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19 April 2021
Bank Robber Pleads GuiltyRead the Press Release
NEW ORLEANS – BYRON JAMAL WATSON, age 32, a resident of New Orleans, pleaded guilty on April 15, 2021 to two counts of bank robbery before the Honorable Susie Morgan, announced U.S. Attorney Duane A. Evans. WATSON faces up to 20 years imprisonment, a $250,000 fine, 3 years of supervised release, and a $100 special assessment fee, as to each count. Sentencing is currently scheduled for July 20, 2021.
According to count one of the indictment, on or about September 10, 2019, WATSON and another man robbed the Total Choice Federal Credit Union located at 100 Palmetto Drive in LaPlace, Louisiana. They obtained approximately $7,000 in the robbery. According to count two of the indictment, on or about September 26, 2019, WATSON and the same man robbed the Fidelity Bank located at 9099 Jefferson Highway, Jefferson, Louisiana. They obtained approximately $6,000 in that robbery.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation’s Violent Crime Task Force, the Jefferson Parish Sheriff’s Office, the New Orleans Police Department, and the Saint John Parish Sheriff’s Office. Assistant U.S. Attorney Jon Maestri is handling the prosecution.
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Attorney General Merrick B. Garland Remarks at the Oklahoma City Memorial, April 2021Read the Press Release
Thank you so much for those kind words, Bob.
Every year, on the 19th of April, people gather here at this beautiful memorial to remember those who were killed, those who survived, and those who were changed forever, to commemorate the strength of the community that came together in the face of such great loss, and to celebrate the resilience that makes Oklahoma City a model for communities everywhere.
And every year on this day, wherever I am, I reflect on the loss so many of you endured – the loss you continue to endure.
In the words of the late Nobel Peace Prize winner Elie Wiesel, at the dedication of the United States Holocaust Memorial Museum in Washington:
"'For the dead and the living, we must bear witness.’ For not only are we responsible for the memories of the dead, we are also responsible for what we are doing with those memories."
We bear witness so that younger generations – those who do not know firsthand about the bombing of the Murrah Federal Building – can understand and learn of the tragedy. We tell and retell the story, to instill in them the commitment to prevent tragedies like this from occurring again.
I am deeply humbled to bear witness with you today.
****
26 years ago, I was sitting in my office at the Department of Justice in Washington, when an “Urgent Report” from the Oklahoma City U.S. Attorney’s Office came through. It was soon followed by a second "Urgent Report," and then a third.
There had been an explosion at the Murrah building.
Those were the days when our only source of 24/7 news was CNN. My colleagues and I gathered in front of a TV in my office and caught our first glimpse of the destruction.
As information poured in, we gathered again at FBI headquarters to monitor events as a myriad of law enforcement agencies went to work.
An axle that landed some 200 yards away from the site provided a VIN number. The VIN number was traced to a truck manufactured by Ford, purchased by Ryder in Florida, and last rented at a shop in Junction City, Kansas.
A sketch artist drew a picture of the renter, and the FBI made the rounds in Junction City, looking for anyone who had seen him. Lea McGowan, the proprietor of the Dreamland Motel, recognized him, and an all-points-bulletin went out for Timothy McVeigh.
Meanwhile, 48 hours after the bombing, I was on the FBI plane traveling to Oklahoma. In those days, the plane could not make it to Oklahoma in one jump. We had to refuel in Indiana.
When I stepped outside, an agent handed me a cell phone. You would not recognize it today – in those days, a cell phone was the size (and weight) of a brick.
It was Attorney General Janet Reno calling. McVeigh had been found in the Noble County jail.
Charlie Hanger, then a sharp-eyed Oklahoma state trooper – who until last year was the Noble County Sheriff – had stopped him 90 minutes after the bombing for a missing license plate.
Charlie noticed that McVeigh was concealing a gun, arrested him for unlawful possession, and brought him to the jail. He was about to be released when the FBI arrived.
When I landed, we drove immediately to Tinker Air Force Base. McVeigh’s first presentment to a magistrate was held there because the federal courthouse had been damaged along with the Murrah building. I argued that McVeigh should be detained, and the magistrate agreed.
We then drove to the bomb site. First, we had to pass through a ring of Humvees. The National Guard had encircled a radius of more than 16 blocks that had been damaged by the bomb. Shattered glass and crumbled bricks were everywhere.
It was night, but you would not have known it. Bright lights lit the site up as if it were midday. The front of the Murrah Building was gone. The parking lot across the street still held cars that had been flattened by the blast.
An army of first responders was crawling all over the wreckage. They had rushed to the scene from across Oklahoma and across the country. They included rescue workers from my own Maryland community, who had arrived even before I did.
They were sifting through the rubble for survivors and the dead. And everyone was crying.
At the time, we did not know exactly how many people had died. But we did know that the children’s center, which had been at the front of the building, was gone.
Then and there, we made a vow. We promised that we would find the perpetrators, that we would bring them to justice, and that we would do so in a way that honored the Constitution.
A command post was set up in a Southwestern Bell dispatch building, the windows of which had been blown out by the blast. Oklahoma law enforcement officers and federal agents from across the country, worked hand-in-hand to follow the evidence and put the case together.
Governor Frank Keating made clear there would be none of the typical inter-agency rivalries that weaken investigations. “Let’s just find the people who did this,” he told me.
And as we continued that task, we never forgot the victims, in whose memories we worked.
We met with many of you who are here today, family members and survivors. We went to the memorial service together. I carried the program for that service in my briefcase, everywhere I went.
Weeks later, we stood with some of you on the rooftop of a nearby building as we watched the remains of the Murrah building being taken down.
We tried to treat you as we would have wanted our own families to be treated.
And in return, you and all of Oklahoma City treated us like family. You took care of us – the first responders, investigators, and prosecutors who had converged on the city from across the country.
The Salvation Army kept a food line going to feed us day and night. I don’t remember what I ate, but I know I was never hungry. Nearby tables were piled high with donations of everything from toothpaste to deodorant, from sweatshirts to rain jackets.
A barbershop relocated to the convention center and offered free haircuts. When I look at photographs from those days, I realize I did not visit the barber often enough.
One resident noticed our increasingly disheveled look and even set up a laundry service at the command center.
I cannot express the depth of my gratitude for your thinking of our comfort in the midst of your pain. Nor the depth of my admiration for the care Oklahomans extended to those who were hurting, neighbors and strangers alike.
This came to be known as "the Oklahoma Standard" – a spirit of community service, generosity, and kindness that we had never seen before. The Oklahoma City National Memorial and Museum keeps the Oklahoma Standard going to this day.
As Mr. Kennedy noted, once a week the museum hosts "Better Conversations," to bring together people from different backgrounds, different politics and different ideologies, to discuss issues about which they disagree.
It may not change minds, but it fosters understanding. And understanding is key to living peacefully, side-by-side, looking for common ground instead of allowing our differences to polarize us.
****
It is now 26 years since the bombing. And it is as surprising to me as it is to you that I am now the Attorney General of the United States.
Although many years have passed, the terror perpetrated by people like Timothy McVeigh is still with us. Just last month, the FBI warned of the ongoing and heightened threat posed by domestic violent extremists.
Those of us who were in Oklahoma City in April 1995 do not need any warning. The hatred expressed by domestic violent extremists is the opposite of the Oklahoma Standard.
And this memorial is a monument to a community that will not allow hate and division to win.
The Department of Justice is pouring its resources into stopping domestic violent extremists before they can attack, prosecuting those who do, and battling the spread of the kind of hate that leads to tragedies like the one we mark here today.
We must all stand together against them – for the safety of our communities, and for the good of our country.
As Kari Watkins, the executive director of the memorial and museum, often says: "On this sacred ground, we [must] work to find common ground."
Oklahoma City, you are always in my heart.
Thank you.
Armed Drug Trafficker Sentenced to 20 Years in Federal PrisonRead the Press Release
NEW BERN, N.C. – Jerome Davis, 39, of Brunswick County, was sentenced on Friday to 240 months in federal prison for conspiracy to possess with intent to distribute a quantity of cocaine, heroin, and crack cocaine, distribution of a quantity heroin, possession with intent to distribute a quantity of cocaine, cocaine base (crack) and marijuana, possession of firearm by convicted felon, and possession a firearm in furtherance of a drug trafficking.
According to court documents and evidence presented in court, on May 25, 2016, the New Hanover County Sheriff’s Office made a controlled purchase using a confidential informant of heroin from Davis in the area of Princess Place Drive in Wilmington, North Carolina. Between March and September 2019, the Wilmington Police Department made several controlled purchases from Davis of either cocaine or a mixture of cocaine and fentanyl.
On September 27, 2019, the Federal Bureau of Investigation, Brunswick County Sheriff’s Office, and the Wilmington Police Department conducted a search of Davis’ residence in Leland, North Carolina. During the search, deputies found a loaded 9mm handgun, crack cocaine, cocaine, marijuana, and $27,000 in cash. Davis was present during the search. A storage unit used by Davis was also searched and a shotgun with a ten drum magazine and a stolen .357 handgun were recovered. Davis is a convicted felon and prohibited from possessing a firearm.
Davis had prior convictions for felony burglary, assault inflicting serious injury, possession with intent to sell or deliver cocaine and marijuana, conspiracy to sell or deliver heroin, sale of schedule I and II controlled substances, and felony resisting an officer with violence.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Federal Bureau of Investigation, Wilmington Police Department and the Brunswick and New Hanover County Sheriff’s Offices investigated the case. Assistant U.S. Attorney Timothy Severo prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:19-cr-00183-FL.
Armed Drug Dealer Sentenced to more than Eight Years in Federal Prison on a Firearm ChargeRead the Press Release
A convicted felon, and armed drug dealer, who unlawfully possessed a gun was sentenced April 14, 2021 to more than eight years in federal prison.
Gregory Sewalson, age 34, from Sioux City, Iowa, received the prison term after a December 7, 2020, guilty plea to illegal possession of a firearm as a felon. Evidence presented by the United States at the detention, change of plea, and sentencing hearings revealed on September 14, 2019, when officers executed search and arrest warrants for defendant, he was in his basement apartment. Instead of surrendering, he hid his gun in a ceiling tile in his bedroom, scattered more than 65 grams of pure (actual) methamphetamine throughout his basement apartment, and initially refused to surrender to law enforcement. Sewalson had previously been convicted of felony theft in 2014 and felony disarming a peace officer in 2017. He was also convicted of possession of a controlled substance 3rd offense in 2018.
Sentencing was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Sewalson was sentenced to 102 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Sewalson is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see /media/1122011/dl?inline.
The case was investigated by the Sioux City Police Department and the United States Department of Justice -- Bureau of Alcohol, Tobacco, Firearms, and Explosives and was prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-4025
Follow us on Twitter @USAO_NDIA.
Arkansas Man Pleads Guilty to Illegally Damaging and Removing Trees from National ForestRead the Press Release
SPRINGFIELD, Mo. – An Arkansas man pleaded guilty in federal court today to illegally damaging and removing more than two dozen trees from a national forest.
Jamie R. Edmondson, 46, pleaded guilty before U.S. Chief Magistrate Judge David P. Rush to one count of depredation of government property.
By pleading guilty today, Edmondson admitted that he illegally cut and removed 27 walnut and white oak trees in the Mark Twain National Forest in Barry County, Mo., between June 1, 2019, and Jan. 31, 2020, without the permission of the U.S. Forest Service, which owns and manages the national forest. Edmondson sold the timber to various sawmills in the area.
According to the plea agreement, federal agents installed surveillance cameras in the areas of the national forest where numerous trees had been removed. The cameras captured images of the truck used by Edmondson, which was later located by law enforcement.
As part of his plea agreement, Edmondson admitted that the government can prove by a preponderance of the evidence that the value of the timber was at least approximately $20,269, and that the ecological damage value of the trees cut from the national forest and the damage remediation costs to the U.S. Forest Service from his actions within the national forest are at least $44,414.
Under federal statutes, Edmondson is subject to a sentence of up to 10 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Casey Clark. It was investigated by the U.S. Forest Service and the Barry County, Mo., Sheriff’s Department.
Ainsworth Man Sentenced to Prison for Drug and Firearm ChargesRead the Press Release
DAVENPORT, Iowa — On Thursday, April 15, 2021, United States District Court Chief Judge John A. Jarvey sentenced Curtis Anthony Cousins, age 37, of Ainsworth, to 210 months in prison for Possession with Intent to Distribute Methamphetamine and Possession of a Firearm in Furtherance of a Drug Trafficking Crime announced Acting United States Attorney Richard D. Westphal. Cousins was ordered to serve five years of supervised release to follow his prison term and pay $200 to the Crime Victims’ Fund.
The investigation began in January of 2019 when law enforcement identified Cousins as a distributor of “ice” methamphetamine in the Washington County area. Following a search warrant at a residence Cousins was renting, officers found distribution quantities of ice methamphetamine, materials consistent with drug trafficking, two handguns, and drug proceeds. Cousins, as a convicted felon, is prohibited from legally possessing firearms.
