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20 November 2020
Montana Chiropractor and His Wife Plead Guilty to Tax EvasionRead the Press Release
WASHINGTON – A Montana chiropractor and his wife pleaded guilty today to tax evasion, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Department of Justice’s Tax Division and U.S. Attorney Kurt G. Alme for the District of Montana.
According to court documents and statements made in court, Jonathan Wilhelm, owned and operated Pro Chiropractic PC (Pro Chiro) and Big Sky Spinal Care Center Inc. (Big Sky). From 2013 through 2018, the Wilhelms directed payments to cash and then did not report the cash transactions on Pro Chiro’s and Big Sky’s books and records, which they provided to a return preparer to prepare the businesses’ tax returns. The Wilhelms knew that omitting the cashed checks and cash payments resulted in an understatement of taxable income totaling $284,691 for tax years 2013, 2014, 2015, 2017, and 2018. In total, the defendants caused a tax loss to the IRS of $74,486.
U.S. Magistrate Judge Kathleen L. DeSoto has scheduled a sentencing for March 12, 2021. At sentencing the defendants each face a maximum sentence of five years. The defendants also each face a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Alme commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant Chief Andrew Kameros and Trial Attorney Sarah Kiewlicz of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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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.
Lummi tribal member sentenced to 4 years in prison for sexual abuse of a minorRead the Press Release
Seattle - A 29-year-old member of the Lummi Nation was sentenced today in U.S. District Court in Seattle to 4 years in prison for sexual abuse of a minor, announced U.S. Attorney Brian T. Moran. GIDEON THOMAS BEWLEY was 23 years old and the victim was 12 years old when the sexual assaults first occurred. At the sentencing hearing, U.S. District Judge Robert S. Lasnik said, “This is a very painful case. The victim was so vulnerable … this was an aggressive act by a person almost twice the age of a 12-year-old girl.”
According to records filed in the case, in 2014 and 2015, BEWLEY assaulted the victim, who had just finished the 6th grade, at various locations on the Lummi Nation reservation. BEWLEY told the victim if she told anyone he would harm her. The victim first disclosed the abuse in 2014 to a school counselor who notified authorities, but the victim was too scared to discuss the assault with police. In 2016, Child Protective Services was notified, and in a forensic interview arranged by a detective with the Lummi Police Department, the victim disclosed the sex abuse.
BEWLEY was arrested by Lummi Police in December 2018 and was indicted in January 2019. BEWLEY pleaded guilty in August 2019.
At the sentencing hearing, a spokesperson for the Lummi Nation’s victim services told the Court that the victim has “dealt with a lot and is working on her healing.”
BEWLEY is required to register as a sex offender following prison. He will be on five years of supervised release.
The case was investigated by the Lummi Police Department and the FBI. The case was prosecuted by Assistant United States Attorney J. Tate London. Mr. London serves as a Tribal Liaison for the U.S. Attorney’s Office, Western District of Washington.
Leader of Lee County Drug Distribution Ring Sentenced to Fourteen Years in Federal PrisonRead the Press Release
Fort Myers, Florida – United States District Judge John L. Badalamenti has sentenced Alphonda Baker, Sr. (45, Cape Coral) to 14 years in federal prison for conspiring to distribute heroin and fentanyl and possessing multiple firearms as a convicted felon. Baker had pleaded guilty on February 5, 2020. Three of Baker’s associates were previously sentenced to federal prison for the conspiracy: Travis Lee Watkins (13 years); Tafawah Horrobin (10 years); and Michael Horrobin (4 years, 9 months).
According to court documents, Baker headed a drug organization that distributed significant amounts of heroin and fentanyl in Lee County, Florida. The investigation leading to Baker began in 2018, when law enforcement successfully purchased heroin laced with fentanyl from Horrobin, in Cape Coral, on multiple occasions. Law enforcement learned that Horrobin resided in Cape Coral but frequently visited a house in Lehigh Acres, where Watkins and Horrobin lived. Investigators eventually determined that the Lehigh Acres residence was rented by the leader of the organization, Baker, to serve as a “safe house” where large quantities of drugs intended for distribution could be stockpiled.
On August 16, 2018, the Drug Enforcement Administration and the Cape Coral Police Department executed search warrants at Horrobin’s Cape Coral residence, the Lehigh Acres safe house, and Baker’s Cape Coral residence. Inside Horrobin’s residence, law enforcement seized various items used to facilitate the distribution of drugs, an illegally possessed firearm, and cash. Inside the Lehigh Acres safe house, law enforcement seized approximately one kilogram of a fentanyl/heroin mixture, approximately 400 grams of cocaine, smaller amounts of crack cocaine and methamphetamine, and four firearms. Eight firearms were seized from inside Baker’s Cape Coral residence.
This case was investigated by the Drug Enforcement Administration and the Cape Coral Police Department, with assistance from the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Michael V. Leeman.
Laurel man admits meth trafficking, firearm crimesRead the Press Release
BILLINGS – A Laurel man who estimated he sold nearly a pound a methamphetamine a week for the past year admitted drug trafficking and firearms crimes today after law enforcement found more than seven pounds of the drug in his residence, U.S. Attorney Kurt Alme said.
Robert Earnest Frazier II, 45, pleaded guilty to possession with intent to distribute meth and to possession of a firearm in furtherance of a drug trafficking crime. Frazier faces mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release on the drug crime and a mandatory minimum five years to life in prison consecutive to any other sentence on the firearms crime.
U.S. Magistrate Judge Timothy J. Cavan presided and ordered Frazier detained pending further proceedings.
In court documents filed in the case, the prosecution said law enforcement agents used a confidential informant to make two controlled drug purchases of about two ounces of meth each time from Frazier. On Feb. 19, 2019, agents executed a search warrant on Frazier’s residence and vehicle. In the residence, agents found about seven pounds of meth, marijuana, drug paraphernalia and firearms. Two pistols were found in the same safe in which Frazier stored meth. In Frazier’s vehicle, agents found another large stash of meth, marijuana and drug paraphernalia.
In a recorded statement, Frazier admitted to being a meth distributer and estimated he had sold nearly one pound of meth a week for the last year. Frazier also said he received a 10-pound delivery of meth the last week and that what agents found was what was left. In all, Frazier estimated he had received three shipments of meth totaling 37 to 40 pounds. Forty pounds of meth is the equivalent of about 144,960 doses.
Assistant U.S. Attorney Colin Rubich is prosecuting the case, which was investigated by the Eastern Montana High Intensity Drug Trafficking Area Task Force.
This case is part of Project Guardian, the U.S. Department of Justice’s recent initiative to reduce gun violence and enforce federal firearms laws, and Project Safe Neighborhoods, the USDOJ’s initiative to reduce violent crime. According to the FBI’s Uniform Crime Reports, violent crime in Montana increased by 48% from 2013 through 2019. Through these initiatives, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Las Vegas Resident Charged with Possession of Stolen Mail, Including Mail-In Ballots and Unemployment Insurance Benefits Debit CardRead the Press Release
LAS VEGAS, Nev. – A Las Vegas resident was charged today with possession of stolen mail — including two Clark County mail-in voter ballots and a Nevada Department of Employment, Training, and Rehabilitation (DETR) unemployment insurance benefits debit card — and possession of nearly two dozen debit and credit cards in other peoples’ names, announced U.S. Attorney Nicholas A. Trutanich.
Francisco Luis McArthur, 41, was charged with one count of possession of stolen mail and one count of possession of 15 or more unauthorized access devices.
“Theft of U.S. mail is a serious federal crime, particularly when it occurs just days before a general election,” said U.S. Attorney Trutanich. “Our office looks forward to continuing working closely with the U.S. Postal Inspection Service to investigate and prosecute mail theft.”
According to allegations contained in the criminal complaint, on November 2, 2020, McArthur had in his possession a box containing over 100 pieces of mail not in McArthur’s name, including two Clark County Election Department Official Absentee Voter Ballots. In addition, McArthur also had in his possession:
- Seven credit and debit cards that had been fraudulently re-encoded with account numbers that did not match the number printed on the card;
- 16 credit and debit cards that were in the names of other people, including at least one debit card issued by DETR (the state agency that distributes unemployment insurance benefits);
- A card encoder; and
- Keys used to open United States Postal Service mailboxes. McArthur admitted that he used the keys to gain access to gated neighborhoods and community mailboxes.
If convicted, the maximum statutory penalties are: (a) five years imprisonment and a $250,000 fine for possession of stolen mail; and (b) 10 years imprisonment and a $250,000 fine for possession of 15 or more unauthorized access devices.
A complaint contains merely allegations and the defendant is presumed innocent until and unless proven guilty in a court of law.
The case was investigated by the U.S. Postal Inspection Service.
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Las Cruces man sentenced to seven years in federal prison for methamphetamine possessionRead the Press Release
ALBUQUERQUE, N.M. – Ramon Gomez, 41, of Las Cruces, New Mexico, was sentenced on Nov. 4 in federal court to seven years and three months in prison for possession with intent to distribute methamphetamine.
Gomez pleaded guilty on Jan. 30. In his plea agreement, Gomez admitted to possessing 111.836 grams of methamphetamine on April 17, 2019, that he intended to sell to other individuals. The methamphetamine was found in Gomez’s residence during execution of a search warrant.
Upon release from prison, Gomez will serve five years of supervised release.
The FBI and Las Cruces/Doña Ana County Metro Narcotics agents investigated this case. Assistant U.S. Attorney Bradley H. Bartlett prosecuted the case.
Lame Deer man sentenced more than 10 years in prison in attempted sexual abuse of minorRead the Press Release
BILLINGS—A Lame Deer man who admitted attempting to sexually abuse a minor was sentenced today to 10 years and one month in prison and 10 years of supervised release, U.S. Attorney Kurt Alme said.
Jason Jay Tallbull, 39, pleaded guilty on June 18 to attempted sexual abuse of a minor.
U.S. District Judge Susan P. Watters presided.
The prosecution said in court records that in December 2018, Tallbull and the victim, a boy between the ages of 12 and 16, were at Tallbull’s residence on the Northern Cheyenne Indian Reservation. Both Tallbull and the victim were drinking. At some point, the victim tried to leave, but Tallbull made a sexually-charged comment, overpowered the victim and knocked him out. When the victim woke up, he was wearing different clothing and had injuries. He underwent a sexual assault examination.
When interviewed by the FBI, Tallbull said he and the victim had been drinking. He did not remember exactly what occurred, but that he felt like something happened. Tallbull admitted he was probably physically attracted to the victim.
Assistant U.S. Attorney Bryan Dake prosecuted the case, which was investigated by the FBI.
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Kissimmee Man Pleads Guilty to 13 Counts of Fentanyl and Heroin Distribution and Conspiracy in Case Involving Fentanyl Overdose DeathRead the Press Release
Orlando, Florida – Irving Cepeda-Chico (39, Kissimmee) today pleaded guilty to 1 count of conspiracy to distribute heroin and fentanyl and 12 counts of distribution of heroin and fentanyl. Cepeda-Chico faces a mandatory minimum penalty of 10 years, and up to life, in federal prison. A sentencing date has not yet been set.
According to court documents, Cepeda-Chico was involved in obtaining and distributing heroin and fentanyl-laced heroin in Orlando and elsewhere in central and northern Florida. Audio and video recordings showed Cepeda-Chico selling thousands of dollars of fentanyl-laced heroin on multiple occasions. Court-authorized wiretap recordings captured Cepeda-Chico discussing distribution plans, discussing the quality of his product with a Mexican supplier, offloading bad fentanyl and heroin on another distributor, and arranging to pay his supplier through money orders. The investigation specified 14 instances, in December 2018 through August 2019, where Cepeda-Chico either possessed with intent to distribute or distributed a total of over 1.3 kilograms of heroin, nearly 500 grams which were laced with fentanyl. In addition, Cepeda-Chico distributed fentanyl-laced heroin to an individual, M.D., who died in a fatal overdose on July 19, 2019. The United States will be seeking to hold Cepeda-Chico responsible for that death at his sentencing hearing.
Cepeda-Chico’s conspirators – Jeremy Zamot (23, Tampa) ; Kristen Ortiz (24, Orlando); Rachel Torres (25, Orlando); Christian Millan (36, Panama City); and Claribel Rivas (32, Panama City) — have all pleaded guilty to their roles in this conspiracy. They are scheduled to be sentenced on January 21 and January 22, 2021.
This case was investigated by the Drug Enforcement Administration, with assistance from Homeland Security Investigations, the Orange County Sherriff’s Office, the Osceola County Sherriff’s Office, the Florida Highway Patrol, the Lakeland Police Department, the Florida Department of Law Enforcement, the Central Florida High-Intensity Drug Trafficking Area (HIDTA), and District 9 and 25 Medical Examiner Offices. It is being prosecuted by Assistant United States Attorney Dana E. Hill.
Kansas Hunting Guide Sentenced for Violating Migratory Bird Treaty ActRead the Press Release
WICHITA, KAN. – A Kansas guide is losing his hunting privileges for three years because he violated the Migratory Bird Treaty Act, U.S. Attorney Stephen McAllister said today
Zachary B. White, 35, Ellinwood, Kan., pleaded guilty today in federal court in Wichita to violating the Migratory Bird Treaty Act. In his plea, White admitted he acted as a waterfowl guide to a party of 13 hunters during a hunt conducted during December 2015, in Barton County, Kan. With White’s assistance, the hunters killed 31 white-fronted geese, violating a daily bag limit of two per person. The unlawful hunting and guiding services were provided to the hunters by White and another guide, both co-owners and operators of Prairie Thunder Outfitters (PTO), located near Ellinwood, Kansas.
