and Mega. Investigators were able to recover the contents of four linked folders, containing over 2,000 images and 800 videos of child pornography. The child pornography found on the defendant’s cellphone and in the linked folders included depictions of prepubescent minors engaged in various sexual acts and the lascivious exhibition of their genitals.
U.S. Attorney David C. Weiss stated as follows: “The U.S. Attorney’s Office for the District of Delaware is committed to protecting the most vulnerable among us—our children—from the abhorrent shadow industry that produces, distributes, and collects child pornography and from those who lurk in its base marketplace. This Office fulfills its commitment without regard to the occupation or privilege of the wrongdoer. No one is above the law.”
“The defendant, while in a position of trust as the former Wilmington Fire Department Union President, possessed depictions of the sexual exploitation of prepubescent children,” said Brian A. Michael, Special Agent in Charge for Homeland Security Investigations Philadelphia. The innocent children in these images will have to deal with the impact of this tragedy for the rest of their lives. We hope today’s plea brings them some measure of justice.”
Homeland Security Investigations investigated this case. Assistant U.S. Attorney Graham L. Robinson prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the U.S. Department of Justice. Led by U.S. Attorneys’ Offices across the country and the Child Exploitation and Obscenity Section of the Department of Justice, 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.
Former Chase Bank Teller Charged with Bank Fraud for Targeting Older Adult VictimRead the Press Release
An indictment was unsealed today charging Alan Lee Hardy, former bank teller at Chase Bank, with Bank Fraud, Acting U.S. Attorney Saima Mohsin announced today.
Mohsin was joined in the announcement by Special Agent in Charge Douglas Zloto, U.S. Secret Service, Detroit Field Office and Chief of Police David Molloy of the Novi Police Department.
“Elders are among the most vulnerable members of our society,” stated Acting US Mohsin. “They are often seen as an easy target by those who seek to take advantage of them. My office is committed to bringing those who prey on our seniors to justice“
“The U.S. Secret Service is dedicated to ensuring the public remains confident in our country’s financial institutions and therefore takes cases of elder fraud incredibly seriously. These investigations can be time consuming, but law enforcement is committed to bringing individuals who take advantage of our seniors to justice. This case highlights that commitment as well as the partnership between the Novi Police Department, the Southeast Michigan Financial Crimes Taskforce and the U.S Attorney’s Office,” said Douglas J. Zloto, Special Agent in Charge.
“Every year millions of elderly Americans are victims of theft and fraud. I’m very proud of the efforts of our detectives and task force officers who investigated this case and were committed to seeing justice prevail. The relationships the Novi Police Department has with our federal partners affords us additional resources in identifying and prosecuting those who prey on our most vulnerable population," stated Chief Molloy.
Alan Lee Hardy, 37, was charged with one count of Bank Fraud on April 21, 2021. It is alleged in the indictment that in August 2016, while working as a teller at the Chase Bank located at 3300 E. Jefferson Ave. in Detroit, Hardy defrauded a victim’s account of at least $32,000 in a single withdrawal. The victim in this case was over 90 years old at the time of the fraud. To date, the victim, has received no compensation for the money taken from his account.
The investigation was conducted by the United Secret Service and the Novi Police Department. This case is being prosecuted by Assistant United States Attorney Mitra Jafary-Hariri and Chief of the White Collar Crimes Unit John Neal. Ms. Jafary-Hariri serves as the Elder Justice Coordinator for the Eastern District of Michigan.
An indictment is only a charge and is not evidence of guilt. Each defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Fifteen Defendants Charged in a 37-Count Racketeering Indictment Against Lowrider Criminal Street GangRead the Press Release
DAVENPORT, Iowa – Four additional members and associates of the Lowrider Street Gang have been federally charged in a Superseding Indictment. In addition to the added defendants, a Federal Grand Jury charged members and associates with a Racketeering Conspiracy spanning from in and around 2013 to the present. In total, members and associates of the Lowrider Street Gang have been charged with five separate shootings and one stabbing against rival gang members that occurred between August 2015 and June 2020.
In August 2020, charges were previously announced for eleven members and associates of the Lowriders, a Davenport-based street gang, for various crimes including attempted murder in aid of racketeering, drug trafficking, tampering with witnesses, knowingly transfer of a handgun to a juvenile, lying to the grand jury, use of persons under 18 years of age in drug operations, and firearms charges. Five members or associates of the Lowriders have been charged in state court for intimidation with a dangerous weapon, willful injury, criminal gang participation, and drug-related offenses.
