Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
12 November 2020
Two Women Sentenced in Credit Card Fraud Conspiracy CaseRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that two women, KEYIRA GABLE, age 33, of Harvey and BRITTANY WHITE, age 34, of New Orleans, were sentenced today by U.S. District Judge Barry W. Ashe for their participation in a years-long credit card fraud conspiracy.
Judge Ashe sentenced GABLE to a total of 61 months in prison. She had previously pleaded guilty to conspiracy to commit access device fraud and aggravated identity theft. Judge Ashe sentenced WHITE to a total of 37 months in prison based on her previous guilty plea to conspiracy to commit access device fraud and possession of fifteen or more counterfeit or unauthorized access devices.
GABLE and WHITE were the second and third defendants to be sentenced in this seven-defendant conspiracy case. According to court documents, GABLE, WHITE, and their co-conspirators engaged in a scheme to obtain merchandise and cash from stores through fraud. The defendants obtained stolen credit and debit card information, encoded it onto cards, and then used that information to purchase items at stores. The defendants would then return the items at a different store of the same chain, but they would deceive store workers in order to have the chargeback credited to their own bank accounts. Federal agents were able to determine that members of this conspiracy took flights around the country to execute the scheme, including Oregon, South Carolina, Illinois, Tennessee, Missouri, and Florida.
U.S. Attorney Strasser praised the agencies that contributed to this conviction, which represents a coordinated effort of federal and state law enforcement authorities within the Louisiana Financial Crimes Task Force. The Task Force includes representatives from the U.S. Secret Service, U.S. Postal Inspection Service, Louisiana Attorney General’s Office, Jefferson Parish Sheriff’s Office, New Orleans Police Department, Covington Police Department, Hammond Police Department, Kenner Police Department, Louisiana State Police, Mandeville Police Department, Slidell Police Department, St. Bernard Parish Sheriff’s Office, St. John The Baptist Sheriff’s Office, St. Tammany Parish Sheriff’s Office, Tangipahoa Parish Sheriff’s Office, St. Tammany Parish District Attorney’s Office, Homeland Security Investigations, U.S. State Department, Internal Revenue Service, Social Security Administration-Office of Inspector General, and the Defense Criminal Investigative Service. U.S. Attorney Strasser also thanked the Franklin (TN) Police Department, the Mobile Police Department, the Gulfport Police Department, the Minnetonka (MN) Police Department, the Jefferson Parish District Attorney’s Office, and the Orleans Parish District Attorney’s Office for their assistance. Assistant United States Attorneys Matthew R. Payne and K. Paige O’Hale are in charge of the prosecution.
* * *
Two Martin County Men Plead Guilty to Violating Federal Law Governing Ginseng SalesRead the Press Release
PIKEVILLE, Ky. – Two Lovely, Kentucky men, Sherman Jude, 73, and Johnathon Jude, 40, pleaded guilty on Thursday, October 30, before U.S. Magistrate Judge Edward Atkins, to violations of the Lacey Act regarding ginseng purchases and record keeping of said purchases.
The harvesting and sale of ginseng is governed by state regulations, and includes record keeping requirements and a limited harvest season. According to their plea agreements, Sherman Jude was a dealer of wild American ginseng; and his son, Johnathon Jude, worked with him to keep records of the ginseng purchased from diggers and harvesters.
The investigation by the United States Fish and Wildlife Service revealed that over a period of years, the Judes had falsified the required Kentucky Ginseng Purchase Forms for multiple purchases of wild ginseng, including not keeping records of all the purchases, and purchasing ginseng that was known to have been harvested from another state, without being properly certified before entering Kentucky. Sherman Jude also acknowledged that, as of August 2019, he had purchased 12.5 pounds of ginseng that had been harvested improperly, out of season.
The Judes were indicted in June 2020.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky and the United States Fish and Wildlife Service, jointly made the announcement.
The investigation was directed by the United States Fish and Wildlife Service, Kentucky Department of Agriculture, and Kentucky Department of Fish and Wildlife Resources. The United States was represented by Assistant U.S. Attorney Emily K. Greenfield.
The Judes are scheduled to be sentenced on February 17, 2021. Sherman Jude faces a maximum of five years in prison. Johnathon Jude faces up one year in prison. However, any sentence will be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the applicable federal sentencing statutes.
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
– END –
Two Canadian Brothers and their Company, Payza, Sentenced for Conspiring to Launder Money Service BusinessRead the Press Release
WASHINGTON – On November 10, 2020, Firoz Patel and Ferhan Patel, the founders and operators of Payza.com, AlertPay.com, and Egopay.com, and their company MH Pillars were sentenced in the United States District Court for the District of Columbia for operating an Internet-based unlicensed money service business that processed more than $250 million in transactions.
Firoz Patel was sentenced to 36 months of incarceration; Ferhan Patel was sentenced to 18 months of incarceration; and MH Pillars, Inc., doing business as Payza, was sentenced to three years of corporate probation, announced Acting U.S. Attorney Michael R. Sherwin. The defendants were also ordered to forfeit more than $4.5 million that had already been seized by the United States. The defendants were also required to forfeit the websites through which they committed their offenses, Payza.com and AlertPay.com.
On July 17, 2020, Firoz Patel, 46, and Ferhan Patel, 39, both of Quebec, Canada, each pled guilty to Conspiracy to Commit Crimes against the United States by Operating an Unlicensed Money Transmitting Business and by Laundering Monetary Instruments. The Honorable Ketanji B. Jackson of the United States District Court took the defendants’ guilty pleas and sentenced them.
“Operating an unlicensed money transmitting business that launders the transactions of other crimes and frauds is a serious criminal offense. Without the money laundering, the frauds run by Payza’s customers could not have been completed,” said U.S. Attorney Sherwin. “These convictions will remind criminals that the United States will do everything within its power to take the profit out of crime and convict those who enable fraud.”
The defendants, through Payza.com, operated a money transmitting business that operated without the necessary state licenses and knowingly transmitted funds that were derived from illegal activity. Despite receiving cease and desist letters from States and being told by a consultant that operating a money transmission business without the necessary licenses was a crime, Firoz and Ferhan Patel continued their illegal activity. For example, Firoz Patel admitted to operating a prior money service business, AlertPay, which ignored repeated warnings from state regulators about its unlicensed activities. Firoz Patel transitioned AlertPay into Payza after Firoz Patel was the subject of a Tennessee indictment for laundering narcotics proceeds through AlertPay. The defendants admitted that no substantive changes took place during this rebrand.
Payza had numerous merchants which the defendants knew to be Ponzi/pyramid schemes. The defendants admitted to sanitizing Payza’s customers list by removing known illegal merchants, before producing that information to third parties requesting customer information. For example, a co-conspirator informed Ferhan Patel in a series of emails that he was looking through the merchant list to remove “any merchants who have gross violations such as adult, gambling, drugs, violence ect. [sic]. And what I think is the tricky part: Identify MLM’s [multi-level marketing schemes] that are set up as obvious illegal Pyramid schemes.” Payza failed to follow its own “Merchant Risk Guideline,” as internal documents revealed specific failures in relation to preventing the taking on and servicing of pyramid and Ponzi schemes.
The defendants further admitted that Payza struggled to maintain its relationships with financial institutions, because Payza so frequently was found to have customers engaged in illegal activity. Firoz Patel’s solution to this was to create a new company, Egopay, which took on all of Payza’s high risk customers. Firoz Patel and Ferhan Patel caused an email to be sent to high-risk Payza customers directing them to migrate their accounts to Egopay. Ferhan Patel told Firoz Patel that Egopay was a problem in the U.S. because Egopay collected no customer due diligence data which created “obvious money laundering concerns.” Ferhan Patel further admitted to Firoz Patel that Egopay was classified as a money service business and that it had no know your customer checks in place. In spite of these known money laundering problems, Firoz Patel continued to allow Egopay to operate freely via the Payza platform. Ultimately, Egopay was shut down by regulators in Belize, after which Payza began again directly servicing many of Egopay’s customers.
The defendants each admitted that their scheme caused over $250 million to be illegally transmitted and to failing to conduct proper due diligence of their customers. The defendants also acknowledged that their actions were done willfully, knowingly, and with the specific intent to violate the law.