White was sentenced to three years on probation, during which he is prohibited from hunting and fishing or acting as a guide. In addition, he was ordered to pay a $5,000 fine directed to the North American Wetlands Conservation Fund, $10,000 in restitution directed to the Kansas Department of Wildlife, Parks and Tourism-Law Enforcement Division Restitution Fund, and forfeited approximately 148 ducks and geese seized from the PTO Lodge during a federal search warrant conducted in December, 2016.
White's sentencing is the final conviction related to a joint investigation of Prairie Thunder Outfitters by the U.S. Fish and Wildlife Service and the Kansas Department of Wildlife, Parks and Tourism. Nine other defendants have plead guilty or been adjudicated on various migratory bird hunting violations that occurred during guided hunts at PTO in 2015 and 2016 including taking in excess of daily bag limit, possession of unlawfully taken waterfowl, and possession and transport of untagged waterfowl or without required species identification. Bryan Boxberger was sentenced in August 2020 in the District of Kansas for assisting with a PTO hunt involving hunters taking waterfowl in excess of the daily bag and was ordered to pay $12,500 in fines and restitution. Eight other PTO guides, clients, and associates previously paid fines related to misdemeanors charged by violation notices.
McAllister commended the Kansas Department of Wildlife, Parks and Tourism, the U.S. Fish and Wildlife Service and Assistant U.S. Attorney Matt Treaster for their work on the case.
Jacksonville Radiology Practice Agrees to Pay $1.4 Million to Resolve Health Care Fraud AllegationsRead the Press Release
United States Attorney Maria Chapa Lopez announces today that Mori, Bean and Brooks, P.A. (MBB), a radiology practice in the Jacksonville, Florida area, has agreed to pay the United States $1.4 million to resolve allegations that it knowingly submitted false claims to Medicare and Medicaid for radiological images that were ineligible for reimbursement.
“Today’s announcement demonstrates the Justice Department’s commitment to protect public funds and our healthcare beneficiaries,” said United States Attorney Chapa Lopez. “We will aggressively pursue healthcare providers who violate Medicare regulations and hold accountable providers who knowingly submit fraudulent claims to Medicare and Medicaid.”
The settlement resolves allegations that from April 27, 2012, through February 5, 2019, MBB billed healthcare programs for radiological images that were interpreted outside the United States. Medicare requires that for tele-radiology services to be eligible for reimbursement, they must be performed within the United States. The agreement also resolves allegations that the practice group billed for radiology services that were initially performed overseas but were re-interpreted by another radiologist in the U.S. and billed to the second, domestic radiologist as if the latter doctor had performed the original read.
“Knowingly submitting false claims for financial gain is unacceptable,” said Special Agent in Charge Omar Perez Aybar of the U.S. Health and Human Services, Office of Inspector General. “Medicare only pays for services provided in accordance with Medicare rules. Today’s settlement should serve as a warning that anyone attempting to defraud taxpayer-funded health care programs will be vigorously pursued. ”
While MBB continued to bill Medicare and Medicaid for reads performed outside the country until after the United States informed it of the ongoing investigation, after being informed of the investigation MBB successfully reduced the amount owed to the government through diligent and effective cooperation.
This case was handled by Assistant U.S. Attorneys Shea Gibbons and Sean Keefe for the Middle District of Florida. It was investigated by the U.S. Department of Health and Human Services – Office of Inspector General.
The settlement concludes a lawsuit originally filed in the United States District Court for the Middle District of Florida by Thomas Heyck, a radiologist who formerly worked for Mori, Bean and Brooks. Heyck sued under the qui tam, or whistleblower, provisions of the False Claims Act permitting a private citizen to sue on behalf of the United States for false claims and to share in the recovery. The case is captioned U.S. ex rel. Thomas Heyck v. Mori, Bean and Brooks, P.A, No. 3:18-cv-590-J-39PDB. The Act also allows the United States to intervene and prosecute the action. Heyck will receive 19% of the proceeds from the settlement.
Jacksonville Felon Pleads Guilty After Throwing A Gun While Fleeing from the PoliceRead the Press Release
Jacksonville, Florida – Bruce Lanier Jefferson (46, Jacksonville) has pleaded guilty to being a convicted felon in possession of a firearm. Because of Jefferson’s criminal history, he faces a mandatory minimum penalty of 15 years, and up to life, in federal prison. A sentencing date has not yet been set.
According to the plea agreement, on April 14, 2020, Jefferson was driving a Chevrolet Cobalt at high rate of speed in the Brentwood neighborhood of Jacksonville. A patrol officer with the Jacksonville Sheriff’s Office (JSO) observed Jefferson’s erratic driving and attempted to pull him over. Jefferson positioned the car diagonally, as if he were going to drive on the sidewalk, exited the vehicle, and fled on foot. While fleeing, Jefferson threw a Taurus 9mm caliber pistol onto the sidewalk, then fell down. Jefferson attempted to regain his footing, at which point the JSO officer tased Jefferson and detained him. Other JSO patrol officers arrived on scene shortly thereafter, one of whom recovered Jefferson’s firearm from the sidewalk. The firearm had been equipped with an extended magazine and was loaded with 27 rounds of ammunition. Jefferson admitted to officers that he knew that he was a felon and that the Taurus 9mm caliber pistol belonged to him. The firearm had been reported stolen in 2019.
A subsequent search of Jefferson revealed that he was in possession of drugs, including suspected fentanyl. Before possessing the pistol, Jefferson had been convicted of ten felonies, including drug distribution offenses on three separate occasions. Therefore, he is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jacksonville Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Laura Cofer Taylor.
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 and enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes. For more information on Project Guardian visit www.justice.gov/projectguardian.
Interagency operation nets indictments in drug conspiracyRead the Press Release
ALBUQUERQUE, N.M. – U.S. Attorney John C. Anderson today announced the federal indictments of 18 individuals in the Roswell, New Mexico, area on charges ranging from distribution of methamphetamine to money laundering. The charges are contained three separate indictments totaling 66 counts.
According to the indictments and other court records, the defendants allegedly conspired to traffic large amounts of methamphetamine in and around Roswell. The investigation began in 2019 when the Drug Enforcement Administration, Homeland Security Investigations, the Chaves County Metro Narcotics Task Force and the Pecos Valley Drug Task Force began an investigation of a Roswell resident who was selling significant quantities of methamphetamine.
“Methamphetamine is a persistent scourge on our state, and southeastern New Mexico has been substantially impacted by methamphetamine trafficking and use,” said U.S. Attorney Anderson. “This investigation prevented over 100 pounds of methamphetamine from reaching our streets and stopped that methamphetamine from further damaging our communities. This operation is yet another example of our federal agencies working collaboratively with state and local law enforcement partners to reduce dangerous crime in this district. My office is prosecuting 18 individuals on a variety of drug trafficking, money laundering and firearms charges, and putting others on notice that if you traffic methamphetamine in New Mexico, you will be found and prosecuted.”
Investigators executed four search warrants at locations in Roswell and Dexter, New Mexico. As of today, 17 defendants have been arrested, while one defendant is not yet in custody.
The investigation included agents from the Drug Enforcement Administration, Homeland Security Investigations, the IRS, the U.S. Marshals Service, the Chaves County Metro Narcotics Task Force and the Pecos Valley Drug Task Force.
“A year ago, we established a Post of Duty in Roswell to quickly and efficiently respond to requests for DEA assistance from local law enforcement, and to further investigative efforts throughout the southeastern region of the state of New Mexico,” said Kyle W. Williamson, Special Agent in Charge of the Drug Enforcement Administration’s El Paso Division. “This is one of the successful operations as a result of this post of duty. DEA will continue to work with other federal, state, local and tribal law enforcement agencies to leverage and strengthen our respective resources to pursue those who would threaten our communities.”
“This joint effort is a direct reflection of the incredible cooperation between our law enforcement partners and will provide these communities with peace of mind and a stronger sense of community security,” said Sonya K. Chavez, United States Marshal for the District of New Mexico.
“HSI remains committed to working with our federal, state, and local law enforcement partners to combat drug trafficking in Southeast New Mexico,” said Erik P. Breitzke, acting Special Agent in Charge for HSI El Paso. “I commend the hard work of all involved to successfully plan and execute an operation of this magnitude, especially during an unprecedented pandemic, to ensure that dangerous drugs are kept off our streets.”
“It takes a significant amount of coordination, cooperation, and hard work from numerous agencies to investigate a case of this scale,” stated Special Agent in Charge Ismael Nevarez, Jr., of the Phoenix Field Office of IRS-Criminal Investigation. “IRS-CI is fully committed to investigating money laundering by transnational drug trafficking organizations.”
This investigation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations.
The High Intensity Drug Trafficking Areas (HIDTA) Chaves County Metro Narcotics Task Force is comprised of investigators from the Roswell Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, the FBI and the Chaves County Sherriff’s Office. The HIDTA Pecos Valley Drug Task Force is comprised of officers from the Eddy County Sheriff’s Office, Carlsbad Police Department and Artesia Police Department. Both are part of the New Mexico HIDTA Region VI Drug Task Force. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
The Las Cruces branch of the U.S. Attorney’s Office for the District of New Mexico is prosecuting this case.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Nov. 17 was:
Jerard David Threefingers, 31, of Lame Deer, on charges of involuntary manslaughter. If convicted of the most serious crime, Threefingers faces a maximum eight years in prison, a $250,000 fine and three years of supervised release. Threefingers was released pending further proceedings. The Bureau of Indian Affairs investigated the case. PACER case reference. 20-101.
Appearing and pleading not guilty Nov. 19 was:
Tyler Nathaniel Patterson, 26, of Billings, on charges of false statement during firearms transaction and illegal receipt of a firearm by a person under indictment. If convicted of the most serious crime, Patterson faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Patterson was released pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 20-127.
Kaycee Nicole Kolka, 26, of Billings, on charges of prohibited person in possession of a firearm. If convicted of the most serious crime, Kolka faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Kolka was released pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 20-126.
Jennifer Lee Adams, 41, of Billings, on charges of false statement during a firearms transaction. If convicted of the most serious crime, Adams faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Adams was released pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 20-118.
Gary Lee Paul Adams, 38, of McCammon, Idaho, on charges of felon in possession of a firearm. If convicted of the most serious crime, Adams faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Adams was released pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives, Gallatin County Sheriff’s Office and Manhattan Police Department investigated the case. PACER case reference. 20-27.
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on Nov. 17 was:
Laura Ann Matye, 42, of Great Falls, on charges of conspiracy to possess with intent to distribute heroin and possession with intent to distribute heroin. If convicted of the most serious crime, Matye faces a maximum 20 years in prison, a $1 million fine and three years of supervised release. Mayte was released pending further proceedings. The Department of Homeland Security and Great Falls Police Department investigated the case. PACER case reference. 20-80.
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on Nov. 17 was:
Scott George Michael Daniels, 31, of Kalispell, on charges of conspiracy to distribute drugs, possession with intent to distribute drugs and prohibited person in possession of a firearm. If convicted of the most serious crime, Daniels faces a minimum mandatory 10 years to life in prison, a $10 million fine and at least five years of supervised release. Daniels was released pending further proceedings. The FBI investigated the case. PACER case reference. 20-46.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Home Health Agency and Former Owner to Pay $5.8 Million to Settle False Claims Act AllegationsRead the Press Release
Doctor’s Choice Home Care, Inc. and its former executives, Timothy Beach and Stuart Christensen, have agreed to pay $5.15 million to resolve allegations that the home health agency provided improper financial inducements to referring physicians through sham medical director agreements and bonuses to physicians’ spouses who were Doctor’s Choice employees, the Department of Justice announced today.
Timothy Beach and Stuart Christensen founded Doctor’s Choice and formerly served as its top executives. Doctor’s Choice is a home health agency based in Sarasota, Florida, with branches throughout the state.
Doctor’s Choice will pay $3,856,000 to settle these allegations and Beach and Christensen will each pay $647,000. Doctor’s Choice will pay an additional $675,000 to resolve separate allegations that employees pressured clinical personnel to increase the number of home visits for Medicare patients to avoid the Medicare Low Utilization Payment Adjustment that would have decreased the reimbursement Doctor’s Choice received from Medicare in the absence of these unnecessary services.
“The Department of Justice will continue to hold companies and individuals accountable for the payment of illegal remuneration in any form,” said Acting Assistant Attorney General Jeffrey Bossert Clark of the Department of Justice’s Civil Division. “Improper inducements have no place in our federal healthcare system, which relies on healthcare providers making decisions based on the healthcare needs of their patients and rather than their personal financial interests.”
“Operating an illegal referral scheme and providing medically unnecessary services places patients at risk and jeopardizes millions of taxpayer dollars,” said Special Agent in Charge of the FBI Tampa Division Michael McPherson. “This settlement highlights the FBI’s commitment to protect the integrity of the federally funded healthcare system.”
The Anti-Kickback Statute prohibits the offering or payment of remuneration to induce or reward referrals for services paid for by federal healthcare programs. The Stark Law forbids certain medical providers, including home health agencies, from submitting claims to Medicare for services provided to patients who were referred by a physician with whom the provider has a prohibited financial relationship, unless that relationship falls within an applicable exception.
This settlement resolves allegations that Doctor’s Choice, Beach, and Christensen violated the Anti-Kickback Statute and the Stark Law by entering into sham medical director agreements with physicians as a means of providing remuneration for referrals, and also violated the Stark Law by providing bonuses to employees based on referrals to Doctor’s Choice by the employees’ physician spouses. In addition, the agreement resolves allegations that Doctor’s Choice provided unnecessary services to Medicare patients in order to increase the number of skilled service visits provided during a home health episode to avoid the Low Utilization Payment Adjustment which otherwise would have decreased Doctor’s Choice Medicare reimbursement. This adjustment is triggered when a home health patient has a treatment episode consisting of less than five skilled service visits and results in the provider receiving a standardized per visit payment rather than the higher payment for a full home health episode.
