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8 February 2021
Defendant Receives 150 Months in Federal PrisonRead the Press Release
RALEIGH, N.C. – Kevin Brown, 40, of Brunswick County, was sentenced today to 114 months imprisonment for conspiracy to possess with the intent to distribute and distribution of 28 grams or more of cocaine base (crack) and a quantity of cocaine and distribution of a quantity of cocaine. Brown also received a consecutive sentence of 36 months imprisonment for a supervised release violation.
The evidence presented in court and other information revealed that between March and May of 2019, the Brunswick County Sheriff’s Narcotics Division, working with the Bureau of Alcohol, Tobacco and Firearms and Explosives, made several controlled purchases from Brown while he was on federal supervised release for conspiracy to distribute 28 grams or more of cocaine base (crack). Brown had been released from a federal halfway house in February of 2019 after serving a 92 month federal sentence. Following Brown’s arrest on the new charges, law enforcement received information that Brown had obtained a firearm to protect his drugs and money, but they were unable to locate the firearm.
Brown’s prior convictions included accessory after the fact to robbery with a dangerous Weapon (2007), sale of cocaine (2010) and the previously mentioned federal conviction for conspiracy to possess with the intent to distribute and distribution of 28 grams or more of cocaine base.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after the sentencing before U.S. District Judge James C. Dever III. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Brunswick County Sheriff’s Office investigated the case. Assistant U.S. Attorney Timothy Severo prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:20-CR-00005-M.
Columbus Woman Charged with Using Internet to Hire Someone to Commit MurderRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that a Columbus, Wisconsin, woman has been arrested pursuant to a federal criminal complaint that charges her with using the Internet to hire someone to commit murder. Kelly Harper, 37, was arrested on Friday, February 5, 2021.
The complaint charges that from October 19 through December 10, 2020, Harper used a murder-for-hire site on the dark web to hire someone to kill an individual. The complaint alleges that Harper provided a description of the intended victim, details about the victim’s vehicle, where the victim worked, and the victim’s cell phone number. The complaint further alleges that payment was made in bitcoin.
Harper is currently in custody at the Dane County Jail. A time for her initial appearance in U.S. District Court in Madison, Wisconsin has not been set.
If convicted, Harper faces a maximum penalty of 10 years in federal prison.
The charge against Harper is the result of an investigation by the Sun Prairie Police Department, the Federal Bureau of Investigation, and the FBI’s Money Laundering, Forfeiture and Bank Fraud Unit. Assistant U.S. Attorney Chadwick Elgersma is handling the prosecution.
You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Cambria County Man Pleads Guilty to Child Sexual Exploitation ChargeRead the Press Release
JOHNSTOWN, Pa. – A resident of Cambria County, Pennsylvania pleaded guilty today in federal court to a charge of production of material depicting the sexual exploitation of a minor, United States Attorney Scott W. Brady announced today.
Steven L. Brock, 32, of Cresson, Pa., pleaded guilty to one count before Senior U.S. District Judge Kim R. Gibson.
"The men and women of federal, state and local law enforcement work tirelessly to protect our children from predators and pedophiles," stated U.S. Attorney Brady. "Today, one such predator who produced child pornography was brought to justice, and will spend decades in federal prison for his crimes. I want to thank Cambria County District Attorney Greg Neugebauer for his significant assistance in this successful prosecution."
"Thanks to a cooperative effort between local, state, and federal authorities, a dangerous predator has been brought to justice, and our community is safer," said Cambria County District Attorney Greg Neugebauer. "The facts of this case are deeply disturbing, and the outcome demonstrates that there is zero tolerance when children are exploited. Thank you to the United States Attorney’s office for their work in this matter, and I look forward to continuing a partnership which ensures the highest possible levels of justice for victims and their families."
In connection with the guilty plea, the court was advised that on or about May 1, 2016, to on or about July 31, 2018, Brock produced images of a minor female (Minor A) engaged in sexually explicit conduct using materials that were shipped or transported in interstate or foreign commerce. The case began in December 2018 when the victim’s mother contacted Pennsylvania State Police and reported her daughter, Minor A, disclosed that she had been sexually assaulted. Following a forensic interview with Minor A, PSP troopers obtained a search warrant and seized several electronic devices from Brock’s residence. PSP troopers and, subsequently, agents from the Department of Homeland Security Investigations conducted a forensic examination of the devices and identified 16 images that depict Minor A engaged in "sexually explicit conduct." Several images of Minor A found on Brock’s devices matched those described by Minor A during her forensic interview.
Judge Gibson set sentencing for May 26, 2021 at 10 a.m. The law provides for a mandatory minimum of 15 years’ imprisonment and a statutory maximum of 30 years’ imprisonment, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court ordered the defendant remain detained.
Assistant United States Attorney Arnold P. Bernard, Jr., is prosecuting this case on behalf of the government.
The U.S. Immigration, Customs & Enforcement (ICE)/Homeland Security Investigations (HSI) and the Pennsylvania State Police conducted the investigation leading to the indictment in this case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. 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 better 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.
Ashley Chapman Hoff is Sworn in as U.S. Attorney for the Western District of TexasRead the Press Release
Ashley Chapman Hoff is officially the United States Attorney for the Western District of Texas. On January 26, 2021, the U.S. District Court for the Western District of Texas appointed Hoff as U.S. Attorney effective yesterday. Pursuant to the appointment order, Hoff will serve as U.S. Attorney until a successor is appointed and sworn into office. U.S. District Judge Robert Pitman administered the oath of office to Hoff at the federal courthouse in Austin.
“It is truly the honor of a lifetime to serve as the United States Attorney for the Western District of Texas, and I am grateful to the Court for the appointment. I acknowledge and embrace the immense responsibility of this position,” said U.S. Attorney Hoff. “I am privileged to work alongside the incredibly talented and dedicated women and men of this office, who give their all every day to protect the public, defend the Constitution, and represent the United States of America.”
As U.S. Attorney, Hoff is the chief federal law enforcement officer in the Western District of Texas. She is responsible for prosecuting violations of federal law and representing the federal government in civil litigation where the United States is a party. The Western District of Texas includes 68 counties spanning about 93,000 square miles. The U.S. Attorney’s Office for the Western District of Texas employs more than 300 people and has staffed offices in Austin, Alpine, Del Rio, El Paso, Midland, Waco, and San Antonio.
Hoff has spent 26 years as a public servant and prosecutor, handling criminal cases in both state and federal court. She has been with the U.S. Attorney’s Office for the Western District of Texas for more than 17 years. Since 2018, she has served as the First Assistant U.S. Attorney. In that role, she was responsible for the supervision of over 150 Assistant U.S. Attorneys and all aspects of the district’s criminal and civil practice. Prior to being First Assistant U.S. Attorney, Hoff was the Chief of the Austin Division from 2012 to 2018. Before becoming part of the District’s leadership, Hoff served as an Assistant U.S. Attorney in the Austin Division for more than eight years, where she prosecuted a wide variety of federal offenses, including violent crime, drug trafficking, firearms violations, identity theft, health care fraud, and complex white collar crimes, among others.
Before arriving in the Western District of Texas, Hoff was an Assistant U.S. Attorney in the Southern District of Texas, where she was responsible for handling national security investigations as part of a counterterrorism unit created after the events of September 11, 2001. She began her federal prosecution experience in 2000 in the Houston Division of the Southern District of Texas as a Special Assistant U.S. Attorney for the Texas EXILE violent crime reduction initiative in which she prosecuted federal firearm offenses as one of eight specially-designated prosecutors in the State of Texas. Texas EXILE was one of the models for the federal Project Safe Neighborhoods program, which remains an important federal violent crime reduction initiative nationwide.
Hoff began her legal career as an Assistant District Attorney in the Harris County District Attorney’s Office in Houston, where she served as a state trial prosecutor from 1995-2000, handling misdemeanor, juvenile, and felony matters.
Hoff, a native Texan who was born and raised in Sherman, graduated from Texas Christian University in 1991 with a bachelor’s degree, majoring in Secondary Education with an emphasis in Government and Spanish. She received her law degree from Baylor University in 1994.
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Alleged White Nationalist Charged with Gun CrimeRead the Press Release
An alleged white nationalist apparently intent on killing members of the Jewish faith has been charged with a federal firearm offense, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Christian Michael Mackey, 20, was charged via criminal complaint with unlawful sale of a firearm. FBI agents arrested him at a parking lot near his home in Grand Prairie Friday evening. He made his initial appearance in federal court before U.S. Magistrate Judge Irma Carrillo Ramirez Monday. A detention hearing has been set for 1 p.m. Wednesday.
“The Department of Justice is committed to enforcing our nation’s gun laws, which are designed to keep firearms out of the hands of dangerous individuals. This defendant’s indiscriminate sale of an AM-15 to a convicted felon could have put lives at risk, had the buyer not turned the gun over to the FBI,” said Acting U.S. Attorney Prerak Shah. “Although adherence to a repugnant ideology is not a crime in and of itself, unlawful sale is – and we are determined to hold Mr. Mackey accountable.”
“The FBI’s investigative focus is on criminal activity, regardless of group affiliation,” said FBI Dallas Special Agent in Charge Matthew J. DeSarno, “Mr. Mackey’s disregard for the law as he is alleged to have knowingly sold a firearm to a felon could have put lives at risk. We are proud to work with our law enforcement partners to provide protection for our communities.”
According to the complaint, Mr. Mackey regularly posted in online chats organized by the Iron Youth, a Neo-Nazi white nationalist group dedicated to national socialism, militancy, and political terror. The group espouses “siege” ideology – using a series of anti-government terrorist attacks to instigate a race war.
On Instagram, Mr. Mackey said he liked “control and killing,” called himself a “radical jew slayer,” and vowed he would “die attacking the sustem [sic].” He urged fellow group members to kill Jews and African Americans.
At a meeting with an undercover FBI agent in December, Mr. Mackey allegedly expressed interest in selling his rifle in order to purchase another firearm, and stated that another Iron Youth member had recommended a ghost-gun, a homemade pistol without a serial number. He later changed his mind, telling the agent he would prefer to purchase a traditional rifle.
At a subsequent meeting, the undercover agent offered to facilitate the sale of Mr. Mackey’s gun to another individual, who the undercover agent warned was a felon. Mr. Mackey allegedly told the agent he “could care less” who bought his gun.
On Jan. 29, Mr. Mackey sold his AM-15 to a paid FBI source with multiple felony convictions.
At the undercover agent’s direction, the pair met at a gas station in Grand Prairie, then drove to an adjacent parking lot, where the source purchased the weapon for $800. Mr. Mackey asked if the source was “based” (a term used to indicate an embrace of white supremacist ideology) then indicated that he’d heard the source was a felon, but didn’t care.
Immediately following the sale, the AM-15 was taken into FBI custody.
A criminal complaint is merely an allegation of wrongdoing, not evidence. Like all defendants, Mr. Mackey is presumed innocent until proven guilty in a court of law.
If convicted, he faces up to 10 years in federal prison. If convicted, as a felon, he would be permanently barred from possessing a firearm.
The Federal Bureau of Investigation – Dallas’s Joint Terrorism Task Force conducted the investigation. Assistant U.S. Attorneys Nicole Dana and Nicole Hammond are prosecuting the case.
7 February 2021
Readout of Acting Attorney General Monty Wilkinson, FBI Director Christopher Wray and Assistant to the President for Homeland Security Dr. Elizabeth Sherwood-Randall from the Funeral of FBI Special Agent Daniel AlfinRead the Press Release
Acting United States Attorney General Monty Wilkinson, FBI Director Christopher Wray and President Joe Biden’s Homeland Security Advisor Dr. Elizabeth Sherwood-Randall represented the United States Government’s official delegation today at the funeral service for fallen FBI Special Agent Daniel Alfin in Fort Lauderdale, Florida.
Special Agent Alfin was killed in the line of duty along with FBI Special Laura Schwartzenberger on Tuesday, while executing a search warrant investigating violent crimes against children in Sunrise, Florida. Four other FBI Special Agents were injured during the incident. The service was held at the Hard Rock Stadium in Fort Lauderdale and was attended by hundreds of law enforcement officials from throughout the country.
“During his 12 years of service as an FBI Special Agent, Dan Alfin brought to the job passion and determination in all that he did,” said Acting Attorney General Monty Wilkinson. “It takes a person like Dan with highly specialized skills to investigate crimes involving violence against children day after day. Countless children around the world are safer today because of Dan’s work and many child predators are behind bars where they can do no further harm. Our DOJ family and the nation mourn the heartbreaking loss of one of the best the FBI had in its ranks, and our thoughts and sympathy are with Dan’s family, friends and fellow special agents from the Miami Field Office.”
“FBI Special Agent Daniel Alfin, like Special Agent Laura Schwartzenberger, was an American hero who dedicated his life to keeping our country, especially our children, safe," said Dr. Sherwood-Randall Assistant to the President for Homeland Security. "He worked tirelessly to protect the most vulnerable among us from unimaginably heinous acts. President Biden knows the toll of such sudden loss and is keeping the Alfin family in his heart. It was a privilege to join the moving services this weekend alongside Acting Attorney General Wilkinson and FBI Director Wray. I want to express my deep thanks to everyone who participated in honoring the two noble special agents slain in the line of duty on February 2.”
Director Wray’s eulogy of Special Agent Alfin can be found at https://www.fbi.gov/news/speeches
The delegation attended funeral services for FBI Special Agent Schwartzenberger in Fort Lauderdale yesterday.
6 February 2021
Readout of Acting Attorney General Monty Wilkinson, FBI Director Christopher Wray and Assistant to the President for Homeland Security Dr. Elizabeth Sherwood-Randall from the Funeral of FBI Special Agent Laura SchwartzenbergerRead the Press Release
Acting United States Attorney General Monty Wilkinson, FBI Director Christopher Wray and President Joe Biden’s Homeland Security Advisor Dr. Elizabeth Sherwood-Randall led a United States Government delegation to Fort Lauderdale, Florida today that attended the funeral service for fallen FBI Special Agent Laura Schwartzenberger.