This matter was investigated by the Washington County Sheriff’s Office and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Acting U.S. Attorney Patel names Senior Litigation CounselRead the Press Release
COLUMBUS, Ohio – Acting United States Attorney Vipal J. Patel announced today that Assistant United States Attorney Heather A. Hill will serve as the district’s Senior Litigation Counsel.
“Heather has a distinguished career as a federal prosecutor, both in the Southern District of Ohio and the U.S. Attorney’s Office in D.C.,” Patel said. “She has been a mentor in our Columbus office, and will no doubt continue in that capacity, now for our entire district.”
The Senior Litigation Counsel is a federal prosecutor with at least five years of experience who has been recognized as an outstanding litigator. The SLC is responsible for in-office training of other Assistant United States Attorneys. Hill will also serve as the Criminal Discovery Coordinator.
Hill joined the U.S. Attorney’s Office for the Southern District of Ohio in 2011. In her decade with the Columbus office, she has served as the district’s Project Safe Childhood Coordinator and Human Trafficking Coordinator. She has prosecuted more than 100 cases involving online crimes against children.
Prior to joining the office, Hill did work in the Sex Offense and Domestic Violence Division of the United States Attorney’s Office for the District of Columbia and clerked for the Hon. Robert I. Richter, formerly of the D.C. Superior Court. She attended the George Washington University Law School and received her bachelor’s degree at the University of Missouri.
Hill’s appointment as SLC is pending final administrative approval.
Acting U.S. Attorney Patel commends the office’s prior SLC, Assistant United States Attorney Douglas Squires, for his years of service to the office and the district. AUSA Squires recently began an assignment with the Executive Office of United States Attorneys.
Hill is one of approximately 70 Assistant United States Attorney’s that serves the Southern District of Ohio. The U.S. Attorney’s Office also includes approximately 50 non-attorney personnel and covers the southern 48 counties in the state. The office prosecutes federal crime and represents the United States in civil litigation.
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40th Annual National Crime Victims' Rights WeekRead the Press Release
Every April, the Department of Justice leads communities across the Nation in their annual observance of National Crime Victims’ Rights Week. This year is the event’s 40th anniversary.
Throughout the week, we renew our commitment to serving all victims of crime, acknowledge significant achievements in victim services and allied professions, and remember crime victims and survivors. This year’s theme — Support Victims. Build Trust. Engage Communities. — emphasizes the importance of leveraging community support to help victims of crime.The U.S. Attorney’s Office for the Southern District of Illinois prioritizes victim cases, especially violent crimes, hate crimes, crimes against the elderly, and crimes against children.
Seeking justice for victims involves extensive coordination, not only with our outstanding partners in law enforcement, but also with community organizations, care providers, social services, and victim advocates.“This week we honor all who work tirelessly and compassionately to care for the needs of crime victims,” said U.S. Attorney Steven D. Weinhoeft. “Their jobs have been especially vital during the pandemic, as victims have struggled to connect with family, friends, and other support systems. We also recognize the bravery and sacrifice of all those who serve honorably in law enforcement, who put themselves at risk every day to prevent others from being victimized. The work they do has never been more difficult, and we owe them a great debt of gratitude.”
Organizations, programs, and individuals across the nation who have provided outstanding service in support of crime victims will be honored at the 2021 National Crime Victim’s Service Awards
Ceremony, which will be held virtually on April 23, 2021, from 3:00 to 4:30 p.m. eastern time. To register for the ceremony, please visit https://go.usa.gov/xssdb. Visitors to the website can also access the 2021 National Crime Victims’ Rights Week Resource Guide, which provides free event planning ideas, graphics, videos, and more information for participating organizations.
17 April 2021
Rapid City Man Indicted on Child Pornography ChargesRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Rapid City, South Dakota, man was charged in federal district court with Receipt of Child Pornography and Possession of Child Pornography.
James McKinstry, age 73, was indicted on February 19, 2021. McKinstry appeared before U.S. Magistrate Judge Daneta Wollmann on March 24, 2021, and pleaded not guilty to the charges. The maximum penalty upon conviction is a mandatory minimum of 5 up to 20 years in federal prison and/or a $250,000 fine, up to lifetime supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to McKinstry receiving and possessing child pornography between September 2016 and July 2020 at Rapid City. The charges are merely an accusation and McKinstry is presumed innocent until and unless proven guilty.
The investigation is a joint effort between the South Dakota Division of Criminal Investigation, Department of Homeland Security, Rapid City Police Department, and the Pennington County Sheriff’s office. Assistant U.S. Attorney Sarah B. Collins is prosecuting the case.
McKinstry was released on conditions pending trial. A trial date has been set for June 1, 2021.
Drug Trafficking Group Sentenced for Distributing Heroin and Methamphetamine on the Wind River Reservation and in Fremont CountyRead the Press Release
Acting United States Attorney Bob Murray announced today that the United States District Court for the District of Wyoming has completed sentencing of three defendants charged in a drug trafficking case. ELIZABETH THERESA SMITH (38), from Riverton, KEVIN VANNDARA CHANTHAPANNHA (29), from Utah, and KENNETH BLAKE WOOD (28), from Lander, were all convicted and sentenced related to their involvement in a conspiracy to distribute heroin and methamphetamine.
While conducting investigations into the distribution of controlled substances in the Fremont County area, the Wyoming Division of Criminal Investigation identified Smith and Chanthapannha as supplying significant quantities of heroin and methamphetamine throughout Fremont County. On May 21, 2020, Smith and Chanthapannha were arrested during a joint operation involving the DCI and law enforcement officers with the Lander Police Department, the Fremont County Sheriff’s Office, the Bureau of Indian Affairs, and the Wind River Police Department.
The investigation revealed that Smith and Chanthapannha, both armed drug traffickers, were obtaining multiple ounces of heroin and as much as a pound of methamphetamine on a near monthly basis, for more than a year, from sources of supply in the Salt Lake City, Utah area and bringing those drugs back to Lander for distribution throughout Fremont County and the Wind River Reservation. Wood served as a key dealer for Smith and Chanthapannha and purchased from them on an almost daily basis.
Smith, Chanthapannha and Wood were initially charged by the Fremont County Attorney’s Office. After consultation with local prosecutors, the United States Attorney’s Office for the District of Wyoming undertook their federal prosecution. All three defendants entered guilty pleas in lieu of going to trial and were sentenced as follows: Smith received a total of 216 months’ imprisonment – 156 months for the drug conspiracy and a consecutive 60 months for possession of a firearm during the conspiracy; Chanthapannha received a total of 190 months’ imprisonment – 130 months for the drug conspiracy and a consecutive 60 months for possession of a firearm during the conspiracy; and Wood received 21 months’ imprisonment.
“It’s disheartening to see people like the defendants not only succumb to their addictions, but to then watch them profit from selling large quantities of meth and heroin to members of their community, ultimately destroying people’s lives,” said Acting United States Attorney Bob Murray. “We will not sit idly by and let criminals like Smith, Chanthapannha and Wood wreak havoc on the Fremont County communities and the Wind River Reservation by peddling drugs that cause a vicious cycle of addiction and crime. Instead, our office will remain steadfast in bringing these types of traffickers to justice and we will do so with the help or our state, local, and federal law enforcement partners.”
This crime was investigated by the Wyoming Division of Criminal Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Bureau of Indian Affairs, the Fremont County Sheriff’s Office, and the Lander Police Department. The United States was represented by Assistant United States Attorney Timothy W. Gist.
Black Hawk Man Sentenced for Illegal Possession of FirearmsRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Black Hawk, South Dakota, man convicted on two counts of Possession of a Firearm by a Prohibited Person was sentenced by Jeffrey L. Viken, District Judge.
Dana Greening, age 26, was sentenced on April 15, 2021, to 100 months in federal prison, followed by 3 years of supervised release, and was ordered to pay a $200 special assessment to the Federal Crime Victims Fund.
The charges relate to Greening, a previously convicted felon who is prohibited from possessing firearms, knowingly possessing a Glock, model 19, 9mm semi-automatic pistol and a Hi-Point, .40 caliber pistol, both with obliterated serial numbers. The Glock pistol was among the 24 firearms that were stolen by two other individuals from The Rooster sporting goods store in Rapid City in August 2018. During the investigation, 22 of the 24 stolen guns were recovered by law enforcement.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its 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 local communities to develop effective, locally-based strategies to reduce violent crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, South Dakota Department of Criminal Investigation, Rapid City Police Department, and the Pennington County Sheriff’s Office. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Greening was immediately remanded to the custody of the U.S. Marshals Service.
Aberdeen Man Charged with Distribution of Child PornographyRead the Press Release
Acting United States Attorney Dennis Holmes announced that an Aberdeen, South Dakota, man has been indicted by a federal grand jury for Distribution of Child Pornography.
Charles Chambers, age 36, was indicted on April 6, 2021. He appeared before U.S. Magistrate Judge William D. Gerdes on April 13, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 40 years in federal prison and/or a $250,000 fine, life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about February 23, 2021, Chambers knowingly distributed and attempted to distribute child pornography that has been mailed, shipped, and transported in or affecting interstate or foreign commerce by any means, including by computer.
The charge is merely an accusation and Chambers is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Aberdeen Police Department. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Chambers was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
16 April 2021
Winston-Salem NC Pain Management Company to Pay $789,292.95 to Resolve Allegations of False Claims for Urine Drug TestingRead the Press Release
GREENSBORO, N.C. - Preferred Pain Management & Spine Care, P.A. (PPM) and its owner, Dr. David Spivey, have agreed to pay $789,292.95 to resolve civil allegations that PPM violated the False Claims Act by billing Medicare, Medicaid, and other federal health care programs for medically unnecessary urine drug testing (UDT) between June 1, 2014 and May 24, 2017, announced Acting U.S. Attorney Sandra J. Hairston.
The United States alleged that PPM knowingly submitted or caused the submission of false claims to federal health care programs for presumptive and definitive UDT, in circumstances where such testing was not medically reasonable or necessary. Presumptive UDT are tests that screen for the presence of drugs, and definitive UDT are tests that identify the concentration of those drugs in a patient’s system. The government alleged that PPM and Spivey automatically ordered both presumptive and definitive UDT for all patients at their monthly visits, without conducting individualized determinations of need or risk profile.
The United States further contended that PPM billed Medicare for specimen validity testing, a quality control process used to analyze a urine specimen to ensure that it has not been diluted or adulterated. Since January 2014, Medicare’s guidance has been explicit that specimen validity testing should not be separately billed to Medicare. The United States asserted that PPM nonetheless submitted claims to Medicare for specimen validity testing throughout 2014 and 2015.
This settlement resolves allegations originally brought in a lawsuit filed by a whistleblower under the qui tam provisions of the False Claims Act, which allow private parties to bring suit on behalf of the government and to share in any recovery. The whistleblower will receive $118,911.12 as her share of the federal recovery in this case, excluding recovery for allegedly improper specimen validity testing separately identified by the United States. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can also be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
“Our District is committed to ensuring that federally-funded medical procedures are ordered based on each patient’s medical needs and not for the purpose of increasing a provider’s profits,” said Acting United States Attorney Sandra Hairston. “We will continue to identify and pursue providers who submit false claims that lead to unnecessary costs for taxpayer-funded health care programs.”
“It is vital that agencies work together to hold health care providers accountable for the misuse of taxpayer funds,” said Lori A. Ahlstrand, Regional Inspector General for Audit Services at the U.S. Department of Health and Human Services. “With the use of forensic tools, our auditors identified suspicious billing and partnered closely with our Office of Counsel and the United States Attorney’s Office.”
This case was handled by the U.S. Attorney’s Office for the Middle District of North Carolina with assistance from the U.S. Department of Health and Human Services, Office of Counsel to the Inspector General, as well as the North Carolina Attorney General’s Medicaid Investigations Unit, the Office of Personnel Management, Office of Inspector General, and the Department of Veterans Affairs, Office of Inspector General. The United States was represented by Assistant United States Attorney Cassie Crawford.
The lawsuit is captioned United States ex rel. Kovalich v. Preferred Pain Management & Spine Care, P.A. et al., No. 18-CV-44 (M.D.N.C.). The claims settled by this agreement are allegations only, and there has been no determination of liability. The Settlement Agreement is not an admission of liability or wrongdoing by PPM.
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Wareham Woman Indicted for Stealing Social Security BenefitsRead the Press Release
BOSTON – A Wareham woman was arrested on Wednesday, April 14, 2021 for stealing Social Security benefits.
Erika Cyr-Camara, 46, was indicted on one count of theft of public funds. She was released on conditions after making an initial appearance in federal court in Boston.
As alleged in the indictment, Cyr-Camara stole approximately $49, 275 in Social Security benefits from March 2016 through July 2019.
The charge of theft of public funds provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Tonya Perkins, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division made the announcement. Special Assistant U.S. Attorney Karen Burzycki of Mendell’s Major Crimes Unit is prosecuting the case.
Wareham Man Pleads Guilty to Possession of Child PornographyRead the Press Release
BOSTON – A Wareham man pleaded guilty in federal court in Boston yesterday to possessing child pornography.
