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8 March 2021
Porter Resident Sentenced to 60 Months Probation, $68,885 Restitution for Theft, Embezzlement or Misapplication by Bank EmployeeRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Deborah Kay Jenkins, age 48, of Porter, Oklahoma, was sentenced to 5 years probation and ordered to pay $68,885.00 in restitution for Theft, Embezzlement or Misapplication by Bank Employee, in violation of Title 18, United States Code, Section 656. The charges arose from an investigation by the Federal Deposit Insurance Corporation – Office of Inspector General and the Federal Bureau of Investigation.
The Information to which Jenkins previously entered a guilty plea alleged that from in or about May 2017 through in or about February 2019, in the Eastern District of Oklahoma, the defendant, being an employee of, and connected in a capacity with First Bank in Porter, Oklahoma, a bank whose deposits are insured by the Federal Deposit Insurance Corporation, with intent to injure and defraud the said First Bank, willfully misapplied, embezzled, abstracted, and purloined more than $1,000.00 of the moneys, funds, assets and securities entrusted to the custody and care of First Bank, in that the defendant withdrew cash and transferred funds from the bank and misapplied, embezzled, abstracted and purloined the funds.
“Financial institutions are vital components of our everyday economy. Banking customers expect their deposits to be secure in the hands of their local banks,” said Acting United States Attorney Christopher J. Wilson. “Bank employees who embezzle and steal funds undermine that confidence, and it is the role of the criminal justice system to hold them accountable. I appreciate the investigative work of the FDIC-OIG and the FBI to insure the defendant was identified and brought to justice.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Shannon Henson represented the United States.Pendleton County man sentenced for firearms chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Donnie Gale Leggett, Jr., of Brandywine, West Virginia, was sentenced today to 11 months of incarceration for a firearms charge, Acting United States Attorney Randolph J. Bernard announced.
Leggett, 33, pled guilty in October 2020 to one count of “False Statement During Purchase of Firearm.” Leggett admitted to making a false statement to purchase a firearm in Mineral County in November 2019.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
Chief U.S. District Judge Gina M. Groh presided.
Owensboro Drug Trafficking Organization Members Indicted for Methamphetamine and Fentanyl Trafficking OperationRead the Press Release
OWENSBORO, Ky. – Fifteen defendants involved in an Owensboro based Drug Trafficking Organization have been charged by a federal Grand Jury for engaging in a conspiracy to distribute large quantities of methamphetamine and fentanyl, among other charges, announced Acting United States Attorney Michael A. Bennett.
“The allegations involve large quantities of illegal drugs bound for the Western District of Kentucky,” said Acting U.S. Attorney Bennett. “I commend the DEA for spearheading the criminal investigation into this activity as well as our federal, state, and local law enforcement partners – both here in the Commonwealth and from across the U.S. - who assisted in the effort.”
DEA Assistant Special Agent in Charge, Michael Gannon said, “Operation Reapin Benefits in support of DEA’s Operation Crystal Shield, was a perfect example of how local, federal and state law enforcement partners collaborated at the highest possible levels and crushed a violent drug trafficking organization operating out of Owensboro, Kentucky, Louisville, Kentucky, Orange County, California, Phoenix, Arizona and ultimately Mexico.”
“During the course of this investigation the fine men and women of the Owensboro Police Department, the Daviess County Sheriff’s Office members of the DEA Indiana High Intensity Drug Trafficking Area (HIDTA) River City Drug Task Force and the Bureau of Alcohol Tobacco Firearms and Explosives conducted ten judicially authorized federal write-taps on members of this Owensboro based drug trafficking organization which to date has resulted in the seizure of (238) pounds of methamphetamine, (81) pounds of marijuana, (4.5) pounds of fentanyl pills, (20) ounces of cocaine, (23) firearms including assault rifles with high capacity magazines, $350,000 USC, (6) vehicles, and the arrest of 28 individuals on federal/state drug charges. DEA commends the outstanding work by the United States Attorney’s Office, Western District of Kentucky, the Daviess County Commonwealth’s Attorney’s Office, and all the agencies who participated in this multi-jurisdictional investigation.”
“These violent organizations use every means to push their drugs and criminal activities into communities both large and small,” stated ATF Special Agent in Charge R. Shawn Morrow of the Louisville Field Division. “In this instance, the DTO used firearms to further their drug trade and caused serious harm to Kentucky. Our message is clear, if you distribute drugs and violate firearms laws, ATF and our law enforcement partners will work together to hold you accountable. These indictments, announced today, are the result of a coordinated effort of local, state, and federal agencies all committed to reducing violent crime and making our communities safer places to live.”
“The men and women of the Owensboro Police Department remain committed to working with our many partners to effectively reduce violent crime in our city. Said Owensboro Police Chief Art Ealum. Violent crime is a well-known byproduct of the illicit drug trade. We are grateful to the many agencies that worked cohesively with our Street Crimes Unit to investigate this Drug Trafficking Organization and successfully secure indictments for those involved.
Daviess County Sheriff Keith Cain said, “These indictments are the result of an ongoing investigation that initially identified (5) Co-conspirators in a major narcotics criminal enterprise operating in the Owensboro-Daviess County area. This collaborative effort by the Owensboro Police Dept, Daviess Co Sheriff’s Office, DEA, and U.S. Attorney’s Office for the Western District of Kentucky continues, with the possibility of additional persons involved being charged.”
The Indictment follows criminal complaints filed against 5 members of the organization in January 2021 and the seizure of approximately 151 pounds of methamphetamine, 3.5 pounds of suspected fentanyl disguised as pharmaceutical pills, multiple firearms, and over $350,000 in United States Currency. According to the federal Indictment, members of the Drug Trafficking Operation, as early as 2016 and continuing through January 13, 2021, conspired with each other and others to possess with the intent to distribute methamphetamine and fentanyl. The Indictment also alleges the possession of firearms in furtherance of the drug trafficking. The members of the organization were charged as follows:
Willie Watkins, 30, of Owensboro, Kentucky, has been charged with Conspiracy to Possess with the Intent to Distribute Methamphetamine and Conspiracy to Possess with the Intent to Distribute Fentanyl. If convicted, the charges carry no less than a mandatory 10 years in federal prison.
Richard Cason, 29, of Owensboro, Kentucky, has been charged with Conspiracy to Possess with the Intent to Distribute Methamphetamine and Conspiracy to Possess with the Intent to Distribute Fentanyl. If convicted, the charges carry no less than a mandatory 10 years in federal prison. Additionally, Mr. Cason is charged with Possession with the Intent to Distribute Methamphetamine and Possession of a Firearm in Furtherance of Drug Trafficking for events occurring on or about January 13, 2021.
Keith Watkins, 28, of Owensboro, Kentucky, has been charged with Conspiracy to Possess with the Intent to Distribute Methamphetamine and Conspiracy to Possess with the Intent to Distribute Fentanyl. If convicted, the charges carry no less than a mandatory 10 years in federal prison. Keith Watkins has also been charged with Possession with the Intent to Distribute Fentanyl for events occurring between on or about January 12, 2021, and January 13, 2021.
Samuel White, 27, of Owensboro, Kentucky, has been charged with Conspiracy to Possess with the Intent to Distribute Methamphetamine and Conspiracy to Possess with the Intent to Distribute Fentanyl. If convicted, the charges carry no less than a mandatory 10 years in federal prison. Mr. White has also been charged with Distribution of Methamphetamine for events occurring on or about October 1, 2019.
Christopher McNary, 31, of Owensboro, Kentucky, has been charged with Conspiracy to Possess with the Intent to Distribute Methamphetamine and Conspiracy to Possess with the Intent to Distribute Fentanyl. If convicted, the charges carry no less than a mandatory 10 years in federal prison. Mr. McNary has also been charged with Distribution of Methamphetamine for events occurring on or about November 6, 2020.
William Harvey Duhart, 37, of Phoenix, Arizona, has been charged with Conspiracy to Possess with the Intent to Distribute Fentanyl. If convicted, the charge carries no less than a mandatory 10 years in federal prison.
Ryan Thruston, 33, of Owensboro, Kentucky, has been charged with Conspiracy to Possess with the Intent to Distribute Methamphetamine and Conspiracy to Possess with the Intent to Distribute Fentanyl. If convicted, the charges carry no less than a mandatory 10 years in federal prison. Ryan Thruston has also been charged with Possession with the Intent to Distribute Methamphetamine, Possession of a Firearm in Furtherance of Drug Trafficking, and Receipt or Possession of an Unregistered Firearm.
James Antonio Smith, 37, of Owensboro, Kentucky, has been charged with Conspiracy to Possess with the Intent to Distribute Methamphetamine and Conspiracy to Possess with the Intent to Distribute Fentanyl. If convicted, the charges carry no less than a mandatory 10 years in federal prison.
Derrick Lamont Bullitt, 37, of Louisville, Kentucky, has been charged with Conspiracy to Possess with the Intent to Distribute Methamphetamine and Conspiracy to Possess with the Intent to Distribute Fentanyl. If convicted, the charges carry no less than a mandatory 10 years in federal prison.
Karlchaze D. Thruston, 32, of Louisville, Kentucky, has been charged with Conspiracy to Possess with the Intent to Distribute Methamphetamine and Conspiracy to Possess with the Intent to Distribute Fentanyl. If convicted, the charges carry no less than a mandatory 10 years in federal prison. Karlchaze Thruston has not yet been apprehended at this time and is a wanted fugitive.
Nache Moore, 31, of Louisville, Kentucky, has been charged with Conspiracy to Possess with the Intent to Distribute Methamphetamine and Conspiracy to Possess with the Intent to Distribute Fentanyl. If convicted, the charges carry no less than a mandatory 10 years in federal prison.
Jeremy Poiles, 39, of Owensboro, Kentucky, has been charged with Conspiracy to Possess with the Intent to Distribute Methamphetamine. If convicted, the charge carries no less than a mandatory 10 years in federal prison. Mr. Poiles has also been charged with Possession with the Intent to Distribute Methamphetamine for events occurring on or about December 11, 2020. Jeremy Poiles has not yet been apprehended at this time and is a wanted fugitive.
Darrion Lamont Moody, 35, of Evansville, Indiana has been charged with Conspiracy to Possess with the Intent to Distribute Fentanyl. If convicted, the charge carries no less than a mandatory 10 years in federal prison. Mr. Moody has also been charged with Possession with the Intent to Distribute Fentanyl for events between on or about January 2, 2021, and January 6, 2021.
Devon Harris, 22, of Owensboro, Kentucky, has been charged with Conspiracy to Possess with the Intent to Distribute Methamphetamine and Conspiracy to Possess with the Intent to Distribute Fentanyl. If convicted, the charges carry no less than a mandatory 10 years in federal prison.
Joan E. Johnson, of Owensboro, Kentucky, has been charged with Conspiracy to Possess with the Intent to Distribute Methamphetamine and Conspiracy to Possess with the Intent to Distribute Fentanyl. If convicted, the charges carry no less than a mandatory 10 years in federal prison.
The investigation is being led by the Drug Enforcement Administration (Evansville Indiana Resident Office, Albuquerque District Office, Phoenix Field Division, Orange County District County Office, Oklahoma City, Flagstaff Resident Office, Paducah POD, Springfield, Missouri, and SOD); Bureau of Alcohol, Tobacco, Firearms and Explosives Bowling Green, Kentucky; HSI Oklahoma City; Owensboro Kentucky Police Department, Daviess County Sheriff’s Office; Criminal Interdiction Team of Central Oklahoma; Oklahoma County Sheriff’s Office; Oklahoma City Police Department; Arizona Highway Patrol; and the Daviess County Commonwealth’s Attorney’s Office.
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The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.
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Old Forge Man Sentenced for Tax EvasionRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that on March 5, 2021, United States Judge Malachy E. Mannion sentenced Christopher Jones, age 54, of Old Forge, Pennsylvania, to three years of probation for tax evasion.
According to Acting United States Attorney Bruce D. Brandler, Jones failed to report over $500,000 in taxable income between 2014 and 2019 to avoid paying federal income taxes. Jones failed to report income he gained from illegal bookmaking activities and made false statements to federal agents in February 2019 during the investigation. Judge Mannion sentenced Jones to serve six months of his three-year term of probation on home confinement, and to pay $117,370 in restitution for taxes due and owing.
Judge Mannion noted that but for COVID, Jones would have had to serve prison time, but his medical conditions placed him at high risk.
The case was investigated by the U.S. Internal Revenue Service (IRS) and prosecuted by Assistant U.S. Attorney Sean A. Camoni.
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Oktaha Resident Found Guilty of Abusive Sexual Contact with A Child Age 12 to 16 YearsRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that Robert Dale Ogden, age 45, of Oktaha, Oklahoma was found guilty by a federal jury of Count Two - Abusive Sexual Contact with a Child Age 12 to 16 Years, in violation of Title 18, United States Code, Sections 1151, 1153, 2244(a)(3), and 2246(3). The jury trial began with testimony on Tuesday, March 2, 2021 and concluded on Thursday, March 4, 2021 with the guilty verdict on Count Two. The jury returned a not guilty verdict on Count One - Abusive Sexual Contact with a Child Age 12 to 16 Years, in violation of Title 18, United States Code, Sections 1151, 1153, 2244(a)(3), and 2246(3).
Evidence presented at trial proved that on or about June 26, 2019, within the Eastern District of Oklahoma, in Indian Country, the defendant, an Indian, did knowingly engage in and cause sexual contact as defined in Title 18, United States Code, Section 2246, with A.P., a person who had attained the age of 12 years but had not attained the age of 16 years and is at least four years younger than the person so engaging, to wit: intentionally touching, directly and not through the clothing, of the inner thigh, with an intent to abuse, humiliate, harass, degrade, arouse, and gratify the sexual desire of any person.
The verdict was the result of an investigation by the Oklahoma State Bureau of Investigation, the Muskogee County Sheriff’s Office, and the Federal Bureau of Investigation.
