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8 March 2021
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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5 March 2021
West Virginia Man Sentenced for Role in DS44 Drug Trafficking RingRead the Press Release
PITTSBURGH - A resident of Hundred, West Virginia, has been sentenced in federal court to time served and 3 years’ supervised release on his conviction of conspiring to distribute fentanyl, heroin, and other drugs, Acting United States Attorney Stephen R. Kaufman announced today.
United States District Judge William S. Stickman, IV, imposed the sentence on Jesse Tedrow, age 28. Tedrow is one of 37 defendants charged in the Indictment.
According to information presented to the court, in 2017, the Greater Pittsburgh Safe Streets Task Force initiated an investigation targeting the Darccide/Smash 44, or DS44, neighborhood gang, and its drug-trafficking activity, in and around the South Side area of Pittsburgh. As part of this large-scale narcotics and firearms investigation, in February of 2019, the United States received authorization to conduct a federal wire investigation, which continued through June of 2019. Jesse Tedrow was identified as a low-level fentanyl and heroin distributor through intercepted communications and surveillance conducted as part of the investigation. Tedrow accepted responsibility for the distribution of 18 grams of a mixture of fentanyl and heroin.
Prior to imposing sentence, Judge Stickman noted that Tedrow’s criminal conduct appeared to be directly related to his own drug addiction and ordered that he complete a drug treatment program as part of his sentence.
Assistant United States Attorneys Carolyn J. Bloch and Brendan J. McKenna prosecuted this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Bureau of Alcohol Tobacco Firearms and Explosives, Allegheny County Adult Probation, Allegheny County Police Department, Allegheny County Sheriff’s Office, Pennsylvania Attorney General’s Office Bureau of Narcotics, Pittsburgh Bureau of Police, and the Wilkinsburg Police Department. Other assisting agencies include the Green Tree Police Department, New York City Police Department, Mount Oliver Police Department, Pennsylvania State Police, Yonkers Police Department, United States Marshals Fugitive Task Force, and the United States Postal Inspection Service.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Webster City Man Sentenced to Federal Prison for Child PornRead the Press Release
A man who received and distributed child pornography was sentenced February 26, 2021, to more than 14 years in federal prison.
Kevin Eugene Dill, age 56, from Webster City, Iowa, received the prison term after an October 9, 2020, guilty plea to one count of distribution of child pornography and one count of receipt of child pornography.
In a plea agreement, Dill admitted that between March 2012 through June 2020, he knowingly received and possessed over thousands of images and videos of child pornography. In September of 2017, an FBI Special Agent operating in an undercover capacity conducted several undercover sessions with Dill, wherein Dill distributed child pornography to the undercover agent. On October 31, 2017, law enforcement executed a search warrant at Dill’s residence, and Dill admitted to receiving child pornography. Despite being confronted, Dill continued to access child pornography utilizing PayPal to purchase child pornography from a Chinese website. When Dill was arrested in June 2020, he again admitted to accessing child pornography for sexual gratification.
Dill was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Dill was sentenced to 169 months’ imprisonment. He was ordered to make $60,500 in restitution. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system.
Dill is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
The case was prosecuted by Assistant United States Attorney Mikala Steenholdt and investigated by The Iowa Internet Crimes Against Children Task Force and the FBI Child Exploitation and Human Trafficking Task Force.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-3013.
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United States Attorney’s Office Files Lawsuit Against Saipan Physician for Violations of the Controlled Substances ActRead the Press Release
SAIPAN, MP – The United States filed a civil complaint seeking to enjoin a Saipan physician from unlawfully dispensing opioids and other controlled substances. The government alleges that Dr. John L. Doyle unlawfully issued controlled substance prescriptions in violation of the Controlled Substances Act under Title 21 of the United States Code.
The complaint, filed in U.S. District Court for the Northern Mariana Islands, alleges that Dr. Doyle issued multiple prescriptions for high quantities of a dangerous combination of drugs commonly known as the Holy Trinity – opioids, benzodiazepines, and muscle relaxants – as well as other controlled substances to the spouse of a colleague, frequently without examining the patient. He allegedly ignored obvious signs of addiction and physical and mental deterioration when issuing opioid prescriptions and other controlled substances to another patient. The complaint also alleges that Dr. Doyle’s actions contributed to a high risk of overdose or death in these patients, a risk that he knew or should have known because he had been previously disciplined by the Kentucky Medical Board for similar violations that were related to the overdose death of a patient.
“It is a sad reality that some medical practitioners are fueling drug addiction in the United States. All too often, the diversion of drugs for illegitimate use results in tragic consequences,” said U.S. Attorney Shawn N. Anderson. “The Department of Justice is fighting this epidemic in a variety of ways. As this case demonstrates, we can and will pursue civil litigation to cut off the flow of illicit prescriptions at the source. We look forward to proving our claims in court and holding Dr. Doyle accountable for his conduct.”
“Doctors have a trusted responsibility to properly and legally care for their patients and when individuals take actions to harm them, they will be held accountable,” said DEA Assistant Special Agent in Charge Leslie Tomaich. “We have no tolerance for medical professionals that violate their oath and illegally distribute prescription drugs that exacerbate the opioid epidemic.”
The complaint alleges that Dr. Doyle wrote prescriptions for potent and dangerous opioids that he knew or should have known were not issued for a legitimate medical reason and outside the usual course of professional practice. The complaint seeks civil penalties up to $67,627 for each of the 73 violations of the Controlled Substances Act, as well as an injunction against the defendant. While several settlements have been reached with other physicians in this region pre-complaint, this lawsuit represents the first-ever Controlled Substances Act civil suit against a physician in the history of the District of the Northern Mariana Islands.
The claims asserted against defendants in a civil suit are allegations only and are not determinations of liability.
The investigation is being conducted by the Drug Enforcement Administration, Honolulu Diversion Group and Saipan Post of Duty. The case is being prosecuted by Mikel Schwab and Jessica F. Wessling, Assistant U.S. Attorneys for the Districts of Guam and the Northern Mariana Islands.
U.S. Attorney's Office and Danbury Hospital Resolve ADA ComplaintRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, today announced that the U.S. Attorney’s Office has reached a settlement agreement with Danbury Hospital, which owns and operates Morganti Wound Care Center (“MWCC”), to resolve allegations that MWCC was not operating in compliance with the Americans with Disabilities Act of 1990 (“ADA”).
The settlement agreement resolves an ADA complaint filed by a patient who uses a wheelchair, who alleged that he was denied full and equal access to the services provided by MWCC based on his disability, when he attempted to receive medical treatment. Specifically, he alleged that he was told he must reschedule his appointment because MWCC did not have the equipment or training necessary to transfer him from his wheelchair to the examination table.
Under the terms of the settlement agreement, Danbury Hospital will adopt a nondiscrimination policy that outlines its obligations pursuant to Title III of the ADA. MWCC will also ensure that individuals with mobility disabilities are afforded equal access to its facilities and services, by training all staff who interact with patients on the requirements of Title III of the ADA as they apply to healthcare facilities and on techniques for safely assisting individuals with mobility disabilities to transfer to examination tables.
Danbury Hospital is also taking steps to ensure that each of its outpatient facilities has and will maintain access to a Hoyer lift, and has implemented other practices to transfer a patient onto examination tables, or other equipment, safely. Danbury Hospital has also agreed to compensate the complainant in the amount of $10,000.
Under federal law, private entities that own or operate places of “public accommodation,” including professional offices of healthcare providers, hospitals, and other service establishments are prohibited from discriminating on the basis of disability. The ADA authorizes the U.S. Department of Justice to investigate complaints and undertake periodic reviews of compliance of covered entities. The Justice Department is also authorized to commence a civil lawsuit in federal court in any case that involves a pattern or practice of discrimination or that raises issues of general public importance, and to seek injunctive relief, monetary damages, and civil penalties.
Acting U.S. Attorney Boyle noted that Danbury Hospital was cooperative with the U.S. Attorney’s Office and is committed to addressing the issues raised by the ADA investigation without litigation.
Any member of the public who wishes to file a complaint alleging that any place of public accommodation or public entity in Connecticut is not accessible to persons with disabilities may contact the U.S. Attorney’s Office at 203-821-3700.
Additional information about the ADA can be found at www.ada.gov, or by calling the Justice Department’s toll-free information line at (800) 514-0301 and (800) 514-0383 (TTY). More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.