David St. Jacques, 56, pleaded guilty to one count of possession of child pornography. U.S. District Court Judge Patti B. Saris scheduled sentencing for Sept. 24, 2021. St. Jacques was charged by criminal complaint and has been in custody since his arrest in September 2020. St. Jacques was subsequently indicted by a federal grand jury in November 2020.
A search of St. Jacques’s residence on Sept. 29, 2020 resulted in the seizure of a computer, three phones and one thumb drive. St Jacques destroyed at least two other drives and attempted to destroy one of his phones when agents arrived to execute the warrant. St. Jacques admitted to exchanging child pornography with other individuals on various chatting applications, and child pornography was discovered during the forensic review of devices that were still intact.
In March 2009, St. Jacques was convicted in Plymouth County Superior Court of several counts of dissemination and possession of child pornography.
Due to the prior felony conviction, St. Jacques faces a mandatory minimum sentence of 10 years and up to 20 years in prison, five years and up to life of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement. Assistant U.S. Attorney Anne Paruti, Mendell’s Project Safe Childhood Coordinator and Deputy Chief of the Major Crimes Unit, is prosecuting the case.
The case is 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/.
Virginia Beach Woman Sentenced for Defrauding Nearly 1,700 Victims in $1 Million Small Business Loan ScamRead the Press Release
NORFOLK, Va. – A Virginia Beach woman was sentenced today to five years in prison for her role in an internet-based loan scam that defrauded nearly 1,700 owners and prospective owners of small businesses out of $1,076,000.
According to court documents, Terri Beth Miller, 53, along with her husband, Ronald A. Smith, 60, set up an internet-based company, Business Development Group, that offered, in exchange for an advance fee, assistance to individuals in preparing applications to obtain loans guaranteed by the Small Business Administration (SBA). From August 2012 through February 2018, Miller and Smith solicited potential customers on the basis of false, fraudulent, and misleading statements and representations, including that the company was headquartered at the Trump Building in New York City with additional offices in Las Vegas, that it was affiliated with the SBA, that it had favorable relationships with banks across the nation, and had assisted well-known large companies in obtaining SBA loans. They offered a money-back guarantee, but in fact employed various fraudulent methods to deny refunds. Miller ran the day-to-day operations of the company with the knowledge that it was a fraudulent enterprise.
“Miller and Smith’s brazen scheme resulted in over a million dollars in losses and inflicted serious financial and emotional hardship to many of their nearly 1,700 victims,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “For those who seek to deprive our hardworking community members from receiving crucial financial assistance, you will be held accountable in EDVA and brought to justice.”
Miller and Smith solicited 1,669 customers, who paid an aggregate sum of about $1,076,000 in advance fees. Most of these customers did not receive an SBA-guaranteed loan.
Smith and Miller were previously convicted of criminal conduct before they executed this scheme. In 2006, Smith was prosecuted in the Eastern District of Virginia for nearly the identical advance-fee scam. In 2008, Miller was prosecuted in the Western District of Pennsylvania for malicious destruction of property by fire after she set fire to a business to obtain the insurance proceeds.
Miller pleaded guilty on October 23, 2020 to wire fraud and engaging in monetary transactions in criminally derived property. On April 9, 2021, Smith was sentenced to 10 years in prison for his role in the advance-fee scheme and other fraudulent conduct relating to COVID-19 unemployment benefits.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office; Derek Pickle, Special Agent in Charge of the Washington, DC Regional Office of the U.S. Department of Labor, Office of Inspector General; and Amaleka McCall-Brathwaite, Special Agent in Charge of the SBA’s Office of Inspector General, Eastern Region, made the announcement after sentencing by U.S. District Judge John A. Gibney, Jr.
The investigation was jointly conducted by the FBI, U.S. Postal Inspection Service, Small Business Administration, and Department of Labor Office of Inspector General.
Assistant U.S. Attorney Alan M. Salsbury prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:20-cr-69.
Victoria Pease Sentenced for Distributing HeroinRead the Press Release
The United States Attorney for the District of Vermont announced that Victoria Pease, 32, was sentenced today in United States District Court in Burlington to time served following her guilty plea to a charge that she distributed heroin laced with fentanyl. U.S. District Judge Christina Reiss ordered that Pease immediately begin serving a three-year term of supervised release. Pease must also be on location monitoring for six months.
Last year, a federal grand jury charged Pease with distributing heroin in Brattleboro on March 12, 2020. Pease was arrested on the charge in August and has been detained since her arrest. Pease had a prior federal felony drug conviction sustained in 2017.
This case was investigated by the Vermont Drug Task Force.
Pease is represented by Katina Francis, Esq. The prosecutor is Assistant U.S. Attorney Gregory Waples.
U.S. Attorney’s Office and Partners Invite the Public to Observe National Crime Victims’ Rights Week, April 18-24Read the Press Release
The U.S. Attorney’s Office and our partners at Tulsa Metropolitan Ministry, Tulsa County Sheriff’s Office, Tulsa Crime Stoppers, and the Family Safety Center join communities nationwide in observing National Crime Victims’ Rights Week, April 18-24, 2021, announced Acting U.S. Attorney Clint Johnson. The week promotes victims' rights, celebrates progress made in the field, and honors crime victims. This year’s theme is “Support Victims. Build Trust. Engage Communities”.
“The U.S. Attorney’s Office for the Northern District of Oklahoma stands with victims of crime and their families. We also recognize the unwavering support and vital work that our law enforcement and community partners perform every day to secure victims’ rights and support survivors,” said Acting U.S. Attorney Clint Johnson. “This week my office and our partners invite the public to join us as we encourage and show support to victims of crime."
* Throughout the week, the public is invited to join the U.S. Attorney’s Office and our partners virtually as we observe National Crime Victims’ Rights Week on the U.S. Attorney’s Office’s social media sites (FB: @usaondok; Twitter: @USAO_NDOK). Starting Sunday, April 18, Acting U.S. Attorney Clint Johnson will kick off the week-long virtual awareness event. Also, Tulsa Mayor GT Bynum will share a proclamation in support of crime victims. Throughout the week, messages of support and resource information will be shared by law enforcement, victim services agencies, and faith-based organizations from northeastern Oklahoma. The public is encouraged to share and comment in support of victims.
* Sunday at dusk, also look for the sky to be illuminated pink, purple, or yellow by several Tulsa businesses in honor of victims of crime. Businesses include ONEOK, ONE GAS, Oklahomans for Equality, and KJRH Ch. 2. Other businesses are also welcome to join in support.
* Also, an in-person public event, “A Community Day of Hope,” will be held Friday, April 23, from 10 am to 2 pm at Tulsa’s Promenade Mall west parking lot, (4107 South Yale Ave.) The event will be held outside due to COVID-19 considerations. Approximately 35 law enforcement, victim services and community agencies will share public safety and victim resource information. The Tulsa Fire Department will also distribute 200 backpacks to the public.
* Nationally, the Justice Department’s Office for Victims of Crime recognizes individuals and organizations that demonstrate outstanding service in supporting victims. The 2021 National Crime Victims’ Service Awards Ceremony will be held virtually on April 23, 2021, from 3:00 to 4:30 pm eastern time. Learn more and register to watch the ceremony live. #NCVRW2021 https://go.usa.gov/xH3zv
Some 3.3 million Americans age 12 and older were victims of violent crime in 2018, according to the National Crime Victimization Survey. The Office for Victims of Crime (OVC), part of the Justice Department’s Office of Justice Programs, supports more than 7,000 local victim assistance programs and victim compensation programs in every state and U.S. territory. Funds for these programs come from the Crime Victims Fund, which is made up of federal criminal fines, penalties and bond forfeitures.
Ronald Reagan proclaimed the first Victims’ Rights Week in 1981, putting crime victims' rights, needs, and concerns in a prominent spot on the American agenda. He also established the President's Task Force on Victims of Crime, which laid the groundwork for a national network of services and legal safeguards for crime victims.
Agencies participating in “A Community Day of Hope” on April 23 at Tulsa’s Promenade Mall include:
U.S. Attorney’s Office for the Northern District of Oklahoma
Tulsa Crime Stoppers
Tulsa Metropolitan Ministry
Tulsa County Sheriff’s Office
Family Safety Center
Counseling & Recovery Services of Oklahoma
AAA
American Dream Center
Muscogee (Creek) Nation Family Violence Prevention Program
CASA
Oklahoma Department of Human Services - Adult Protective Services
Tulsa Fire Department
Traffic Safety Division/Oklahoma County Sheriff's Office/Oklahoma Highway Safety Office
FBI
Sand Springs Police Department
Tulsa Police Department Victim Witness Unit
Tulsa Police Department Community Engagement Unit
LIFE Senior Services
Oklahoma Highway Patrol
The Coffee Bunker
Surayya Anne Foundation Tulsa County District Attorney’s Office/Victim Witness Center
Wyandotte Nation Family Violence Prevention Program
SANE Program/Forensic Nursing
211 Eastern Oklahoma, Community Service Council
Marsy's Law of Oklahoma
Camp Hope
Legal Aid Services of Oklahoma
Cherokee Nation One Fire Victim Services
The Tristesse Grief Center
Equality Center of Oklahoma
YWCA
Parkside Psychiatric Hospital & Clinic
Ascension St. John Medical Center
DVIS (Domestic Violence Intervention Services)
U.S. Attorney’s Office Commemorates National Crime Victims’ Rights Week, April 18-24, 2021Read the Press Release
RALEIGH, N.C. – The United States Attorney’s Office, in commemoration of National Crime Victims’ Rights Week (NCVRW), April 18–24, 2021, is hosting a Virtual Ceremony to raise awareness about crime victims’ issues and rights and introduce the community to the important resources and services available.
The faces of crime victims are those of our family, friends, neighbors, and community members. According to the most recent National Crime Victimization Survey from the Bureau of Justice Statistics, 1.2 million people were victims of violent crime in 2019, a significant decrease from the year before. Now is the time to redouble our efforts so that victimization continues to decline, and fewer and fewer North Carolinians become victims of crime.
The United States Attorney’s Office will commemorate the advancement of victims’ rights and highlight issues surrounding victimization by holding a Virtual Ceremony on Tuesday, April 20, 2021 at 11:00 am. This program is co-hosted by the other two United States Attorney’s Offices in North Carolina, the Victim Services Interagency Council of North Carolina, the North Carolina Department of Justice, Durham, and Raleigh Police Departments. Our keynote speaker is Ms. Deanna Walters, a survivor of intimate partner violence whose story was featured on the 2014 award winning documentary titled “Private Violence.” If you would like to register for this training use this link: https://usao.webex.com/usao/onstage/g.php?MTID=e0bb75a52a534a276abd6c3647b5a5d67.
The Office for Victims of Crime (OVC) leads communities throughout the country in their annual observances of NCVRW by promoting victims’ rights and honoring crime victims and those who advocate on their behalf. This year’s theme— Support Victims. Build Trust. Engage Communities. —celebrates the contributions that we all can make toward building trust in our community’s capacity to support the healing journeys of crime victims. Trust is collective as well as individual, so we are honoring both the individual victims in our community and the groups engaged in building networks of understanding and support.
Acting United States Attorney G. Norman Acker, III stated: “Together we can build a society of healing and hope if we come together to support, protect, and restore victims and survivors who suffer harm at the hands of others.”
For additional information about this year’s NCVRW and how to assist victims in your own community, please visit the United States Attorney’s Office website. For more ideas on how to support victims of crime, visit OVC’s website at www.ovc.ojp.gov.
Two Maple Heights men charged with drug trafficking conspiracyRead the Press Release
Acting U.S. Attorney Bridget M. Brennan announced that a federal grand jury sitting in Cleveland returned a six-count indictment charging Anthony L. Anderson, 45, and Eben D. Anderson, 38, both of Maple Heights, Ohio, with conspiracy to distribute cocaine, crack, fentanyl and methamphetamines in the Cleveland area.
Both Anthony and Eben Anderson are charged with conspiracy to possess with intent to distribute cocaine, crack, fentanyl and methamphetamine; possession with intent to distribute cocaine; possession with intent to distribute cocaine base; possession with intent to distribute fentanyl and possession with intent to distribute methamphetamine. In addition, Defendant Eben Anderson was charged as a felon in possession of a firearm.
“Stopping the flow of drugs and drug manufacturing equipment at our borders is an important part of curbing the flow of illegal drugs to and within our communities,” said Acting U.S. Attorney Bridget M. Brennan. “We are grateful for our law enforcement partners’ sustained efforts to combat illegal narcotics trafficking.”
“International criminal organizations working with their local contacts have once again tried to exploit U.S. borders for profit,” said Vance Callender, special agent in charge, HSI Detroit. “HSI specializes in investigating cross-border related crimes and brings unique national and international resources to bear against these types of offenders.”
Court records state that in January of 2021, a parcel was intercepted and searched by Customs and Border Protection (CBP) officers that was allegedly found to contain two pill press die sets. The affidavit in support of the criminal complaint states that the importation of pill press die sets is prohibited as they are considered drug paraphernalia. Homeland Security Investigations (HSI) Cleveland was subsequently contacted by the CBP, and a controlled delivery of the parcel was arranged and executed.