The Honorable John F. Heil, III, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the trial and ordered the completion of a presentence report. Sentencing will be scheduled following its completion. Ogden was remanded to the custody of the United States Marshal pending the imposition of sentencing.
Assistant United States Attorney Sarah McAmis and Special Assistant United States Attorney Erin Cornell represented the United States.
Okmulgee Resident Sentenced to 36 Months for Failure to Register as Sex OffenderRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Derrick Leron Jordan, age 49, of Okmulgee, Oklahoma, was sentenced to 36 months’ imprisonment, and 5 years of supervised release for Failure to Register as Sex Offender, in violation of Title 18, United States Code, Sections 2250(a)(1), 2250(a)(2)(B) and 2250(a)(3). The charges arose from an investigation by the Okmulgee Police Department and the United States Marshals Service.
The Indictment to which Jordan previously entered a guilty plea alleged that from on or about December 14, 2018, until on or about March 24, 2020, in the Eastern District of Oklahoma, and elsewhere, the defendant, an individual required to register as a sex offender under the Sex Offender Registration and Notification Act, after having received a felony conviction from the State of Oklahoma on or about April 22, 1999, for Rape First Degree and Oral Sodomy, traveled in interstate commerce and knowingly failed to register and update his registration as required by the Sex Offender Registration and Notification Act.
Acting United States Attorney Christopher J. Wilson said, “Ensuring that sex offenders register and update their registration is an important way law enforcement can promote public safety. In 2006, Congress passed the Sex Offender Registration and Notification Act (SORNA) which made it a federal offense for any person required to register as sex offender who travels in interstate or foreign commerce to fail to register and/or update their registration. Defendants, like Mr. Jordan, who attempt to thwart the registration system will be located and brought to justice.”
“As part of our efforts to keep our communities safe, it is with great pride that the United States Marshals Service works alongside state, local and tribal law enforcement to ensure that convicted sex offenders comply with the requirements of the Sex Offender Registration and Notification Act” said, United States Marshal Kerry Pettingill.
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in custody pending transportation to the designated federal facility at which the non-paroleable sentence will be served. Assistant United States Attorney Nalani Ching represented the United States.Ohio man admits to selling cocaineRead the Press Release
WHEELING, WEST VIRGINIA – Anthony L. Turner, of Toledo, Ohio, has admitted to a drug charge, Acting United States Attorney Randolph J. Bernard announced.
Turner, 43, pled guilty today to one count of “Distribution of Cocaine Base.” Turner admitted to selling cocaine base, also known a “crack cocaine,” in September 2020 in Ohio County.
Turner is facing up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Shawn M. Adkins is prosecuting the case on behalf of the government. The Ohio Valley Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge James P. Mazzone presided.
New Jersey Physician and Medical Practice Agree to Pay $106,255 to Resolve False Claims Act AllegationsRead the Press Release
NEWARK, N.J. – A New Jersey physician and his medical practice will pay $106,255 to resolve allegations that they violated the False Claims Act by making false representations in connection with submissions to the Centers for Medicare & Medicaid Services, Acting U.S. Attorney Rachael A. Honig announced today.
According to the contentions of the United States contained in the settlement agreement:
From Jan. 1, 2016, through March 31, 2020, Vedat Obuz and his medical practice, Lotus Clinics P.C./Lotus Family Medicine, falsely billed certain medical procedures to Medicaid and Medicare by representing that the procedures had been performed by Obuz when, in fact, those procedures were performed by nurse practitioners.
The allegations were originally made in a lawsuit filed under the whistleblower provisions of the False Claims Act by Kathleen Menold. The Act permits private parties to sue for false claims on behalf of the United States and to share in any recovery. Ms. Menold will receive 20 percent from the federal share of the settlement.
The government’s pursuit of this lawsuit illustrates its efforts to combat healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800‑HHS‑TIPS (800-447-8477).
Acting U.S. Attorney Honig credited special agents of the U.S. Department of Health and Human Services – Office of the Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; and special agents of the U.S. Attorney’s Office for the District of New Jersey, under the direction of Supervisory Special Agent Thomas Mahoney, with the investigation leading to the settlement.
The government is represented by Assistant U.S. Attorney Daniel Meyler of the Health Care Fraud Unit in Newark.
The lawsuit is captioned United States ex rel. Menold v. Lotus Family Medicine, Vedat Obuz, and Ozlem Obuz, 17-cv-1728 (D.N.J.). The claims settled by this agreement are allegations only, and there has been no determination of liability.
Muskogee Resident Sentenced to 18 Months for Mail Fraud, $560,000 RestitutionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Kenneth Gene Morgan a/k/a Kenny Morgan, age 44, of Muskogee, Oklahoma was sentenced to 18 months’ imprisonment and 3 years’ supervised release for Mail Fraud, in violation of Title 18, United States Code, Section 1341 and Tax Fraud, in violation of Title 26, United States Code, Section 7206(1). Morgan was also ordered to pay restitution in the amount of $442,883.66 to Direct Traffic Control, Inc. and restitution in the amount of $119,467.87 to the Internal Revenue Service. The charges arose from an investigation by the Federal Bureau of Investigation and the Internal Revenue Service.
The Information to which Morgan entered a guilty plea alleged in Count One that from August 15, 2016 through on or about March 22, 2017, in the Eastern District of Oklahoma and elsewhere, Morgan devised a scheme to defraud Direct Traffic Control, Inc. by diverting insurance claim funds received by Direct Traffic Control, Inc. through the U.S. Mail into his personal bank account. Specifically, on February 15, 2017, Morgan knowingly took and received from an authorized depository for mail an envelope, containing a check in the amount of $303,619.55, addressed to Direct Traffic Control, Inc. and Kenny Morgan.
The Information further alleged that on or about April 15, 2018, in the Eastern District of Oklahoma and elsewhere, the defendant, willfully made and subscribed a false 2017 Form 1040, U.S. Individual Income Tax Return, which contained and was verified by a written declaration that it was made under the penalties of perjury, and which he did not believe to be true and correct as to every material matter, in that he knowingly reported Adjusted Gross Income of $176,564.00, whereas, he then and there knew that the Adjusted Gross Income failed to report approximately $208,563.35 of income.
Morgan was ordered to surrender to the United States Bureau of Prisons by noon on May 1, 2021 to begin serving his sentence of imprisonment at a facility to be designated by BOP.
The Honorable David C. Joseph, U.S. District Judge from the United States District Court for the Western District of Louisiana, who is temporarily assigned to the Eastern District of Oklahoma, presided over the sentencing hearing. Assistant United States Attorney Douglas Horn represented the United States.
Muskogee Resident Sentenced to 12 Months for Child Neglect in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Brandon Edward Bridges, age 24, of Muskogee, Oklahoma, was sentenced to 12 months’ imprisonment, and 2 years of supervised release for Child Neglect in Indian Country, in violation of Title 18, United States Code, Sections 1151, 1153 and Title 21, Oklahoma Statutes, Section 843.5(C). The charges arose from an investigation by the Federal Bureau of Investigation.
The Indictment to which Defendant Bridges previously entered a guilty plea alleged that on or about December 7, 2019, in the Eastern District of Oklahoma, in Indian Country, the defendant, Brandon Edward Bridges, willfully and maliciously failed and omitted to provide six children with adequate food, clothing, shelter, sanitation and hygiene and appropriate care and supervision and failed to protect those children from exposure to the use and possession of illegal drugs and illegal activities all while responsible for the children's health, safety and welfare.
“Exposing children to the use and possession of illegal narcotics is inexcusable criminal conduct which cannot be tolerated,” said Acting United States Attorney Christopher J. Wilson. “It has been and will continue to be a priority of the U.S. Attorney’s Office to see to it our most vulnerable are protected.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in custody pending transportation to the designated federal facility at which the non-paroleable sentence will be served. Assistant United States Attorney Jarrod Leaman represented the United States.
Monticello Man Sentenced for Methamphetamine Trafficking and Possession of Firearm by a Convicted FelonRead the Press Release
LONDON, Ky. — A Monticello, Ky., man, Chandler Burnette, 40, was sentenced today to 84 months, by U.S. District Judge Robert Wier, for possession with intent to distribute methamphetamine and possession of firearm by a convicted felon.
According to Burnette’s plea agreement, on September 17, 2019, law enforcement officers responded to a theft report at Burnette’s residence. There, they found him in possession of 38 grams of methamphetamine and scales. Burnette admitted to possessing the drugs with the intent to distribute it to others. Law enforcement also found Burnette in possession of a .22 caliber handgun. Burnette admitted knowing he was a convicted felon and was prohibited from possessing a firearm.
Burnette pleaded guilty in October 2020.
Under federal law, Burnette must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for five years, following his release from prison.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Shawn Morrow, Special Agent in Charge, ATF, Louisville Field Division; and Tim Catron, Wayne County Sheriff, jointly announced the guilty plea.
The investigation was conducted by ATF and Wayne County Sheriff’s Department. The United States was represented by Assistant U.S. Attorney Nick Rabold.
This case was prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, the United States Attorney coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
This case is also part of Project Guardian, the Department of Justice’s targeted initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. Click here for more information about Project Guardian
Montgomery Man Sentenced to 75 Months in Prison after Drugs Found in 5-Year-Old Girl’s Book BagRead the Press Release
Montgomery, Alabama – On Friday, February 23, 2021, Tawasaki Leonorda Williams, a 35-year-old from Montgomery, Alabama, was sentenced to 75 months in prison for possession of a controlled substance with intent to distribute and possession of a firearm in furtherance of a drug trafficking crime, announced Acting U.S. Attorney Sandra J. Stewart. In addition to his prison sentence, Williams was ordered to serve three years of supervised release. There is no parole in the federal system. The sentence comes after Williams pleaded guilty to the charges in November of 2020.
According to court documents, on February 21, 2020, officers with the Montgomery Police Department stopped a vehicle being driven by Williams after they observed him commit a traffic infraction. Once Williams was stopped, he was removed from the vehicle along with a 5-year-old girl who was sitting in the back seat. During the stop, a K9 unit conducted a free-air search around the vehicle and gave a positive alert, indicating narcotics were present in the car. Officers searched the vehicle and located a .45 caliber pistol under the driver’s seat and a substantial quantity of drugs, including powder cocaine and numerous hydrocodone pills. The cocaine, pills and approximately $2,400.00 in cash were found in the little girl’s book bag, which had been sitting next to her on the seat. During a pat down of Williams, methamphetamine was found in his pocket.
When an arrest warrant resulting from these charges was being executed on Williams at his home in July of 2020, he was slow to respond to officers knocking and announcing their presence. While officers were at the door, they could hear the sound of flushing or running water inside the home. When law enforcement entered to make the arrest, they found more guns and drugs. Multiple children were also present in the home. Williams has multiple previous felony convictions and is prohibited from possessing a firearm.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Montgomery Police Department investigated this case, with assistance from the United States Marshals Service. Assistant United States Attorney Brandon Bates prosecuted the case.
Mineral County woman admits to drug chargeRead the Press Release
ELKINS, WEST VIRGINIA – Kelly Marie Talbert, of Keyser, West Virginia, has admitted to a drug charge, Acting United States Randolph J. Bernard announced.
Talbert, 37, pled guilty today to one count of “Distribution of Methamphetamine – Aiding and Abetting.” Talbert admitted to working with another to sell methamphetamine, also known as “crystal meth” or “ice,” in October 2018 in Hardy County.
Talbert faces up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Potomac Highlands Drug Task Force, the West Virginia State Police, the Grant County Sheriff’s Office, and the Moorefield Police Department investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Mineral County man sentenced for cocaine chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Davaun Alonzo Ambush, of Keyser, West Virginia, was sentenced today to 46 months of incarceration for a drug charge, Acting United States Attorney Randolph J. Bernard announced.
Ambush, 25, pled guilty to one count of “Possession with Intent to Distribute Cocaine Base” in November 2020. Ambush admitted to having “crack” cocaine in January 2020 in Mineral County.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The West Virginia State Police and the Potomac Highlands Drug Task Force, a HIDTA-funded initiative, investigated.
Chief U.S. District Judge Gina M Groh presided.
Mescalero man sentenced to a year and a half in prison for assault with a dangerous weaponRead the Press Release
ALBUQUERQUE, N.M. – Samuel Joseph Chee, 26, of Mescalero, New Mexico, and an enrolled member of the Mescalero Apache Tribe, was sentenced in federal court today to a year and a half in prison for assault with a dangerous weapon. Chee pleaded guilty on Oct. 8, 2020.
In his plea agreement, Chee admitted that on Jan. 4, 2020, he assaulted a victim, identified in court records as Jane Doe, with a knife. Jane Doe, also an enrolled member of the Mescalero Apache Tribe, suffered multiple lacerations to both arms and one thumb and required emergency medical treatment. The assault occurred on the Mescalero Apache Reservation in Otero County, New Mexico.
Upon his release from prison, Chee will be subject to three years of supervised release.
The Bureau of Indian Affairs investigated this case. Assistant U.S. Attorney Aaron O. Jordan prosecuted the case.
Manhattan U.S. Attorney Sues Automobile Device Manufacturer EZ Lynk, Its Owners, and A Related Company for Manufacturing and Selling Emissions Control Defeat Device in Violation of the Clean Air ActRead the Press Release
Audrey Strauss, United States Attorney for the Southern District of New York, and Larry Starfield, Acting Assistant Administrator for the Office of Enforcement and Compliance Assurance of the U.S. Environmental Protection Agency (“EPA”), announced today that the United States has filed a civil lawsuit against Cayman Islands-based EZ LYNK, SEZC (“EZ LYNK”), a related company, PRESTIGE WORLDWIDE, SEZC (“PRESTIGE”), and their U.S.-based founders and owners, BRADLEY GINTZ and THOMAS WOOD (collectively, “Defendants”). The lawsuit alleges that Defendants manufacture and sell a defeat device designed to permit car and truck owners to remove computerized emissions controls in violation of the Clean Air Act. The complaint also alleges that EZ LYNK, GINTZ, and WOOD violated the Clean Air Act by refusing to provide EPA with information about the manufacture, sale, and use of EZ LYNK’s defeat device.