The allegations resolved in this settlement were originally brought in two lawsuits filed under the qui tam, or whistleblower, provisions of the False Claims Act; one case was filed by Corina Herbold and the second case was filed by Sara Billings, Misty Sykes, and Marina Eschoyez-Quiroga, all of whom are former employees of Doctor’s Choice. The Act permits private parties to sue on behalf of the government for false claims for government funds and to receive a share of any recovery. Billings, Sykes, and Eschoyez-Quiroga will jointly receive a share of approximately $145,000 arising from the government’s recovery for the Low Utilization Payment Adjustment allegations. Herbold’s share has not yet been determined.
The government’s intervention in these matters illustrates its emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
The settlement was the result of a coordinated effort by the Civil Division of the Department of Justice, the U.S. Attorney’s Office for the Middle District of Florida, the Office of Inspector General of the Department of Health and Human Services, and the FBI.
The cases are captioned United States ex rel. Herbold v. Doctor’s Choice Home Care Inc., et al., No. 8:15- cv-01044 (M.D. Fla.) and United States ex rel. Billings, Sykes, and Eschoyez-Quiroga v. Doctor’s Choice Home Care Inc., No. 8:16-cv-3112 (M.D. Fla.).
The claims resolved by the settlement are allegations only; there has been no determination of liability.
Group with Ties to White Supremacy Including One Current and Two Former Marines Charged with Illegally Manufacturing FirearmsRead the Press Release
RALEIGH, N.C. – This week, Paul James Kryscuk, 35, Liam Collins, 21, Jordan Duncan, 26, and Justin Wade Hermanson, 21, were charged via a superseding indictment obtained in the Eastern District of North Carolina. Collins and Duncan are former Marines assigned previously to Camp Lejeune in Jacksonville, North Carolina.
According to court documents, Collins, Kryscuk, and Duncan conspired to manufacture, transport, and sell hard to obtain firearms and firearm parts in a manner that would hide these purchases from the federal government. From May 2019 to the present, Collins made multiple money transfers through his personal account to Kryscuk to purchase firearms to include a 9mm pistol and suppressor and a short barrel rifle. In turn, Kryscuk purchased items from vendors to manufacture the firearms and suppressors. In furtherance of the crime, Kryscuk, using an alias, mailed the manufactured weapons from Idaho to Jacksonville, North Carolina. Kryscuk also shipped the short barrel rifle, not registered as required by the federal government, to Collins. Duncan, a military contractor, and Hermanson, currently a U.S. Marine, were aware of and participated in the conspiracy.
The indictment alleges that Collins and Kryscuk were members of and made multiple posts on the “Iron March” forum, a gathering point for young neo-Nazis to organize and recruit for extremist organizations, until the forum was closed in late 2017. Collins and Kryscuk met through the forum and expanded their group using an encrypted messaging application as an alternate means of communication outside of the forum. Collins and Kryscuk recruited additional members, including Duncan and Hermanson, and conducted training, including a live-fire training in the desert near Boise, Idaho. From video footage recorded by the members during the training, Kryscuk, Duncan, and others produced a montage video of their training. In the video, the participants are seen firing short barrel rifles and other assault-type rifles, and the end of the propaganda video shows the four participants outfitted in skull masks giving the “Heil Hitler” sign, beneath the image of a black sun, a Nazi symbol. The last frame bears the phrase, “Come home white man.” Prior to their arrests, Collins and Duncan had recently relocated from North Carolina and Texas, respectively, to Boise to be near Kryscuk.
All four are charged with violating 18 U.S.C. § 371, conspiracy to manufacture firearms and ship them interstate; Collins, Kryscuk and Hermanson are additionally charged with violation of 18 U.S.C. § 922(a) (3) and 2, interstate transportation of firearms without a license, and Collins and Kryscuk with violations of 26 U.S.C. § 5841, 5861(j), and 5871 and 2, interstate transportation of a firearm not registered as required. Collins and Kryscuk each face a maximum penalty of a combined 20 years in prison if convicted; Hermanson, a maximum penalty of a combined 10 years in prison if convicted; and Duncan, charged with violating 18 U.S.C. § 371, conspiracy to manufacture firearms and ship them interstate (18 U.S.C. § 922(a) (3)), faces a maximum of 5 years in prison.
An indictment and complaint are merely accusations. The defendants are presumed innocent until proven guilty.
The Naval Criminal Investigative Service, the Federal Bureau of Investigation field offices in Salt Lake City and Charlotte with assistance from field offices in Boston, New York, and Newark, the Boise Police Department, the United States Postal Inspection Service, Homeland Security Investigations, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, are investigating the case. Assistant U.S. Attorneys from the Eastern District of North Carolina are prosecuting the case for the government with assistance from Assistant United States Attorneys for the District of Idaho, District of New Jersey, Eastern District of New York, the District of Rhode Island and attorneys from the National Security Division.
This case falls within the purview of the Attorney General’s Task Force to Combat Violent Anti-Government Extremism. Launched in June 2020, the Task Force is dedicated to supporting the investigation and prosecution of any person or group who commits violence in the name of an anti-government ideology.
A copy of this press release is located on our website.
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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.
Greenbelt Felon Sentenced to 10 Years in Federal Prison for Drug Charges and to Illegal Possession of a FirearmRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel sentenced Lucian Bernard Jackson, age 53, of Greenbelt, Maryland, yesterday to 10 years in federal prison, followed by five years of supervised release, for conspiracy, possession with intent to distribute controlled substances, and being a felon in possession of a firearm. Judge Hazel also ordered Jackson to forfeit the $81,957 in cash, two firearms and ammunition seized from his residence during a search of his residence. This case was the result of investigative efforts by the U.S. Attorney’s Offices for the District of Maryland and for the Eastern District of Virginia.
The sentence 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 Timothy Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Special Agent in Charge Jesse R. Fong of the Drug Enforcement Administration - Washington Field Division; and Interim Chief Hector Velez of the Prince George’s County Police Department; and Attorney General of Virginia Mark R. Herring.
“Drug traffickers must know that using a gun will lead to federal time, which has no parole—ever,” said United States Attorney Robert K. Hur. “Lucian Jackson will now serve 10 years in federal prison. We will continue to work with our law enforcement partners to remove those who would deal drugs and commit violence from our community.”
According to his guilty plea, from June 2017 to September 2019, Jackson was a supplier of cocaine in and around the Maryland region, redistributing cocaine to local dealers. For example, from October 2017 to September 2019, Jackson distributed approximately 500 grams of cocaine per week to a co-conspirator, with the transactions generally occurring at Jackson’s residence. The co-conspirator then redistributed the cocaine to 30 or more customers. The hierarchal distribution continued with the customers redistributing the cocaine around the region, including in the Eastern District of Virginia and in the District of Maryland. In addition, Jackson occasionally purchased cocaine from other suppliers through the co-conspirator. During one month, Jackson, through the co-conspirator, purchased approximately four kilograms of cocaine from another supplier.
Law enforcement executed a search warrant at Jackson’s residence in Greenbelt, Maryland, on September 26, 2019, and recovered: $81,957 in cash; more than 700 grams of cocaine; a .45-caliber pistol and 54 rounds of .45-caliber ammunition; a 9mm pistol and 114 rounds of 9mm ammunition; and an additional $400 in cash recovered from Jackson’s person. Jackson admitted that the cash from the residence and Jackson’s person were proceeds from his cocaine distribution. Further, Jackson admitted that he knew he was prohibited from possessing firearms or ammunition as a result of a previous felony conviction.
Jackson was personally involved in the distribution of, or it was reasonably foreseeable to Jackson that his co-conspirators distributed, in furtherance of the conspiracy, at least 50 kilograms but less than 150 kilograms, of cocaine.
As agreed upon in Jackson’s plea agreement, now that Jackson has been sentenced, related charges filed in federal court in the Eastern District of Virginia will be dismissed.
United States Attorneys Robert K. Hur and G. Zachary Terwilliger commended the ATF, and the Prince George’s County Police Department for their work in the Maryland investigation and thanked the DEA, the FBI Washington Field Office, the Arlington County Police Department, the Loudoun County Sheriff’s Office, the Fairfax County Police Department, and the Alexandria Police Department for their work in the Virginia investigation. Mr. Hur and Mr. Terwilliger thanked Assistant U.S. Attorney Burden Walker and Special Assistant U.S. Attorney Karolina Klyuchnikova, who prosecuted the Maryland and Virginia cases, respectively.
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Grand Jury Indicts Buffalo Man in Connection with Shooting Following A Botched Drug DealRead 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 a federal grand jury has returned an indictment charging Charlie Yancey, 29, of Buffalo, NY, with conspiring to distribute marijuana, attempted possession of marijuana, discharge of a firearm in furtherance of drug trafficking, being a felon-in-possession of a firearm and ammunition, and possession of a firearm with an obliterated serial number. The charges carry a mandatory minimum penalty of 10 years in prison, and a maximum of life in prison.
Assistant U.S. Attorney Jeremiah E. Lenihan, who is handling the case, stated that according to the indictment, on July 28, 2019, the defendant met an individual (Victim) in the parking lot of a convenience store to obtain marijuana. When Yancey arrived, he got into the backseat of the Victim’s vehicle. The defendant attempted to give the Victim fake money in exchange for the marijuana. As a result, the Victim got out of the driver’s seat and went to the rear passenger door, at which point Yancey exited the vehicle and began shooting at the Victim, firing a total of nine rounds. The Victim was transported to the hospital where he was treated for non-life threatening gunshot wounds.
Yancey, who was on New York State parole at the time of the alleged shooting, absconded from parole and was later arrested, convicted, and sentenced on a parole violation in October 2019.
The defendant was arraigned this afternoon before U.S. Magistrate Judge Jeremiah J. McCarthy and was detained.The indictment is the result of an investigation by the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; the Federal Bureau of Investigation Safe Streets Task Force, under the direction of Special Agent-in-Charge Stephen Belongia; and the New York State Department of Corrections and Community Supervision, under the direction of Commissioner Anthony Annucci.
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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Grand Island Man Indicted by A Federal Grand Jury on Drug and Gun ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney James P. Kennedy Jr. announced today that a federal grand jury has returned a five count indictment against David Montemage, 37, of Grand Island, NY, charging him with conspiring to distribute, attempting to possess with intent to distribute, and possessing with intent to distribute marijuana: in addition, Montemage is also charged with maintaining a drug-involved premises and possessing a firearm in furtherance of drug trafficking crimes. The charges carry a maximum penalty of life in prison, and a $1,000,000 fine.
Assistant U.S. Attorneys Justin G. Bish and Joshua A. Violanti, who are handling the case, stated that according to the indictment and a previously filed criminal complaint, on August 5, 2020, federal and state law enforcers from Homeland Security Investigations (HSI), U.S. Border Patrol, U.S. Customs and Border Protection, the Niagara County Sheriff’s Office, and the Erie County Sheriff’s Office, executed a search warrant at defendant’s residence on Blue Pointe Lane on Grand Island. During the search of that residence, investigators recovered: a .22 caliber rifle; 28 rounds of .22 caliber ammunition with magazines; approximately 1.88 kilograms of marijuana; marijuana and THC based products; several large plastic vacuum seal type packages containing marijuana residue; several small plastic bags containing marijuana; a digital scale; $7,480 in cash; and marijuana smoking pipes.
According to the previously filed complaint, Montemage, who was arrested following the execution of the warrant, is believed to have been involved in the trafficking and distribution of drugs for over a decade.
Montemage was arraigned before U.S. Magistrate Judge Jeremiah J. McCarthy and released on conditions.The indictment is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; Border Patrol, under the direction of Chief Patrol Agent Eduardo Payan; Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy; the Niagara County Drug Task Force, under the direction of Niagara County Sheriff Michael J. Filicetti, and the Erie County Sheriff’s Office, under the direction of Sheriff Timothy Howard.
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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Former Supervisory Corrections Officer Sentenced for Repeatedly Tasing Restrained DetaineeRead the Press Release
Former supervisory corrections officer Mark Bryant, 42, was sentenced today to five years in prison for repeatedly tasing a restrained pretrial detainee inside the Cheatham County Jail in Tennessee. In January 2020, a jury in the Middle District of Tennessee convicted Bryant of two counts of violating Title 18, U.S. Code, Section 242, for using excessive force while acting under color of law.
“The defendant abused his power as a supervisory corrections officer by assaulting a restrained person in his custody. Officers who willfully use excessive force both violate the Constitution and erode the public trust in law enforcement,” said Assistant Attorney General Eric Dreiband of the Justice Department’s Civil Rights Division. “The Justice Department is committed to prosecuting these abuses of power and upholding the Constitution and laws that protect us all.”
“The extraordinary abuse of power displayed by Bryant was both disturbing and disappointing to the many fine men and women in law enforcement who strive every day to carry out their duties with honor and professionalism,” said U.S. Attorney Donald Q. Cochran for the Middle District of Tennessee. “We can never be complacent in our responsibility to protect every citizen from such abuse. Justice has been served and I commend our trial team and our law enforcement partners for their outstanding work in the investigation, preparation and prosecution of this case.”
“When a law enforcement officer violates the civil rights of another, he brings shame on the badge," said Douglas Korneski, Special Agent in Charge of the Memphis Field Office of the FBI. "The sentencing of former Corrections Officer Mark Bryant sends a strong message that law enforcement officers or any other government employees who abuse their authority and use unlawful force will be vigorously investigated and prosecuted. Our citizens have a fundamental and constitutional right to ethical treatment by employees of federal, state, and local government."
