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21 December 2020
Brooklyn Man Arrested for $1.9 Million Paycheck Protection Program FraudRead the Press Release
A criminal complaint was unsealed today in federal court in Brooklyn charging Leon Miles with wire fraud in connection with his scheme to obtain over $1.9 million from the Paycheck Protection Program (PPP) which Congress created as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Miles was arrested this morning and will make his initial appearance this afternoon before United States Magistrate Judge Vera M. Scanlon.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York; William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); Amaleka McCall-Brathwaite, Special Agent-in-Charge, Office of the Inspector General of the U.S. Small Business Administration, Eastern Region Office (SBA-OIG); and Jonathan D. Larsen, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York (IRS-CI), announced the arrest and charge.
“At a time when so many are suffering from the devastating economic effects of the ongoing pandemic, Miles allegedly enriched himself at the taxpayers’ expense, stealing funds that were intended by Congress to keep businesses afloat and workers on payroll,” stated Acting United States Attorney DuCharme. “Together with our agency partners, this Office will bring to justice those who take advantage of a global crisis to commit such crimes.”
“We continue to see people taking advantage of the Paycheck Protection Program, which was created to provide emergency financial assistance to businesses who need it during the pandemic,” stated FBI Assistant Director-in-Charge Sweeney. “ This type of criminal behavior is a slap in the face to all of those who play by the rules, especially while so many in our communities are suffering from the financial fallout of the pandemic. The FBI will continue to aggressively pursue those who are using the money from this taxpayer funded economic relief program to pad their own pockets. If you know of similar instances of fraud, please call us at 1-800-CALL-FBI.
“Fraudsters that have pursued personal gain at the expense of taxpayers will be brought to justice,” stated SBA OIG Special Agent-in-Charge McCall-Brathwaite. “Greed has no place in SBA’s programs that are intended to provide assistance to the nation’s small businesses struggling with the pandemic challenges. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”
“While most Americans are struggling during this pandemic, we see criminals over and over again trying to live out their dreams of a lavish lifestyle,” stated IRS-CI Special Agent-in-Charge Larsen. “Miles allegedly submitted a PPP loan application for nearly $2 million while claiming false information. He allegedly used these funds, in part, to purchase luxury vehicles. These types of actions hurt our people, our government and our country. IRS Criminal Investigation and our law enforcement partners will continue collaborating until every misappropriated PPP loan is accounted for and criminals are brought to justice.”
The CARES Act is a federal law enacted on March 29, 2020 to provide emergency financial assistance in connection with economic effects of the COVID-19 pandemic. One source of relief provided by the CARES Act was the allocation of funds for the issuance of forgivable loans to small businesses for job retention and certain other expenses through the PPP. The PPP allowed qualifying small businesses to receive unsecured loans on favorable terms, which they were required to use for specified expenses, including payroll costs, interest on mortgages, rent and utilities. The PPP provided for forgiveness of the loan if recipient businesses spent the proceeds on these specified expenses within a limited time period and used a certain percentage for payroll costs.
As alleged in the complaint, in May 2020, Miles submitted an application for a $1,904,593.00 PPP loan on behalf of a limited liability company he owns in Brooklyn, New York, falsely claiming that the company had 50 employees and a total average monthly payroll of $761,838.00. In support of these claims, Miles submitted fraudulent personal and business tax returns and tax forms that were never filed with the IRS. In fact, he reported to the IRS no taxable income during the relevant period, and his company filed no tax returns and reported no wages paid to employees. The loan proceeds were disbursed to the defendant’s personal savings account, and within days he had withdrawn hundreds of thousands of dollars, a portion of which he used to purchase a 2020 Bentley Continental for approximately $250,000 and a 2020 Cadillac Escalade for approximately $100,000.
The charges in the complaint are allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by Assistant United States Attorneys Robert M. Pollack with assistance from Assistant United States Attorney Brian D. Morris of the Office’s Asset Forfeiture Section.
The Defendant:
LEON MILES
Age: 51
Brooklyn, New YorkE.D.N.Y. Docket No. 20-MJ-1234
Bristow Man Pleads Guilty to Assaulting his Domestic PartnerRead the Press Release
A Bristow man pleaded guilty this morning to assault resulting in substantial bodily injury to a spouse, intimate partner, or dating partner in Indian Country, announced U.S. Attorney Trent Shores.
Bobby Brian Thompson, 29, pleaded guilty before U.S. District Judge John F. Heil.
“Bobby Thompson beat his domestic partner with his fists before strangling her. Tragically, experience tells us that domestic abuse often begins with verbal threats and then escalates to extreme violence, such as this. I view domestic violence prosecution as homicide prevention,” said U.S. Attorney Trent Shores. “The investigators and victim advocates at the Bristow Police Department and FBI worked together to both bring this domestic abuser to justice and provide support to the victim.”
In his plea agreement, Thompson admitted that on or about June 11, 2020, in Bristow, Oklahoma, he assaulted his dating partner. Specifically, he admitted to striking the victim with his fists and strangling her. The victim suffered substantial bodily injury as a result of his assault upon her. Thompson further stated in his plea that he is a member of the Cherokee Nation.
Thompson’s sentencing is set for March 22, 2021.
The FBI and Bristow Police Department conducted the investigation. Assistant U.S. Attorney Richard M. Cella is prosecuting the case
Berkeley County woman admits to drug chargesRead the Press Release
MARTINSBURG, WEST VIRGINIA – Kristina Gilmore, of Martinsburg, West Virginia, has admitted to drug charges, U.S. Attorney Bill Powell announced.
Gilmore, also known as “Diamond,” 25, pled guilty to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Heroin, Fentanyl, and Cocaine Base” and one count of “Aiding and Abetting Distribution of Heroin and Fentanyl Mixture.” Gilmore admitted to working with others to distribute heroin, fentanyl, and cocaine base in February 2020 in Berkeley County and elsewhere.
Gilmore faces up to 20 years of incarceration and a fine of up to $1,000,000 for each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Bureau for Alcohol, Tobacco, Firearms & Explosives and the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
These charges are the result of investigations supported by the Organized Crime Drug Enforcement Task Force (OCDETF) under the Attorney General-led Synthetic Opioid Surge (SOS)/Special Operations Division (SOD) Project Clean Sweep. This initiative seeks to reduce the supply of synthetic opioids in “hot spot” areas previously identified by the Attorney General of the United States, thereby reducing drug overdoses and drug overdose deaths, and identify wholesale distribution networks and sources of supply operating nationally and internationally.
OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
U.S. Magistrate Judge Robert W. Trumble presided.
Atlanta Tax Professionals Plead Guilty to Promoting Syndicated Conservation Easement Tax Scheme Involving More Than $1.2 Billion in Fraudulent Charitable DeductionsRead the Press Release
Stein Agee of Canton, Georgia, and Corey Agee of Atlanta, Georgia, appeared before U.S. Magistrate Judge W. Carleton Metcalf and pleaded guilty for their roles in a wide-ranging abusive tax scheme to defraud the IRS, the Department of Justice announced today.
According to court documents, from at least 2013 through 2019, S. Agee and C. Agee, then partners at an Atlanta accounting firm, marketed, promoted, and sold together with co-conspirators, investments in fraudulent syndicated conservation easement (SCE) tax shelters. The SCE tax shelters were designed to produce tax deductions for high-income taxpayers through partnerships that purported to make “real estate investments.” In truth, the partnerships were a sham, lacking economic substance and serving no legitimate business purpose. The placement of conservation easements over the real estate was a foregone conclusion, which fraudulently enabled the investors to shelter their income from the IRS with no economic risk and to claim substantial tax deductions to which they were not entitled. S. Agee, C. Agee, and their co-conspirators marketed the SCE tax shelters by promising investors that for every $1 invested in the partnership, the investor would receive more than $4 in charitable tax deductions.
“The defendants’ and their co-conspirators' criminal conduct enabled their clients to claim more than $1.2 billion in fraudulent tax deductions and generated hundreds of millions of dollars of tax loss to the United States,” said Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department's Tax Division. “Their convictions signal just the beginning of the department’s prosecutive efforts. Taxpayers engaging in such schemes, and the lawyers, accountants, appraisers and other professionals that enable them, should understand that they will be held fully to account for their fraudulent conduct.”
“Each year, millions of law-abiding Americans painstakingly file accurate tax returns and pay timely their tax obligations, which support important government services our communities rely on,” said U.S. Attorney R. Andrew Murray for the Western District of North Carolina. “As the defendants admitted in court today, their tax shelter scheme helped wealthy clients skirt their tax responsibilities and avoid paying their fair share. Such actions not only increase the tax burden on honest taxpayers; they are a violation of our federal tax laws. Today’s guilty pleas send a strong message that tax professionals who promote, and benefit from, illegal tax shelters will be investigated and prosecuted accordingly.”
“Two defendants pleaded guilty today in the first-ever criminal case by IRS-CI involving conservation easements,” said Commissioner Charles Rettig of the IRS. “It should be considered the next step in the IRS’ battle against abusive SCEs. The defendants and their co-conspirators used conservation easement donations to personally enrich themselves and allow wealthy tax clients to evade their tax obligations. The charges and guilty pleas demonstrate that participation in abusive SCEs will not be tolerated. Once again, the IRS recommends that anyone who participated in an abusive SCE consult independent counsel about coming into compliance.”
Conservation easements were created by Congress to be a key tool used for protecting environmentally and historically important land. The donated conservation easement typically restricts the use or development of land in order to protect its conservation value. When legitimately created and used in compliance with the Internal Revenue Code, the conservation easement can both protect the environment and provide tax incentives. By contrast, abusive SCEs are designed to game the system and generate inflated and unwarranted tax deductions, often by using inflated appraisals of undeveloped land and partnerships devoid of legitimate business purpose.
According to court documents, S. Agee and C. Agee additionally solicited investors after the end of the tax year and advised them to backdate payments and documents to make it appear that the “investments” were timely made before the end of the tax year. S. Agee and C. Agee also prepared and assisted in the preparation of false tax returns for clients who agreed to invest in the SCE shelters. In exchange for their promotion of the abusive SCE tax shelters, between 2013 and 2019, S. Agee and C. Agee each received more than $1.7 million in commissions.
S. Agee and C. Agee both pleaded guilty to one count of conspiracy to defraud the United States which carries a maximum penalty of five years in prison. They also face a period of supervised release, restitution, and monetary penalties.
U.S. Attorney Murray, Principal Deputy Assistant Attorney General Zuckerman, and IRS Commissioner Rettig, thanked special agents of IRS-Criminal Investigation and the U.S. Postal Inspection Service, who are conducting the investigation, as well as Assistant U.S. Attorneys Daniel Bradley and Caryn Finley, and Tax Division Trial Attorneys Brittney Campbell and Grace Albinson, who are prosecuting the case.
Atlanta Tax Professionals Plead Guilty to Promoting Syndicated Conservation Easement Tax Scheme Involving More Than $1.2 Billion in Fraudulent Charitable DeductionsRead the Press Release
CHARLOTTE, N.C. – On Monday, December 21, 2020, Stein Agee, 42, of Canton, Georgia and Corey Agee, 38, of Atlanta, Georgia, appeared before U.S. Magistrate Judge W. Carleton Metcalf and entered guilty pleas to conspiracy charges related to their roles in a wide-ranging scheme to defraud the IRS with respect to the assessment and collection of U.S. individual income taxes, announced United States Attorney for the Western District of North Carolina R. Andrew Murray, Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division, and Commissioner Charles Rettig of the IRS.
According to court documents, from at least 2013 through at least December of 2019, S. Agee and C. Agee, then partners at an Atlanta accounting firm, conspired with others to develop, market, promote, and sell investments in fraudulent syndicated conservation easement (SCE) tax shelters to high-income taxpayers.
“The defendants’ and their co-conspirators' criminal conduct enabled their clients to claim more than $1.2 billion in fraudulent tax deductions and generated hundreds of millions of dollars of tax loss to the United States,” said Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department's Tax Division. “Their convictions signal just the beginning of the department’s prosecutive efforts. Taxpayers engaging in such schemes, and the lawyers, accountants, appraisers and other professionals that enable them, should understand that they will be held fully to account for their fraudulent conduct.”
“Each year, millions of law-abiding Americans painstakingly file accurate tax returns and pay timely their tax obligations, which support important government services our communities rely on,” said U.S. Attorney Murray. “As the defendants admitted in court today, their tax shelter scheme helped wealthy clients skirt their tax responsibilities and avoid paying their fair share. Such actions not only increase the tax burden on honest taxpayers; they are a violation of our federal tax laws. Today’s guilty pleas send a strong message that tax professionals who promote, and benefit from, illegal tax shelters will be investigated and prosecuted accordingly.”
“Two defendants pleaded guilty today in the first-ever criminal case by IRS-CI involving conservation easements,” said Commissioner Charles Rettig of the IRS. “It should be considered the next step in the IRS’ battle against abusive SCEs. The defendants and their co-conspirators used conservation easement donations to personally enrich themselves and allow wealthy tax clients to evade their tax obligations. The charges and guilty pleas demonstrate that participation in abusive SCEs will not be tolerated. Once again, the IRS recommends that anyone who participated in an abusive SCE consult independent counsel about coming into compliance.”
Congress created the option to deduct the value of a donated conservation easement from an individual’s taxable income as a tool for the protection of environmentally and historically important land. A conservation easement restricts the future use or development of a parcel of land in order protect its conservation value. When created and used in a legitimate way, in compliance with the Internal Revenue Code, a conservation easement can both protect the environment and provide tax incentives to the landowner. In contrast, abusive SCE tax shelters are designed to game the system and to generate inflated and unwarranted tax deductions, often through the procurement of inflated appraisals for the undeveloped land and through the sale of interests in partnerships devoid of any legitimate business purpose beyond the transfer of tax benefits.
Here, the Agees’ co-conspirators designed the SCE tax shelters to produce large pass-through tax deductions for high-income taxpayers who bought shares in partnerships and LLCs that purported to make “real estate investments” in plots of land. In reality, however, these “investment” transactions lacked economic substance and served no legitimate business purpose beyond the purchase and sale of tax benefits. The placement of conservation easements over the real estate purchased by the “investment” partnerships—as opposed to the development of the real estate, or any other approach to generating a profit—was always a foregone conclusion, and the co-conspirators marketed the opportunities to their clients as straightforward tax transactions designed to reduce the clients’ tax liabilities. For example, S. Agee and C. Agee marketed the SCE tax shelters by promising investors that, for every $1 invested in the partnership, the investor would receive more than $4 in “charitable” tax deductions, with no economic risk.
Furthermore, according to court documents, S. Agee, C. Agee, and their co-conspirators often solicited investors after the end of the relevant tax year, and advised them to fraudulently backdate payments and documents so it would appear that their “investments” in the SCE tax shelters were, in fact, in compliance with applicable tax laws. S. Agee and C. Agee also prepared and assisted in the preparation of false tax returns for clients who agreed to invest in the SCE shelters. In exchange for their promotion of the abusive SCE tax shelters, between 2013 and 2019, S. Agee and C. Agee each received more than $1.7 million in commissions from the developer of the SCE tax shelters.
S. Agee and C. Agee both pleaded guilty to one count of conspiracy to defraud the United States, which carries a maximum penalty of five years in prison.
U.S. Attorney Murray, Principal Deputy Assistant Attorney General Zuckerman, and IRS Commissioner Rettig, thanked special agents of IRS-Criminal Investigation and the United States Postal Inspection Service, who are conducting the investigation, as well as Assistant United States Attorneys Daniel Bradley and Caryn Finley, and DOJ-Tax Division Trial Attorneys Brittney Campbell and Grace Albinson, who are prosecuting the case.
Atlanta Businessman Charged in $1,900,000 Bribery Scheme involving U.S. Marine Corps ReserveRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Peter G. Strasser announced that Darrel Fitzpatrick, aged 30, has been charged by a Bill of Information with Conspiracy to Commit Bribery, in violation of Title 18, United States Code, Sections 371 and 201(b)(1). If convicted, Fitzpatrick faces up to five years imprisonment, followed by three years of supervised release, a $250,000 fine, and a mandatory special assessment of $100.