In announcing the sentencing, Mr. Sherwin praised the efforts of those who have investigated and prosecuted the case. He expressed appreciation to the agents who worked on the investigation from the Department of Homeland Security, Immigration and Customs Enforcement, Homeland Security Investigations, Washington Field office. He also commended those who worked on the case from the U.S. Attorney’s Office, including former Paralegals C. Rosalind Pressley and Toni Donato, Paralegals Elizabeth Swienc and Brian Rickers, Records Examiner Angela De Falco, Contract Financial Analyst Jason Hall, Victim Witness Specialists Yvonne Bryant and Basizette Stribling, Legal Assistant Jessica McCormick, and Thomas Royal and Joshua Ellen from the Litigation Support Section.
Finally, he praised the work of Assistant United States Attorney Arvind Lal and former Assistant United States Attorneys Zia Faruqui and John Marston.
Two Brothers, Both Senior City of Philadelphia Officials, Charged with Fraud and EmbezzlementRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that two brothers, Leo and Paul Dignam, were charged by Information with fraud and embezzlement, and a third person, Barbara Conway, was also charged by Information with theft.
Leo Dignam, 61, of Philadelphia, PA, was charged with two counts of wire fraud and one count of embezzling from a program receiving federal funds. Leo’s brother, Paul Dignam, 58, also of Philadelphia, was charged with one count of mail fraud and one count of embezzling from a program receiving federal funds. Barbara Conway, 61, of Drexel Hill, PA, was charged with one count of theft of funds from a program receiving federal funds. At the time of the charged offenses, Leo and Paul Dignam were senior officials with the City of Philadelphia, and Conway was the Food Voucher Coordinator for the Philadelphia Health Management Corporation (PHMC), an agency contracted by the City to manage the Food Voucher Program.
Leo Dignam was an Assistant Managing Director in the Managing Director’s Office and, prior to serving in that position, was the Deputy Commissioner for Programs with the Philadelphia Parks and Recreation (“PPR”) Department. In these positions, he oversaw the administration of major events in the city, such as the Philadelphia Marathon, the Broad Street Run and the Mummers Parade. Mr. Dignam worked for the City of Philadelphia for approximately 38 years.
Over the course of several years, from 2012 through 2019, Leo Dignam allegedly engaged in a scheme to defraud the City of Philadelphia of approximately $150,000 by misusing two bank accounts he controlled on behalf of the City that existed to support the work of PPR, namely, recreational activities for citizens. In particular, he opened a bank account purportedly to support the activities of PPR in connection with a non-profit organization, the Junior Baseball Federation (“JBF”). The JBF partnered with the Philadelphia Phillies to raise most of its funds through the sale of tickets for Phillies games.
Instead of using the JBF bank account solely for its intended public purpose, Leo Dignam allegedly misused the account by converting funds from the account to pay for personal expenses he incurred on an American Express (“AMEX”) credit card that he opened in connection with the JBF account. He used the AMEX card, and shared it with family members, for purchases from retail stores, grocery stores, pharmacies, gas stations, online retailers and service providers, and other businesses. He then used the funds in the JBF bank account to pay off the personal expenses on the credit card.
According to the Information, he similarly misused another account that was created for the benefit of PPR and the citizens of Philadelphia, the Program Advisory Fund Account. The defendant used this account to pay personal expenses by transferring funds directly to a personal account, solely for his own benefit, and by using it to pay personal expenses on a Verizon Wireless Account.
Paul Dignam was the Regional Manager for the South Region of Philadelphia Parks and Recreation. In this position, he oversaw the administration of local recreation centers and playgrounds and supervised the activities of several PPR district managers. In 2011, Paul Dignam opened a bank account that purported to be for use by a recreation advisory council, a commonly used governance structure in PPR that exists to support local recreation centers and playgrounds by helping to raise funds, develop programs, and maintain play sites.
Beginning in 2012 and continuing through 2019, he allegedly misused this bank account by repeatedly writing checks on the account made payable to himself. He helped conceal this fraud by having bank statements mailed to his personal residence and having another individual act as a signatory on the account. The defendant then forged the other individual’s signature on the misappropriated checks and falsely noted in the memo line of the checks that they were “reimbursements” for expenses he incurred by making purchases on behalf of PPR. In sum, Paul Dignam wrote himself approximately 102 checks worth approximately $119,000.
Finally, Barbara Conway was the Food Voucher Coordinator for the Philadelphia Health Management Corporation (PHMC), an organization contracted by the City to manage a Food Voucher Program designed to provide emergency assistance to people living with HIV/AIDS. This initiative is funded by the Ryan White HIV/AIDS Program, a federal program that provides grants to states, cities, counties, and other local organizations to fund care and treatment services for individuals living with the disease.
The Information alleges that beginning in 2015 through 2019, Conway stole more than $39,000 worth of food vouchers intended for HIV/AIDS patients receiving services through the Food Voucher Program.
“All three of these defendants allegedly made the same bad choice to steal funds from federally-funded programs,” said U.S. Attorney McSwain. “Further, in all three cases, the defendants stole money from programs designed to benefit groups that desperately needed the assistance – from patients struggling with HIV/AIDS who require emergency assistance to meet basic necessities to a youth baseball organization serving many underprivileged children. The callousness that the defendants displayed by stealing from these programs is stunning.”
“We share a collective and long-standing devotion to integrity in City government, and I wish to thank the United States Attorney’s Office and the FBI for their partnership in the investigation of the Dignam brothers and our broader mission,” said City of Philadelphia Inspector General Alexander DeSantis. “Further, the Conway case shows our continuing commitment to root out fraud and corruption in all forms, including by employees of city contractors involved in programs that affect some of Philadelphia’s most vulnerable populations.”
If convicted, Leo Dignam faces a maximum possible sentence of 50 years in prison, Paul Dignam faces a maximum possible sentence of 30 years in prison, and Barbara Conway faces a maximum possible sentence of ten years in prison.
All three cases were investigated by the Federal Bureau of Investigation and the Philadelphia Office of the Inspector General. The cases of Paul and Leo Dignam are being prosecuted by Deputy United States Attorney Louis D. Lappen, and the case of Barbara Conway is being prosecuted by Assistant United States Attorney Richard Barrett.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Tulsa Doctor Sentenced for Role in an Opioid Drug ConspiracyRead the Press Release
A Tulsa doctor was sentenced today for conspiring with others to unlawfully issue prescriptions for controlled substances, as well as maintaining a drug involved premises at his medical clinic, announced U.S. Attorney Trent Shores.
Christopher V. Moses, 67, of Tulsa, has been sentenced to one year of home confinement and five total years of probation. Moses will forfeit his medical license and not seek reinstatement while serving his sentence. U.S. District Judge Gregory K. Frizzell further ordered Moses to pay $28,581 in restitution to two victims, a $200,000 fine, and a forfeiture amount of $1.8 million representing the proceeds he obtained as a result of his crime. Moses will also forfeit his 2011 Mercedes-Benz.
“We must work free of the deadly grip that illicit opioids have on our nation. Doctors like Christopher Moses who operate “pill mills” should be ashamed of themselves,” said U.S. Attorney Trent Shores. “It’s only right that Mr. Moses is now a convicted felon and has been stripped of his medical title. He is no different than any other drug dealer on the street spreading addiction for profit.”
This sentence comes as a result of his role in leading a conspiracy to distribute controlled substances without a legitimate medial purpose and outside the scope of professional practice, and for maintaining a drug involved premises. As a part of this conspiracy, Moses and his co-conspirators unlawfully issued prescriptions for controlled substances, many of which included deadly opioid prescription drugs such as Hydrocodone, Oxycodone, and Fentanyl. One repercussion of their unlawful distribution of such drugs, is the death of two individuals, one from acute fentanyl toxicity and the other from acute morphine and oxycodone toxicity. Moses and those working with him committed such acts with the goal of generating large profits from the prescriptions and taking those proceeds for their own personal use and benefit.
The Drug Enforcement Administration conducted the investigation of this case. Assistant U.S. Attorney Joel-lyn McCormick prosecuted the case with assistance from AUSA Vani Singhal, AUSA Melody Nelson, and AUSA Reagan Reininger. AUSA McCormick is the Lead Attorney for the Organized Crime Drug Enforcement Task Force Unit for the Northern District of Oklahoma.
Tulare County Man Arrested for over $8 M Fraud that Purported to Turn Cow Manure into Renewable EnergyRead the Press Release
FRESNO, Calif. — Raymond Brewer, 64, of Porterville, was arrested today on a 24-count indictment charging him with wire fraud, money laundering, and aggravated identity theft, U.S. Attorney McGregor W. Scott announced. A grand jury returned an indictment on Oct. 29, and it was unsealed today.
According to court records, since at least March 2014, Brewer acted primarily through his now defunct, Tulare-based company called CH4 Power to steal at least $8,750,000 from investors. He purported to build anaerobic digesters on dairies in Fresno, Kern, Kings, and Tulare counties and elsewhere in California and Idaho.