U.S. Attorney Audrey Strauss said: “Emissions controls on cars and trucks protect the public from harmful effects of air pollution. EZ Lynk has put the public’s health at risk by manufacturing and selling devices intended to disable those emissions controls. Through our lawsuit, we will prevent Defendants from continuing to sell this product and impose civil penalties to hold them to account.”
EPA Acting Assistant Administrator Larry Starfield stated: “EZ Lynk refused to cooperate with EPA’s investigation, and all the while continued to sell aftermarket defeat devices that resulted in harmful air pollution. This is not acceptable and EPA will work diligently with the Department of Justice to stop the illegal activities and ensure that EZ Lynk complies with the Clean Air Act.”
The complaint filed in Manhattan federal court today alleges that for more than four years, Defendants violated the Clean Air Act’s prohibition on defeat devices. Among other things, the complaint alleges the following:
The Clean Air Act requires motor vehicle manufacturers to design vehicles to meet detailed standards for limiting the emission of harmful air pollutants, which are linked to premature death and cause heart and lung disease, heart attacks, and aggravated asthma, among other serious illnesses. To achieve these limitations, vehicles contain both hardware components and software that work together to maintain vehicle emissions within legal limits. The Clean Air Act makes it illegal to manufacture, sell, offer to sell, or cause to be sold any part or component that has a principal effect of defeating emissions controls, if the defendant knew or had reason to know the product is put to this use.
EZ LYNK manufactures and sells a product permitting drivers to “delete” computerized emissions controls in their vehicles, in violation of the Clean Air Act. Referred to as the “EZ Lynk System,” this product consists of three components: the Auto Agent, which is a physical device that plugs into vehicle computer systems to install software designed to “delete” emissions controls; the EZ Lynk Cloud, which is a cloud computing platform that stores the deletion software; and the Auto Agent App, a smartphone application that connects the Auto Agent to the EZ Lynk Cloud, allowing customers to acquire and install deletion software through their smartphones. EZ LYNK has sold its product to thousands of drivers across the United States.
EZ LYNK also knows and has reason to know that the principal effect and use of this product is to defeat emission controls. Among other things, EZ LYNK maintains an online “EZ Lynk Forum” on social media to encourage and assist drivers looking to disable their vehicle emissions controls using the EZ Lynk System. Hundreds of drivers have visited the EZ Lynk Forum to post their experiences “deleting” emissions controls using the EZ Lynk System. EZ LYNK representatives have explicitly approved many of the posts, and in some instances have offered technical support to drivers disabling emissions controls. For example:
- A driver posted, in part, “Finally made the jump and deleted my 14 Ram 2500: Holy hell [] this thing is awesome! The EZ lynk worked flawlessly, albeit I was a nervous wreck during the tune flash,” adding that “the guys at EZ lynk are doing great work!” The driver tagged an EZ Lynk representative, who later “loved” the post.
- Another driver posted to the EZ Lynk Forum, “Had a few small issues with my ez lynk install. Got in touch with the tech support. All issues resolved. Couldn’t be happier with my ez lynk. Truck has shown huge improvement with the deletes and new tunes.” Again, an EZ Lynk representative “loved” the post.
- A driver posted to the EZ Lynk Forum, “Installed ez Lynk on my 14 ram 3500 fully deleted the other day [but] as soon as it loaded” experienced a malfunction. The driver asked if anyone else had experienced the same problem. An EZ LYNK representative responded, providing detailed instructions to fix the problem. The driver then wrote “[p]roblems fixed with the help of EZ Lynk’s Technical Support Representative.”
In fact, some drivers have used the same EZ Lynk Forum maintained by EZ LYNK to urge others to keep quiet about their use of the EZ Lynk System to defeat emissions controls. For instance, one driver wrote, “If everyone keeps their mouth shut about deleting sooner or later the EPA will calm down.” Since the EZ Lynk System launched in mid-2016, EZ LYNK has manufactured and/or sold at least tens of thousands of EZ Lynk Systems.
Defendants GINTZ and WOOD own EZ LYNK and control, direct, and manage the marketing and sale of the EZ Lynk System as well as the technical support for the EZ Lynk System. Defendant PRESTIGE, which is also owned by GINTZ and WOOD, facilitates EZ LYNK’s sale of the EZ Lynk System in the United States by purchasing the Auto Agent devices from EZ Lynk and selling them onward to distributors that sell the devices within the United States.
EZ LYNK’s illegal activity has been compounded by its refusal to provide EPA with basic information about the manufacture, sale, and use of the EZ Lynk System. The Clean Air Act requires manufacturers like EZ LYNK to provide information that EPA may reasonably require to determine whether the manufacturer’s product complies with the Clean Air Act. As alleged in the complaint, despite repeated requests, EZ LYNK has refused to provide EPA with much of the requested information about the manufacture, sale, and use of the EZ Lynk System. EZ LYNK’s efforts to stymie EPA’s investigation also violate the Clean Air Act.
In its complaint, the United States seeks an injunction barring the sale of the EZ Lynk System, the assessment of civil penalties against all Defendants, and other relief.
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Ms. Strauss thanked the attorneys in EPA’s Air Enforcement Division and program staff at EPA’s Office of Transportation and Air Quality for their critical work on this case. Ms. Strauss also thanked Nicole Veilleux, Senior Counsel in the Environment and Natural Resources Division of the U.S. Department of Justice, for her assistance.
This case is being handled by the Environmental Protection Unit of the Office’s Civil Division. Assistant U.S. Attorneys Mónica Folch and Jennifer Jude are in charge of the case.
- A driver posted, in part, “Finally made the jump and deleted my 14 Ram 2500: Holy hell [] this thing is awesome! The EZ lynk worked flawlessly, albeit I was a nervous wreck during the tune flash,” adding that “the guys at EZ lynk are doing great work!” The driver tagged an EZ Lynk representative, who later “loved” the post.
Manhattan U.S. Attorney Announces Resolution of Civil and Criminal Healthcare Fraud Charges Against Vascular Surgeon for Fraudulently Billing Medicare for Medically Unnecessary ProceduresRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, and Scott Lampert, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General’s (“HHS-OIG”) New York Region, announced today that the civil and criminal healthcare fraud cases against FENG QIN, M.D. (“QIN”), a vascular surgeon, and his medical practice QIN MEDICAL P.C. (“QIN MEDICAL”) have been resolved. QIN, who practiced in Lower Manhattan and Far Rockaway, Queens, was criminally charged in December 2018 with fraudulently billing Medicare for vascular surgery procedures performed on end-stage renal disease (“ESRD”) patients that were not medically reasonable and necessary or covered under Medicare rules; the United States also filed a civil healthcare fraud complaint against QIN and QIN MEDICAL in December 2018.
Under the civil settlement approved today by U.S. District Judge Laura Taylor Swain, QIN and QIN MEDICAL agreed to a pay $783,200 to the United States. The State of New York is expected soon to enter into an additional settlement with defendants in the amount of $16,800, for a total recovery of $800,000. The amount is based on the Office’s assessment of the defendants’ ability to pay based on the financial information they provided. As part of the settlement, QIN and QIN MEDICAL admitted and accepted responsibility for conduct alleged by the Government in its civil complaint as further described below. QIN previously paid $150,000 to settle a prior civil fraud lawsuit filed against him and his previous employer for engaging in fraudulent billing practices during the time period 2010 through 2012.
QIN also entered into a Voluntary Exclusion Agreement with HHS-OIG, which prohibits him from participating in Medicare and other federal healthcare programs for four years. This is in addition to the more than two years he has been so excluded since his arrest, as a condition of his bail. The Government has agreed to defer QIN’s criminal prosecution for a period of one year, after which time it will seek to dismiss the charges if QIN abides by the terms of the deferred prosecution agreement.
Manhattan U.S. Attorney Audrey Strauss said: “For several years, Dr. Qin performed interventional vascular procedures on patients with end-stage renal disease without any documented clinical justification. As a repeat offender, Dr. Qin now faces a lengthy suspension from participating in federal healthcare programs and must make a hefty monetary payment. This Office will continue to hold unscrupulous medical providers accountable when they perform and bill the Government for medically unnecessary procedures.”
HHS-OIG Special Agent in Charge Scott Lampert said: “By billing Medicare for medically unnecessary procedures, Dr. Qin needlessly compromised patient care and victimized taxpayers. Our agency will continue to hold medical professionals accountable, while protecting the federal health care programs intended for those that depend on them for critical services.”
According to the indictment and the Government’s civil complaint:
Patients with ESRD who are receiving dialysis may require vascular access surgical procedures, such as fistulagrams, where dye is injected into the patient’s vein or artery to visualize blood flow, and percutaneous transluminal angioplasties, in which wires and balloons are inserted into blood vessels that have narrowed in order to restore blood flow. However, as Medicare billing guidelines made clear, it is not reasonable and necessary for physicians to bill the program for fistulagrams and angioplasties unless the patient has specific and documented clinical problems, such as significant difficulty receiving dialysis properly.
The patients at QIN’s medical practice primarily consisted of ESRD patients undergoing dialysis treatment. During the relevant period, from 2015 to 2016, QIN routinely scheduled patients for fistulagrams and angioplasties three months in advance, and performed fistulagrams and angioplasties on these patients as a matter of routine, regardless of whether there was a justifiable clinical reason to do so. Furthermore, on multiple occasions he misrepresented the medical conditions of patients in their medical records to make it seem as if they suffered from symptoms that would warrant the procedures when they did not. QIN MEDICAL then unlawfully billed and received payment from Medicare for these procedures, which were excluded from Medicare coverage, as QIN knew.
As part of the civil settlement, QIN and QIN MEDICAL admit, acknowledge, and accept responsibility for the following conduct:
- QIN often routinely scheduled, and actually saw, ESRD patients approximately every three months, regardless of their medical need.
- QIN treated many of his ESRD patients with fistulagrams and angioplasties. The symptoms documented in the medical records, including the records of the dialysis center and the treating nephrologist, were insufficient to justify these treatments for numerous ESRD patients.
- QIN knew that in the absence of a documented clinical justification, Medicare would not pay for fistulagrams or angioplasties. Nevertheless on numerous occasions, QIN MEDICAL sought and received reimbursement from Medicare for these treatments without the required documented clinical justification.
The allegations of fraud stated in the civil complaint were first brought to the attention of federal law enforcement by a whistleblower who filed a lawsuit under the False Claims Act.
The criminal case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Jean-David Barnea, Michael Krouse, and Alexander Li are in charge of the criminal prosecution. The civil case is being handled by the Office’s Civil Frauds Unit, and Assistant United States Attorney Barnea is in charge of the matter.
- QIN often routinely scheduled, and actually saw, ESRD patients approximately every three months, regardless of their medical need.
Man Pleads Guilty to Reporting Fake Bomb Threats Against Federal BuildingRead the Press Release
Assistant U.S. Attorney Brian L. Hazen (619) 546-6695
NEWS RELEASE SUMMARY – March 8, 2021
SAN DIEGO – Manuel de Jesus Rodriguez-Hernandez pleaded guilty in federal court today to reporting fake bomb threats against the Imperial Regional Detention Facility in Calexico, California. The charge to which Rodriguez-Hernandez pleaded guilty carries a statutory maximum of five years in federal prison.
On January 13, 2021, Mr. Rodriguez-Hernandez was housed as a civil detainee at the Imperial Regional Detention Facility awaiting federal immigration proceedings. That afternoon, he called the U.S. Department of Homeland Security’s hotline and said that earlier in the day he had been speaking with his wife on the telephone when the line was interrupted by an unknown person who said there was a bomb at the Detention Facility that was going to explode.
Shortly after the Facility’s management was notified of the threat, security personnel activated emergency protocols, which included the deployment of the bomb squad from the Imperial County Sheriff’s Office. After hanging up with the hotline, Mr. Rodriguez-Hernandez separately approached a detention officer and told the same story—that a bomb was at the detention facility and it was going to explode. For the next several hours, authorities from the Detention Facility and the Sheriff’s Office’s bomb squad thoroughly searched the facility but no explosive devices were found.
When interviewed after the Detention Facility was cleared, Mr. Rodriguez-Hernandez ultimately admitted he fabricated the bomb threats so that federal authorities would initiate an investigation at the Detention Facility.
“This senseless hoax needlessly caused fear and disruption and jeopardized the sense of safety for inmates and employees of this facility,” said Acting U.S. Attorney Randy Grossman. Grossman praised federal prosecutor Brian L. Hazen and federal agents from Immigration and Customs Enforcement for their excellent work on this case.
DEFENDANT Criminal Case No. 21-CR-0339-W
Manuel de Jesus Rodriguez-Hernandez Age: 33
SUMMARY OF CHARGE
Conveying False Information and Hoaxes (Felony) – Title 18, U.S.C., Section 1038(a)(1)
Maximum penalty: Five years in prison; $250,000 fine
INVESTIGATING AGENCY
U.S. Immigration and Customs Enforcement
Luzerne County Man Sentenced to 96 Months’ Imprisonment for Drug TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on March 4, 2021, Vincent Carter, age 36, of Nanticoke, Pennsylvania, was sentenced to 96 months’ imprisonment followed by a three-year term of supervised release by U.S. District Court Judge Malachy E. Mannion for drug trafficking offenses.
According to Acting U.S. Attorney Bruce D. Brandler, Carter distributed fentanyl on multiple occasions in March 2019, in Nanticoke, Pennsylvania. After a search of his residence and vehicle, additional amounts of fentanyl and narcotics packaging were recovered.
The case was investigated by the Kingston Police Department, the Nanticoke Police Department and the Bureau of Alcohol, Tobacco and Firearms. Assistant United States Attorney Geoffrey W. MacArthur prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal enforcement and the local community to develop effective, locally-based strategies to reduce crime. This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state, and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Leicester Man Arrested for Involvement in Unemployment Fraud SchemeRead the Press Release
BOSTON – A Leicester man was arrested on Friday, March 5, 2021 in connection with allegedly using a stolen identity to fraudulently claim unemployment benefits from the State of Nevada.