Two other members were previously charged with federal firearms violations. Specifically, in November 2019, Alejandro Francisco Herrera, Jr., was sentenced after pleading guilty to prohibited person in possession of a firearm and possession of a controlled substance. In February 2020, Zacharia Allen Clark was sentenced to 200 months of imprisonment after pleading guilty to prohibited person in possession of ammunition related to an incident in which he shot at another person in the parking lot of a Davenport nightclub. As a result of this investigation, twenty-two Lowrider Street Gang members and associates have been charged with crimes.
Those arrested on federal charges include AUSTIN NICHOLS, ADAN HERRERA, CODY HERRERA a/k/a Cody Williamson, KERRI JOANNE REITZ, JOSE MIGUEL PENA, ANDRES JOSEPH ARRIAGA, TEVIN MAXWELL LIRA, JACOB TRUJILLO, ANTONIO HERRERA, CARMELO REYES, ANGEL MORA, MARIO HERRERA, EDUARDO HERRERA SR., and ARNOLDO HERRERA. The identities of those who have not yet been arrested remain sealed at this time.
The charges were announced by Richard D. Westphal, Acting United States Attorney for the Southern District of Iowa, and Paul Sikorski, Davenport Police Chief. In addition, the Federal Bureau of Investigation, Drug Enforcement Administration, Iowa Division of Criminal Investigations, Bettendorf Police Department, Moline Police Department, and Scott County Sheriff’s Office assisted in the investigation.
“The law-abiding citizens in these neighborhoods deserve to feel safe from violent gangs such as the Lowriders, and their criminal rivals,” said Acting United States Attorney Westphal. “Along with our law enforcement partners, we will continue to aggressively pursue this goal of community safety and use every available state and federal prosecution tool to charge those individuals committing these acts of violence.”
It is alleged the Lowrider Street Gang is a criminal enterprise that engaged in racketeering activity, namely offenses involving controlled substances; acts involving murder; and acts relating to the tampering with a witness, victim, or informant. The Lowrider Street Gang and its members are alleged to have preserved and protected the profits of the gang through the threatened or physical use of violence and kept victims and witnesses in fear of the street gang through these threats of violence. In addition, it is alleged that the Lowrider Street Gang provided support to gang members who were incarcerated for gang-related activities; and retaliated against acts of violence perpetrated against the street gang including acts of violence against rival gangs known as the West Side Mafia and Latin King street gang. The Lowrider Street Gang allegedly operated and conducted their affairs through a series of rules and policies; held regular meetings at which they discussed, planned, and otherwise engaged in criminal activity; and initiated new members through the practice of causing them to endure physical assaults conducted by members of the gang at various gang-related gatherings. It is alleged that members agreed to distribute drugs, recruited juveniles to commit violent acts for the gang’s benefit, and agreed or conspired to commit acts of violence, including acts involving murder, against rival gangs.
The charges in the indictment carry maximum penalties of between 10 years and life imprisonment. If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory U.S. Sentencing Guidelines. There is no parole in the federal court system.
The public is reminded that charges contain only accusations and are not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Federal Detainee Charged with Illegally Possessing a Cell Phone in PrisonRead the Press Release
PITTSBURGH, PA – An inmate of Butler County Prison, located in Butler, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh, Pennsylvania, on a charge of possessing contraband while in prison, Acting United States Attorney Stephen R. Kaufman announced today.
The one-count Indictment named William Kelly Penn, age 36, as the sole defendant.
According to the Indictment, on February 20, 2021, Penn, a federal detainee at Butler County Prison, possessed a cell phone while in custody, a prohibited object for inmates.
The law provides for a maximum total sentence of not more than one year in prison, a fine not to exceed $100,000.00, a term of supervised release of not more than 1 year, or a combination thereof. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Benjamin J. Risacher is prosecuting this case on behalf of the government.
The United States Marshals Service conducted the investigation leading to the Indictment in this case.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Ex-law enforcement officer sent to prison for transporting purported drug moneyRead the Press Release
HOUSTON – A former deputy constable and her husband have been ordered to federal prison after admitting to conspiracy to possess with intent to distribute heroin, announced Acting U.S. Attorney Jennifer B. Lowery.
Betty Jean Molina, 58, pleaded guilty Oct. 21, 2020, while her husband - Henry Molina, 60 - entered his plea July 28, 2020. Both reside in Houston.