The digesters were supposed to convert cow manure into renewable energy in the form of methane natural gas. The natural gas, in turn, could be sold to generate revenue and returns for investors. But Brewer never actually built or even began construction on the digesters. Instead, he used the investors’ money to make various personal expenditures, which included his personal residence, new vehicles, and a property in Montana.
This case is the product of an investigation by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation and the Social Security Administration Office of the Inspector General. Assistant U.S. Attorneys Joseph D. Barton and Henry Z. Carbajal III are prosecuting the case.
If convicted of the wire fraud, Brewer faces a maximum statutory penalty of 20 years in prison and a fine of up to $250,000. If convicted of money laundering, he faces 10-20 years in prison and fines of up to $250,000-$500,000, or twice the amount of funds involved, whichever is greater. If convicted of aggravated identity theft, he faces a mandatory two-year sentence consecutive to any other sentence. Any sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Top Maine Law Enforcement Officials Caution Residents About Becoming “Money Mules”Read the Press Release
PORTLAND, Maine: U.S. Attorney Halsey Frank and Maine Attorney General Aaron M. Frey are warning consumers about scammers recruiting “money mules.”
According to the FBI, a money mule is someone who transfers illegally acquired money at the direction of another. Criminals recruit consumers to receive money and then physically or electronically move it through their own bank accounts, or to assist with moving money in other ways. Some of the schemes include instructions to wire the money into a third-party bank account, “cash out” the money via several cashier’s checks, convert the money into a virtual currency or prepaid debit card, send the money via a money service business, or conduct a combination of these actions. The basic purpose of the scheme is to add layers to a money trail from a victim to a criminal actor.
Criminals frequently recruit “money mules” through online job or dating websites, social networking sites, online classifieds, email spam and dark web forums. A frequent tactic involves befriending people online, often even establishing online romances, with the parties never meeting one another in person.
Oftentimes, the potential “money mule” is told the person they are “helping” is unable for some reason to access a bank account. Mainers should always be extremely suspicious of these types of stories, particularly from someone they don’t know.
The “money mule” scam has escalated in Maine since the beginning of the pandemic. According to the U.S. Attorney’s Office, more than 300 Maine residents have become “money mules” during the pandemic.
U.S. Attorney Frank said, “It’s critical for Mainers to be wary of any unsolicited offer of friendship or money, either online or on the phone. If you have a boyfriend or girlfriend you’ve never met, or have tried to help someone who says they are a service member trapped overseas, you could be helping a criminal launder money and not even know it.”
Maine Attorney General Frey said, “When in doubt, we urge Mainers to take steps to determine if a message they have received is legitimate. We are frequently contacted by individuals who suspect they may have been victimized by someone seeking to take advantage of them, and we are here to help.”
Attorney General Frey noted that the Office of the Attorney General has a Consumer Protection Division, which can be reached at (800) 436-2131 or at [email protected].
If you think that you have been victimized by a money mule scam, please call your local police or the U.S. Attorney’s Office immediately.
More information on these fraudulent schemes is available on the following websites:
- FBI Money Mule Public Service Announcement: http://www.ic3.gov/media/2009/090203.aspx
- United States Computer Emergency Readiness Team: https://www.us-cert.gov/sites/default/files/publications/money_mules.pdf
# # #
Top Maine Law Enforcement Officials Caution Residents About Becoming “Money Mules”Read the Press Release
PORTLAND, Maine: U.S. Attorney Halsey Frank and Maine Attorney General Aaron M. Frey are warning consumers about scammers recruiting “money mules.”
According to the FBI, a money mule is someone who transfers illegally acquired money at the direction of another. Criminals recruit consumers to receive money and then physically or electronically move it through their own bank accounts, or to assist with moving money in other ways. Some of the schemes include instructions to wire the money into a third-party bank account, “cash out” the money via several cashier’s checks, convert the money into a virtual currency or prepaid debit card, send the money via a money service business, or conduct a combination of these actions. The basic purpose of the scheme is to add layers to a money trail from a victim to a criminal actor.
Criminals frequently recruit “money mules” through online job or dating websites, social networking sites, online classifieds, email spam and dark web forums. A frequent tactic involves befriending people online, often even establishing online romances, with the parties never meeting one another in person.
Oftentimes, the potential “money mule” is told the person they are “helping” is unable for some reason to access a bank account. Mainers should always be extremely suspicious of these types of stories, particularly from someone they don’t know.
The “money mule” scam has escalated in Maine since the beginning of the pandemic. According to the U.S. Attorney’s Office, more than 300 Maine residents have become “money mules” during the pandemic.
U.S. Attorney Frank said, “It’s critical for Mainers to be wary of any unsolicited offer of friendship or money, either online or on the phone. If you have a boyfriend or girlfriend you’ve never met, or have tried to help someone who says they are a service member trapped overseas, you could be helping a criminal launder money and not even know it.”
Maine Attorney General Frey said, “When in doubt, we urge Mainers to take steps to determine if a message they have received is legitimate. We are frequently contacted by individuals who suspect they may have been victimized by someone seeking to take advantage of them, and we are here to help.”
Attorney General Frey noted that the Office of the Attorney General has a Consumer Protection Division, which can be reached at (800) 436-2131 or at [email protected].
If you think that you have been victimized by a money mule scam, please call your local police or the U.S. Attorney’s Office immediately.
More information on these fraudulent schemes is available on the following websites:
- FBI Money Mule Public Service Announcement: http://www.ic3.gov/media/2009/090203.aspx
- United States Computer Emergency Readiness Team: https://www.us-cert.gov/sites/default/files/publications/money_mules.pdf
Tennessee Emergency Medical Doctor Sentenced to Prison for Unlawfully Distributing Controlled SubstancesRead the Press Release
A Tennessee emergency medical doctor was sentenced today to serve 24 months in prison followed by three years of supervised release for his role in unlawfully distributing controlled substances.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Don Cochran of the Middle District of Tennessee and Special Agent in Charge J. Todd Scott of the Drug Enforcement Administration’s (DEA) Louisville Division made the announcement.
Lawrence J. Valdez, M.D., 51, of Hendersonville, Tennessee, was sentenced after pleading guilty in November 2019 to one count of unlawful distribution of controlled substances. U.S. District Judge Eli J. Richardson of the Middle District of Tennessee imposed the sentence.
Pursuant to his guilty plea, Valdez admitted that in February 2017 he knowingly distributed oxymorphone, a schedule II controlled substance, to a patient without a legitimate medical purpose and outside the usual course of professional practice. He further admitted to distributing schedule II opioids to four different patients without a legitimate medical purpose and outside the course of professional practice on 16 other occasions between June 2016 and February 2017, and in exchange for sexual intercourse and other sexual acts with those patients.
The DEA, Tennessee’s 18th Judicial Drug Task Force and the District Attorney General’s Office for Tennessee’s 18th Judicial District investigated the case. Assistant Chief Kilby Macfadden and Trial Attorney William M. Grady of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Appalachian Regional Prescription Opioid (ARPO) Strike Force. Since its inception in October 2018, the ARPO Strike Force, which operates in 10 districts, has charged more than 70 defendants who are collectively responsible for distributing more than 50 million pills. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for approximately $19 billion. In addition, the Health and Human Services (HHS) Centers for Medicare & Medicaid Services, working in conjunction with the HHS-Office of Inspector General, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website for more information.
Telephoned bomb threat on Sept. 11 results in federal chargeRead the Press Release
SAVANNAH, GA: A Vidalia, Ga., man has been indicted on a federal charge for calling in a bomb threat to a Port of Savannah facility.
Elliott Sherman, a/k/a Amir Turner, 32, is charged with Explosive Materials – Willfully Making a Threat, said U.S. Attorney Bobby L. Christine. The charge carries a possible penalty of up to 10 years in prison, along with substantial financial penalties, followed by a period of supervised release.
There is no parole in the federal system.
“Bomb threats, whether real or hoax, are dangerous and disruptive to work environments,” said U.S. Attorney Christine. “This one was especially inexcusable as it was made on the anniversary of the Sept. 11, 2001 terrorist attacks.”
According to the indictment, Sherman is accused of calling the California Cartage CFS 2 building on Sept. 11, 2020, with a bomb threat. Sherman is assigned to the facility by his employer.
“Calling in a bomb threat, even as a hoax, wastes resources, disrupts commerce and terrifies potential threatened victims,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “That’s why the FBI takes them seriously and the penalties are severe.”
Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.