Special Agent Schwartzenberger was killed in the line of duty along with FBI Special Agent Daniel Alfin on Tuesday, while executing a search warrant investigating violent crimes against children in Sunrise, Florida. Four other FBI Special Agents were wounded during the incident. The service was held at the Hard Rock Stadium in Fort Lauderdale and was attended by hundreds of law enforcement officials from throughout the country.
"During her 15 years as an FBI Special Agent, Laura Schwartzenberger was selfless, tireless, brave and committed to protecting some of society's most vulnerable: its children," said Acting Attorney General Wilkinson. "Laura pursued justice and she did so with dedication and integrity. We honor Laura's memory for all she gave to her country, to her colleagues and to the many others whose lives she touched and changed profoundly for the better. The United States Department of Justice family and a grateful nation mourn this devastating loss alongside Laura's husband Jason, and two sons, Gavin and Damon."
“FBI Special Agent Laura Schwartzenberger was an American hero who dedicated her life to keeping our country, our citizens and especially our children safe,” said Dr Sherwood-Randall Assistant to the President for Homeland Security. “Her courage is an inspiration for all of us and I know President Biden is praying for Laura and her loved ones as they grieve this profound loss.”
Director Wray’s eulogy of Special Agent Schwartzenberger can be found at https://www.fbi.gov/news/speeches/remembering-special-agent-laura-schwartzenberger-020621
The official delegation will attend funeral services for FBI Special Agent Daniel Alfin Hard Rock Stadium tomorrow afternoon at 2:00PM ET. Due to COVID-19, the funeral service is restricted to invited guests only but the public may view the service on a live webcast at Service - Hard Rock Stadium.
Maine Man Charged in Federal Court for Assaulting and Impeding Law Enforcement Officers during U.S. Capitol BreachRead the Press Release
PORTLAND, Maine: A Maine man appeared yesterday in the U.S. District Court for the District of Maine on charges stemming from his assault on local law enforcement officers, as well as other crimes, during the riots at the U.S. Capitol on January 6 that disrupted a Joint Session of the U.S. Congress in the process of affirming Presidential election results.
Michael R. Sherwin, the Acting United States Attorney for the District of Columbia, and Halsey B. Frank, United States Attorney for the District of Maine, announced the charges.
Kyle Fitzsimons, 37, of Lebanon, Maine, was charged by criminal complaint with one count of assault on a federal officer, in violation of Title 18, United States Code, Section 111(a); one count of certain acts during a civil disorder, in violation of Title 18, United States Code, Section 231(a); one count of unlawful entry in restricted building or on grounds, in violation of Title 18, United States Code, Section 1752(a); and one count of violent entry and disorderly conduct on Capitol grounds, in violation of Title 40, United States Code, Section 5104(e)(2).
Fitzsimons made his initial appearance in the District of Maine on Friday afternoon where United States Magistrate Judge John H. Rich III ordered Fitzsimons held preliminarily pending a detention hearing scheduled for February 11.
The affidavit in support of the criminal complaint against Fitzsimons alleges that on January 6, he pushed against and grabbed officers who were holding a police line in an arched entranceway on the lower west terrace of the U.S. Capitol building. Video surveillance footage captures Fitzsimons at the terrace archway, in the front of a group of rioters, charging the police line and swinging at Metropolitan Police Department officers.
“This case demonstrates that all levels of the federal government, in all areas of the country, are working together to hold responsible those who laid siege to the Capitol on January 6th,” said U.S. Attorney Frank. “Here in Maine, we are playing our part to bring to justice anyone who allegedly attempted to thwart the will of the American people as expressed in the 2020 election.”
This case is being prosecuted by the U.S. Attorney’s Office for the District of Columbia and the Counterterrorism Section of the DOJ’s National Security Division, with assistance from the U.S. Attorney’s Office for the District of Maine. The case is being investigated by the FBI’s Boston and Washington Field Offices, along with the Metropolitan Police Department and the United States Capitol Police.
A criminal complaint is a formal accusation of criminal conduct for purposes of establishing probable cause, not evidence of guilt. A defendant is presumed innocent unless proven guilty.
The ATF and FBI continue to urge the public to report suspected use of explosive devices, or violent, destructive acts associated with the recent unrest. Anyone with information can call 1-888-ATF-TIPS (1-888-283-8477), email [email protected] or submit information anonymously via ReportIt.com.
The FBI is looking for individuals who may have incited or promoted violence of any kind. Anyone with digital material or tips can call 1-800-CALL-FBI (800-225-5324) or submit images or videos at fbi.gov/USCapitol.
5 February 2021
Wilmington Gang Member Receives 54 Months in Federal PrisonRead the Press Release
WILMINGTON, N.C. – Carlton McIntyre, 26, of New Hanover County, was sentenced today to 54 months imprisonment for Conspiracy to Possess With the Intent to Distribute and Distribute a Quantity of Heroin and Possess With the Intent to Distribute a Quantity of Heroin.
The evidence presented in court and other information revealed that on July 10, 2019, the New Hanover Sheriff’s Office conducted a controlled purchase of heroin from McIntyre around the 300 block of Wilson Street in Wilmington, North Carolina. Detectives conducted a traffic stop on the car which was delivering the narcotics. Detectives found a loaded 9mm handgun between McIntyre (the driver) and a passenger on the passenger floorboard in a backpack. The backpack also contained more than 1,400 bags of either heroin or fentanyl. According to law enforcement, McIntyre is a member of a violent gang and has prior felony convictions.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after the sentencing before U.S. District Judge James C. Dever III. The Federal Bureau of Investigations and the New Hanover County Sheriff’s Office investigated the case. Assistant U.S. Attorney Timothy Severo prosecuted the case.
A copy of this press release is located on our website. 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-00123-D-1.
White City Man Sentenced for Poaching in Crater Lake National ParkRead the Press Release
EUGENE, Ore.—On February 4, 2021, a White City, Oregon man was sentenced for violating the Lacey Act by illegally poaching a trophy bull elk in Crater Lake National Park, announced U.S. Attorney Billy J. Williams.
Adrian Duane Wood, 44, was sentenced to five years’ federal probation to include a six-month stay at a residential reentry center. The court also ordered that Wood be banned for life from Crater Lake National Park, be restricted from hunting for the duration of his probation, and pay $42,500 in restitution to the National Park Service.
“Our nation’s environmental laws are in place to protect vulnerable wildlife populations and ensure that future generations will have the opportunity to enjoy these animals as we do today. Mr. Wood preyed on elk and deer who were unaccustomed to being hunted and thus uniquely vulnerable to poaching,” said U.S. Attorney Williams. “Beyond the depravity of his crimes, Mr. Wood further engaged his minor son in his illegal acts and bragged about his criminal behavior to others. Thanks to the hard work of federal and state investigators, justice has been served and Mr. Wood has been permanently banned from Crater Lake.”
“Our public lands are special places for both people and wildlife,” said James Ashburner, Special Agent in Charge, U.S. Fish and Wildlife Service. “The defendant's blatant disregard for the law caused great harm to the elk herd in the park. This joint case demonstrates the resolve of National Park Service, Oregon State Police, and the U.S. Fish and Wildlife Service in protecting our nation’s natural resources. A special thank you goes out to the Service's National Wildlife Forensics Lab for their incredible work on this case, as well as to the U.S. Attorney's Office for the District of Oregon for placing an emphasis on environmental crimes that impact the natural world we all enjoy.”
According to court documents, in July 2014, the National Park Service (NPS), U.S. Fish and Wildlife Service (FWS), and Oregon State Police (OSP) began a multi-year investigation into Wood’s illegal hunting activities based on reports that he was poaching wildlife in Crater Lake National Park. At least two sources stated that Wood had killed several deer and elk on the west side of the park after baiting them into meadow with rock salt. OSP received further reports that Wood was illegally poaching wildlife at night.
On August 31, 2014, an OSP trooper observed Wood and his son leaving the national park after dark. When the trooper approached him, Wood hurried toward his vehicle and acted as if he were trying to hide something. After speaking with Wood, the trooper located a loaded AR-15 semi-automatic rifle outfitted with night optics beneath his truck. Wood initially claimed the rifle was for bear hunting, but after the trooper pointed out that the rifle was not lawfully equipped to hunt any wildlife, Wood then claimed it was for personal protection. The trooper cited Wood for being a felon in possession of a firearm and seized the rifle. Wood was convicted in state court of the charge and placed on probation.
Throughout 2015, NPS and OSP continued receiving reports of Wood’s illegal poaching. NPS rangers found carcasses and piles of rock salt in an area of the park frequented by Wood. In October 2015, an NPS ranger found an elk skull, jaw, and vertebrae in the national park. The remains were determined to be near a custom track log found on Wood’s GPS unit. Investigators later learned Wood entered and won second or third place in a Sportsman’s Warehouse Big Bull elk hunting contest.
In August and September 2016, Wood engaged in several incriminating text conversations. On August 28, 2016, Wood texted his wife about his attempt to locate a bleeding elk he had shot. A photo later discovered on Wood’s phone, taken on August 28, appeared to depict a trail of blood. Investigators also found a custom waypoint named “Hit” on Wood’s GPS device created the same morning as the date-stamped photo. The “Hit” location was within the boundaries of the national park.
On September 7, 2016, Wood texted another individual, bragging about his hunting activities: “I’ve been in the elk since opening season and passed up 5 last Sunday because I have a problem shooting a small 5 point when there is a monster 50 yards away screaming at me…I’m pretty good at finding elk around here, I’ve killed 24 and get one every year.”
On September 22, 2016, OSP contacted Wood in his vehicle as he was pulling a horse trailer near the boundary of the national park. Although Wood stated he had not been hunting in 2016, the trooper observed blood on Wood’s hands and clothing. Wood then gave the trooper a partially validated Oregon Department of Fish and Wildlife (ODFW) archery elk tag, which also had blood on it. The next day, an OSP trooper returned to the area where they had contacted Wood, walked a short distance into the national park, and discovered a freshly killed and partially butchered elk. The carcass was in the same meadow wherein Wood was previously reported to have hunted elk. The trooper noted that the elk’s head was sawed off and some meat was removed. Shortly thereafter, Wood texted photos of himself posing with the elk. OSP obtained the photos and matched them to the carcass.
On October 4, 2016, FWS agents executed a federal search warrant on Wood’s residence. They located multiple firearms, assorted ammunition, and several wildlife specimens. FWS special agents later searched Wood’s GPS units and confirmed he was in the national park when he killed the bull elk on September 22 and had marked the location of the kill. They further confirmed that the majority of his GPS hunting waypoints and track logs between 2011 and 2016 were within the boundaries of the national park.
Forensic scientists at the FWS National Fish and Wildlife Forensics Lab, conducted forensic examinations and genetic analyses of the wildlife specimens taken from Wood’s residence and compared them to animal remains recovered in the national park. DNA analyses revealed that Wood possessed parts of at least 13 elk, 12 deer, and one black bear, and the blood found on Wood’s ODFW archery tag matched the DNA of the elk poached on September 22. A forensic pathologist further determined the elk killed on September 22 had been killed by a gunshot. In total, investigators definitively linked six seized specimens to elk or deer poached by Wood in the national park in 2015 and 2016.
On May 1, 2019, Wood was indicted by a federal grand jury in Medford, Oregon for violating the Lacey Act by unlawfully taking and transporting a trophy bull elk from Crater Lake National Park and illegally possessing ammunition as a convicted felon. On August 17, 2020, Wood pleaded guilty to the Lacey Act charge and agreed to pay restitution to NPS for the wildlife illegally taken from the national park.
This case was investigated by the U.S. Fish and Wildlife Service Office of Law Enforcement, National Park Service, and the Oregon State Police Fish and Wildlife Division. It was prosecuted by Adam E. Delph, Assistant U.S. Attorney for the District of Oregon.
The U.S. Fish and Wildlife Service is responsible for protecting America’s wildlife from poaching, illegal commercialization, and other kinds of wildlife crime. If you have information related to a wildlife crime, please call 1-844-FWS-TIPS (1-844-397-8477) or email [email protected].
Watertown Man Charged with Possession of Firearm by Prohibited PersonRead the Press Release
United States Attorney Ron Parsons announced that a Watertown, South Dakota, man has been indicted by a federal grand jury for Possession of a Firearm by a Prohibited Person.
Michael Ray Mitchell, age 42, was indicted on January 12, 2021. He appeared before U.S. Magistrate Judge Veronica L. Duffy on February 3, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about December 18, 2020, Mitchell, who had previously been convicted of a crime punishable by imprisonment for a term exceeding one year, and being an unlawful user of a controlled substance, possessed a Beemiller Incorporated, Hi-Point brand name, Model C9, 9mm Luger caliber, semi-automatic pistol. Said firearm was shipped and transported in interstate commerce.
The charge is merely an accusation and Mitchell is presumed innocent until and unless proven guilty.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case is also part of Project Guardian, the Department of Justice's signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department's past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms & Explosives, Minnehaha County Sheriff’s Office, Codington County Sheriff’s Office, U.S. Marshals Service, and the Sioux Falls Police Department. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Mitchell was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Vallejo Man Sentenced to over 10 Years in Prison for Methamphetamine OffenseRead the Press Release
SACRAMENTO, Calif. — Joseph McCready Tomson, 30, of Vallejo, was sentenced Thursday to 10 years and three months in prison for possession with intent to distribute methamphetamine, U.S. Attorney McGregor W. Scott announced.
Tomson pleaded guilty on April 30, 2020. According to court documents, on Jan. 24, 2020, Tomson was stopped driving back from Mexico and found to be in possession of hundreds of pills hidden near the wheel well of his vehicle. On March 17, 2020, agents executed a search warrant at Tomson’s residence and found two pistols in the living room next to a large amount of tools and gun supply parts, including a handgun and an AR-15-style rifle. Agents also found two additional handguns in a desk next to bottles containing Xanax and Oxycodone pills and a bag containing 229 grams 100% pure methamphetamine.