Two Ukrainian Nationals Extradited to U.S. on Money Laundering ChargesRead the Press Release
Two members of an international organized network that provided cash-out and money laundering services to cyber actors were extradited from the Czech Republic to Dallas.
Viktor Vorontsov, 39, and Zlata Hanska Muzhuk, 40, were charged in a one-count indictment with conspiracy to launder funds filed in February 2020 in the Northern District of Texas.
According to the indictment, Muzhuk and Vorontsov were allegedly members of an international organized network providing cash-out and money laundering services to cyber actors who used stolen bank login credentials to initiate fraudulent electronic funds transfers from victims’ bank accounts to bank accounts (drop accounts) created and controlled by the cash-out actors. For a fee, Muzhuk and Vorontsov provided a network of drop accounts and money mules to receive, transfer, and conceal money derived from the fraudulent online transfers of funds. The indictment alleges the conspiracy existed for the entirety of 2017 and focused on seven electronic funds transfers in October and November 2017, totaling almost $500,000.
During the FBI’s investigation of Muzhuk and Vorontsov, the Czech National Organized Crime Agency (NCOZ) collaborated to gather information and evidence. In late January 2020, NCOZ informed the FBI that Muzhuk was visiting Vorontsov at his residence in the Czech Republic. A criminal complaint and an arrest warrant were issued by a U.S. Magistrate Judge in Dallas and an FBI special agent from Dallas traveled to the Czech Republic to coordinate with the NCOZ.
In an unprecedentedly prompt response on Feb. 6, 2020, the NCOZ effected the arrests of Muzhuk and Vorontsov at the request of the U.S. and seized valuable evidence from both defendants and from Vorontsov’s residence. Muzhuk and Vorontsov were detained pending the extradition proceedings. On Dec. 4, 2020, and Jan. 21, 2021, respectively, the Ministry of Justice of the Czech Republic granted the extradition of Muzhuk and Vorontsov. The defendants were transferred to FBI custody on March 3, 2021 and were flown from Prague to Dallas.
Vorontsov and Muzhuk appeared before U.S. Magistrate Judge Toliver in the Northern District of Texas and entered not-guilty pleas to the charges. Vorontsov and Muzhuk remain in the custody of the U.S. Marshals Service.
The FBI’s Dallas Field Office conducted the investigation. The Justice Department’s Office of International Affairs provided substantial assistance in securing the defendants’ extradition from the Czech Republic.
Senior Trial Attorney C.S. Heath of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Robert Nichols of the Northern District of Texas are prosecuting the case.
An indictment is merely an accusation. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Two Buffalo Men Arrested on Fentanyl Conspiracy ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Alexis Lopez, 27, and Ivan Irizarry-Ramos, 35, both of Buffalo, NY, were arrested and charged by criminal complaint with conspiring to possess with intent to distribute fentanyl. The charge carries a minimum penalty of 10 years in prison, a maximum of life, and a $10,000,000 fine.
“Sadly, this deadly mixture of cocaine and fentanyl is becoming increasingly prevalent in our District,” noted U.S. Attorney Kennedy. “Buyers of cocaine may have no idea that their drug of choice is laced with fentanyl. This situation is extremely dangerous and often deadly, especially for unsuspecting cocaine users who have no tolerance for opioid drugs.”
Assistant U.S. Attorneys David J. Rudroff and Charles M. Kruly, who are handling the case, stated that according to the complaint, on March 1, 2021, the U.S. Postal Inspection Service executed a search warrant on a Priority Mail Express Parcel, which contained approximately ½ a kilogram of a substance containing a mixture of fentanyl and cocaine. The drugs inside the parcel were replaced with sham material, and an undercover agent delivered the parcel to an address on Leroy Avenue in Buffalo, where it was accepted by defendant Lopez. After the parcel was taken inside, agents were alerted that the parcel had been opened. Following that alert, a search warrant was executed and agents discovered Lopez and defendant Irizarry-Ramos together in an apartment, from which they also recovered a digital scale, plastic packaging materials, and an electric blender with white powdery substance inside.
The defendants made an initial appearance before Magistrate Judge Michael J. Roemer and are being held pending a detention hearing on March 11, 2021.
The complaint is the result of an investigation by the United States Postal Inspection Service, under the direction of Inspector-in-Charge Joseph W. Cronin of the Boston Division, and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Troy Businessman Pleads Guilty to Hoarding and Price Gouging FacemasksRead the Press Release
ALBANY, NEW YORK – Imran Selcuk, age 35, of Troy, New York, pled guilty today to hoarding and price gouging in violation of the Defense Production Act of 1950 (DPA). The announcement was made by Acting U.S. Attorney Antoinette T. Bacon and Kevin Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
“Selcuk saw the pandemic as an opportunity to rip off Capital Region residents and prey upon their fears,” said Acting U.S. Attorney Antoinette T. Bacon. “He purchased thousands of masks from overseas and offered them for sale at highly inflated prices when masks were scarce and the pandemic had just started to take hold. This office will continue to work in coordination with the COVID-19 Hoarding and Price Gouging Task Force to prevent greedy profiteers from taking advantage of this emergency for illicit gain.”
“It is unfathomable that during a global pandemic, individuals such as Selcuk place their selfish greed above service to community,” said Kevin Kelly, Special Agent in Charge of HSI Buffalo. “Homeland Security Investigations will continue to work tirelessly to arrest anyone attempting to leverage the pandemic to illicitly profit from our communities.”
As part of his guilty plea to a misdemeanor, Selcuk admitted that, in March 2020, he purchased approximately 100,000 KN95 facemasks and 25,000 surgical-style facemasks for $1 per mask and 50 cents per mask, respectively. Selcuk then offered these masks for sale at his Troy pizza restaurant and through a website at markups of as high as 500%. Selcuk also admitted that his website falsely represented that the KN95 masks he offered for sale were certified by the U.S. Food & Drug Administration (FDA). In fact, the FDA does not “certify” facemasks.
U.S. Magistrate Judge Christian F. Hummel is scheduled to sentence Selcuk on July 2, 2021. Selcuk faces up to one year in prison, a $10,000 fine, and up to one year of post-imprisonment supervised release. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by HSI, with assistance from the U.S. Postal Inspection Service, and is being prosecuted by Assistant U.S. Attorneys Michael D. Gadarian and Joshua R. Rosenthal.
This case was brought in coordination with the Department of Justice’s COVID-19 Hoarding and Price Gouging Task Force, which organizes efforts among the Antitrust Division and U.S. Attorney’s offices across the country to address illegal activity involving personal protective equipment.
Three Correctional Officers and a Sergeant Charged with Assaulting Federal Pretrial DetaineeRead the Press Release
NEWARK, N.J. – Three Essex County correctional officers and one sergeant have been charged with conspiring to violate a pretrial detainee’s civil rights, Acting U.S. Attorney Rachael A. Honig announced today.
Officers Angel Chaparro, 38, Damion James, 40, and Luis Ortiz, 29, and Sgt. Herman Pride, 51, are each charged by complaint with one count of conspiracy to violate civil rights. Pride and Ortiz were arrested on March 4, 2021, and had their initial appearances before U.S. Magistrate Judge James B. Clark III. Both were released on bail. Chaparro and James were arrested this morning and will have their initial appearances by videoconference Judge Clark this afternoon.
According to the criminal complaint:
On the evening of Aug. 17, 2020, a federal pretrial detainee at Essex County Correctional Facility (ECCF) squirted a mixture of urine, yogurt, and milk onto a correctional officer. The detainee subsequently was transported to a disciplinary cell, where Chaparro, James, and Ortiz assaulted the detainee, striking him multiple times. Pride did not intervene to stop the assault. At the end of the assault, Pride said, “okay, that’s enough.” During the assault, James’ watch fell off. He and other officers returned to the detainee’s cell to retrieve his watch.
The detainee asked for, and was initially denied, medical assistance. The victim later told Pride that if Pride would provide the victim with medical attention, the victim would lie and say that he had fallen off his bed. Pride refused to provide any medical attention. Two days later, the detainee was finally taken to the emergency room at University Hospital in Newark. He was diagnosed with large swelling and tenderness in the right side of his face and discoloration and bruising around his right eye.
The defendants all were required to submit documentation regarding their use of force. None of them submitted any such reports. Instead, Chaparro signed a false report indicating that no force had been used.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; and the Essex County Correctional Facility Internal Affairs Bureau, under the direction of Director Alfaro Ortiz and the Office of the Warden, with the investigation leading to the charges.