Evidence presented at trial established that, on Nov. 5, 2016, Bryant repeatedly tased an 18-year-old detainee who was restrained and surrounded by officers inside the jail. At approximately 8:00 p.m. that night, Bryant tased the detainee four times for a total of 50 seconds while the detainee was strapped into a restraint chair. Bryant returned two hours later and tased the detainee again, this time while the detainee was handcuffed, shackled, and compliant. As a result of Bryant’s unjustified uses of force, the detainee suffered bodily injury, including burns that an officer on the scene described as making the detainee’s skin look like “raw hamburger meat.” As the senior officer at the scene, Bryant then directed his colleagues not to submit reports regarding his uses of force on the detainee.
The investigation was conducted by the FBI, and the case was prosecuted by Assistant U.S. Attorney Sara Beth Myers of the Middle District of Tennessee’s Nashville Office and Civil Rights Division Trial Attorney Michael J. Songer.
Former Rockcastle Deputy Jailer Sentenced to 39 Months for Civil Rights ViolationsRead the Press Release
LONDON, Ky. – A former Rockcastle County Deputy Jailer, Derek Steven Clark, 25 ,was sentenced to 39 months in federal prison on Thursday, before U.S. District Court Judge Claria Horn Boom, for violating the civil rights of an inmate in his custody.
Clark was convicted by a federal jury, in July 2020. According to testimony at trial, Clark and others placed an inmate victim into a restraint chair. Clark then aided and commanded the assault of the victim by another inmate, which resulted in bodily injury. Afterwards, Clark completed an official incident report, to document the incident; but in completing that report, Clark falsely stated that, after he and others placed the victim in the restraint chair, the victim began spitting at deputy jailers, causing two inmates to intervene. Clark’s false report indicated one inmate instinctively slapped the victim, which caused the victim’s lip to bleed, and the victim then spit blood, causing the inmate to punch the victim.
The evidence established that, in truth, Clark and others placed the victim into the restraint chair, and the victim did not become physically combative or spit at deputies, before being punched by the inmate.
Under federal law, Clark must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for two years, following his release.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and James Robert Brown, Special Agent in Charge, FBI, Louisville Field Office, jointly announced the sentence.
The investigation was conducted by the FBI. The United States was represented in the case by Assistant U.S. Attorney Hydee Hawkins.
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.
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Former Montgomery County Music Teacher Sentenced to More Than Four Years in Federal Prison for Possession of Child Pornography and Ordered to Pay $144,000 in Restitution to VictimsRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang today sentenced Charles Victor Kopfstein-Penk, age 75, of Bethesda, Maryland, to 54 months in federal prison, followed by five years of supervised release, for possession of child pornography. As part of his plea agreement, Kopfstein-Penk was ordered to pay $144,000 in restitution to 35 victims. Kopfstein-Penk, a music teacher who gave lessons out of his home, pleaded guilty to the federal charge on February 10, 2020.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge John Eisert of Homeland Security Investigations (HSI) Baltimore; Colonel Woodrow W. Jones III, Superintendent of the Maryland State Police; and Montgomery County State’s Attorney John McCarthy.
According to his plea agreement, on March 5, 2019, Maryland State Police were conducting an investigation on an online peer-to-peer network for individuals sharing and downloading child pornography. An IP address associated with Kopfstein-Penk’s residence was requesting blocks of suspected child pornography files.
As detailed in the plea agreement, on May 21, 2019, law enforcement executed a search warrant at Kopfstein-Penk’s residence. Kopfstein-Penk was present and agreed to speak to officers at the scene. Kopfstein-Penk admitted to using file-sharing software for approximately 10 years to download child pornography from the Internet and stated that he had been collecting child pornography files for over 20 years. An on-scene preview of a computer located in Kopfstein-Penk’s office revealed over 400,000 files of suspected child pornography. Kopfstein-Penk directed law enforcement to five external hard drives that he also used to store child pornography. A subsequent forensic analysis of the computer and external storage media revealed that Kopfstein-Penk possessed over 1,126,000 images and over 6,800 videos depicting the sexual abuse of children, including images of child pornography involving prepubescent minors and some material involving the portrayal of sadistic or masochistic conduct against children.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Robert K. Hur commended HSI, the Maryland State Police Internet Crimes Against Children Task Force, and the Montgomery County State’s Attorney’s Office for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Rajeev Raghavan and Timothy Hagan, who prosecuted the federal case.
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Former College Professor Indicted on Fraud Charges for Allegedly Embezzling More Than $650,000 from Student OrganizationRead the Press Release
CHICAGO — A former college professor has been indicted on federal fraud charges for allegedly embezzling more than $650,000 from a national student organization committed to improving minority representation in the pharmacy industry.
While serving as the volunteer Executive Director of the student association, CARMITA COLEMAN withdrew cash and issued checks from the group’s bank accounts for her and her family’s personal benefit, according to an indictment returned Thursday in U.S. District in Chicago. Coleman attempted to cover up her scheme by submitting false and misleading reports that concealed her withdrawals, the indictment states. When a new individual was appointed to replace Coleman as Executive Director, Coleman knowingly delayed turning over access to the organization’s bank accounts so that she could continue spending the money for her personal benefit, the indictment states.
The fraud scheme allegedly lasted from 2011 to 2016. Coleman, who separately during the scheme was a professor and interim dean at the Chicago State University College of Pharmacy, fraudulently misappropriated approximately $651,272 from the student association, the indictment states.
The indictment charges Coleman, 49, of Frankfort, with four counts of wire fraud. Arraignment in federal court in Chicago has not yet been scheduled.
The indictment 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 government is represented by Assistant U.S. Attorney Heidi Manschreck.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Each count of wire fraud is punishable by up to 20 years in federal prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Former Cleveland VA Medical Center supervisor charged with theft of government property and fraudRead the Press Release
U.S. Attorney Justin Herdman announced today that a grand jury sitting in Cleveland has returned a 28-count indictment charging William H. Precht, age 53, of Kent, Ohio, with theft of government property, conspiracy to commit wire fraud and honest services fraud, wire fraud, and false statements relating to health care matters.
According to the indictment, from October 5, 2010, through January 4, 2019, the defendant is accused of using his position with the Cleveland Veteran Affairs (VA) Medical Center to engage in a scheme to enrich himself and co-conspirators.
The indictment alleges that from on or about October 5, 2010, through on or about February 16, 2018, the defendant fraudulently used his VA-issued purchase card and facilitated the use of other VA employees’ purchase cards to make purchases from a company controlled by the defendant for approximately $1,066,348.
In addition, from on or about May 27, 2015, through on or about January 4, 2019, the defendant is accused of conspiring with a medical supplies company located in South Euclid, Ohio, to devise a scheme in which the defendant would receive kickbacks and other items of value, in exchange for steering VA business and other monetary awards to the medical supplies vendor.
Allegedly, it was part of the conspiracy that the defendant would solicit and accept items of value from the medical supplies vendor such as money, sporting event tickets and future business interest. The defendant would then provide favorable actions for the benefit of his co-conspirators and the medical supplies vendor when the opportunities arose. He is accused of concealing this activity from the Cleveland VA by providing false and misleading information to VA employees about reasons for ordering medical supplies. The defendant also allegedly falsified some patient records to make it appear patients had implants in their electronic health record that did not correlate to any actual surgical or medical procedure, to justify the purchase of implants.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation.
In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation preceding the indictment was conducted by the Department of Veterans Affairs – Office of the Inspector General, Cleveland and the Cleveland Division of the FBI. This case is being prosecuted by Assistant U.S. Attorney Brian McDonough.
Former Cheatham County Supervisory Corrections Officer Sentenced for Repeatedly Tasing Restrained DetaineeRead the Press Release
NASHVILLE, Tenn. – November 20, 2020 –Former supervisory corrections officer Mark Bryant, 42, was sentenced today to 5 years in prison for repeatedly tasing a restrained pretrial detainee inside the Cheatham County Jail in Tennessee. In January 2020, a jury in the Middle District of Tennessee convicted Bryant of two counts of violating Title 18, United States Code, Section 242, for using excessive force while acting under color of law.
“The extraordinary abuse of power displayed by Bryant was both disturbing and disappointing to the many fine men and women in law enforcement who strive every day to carry out their duties with honor and professionalism,” said U.S. Attorney Cochran. “We can never be complacent in our responsibility to protect every citizen from such abuse. Justice has been served and I commend our trial team and our law enforcement partners for their outstanding work in the investigation, preparation and prosecution of this case.”
Evidence presented at trial established that, on Nov. 5, 2016, Bryant repeatedly tased an 18-year-old detainee who was restrained and surrounded by officers inside the jail. At approximately 8:00 p.m. that night, Bryant tased the detainee four times for a total of 50 seconds while the detainee was strapped into a restraint chair. Bryant returned two hours later and tased the detainee again, this time while the detainee was handcuffed, shackled, and compliant. As a result of Bryant’s unjustified uses of force, the detainee suffered bodily injury, including burns that an officer on the scene described as making the detainee’s skin look like “raw hamburger meat.” As the senior officer at the scene, Bryant then directed his colleagues not to submit reports regarding his uses of force on the detainee.
“The defendant abused his power as a supervisory corrections officer by assaulting a restrained person in his custody. Officers who willfully use excessive force both violate the Constitution, and erode the public trust in law enforcement,” said Assistant Attorney General Eric Dreibund of the Justice Department’s Civil Rights Division. “The Justice Department is committed to prosecuting these abuses of power and upholding the Constitution and laws that protect us all.”
“When a law enforcement officer violates the civil rights of another, he brings shame on the badge," said Douglas Korneski, Special Agent in Charge of the Memphis Field Office of the FBI. "The sentencing of former Corrections Officer Mark Bryant sends a strong message that law enforcement officers or any other government employees who abuse their authority and use unlawful force will be vigorously investigated and prosecuted. Our citizens have a fundamental and constitutional right to ethical treatment by employees of federal, state, and local government."
The investigation was conducted by the FBI, and the case was prosecuted by Assistant U.S. Attorney Sara Beth Myers of the Middle District of Tennessee’s Nashville Office and Civil Rights Division Trial Attorney Michael J. Songer.
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Florida Man Charged with Manipulating Publicly Traded Stocks in Multiyear “Pump and Dump” Securities Fraud Scheme Worth over $19 MillionRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Jeffrey D. Martin, 61, of Orlando, FL, was charged by Superseding Indictment with conspiracy and multiple counts of securities fraud and wire fraud, related to his manipulation of several publicly-traded securities in a “pump and dump” scheme in which Martin and his co-schemers allegedly defrauded investors out of over $19 million.
According to the Superseding Indictment, from about April 2012 until December 2019, Martin and others allegedly manipulated the stock of Mainstream Entertainment, Inc., now known as Volt Solar Systems, Inc., Resort Savers, Inc., Axiom Corp., Virtual Medical International, Inc., and Union Bridge Holdings, Ltd. The alleged manipulation involved fraudulent press releases, fraudulent securities disclosures filed with the U.S. Securities and Exchange Commission, and other fraudulent communications, as well as manipulative stock trading. The defendant and others were thus allegedly able to fraudulently inflate the price of the stock, and then sell their own shares at inflated prices and reap illicit proceeds—a classic “pump and dump” scheme. Through this conspiracy, Martin and his co-conspirators allegedly defrauded investors to enrich themselves; Martin himself received more than $989,000 in illicit proceeds from the sale of over-inflated stock of just one of the companies.
“Pump and dump stock schemes have real victims: those who play by the rules and save and invest in the markets,” said U.S. Attorney McSwain. “Market manipulation also causes generalized harm to the markets and to our economy because it erodes public trust that the markets are free and fair. Thanks to the excellent work of the FBI, SEC, and prosecutors from my Office, Martin will now face the consequences of his alleged actions.”
“Pump and dump schemers enrich themselves on the backs of innocent investors, turning a pile of lies into a mountain of money,” said Michael J. Driscoll, Special Agent in Charge of the FBI's Philadelphia Division. “The FBI is committed to cracking down on such harmful market manipulation, in order to protect both the investing public and the integrity of the financial system.”
If convicted, the defendant faces a maximum possible sentence of 245 years imprisonment, a $12.5 million fine, a 3-year period of supervised release, and a $1,200 special assessment.
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Michael J. Rinaldi. The U.S. Attorney’s Office appreciates the assistance of the U.S. Securities and Exchange Commission and the Financial Industry Regulatory Authority.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
First degree murder, assault and firearms charges filed against man in Crow Indian Reservation shootingRead the Press Release
BILLINGS – An indictment filed in U.S. District Court on Thursday charges a Pryor man suspected in the fatal shooting of a woman and wounding of a man on the Crow Indian Reservation with murder, assault and firearms crimes, U.S. Attorney Kurt Alme said today.
The indictment charges Taylor Leigh Plain Bull, 27, with first degree murder, assault with intent to commit murder and two counts of use of a firearm during and in relation to a crime of violence.
The indictment alleges that on Oct. 24, on Blue Creek Road, on the Crow Indian Reservation, Plain Bull unlawfully killed a person identified as Jane Doe with malice aforethought and that he intentionally assaulted a person identified as John Doe with intent to commit murder. The indictment further alleges Plain Bull used a .45 caliber semi-automatic pistol in committing the crimes.
First degree murder carries a sentence of mandatory life in prison, a $250,000 fine and five years of supervised release. Assault with intent to commit murder carries maximum sentence of 20 years in prison, a $250,000 fine and three years of supervised release. The firearms charge carries a penalty of a mandatory minimum 10 years to life in prison consecutive to any other sentence, a $250,000 fine and five years of supervised release.
An indictment is merely an accusation, and Plain Bull is presumed innocent until proven guilty beyond a reasonable doubt.