According to the Bill of Information, in 2019 Darrel Fitzpatrick was a senior account manager at Company A, a bus brokerage company that provided transportation to the United States Marine Corps Reserves. That same year, Fitzpatrick started a competing transportation brokerage company called National Charter Express.
In 2019, Fitzpatrick agreed to pay kickbacks to Erik Martin, a civilian employee of the United States Marine Corps Reserves, in exchange for Martin directing business to Company A, and then later, National Charter Express.
The conspiracy resulted in at least $1,900,000 in transportation contracts being corruptly awarded to companies associated with Fitzpatrick. In exchange for steering contracts to Fitzpatrick, Martin agreed to accept over $250,000 in bribes.
U. S. Attorney Strasser praised the work of the Defense Criminal Investigative Service (DCIS), the Naval Criminal Investigative Service (NCIS), and the United States Secret Service for their investigation in this case. The prosecution is being handled by Assistant United States Attorney Myles Ranier.
U. S. Attorney Strasser stated that a Bill of Information is only an allegation, and that the defendant is presumed innocent until he pleads guilty or is found guilty by a jury or judge.
Acting Manhattan U.S. Attorney Announces Settlement with Substance Abuse Treatment Center and Its Owner for Enrolling Patients Through Kickbacks and Using Falsified Patient Admissions FormsRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, and Scott J. Lampert, Special Agent in Charge of the New York Regional Office of the U.S. Department of Health, Office of Inspector General (“HHS-OIG”), announced today a $6 million settlement of a civil healthcare fraud lawsuit against A.R.E.B.A.-CASRIEL, Inc. d/b/a ADDICTION CARE INTERVENTIONS CHEMICAL DEPENDENCY TREATMENT CENTERS (“ACI”), a substance abuse treatment provider in New York City, and STEVEN YOHAY, ACI’s primary owner and former CEO. This settlement resolves allegations that ACI and YOHAY provided kickbacks and engaged in fraudulent conduct in connection with the enrollment of Medicaid beneficiaries into ACI’s inpatient treatment program. Specifically, the Government’s complaint alleges that ACI’s drivers targeted homeless individuals and offered them food, cash, money to purchase drugs, and/or alcohol in order to induce them to enroll in ACI’s inpatient treatment program. The lawsuit further alleges that ACI paid an individual a kickback in the form of a sham job for which she was compensated more than $75,000 to induce her to refer patients to ACI programs. The lawsuit also alleges that ACI used medical admissions forms containing photocopied physician signatures to make it appear that new patients had been evaluated by a qualified health care professional as required by law.
Under the settlement approved December 17 by U.S. District Judge Vernon S. Broderick, ACI agreed to pay $3 million, and YOHAY personally agreed to pay an additional $3 million. Of the $6 million total, $2.4 million is being paid to the United States and the remaining amount is being paid to the State of New York. The amount paid by ACI is based on the Office’s assessment of ACI’s ability to pay based on the financial information it provided.
ACI and YOHAY admitted and accepted responsibility for conduct alleged in the Government’s complaint as further described below. YOHAY also agreed to divest ownership and control of ACI, and ACI agreed to implement procedures designed to ensure that its patient transportation services comply with legal requirements. In addition, YOHAY has entered into a Voluntary Exclusion Agreement with HHS-OIG, under which he will be excluded from participation in Medicaid and other federal healthcare programs for a period of 15 years.
Acting U.S. Attorney Audrey Strass said: “ACI and Steven Yohay engaged in unscrupulous and illegal practices – including hiring drivers to scour the streets for potential patients – to fill the beds at their facilities and maximize the payments they received from Medicaid. This Office will continue to act aggressively to ensure that substance abuse treatment providers and those who run them are held accountable when they cheat the system to fraudulently obtain federal health care funds.”
HHS-OIG Special Agent in Charge Scott J. Lampert said: “ACI and Stephen Yohay operated a fraud scheme that targeted some of the most vulnerable people in our society and diverted valuable Medicaid funds that millions of New Yorkers depend on for vital services. This settlement should send a message that this behavior will not be tolerated, and we will hold those that attempt to steal from federal health care programs accountable for their actions.”
The Complaint filed in Manhattan federal court alleges three forms of illegal conduct:
First, from January 2014 to December 2019, ACI and YOHAY improperly induced Medicaid beneficiaries to be admitted into ACI’s inpatient treatment program by employing drivers, who were compensated based in part on the volume of patients they recruited for admission into the treatment program, to solicit and transport potential new patients to ACI’s facility. The drivers routinely targeted homeless individuals and sometimes offered them food, cash, money to purchase drugs, and/or alcohol to persuade them to enroll in the program. The drivers were expected to pick up a certain number of potential patients in order to be eligible for a pay raise. Most of the new enrollments into ACI’s inpatient program resulted from the ACI drivers’ solicitation efforts.
Second, in October 2012, ACI created a sham part-time Spanish “translator” position so that it could employ an individual whose real job was primarily to provide a stream of patient referrals. The individual was simultaneously employed at an organization that refers individuals to substance abuse clinics. ACI placed the individual on its payroll to receive referrals to its treatment programs. The individual translated only a few times, even though she remained on the payroll until March 2017 and was paid more than $75,000.
Third, from July 2012 through July 2013, ACI admitted Medicaid patients into its inpatient treatment program who were not evaluated by a qualified health care professional to determine the appropriate level of care, as required by applicable state law. ACI staff fraudulently created medical forms containing a photocopied physician’s signature to make it appear that a physician had conducted the evaluation. The falsified forms were used to support claims for reimbursement, for the indicated level of care, from Medicaid.
In the settlement agreement, ACI and YOHAY admit, acknowledge, and accept responsibility for the following conduct:
Role of Drivers:
- From January 2014 to December 2019, ACI employed drivers who were involved in identifying, recruiting, and providing transportation services for new patients who were admitted into ACI’s inpatient treatment program. During the relevant period, ACI employed approximately five to 10 drivers at any given time.
- ACI drivers rode in unmarked vehicles and picked up individuals, who were often homeless, from a wide range of locations, including parks, train stations, shelters, hospitals, under bridges, and from other substance abuse treatment centers.
- ACI financially incentivized its drivers to bring in new patients. ACI paid the driver who brought in the most new patients during the relevant period an annual salary of more than $200,000, as well as a bonus consisting of thousands of dollars.
- ACI’s management, including YOHAY, were made aware of allegations that certain ACI drivers gave some potential new patients money, drugs, and/or alcohol to induce them to enroll in ACI’s inpatient program. However, ACI and YOHAY failed to investigate these allegations adequately or take appropriate corrective actions in response.
Use of Paid Employee to Make Patient Referrals:
- In October 2012, ACI created a part-time “translator” position and hired an individual to fill the position who was simultaneously employed at an organization that refers individuals to substance abuse clinics, like ACI, for treatment as an alternative to incarceration.
- Throughout the course of her employment with ACI, the individual provided ACI managers with lists of individuals who were being referred by the organization to ACI for substance abuse services.
- Although the individual was hired to be a “translator,” she rarely was asked by ACI to provide any translation services. The individual translated for ACI only a few times in 2012, and thereafter, she did not perform any translation services for ACI but continued to be paid by ACI until 2017.
Medical Assessments Not Completed by Physicians:
- From July 2012 through July 2013, ACI admitted certain patients into its inpatient program who were not properly evaluated by a qualified health professional as required.
- During the relevant period, ACI admissions staff, who were not qualified health professionals, conducted the patient assessment and completed the admissions criteria forms. These forms, which were part of a patient’s file used to support claims for reimbursement from Medicaid, contained a photocopy of a physician’s signature.
In connection with the filing of the lawsuit and settlement, the Government joined a private whistleblower lawsuit that had previously been filed under seal pursuant to the False Claims Act.
Ms. Strauss thanked HHS-OIG, the Medicaid Fraud Control Unit of the New York State Attorney General’s Office, and the New York State Office of Addiction Services and Supports for their assistance with the case.
The case is being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorney Kirti Vaidya Reddy is in charge of the case.
Acting Manhattan U.S. Attorney Announces $40.5 Million Settlement with Durable Medical Equipment Provider Apria Healthcare for Fraudulent Billing PracticesRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, Scott Lampert, the Special Agent in Charge for the New York Office of the Inspector General of the U.S. Department of Health and Human Services (“HHS-OIG”), Patrick J. Hegarty, Special Agent in Charge of the Northeast Field Office of the U.S. Department of Defense - Office of Inspector General’s Defense Criminal Investigative Service (“DCIS”), and Norbert E. Vint, Deputy Inspector General Performing the Duties of the Inspector General, Office of Personnel Management Office of the Inspector General (“OPM OIG”), announced today a $40.5 million settlement of a fraud lawsuit against Apria Healthcare Group, Inc. and its affiliate, Apria Healthcare LLC (together, “Apria”), a large durable medical equipment (“DME”) provider with approximately 300 branch offices located throughout the United States. The lawsuit alleges, among other claims, that Apria submitted false claims to federal health programs, including Medicare and Medicaid, seeking reimbursement for the rental of costly non-invasive ventilators (“NIVs”) to program beneficiaries who were not using the NIVs such that the devices were not medically necessary or that involved the improper waiver of patient co-insurance payments.
Under the settlement, which was approved on December 18 by U.S. District Judge Edgardo Ramos, Apria agreed to pay a total sum of $40.5 million, with $37,632,789.89 being paid to the United States and the remaining amount to be paid to various states. As part of the settlement, Apria also made extensive factual admissions regarding its conduct.
Acting U.S. Attorney Audrey Strauss said: “It is critical to the financial integrity of federal health programs like Medicare and Medicaid that reimbursements are made only for medically necessary items and services. DME providers like Apria have an obligation to ensure that the equipment and devices they rent to patients are medically necessary. When companies knowingly disregard that obligation to maximize their profits, this Office will hold them accountable for their fraudulent conduct.”
HHS-OIG Special Agent in Charge Scott J. Lampert said: “Apria’s conduct compromised the integrity of the Medicare and Medicaid programs, and needlessly increased the financial burden on taxpayers. Along with our law enforcement partners, HHS-OIG will continue to ensure that those individuals and entities that bill federal health care programs improperly are held accountable for their actions.”
DCIS Special Agent in Charge Patrick J. Hegarty said: “The Defense Criminal Investigative Service (DCIS) is committed to protecting the integrity of TRICARE, the healthcare system for military members and their families. Charging TRICARE for DME that was not necessary betrays the public’s trust. This settlement demonstrates our partnership with HHS-OIG, OPM-OIG and the U.S. Attorney’s Office to investigate fraudulent schemes that impact TRICARE and put its beneficiaries at risk.”
OPM OIG Deputy Inspector General Norbert E. Vint said: “The OPM OIG is committed to fighting all forms of health care fraud. As demonstrated by this settlement, providers that exploit federal health care programs by submitting false claims will be held accountable.”
As alleged in the complaint filed by the United States, Apria decided in 2014 to prioritize the expansion of its NIV rental business because health care programs like Medicare paid as much as $1,400 per month to cover NIVs, a type of complex respiratory equipment that can dynamically adjust the pressure level of air delivery. That expansion, however, came at the cost of Apria’s compliance with the basic medical necessity requirement of federal health programs. Specifically, while Apria knew that it was responsible for monitoring patients’ utilization of their NIVs and to stop billing when NIVs were no longer being used, it did not have enough staff, or “respiratory therapists,” to conduct such monitoring. As a result, Apria routinely billed Medicare and other programs when it did not know whether NIVs were still being used by patients and, therefore, remained medically necessary. Further, even when Apria had information indicating that patients were no longer using their NIVs, it often continued to bill the federal health programs.
As further alleged, Apria engaged in two other types of improper practices to obtain more NIV orders and higher profits. First, Apria improperly billed federal health programs for certain NIV rentals that were being used in a setting called PAC mode to provide bi-level pressure support therapy, which was available from a less expensive device called VPAP RAD and did not qualify for reimbursement at the NIV rate. Second, Apria improperly waived co-pays for a number of Medicare and TRICARE beneficiaries to induce them to rent NIVs. For example, Apria employees offered to waive co-pays to convince patients to rent NIVs from Apria instead of competitors. Further, Apria also waived co-pays without making the required individualized assessment of financial need. As a result of those three widespread improper practices, Apria submitted thousands of false claims to federal health programs for NIV rentals and fraudulently received millions of dollars in reimbursements.
As part of the settlement, Apria admitted, acknowledged, and accepted responsibility for, among others, the following conduct:
NIV Continued Use Conduct
- Apria relied on the respiratory therapists (“RTs”) in its branches to monitor patients’ usage of their NIV devices. Further, Apria’s NIV promotional materials indicated that Apria’s RTs would regularly visit NIV patients to assess whether they used their NIV devices in accordance with their physicians’ instructions.
- The RTs at Apria’s branches, however, often did not conduct regular visits to NIV patients to confirm that patients were using their NIVs as directed by their physicians. A January 2017 internal analysis, for example, found that in December 2016, Apria’s RTs failed to complete more than half of the visits to NIV patients mandated by Apria’s NIV clinical procedures at all three of Apria’s operational zones.
- Apria continued to seek payments from federal health programs for NIV rentals each month even though its RTs frequently failed to conduct in-home visits to verify that patients were still using their NIVs.
- In addition, when it had information from the RT visits indicating that patients had stopped using their NIVs, Apria often did not take steps to stop seeking payments from federal health programs or to determine if the NIV rentals were still medically necessary.
PAC Mode Conduct
- In 2015, Apria encouraged its sales staff to actively urge physicians to order the Astral NIVs in PAC mode. When they urged physicians to order the Astral NIVs in PAC mode, Apria’s salespeople frequently did not tell the physicians that PAC mode therapy was also available through the VPAP RAD at a lower monthly cost.
- On a number of occasions, this resulted in Apria renting the more expensive Astral NIVs to patients with the PAC mode therapy orders, including patients covered by federal health programs, even though the less expensive VPAP RADs may have met those patients’ medical needs.
Co-Pay Waiver Conduct
- Managers at a number of Apria’s branches directed salespeople at those branches to routinely discuss the availability of co-pay waivers with NIV patients, including before the patients raised concerns about their ability to make these payments. In a number of cases, those managers also authorized salespeople to offer co-pay waivers to persuade patients to rent NIVs from Apria instead of other DME suppliers.
- During the Covered Period, Apria gave full co-pay waivers to hundreds of NIV patients without making an assessment as to whether those patients could have afforded some portion of their co-pay responsibilities.
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- As a result of the admitted conduct, Apria received reimbursements from the federal health programs for some NIV rental claims that did not comply with all of those programs’ billing rules and guidance.
In connection with this settlement, Apria also entered into a Corporate Integrity Agreement with HHS-OIG, which requires Apria to implement board oversight, a claims review process by an Independent Review Organization, and other compliance steps designed to foster adherence to federal health care program requirements and thereby protect the programs.
This settlement arises from a whistleblower case filed by three former Apria employees under the qui tam provisions of the False Claims Act, which allow private persons – known as “relators” – to file civil cases on behalf of the United States and share in the recovery.
Acting U.S. Attorney Strauss thanked the Washington State Medicaid Fraud Control Unit for its extensive collaboration in the investigation and resolution of this case, and also praised the outstanding investigative work of the HHS-OIG, DCIS, and OPM-OIG.
This case is being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorneys Li Yu and Steven Kochevar and former Assistant U.S. Attorney Casey Lee have handled the case.
20 December 2020
Two Albany Men Arrested on Heroin and Fentanyl ChargeRead the Press Release
ALBANY, NEW YORK – David Colon, age 39, and Adalberto Gonzalez, age 56, both of Albany, were ordered detained yesterday after being arrested on Tuesday and charged with possession with the intent to distribute heroin laced with fentanyl.
The announcement was made by Acting United States Attorney Antoinette T. Bacon and Ray Donovan, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), New York Division.
Both Colon and Gonzalez appeared yesterday before United States Magistrate Judge Christian F. Hummel and were ordered detained pending trial. The charges in the complaint are merely accusations. The defendants are presumed innocent unless and until proven guilty.