The government is represented by Acting Principal Assistant U.S. Attorney Rahul Agarwal.
The charges and allegations in the criminal complaint are merely accusations, and the defendants are all presumed innocent unless and until proven guilty.
Texas woman sent to prison for importing over $1M of methRead the Press Release
McALLEN, Texas – A 21-year-old woman from Houston has been ordered to federal prison following her conviction for attempting to import approximately 55 kilograms of meth, announced Acting U.S. Attorney Jennifer B. Lowery.
Heidy Jackaline Diaz pleaded Nov. 6, 2020.
Today, U.S. District Judge Micaela Alvarez ordered Diaz to serve a 70-month sentence to be immediately followed by three years of supervised of release. At the hearing, the court noted the large amount of meth involved its potential harm to the community .
On May 23, 3020, Diaz arrived at the Hidalgo Port of Entry driving a Ford truck and applied for admission into the United States from Mexico. During inspection, authorities conducted an X-ray examination which showed anomalies in the gas tank area of the vehicle. A K-9 also altered to the presence of narcotics.
Law enforcement ultimately extracted more than 120 pounds of meth with an approximate street value of over $1 million.
Diaz admitted she knowingly imported the meth into the United States from Mexico with the intent to deliver them to another individual in McAllen. She expected to be paid $3,000.
She has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the future.
Immigration and Customs Enforcement’ s Homeland Security Investigations and Customs and Border Protection conducted the investigation. Assistant U.S. Attorneys Frances E. Blake and Eliza Carmen prosecuted the case.
Tax Preparer Pleads Guilty to Conspiring to Defraud the IRSRead the Press Release
A Maryland tax return preparer pleaded guilty today to conspiracy to defraud the United States and aiding in the preparation of a false tax return.
According to court documents and statements made in court, Anita Fortune, 56, of Upper Marlboro, provided return preparation services under multiple business names, including Tax Terminatorz Inc. Fortune prepared and filed returns using co-conspirators’ electronic filing identification numbers and identifiers, which they provided in exchange for fees and office space. For the tax years 2011 to 2018, Fortune and her associates fraudulently reduced their clients’ tax liabilities and increased their refunds by adding fictitious or inflated itemized deductions and business losses to the clients’ returns. In total, Fortune caused a tax loss to the IRS of $189,748.
Fortune is scheduled to be sentenced on June 4, 2021, and faces a maximum sentence of five years in prison for the conspiracy count and three years for the preparing a false return count. Fortune also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Jonathan Lenzner for the District of Maryland made the announcement.
The IRS-Criminal Investigation is investigating the case.
Trial Attorney Kathryn Sparks of the Tax Division and Assistant U.S. Attorney Leah Grossi are prosecuting the case.
Statesboro man sentenced to federal prison for illegally possessing ammunitionRead the Press Release
STATESBORO, GA: A Statesboro man arrested after a shooting on a residential street has been sentenced to eight years in federal prison while still facing state charges.
Courtney Raynard Spann, 29, of Statesboro, was sentenced to 96 months in prison by U.S. District Court Judge R. Stan Baker after pleading guilty to Possession of Ammunition by a Convicted Felon, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. Spann also was ordered to serve three years of supervised release upon completion of his prison term.
There is no parole in the federal system.
“Previously convicted felons are prohibited from possessing firearms or ammunition - period,” said Acting U.S. Attorney Estes. “Courtney Spann’s record makes it abundantly clear why these laws are in place, and our office will relentlessly enforce these laws to keep firearms out of the hands of violent criminals.”
As described in court documents and testimony, Spann came to the attention of officers from the Statesboro Police Department who were investigating reports of gunfire in a high-density residential area on Jan. 25, 2020, that resulted in damage to multiple homes and vehicles. Spann was located and later arrested, and officers found four firearms, including assault-style weapons, along with multiple rounds of ammunition, extended magazines and drum magazines in his vehicle.
Investigators also determined that Spann is a member of the Gangster Disciples criminal street gang, with a criminal history that includes a felony conviction for drug trafficking. He faces additional state charges related to the incident that led to his arrest.
“Keeping guns out of the hands of repeat felony offenders is a priority for the FBI because of offenders like Spann,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “But we couldn't do it without the partnerships with our fellow local, state, and federal law enforcement agencies, in particular in this case, the Statesboro Police Department.”
The case is being investigated by the FBI and the Statesboro Police Department, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives, and prosecuted for the United States by Assistant U.S. Attorneys Jennifer Stanley and Tara M. Lyons.
Springfield Man Sentenced for Failing to Register as a Sex OffenderRead the Press Release
BOSTON – A Springfield man was sentenced today in federal court for failing to register as a sex offender.
Ruben Pagan, 50, was sentenced by U.S. District Court Judge Mark G. Mastroianni to two years in prison and 10 years of supervised release. In August 2020, Pagan pleaded guilty to one count of failing to register as a sex offender.
Pagan, who was convicted of a sex offense in 2002, moved from Springfield to Providence, R.I. in October 2017. He remained in Providence until March 2018, when he was arrested on a Massachusetts state court warrant charging him with child sexual abuse. Pagan failed to register as a sex offender in Rhode Island, including while the warrant for his arrest was outstanding.
The two-year sentence imposed today will run consecutively to a six-year state court sentence Pagan is currently serving after previously pleading guilty to rape and abuse of a child. Pagan was also convicted of failure to register as a sex offender on two prior occasions in Massachusetts state court.
Acting United States Attorney Nathaniel R. Mendell and John Gibbons, United States Marshal for the District of Massachusetts made the announcement. Assistant U.S. Attorney Alex J. Grant of Mendell’s Springfield Branch Office prosecuted the case.
South Florida Escort Sentenced to Prison for Tax FraudRead the Press Release
Miami, Florida – A South Florida male escort who lied to the IRS about his income was sentenced today to 21 months in prison and ordered to pay $278,325 in restitution.
According to court documents, 46-year-old Jami Kopacz worked as a paid escort directly with individual clients and with a private escort company as an independent contractor. Kopacz accepted payment for his work through cash, check, wire transfer, and electronic money transfer to JK Trading LLC, a Florida “Subchapter S” corporation that he established in 2015. Kopacz, the sole owner of JK Trading, elected to report the company’s income and losses on his personal tax returns. This meant that JK Trading’s income, losses, deductions, and credits would pass through to Kopacz’s individual tax returns and that Kopacz would pay tax on the company’s earnings at the individual, and not the corporate, tax rate.
From 2015 to 2018, Kopacz filed false corporate tax returns with the IRS that substantially underreported JK Trading’s gross receipts and total income. This understatement on JK Training’s corporate tax returns passed through to Kopacz’s individual tax returns, which were also false because they underreported his total income. Kopacz caused a total tax loss to the Internal Revenue Service of $278,325.
In addition to imposing a term of imprisonment, Judge Roy K. Altman ordered Kopacz to pay $278,325 in restitution to the IRS.
Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida, Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division, and Tyler R. Hatcher, Acting Special Agent in Charge, Internal Revenue Service-Criminal Investigation, Miami Field Office, made the announcement.
U.S. Attorney Fajardo Orshan and Principal Deputy Assistant Attorney General Zuckerman commended the investigative efforts of Internal Revenue Service-Criminal Investigation, Miami Field Division. The case is being prosecuted by Assistant U.S. Attorney Christopher Browne and Trial Attorney Grace Albinson.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov, under case number 20-cr-60096-RKA.
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Robert J. Troester Assumes Role as Acting United States Attorney for the Western District of OklahomaRead the Press Release
OKLAHOMA CITY – On March 1, 2021, Robert J. Troester assumed the role as the Acting United States Attorney for the Western District of Oklahoma, following the departure of U.S. Attorney Timothy J. Downing on February 28, 2021. This is the fourth time Troester has held this position.
As Acting U.S. Attorney, Troester serves as the chief federal law enforcement officer responsible for all federal criminal prosecutions and civil litigation involving the United States in the Western District of Oklahoma, an area covering 40 counties and including 21 Indian tribes.
"It is an honor and privilege to represent the United States and lead the talented team in this office as we pursue justice for the people of Western District of Oklahoma," said Acting U.S. Attorney Troester. "I will strive to further strengthen our partnerships with federal, state, local, and tribal law enforcement agencies to ensure the ethical, vigorous, fair and impartial enforcement of the laws of the United States."