After the controlled delivery was executed, law enforcement officers carried out a search warrant at the address and located both Defendants inside the residence. A search of the home was conducted, and officers recovered approximately 1.34 kilograms of cocaine, 136 grams of fentanyl, 324 grams of crystal methamphetamine, a high-speed pill press, pill press dies, bulk currency and five firearms.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, Defendant’s sentence will be determined by the Court after review of factors unique to this case, including Defendant’s prior criminal record, if any, Defendant’s role in the offense, and the characteristics of the violation.
In all cases, the sentence will not exceed the statutory maximum, and in most cases, it will be less than the maximum.
This investigation was conducted by Homeland Security Investigations (HSI) and is being prosecuted by Assistant U.S. Attorney Patrick P. Burke.
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Tulare County Man Sentenced to 42 Months in Prison for Methamphetamine ConspiracyRead the Press Release
FRESNO, Calif. — Eleuterio Rosario Martinez, 49, of Porterville, was sentenced today by U.S. District Judge Dale A. Drozd to 42 months in prison, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, an investigation into drug trafficking primarily in the Tulare County area led to the arrest and indictment of Martinez and 10 others for a conspiracy to distribute methamphetamine between June 7, 2018, and Jan. 19, 2019. Martinez delivered the methamphetamine for the conspiracy. During a one-month period of the conspiracy, Martinez made approximately 258 deliveries of methamphetamine at the direction of co-defendant Manuel Delgado-Montenegro, 48, of Porterville. The deliveries were in quantities of 1 ounce or less and totaled at least 3.7 pounds of methamphetamine.
On Oct. 29, 2020, Hector Antonio Ochoa Ruiz, 39, of Strathmore, pleaded guilty to his participation in the conspiracy and was sentenced on Feb. 19 to seven and a half years in prison. Charges are pending against Delgado-Montenegro and the other eight defendants. If convicted, the defendants face a maximum penalty of life in prison and a fine of up to $10 million. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of an investigation by the Drug Enforcement Administration with assistance from the Porterville Police Department. Assistant U.S. Attorneys Kathleen A. Servatius and Katherine E. Schuh are prosecuting the case.
Tifton, Georgia, Bank Robber Sentenced to PrisonRead the Press Release
ALBANY, Ga. – A man who robbed a Tifton bank in 2018, telling the bank clerk he was in possession of a bomb, has been sentenced to federal prison without parole for his crime, said Peter D. Leary, the Acting U.S. Attorney for the Middle District of Georgia.
Randy Angelo Hill, 35, of Tifton, was sentenced to serve 72 months in prison by U.S. District Judge Louis Sands on Wednesday, April 14. Hill previously pleaded guilty to one count bank robbery. There is no parole in the federal system.
“The penalty is federal prison time for individuals who choose to commit violent acts of crime that terrorize our citizens,” said Acting U.S. Attorney Leary. “I want to thank our law enforcement partners at the federal and local levels who worked seamlessly to quickly arrest the defendant and restore peace to the Tifton community.”
“Innocent citizens terrorized by acts like this never fully recover from the trauma it causes,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The best we can do for them is to make sure the individuals who cause the trauma are held accountable to the fullest extent of the law. That was only possible in this case because of our partnerships and the quick reaction of the Tifton Police Department and the Tift County Sheriff Office.”
According to the facts he admitted under oath before the Court, Hill robbed the South Georgia Banking Company located at 725 West 2nd Street on October 2, 2018. Undisguised, Hill dropped a plastic bag over the teller counter and told an employee, “This is a robbery. I have a bomb. Put money in the bag. I will blow everybody up here.” Hill fled on foot with stolen cash and was apprehended by Tifton Police that day.
This case was investigated by the FBI, the Tifton Police Department and the Tift County Sheriff’s Office. Criminal Division Chief Michael Solis is prosecuting the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Thirteen Drug Traffickers Sentenced to More than 235 Years Combined in Federal PrisonRead the Press Release
Thirteen individuals with ties to a Mexican drug cartel have been sentenced to federal prison following an investigation led by the Drug Enforcement Administration, announced Acting U.S. Attorney Prerak Shah.
The thirteenth defendant, 30-year-old Jorge Llanas of Dallas, Texas, was sentenced Thursday by U.S. District Judge Jane J. Boyle to a total of 28 years confinement on charges of conspiracy to possess with intent to distribute cocaine and conspiracy to launder monetary instruments.
Each defendant charged has pleaded guilty and sentenced to their respective roles in a drug distribution conspiracy and money laundering scheme that operated in North Texas, Mexico, and elsewhere from March of 2018 to August of 2018. These defendants were associates or members of a Dallas based drug trafficking organization with ties to a cartel in Mexico associated with the Zeta Cartel.
During the investigation, agents seized more than 55 kilos of cocaine with a wholesale value of $1,457,500, 92 kilos of methamphetamine with a wholesale value of $570,400, and 822.8 pounds of marijuana. Cash seizures in this case totaled $145,229.
According to court documents, some defendant’s in this case imported the cocaine and methamphetamine from a Mexican based drug cartel with prior ties to Los Zetas. Large quantities of methamphetamine and marijuana were then stored at an apartment located in the Dallas Design District. The defendants would sell drugs locally throughout the Dallas area before transporting the drug proceeds to other areas of the country. The money from the sale of these controlled substances was then sent back to cocaine and methamphetamine suppliers in Mexico.
“We will not allow drug traffickers, members or their affiliates to bring their nefarious and deadly activities into our neighborhoods,” said Acting U.S. Attorney Shah. “Working with our state and local partners and using the tools of our Organized Crime Drug Enforcement Task Forces, we are determined to dismantle drug trafficking networks.”
“For years, Los Zetas, and its successor, El Cártel del Noreste, have tried to use the Dallas-Fort Worth metroplex as a hub to distribute drugs throughout the United States,” stated DEA Dallas Special Agent in Charge, Eduardo A. Chávez. “These convictions and prison terms should send a strong message to others that drug trafficking and its related violent crimes are not welcome here. DEA Dallas and our partners at the Texoma HIDTA as well as the Organized Crime Drug Enforcement Task Forces, will continue to identify, disrupt, and destroy, these criminal organizations that choose to distribute drugs to our streets.”
The defendants sentenced in connection with this case are as follows:
- Chrystian Hernandez, 23, Dallas, Texas
Sentenced on October 8, 2020 to 10 years in federal prison for conspiring to possess with intent to distribute methamphetamine and conspiring to launder monetary instruments.
- Veronica Angeles, 51, Fort Worth, Texas
Sentenced on September 28, 2020 to 97 months in federal prison for conspiring to possess with intent to distribute cocaine.
- Jose Sanchez, 36, of Little Elm, Texas
Sentenced on June 25, 2020 to 151 months in federal prison for conspiracy to launder monetary instruments and conspiring to possess with intent to distribute cocaine.
- Cesar Ortiz, 40, Chihuahua, Mexico
Sentenced on September 8, 2020 to 46 months in federal prison for conspiring to possess with intent to distribute cocaine and conspiring to launder monetary instruments.
- Jakovan Lewis, 39, Desoto, Texas
Sentenced on September 2, 2020 to 70 months in federal prison for conspiring to possess with intent to distribute cocaine.
- Roberto Rodriguez Salinas, 39, Nuevo Laredo, Tamaulipas, Mexico
Sentenced on June 12, 2020 to 57 months in federal prison for conspiracy to launder monetary instruments and conspiring to possess with intent to distribute.
- Marcus Morones, 58, Dallas, Texas
Sentenced 0n May 6, 2020 to 41 months in federal prison for conspiracy to possess with intent to distribute methamphetamine and conspiracy to launder monetary instruments.
- Jose Guadalupe Silva, 32, Dallas, Texas
Sentenced on August 23, 2019, to 210 months in federal prison for conspiring to possess with intent to distribute cocaine.
- Moris Franco, 34, Dallas, Texas
Sentenced on March 3, 2021 to 135 months in federal prison for conspiracy to possess with intent to distribute cocaine.
- Daniel Don Juan, 30, Cleburne, Texas
Sentenced on March 16, 2021 to 20 years in federal prison for conspiracy to possess with intent to distribute cocaine and conspiracy to launder monetary instruments.
- Tomas Salinas, 51, Dallas, Texas
Sentenced on March 17, 2021 to 210 months in federal prison for conspiracy to launder monetary instruments and conspiracy to possess with intent to distribute cocaine.
- Pete Torres, 31, Dallas, Texas
Sentenced on March 25, 2021 to 46 months in federal prison for conspiracy to launder monetary instruments.
All of the defendants arrested have pleaded guilty and have been sentenced and one defendant remains a fugitive.
The case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) Investigation and was investigated by a Drug Enforcement Administration High Intensity Drug Trafficking Area (DEA HIDTA) task force. DEA, the Dallas Police Department, the Dallas County Sheriff’s Office, Irving Police Department, Richardson Police Department, and Carrollton Police Department all assisted in the investigation of this case.
The OCDETF program was established in 1982 in order to attack and reduce the supply of illegal drugs entering the United States and to diminish violence and other criminal activity associated with the drug trade. The OCDETF program works with federal, state, and local law enforcement agencies to identify, disrupt, and dismantle, drug traffickers and drug trafficking networks. Additional information about the OCDETF Program can be found here.
Assistant U.S. Attorneys George Leal and Rachael Jones were in charge of these prosecutions.
Texas Man Pleads Guilty to Iowa-Minnesota Meth ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine pled guilty April 15, 2021, in federal court in Sioux City. Robert Board, 45, originally from Brownsville, Texas, more recently living in Medalia, Minnesota, was convicted of conspiracy to distribute methamphetamine.
At the plea hearing, Board admitted that from July 2019 through June 2020, he was involved in the distribution of more than 500 grams of mixed methamphetamine and more than 50 grams of pure methamphetamine. In July and August 2019, Board was involved in the distribution of over one pound of pure methamphetamine to an informant in controlled drug operations with law enforcement. Board also admitted to obtaining at least 12 kilograms of methamphetamine and at least 73 pounds of marijuana from sources in California and Washington to transport to Minnesota and Iowa for further distribution.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Board was taken into United States Marshal custody and will remain in custody pending sentencing. Board faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, and at least 5 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-4065. Follow us on Twitter @USAO_NDIA.
Ten Arrested on Federal Drug Trafficking ChargesRead the Press Release
Jackson, Miss. –Ten individuals have been arrested pursuant to federal indictments unsealed today as part of an ongoing Organized Crime Drug Enforcement Task Force (OCDETF) operation fighting drug trafficking in the Southern District of Mississippi, announced Acting U.S. Attorney Darren LaMarca, Brad L. Byerley, Special Agent in Charge of the Drug Enforcement Administration (DEA), Jack P. Stanton, Acting Special Agent in Charge of Homeland Security Investigations in New Orleans, Colonel Steven Maxwell, Director of the Mississippi Bureau of Narcotics, and Scott County Sheriff Mike Lee.
OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
- John Moore, 53, of Lawrence, MS, is charged with one count of conspiracy and three counts of possession with intent to distribute 100 grams or more of heroin. He he faces a maximum sentence of 40 years in prison and a $5,000,000 fine.
- Michael Ledbetter, 41, of Lake, MS, is charged with two counts of conspiracy and four counts of possession with intent to distribute 50 grams or more of methamphetamine. He faces a maximum sentence of life imprisonment and a $10,000,000 fine.
- Danielle Ledbetter, 47, and Shameika Johnson, 29, both of Lake, MS, are each charged with conspiracy to possess with intent to distribute 50 grams or more of methamphetamine, and each faces a maximum sentence of life imprisonment and a $10,000,000 fine.
- Nicholas Smith, 26, of Forest, MS, and John Purvis, Jr., 51, of Morton, MS, are each charged with one count of conspiracy and one count of possession with intent to distribute five grams or more of methamphetamine. They each face a maximum sentence of 40 years imprisonment and a $5,000,000 fine.
- Malinda Pope, 42, of Forest, MS, is charged with one count of conspiracy and one count of possession with intent to distribute 50 grams or more of methamphetamine. Pope faces a maximum sentence of life imprisonment and a $10,000,000 fine.
- Lorenzo Sutton, 41, of Jackson, MS, is charged with one count of conspiracy and two counts of possession with intent to distribute 50 grams or more of methamphetamine. Sutton faces a maximum sentence of life imprisonment and a $10,000,000 fine.
- Jermaine Gray, 39, of Forest, MS, is charged with one count of using a telephone in causing and facilitating a drug crime. Gray faces a maximum sentence of four years imprisonment and a $250,000 fine.
- Erica Rhodes, 32, currently in the custody of the Mississippi Department of Corrections, is charged with one count of conspiracy, one count of possession with intent to distribute 50 grams or more of methamphetamine, and one count of possession with intent to distribute a mixture or substance containing a detectable amount of methamphetamine. Rhodes faces a maximum sentence of life imprisonment and a $10,000,000 fine.