This case was the product of investigation by the Drug Enforcement Administration. Assistant U.S. Attorney Cameron L. Desmond prosecuted the case.
US Attorney's Office Statement on CDC Moratorium on EvictionsRead the Press Release
The United States Attorney’s Office today issued the following statement regarding DOJ enforcement of the eviction moratorium order issued by the Centers for Disease Control:
In September of 2020, the CDC issued a federal order imposing a Temporary Halt in Residential Evictions to Prevent the Further Spread of COVID-19. That order, which has since been extended through March 31, 2021, prohibits landlords from evicting tenants for non-payment of rent during the period between September 4, 2020 and the end of March. In Rhode Island, the State District Court has issued an order implementing this policy; that order has also extended relief through March 31, 2021.
Under the CDC and state court orders, tenants who meet income eligibility requirements (generally, those who earn less than $99,000 per year, or $198,000 if filing jointly) and who are unable to pay their full rent due to substantial loss of household income, loss of compensable hours of work or wages, a lay-off, or extraordinary out-of-pocket medical expenses can obtain protection from eviction by providing a sworn declaration regarding their situation to their landlord (available at https://www.cdc.gov/coronavirus/2019-ncov/downloads/declaration-form.pdf). Once this declaration is provided, a landlord is prohibited from evicting the tenant while the moratorium remains in effect, and is subject to substantial penalties, including fines of up to $250,000 and up to a year in jail. The order does not affect the obligation of tenants to pay rent, however, nor does it bar the collection of fees, penalties, and interest.
Given the gravity of the current public health crisis, tenants covered by the CDC order should consider taking appropriate steps to obtain legal protection from eviction and report violations of the order to this office by email: [email protected]; Fax: (401) 709-5001, or phone (401) 709-5010. We likewise encourage landlords to consider alternatives to legal action while the CDC moratorium remains in effect.
Further information on the CDC moratorium is available here:
https://www.cdc.gov/coronavirus/2019-ncov/covid-eviction-declaration.html
The State of Rhode Island District Court orders are available here:
https://www.courts.ri.gov/Courts/districtcourt/PDF/20-06.pdf
https://www.courts.ri.gov/Courts/districtcourt/PDF/20-07amended1-31-21.pdf
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Two Men Sentenced to Federal Prison for Drug Trafficking Conspiracy in KodiakRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced Carlito Marcilino Velasco, 61 of Juneau and Don Irenio Castro Santiago II, 37, a citizen of the Philippines residing in Anchorage, have been sentenced by Chief U.S. District Court Judge Timothy M. Burgess to federal prison for their roles in a drug trafficking conspiracy in Kodiak.
According to court documents, Velasco and Santiago II allegedly devised a plan involving themselves and others to possess and distribute methamphetamine in Kodiak. During the drug conspiracy, Velasco travelled to California to purchase methamphetamine from sources in California for distribution in Alaska. Velasco then packaged and mailed the methamphetamine via United States Postal Service (USPS) to Juneau, where a co-conspirator repackaged it and then mailed it via USPS to Santiago II in Kodiak. Santiago II received the parcel, distributed the methamphetamine, and collected drug proceeds from the sale of the methamphetamine in Kodiak. Santiago II subsequently mailed the drug proceeds back to Juneau in a parcel, and the proceeds were later used by Velasco to purchase more methamphetamine for subsequent distributions.
Additional Court documents detail that on or about June 4, 2019, U.S. Postal Inspectors identified, intercepted, and seized a suspicious package mailed from Juneau to Kodiak. Further inspection of the package revealed approximately 233.45 grams of methamphetamine hidden inside a coffee bag. Law Enforcement Officers removed the original narcotics and installed two tracking devices in the package.
On June 6, the parcel was delivered to a residential parcel locker in Kodiak, where Velasco and Santiago II retrieved the package, and left in a vehicle. A short time later, Velasco and Santiago II opened the package, and upon realizing there was a tracking device, hid the parcel under a nearby pile of lumber. Law Enforcement Officers of the South East Alaska Cities Against Drugs (SEACAD) Taskforce apprehended both men. They have remained in custody since their arrest. Velasco and Santiago II purportedly successfully imported four other packages into Kodiak in the same manner, introducing over 680 grams of methamphetamine into the small community of Kodiak.
Today, Velasco was sentenced to 120 months in prison, followed by 5 years of supervised release, after previously pleading guilty to drug trafficking conspiracy in January 2020. Velasco has a lengthy criminal history, with prior felony convictions for drug trafficking, murder, and domestic violence. In imposing the sentence, Judge Burgess noted the serious of the offense, and the need to protect the public given Velasco’s violent criminal history.
On December 10, 2020, Santiago II was sentenced to 23 months in federal prison, followed by 2 years of supervised release, after previously pleading guilty to drug trafficking conspiracy in February 2020. Santiago could face deportation upon the completion of his sentence.
The U.S. Postal Inspection Service (USPIS), Federal Bureau of Investigation (FBI), Drug Enforcement Administration (DEA), U.S. Coast Guard Investigative Service (USCGIS), Alaska State Troopers (AST), the Juneau Police Department (JPD), and Kodiak Police Department (KPD), in support of Alaska’s High Intensity Drug Trafficking Area (HIDTA) Program, and the South East Alaska Cities Against Drugs (SEACAD) Taskforce, contributed to the investigation leading to the successful prosecution in this case. Established in 2018, the Alaska HIDTA Program enhances and coordinates efforts among local, state, and federal law enforcement agencies, providing equipment, technology, and additional resources to combat drug trafficking and its harmful consequences in critical regions of Alaska. This case was prosecuted by Assistant U.S. Attorney Jack S. Schmidt.
This case is also part of the U.S. Attorney’s Office, District of Alaska Rural Alaska Anti-Violence Enforcement Network (RAAVEN) Initiative’s ongoing efforts to increase engagement, coordination, and action on public safety in Alaska Native communities.
Two Men Sentenced for Their Role in a Transnational Heroin Trafficking OperationRead the Press Release
Two men have been sentenced in the last week for their role in trafficking heroin in the Northern District of Oklahoma, announced U.S. Attorney Trent Shores.
Osiel Serafin Calderon, 25, and Rudolph Gorniak, 29, were sentenced by U.S. District Judge Claire V. Eagan. Calderon received 30 months in prison followed by three years of supervised release. Gorniak received 41 months in prison followed by three years of supervised release.
“A transnational heroin trafficking organization has been dismantled as a result of Operation Smack Dragon. I credit the dedicated efforts of Senior Litigation Counsel Joel-lyn McCormick who leads our Organized Crime Drug Enforcement Task Force,” said U.S. Attorney Trent Shores. “These drug trafficking criminal enterprises are some of the most destructive forces in the world. Their criminal cell heads spread violence, drugs, and addiction from community to community. I am grateful to all of our law enforcement partners who have stayed the course in tracking down these traffickers, arresting them, and disrupting their criminal operations.”
This transnational criminal organization’s hierarchy had clearly defined roles, as leaders from Mexico supplied heroin to the Tulsa “cell heads.” These “cell heads” were originally from Mexico but lived in Tulsa. Stille Giovanni Gutierrez Vivanco, allegedly directed, from Mexico, the overall drug trafficking operations in Tulsa by delegating responsibilities for the import and distribution of the heroin and for the movement of the proceeds from heroin sales. The criminal organization smuggled heroin into the United States and transported the drug to storage locations in Tulsa where they prepared it for distribution throughout the United States. After preparing the heroin, the coconspirators would repackage it for distribution to mid-level distributers, who would then redistribute it to street-level dealers until it eventually found its way into the hands of customers.
Osiel Serafin Calderon pleaded guilty to assisting in delivering heroin to defendant Jose Garcia by transporting the heroin from Southern California to northeastern Oklahoma from January 2019 through June 2019. He also assisted in collecting drug proceeds from Garcia. Garcia supplied heroin to numerous individuals for re-distribution, collected payment from dealers and returned the funds to the Mexican source of supply.
Rudolph Gorniak pleaded guilty to conspiring with others to distribute heroin from January 2019 through June 2019. Over the course of several weeks, Gorniak purchased quantities of heroin from defendants Alphonso Caldwell and Devin Hartzell. He purchased heroin, redistributed it to third parties, and relied on the payment from customers to purchase additional heroin.
The two were among more than 30 individuals indicted in 2019 for drug conspiracy and other crimes related to the cartel’s heroin operations. The prosecution resulted from Operation Smack Dragon, an Organized Crime Drug Enforcement Task Force investigation.
The Drug Enforcement Administration and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations led the investigation in partnership with the U.S. Department of Treasury, Internal Revenue Service- Criminal Investigation; the Oklahoma State Attorney General’s Office; and Tulsa Police Department. Assistant U.S. Attorney Joel-lyn McCormick is prosecuting this case. AUSA McCormick is the Lead Attorney for the Organized Crime Drug Enforcement Task Force Unit for the Northern District of Oklahoma.
Two Drug Offenders Sentenced to Federal PrisonRead the Press Release
RALEIGH, N.C. – Omar Jaquan Carr, 26, from Teachey, North Carolina, was sentenced today to 84 months in prison for conspiracy to possess and possess with the intent to distribute 500 grams or more of cocaine, from January 2019 through February 19, 2020, one count of aiding and abetting in the distribution of a quantity of cocaine, and possession with the intent to distribute a quantity of cocaine and marijuana. Deon Harold Boney, 27, from Rose Hill, North Carolina was sentenced to a total of 66 months in prison on one count of conspiracy to possess and possess with the intent to distribute 500 grams or more of cocaine, from January 2019 through February 19, 2020 and six counts of aiding and abetting in the distribution of a quantity of cocaine.
According to court documents, Boney and Carr aided and abetted each other in the sale of cocaine on at least six occasions. Records show that on January 23, 2019, the Duplin County Sheriff’s Office used a confidential informant to purchase cocaine from Boney and Carr who was Boney’s supplier. The confidential informant traveled to Boney’s residence in Rose Hill to meet Boney and waited for Carr to arrive and deliver the cocaine. Duplin County Sheriff’s investigators conducted similar purchases on August 20, 2019, September 17, 2019, October 28, 2019, December 11, 2019, and February 12, 2020. In each instance, the confidential informant met Boney at his residence in Rose Hill and waited on Carr to deliver the cocaine. In total, law enforcement purchased almost seven hundred (700) grams of cocaine from Boney and Carr.
Law enforcement executed a search warrant at Carr’s residence in Teachey on February 19, 2020. During the search, law enforcement found approximately $285,000 in currency. Of this amount, $20,620 had matching serial numbers from the currency used by law enforcement in the controlled purchases over the course of the prior year. A total of $280,339 will be forfeited. In addition, law enforcement recovered over 3,000 grams of marijuana and over 200 grams of cocaine. A loaded .38 caliber revolver in a filing cabinet that contained marijuana and a 9mm handgun in a safe that contained marked currency were also recovered. Carr has prior felony convictions.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Duplin County Sheriff’s Office and Federal Bureau of Investigation (FBI) investigated the case, and Special Assistant U.S. Attorney Murphy Averitt prosecuted the case.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation and 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.
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. 7:20-cr-00090-D.
Two Anchorage Men Sentenced for Their Roles in 2019-Armed Robbery of Wells Fargo BankRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that two Anchorage men were sentenced by U.S. District Court Judge Ralph R. Beistline for their roles in the December 4, 2019 armed robbery of an Anchorage Wells Fargo Bank branch on Debarr Rd.
Totoe Opeti Sakaria, Jr., 24, and co-defendant, Brandon David McDonald, 24, both of Anchorage, were indicted by the grand jury in December 2019 for their roles in the armed robbery and have been detained without bail since December 10, 2019. Sakaria pleaded guilty to bank robbery and use of a firearm in furtherance of a crime of violence in October 2020 and was sentenced yesterday to 126 months in prison. McDonald pleaded guilty to accessory after the fact to bank robbery in October 2020 and was sentenced today to 28 months in prison.
According to documents filed in the case, on Dec. 4, 2019, two masked men entered the Wells Fargo bank on Debarr Road during business hours. One of them, later identified as Sakaria, pointed a shotgun at patrons and employees while demanding that everyone get on the ground. The other man, who has not been identified, approached a teller and demanded money, obtaining $2,624. As Sakaria and the other man left the bank, Sakaria struck a security guard in the head with the buttstock of his shotgun, causing serious injury to the guard. Sakaria and the unidentified coconspirator subsequently met with McDonald, who was aware the two had committed the bank robbery and agreed to hide the shotgun and clothing used in its commission. On December 6, 2019, FBI special agents recovered the shotgun from the crawlspace of McDonald’s residence.
Sakaria and McDonald were identified as suspects after still photos from surveillance footage were released to the public via Nixle alerts and the media. The coconspirator remains at large.
If the public has any information regarding the coconspirator who robbed the bank with Sakaria, please contact Anchorage FBI at (907) 276-4441.
In sentencing Sakaria to a term of 126 months, followed by 3 years of supervised release, the court noted the terrifying nature of the crime for the bank patrons and employees, Sakaria’ s dangerous use of a shotgun, and the rapid succession of serious crimes Sakaria committed in 2019, including a vehicle theft conviction from the State of Alaska. The Court also ordered Sakaria to pay $7,652 in restitution for the loss to Wells Fargo Bank and the cost of medical care and worker’s compensation insurance for the injured security guard.
In sentencing McDonald to a term of 28 months followed by 3 years of supervised release, Judge Beistline emphasized the foolishness of McDonald’s decision to help the robbers. McDonald has pending felony charges from the State of Alaska stemming from a May 2019 armed robbery and a February 2019 failure to stop at the direction of an officer.
The Federal Bureau of Investigation (FBI) and the Anchorage Police Department (APD) conducted the investigation leading to the successful prosecution of this case. The case was prosecuted by Assistant U.S. Attorney Allison O’Leary.