The charges filed against Colon and Gonzalez carry a maximum sentence of 20 years in prison, a fine of up to $1 million, and a term of supervised release of at least 3 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the DEA, Albany County Sheriff’s Office, Albany Police Department, Colonie Police Department, and the Troy Police Department, and is being prosecuted by Assistant U.S. Attorney Rachel Williams.
Fugitive Vladimir Natera Abreu Arrested in the Dominican RepublicRead the Press Release
SAN JUAN, Puerto Rico – Today, Vladimir Natera-Abreu and Joset Rivera-Verdejo were arrested by the Dominican National Police and were later deported to Puerto Rico. The defendants were fugitives since February 2019, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico.
Defendant Natera-Abreu was one of the main leaders in the drug trafficking organization known as “Las FARC,” (Las FuerzasArmadas Revolucionarias de Cantera). “Las FARC” operated out of the Barrio Obrero Ward, including, but not limited to El Guano sector, Playita sector, William Street, Eleven Street, Cantera sector, and the Public Housing Projects Villa Kennedy, Las Casas, El Mirador, and Las Margaritas, all located in Santurce, since in or about 2006. The goal of “Las FARC” was to maintain control of all the drug trafficking activities within the Santurce area by the use of force, threats, violence, and intimidation.
Natera-Abreu and Rivera-Verdejo had been previously charged in a seven-count indictment for conspiracy to possess with intent to distribute narcotics, aiding and abetting in the possession and distribution of heroin, crack, cocaine, and marihuana, and possession of a firearm in furtherance of drug trafficking. The charged drug conspiracy included 75 defendants.
Assistant U.S. Attorneys Alberto López-Rocafort and Teresa S. Zapata-Valladares are in charge of the prosecution of the case. The FBI was in charge of the investigation of the case. If convicted the defendant faces a mandatory minimum sentence of 15 years, and up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
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8 Individuals Charged for Drug Trafficking from Puerto Rico to New YorkRead the Press Release
SAN JUAN, Puerto Rico – On December 3, 2020, a federal grand jury in the District of Puerto Rico returned a three count indictment charging five men and three women, who are members of a drug trafficking organization, with conspiracy to possess with intent to distribute controlled substances, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. The Drug Enforcement Administration (DEA) in conjunction with the Airport Investigations and Tactical Team (AirTAT) were in charge of the investigation. AirTAT identifies, locates, disrupts, dismantles, and prosecutes transnational crime organizations using the airports in Puerto Rico to smuggle narcotics, weapons, human cargo, counterfeit documents, illegal proceeds, and other contraband.
“This investigation demonstrates the collaborative effort to identify, target and dismantle drug trafficking organizations involved in transporting narcotics from Puerto Rico to the U.S. mainland,” said W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico. “The U.S. Attorney’s Office will continue to work with our law enforcement partners to attack this problem and deter the use of Puerto Rico as a transshipment location.”
DEA Caribbean Division Special Agent in Charge, A.J. Collazo said that “We will continue to utilize all our inter-agency resources towards the disruption and dismantlement of these drug trafficking organizations whatever modality they utilize.”
The indictment alleges that in 2018, the defendants, together with other persons known and unknown to the Grand Jury conspired to obtain, transport, and distribute narcotics, including cocaine, from Puerto Rico to New York. This drug trafficking organization is a network of recruiters, coordinators, and transporters traveling from the District of Puerto Rico to the continental United States via commercial flights with narcotics for wholesale distribution, all for significant financial gain and profit.
The defendants indicted are:
Jaime Antonio Nieto-Irizarry
Frankie Javier Piñero-Miranda
Elena García-Muñíz
Sergio Rosario-Cruz
José Luis Acevedo-Atilano
Jaime David Ruiz-Delgado
Tiffany Michelle Zayas-Román
Saraí Denisse Rivera-Díaz
Assistant U.S. Attorneys Jawayria Z. Auchter and Richard T. Passanisi from the Transnational Organized Crime Section arein charge of the prosecution of the case. If convicted, the defendants face a minimum sentence of 10 years in prison and a maximum sentence of life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until proven guilty.
This investigation is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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18 December 2020
West Texas Child Predator Sentenced to Life in Federal PrisonRead the Press Release
A west Texas child predator was sentenced yesterday to life in federal prison, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Michael Don Billups, 56, pleaded guilty in January to interstate transportation of a minor with intent to engage in criminal sexual activity. He was sentenced yesterday afternoon before U.S. District Judge James Wesley Hendrix.
“Mr. Billups committed heinous acts of sexual abuse against the most vulnerable in our society,” said U.S Attorney Erin Nealy Cox. “While no prison term can undo the pain and suffering Mr. Billups has caused, today’s life sentence sends a strong message that child sexual exploitation will be punished to the fullest extent of the law.”
“The FBI is dedicated to protecting the communities we serve from child predators,” said FBI Dallas Special Agent in Charge Matthew J. DeSarno. “We will continue working with our partners to pursue individuals who commit horrific acts of child exploitation.”
According to court documents, Billups befriended a family while living in New Mexico. Over a period of time, Billups earned the family’s trust and, on occasion, the family’s minor children were allowed to stay at Billups’ residence overnight.
During the summer of 2019, Billups requested to take two of the children on vacation to Florida and Alabama. While at Billups son’s residence in Alabama, Billups sexually assaulted one of the minors.
In October 2019, the family moved from New Mexico to Lubbock, Texas. Shortly thereafter, one of the minor children outcried to his mother stating that Billups had been sexually assaulting him for several years at locations in New Mexico, Texas, and in Alabama.
According to court documents, the parents questioned a second sibling who informed them that he had observed activities between Billups and his sibling that confirmed the outcry.
To avoid detection, Billups told the minors not to tell anyone because it would make him feel sad. He also purchased toys and games for boys.
The FBI’s Dallas Field Office and the Lubbock Police Department conducted the investigation. Assistant U.S. Attorney Sean Long prosecuted this case.
West Seneca Man Arrested After Investigators Seize Suspect Heroin or Fentanyl from His ResidenceRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Michael Prewitt, 51, of West Seneca, NY, was arrested and charged by criminal complaint with possession with the intent to distribute heroin and fentanyl. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Richard Antoine, who is handling the case, stated that according to the complaint, on December 16, 2020, law enforcement officers executed a federal search warrant at the defendant’s Slade Avenue residence in West Seneca. During that search, officers seized approximately 1332 grams of suspected heroin or fentanyl, two mechanical presses, commonly used to shape narcotics into bricks, packaging materials, two digital scales, and approximately $18,000 in cash.
In 2003, Prewitt was convicted in federal court of being a felon-in-possession of a firearm and sentenced to serve 37 months in prison.
The defendant made an initial appearance before U.S. District Judge H. Kenneth Schroeder, Jr. and was detained.
The complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia; the Erie County Sheriff’s Office, under the direction of Sheriff Timothy Howard; and the Buffalo Police Department, under the direction of Commissioner Byron Lockwood.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Virginia Man Arrested for Online Sextortion SchemeRead the Press Release
PHILADELPHIA – First Assistant United States Attorney Jennifer Arbittier Williams announced that Terrell Ashby, 22, of Williamsburg, VA, was arrested and charged by Complaint for cyberstalking a young woman residing in Delaware County, PA in connection with a “sextortion” scheme.
According to the Complaint, in August 2020, Terrell Ashby used a social-media platform to contact a 20 year-old woman (the victim). Ashby, using the online moniker “Jason Brandon,” sent a message to the victim offering her a large sum of money and enticing her to communicate with him on another electronic messaging application. The victim agreed and subsequently engaged in a nude video chat with the defendant.
Unbeknownst to the victim, Ashby recorded portions of their video chat, and subsequently sent her multiple messages demanding $40 in exchange for deleting a nude photo he had captured of her. Specifically, he wrote, in part, “When you send the $40 I will delete your nudes offline” and “Just send the $40 and you’re good lol[.] We aren’t good until you send the $40[,] simply send the $40 and I’ll delete it[.]” The victim then paid the $40 by transferring money via an online payment platform to an account provided by Ashby.
However, that was not the end of Ashby’s alleged abuse of the victim. The defendant then sent the victim multiple messages demanding all of the money in her bank account. In these messages, Ashby threatened to disseminate the nude photos of the victim to her college and other social media friends and followers if she did not pay him more money. For example, Ashby wrote, in part: “Your expose page is being created right now and I’m also going to tag your college[.] I’ll end you[.] I’m not someone you want to [expletive] with[,] go tell your father that… Just [sent] your nudes to [name redacted][.] Already exposed you whore[.] Your life is over[.] You’re dumb if you thought this was over its not over until my $134 is sent[.] I’ll make sure our whole school sees your nudes[.]”
As a result of the defendant’s alleged conduct, the victim became distraught and ingested a number of prescription pills in an attempt to calm her emotional distress. She was rushed to an emergency room in an ambulance and ultimately recovered. While she was hospitalized, Ashby began advertising the nude photos of the victim using various online accounts. For example, the defendaNt posted a photo of the victim on a social-media platform, using an account named “[name redacted]sextape” with the following caption: “Everyone [message] me to see [the victim] nudes … she [video chatted] me naked I have the full [video chat] call saved [message] me to see everyone.”
Ashby was arrested at his residence in Williamsburg, Virginia this morning and is expected to appear before a magistrate judge in the Eastern District of Virginia later this afternoon.
“As detailed in the Complaint, Ashby’s alleged exploitation and manipulation of this victim are abhorrent,” said First Assistant U.S. Attorney Williams. “Protect yourself and avoid falling victim to this type of scheme. And if you have been victimized, know that you are not alone and should not be shamed into silence. Please come forward so that we can investigate and prosecute the offenders. These criminals are counting on your silence to get away with it; don’t let them.”
“Terrorizing someone with threats to release their explicit images is unconscionable,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “Imagine the emotional toll it takes on a victim, living in fear of being so personally exposed. Unfortunately, the FBI is seeing more and more sextortion cases, with people of all ages targeted. It’s not some sick game, it’s a crime, and the FBI will continue to unmask these cyber predators and hold them firmly accountable.”
If convicted, the defendant faces a maximum possible sentence of 5 years’ imprisonment, 3 years’ supervised release, and a $250,000 fine.
The case was investigated by the Philadelphia FBI, and is being prosecuted by Assistant United States Attorney Sarah Wolfe. The FBI and U.S. Attorney’s Office in the Eastern District of Virginia also provided assistance in the investigation.
A criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Virginia Defense Contractor Pleads Guilty to Federal Charges in Maryland for Illegally Selling Chinese-Made Body Armor and Related Goods to Federal Agencies and for Illegal Possession of a FirearmRead the Press Release
Greenbelt, Maryland – Arthur Morgan, age 67, of Lorton, Virginia, pleaded guilty today to a federal wire fraud charge, in connection with federal contracts to provide helmets, body armor, and other items to military and other federal entities. Morgan also pleaded guilty to illegal possession of a firearm by a prohibited person, a charge which was originally brought in U.S. District Court for the Eastern District of Virginia, but was transferred to Maryland.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; United States Attorney for the Eastern District of Virginia G. Zachary Terwilliger; Special Agent in Charge Eric D. Radwick of the General Services Administration (GSA) Office of Inspector General; Special Agent in Charge Ashan Benedict of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Washington Field Division; Special Agent in Charge Alison F. Zavada, Naval Criminal Investigative Service; and Assistant Inspector General for Investigations Michael Ryan of the U.S. Department of State Office of Inspector General.
According to his plea agreement, Morgan was the Chief Executive Officer of Surveillance Equipment Group Inc. (SEG) and its relevant division, SEG Armor, both of which Morgan managed from Lorton, Virginia. The GSA enters into government-wide contracts with commercial firms to provide supplies and services that are available for use by federal agencies worldwide. All GSA contracts are subject to the Trade Agreements Act (TAA), which requires that all products listed on GSA contracts must be manufactured or “substantially transformed” in a “designated country.” China is not a designated country under the TAA. Contractors were not allowed, under these GSA contracts, to supply products that did not comply with the TAA. Any such products would have been disqualified from eligibility under the contract. Further, a contractor’s failure to certify that its products complied with the TAA would have disqualified the contractor from eligibility for the contract. A contractor who falsely certified that a product was TAA compliant could not lawfully seek payment from the United States for that product.
As detailed in his plea agreement, Morgan falsely certified that the ballistic vests, helmets, riot gear, and other items he offered for sale under his federal contract were from designated countries, specifically, Hong Kong and the United States. While representing that none of SEG’s products offered to federal agencies under the relevant contract were manufactured in China, Morgan knowingly provided products that Morgan knew had been manufactured in China, in violation of the TAA and the contract. SEG received multiple federal government orders under the contract between 2003 and 2019. Between September 15, 2014 and August 29, 2019, approximately six federal government agencies placed at least 11 orders for ballistic and other law enforcement/security equipment from SEG—which SEG sourced from China in violation of the TAA, as part of the scheme to defraud— totaling approximately $658,866.92.
For example, the U.S. Navy placed an order with SEG for helmets, and Morgan had a series of e-mail communications with Navy contracting personnel in Indian Head, Maryland, including concerning SEG’s inability to meet the agreed-upon delivery schedule. In his e-mails, Morgan falsely advised the Navy contracting personnel that SEG had a factory in southern Virginia, that the helmets for the order “were in production” there, and that the delays were due to a backorder of materials needed for the helmets. To the contrary, the helmets that Morgan provided under the U.S. Navy order originated from China before Morgan sent them to the Navy, in violation of the TAA and the contract. Specifically, Morgan admitted that these products were manufactured by Chinese Company 1, from which Morgan knowingly ordered them.
On February 16, 2016, and March 10, 2016, the Defense Finance and Accounting Service paid SEG $127,069.60 and $191,990.28, respectively, for the U.S. Navy order. For all of the orders, federal government agencies paid SEG at least approximately $488,976.92.
On December 17, 2019, law enforcement executed search warrants at Morgan’s residence in Lorton; at the Louisa, Virginia property that his wife owned and which Morgan had claimed housed SEG’s manufacturing operation; at one of Morgan’s storage units in Mineral, Virginia; and at a rental warehousing location in Springfield, Virginia. Law enforcement recovered: a 12-gauge shotgun; a 9mm semi-automatic firearm with two magazines; a .380-caliber semi-automatic firearm with two magazines; a .38-caliber five-shot revolver, with two speed loaders; 315 rounds of various caliber ammunition; a 30-round 9mm extended magazine; four ballistic vests; five ballistic plates; three black ballistic helmets; one “SEG Armor” ballistic vest manufactured in China; and personal use marijuana with accompanying paraphernalia. At the time that Morgan possessed the firearms, ammunition, and body armor, he had been convicted of at least one crime of violence, specifically, second-degree murder, assault with the intent to murder, rape or rob, and use of a handgun in a crime of violence, in the Circuit Court for Prince George’s County, Maryland on June 1, 1982. As a result of this conviction, Morgan was prohibited from possessing firearms, ammunition, or body armor.
Morgan faces a maximum sentence of 20 years in federal prison for wire fraud and a maximum of 10 years in federal prison for being a felon in possession of firearms and ammunition. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. U.S. District Judge George J. Hazel has scheduled sentencing for March 15, 2021, at 10:00 a.m.
United States Attorney Robert K. Hur commended the GSA OIG, the State Department OIG, the ATF, the NCIS, and the U.S. Attorney’s Office for the Eastern District of Virginia for their work in this investigation and prosecution, and recognized the Army Major Procurement Fraud Unit, the Defense Criminal Investigative Service, Homeland Security Investigations, the FBI, the Air Force Office of Special Investigations, and the Coast Guard Investigative Service for their assistance. Mr. Hur thanked Assistant U.S. Attorney Elizabeth Wright, who is prosecuting the case.
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Violent Felon and Sex Offender Pleads Guilty to Firearms ChargesRead the Press Release
NORFOLK, Va. – A man previously convicted of numerous violent felonies and who is a registered sex offender pleaded guilty today to being a felon in possession of a firearm and possessing a firearm in furtherance of a drug-trafficking crime.