John Moore, Michael Ledbetter, Danielle Ledbetter, Shameika Johnson, Nicholas Smith, John Purvis, Jr., and Malinda Pope are scheduled to appear before U.S. Magistrate Judge F. Keith Ball on Monday, April 19, 2021, at 1:30 p.m. for arraignment.
Lorenzo Sutton and Jermaine Gray are scheduled to appear before U.S. Magistrate Judge LaKeysha Greer Isaac on Tuesday, April 20, 2021, at 10:00 a.m. for arraignment. The arraignment date for Erica Rhodes has not been set as of the time of this release.
These cases are prosecuted by Assistant United States Attorney Carla J. Clark. The cases were investigated as part of an ongoing OCDETF partnership between the Drug Enforcement Administration, Homeland Security Investigations, the Department of Public Safety including both the Mississippi Bureau of Narcotics and the Mississippi Highway Patrol, and the Scott County Sheriff’s Office, with the assistance of the Jackson High Intensity Drug Trafficking Area Task Force (HIDTA), Mississippi Attorney General’s Office, the Rankin County Sheriff’s Office, Forest Police Department, Pelahatchie Police Department, the Hinds County Sheriff’s Office, the Jackson Police Department, the State of Mississippi District Attorney’s Offices for the Eighth and Twentieth Judicial Districts, and the Drug Court for the Eighth Judicial District.
The public is reminded that an indictment is merely a charge and should not be considered as evidence of guilt. Every defendant is presumed innocent until proven guilty in a court of law.
Southington Man Charged with Possessing Millions of Child Sex Abuse ImagesRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, and William S. Walker, Acting Special Agent in Charge, Homeland Security Investigations (HSI), Boston, today announced that a federal grand jury in New Haven has returned an indictment charging RICHARD E. SMITH, 65, of Southington, with receipt and possession of child pornography.
The indictment was returned on March 29. Smith appeared yesterday via videoconference before U.S. Magistrate Judge Robert A. Richardson and pleaded not guilty to the charge. Smith has been detained since his arrest on a criminal complaint on October 1, 2020.
As alleged in court documents, on October 1, 2020, HSI conducted a court-authorized search of Smith’s Southington residence. At the time of the search, Smith’s computer was running and connected to a website dedicated to child pornography, and one of Smith’s four computer monitors displayed a Microsoft Excel spreadsheet containing numerous child pornography filenames and internet hyperlinks. Investigators seized Smith’s computer and electronic devices. Forensic analysis of the seized devices revealed millions of images and videos depicting the sexual abuse of children.
If convicted of the charges, Smith faces a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years.
Acting U.S. Attorney Boyle stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by Homeland Security Investigations with the assistance of the Southington Police Department. The case is being prosecuted by Assistant U.S. Attorney Patrick J. Doherty through the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation.
For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Six Individuals Sentenced for Nearly $8 Million Health Care Fraud Involving Northern Virginia PharmaciesRead the Press Release
ALEXANDRIA, Va. – The last of six defendants were sentenced today for participating in multiple health care fraud conspiracies involving kickbacks and fraudulent billings that resulted in nearly $8 million in losses to federal, state, and private health care benefit programs.
“Health insurance programs, and the American public, rely on pharmacy professionals to safeguard the system from harmful kickback schemes, and to make truthful representations about the services they provide,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “The defendants betrayed their duties as health care professionals, performed illegal kickbacks, and defrauded essential benefit programs out of millions of dollars. EDVA is committed to prosecuting those who exploit taxpayers and engage in the unacceptable fleecing of these important public institutions and programs.”
According to court documents, Mohamed Abdalla, 48, of Allendale, New Jersey, owned multiple pharmacies in northern Virginia, including Medex Health Pharmacy in Falls Church and Royal Care Pharmacy in Fairfax. As the owner of these pharmacies, Abdalla oversaw and executed two related schemes to defraud health care benefit programs. One scheme involved the payment or receipt of unlawful kickbacks for expensive drugs and devices in violation of the federal Anti-Kickback Statute. Another scheme involved billing federal, state, and private health care benefit programs for numerous expensive drugs and devices that were not medically necessary, not prescribed by a physician, or were not received by a beneficiary.
“Health care professionals who use fraud and deceit to steal funds and scam the system will be held accountable for their actions,” said James A. Dawson, Special Agent in Charge of the FBI Washington Field Office Criminal Division. “These individuals, who are supposed to be trusted by the American public, were fueled by greed and their own interests to exploit their profession and pad their pockets. The FBI and our law enforcement partners will continue to root out fraud in the health care industry and protect the public from their illegal schemes.”
From at least January 2014 through at least the end of 2018, Abdalla participated in several schemes to pay kickbacks for the referral of prescriptions for compound medications and for an expensive naloxone auto-injector device used to treat opioid emergencies. Abdalla and his conspirators then billed federal health care benefit programs, including Medicare and TRICARE, which is the Department of Defense’s health care program, in violation of the Anti-Kickback Statute. Abdalla obtained over $2 million from these schemes.
“This investigation is a prime example of how kickback schemes undermine the integrity of the U.S. military healthcare system, and degrade the acquisition process,” said Christopher Dillard, Special Agent in Charge of the DCIS Mid-Atlantic Field Office. “These sentencings should send a clear warning that DCIS and its investigative partners will vigorously pursue fraudsters intent on lining their pockets with tax dollars earmarked for the care of our Warfighters.”
In addition, Abdalla and employees at his pharmacies conspired to defraud federal, state, and private health care benefit programs by engaging in numerous other schemes, including billing for prescriptions in the names of themselves, family members, and other pharmacy employees that were not medically necessary and/or not prescribed by a licensed physician, and billing for prescriptions for pharmacy customers that were never filled. These additional schemes resulted in a loss to these health care benefit programs of approximately $6,216,434.39.
“Health care providers are trusted to recommend and provide prescription medications that their patients need,” said Maureen R. Dixon, Special Agent in Charge, HHS Office of Inspector General, Philadelphia Regional Office. “Today’s sentencing shows individuals who commit fraud and pay kickbacks will be held responsible for their illegal actions. HHS-OIG and our law enforcement partners will continue to work together to investigate allegations of health care fraud and ensure the integrity of Federal programs.”
On March 19, Abdalla was sentenced to four years in prison for his role in the conspiracies. Five additional defendants have pleaded guilty and been sentenced for their respective roles in conspiring to pay kickbacks and defraud health insurance providers:
Onkur Lal, 30, of Alexandria, worked for Abdalla as a pharmacy technician and pharmacy intern before ultimately working as a licensed pharmacist. From approximately January 2014 to April 2019, Lal engaged in numerous health care fraud schemes resulting in millions of dollars in losses. At times, Lal used his specialized knowledge to circumvent audits and investigations by third parties, who were investigating fraud on behalf of health benefit programs. On March 5, Lal was sentenced to three years in prison.
Mohammed Tariq Amin, 35, of Fairfax, worked for Abdalla as a pharmacy technician and was the general manager of Royal Care for almost two years. From approximately January 2015 to November 2018, Amin conspired with Abdalla and others to pay kickbacks for the referral of prescriptions of an expensive naloxone auto-injector device. He also engaged in numerous other schemes that defrauded health care benefit programs and used his specialized knowledge to circumvent audits and investigations. Amin was sentenced today to two years in prison.
Daniel Tyler Walker, 51, of Lewes, Delaware, worked as a pharmaceutical sales specialist for a pharmaceutical company and was responsible for marketing an expensive naloxone auto-injector device used to treat opioid emergencies. From approximately August 2015 to April 2017, Walker accepted kickbacks from Abdalla and Amin for the referral of prescriptions for this device, which were then billed to federal health care programs. Walker was sentenced today to 15 months in prison.
Seth Michael Myers, 53, of Crystal Lake, Illinois, from approximately spring of 2013 to mid-2016, conspired with Abdalla, another individual who was a licensed physician, and others to accept kickbacks for the referral of expensive compound medications that were billed to federal health care benefit programs. A company that was created by Myers and the licensed physician was paid over $2.5 million during the scheme. On March 19, Myers was sentenced to two years in prison.
Michael Beatty, 53, of Finksburg, Maryland, worked as a licensed pharmacist at Fallston Pharmacy in Fallston, Maryland. From approximately the summer of 2013 to the fall of 2014, Beatty conspired with Myers and a licensed physician to pay kickbacks for the referral of expensive compound medications, which were billed to federal health care benefit programs. On March 5, Beatty was sentenced to one year and one day in prison.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; James A. Dawson, Special Agent in Charge of the FBI’s Washington Field Office Criminal Division; Chris Dillard, Special Agent in Charge for the Defense Criminal Investigative Service’s Mid-Atlantic Field Office; Maureen R. Dixon, Special Agent in Charge, HHS Office of Inspector General, Philadelphia Regional Office; Norbert E. Vint, Deputy Inspector General Performing the Duties of the Inspector General, U.S. Office of Personnel Management, Office of the Inspector General; and Mark S. McCormack, Special Agent in Charge, FDA Office of Criminal Investigations, Metro Washington Field Office, made the announcement after sentencing by Senior U.S. District Judge Claude M. Hilton.
Assistant U.S. Attorneys Monika Moore, Carina Cuellar, and Jamar Walker prosecuted the cases.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-250.
Sioux Falls Man Charged with Failure to Register as a Sex OffenderRead the Press Release
Acting United States Attorney Dennis Holmes announced that a Sioux Falls, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Myles Feather Earring, age 37, was indicted on April 6, 2021. He appeared before U.S. Magistrate Judge Veronica L. Duffy on April 15, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, five years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that Feather Earring, who had previously been convicted of a sex crime and required to register under the Sex Offender Registration and Notification Act, failed to do so between January 7, 2021, and February 9, 2021.
The charge is merely an accusation and Feather Earring is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Feather Earring was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Sioux City Man Pleads Guilty to Smuggling Silencers into the United StatesRead the Press Release
A Sioux City man who smuggled goods into the United States pled guilty April 15, 2021, in federal court in Sioux City.
Lloyd Clark, age 72, from Sioux City, Iowa was convicted of smuggling goods into the United States. In a plea agreement, Clark admitted in October 2020, Customs and Border Protection seized parcels coming into the United States from China, one of which was falsely labeled as “spiral tube” and addressed to Clark at his residence in Sioux City. On November 12, 2020, law enforcement seized 7 silencers, 1 modified rifle with an installed silencer, and 1 WWII-era machine gun from Clark’s home. Clark did not have legal authority to possess the silencers and firearms.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Clark remains free on bond pending sentencing. Clark faces a possible maximum sentence of 20 years’ imprisonment, a $250,000 fine, and five years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Ron Timmons and was investigated by Homeland Security Investigations, the United States Postal Inspection Service, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-4030.
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Shreveport Man Convicted of Firearms Charge Sentenced in Federal CourtRead the Press Release
SHREVEPORT, La. - Acting United States Attorney Alexander C. Van Hook announced that Jawon Montray Grant, 32, of Shreveport, has been sentenced by United States District Judge Elizabeth E. Foote to 42 months (3 years, 6 months) in prison, followed by 3 years of supervised release, for possession of firearm by a convicted felon. Grant pleaded guilty to the charge on November 19, 2020.
According to information presented to the court at the guilty plea hearing, Louisiana State Police troopers observed a vehicle commit a traffic violation on May 31, 2019 and attempted a traffic stop. The vehicle stopped abruptly in the middle of the street and the driver, later determined to be Grant, exited the vehicle and fled on foot. Law enforcement officers gave chase and observed Grant throw a black object to the ground behind a residence. Officers went to that location and found the object was a loaded pistol with an extended magazine. There were other passengers in the vehicle that Grant abandoned, including three small children. The owner of the vehicle was contacted and came to the scene and told officers that she allowed Grant to use the vehicle. Grant was later arrested and charged with being a convicted felon in possession of a firearm. Grant has previous felony convictions in Caddo Parish for simple burglary in 2017 and attempted possession of a firearm by a felon in 2018.
The ATF and Louisiana State Police conducted the investigation. Assistant U.S. Attorney Brandon B. Brown prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN is part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
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Sandusky physician charged with prescribing medically unnecessary controlled substances and health care fraudRead the Press Release
Acting U.S. Attorney Bridget M. Brennan announced that a federal grand jury returned an indictment charging Gregory J. Gerber, 55, of Port Clinton, Ohio, with 51 counts of distribution of controlled substances and two counts of health care fraud. According to the indictment, the Defendant was a licensed medical physician practicing in Sandusky, Ohio, specializing in physical medicine and rehabilitation and anesthesiology with a sub-specialty in pain medicine.
“The Northern District of Ohio, like many districts throughout the country, continues to combat a staggering opioid crisis," said Acting U.S. Attorney Bridget M. Brennan. “A common theme in this crisis is that many who now struggle with opioid use disorder do so because of a physician who unlawfully prescribed medically unnecessary opioid prescriptions or, in some cases, over-prescribed in a medically unnecessary way. Physicians alleged to have engaged in such conduct will be held accountable."