William Cordor, 26, was charged by criminal complaint one count of wire fraud and one count of aggravated identity theft. Following an initial appearance in federal court in Worcester, Cordor was detained pending a detention hearing set for March 11, 2021.
According to the charging documents, Cordor was encountered by police on Aug. 18, 2020 in connection with a domestic violence incident. Police found Cordor in possession of approximately 21 prepaid debit cards in approximately 13 different names. Investigators then determined that on July 17, 2020, Cordor electronically filed a claim with the Nevada Department of Employment, Training and Rehabilitation (NV DETR) for unemployment benefits using one of the identities that appeared on the prepaid debit cards, including the victim’s name and Social Security number. Cordor allegedly listed the prepaid debit card as the account to receive the unemployment benefits. Nevada authorities marked the claim as fraudulent and did not issue the unemployment benefits.
It is further alleged that Cordor’s residential address was listed to the prepaid debit card intended to receive the unemployment benefits. Agents also found documents with the victim’s name on Cordor’s laptop during a search at his residence.
Charging documents detailed that on May 21, 2020 Cordor admitted to federal agents that he had fraudulently obtained unemployment benefits from the Commonwealth of Massachusetts. That same day, Cordor agreed to surrender to federal authorities the balance of $79,600 in his bank account that were proceeds of his unemployment fraud scheme in Massachusetts. This occurred before Cordor is alleged to have filed the fraudulent unemployment claim with Nevada in July 2020.
The wire fraud charge provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of $250,000. The charge of aggravated identity theft provides for a mandatory sentence of two years in prison. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Michael Mikulka, Special Agent in Charge of Department of Labor, Office of Inspector General, Office of Investigations; Frederick J. Regan, Special Agent in Charge of U.S. Secret Service, Boston Field Office; Leicester Police Chief Kenneth Antanavica; and Marlboro Police Chief David Giorgi made the announcement. Assistant U.S. Attorney John T. Mulcahy of Mendell’s Worcester Branch Office is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Landlord to Pay $128,000 under the False Claims Act for Allegedly Renting Subsidized Section 8 Apartment to a Family MemberRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Dmitry Royzman, will pay $128,000 to resolve False Claims Act allegations that he illegally claimed subsidies from the U.S. Department of Housing and Urban Development (“HUD”) while renting an apartment to his mother-in-law in violation of the program’s requirements.
The settlement resolves allegations that, between December 2008 and August 2020, Royzman rented a subsidized apartment to his mother-in-law in violation of the Housing Choice Voucher Program’s (“HCVP”) requirements. The HCVP is commonly known as Section 8 housing. In the settlement agreement, the United States alleges that Royzman participated as a landlord in the HCVP, a program whereby HUD provides rental subsidies for eligible low-income tenants who locate acceptable rental units on the private market. The government alleges that Royzman submitted documents to the Bucks County Housing Authority (which administers the HCVP in Bucks County) falsely certifying that the assisted tenant in Royzman’s rental property was not an immediate relative of the property’s owners. In fact, the sole tenant was Royzman’s mother-in-law, which precluded Royzman’s receipt of HCVP rental subsidies.
“HUD instituted the HCVP program to help low-income residents without other options obtain decent housing,” said Acting U.S. Attorney Williams. “Landlords who agree to participate in this program cannot manipulate it to give subsidized housing to their relatives. By investigating this case, we have put all landlords participating in the Section 8 program on notice that they cannot put relatives in apartments for which they are receiving HCVP funds.”
Williams added, “From the time that this matter was brought to his attention, Mr. Royzman committed himself to setting things right. We appreciate his cooperative approach and efforts toward rectifying the problem.”
“The U.S. Department of Housing and Urban Development, Office of Inspector General is committed to working with the Department of Justice and community stakeholders to ensure that Federal funds intended to help low-income families are not wasted or misapplied,” said Acting Special Agent in Charge Shawn Rice. “Today’s settlement underscores the government’s commitment to protecting the integrity of HUD programs against fraud, waste, or abuse.”
This case was investigated by the U.S. Department of Housing and Urban Development, Office of Inspector General, and by the Bucks County Housing Authority. For the United States Attorney’s Office, Assistant United States Attorney Colin Cherico handled the investigation and settlement.
The claims resolved by the settlement are allegations only; there has been no determination of liability.
Laconia Couple Convicted of Participating in Methamphetamine Trafficking ConspiracyRead the Press Release
CONCORD – Acting United States Attorney John J. Farley announced that on Friday, March 5, 2021, after a three-day trial, a federal jury found Crystal Hardy, 38, and Christopher Kelly, 43, both of Laconia, guilty of conspiracy to distribute, and possess with intent to distribute, methamphetamine. The jury also found Kelly guilty of being a felon in possession of a firearm and ammunition.
According to evidence presented during the trial, on April 5, 2019, members of the Tilton Police Department stopped Crystal Hardy for a motor vehicle violation. Christopher Kelly was a passenger in the vehicle. Officers later executed a search warrant on the vehicle and discovered methamphetamine, fentanyl, two loaded firearms, over $28,000 in cash, a digital scale, measuring tools, a pouch full of plastic baggies and a drug ledger. Other trial evidence showed that Hardy and Kelly regularly distributed methamphetamine throughout 2019 and had no legitimate income to explain the large sum of money found in the vehicle.
The two loaded firearms were discovered in a backpack that also contained a large bullet-proof vest, a baton, mail addressed to Kelly and three prescription bottles in Kelly’s name. As a convicted felon, Kelly is prohibited from possessing a firearm and ammunition.
Crystal Hardy is scheduled to be sentenced on June 11, 2021.
Christopher Kelly is scheduled to be sentenced on June 14, 2021.
“Methamphetamine is a very dangerous drug that can damage users’ bodies and cause havoc in our communities,” said Acting U.S. Attorney Farley. “When armed criminals are involved in drug trafficking, the risk to public safety is even greater. I am grateful to the Tilton Police Department and all our law enforcement partners for their work on this investigation. We will continue to work closely with our law enforcement partners to identify and prosecute those who are responsible for distributing dangerous drugs in the Granite State.”
This case was the first federal jury trial conducted in New Hampshire in 2021. As with the trials conducted in 2020, the court conducted the trial using a variety of health and safety precautions. For example, all participants in the trial wore masks and maintained social distancing.
This matter was investigated by the Tilton Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration, Internal Revenue Service-Criminal Investigation, and United States Marshals Service. New Hampshire Employment Security and the Strafford County Attorney’s Office also provided assistance, The case was prosecuted by Assistant U.S. Attorneys Debra Walsh and Aaron Gingrande.
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Jury Convicts Richmond Fentanyl, Heroin, and Cocaine TraffickerRead the Press Release
RICHMOND, Va. – A federal jury convicted a Richmond man today for possessing with the intent to distribute a mixture of heroin, cocaine, and fentanyl.
“Synthetic opioids, including fentanyl, unfortunately continue to play a disproportionate role in drug overdoses and overdose deaths, inflicting devastation on families across the United States and in EDVA,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “We are grateful to our law enforcement partners who continue the fight to keep these lethal substances out of our communities and away from harming our loved ones.”
According to court records and evidence presented at trial, in May 2019, law enforcement initiated an investigation into certain heroin and cocaine trafficking activities in the Richmond metropolitan area. On September 26, 2019, a warrant was issued for the residence of Fernardo Lee Jordan, 67. Inside his home in Richmond, law enforcement agents discovered bags containing brown and white substances and $18,560 in U.S. currency. Agents also found a scale and packaging material, among other items associated with drug trafficking. The substances were later determined to be over a quarter of a kilogram of a mixture and substance containing heroin and fentanyl, over a quarter of a kilogram of cocaine powder, and several ounces of heroin, with a combined street value of over $40,000.
Jordan was convicted of possession with the intent to distribute controlled substances including over 100 grams of a mixture of heroin and fentanyl, a quantity of heroin, and a quantity of cocaine hydrochloride. Jordan faces a mandatory minimum penalty of five years in prison and a maximum of 40 years in prison when sentenced on May 20. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Jarod Forget, Special Agent in Charge for the Drug Enforcement Administration’s Washington Division; and Colonel Jeffrey S. Katz, Chesterfield County Police Department, made the announcement after Senior U.S. District Judge Robert E. Payne accepted the verdict.
Assistant U.S. Attorney Olivia L. Norman is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:20-cr-31.
Information Technology Company Owner and Former NSA Contractor Facing Federal Indictment for Submitting False Claims for Hours Worked on a Government ContractRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted Jacky Lynn McComber, formerly Jacky Lynn Kimmel age 48, of Elkridge, Maryland, on the federal charges of submitting false claims and making false statements, in connection with the hours she claimed to have worked on a federal contract. McComber is the CEO and owner of InfoTeK, an information technology (IT) services corporation. At her initial appearance and arraignment today in U.S. District Court in Baltimore, McComber pleaded not guilty and U.S. Magistrate Judge Thomas M. DiGirolamo ordered that she be released pending trial. The indictment was returned on February 25, 2021.
The indictment was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Robert P. Storch, Inspector General of the National Security Agency; and Special Agent in Charge Chris Dillard of the Defense Criminal Investigative Service - Mid-Atlantic Field Office.
The National Security Agency (NSA) is a component of the United States Department of Defense. According to the indictment, from July 2011 until February 2018, the NSA had an ongoing contract, known as the Ironbridge contract, with InfoTeK to provide maintenance and enhancement support for the information technology and software requirements of the NSA’s National Security Operations Center (NSOC) and the Counter Terrorism Mission Management Center (CTMMC). Because the subject matter of these contracts involved classified information, all of the work had to be performed at secure, access-controlled locations. McComber was therefore required to be physically present at her assigned duty locations to do her work. InfoTeK billed the NSA on a monthly basis for the hours worked by its employees and contractors.
According to the 20-count indictment, the Ironbridge contract required InfoTeK to identify a Program Manager (PM) who would be responsible for overseeing InfoTeK’s performance of its contractual obligations and serving as InfoTeK’s point of contact with government officials. From 2011 to 2013, several individuals, including McComber, served as the PM on the Ironbridge contract. Starting in the summer of 2013, Individual A held the position of Senior Program Manager on the Ironbridge contract, until she was replaced by McComber in mid-March 2016. McComber held the position through September 2017. The indictment alleges that for 17 months, beginning in mid-March 2016 when McComber took over the PM position, she billed an average of 144 hours per month to the NSA for her supposed work. In all, between March 14, 2016 and September 8, 2017, InfoTeK billed NSA for 2,603.5 hours of work on the Ironbridge contract allegedly performed by McComber in her role as Senior Program Manager. NSA paid these charges in full, at a total cost of $388,878.78.
The indictment alleges that a subsequent review and comparison by the NSA OIG in the fall of 2017 of McComber’s NSA key card with the time InfoTeK billed for her work on the Ironbridge contracts established that McComber was not present at her duty station for 2,342.5 (90%) of the 2.603.5 hours she had recorded on her timesheets and that InfoTeK subsequently billed to NSA. In addition to allegedly not being physically present at the worksite for the vast majority of hours she billed to the Ironbridge contract, the indictment alleges that McComber did not work the number of hours on the Ironbridge contract that she recorded on her timesheet. For example, the indictment alleges that on occasions when McComber billed a full eight-hour day to the Ironbridge contract, she participated in charity events, attended her high school reunion, vacationed in Texas and in Ocean City, Maryland, and performed other business development efforts on behalf of InfoTeK that were unrelated to the Ironbridge contract. As a result of McComber’s alleged false claims as to the time she worked on the Ironbridge contract between April 2016 and September 2017, the indictment alleges that NSA substantially overpaid InfoTeK.
Finally, the indictment alleges that on October 3, 2017, McComber participated in a voluntary interview with NSA OIG investigators concerning allegations that she had charged the government for hours that she did not actually work. McComber allegedly falsely claimed that she did not falsely fill out her timesheet or put any false information on it.
If convicted, McComber faces a maximum sentence of five years in federal prison for each of 19 counts of submitting false claims and for one count of making false statements. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Jonathan F. Lenzner commended the National Security Agency Office of Inspector General and DCIS for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Jefferson M. Gray and Joyce K. McDonald, who are prosecuting the case.
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Indictment Alleges Visa Fraud Scheme that Used Surrogate Test-Takers and ‘Guaranteed’ Foreign Student Admission into CollegesRead the Press Release
LOS ANGELES – The second defendant named in a federal grand jury indictment surrendered today to face charges stemming from a scheme that used bogus transcripts, ghostwritten admissions essays, and imposters who took standardized tests to help foreigners gain admission to colleges, allowing them to fraudulently obtain student visas to enter or remain in the United States.
Yi Chen, aka “Brian Chen,” 33, of Monrovia, pleaded not guilty this afternoon to charges in a 21-count grand jury indictment that alleges conspiracy, visa fraud and aggravated identity theft.
Chen’s co-defendant – Yixin Li, aka “Eason Li” and “Calvin Wong,” 28, of San Gabriel – surrendered on March 2 and pleaded not guilty at an arraignment that afternoon.
The indictment alleges that Chen and Li owned “educational consulting” companies in Alhambra and Arcadia that charged foreign students thousands of dollars for “guaranteed” admission to a college that would lead to the issuance of an F-1 student visa. To secure admission to a school, the companies prepared application packages that used bogus or altered transcripts, and they hired people to impersonate the prospective student to take standardized tests, such as the Test of English as a Foreign Language (TOEFL).
The indictment lists a number of foreign nationals for whom Chen and Li allegedly obtained, altered or fabricated transcripts, which helped the students obtain admission to schools across the United States, including New York University, Columbia University, Boston College, and several University of California campuses.