Troester joined the U.S. Attorney’s Office in 1995 as an Assistant U.S. Attorney and held various management positions since 2002, including serving as First Assistant U.S. Attorney, Executive Assistant U.S. Attorney, and Chief of the Civil Division.
Throughout his 25-plus year career in the Department of Justice, Troester has served in various capacities within the Department. In 2020, he was Chair of the Victim Services Working Group for the President’s Commission on Law Enforcement and the Administration of Justice. From 2017 to 2018, he served as Associate Deputy Attorney General and Sr. Counsel to the Deputy Attorney General in Washington D.C.
From 2018 to 2019, while serving as Acting U.S. Attorney, he served as Vice-Chair of the Attorney General’s Advisory Committee (AGAC) Civil Rights Subcommittee and as Vice-Chair of the AGAC Health Care Fraud Working Group. In 2005, he was appointed by the Attorney General as the sole career member to serve a three-year term on the AGAC.
In 2011 and 2012, Troester also served on several short-term special projects with the DOJ Criminal Division’s Overseas Prosecutorial Development Assistance and Training office and the U.S. Embassy in Chisinau, Moldova, to conduct a management and training needs assessment for Supervisory Prosecutors in the Moldova Prosecutor General’s Office, develop a training curriculum, and implement a training program in Moldova.
Troester has served on two details to the Executive Office for U.S. Attorneys (EOUSA) in Washington D.C. From 2001 to 2002 he served as Deputy Director for Legal Programs, and from 1999 to 2000 he served as the national Affirmative Civil Enforcement (ACE) Coordinator.
Prior to joining his federal service at the United States Attorney’s Office, Troester worked in private practice in Oklahoma City, in state government at the Oklahoma Employment Security Commission, and in local law enforcement at the Buffalo County Sheriff’s Office in Nebraska.
Troester received his Juris Doctorate from Oklahoma City University School of Law and his Bachelor of Science degree from the University of Nebraska at Kearney.
Richmond Man Sentenced for Role in Multimillion-Dollar Investment Fraud SchemeRead the Press Release
RICHMOND, Va. – A Richmond man was sentenced today to 97 months in prison for his role in an investment scheme that defrauded investors of $5.7 million.
According to court documents and evidence presented at trial, James Michael Johnson, 69, participated in a worldwide scheme through Chimera Group Ltd., a purported investment company based out of the United Kingdom. Johnson was convicted by a federal jury of conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering on October 30, 2020, after a four-day trial.
“For more than four years, the defendant and his co-conspirators stole over $5 million from victim investors, which included individuals, startup business entities, and a volunteer fire department,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Thanks to the outstanding work of the trial team and our law enforcement partners, the defendant has been held accountable for inflicting significant economic harm on his victims and abusing their trust.”
From July 2014 to March 2019, the fraud operated as an advance-fee scheme in which the defendants acted as promoters who promised to pay the victims a sum of money at a later date, in exchange for an upfront advanced payment. Among other misrepresentations, Johnson and his co-conspirators told potential victims that their principal payments would be protected based on letters of credit and other documents that purported to be from a large financial institution. However, these letters were fabricated. The evidence also showed that Johnson and his co-conspirators used escrow attorneys, who were themselves part of the scheme, in order to give the victims the impression that their money would remain secure until the conspirators’ promises had been kept.
Johnson and his co-conspirators stole approximately $5.7 million from their victims. Co-conspirator James Leonard Smith, 64, of Midlothian, Virginia, is scheduled to be sentenced on May 27, and Stuart Jay Anderson, 54, of Alisa Viejo, California, was sentenced to four years in prison on December 3, 2020. Brian Michael Bridge, 46, of London, England, a fugitive, was also charged in the superseding indictment and is presumed innocent unless and until proven guilty.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Nicholas L. McQuaid, Acting Assistant Attorney General of the Justice Department’s Criminal Division; Delany De Leon-Colón, Inspector in Charge of the U.S. Postal Inspection Service’s Criminal Investigations Group; Christopher R. Derrickson, Acting Special Agent in Charge of the FBI’s Richmond Field Office; and Judith Williams Jagdmann, Chair of the Virginia State Corporation Commission, made the announcement.
Assistant U.S. Attorney Michael C. Moore and Trial Attorneys Christopher Jackson and Vasanth Sridharan of the Justice Department’s Fraud Section prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:19-cr-117.
Repeat Offender Caught Breaking into Cars in Downtown Macon Is Sentenced to Federal Prison for Illegally Possessing A FirearmRead the Press Release
MACON, Ga. – A convicted felon apprehended in possession of a firearm while attempting to break into vehicles in downtown Macon was sentenced to federal prison for his crime, said Peter D. Leary, the Acting U.S. Attorney for the Middle District of Georgia.
Matthew Dixon, 33, of Milledgeville, Georgia, was sentenced to serve 41 months in prison by U.S. District Judge Tilman “Tripp” Self on Tuesday, March 2, to be followed by three years of supervised release. Dixon previously pleaded guilty to one count of possession of a firearm by a convicted felon. There is no parole in the federal system.
“I applaud law enforcement for working 24/7 in an effort to keep Macon safe. Repeat offenders who are arrested in illegal possession of guns should know they face the possibility of their criminal cases being transferred to the federal court system,” said Acting U.S. Attorney Leary. “Thank you to the Bibb County Sheriff’s Office and ATF for their work in this case.”
“This case represents how potentially dangerous a career criminal with a gun can be. Thanks to the good work of the Bibb deputy and the follow up by federal authorities, this felon will be off our streets for a few years,” said Bibb County Sheriff David Davis.
On October 4, 2019, at approximately 1:26 a.m., the Bibb County Sheriff’s Office received a report of a suspicious person trying to break into parked vehicles in downtown Macon. Dixon, matching the complainant’s description and exiting the vehicle described by the complainant, was spotted by the deputy. Dixon fled on foot and the deputy saw Dixon attempt to pull something from his pants with his right hand, which was later found to be a .40 caliber pistol. The deputy repeatedly gave commands for Dixon to stop, but he did not comply and was tased after multiple warnings. Dixon was taken into custody. Dixon was previously convicted of five counts entering an auto in the Superior Court of Baldwin County, Georgia.
The investigation was conducted as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see https://www.justice.gov/archives/projectguardian.
The case was investigated by the Bibb County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Assistant U.S. Attorney Elizabeth Howard prosecuted the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, U.S. Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Officer (Contractor), U.S. Attorney’s Office, at (478) 765-2362.
Red Springs Man Sentenced to 24 Years for Firearms CrimesRead the Press Release
RALEIGH, N.C. – A Red Springs man was sentenced today to 288 months in prison for possessing multiple stolen firearms as a convicted felon.
According to court documents, as well as evidence presented at the sentencing hearing, Martin Elliott Brooks, 39, possessed multiple stolen firearms as a convicted felon. On November 26, 2018, the Myrtle Beach Police Department investigated a burglary where multiple firearms were stolen from a hotel room. The investigation established that Brooks, stole an AK-47 rifle, an AR-22 rifle, two handguns, and hundreds of rounds of ammunition. Brooks later sold two of those firearms unlawfully.
On December 12, 2018, investigators with the United States Marshals Service, Robeson County Sheriff’s Office, and Pembroke Police Department located and arrested Brooks on outstanding warrants. During the arrest, Brooks locked himself in a bedroom and fired multiple shots into the ceiling. Several hours later, he surrendered without further incident. Investigators searched the residence and recovered two of the stolen firearms, and an additional firearm.
This case is part of the Take Back North Carolina Initiative of The United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement. For more information about this initiative click here: https://www.justice.gov/usao-ednc/tbnc.
G. Norman Acker, III, Acting United States Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), United States Marshals Service, Robeson County Sheriff’s Office, Pembroke Police Department, and North Carolina Department of Public Safety Special Operations and Intelligence Unit investigated the case and Assistant U.S. Attorney Chad E. Rhoades prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:19-cr-00084-D.
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Readout of the Department of Justice’s Efforts to Combat Hate Crimes Against Asian American and Pacific Island CommunitiesRead the Press Release
The Department of Justice today held a listening session with more than a dozen Asian American and Pacific Islander (AAPI) community groups as part of its continuing efforts to deter hate crimes and other unlawful acts against the AAPI community.
“No one in America should fear violence because of who they are, what they look like or what part of the world they or their families came from,” said Acting Deputy Attorney General John Carlin, the host of the meeting. “The Department of Justice and our component agencies are committed to bringing all of our tools to bear in supporting AAPI communities as we address the horrific rise in hate and bias incidents occurring across the country.”