"Healthcare fraud impacts the cost of medical care and more importantly, puts patients at risk," said FBI Special Agent in Charge Eric B. Smith. " Dr. Gerber allegedly abused his oath by prescribing unnecessary medications, causing harm to his patients, and over billed medical visits. "Dr. Gerber is accused of contributing to the growing opioid epidemic thru his dangerous, criminal behavior and will now be held accountable.
“Issuing prescriptions outside the usual course of professional practice and not for a legitimate medical purpose only aggravates the ongoing opioid epidemic,” said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General – Chicago Region. “Medical professionals are relied upon to perform appropriate physical exams, establish evidence-based, objective diagnoses, and prescribe medications only in a manner that will aid their patients. The OIG continues to investigate instances of alleged improper prescribing that potentially harms patients and wastes vital taxpayer dollars.”
“More Ohioans are dying from opioid overdoses than at any point in this devastating epidemic and this doctor helped put us here one prescription at a time,” Ohio Attorney General Dave Yost said. “Ending this scheme was vital to an area that has been devastated by the opioid crisis.”
The indictment states that the Defendant repeatedly prescribed controlled substances outside the usual course of professional practice and not for a legitimate medical purpose, including powerful painkillers such as fentanyl, oxycodone, oxymorphone and other drugs. It further alleges that from January 2010 through August 2018, the Defendant devised a scheme to defraud federal health care benefit programs by causing insurers to pay for medically unnecessary controlled substance prescriptions.
As part of the scheme, Defendant improperly performed patient physical and historical examinations, failed to establish evidence-based, objective diagnoses, and used these diagnoses to prescribe excessive doses of controlled substances for long periods of time without evidence of efficacy and while ignoring signs of addiction and drug abuse among his patients. It is also alleged that the Defendant improperly sought reimbursement from Medicare, Medicaid and private insurers using billing codes that reflected a service more costly than what was performed.
The indictment states that as part of the scheme, the Defendant wrote over approximately 835 prescriptions for Subsys, a fentanyl-based cancer pain treatment medication manufactured by Insys Therapeutics, Inc. According to the indictment, some of the prescriptions written for Subsys were medically unnecessary and for patients who did not have cancer pain. It is alleged that the Defendant received compensation from Insys by participating in the company’s speakers bureau, a program that paid representatives to engage with other medical professionals and promote the Subsys medication.
While working as an Insys speaker, it is alleged that the Defendant received between approximately $1,500 and $3,700 per engagement, totaling approximately $175,000 in payments and other items of value.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the Defendant’s sentence will be determined by the Court after review of factors unique to this case, including the Defendant’s prior criminal record, if any, the Defendant’s role in the offense, and the characteristics of the violation.
In all cases, the sentence will not exceed the statutory maximum, and in most cases, it will be less than the maximum.
This case was investigated by the Cleveland Federal Bureau of Investigation, Drug Enforcement Administration, Health and Human Services – Office of Inspector General, Ohio Attorney General’s Healthcare Fraud Section and Ohio Board of Pharmacy. This case is being prosecuted by Assistant United States Attorney Megan R. Miller.
Saint Paul, Virginia Woman Pleads Guilty to Unemployment SchemeRead the Press Release
ABINGDON, Va. – Brittany McReynolds, a Saint Paul, Virginia woman who conspired with others to file for fraudulent pandemic unemployment benefits, pleaded guilty today in U.S. District Court in Abingdon to charges she conspired with others to commit mail fraud and defraud the government of more than $182,474. Acting United States Attorney Daniel P. Bubar, Jonathan Mellone, Acting Special Agent-in-Charge, Philadelphia Region, U.S. Department of Labor Office of Inspector General and Acting Special Agent in Charge is Darrell J. Waldon of the Internal Revenue Service- Criminal Investigation announced the guilty plea today.
McReynolds, 32, waived her right to be indicted and pleaded to a two-count Information charging her with one count of conspiracy to defraud the government and one count of conspiracy to commit mail fraud.
“McReynolds took advantage of unemployment funds that were to be provided to those in need during the pandemic, defrauding these important programs,” said Acting U.S. Attorney Bubar today. “We will continue to work closely with our partners at the Department of Labor and IRS to ensure that anyone who steals from these benefit programs is brought to justice.”
“The Unemployment Insurance Program exists to provide needed assistance to qualified individuals who are unemployed due to no fault of their own. Fraud against the Unemployment Insurance Program causes state workforce agencies, like the Virginia Employment Commission, to redirect valuable resources to address fraud and ensure benefits go to individuals who are eligible to receive them. The Office of Inspector General will continue to work closely with the U.S. Attorney’s Office, the Virginia Employment Commission, and our many law enforcement partners, to investigate those who exploit the Unemployment Insurance Program,” said Jonathan Mellone, Acting Special Agent-in-Charge, Philadelphia Region, U.S. Department of Labor Office of Inspector General.
“The CARES Act and the Pandemic Unemployment Assistance program have been a lifeline, helping to sustain taxpayers through these tough times. Sadly, as these programs were being launched to assist those in need, McReynolds and her co-conspirators found a way to fraudulently take advantage of the benefits,” said Darrell J. Waldon, Acting Special Agent in Charge of the IRS-CI Washington DC Field Office. “These type investigations remain a priority of IRS-CI. We will continue to pursue justice against those who deceptively obtain pandemic relief funds to enhance themselves financially.”
McReynolds admitted today that she and others, including her husband Travis Kilgore - who pleaded guilty last week in U.S. District Court to conspiracy and mail fraud charges -filed claims for pandemic unemployment benefits through the VEC website. The scheme involved submitting claims for various individuals who were not eligible to receive pandemic unemployment benefits. McReynolds and Kilgore lied on the filings as part of the scheme to appear eligible for benefits. Because pandemic unemployment benefits were paid weekly, McReynolds reverified and re-certified the false statements on numerous occasions throughout the scheme.
In all, the conspiracy filed claims for approximately 21 other individuals, causing at least $182,474 in false claims to be have been paid.
The investigation of the case was conducted by the Department of Labor-Office of the Inspector General and the Internal Revenue Service – Criminal Investigation, the Norton Police Department, and the Russell County Sheriff’s Office. Assistant United States Attorney Daniel J. Murphy is prosecuting the case for the United States.
Roanoke Rapids Man Who Shot Store Clerk During Armed Robbery Sentenced to More Than 30 Years in Federal PrisonRead the Press Release
RALEIGH, N.C. – A Roanoke Rapids man was sentenced today to 366 months in prison for interference with commerce by robbery, discharging a firearm during a crime of violence, and brandishing a firearm during a crime of violence.
According to court documents, Joshua Jermaine Durante, 23, robbed the Family Dollar Store in Weldon on September 17, 2018. During the robbery, Durante and a juvenile brandished firearms and pistol-whipped the clerk while demanding money. After the clerk complied, the two fled the store. On September 26, 2018, Durante and the juvenile robbed a second store - New Dixie Mart #213 in Roanoke Rapids. After the clerk had trouble opening the safe at Durante’s command, he shot the clerk in the stomach. The clerk sustained life-threatening injuries but survived. A few days later, law enforcement in Gaston located Durante and the juvenile who ran from police leading them on a high-speed chase. During the chase, Durante drove his car down railroad tracks which ultimately disabled his car. He and the juvenile then fled from the car on foot but were captured by law enforcement after a short foot chase.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Weldon Police Department, the Roanoke Rapids Police Department, and the Gaston Police Department investigated the case and Assistant U.S. Attorney Robert J. Dodson prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 4:20-CR-00034-D.
Preston County woman admits to role in drug distribution operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Tiffany Groves, of Kingwood, West Virginia, has admitted to her role in methamphetamine, crack cocaine, fentanyl, and heroin drug distribution operation, Acting United States Attorney Randolph J. Bernard announced.
Groves, age 43, pled guilty to one count of “Aiding and Abetting Possession with Intent to Distribute Methamphetamine.” Groves admitted to distributing methamphetamine in April 2020 in Monongalia County.
Groves 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. Attorneys Zelda E. Wesley and Sarah E. Wagner are prosecuting the case on behalf of the government. The FBI's Northern West Virginia Drug Task Force in partnership with the Mon Metro Drug Task Force, a HIDTA-funded initiative, investigated. The Task Forces have members from the Federal Bureau of Investigation; the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; West Virginia State Police; Monongalia County Sheriff's Office; and, the Morgantown, WVU, Granville and Star City Police Departments. The investigation was also assisted by the following law enforcement partners: the Monongalia County Prosecutor’s Office, the FBI in Houston, Texas; the Houston Police Department's Multi Agency Gang Initiative; the United States Postal Inspection Service in Houston; and, the FBI and DEA in Los Angeles, California.
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.
Penobscot County Woman Pleads Guilty to Theft of Money OrdersRead the Press Release
BANGOR, Maine: A Penobscot County woman pleaded guilty in federal court yesterday to theft and conversion of money orders, Acting U.S. Attorney Donald E. Clark announced.
According to court records, between approximately May 2016 and April 2018, Mellony Hafford, 37, stole multiple money order forms while working as an employee of the U.S. Postal Service. Hafford falsified several of the money order forms to conceal other fraudulent money orders she made out to herself, and to conceal her theft of cash that had been received in sales at the post office.
Hafford faces up to five years in prison and a fine of up to $250,000. She also faces up to three years of supervised release. She will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The U.S. Postal Service Office of the Inspector General and the U.S. Treasury Inspector General for Tax Administration (TIGTA) investigated this case. TIGTA’s involvement in the investigation was supervised by William Kalb, Special Agent in Charge, North East Field Division.
Ohio man sentenced for selling cocaineRead the Press Release
WHEELING, WEST VIRGINIA – Shuntaze Harvey, of Garfield Heights, Ohio, was sentenced yesterday to 12 months and 1 day of incarceration for a drug charge, Acting United States Attorney Randolph J. Bernard announced.
Harvey, age 23, pled guilty to one count of “Aiding and Abetting the Distribution of Cocaine Base within 1000 feet of a Protected Location” in October 2020. Harvey admitted to selling cocaine near Wheeling Center Catholic High School in Wheeling 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 Task Force, a HIDTA-funded initiative, which includes the Drug Enforcement Administration, West Virginia State Police, the 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.
Ohio man sentenced for role in drug trafficking operationRead the Press Release
WHEELING, WEST VIRGINIA – Dominique Revell Dungey, of Martins Ferry, Ohio, was sentenced yesterday to 10 months of incarceration for his role in a drug trafficking conspiracy, Acting United States Attorney Randolph J. Bernard announced.
Dungey, also known as “Murda,” age 29, pled guilty to one count of “Distribution of Cocaine Base” in January 2021. Dungey admitted to selling cocaine base, also known as “crack,” in May 2019 in Ohio County.
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.
Original case indictment here: https://www.justice.gov/usao-ndwv/pr/26-charged-drug-conspiracy-involving-heroin-fentanyl-crack-cocaine-and-meth-wheeling
Nigerian National Facing Federal Charges for Role in Social Media Elder Scam with Losses of More Than $474,000Read the Press Release
Greenbelt, Maryland – A criminal complaint was filed today in U.S. District Court in Maryland charging Oluwaseyi Akinyemi a/k/a “Paddy Linkin”, a/k/a “Joseph Kadin”, age 34, of Hyattsville, Maryland, for the federal charges of mail fraud, attempted mail fraud, and mail and wire fraud conspiracy, in connections with an advanced fee fraud scheme using social media to target elderly victims and causing losses of $474,145.07.
The criminal complaint was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; and Interim Chief Hector Velez of the Prince George’s County Police Department.
According to the affidavit filed in support of the criminal complaint, from July 10, 2018 to April 29, 2019, Akinyemi was a member of the a fraud group (the AFG), a group of Nigerian nationals who engaged in a social media-based advanced fee fraud schemes targeting elderly individuals. Allegedly, AFG members perpetrated a financial scheme in which they created fictitious social media accounts to encourage elderly victims to send cash to cover “taxes” or “fees” in order to receive substantial financial awards. The affidavit alleges that, in some instances, the AFG created fraudulent social media accounts of friends of the victims, making the victims believe they were communicating with individuals they knew and trusted. Once the victims displayed a level of interest, the AFG allegedly opened a new account or persona (“the Closers”) to carry out the fraud scheme. At times, the Closers fraudulently posed as real or fictitious government agencies offering the victims financial awards in exchange for associated taxes and fees. The affidavit further alleges that once victims sent funds to individuals in Maryland and elsewhere, AFG members forwarded the victims’ funds to co-conspirators in Nigeria. The affidavit alleges that Akinyemi is one of the individuals that received victims’ cash or gift card payments through mail services.