An arraignment on the indictment is scheduled for Nov. 23. Plain Bull is detained.
The FBI investigated the case.
PACER case reference. 20-136.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Firebomb Attack Plotters Sentenced to Combined over 23 Years in PrisonRead the Press Release
ALEXANDRIA, Va. – A Maryland Darknet vendor and a Nebraska pharmacist were sentenced today to a combined over 23 years in prison for their respective roles in a conspiracy to use explosives to firebomb and destroy a competitor pharmacy.
According to court documents, William Anderson Burgamy IV, 33, of Hanover, Maryland, told co-conspirator, Hyrum T. Wilson, 41, of Auburn, Nebraska, that he would never surrender to law enforcement, that if anyone showed up during the attack, he would “blast [his] [expletive] way out,” and that he would shoot bullets at anyone who attempted to confront or apprehend him, including the owner of the victim pharmacy. Prior to Burgamy’s arrest in April 2020, which uncovered and thwarted the firebombing plot, Burgamy and Wilson fully intended on the attack occurring after COVID-19 restrictions were lifted.
From August 2019 through April 2020, Wilson illegally mailed over 19,000 dosage units of prescription medications, including opioids, from his pharmacy in Nebraska to Burgamy’s residence in Maryland. Burgamy illegally sold prescription drugs through his Darknet vendor account to customers nationwide, including here in the Eastern District of Virginia, and claimed at one point that he made nearly $1 million total. Burgamy and Wilson laundered the proceeds of their scheme using Bitcoin cryptocurrency payments, wire transfers, and bundles of cash sent through the mail.
Given the profitability of the Darknet scheme, Wilson repeatedly hit limits, set by his distributor, on the amount of prescription drugs that he could obtain and provide to Burgamy. Consequently, Burgamy and Wilson developed an attack plot known as “Operation Firewood” to break into, steal the opiate supply of, and firebomb a competing pharmacy located in Auburn by using explosives. The goal of the attack plot was to destroy Wilson’s local competition, which Burgamy and Wilson believed would increase the volume of prescription drugs that Wilson’s pharmacy could obtain, thereby allowing Burgamy and Wilson’s drug trafficking operation to continue and expand.
Wilson created a “getaway” map and escape routes for Burgamy to use to help him evade law enforcement detection after the firebombing. Wilson instructed Burgamy to make the firebombing appear as though it was committed by a fictitious “pissed off husband” who learned about a fabricated affair involving the husband’s wife and a pharmacist from the victim pharmacy. Burgamy and Wilson also discussed obtaining and selling hydroxychloroquine and chloroquine for illegal distribution purposes in order to further profit from the ongoing COVID-19 pandemic.
Burgamy assured Wilson that if anything happened to him, he would take care of Wilson’s “family and bills,” and Wilson agreed to safeguard Burgamy’s life insurance information in the event Burgamy was killed during the attack. Burgamy and Wilson also agreed that Burgamy and another individual would carry multiple firearms during the attack and use explosives, specifically Molotov cocktails enhanced with Styrofoam as a thickening agent, to burn the victim pharmacy down. Law enforcement located eight unsecured fully loaded firearms in Burgamy’s residence, including AR-15 assault rifles and numerous high capacity magazines.
Burgamy and Wilson were sentenced to 168 months and 112 months in prison respectively.
This prosecution was part of an international enforcement operation targeting opioid traffickers on the Darknet. Operation DisrupTor, announced on September 22, was conducted across the United States and Europe and resulted in over 170 arrests worldwide, the seizure of weapons, drugs, and over $6.5 million.
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; Peter R. Rendina, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; Mark S. McCormack, Special Agent in Charge, FDA Office of Criminal Investigations, Metro Washington Field Office; and Jesse R. Fong, Special Agent in Charge for the DEA’s Washington Field Division, made the announcement after sentencing by Senior U.S. District Judge T.S. Ellis III.
First Assistant U.S. Attorney Raj Parekh prosecuted both cases.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-150 and Case No. 1:20-cr-151.
Federal Officials Announce the Dismantling of a Multi-Drug Trafficking Organization and the Arrests of its ParticipantsRead the Press Release
PITTSBURGH – Twenty-one members of a drug trafficking organization primarily operating in Washington, Allegheny and Fayette Counties in southwestern Pennsylvania have been indicted by a federal grand jury for trafficking significant quantities of cocaine, crack cocaine, heroin and fentanyl, United States Attorney Scott W. Brady announced today.
"From Erie to Fayette and Lawrence to Cambria, we are systematically dismantling drug trafficking organizations operating in every western Pennsylvania county," said U.S. Attorney Brady. "The Marcus Brown DTO has joined a long list of cocaine and heroin distribution networks that are out of business and behind bars."
"The FBI and our partners will not let drugs and gun violence rip apart our communities," said FBI Pittsburgh Special Agent in Charge Michael Christman. "Many of the people arrested have dangerous, violent criminal histories. They thrived on selling drugs that lead to dangerous consequences. Let this be a warning to other bad actors. The FBI and our partners will stop at nothing to investigate, disrupt and hold accountable those who insist on bringing their harmful business to our neighborhoods."
Seventeen of the defendants were arrested yesterday as part of FBI Operation Skyfall, an OCDETF investigation that included seven months of judicially authorized federal wiretaps of ten phones and identified a drug trafficking organization allegedly headed by Marcus Brown that operated throughout the Western District of Pennsylvania and New Jersey. Four of the defendants were already in custody. According to a Criminal Complaint filed in October, Marcus Brown and Steve Law, IV obtained cocaine and heroin in New Jersey and then transported the cocaine and heroin back to the Western District of Pennsylvania for distribution to others in the conspiracy.
Specifically, the Indictment returned on Nov. 12 and unsealed yesterday charges the following individuals at Count One with conspiring to distribute and possess with intent to distribute five kilograms or more of cocaine, in the Western District of Pennsylvania and elsewhere, from in and around April of 2020 and continuing until on or about October 27, 2020:
Marcus Brown, 33, of Washington, PA;
Brandon Boone, 38, of Washington, PA;
Kenneth Brooks, Jr., 27, of Washington, PA;
Kevin Bush, 51, of Washington, PA;
Marc Cain, 57, of Washington, PA;
Brian Householder, 57, of Greensburg, PA;
Steve Law, IV, 29, of Washington, PA;
Princess Makokele, 40, of Washington, PA;
David McComb, 32, of Coraopolis, PA;
Steve Miller, 48, of Allegheny, PA;
Andrew Molinaro, 42, of Canonsburg, PA;
Johnnita Richardson, 33, of Washington, PA;
Warren Sadler, 56, of Washington, PA;
Matthew Spicer, 50, of Canonsburg, PA;
Kristen Steffan, 36, of Canonsburg, PA; and
James Vance, 36, of Jersey City, NJ.
The Indictment also charges the following individuals at Count Two with conspiring to distribute and possess with intent to distribute 280 grams or more of crack cocaine, in the Western District of Pennsylvania and elsewhere, from in and around June of 2020 and continuing until on or about October 27, 2020:
Marcus Brown, 33, of Washington, PA;
Brandon Boone, 38, of Washington, PA;
Kenneth Brooks, Jr., 27, of Washington, PA;
Michael Brown, 56, of Brownsville, PA;
Steve Law, IV, 29, of Washington, PA;
Princess Makokele, 40, of Washington, PA;
Michael Pusateri, 39, of Washington, PA; and
Warren Sadler, 56, of Washington, PA.
At Count Three, the Indictment charges the following individuals with conspiring to distribute and possess with intent to distribute a quantity of cocaine, in the Western District of Pennsylvania, from in and around June of 2020 and continuing until in and around August of 2020:
Walter Brunson, Jr., 51, of Pittsburgh, PA;
Shawn McFarland, 51, of Lawrence, PA;
Matthew Spicer, 50, of Canonsburg, PA; and
Bradley Stopperich, 49, of Washington, PA.
Finally, at Count Four, the Indictment charges the following individuals with conspiring to distribute and possess with intent to distribute a quantities of heroin and fentanyl, in the Western District of Pennsylvania and elsewhere, from in and around August of 2020 and continuing until on or about October 27, 2020:
Marcus Brown, 33, of Washington, PA;
Kenneth Brooks, Jr., 27, of Washington, PA;
Steve Law, IV, 29, of Washington, PA; and
James Vance, 36, of Jersey City, NJ.
As to Counts One and Two, the law provides for a maximum total sentence of not less than 10 years to a maximum of life imprisonment, a fine of up to $10,000,000, or both, as to each charged Defendant. As to Counts Three and Four, the law provides for a maximum total sentence of not more than 20 years, a fine up to $1,000,000, or both, as to each charged Defendant. Under the Federal Sentencing Guidelines, the actual sentences imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendants.
Assistant United States Attorneys Mark V. Gurzo and Jerome A. Moschetta are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation in Pittsburgh, PA led the multi-agency investigation that included members of the Pennsylvania State Police, United States Postal Inspection Service, Allegheny County Police Department, Allegheny County Port Authority Police Department, Allegheny County Sherriff’s Office, Pittsburgh Bureau of Police, Stowe Township Police Department, and North Versailles Police Department.
This case is part of the Organized Crime Drug Enforcement Task Force program, known as OCDETF. OCDETF was established in 1982 to support comprehensive investigations and prosecutions of major drug trafficking and money laundering organizations. It is the keystone of the drug reduction strategy of the Department of Justice. By combining the resources and expertise of federal agencies and their state and local law enforcement partners, OCDETF identifies, disrupts, and dismantles the most serious drug trafficking, money laundering, and transnational criminal organizations.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Federal Jury Convicts Brighton Man of Multiple Child Pornography ChargesRead 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 a federal jury has convicted Richard Dzionara-Norsen, 29, of Brighton, NY, of possession, receipt, and distribution of child pornography. The charges carry a minimum penalty of five years in prison, and maximum of 20 years in prison, a lifetime period of supervised release, and a $250,000 fine.
Assistant U.S. Attorneys Kyle P. Rossi and Meghan K. McGuire, who handled the trial of the case, stated that the defendant was apprehended by members of the FBI Child Exploitation Task Force after sharing a child pornography video with an undercover investigator over a peer to peer file sharing network. Subsequent investigation determined that Dzionara-Norsen had been receiving and distributing child pornography for a number of years. The images of child pornography depicted children as young as infants and also included depictions of violence against children.
The verdict is the result of an investigation by the Federal Bureau of Investigation, Child Exploitation Task Force, under the direction of Special Agent in Charge Stephen Belongia.
Sentencing is scheduled for February 17, 2021, at 3:30 p.m. before Chief U.S. District Judge Frank P. Geraci, Jr. who presided over the trial.
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Federal Court Enjoins Tucson Area Tax Preparer from Preparing Tax ReturnsRead the Press Release
The Justice Department announced today that a federal court in Arizona permanently enjoined a Tucson area tax return preparer from preparing federal income tax returns for others.
The civil complaint filed in the case alleged that Joseph Michael Vosberg included false business losses and charitable deductions on some of his clients’ returns. According to the complaint, Vosberg also allegedly instructed his clients to keep receipts from their day-to-day activities to document their false business expenses and charitable donations in the event of an IRS audit and not to cooperate with the IRS during civil audits. The complaint alleges that Vosberg’s fraudulent tax return preparation activities have caused significant harm to his customers, the United States, and the public at large.
Vosberg consented to the entry of a permanent injunction as part of his 2018 plea agreement with the United States in United States v Vosberg, CR 18-2527-RCC-EJM (D. Ariz.) (Dkt. No. 7). Under the terms of that agreement, Vosberg pleaded guilty to two counts of aiding and assisting in the preparation and presentation of a false federal income tax return.
“Return preparer fraud is a significant drain on the U.S. Treasury, and the Justice Department is committed to working with the IRS to bring enforcement actions against return preparers who prepare fraudulent tax returns,” said Principal Deputy Assistant Attorney General Richard Zuckerman. “The Tax Division will use all available enforcement tools to hold dishonest return preparers accountable and protect the U.S. Treasury from further damage.”
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant. The IRS has information on its website for choosing a tax return preparer and has launched a free directory of federal tax preparers.
In the past decade, the Department of Justice Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Federal Contractor Agrees to Pay $18.98 Million for Alleged False Claims Caused by Overcharges and Unqualified LaborRead the Press Release
WASHINGTON – Cognosante, LLC has agreed to pay the United States $18,987,789 to resolve allegations that it violated the False Claims Act by using unqualified labor and overcharging the United States for services provided to government agencies under two General Services Administration (GSA)) contracts, the Justice Department announced today. Cognosante, which is headquartered in Falls Church, Virginia, provides health care and IT services and solutions to federal agencies.
GSA’s Multiple Award Schedule (MAS) contracts allow the federal government to leverage its buying power to achieve favorable pricing. Under MAS contracts, contractors negotiate with GSA to set maximum prices for goods and services subsequently ordered by agencies across the federal government. These contracts provide streamlined access to the federal marketplace.
The settlement resolves allegations that Cognosante overcharged the United States for services performed under two GSA MAS contracts, including by providing false information concerning Cognosante’s commercial discounting practices during contract negotiations. It also resolves allegations that Cognosante charged the United States for labor that failed to meet the qualifications in one of the contracts.
“MAS contract holders must deal forthrightly with federal agencies during negotiations and throughout the life of their contracts,” said Acting Attorney General Jeffrey Bossert Clark of the Justice Department’s Civil Division. “We will hold accountable contractors who cause the government to pay more than it should for goods and services.”
“This settlement exhibits our dedication to recover overcharges paid by the government,” said Acting U.S. Attorney for the District of Columbia Michael R. Sherwin. “We expect our contracting partners to be fully candid with the government, and we will pursue those that fail to fulfill that expectation.”