This case is 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.
Teacher charged in federal complaint for transporting minor for sexRead the Press Release
AUGUSTA, GA: A Graniteville, S.C. man has been charged in a federal complaint alleging he transported a minor across state lines for sex.
Jonathan Eugene Grantham, 45, of Graniteville, S.C., appeared today in U.S. District Court before Magistrate Judge Brian K. Epps after his arrest on a federal complaint charging him with Transportation of a Minor with Intent to Engage in Sexual Activity, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. The charge carries a maximum penalty of life in prison. There is no parole in the federal system.
Grantham is employed as a teacher at Ridge Spring-Monetta High School in Ridge Spring, S.C.
As described in court testimony, Grantham is accused of knowingly picking up a minor in Columbia County on or about July 20, 2019, and taking the minor across state lines to engage in prostitution.
Grantham remains in custody pending a detention hearing before Judge Epps.
A criminal complaint is only a charge; defendants are presumed innocent unless and until proven guilty.
The case is being investigated by the FBI, and prosecuted for the United States by Assistant U.S. Attorney and Project Safe Childhood Coordinator Tara M. Lyons
Statement from U.S. Attorney Maria Chapa Lopez on the Deaths of FBI Special Agents Dan Alfin and Laura SchwartzenbergerRead the Press Release
Our deepest condolences to our FBI family and to the family and friends of FBI Special Agents Dan Alfin and Laura Schwartzenberger in the wake of their deaths on February 2, 2021, in Sunrise, Florida. We especially feel the loss here in the Middle District of Florida, as we were fortunate to have worked with SA Alfin during our recent Operation Pacifier cases. SA Alfin and SA Schwartzenberger are heroes. They devoted their lives and careers to protecting our most vulnerable citizens, our children. They worked tirelessly to protect our State, our District, and our communities from these horrible predators. We are grateful for their service and their ultimate sacrifice. We will never forget them, and, to honor them, here in the MDFL USAO, we will continue with our commitment to keep our children safe from those who seek to harm and exploit them.
Southeastern Physical Therapy and Owner to Pay $152,000 to Settle False Claims Allegations for Submitting Claims for Medically Unnecessary Durable Medical Equipment to Veterans AdministrationRead the Press Release
ASHEVILLE, N.C. – U.S. Attorney Andrew Murray announced today that Asheville-based Southeastern Physical Therapy (SEPT) and owner Darren Cady have agreed to resolve allegations that Cady received illegal kickbacks and violated the False Claims Act by submitting claims for reimbursement for certain durable medical equipment to the Veterans Affairs (VA) while participating in the VA “Choice Provider” program.
The Veterans Access, Choice, and Accountability Act of 2014 provided veterans with expanded access to third-party providers outside the VA system. In 2018, the program was replaced by the VA Maintaining Internal Systems and Strengthening Integrated Outside Networks Act of 2018 (“Mission Act”). The Mission Act provided for the same access to third-party providers. Under the 2014 Act and the Mission Act, veterans could use third-party providers like SEPT for certain services. Provider participation in the program was memorialized in contracts with third-party administrators. The contracts required providers to comply with applicable local, State, and federal laws, rules, regulations and institutional and professional standards of care.
The United States alleges that, among other things, SEPT and Cady made materially false, fictitious, and fraudulent statements and representations, or material omissions, regarding the medical necessity of a medical device and received illegal kickbacks from the device manufacturer for prescribing the devices to VA patients. The United States alleges that Cady entered into a contract with the device manufacturer, which paid Cady for prescribing the devices. The United States also alleges that Cady gave a copy of his signature to a medical device salesperson, who used Cady’s signature to complete at least some medical necessity forms for VA patients, which forms accompanied invoices to the United States for payment for the devices. The United States alleges that Cady did not examine or personally treat the VA patients for whom he prescribed the devices, and further alleges that the patients were not instructed on how to safely or effectively use the product.
“Prescribing devices to VA patients that are not medically necessary is dangerous and wastes important resources intended to help our nation’s veterans,” said U.S. Attorney Murray. “My office will vigorously pursue providers and other actors that seek to take advantage of VA benefits through the submission of false claims that promote fraud and abuse in these critical government programs.”
This settlement resolves allegations investigated by the government under the False Claims Act. The settlement is a result of the coordinated effort between the VA Office of Inspector General and the U.S. Attorney’s Office for the Western District of North Carolina.
The claims resolved in this settlement are allegations only and there has been no determination of liability against SEPT, Cady, or any other entity.
Sioux Falls Man Sentenced for Meth TraffickingRead the Press Release
United States Attorney Ron Parsons announced that a Sioux Falls, South Dakota, man convicted of Possession with Intent to Distribute a Controlled Substance was sentenced on February 1, 2021, by U.S. District Judge Karen E. Schreier.
John Thin Elk, age 43, was sentenced to 160 months in federal prison, followed by five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Thin Elk was indicted by a federal grand jury on March 20, 2020. He pled guilty on October 29, 2020.
The conviction stemmed from an incident on or about February 8, 2019, when Thin Elk knowingly and intentionally possessed with intent to distribute 50 grams or more of actual methamphetamine. On that same date, an officer with the Yankton Sioux Tribe was patrolling an area of the reservation when he came upon Thin Elk’s car. The officer approached the vehicle and found Thin Elk and a female passenger passed out. A search of the vehicle located drugs which field-tested positive for methamphetamine, which is a Schedule II controlled substance.
This case was investigated by the Yankton Sioux Law Enforcement and the Federal Bureau of Investigation. Assistant U.S. Attorney Jennifer D. Mammenga prosecuted the case.
Thin Elk was immediately turned over to the custody of the U.S. Marshals Service.
Shrewsbury Woman Pleads Guilty to Perjury Charge in Connection with Tax Fraud InvestigationRead the Press Release
BOSTON – A Shrewsbury woman pleaded guilty today in federal court in Worcester to lying about her role with a Worcester-based employment agency while testifying before a federal grand jury.
Linda Le, 42, pleaded guilty to one count of falsely testifying before a grand jury. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for May 25, 2021. Le was charged in December 2020.
According to the charging documents, in late 2017 and early 2018, Le assisted with the transition of several client companies from one employment agency to UT Services, a Worcester-based employment agency. Thereafter, Le performed various tasks on behalf of UT Services, including reviewing and analyzing client invoices and maintaining a spreadsheet that tracked invoice amounts and profit. Le received cash payments in exchange for her work for UT Services.
In May 2018, Le testified before a federal grand jury and falsely stated under oath that she did not know anyone who was involved with UT Services and did not know anything about a specific client company using temporary workers from UT Services. In March 2019, Le testified again before a federal grand jury and falsely stated under oath that she did not know anything about UT Services and that she did not have any role with UT Services. At the time, investigators were conducting an investigation into fraudulent UT Services tax filings and insurance audits.
In August 2019, Tam Vuong was indicted on fraud and tax charges in connection with his oversight of UT Services and Prime Labor, another Worcester-based employment agency. Vuong is scheduled for trial on Sept. 7, 2021.
The charge of lying to a grand jury provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office; Ramsey E. Covington, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Anthony DiPaolo, Chief of Investigations of the Insurance Fraud Bureau of Massachusetts made the announcement today. Assistant U.S. Attorneys Bill Abely, Chief of Lelling’s Major Crimes Unit, and Ian Stearns, of Lelling's Securities, Financial & Cyber Fraud Unit, are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Serbian Man Extradited to U.S., Charged with $70 Million Fraud in North TexasRead the Press Release
A Serbian man has been extradited from Serbia to the United States to face allegations that he and others duped investors out of more than $70 million, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Serbian authorities arrested Antonije Stojilkovic, 32, pursuant to a U.S. provisional arrest request on July 24, 2020 in Belgrade. Stojilkovic subsequently consented to extradition. On Feb. 4, 2021, the FBI completed the removal of Stojilkovic from Serbia to the Northern District of Texas.
Mr. Stojilkovic and more than a dozen other alleged fraudsters were indicted by a Dallas-based federal grand jury on charges of conspiracy to commit wire fraud and conspiracy to commit money laundering in July 2020. His coconspirators include Kristijan Krstic, Xenia Faye Atilano Krstic, Marko Pavlovic, Uros Selakovic, and Nenad Krstic, all arrested during the Serbian police operation in July. One U.S. based coconspirator, Haojia Miao, was arrested in California in October 2020.
“This $70 million scam spanned several continents, targeting American citizens and foreigners alike,” said Acting U.S. Attorney Prerak Shah. “We are proud to bring Mr. Stojilkovic to Dallas to face justice in an American courtroom. The U.S. Department of Justice will not relent in our fight against cybercrime.”
“Mr. Stojilkovic and his partners are charged with executing a global con that allegedly bilked investors out of millions of dollars,” said Dallas FBI Special Agent in Charge Matthew J. DeSarno. “The FBI is uniquely equipped to work with our offices and law enforcement partners worldwide to investigate and dismantle these elaborate schemes. Whether investing with cash or virtual currency, investors should exercise due diligence and report suspicious activity to the authorities.”
According to the indictment, the defendants allegedly helped create and market more than 20 fraudulent investing platforms, including Options Rider, Bancde Options, Start Options, Dragon Mining, BTC Mining Factor, and Trinity Mining.
From their home bases in China, Serbia, and elsewhere, the defendants allegedly targeted investors around the globe – including several in north Texas – soliciting “investments” in binary options and cryptocurrency mining.
Online, they billed their binary options platforms as “the world’s market leader in binary options,” boasted an average payout of 80 percent, and promised 20 percent refunds on every lost trade. On the cryptocurrency mining platforms, meanwhile, they claimed investors could “purchase bitcoin at half market price!!” due to a “24-7 mining” at facilities “worldwide.”
The defendants concocted profiles – complete with names and photographs, mostly female – for these non-existent investing companies’ officers and chair people, and even used fake names during video conference calls in order to convince potential investors the company was legitimate.
After instructing investors to wire money through an international bank account, the defendants allegedly provided logins for a bogus online investment portal, which consistently showed positive returns on investments. They allegedly fabricated trading activity, withdrawal history, and wire receipts. In actuality, no actual trading had occurred and the so-called “investment” money was used to cover defendants’ personal expenses, to pay commissions, and to further the scheme.
Overall, the conspiracy allegedly duped investors worldwide out of more than $70 million.
An indictment is merely an allegation of criminal conduct, not evidence. Defendants are innocent unless and until proven guilty in a court of law.
If convicted, Mr. Stojilkovic and his codefendants face up to 20 years in federal prison.
The Federal Bureau of Investigation’s Dallas Field Office conducted the investigation. The United States acknowledges and expressed appreciation for the cooperation of the Government of Serbia. The Justice Department’s Office of International Affairs provided valuable assistance in this matter. Assistant U.S. Attorney Sid Mody is prosecuting the case.
Seattle contract bookkeeper and accountant indicted for Wire Fraud, Aggravated Identity Theft, and Destruction of RecordsRead the Press Release
Seattle – A Seattle woman who was employed as a contract bookkeeper and accountant for a high-end mountain bike company appeared in federal court today, indicted for her embezzlement of at least $188,000 from the company, announced U.S. Attorney Brian T. Moran. JOAN C. TROWER, 50, is charged with nine counts of wire fraud, four counts of aggravated identity theft, and one count of destruction of records. Trial before Chief U.S. District Judge Ricardo S. Martinez is scheduled for April 12, 2021.
According to the indictment, TROWER worked as a contract bookkeeper and accountant for the mountain bike company from July 2015 to May 2018. Her contract was terminated when the embezzlement was discovered. TROWER used a variety of schemes to steal from company accounts: creating checks using the company software system, forging signatures, claiming expenses and compensation she did not earn, and making transfers from company accounts to accounts she controlled in the names of phony tax accounting businesses. For example, while most employees received at most three checks per month (two for salary and one for expenses), TROWER wrote as many as thirteen checks to herself in one month. TROWER put false descriptions in the memo line, sometimes falsely claiming the funds were to reimburse her for an outside tax accounting firm she claimed to have hired. TROWER transferred money from company accounts to accounts she controlled—transferring more than $26,000 to her account in the span of just a few months in 2015. TROWER and her boyfriend used the money to, among other things, gamble at area casinos.
The indictment alleges that TROWER committed aggravated identity theft when she forged the signature of company executives on fraudulent checks and when she submitted false invoices in the name of a third-party tax accountant to justify reimbursements to TROWER.
Finally, TROWER allegedly attempted to destroy and alter company records in the company’s accounting software to hide her embezzlement from law enforcement.
Wire fraud and destruction of records are both punishable by up to 20 years in prison. Aggravated identity theft is punishable by a mandatory minimum two‑year prison term to run consecutive to any term imposed on other charges.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the FBI. The case is being prosecuted by Assistant United States Attorney William Dreher.
trower_indictment.pdfRochester Man Going to Prison for 4 1/2 Years for Defrauding Holiday InnRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Henry Williams, 55, of Rochester, NY, who was convicted of wire fraud, was sentenced to serve 55 months in prison by U.S. District Chief Judge Frank P. Geraci, Jr. He was also sentenced to serve 12 months in prison for violating the terms of supervised release imposed in connection with an earlier conviction for fraud, and pay restitution totaling $5,649.98.
Assistant U.S. Attorney John J. Field, who handled the case, stated that the defendant was on supervised release following a 2016 conviction for bank fraud in the Western District of New York, when he began working at the front desk of the Holiday Inn Rochester Downtown. In January 2020, Williams began using the hotel’s point of sale machine fraudulently to load and attempt to load hundreds of thousands of dollars onto credit/debit cards that he controlled. The defendant impersonated various hotel managers while making phone calls to the hotel’s card payment processor in furtherance of his scheme. Williams also attempted to cover his tracks and conceal his involvement in the fraud by impersonating a hotel employee and making false complaints of criminal activity by another hotel employee.