Today’s listening session follows a meeting Carlin had earlier this week with key U.S. Attorneys in Districts around the country with significant AAPI populations including:
- Northern District of California (San Francisco, San Jose, Oakland)
- Central District of California (Los Angeles)
- Southern District of Texas (Houston)
- Northern District of Illinois (Chicago)
- Southern District of New York (Manhattan)
Carlin requested feedback from each District’s work on AAPI-related hate crimes and incidents including cases trends, community outreach efforts and data collection. The meeting was also attended by senior leaders of the Department’s Civil Rights Division, Executive Office for the U.S. Attorneys and FBI Headquarters.
Additional Background
- On January 26, 2021, President Biden issued the “Presidential Memorandum Condemning and Combating Racism, Xenophobia, and Intolerance Against Asian Americans and Pacific Islanders in the United States,” which mandates that the “Attorney General shall:
- explore opportunities to support, consistent with applicable law, the efforts of State and local agencies, as well as AAPI communities and community-based organizations, to prevent discrimination, bullying, harassment, and hate crimes against AAPI individuals, and
- expand collection of data and public reporting regarding hate incidents against such individuals.
- Since the signing of that memo the Department has been working to combat discrimination and violence through both direct federal law enforcement action and capacity building, training, support, and outreach to our partners in state and local law enforcement and the AAPI community.
- The Department has investigated complaints of discrimination and violence against the AAPI community on all fronts – ranging from employment or housing discrimination to reported assaults.
- The Department has monitored reports by organizations like the Asian Pacific Policy & Planning Council (A3PCON) and Stop AAPI Hate, as well as media reporting, to identify which might be actionable under federal hate crime statutes.
- DOJ hosted Hate Crime Forums aimed at state and local law enforcement, attorneys, community members, community advocacy organizations, and other groups, to provide education raise awareness about hate crimes investigations, challenges and available resources.
- DOJ’s Community Relations Service is working with community-based groups including youth, faith leaders, cultural leaders, and civil rights organizers from API, Black, and Latino communities to reduce racial tensions and prevent violence.
- DOJ is just getting started. Among other things, DOJ plans to make clear that this issue is among our highest priority, engage in increased outreach, and dedicate resources to combat the threat.
- DOJ is taking a fresh look at ways of reinvigorating the Department’s Hate Crimes Enforcement and Prevention Initiative, to identify how we can best expand data collection and reporting regarding hate incidents against AAPI persons including:
- Launch a new community outreach and engagement program designed to improve identifying, reporting, and preventing hate crimes and build trust with federal, state, local, and tribal law enforcement;
- Translate our hate crimes resources website and complaint portal to the 4 most common AAPI languages, beginning with Chinese (Traditional and Simplified) and conduct outreach to reach those limited English proficient communities;
Work with state victims’ programs to help them address hate crimes; - Establish a new grant program to help states, localities, and tribal law enforcement agencies to conduct educational outreach and training on hate crimes and to investigate and prosecute hate crimes;
- Launch a new Hate Crimes program under the Matthew Shepard/James Byrd Hate Crimes Program to support funds and training and technical assistance to support outreach, education, reporting, investigation and prosecution of hate crimes; and
- Review how we collect and use hate crime data and statistics.
Portfolio Manager of Real Estate Investment Fund Charged with Using Sham Loan Document to Obtain Money from InvestorRead the Press Release
NEWARK, N.J. – A portfolio manager and senior independent executive advisor at a Secaucus-based real estate fund was charged with using a sham loan document to defraud an investor of hundreds of thousands of dollars, Acting U.S. Attorney Rachael A. Honig announced today.
Thomas Nicholas Salzano, aka “Nick Salzano,” of Secaucus, New Jersey, was charged by complaint with one count of wire fraud and one count of aggravated identity theft. Salzano appeared by videoconference on March 4, 2021, before U.S. Magistrate Judge Leda Dunn Wettre and was released on a $100,000 unsecured bond.
According to documents filed in this case and statements made in court:
Salzano was employed at National Realty Investment Advisors (NRIA), a private real estate management fund with a purported $1.25 billion in assets under management as of 2021. In May 2018, Victim 1 purchased three purported units in NRIA’s real estate investment fund for $150,000, after hearing an advertisement for the fund on the radio. Individual 1, a vice president and senior independent project manager at NRIA, offered Victim 1 a guaranteed 6 percent return for each unit purchased, paid monthly, for the first two to two-and-a-half years of the five-year term, and the potential of greater guaranteed returns after the initial period.
Near the end of 2018, Individual 1 approached Victim 1 about a supposed new opportunity to become a joint venture partner with NRIA in a property in North Bergen, New Jersey, allegedly owned by NRIA. According to Individual 1, the minimum investment was $300,000, and Victim 1 could use her original $150,000 investment in the NRIA fund toward the required $300,000 investment in the North Bergen property.
Victim 1 asked Individual 1 for more information on the North Bergen property. Individual 1 sent Victim 1 materials purporting to show that NRIA intended to obtain a $25 million bank loan on the property. Victim 1 asked for information on the loan. Individual 1 then referred Victim 1 to Salzano.
On Jan. 17, 2019, Salzano emailed Victim 1 a purported letter of intent (LOI) from Lender 1, a loan provider for estate investors and developers, purportedly signed by Victim 2, the chief executive officer of Lender 1. The LOI sent by Salzano was fraudulent. A representative later confirmed that the letter was fraudulent and Victim 2’s signature was forged.
The wire fraud charge carries a maximum potential penalty of 20 years in prison and a fine of $250,000. The aggravated identity theft charge is punishable by a mandatory sentence of two years in prison to be served consecutively to any other term of imprisonment imposed.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorneys Andrew Macurdy and Jonathan Fayer of the of the U.S. Attorney’s Office Economic Crimes Unit.
The charges and allegations in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Philadelphia Duo Indicted for Attempting to Set Off Explosive Devices Inside Wawa During Summer 2020 Civil UnrestRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Michael Fields, 34, and Desiree Adorno, 65, both of Philadelphia, PA, were arrested and charged by Indictment for their alleged attempt to rob a Wawa in Philadelphia with multiple explosive devices. Fields made his initial appearance in federal court today, and Adorno is scheduled to make her initial appearance in federal court on Monday.
Following peaceful protests in Philadelphia in the early afternoon of May 30, 2020 in response to the killing of George Floyd in Minneapolis, MN, civil unrest began to unfold later that afternoon and into the following day that resulted in widespread looting, burglary, arson, destruction of property, and other violent acts. The Indictment alleges that in early June 2020, Fields and Adorno conspired with other individuals to break into a Wawa store on Richmond Street in Philadelphia. In addition to stealing merchandise from the store, the Indictment alleges that the defendants had explosive devices in their possession, one of which was placed inside a lottery machine inside the Wawa, and two of which were placed near a safe and a cash register in the middle of the store. Police arrived at the store before any devices were detonated. Both Fields and Adorno are charged with conspiracy and attempting to maliciously damage property used in interstate commerce by means of an explosive, and aiding and abetting. Fields was also charged with possession of an unregistered firearm.
“The U.S. Attorney’s Office and the entire Department of Justice will always support peaceful protest – we are sworn to protect the rights guaranteed by the First Amendment,” said Acting U.S. Attorney Williams. “But that does not cover destructive rioting, looting, committing arson and other violent acts. Here, the defendants allegedly attempted to detonate explosive devices while robbing a store, potentially endangering many lives including those of police officers who responded to the scene. This conduct is not free speech and is not protected by our constitution; rather, it is criminal.”
“As alleged, these defendants were in possession of several explosive devices and appeared intent to use them,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division. “This type of behavior places our entire community in danger. I commend the outstanding work of the Philadelphia Police Department who acted swiftly and were able to arrest these individuals before further harm could be done. ATF, along with our local, state and federal partners remain dedicated to protecting our community from violent acts of all kinds.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
If convicted, defendant Fields faces a maximum possible sentence of 90 years in prison, and defendant Adorno faces a maximum possible sentence of 80 years in prison.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Roberta Benjamin.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Owner of IT Services Company Pleads Guilty to Defrauding New York StateRead the Press Release
ALBANY, NEW YORK – Lakshmikanth Sripuram, age 37, of Monmouth Junction, New Jersey, pled guilty today to wire fraud conspiracy in connection with a scheme to defraud New York State.