As detailed in the affidavit, on April 16, 2019, the Prince George’s County Police Department intercepted a package sent to “Paddy Linkin” at Akinyemi’s address. The package was found to contain $30,000 in cash wrapped in money bands and concealed inside two stuffed animal bears. The money was seized by law enforcement. As detailed in the criminal complaint, Victim 1 was identified as the sender and was subsequently interviewed by law enforcement. According to the affidavit, Victim 1 received an application for a purported federal government program from an individual that the victim believed was a “friend” on a social media platform, because the sender’s profile picture matched that of an individual with whom Victim 1 was friends. The “friend” vouched for the program. Victim 1 was allegedly contacted by a Closer, who advised that Victim 1 was approved for $100,000 in grant funds but needed to pay taxes to receive the grant funds. Once Victim 1 sent funds for the “taxes”, she received a “Certificate of Completion” with the Internal Revenue Service seal and another certificate bearing her full name and the text: “Federal Government Grants for the sum of $5,000,000.” Victim 1 was then notified that the Central Intelligence Agency was going to confiscate the grant funds if he/she did not send more money to cover the taxes on the awarded grant. Following the Closer’s specific instructions, Victim 1 allegedly sent a total of approximately $70,000 to $80,000 in cash to “Paddy Linkin” in six packages addressed to Akinyemi’s residence as well as to an address in Midland, Texas, including the $30,000 seized by the Prince George’s County Police officers. According to the affidavit, Victim 1 withdrew funds from a retirement account and obtained a bank loan in order to pay the “taxes” believing that he/she would receive federal grants.
At least 13 victims have allegedly been defrauded of a total of $474,145.07 through the AFG scheme.
If convicted, Akinyemi faces a maximum sentence of 20 years for each count of mail fraud, attempted mail fraud and mail fraud conspiracy. 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. At today’s initial appearance in U.S. District Court in Baltimore, U.S. Magistrate Judge Timothy J. Sullivan ordered that Akinyemi be detained.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Jonathan F. Lenzner commended the HSI and the Prince George’s County Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Rajeev R. Raghavan and Erin B. Pulice, who is prosecuting this case.
The Department of Justice has an interactive tool for elders who have been financially exploited to help determine to which agency they should report their incident, and also a senior scam alert website. Victims are encouraged to file a complaint online with the FBI’s Internet Crime Complaint Center at this website or by calling 1-800-225-5324. Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP.
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National Crime Victims’ Rights WeekRead the Press Release
Next week, starting Monday, April 19th, 2021, the United States Attorney’s Office will join the rest of the Department of Justice in observing National Crime Victims’ Rights Week. The U.S. Attorney’s Office will participate in events that celebrate and support crime victims and their advocates.
Crime Victims’ Rights Week is a nationally recognized annual commemoration in April, set aside to celebrate and acknowledge the hard work and dedication of victim advocates, as well as to promote victims’ rights and services. This year, the Center for Crime Victim Services in partnership with the United States Attorney’s Office will host an annual awards ceremony, via video conference, on Monday April 19th. This ceremony will honor survivors, advocates, and service providers. On Wednesday April 21st, they will be hosting an advanced training webinar for advocates featuring Dr. Chris Wilson of Being Trauma Informed (BTI), an expert in the field of trauma.
Criminals continue to prey on the vulnerable in our communities, and in the past year, have taken advantage of the isolation and limitations caused by the public health crisis. Despite these challenges, our advocates and service providers have continued their important work to protect victims of domestic violence, gun violence, child exploitation, fraud, and drug trafficking. As our community reopens in the next few months, isolated victims will undoubtedly be identified, and all victims will need additional support navigating an altered landscape. Victims can find valuable resources on-line at www.justice.gov/usao/vt
Acting United States Attorney Jonathan A. Ophardt stated: “The mission of the U.S. Attorney’s Office is structured around the pursuit of justice for victims and their families. Violent crime, child exploitation, drug trafficking, and financial abuses inflict significant harm on Vermonters. Victims of these and other crimes will always have devoted advocates at the U.S. Attorney’s Office and throughout the State of Vermont, seeking justice on their behalf. Working with our vital law enforcement partners, we strive to ensure victims’ rights are protected, that their voices are heard, and that they receive appropriate compensation and recovery services. We thank our community partners who provide vital assistance to crime survivors and make Vermont safer through their numerous prevention efforts. Thank you for your tireless work.”
The Office of Justice Programs provides innovative leadership to federal, state, county, local, and tribal justice systems, by disseminating state-of-the art knowledge and practices across America and providing grants for the implementation of crime-fighting strategies. More information about the Office of Justice Programs and its components can be found at www.ojp.gov. More information about National Crime Victim’s Rights Week can be found at https://ovc.ncjrs.gov/ncvrw/. You may also contact the U.S. Attorney’s Office, District of Vermont, Victim Witness Program at (802) 951-6725.
NDTX Round up: April 9 – 15Read the Press Release
GUILTY PLEA – SAMANTHA LONGORIA
On April 13, Samantha Longoria, 25, plead guilty to conspiracy to launder monetary instruments. Longoria sent the proceeds from drug transactions to Mexico via wire remittance transfers. For each transfer Longoria completed she was paid a fee. When she arrested in late September, law enforcement found receipts for money transfers in her residence she shared with a coconspirator. From May 14-18, Longoria completed 79 transactions totaling $70,000. Longoria now faces up to 20 years in federal prison for her crimes. The DEA conducted the investigation. Assistant U.S. Attorney John Kull is prosecuting the case.
SENTENCING – Yotzer Harin Peraza-Navarro
On April 13, Yotzer Harin Peraza-Navarro, 32, was sentenced to 210 months in federal prison for possession with intent to distribute methamphetamine. Peraza-Navarro was pulled over by law enforcement for a traffic violation and placed under arrest for having an active warrant. When law enforcement searched Peraza-Navarro’s vehicle, they located $26,419, a pistol, and methamphetamine. Peraza-Navarro later admitted to transporting 25 pounds of methamphetamine and one kilogram of heroin. The DEA, HSI, Lubbock Sheriff’s Office, and Lubbock Police Department conducted the investigation. Assistant U.S. Attorney Sean Long prosecuted the case.
SENTENCING – JORGE BENITEZ
On April 13, Jorge Benitez, 21, was sentenced to 10 years in federal prison for aiding and abetting possession with intent to distribute methamphetamine. Law enforcement conducted a traffic stop of a vehicle that Benitez occupied. Officers searched the vehicle and located marijuana, methamphetamine, heroin, $4,715 in drug proceeds, and a firearm. The DEA conducted the investigation. Assistant U.S. Attorney Rachael Jones prosecuted the case.
GUILTY PLEA – GERARDO JIMENEZ
On April 15, Gerardo Jimenez, 43, plead guilty to conspiracy to distribute a controlled substance and possession of a firearm during a drug trafficking crime. Jimenez utilized a storage building on his property to store large quantities of illegal narcotics. In May 2020, an undercover officer came to his residence and purchased an “eight ball” of cocaine. When law enforcement executed a search warrant of the residence, they located kilograms of methamphetamine, marijuana plants, and ten firearms. Jimenez now faces up to life in federal prison for his crimes. The DEA conducted the investigation. Assistant U.S. Attorney Phelesa Guy is prosecuting the case.
GUILTY PLEA – PERRY HILSON
On April 13, Perry Hilson, 42, plead guilty to possessing contraband in prison. On July 27, 2018, Perry Hilson, a prisoner at FCI Seagoville, spoke with Deshea Hilson and instructed her to smuggle narcotics to him during their visit the following day. When Deshea arrived in the visitation room, she went to the vending machines and purchased a bag of chips. She later excused herself to the restroom and retrieved several balloons of methamphetamine from her person and placed them in the chip bags. When she returned to the visitation room, Perry then pretended to eat the chips, but attempted to ingest the methamphetamine. Perry Hilson now faces up to 20 years in federal prison for his crimes. Assistant U.S. Attorney Damien Diggs is prosecuting the case.
Monongalia County man sentenced for his role in a drug trafficking operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Larry Bruce Heaster, of Morgantown, West Virginia, was sentenced to one year of probation for his role in a drug trafficking conspiracy, Acting United States Attorney Randolph J. Bernard announced.
Heaster, 55, pled guilty to one count of “Conspiracy to Distribute Heroin and Cocaine Base” in November 2020. Heaster admitted to working with others to distribute the drugs from March 2018 to September 2020 in Monongalia County and elsewhere.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the cases 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
Mobridge Man Indicted for Meth TraffickingRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Mobridge, South Dakota, man has been indicted by a federal grand jury for Conspiracy to Distribute Methamphetamine.
Spencer Jacob Rinehart, age 28, was indicted on April 13, 2021. He appeared before U.S. Magistrate Judge William D. Gerdes on April 15, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 40 years in prison and/or a $5,000,000 fine, a lifetime of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between January 1, 2017, and April 29, 2020, Rinehart knowingly and intentionally conspired with others to distribute and possess with intent to distribute 50 grams or more of methamphetamine in Mobridge, South Dakota.
The charge is merely an accusation and Rinehart is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Mobridge Police Department, the Northern Plains Safe Trails Drug Enforcement Task Force, the Corson County Sheriff’s Office, and the Bureau of Indian Affairs, Office of Justice Services. Assistant U.S. Attorney Cameron J. Cook is prosecuting the case.
Rinehart was released on conditions pending trial. A trial date has not been scheduled.
Mineral County attorney admits to fraud chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Timothy Mark Sirk, an attorney who lives in Keyser, West Virginia, has admitted a fraud charge, Acting United States Attorney Randolph J. Bernard announced.
Sirk, 62, pleaded guilty today to one count of “Wire Fraud.” Sirk, a court-appointed attorney in Mineral County, admitted to submitting at least 33 fraudulent pay vouchers for his alleged public defender legal services. He also admitted to forging the signature of a Circuit Court Judge when submitting these vouchers. Sirk obtained at least $26,152.68 fraudulently. The crime occurred from December 2016 to June 2018 in Mineral County.
Sirk faces up to 20 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The West Virginia State Police investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Massachusetts Drug Trafficker Arraigned for Selling More Than 20,000 Bags of Heroin and FentanylRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Matthew A. Oquendo, 28, of Holyoke, Massachusetts was arraigned today in federal court on charges related to the selling of heroin and fentanyl during several FBI undercover operations. Oquendo entered pleas of not guilty to the charges. Oquendo remains detained pending trial.
According to court records and other information presented in court, during the months-long investigation, the FBI used a confidential source to purchase heroin and fentanyl from Oquendo. On March 8, 2021, the FBI confidential source purchased approximately 2,000 bags of fentanyl from Oquendo for $4,000. Just five days later, on March 13, 2021, the FBI confidential source purchased approximately 20,000 bags of heroin from Oquendo for $40,000. Shortly after the deal, Oquendo realized that the $40,000 was fake money. As a result, Oquendo attempted to chase down the confidential source’s vehicle. Law enforcement officers attempted to stop Oquendo by driving towards his car with their blue/red emergency lights engaged; however, Oquendo continued to chase the confidential source’s vehicle – ultimately, requiring an FBI officer to ram Oquendo’s car. Oquendo fled the area in his vehicle, speeding through an intersection and into oncoming traffic causing law enforcement to cease their pursuit. Eventually, law enforcement officers located Oquendo’s vehicle and, with the assistance of a K-9, found Oquendo hiding in a wooded area.
On April 8, 2021, the Grand Jury returned a two-count indictment against Oquendo for distributing fentanyl and for distributing 100 grams or more of heroin. The United States Attorney emphasizes that the charges in the indictment are merely accusations, and that the defendant is presumed innocent unless and until proven guilty. The defendant faces a five-year mandatory minimum sentence based on the allegation of distributing 100 grams or more of heroin. The actual sentence would be determined by the Court with guidance from the advisory Federal Sentencing Guidelines.
The FBI, the FBI Western Massachusetts Gang Task Force, the Vermont Drug Task Force, the Vermont State Police, and the Easthampton (Massachusetts) Police Department Drone Unit are investigating the case. The United States Attorney’s Office also recognizes and appreciates the Brattleboro Police Department for the vital assistance it provided during this investigation.
The United States is represented in this matter by Assistant U.S. Attorney Jeffrey W. Davis. Assistant Federal Public Defender Steven Barth represents the defendant.
Maryland Financial Advisor Facing Federal Charges for Stealing a Client’s Life SavingsRead the Press Release
Baltimore, Maryland – A federal criminal complaint has been filed charging Eddy Blizzard, age 42, of Perry Hall, Maryland, with a federal wire fraud charge and with aggravated identity theft, in connection with a fraud scheme in which he embezzled more than $1 million from a client’s retirement account. The criminal complaint was filed on April 14, 2021 and unsealed upon Blizzard’s initial appearance today.
The criminal complaint was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; and Special Agent in Charge Mark P. Higgins of the Federal Housing Finance Agency, Office of Inspector General.
“This defendant is charged with perpetrating a heartless scheme that preyed on a vulnerable elderly victim, allegedly stealing more than a million dollars,” said Acting U.S. Attorney Jonathan F. Lenzner. “As a result of the fraud the victim’s house went into foreclosure and he owed the IRS at least $63,000. We will continue to work with our law enforcement partners to bring to justice those who perpetrate these despicable schemes targeting elderly victims. I encourage anyone who believes they may be a victim of financial fraud to contact the Elder Fraud Hotline at 833-FRAUD-11 (833-372-8311).”