"Today's settlement is a result of the successful partnership of the Office of Inspector General and the Department of Justice to protect and maintain the integrity of GSA's Multiple Award Schedule program,” said Carol F. Ochoa, Inspector General of GSA.
Cognosante investigated and disclosed to the United States the contractual violations resolved in the settlement. It received credit for its disclosure and cooperation.
The settlement was the result of a joint investigation by the General Services Administration OIG, the United States Attorney’s Office for the District of Columbia, and the Civil Division’s Commercial Litigation Branch. The claims resolved by the settlement agreement are allegations only and there has been no determination of liability.
Federal Contractor Agrees to Pay $18.98 Million for Alleged False Claims Act Caused by Overcharges and Unqualified LaborRead the Press Release
Cognosante LLC has agreed to pay the United States $18,987,789 to resolve allegations that it violated the False Claims Act by using unqualified labor and overcharging the United States for services provided to government agencies under two General Services Administration (GSA) contracts, the Justice Department announced today. Cognosante, which is headquartered in Falls Church, Virginia, provides health care and IT services and solutions to federal agencies.
GSA’s Multiple Award Schedule (MAS) contracts allow the federal government to leverage its buying power to achieve favorable pricing. Under MAS contracts, contractors negotiate with GSA to set maximum prices for goods and services subsequently ordered by agencies across the federal government. These contracts provide streamlined access to the federal marketplace.
The settlement resolves allegations that Cognosante overcharged the United States for services performed under two GSA MAS contracts, including by providing false information concerning Cognosante’s commercial discounting practices during contract negotiations. It also resolves allegations that Cognosante charged the United States for labor that failed to meet the qualifications in one of the contracts.
“MAS contract holders must deal forthrightly with federal agencies during negotiations and throughout the life of their contracts,” said Acting Attorney General Jeffrey Bossert Clark of the Justice Department’s Civil Division. “We will hold accountable contractors who cause the government to pay more than it should for goods and services.”
“This settlement exhibits our dedication to recover overcharges paid by the government,” said Acting U.S. Attorney for the District of Columbia Michael R. Sherwin. “We expect our contracting partners to be fully candid with the government, and we will pursue those that fail to fulfill that expectation.”
“Today's settlement is a result of the successful partnership of the Office of Inspector General and the Department of Justice to protect and maintain the integrity of GSA's Multiple Award Schedule program,” said Carol F. Ochoa, Inspector General of GSA.
Cognosante investigated and disclosed to the United States the contractual violations resolved in the settlement. It received credit for its disclosure and cooperation.
The settlement was the result of a joint investigation by the GSA OIG, the U.S. Attorney’s Office for the District of Columbia, and the Civil Division’s Commercial Litigation Branch. The claims resolved by the settlement agreement are allegations only and there has been no determination of liability.
Executions Scheduled for Inmates Convicted of Brutal Murders Many Years AgoRead the Press Release
Attorney General William P. Barr today directed the Federal Bureau of Prisons to schedule the executions of three federal-death row inmates sentenced to death for staggeringly brutal murders, including the murder of a child and, with respect to two inmates, the murder of multiple victims.
- Alfred Bourgeois abused, tortured, and beat to death his young daughter. After a paternity test identified Bourgeois as the father of a two-and-a-half-year-old girl and a court ordered that he pay child support to the mother, Bourgeois took temporary custody of his daughter and brought her with him on a trucking route. While on the trip, Bourgeois systematically abused and tortured her — including by punching her in the face, whipping her with an electrical cord, and burning the bottom of her foot with a cigarette lighter. In July 2002, Bourgeois arrived at the Corpus Christi Naval Air Station for a delivery. While backing his truck up to a loading dock, his daughter tipped over her training potty. Bourgeois became enraged and repeatedly slammed the back of her head into the truck’s window and dashboard, killing her. On March 16, 2004, a jury in the U.S. District Court for the Southern District of Texas found Bourgeois guilty of murder within the special territorial jurisdiction of the United States, and unanimously recommended a death sentence, which the court imposed. His conviction and sentence were affirmed on appeal, and his requests for collateral relief were ultimately rejected by federal courts. In July 2019, his execution was scheduled for Jan. 13, 2020, but legal impediments prevented the government from proceeding at that time. Bourgeois is scheduled to be executed by lethal injection on Dec. 11, 2020, at the Federal Correctional Complex, Terre Haute, Indiana.
- Cory Johnson murdered seven people — Peyton Johnson, Louis Johnson, Bobby Long, Dorothy Armstrong, Anthony Carter, Linwood Chiles, and Curtis Thorne — in furtherance of his drug-trafficking activities. Between 1989 and July 1992, Johnson and several co-conspirators, including federal death-row inmates Richard Tipton and James Roane, were partners in a large drug-trafficking conspiracy based in Richmond, Virginia. In early 1992, Johnson went on a killing spree, shooting and killing each of the seven victims for perceived slights or rivalry in the drug trade. Johnson shot one victim at close range after ordering him to place his head on a car steering wheel. Johnson shot and killed another victim at the victim’s home when he failed to pay for crack cocaine — and Johnson also murdered the victim’s sister and a male acquaintance. In February 1993, a jury in the U.S. District Court for the Eastern District of Virginia found Johnson guilty of numerous federal offenses, including seven counts of capital murder, and unanimously recommended seven death sentences, which the court imposed. Johnson’s convictions and sentences were affirmed on appeal more than 24 years ago, and his initial round of collateral challenges failed 15 years ago. Johnson’s execution initially was scheduled to occur in May 2006, but a preliminary injunction prevented the government from proceeding until it was vacated this September. Johnson is scheduled to be executed by lethal injection on Jan. 14, 2021, at the Federal Correctional Complex, Terre Haute, Indiana.
- Dustin John Higgs kidnapped and murdered three women — Tamika Black, 19; Tanji Jackson, 21; and Mishann Chinn, 23. One evening in January 1996, Higgs and two friends drove to Washington, D.C., to pick up Black, Jackson, and Chinn, whom Higgs had invited to his apartment in Laurel, Maryland. At the apartment, Jackson rebuffed an advance by Higgs and the women left. Higgs offered the women a ride back to Washington, D.C., but instead drove to a secluded area in the Patuxent National Wildlife Refuge, ordered the women out of the vehicle, gave a gun to one of the friends, and said, “better make sure they’re dead.” The other man shot Black and Jackson in the chest and back, and shot Chinn in the back of the head, killing all three women. On Oct.11, 2000, a jury in the U.S. District Court for the District of Maryland found Higgs guilty of numerous federal offenses, including three counts of first-degree premeditated murder, three counts of first-degree felony murder, and three counts of kidnapping resulting in death, and unanimously recommended nine death sentences, which the court imposed. Higgs’ convictions and sentences were affirmed on appeal nearly 17 years ago, and his initial round of collateral challenges failed nearly eight years ago. Higgs is scheduled to be executed on Jan. 15, 2021.
Employee of Middletown Used Car Dealership Admits Role in Auto Loan Fraud SchemeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that JUSTIN WILLIAMS, 42, of Rocky Hill, waived his right to be indicted and pleaded guilty yesterday to one count of wire fraud arising from an auto loan fraud scheme.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the court proceeding before U.S. Magistrate Judge Thomas O. Farrish occurred via videoconference.
According to court documents and statements made in court, Williams worked as a salesman and de facto general manager at a used car dealership located at 1075 Newfield Street in Middletown, known variously as Car Nation, LLC, Car Nation CT, LLC, and Middletown Motorcars, which was owned and operated by George Hajati. In connection with automobile loan applications for multiple borrowers, Williams, Hajati and others submitted documents and statements to victim lenders that falsely represented the borrower’s employment, salary, sources of income, and amount of a down payment. The false documents included fictitious or altered borrower pay stubs and income verification letters purportedly from the Social Security Administration. Williams submitted loan applications indicating that borrowers made salaries they did not make, worked at jobs they did not work, received income from the Social Security Administration they did not receive, and made down payments they did not make. In some instances, the borrower was not aware of, and did not authorize, Williams’ use of his or her personal identifying information to obtain automobile loans in these ways.
Between approximately November 2015 and June 2016, Williams defrauded lenders of $300,037.02 through this scheme.
Williams was arrested on a criminal complaint on January 16, 2020.
Williams was previously convicted of federal fraud charges related to a Hartford-area scheme to defraud mortgage lenders, and he was on federal supervised release at the time of the auto loan fraud.
At sentencing, which is not scheduled, Williams faces a maximum term of imprisonment of 30 years. He also faces additional penalties for violating the conditions of his supervise release.
Williams has been released on a $100,000 bond since his arrest.
Hajati pleaded guilty to one count of wire fraud stemming from this scheme. He also was previously convicted of federal fraud charges related to the Hartford-area mortgage fraud scheme and was serving a term of supervised release. In June 2020, he was sentenced to 27 months of imprisonment and ordered to pay $654,952.56 in restitution for his role in the auto loan fraud scheme, and was sentenced to an additional 21 months of imprisonment for violating the conditions of his supervised release.
This matter has been investigated by the Federal Bureau of Investigation and the Social Security Administration Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorneys Conor M. Reardon and David T. Huang.
East Hartford Man Who Operated Manchester Drug Mill Pleads Guilty to Fentanyl Trafficking ChargeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration for New England, and Manchester Police Chief William Darby announced that LUIS CIURO, 36, of East Hartford, waived his right to be indicted and pleaded guilty today to one count of possession with intent to distribute 400 grams or more of fentanyl.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the court proceeding before U.S. District Judge Kari A. Dooley occurred via videoconference.
According to court documents and statements made in court, on October 15, 2019, Manchester Police received a call reporting that a woman was yelling and displaying a gun outside of an apartment building on John Olds Drive in Manchester. Law enforcement had previously received information that an individual was operating a fentanyl mill in an apartment within the same building.
Responding officers conducted surveillance of the building and saw Ciuro exit the building and place a black bag into the trunk of a car. After Ciuro and another individual entered the car and it drove away, officers conducted a traffic stop. An officer opened the trunk of car and retrieved the bag that Ciuro had carried from the building. The bag contained one shoebox that contained approximately $70,000 in cash, and a second shoebox that contained two loaded handguns, both of which had been reported stolen. After Ciuro admitted to law enforcement that used an apartment on John Olds Drive to store and process narcotics, a search of the apartment revealed approximately 687 grams of fentanyl, .69 grams of PCP, four grams of psilocybin mushrooms, and various drug-packaging materials.
Ciuro’s criminal history includes a federal conviction for conspiring to distribute crack cocaine. On January 4, 2008, he was sentenced in New Haven federal court to 84 months of imprisonment for that offense.
Judge Dooley scheduled sentencing for February 12, 2021, at which time Ciuro faces a mandatory minimum term of imprisonment of 15 years and a maximum term of imprisonment of life.
The penalties in this case are enhanced based on Ciuro’s criminal history.
Ciuro is detained pending sentencing.
This investigation is being conducted by the Drug Enforcement Administration’s Hartford Task Force and the Manchester Police Department. The Task Force includes personnel from the DEA Hartford Resident Office and the Bristol, Hartford, East Hartford, Manchester, New Britain, Rocky Hill, Wethersfield, Windsor Locks and Willimantic Police Departments.
This case is being prosecuted by Assistant U.S. Attorney Nathaniel J. Gentile.
Duval Man Sentenced to 80 Years for Producing Photographs of His Sexual Assault of an Infant and Eighteen-Month-Old ChildRead the Press Release
Jacksonville, Florida – U.S. District Judge Timothy J. Corrigan has sentenced Harlon David Prater (Jacksonville, 28) to 80 years in federal prison for producing photographs of his ongoing sexual assaults of an infant and 18-month-old child, and for distributing child sexual abuse material. The court also ordered Prater to a life term of supervised release and to pay restitution.
Prater had pleaded guilty on January 17, 2020.
According to court documents, the Jacksonville Sheriff’s Office (JSO) began investigating reports of an individual sharing child sexual abuse material on social media and file-sharing applications. JSO determined that some of the files contained data indicating that the files were created at a residence in Duval County, Florida.
JSO detectives obtained a search warrant for the residence, where they encountered Prater. During an interview, Prater admitted to viewing and sharing child pornography. He also admitted that he had used his cellular telephone to produce files of child pornography depicting his sexual abuse of two different child victims. A forensic review of Prater’s cellular telephone revealed more than 900 images and more than 50 videos depicting the child exploitation of children. JSO forensics unit discovered photographs on Prater’s smart phone depicting Prater’s rape of an infant and also of an 18-month-old baby. Prater sent self-produced videos and images of child sexual abuse material to others using a social media application.
“These heinous crimes against children must come to an end,” said HSI Jacksonville Assistant Special Agent in Charge K. Jim Phillips. “The sentencing in this case represents how committed HSI and our partners are about removing dangerous predators from our streets.”
This case was investigated by the Jacksonville Sheriff’s Office and Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Kelly S. Karase.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit
www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Defendant Pleads Guilty to Involuntary Manslaughter after Killing a Man at a Tulsa Bus StationRead the Press Release
A Tulsa man pleaded guilty today to involuntary manslaughter in Indian Country after killing Barry James Harrell during a brief altercation in downtown Tulsa, announced U.S. Attorney Trent Shores.
At his plea hearing, Harlan Frank Hardiman, 51, admitted that on Sept. 3, 2020, he punched Harrell in the head at the downtown Tulsa Transit bus terminal located at 319 S. Denver Ave. As a result of the punch, the victim fell and hit his head on the concrete sidewalk. The defendant stated that he walked away from the victim as he lay motionless on the ground. Harrell subsequently died of a massive head bleed, called a subdural hematoma.