The defendant successfully stole approximately $4,871.58 in fraudulent funds. He also attempted over a period of time to obtain more than $840,000 in additional fraudulent funds.
The sentencing is the result of an investigation by Special Agents with the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia, and the U.S. Probation Department, under the direction of Chief Probation Officer Timothy Englerth.
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Roanoke Woman Sentenced to Prison for Failing to Disclose Ownership of Show Ponies as Part of Bankruptcy ProceedingsRead the Press Release
ROANOKE, Va. – A Roanoke woman, who failed to disclose her family’s ownership stakes in a series of show ponies as part a bankruptcy proceeding, was sentenced today in U.S. District Court to six months in federal prison to be followed by two years of supervised release, six months of which must be spent on home confinement, Acting United States Attorney Daniel P. Bubar made the announced today.
Laura Wright, 53, pleaded guilty in October 2020 to concealing property in relation to a bankruptcy proceeding.
According to court documents, on September 2, 2014, Laura Wright, and her husband Stacey Wright, filed a voluntary bankruptcy petition in the United States Bankruptcy Court for the Western District of Virginia in the Roanoke Division. At the time of the filing, Laura Wright was an attorney with prior bankruptcy experience and a member of the Virginia State Bar.
Prior to filing bankruptcy, and continuing throughout the bankruptcy proceedings, the Wrights incurred substantial expenses associated with the sport of pony jumping, an activity their then-minor child was participating in, and they bought, sold, and maintained ownership interests in several show ponies.
For example, approximately six weeks before filing bankruptcy, and after retaining bankruptcy counsel and completing a credit counseling course in anticipation of their bankruptcy filing, Laura Wright sold two show ponies for approximately $15,000. In August 2014, Laura Wright and others traveled to Maryland where Laura Wright purchased a show pony for $18,000. Laura Wright later bought and sold additional show ponies while the bankruptcy proceeding was pending. Although required to do so, the Wrights failed to disclose to the bankruptcy court any ownership interest in or costs associated with show ponies.
In the course of the bankruptcy proceeding, Laura Wright falsely testified under oath concerning her ownership interest in various show ponies, as well as the source of funds used to purchase the $18,000 show pony in August 2014, just prior to the Wrights’ bankruptcy filing. She further provided a notarized affidavit to the bankruptcy trustee, knowing the affidavit to be materially false.
The matter was referred to the United States Attorney by the United States Trustee. The investigation of the case was conducted by the Federal Bureau of Investigation with substantial assistance from the Roanoke Office of the United States Trustee Program. Assistant United States Attorney Kristin B. Johnson prosecuted the case for the United States.
Reno Man Sentenced to 10 Years in Prison for Fentanyl OffenseRead the Press Release
SACRAMENTO, Calif. — Saybyn Borges, 30, of Reno, Nevada, was sentenced Thursday to 10 years and one month in prison for possession with intent to distribute fentanyl, U.S. Attorney McGregor W. Scott announced.
Borges pleaded guilty on Aug. 6, 2020. According to court documents on May 21, 2018, in Placer County, Borges sold a confidential source 493 counterfeit oxycodone 30 milligram pills. The pills weighed 52.6 net grams and contained 1.6% fentanyl. Borges thereafter arranged to sell an additional 7,000 counterfeit oxycodone pills to the confidential source. On June 7, 2018, Borges arrived at the agreed-upon location in possession of the 7,000 fentanyl pills. Agents surrounded Borges’ vehicle and attempted to arrest him. Borges used his car to break containment by ramming an unmarked law enforcement vehicle. The car struck a CHP officer, injuring his hand. Borges then drove up to 100 miles-per-hour on a two-lane road, throwing tablets out the window as he fled. He was eventually apprehended. Agents located 3,440 counterfeit oxycodone pills scattered along the road and inside Borges’ vehicle. The pills weighed 367 net grams and contained 1% fentanyl.
This case was the product of investigation by the Drug Enforcement Administration. Assistant U.S. Attorney Cameron L. Desmond prosecuted the case.
Raleigh Man Sentenced to 33 Months for Conspiracy to Commit Bank FraudRead the Press Release
RALEIGH, N.C. – A Raleigh man was sentenced yesterday to 33 months in prison for conspiring with others to defraud financial institutions of approximately $393,875.
According to court documents, Jacques Maurico Anderson, 32, and a close friend purchased synthetic identities from an individual they met on Craig’s List. Anderson used this nine-digit-number, commonly referred to as a CPN, on credit applications instead of the social security number issued to him by the Social Security Administration because his credit was poor. Anderson and his friend enhanced the credit worthiness of their new credit profiles by adding the CPN coupled with their names as authorized users to credit cards issued to individuals with high credit scores. As a result, lenders and credit card issuers were scammed into believing Anderson and his friend had good credit and the ability to pay off indebtedness.
Between February 17, 2017 and March 8, 2017, Anderson and his friend went on a month-long shopping spree with their new synthetic identities. They also substantially inflated their income and provided false residential addresses. In total, they purchased or attempted to purchase five automobiles, eight All-Terrain Vehicles (ATVs), one covered wagon trailer and obtained seven credit cards. Anderson and his friend attempted to sell some of the ATVs that they fraudulently obtained to others.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Federal Bureau of Investigation and the Social Security Administration, Office of Inspector General investigated the case and Assistant U.S. Attorney Susan Menzer 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. 5:20-cr-00266-D-1.
Providence Man Indicted for Torching a Providence Police Cruiser During June 2020 RiotsRead the Press Release
PROVIDENCE – A federal grand jury today returned a one-count indictment charging a Providence man with arson, alleging that he intentionally set a Providence Police Department cruiser on fire during a riot in downtown Providence during the early morning hours of June 2, 2020.
It is alleged that Luis Joel Sierra, 36, leaned inside a Providence Police cruiser to ignite a fire. The cruiser was quickly engulfed in flames and destroyed.
According to court documents, the investigation into the circumstances surrounding the torching of the police vehicle was bolstered by video from surveillance cameras, cell phones, and social media, and from information provided via email to law enforcement tip lines, including the Boston FBI tip line.
Additionally, as alleged in court documents, Sierra told another that he was one of the individuals responsible for the arson of the Providence Police Department vehicle by applying a flammable liquid to the interior of the vehicle and then using a lighter to ignite the fire. Law enforcement was also provided with several videos allegedly taken on Snapchat off Sierra’s phone and a recorded conversation with Sierra during which Sierra allegedly detailed his actions igniting the fire.
On August 14, 2020, members of the FBI Joint Terrorism Task Force executed a court-authorized search of Sierra’s residence and seized matching clothing allegedly worn by Sierra on the evening of June 1, 2020 and early morning of June 2, 2020, including a black Caterpillar jacket; white Adidas sweatpants; a camouflage mask; two black gloves, one with a logo on the back of the hand; and two one-handed windshield-style lighters.
A federal grand jury today returned an indictment charging Sierra with malicious attempt to damage or destroy a vehicle, in whole and in part owned and possessed by the Providence Police Department, an organization receiving Federal financial assistance, by means of fire, thereby causing a substantial risk of injury to any person, including any public safety officer performing duties (arson), announced United States Attorney Aaron L. Weisman, Special Agent in Charge of the FBI Boston Division Joseph R. Bonavolonta, and Providence Police Chief Colonel Hugh T. Clements, Jr.
A federal indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
If convicted as charged, Sierra faces statutory penalties of 7- 40 years imprisonment, up to five years of supervised release, and a fine of up to $250,000.
The case is being prosecuted by Assistant U.S. Attorney Paul F. Daly, Jr.
United States Attorney Aaron Weisman, FBI Boston Division Special Agent in Charge Joseph R. Bonavolonta, and Providence Police Chief Colonel Hugh T. Clements, Jr., thank the Rhode Island Fusion Center, Rhode Island State Police, and Cranston Police Department for their assistance in this investigation.
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Over $1.1M in Civil Settlements Reaffirm DOJ’s Commitment to Preventing Opioid AbuseRead the Press Release
The United States Attorney’s Office has collected $792,000 in civil penalties as two more civil Controlled Substances Act (CSA) investigations have settled, announced U.S. Attorney Gregg N. Sofer and Drug Enforcement Administration (DEA) Special Agent in Charge Steven S. Whipple, Houston Division. These civil settlements, coupled with the Town & Country Drug, Inc. settlement, total $1,112,000.00 in agreed civil penalties obtained in the district in the past two months stemming from investigations in Austin, San Antonio and Odessa. These settlements reflect DOJ’s ongoing commitment to addressing the opioid crisis by preventing, detecting and investigating the diversion of controlled pharmaceuticals from legitimate sources.
“We depend on pharmacies and medical providers following the CSA’s recordkeeping requirements so that the DEA can carry out its critical mission of preventing the diversion of controlled substances,” said U.S. Attorney Sofer. “This office recognizes the devastating impact the diversion and improper use of controlled substances has on communities throughout this district. These cases affirm our commitment to using all avenues of enforcement to protect the health and safety of our citizens.”
“These settlements should remind pharmacies and medical providers that they, too, must adhere to federal laws designed to ensure the safe and legal dispensation of pharmaceutical drugs,” said DEA Special Agent in Charge Whipple. “These cases demonstrate DEA’s commitment to using all available tools to combat our nation’s opioid overdose crisis and reduce the illegal diversion of pharmaceutical opioids.”
MedMark Treatment Centers of Texas Pays $412,500.00
MedMark Treatment Centers of Texas, Inc., dba MedMark Treatment Centers San Antonio Military (MedMark), has paid a $412,500.00 penalty under a civil settlement to resolve allegations that it violated certain provisions of the CSA. MedMark is registered as a Narcotic Treatment Program in Schedules II and III controlled substances. MedMark operates outpatient treatment centers for opioid addiction in Texas, including a location on Military Drive West in San Antonio.
After undertaking an investigation of the Military Drive West facility in 2019, the United States contended that it had claims against MedMark for civil penalties under the CSA, including that MedMark allowed non-medical staff to repeatedly dispense controlled substances to patients in violation of the CSA. Further, the DEA contended that MedMark was in violation of recordkeeping provisions, including failing to maintain complete and accurate records, failing to maintain a current power of attorney, and failing to keep its records in a readily retrievable manner. These requirements are intended to prevent the diversion of controlled substances for illegal purposes. MedMark has made no admission of civil liability.
The DEA’s Diversion Group in the San Antonio District Office led this investigation. Assistant U.S. Attorney John Deck handled this affirmative civil enforcement matter on behalf of the government.
Ascension Seton Pays $379,500.00
Ascension Seton, on behalf of Ascension Seton Medical Center-Austin (ASMC-Austin), has paid a $379,500.00 penalty under a civil settlement to resolve allegations that it violated certain provisions of the CSA. ASMC-Austin is a hospital with advanced specialty care services.
Following a 2018 theft of controlled substances from the ASMC-Austin facility located on West 98th Street in Austin, DEA conducted an inspection and found inventory shortages, discrepancies in the facility’s pharmacy records and deficiencies in recordkeeping practices. The United States contended it had claims against ASMC-Austin for civil penalties under the CSA for record keeping violations, failure to maintain effective controls, and failure to timely report any theft or significant loss of controlled substances. ASMC-Austin has made no admission of civil liability.
The DEA’s Diversion Group in the San Antonio District Office conducted this investigation while Assistant U.S. Attorney Erin M. Van De Walle handled this affirmative civil enforcement matter on behalf of the government.
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Orlando Man Charged with Unlawfully Operating Drone in Restricted Airspace Related to Super Bowl LVRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces the filing of a criminal complaint charging Henry Alejandro Jimenez (33, Orlando) with violating national defense airspace. If convicted, Jimenez faces a maximum penalty of one year in federal prison.
According to the complaint, on February 3, 2021, the Federal Aviation Administration (FAA) issued a temporary flight restriction (TFR) covering an area extending outward from downtown Tampa. This TFR, along with others, was issued as part of a comprehensive security plan designed to protect and secure the events leading up to, and including, Super Bowl LV. That day, FBI agents saw an unmanned aircraft system (UAS), commonly referred to as a “drone,” flying near the Barrymore Hotel Tampa Riverwalk—an area within the TFR. The FBI agents then located Jiminez, the operator of the drone, nearby in downtown Tampa. Jimenez stated that he is an FAA-licensed remote pilot UAS operator and that he was aware that a TFR was in place for the Super Bowl. A review of his drone’s flight path showed that it had traveled over Julian B. Lane Waterfront Park, which was hosting public events related to the Super Bowl. Jimenez also appears to have operated his drone without maintaining an uninterrupted visual line of sight for the entire flight, as required by FAA regulations. Furthermore, Jimenez flew his drone over people and moving vehicles.
“This is a perfect example of the serious consequences drone operators face when they choose to ignore the temporary flight restrictions,” said FBI Tampa Special Agent in Charge Michael McPherson. “The TFRs are in place for your safety during Super Bowl week. Be aware of the NO DRONE ZONES and report any suspicious activity to the FBI or local law enforcement.”
A complaint 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 the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Patrick Scruggs.
Oregon Biotech Consultant Charged in Insider Trading SchemeRead the Press Release
BOSTON – An Oregon biotechnology consultant was charged today in federal court in Boston in connection with his role in an alleged insider trading scheme involving the acquisition of a Cambridge biotechnology company in 2017.
Mark Joseph Ahn, 58, of Lake Oswego, Ore., was charged with two counts of securities fraud. Ahn will make an initial appearance in federal court in Boston at a later date.
As alleged in the charging document, from April to August 2017, Ahn, a long-time senior corporate executive and board director for biotech companies, worked as a consultant for a New York firm, and advised it during its efforts to acquire Dimension Therapeutics, Inc., a biotech firm formerly headquartered in Cambridge, Mass. In the course of his work for the New York firm, Ahn learned Dimension’s intention to be acquired by another biotech firm, the details and the timing of his employer’s proposals to acquire Dimension and gained access to confidential information about Dimension’s business. Ahn thereafter bought Dimension stock while in possession of that nonpublic information. When Dimension announced that it would be acquired in August 2017, its stock increased 262% in one day.