Today, U.S. District Judge George C. Hanks Jr. ordered Betty and Henry Molina to serve 87 and 80 months in federal prison, respectively. Each was also ordered to serve three years of supervised release following their imprisonment and must pay a $29,000 fine. At the hearing, the court heard how they used their experience, resources and Betty Molina’s law enforcement credentials to help traffic drugs and money from the sale of those drugs for what they believed to be a large-scale drug trafficking organization. In handing down the sentence, Judge Hanks noted the potential harm to the community of trafficking heroin and other illegal drugs, the couple’s disregard of those potential harms and Betty Molina’s abuse of her public trust.
“The FBI Houston Law Enforcement and Border Corruption Task Force is uniquely qualified to ensure that law enforcement officers who blatantly betray their sworn oath for personal gain are rooted out,” said FBI Special Agent in Charge Perrye K. Turner. “As a result of today's sentencing, the Molinas will be held accountable for their actions. The task force especially appreciates those who are willing to come forward to share knowledge of these crimes."
The couple admitted to transporting what they believed to be approximately a half-million dollars in drug trafficking proceeds on multiple occasions. They had also agreed to transport what they believed was two kilograms of heroin.
At the time of the offense, Betty Molina was a deputy constable with Harris County Precinct 5 Constable’s Office. As part of her plea, she admitted to using her law enforcement credentials when stopped for speeding on one of their trips.
As part of the pleas, the couple admitted to obtaining several thousand dollars of what they believed to be drug proceeds and brought it back to Houston. On at least one occasion, they also transported a significant amount of narcotics.
In return, they received approximately $30,000 combined for all of their criminal actions.
Both were permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI Houston Law Enforcement and Border Corruption Task Force, which includes the Houston Police Department, Texas Department of Public Safety and the Department of Homeland Security – Office of Inspector General conducted the investigation with the assistance of Harris County Constable Precinct 5. Assistant U.S. Attorneys Alamdar S. Hamdani and Arthur R. Jones prosecuted the case.
Essex County Man Indicted for Illegally Possessing Firearm and Ammunition and for Possessing with Intent to Distribute HeroinRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was indicted today on charges stemming from illegally possessing ammunition in connection with two shootings, illegally possessing a handgun and possessing heroin with the intent to distribute, Acting U.S. Attorney Rachael A. Honig announced.
Antoine Hawkins, 31, of Newark, is charged with two counts of possession of ammunition by a convicted felon, one count of possession of a firearm and ammunition by a convicted felon, one count of possession with intent to distribute heroin, and one count of possessing a firearm in furtherance of a drug trafficking crime. He will be arraigned on a date to be determined.
According to documents filed in this case and statements made in court:
On Aug. 18, 2020, video surveillance footage showed Hawkins as he fired a gun on a Newark street, striking a victim, who survived. Hawkins was also identified as the perpetrator of another shooting in Newark on Aug. 13, 2020, and cartridge casings from the locations of both shootings are a ballistics match.
On Sept. 16, 2020, law enforcement officers conducted a surveillance operation in connection with the Aug. 18, 2020, shooting. During the surveillance operation, a law enforcement officer approached Hawkins and observed what appeared to be the imprint of a firearm on Hawkins’s jacket. The law enforcement officer frisked Hawkins and located and seized a 9mm Springfield Armory XDM pistol, which was loaded with 19 rounds of ammunition.
After Hawkins was arrested for possessing the pistol and the ammunition, law enforcement executed a search warrant inside of Hawkins’s residence and found 626 glassine envelopes containing suspected heroin and three 9mm magazines.
The firearm and ammunition offenses each carry maximum potential penalties of 10 years in prison and fines of $250,000. The count of possession of a firearm in furtherance of a drug trafficking crime carries a statutory mandatory minimum penalty of five years in prison, which must run consecutively to any other sentence Hawkins receives, and a maximum potential penalty of life in prison. The narcotics offense carries a maximum potential penalty of 30 years in prison, and a fine of $2 million.
Acting U.S. Attorney Honig credited the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II; members of the Newark Department of Public Safety, under the direction of Director Brian O’Hara; members of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson; and special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina, with the investigation leading to the charges.
This investigation is part of the Violent Crime Initiative (VCI) in Newark. The Newark VCI was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety for the sole purpose of combatting violent crime in and around the Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI includes the U.S. Attorney’s Office, the DEA, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Federal Bureau of Investigation, the U.S. Marshals, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, New Jersey State Parole Board, New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center, and New Jersey Department of Corrections.
The government is represented by Assistant U.S. Attorney Benjamin Levin of the U.S. Attorney’s Office Violent Crimes Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Driver in Canada border crossing car chase admits immigration crimeRead the Press Release
MISSOULA — A Washington, D.C., man accused of picking up three individuals suspected of crossing illegally into Montana from Canada and leading law enforcement on a 76-mile, high speed car chase that ended near Whitefish admitted to an immigration crime today, Acting U.S. Attorney Leif Johnson said.