The case is being investigated by the FBI, and prosecuted for the United States by Assistant U.S. Attorneys Jennifer G. Solari and Joshua S. Bearden.
Stroudsburg Woman Sentenced to 13 Months’ Imprisonment for Drug TraffickingRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that on November 10, 2020, Jennifer Annette Bush, age 45, of Stroudsburg, Pennsylvania, was sentenced to 13 months’ imprisonment and a three-year term of supervised release by United States District Judge Malachy E. Mannion, for drug trafficking offenses.
According to United States Attorney David J. Freed, during March 2018 and again during February 2019, Bush possessed with the intent to distribute several different illicit substances, including cocaine, heroin and synthetic opioid and fentanyl. After her initial March 2018 arrest by state authorities, Bush returned to drug trafficking in February 2019, prompting the initiation of the instant federal case.
The matter was investigated by the Federal Bureau of Investigation (FBI), the Pennsylvania State Police, and the Stroud Area Regional Police Department. Assistant U.S. Attorney Jeffery St John prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
# # #
Statement on DOJ Office of Professional Responsibility Report on Jeffrey Epstein 2006-2008 InvestigationRead the Press Release
The executive summary of a report by the Department of Justice’s Office of Professional Responsibility (OPR) was released today to affected victims. The summary, which is available on the Justice Department website, provides the essential details about the findings of OPR’s investigation into the U.S. Attorney’s Office for the Southern District of Florida’s resolution of its 2006–2008 federal criminal investigation of Jeffrey Epstein and its interactions with victims during the investigation.
While OPR did not find that Department attorneys engaged in professional misconduct, OPR concluded that the victims were not treated with the forthrightness and sensitivity expected by the Department. OPR also concluded that former U.S. Attorney Acosta exercised poor judgment by deciding to resolve the federal investigation through the non-prosecution agreement and when he failed to make certain that the state of Florida intended to and would notify victims identified through the federal investigation about the state plea hearing.
In order to fully respect the rights and dignity of Jeffrey Epstein’s many victims, the Department first invited victims and their legal representatives to be briefed this morning on the report’s contents. The Privacy Act prohibits the Department from releasing the full report publicly, but permits the report to be disclosed upon request to a congressional committee with jurisdiction over the matter, and this has been done.
We salute the courage of survivors as they again are confronted with these horrible crimes and their aftermath. The Department will thoroughly review the report, which will inform our implementation of the Crime Victims Rights’ Act and the Attorney General’s Guidelines on Victim and Witness Assistance.
Six Central Ohio individuals charged on Valentine’s Day sentenced for laundering funds from victims of online romance fraudRead the Press Release
COLUMBUS, Ohio – The final apprehended defendant in a money laundering scheme connected to online romance fraud was sentenced in U.S. District Court here today.
Kwabena M. Bonsu, 32, of Westerville, was sentenced to 36 months in prison for his role in laundering the proceeds of a scheme that defrauded victims nationwide out of more than $3 million total. Bonsu brought other participants into the conspiracy and directed the actions of some of the other members of the conspiracy. He had direct connections to scammers in Ghana who were conducting romance fraud and needed help from people in the United States to get victims’ money from the United States to Ghana.
Six of eight Central Ohio defendants originally charged on Valentine’s Day 2018 have offered guilty pleas and been sentenced in U.S. District Court. Two of the defendants remain fugitives.
Those originally charged in the conspiracy also include: Kwasi A. Oppong (sentenced to 18 months in prison), Kwame Ansah, John Y. Amoah (33 months in prison), Samuel Antwi, King Faisal Hamidu (42 months in prison), Nkosiyoxoxo Msuthu (42 months in prison) and Cynthia Appiagyei (30 months of probation).
Ansah and Antwi are at-large.
According to court documents, individuals committing fraud created several profiles on online dating sites. They then contacted men and women throughout the United States, Canada, and other countries with whom they cultivated a sense of affection, and often, romance.
After establishing relationships, perpetrators of the romance scams requested money, typically for investment or need-based reasons and provided account information and directions for where money should be sent. In part, these accounts were controlled by the defendants. The funds were not used for the investment or need-based reasons provided.
The defendants in this case did not perpetrate the romance fraud, but instead laundered the funds from the fraud scheme, using companies and bank accounts in their control. In furtherance of the scheme, Bonsu and his co-conspirators created several companies, some of which were shell companies, to help attempt to hide the true nature of their proceeds. They withdrew the proceeds in cash, wired funds to their coconspirators and to other accounts, and used the fraud proceeds to purchase salvaged vehicles sold online. The financial transactions were meant to conceal the fraud. The cars were commonly exported to Ghana.
The purchase and shipment of vehicles helped conceal the fact that members of the conspiracy were sending proceeds of romance fraud overseas. Some members of the conspiracy found people in Ghana who wanted to purchase vehicles. The people in Ghana who wanted the cars would pay the perpetrators of the romance fraud scheme in Ghana. Under this method, money did not have to be wired overseas, which would have risked attracting the scrutiny of financial institutions.
In total, the defendants laundered more than $3.3 million in proceeds from romance scams.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Bryant Jackson, Acting Special Agent in Charge, Internal Revenue Service-Criminal Investigation (IRS-CI), Cincinnati Field Office; Tommy D. Coke, Inspector in Charge, U.S. Postal Inspection Service, Pittsburgh Division; and Vance Callender, Special Agent in Charge, Homeland Security Investigations (HSI) announced the sentence imposed today by Chief U.S. District Court Judge Algenon L. Marbley. Assistant United States Attorney Peter K. Glenn-Applegate is representing the United States in this case.
# # #
Serial Fraudster Sentenced for Second Operation Homeless SchemeRead the Press Release
RICHMOND, Va. – A previously convicted felon was sentenced today to 100 months in prison for conspiring to commit mail and bank fraud while on supervised release for a prior federal fraud conspiracy.
According to court documents, Gary Darnell Williams, 52, of Petersburg, organized and led a conspiracy to defraud several banks by stealing business checks from the mail and using those checks as exemplars to create counterfeit checks that he then recruited homeless individuals to cash. Williams undertook this crime just four months after completing a 10-year federal prison sentence for a nearly identical scheme. Over the course of six months, Williams stole business checks from the mail in Virginia, Maryland, North Carolina, and Pennsylvania. He then recruited at least eight homeless individuals to cash at least 66 counterfeit checks totaling over $57,000 at financial institutions in Virginia and Pennsylvania. To recruit and retain these people, Williams rented them hotel rooms and supplied them with heroin. After successfully concealing these crimes from his federal probation officer, Williams absconded from supervision after he was charged with an unrelated state offense. Williams remained a federal fugitive until he was arrested driving two homeless check cashers to banks in October 2019. When arrested, Williams had 30 counterfeit checks purportedly drawn on five different business accounts totaling over $26,000.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Peter R. Rendina, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after sentencing by Senior U.S. District Judge Robert E. Payne.
Assistant U.S. Attorney Kaitlin G. Cooke prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case Nos. 3:20-cr-71 and 3:10-cr-105.
Second Bronx Gang Member Charged with 2015 MurderRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, Dermot Shea, Commissioner of the New York City Police Department (“NYPD”), Peter C. Fitzhugh, the Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), and Raymond Donovan, the Special Agent in Charge of the New York Division of the U.S. Drug Enforcement Administration (“DEA”), announced the return of a superseding indictment charging KYLE MULLINGS, a/k/a “Kase,” with murder in aid of racketeering and murder through the use of a firearm in connection with the murder of Daquan Cooper on June 25, 2015, in the Bronx. MULLINGS was already in federal custody on other charges. On November 5, 2019, an indictment was unsealed charging co-defendant Jose Rodriguez, a/k/a “Hov,” a/k/a “Hov Goon,” in connection with the murder of Daquan Cooper.
MULLINGS will be presented at a later date. The case is assigned to U.S. District Judge Alvin K. Hellerstein.
Acting U.S. Attorney Audrey Strauss said: “As alleged in the indictment, Kyle Mullings and others were responsible for the murder of Daquan Cooper in the Parkchester neighborhood of the Bronx in 2015. We commend the extraordinary efforts of our law enforcement partners to bring Mullings to justice.”
HSI Special Agent in Charge Peter C. Fitzhugh said: “HSI and our partners have demonstrated a tireless commitment to dismantling this gang’s complex criminal enterprise through multi-agency cooperation, resulting in these indictments. This case highlights that, as alleged, Mullings and other violent perpetrators in our communities are well organized in their criminal pursuits. However, law enforcement in New York continues to be successful in apprehending these pugnacious offenders allegedly responsible for numerous senseless deaths.”