Today, the SEC filed a separate civil action against Ahn in federal court in Boston.
The charging statute provides for a sentence of up to 25 years in prison, five years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigations, Boston Field Division made the announcement today. The U.S. Attorney’s Office received valuable assistance from the Securities & Exchange Commission. Assistant U.S. Attorney Kriss Basil of Lelling’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Oakland Woman Charged in Million Dollar Scheme to Defraud Pandemic Relief Programs for Struggling BusinessesRead the Press Release
OAKLAND – Christina Burden was arrested today on a federal criminal complaint charging her with bank fraud in connection with a scheme to illegally obtain more than $4.5 million in pandemic relief loans, announced United States Attorney David L. Anderson; Treasury Inspector General for Tax Administration J. Russell George; Federal Bureau of Investigation, Special Agent in Charge Craig D. Fair; and Internal Revenue Service, Criminal Investigation, Acting Special Agent in Charge Michael Daniels.
Christina Burden, 31, of Oakland, is charged in the complaint with one count of committing bank fraud on or about June 20, 2020, when she applied for and later received $684,375 in a forgivable loan from the government’s Paycheck Protection Program (PPP) for her shell entity “Blessing Box Co LLC.” The complaint further describes a scheme in which Burden submitted nine other fraudulent applications for PPP loans between April and June of 2020, one of which resulted in her receiving an additional $307,916 in PPP funds. In total, Burden attempted to obtain over $4.5 million in PPP forgivable loans for four different shell entities.
During this time, Burden also submitted one fraudulent Economic Injury Disaster Loan Program (EIDL) application for one of the same shell entities, for which she received $150,900 in funds. The four entities had recently been created by Burden, according to the complaint, and do not appear to engage in any legitimate business nor to have any employees. Loan applications for both PPP and EIDL loans are required to be certified by the applicant as true, and the criminal complaint describes how Burden’s applications contained false information and misleading statements as well as doctored bank statements and fictitious tax forms.
Burden ultimately obtained a total of over $1 million in fraudulent pandemic relief loans, including almost $1 million in PPP funds. The PPP requires that its funds be used for legitimate business and payroll expenses, and the complaint describes how Burden spent the bulk of the loan money on personal indulgences, including private jet travel, hotel stays, boat rentals, expensive automobiles, luxury goods purchased from Louis Vuitton and Neiman Marcus, and specialty items purchased from the Sunglass Hut and the San Francisco Giants Dugout Store.
“The Paycheck Protection Program provides a financial lifeline to needy businesses and their employees,” said U.S. Attorney Anderson. “We allege that Christina Burden obtained PPP funds by fraud, submitting false business information, false employee numbers, false bank statements, and false tax returns. She used those funds for a spending spree on entertainment, luxury goods, and high end excursions, including travel by private jet.”
“The Treasury Inspector General for Tax Administration aggressively pursues those who endeavor to defraud taxpayer-funded Coronavirus Aid, Relief, and Economic Security Act programs, which were established to provide assistance to American business owners during these unprecedented times,” said J. Russell George, the Treasury Inspector General for Tax Administration. “We appreciate the efforts of the U.S. Department Justice and our law enforcement partners in this effort.”
“As we begin a second round of PPP loans for small businesses who are struggling during this pandemic, we will be on alert for fraudsters who seek to take advantage of the program,” said FBI San Francisco Special Agent in Charge Craig Fair. “Those who wish to defraud programs designed to help those in need should know that the FBI and our partners will pursue every investigative tool available to us to ensure the integrity of those programs and that they remain available to our community’s small business owners.”
“Christina Burden allegedly used fraudulently obtained funds from the Paycheck Protection Program and Economic Injury Disaster Loan program to unjustly enrich herself. According to the criminal complaint, she submitted false documents and records to banks showing that she had employees, paid wages to those employees, and paid employment tax payments to the IRS – none of which is true,” said Michael Daniels, Acting Special Agent in Charge of IRS Criminal Investigation's Oakland Field Office. “IRS-CI is proud to work with our law enforcement partners by lending our expertise in complex financial cases like this one.
As outlined in the complaint, the PPP is administered by the U.S. Small Business Administration (SBA) as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The CARES Act is a federal law enacted in March 2020 to provide emergency financial assistance to the millions of Americans suffering from the economic effects caused by the COVID-19 pandemic. PPP loan proceeds must be used by the business on certain permissible business expenses, including payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal on a PPP loan to be entirely forgiven if the business spends the loan proceeds on these business expense items within a designated period of time and uses at least 60% of the PPP loan proceeds on payroll expenses. Loans made through the PPP are 100% guaranteed by the SBA.
Similarly, the EIDL Program provides low-interest non-forgivable loans to small businesses, among others, in regions affected by disasters. In March 2020 the President of the United States extended the availability of EIDL funds to all states and territories due to the magnitude and severity of the COVID-19 pandemic.
According the complaint, Burden’s loan applications contained multiple false statements certified as true. Among those, Burden falsely affirmed that each business was in operation before February 15, 2020, and her businesses had up to 89 employees and monthly payroll expenses of over $700,000. The complaint alleges, however, that the entities’ tax records reveal that none of them paid payroll taxes nor submitted any payroll tax forms. Bank records submitted in Burden’s applications as evidence of the four shell entities’ payroll expense payments were revealed to be doctored when compared against the actual bank records, per the complaint’s allegations.
The complaint lastly alleges that once Burden received the funds, she did not use the money to pay allowable PPP business expenses but instead spent it on personal indulgences: $184,000 on airfare, private jet travel, and hotel expenses; $124,000 on luxury purchases from Louis Vuitton and Neiman Marcus as well as purchases from Nordstrom, the San Francisco Giants Dugout Store, Sunglass Hut, Tumi, and Wayfair; $16,000 on boat and car rentals; and $14,000 on various restaurant and entertainment expenses, among other purchases. In addition, the complaint alleges Burden wired hundreds of thousands of dollars to friends and family, $150,000 of which was spent in part on Mercedes and Land Rover vehicles.
The charges in the complaint are merely allegations and the defendant is presumed innocent unless proven guilty in a court of law.
Burden is charged with one count of bank fraud, in violation of 18 U.S.C. § 1344. Burden faces a maximum penalty of 30 years in prison and a one million dollar fine, if convicted. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Burden was arrested this morning in Austin, Texas. Her initial appearance in United States District Court will be in the Western District of Texas on Monday, February 8, 2021, before United States Magistrate Judge Mark Lane, who sits in Austin. It is anticipated that Burden will be ordered at that hearing to appear in the United States District Court in Oakland, California, to face the charge in the federal complaint. The date for her initial appearance in Oakland federal court is as yet unscheduled.
Abraham Fine is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Kay Konopaske and Laurie Worthen. The prosecution is the result of an investigation by TIGTA, IRS-CI, and the FBI.
Norwalk Felon Admits Possessing Loaded Rifle with Obliterated Serial NumberRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that TYROME SAWYER, also known as “Tyrone Sawyer” and “Crack,” 30, of Norwalk, pleaded guilty today before U.S. District Judge Stefan R. Underhill to unlawful possession of a firearm by a convicted felon.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the court proceeding occurred via videoconference.
According to court documents and statements made in court, on April 19, 2019, Sawyer was arrested after Norwalk Police executed a search warrant at his apartment and located a Hi-Point model 995, 9mm carbine rifle with an obliterated serial number and a loaded magazine.
Sawyer’s criminal history includes state convictions for felony firearm, drug and escape offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Judge Underhill scheduled sentencing for April 30, 2021, at which time Sawyer faces a maximum term of imprisonment of 10 years.
Sawyer has been detained since his arrest.
This investigation is being conducted by the Norwalk Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The case is being prosecuted by Assistant U.S. Attorney Brendan Keefe.
This prosecution has been brought through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
New Hampshire Man Pleads Guilty to Child Exploitation ChargesRead the Press Release
BOSTON – A New Hampshire man pleaded guilty yesterday in federal court in Boston to traveling to have sex with a minor and child pornography offenses.
Donald Gibson, 38, of Nashua, N.H., pleaded guilty to traveling with intent to engage in illicit sexual conduct with a person under 18 years of age, distribution of child pornography and transportation of child pornography. U.S. District Court Judge Indira Talwani scheduled sentencing for June 11, 2021. Gibson was arrested and charged by criminal complaint in February 2020.
Gibson communicated via various text messaging applications with an undercover agent and devised a plan to meet the agent and his purported 13-year-old daughter in a hotel room in Tewksbury on Feb. 5, 2020. During the conversations, Gibson distributed child pornography to the undercover agent. On Feb. 5th, Gibson drove from New Hampshire to the Tewksbury hotel. Law enforcement agents intercepted Gibson as he was entering the hotel and found him in possession of a newly-purchased, unopened box of condoms, $90 cash, and a cell phone. The forensic analysis of the phone Gibson had on his person revealed child pornography organized in several folders.
During a consensual interview with agents, Gibson admitted that, during their conversations, he had given the undercover agent suggestions for how the undercover agent could start having sexual contact with his daughter, and that they had discussed meeting at the hotel so that they three of them (Gibson, the undercover agent and the 13-year-old daughter) could have sex. Gibson indicated that he planned to give the undercover agent more child pornography.
The charge of traveling with intent to engage in illicit sexual conduct with a person under 18 years of age provides for a sentence of up to 30 years in prison. The charges of distribution and transportation of child pornography both provide for a mandatory minimum term of five years and up to 20 years in prison. All three charges carry a term five years and up to life of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Tewksbury Police Chief Ryan M. Columbus; and Nashua (N.H.) Police Chief Michael Carignan made the announcement. Assistant U.S. Attorney Anne Paruti, Lelling’s Project Safe Childhood Coordinator and Deputy Chief of the Major Crimes Unit, is prosecuting the case.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
NDTX Round-Up: January 29 – February 4Read the Press Release
SENTENCING – BRANDON DOUGLAS DURGIN
On January 29, Brandon Douglas Durgin, 24, was sentenced to 51 months in federal prison for possession of a firearm by a felon. According to a criminal complaint, in July 2020, Arlington Police Department initiated an investigation for a stolen sport utility vehicle. According to the victim, Durgin had taken the SUV without permission along with a 9mm caliber pistol. APD tracked and relayed the location of the vehicle to the Fort Worth Police Department. Officers found the stolen SUV in a parking lot with Durgin seated in the driver’s seat. FWPD officers removed Durgin from the driver’s seat, and placed handcuffs on him. At that time, Durgin told the officers that he had a handgun in his front waistband. When Durgin was placed in the back of the patrol unit, he advised law enforcement that he is a convicted felon. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives with the assistance of the Arlington Police Department and the Fort Worth Police Department. Assistant U.S. Attorney Mark Nichols prosecuted the case.
GUILTY PLEA – BERTHA GARAY
On February 2, Bertha Garay, 47, plead guilty to theft of government funds. Beginning in 2007, Garay had in her care the child of a deceased parent. She received mother with child in care benefits through the Social Security Administration. In 2013, the child left Garay’s care and she knowingly failed to disclose the change to Social Security Administration. Garay admits that from June 2013 to September 2015, she defrauded the Social Security Administration of approximately $40,000. Garay faces up to 10 years in federal prison for her crimes. This case was investigated by the Social Security Administration. Assistant U.S. Attorney Fabio Leonardi is prosecuting the case.
SENTENCING – RODNEY DISMUKE
On February 4, Rodney Dismuke, 29, was sentenced to 54 months in federal prison for conspiracy to possess with intent to distribute a controlled substance. Dismuke and co-conspirators operated a Dallas apartment as a drug trafficking location. On more than one occasion, Dismuke sold cocaine to a confidential source at the apartment. Additionally, Dismuke was in possession of a firearm which he utilized to further his drug trafficking purposes. This case was investigated by the FBI and the Dallas Police Department.
SENTENCING – GUILLERMO ZARCO VILLASENOR
On February 4, Guillermo Zarco Villasenor, 28, was sentenced to 150 months in federal prison for possession with intent to distribute a controlled substance. According to a complaint, a confidential source provided an address to Villasenor under the guise that it belonged to a potential new client in the Dallas area that wanted to establish a relationship with a drug trafficking network. On April 30, 2018, Villasenor had 443 grams of methamphetamine shipped to a location in Addison, Texas to be sold for approximately $6,000. This case was investigated by the FBI. Assistant U.S. Attorney P.J. Meitl prosecuted the case.
Mission Man Sentenced on Firearm ChargeRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person was sentenced on February 1, 2021, by Chief Judge Roberto A. Lange, U.S. District Court.
Robert James Riley, age 40, was sentenced to 11 months in federal prison, followed by two years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Riley was indicted by a federal grand jury on March 9, 2020. He pled guilty on November 5, 2020.
The conviction stemmed from Riley possessing a handgun in March 2019 near the South Antelope Community on the Rosebud Sioux Indian Reservation while he was a user of, and addicted to, methamphetamine. Riley admitted to law enforcement he possessed the handgun before he sold it to a methamphetamine trafficker. The handgun was seized by law enforcement during a traffic stop, which also uncovered methamphetamine, drug paraphernalia, and a large amount of U.S. currency.
Drug trafficking is an inherently violent activity. Firearms are tools of the trade for drug dealers. It is common to find drug traffickers armed with guns in order to protect their illegal drug product and cash, and enforce their illegal operations.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
The investigation was conducted by the Northern Plains Safe Trails Drug Enforcement Task Force, the Rosebud Sioux Tribe Law Enforcement Services, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Cameron J. Cook prosecuted the case.
Riley was immediately remanded to the custody of the U.S. Marshals Service.