“Harlan Hardiman acted recklessly when he punched Mr. Harrell then walked away while the victim lay unresponsive on the sidewalk. Sadly, Mr. Harrel lay there 15 minutes before aid was rendered and died the following morning,” said U.S. Attorney Trent Shores. “Hardiman has now been held accountable for his actions, and a federal judge will sentence him at a hearing on Feb. 26, 2021.
The FBI and Tulsa Police Department conducted the investigation. Assistant U.S. Attorney Kevin Fletcher is prosecuting the case. AUSA Fletcher is a prosecutor from the Northern District of Iowa. He volunteered to assist prosecution efforts here in the Northern District of Oklahoma due to the increased volume of cases since the Supreme Court’s ruling which stated the Creek Nation Reservation had never been officially disestablished by Congress. The United States and the Muscogee (Creek) Nation have jurisdiction of all cases that occur on the reservation involving Native American victims or defendants.
Chinese National Pleads Guilty for Role in $1.1 Million Fraud SchemeRead the Press Release
ALEXANDRIA, Va. – A Chinese national pleaded guilty today to his role in a $1.1 million fraud conspiracy involving gift cards.
According to court documents, Jin Hong, 38, of Richmond, was part of a wire fraud conspiracy in which members of the conspiracy contacted victims by telephone or through social media and assumed fictitious identities. The conspirators falsely claimed to be from the Internal Revenue Service or an employee of a financial institution and falsely told victims they were entitled to money or under some form of immediate financial threat, such as having their personal identification information compromised by known criminals. Hong and his co-conspirators used these ruses and others to trick the victims into purchasing gift cards and then sending the gift cards’ redemption codes to them. The redemption codes allow the gift cards to be redeemed without being in possession of the physical card.
Hong, along with co-conspirators Shouming Sun, He Li, Yuchen Zhang, and others, then used the fraudulently obtained redemption codes to purchase goods totaling approximately $1.1 million.
Hong is scheduled to be sentenced on April 7, 2021. He faces a maximum penalty of 20 years 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; James A. Dawson, Special Agent in Charge of the FBI’s Washington Field Office Criminal Division; Colonel Edwin C. Roessler Jr, Chief of Fairfax County Police; and J. Russell George, Treasury Inspector General for Tax Administration, made the announcement after U.S. District Judge Anthony J. Trenga accepted the plea.
Assistant U.S. Attorney William Fitzpatrick and Special Assistant U.S. Attorney Viviana Vasiu are prosecuting the case.
This matter was investigated by the FBI Washington Field Office's Transnational Organized Crime Task Force which is composed by FBI agents along with local, state, and federal partners. Significant investigative assistance was provided by the Fairfax County Police Department.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-254.
Chichester Man Pleads Guilty to Distribution of FentanylRead the Press Release
CONCORD - Travis Dunn, 31, of Chichester, pleaded guilty in federal court on Thursday to distribution of fentanyl, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on August 27, 2019, Dunn aided and abetted two co-defendants by driving them to Lawrence, Massachusetts to pick up drugs for redistribution in New Hampshire. On the return trip, the co-defendants sold fentanyl to an individual who was cooperating with Nashua Police detectives. Immediately following the drug deal, detectives arrested Dunn and the co-defendants.
Dunn is scheduled to be sentenced on March 1, 2021.
“Massachusetts fentanyl distributors continue to work through New Hampshire dealers to amass profits,” said U.S. Attorney Murray. “The resulting fentanyl sales undermine the health and safety of our fellow citizens. Through Operation SOS, we are targeting the dealers who peddle fentanyl and other deadly drugs in Hillsborough County. By working closely with the Nashua Police Department, we are putting the drug dealers out of business and improving the quality of life in Nashua.”
This matter was investigated by the Nashua Police Department. The case is being prosecuted by Assistant U.S. Attorney Joachim H. Barth.
This case is part of Operation Synthetic Opioid Surge (S.O.S.). In July of 2018, Attorney General Jeff Sessions announced the creation of S.O.S., which is being implemented in the District of New Hampshire and nine other federal districts. The goal of S.O.S. is to combat the large number of overdoses and deaths associated with fentanyl and other synthetic opioids. In New Hampshire, the U.S. Attorney’s Office is focusing its efforts on prosecuting synthetic opioid trafficking cases arising in Hillsborough County, which includes Manchester and Nashua.
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Bronx Man Admits Trafficking a Kilogram of Heroin to PlattsburghRead the Press Release
UTICA, NEW YORK – Guisseppi Osorio, age 27, of the Bronx, New York, pled guilty yesterday to possessing and intending to distribute a kilogram of heroin.
The announcement was made by Acting United States Attorney Antoinette T. Bacon; Ray Donovan, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Field Division; and New York State Police Superintendent Keith Corlett.
Osorio admitted that on February 11, 2020, he hid 1,006 grams of heroin in the rear quarter panel of a vehicle. Once in Peru, New York, Osorio and his co-defendant driver, Alcibiades Fernandez-Nunez, were pulled over by the New York State Police. A subsequent search of the vehicle resulted in the police finding the heroin that the pair intended to distribute in Plattsburgh.
Osorio faces at least 10 years and up to life in prison, and at least 5 years of post-imprisonment supervised release, when United States District Judge David N. Hurd sentences him on March 18, 2021. 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.
Fernandez-Nunez pled guilty to the same charge on August 13, 2020 and is scheduled to be sentenced on February 10, 2021.
The case was investigated by the DEA, with assistance from the New York States Police, and is being prosecuted by Assistant U.S. Attorney Douglas Collyer.
Bedford priest charged in scheme to defraud church of more than $250,000Read the Press Release
U.S. Attorney Justin Herdman announced today that a grand jury sitting in Cleveland has returned a 10-count indictment charging Andrey Kovalenko, age 52, formerly of Bedford, Ohio, with ten counts of mail fraud. The defendant was previously charged by criminal complaint.
“This defendant is accused of using his position as a priest to embezzle funds intended to serve his parishioners and the community,” said U.S. Attorney Justin Herdman. “The defendant’s alleged embezzlement was so wide-ranging that at least one local parish suffered financial ruin. He must now answer for these actions in federal court.”
According to the indictment, the defendant is an ordained Russian Orthodox priest and was employed as the Director of the Shrine of Mariapoch (SOM) in Burton, Ohio, from May 2014 to June 2015. In addition, from January 2015 through July of 2018, the defendant was employed as the Administrator and Pastor of Saint John Hungarian Byzantine Catholic Church (SJHBCC) in Solon, Ohio and Saint Eugene Byzantine Catholic Church (SEBCC) in Bedford Heights, Ohio.
Through these positions, the defendant had access to several bank accounts, checks and debit cards associated with the religious institutions that he managed. The Byzantine Catholic Eparchy of Parma, which presided over the individual named parishes, had guidelines established for its priests and administrators that detailed the expenses a parish would pay for its priests
and administrators, and the items eligible for reimbursement.
The indictment states that from on or about May 16, 2014, until on or about June 15, 2015, the defendant is accused of embezzling approximately $35,686.97 from SOM bank accounts for prohibited personal expenses, including, but not limited to, payments to grocery, automotive, and department stores.
Furthermore, from on or about January 16, 2015, until on or about July 21, 2018, the indictment alleges that the defendant embezzled approximately $70,404.32 from SJHBCC bank accounts for prohibited personal expenses, including, but not limited to, payments to automobile dealers, contractors, grocery, automotive and department stores, online shopping outlets, and online music services.
Additionally, from on or about January 16, 2015, until on or about July 21, 2018, the defendant is accused of embezzling approximately $187,898.38 from SEBCC bank accounts for prohibited personal expenses, including, but not limited to, payments to an online firearm and ammunition sales company, automobile dealers, grocery, automotive and department stores, online shopping
outlets, and online music services.
As part of his scheme, the defendant is accused of purchasing two freight storage containers from funds associated with SEBCC’s bank account and embezzling fees for the rental of SEBCC’s hall for weddings and other events.
In total, the defendant is accused of embezzling approximately $293,989 from the SOM, SJHBCC, and SEBCC bank accounts for his own personal enrichment. As a result of the defendant’s actions, Saint Eugene Byzantine Catholic Church was closed due to its financial condition.
After the defendant was terminated from the Eparchy of Parma, he continued to use a SJHBCC debit card while in Georgia and Florida for personal expenses totaling approximately $2,035.06.
The indictment charges that from May 16, 2014, until on or about July 31, 2018, the defendant utilized the United States Postal Service and private and commercial interstate carriers to execute his scheme to defraud.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation.
In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation preceding the indictment was conducted by the Cleveland Division of the FBI. This case is being prosecuted by Assistant U.S. Alejandro A. Abreu.
Atlanta pharmacy operators sentenced to federal prison for more than $4 million WIC fraud schemeRead the Press Release
Three owners and operators of an Atlanta pharmacy have been sentenced to federal prison for a multi-million dollar fraud scheme that targeted the Georgia Women, Infants, and Children (“WIC”) program. The defendants bought WIC vouchers from low-income recipients at a discount and then fraudulently sought reimbursement from the federal government at a higher dollar amount as if they had actually provided nutritious food to those recipients.
“The defendants abused a program intended to assist those most in need and diverted public funds to satisfy their own greed,” said U.S. Attorney Byung J. “BJay” Pak. “Vendors who buy WIC vouchers abuse the trust placed in them to serve pregnant woman and young children, and they will be shut down and prosecuted.”
“This investigation and prosecution should send a strong zero-tolerance message to those individuals engaged in the practice of defrauding the taxpayer funded WIC program,” said Jason Williams, Special Agent-in-Charge, USDA-Office of Inspector General. “It should also serve as a warning to all stores that participate in the WIC program as vendors that fraud and trafficking (purchasing those benefits for cash) will be vigorously investigated and prosecuted by the USDA-OIG, the U.S. Attorney's Office, and all its federal, state, and local partners that have a stake in ensuring that fraud is eliminated from taxpayer-funded programs.”
According to U.S. Attorney Pak, the charges and other information presented in court: Pauline Mediko Badiki and Ferdinand Mediko were siblings who owned and operated Poly-Plex Pharmacy, which is located in the Bankhead neighborhood of Atlanta. Monica Mediko, who was Ferdinand Mediko’s wife, worked there as a pharmacy technician. In 2005, Poly-Plex became an authorized vendor of the WIC program, which is a U.S. Department of Agriculture food grant program administered statewide by the Georgia Department of Public Health. The WIC program provides healthy foods to low-income pregnant women, as well as infants and children up to age five who are nutritionally at risk. WIC recipients receive benefits in the form of paper vouchers, which can be exchanged at authorized vendors only for the healthy foods listed on the vouchers. As part of their participation as authorized vendors, the defendants received training on WIC program rules, including the prohibition on buying vouchers.
From at least 2009 through June 2013, the defendants bought WIC vouchers from low-income mothers for a fraction of their face value instead of providing the infant formula and nutritious food listed on the vouchers. After purchasing the vouchers, the defendants deposited them into their bank accounts as if they had provided recipients with the healthy foods listed on the vouchers and sought reimbursement from the U.S. Department of Agriculture.
During the time frame of the conspiracy, the defendants deposited tens of thousands of WIC vouchers that resulted in approximately $6.5 million in reimbursements from federal funds, which far surpassed the WIC redemptions from much larger big-box grocery stores located just miles away. More than $4 million of these redemptions were fraudulent and not supported by Poly-Plex’s actual inventory of food and infant milk during the same time period.
Pauline Mediko Badiki, 56, of Atlanta, Georgia and Ferdinand Mediko, 58, of Atlanta, Georgia, were sentenced to four years and six months in prison, and Monica Mediko, 53, of Atlanta, Georgia, to three years in prison by U.S. District Judge Eleanor L. Ross. Each defendant was also sentenced to two years of supervised release and a special assessment of $3700, and they will be ordered to pay restitution in an amount to be determined at a later hearing. The defendants were convicted at trial on December 10, 2019 of wire fraud conspiracy and 12 counts each of wire fraud, theft of government funds, and WIC fraud.
This case was investigated by the U.S. Department of Agriculture, Office of the Inspector General.
Assistant U.S. Attorneys Nathan P. Kitchens, Deputy Chief of the Cyber and Intellectual Property Crimes Section, and Thomas J. Krepp prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Armed Career Criminal Sentenced to 15 Years in Prison for Possessing A FirearmRead the Press Release
Fort Myers, Florida – United States District Judge John L. Badalamenti has sentenced Isaac D. Harvin (27, Fort Myers) to 15 years in federal prison for possessing a firearm as a convicted felon. Harvin had pleaded guilty on February 14, 2020.
According to court documents, on April 2, 2019, Fort Myers Police Department officers initiated a traffic stop of Harvin’s vehicle after it was confirmed that he was driving without a valid driver’s license. When Harvin exited the driver door, officers smelled the scent of burnt marijuana coming from inside the vehicle. Officers searched the vehicle and located a loaded handgun in the driver side inner kick-panel closest to where the driver’s right knee would be. Harvin was the vehicle’s only occupant. As a previously convicted felon, Harvin is prohibited from possessing firearms or ammunition under federal law.
This case was jointly investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fort Myers Police Department. It was prosecuted by Assistant United States Attorney Trent Reichling.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Arkansas Man Arrested for Attempting to Induce the Molestation of A 9-Year-Old and Producing A Child Sex Abuse Video Using A Social Messaging AppRead the Press Release
Jacksonville, Florida – Cody Dillon Hogan (25, Leachville, Arkansas) has been indicted by a federal grand jury in Jacksonville for attempting to induce the molestation of a 9-year-old child and the production of a child sex abuse video using a popular social messaging app. If convicted, Hogan faces a mandatory minimum penalty of 15 years, and up to 30 years, in federal prison, and a potential life term of supervised release. Hogan was arrested at his residence in Leachville, Arkansas on November 9, 2020, and was subsequently detained pending trial in Jacksonville, which is scheduled for January 4, 2021.