DEA Special Agent in Charge Raymond Donovan said: “Great police work and multi-agency cooperation has brought an alleged murderer to justice. I applaud all of our partners for their steadfast diligence throughout this investigation.”
According to the allegations in the Superseding Indictment unsealed today in Manhattan federal court[1]:
MULLINGS was a member or associate of a racketeering enterprise known as the Beach Avenue Crew, a criminal organization whose members and associates engaged in, among other things, murder, attempted murder, and narcotics trafficking.
On June 25, 2015, MULLINGS orchestrated the murder of Daquan Cooper and provided the firearms that others used to shoot and kill Cooper in the vicinity of 1595 Unionport Road in the Parkchester neighborhood of the Bronx.
* * *
MULLINGS, 26, from the Bronx, New York, is charged with one count of murder in aid of racketeering, which carries a maximum sentence of death or life in prison, and a mandatory minimum sentence of life in prison; and one count of murder through the use of a firearm, which carries a maximum sentence of death or life in prison, and a mandatory minimum sentence of five years in prison. The statutory maximum and mandatory minimum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of a defendant would be determined by the Court.
Ms. Strauss praised the investigative work of the NYPD, HSI, and DEA.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Maurene Comey, Jacob Warren, and Andrew K. Chan are in charge of the prosecution.
The charges contained in the Superseding Indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Superseding Indictment constitutes only allegations, and every fact described herein should be treated as an allegation.
Scott Resident Sentenced for Possession of Child PornographyRead the Press Release
LAFAYETTE, La. - Kevin James Forestier, Jr., 26, of Scott, Louisiana, was sentenced today for possession of child pornography, Acting United States Attorney Alexander C. Van Hook announced. United States District Judge Robert R. Summerhays sentenced Forestier to 34 months (2 years, 10 months) in prison followed by 6 years of supervised release. Forestier will also be required to register as a sex offender.
In July 2018, law enforcement agents with the Louisiana Bureau of Investigation’s Cyber Crime Unit received a Cybertip report from the National Center for Missing and Exploited Children (NCMEC) indicating a user had uploaded images containing child pornography through the internet to an account. An investigation revealed that Kevin James Forestier, Jr. was the suspected user and on September 11, 2018, law enforcement agents obtained a search warrant for his residence and cellular phone. Agents discovered child pornography containing images of a prepubescent minor who had not attained the age of 12 on Forestier’s cellular phone. Forestier admitted that he had in fact uploaded the images to his cellular phone from the internet. Forestier pleaded guilty to the charge on October 22, 2019.
The Department of Homeland Security – Bureau of Immigration and Customs Enforcement conducted the investigation. Assistant U.S. Attorney Daniel J. Vermaelen prosecuted the case.
# # #
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.
San Pedro Man Extradited to Face Charges of Making ‘Virtual Kidnapping’ Extortion Calls While Imprisoned for Murder in MexicoRead the Press Release
LOS ANGELES – A San Pedro man has been extradited from Mexico to Los Angeles to face federal charges that he perpetrated a “virtual kidnapping” scam where at least 30 victims in Southern California and elsewhere were duped via telephone into paying thousands of dollars in ransom to free their family members, who in reality hadn’t been kidnapped at all.
Julio Manuel Reyes Zuniga, a.k.a. “Muneco,” 48, arrived at Los Angeles International Airport on Wednesday after being extradited by Mexico.
Reyes Zuniga, a reputed member of the Rancho San Pedro street gang who had been imprisoned in Mexico since 1996 for two murder convictions, was taken into custody by the United States Marshals Service. Reyes Zuniga finished serving his prison sentence in Mexico last year and has been held since for extradition on this case. He is expected to be arraigned this afternoon in United States District Court in downtown Los Angeles.
A federal grand jury in September 2019 returned a 31-count indictment against Reyes Zuniga. He is charged with one count of conspiracy to commit extortion, 27 counts of extortion, two counts of foreign communication of threats with intent to extort money, and one count of conspiracy to launder monetary instruments.
“Virtual kidnappings” happen when an unsuspecting victim is told via telephone that his or her family member has been kidnapped. When the victim answers the phone, there is typically a panicked or gasping voice on the phone pleading for help. Then, through additional deception and threats, the criminal coerces the victim to pay a ransom. The criminal also threatens harm to the purported kidnap victim if the scam victim contacts law enforcement or alerts authorities. No one is physically kidnapped in these schemes, but they are often traumatic for everyone involved. On average, the family sends thousands of dollars to the scammers before contacting law enforcement.
The indictment alleges that from September 2015 to June 2018, while he was serving a murder conviction in a prison outside Mexico City, Reyes Zuniga and others acting at his direction falsely represented to victims on the phone that they had kidnapped the victims’ child or loved one, and planned to harm them unless a ransom was paid for their release. In reality, no kidnappings had taken place.
Reyes Zuniga and others working at his direction allegedly then demanded ransom payments in the form of wire transfers, cash drops at locations, or the purchase of electronics such as iPhones or iPads. Once the funds were wired or delivered, individuals in Mexico delivered the proceeds to the imprisoned Reyes Zuniga. Investigators believe these kinds of schemes are perpetrated via cellphones smuggled into Mexican prisons, court papers state.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If convicted of all charges, Reyes Zuniga would face a statutory maximum sentence of 20 years in federal prison for each count in the indictment.
This matter was investigated by the FBI; IRS Criminal Investigation; the FBI Mexico City Legal Attaché; IRS-CI Mexico City Legal Attaché; the U.S. Department of Justice’s Office of International Affairs; the Los Angeles Police Department; the Beverly Hills Police Department; the Orange County Sheriff’s Department; the San Diego County Sheriff’s Department; and the University of California, Los Angeles Police Department.
This case is being prosecuted by Assistant United States Attorneys Jeffrey M. Chemerinsky and Joshua O. Mausner of the Violent and Organized Crime Section.
Salt Lake City Man Pleads Guilty to Attempting to Provide Material Support to ISISRead the Press Release
SALT LAKE CITY – Murat Suljovic, age 23, of Salt Lake City, pleaded guilty to one count of attempting to provide material support to a designated foreign terrorist organization in U.S. District Court in Salt Lake City Tuesday morning. U.S. Magistrate Judge Dustin B. Pead presided at the plea hearing.
According to the plea agreement, Suljovic admitted that in January 2019, while living in Utah, he corresponded with an individual, identified as Person A in the court document, who he believed was a follower of ISIS. He admitted he believed Person A was interested in performing an attack for ISIS. He also believed Person A was assisting another individual, referred to as Person B in the plea agreement, who was also interested in performing an attack for ISIS.
Suljovic admitted that in his correspondence with Person A, he pretended to be an ISIS leader through an online persona, and he believed Person A and Person B believed he was an ISIS leader. Suljovic provided advice about potential targets for a terrorist attack and advice about how to plan an attack. Suljovic admitted he provided a bomb-making tutorial video to Person A in the correspondence to share with Person B for purposes of training and assisting Person B in carrying out an attack, according to the plea agreement.
By providing the bomb-making tutorial video to Person A, Suljovic admitted he knowingly attempted to provide material support to ISIS, knowing that ISIS has engaged and does engage in terrorism.
Suljovic was charged with providing material support to a designated foreign terrorist organization in a Felony Information filed in May.
As a part of the plea agreement, Suljovic agreed to forfeit a variety of computer and electronic equipment used to facilitate his criminal conduct or acquired from his conduct.
The maximum potential penalty for the conviction is 20 years in prison and a fine of $250,000. A sentencing date for Suljovic, who remains in custody, will be scheduled later.
The case is being investigated by the FBI and members of its Joint Terrorism Task Force and prosecuted by Assistant U.S. Attorneys Carl D. LeSueur and Tyler L. Murray of the Utah U.S. Attorney’s Office with the assistance of National Security Division Counterterrorism Section Trial Attorney Michael Dittoe.
Remarks by U.S. Attorney William M. McSwain at the Chester County Bar Association's Annual Veterans Day Ceremony at the Historic Chester County CourthouseRead the Press Release
PHILADELPHIA, PA – On Wednesday, November 11, 2020, U.S. Attorney McSwain delivered the Veterans’ Address at the Chester County Bar Association’s Annual Veterans Day Ceremony. U.S. Attorney McSwain, a Chester County native and a member of the Chester County Bar Association, served in the U.S. Marine Corps infantry from 1993 to 1997. He was introduced by his friend, Brian Nagle, who is a former President of the Chester County Bar Foundation.