The announcement was made by Acting United States Attorney Antoinette T. Bacon; New York State Comptroller Thomas P. DiNapoli; and Kevin Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
Sripuram is the president of PIntegra, LLC. As part of his plea, he admitted that between 2015 and 2017, he conspired with Co-Conspirator 1, a former employee of the Office of the State Comptroller (OSC), to fraudulently obtain money from OSC.
In January 2015, OSC entered into a contract with a consortium of three companies to identify and hire computer programmers for a project. When OSC needed to hire a programmer, it sent a request form to one of the three companies. Each company then submitted a purportedly qualified applicant. Frequently, the applicants were employed by subcontractors, including PIntegra. From January 2015 through October 2016, OSC hired 17 programmers for the project at hourly rates ranging from $80 to $120. In late 2016, OSC learned that many of the programmers’ references and work histories were not legitimate, including those hired from PIntegra, and launched an internal investigation.
Sripuram admitted that, between February 2015 and October 2016, he and his co-conspirator ensured that programmers from PIntegra were hired by falsifying information regarding their experience and work histories, and by providing them with interview questions ahead of their interviews at OSC. Co-Conspirator 1 then interviewed the programmers, hired them knowing that their qualifications were falsified, and set their hourly rates. Between February 2015 and September 2017, PIntegra received approximately $870,000 from OSC for its programmers’ pay. Sripuram kept a percentage of the programmers’ pay. He then paid Co-Conspirator 1 a portion of that percentage as a kickback.
As a result of his conviction, Sripuram faces up to 20 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years, when he is sentenced on July 6, 2021 by United States District Judge Mae A. D’Agostino. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was initiated by the Office of the New York State Comptroller, and was also investigated by HSI, the United States Postal Inspection Service, and the United States Department of Labor, Office of Inspector General, Office of Investigations. The case is being prosecuted by Assistant U.S. Attorney Katherine Kopita.
Owner and Employees of Alleged Pill Mill Facing Federal Indictment for an Oxycodone Distribution ConspiracyRead the Press Release
Greenbelt, Maryland – A federal grand jury has indicted the owner and operator of a purported pain management clinic, as well as two nurse practitioners who were employed at the clinic, on the federal charges for conspiracy to distribute and dispense oxycodone and for distribution and dispensing of oxycodone. Charged in the indictment are:
Joyce Shawanda Edwards, age 45, of Largo, Maryland;
Justina Aburime, age 53, of Bowie, Maryland; and
Thomas Charles Johnson, Jr., age 56, of Baltimore, Maryland.
The indictment was returned on March 3, 2021 and unsealed today at the initial appearances of the defendants.
The indictment was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Jarod Forget of the Drug Enforcement Administration - Washington Division; and Special Agent in Charge Maureen Dixon, Office of Investigations, Office of Inspector General of the Department of Health and Human Services.
According to the eight-count indictment, from February 2017 to February 2020, Joyce Shawanda Edwards owned and operated Personal Touch Medical Spa, LLP (“PTMS”), formerly known as Holistic Health and Wellness Medical Spa LLP, a purported “pain management” clinic located in Largo, Maryland, which the indictment alleges was, in reality, a “pill mill.” A pill mill is a health care provider’s office, clinic, or health care facility that routinely prescribes and dispenses controlled substances outside the scope of professional practice and without a legitimate medical purpose. According to the indictment, Justina Aburime was a nurse practitioner who worked at PTMS from February 2017, until she left in August 2018, at which time Thomas Charles Johnson, Jr., who was also a nurse practitioner, began working at PTMS. Aburime and Johnson were both authorized to prescribe controlled substances for legitimate medical purposes and in the course of professional practice.
Specifically, the indictment alleges that Edwards, Aburime, and Johnson distributed and dispensed oxycodone that was not prescribed for a medical purpose or in the usual course of professional practice. Edwards typically charged customers who came to PTMS a fee of $280 for an initial visit and $250 for any subsequent visit. Although Edwards, Aburime, and Johnson allegedly required customers of PTMS to provide certain paperwork, generally a magnetic resonance imaging (“MRI”) report, a prescription history, and a “plan of care” purportedly signed by the customer’s primary care physician, to include in the customer’s patient file to support a false claim that there was a legitimate medical need for the prescription of oxycodone, the indictment alleges that the conspirators prescribed oxycodone even when the medical records revealed that there was no legitimate medical need for the prescription. The conspirators allegedly directed customers to physical therapy and provided massages to create the false appearance that PTMS provided other treatment options to controlled substances.
The indictment alleges that Aburime and Johnson pre-signed blank prescriptions, allowing Edwards to issue prescriptions for oxycodone under their names. Further, the indictment alleges that even though Edwards was not authorized to prescribe controlled substances, she wrote and issued prescriptions for oxycodone using blank prescriptions that Edwards signed under the name of a nurse practitioner. Edwards allegedly issued prescriptions for controlled substances at times when a nurse practitioner was not present and did not see the patient, including on dates when Aburime and Johnson were out of town. Edwards, Aburime, and Johnson also allegedly: conducted cursory, incomplete, and inadequate medical examinations; prescribed controlled substances on the basis of diagnoses that were not corroborated by the medical record; increased the customer’s dosage over time without a medical justification; falsified urine drug test results for customers receiving oxycodone prescriptions; and permitted the customer to determine the drug type and dosage, rather than prescribing controlled substances according to legitimate medical need.
The indictment also seeks the forfeiture of approximately $278,951.72, seized on July 11, 2019, after the execution of seizure warrants on bank accounts held in the name of Personal Touch Medical Spa, LLP.
If convicted, the defendants each face a maximum sentence of 20 years for the conspiracy and for each count of distribution and dispensing of controlled substances. 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.
The defendants had an initial appearance today in U.S. District Court in Greenbelt and were ordered to be released under the supervision of U.S. Pretrial Services pending trial.
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 DEA and the U.S. Department of Health and Human Services - Office of Inspector General for their work in the investigation and thanked the Charles County Sheriff’s Office, the Prince George’s County Police Department, the Virginia State Police, and the Metropolitan Police Department for their assistance. Mr. Lenzner thanked Assistant U.S. Attorneys Jessica C. Collins and Elizabeth Wright, who are prosecuting the case.
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Orlando Man Indicted on Federal Human Trafficking ChargesRead the Press Release
Tampa, FL – Acting United States Attorney Karin Hoppmann announces the return of an indictment charging Henry Lee White, III (26, Orlando) with sex trafficking by force, fraud, and coercion, transportation of an individual in interstate commerce for the purpose of prostitution, coercion and enticement, and being a felon in possession of ammunition. If convicted on all counts, White faces a maximum penalty of life in federal prison. The indictment also notifies White that the United States intends to forfeit assets alleged to have facilitated these offenses.
According to the indictment, from June 2, 2020, through January 7, 2021, White used force, threats of force, fraud, and coercion to cause Victim 1 to engage in prostitution. During that time, White trafficked Victim 1 within the Middle District of Florida, and transported Victim 1 from Florida to Georgia so that Victim 1 could engage in prostitution. The indictment also charges that White, a convicted felon, was found in possession of ammunition in violation of federal law.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by Homeland Security Investigations, the Hillsborough County Sheriff’s Office, and the Tampa Police Department. It will be prosecuted by Assistant United States Attorney Lisa M. Thelwell.
This case was brought as part of the Tampa Bay Human Trafficking Task Force of the Middle District of Florida, one of 13 task forces in the country to receive grant funding from the Department of Justice’s Bureau of Justice Assistance. The Task Force is a collaboration of local, state, and federal law enforcement agents working together with organizations to detect, investigate, and prosecute human trafficking in the Tampa Bay area. This includes trafficking of minors, forced labor, transnational sex trafficking, and sex trafficking of adults by force, fraud, or coercion. More information about the Tampa Bay Human Trafficking Task Force can be found at www.justice.gov/usao-mdfl/humantrafficking. Information on the Department of Justice’s efforts to combat human trafficking can be found at www.justice.gov/humantrafficking.
Ohio treatment facilities & corporate parent agree to pay $10.25 millionRead the Press Release
COLUMBUS, Ohio – A Florida company that operates two Ohio inpatient psychiatric hospitals and one Ohio substance abuse treatment facility will pay $10.25 million to resolve alleged violations of the False Claims Act.