Rastesfaye Alpha Neil, 39, pleaded guilty to transportation of illegal aliens as charged in an indictment. Neil faces a maximum five years in prison, a $250,000 fine and three years of supervised release.
U.S. District Judge Donald W. Molloy presided. Neil was detained pending further proceedings. Sentencing was set for Sept. 2.
In court documents filed in the case, the government alleged that Neil knowingly transported Christopher White, a Jamaica citizen; Naseem Ali Mohammed, a Somalia national and Canadian legal permanent resident; and Afrah Ahmed Abdi, a United States legal permanent resident and Somalia national; to help them remain illegally in the United States. All three were wanted by various Canadian law enforcement agencies.
The government alleged that at about 8:55 a.m. on Jan. 23, the Spokane Sector Border Patrol received information that three subjects with backpacks and wearing dark or camouflage parkas were entering the United States illegally in the West Kootenai area near Eureka.
Border Patrol agents responded to the area, spotted a southbound Nissan Sentra and attempted a traffic stop. While the Nissan initially yielded, it ultimately sped away as agents approached on foot. The Nissan led law enforcement agencies on a chase in which speeds reached 120 mph to 130 mph. The pursuit ended about one mile north of Whitefish when the Whitefish Police Department and Montana Highway Patrol successfully spiked the Nissan’s tires. Law enforcement identified Neil as the driver and White, Mohammed and Abdi as passengers who had illegally entered the United States shortly before the chase began.
The government further alleged that one of the illegal border crossers had been in contact with Neil, rental car companies and travel agencies. Neil had flown to Kalispell on Jan. 22.
White pleaded guilty to illegal reentry of a deported or removed alien and is awaiting sentencing. Abdi is pending extradition to Canada, while Mohammed is a fugitive.
The Border Patrol, Flathead County Sheriff’s Office, Lincoln County Sheriff’s Office, Eureka Police Department, Whitefish Police Department and Montana Highway Patrol investigated the case.
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Department of Justice Awards Emergency Funding to Support Response to Nashville BombingRead the Press Release
NASHVILLE, Tenn. – April 20, 2021 – The Department of Justice today announced that it is awarding more than $1.3 million to the State of Tennessee to meet critical law enforcement needs in the aftermath of last year’s Christmas Day bombing in Nashville. The funds are made available under the Emergency Federal Law Enforcement Assistance Program administered by the Bureau of Justice Assistance, a division of the Department’s Office of Justice Programs.
“These funds are a welcome relief and come at a most critical time for our partners at the Metropolitan Nashville Police Department”, said Acting U.S. Attorney Mary Jane Stewart. “The number of critical incidents responded to in 2020, all of which required a sustained and long-term response, greatly impacted the operational budget of our district’s largest municipal police department. These funds will help offset deficits and allow police operations to continue without major interruption.”
On December 25, 2020, a man detonated an explosive device inside a recreational vehicle in downtown Nashville. The incident resulted in the suspect's death and injured eight citizens. The explosion damaged dozens of buildings in the surrounding area. Already fiscally impacted by the pandemic, the response to community-wide demonstrations and the effects of a devastating tornado earlier in the year, the city will use this grant to cover unbudgeted law enforcement duties, including overtime expenses, that have placed considerable financial hardship on the Metropolitan Nashville Police Department.
“The explosion in downtown Nashville and the serious damage and injury it caused, on what should have been a day of peace and reflection for many, served as a stark reminder that the safety of our communities can never be taken for granted,” said OJP Acting Assistant Attorney General Maureen A. Henneberg. “These resources will help defray the costs associated with law enforcement’s role in responding to this shocking and terrifying public safety emergency.”
The Office of Justice Programs provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, advance racial equity in the administration of justice, assist victims and enhance the rule of law. More information about OJP and its components can be found at www.ojp.gov.
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Davenport Man Sentenced to Federal Prison for Firearm ChargeRead the Press Release
DAVENPORT, Iowa — On Tuesday, April 20, 2021, United States District Court Judge Stephanie M. Rose sentenced Phillip Darnell Hicks, age 38, of the Quad Cities-area, to 51 months in prison for Felon in Possession of a Firearm announced Acting United States Attorney Richard D. Westphal. Hicks was ordered to serve three years of supervised release to follow his prison term and pay $100 to the Crime Victims’ Fund.