Remarks as Prepared for Delivery
Good morning, and thank you, Brian, for that kind introduction. I also want to thank Matt Holliday, Executive Director of the Chester County Bar Association, for inviting me to speak here today. I am delighted to participate in this annual ceremony that honors America’s veterans.
Veterans’ Day is an important marker – it reminds every citizen in this great country of the sacrifice that the men and women of the Armed Forces have made to preserve and protect the American dream. It is our opportunity to honor and thank all Americans who have served our country in uniform. That includes those living and dead, those who served in war and peace, those who serve today and those who served yesterday. In particular, I want to recognize and thank the veterans with us this morning: with this ceremony, we honor your sacrifice, courage, and bravery. We owe our way of life to you. Thank you for your service.
We also must thank you for the example you set for every American citizen. That example is your unity of purpose. When you signed up to serve in the military, you committed yourself to live by the military ethos of self-sacrifice in the name of a greater good. You knew when you committed that you would likely serve under multiple presidents and military leaders, not necessarily knowing who they would be. You did not know where or with whom you would serve. Many of you did not know what forces you would be fighting or the identity of the enemy. Still, none of that mattered: you signed up to serve because you love your country and everything that America stands for.
And that is because no matter who is in charge, the ideals of patriotism, freedom, democracy, and service remain the same. Even with all of the unknowns I just mentioned, the reason you decided to serve is the constant in the equation.
That unity of purpose is what binds the men and women who serve; it is also what unites every American in our expression of gratitude for your service. Your love of country is the example you set for every American. We owe you a tremendous debt of gratitude for your service and for your living example of patriotism.
The timing of Veterans’ Day has historical significance, but it is also culturally significant. We celebrate Veterans’ Day on November 11 because the holiday has its roots in Armistice Day – the official end of World War I. On the 11th day, at the 11th hour, of the 11th month, a bugle call signified the truce among all nations and a recommitment to world peace. But the world did not remain a peaceful place for very long. After World War II and the Korean War, Armistice Day was renamed Veterans’ Day.
I think we can all agree that this has been a tough year. From the global pandemic to the divisions in our country that led to a hard-fought election by all involved, nothing has come easily this year. Sometimes it may seem as if there’s nothing we can all agree upon. But that’s not true. We all agree that our veterans are heroes. Veterans’ Day brings us together as a nation to express our profound gratitude for what our veterans have done and for what our military stands for.
Our military is one of the greatest unifying forces for good in our country today. The outpouring of support for our veterans on this day reminds us of what is important: love of country and love of freedom, which you have bravely protected at every turn.
God Bless you all. And God Bless the United States of America. Thank you.
Randolph Man Indicted on Child Pornography ChargesRead the Press Release
BOSTON – A federal grand jury in Boston indicted a Randolph man today on charges of child pornography.
Spencer Hughes, 38, was indicted on one count of receipt of child pornography and one count of possession of child pornography involving a prepubescent minor and a minor who had not attained 12 years of age.
Hughes was arrested and charged by criminal complaint on Oct. 13, 2020, following the execution of a search warrant at his residence. He has been released to home detention subject to electronic monitoring and prohibited from accessing the internet, among other pre-trial conditions.
According to charging documents, during the execution of a search warrant, an external hard drive on Hughes’ kitchen table was found to contain a folder labeled with a female’s name. The folder contained numerous pornographic images and videos of a female child appearing to be approximately 10 or 11 years old.
A forensic examination of Hughes’ phone revealed that defendant was using the Kik Messenger application to view dozens of images and videos of child pornography.
The charge of receipt of child pornography provides for a mandatory minimum sentence of five years and up to 20 years in prison, five years to life of supervised release and a fine of up to $250,000. The charge of possession of child pornography provides for a sentence of up to 20 years in prison, five years to life of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and David Magdycz, Acting Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today. Assistant U.S. Attorney Fred M. Wyshak, III, of Lelling’s Major Crimes Unit, is prosecuting the case.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Pittsburgh Man Indicted on Child Sexual Exploitation and Sextortion ChargesRead the Press Release
PITTSBURGH – A former resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on child sexual exploitation charges and for making threatening interstate communications with the intent to extort, United States Attorney Scott W. Brady announced today.
The five-count Indictment named Markell Smith, age 24, as the sole defendant.
According to the Indictment, on May 31, 2018, Smith transmitted a communication containing a threat to injure the person, property, and reputation of Minor 1, a minor female resident of New Jersey, and her family. The Indictment further alleges that on that day, Smith attempted to and did coerce and induce Minor 1 to engage in sexually explicit conduct for the purpose of producing a visual image and received and attempted to receive a visual depiction of Minor 1 engaging in sexually explicit conduct. The Indictment also alleges that on November 8, 2019, Smith possessed other visual depictions, namely videos and images in computer graphic and digital files, the production of which involved the use of minors engaging in sexually explicit conduct.
The law provides for a maximum total sentence of up to 30 years in prison, a fine of $1,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Heidi M. Grogan is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Red Bank (New Jersey) Police Department conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Ohio and West Virginia residents indicted on drug and firearms chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Six West Virginia residents and an Ohio man are facing drug and firearms charges after a grand jury in Clarksburg indicted them in September, U.S. Attorney Bill Powell announced.
David Day Deberry, 34, of Terra Alta, West Virginia, was indicted on one count of “Conspiracy to Distribute More Than Fifty Grams or More of Methamphetamine,” one count of “Possession with Intent to Distribute Cocaine,” two counts of “Unlawful Possession of Firearm as Felon,” and one count of “Distribution of Methamphetamine.”
Brandy Hanshaw, also known as “Brandy Deberry,” 37, of Lumberport, West Virginia, was indicted on one count of “Conspiracy to Distribute More Than Fifty Grams or More of Methamphetamine,” one count of “Possession with Intent to Distribute Methamphetamine,” one count of “Unlawful Possession of Firearm as Drug User,” and two counts of “Distribution of Methamphetamine.”
John Palmer, 57, of Lore City, Ohio, was indicted on one count of “Conspiracy to Distribute More Than Fifty Grams or More of Methamphetamine,” one count of “Possession with Intent to Distribute Methamphetamine,” and one count of “Unlawful Possession of Firearm as Felon.”
Jeremy Moser, 40, of Shinnston, West Virginia, was indicted on one count of “Conspiracy to Distribute More Than Fifty Grams or More of Methamphetamine,” four counts of “Distribution of Methamphetamine,” and one count of “Unlawful Possession of Firearm as Drug User.”
Mark Yatulchik, also known as “Utah,” 50, of Shinnston, West Virginia, was indicted on one count of “Conspiracy to Distribute More Than Fifty Grams or More of Methamphetamine,” one count of “Maintaining Drug-involved Premises,” one count of “Possession with Intent to Distribute Methamphetamine,” and one count of “Unlawful Possession of Firearm as Felon.”
Kaylie Marie Jones, 25, of Wallace, West Virginia, was indicted on one count of “Conspiracy to Distribute More Than Fifty Grams or More of Methamphetamine” and three counts of “Distribution of Methamphetamine.”
Amber Ramos, also known as “Amber Finch,” 32, of Hepzibah, West Virginia, was indicted on one count of “Conspiracy to Distribute More Than Fifty Grams or More of Methamphetamine” and one count of “Distribution of Methamphetamine.”
The seven are accused of working together to distribute more than 50 grams of methamphetamine from February 2017 to June 2018 in Harrison County and elsewhere.
Assistant U.S. Attorney Andrew R. Cogar is prosecuting the case on behalf of the government. The Greater Harrison Drug Task Force, a HIDTA-funded initiative and the Bureau of Alcohol, Tobacco, Firearms & Explosives investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Norwich Man Involved in Southeastern Connecticut Drug Ring Sentenced to 3 Years in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that EARLENE DUDLEY, JR, 39, of Norwich, was sentenced today by U.S. District Judge Vanessa L. Bryant to 36 months of imprisonment, followed by three years of supervised release, for his role in a southeastern Connecticut drug trafficking ring.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the court proceeding occurred via videoconference.
This matter stems from an investigation led by the Drug Enforcement Administration, Connecticut Statewide Narcotics Taskforce East, Connecticut Department of Correction and the New London, Waterford, City of Groton and Stonington Police Departments, into the distribution of narcotics and illegal possession of firearms in southeastern Connecticut. The investigation, which included court-authorized wiretaps and controlled purchases and seizures of narcotics and firearms, revealed that Ramel General worked closely with an identified leader of a drug trafficking network, distributing cocaine on behalf of the organization and assisting in maintaining an apartment in New London that served as the organization’s primary narcotics distribution location. Dudley regularly purchased distribution quantities of cocaine from General and sold the drug in smaller quantities to his own customers.