Mexican National Residing in Turlock Sentenced to 6 Years in Prison on Gun ChargeRead the Press Release
FRESNO, Calif. — Fernando Valencia, 31, of Turlock, was sentenced Thursday to six years in prison for being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
According to court documents, on Oct. 30, 2019, Valencia was in possession of a loaded firearm in a vehicle in Turlock. He was previously convicted of multiple felonies, including a violent assault, and was therefore prohibited from possessing firearms and ammunition. At the time of Valencia’s arrest, he was on federal probation in the Southern District of California following a 2014 conviction.
This case was the product of an investigation by the Federal Bureau of Investigation, the Turlock Police Department, and the Stanislaus County District Attorney’s Office. Assistant U.S. Attorney Katherine Schuh prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
Mexican National Pleads Guilty to Illegal ReentryRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that GUADALUPE HERRERA-PEREZ, age 41, a citizen of Mexico, pled on February 3, 2021 today to a one-count Bill of Information for illegal reentry of a removed alien after deportation, in violation of 8 U.S.C. '' 1326(a) and (b)(2).
According to the Bill of Information, GUADALUPE HERRERA-PEREZ reentered the United States on or about November 26, 2017, after having been previously removed therefrom on or about January 28, 1998.
GUADALUPE HERRERA-PEREZ faces a maximum term of imprisonment of twenty years, a fine of up to $250,000.00, three years supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Martin L.C. Feldman set sentencing for May 12, 2021. 2018.
U.S. Attorney Strasser praised the work of the United States Department of Homeland Security, Immigration and Customs Enforcement in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
Mexican Drug Traffickers Charged with Conspiring to Import Large Quantities of Narcotics into the United States Based on Seizure of 2.5 Tons of Methamphetamine and 100,000 Fentanyl PillsRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, Raymond P. Donovan, Special Agent in Charge of the New York Division of the U.S. Drug Enforcement Administration (“DEA”), Peter C. Fitzhugh, Special Agent in Charge of the New York Division of Homeland Security Investigations (“HSI”), and Dermot Shea, Commissioner of the New York City Police Department (“NYPD”), announced that JOSE LORETO GASTELUM‑TORRES and FREDY ALEJANDRO GASTELUM‑VEGA were charged in a criminal complaint in Manhattan federal court with conspiring to import approximately 2.5 tons of methamphetamine and 100,000 fentanyl pills into the United States. The charge arises from a January 29, 2021, seizure of approximately 2.5 tons of methamphetamine and 100,000 fentanyl pills in Sinaloa, Mexico.
Manhattan U.S. Attorney Audrey Strauss said: “Thanks to the DEA, HSI, the NYPD, and the rest of our OCDETF New York Strike Force partners, a major shipment of potentially lethal drugs was interdicted before it could addict, poison, and potentially kill untold numbers of people in the United States.”
DEA Special Agent in Charge Raymond P. Donovan said: “There is a tidal wave of fentanyl and methamphetamine being pushed from Mexico into the United States. Case in point, these two traffickers were allegedly caught red-handed with over $90 million dollars’ worth of fentanyl and methamphetamine. Traffickers see opportunities when drug overdoses rise, and they are trying to flood American markets with these synthetic, highly addictive, and dangerous drugs. DEA and our law enforcement partners will continue to target drug networks to keep Americans safe and save lives.”
HSI Special Agent in Charge Peter C. Fitzhugh said: “Those arrested allegedly sought to traffic thousands of fentanyl pills and multiple tons of methamphetamine, which would only exacerbate the plague currently devastating our community while steadily increasing addictions and overdose deaths. The Strike Force has been a proven model for success in dismantling transnational narcotics trafficking organizations. HSI showcased our unique value at the Strike Force in this case by leveraging our border resources to not only effectively address threats and vulnerabilities but moreover promote collaboration in furthering these investigations, making timely and significant arrests, and stopping deadly drugs from flooding our streets.”
Police Commissioner Dermot Shea said: “Today’s charges demonstrate that the investigative efforts of the NYPD in coordination with our law enforcement partners are far-reaching and focused. As long as individuals, wherever they may be, are involved in illegal narcotics trafficking, the NYPD and our partners will relentlessly work to end the threat to public safety. I commend and thank the NYPD investigators, members of the Organized Crime Drug Enforcement Strike Force Initiative, agents from the New York Division of the U.S. Drug Enforcement Administration, and the attorneys at the United States Attorney’s Office, Southern District, for their dedication to this investigation.
As alleged in the Complaint unsealed in federal court[1]:
On or about January 29, 2021, Mexico’s Secretaría de Marina (the “Mexican Navy”) located and began tracking an outboard‑powered boat traveling from Las Arenitas, Sinaloa, Mexico, northwest through the Gulf of California. Approximately several hours later, the Mexican Navy interdicted the vessel in or around Topolobampo, Sinaloa, Mexico, and arrested GASTELUM‑TORRES and GASTELUM‑VEGA. Mexican Navy officers seized approximately 960 plastic containers from the boat, which contained approximately 2.5 tons of methamphetamine and 100,000 pills of fentanyl.
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GASTELUM‑TORRES, 53, and GASTELUM‑VEGA, 33, of Mexico, are each charged with conspiring to import at least 500 grams of methamphetamine and at least 400 grams of fentanyl into the United States, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants would be determined by the judge.
This case is part of an Organized Crime Drug Enforcement Task Forces (“OCDETF”) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations.
This investigation was conducted by the OCDETF New York Strike Force in partnership with the DEA’s law enforcement partners. The OCDETF New York Strike Force comprises federal, state, and local law enforcement agencies supported by OCDETF and the New York/New Jersey High Intensity Drug Trafficking Area. The Strike Force is affiliated with the DEA’s New York Division and includes agents and officers of the DEA, NYPD, New York State Police, HSI, U.S. Internal Revenue Service Criminal Investigation Division, Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Customs and Border Protection, U.S. Secret Service, U.S. Marshals Service, New York National Guard, Clarkstown Police Department, U.S. Coast Guard, Port Washington Police Department, and New York State Department of Corrections and Community Supervision.
Ms. Strauss praised the outstanding investigative work of the OCDETF New York Strike Force.
The case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorneys Alexander Li, Benjamin Woodside Schrier, and Kyle A. Wirshba are in charge of the prosecution.
The charge contained in the Complaint is merely an allegation, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described herein should be treated as an allegation as to the defendants charged in the Complaint.
Meridian Man Pleads Guilty under Project EJECT to Being a Convicted Felon in Possession of AmmunitionRead the Press Release
Jackson, Miss. – Todrian Kwame Laphand, 27, of Meridian, pled guilty today before Chief U.S. District Judge Daniel P. Jordan III to possession of ammunition by a convicted felon, announced Acting U.S. Attorney Darren J. LaMarca and Kurt Thielhorn, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On July 10, 2019, Laphand, who was under surveillance by the Lauderdale County Sheriff’s Office, purchased 40 rounds of .223 caliber ammunition from a pawn shop in Meridian Mississippi. Laphand also purchased a large sheath or holster for a large semi-automatic pistol capable of firing .223 caliber ammunition. After Laphand left the pawn shop, in the company of three other people, officers of the Sheriff’s Office conducted a traffic stop and took Laphand into custody.
Laphand was found in possession of the ammunition he purchased, along with a firearm and the sheath that contained that firearm. Also found in the vehicle were two other firearms and several different suspected controlled substances. Laphand has prior felony convictions for felony fleeing from a law enforcement officer, sale of marijuana and possession of a firearm by a convicted felon. As a convicted felon, it is contrary to federal law for Laphand to possess any ammunition.
Laphand was indicted by a federal grand jury on November 19, 2019. He is currently in custody and will be sentenced on May 12, 2021 by Judge Jordan. Laphand faces a maximum penalty of ten years in prison and up to a $250,000.00 fine.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Charles W. Kirkham.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
Lima man sentenced to 12 years for selling substance that caused overdoseRead the Press Release
Acting U.S. Attorney Bridget M. Brennan announced today that Loyd T. Turks, Jr., 26, of Lima, Ohio, was sentenced to 144 months imprisonment by U.S. District Court Judge Jack Zouhary. Turks pleaded guilty to one count of distribution of fentanyl, methylfentanyl, heroin and cocaine; one count of distribution of methylfentanyl; one count of distribution of cocaine and two counts of distribution of U47700, a Schedule I controlled substance.
“This case illustrates that our message bears repeating: fentanyl and fentanyl analogues are mixed into other drugs, including heroin and cocaine, which increases the likelihood that fatal overdoses will result,” said Acting U.S. Attorney Bridget M. Brennan. “We will continue to seek significant prison sentences for those who distribute this poison in our communities.”
On August 22, 2017, law enforcement agents received information from two individuals, Person #1 and Person #2, that Loyd Turks was a drug dealer in Lima, Ohio, who sold large quantities of illegal narcotics. Person #1 and Person #2 then conducted a controlled buy of cocaine from Turks and the next day, unbeknownst to law enforcement, Person #1 contacted Turks and purchased what was believed to be heroin. Person #1 ingested the suspect-heroin and subsequently overdosed. Person #2 found Person #1 unconscious and called 911. Emergency crews arrived and administered Narcan and Person #1 was revived and transported to the hospital. A sample amount of the drug ingested was retrieved and turned over to law enforcement, as well as a blood sample from Person #1.
Person #1 interviewed with law enforcement following the incident and informed the officer that Turks had forced Person #1 to ingest the substance in order to prove that he was not working with law enforcement. Person #1 agreed to recontact Turks and request to buy the same substance that had caused the overdose.
On August 24, 2017, a meeting was arranged to complete the transaction, and upon his arrival, Turks was arrested. Investigators searched Turks and found in his possession a white powdery substance. The substance found on Turks, the sample taken from the scene of the overdose and the blood sample of Person #1 all tested positive for a mixture of U47700 and fentanyl analogues.
Turks pleaded guilty to all five counts of the indictment in October of 2020.
This matter was investigated by the Federal Bureau of Investigation and the West Central Ohio Crime Task Force. The case was prosecuted by Assistant U.S. Attorney Tracey Ballard Tangeman and Michael J. Freeman.
Lawrence Man Sentenced for Fentanyl and Firearms ChargesRead the Press Release
BOSTON – A Lawrence man was sentenced yesterday in federal court in Boston for fentanyl conspiracy and unlawful possession of firearms, including an AR-15 rifle.
Ariel Pagan-Romero, 31, was sentenced by U.S. District Court Judge Leo T. Sorokin to 12 years in prison and five years of supervised release. In October 2020, Pagan-Romero pleaded guilty to conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl; distribution and possession with intent to distribute 40 grams or more of fentanyl; and being a felon in possession of firearms.
Over the course of several months, a federal investigation involving an undercover officer identified Pagan-Romero’s fentanyl distribution operation. During a search of Pagan-Romero’s residence, agents seized pistols, an AR-15 rifle, ammunition, fentanyl and cocaine base.
United States Attorney Andrew Lelling and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement. Valuable assistance was provided by Homeland Security Investigations in Boston; the Massachusetts State Police; and the Andover, North Andover, Billerica, Chelmsford, Lowell and Lawrence Police Departments. Assistant U.S. Attorney Philip C. Cheng of Lelling’s Narcotics and Money Laundering Unit prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Kern County Man Sentenced to over 5 Years in Prison for Check and Credit Card Fraud, Identity Theft, and Firearms OffensesRead the Press Release
FRESNO, Calif. — Rogelio Benavides, 35, of Arvin, was sentenced Thursday to five years and five months in prison for bank fraud, aggravated identity theft, and being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
Benavides was also ordered to pay over $20,000 in restitution and forfeit another $20,000 as part of his sentence.
Benavides pleaded guilty on Nov. 12, 2020. According to court documents, between November 2018 and September 2019, Benavides obtained hundreds of pieces of stolen mail that included checks, checkbooks, and personally identifiable information belonging to other individuals and businesses. He then altered and forged checks and either cashed or deposited the checks into his own bank accounts. He used personally identifiable information to apply for credit cards, which he used to make purchases and cash advances. He accessed bank accounts belonging to the other individuals and businesses and made payments for credit cards, loans, and insurance policies in his own name and the names of his associates. Benavides’ scheme caused more than $95,000 in fraudulent charges to be made to other individuals’ bank accounts and credit cards.
During the scheme, Benavides was found to have possessed a Glock Model 19, 9 mm pistol, which was illegal given his prior felony convictions.
This case was the product of an investigation by the U.S. Postal Inspection Service. Assistant U.S. Attorneys Vincente Tennerelli and Joseph Barton are prosecuting the case.
Judge sentences ‘Doctors on the Go’ owner to nine years in prison for fraud and receiving kickbacksRead the Press Release
ST. LOUIS – United States District Judge Henry E. Autrey sentenced Denis Mikhlin to 108 months in prison today. The judge also ordered Mikhlin to pay restitution. The 41-year-old St. Louis County, Missouri resident pleaded guilty, in August, to four felony counts of conspiracy, obtaining oxycodone and other opioid drugs by fraud and deceit, receiving illegal kickbacks in return for sending urine specimens to Central Diagnostic Laboratory for medically unnecessary testing, and causing the Medicare and Medicaid programs to pay $4,704,568 for medically unnecessary prescription drugs and drug tests.
Mikhlin conspired with Dr. Jerry Leech and others to issue and distribute illegal prescriptions for opioids and other controlled substances to patients. Mikhlin and his co-conspirators knew the patients did not have a legitimate medical need for drugs and instead were abusing the drugs or selling them.
Additionally, Mikhlin recruited individuals and paid them for the use of their names on the fraudulent prescriptions. Once the prescriptions were filled, some of the drugs were returned to Mikhlin and the rest were kept by the individuals or sold to others. To conceal this illegal activity, Mikhlin and others created patient files, falsely indicating the patients had been examined by the prescribing doctors and the patients were regularly monitored and tested.
On February 2, 2021, co-defendant Dr. Jerry Leech pleaded guilty to four felony counts for his actions related to this conspiracy and fraud scheme. His sentencing is scheduled for May 11, 2021.