The investigation began August of 2019 when Hicks met with an individual with the intent to sell them marijuana. Rather than selling marijuana, Hicks sold an empty bag. As a result, a car chase ensued, and Hicks’s vehicle was fired upon. The vehicle Hicks occupied got into a collision, and Hicks ran from the scene carrying a loaded Taurus Slim PT709 nine-millimeter pistol that he later threw away in a residential neighborhood in Davenport. At the time of this incident, Hicks knew he had a felony conviction for a crime punishable by a term of imprisonment exceeding one year and was prohibited from possessing a gun.
This matter was investigated by the Davenport Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone.
DEA’s 20th Prescription Drug Take-Back Day is SaturdayRead the Press Release
MACON, Ga. – The Drug Enforcement Administration’s (DEA) Atlanta Divisional Office is partnering with national, state, local, and tribal law enforcement officials, as well as community coalition groups, to hold its 20th National Prescription Drug Take-Back Day on Saturday, April 24, 2021 from 10 a.m. to 2 p.m. local time.
This one-day event will make it convenient for the public to rid their homes of potentially dangerous prescription drugs. At the event, Georgians will be able to drop off their expired, unused, and unwanted pills at sites across the state free of charge, no questions asked. By doing so, they will help prevent prescription drug abuse and theft. Georgians participating in DEA’s last take-back held on October 24, 2020, yielded 7,112 pounds of unwanted or expired medications for safe and proper disposal at sites set up throughout the state.
“The abuse of prescription medications often begins with the misuse or theft of these drugs from home medicine cabinets. DEA’s Take Back Day is a great opportunity for the public to be part of the solution and dispose of potentially dangerous drugs safely,” said Acting U.S. Attorney Peter D. Leary.
“DEA’s twentieth take-back event will allow Americans to safely and properly dispose of their unwanted/unused prescription medications,” said the Special Agent in Charge of the DEA Atlanta Field Division Robert J. Murphy. “DEA will work hand-in-hand with a number of law enforcement, Tribal and community partners, all in effort to stem the tide of prescription drug abuse.”
According to the Centers for Disease Control and Prevention, the U.S. has seen an increase in overdose deaths during the COVID-19 pandemic, with 87,200 Americans dying as a result of a drug overdose in a one-year period (Sept. 1, 2019 to Sept. 1, 2020), the most ever recorded in a 12-month period. The increase in drug overdose deaths appeared to begin prior to the COVID-19 health emergency, accelerating significantly during the first months of the pandemic.
The public can drop off potentially dangerous prescription medications at collection sites which will adhere to local COVID-19 guidelines and regulations in order to maintain the safety of all participants and local law enforcement. Several communities across the Middle District of Georgia will be holding Take Back Day disposal sites. To find a collection site, please visit www.deatakeback.com.
DEA and its partners will collect tablets, capsules, patches, and other solid forms of prescription drugs. Liquids (including intravenous solutions), syringes and other sharps, and illegal drugs will not be accepted. DEA will continue to accept vaping devices and cartridges at its drop off locations provided lithium batteries are removed.
Helping people dispose of potentially harmful prescription drugs is just one way DEA is working to reduce addiction and stem overdose deaths. Learn more about the event at www.deatakeback.com, or by calling 800-882-9539.
The DEA also encourages parents, along with their children, to educate themselves about the dangers of legal and illegal drugs by visiting DEA’s interactive websites at www.justhinktwice.com, www.GetSmartAboutDrugs.com and www.dea.gov. Also follow DEA Atlanta via Twitter at @DEAATLANTADiv.
DEA and U.S. Attorney’s Office encourage participation in National Prescription Drug Take Back DayRead the Press Release
With opioid overdose deaths on the rise in the Northern District of Ohio and across the country, Acting U.S. Attorney Bridget M. Brennan and DEA Special Agent in Charge Keith Martin are encouraging Northern Ohio residents to dispose of their unused prescription medication during National Prescription Drug Take Back Day on Saturday, April 24.
“A surge in overdose deaths this year has already put many communities in Northern Ohio on track to meet or eclipse overdose numbers not seen since 2017,” said Acting U.S. Attorney Bridget M. Brennan. “Participation in this year’s Prescription Drug Take Back Day is even more important as law enforcement fights back against this increase. We ask that everyone look through their homes and medicine cabinets for any unused prescription drugs for safe disposal at one of DEA’s identified locations throughout Northern Ohio. Taking part in Prescription Drug Take Back Day is a significant way for all residents to help us combat this crisis.”