Once a foreign student was admitted to a college, the school issued a “Form I-20, Certificate of Eligibility for Nonimmigrant (F-1) Student Status – For Academic and Language Students,” which provided the basis for a visa application or extension of permission to remain in the United States.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Chen and Li are charged with conspiracy, which carries a statutory maximum sentence of five years in federal prison. They are also named in various counts of fraud and misuse of visas, permits, and other documents, an offense that carries a sentence of up to 10 years in prison. Chen and Li are each charged with one count of aggravated identity theft, which carries a mandatory two-year prison sentence that would run consecutively to any other prison term imposed in the case.
Chen and Li are linked to a group of imposter test-takers who were the subject of an earlier indictment that outlined how they used fake Chinese passports to take TOEFL exams on behalf of foreigners seeking college admissions and student visas. All six defendants in that earlier case pleaded guilty and were sentenced to probation.
During today’s arraignment, Chen was ordered detained pending trial, which was scheduled for May 4.
At Li’s arraignment last week, a United States magistrate judge set bond at $200,000, but he has yet to post bond and remains in custody. A trial date for Li was scheduled for April 27.
The case against Chen and Li, as well as the earlier case targeting the test-takers, was investigated by Homeland Security Investigations and the Department of State, Diplomatic Security Service. U.S. Citizenship and Immigration Services, Fraud Detection and National Security Section, provided substantial assistance. The Educational Testing Service, which administers the TOEFL exam, provided assistance during the investigation.
The indictment against Chen and Li is being prosecuted by Special Assistant United States Attorney Matthew C. Chan and Assistant United States Attorney Julia Hu, both of the General Crimes Section.
Idabel Resident Sentenced to 30 Months for Possession of Firearm, AmmunitionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Robert L. Lemons, age 33, of Idabel, Oklahoma, was sentenced to 30 months’ imprisonment for Felon In Possession of Firearm & Ammunition, in violation of Title 18, United States Code, Sections 922(g)(1), 924(a)(2), and 924(e)(1). The charges arose from an investigation by the Idabel Police Department, the McCurtain County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The single-count Indictment to which Lemons previously entered a guilty plea alleged that on or about January 13, 2019, in the Eastern District of Oklahoma, the defendant, Robert L. Lemons, having previously been convicted of a crime punishable by imprisonment for a term exceeding one year, and knowing of said conviction, did knowingly possess in and affecting commerce, a firearm and ammunition which had been shipped and transported in interstate and foreign commerce.
“The investigation in this case began with a report of a person exhibiting suspicious behavior. A citizen doing the right thing led to removing a firearm out of the hands of a convicted felon. If you see something unusual or suspicious, contact law enforcement immediately,” said Acting United States Attorney Christopher J. Wilson.
“Felons and firearms don’t mix, Mr. Lemons now knows this. The streets are safer because of the hard work of all our law enforcement partners,” stated ATF Special Agent in Charge Jeffrey C. Boshek II.
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in custody pending transportation to the designated federal facility at which the non-paroleable sentence will be served. Assistant United States Attorney Ben Gifford represented the United States.Grant and Preston County residents indicted on drug chargesRead the Press Release
ELKINS, WEST VIRGINIA – Trampas Quint Wolford, of Cabins, West Virginia, was arraigned on charges after being indicted by a federal grand jury sitting in Elkins in February 2021, Acting United States Attorney Randolph J. Bernard announced.
Wolford, 57, was indicted on one count of “Conspiracy to Distribute Methamphetamine” and one count of “Distribution of Methamphetamine.”
Also named in the indictment are Angela Dawn Yuchek, of Tunnelton, West Virginia, and Peter Sanford Layne, of Cabins, west Virginia.
Yuchek, 31, was indicted on one count of “Conspiracy to Distribute Methamphetamine,” one count of “Distribution of Methamphetamine – Aiding and Abetting,” and one count of “Distribution of Methamphetamine.”
Layne, 48, was indicted on one count of “Conspiracy to Distribute Methamphetamine,” one count of “Distribution of Methamphetamine – Aiding and Abetting,” and one count of “Distribution of Methamphetamine.”
All three are accused of working together to distribute methamphetamine, also known as “crystal meth” and “ice,” from January 2019 to March 2019 in Preston and Grant Counties.
Yuchek, Layne, and Wolford each face up to 20 years of incarceration and a fine of up to $1,000,000 for each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Potomac Highlands Drug Task Force, a HIDTA-funded initiative; the West Virginia State Police; the Grant County Sheriff’s Office; the Moorefield Police Department investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
U.S. Magistrate Judge Michael John Aloi presided.
Grand Jury Indicts Two in "Grandparent Scam"Read the Press Release
PROVIDENCE – A federal grand jury has returned an indictment charging two Providence men with allegedly running a so-called “grandparent scam” in two states, fraudulently obtaining or attempting to obtain thousands of dollars in cash from at least nine elderly victims by claiming the money was needed immediately to assist a relative, typically the victim’s grandchild or child, who had purportedly been arrested or jailed.
It is alleged in the indictment that members of the conspiracy sometimes posed briefly on the telephone as the victims’ relative, sounding upset or ill to disguise their voice, to further persuade the victim to provide the cash. It is alleged that victims were instructed by a co-conspirator posing as an attorney to provide the cash to a courier or bail bondsman that would arrive at their home to collect the cash. The victims were told that a “gag order” was in place on their relative’s legal matter that prohibited the victims from sharing information about the matter.
In many instances, victims reported to law enforcement that the person who arrived at their home to collect the cash did so in a white van and wore a work uniform type vest.
It is alleged in the indictment that Vidal “Sandy” Roquez, 35, and Schmitt A. Prado, 26, participated in a conspiracy to defraud senior citizens in Portsmouth, Tiverton, Cranston, South Kingstown, and Warwick, Rhode Island, and in Shrewsbury, Northborough, and Weston, Massachusetts, of between $9,000 and $14,000.
According to court documents, on February 18, 2020, a Little Compton, R.I. resident reported to his local police department that he received a call from a female purporting to be his granddaughter and that she had been arrested and was in need of bail money. A male voice then came on the telephone to speak with the targeted victim, he identified himself as an attorney, said that the victim’s granddaughter had crashed into a police cruiser while taking a selfie and that $9,000 in cash was needed to bail his granddaughter out of jail. The money was to be paid to a bail bondsman, who would be arriving at his house.
The Little Compton man contacted the Little Compton Police Department about the call. Police officers were at the man’s house when Schmitt Prado allegedly arrived to collect the cash. Prado was arrested when it was determined that it was allegedly a scam.
Further investigation following the arrest of Prado led law enforcement to identify the white van described by many of the victims. The van was traced to Vidal Roquez’s residence.
The grand jury returned an indictment charging Schmitt Prado and Vidal Roquez with conspiracy to commit wire fraud and aggravated identity theft, announced Acting United States Attorney Richard B. Myrus, Homeland Security Investigations Acting Special Agent in Charge William S. Walker, and Little Compton Police Chief Scott Raynes.
A federal indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant U.S. Attorney Denise M. Barton.
Acting United States Attorney Richard B. Myrus acknowledges and thanks the Warwick, Portsmouth, Tiverton, Cranston, and South Kingstown, R.I. Police Departments; the Shrewsbury, Northborough, and Weston, MA, Police Departments; and the Rhode Island Fusion Center for their assistance in the investigation of this case.
Combatting elder abuse and financial fraud targeting seniors is a key priority of the Department of Justice. If you are a victim or know a victim of elder fraud, you can call 1-877-FTC-HELP or go to ftc.gov/complaint. For downloadable Elder Abuse Prevention resources and for information about community outreach programs in Rhode Island, visit the United States Attorney’s Office’s Elder Justice Initiative web page at https://www.justice.gov/usao-ri/elder-justice.
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Grand Bay Man Sentenced to Thirty-Five Years in Prison in Child Pornography CaseRead the Press Release
United States Attorney Sean P. Costello of the Southern District of Alabama announced that United States District Chief Judge Kristi DuBose sentenced defendant Bryan Thompson, 44, to 35 years imprisonment on a charge of production of child pornography and a charge of distribution of child pornography. Thompson pled guilty to the charges in December 2020.
According to court documents filed in connection with his guilty plea, in November of 2015, Alabama Law Enforcement Agency was provided with details of a joint investigation between the Bernalillo County Sheriff’s Department in New Mexico and the FBI. The Bernalillo Sheriff’s Department had been engaged in an online child exploitation investigation and identified a person in Alabama as someone who was trading child pornography online. Investigators were able to obtain a search warrant for the IP address which was sharing child pornography, and the physical address was associated with Thompson.
On November 12, 2015, a search warrant was executed at Thompson’s residence. Thompson was interviewed and admitted that he joined chat groups and received child pornography images and videos from a number of those chat groups. Agents seized numerous electronic devices from the home. A forensic analysis was completed by Homeland Security Investigations. The examination revealed that the two hard drives, one tablet, several smartphones and one micro SD card contained 971 images and 214 videos of child exploitation material.
During the forensic analysis of the devices, the forensic analyst discovered images that appeared to show Thompson performing sex acts on a pre-pubescent minor. On January 2, 2018, Thompson was interviewed. He was advised that the forensic analysis had been completed on his devices and that the analysis revealed that he had sexually abused a minor and documented the abuse electronically. Thompson admitted that he had inappropriate contact with a pre-pubescent minor, who was then about six years old. Thompson detailed the abuse for investigators, and admitted that he had filmed it. Agents again seized all electronic devices in the home.
In July 2018, a forensic analyst completed analysis on all the devices seized from Thompson in January. The analysis confirmed that there were approximately ten images created that showed Thompson’s sexual abuse of the minor. The analyst further located 394 images and 43 videos which appear to be child sexual abuse imagery in the laptop seized in 2018. There were also 547 child erotica and age-indeterminate images. There were 435 child sexual abuse images and 4 videos on Thompson’s cell phone that was seized in 2018. There were also 1706 child erotica and age-indeterminate images.Thompson gave permission to Homeland Security agents to take over his KIK account. Once in the KIK app, agents located a number of messages in chatrooms where child pornography was being advertised and distributed. In one such group, Thompson had posted a link to a MEGA account which contained 970 images of child pornography, including child bestiality and child S&M images. Of those images, over 900 of them were videos, and the remaining were still images. This same link to the MEGA account was shared in at least three different chat rooms. The content of the chat rooms makes it clear that the users were engaged in sharing child pornography.
United States District Court Chief Judge Kristi DuBose imposed a sentence of 35 years imprisonment. The judge ordered that Thompson undergo mental health treatment while incarcerated. The judge further ordered that Thompson be supervised by federal probation officers for the rest of his life after finishing his prison term, and he is to have no contact with minors. Upon his release from prison, Thompson will be required to register as a sex offender. Judge DuBose ordered that Thompson pay $10,200 in special assessments.
The Alabama Law Enforcement Agency and Homeland Security Investigations investigated the case. Assistant United States Attorney Kacey Chappelear prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Fremont Man Sentenced to 10 Years’ Imprisonment for Conspiring to Distribute MethamphetamineRead the Press Release
Acting United States Attorney Jan Sharp announced that Richard Snyder, age 46, of Fremont, Nebraska, was sentenced today in federal court in Omaha, Nebraska, after having pleaded guilty to Conspiracy to Distribute Methamphetamine. Senior United States District Judge Joseph F. Bataillon sentenced Snyder to 120 months’ imprisonment. After completing his term of imprisonment, Snyder will be required to serve a 5-year term of supervised release as there is no parole in the federal system.
On March 11, 2019, a Fremont police officer approached a parked vehicle. The driver's side window was down, and the officer observed Snyder sitting in the driver's seat holding a self-seal bag containing a white crystal-like substance. After making contact, the officer seized the substance which later tested positive for methamphetamine, with the total weight being approximately 2 grams. During a post-arrest interview, Snyder admitted to delivering 2-3 pounds of methamphetamine in the last six months.
This case was investigated by Officers of the III CORPS Task Force.
Fourth Circuit Court of Appeals Affirms $114 Million Judgment Against 3 Defendants Found Liable of Defrauding Medicare and TricareRead the Press Release
Columbia, South Carolina --- Acting United States Attorney for the District of South Carolina M. Rhett DeHart announced today that the United States Court of Appeals for the Fourth Circuit has affirmed a $114 million judgment against Floyd Calhoun “Cal” Dent, III, of Lexington, and his two co-conspirators, all of whom a South Carolina jury found liable for defrauding the federal healthcare programs Medicare and Tricare.
At trial, the United States contended that, when specialty labs Health Diagnostics Laboratory, Inc. (“HDL”) and Singulex, Inc. paid commissions to Dent’s marketing firm, BlueWave, based on the number of blood tests sold, the parties violated the Anti-Kickback Statute. The United States argued these volume-based commissions constituted “remuneration” intended to induce BlueWave’s sales representatives to sell as many blood tests as possible. The United States also contended the Anti-Kickback Statute prohibited BlueWave from paying its salespeople for recommending the tests. By paying these kickbacks, the defendants caused false claims to be submitted to federal healthcare programs for millions of dollars in unnecessary blood tests. The jury agreed, and now the Fourth Circuit has affirmed the jury’s verdict in a published opinion.
“This is an important victory for patients, the Medicare Program, and American taxpayers,” said Acting U.S. Attorney M. Rhett DeHart. “Individuals who scheme to defraud our federal health care system must be held personally accountable for their actions. This judgment, which was affirmed by the Court of Appeals, will send a strong deterrent message that this kind of conduct will not be tolerated. I am extremely proud of our office, particularly our Affirmative Civil Enforcement section, for its tireless work on this case. It takes a true team effort to protect the great people of South Carolina.”
“This result underscores the department’s commitment to holding accountable those who pay improper commissions or other financial incentives,” said Acting Assistant Attorney General Brian M. Boynton for the Justice Department’s Civil Division. “Kickbacks undermine the public’s trust in the healthcare system and the integrity of federal healthcare programs.”
The Fourth Circuit found the United States “provided abundant evidence as to Defendants’ knowledge and intent” to pay kickbacks. The court acknowledged that attorneys within HDL and BlueWave warned the defendants that paying commissions to independent contractors might well violate the Anti-Kickback Statute. The United States also presented sufficient evidence that outside lawyers warned all three defendants about the illegality of the commissions.