According to court documents and testimony, over a period of several weeks, an undercover FBI agent in Jacksonville, posing as the parent of a 9-year-old child, engaged in online conversations with Hogan using an online social messaging app. During these conversations, Hogan repeatedly solicited the “parent” to produce a pornographic video of the 9-year-old child and sent the undercover agent a $50 gift card as payment. Hogan also gave the “parent” detailed instructions as to how he wanted the “child” to be molested for the requested video.
On November 9, 2020, law enforcement executed a federal search warrant at Hogan’s residence in Arkansas. When interviewed, Hogan admitted that he had had online conversations with the mother of the 9-year-old child about producing and sending him a pornographic video of the child. He also admitted to having sexually explicit conversations online with three additional minor children and convincing two of them to produce and send him pornographic images and videos. A forensic review of Hogan’s iPhone revealed that it contained at least 20-30 videos of prepubescent minor females, 4-8 years old, engaged in sexually explicit conduct.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation in Jacksonville and Jonesboro, Arkansas, and the Jonesboro Police Department. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit
www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Antigravity Effects, Results Laboratories, Their Owner, and Employee to Pay $500,000 to Resolve False Claims Act AllegationsRead the Press Release
Antigravity Effects, LLC (AGE), Results Laboratories LLC (Results), their owner, Mathias Berry, and employee Kate Ross, have agreed to pay the United States $500,000 to resolve False Claims Act allegations that they knowingly billed Medicare for medically unnecessary viscosupplementation injections and medically unnecessary knee braces that were also tainted by illegal kickbacks, the Department of Justice announced today.
Berry has also agreed to an eight-year period of exclusion from participation in federal health care programs, and Ross has agreed to a five-year period of exclusion. Results and AGE are no longer operating.
Viscosupplementation is a treatment therapy for osteoarthritis, in which a doctor injects a gel-like fluid into a patient’s knee joint to act as a lubricant and to supplement the natural properties of joint fluid. AGE licensed branding and business methods for viscosupplementation to chiropractors across the country, which led to the formation of the Osteo Relief Institutes (ORIs). One of those ORIs was based in Minnesota. AGE and Berry received license fees from the ORIs based on their collections. Results acted as a group purchaser for the ORIs to order and purchase medical supplies, including viscosupplements and custom knee braces. Berry owned both companies, and Kate Ross worked for AGE.
The settlement resolves allegations that AGE, Results, Berry, and Ross knowingly caused the ORIs to submit claims to Medicare from 2011 through 2017 for medically unnecessary viscosupplementation and medically unnecessary knee braces that were also tainted by illegal kickbacks. The government alleged that AGE, Results, Berry, and Ross pressured these clinics to administer viscosupplementation injections to patients who did not need them, to use multiple brands of viscosupplements successively on patients without clinical support, and to use discounted viscosupplements reimported from foreign countries.
This settlement also resolves allegations that AGE, Results, Berry, and Ross caused the ORIs to provide unnecessary custom knee braces to patients that were also tainted by illegal kickbacks solicited and received by Results and Berry from Vision Quest, Incorporated (VQ), a knee brace manufacturer located in Irvine, California, in exchange for arranging for the ORIs to purchase the manufacturer’s braces. The United States filed suit against VQ this week, alleging that VQ paid kickbacks to Results in order to sell knee braces to the ORIs.
“Billing Medicare for medically unnecessary procedures and for unnecessary medical devices tainted by kickbacks wastes taxpayer funds and jeopardizes patient health,” said Erica H. MacDonald, U.S. Attorney for the District of Minnesota. “Today’s settlement demonstrates that we will continue to pursue those who seek to enrich themselves at the expense of both taxpayers and patients.”
“The billing of medically unnecessary services and products as well as paying kickbacks to induce medical practitioners to provide such services and products is illegal,” said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General – Chicago Region. “The OIG routinely conducts data analysis in an effort to identify aberrant and potentially fraudulent billing trends and will take action to hold accountable those who seek to defraud federally funded health care programs.”
This settlement is based on the entities’ and individuals’ ability to pay and could total up to $3.875 million, if certain contingencies are triggered.
The allegations resolved by today’s settlement stem from a proactive government investigation based on a critical analysis of Medicare claims data. This effort also led to other previously announced settlements with several former Osteo Relief Institutes and others for their alleged roles in this scheme.
The government’s settlement in this matter illustrates its emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
The matter was investigated by the U.S. Attorney’s Office for the District of Minnesota, the Civil Division’s Commercial Litigation Branch, the Department of Health and Human Services Office of Inspector General, and the Federal Bureau of Investigation. The claims asserted against defendants are allegations only, and there has been no determination of liability.
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Air-Ambulance Company Agrees to Pay $825,000 to Settle Claims for Operating A Helicopter with "Severely Corroded" PartsRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that Air Methods Corporation has agreed to pay $825,000 to settle a civil case alleging that the company violated Federal Aviation Administration (“FAA”) regulations by operating an emergency-services helicopter with severely corroded pitot tubes.
Pitot tubes are components of the pressure measurement system used to determine airspeed. If a pitot tube is not functioning properly, it can cause the airspeed reflected on a helicopter’s instruments to vary significantly from the actual airspeed, cause the helicopter’s auto-pilot to disengage, and present serious safety concerns.
Air Methods, headquartered in Greenwood Village, Colorado, is the country’s largest air medical transport services provider. Air Methods provides emergency transportation to trauma victims, and other patients requiring urgent transfers between medical facilities on its fleet of more than 450 helicopters and fixed-wing aircraft.
Air Methods’ aviation operations are regulated by the FAA, which, as part of its mission to ensure safety, routinely inspects aircraft within its jurisdiction.
The United States contends that on November 4, 2014, an FAA Aviation Safety Inspector inspected an Air Methods helicopter in Tampa, Florida. During that inspection, the safety inspector noticed that the helicopter’s pitot tubes were severely corroded and crumbling to the touch. The inspector informed Air Methods and took photographs to document the corrosion.
When Air Methods showed the photographs to the manufacturer of the helicopter, an employee of the manufacturer responded that the parts were “obviously” outside the scope of what would be considered serviceable to keep a pitot tube in service and recommended replacing the part(s) “as soon as possible.” Internally, Air Methods’ employees agreed that severely corroded pitot tubes “are way beyond acceptable” and “indicative that our crews are not paying attention.” Even so, Air Methods continued to operate the helicopter with severely corroded pitot tubes for several more days before replacing the parts.
On November 4, 2019, the United States filed a civil action, United States v. Air Methods Corp., 19-cv-03130-RM-NRN (D. Colo.), seeking to recover civil penalties from Air Methods. The United States contended that, by operating an air-ambulance helicopter with severely corroded pitot tubes, Air Methods violated FAA “airworthiness” regulations, which require aircraft to be in a condition for safe operation.
Air Methods has now agreed to pay $825,000 to settle the lawsuit.
“When an FAA safety inspector informs an air-ambulance company about a potential safety issue, the company needs to address it immediately,” said U.S. Attorney Jason Dunn. “The consequences of not working cooperatively with the FAA to minimize safety risks can be disastrous for the crew and for those being transported while seriously ill or injured. This settlement reflects how seriously we take any regulatory violations that could create such unnecessary risks.”
The claims against Air Methods are allegations, and in agreeing to settle this matter, Air Methods did not admit to any liability.
This case was being handled by Assistant U.S. Attorneys Ian Kellogg and Andrea Wang in the U.S. Attorney’s Office for the District of Colorado.
Activity in the United States Attorney's OfficeRead the Press Release
Chief Federal District Court Judge Scott W. Skavdahl sentenced ANTONIO CORTES SAEZ, 24, of Gillette, Wyoming on November 13, 2020 for conspiracy to distribute methamphetamine and possession of firearms in furtherance of a drug trafficking crime. Saez was arrested in Gillette, Wyoming. He received one hundred eighty one months of imprisonment, to be followed by sixty months of supervised release, and ordered to pay a $200.00 special assessment. The Wyoming Division of Criminal Investigation investigated this case.
Chief Federal District Court Judge Scott W. Skavdahl sentenced MARK ALAN ALDERTON, 39, of Casper, Wyoming on November 13, 2020 for failure to register as a sex offender. Alderton was arrested in Casper, Wyoming. He received fifteen months of imprisonment, to be followed by sixty months of supervised release, and ordered to pay a $100.00 special assessment. The INVESTIGATING AGENCY investigated this case.
19 November 2020
Worcester Man Indicted for Being a Felon in Possession of Firearm and AmmunitionRead the Press Release
BOSTON – A Worcester man was indicted by a federal grand jury today for being a felon in possession of a firearm and ammunition.
Nicholas Briggs, 21, was indicted on one count of being a felon in possession of a firearm and ammunition. Briggs is currently in state custody and will make an initial appearance in federal court in Worcester at a later date.
According to court documents, on July 4, 2020, Briggs was arrested by police for carrying a loaded Glock pistol. Briggs is prohibited from possessing a firearm due to prior convictions punishable by more than one year in prison.
The charging statute provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Worcester Police Chief Steven M. Sargent made the announcement today. Assistant U.S. Attorney Danial E. Bennett of Lelling’s Worcester Branch Office is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN is part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Worcester Man Charged with Money Laundering and Tax Fraud ChargesRead the Press Release
BOSTON – A federal grand jury in Worcester returned a superseding indictment adding money laundering and tax fraud charges against a Worcester man already under indictment for cocaine and firearms charges.
William Hoey, 40, was indicted in a superseding indictment with two counts of money laundering and three counts of filing a false and fraudulent tax return.
These charges augment the November 2019 indictment charging Hoey with three counts of possession with intent to distribute cocaine and distribution of cocaine; one count of possession with intent to distribute cocaine; one count of possession with intent to distribute more than 500 grams of cocaine; one count of using and carrying a firearm during and in relation to, and possessing a firearm in furtherance of, a drug trafficking crime; and one count of possession of a firearm in furtherance of a drug trafficking crime.
According to the indictment, Hoey was involved in at least two financial transactions involving proceeds from illegal controlled substances, and he knew that the transactions were designed to conceal the nature of the illegal proceeds. The first transaction involved an $80,400 check issued on Oct. 25, 2019. The second transaction occurred on March 24, 2020 and involved a check for approximately $87,000. It is further alleged that Hoey filed false and fraudulent tax returns for himself in 2016, 2017 and 2018 in which he falsely reported his total income for those years.
The charge of possession with intent to distribute cocaine and distribution of cocaine provides for a sentence of up to 20 years in prison, at least three years and up to life of supervised release and a fine of up to $1 million. The charge of possession with intent to distribute more than 500 grams of cocaine provides for a sentence of at least five years and up to 40 years in prison, at least four years and up to life of supervised release and a fine of up to $5 million. The charge of using or carrying a firearm during and in relation to, or possessing a firearm in furtherance of drug trafficking, provides for a mandatory sentence of five years in prison, up to three years of supervised release and a fine of up to $250,000. The charge of money laundering provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $500,000. The charge of filing a false tax return provides for a sentence of up to three years in prison, up to three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; and Joleen Simpson, Acting Special Agent in Charge of Internal Revenue Service-Criminal Investigations made the announcement today. Assistant U.S. Attorney John T. Mulcahy of Lelling’s Worcester Branch Office is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Whittier Paralegal Pleads Guilty to Wire Fraud Charge for Embezzling Money from Immigration Law Firm ClientsRead the Press Release
LOS ANGELES – A Los Angeles County paralegal pleaded guilty today to defrauding more than 100 immigration law firm clients in Southern California by depositing their payments for immigration-related application filing fees or legal services into her personal bank accounts.
Tanya Garcia, 41, of Whittier, pleaded guilty to one count of wire fraud.
According to her plea agreement, from October 2014 to October 2018, Garcia worked at multiple immigration law firms in Los Angeles and Riverside counties. The law firms assisted clients with matters such as obtaining asylum, relief from deportation, U.S. residency and citizenship, and work permits.
Garcia admitted she met with the law firms’ clients and collected payments from them in the form of money orders or checks, representing that the payments would be used for application filing fees with United States Citizenship and Immigration Services (USCIS) or for immigration-related legal services provided by the law firms.
As part of her scheme to defraud, Garcia sometimes instructed clients to leave the “pay to” line of money orders or checks blank and at other times she informed the clients that she would complete the money orders or checks for them. Garcia generally would then write her own name in the “pay to” line of the money orders or checks. Other times, Garcia crossed out “U.S. Department of Homeland Security” from the “pay to” line of money orders and wrote in her own name. Garcia admitted she deposited the clients’ money orders and checks into her personal bank accounts and used the funds to pay off personal expenses including credit card payments, clothing, and food.
In many cases, when the immigration law firms’ clients realized they were not receiving legal services or their immigration-related applications were not being processed by USCIS after providing payment to Garcia, Garcia provided false explanations for the delays or lack of response from USCIS. She also admitted that sometimes she refused to permit the clients to speak to a licensed attorney at the law firms.
In total, Garcia admitted to defrauding at least 144 victim clients. She also admitted to defrauding the clients and the immigration law firms out of approximately $199,077.
United States District Judge George H. Wu has scheduled a February 25, 2021 sentencing hearing, at which time Garcia will face a statutory maximum sentence of 20 years in federal prison.
This matter was investigated by United States Secret Service, the Inglewood Police Department, and the United States Postal Inspection Service.
This case is being prosecuted by Assistant United States Attorneys Brian R. Faerstein of the Environmental and Community Safety Crimes Section, and Patrick Castañeda of the International Narcotics, Money Laundering, and Racketeering Section.