“Helping people dispose of potentially harmful prescription drugs is just one way DEA is working to reduce addiction and stem overdose deaths,” said DEA Detroit Field Division Special Agent in Charge Keith Martin. “Take Back Day is not only a great opportunity to rid your home of unused medication but is also a time to have important conversations about proper use and storage of prescription medication.”
The public is encouraged to drop off potentially dangerous prescription medications at collection sites in their community, which will adhere to local COVID-19 guidelines and regulations in order to maintain the safety of all participants and local law enforcement.
Find a collection site using the DEA site locator here: Take Back Day (dea.gov) or contact your local police department.
DEA and its partners will collect tablets, capsules, patches, and other solid forms of prescription drugs. Liquids (including intravenous solutions), syringes and other sharps, and illegal drugs will not be accepted. DEA will continue to accept vaping devices and cartridges at its drop off locations provided lithium batteries are removed.
According to the Centers for Disease Control and Prevention, the U.S. has seen an increase in overdose deaths during the COVID-19 pandemic, with 83,544 Americans overdosing during the 12-month period ending July 1, 2020, the most ever recorded in a 12-month period.
The increase in drug overdose deaths appeared to begin prior to the COVID-19 health emergency but accelerated significantly during the first months of the pandemic. With studies indicating a majority of abused prescription drugs come from family and friends, including from home medicine cabinets, clearing out unused medicine is essential.
The Detroit Field Division, which covers Michigan, Ohio, and parts of Northern Kentucky, collected a record-setting 94,000 pounds during the October 2020 Take Back event.
Learn more about the event at www.deatakeback.com, or by calling 800-882-9539
DEA Prepares for Prescription Drug Takeback DayRead the Press Release
Acting U.S. Attorney Sean R. Berry joins the Drug Enforcement Administration (DEA) in announcing that on April 24th, DEA will hold its 20th National Prescription Drug Take Back Day. The biannual event will be held at thousands of collection sites around the country. The event is an effort to rid homes of potentially dangerous expired, unused, and unwanted prescription drugs.
“The National Prescription Drug Take Back Day aims to provide a safe, convenient, and responsible means of disposing of prescription drugs,” Acting U.S. Attorney Berry stated. “According to the Centers for Disease Control and Prevention, opioid overdose deaths have increased during the pandemic. Prescription medications often end up in the wrong hands, fueling an epidemic that kills more Americans than car accidents. DEA Take Back Day provides a way for any American to step up and help combat this crisis by simply cleaning out their medicine cabinet.”
Last October Americans turned in 492.7 tons (985,392 pounds) of prescription drugs at collection sites operated by the DEA and more than 4,800 of its state and local law enforcement partners. Overall, in its 19 previous Take Back events, DEA and its partners have taken in over 13 million pounds—more than 6,800 tons—of pills. The disposal service is free and anonymous, no questions asked. The DEA cannot accept liquids, needles, or sharps, only pills or patches.
Flushing medications down the toilet or throwing them in the trash pose potential safety and health hazards. This initiative addresses the public safety and public health issues that surround medications languishing in home cabinets, becoming highly susceptible to diversion, misuse, and abuse.
For more information or to locate a collection site near you, go the DEA web site at https://takebackday.dea.gov/ where you can search by zip code, city, or state.
Follow us on Twitter @USAO_NDIA.
Cumberland County Man Sentenced to 12 Years in Prison for Conspiring to Distribute Cocaine and Possessing with Intent to Distribute FentanylRead the Press Release
NEWARK, N.J. – A Cumberland County, New Jersey, man was sentenced today to 144 months in prison for conspiring to distribute cocaine and possessing with intent to distribute fentanyl, Acting U.S. Attorney Rachael Honig announced.
Oscar J. Gonzalez, 37, of Vineland, New Jersey, previously pleaded guilty before U.S. District Judge John Michael Vazquez to an information charging him with conspiracy to distribute and possess with the intent to distribute 500 grams or more of cocaine and possession with intent to distribute 400 grams or more of fentanyl. Judge Vazquez imposed the sentence today by videoconference.
According to documents filed in this case and statements made in court:
From Jan. 20, 2020, through Jan. 26, 2020, Gonzalez conspired with others to distribute multiple kilograms of cocaine. On Jan. 25, 2020, he agreed to purchase multiple kilograms of cocaine and traveled to a location in Union County, New Jersey, to obtain the cocaine. He brought with him approximately $24,000 in cash to pay for one kilogram of cocaine.