According to court documents, Edward Jamaal Taylor, 38, of Suffolk, was arrested based on evidence that he had allegedly assaulted and kidnapped at gunpoint a witness in a federal drug-trafficking case. Police officers then searched Taylor’s car and recovered a handgun equipped with a laser sight and loaded with a large-capacity magazine, which matched the victim’s description of the firearm used in the abduction. The officers also recovered eight ounces of marijuana and a double-bladed knife from the car. After his arrest, Taylor admitted to owning the gun, possessing the drugs with intent to distribute them, and “possibly hitting” the victim while “recklessly waiving his gun around” during an argument, after which he “assisted” the victim to two different locations.
Taylor has seven convictions for violent felonies, including two for robbery, two for possessing a firearm in connection with a felony offense, two for abduction, and one for rape.
Taylor is scheduled to be sentenced on April 16, 2021. He faces a mandatory minimum sentence of five years and a maximum of life in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Al Chandler, Interim Chief of Suffolk Police; and Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, made the announcement after U.S. District Judge Arenda Wright Allen accepted the plea.
Assistant U.S. Attorneys William B. Jackson and William D. Muhr are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:20-cr-93.
Vallejo Man Indicted for Firearms OffensesRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment Thursday against Michael Ray Pitre Jr., 35, of Vallejo, charging him with being a felon in possession of firearms, and possession of an unregistered short barrel rifle, U.S. Attorney McGregor W. Scott announced.
According to court documents, the execution of federal search warrants of Pitre’s person, residences, and vehicles led to the discovery of a non-serialized machine gun, a short barrel rifle, and a pistol. The machine gun, which was located in his truck, was loaded with a 60-round extended magazine and was placed on top of a bag containing a mask, additional extended magazines and ammunition, and two tracking devices.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Oakland Police Department. Assistant U.S. Attorney Adrian T. Kinsella is prosecuting the case.
If convicted, faces a maximum statutory penalty of 10 years in prison on each charge, a $250,000 fine for the felon in possession charge, and a $10,000 fine for the possession of an unregistered firearm charge. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
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.
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 www.justice.gov/projectguardian.
Upper Peninsula Methamphetamine Co-Conspirators Sentenced to PrisonRead the Press Release
MARQUETTE, MICHIGAN — Three Houghton County co-conspirators have been sentenced to prison for their role in conspiring to distribute more than 50 grams of crystal methamphetamine in the Upper Peninsula.
Ryan Lee Timko, 34, of Houghton, Michigan, was sentenced by U.S. District Judge Paul L. Maloney to 192 months in prison for his role in the conspiracy. Jeremy Joseph Brusso, 37, formerly of Atlantic Mine, Michigan, was sentenced by Chief U.S. District Judge Robert J. Jonker to 132 months in prison for his role in the conspiracy. Nicholas Patrick Cornish, 29, formerly of Calumet, Michigan, was sentenced by Chief U.S. District Judge Robert J. Jonker to 120 months in prison for his role in the conspiracy.
Timko, Brusso, and Cornish travelled to the Lower Peninsula to get crystal methamphetamine to redistribute in the U.P. Over the course of the conspiracy, they brought over a pound of methamphetamine into the Upper Peninsula.
These sentences were the culmination of a long-term investigation by the Upper Peninsula Substance Enforcement Team (UPSET) into crystal methamphetamine distribution in the west end of the Upper Peninsula. Homeland Security Investigations, Customs and Border Protection Laboratory and Scientific Services Directorate, the Michigan State Police, the Bureau of Indian Affairs, the Houghton County Sheriff’s Office, and the Houghton City Police assisted UPSET during the course of the investigation.
The Upper Peninsula continues to struggle with individuals, like these defendants, bringing methamphetamine into the U.P. Those who choose to engage in this conduct are on notice of the serious consequences for bringing this dangerous drug into our communities,” said U.S. Attorney Andrew Birge.
“Dangerous drugs like crystal methamphetamine destroy communities and families,” said D/Lt. Timothy Sholander, Michigan State Police – UPSET Commander. “We hope the sentences handed down in this case serve as a reminder to other drug dealers that the distribution of methamphetamine is a losing game and that the men and women on UPSET will continue to fight to support the communities and families in Michigan’s Upper Peninsula.”
Assistant U.S. Attorneys Ted Greeley and Alexis Sanford prosecuted the case.
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United States Brings Federal False Claims Act Suit Against Newark LandlordRead the Press Release
WILMINGTON, Del. – U.S. Attorney David C. Weiss announced today that the United States filed a civil complaint against Goodfish Enterprises, LLC and its principal, Christopher Lukacs, in the United States District Court for the District of Delaware. The United States alleges that Goodfish and Lukacs violated the False Claims Act in connection with their participation in Department of Housing and Urban Development’s Housing Choice Voucher Program (HCVP), commonly known as “Section 8.” The HCVP is the federal government’s primary program for helping low-income families, the elderly, and the disabled to afford decent, safe, and sanitary housing in the private market.
Goodfish and Lukacs own more than 90 properties in the Sparrow Run housing development in Newark, Delaware, many of which are leased to low-income residents who receive rental assistance from the federal government through the HCVP. Since July 2015, they have received more than $950,000 in federally funded housing assistance payments.
HCVP regulations require program participants to certify that they are not charging a higher rent to tenants who receive assistance through the HCVP than they charge unassisted tenants in comparable housing units. The United States alleges that Goodfish and Lukacs frequently charged HCVP participants higher rents than unassisted tenants. As a result, the United States alleges these required certifications were false and fraudulent. In addition, the United States alleges that Goodfish and Lukacs repeatedly provided false information on HCVP forms regarding the rents they received from unassisted tenants to justify the inflated rents they sought to charge for HCVP rentals.
“When federal taxpayer money is used to provide housing assistance for low-income Delaware residents, the government must ensure that the money is well spent and that the rent being charged is appropriate,” said U.S. Attorney Weiss. “Every month for at least six years, Goodfish and Lukacs falsely certified that the rents they charged Section 8 tenants were no higher than the rents for unassisted tenants. Time and again, they inflated the rents charged to needy Delawareans and justified these rents with additional false statements, leaving the government to foot the bill. Today’s civil complaint demonstrates that this office will aggressively work to recover public money from those who fraudulently seek to overcharge the federal government.”
This matter was investigated by the Department of Housing and Urban Development Office of Inspector General. The investigation and litigation are being handled by Assistant U.S. Attorney Dylan J. Steinberg.
The complaint contains allegations only, and not findings of liability.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER.
United States Attorney Thomas L. Kirsch II Announces Departure from OfficeRead the Press Release
HAMMOND, INDIANA– United States Attorney Thomas L. Kirsch II announced today that he has resigned from the Department of Justice, effective December 18, 2020, at which time he assumed the duties of a United States Circuit Judge for the Seventh Circuit.
Mr. Kirsch was appointed to the position of United States Attorney by President Trump on October 6, 2017.
“I commend Tom Kirsch for his many years of service as United States Attorney and as a member of my Advisory Committee of United States Attorneys. Tom has faithfully led his office in Northern Indiana with integrity and an unrelenting commitment to the rule of law. Under Tom’s leadership, his Office has successfully and aggressively focused on prosecuting violent crimes, especially illegal gang activity in Northwest Indiana, and public corruption. Tom has also been a valuable member of my Advisory Committee of United States Attorney’s since 2019, advising me and the Department of Justice on policy and law enforcement matters. The Department looks forward to Tom’s service to our country as a 7th Circuit Judge,” said Attorney General William P. Barr.
“Thomas Kirsch is a lifelong Hoosier, who has worked to take on public corruption in Indiana, and has led a diverse and exemplary career. I am proud the U.S. Senate has confirmed Mr. Kirsch for the United States Court of Appeals for the Seventh Circuit,” said Senator Mike Braun
“Thomas Kirsch’s qualifications, experience, and temperament will make him the kind of judge that every Hoosier can be proud of. Throughout this process, Kirsch has made it clear that he believes in the rule of law and he understands the role of a judge is to apply the law and Constitution as written. Today, the Senate agreed Thomas Kirsch is the right judge to fill the current vacancy on the United States Court of Appeals for the Seventh Circuit, and I trust he will serve with distinction for years to come,” said Senator Young.
“Serving the citizens of Northern Indiana as United States Attorney has been the privilege and honor of a lifetime,” said Mr. Kirsch. “I believe that my Office and the talented and dedicated career civil servants that served along with me are among the best in the country. I am proud of what we have accomplished together over the past several years. I am also very grateful for the professional and hardworking federal, state, and local law enforcement officers serving Northern Indiana. Their impressive work is necessary to the continuing fight to reduce crime. I am looking forward to continuing to serve my country in a new role. I am very thankful for the support and confidence of Senator Young and Senator Braun, and I am thankful to the President for my appointment as United States Attorney and now as a Circuit Judge for the Seventh Circuit.”
“Thomas Kirsch has served Indiana with distinction and integrity the last three years as U.S. Attorney for the Northern District of Indiana, and proved time and time again his commitment to serving Hoosiers,” said FBI Indianapolis Special Agent in Charge Paul Keenan. “I would like to thank him for his dedicated service and wish him the best in this next chapter of his career.”
“While serving as the U.S. Attorney in the in the Northern District of Indiana, Judge Kirsch’s leadership was highly respected among local, state and federal law enforcement,” commented Special Agent in Charge Kristen de Tineo of the Chicago Field Division. “On behalf of the men and women of ATF, we wish him continued success as he serves on the 7th Circuit Appellate Court.”
“Tom Kirsch has admirably served as United States Attorney for the Northern District of Indiana, relentlessly working to protect citizens from the effects of drug trafficking and drug-related violence. Although Tom has vigorously prosecuted violent drug trafficking crimes and illegal gang activity, he is compassionate and fair-minded, considering the humanity in all circumstances and ensuring equity in all matters. I am glad that Tom has chosen to remain in public service as a 7th Circuit Judge. The country will continue to benefit from his service,” said Robert J. Bell, Special Agent in Charge of the Drug Enforcement Administration, Chicago Division.
United States Marshal Todd Nukes said, “As the U.S. Attorney, Tom Kirsch has been the ultimate professional and a man of high integrity. He remained focused and committed to fighting violent crime, drugs, and other offenses for the safety of the people in Northern Indiana.”
During his tenure as U.S. Attorney, Mr. Kirsch served as the chief federal law enforcement officer in the Northern District of Indiana, which includes 32 of the State’s 92 counties, with offices in Hammond, South Bend, and Forth Wayne. As U.S. Attorney, Mr. Kirsch oversaw the investigation and prosecution of all federal criminal violations in the Northern District of Indiana and represented the United States in all civil litigation occurring in the District. The U.S. Attorney’s Office focuses on prosecuting violent crime, drug related crime, and white collar offenses, in addition to civil and appellate litigation in federal courts.
Some of the more notable cases and accomplishments during Mr. Kirsch’s tenue are the prosecution of United States v. Samantha Elhassani, who received 78 months imprisonment for financing the ISIS terrorist group; the public corruption prosecution and guilty plea in United States v. Joseph Stahura, who was the former mayor of Whiting, Indiana; the prosecution of United States v. Jerimiah Farmer, a Latin King who was sentenced to life imprisonment for a double homicide committed in furtherance of gang activity; the gang prosecution of United States v. Ivan Reyes and Jeron Williams, Latin Count gang members who pled guilty to racketeering conspiracy and admitted their involvement in the homicides of Lauren Calvillo and Christopher White; the prosecution of United States v. Eric Weiler, who was sentenced to 60 years in prison for production of child pornography and explosives; the prosecution of United States v. Jay Joshi for illegally prescribing opioids; the prosecution of United States v. Allen Bates and many others, a multi-defendant drug and organized crime case involving the seizure of more than 120 kilograms of cocaine, several kilograms of heroin, numerous vehicles, and approximately $6.3 million in cash; and the prosecution of United States v Eric Krieg, who was sentenced to 29 years in prison for his role in an explosion that occurred at the Post Office in East Chicago, Indiana.
During Mr. Kirsch’s tenure as United States Attorney, his Office indicted over 640 firearms cases and prosecuted over 50 gang members on racketeering-related charges, including members of the Latin Kings, Latin Counts, Latin Dragons, Imperial Gangers, and Two Six Nation street gangs, obtaining convictions in numerous cases involving cold case gang homicides committed in Northern Indiana and neighboring jurisdictions. Also during his tenure, his Office’s Civil Division collected approximately $8.8 million in criminal restitution, $622,000 in criminal fines, and $17.4 million in civil actions, totaling more than $26 million collected on behalf of the government. As U.S. Attorney, Mr. Kirsch oversaw the expansion of both the Criminal and Civil Divisions, adding more prosecutors and staff to work cases in the District.
Prior to becoming United States Attorney, Mr. Kirsch was a partner at the international law firm, Winston & Strawn LLP. Before joining Winston & Strawn, Mr. Kirsch served as an Assistant U.S. Attorney in the Northern District of Indiana from 2001-2008. In 2006 and 2007, while on detail from the U.S. Attorney’s Office, Mr. Kirsch served as Counsel to the Assistant Attorney General at the U.S. Department of Justice, Office of Legal Policy in Washington, DC. Prior to serving as an Assistant U.S. Attorney, Mr. Kirsch served as a law clerk to the Honorable John D. Tinder in the Southern District of Indiana.
Mr. Kirsch has received numerous local and national awards, including the Department of Justice Director’s Award for Superior Performance and awards from The American Lawyer, The National Law Journal, Law360, and Benchmark Litigation. Mr. Kirsch is a Fellow of the American College of Trial Lawyers. Mr. Kirsch received a B.A. in Economics and Political Science in 1996 from Indiana University and a J.D. in 1999 from Harvard Law School.
US Attorney’s Office, Northern Indiana Operating StatusRead the Press Release
HAMMOND- The United States Attorney’s Office announced that Gary T. Bell is now the Acting United States Attorney.
The Vacancies Reform Act (VRA), 5 U.S.C. § 3345(a)(1), provides that when a presidentially appointed U. S. Attorney resigns, the First Assistant U.S. Attorney (“FAUSA”) of that office automatically becomes Acting U.S. Attorney. As a result of Thomas L. Kirsch’s resignation, Gary T. Bell is now the Acting United States Attorney for the Northern District of Indiana.
Mr. Bell has held the FAUSA position since earlier this year and has been in a Supervisory Attorney position since 2014. Mr. Bell joined the U.S. Attorney’s office in June of 1999 as an Assistant United States Attorney. At that time, Mr. Bell focused on violent and drug related crimes and worked mostly with the GRIT task force. He later shifted positions and focused on public corruption and white-collar crime cases before becoming a supervisor. Prior to his 20 plus year career with the U.S. Attorney’s Office, Mr. Bell was a Lake County Deputy Prosecutor. He also worked in private practice at the Merrillville law firm of Spangler, Jennings and Dougherty.
He earned a B.A. degree in Economics from the University of Michigan in May 1987 and his law degree (Juris Doctor) from Indiana University (Bloomington) in May 1990.
Under Mr. Bell’s leadership, the office looks forward to continued cooperation with federal, state and local law enforcement agencies in our joint effort to promote public safety throughout the Northern District of Indiana.
U.S. Attorney’s Office Collects over $3.9 Million for U.S. Taxpayers in Fiscal Year 2020Read the Press Release
PORTLAND, Maine: U.S. Attorney Halsey B. Frank announced today that the U.S. Attorney’s Office for the District of Maine collected more than $3.9 million in criminal, civil and asset forfeiture actions in Fiscal Year (FY) 2020.
The office collected $2,510,154.90 in criminal and civil actions in FY 2020. Of this amount, $1,266,454.39 was collected in criminal actions and $1,243,700.51 was collected in civil actions.
Working with partner agencies and divisions, the office also collected $1,402,885.75 in asset forfeiture actions in FY 2020. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
“The U.S. Attorney’s Office works for the taxpayers,” said U.S. Attorney Frank. “So it is always gratifying to learn that our team’s efforts have led to the successful collection of funds on their behalf. We will continue to seek justice for crime victims and to ensure that criminals do not profit from their illegal behavior.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
As a whole, the Justice Department collected more than $15.9 billion in civil and criminal actions in FY 2020. This amount represents more than five times the approximately $3.2 billion appropriated budget for the 94 U.S. Attorneys’ offices and the main litigating divisions of the Justice Department combined in that same period. The total includes all monies collected through Justice Department-led enforcement actions and negotiated civil settlements. It includes more than $13.5 billion in payments made directly to the Justice Department, and more than $2.4 billion in indirect payments made to other federal agencies, states and other designated recipients.