The Fourth Circuit also rejected the defendants’ contention that commissions to salespeople can never constitute kickbacks under the Anti-Kickback Statute, and found that the scheme violated the Statute and, in turn, violated the False Claims Act. Additionally, the court found the defendants’ contention that they were entitled to a new trial based on a variety of purported legal errors in the jury instructions to be “meritless.”
Finally, the Fourth Circuit rejected Dent’s challenge to the district court’s determination that pre-judgment transfers of three properties to Dent’s wife and two corporations controlled by her were fraudulent. The court upheld the district court’s finding, citing the timing of the transfers, the nominal amount paid for the properties, the fact that the transfers were made to family members, and the fact that the transfers were made several months after Dent knew he was under federal investigation.
The published opinion, U.S. v. LaTonya Mallory et al., No. 18-1811, filed February 22, 2021, may be found at https://www.ca4.uscourts.gov/Opinions/181811.P.pdf.
The appeal was handled by the Appellate Staff of the Justice Department. The underlying case was handled by Assistant U.S. Attorneys James Leventis, Tina Cundari, and Johanna Valenzuela of the U.S. Attorney’s Office for the District of South Carolina; the Commercial Litigation Branch of the Justice Department’s Civil Division; Health and Human Services, Office of the Inspector General; the Federal Bureau of Investigation; the U.S. Office of Personnel Management Office of the Inspector General; and the Department of Defense Office of Inspector General, Defense Criminal Investigative Service.
The civil lawsuit was filed in the District of South Carolina based on several whistleblower complaints and is captioned United States of America et al v. BlueWave Healthcare Consultants Inc., 9:14-cv-00230-RMG.
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This case illustrates the government’s emphasis on combating health care fraud. Tips and complaints from all sources about potential health care fraud, waste, and abuse can be reported to the Department of Health and Human Services at 1-800-HHS-TIPS (800-447-8477) or [email protected].
Former Practice Fusion Sales Executive Pleads Guilty to Obstructing Government Investigations into Purdue Pharma and Practice FusionRead the Press Release
Today Steven Mack, 46, of Bridgeville, Pennsylvania, pleaded guilty before Judge William K. Sessions III of the United States District Court for the District of Vermont to one count of attempting to obstruct a federal investigation into the relationship between Mr. Mack’s former employer, Practice Fusion, Inc., and Purdue Pharma LP, the seller of extended release opioid products, including OxyContin.
As explained during the plea hearing, in 2015 and 2016 Mr. Mack was the Director of National Accounts for Practice Fusion, an electronic medical record (EMR) company. In that position, Mr. Mack was a principal point of contact between Practice Fusion and Purdue Pharma with regard to the subject of the investigations. Mr. Mack admitted deleting from his company-issued laptop hundreds of computer files relevant to the investigation, with the intent to obstruct the investigation by impairing the integrity and availability of those records.
Pursuant to the plea agreement, Mr. Mack has agreed to cooperate with respect to ongoing investigations and to provide information about all criminal activities known to Mr. Mack. Pursuant to the plea agreement, which still must be accepted by Judge Sessions, Mr. Mack faces up to 18 months in prison and up to a $75,000 fine.
Acting Unites States Attorney Jonathan Ophardt stated: “Steve Mack criminally interfered with our investigations into the significant criminal conduct of both Purdue Pharma and Practice Fusion. This Office will hold individuals responsible for their roles in corporate malfeasance, and we will not tolerate efforts by anyone to subvert our investigations. Mr. Mack’s guilty plea today marks yet another person we have held individually accountable in connection with our efforts to expose white-collar crime.”
On January 27, 2020, the United States Attorney for the District of Vermont announced that it entered into a deferred prosecution agreement with Practice Fusion by which the EMR vendor admitted to a criminal conspiracy, in violation of 18 U.S.C. § 371, and a criminal kickback, in violation of 42 U.S.C. § 1320a-7b(b)(1). Practice Fusion solicited and received kickbacks from Purdue Pharma to arrange for an increase in prescriptions of extended release opioids by healthcare providers who used Practice Fusion’s EMR software. Purdue Pharma paid Practice Fusion nearly $1 million to create a clinical decision support (CDS) alert that would prompt physicians to prescribe more extended release opioids. Purdue Pharma’s marketing department financed the kickbacks and participated in designing the CDS alerts, which were presented to physicians as objective medical guidance. Practice Fusion and Purdue Pharma entered the conspiracy because they believed that the CDS would influence doctors’ prescriptions of extended release opioids.
On October 21, 2020, various components of the Department of Justice, including the United States Attorney’s Office for the District of Vermont, announced that Purdue Pharma had entered into a plea agreement by which Purdue Pharma would plead guilty to conspiring to violate the Anti-Kickback Statute relating to its arrangement with Practice Fusion, among other things. On November 24, 2020, Purdue Pharma pleaded guilty to its illegal conspiracy with Practice Fusion.
Today’s hearing marks the first individual to be prosecuted in connection with the Department of Justice’s recent investigations into Purdue Pharma and Practice Fusion. Mr. Mack is the first individual to be criminally charged from a leading EMR vendor, and, to date, the fourth individual held accountable by the District of Vermont in connection with its EMR investigations. On May 31, 2017, the United States Attorney’s Office for the District of Vermont announced a resolution with eClinicalWorks LLC (ECW), and in that case required three of ECW’s founders (CEO Girish Navani, CMO Dr. Rajesh Dharampuriya, and COO Mahesh Navani) to be jointly and severally liable for the payment of $154,920,000, and resolved civilly with three non-executive employees, Developer Jagan Vaithilingam, Project Manager Bryan Sequeira, and Project Manager Robert Lynes.
“Today’s guilty plea serves as a strong reminder that we will not tolerate fraud against our federal healthcare system or acts of obstruction that attempt to conceal those schemes,” said Phillip M. Coyne, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “We appreciate the partnership with the Vermont United States Attorney’s Office in pursuing this type of fraud.”
“Obstructing justice in any investigation will not be tolerated,” stated James A. Dawson, Special Agent in Charge of the FBI Washington Field Office Criminal Division. “This is yet another example of the dedication of the FBI and Department of Justice to hold accountable individuals and businesses who perpetrated and aided in the kickback scheme involving Purdue Pharma and Practice Fusion.”
This case was investigated by the Federal Bureau of Investigation and the Office of Inspector General of the United States Department of Health and Human Services.
Acting U.S. Attorney Ophardt commended the investigative efforts of the Federal Bureau of Investigation (FBI) and the Office of Inspector General of the United States Department of Health and Human Services (HHS-OIG).
Following today’s hearing, Mr. Mack was ordered released subject to conditions. His sentencing is scheduled for June 21, 2021.
Mr. Mack is represented by Stephen Huggard, Esq. of Boston and Robert Katims, Esq. of Burlington. The case is being prosecuted by Assistant United States Attorneys Owen Foster and Michael Drescher.
The case is captioned United States v. Steven Mack, 2:21-cr-00013-wks (D. Vt.).
2_2-1 Plea Agreement with Cooperation Exhibit.pdf
https://www.justice.gov/usao-vt/pr/electronic-health-records-vendor-pay-largest-criminal-fine-vermont-history-and-total-145
https://www.justice.gov/usao-vt/pr/justice-department-announces-global-resolution-criminal-and-civil-investigations-opioid-0
https://www.justice.gov/usao-vt/pr/purdue-pharma-lp-pleads-guilty-federal-felonies-relating-sale-and-marketing-prescription
Former Police Officer Admits Role in Multimillion-Dollar Compounded Prescription Drug SchemeRead the Press Release
NEWARK, N.J. – A former police officer with the North Brunswick police department today admitted his role in a multimillion-dollar scheme that defrauded state health benefits programs through the submission of medically unnecessary prescriptions for compounded medications, Acting U.S. Attorney Rachael A. Honig announced.
Daniel Passafiume, 45, of Monroe, New Jersey, pleaded guilty by videoconference before U.S. District Judge Michael A. Shipp to an information charging him with conspiring to commit health care fraud.
According to documents filed in this case and statements made in court:
Between January 2014 and November 2016, Passafiume and a conspirator, identified as CC-1 in the information, marketed certain prescription “compounded medications,” including vitamins and pain creams, to beneficiaries of New Jersey state insurance plans, including the State Health Benefits Program (SHBP). These insurance plans paid thousands of dollars for compounded medications, which are specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Although compounded drugs are not approved by the Food and Drug Administration (FDA), they are properly prescribed when a physician determines that an FDA-approved medication does not meet the health needs of a particular patient because, for example, the patient is allergic to a dye or other ingredient or requires the medication in a different form.
Passafiume and his conspirator had agreements with pharmacies to collect large commission payments for each prescription they obtained for the pharmacy. Passafiume and CC-1 found individuals with these insurance plans and connected them with doctors who were willing to sign prescriptions without an examination or a determination that the individuals needed the compounded medications. Those recruited to obtain prescriptions included employees of a New Jersey police department, family members of these employees, and Passafiume’s own family members. At times, Passafiume provided beneficiaries with cash, checks, and gift cards for agreeing to obtain these prescriptions.
The conspiracy charge carries a maximum potential penalty of 10 years in prison and a fine of $250,000 fine, or twice the gain or loss from the offense, whichever is greater. As part of his plea agreement, Passafiume must forfeit $284,659 in criminal proceeds and pay restitution of $3.27 million. Sentencing is scheduled for July 12, 2021.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Senior Trial Counsel Leslie Faye Schwartz of the Special Prosecutions Division and Assistant U.S. Attorney Osmar J. Benvenuto of the Health Care Fraud Unit in Newark.
Former Oilfield Manager Pleads Guilty in Connection with OSHA Worker Fatality InvestigationRead the Press Release
A Montana man pleaded guilty in federal court in the District of North Dakota to a felony charge of obstructing an Occupational Safety and Health Administration (OSHA) proceeding stemming from the 2014 death of an oilfield worker in Williston, North Dakota.
Stephan Todd Reisinger, 50, of Kalispell, was a maintenance manager at Nabors Completion and Production Services Company (NCPS) at its Williston facility. He supervised approximately 40 employees, including 28-year old U.S. Marine Corps veteran Dustin Payne. On Oct. 3, 2014, Payne welded on an uncleaned tanker trailer that had previously carried “produced water,” a liquid waste that is generated by oil wells and which contains flammable chemicals. The tank exploded and Payne was fatally injured.
Federal law makes it illegal to weld on tanks or other containers that have not been thoroughly cleaned to remove all flammable materials and explosion hazards.
“It is critical that OSHA be able to fully investigate worker safety fatalities,” said Acting Assistant Attorney General Jean E. Williams for the Justice Department’s Environment and Natural Resources Division. “The Justice Department will prosecute those who impede OSHA’s ability to find out the truth in the course of any safety investigation.”
“Federal workplace laws are designed to protect workers and enhance safety in order to prevent injuries and deaths,” said Special Agent in Charge Andrea M. Kropf of the U.S. Department of Transportation Office of Inspector General, Midwestern Region. “We will continue to work with our federal and law enforcement partners to hold those accountable who jeopardize transportation and hazardous material workers’ safety.”
In a plea agreement with the government, Reisinger admitted to knowing the tanker trailers hauled produced water. During an investigation into Payne’s death, he made false statements in an interview with OSHA, including that he did not know of the hazards and composition of produced water. Reisinger falsely stated that he thought “just water” was in the tanks.
C&J Well Services, the corporate successor to NCPS, previously pleaded guilty to charges related to Payne’s death and on Aug. 28, 2019, was sentenced to pay $2.1 million in fines and restitution. NCPS policies mandated special training for welders and internal auditing procedures to make sure that welding rules were actually being followed. However, NCPS did not provide welding-specific training to Payne or other welders at the Williston facility. As a result, Payne and other welders repeatedly welded on uncleaned tanks that contained flammable hydrocarbon residue.
OSHA, the U.S. Environmental Protection Agency - Criminal Investigation Division and the U.S. Department of Transportation Office of the Inspector General, with additional support from the Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated the case.
Senior Trial Attorney Christopher Costantini of the Environment and Natural Resources Division’s Environmental Crimes Section and Assistant U.S. Attorney Gary Delorme for the District of North Dakota prosecuted the case.
Former Mariner Admits to Facilitating Bribes, Two Others Plead Guilty, in Coast Guard Test-Fixing SchemeRead the Press Release
NEW ORLEANS, LA –U.S Attorney Duane A. Evans announced that on March 5, 2021 three pleaded guilty related to a test score-fixing scheme at a United States Coast Guard exam center, bringing the total number of defendants convicted in this matter to 19.
SHARRON ROBINSON, a former maritime industry worker, pleaded guilty to conspiracy to defraud the United States. In a factual basis filed into the record, ROBINSON admitted that she acted as an intermediary between Coast Guard exam center employee Beverly McCrary and merchant mariners who were willing to pay for false passing exam scores. The exams tested mariners’ knowledge and training to safely operate under the authority of licenses, which were legally required to work various positions on vessels.
ROBINSON acknowledged that she would take money from mariners and then pay McCrary for the false scores. ROBINSON understood that McCrary would keep a portion of that money and use the rest to bribe another exam center employee to enter the scores. Sometimes ROBINSON put mariners directly in touch with McCrary to arrange their payments. ROBINSON admitted that, in addition to assisting nine other mariners in obtaining false scores, she also had her own scores fixed. All of these false scores resulted in the Coast Guard issuing unearned licenses.
On November 20, 2020, as alleged in the indictment, Coast Guard credentialing specialist Dorothy Smith entered the false scores in this scheme. The indictment further alleged that Smith accepted bribes and used a network of intermediaries. Smith and McCrary are scheduled to stand trial on June 28, 2021.
Previously, the U.S. Attorney’s Office announced the guilty pleas of 16 defendants which occurred on January 20, 27 and 28, 2021 for unlawfully receiving and possessing endorsements as part of the scheme. Since that announcement, on February 4, 2021 and March 4, 2021, respectively, two more defendants, ANTHONY GARCES and QUANG TRAN, have also plead guilty to that charge.