While on release in connection with that case, Gonzalez agreed to distribute five kilograms of fentanyl. On April 24, 2020, Gonzalez arranged for another individual to deliver the fentanyl to a location in Monmouth County, New Jersey.
In addition to the prison term, Judge Vazquez sentenced Gonzalez to five years of supervised release.
Acting U.S. Attorney Rachael A. Honig credited special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson in New Jersey and Special Agent in Charge Raymond Donovan in New York, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Francesca Liquori, of the Organized Crime and Gangs Unit.
Comprehensive Pain Specialists and Former Owners Agree to Pay $4.1 Million to Settle Fraud AllegationsRead the Press Release
NASHVILLE, Tenn. – April 21, 2021 – Acting U.S. Attorney Mary Jane Stewart and Tennessee Attorney General Herbert H. Slatery III announced today that they have entered into agreements with Anesthesia Services Associates, PLLC d/b/a Comprehensive Pain Specialists (“CPS”), its four majority owners, Dr. Peter B. Kroll, Dr. Steven R. Dickerson, Dr. Gilberto A. Carrero, and Dr. Richard J. Muench (collectively, the “Owners”), and Russell S. Smith, D.C. – a former CPS executive – whereby they agreed to pay a total of $4,121,663.94 to settle all claims by the United States and Tennessee involving allegations of wrongdoing at CPS.
CPS, which was based in Brentwood, Tennessee, at one point operated over 40 pain clinics and had operations in 12 states, until it shut down in 2018. On July 22, 2019, the United States and Tennessee filed a Consolidated Complaint in Intervention in the United States District Court for the Middle District of Tennessee against CPS, its former CEO, John Davis, who was convicted in April 2019 of health care fraud, as well as three of the four principal Owners, Drs. Kroll, Dickerson, and Carrero, and, Dr. Smith, a former manager of certain CPS clinics in East Tennessee (the “Civil Action”). The Complaint alleged, among other things, that the defendants submitted false claims for medically unnecessary and/or non-reimbursable testing and acupuncture. Dr. Muench, the only owner not a party to the lawsuit, agreed to settle with the United States and Tennessee prior to the filing of the Complaint.
The agreements with CPS and the Owners resolve the United States’ and Tennessee’s claims for violations of the False Claims Act and the Tennessee Medicaid False Claims Act that arose from the submission of false claims to federal health care programs and TennCare specifically for medically unnecessary and/or non-reimbursable urine drug, specimen validity, genetic and psychological testing, as well as claims for electro-auricular acupuncture during the period from May 2011 through when CPS ceased operating in 2018. The settlement also resolves claims relating to CPS’s submission of false claims under Dr. Kroll’s provider number for services he did not render and testing he did not order. In addition, the agreements resolve common law claims for fraud, payment by mistake, and unjust enrichment against CPS, the Owners and Dr. Smith.
To resolve the Civil Action, CPS agreed to release $2,196,663.94 million in funds held by Medicare in a suspension account and will contribute an additional $750,000 in cash. The Owners will pay a total of $1.05 million to resolve claims against them. Dr. Smith also agreed to pay $125,000 to resolve potential liability for common law claims that could be brought against him by the United States and Tennessee. As part of the settlements, the United States and Tennessee agreed to dismiss the Civil Action, except for their claims against John Davis.
“Even though CPS ceased operations before the United States and Tennessee filed the Civil Action, the United States and Tennessee were still able to recover millions of dollars in damages through litigation and utilizing administrative remedies available through our partners at the Centers for Medicare & Medicaid Services,” said Acting U.S. Attorney Stewart. “The United States will not hesitate to use all of its resources to protect taxpayer dollars, including by going after the individuals who reap the benefits, directly or indirectly, from health care fraud.”
“This type of purposeful, illegal conduct takes money from TennCare that otherwise would be used to pay legitimate claims of others,” said General Slatery. “This settlement should send a message. If you do this, State and federal authorities are coming after you.”
“When physicians and health care companies engage in questionable business practices and unnecessary services, it compromises patient care and the integrity of HHS programs,” said Derrick L. Jackson, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Our agency will continue to investigate and hold accountable providers that put profits before patients.”
“We are fortunate to have this strong partnership between state and federal agencies in the pursuit of false claims, to hold accountable those responsible,” said TBI Director David Rausch. “Health care fraud impacts the quality of our health care, in addition to costing consumers and taxpayers.”
The allegations resolved by this settlement were originally raised in lawsuits filed under the qui tam, or whistleblower, provisions of the FCA, which allow private citizens with knowledge of false claims to bring civil suits on behalf of the government and to share in any recovery. The whistleblowers will receive $610,684.62 as their share of the Governments’ settlement proceeds from the CPS settlement and will dismiss their individual actions.