U.S. Attorney’s Office Charges Nevada Man for Allegedly Murdering Indigenous Woman on ReservationRead the Press Release
RENO, Nev. — A Nevada man was arrested on December 15, 2020, for allegedly murdering an indigenous woman on the Pyramid Lake Indian Reservation, announced U.S. Attorney Nicholas A. Trutanich for the District of Nevada and Special Agent in Charge Aaron C. Rouse of the FBI.
Michael Burciaga, 33, was charged with second degree murder within Indian Country. Burciaga made his initial appearance before U.S. Magistrate Judge William G. Cobb, who scheduled a jury trial for February 22, 2021.
“Native Americans face particularly high rates of violence, including intimate partner violence. To increase public safety at tribal communities within Nevada, our office helped launch the MMIP Initiative last year,” said U.S. Attorney Trutanich. “Because combatting domestic violence is a top priority, our prosecutors were able to work with our law enforcement partners to take swift action here — filing preliminary charges within hours — and we have continued to coordinate in the investigation of this case.”
“The FBI stands strongly with our tribal partners in our joint commitment to hold those responsible to justice,” said Special Agent in Charge Rouse. “Violent crimes, such as this horrendous act, will never go unchallenged.”
According to allegations in the criminal complaint, Burciaga stabbed the victim with multiple knives during a domestic violence incident. Shortly after midnight on December 15, Pyramid Lake Police Department officers responded to an emergency call at a house in Nixon, Nevada. Officers located the victim — a registered member of the Pyramid Lake Paiute Tribe — in the master bathroom. Officers then located a man, later identified as Burciaga, outside the residence.
As alleged, officers observed a laceration on Burciaga’s hand and rendered first aid, during which Burciaga told officers in sum and substance: “I already know what happened, and I know what I did, which is why I slit my wrist.” After officers bandaged his hand, Burciaga was transported by ambulance to a hospital. While in transit, Burciaga told officers that the victim was pregnant with his child.
If convicted, Burciaga faces a statutory maximum sentenced of life imprisonment. The sentencing of a defendant will be determined by the Court based on the advisory Sentencing Guidelines and other statutory factors.
A complaint contains merely allegations, and every defendant is presumed innocent until and unless proven guilty in a court of law.
The FBI and Pyramid Lake Police Department are investigating the case, which is being prosecuted by Assistant U.S. Attorney Penelope Brady.
In November 2019, the Department of Justice launched the Missing and Murdered Indigenous Persons (MMIP) Initiative, a national strategy to address missing and murdered Native Americans. The MMIP Initiative includes the deployment of the FBI’s most advanced response capabilities when needed, improved data collection and analysis, and training to support local response efforts. The District of Nevada was one of the first 11 U.S. Attorney’s Offices nationwide where an MMIP Coordinator was assigned, working closely with federal, tribal, state and local agencies to develop common protocols and procedure for responding to reports of missing or murdered indigenous people.
U.S. Attorney announces personnel awards, management appointmentsRead the Press Release
COLUMBUS, Ohio – United States Attorney David M. DeVillers announced today his selections for annual awards for outstanding performance, new management appointments, and his district’s recipients of national director’s awards.
“There are so many employees – this year in particular – who are worthy of recognition. A lot of people have stepped up this year and performed their jobs in an extraordinary manner during a challenging time,” U.S. Attorney DeVillers said.
Mr. DeVillers presented seven internal awards.
Senior Litigation Council Douglas W. Squires was awarded Outstanding Performance by an Assistant U.S. Attorney. Mr. Squires was recognized for prosecuting a number of complex cases, including white collar and national security matters.
Outstanding Contribution to the Mission of the U.S. Attorney’s Office was awarded to Elizabeth Rabe, Andrew Hunt, Amy Smith, Ali Gezinski, Cathy Robillard, Leslie Ide and Acquanette Lindsay. The group was recognized for their action in response to the November 2019 shooting death of Dayton Police Detective and DEA Task Force Officer Jorge Del Rio. The U.S. Attorney’s Office is currently prosecuting a number of related cases, and has filed murder, firearms and narcotics charges.
Cathy Robbilard was named as the recipient of the Outstanding Performance in Legal Support award for her work in handling the discovery in a number of murder cases in the Dayton office.
Administrative Officer Jessica Gourley was honored with the Outstanding Performance in Administration award this year. Ms. Gourley has led the district’s administrative team in keeping each of the district’s three offices functioning while safely addressing the Coronavirus pandemic.
Lillian Curtis was awarded Outstanding Performance by a Contract Employee. Ms. Curtis manages GSA requirements and the physical space of the Dayton office, where she primarily serves as the front desk receptionist.
Kevin Koller was recognized for his contributions to the district’s Appellate Division. Mr. Koller was involved in 29 appellate cases in some capacity in 2020, including two published decisions.
John Stark and Angela Trumbauer were recognized for their contributions to the district’s Civil Division, including managing demanding caseloads.
The United States Attorney also announced his appointments for three management positions, to be filled upon the retirement of Civil Chief Mark T. D’Alessandro and Assistant Deputy Criminal Chief Gary Spartis. Mr. D’Alessandro served the U.S. Attorney’s Office for 25 years, and Mr. Spartis for more than 33 years.
“These men are true public servants. They are humble, hard workers who dedicated their careers to the pursuit of justice for the citizens of the Southern District of Ohio,” U.S. Attorney DeVillers said. “Without a doubt, our district is better because of them.”
The new management selections include:
- Civil Chief – Matthew Horwitz,
- Deputy Civil Chief – Andrew M. Malek, and
- Assistant Deputy Criminal Chief – Jessica W. Knight
Mr. Horwitz joined the U.S. Attorney’s Office as a Civil AUSA in December 2012. In May 2014, Matt was designated the District’s Deputy Civil Chief, and he held that position until October 2020, when he became the District’s Civil Chief.
Mr. Malek has served as an Assistant United States Attorney for the Southern District of Ohio since 2002. He has served as the Affirmative Civil Enforcement Coordinator for the District since 2008, was appointed as a Senior Trial Counsel, and previously worked as an AUSA on defensive civil matters.
Ms. Knight joined the Southern District of Ohio as an Assistant United States Attorney in Cincinnati in 2012. She currently serves in the Columbus office and focuses on national security and white collar crime.
Finally, two district employees were selected this year as recipients of the Department of Justice 2020 Director’s Awards by the Executive Office of United States Attorneys in D.C. They include:
- Superior Performance as an Assistant United States Attorney, Appellate – Mary Beth Young
Appellate Chief Young was recognized for successfully handling the appeal in the Columbus office’s Short North Posse prosecution, U.S. v Ledbetter et al. Ms. Young’s appellate work preserved life sentences for five members, including the de facto leader of the violent gang. The combined appeal raised 15 distinct claims.
- Superior Performance in Public Affairs – Jennifer Thornton
Public Affairs Officer Jennifer Thornton was recognized for clearly and accurately coordinating local, national and international media coverage of hundreds of cases and issues in the Southern District of Ohio. This included managing media surrounding cases and events like the United States’ first extradition of an alleged Chinese spy, federal charges arising out of the August 2019 mass shooting in Dayton, a priest from Cincinnati accused of sexually exploiting children in the Philippines, and others.
“I can’t imagine a more difficult time to do our job, and every single person in our district has met the challenge. Even with one arm tied behind our back, we’re working to make a difference and seek justice for the people in the Southern District of Ohio,” DeVillers added.
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U.S. Attorney Stephen J. Cox Warns that the New Vaccine Will Bring New Opportunities for FraudRead the Press Release
BEAUMONT, Texas - With millions of people waiting for their turn to get the new COVID vaccine, it is expected that scammers will use that opportunity to prey on those willing to pay for it.
“Since the beginning of the pandemic, we’ve seen fraudsters taking advantage of public programs and supply shortages – we expect the new vaccine to provide similar platforms for deceit, and we will be ready to prosecute those responsible for vaccine-related fraud to the fullest extent of the law,” said U.S. Attorney Stephen J. Cox.
States will determine how their own vaccination plans will be rolled out but there is not expected to be any out-of-pocket charges during the public health emergency. Nevertheless, the FTC and FBI similarly warn that fraudsters may try to convince people to pay for early access to the vaccine, or to pay for the vaccine itself.
Always be suspicious of unsolicited phone calls, emails, or home visits that ask for payment information in order to receive a vaccine. No one from a vaccine distribution site will ask for your credit card or banking information. If you want to verify whether COVID-19 related solicitations or treatments are legitimate, call your health provider.
Millions of people fall victim to scams every year. If you think you have become a victim, contact the National Center for Disaster Fraud Hotline at 1-866-720-5721 or online at www.justice.gov/coronavirus. You can also submit a report to https://ReportFraud.ftc.gov.
U.S. Attorney Sofer Announces Operation Undaunted in AustinRead the Press Release
With murders in Austin up 55% over the previous year, U.S. Attorney Gregg N. Sofer, joined by dozens of federal, state and local law enforcement officials, announced in Austin today the implementation of Operation Undaunted, a program designed to tackle the rising violent crime rate, interrupt violence, protect innocent life and restore peace to Austin neighborhoods.
“When you defund the police, relax enforcement of existing criminal law, and release repeat offenders and violent criminals into our streets, increased violence is exactly what you can expect,” said U.S. Attorney Sofer. “Despite the challenges of the coronavirus and the unfair vilification of the entire law enforcement community, we remain undaunted in our commitment to protect the residents of central and west Texas.”
Operation Undaunted is a four-prong approach that draws on the partnerships among federal, state and local law enforcement coupled with prosecution authorities to combat violence. The first component is to increase the use and exploitation of the National Integrated Ballistic Information Network (NIBIN) to focus on the most violent offenders in local communities—shooters. Aggressively comparing ballistics evidence gathered from crime scenes as well as from recovered firearms to uncover ties between offenders and violent crimes is of utmost importance. The second component focuses on removing from our communities incorrigible, repeat offenders who fail to rehabilitate; continue to commit violent acts, including domestic violence; and pose a continuing threat and ongoing danger to law-abiding citizens and victims. The third component call for assertive federal prosecution of the most violent and serious robbery cases. Robberies in which a firearm was used, are committed by gang members, cartels or crews, or that involved thefts from gun stores and other federal firearms licensees that span multiple jurisdictions will receive special attention. The fourth component is collaborative engagement with military authorities to investigate and prosecute violent crimes that occur on military bases while adhering to Posse Comitatus.
Operation Undaunted represents federal, state and local law enforcement’s commitment to combat violence and restore peace to central and west Texas communities. “We simply cannot, and will not, stand idly by and watch as violent criminals take over the streets of our communities and harm innocent victims,” said U.S. Attorney Sofer.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Two Men Charged After Fraudulently Applying for Paycheck Protection Program LoansRead the Press Release
Two men were charged this week after fraudulently applying for Paycheck Protection Program (PPP) forgivable loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, announced U.S. Attorney Trent Shores.
Rafael Maturino, 40, of Broken Arrow, was charged with bank fraud after executing a scheme to defraud First Bank of Owasso when applying for a PPP loan under false pretenses on April 28, 2020. Adam Winston James, 44, of Tulsa, was charged with aggravated identity theft after he executed a scheme to defraud Regent Bank when he applied for a PPP loan under false pretenses on May 6, 2020. The two men were charged separately but worked together to carry out their schemes.
“The Paycheck Protection Program was developed to ease the pain of COVID-19 economic restraints on working Americans,” said U.S. Attorney Trent Shores. “It’s shameful to see this type of criminal conduct amid a pandemic when so many of our fellow citizens are struggling. Rest assured, my team is committed to protecting these federal dollars from fraudsters.”
According to court documents, Maturino applied for a PPP loan on behalf of a company he claimed to own and operate, Maturino Enterprises, Inc. Maturino submitted forms that misrepresented the company’s payroll expenditures, amount of taxes paid, and the number of people employed. As a result of his alleged scheme, he received $97, 800 from the bank.
James is alleged to have applied for a PPP loan on behalf of a company he claimed to own and operate, Velocity Innovations LLC. As part of the application, James used the identification of at least seven other people without their knowledge, fraudulently claiming they were employees of Velocity Innovations LLC. James received $125,900 from the bank as a result the scheme.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the Paycheck Protection Program (PPP). In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set period and use a certain percentage of the loan towards payroll expenses.
Alleged violations of federal law must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
The Board of Governors of the Federal Reserve System and Bureau of Consumer Financial Protection Office of Inspector General; Small Business Administration Office of Inspector General; and FBI are the investigative agencies. Assistant U.S. Attorney Victor A.S. Régal is prosecuting the case.
Two Lawrence Brothers Indicted for Trafficking FentanylRead the Press Release
BOSTON – Two brothers were indicted by a federal grand jury this week in connection with conspiring to distribute hundreds of grams of fentanyl in Lawrence.
Jose Manuel Carmona-Mercedes, 30, and Gabriel Carmona-Pimentel, 35, were indicted on charges of conspiracy to distribute 400 grams or more of fentanyl, distribution of fentanyl, and possession with intent to distribute 400 grams or more of fentanyl.
According to charging documents, in late 2019, investigators identified Carmona-Mercedes and Carmona-Pimentel as large-scale fentanyl dealers operating in Lawrence. On four occasions in January and February 2020, an undercover police officer ordered fentanyl from Carmona-Mercedes. After the undercover officer ordered a quantity of fentanyl and negotiated the price, either Carmona-Pimentel or Carmona-Mercedes or both would deliver the fentanyl to the undercover officer from a base of operations on Lexington Street in Lawrence. On Feb. 25, 2020, after Carmona-Pimentel delivered 220 grams of fentanyl to the undercover officer, Carmona-Mercedes and Carmona-Pimentel were arrested. A search of the Lexington Street location resulted in the seizure of 1200 grams of fentanyl, documents in Carmona-Mercedes and Carmona-Pimentel’s names, plastic baggies commonly used to package drugs for street-level sales, blenders, suspected cut and digital scales.
The charge of conspiracy to distribute and possession with intent to distribute 400 grams or more of fentanyl provides for a minimum sentence of 10 years and up to life in prison, at least five years of supervised release and a fine of up to $10 million. The charge of distribution of fentanyl carries a sentence of up to 20 years in prison, at least three years of supervised release and a fine of up to $1 million. 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 Investigations in Boston; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Lawrence Police Chief Roy Vasque; and Essex County District Attorney Jonathan Blodgett made the announcement today. Assistant U.S. Attorney Christopher Pohl of Lelling’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Tulsa Man Sentenced for Fraud Scheme: Broke into Dozens of Vehicles and Stole Purses, Laptops and AmmunitionRead the Press Release
A Tulsa man was sentenced Thursday for various charges brought against him including wire fraud, illegally possessing ammunition, and possessing methamphetamine with intent to distribute, announced U.S. Attorney Trent Shores.
U.S. District Court Judge Gregory K. Frizzell sentenced William Drew Davis, 36, to 66 months in federal prison followed by four years of supervised release. The judge further ordered Davis to pay $51,740.55 in restitution representing the goods obtained by theft and fraud, and damage caused to property.
“William Davis, driven by a longstanding drug habit, pilfered people’s cars to get his hands on anything to make a quick buck,” said U.S. Attorney Trent Shores. “Theft, stolen ammunition, and drugs are a combination that never leads to anything good. The nearly six-year sentence shows that my office will not allow our streets to be polluted with illegal activity, no matter the severity. I want to thank the Tulsa and Jenks Police Departments, in particular, for the extensive work they put into the investigation of Davis’ wide-ranging crimes.”
Previously, Davis pleaded guilty to breaking into a victim’s vehicle and stealing a purse containing a debit card. He further admitted to fraudulently using the card to purchase items from various stores, spending approximately $1,350. Davis also admitted to breaking into a different vehicle and stealing 60 rounds of ammunition, knowing he was a convicted felon. He also pleaded guilty to possessing 130 milligrams of methamphetamine with the intent to distribute it to others.