On February 21, 2019, a search of the New London apartment maintained by General and others revealed more than 1.5 kilograms of cocaine, more than 350 grams of heroin, and 10 firearms.
On March 5, 2019, a grand jury in Hartford returned an indictment charging Dudley, General and 22 other individuals with various offenses. Dudley was arrested on March 7, 2019.
On September 30, 2019, Dudley pleaded guilty to one count of conspiracy to distribute and possession with the intent to distribute cocaine.
General pleaded guilty to a related charge and, on August 25, 2020, was sentenced to 120 months of imprisonment.
This investigation is being conducted by the Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Marshals Service, Homeland Security Investigations, Connecticut Statewide Narcotics Taskforce East, Connecticut Department of Correction and the New London, Waterford, City of Groton, Stonington, Norwich, Old Saybrook and UConn Police Departments. The case is being prosecuted by Assistant U.S. Attorney Natasha M. Freismuth.
Nine charged in scheme to defraud MedicaidRead the Press Release
First Assistant U.S. Attorney Bridget Brennan announced today that a federal grand jury sitting in Cleveland has returned a 28-count indictment charging nine individuals for their roles in a scheme to defraud Medicaid. These nine individuals either owned, operated or worked for Eye For Change Youth & Family Services, Inc. (Eye For Change), a non-profit corporation in Cleveland.
First Assistant U.S. Attorney Bridget Brennan, FBI Special Agent in Charge Eric B. Smith, Office of the Inspector General, U.S. Department of Health and Human Services Special Agent in Charge Lamont Pugh III and Ohio Attorney General Dave Yost made the announcement.
“These defendants are accused of defrauding a tax-payer funded health care benefit program that was created to assist some of the most vulnerable among us,” said First Assistant U.S. Attorney Bridget Brennan. “Their alleged conduct, including the payment of kickbacks, was designed simply to enrich themselves. We are grateful for the hard work of the agencies involved who, like us, are dedicated to bringing allegations of fraud and illegal kickbacks before the court.”
"These individuals engaged in a scheme to defraud tax-payers by submitting fraudulent billing to a federally funded healthcare program, which is supported by hard-working citizens,” said FBI Special Agent in Charge Eric B. Smith. “The FBI and our partners will continue to root out such fraud and hold those engaged in illegal financial dealings responsible in a court of law.”
“The billing of medical services that are not rendered, the payment of kickbacks, and the falsification of documents with respect to medical records are illegal acts commonly used by those who commit healthcare fraud,” 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 those who seek to defraud federally funded health care programs accountable.”
"There are actually real people out there who are suffering and need help," Ohio Attorney General Dave Yost said. "You don't have to make up imaginary patients. A jury of their peers will undoubtedly know some of them. I'm grateful for the state-federal partnership that is bringing these fakes to justice."
Named in the indictment are:
- Alfonzo D. Bailey, age 38, of Cleveland, Ohio. Bailey was the incorporator and 100% owner of Eye For Change Youth & Family Services.
- David Brown, age 39, of Maple Heights, Ohio. Brown was a marketer and Clients Rights Officer at Eye For Change.
- Valerie White, age 51, of Columbus, Ohio. White was employed as a Qualified Mental Health Specialist (QMHS) and a counselor/therapist who provided counseling services to Eye For Change Medicaid beneficiary clients.
- Sandra Wilson, age 52, of Cleveland, Ohio. Wilson was employed as an assessor and staffed the crisis hotline at Eye For Change and provided counseling services Medicaid beneficiary clients.
- Cheria Oliver, age 31, of Canal Winchester, Ohio. Oliver was employed as a Qualified Mental Health Specialist (QMHS) at Eye For Change and provided counseling services to Medicaid beneficiary clients.
- Charchee Tucker, age 43, of Warrensville Heights, Ohio. Tucker was employed as QMHS, QMHS Supervisor, Lead Case Manager, and Director of Marketing and Compliance. Tucker was to provide counseling services to Eye for Change Medicaid beneficiary clients.
- Allen Steele, age 38, of Parma, Ohio. Steele was employed as a QMHS at Eye For Change and was able to provide counseling services to Medicaid beneficiary clients.
- Kamelah Ganaway, age 43, of Macedonia, Ohio. Ganaway was employed as a QMHS at Eye For Change and was to provide counseling services to Medicaid beneficiary clients.
- Tremayne Kellom, age 41, of Cleveland, Ohio.
According to the indictment, from February 2017 through September 2020, the defendants are accused of submitting, or allowing to be submitted, billings to the Medicaid program for services that were never performed and of falsifying records.
The indictment states that Bailey would pay White and Wilson, a Licensed Independent Social Worker (LISW) in order to use Wilson’s LISW provider number and credentials to submit billings and documents regarding mental health screenings that were never performed.
Bailey, Brown, White and Wilson would also submit billings to the Medicaid program for counseling services without an appropriate treatment plan in place for clients, as required by law.
In addition, Bailey, Brown, White and Wilson are accused of allegedly paying kickbacks in the form of cash, gift cards, and rent/bill payments to Medicaid beneficiaries in order to obtain these beneficiaries as clients and to bill Medicaid for services never rendered.
The indictment further states that Bailey, Brown, White and Wilson would direct employees to misdiagnose their Medicaid beneficiaries in order to receive authorization from the Ohio Department of Medicaid to provide services and bill at higher rates.
Bailey, Brown, Oliver, Tucker, Steele, Ganaway and Kellom are also accused of allegedly directing and allowing employees to insert false progress notes into Medicaid beneficiary electronic records in order to create the fictitious documents needed to submit their claims.
As a result of these offenses, the defendants shall forfeit approximately $2.3 million seized during the execution of a federal seizure warrant and all properties associated with Eye For Change in Cleveland, Cleveland Heights and Columbus.
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, the Department of Health and Human Services -- Office of the Inspector General and the Ohio Attorney General’s Healthcare Fraud Section. This case is being prosecuted by Assistant U.S. Attorney Michael L. Collyer and Special Assistant U.S. Attorney Jonathan L. Metzler.
Nashville Man Charged with CyberstalkingRead the Press Release
NASHVILLE, Tenn. – November 12, 2020 –A Nashville man was arrested today and charged with four counts of cyberstalking, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
Barry Zarculia, 53, was arrested this morning by FBI agents, pursuant to a criminal complaint issued Tuesday and unsealed today. According to the complaint, the FBI has been investigating Zarculia since June and determined that he used a cellular phone and an Instagram account to send death threats, threaten serious bodily harm, and/or harass, intimidate and stalk multiple victims.
The complaint alleges that Zarculia was the user of the Instagram account @songs_in_the_key_of_z and posted hateful, racist, anti-black messages on their public message board, such as messages including the phrasing “black lives don’t matter.” In addition, an individual referenced having observed posts which applauded the sniper who conducted the 2017 Las Vegas Massacre and which alluded to the fact that the user wished the same attack would occur in Nashville, Tennessee. After posting these and other comments, Zarculia received negative feedback from other social media users. Zarculia then posted a photograph of one individual’s house, along with the address of the individual’s public page, and said in part, “Anyone that wants a piece of me, come on over,……..Off Nolensville Pike. I sleep in the front bedroom.” This alarmed the individual as this front bedroom was occupied by his child. Zarculia also sent other messages to this individual and called him on the phone and threatened to put a gun in his mouth.
The continuing investigation led agents to another victim who began receiving unsolicited messages from Zarculia in September 2019, via Instagram. Although this woman had never met Zarculia, his messages referenced her recent locations around Nashville, including a local coffee shop and a local park. Zarculia continued to message this woman for the next several months, which she described as “creepy” and “overly sexual” in nature, often sending her photos of his penis. On one occasion, Zarculia made reference to the woman’s minor son and specifically mentioned the elementary school which he attended, though the woman had never mentioned her son to Zarculia. She eventually stopped responding to Zarculia’s messages and in early 2020, Zarculia approached her in a local grocery store. She did not engage in conversation with him and went about her business. Later, Zarculia sent her messages that were angry in nature. These messages continued to escalate to violent and threatening rants, some sent in audio format and also directed at a friend of the woman who had become involved out of fear for the woman’s safety.