The case was handled by the United States Attorney’s Office for the Middle District of Tennessee and the Tennessee Attorney General’s Office, and investigated by the Department of Health and Human Services, Office of Inspector General and the Tennessee Bureau of Investigation Medicaid Fraud Control Unit. Assistant U.S. Attorney Kara F. Sweet represented the United States. Assistant Attorney General Philip H. Bangle represented Tennessee.
The Civil Action is captioned United States and the State of Tennessee ex. rel. Suzanne Alt, et al. v. Anesthesia Services Associates, PLLC, et al., Case No. 3:16-cv-00549 (M.D. Tenn.). The claims resolved by the settlements are allegations only, and there has been no determination of liability.
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Colorado Businessman Indicted for Employment Tax FraudRead the Press Release
A federal grand jury in Denver, Colorado, returned an indictment charging a Bow Mar, Colorado, businessman with tax evasion, failing to pay over employment taxes, and failing to file tax returns.
According to the indictment, Frank Stevens owned Stevens & Soldwisch Oil and Gas Properties I LLC (Soldwisch) and Northeastern Energy Corporation (Northeastern). Soldwisch owned an oil producing field in Michigan, and Northeastern employed the workers hired to extract oil from Soldwisch’s field. The indictment alleges that during quarters in 2014 and 2015, Stevens withheld taxes from Northeastern employees, but did not pay those withheld funds over to the IRS. The indictment further alleges that Stevens evaded paying taxes that were assessed against Northeastern and himself personally, by transferring funds out of bank accounts in his and Northeastern’s names. He also allegedly did not file tax returns on behalf of his businesses as required by law. According to the indictment, the IRS had assessed more than $700,000 in penalties against Stevens for outstanding employment taxes.
Stevens had his initial court appearance before U.S. Magistrate Judge Scott T. Varholak of the U.S. District Court for the District of Colorado. If convicted, he faces a maximum of five years imprisonment for each of the tax evasion and employment tax counts, and he further faces a maximum of one year in prison on each of the failing to file tax return counts. 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 made the announcement.
IRS-Criminal Investigations is investigating the case.
Assistant Chief Yael T. Epstein and Trial Attorneys Peter J. Anthony and Julia M. Rugg of the Justice Department’s Tax Division are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Clinton Man Sentenced to Federal Prison on Drug and Firearm ChargesRead the Press Release
DAVENPORT, Iowa — On Tuesday, April 20, 2021, United States District Court Judge Stephanie M. Rose sentenced Johnathon Lawrence Rose, age 33, of Clinton, to 210 months in prison for Possession with Intent to Distribute Methamphetamine and Felon in Possession of a Firearm announced Acting United States Attorney Richard D. Westphal. Rose was ordered to serve four years of supervised release to follow his prison term and pay $200 to the Crime Victims’ Fund.
The investigation began in January 2020 when Defendant Rose was stopped by police for illegally tinted windows and no valid driver’s license. Officers located pills that tested positive as eutylone, methamphetamine, cocaine, and caffeine in Rose’s pockets. A search warrant was executed at Rose’s residence and yielded a large amount of ammunition, parts for an AR-15, and drug paraphernalia. During the intake process at the jail, a firearm fell out of Rose’s pants during a search by a corrections officer. A search of his jacket revealed additional pills and more than 35 grams of methamphetamine. Rose was previously convicted of a felony and prohibited from possessing firearms.
This matter was investigated by the Clinton Police Department and the Blackhawk Area Task Force. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Chicago Man Indicted in Pittsburgh on Mail Fraud Charge relating to Pandemic Unemployment BenefitsRead the Press Release
PITTSBURGH, PA - One resident of Chicago, IL, has been indicted by a federal grand jury in Pittsburgh on a charge of mail fraud, Acting United States Attorney Stephen R. Kaufman announced today.
The one-count Indictment named Christian Matthews, 32, as the sole defendant.
According to Indictment, Matthews fraudulently obtained personal identifying information belonging to other people and used it, without permission, to file claims for pandemic-related unemployment benefits. The resulting benefits were sent via the United States mail and interstate commercial carriers to locations, including Pittsburgh, PA, where Matthews could retrieve and use them.
The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. The government is requesting detention.
Assistant United States Attorney Jeffrey R. Bengel is prosecuting this case on behalf of the government.
The United States Department of Labor, United States Department of Homeland Security Investigations, United States Postal Inspection Service, and Findlay Township Police Department conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.