In sentencing Davis, the Court also considered information concerning over two-dozen vehicle burglaries committed by Davis, in which he typically smashed car windows and grabbed purses, wallets, and other items such as laptops and personal papers, while the victims were dropping children at school, exercising at gyms, or going for a run at parks. Davis then used the stolen credit/debit cards to buy merchandise at stores across the Tulsa area. Davis was arrested by Tulsa Police officers in October 2019 while in possession of a stolen car and dozens of items taken during car burglaries.
The U.S. Secret Service, Tulsa Police Department and Jenks Police Department conducted the investigation. Assistant U.S. Attorney Kevin C. Leitch prosecuted the case.
Tri-State Area Methamphetamine Dealer Sentenced to Federal PrisonRead the Press Release
A Sioux City man who distributed large quantities of methamphetamine in and around the Tri-State area was sentenced today to 10 years in federal prison.
Tyler Hugh Clark, age 39, from Sioux City, Iowa, received the prison term after a February 18, 2020, guilty plea to conspiracy to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime.
In a plea agreement, Clark admitted that between January 2018 and July 30, 2019, he conspired and participated in the distribution of 500 grams or more of pure methamphetamine in and around the Tri-State area. Clark was also in possession a firearm to protect himself, his drug business, and to further his participation in the methamphetamine conspiracy.
Sometime in January or early February of 2019, defendant began getting methamphetamine from Omaha for resale in and around Sioux City. Defendant got approximately 2 pounds of methamphetamine each week for 5 months, until his source of supply was arrested by law enforcement. After that, he found a new source and received about 3 more pounds of methamphetamine to sell. Defendant had over a half-pound of methamphetamine on his motorcycle when he was arrested in July of 2019.
Clark was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Clark was sentenced to 120 months’ imprisonment (60 months’ for conspiracy to distribute methamphetamine and 60 months’ for possession of a firearm in furtherance of a drug trafficking crime). He must also serve a 4-year term of supervised release after the prison term. There is no parole in the federal system.
Clark is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Jack Lammers and investigated by the Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; and the Iowa Division of Narcotics Enforcement. Also involved in this investigation were the Sergeant Bluff Police Department and the Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-4063.
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Toledo woman charged after receiving a package containing a kilogram of fentanylRead the Press Release
U.S. Attorney Justin Herdman announced today that a federal grand jury sitting in Cleveland has returned a two-count indictment charging Erika Vega Ramirez, age 31, of Toledo, Ohio, with conspiracy to possess with the intent to distribute controlled substances and attempted possession with the intent to distribute fentanyl.
“Fentanyl has killed thousands and thousands of Ohioans,” said U.S. Attorney Justin Herdman. “This defendant is alleged to have possessed enough fentanyl to kill 500,000 more. I am grateful for the actions of our law enforcement partners who prevented these deadly drugs from reaching the streets.”
“Battling the distribution of synthetic drugs in the U.S. is one of the Postal Inspection Service’s highest priorities,” said Inspector in Charge Lesley Allison. “This case proves Postal Inspectors and the Drug Enforcement Administration remain steadfast in their partnership to bring those who choose to distribute these illegal and dangerous narcotics to justice. This should serve as an example to criminals dealing in these dangerous and illegal substances that we are unwavering in our mission to identify and disrupt their illegal activity.”
“The defendant in this case had more than a kilogram of fentanyl in her possession — enough to give a deadly dosage to more than 500,000 people,” said DEA Special Agent in Charge Keith Martin. “Working with our federal partners at the U.S. Postal Service, we were no doubt able to save countless lives.”
According to court documents, on or about November 17, 2020, Postal Inspectors with the United States Postal Inspection Service (USPIS) identified a parcel suspected of containing drugs addressed to a residence on E. Broadway St in Toledo, Ohio. On November 18, A canine used to detect narcotics gave a positive alert on the parcel, and a search warrant was obtained. Inside the package, Inspectors discovered that the parcel allegedly contained 1001 grams of fentanyl.
On November 19, 2020, the criminal complaint states that law enforcement agents with the USPIS and Drug Enforcement Agency (DEA) conducted a controlled delivery of the parcel with the fentanyl replaced.
The criminal complaint states that an unidentified female, later identified as the defendant, opened the front door, accepted the parcel and brought it inside the residence. Shortly thereafter, Postal Inspectors and DEA task force officers executed a search warrant and detained the defendant.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendants’ sentences will be determined by the Court after reviewing factors unique to this case, including each defendant’s prior criminal record, if any, each defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum, and in most cases, it will be less than the maximum.
This case was investigated by the United States Postal Inspection Service and Drug Enforcement Agency. This case is being prosecuted by Assistant U.S. Attorney Deyana Unis.
To Combat Highest Level of Violent Crime in City’s History, DOJ Awards $400,000 to Support New Gun Prosecutor in LouisvilleRead the Press Release
LOUISVILLE, Ky. – United States Attorney Russell Coleman is pleased to announce $400,000 in Department of Justice funding to hire a special prosecutor to try federal firearms cases originating in Louisville, Kentucky. The first of its kind award, one of only 13 in the country through DOJ’s Project Guardian, supports violence reduction efforts in Louisville along with the federal carjacking task force, greater ATF and FBI engagement with LMPD, and the roll-out of the Group Violence Intervention (GVI) approach.
“We must bring a sense of urgency to the historic levels of slaughter and wounding that has been 2020 in Louisville, with this innovative new prosecutorial model for targeting trigger pullers doing just that,” said U.S. Attorney Russell Coleman. “Today’s announcement results from a growing partnership with one of our Commonwealth’s most thoughtful and experienced prosecutors, Tom Wine, and allows us to further draw upon the talents of a dedicated public servant like new Special Assistant U.S. Attorney Josh Porter. Lives will be saved because of it.”
“Keeping its citizens safe is the primary responsibility of government,” said Attorney General William P. Barr. “Cities plagued by violent crime need the resources to tackle it, and these grant awards will help do that. On the enforcement side, Real Time Crime Centers will make policing more efficient and targeted; and on the prosecution side, Special Assistant U.S. Attorneys will help bring more federal firearms cases to justice.”
A grant to the Jefferson County Commonwealth’s Attorney’s Office will support the hiring of a full-time local prosecutor who will be empowered to try firearms cases in federal court. Prosecuting gun crimes is central to the Justice Department’s strategy under Operation Legend and other violence reduction initiatives led by the Department. These efforts follow a sustained, systematic and coordinated approach to gun violence in which federal law enforcement agencies work closely with state and local officials to fight violent crime. Funding comes from the Bureau of Justice Assistance, a component of the Justice Department’s Office of Justice Programs.
“Russell Coleman learned of a unique opportunity in the Spring of 2020 to fund a position at his office using a state prosecutor. I was excited by the prospect of the Office of the United States Attorney and the Office of Commonwealth’s Attorney to further collaborate as we deal with the scourge of gun violence and drug trafficking in our community,” said Jefferson Co. Commonwealth’s Attorney Tom Wine. “In June when we learned our offices would be one of only 13 in the United States to be awarded a Project Guardian grant, we immediately sought out applicants for this position.”
In a ceremony today, Assistant Commonwealth’s Attorney Joshua Porter was sworn-in as a Special Assistant United States Attorney. Porter has been employed by the Commonwealth’s Attorney’s Office as an Assistant Commonwealth’s Attorney since 2014. He was promoted to the Deputy Chief of the Narcotics Division in 2018. Porter previously served in the United States Army as an Armored Cavalry Officer serving two combat tours in Iraq. He was awarded a bronze star and purple heart.
“Josh has already served our county and community on numerous levels,” Wine continued. “His service in the United States Army as an Armored Cavalry Officer included two combat tours in Iraq, where he was twice recognized for his bravery. Upon returning to civilian life he enrolled at the Brandeis School of Law. His achievements in law school included the Robert W. Zollinger Award, named for an outstanding prosecutor who served in our office in the 1960’s and 70’s. After law school, Josh worked at the office of the Jefferson County Attorney. Since October 2014 he has worked at our office and has served as the deputy division chief of the Narcotics Unit.
“While we will continue to pursue alternatives of treatment for those addicted to drugs, those who use guns and violence to perpetuate their drug trafficking must be swiftly and strongly prosecuted,” Wine said. “This enhanced collaborative effort will help us identify the offenders that are driving violent crime rates in the most violent areas of Metro Louisville. It will ensure prosecution of those offenders in the federal courts. Our Commonwealth’s prosecutors will identify those qualifying offenders for Josh and the other Assistant United States Attorneys and our federal law enforcement partners such as ATF. I am grateful for the continuing efforts of our federal, state, and local law enforcement partners to protect our citizens and make the best use of our resources.”
“This Justice Department award will go a long way toward combatting the recent, and unacceptable increase in violent crime across Metro Louisville,” stated ATF Special Agent in Charge R. Shawn Morrow of the Louisville Field Division. “ATF looks forward to the addition of a special prosecutor in our mission to reduce gun violence in our communities. Arresting and successfully prosecuting these armed violent offenders and their sources, is a shared commitment with local, state, and federal law enforcement.”
Project Guardian is a nationwide program launched in November 2019 by Attorney General William Barr as a complementary effort to the Project Safe Neighborhoods Program (PSN). Project Guardian uses existing gun laws to comprehensively attack gun violence through the aggressive enforcement of existing laws in an effort to incapacitate the most dangerous and violent offenders.
Three Men Convicted for Roles in 2018 Fairfax MurderRead the Press Release
ALEXANDRIA, Va. – Three Virginia men have pleaded guilty to their respective roles in drug-related murder in 2018 in Fairfax.
Charles Anthony Forbes, 30, of Reston, pleaded guilty today to using a firearm to commit a drug-related murder. In March, Fredy Fabian Alfaro, 36, of Reston, and Jimmie Marcel McCray, 36, of Sterling, pleaded guilty to aiding and abetting the murder, and to conspiring to distribute marijuana.
According to court documents, from January through April of 2018, Alfaro had conspired with the victim, Michael Cooker, and others to ship marijuana from California and sell it in Northern Virginia. In April 2018, Alfaro and Cooker had a dispute over the conspiracy’s profits. On the night of April 17, 2018, Alfaro and Cooker continued their dispute through a series of electronic phone messages. In the early morning of April 18, 2018, Alfaro called McCray and offered him compensation to physically harm Cooker. Alfaro’s motive was his dispute with Cooker over the drug conspiracy. McCray then contacted Forbes and told him that Alfaro had offered remuneration to physically harm Cooker.
Around this same time, Cooker, McCray, Forbes, and another individual had been spending time together in Herndon. Around 6 a.m. on April 18, 2019, Cooker, McCray, Forbes, and the other individual drove in two separate vehicles to Chantilly. There, McCray provided Forbes with a Smith & Wesson revolver. Forbes and Cooker then left the area in one of the vehicles. Forbes drove Cooker to a wooded road in Fairfax Station. Around 6:30 a.m., Forbes pulled over to the side of the road and shot Cooker twice in the head, killing him. Forbes drove away, leaving Cooker’s body there.
On November 6, Alfaro was sentenced to a total of 21 years in prison, and McCray was sentenced to 20 years in prison. Forbes faces a maximum term of life in prison when he is sentenced on April 9, 2021.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; James A. Dawson, Special Agent in Charge of the FBI’s Washington Field Office Criminal Division; Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police, made the announcement after sentencing by Senior U.S. District Judge T.S. Ellis, III.
Assistant U.S. Attorneys Michael P. Ben’Ary, Marc J. Birnbaum, and Rachael C. Tucker are prosecuting the case.
This case was investigated by the Fairfax County Police Department, in partnership with the FBI, Washington Field Office’s Northern Virginia Violent Crime Task Force. The task force, consisting of FBI Agents and Task Force Officers from Northern Virginia law enforcement departments, work to investigate, identify and seek prosecution against the most violent and egregious offenders in the region.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-260.
Threat Caller Sentenced to A Year in PrisonRead the Press Release
Martin Osborn threatened to assault Representative Henry “Hank” Johnson of Atlanta
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced that Martin Dale Osborn, 60 years old, of Bangor, was sentenced today to a year and a day in prison by U.S. District Judge Paul L. Maloney. Osborn pled guilty in August to threatening a federal official. Upon his release, Osborn will be supervised by the U.S. Probation Office for 3 years.
In June 2020, Osborn left a voicemail for Rep. Johnson, who represents Atlanta’s 4th Congressional District. Osborn stated, “One day you are going to see me. It’ll be about two o'clock in the morning. I'll be at your bedside and all you're going to see is me knocking the living shit out of you … terrified? You should be.” Osborn referred to Rep. Johnson, who is Black, as “boy,” and specifically linked his threat to the Congressman’s sponsorship of a gun control bill. As a result of the conviction, Osborn will be permanently barred from possessing firearms.
Judge Maloney emphasized the need to deter others from committing similar crimes, which divert scarce law enforcement resources. He warned, “Those who [make such threats] must understand the likelihood that they’re going to serve some time in incarceration is significant.”
“Every American has the right to express his or her opinion, but no one has the right to threaten another with violence.” said U.S. Attorney Birge. “Every threat will be taken seriously, and result in serious consequences.”
This investigation was a joint effort of the FBI and the U.S. Capitol Police.
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Texas Heart Hospital and Wholly-Owned Subsidiary THHBP Management Company LLC to Pay $48 Million to Settle False Claims Act Allegations Related to Alleged KickbacksRead the Press Release
Texas Heart Hospital of the Southwest LLP, a partially physician-owned hospital in Plano, Texas, and its wholly owned subsidiary, THHBP Management Company, LLC (collectively, the “Heart Hospital”) have agreed to pay the United States $48 million to resolve claims that the Heart Hospital violated the False Claims Act by knowingly submitting claims to the Medicare program that resulted from violations of the Physician Self-Referral Law and the Anti‑Kickback Statute, the Justice Department announced today.
The Physician Self‑Referral Law, commonly known as the Stark Law, prohibits a hospital from billing Medicare for certain services referred by physicians with whom the hospital has a financial relationship, unless that relationship satisfies one of the law’s statutory or regulatory exceptions. The Anti‑Kickback Statute prohibits offering or paying remuneration to induce the referral of items or services covered by Medicare, Medicaid, and other federally funded programs. Both the Stark Law and the Anti-Kickback Statute are intended to ensure that medical judgments are not compromised by improper financial inducements.
“Inappropriate financial relationships between health care providers and their referral sources can distort physician decision-making and drive up health care costs for everybody,” said Acting Assistant Attorney General Jeffrey Bossert Clark of the Department of Justice’s Civil Division. “The department remains committed to ensuring that physicians act in the best interests of their patients rather than their pocketbooks.”
“Although the business of healthcare continues to evolve, our mission remains the same—to ensure that medical decision making is based on patient care and free of influence by financial consideration,” said Stephen J. Cox, United States Attorney for the Eastern District of Texas. “We commend the whistleblowers and their counsel for uncovering this arrangement and pursuing the case to a point where Defendants and the United States were able to reach a resolution that both protects the taxpayer and ensures patient care, free from financial influence.”
The settlement announced today resolves allegations that the Heart Hospital violated the Stark Law and the Anti-Kickback Statute by requiring physician owners to satisfy the Heart Hospital’s yearly 48 patient-contact requirement in order to maintain ownership in the hospital.
This settlement arises from a lawsuit filed by former Heart Hospital physician owners Mitchell Magee, M.D. and Todd Dewey, M.D. pursuant to the whistleblower or qui tam provisions of the False Claims Act, which permit private persons to bring a lawsuit on behalf of the government and to share in the proceeds. Under the Act, the United States may intervene in such an action or permit the whistleblower to pursue it. Although the Unites States declined to intervene in this case, it played a primary role in the discussions that led to the settlement. Dr. Dewey and Dr. Magee will collectively receive $13,920,000 as their share of the recovery.
This matter was handled on behalf of the government by the Justice Department’s Civil Division, the U.S. Attorney’s Office for the Eastern District of Texas, and the Department of Health and Human Services Office of the Inspector General.
The case is captioned United States ex rel. Mitchell J. Magee and Todd M. Dewey v. Texas Heart Hospital of the Southwest, L.L.P., et al., Case No. 4:16-CV-00717-ALM (E.D. Tex.). The claims resolved by this settlement are allegations only and there has been no determination of liability.