Co-defendants Erin Herman, Vladimir Kogan, Ebony Price, Tijuana Spates, and Erica Spates have also pleaded guilty. All are scheduled for sentencing in May 2021.
The case was investigated by the Office of the Inspector General, U.S. Department of Health and Human Services, Federal Bureau of Investigation, Missouri Medicaid Fraud Control Unit, Missouri Attorney’s General Office and the U.S. Department of Defense. Assistant United States Attorney Dorothy McMurtry is handling the case.
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Judge sentences former head of St. Louis-Area Charter School for $2.4 Million FraudRead the Press Release
ST. LOUIS – United States District Audrey Fleissig sentenced Michael Malone to 12 months and 1 day in prison today. Malone was also ordered to make restitution to the Missouri Department of Elementary and Secondary Education in the amount of $2,362,761.33. The 42-year-old St. Louis, Missouri resident pleaded guilty, in August, to three counts of wire fraud connected to a scheme to defraud and obtain education funds from the State of Missouri relative to the operation of the St. Louis College Prep Charter School from 2011 through 2018.
The St. Louis College Prep Charter School (“SLCP”) was a Missouri Charter School located in St. Louis, Missouri. From April 2011 through June 2015, it operated out of leased premises located in the 2900 block of South Grand Avenue, at which time it purchased a building in the 1200 block of Grattan Street, where it operated until the school’s closing in May 2019. During its final school year of 2018-2019, SLCP served students in grades six through twelve. As a Missouri Charter School, SLCP was tuition free and funded by Missouri and federal education funds. SLCP received its state funding through Missouri’s Department of Elementary and Secondary Education (“DESE”) based upon SLCP’s reported student attendance. Per-student funding is based on average daily attendance, how often students are reported to be in the school, rather than enrollment. Malone founded SLCP and served as the Executive Director of SLCP from the school’s inception during 2011 until his resignation on November 1, 2018. Malone was actively involved in the day-to-day management and administration of SLCP, maintained his office in the primary school building and was responsible for reporting the SLCP student attendance numbers to DESE in order for DESE to calculate SLCP’s state funding.
As part of his scheme, Malone falsely inflated SLCP students’ average daily attendance in his reports to DESE. For four of the seven school years between 2011-2012 and 2017-2018, Malone reported students’ average daily attendance in excess of SLCP’s actual enrollment. For example, during the 2013-2014 school year, Malone reported average daily attendance of 220, when actual enrollment at SLCP was only 191 students. During the 2016-2017 school year, Malone reported average daily attendance of 326, when actual enrollment at SLCP was only 290 students. These falsely inflated average daily attendance numbers reported by Malone to DESE resulted in increased state funding to SLCP.
SCLP operated on a year-long school schedule and an extended school day with no summer school and no remedial classes. However, as part of his scheme, Malone inflated student attendance numbers by falsely claiming regular school days and hours as summer school or remedial hours, increasing the state funding received from DESE. Malone also falsely inflated actual student daily attendance. For example, during the 2016-2017 school year, Malone inflated the daily attendance records of 81 out of 333 students, or 24% of the actual SLCP student body. During the 2017-2018 school year, Malone inflated the daily attendance records of 188 out of 319 students, or 59% of the actual SLCP student body. Inflated hours totaled approximately 10,044 hours for the 2016-2017 school year and approximately 13,255 hours for the 2017-2018 school year.
Malone used the fraudulently obtained increase in state funding, approximately $2,400,000, to maintain SLCP’s ongoing operations during a period when costs to operate the school were increasing significantly. Malone also used the increased state funding to give SLCP a competitive advantage over St. Louis Public Schools and other St. Louis Charter Schools when recruiting students. As Missouri state funding follows the student, each St. Louis resident student successfully recruited to SLCP meant an increase in funding for SLCP and a decrease in funding for St. Louis Public Schools. The additional funds provided to SLCP were used to pay for resources which were not equally accessible to St. Louis Public Schools and other St. Louis Charter Schools.
This case was investigated by the Federal Bureau of Investigation, with the cooperation and assistance of the Missouri Department of Elementary and Secondary Education and the Missouri State Auditor’s Office. Assistant United States Attorney Hal Goldsmith is handling the case for the United States Attorney’s Office.
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Iowa Man Sentenced to 10 Years in Prison for Plot to Harm Federal OfficialsRead the Press Release
United States Attorney Joe Kelly announced that Justin Lee Fletcher, 39, of Des Moines, Iowa, was sentenced on February 4, 2021 in Council Bluffs, Iowa, by Senior United States District Judge Joseph F. Bataillon to 120 months’ imprisonment for four counts of solicitation to commit a crime of violence. Fletcher was also sentenced to 21 months for failing to register as a sex offender and 21 months for a supervised release violation. There is no parole in the federal system. Fletcher will begin a lifetime term of supervised release upon his release from prison. The time will run concurrent for all three cases.
An investigation conducted by the Federal Bureau of Investigation determined that from May 15, 2019, through August 8, 2019, in the Southern District of Iowa, Fletcher was an inmate at the Polk County Jail, Des Moines, Iowa, facing federal charges for failing to register as a sex offender. While at the Polk County Jail, Fletcher communicated with numerous other inmates. Fletcher believed that one of these inmates had gang contacts that would harm individuals in exchange for payment. During the course of communications with this inmate, Fletcher solicited the inmate’s gang contacts to physically assault officials in the Southern District of Iowa to include a United States District Court Judge, an Assistant United States Attorney, a former Assistant United States Attorney, and a United States Probation Officer. Specifically, Fletcher solicited the inmate’s gang contacts to have the United States District Court Judge's eyes and nose injured. Fletcher solicited inmate’s gang contacts to have Assistant United States Attorney’s fingers cut-off. Fletcher solicited the inmate’s gang contacts to have the United States Probation Officer’s knee and tongue injured. Fletcher also solicited the inmate’s gang contacts to have the former Assistant United States Attorney’s back injured.
The FBI became aware of Fletcher’s intentions in June 2019. The FBI intercepted a coded letter handwritten by Fletcher to an individual located outside of the Polk County Jail. The FBI was able to decrypt the letter, which stated “THEY CUT FIVE OF HIS FINGERS OFF.”
During the course of continued communications with the inmate, Fletcher was recorded discussing the specific injuries he wanted done to the United States District Court Judge, Assistant United States Attorney, former Assistant United States Attorney, and United States Probation Officer. Fletcher and inmate also discussed payments to be made to the inmate’s gang contacts.
The FBI determined that Fletcher’s threats to assault the aforementioned individuals were with the intent to retaliate against those individuals because of their performance of official duties during their respective term of service.
FBI Omaha Special Agent in Charge Eugene Kowel said, “After 10 years in federal prison, Fletcher will spend the rest of his life under federal supervision. His case serves as a reminder that the FBI and our law enforcement partners will bring all of our investigative resources to bear on those who threaten the lives of federal officials.”
The United States Attorney’s Office for the District of Nebraska was specially appointed to handle the prosecution of Fletcher in the Southern District of Iowa after the United States Attorney’s Office for the Southern District of Iowa was recused as a result of a conflict. Senior United States District Judge Joseph F. Bataillon was appointed to preside over the prosecution of Fletcher in the Southern District of Iowa after the formerly assigned United States District Court Judge determined there was a conflict.
This case was investigated by FBI Des Moines – Central Iowa Gang Task Force (CIGTF), which is a Safe Streets Task Force focusing on violent crime, assisted by the U.S. Marshal’s Service in Des Moines.
Illegal Alien Sentenced on Federal Meth and Firearm ConvictionsRead the Press Release
A man, illegally in the United States, who conspired to distribute methamphetamine while possessing a firearm was sentenced February 3, 2021, in federal court in Sioux City.
Oscar Pena-Solis, 30, from Mexico, pleaded guilty on September 16, 2020, to conspiracy to distribute methamphetamine; possession with intent to distribute methamphetamine; possession of a firearm in furtherance of a drug trafficking crime; and possession of a firearm by a prohibited person.
At the plea and sentencing hearings, evidence showed that on July 2, 2020, law enforcement conducted a traffic stop of the vehicle Pena-Solis was driving, just south of Sioux City. At the time of the stop, Pena-Solis did not have a valid driver’s permit and was in the United States illegally. During an initial search of Pena-Solis, law enforcement seized a user quantity of methamphetamine plus a methamphetamine pipe in Pena-Solis’ pocket. During a search of the vehicle, law enforcement located a loaded .22 caliber revolver under the driver’s seat. Law enforcement also seized 11 pounds of methamphetamine, in one-pound packages hidden in the vehicle and in the trailer attached thereto. Evidence further showed that Pena-Solis, at the request and direction of another co-conspirator in Des Moines, Iowa, travelled to California with a large amount of cash provided to him, obtained the methamphetamine and travelled back to Iowa to distribute the methamphetamine to persons in Sioux City and Des Moines. Pena-Solis was prohibited from the possession of a firearm due to being an unlawful user of methamphetamine as well as his illegal status in the United States.
Sentencing was held before United States District Court Chief Judge Leonard T. Strand. Pena-Solis was sentenced to 180 months’ of imprisonment. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system. Pena-Solis remains in custody of the United States Marshal until he can be transported to a federal prison.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see /media/1122011/dl?inline.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-4061. Follow us on Twitter @USAO_NDIA.
High School Ex-Coach Sentenced for Stalking Teenage StudentRead the Press Release
A former high school track coach has been sentenced to more than 10 years in federal prison for stalking a student and possessing child pornography, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Rickey Badley, a 45-year-old former Timber Creek High School teacher and coach, was indicted in September 2020, making him the first defendant prosecuted for stalking in the Northern District of Texas. In October 2020, he pleaded guilty to one count of stalking and one count of possession of child pornography. He was sentenced today by U.S. District Judge Reed O’Connor to 131 months in federal prison.
According to court documents, Mr. Badley admitted that he stalked a 16-year-old student, calling her his “new favorite” and “little girl” and circulating false and vulgar messages about her to her family and friends.
He admitted that from December 2019 to April 2020, he anonymously mailed the victim, her parents, and her classmates numerous letters detailing fabricated sexual encounters between the victim and her teenage boyfriend. He also attempted to anonymously mail out 13 copies of a graphic haiku, which was intercepted by law enforcement before it reached addressees.
The defendant further admitted he sent the victim’s parents an anonymous letter demanding she produce two TikTock videos with sexual undertones. The letter threatened to release false and disparaging information about the victim if the videos were not posted by a certain time.
Mr. Badley was asked by the school to submit his resignation in January 2020, when administrators became aware of his conduct. That same month, the victim’s mother observed Mr. Badley driving by the family home. Six months later, in June 2020, the victim noticed Bradley pulling into a parking spot at her private athletic practice before speeding away.
The ensuing investigation into Mr. Badley uncovered pornographic images of a toddler stored on his laptop. In court documents, Mr. Badley admitted he knew the images depicted actual minors engaged in sexually explicit conduct.
The U.S. Postal Inspection Service conducted the investigation. Assistant U.S. Attorney Nancy Larson prosecuted the case.
Healthcare Company and Lab Pay $845K to Resolve Federal and State False Claims Act AllegationsRead the Press Release
U.S. Attorney John H. Durham and Special Agent in Charge Phillip Coyne of the U.S. Department of Health and Human Services, Office of the Inspector General, today announced that SECON OF NEW ENGLAND, LLC, d/b/a SECON LABORATORIES, and STERLING HEALTHCARE OPCO, LLC, d/b/a CORDANT HEALTH SOLUTIONS (collectively, “Cordant”) have entered into a civil settlement agreement with the federal and state governments and have paid $845,108 to resolve allegations that they violated the federal and state False Claims Acts.
Cordant Health Solutions, which is based in Denver, Colorado, provides healthcare testing and monitoring services nationwide, including laboratory services for drug testing. Cordant’s subsidiary, Secon Laboratories, is a laboratory located in Worcester, Massachusetts. Secon’s client, Crossroads, Inc., was a behavioral health residential treatment center located in New Haven, Connecticut. Many of the residents of Crossroads were enrolled in the Connecticut Medicaid program.
In 2015, Crossroads implemented a policy requiring its residents to submit to regular urine drug testing, largely for residential monitoring purposes. Crossroads ordered presumptive (screening) drug tests and definitive (confirmatory) drug tests for each resident weekly. In many cases, Crossroads ordered duplicative tests for its residents more than two times a week, and as often as three, four, or five times a week. These drug tests were performed by Cordant, and were billed by Cordant to Connecticut Medicaid.
The government alleges that Cordant knew or should have known that the tests that Crossroads ordered for its residents more than two times a week were not medically necessary. The United States and the State of Connecticut contend that Cordant failed to report and return overpayments for the claims Connecticut Medicaid paid Cordant for performing these medically unnecessary tests.
To resolve allegations under the federal and state False Claims Acts, Cordant has paid $845,108 to the government for overpayments occurring between October 6, 2015, and February 8, 2017.
“Government funded tests must be ordered based on each patient’s medical needs,” said U.S. Attorney Durham. “Laboratories have a responsibility to ensure that the claims they submit to government health care programs are for medically necessary testing services. If a laboratory discovers that it has performed and billed for tests that were not medically necessary, it has a duty and to report and return any overpayments, and to modify its practices.”
“This settlement demonstrates OIG’s commitment to ensuring that taxpayer dollars are not wasted on medically unnecessary services,” said Special Agent in Charge Phillip M. Coyne of the U.S. Department of Health and Human Services, Office of Inspector General. “I appreciate the continued partnership between our Office, the Connecticut U.S Attorney's Office and the Connecticut Attorney General’s Office to investigate fraud and to protect public funds.”
This matter was investigated by the Office of the Inspector General for the Department of Health and Human Services, and the Connecticut Office of the Attorney General. This case was prosecuted by Assistant U.S. Attorney Sara Kaczmarek, and by Assistant Attorney General Gregory O’Connell of the Attorney General’s Office.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS or the Health Care Task Force at (203) 777-6311.