U.S. Attorney Evans reiterated that the indictment’s allegations against Smith and McCrary are merely charges and their guilt must be proven beyond a reasonable doubt.
The Honorable Barry W. Ashe presided over the guilty pleas and set sentencing dates of May 27, 2021 for GARCES and June 10, 2021 for ROBINSON and TRAN. The maximum penalty for each defendant is five years’ imprisonment, a $250,000 fine, three years of supervised release, and a $100 special assessment.
This case is being investigated by the Coast Guard Investigative Service. Assistant U.S. Attorney Chandra Menon is in charge of the prosecution.
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Erie Man Sentenced to 18 Years’ Imprisonment for Discharging A Firearm During A Crime of ViolenceRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on March 5, 2021, Jimmy Carter, age 56, of Erie, Pennsylvania, was sentenced to 216 months’ imprisonment followed by a three-year term of supervised release by U.S. District Court Judge Matthew W. Brann for discharging a firearm during a crime of violence.
According to Acting U.S. Attorney Bruce D. Brandler, Carter, along with two others, robbed a Unimart convenience store in Ferguson Township, Pennsylvania, in January 2017. During the course of this robbery, Carter fired a handgun at the proprietor of the store (who was not injured).
The case was investigated by the Ferguson Township Police Department and the Bureau of Alcohol, Tobacco and Firearms. and the Federal Bureau of Investigation. Assistant United States Attorney Geoffrey W. MacArthur prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal enforcement and the local community to develop effective, locally-based strategies to reduce crime.
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Eastern Idaho Cocaine Dealer Sentenced to 58 Months in PrisonRead the Press Release
POCATELLO – Charles Lee Schmidt, 51, of Idaho Falls, was sentenced in U.S. District Court to 58 months in federal prison for possession with intent to distribute cocaine, Acting U.S. Attorney Rafael M. Gonzalez, Jr. announced today. U.S. District Judge David C. Nye also ordered Schmidt to serve three years of supervised release following his prison sentence. Schmidt pleaded guilty to the charge on October 13, 2020.
According to court records, on May 20, 2019, a confidential informant, under the direction of law enforcement, purchased 36 grams of cocaine from Schmidt for $1,200. The controlled purchase took place in an Idaho Falls grocery store parking lot.
According to court records, in July 2019, law enforcement received information that a person, later confirmed to be Schmidt, was distributing controlled substances out of a residence in Idaho Falls. On July 31, 2019, law enforcement obtained and executed a search warrant for the residence. Schmidt was present when law enforcement executed the search warrant and seized 173.31 grams of methamphetamine and 1.3 grams of LSD.
This case was investigated by the Bonneville County Sheriff’s Office and the Idaho Falls Police Department.
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Doctor, Clinic Owner and Staff Charged with Falsifying Clinical Trial DataRead the Press Release
In an indictment unsealed today, a federal grand jury in Miami charged a Florida medical doctor and three others for their roles in an alleged scheme to falsify clinical trial data.
According to court documents, Dr. Martin Valdes, 64, of Coral Gables, Florida, Fidalgis Font, 53, of Miami, Julio Lopez, 54, of Miami, and Duniel Tejeda, 35, of Canon City, Colorado, were charged in a six-count indictment returned by a federal grand jury on Feb. 23, 2021. Each defendant was charged with conspiracy to commit mail and wire fraud and at least one substantive count of mail fraud. In addition, Valdes and Font were charged with money laundering and Valdes was further charged with making a false statement to inspectors with the U.S. Food and Drug Administration (FDA).
“The public must be able to rely on the accuracy and honesty of clinical trial data, which is essential to ensuring the safety of drugs approved for patient use,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The defendants undermined that process and put patients at risk. The Department of Justice will pursue and prosecute those who put personal profit before public health.”
According to the indictment, from at least February 2014 through at least July 2016, the defendants fabricated clinical trial data for profit while working at Tellus Clinical Research, a medical clinic based in Miami. The indictment alleges that the defendants knowingly enrolled subjects in clinical trials when those subjects failed to meet eligibility criteria, falsified subject laboratory results, falsified subject medical records, and falsely represented that subjects were taking the drugs being studied when in fact they were not. Valdes served as primary investigator for the clinical trials conducted at Tellus, Font was the owner of the business, and Lopez and Tejeda were senior Tellus employees.
“Reliable and accurate data from clinical trials is the cornerstone of FDA’s evaluation of a new drug,” said Catherine A. Hermsen, FDA Assistant Commissioner for Criminal Investigations. “Compromised clinical trial data could impact the agency’s decisions about the safety and effectiveness of the drug under review. We will continue to monitor, investigate and bring to justice those whose actions may subvert the FDA approval process and endanger the public health.”
“Falsifying clinical data is a violation of the public’s trust and it endangers the safety of consumers,” said Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida. “Those who enrich themselves while compromising public health in this way commit serious crimes and will be prosecuted.”
If convicted of conspiracy to commit mail and wire fraud or mail fraud, each defendant faces a maximum penalty of 20 years’ imprisonment. If convicted of money laundering, Valdes faces a maximum penalty of 20 years’ imprisonment, and Font faces a maximum of 10 years’ imprisonment. If convicted of making a false statement to the FDA, Valdes faces a maximum of five years’ imprisonment. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Director Clint Narver, Trial Attorney Lauren M. Elfner, and Trial Attorney Joshua Rothman of the Justice Department’s Consumer Protection Branch are prosecuting the case. The FDA’s Office of Criminal Investigations, Miami Field Office, investigated the case, and the U.S. Attorney’s Office of the Southern District of Florida provided critical assistance.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Southern District of Florida, visit https://www.justice.gov/usao-sdfl.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Couple Pleads Guilty to $1.1 Million COVID-Relief Fraud After Falsely Claiming to Be FarmersRead the Press Release
A Florida couple pleaded guilty for their participation in a scheme to file four fraudulent loan applications seeking more than $1.1 million in forgivable Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
On Aug. 26, 2020, Latoya Stanley, 38, and Johnny Philus, 33, both of Miami, were originally charged via a complaint filed in the Southern District of Florida.
In Stanley’s PPP application, she claimed to employ 18 individuals from her company, Dream Gurl Beauty Supply LLC. Philus, meanwhile, stated that he employed 29 individuals at his company, Elegance Auto Boutique LLC. In actuality, Stanley and Philus did not employ anyone at their respective companies.
In her EIDL application, Stanley claimed to generate over $800,000 in income and to employ five individuals from a farm based in the yard of her Miami home. In his EIDL application, Philus claimed to generate $400,000 in income and to employ 10 individuals from a farm located in the yard of a small residential home. In actuality, Stanley and Philus employed no one and the farms did not exist.
Stanley and Philus worked together to effectuate the fraud and ultimately received over $1 million in fraudulent funds from the fraudulent PPP and EIDL applications before their schemes were uncovered.
Sentencing has been scheduled for June 2.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida; Treasury Inspector General for Tax Administration (TIGTA) J. Russell George; Inspector General Hannibal “Mike” Ware of the SBA’s Office of Inspector General (OIG); and Inspector in Charge Antonio Gomez of the U.S. Postal Inspection Service Miami Division made the announcement.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1%. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal on the PPP loan to be forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses at least a certain percentage of the PPP loan proceeds on payroll expenses.
The EIDL program is designed to provide economic relief to small businesses that are currently experiencing a temporary loss of revenue. EIDL proceeds can be used to cover a wide array of working capital and normal operating expenses, such as continuation of health care benefits, rent, utilities and fixed debt payments. If an applicant also obtains a loan under the PPP, the EIDL funds cannot be used as the same purpose as the PPP funds.
This case was investigated by the SBA-OIG, USPIS, and TITGA. Trial Attorney Louis Manzo of the Criminal Division’s Fraud Section is prosecuting the case.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Cedar Rapids Man Who Produced Child Pornography Sentenced to 30 Years in Federal PrisonRead the Press Release
A Cedar Rapids man, responsible for producing child pornography and then distributing it online, was sentenced today to 360 months in prison.
Nathan Krejci, age 41, from Cedar Rapids, Iowa, received the prison sentence after a June 24, 2020 guilty plea to being a drug user in possession of a firearm, sexual exploitation of a child, and distribution of child pornography.
Information disclosed at his plea and sentencing hearings showed that, beginning in September 2016 and continuing to September 24, 2019, Krejci engaged in sexually explicit conduct with a female child between the ages of 6 and 9 years old. Krejci produced a video of the conduct and distributed still shots of the video to an undercover officer online. Krejci later admitted he distributed the images to less than 12 people on the internet. The Court found that Krejci drugged the victim prior to the sexual abuse, rendering the victim unconscious during the abuse. Krejci also sexually and physically abused a 7 to 9-year-old boy approximately 13 years ago. The abuse included holding a gun to the child’s head when the child refused to drink alcohol. Investigators executed a warrant at Krejci’s residence in September 2019. During the search, they seized multiple electronic devices, two guns, marijuana, and some methamphetamine. Krejci admitted to being a frequent user of marijuana and methamphetamine. Investigators searched Krejci’s electronic devices and located between 300 and 600 images of child pornography. Krejci received some of the images from people online in exchange for sending them the images he produced with the 6 to 9-year-old female victim.
Krejci has some criminal history. This includes an OWI conviction wherein Krejci hit two pedestrians and left the scene.
“Mr. Krejci earned every day of his 30-year sentence with his shocking criminal conduct,” said Acting United States Attorney Sean Berry following the sentencing. “Our community is safer thanks to the hard work of our law enforcement partners.”
Krejci was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Krejci was sentenced to 360 months’ imprisonment. He was ordered to make payment of $300 to the special assessment fund. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorney Ashley Corkery and investigated by the Federal Bureau of Investigation. After today’s sentencing, FBI Omaha Special Agent in Charge Eugene Kowel said, “The 30-year sentence of Nathan Krejci means a despicable predator will no longer be able to commit horrific crimes against children. This case highlights the dedication of our agents and law enforcement partners to hold those who terrorize children accountable for their crimes.” The following agencies also assisted in the investigation: the Iowa Division of Criminal Investigation, Cedar Rapids Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
This case was also brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see /media/1122011/dl?inline.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-0110.
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Cardiologist Admits Unlawfully Distributing Thousands of Oxycodone PillsRead the Press Release
NEWARK, N.J. – A New Jersey cardiologist today admitted unlawfully prescribing thousands of Oxycodone pills, Acting U.S. Attorney Rachael A. Honig announced.
Raymond Catania, 59, of Warren, New Jersey, pleaded guilty by videoconference before U.S. District Judge Michael A. Shipp to an information charging him with dispensing Oxycodone outside of the usual course of professional practice and not for a legitimate medical purpose.
According to documents filed in this case and statements made in court:
Catania was a New Jersey physician specializing in cardiology and practicing in Watchung, New Jersey. From January 2016 through March 2017, Catania issued prescriptions for thousands of Oxycodone pills to one of his patients, and Catania did so without a legitimate medical purpose and outside of the usual course of professional practice. Catania also issued prescriptions for thousands of Oxycodone pills to that patient’s wife even though the wife was not Catania’s patient. Oxycodone – a Schedule II controlled substance – has a high potential for abuse that can lead to severe psychological and physical dependence and can result in fatal overdoses. Catania prescribed more than 8,600 Oxycodone 30 mg pills.
Catania faces a maximum penalty of 20 years in prison and a $1 million fine. Sentencing is scheduled for July 14, 2021.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Osmar J. Benvenuto of the Health Care Fraud Unit, and Leslie F. Schwartz, Senior Litigation Counsel, of the Special Prosecutions Division, in Newark.
California man admits meth trafficking crimeRead the Press Release
BILLINGS — A California man accused of trafficking methamphetamine after law enforcement officers found 24 pounds of the drug hidden in a vehicle he was driving pleaded guilty today to a trafficking crime, Acting U.S. Attorney Leif Johnson said.
Christopher Santillanes Ceja, 31, of Riverside, California, pleaded guilty to possession with intent to distribute meth. Ceja faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Ceja was detained pending further proceedings.
U.S. Magistrate Judge Timothy J. Cavan presided. A sentencing date before U.S. District Judge Susan P. Watters has not yet been set.
In court documents filed in the case, the government alleged that law enforcement agents learned in March 2019 about a shipment of meth being transported from Mexico to Billings. Law enforcement surveillance saw a vehicle with a California license plate registered to Ceja pull into a Billings hotel. Ceja was known to law enforcement as having been involved in meth trafficking in the Billings area. Later that same evening, officers conducted a traffic stop of the vehicle and Ceja was driving. Agents impounded and searched the vehicle pursuant to a warrant. Agents located 19 bundles of meth concealed throughout the vehicle. The meth totaled 11 kilograms, or about 24.2 pounds, of pure meth. Eleven kilograms of meth is the equivalent of about 87,700 doses.
Assistant U.S. Attorney Lori Suek is prosecuting the case, which was investigated by the FBI Western Transnational Organized Crime Task Force and the Eastern Montana High Intensity Drug Trafficking Area Task Force.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. According to the FBI’s Uniform Crime Reports, violent crime in Montana increased by 48% from 2013 to 2019. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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California Man Pleads Guilty to Distribution of MethamphetamineRead the Press Release
PORTLAND, Ore.—A Coachella, California man pleaded guilty today to transporting five pounds of methamphetamine from Coachella to Aumsville, Oregon, announced Acting U.S. Attorney Scott Erik Asphaug.
Gerardo Figueroa-Felix, 36, pleaded guilty to one count of distribution of methamphetamine.
According to court documents, on January 7, 2019, Marion County Sheriff’s Office deputies responded to a call that squatters had returned to a foreclosed property in Aumsville and that there was methamphetamine inside the house. Deputies had locked the property four days prior in response to a court order. Two deputies approached the house together and spotted a white Chevrolet pickup truck with a California license plate backed into the driveway. As they approached, the deputies saw Figueroa-Felix tying up a tarp near the back of the vehicle.