Tallahassee Doctor Pleads Guilty to Defrauding Health Insurance Providers of $29 Million and Performing Unnecessary Invasive Surgical Procedures on Hundreds of PatientsRead the Press Release
TALLAHASSEE, FLORIDA – Dr. Moses de-Graft Johnson, a dual citizen of the United States and Ghana, pled guilty today to committing health care fraud, conspiracy to commit health care fraud, and aggravated identity theft. Lawrence Keefe, United States Attorney for the Northern District of Florida, announced the plea.
Over the course of almost four years, beginning in late 2015 or early 2016 until his arrest in February 2020, deGraft-Johnson did significant harm to hundreds of patients living in the Tallahassee area. Many of these innocent victims underwent unnecessary and invasive surgical procedures, while others were victimized through medical records reflecting procedures he did not perform – erroneous and misleading records that could cause doctors in the future to determine a mistaken course of medical treatment for many patients.
“The United States will continue to work to recover the ill-gotten gains of de-Graft-Johnson’s criminal behavior, to identify information that will help his victims correct their important medical records, and to identify how he gained access to his victims so we can make sure nothing like it ever happens again,” said U.S. Attorney Keefe.
deGraft-Johnson, 46, owned and operated Thorvasc PA, a Florida corporation doing business as the Heart and Vascular Institute of North Florida (HVINF). HVINF was a physician’s office and outpatient catheterization laboratory located in Tallahassee. As part of his plea, deGraft-Johnson acknowledged engaging in a wide-ranging and consistent pattern of performing two invasive diagnostic angiography procedures - one on each leg - on hundreds of his patients, whether medically indicated or not. When his patients returned for follow-up office visits, deGraft-Johnson submitted fraudulent claims to their insurance companies stating he performed athrectomies during the appointments. Using this scheme, deGraft-Johnson admits he falsely claimed to have performed over 3,000 of these surgical procedures to clear blockages in arteries in as many as 845 of his patients’ legs.
“deGraft-Johnson’s unscrupulous behavior placed the lives of his many patients at risk while siphoning funds from vital health care programs for personal gain,” said Omar Pérez Aybar, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “We will continue to work with our law enforcement partners to hold accountable health care professionals who prioritize greed over critical patient care.”
To date, ongoing investigation and analysis have determined that the defendant fraudulently obtained at least $29 million – and very likely more. The United States is aggressively pursuing all of deGraft-Johnson’s forfeitable assets in the U.S. and overseas, including luxury vehicles; jewelry; homes in Manhattan, Southampton, New York, Miami, and the Houston area; and more than $1 million in cash.
“Health care fraud hurts all Floridians by artificially inflating the cost of medical services and harming the integrity of private insurance,” said Florida Attorney General Ashley Moody. I am proud of the work my Medicaid Fraud Control Unit did in helping bring the defendant in this multimillion dollar health care fraud case to justice. We will continue to work with our great federal partners to identify, investigate and end health care fraud in Florida.”
deGraft-Johnson inappropriately gained access to his vulnerable victims by establishing relationships with churches, nursing homes, a hospital, and an outreach organization. The United States Attorney’s Office is working to uncover all aspects of the methods he used to identify and exploit his former patients, many of them in underserved communities. Prosecutors are also pursuing information regarding the unnecessary medical procedures and falsified medical records, so that the defendant’s former patients may be properly informed regarding their true medical conditions and can secure appropriate treatment going forward.
“Today’s plea is a direct result of the commitment by the FBI and our law enforcement partners to aggressively pursue those who willingly defraud American citizens,” said Rachel L. Rojas, Special Agent in Charge of the FBI Jacksonville Division. “Instead of caring for his patients, this defendant targeted vulnerable members of our community, subjected them to unnecessary surgical procedures, and falsified documents so he could line his pockets with millions of taxpayer dollars. Fraud, like this, reduces the availability of critical resources and contributes to the rising cost of healthcare for all. The FBI and our law enforcement partners will continue to investigate these crimes and prosecute all those who defraud the American public for their own personal gain."
deGraft-Johnson pled guilty to 56 counts of health care fraud, conspiracy to commit health care fraud, and aggravated identity theft. The conspiracy and health care fraud charges each have a maximum prison sentence of 10 years, and a maximum fine equal to twice the value of the loss to the health care benefit program. The aggravated identity theft charge has a mandatory sentence of 2 years of imprisonment, which must be consecutive to any other sentence, and a maximum fine of $250,000. deGraft-Johnson’s sentencing hearing is scheduled for April 8, 2021, at the United States District Court in Tallahassee.
This case is the result of the collaborative work of the U.S. Department of Health and Human Services, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Department of Commerce, the Internal Revenue Service, and the Florida Attorney General. The case is being prosecuted by Assistant United States Attorney Andrew J. Grogan.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the U.S. Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Press Release - U.S. v. deGraft-JohnsonSt. Louis County armed drug dealer pleads guilty to several drug and firearms chargesRead the Press Release
ST. LOUIS, MO – United States District Judge John A. Ross accepted a plea, today, from Lemartrell Smith. The 26-year-old St. Louis, Missouri resident pleaded guilty to two counts of being in possession of a controlled substance with intent to distribute, one count of being in possession of a firearm in furtherance of drug trafficking crime and one count being a felon in possession of a firearm.
According to a plea agreement, on or about February 28, 2018, St. Louis County Police received information Smith was selling drugs in the parking lot of a bowling alley and armed with a gun. Officers pulled up to Smith’s vehicle to investigate but could not see inside due to the dark window tint. Smith refused to open the car door, so police smashed the window and removed Smith. Officers noticed from the center console, in plain view, a handgun with an extended magazine. Officers also seized 18 grams of fentanyl.
On or about March 13, 2019, St. Louis County Police learned Smith was selling fentanyl. Using an undercover detective, investigators placed a call to Smith and arranged to buy $60 worth of fentanyl. Smith instructed the undercover detective to meet at a specific location. Smith met the undercover detective, reached into a leather satchel and removed 12 capsules. Smith exchanged the capsules for $60 and drove away.
As officers attempted a traffic stop, Smith ignored all commands to pull over and started to speed away. Smith continued to evade police even after driving over a spike strip. Smith crossed into an opposite lane of traffic at a high rate of speed and crashed into another vehicle. The driver was seriously injured. Officers arrested Smith.
Officers seized the satchel and found a Glock and a loaded pistol with one round inside the chamber. Officers searched Smith’s vehicle and seized $2,870 in U.S. currency, another pistol, the $60 used by the undercover detective, five cell phones and 10.34 grams of fentanyl.
Each charge of being in possession of a controlled substance with the intent to distribute carries a penalty of no more than 20 years in prison and a fine of no more than $1,000,000. The charge of being in possession of a firearm in furtherance of a drug trafficking crime carries a penalty of no less than five years in prison and a fine of no more than $250,000. The charge of being a felon in possession of a firearm carries a penalty of no more than 10 years in prison and a fine of not more than $250,000.
Judge Ross has set sentencing for April 9, 2021.
The St. Louis County Police Department and Federal Bureau of Investigation investigated this case. Assistant United States Attorney Paul D'Agrosa is handling the case.
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South Beloit Man Sentenced to 26 Years in Prison for Producing Child PornographyRead the Press Release
ROCKFORD — A South Beloit man has been sentenced to 26 years in federal prison, to be followed by a lifetime of supervised release, on charges of producing child pornography.
ADRIAN C. PETERS, 27, pleaded guilty to the charges on Dec. 12, 2019. Peters admitted in a written plea agreement that from 2012 to 2014 he enticed seven minor victims, ranging in age from 14 to 17, to engage in sexually explicit conduct for the purpose of producing a recording on computers. Peters then transmitted some of the videos via the internet. The minor victims were from Illinois, Wisconsin, and Arizona.
U.S. District Judge Matthew F. Kennelly imposed the sentence Thursday in federal cout in Rockford.
The sentencing was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The Winnebago County Sheriff’s Office and the South Beloit Police Department assisted in the investigation. The government was represented by Assistant U.S. Attorney Michael D. Love.
Skowhegan Man Pleads Guilty to Child Exploitation CrimesRead the Press Release
BANGOR, Maine: A Skowhegan man pleaded guilty today in federal court to a 41-count indictment charging a series of child sexual exploitation offenses, U.S. Attorney Halsey B. Frank announced.
According to court records, between about January 2018 and October 2019, Christopher Raiche, 29, produced sexually explicit photographs of multiple children under the age of nine. He also possessed child pornography on his phone and in an online account. He used this online account to solicit and trade child pornography with others on the internet. Part of this activity included sending “links” to an online storage account containing part of his collection of child pornographic material.
Raiche faces up to 30 years in prison on each of four counts of sexual exploitation of children, and up to 20 years in prison on each of the remaining 37 counts alleging receipt, transportation, possession, solicitation and advertising of child pornography. He will also be subject to a fine of up to $250,000 for each count. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
Homeland Security Investigations and the Maine State Police Computer Crimes Unit investigated this case. The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
San Gabriel Valley Man Admits to Cyberstalking Two Teenage GirlsRead the Press Release
LOS ANGELES – A Covina man pleaded guilty today to federal cyberstalking charges for his multiyear internet harassment campaign against two teenage girls who rejected his sexual advances.
Carl De Vera Bennington, 34, pleaded guilty via videoconference to two counts of cyberstalking.
According to his plea agreement, Bennington repeatedly sent one victim unsolicited online messages over a period of several years. When she blocked him from contacting her from one of her online accounts, Bennington created new online accounts and then continued sending her messages, including graphic messages between June and November 2019 in which he insulted the victim, demanded she engage in sex acts with him, and threatened to sexually assault her. When the victim demanded that Bennington stop harassing her, he threatened to kill her and her family.
Bennington also admitted to harassing another victim, who deactivated her social media accounts in 2017 after he solicited her to engage in a sexual relationship with him. In August 2019, after she reactivated her social media accounts, Bennington sent her numerous online messages threatening to kill her unless she responded to his demands for sex acts.
Neither victim ever met Bennington in person, according to an affidavit filed with a criminal complaint in this case. According to the complaint, Bennington frequently promoted incel (involuntarily celibate) ideology, which involves individuals who are unable to find a willing sex partner and promotes the view that women oppress men and have too much freedom to choose their own sexual partners. The ideology ranges in tone from expressing sadness and self-loathing to advocating the “absolute hatred” of women, according to court documents.
United States District Judge Dolly M. Gee has scheduled an April 14, 2021 sentencing hearing, at which time Bennington will face a statutory maximum sentence of 10 years in federal prison.
The FBI’s Joint Terrorism Task Force investigated this matter.
Assistant United States Attorney David T. Ryan of the Terrorism and Export Crimes Section is prosecuting this case.
Rogersville Man Pleads Guilty to Firearm PossessionRead the Press Release
GREENEVILLE, Tenn. – On December 17, 2020, Thomas Ray Harris, 41, of Rogersville, also known as “Tommy Gun,” entered a guilty plea before U.S. District Judge Clifton L. Corker in Greeneville.
Harris was charged with felony possession of a firearm after being convicted of an offense punishable by a term of imprisonment exceeding one year (felon in possession of a firearm). The six-count indictment charged Harris and his co-defendant, Amanda Dawn Massengill, 34, of Rogersville, with several firearms and narcotics offenses.
The co-defendant, Amanda Massengill, previously entered a guilty plea to Count One, which charges that she possessed more than five (5) grams of methamphetamine with the intent to distribute it. Massengill is also pending sentencing before Judge Corker.
The investigation was conducted by the Hamblen County Sheriff’s Office. As a part of his plea agreement, Harris agreed to a sentence of 192 months of imprisonment followed by a 5-year term of supervised release should the Court determine that he is an Armed Career Criminal.
Assistant U.S. Attorney B. Todd Martin represented the United States in court.
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Rochester Man Pleads Guilty to Sex Trafficking MinorsRead 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 Marcus Brown, 25, of Rochester, NY, pleaded guilty before U.S. District Judge Charles J. Siragusa to two counts of sex trafficking of minors. The charge carries a mandatory minimum penalty of 10 years in prison and a maximum of life.
Assistant U.S. Attorneys Melissa Marangola and Meghan McGuire, who handled the case, stated that in 2015, the defendant ran a sex trafficking operation with co-defendant, Ray Davis. Brown and Davis preyed upon and exploited teenagers who were homeless and vulnerable, coercing them to engage in commercial sex acts. Davis and Brown worked together to take sexually explicit photos of the minor victims and post them on Backpage.com, an online classified advertisement website that was previously shut down by the Department of Justice.
Defendant Davis was convicted by a federal jury and sentenced to serve 25 years in prison. Brown is scheduled to be sentenced on January 20, 2021, at 10:00 a.m. before Judge Siragusa.
The plea is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly, and the Federal Bureau of Investigation, Child Exploitation Task Force, under the direction of Special Agent-in-Charge Stephen Belongia.
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Rochester Felon Sentenced for Possessing A GunRead 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 Freddy Moore, 31, of Rochester, NY, who was convicted of being a felon in possession of a firearm and ammunition, was sentenced to serve 66 months in prison by U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Katelyn Hartford, who handled the case, stated that the defendant was arrested on August 28, 2019, after New York State Parole officers searched his residence on Central Park in Rochester. During that search, officers found a loaded semiautomatic pistol as well as quantities of fentanyl and cocaine.
Moore was previously convicted in August of 2009 in Monroe County Court of Robbery in the First Degree and sentenced to serve eight years in prison. In October 2014, the defendant was convicted in Erie County Court of Attempted Assault in the Second Degree and sentenced to serve up to three years in prison. As a result of his prior convictions, Moore was legally prohibited from possessing a firearm and ammunition.
The sentencing is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division; the Rochester Police Department, under the direction of Chief Cynthia Herriott-Sullivan; and the New York State Department of Corrections and Community Supervision, under the direction of under the direction of Acting Commissioner Anthony J. Annucci.
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Quincy Man Pleads Guilty to COVID-19 Related OffenseRead the Press Release
BOSTON – A Quincy man pleaded guilty yesterday in federal court in Boston in connection with selling a lanyard that falsely claimed to protect against viruses.
Jiule Lin, 38, pleaded guilty to an Information charging him with one count of distribution and sale of an unregistered pesticide. A sentencing date has not yet been scheduled by the court.
“At the height of a raging pandemic killing thousands of people a day, this defendant tried to profit from conning people into believing that a pesticide-coated lanyard would protect them from viruses like COVID-19. This was dangerous, opportunistic fraud,” said United States Attorney Andrew E. Lelling. “We will always pursue these kinds of cases - I have zero tolerance for people who take advantage of the fears of others during a national health crisis.”
“Bogus claims by sellers claiming to offer products that control viruses continues to pose a risk to consumers nationwide,” said Tyler Amon, Special Agent in Charge for U.S. Environmental Protection Agency (EPA) Criminal Investigation Division for New England. “EPA and our law enforcement partners will continue to focus efforts on stopping the sale of these illegal products. Consumers can help protect themselves by visiting epa.gov/coronavirus for a list of EPA approved disinfectant products.”
Beginning in March and April 2020, Lin listed for sale on eBay an unregistered pesticide, “Toamit Virus Shut Out,” to buyers across the United States. Based on Lin’s eBay listing, the pesticide took the form of a card-shaped device to be worn as a lanyard around the user’s neck. The eBay listing depicted the removal of germs or viruses through the wearing of the device. Other online listings for the same product included the explicit claim that the product would protect the buyer or wearer of the product from viruses or bacteria, stating that the product’s main ingredient was chlorine dioxide and showed images of the device’s purported removal of bacteria, germs and viruses.
Under the Federal Insecticide, Fungicide and Rodenticide Act (FIFRA), the EPA regulates the production, sale, distribution and use of pesticides in the United States. A pesticide is any substance intended for preventing, destroying, repelling, or mitigating any pest, including viruses. Pesticides must be registered with the EPA. Toamit Virus Shut Out was not registered, and it is illegal to distribute or sell unregistered pesticides.