According to the affidavit filed in support of the criminal complaint, Blizzard held several licenses that allowed him to operate as a registered broker and a registered investment adviser per the Financial Industry Regulatory Authority (“FINRA”). From 2003 to 2014, Blizzard was employed by a bank securities company (Bank 1) and from 2014 to 2017 he was employed by a bank investment services company (Bank 2), both in Maryland.
As detailed in the affidavit, victim R.M. was a resident of Maryland and was 75 years old in January 2020. On December 12, 2019, R.M. was interviewed as part of this investigation. R.M stated to investigators that beginning in 1963, R.M. went to work for a Baltimore based commercial air-conditioning company, where he enjoyed a successful career installing commercial grade air conditioning units around the country. R.M. told investigators he routinely worked approximately 15 to 30 hours of overtime per week during his career to make extra money. In 2003, after approximately 40 years of service with the air conditioning company, R.M. took a buyout and retired. Six months later, R.M. decided to invest his retirement funds in order to provide an inheritance for his grandchildren. R.M. sought investment advice from Bank 1, where he had his depository accounts.
Blizzard began working at Bank 1 shortly after R.M. began investing there and became R.M.’s financial adviser. R.M. allegedly told investigators that in about 2005, Blizzard “went on his own” meaning that Blizzard began working as an independent financial advisor and asked R.M. if R.M. wanted to leave Bank 1 and use Blizzard as a full-time financial advisor. Blizzard allegedly told R.M. that it would be a while before he had his own office, but he would continue to work out of the Bank 1 branch in Catonsville, Maryland. A review of publicly available FINRA records shows that Blizzard never went to work as an independent financial advisor. As detailed in the affidavit, approximately once a month, R.M. would drive from his new home in Chester, Maryland on the Eastern Shore to meet with Blizzard at Bank 1 in Catonsville, approximately one hour away; however, R.M. and Blizzard would meet in Blizzard’s car, not the office. These meetings lasted 30-45 minutes and R.M. was never told why they were meeting in Blizzard’s car.
In approximately 2010, the affidavit alleges that, at Blizzard’s request, R.M. gave Blizzard 15-20 signed blank checks, which Blizzard used. According to the affidavit, R.M. did not know what the checks were for, but recognized Blizzard’s handwriting when he received the cancelled checks in the mail. During the years of investment with Blizzard, R.M. stated that he believed his retirement funds were protected, meaning they would not lose value – a fact that was allegedly told to R.M. numerous times by Blizzard and Blizzard’s wife. R.M. also believed that his mortgage was being paid by Blizzard.
The affidavit alleges that on approximately 12 different instances, R.M. went to his local bank to withdraw cash and was told there was not enough money in the account. R.M. would then call Blizzard to let him know about the deficiency. Blizzard allegedly would then tell R.M. to wait a day or two and there would be funds in the account to withdraw.
In August 2019, R.M. was preparing to go on a family vacation and attempted to withdraw $1,000 to $1,500 in cash from the local Bank 1 branch and was told there were not sufficient funds in the account. R.M. attempted to contact Blizzard on his cell phone for a week with no response. R.M. then went to Blizzard’s Perry Hall, Maryland residence to talk to Blizzard in person, knocking on the front and back doors of Blizzard’s residence. No one came to the door, but according to the affidavit R.M. received a voicemail from Blizzard, while he was still at Blizzard’s home. In the voicemail, Blizzard allegedly stated that the neighbors had called him and were complaining about the banging on the door. As detailed in the affidavit, Blizzard further explained that all of R.M.’s money was gone.
According to the affidavit, a review of R.M.’s depository and investment accounts showed that between January 2013 and August 2019 there were a total of 242 distributions totaling approximately $1.4 million from R.M.’s retirement accounts. Of those, 129 distributions totaling $1.2 million were specifically requested from R.M.’s retirement accounts instead of being regular systematic annuity payments. After taxes and fees were deducted from those requested payments, approximately $1 million was deposited into R.M.’s Bank 1 account. This review allegedly also revealed that from April 2016 to April 2019 Blizzard deposited approximately 112 checks drawn on R.M.’s account into various bank accounts at Bank 1 and elsewhere that were held by Blizzard jointly with his wife or individually. These checks totaled approximately $848,000 and were written to Blizzard or Blizzard’s wife. A review of these checks showed that almost all had comments written on the memo section indicating various purposes such as payment of property taxes, construction, boat payments, and down payments for a new house.
In addition, the affidavit alleges that R.M. received a letter from the IRS, which he turned over to Blizzard as Blizzard had instructed. R.M.’s relatives later determined that R.M. owed approximately $63,000 in federal income tax due to disbursements from R.M.’s retirement accounts that were allegedly stolen by Blizzard. In the fall of 2019, R.M.’s home was put into the foreclosure process because of lack of payment which R.M. allegedly thought was being handled by Blizzard. R.M. died on March 20, 2020.
If convicted, Blizzard faces a maximum sentence of 20 years in federal prison for wire fraud and a mandatory sentence of two years, consecutive to any other sentence, for aggravated identity theft. 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. At today’s initial appearance in U.S. District Court in Baltimore, U.S. Magistrate Judge Deborah L. Boardman ordered that Blizzard be released pending trial.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Jonathan F. Lenzner commended the FBI and the FHFA OIG for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Aaron S. J. Zelinsky, who is prosecuting this case.
The Department of Justice has an interactive tool for elders who have been financially exploited to help determine to which agency they should report their incident, and also a senior scam alert website. Victims are encouraged to file a complaint online with the FBI’s Internet Crime Complaint Center at this website or by calling 1-800-225-5324. Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP.
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Man Sentenced for Impersonating A Federal OfficerRead the Press Release
SAN JUAN, Puerto Rico – Miguel Carrasquillo-Vilches was sentenced by U.S District Court Judge Francisco A. Besosa to a term of 18 months in prison, three years of supervised release, and a restitution to be paid to the victim in the amount of $30,605.19, for impersonating a federal officer and committing wire fraud, announced United States Attorney for the District of Puerto Rico, W. Stephen Muldrow. U.S. Immigration and Customs Enforcement (ICE) Office of Professional Responsibility (OPR) and Homeland Security Investigations (HSI) investigated the case.
Carrasquillo-Vilches pleaded guilty on January 13, 2020, to one count of False Personation of an Officer or Employee of the United States, and four counts of Wire Fraud. The sentencing hearing was held on April 13, 2021.
From June to October 2019, Carrasquillo-Vilches devised a scheme to defraud and falsely claimed to be an agent of the Homeland Security Investigations. The impersonation of a federal officer was used to obtain a rental agreement and residency in a luxury apartment located in San Juan, Puerto Rico.
As part of the scheme to defraud, Carrasquillo-Vilches identified himself as the Director of Tactical Command of the Mid-South Region for Homeland Security Investigations, generated fake email threads to a nonexistent government email address, and used texts, phone calls and emails to communicate and make false representations to the realtor and owner of the apartment. The fake emails Carrasquillo-Vilches generated made it seem that supervisors at Homeland Security Investigations were aware of the Residence Lease Agreement and were in the process of approving it.
Carrasquillo-Vilches signed a Residential Lease Agreement with the owner of the apartment and agreed to pay rent of $7,500 per month for one year. Carrasquillo-Vilches moved into the apartment, failed to make any payments, and was eventually removed from the property at the time of his arrest.
Assistant U.S. Attorney María L. Montañez of the Financial Fraud and Public Corruption Section prosecuted the case.
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Luzerne County Man Sentenced to 10 Years’ Imprisonment for Drug TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Edirso De Leon Frias, age 29, of Nanticoke, Pennsylvania was sentenced on April 15, 2021, by United States District Court Judge Robert D. Mariani to 10 years’ imprisonment for conspiracy to distribute and possess with intent to distribute over one kilogram of heroin and over 500 grams of cocaine.
According to Acting United States Attorney Bruce D. Brandler, De Leon Frias pled guilty to being an organizer of a drug trafficking organization operating in and around Luzerne County. De Leon Frias was responsible for more than one kilogram of heroin and more than 500 grams of cocaine, and possessed a firearm during the commission of the drug offense. One kilogram of heroin is the equivalent of approximately 40,000 individual doses.
Fourteen other defendants have previously been sentenced on charges arising from this investigation. Most notably, Jose Ramon de Leon Pineda was sentenced to 188 months’ imprisonment, and Juan Roman Polanco was sentenced to 151 months’ imprisonment. Both men were also leaders in their drug trafficking conspiracies, and both men possessed firearms during the course of the conspiracy.
This conviction was the result of a year-long investigation, in part driven by multiple wiretaps, conducted by the U.S. Drug Enforcement Administration (DEA), Wilkes-Barre Police Department, and Pennsylvania State Police. Assistant U.S. Attorney Sean A. Camoni prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Keithville Man Sentenced to Federal Prison on Child Pornography ChargesRead the Press Release
SHREVEPORT, La. – Danny Ray Marable, 64, of Keithville, Louisiana, has been sentenced by United States District Judge Elizabeth E. Foote to 70 months (5 years, 10 months) in prison, followed by 5 years of supervised release, for receipt of child pornography.
Marable pleaded guilty on October 8, 2020 to receipt of child pornography. Evidence presented at the hearing revealed that in October 2019, the Federal Bureau of Investigation (FBI) received information from MeWe, an online social media and social networking service, that indicated a user uploaded images depicting child pornography including bondage. FBI agents began their investigation to determine who the MeWe user was and learned that it was Marable. On April 22, 2020, law enforcement agents executed a search warrant on his residence and agents took possession of items including a cellphone and flash drive belonging to Marable. He admitted to agents that the email address used by the MeWe user did in fact belong to him.
After a forensic analysis of the seized items, law enforcement agents discovered that Marable received a video containing child pornography in December 2019. In addition to receiving the video, Marable received over 100 images and over 50 videos of child pornography involving prepubescent minors and/or minors under the age of 12 on his cell phone and flash drive. The videos and images specifically depicted children under the age of 12 being sexually exploited.
The FBI, U.S. Marshal’s Service, and Bossier City Police Department conducted the investigation. Assistant U.S. Attorney Tennille Gilreath prosecuted the case.
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Jacksonville Man Convicted of Distribution of Heroin Resulting in Death and Other Charges Sentenced to Life Plus Five YearsRead the Press Release
RALEIGH, N.C. – A Jacksonville man previously convicted of distribution of heroin resulting in death, two counts of possessing a firearm while a felon, possession of a firearm in furtherance of a drug trafficking crime, three counts of distribution of heroin and/or crack, and three counts of possession with intent to distribute heroin, fentanyl, and crack was sentenced to life plus five years in prison today.
According to court records and evidence presented at trial, Randon Austin Jenkins, a/k/a Jerz, 36, provided heroin to a victim who died shortly thereafter of a heroin overdose. After the victim was discovered, detectives located bags of heroin marked with a unique stamp in the victim’s bedroom. Detectives utilized informants, cell phone evidence, and other evidence to connect Jenkins to those stamped heroin bags. They were able to search Jenkins house just two weeks later and located those same stamped heroin bags in his house. Detectives also located guns and other drugs in the house as well as conducted multiple controlled purchases of drugs from the defendant over the course of the ensuing months.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina, made the announcement after sentencing by United States District Judge James C. Dever III. Jacksonville Police Department, Onslow County Sheriff’s Office and the Federal Bureau of Investigation assisted in this investigation. Assistant U.S. Attorney Laura Howard prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No 7:18-CR-0006-D.
Jackson Man Pleads Guilty to Drug Trafficking ChargesRead the Press Release
Jackson, Miss – Ronnie Antwoine Arnold, 20, of Jackson, pled guilty today before Chief U.S. District Judge Daniel P. Jordan III to possessing with intent to distribute methamphetamine and crack-cocaine, announced Acting U.S. Attorney Darren J. LaMarca and Michelle A. Sutphin, Special Agent in Charge of the Jackson Federal Bureau of Investigation in Mississippi.
On December 19, 2018, Jackson police officers stopped a car driven by Arnold. Inside the car, Arnold possessed a backpack that contained methamphetamine, powder cocaine, and crack cocaine, all individually wrapped. In addition to the narcotics, Arnold possessed $1,290 cash. Arnold was arrested by Jackson police and later released by the State on bond.
On June 25, 2019, Arnold was indicted by a federal grand jury for possessing with intent to distribute methamphetamine. On June 27, 2019, Arnold again sold drugs, this time crack cocaine. Arnold was subsequently arrested by the FBI and ordered to be detained until trial on the federal indictment. While detained and awaiting trial, Arnold was indicted by a federal grand on February 12, 2020, for possessing with intent to distribute the crack cocaine he sold while out on bond in June 2019.
Arnold remains in federal custody and will be sentenced on July 27, 2021, by Judge Jordan. He faces a penalty of up to 40 years in prison and up to $4,000,000 in fines.
These cases were investigated by the Jackson Police Department and the Federal Bureau of Investigation. Assistant United States Attorney Bert Carraway is the lead prosecutor.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry, and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. 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.