One of the deputies approached Figueroa-Felix and asked why he was on the property. Figueroa-Felix produced three identification cards with his name and photograph on them. The deputy watched as Figueroa-Felix began to reach his hands into the front pockets of his jacket and ordered him to remove them. The deputy then proceeded to search Figueroa-Felix’s person and located a loaded semi-automatic Ruger 9mm handgun in his left-front pants pocket. The deputy discovered a second loaded handgun tucked into Figueroa-Felix’s waistband. Figueroa-Felix also had a double magazine pouch attached to his belt.
The investigation revealed Figueroa-Felix was a drug mule from Coachella and was paid to transport five pounds of crystal methamphetamine from Southern California to Oregon. He previously sold two pounds of methamphetamine on the Aumsville property and returned that day to sell more. Deputies seized three pounds of methamphetamine and large quantities of live .45 caliber ammunition from his truck along with another handgun.
On March 20, 2019, a federal grand jury in Portland returned a three-count indictment charging Figueroa-Felix with possession with intent to distribute methamphetamine, distribution of methamphetamine, and possession of a firearm in furtherance of a drug trafficking crime.
Figueroa-Felix faces a maximum sentence of 40 years in prison, a $5 million fine, and four years of supervised release. With Figueroa-Felix’s continued acceptance of responsibility, the government has agreed to a recommended sentence of 70 months in prison and four years’ supervised release. Figueroa-Felix will be sentenced on June 7, 2021 before U.S. District Court Judge Karin Immergut.
This case was investigated by the Marion County Sheriff’s Office, Salem Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). It is being prosecuted by Hannah Horsley and Pamela Paaso, Assistant U.S. Attorneys for the District of Oregon.
Boston Man Pleads Guilty to Fentanyl Trafficking and Cocaine ConspiracyRead the Press Release
BOSTON – A Boston man pleaded guilty today in connection with drug trafficking activities involving fentanyl and cocaine.
Jovani Santiago, 29, pleaded guilty to one count of distribution of and possession with intent to distribute 400 grams or more of fentanyl and one count of conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine. U.S. Senior District Court Judge Mark L. Wolf scheduled sentencing for May 31, 2021. Santiago was charged by complaint and arrested on Aug. 27, 2020.
Santiago sold approximately 500 grams of fentanyl to a cooperating witness in a Roxbury apartment on Aug. 12, 2020. Additionally, it is alleged that Santiago conspired with others to distribute cocaine in Massachusetts and New York.
The charges of distribution of and possession with intent to distribute 400 grams or more of fentanyl and conspiracy to distribute with intent to distribute five kilograms or more of cocaine carry a mandatory minimum sentence of 10 years and up to life in prison, at least five years of supervised release and a fine of up to $10 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement. Special assistance was provided by the Drug Enforcement Administration, New York Field Division and the U.S. Attorney’s Office for the Southern District of New York. Assistant U.S. Attorney Stephen W. Hassink of Mendell’s Narcotics and Money Laundering Unit is prosecuting the case.
The operation was conducted by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.
Boise Man Sentenced to 25 Years for Sexual Exploitation of a ChildRead the Press Release
BOISE – Aaron John Lane, 57, of Boise, was sentenced in U.S. District Court to 300 months in federal prison for sexual exploitation of a child, Acting U.S. Attorney Rafael M. Gonzalez, Jr. announced today. U.S. District Judge B. Lynn Winmill also ordered Lane to pay a $3,000 fine and to serve 20 years of supervised release following his prison sentence. Lane pleaded guilty to the charge on December 7, 2020.
According to court records, in July 2019, the mother of the thirteen-year-old victim contacted law enforcement to report that Lane had been communicating with her daughter through Facebook. Law enforcement learned that Lane was a registered sex offender and had posed as a teenaged male during his communications with the victim. During the communications, Lane asked the victim take explicit images of herself and send them to him. Lane was arrested after arranging to meet the victim. During an interview, Lane admitted to communicating with the victim and to receiving explicit images of her.
As part of the investigation, law enforcement seized two cellphones belonging to Lane. A federal magistrate judge issued a search warrant for the cellphones. An agent with the Federal Bureau of Investigation (FBI) examined the cellphones and located Facebook and Instagram communications between Lane and other underage females. A federal magistrate judge also issued search warrants for Lane’s social media accounts. In reviewing the accounts, the FBI agent determined that Lane had requested, and received, sexually explicit images from several minors.
At sentencing, Judge Winmill also ordered Lane to forfeit the electronic devices used in the commission of the offense. As a result of conviction, Lane will be required to register as a sex offender.
This case was investigated by the FBI and the Boise Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Berkeley County woman sentenced for role in drug conspiracyRead the Press Release
MARTINSBURG, WEST VIRGINIA – Ashley Marie Seal, of Bunker Hill, West Virginia, was sentenced today to 21 months of incarceration for her role in a drug conspiracy that spanned several states, Acting United States Attorney Randolph J. Bernard announced.
Seal, 32, pled guilty in November 2020 to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Heroin, Fentanyl, and Cocaine Base.” Seal admitted to working with others to distribute heroin, fentanyl, and cocaine base from January 2019 to September 2019 in Berkeley and Jefferson Counties and elsewhere.
This case is the result of investigations supported by the Organized Crime Drug Enforcement Task Force (OCDETF) under the Attorney General-led Synthetic Opioid Surge (SOS)/Special Operations Division (SOD) Project Clean Sweep. This initiative seeks to reduce the supply of synthetic opioids in “hot spot” areas previously identified by the Attorney General of the United States, thereby reducing drug overdoses and drug overdose deaths, and identify wholesale distribution networks and sources of supply operating nationally and internationally.
OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Assistant U.S. Attorney Lara Omps-Botteicher and Special Assistant U.S. Attorney C. Lydia Lehman, also with the Berkeley County Prosecuting Attorney’s Office, prosecuted the case on behalf of the government. The FBI; Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms & Explosives; and the Eastern Panhandle Drug and Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
Chief U.S. District Judge Gina M. Groh presided.Arizona Man Pleads Guilty in Cocaine ConspiracyRead the Press Release
PITTSBURGH – Richard Georgelos pleaded guilty to conspiring to distribute at least 500 grams of cocaine between 2017 and 2019, Acting United States Attorney Stephen R. Kaufman announced today.
Georgelos, age 37 of Santa Cruz, Arizona, pled guilty before United States District Judge J. Nicholas Ranjan. Judge Ranjan scheduled sentencing to occur on July 13, 2021, at 10:00 a.m.
The law provides for a sentence of at least 5 years and up to 40 years in prison and a fine of up to $5,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed is to be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Craig W. Haller is prosecuting this case on behalf of the United States.
The Drug Enforcement Administration, the Internal Revenue Service, the federal Bureau of Prisons, and the Pennsylvania Office of Attorney General led the multi-agency investigation that also included the United States Postal Inspection Service, the Beaver County District Attorney’s Office, the Department of Homeland Security/Homeland Security Investigations, the Pittsburgh Police Department, the United States Marshals Service, the Pennsylvania State Police, the Munhall Police Department, the Robinson Township Police Department, the McKees Rocks Police Department, the Stowe Township Police Department, the Etna Police Department, and the Erie County District Attorney’s Office.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Acting U.S Attorney Seth D. DuCharme Announces Resignation from OfficeRead the Press Release
Seth D. DuCharme is resigning as Acting United States Attorney for the Eastern District of New York effective March 19, 2021. Mr. DuCharme has served in the position as chief federal law enforcement officer for the district comprising Brooklyn, Queens and Staten Island in New York City, and Nassau and Suffolk Counties on Long Island, since July 10, 2020. Earlier today, Mr. DuCharme sent letters to President Biden and Acting United States Attorney General Monty Wilkinson informing them of his decision.
First Assistant U.S. Attorney Mark J. Lesko will become the Acting U.S. Attorney upon Mr. DuCharme’s departure.
Statement from Acting United States Attorney DuCharme:
“Earlier today, I announced that I am stepping down as Acting U.S. Attorney in the Eastern District of New York, effective March 19, 2021. I have enjoyed a long and rewarding career in the Department, from Deputy U.S. Marshal to Principal Deputy Associate Attorney General of the United States, to my current position. At each stage of my career, I was blessed to be faced with worthy challenges on behalf of the American people. My time in EDNY and the Department gives me great confidence that the American people are well served by forward-leaning professionals, who put mission first, and assume risks every day on behalf of the people they are sworn to serve. My guiding principles have been to serve others and to do my best to go where I am needed most. After having had the opportunities to serve at so many levels, from junior AUSA, to close advisor to the Attorney General and Deputy Attorney General, and most recently as Acting U.S. Attorney, I am now thrilled to be spending more time with my family, and to transitioning thoughtfully and successfully into private practice, where I intend to serve clients zealously, capably and honorably. To all of those who offered me the chances to take risks, to test myself against the most skilled adversaries in the defense bar, to grow as a lawyer, and to serve the public, I am forever grateful. Over the next two weeks, I will be increasingly shifting responsibility to my First Assistant U.S. Attorney, Mark Lesko – a proven professional who has served the District and the nation with distinction. I have great confidence that the Office and the Department will function smoothly and effectively as we prepare for my departure.”
During his tenure as Acting U.S. Attorney, Mr. DuCharme’s notable achievements include the expansion of the Office’s Rapid and Strategic Prosecution (RASP) Initiative to more effectively use crime data to identify, investigate, disrupt and prosecute violent armed criminals and organizations; and the creation of a Bank Integrity Task Force to investigate and charge corporate and individual actors who launder criminal proceeds using the U.S. banking system and to enforce anti-money laundering controls.
Prior to his designation as Acting United States Attorney, Mr. DuCharme served as the Principal Associate Deputy Attorney General at the Department of Justice in Washington, D.C. from December 2019 until July 2020. From March 2019 to December 2019, Mr. DuCharme served as Counselor to Attorney General William P. Barr. He worked with Attorney General Barr and Deputy Attorney General Jeffrey Rosen to supervise and coordinate the work of all of the Department’s components, including all 94 United States Attorney’s Offices. In addition, he helped to coordinate national initiatives against fraud, opioid trafficking, transnational organized crime, international terrorism and other national security priorities.
Prior to his work at Main Justice, Mr. DuCharme served as Chief of the Criminal Division in the U.S. Attorney’s Office for the Eastern District of New York, where he initiated and supervised numerous investigations and prosecutions across a wide range of subject areas, including corporate and securities fraud, terrorism, cybercrime, public corruption, international narcotics trafficking, civil rights violations, and violent and organized crime.
Mr. DuCharme first joined the U.S. Attorney’s Office for the Eastern District of New York in March 2008 and has served in the General Crimes, Violent Crimes and Terrorism, and National Security and Cybercrime Sections. He also has served as Chief and Deputy Chief of the Office’s National Security and Cybercrime Section, the Office’s National Security Cyber Specialist and the Office’s representative on the Anti-Terrorism Advisory Council.
6 March 2021
Ross Elliot Hoelscher Indicted for Use of a Communication FacilityRead the Press Release
TOPEKA, KAN. – Ross E. Hoelscher, 38, of Topeka, Kansas, has been indicted and arrested on federal charges of violation of two counts of 21 U.S.C. 843(b), Use of a Communication Facility.
“During this investigation, federal, state and local law enforcement partners worked extremely well together to make certain these alleged criminal acts do not go unpunished,” said Acting U.S. Attorney Duston Slinkard.
Upon conviction, the crimes carry the following penalties:
COUNTS ONE AND TWO
21 U.S.C. 843(b) Use of a Communication Facility
- Punishable by a term of imprisonment not to exceed eight (8) years.
- A fine not to exceed the greater of that authorized in accordance with 18 U.S.C. 3571(b)(3) or $250,000.00.
- Or both, and
- A term of supervised release not to exceed three (3) years.
- A mandatory special assessment of $100.00
An initial appearance for Mr. Hoelscher is scheduled for March 8, 2021, at 2:30, before U.S. Magistrate Judge Angel D. Mitchell.
This case is a joint investigation being conducted by the Topeka Police Department and the Federal Bureau of Investigation.
Assistant U.S. Attorney Jared Maag is prosecuting the case.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
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Jeremiah M. Guesby Indicted for Possession with Intent to Distribute MarijuanaRead the Press Release
TOPEKA, KAN. – Jeremiah M. Guesby, 18, of Topeka, Kansas, has been indicted and arrested on federal charges of violation of 21 U.S.C. 841(a)(1), Possession with Intent to Distribute Marijuana and 18 U.S.C. 924(c)(1)(A), Possession of a Firearm in Furtherance of a Drug Trafficking Crime.
“This case highlights the importance of the strong working relationships among federal, state and local law enforcement,” said Acting U.S. Attorney Duston Slinkard.
Upon conviction, the crimes carry the following penalties:
COUNT ONE
21 U.S.C. 841(a)(1) Possession with the Intent to Distribute Marijuana
- Punishable by a term of imprisonment not to exceed five (5) years.
- A fine not to exceed the greater of that authorized in accordance with 18 U.S.C. 3571(b)(3) or $250,000.00.
- Or both, and
- A term of supervised release of at least two (2) years.
- A mandatory special assessment of $100.00.
COUNT TWO
18 U.S.C. 924(c)(1)(A) and Possession of a Firearm During and in Relation to Drug Trafficking Crime
- A term of imprisonment of not less than five (5) years and no more than life to run consecutive to any term of imprisonment imposed for the drug trafficking crime during which the firearm was possessed.
- A fine not to exceed $250,000.00.
- A term of supervised release not to exceed five (5) years.
- A mandatory special assessment of $100.00 per count of conviction.
An initial appearance for Mr. Guesby is scheduled for March 8, 2021, at 1:00, before U.S. Magistrate Judge Angel D. Mitchell.This case is a joint investigation being conducted by the Topeka Police Department and the Federal Bureau of Investigation.
Assistant U.S. Attorney Jared Maag is prosecuting the case.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
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