“HSI remains committed to investigating individuals and companies who seek to exploit our citizens through criminal means. Fraudulent schemes that have an effect on the health and safety of the public, especially during a national pandemic, are deplorable,” said David Magdycz, Acting Special Agent in Charge, Homeland Security Investigations (HSI), Boston. “Comprising legitimate trade and endangering American citizens is a serious offense. HSI will continue to work hand in hand with our federal partners and the United States Attorney’s Office to pursue this criminal activity.”
The charging statute provides for a sentence of up to one year in prison and a fine of $25,000. Sentences are imposed by a federal judge based on the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Lelling; Boston EPA-CID SAC Amon; Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; HSI Boston Acting SAC Magdycz; Jeffrey Ebersole, Special Agent in Charge of the U.S. Food and Drug Administration, Office of Criminal Investigation, New York Field Office; and Quincy Police Chief Paul Keenan made the announcement. Assistant U.S. Attorney Adam Deitch of Lelling’s Major Crimes Unit is prosecuting the case.
Pilot Project Launched to Address Missing and Murdered Indigenous PersonsRead the Press Release
The project members are assisting in the development of initial response plans to detail how tribal communities can best respond to reports of missing persons.
GRAND RAPIDS, MICHIGAN—Federal, State, Local and Tribal leaders jointly announced Michigan’s own Missing and Murdered Indigenous Persons pilot project today. United States Attorneys Andrew Birge and Matthew Schneider were joined by Bryan Newland, President of the Bay Mills Indian Community, Dr. Aaron Payment, Tribal Chairperson of the Sault Ste. Marie Tribe of Chippewa Indians, Timothy Waters, Special Agent in Charge of the Detroit Field Division of the FBI, Col. Joe Gasper, Director of the Michigan State Police, Matthew Saxton, Executive Director of the Michigan Sheriff’s Association, Robert Stevenson, Executive Director of Michigan Association of Chiefs of Police, along with partnering Officials with the United States Marshals Service and the Bureau of Indian Affairs in making the announcement.
Members of the pilot project began meeting in late October, taking the first steps toward establishing the first tribal community response plans for missing indigenous persons cases. The plans will improve the handling of emergent missing person cases by outlining how Tribal governments, law enforcement, and other partners can best work together to respond to such cases. The plans address four core components of a proper response to a missing persons case: law enforcement, victim services, community outreach and public communications.
“Given that there are 12 Tribal communities in Michigan, and many more Tribal members living throughout the state, we adopted a pilot-program approach to help identify issues and establish initial response plans that can be shared with communities throughout the state,” explained U.S. Attorney Birge. “I am impressed with how federal, state, local and Tribal law enforcement as well as Tribal leaders are embracing the effort and progressing in an open and collaborative fashion,” he added. U.S. Attorney Schneider explained that “Everyone recognizes the sensitivity and importance of these cases and realizes that, in Michigan in particular, multiple agencies and jurisdictions must work together.”
“Bay Mills is excited to collaborate with the United States and our fellow tribes on protecting women and vulnerable people in our communities,” said Bryan Newland, President of the Bay Mills Indian Community. “For too long, we have allowed the problem of violence against Indian women and vulnerable people to fester. This initiative will start the healing process and ensure that our people receive the protections they deserve.”
Dr. Aaron Payment, Tribal Chairperson of the Sault Ste. Marie Tribe of Chippewa Indians, noted: “In 2016, according to the CDC, homicide was the third leading cause of death for Native women and girls between the ages 1-19 and sixth leading cause of death for ages 20-44. Time is of essence as the first 72 hours after an individual goes missing are the most crucial according to National Indigenous Women’s Resource Center. The Sault Tribe and Bay Mills have pioneered capacity building in our respective judicial systems including state certification of tribal law enforcement officers, enhancing our tribal courts, and expanding jurisdiction under the Tribal Law and Order Act and the Violence Against Women Act. We have long had mutual aid law enforcement agreements to ensure there are no holes in coverage and jurisdiction. After 9/11, we worked as a unified team to ensure public safety including comprehensive table-top exercises. I envision our collaboration around MMIP to be a similar critical incident exercise and relationship to deal with what is emerging as an epidemic of missing and murdered indigenous people.”
“The FBI will continue to partner with state, local and tribal law enforcement agencies to combat violent crime and create safer communities for the indigenous people in Michigan,” said Timothy Waters, Special Agent in Charge of the FBI in Michigan. “We are prepared to surge investigative capacity, provide specialized skills and training, perform data analysis, or deploy national assets in our effort to provide justice for families mourning a murder victim and assistance to communities searching for a missing friend or neighbor.”
“It is critically important that all law enforcement agencies work closely together,” said Matthew Saxton, Executive Director of the Michigan Sheriff’s Association. “We are fully supportive of agencies assisting each other with whatever capabilities they may have – especially in the event of a reported missing child or adult under suspicious circumstances. This initiative is a great way to help identify and organize the resources and capabilities of our law enforcement agencies and their capabilities throughout the State of Michigan.”
Michigan is among the first of six pilot-program states developing community response plans, in accordance with the U.S. Attorney General’s Missing and Murdered Indigenous Persons Initiative and the President’s Operation Lady Justice Task Force. Importantly, these plans likewise further the goals of the recent Savanna’s Act legislation. The other states are Oklahoma, Montana, Minnesota, Alaska and Oregon.
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Pharmacist Pleads Guilty to Federal Charge of Murder for Hire—Previously Pleaded Guilty to Federal Drug Distribution ConspiracyRead the Press Release
Baltimore, Maryland – David Robinson, age 51, of Baltimore, Maryland, pleaded guilty on December 17, 2020, to a federal charge of murder for hire. Robinson, formerly a licensed pharmacist who owned and operated the Frankford Family Pharmacy, pleaded guilty on October 10, 2018, to a federal drug conspiracy involving the distribution of oxycodone and alprazolam outside the scope of professional practice and not for a legitimate medical purpose. Robinson admitted that he ordered a “hit” on the person he believed had cooperated with law enforcement that led to his indictment on those charges. Robinson’s pharmacist license was suspended on August 7, 2017.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration, Baltimore District Office; and Commissioner Michael Harrison of the Baltimore Police Department.
“We have zero tolerance for any effort to intimidate or retaliate against witnesses,” said U.S. Attorney Robert K. Hur. “Those who attempt to tamper with or retaliate against a federal witness will be brought to justice.”
According to Robinson’s plea agreement, from January 2016 to July 2016, law enforcement used a confidential source, CS-1, to make several controlled purchases of oxycodone and alprazolam from Robinson at his pharmacy located in the 5400 block of Sinclair Lane in Baltimore. On June 22, 2017, a federal grand jury in Maryland indicted Robinson for a drug conspiracy involving the distribution of oxycodone and alprazolam. Robinson was arrested on June 27, 2017 and was released from custody on June 29, 2017, under the supervision of U.S. Pretrial Services. On October 10, 2018, Robinson pled guilty to one count of conspiracy to distribute and possess with intent to distribute oxycodone and alprazolam and one count of distribution and possession with intent to distribute oxycodone and alprazolam. Robinson was continued on conditions of release until his sentencing, scheduled for February 15, 2019.
On October 27, 2018, the Baltimore City’s Citi-Watch camera system captured a drug transaction, which led to the arrest of an individual, CS-2. A search of CS-2’s vehicle resulted in the recovery of two shoeboxes containing a total of 35 stock pharmacy bottles of the prescription medications promethazine and clonidine.
CS-2 had obtained the prescription medications from David Robinson. CS-2 had known Robinson for approximately three years, and had previously purchased oxycodone, Xanax, clonidine, and promethazine from Robinson at the Frankford Family Pharmacy. After the search warrant was executed at Robinson’s pharmacy on June 27, 2017, Robinson began providing CS-2 with case lots of boxes of medications in exchange for cash and no prescription was required. Robinson continued to sell promethazine and clonidine and six months after the raid, Robinson was still ordering pills from his vendors.
As detailed in his plea agreement, following his arrest in 2017, Robinson told CS-2 about an individual that Robinson believed had cooperated with law enforcement and led to his arrest (i.e., CS-1). CS-2 and Robinson had a discussion about CS-1 being killed. After some time, the two agreed to have CS-1 killed. Robinson provided CS-2 with some information about CS-1. CS-2 told Robinson that he/she knew someone that could do a “hit” on CS-1. CS-2 told Robinson that the fee would be $5,000 up front and $5,000 when CS-l was killed.
Robinson admitted that from December 13, 2018 through February 7, 2019, CS-2 made three controlled purchases of drugs from Robinson, at the direction of law enforcement, using cash provided by DEA agents. CS-2 purchased a total of 118 stock pharmacy bottles of clonidine, each containing 100 tablets; and 24 stock pharmacy bottles of 50 mg promethazine tablets, with each bottle containing 100 tablets. Robinson did not request, nor did CS-2 provide, a prescription for any of the drugs.
During a controlled purchase on January 24, 2019, CS-2 and Robinson discussed the murder of CS-1 (which was audio-recorded). During this conversation, they discussed a $5,000 fee that had already been paid to the hitman, and that an associate of the hitman had information about the location of CS-1. The associate wanted an additional $3,000 to be paid to him/her in order to provide CS-1’s location to the hitman. Robinson was upset over this additional fee required to identify the location and accomplish the murder of CS-1 and did not agree to pay the additional fee. On February 4, 2019, CS-2 sent a text message (using his cell phone) to Robinson (at his cell phone) advising that he had provided the additional $3,000 in order to obtain CS-1’s address.
On February 14, 2019, CS-2 called Robinson and told Robinson that the murder was done and that the hitman would want his money. CS-2 then met with Robinson, who provided CS-2 with $2,000. CS-2 put the cash in his pocket and Robinson asked CS-2 for proof that the murder had been completed. CS-2 showed Robinson several fake photos in which it appeared that CS-l had been bound with zip ties, shot several times, and killed. After the meeting, law enforcement arrested Robinson and CS-2.
Robinson and the government have agreed that, if the Court accepts the plea, Robinson will be sentenced to 10 years in federal prison, consecutive to any sentence imposed in the drug conspiracy case. U.S. District Judge George L. Russell, III has scheduled sentencing for both of Robinson’s cases on March 4, 2021, at 10:00 a.m.
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.
United States Attorney Robert K. Hur commended the DEA and the Baltimore Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Kenneth S. Clark and Samika N. Boyd, who are prosecuting the case.
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Ontario Company Pleads Guilty to Dumping Waste Water into Lake Ontario Violating the Clean Water ActRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that the Algoma Central Corporation, headquartered in St. Catharines, Ontario, Canada, pleaded guilty before U.S. Magistrate Judge H. Kenneth Schroeder, Jr. to a negligent violation of the Clean Water Act and will face a significant fine.
“The Great Lakes represent one of the most valuable resources in our region,” noted U.S. Attorney Kennedy. “This Office and our law enforcement officers will not hesitate to act to protect our natural resources and our environment from those who harm them.”
Assistant U.S. Attorney Aaron J. Mango and Trial Attorney Patrick Duggan of the Department of Justice Environmental Crimes Section, who are handling the case, the case, stated that the Algoma Central Corporation operated a fleet of dry and liquid bulk carriers operating on the Great Lakes. One of the vessels in the defendant’s fleet was the M/V Algoma Strongfield (Strongfield). Built in China, the Strongfield was delivered to Canada on May 30, 2017, by a crew from Redwise Maritime Services, B.V. (Redwise), a vessel transport company based in the Netherlands.
During the Strongfield’s delivery voyage, while manned by a Redwise crew, the oily water separator and oil content monitor malfunctioned or failed on multiple occasions, which resulted in an accumulation of unprocessed oily bilge water. On May 5, 2017, an Algoma employee directed Redwise to transfer and store the unprocessed oily bilge water in the Strongfield’s used wash water tank to avoid an overboard discharge of unprocessed bilge water into the Pacific Ocean. The wash water tank was intended to hold deck and cargo hold wash water and is not listed on the Strongfield’s International Oil Pollution Prevention certificate. Between May 5, 2017, and the Strongfield’s arrival in Canada, the Redwise crew made several additional transfers of unprocessed oily bilge waste into the wash water tank to avoid overboard discharges of untreated bilge water.
On May 19, 2017, as the Strongfield was transiting the Panama Canal, an Algoma employee boarded the vessel until the vessel’s arrival in Canada, where he assumed the duties of Chief Engineer. On May 30, 2017, the Strongfield arrived in Sept-Iles, Quebec, Canada, at which time the Redwise crew handed over operation of the vessel to an Algoma crew. Although some of the Algoma crew were advised that the wash water tank contained unprocessed oily bilge water, Algoma acted negligently in failing to inform all onboarding Algoma crewmembers and the inspectors of the contents of the wash water tank.
On June 6, 2017, the Stongfield was transiting Lake Ontario. While in the waters of the United States within the Western District of New York, the 3rd Officer on board the Strongfield requested permission to empty the contents of the wash water tank into Lake Ontario, and the Captain approved the discharge. Because Algoma had negligently failed to inform the 3rd Officer and the Captain what the wash water tank contained, approximately 11,887 gallons of unprocessed oily bilge water were released into Lake Ontario. The discharge was stopped when another Algoma employee learned of the discharge and informed the 3rd Officer and Captain that the wash water tank contained unprocessed oily bilge water and instructed them to stop the discharge immediately. Following the discharge on June 6, 2017, Algoma contacted Canadian and United States authorities to report the discharge.
The plea is the result of an investigation by the U.S. Coast Guard Investigative Service, under the direction of Resident Agent-in-Charge Cindy C. Buckley, Buffalo, NY, and Resident Agent-in-Charge Edward L. Songer, Detroit, MI.
Sentencing is scheduled for April 14, 2021, before Judge Schroeder.
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Omaha Woman Sentenced for Distributing MethamphetamineRead the Press Release
United States Attorney Joe Kelly announced that Victoria Zoltowski, 34, was sentenced today in federal court in Omaha, Nebraska, for possession with intent to distribute 50 grams or more of actual methamphetamine. United States District Judge Robert F. Rossiter, Jr. sentenced Zoltowski to 120 months’ imprisonment. There is no parole in the federal system. After her release from prison, she will begin a five-year term of supervised release.
On February 13, 2018, officers from the Omaha Police Department served a search warrant at Zoltowski’s residence. Inside, officers located Victoria Zoltowski. Officers located a shoe box in her bedroom, and it contained 1,011 grams of methamphetamine.
This case was investigated by the Omaha Police Department.
Ohio man admits to soliciting minor for child pornographyRead the Press Release
CLARKSBURG, WEST VIRGINIA – David Dorst, of Shade, Ohio, has admitted to a child pornography charge, U.S. Attorney Bill Powell announced.
Dorst, age 59, pled guilty to one count of “Solicitation of Child Pornography.” Dorst admitted to asking a minor in Harrison County to send material of the minor engaging in sexually explicit conduct. The crime occurred in February 2020.
Dorst faces at least five years and up to 20 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney David J. Perri is prosecuting the case on behalf of the government. The Bridgeport Police Department investigated.
U.S. Magistrate Judge Michael John Aloi presided.
New York Man Sentenced on Federal Drug ChargeRead the Press Release
PORTLAND, Maine: A Brooklyn, New York man was sentenced today in federal court for conspiring to distribute and possess with intent to distribute cocaine base and heroin, U.S. Attorney Halsey B. Frank announced.
Chief U.S. District Judge Jon D. Levy sentenced Edward Canty III, aka “Demo,” 32, to 66 months in prison and three years of supervised release. A jury found Canty guilty on October 24, 2019, following a four-day trial.
According to trial evidence, between September 2016 and December 2016, Canty and others conspired to distribute and possess with the intent to distribute cocaine base and heroin transported from outside Maine for distribution in Portland.
At the time of his participation in the conspiracy in Maine, Canty was on federal supervised release for a federal drug trafficking conspiracy charge out of New York. He and another conspirator, Akeem Cruz, 31, of Brooklyn, New York, assaulted another individual during the drug conspiracy. In commenting on Canty’s engagement in violence, Chief Judge Levy noted the assault and then added, “Selling heroin to heroin addicts requires a certain level of callousness.”
Another conspirator who was also found guilty at trial, Melquan Jordan, 31, also of Brooklyn, New York, has yet to be sentenced.
The Portland and South Portland Police Departments; the Maine Drug Enforcement Agency; Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the FBI investigated the case.