Oglethorpe Inc. and its three Ohio facilities, Cambridge Behavioral Hospital, Ridgeview Behavioral Hospital, and The Woods at Parkside, will pay $10.25 million to resolve alleged violations of the False Claims Act for improperly providing free long-distance transportation to patients and admitting patients at Cambridge and Ridgeview who did not require inpatient psychiatric treatment, resulting in the submission of false claims to the Medicare program.
The settlement was based on analysis of the companies’ ability to pay after review of their financial condition.
This settlement resolves allegations that, between August 2013 and June 2019, defendants provided free long-distance van transportation to patients to induce them to seek treatment at the defendants’ facilities, in violation of the Anti-Kickback Statute, and then submitted claims for services provided to these patients, in violation of the False Claims Act. The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by a federal health care program, such as Medicare, Medicaid or TRICARE. Claims submitted to these programs in violation of the Anti-Kickback Statute give rise to liability under the False Claims Act. The government also alleged that Oglethorpe, Cambridge, and Ridgeview submitted, or caused to be submitted, false claims to Medicare for medically unnecessary inpatient psychiatric admissions and associated services at the two hospitals.
“Submitting false claims by billing for unnecessary inpatient psychiatric hospitalizations is not only inappropriate – it’s illegal,” said Acting U.S. Attorney Vipal J. Patel for the Southern District of Ohio. “This settlement shows that the United States will hold accountable those who seek to profit by flouting proper standards of medical practice and appropriate review and submission of Medicare billings.”
“Kickbacks to patients can result in unnecessary services that serve neither the patients nor our federal health care programs,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The Justice Department is committed to pursuing unlawful remunerations in whatever form they occur to safeguard taxpayer funded health care benefits.”
“Kickbacks in the form of free van rides and the false claims subsequently submitted to federal health care programs come at a tremendous cost to patients and the taxpayers,” said Special Agent in Charge Lamont Pugh for the Office of Inspector General of the U.S. Department of Health and Human Services (HHS-OIG). “We will continue to work with our law enforcement partners to pursue and hold accountable entities who engage in such acts.”
Contemporaneous with the settlement, Oglethorpe entered into a corporate integrity agreement (CIA) with HHS-OIG. Among other things, the CIA requires that for the next five years Oglethorpe must retain an Independent Review Organization to review its claims to Medicare and Medicaid.
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Darlene Baker, a former client advocate at Cambridge. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery if the government takes over the case and reaches a monetary agreement with the defendant.
The resolutions obtained in this matter were the result of a coordinated effort between the U.S. Attorney’s Office for the Southern District of Ohio; the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section; and HHS-OIG.
The matter was investigated by Deputy Civil Chief Andrew Malek and Trial Attorney Christopher Wilson of the Department of Justice’s Civil Division.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
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Ohio Treatment Facilities and Corporate Parent Agree to Pay $10.25 Million to Resolve False Claims Act Allegations of Kickbacks to Patients and Unnecessary AdmissionsRead the Press Release
Oglethorpe Inc. and its three Ohio facilities, Cambridge Behavioral Hospital, Ridgeview Behavioral Hospital, and The Woods at Parkside, will pay $10.25 million to resolve alleged violations of the False Claims Act for improperly providing free long-distance transportation to patients and admitting patients at Cambridge and Ridgeview who did not require inpatient psychiatric treatment, resulting in the submission of false claims to the Medicare program.
Oglethorpe Inc. is a Florida company that operates two Ohio inpatient psychiatric hospitals, Cambridge and Ridgeview, and one Ohio substance abuse treatment facility, Parkside. The settlement was based on analysis of the companies’ ability to pay after review of their financial condition.
This settlement resolves allegations that, between August 2013 and June 2019, defendants provided free long-distance van transportation to patients to induce them to seek treatment at the defendants’ facilities, in violation of the Anti-Kickback Statute, and then submitted claims for services provided to these patients, in violation of the False Claims Act. The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by a federal health care program, such as Medicare, Medicaid or TRICARE. Claims submitted to these programs in violation of the Anti-Kickback Statute give rise to liability under the False Claims Act. The government also alleged that Oglethorpe, Cambridge, and Ridgeview submitted, or caused to be submitted, false claims to Medicare for medically unnecessary inpatient psychiatric admissions and associated services at the two hospitals.
“Kickbacks to patients can result in unnecessary services that serve neither the patients nor our federal health care programs,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The Justice Department is committed to pursuing unlawful remunerations in whatever form they occur to safeguard taxpayer funded health care benefits.”
“Submitting false claims by billing for unnecessary inpatient psychiatric hospitalizations is not only inappropriate – it’s illegal,” said Acting U.S. Attorney Vipal J. Patel for the Southern District of Ohio. “This settlement shows that the United States will hold accountable those who seek to profit by flouting proper standards of medical practice and appropriate review and submission of Medicare billings.”
“Kickbacks in the form of free van rides and the false claims subsequently submitted to federal health care programs come at a tremendous cost to patients and the taxpayers,” said Special Agent in Charge Lamont Pugh for the Office of Inspector General of the U.S. Department of Health and Human Services (HHS-OIG). “We will continue to work with our law enforcement partners to pursue and hold accountable entities who engage in such acts.”
Contemporaneous with the settlement, Oglethorpe entered into a corporate integrity agreement (CIA) with HHS-OIG. Among other things, the CIA requires that for the next five years Oglethorpe must retain an Independent Review Organization to review its claims to Medicare and Medicaid.
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Darlene Baker, a former client advocate at Cambridge. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery if the government takes over the case and reaches a monetary agreement with the defendant. The qui tam case is captioned United States ex rel. Baker v. Oglethorpe, Inc., et al., No. 2:16-cv-1040 (S.D. Ohio).
The resolutions obtained in this matter were the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section; the U.S. Attorney’s Office for the Southern District of Ohio; and HHS-OIG.
The matter was investigated by Trial Attorney Christopher Wilson of the Civil Division and Assistant U.S. Attorney Andrew Malek.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Nigerian National Sentenced to More Than Five Years for Defrauding Victims Using Online ScamsRead the Press Release
BOSTON – A Nigerian national was sentenced yesterday in connection with defrauding victims using various online scams during the COVID-19 pandemic.
Nosayamen Iyalekhue, 33, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to 63 months in prison and three years of supervised release. In November 2019, Iyalekhue pleaded guilty to one count of wire fraud. Iyalekhue was arrested in June 2020 along with a co-defendant, Esogie Osawaru, 27, who pleaded guilty in November 2020.
Iyalekhue and Osawaru participated in a series of romance, pandemic unemployment insurance, and other online scams designed to defraud victims by convincing them to send money to accounts controlled by the defendants. To carry out the scams, the defendants used false foreign passports in the names of others, but with their own photos, to open numerous bank accounts, and in turn directed the victims to send money to these accounts. Iyalekhue and Osawaru then rapidly withdrew the victims’ money from various bank branches and ATMs, often multiple times during a single day. The schemes included collecting unemployment insurance in the name of others during the COVID-19 pandemic.
Osawaru is scheduled to be sentenced on June 24, 2021.
Acting United States Attorney Nathaniel R. Mendell and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement. Assistant U.S. Attorney Sara Miron Bloom of Mendell’s Securities, Financial & Cyber Fraud Unit prosecuted the case.
NDTX Round up: February 26 - March 4Read the Press Release
SENTENCING – GERSON GAMALIEL ROJO GUZMAN
On February 26, Gerson Gamaliel Rojo Guzman, 31, was sentenced to 7 years for possession with the intent to distribute a controlled substance. Law enforcement executed a search warrant at Rojo Guzman’s residence. Officers recovered cocaine, two firearms, ammunition, and $11,550 in cash. This case was investigated by the Texas Department of Public Safety. Assistant U.S. Attorney P.J. Meitl is prosecuting the case.
SENTENCING – JOSE CELBEY HERNANDEZ
On March 1, Jose Celbey Hernandez, 30, was sentenced to 41 months in federal prison for conspiracy to smuggle goods from the United States. Hernandez and a coconspirator worked together to purchase firearms from individuals and licensed dealers for the purpose of exporting them to individuals in Mexico. They traveled to several locations in Texas to purchase firearms. Hernandez provided money to the coconspirator to illegally purchase firearms before turning them over to him. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Phelesa Guy prosecuted the case.
GUILTY PLEA – DEZIREE LUJAN
On March 2, Deziree Lujan, 29, plead guilty to tampering with a witness or victim. In August 2020, Lujan used social media in an attempt to hinder and prevent a victim’s testimony against a sex trafficking defendant. In one such attempt, Lujan revealed the identity of the victim on social media and threatened the victim with physical violence. During this same timeframe, Lujan was reaching out privately to known pimps on social media and revealing the victim’s identity and further threatening physical harm due to her involvement in a federal prosecution. This case was investigated by Homeland Security Investigations. Assistant U.S. Attorney Melanie Smith is prosecuting the case.
Montgomery County Man Now Facing Federal Charges in Connection with Shooting of County Democratic Party HeadquartersRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Anthony Francis Nero, 48, of Eagleville, PA, was arrested by federal authorities and charged by Criminal Complaint on Wednesday, March 3, 2021, on charges of sending threatening communications and cyberstalking. The defendant made his initial appearance in federal court today and was detained until his next hearing on Tuesday, March 9, 2021.
According to court documents, on January 7, 2021 the Montgomery County Democratic Party (MCDP) allegedly received a communication threatening “random acts of violence” against the MCDP office. Then on January 20, 2021 MCDP officials discovered that the front window of their office space in Norristown, PA, had been shot through three times, striking a wooden desk inside. Investigators inspected two spent rounds found within the MCDP’s office space and determined that they appeared to have been fired from a .45 caliber handgun. Investigators traced the January 7th threatening communication as originating from the defendant’s cell phone. In addition, investigators located a 2011 record of sale of a .45 caliber handgun to the defendant.
“As alleged in the Complaint, the defendant sent a threatening communication and then acted upon those threats – endangering the lives of anyone who might have been in the vicinity,” said Acting U.S. Attorney Williams. “I want to thank our partners in the Montgomery County District Attorney’s Office and all agencies at the federal, state and local levels for their dedicated work investigating this case.”
“Law enforcement at the federal, state and local level take terroristic threats very seriously, and we are partnering together to make sure all communities are safe from this kind of threat and criminal behavior,” said Montgomery County District Attorney Kevin Steele.
If convicted, the defendant faces a maximum possible sentence of 15 years in prison and a $500,000 fine.
The case was investigated by the Federal Bureau of Investigation, Pennsylvania State Police, Montgomery County District Attorney’s Office Detectives, and Norristown Police Department, and is being prosecuted by Assistant United States Attorneys Vineet Gauri and Josh A. Davison.
Michigan Man Pleads Guilty to Using the Internet to Attempt to Entice A Child to Engage in Sexual ActivityRead the Press Release
Jacksonville, Florida – Arthur Jay Traxler, Jr. (55, Monroe, MI) today pleaded guilty to attempted online enticement of a minor to engage in sexual activity. Traxler faces a minimum mandatory term of 10 years, and up to life, in federal prison. Traxler has been detained since his initial arrest in Michigan on November 9, 2020. A sentencing date has not yet been set.
According to the plea agreement, between July 21 and August 4, 2020, Traxler engaged in a series of online conversations with a person whom he believed to be a 14-year-old child. Unbeknownst to Traxler, this “child” was an undercover FBI agent. During the course of the online conversations, Traxler discussed, in detail, his desire to have the “child” send him images of the “child” engaging in sexually explicit conduct.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Ashley Washington.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Manhattan U.S. Attorney Files Civil Injunction Lawsuit to Shut Down Bronx Tax Preparer and His CompanyRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced the filing of a civil complaint against RAFAEL ALVAREZ and ATAX New York LLC (“ATAX New York”) to prohibit them from, among other things, preparing tax returns for others or engaging in activities that substantially interfere with the administration of federal tax laws. The complaint alleges that ALVAREZ and ATAX NEW YORK have prepared and filed fraudulent tax returns on behalf of their customers in order to reduce their customers’ tax liability and generate refunds to which those customers were not entitled.
U.S. Attorney Audrey Strauss said: “Tax return preparers who regularly cheat the tax system by preparing fraudulent federal income tax returns for their customers should not be permitted to continue in business. This Office will work with the IRS to shut down return preparers who fleece the Treasury by claiming improper deductions or credits for their customers.”
As alleged in the Government’s complaint filed in federal district court today:
ATAX NEW YORK is a limited liability company that prepares tax returns for customers in the Bronx. ALVAREZ is a tax preparer and ATAX NEW YORK’s sole member. Together, ATAX NEW YORK and ALVAREZ prepared and filed over 36,000 federal income tax returns from 2016 to 2019 for their customers. In preparing those returns, ATAX NEW YORK and ALVAREZ knowingly prepared and filed false federal income tax returns for their customers by fabricating, among other things, unreimbursed business expenses, charitable contributions, capital loss carryovers, and tuition expenses. Many tax returns prepared and filed by ATAX NEW YORK and ALVAREZ also falsely claimed “head of household” status for their customers as part of this scheme, even by using social security numbers belonging to deceased individuals in claiming dependents.
The Government is seeking an injunction against ATAX NEW YORK and ALVAREZ that would, among other things, permanently bar them from preparing or filing federal tax returns on behalf of others. The complaint also asks the court to order the defendants to turn over the ill-gotten net profits they earned because of their fraudulent conduct.
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Ms. Strauss thanked the Internal Revenue Service for its assistance with this case.
The case is being handled by the Tax and Bankruptcy Unit in the Office’s Civil Division. Assistant U.S. Attorneys Charles S. Jacob and Ilan Stein are in charge of the case.
Man admits role in smuggling 149 undocumented aliens from LaredoRead the Press Release
LAREDO, Texas – A 54-year-old resident of Fort Meade, Florida, has pleaded guilty in Laredo federal court to conspiracy to transport undocumented aliens, announced Acting U.S. Attorney Jennifer B. Lowery.
Joseph Winslow entered a guilty plea today, admitting he had agreed to drive a tractor-trailer from Laredo to San Antonio in return for $10,000.
On Dec. 30, 2020, Winslow arrived at the Border Patrol checkpoint on Interstate Highway 35 approximately 29 miles north of Laredo. Authorities conducted an X-ray of the trailer he was driving and discovered it was full of people. They ultimately identified a total of 149 undocumented aliens.
U.S. District Judge Marina Garcia Marmolejo will impose sentencing June 15. At that time, Winslow faces up to 10 years in prison.
He was permitted to remain on bond pending that hearing.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of Border Patrol. Assistant U.S. Attorney David Fawcett is prosecuting the case.
Man Sentenced for Role in Investment-Fraud SchemeRead the Press Release
A Virginia man was sentenced today to over eight years in prison for his role in an investment-fraud scheme in which he and his co-conspirators stole at least $5.7 million from victim investors.
James Michael Johnson, 69, of Richmond, was convicted by a federal jury of conspiracy to commit wire fraud, wire fraud, and money laundering on Oct. 30, 2020, after a four-day trial.
According to the evidence presented at trial, Johnson participated in a worldwide scheme through Chimera Group Ltd., a purported investment company based out of the United Kingdom. The fraud operated as an advance-fee scheme in which the defendants acted as promoters who promised to pay the victims a sum of money at a later date in exchange for an up-front payment. Among other misrepresentations, Johnson and his co-conspirators told potential victims that their principal payments would be protected based on letters of credit and other documents that purported to be from a large financial institution. However, these documents were fabricated. The evidence also showed that Johnson and his co-conspirators used escrow attorneys, who were themselves part of the scheme, in order to give the victims the impression that their money would remain secure until the defendants’ promises had been kept. Johnson and his co-conspirators stole at least $5 million from their victims.
Co-defendant James Leonard Smith, 64, of Midlothian, Virginia, is scheduled to be sentenced on May 27, 2021. Co-defendant Brian Michael Bridge, 46, of London, England, a fugitive, was also charged in the superseding indictment.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Acting U.S. Attorney Raj Parekh of the Eastern District of Virginia; Inspector in Charge Delany De León-Colón of the U.S. Postal Inspection Service Criminal Investigations Group; Acting Special Agent in Charge Christopher R. Derrickson of the FBI’s Richmond Field Office; and Chair of the Virginia State Corporation Commission Judith Williams Jagdmann made the announcement.
The U.S. Postal Inspection Service, FBI’s Richmond Field Office, and Virginia State Corporation Commission investigated the case.
Trial Attorneys Christopher Jackson and Vasanth Sridharan of the Justice Department’s Fraud Section and Assistant U.S. Attorney Michael C. Moore of the Eastern District of Virginia prosecuted the case.