Another victim told FBI agents that in the summer of 2018, she was contacted by Zarculia, via Instagram. Although they had never met, the woman became friends on social media with Zarculia and talked online until early 2019, when she decided not to pursue the relationship. Zarculia later messaged the woman and told her he had found her apartment, though they had never met in person. Zarculia escalated his activity to include lewd comments and photographs and posted her home address, phone number and photograph on Craigslist and other public websites to be used for escort/prostitution advertising. This woman also received information that Zarculia had been to her home and wiped a caustic chemical compound on the handle of the front door.
The complaint alleges yet another woman who began receiving unsolicited Instagram messages from Zarculia in July 2020. These messages also escalated to harassing and threatening text and audio messages. On many occasions, Zarculia made reference to her location, making it apparent that he had followed her and knew where she had been and where she lived. In October, out of fear for her safety, the woman obtained a temporary order of protection against Zarculia. The following day, while hiking at a local park, the woman saw Zarculia from a distance. She then hid in a large bush and sought the assistance of a park ranger to escort her to her vehicle, at which time Zarculia began yelling at her.
Each of these victims were forced to take additional security measures, including installing or updating their home alarm systems, or even moving from their home, in order to mitigate the threat posed by Zarculia.
Zarculia will make an initial appearance before a U.S. Magistrate Judge later this afternoon. If convicted, he faces up to five years in prison and a $250,000 fine on each count.
Anyone who believes they have been the target of Zarculia’s cyberstalking or threatening behavior is encouraged to contact the local FBI office at 615-232-7500.
Assistant U.S. Attorney Kathryn Risinger is prosecuting the case.
A criminal complaint is merely an accusation. The defendant is presumed innocent until proven guilty in a court of law.
# # # # #
Missouri Woman Fourth Person Sentenced for Nationwide Fraud SchemeRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Heather Bishop, 31, Lee’s Summit, Missouri was sentenced today by U.S. District Judge William M. Conley to 30 months in federal prison for conspiring with Crystal Austin, Shelly Scott, Jason Edge, and others to commit wire fraud throughout the country. Bishop was ordered to pay restitution to Walmart, Inc., in an amount to be determined after a hearing on January 11, 2021.
Between February 2017 and March 2018, Bishop, Austin, Scott, Edge and others conspired to defraud Walmart, Inc. through use of stolen personal checks, identity fraud, and methods to bypass electronic check authorization measures, resulting in a loss of over $860,000 to Walmart. The group used stolen identification cards of real people to perpetuate this fraud in 18 states, using more than 14 different stolen checking accounts. Bishop and other co-conspirators would present a stolen check and false identification at the time of payment, and when the check was declined, the person presenting the check would pretend to call the check authorization company, when in fact, they would call a co-conspirator. The co-conspirator would tell the clerk to accept the check, and the transaction would be complete.
Scott and Edge were arrested by Monona Police on February 25, 2018, after Walmart employees became suspicious of their behavior. They were sentenced to 48 months in federal prison in November 2018 after pleading guilty for their roles in this fraud scheme.
Heather Bishop and conspirators Crystal Austin and Jennifer Austin were charged in this conspiracy and arrested in December 2019. Crystal Austin pleaded guilty to the conspiracy and was sentenced to 65 months in prison in September 2020. Jennifer Austin has also agreed to plead guilty to the conspiracy and is scheduled for a guilty plea and sentencing hearing on December 15, 2020.
In sentencing Bishop, Judge Conley noted that this conspiracy involved not only Walmart as a victim, but also those whose identities and bank accounts were used in the fraud. He noted that in Bishop’s case, her involvement seemed to be based on opportunity, family dysfunction, and anti-social personality and decision making. In choosing a sentence of 30 months, Judge Conley also recognized that Bishop was less culpable than the co-conspirators previously sentenced in this case.
The charges against Heather Bishop and her co-conspirators were the result of an investigation conducted by the Federal Bureau of Investigation, Monona and Sun Prairie Police Departments, and police departments throughout the country, with the assistance of Walmart fraud investigators. The prosecution of the case has been handled by Assistant U.S. Attorney Laura A. Przybylinski Finn.
Michigan and New Jersey Men Admit Participating in $10 Million Multi-State Bank Fraud ConspiracyRead the Press Release
TRENTON, N.J. – A Michigan man today admitted his role in a large-scale conspiracy to commit bank fraud in several states, including New Jersey, New York, Pennsylvania, Maryland, Virginia, and Michigan, over the course of two years, U.S. Attorney Craig Carpenito announced today.
Rana Sharif, 36, of Dearborn Heights, Michigan, pleaded guilty by videoconference before Chief U.S. District Judge Freda L. Wolfson to an information charging him with one count of conspiracy to commit bank fraud.
On Nov. 10, 2020, co-defendant Ali Abbas, 38, of Middlesex County, New Jersey, pleaded guilty by videoconference before Judge Wolfson to a separate information that also charged him with conspiracy to commit bank fraud.
Sharif, Abbas and five co-defendants – Awaise Dar, Shamsher Farooq, Naveed Arif, Habib Majid and Erm Ayaz – were charged by complaint in July 2020 in connection with the scheme.
According to documents filed in this case and statements made in court:
From 2018 through April 2020, Sharif, Abbas, and others conspired to defraud several major banks and electronic merchant processors. They established bank accounts associated with sham entities that had no legitimate purpose, and issued checks payable to other shell companies associated with the criminal organization, knowing that the payor accounts had insufficient funds. The conspirators would also conduct fraudulent credit card and debit card transactions between shell companies to credit payee accounts and overdraw payor accounts. The defendants also used these shell companies to execute temporary refund credits, commonly referred to as “charge-backs,” to checking accounts associated with the criminal organization, where no prior legitimate transaction had occurred.
Members of the criminal organization withdrew the “existing” funds (through ATMs or bank tellers) that banks and merchant processors had credited to the payee bank accounts at the time of the fraudulent transaction. Because the conspirators withdrew the credited funds from the payee accounts before the banks could recognize the fraudulent transactions, the banks and merchant processors were left with substantial losses.
During its investigation, law enforcement identified approximately 200 bank accounts and 75 merchant credit card processing accounts used to facilitate the conspiracy’s fraudulent schemes. Sharif, Ali, and other conspirators’ unlawful activities attempted to cause a $10 million loss on financial institutions and did in fact caused a loss of approximately $3.5 million.
The conspiracy charges to which Sharif and Abbas pleaded guilty carry a maximum potential penalty of 30 years in prison, a fine of $1 million or twice the gross pecuniary gain to the defendants or twice the gross pecuniary loss to others, whichever is greater. Sharif’s sentencing is scheduled for March 15, 2021. Abbas’ sentencing is scheduled for March 18, 2021.
U.S. Attorney Craig Carpenito credited special agents of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Raimundo Marrero in Newark; the U.S. Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina in Newark: Social Security Administration, under the direction of John F. Grasso; and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez, with the investigation leading to the guilty pleas.
The government is represented by Assistant U.S. Attorney Ray Mateo of the U.S. Attorney’s Office Criminal Division in Trenton.
The charges and allegations against the remaining defendants are merely accusations, and they are presumed innocent unless and until proven guilty.
Meth-Smuggling Attorney Turns Short Jail Visit into a Long StayRead the Press Release
MARSHALL, Texas – A 50-year-old Cass County, Texas man has been sentenced for a federal drug violation in the Eastern District of Texas, announced U.S. Attorney Stephen J. Cox today.
Bryan Lee Simmons pleaded guilty on Sep. 14, 2020, to conspiring to distribute methamphetamine and was sentenced to 48 months in federal prison today by U.S. District Judge Rodney Gilstrap. Simmons also agreed not to engage in the practice of law for at least three years thereafter.
According to information presented in court, beginning in July 2019 and continuing through August 2019, Simmons agreed with others to distribute methamphetamine in the Cass County Jail. Specifically, on August 29, 2019, he entered the Cass County Jail under the guise of meeting with a client. When Simmons entered the jail, he had methamphetamine hidden on his body, which he intended to distribute to an inmate. Simmons was also armed with a Colt MK IV .45 caliber pistol when he drove to the jail with the methamphetamine. Simmons later admitted in open court that he had smuggled drugs into the Cass County Jail on at least two prior occasions.
This case was investigated by the Texas Department of Public Safety, Texas Rangers Division, with assistance from the Cass County, Texas, District Attorney’s Office and the Cass County, Texas, Sheriff’s Office. The case was prosecuted by Assistant U.S. Attorney Jonathan R. Hornok.
Man Sentenced for Threatening to Burn Down African American ChurchRead the Press Release
NORFOLK, Va. – A North Carolina man was sentenced today to two years in prison for making a threat to burn down an African American church in Virginia Beach.
According to court documents, John Malcolm Bareswill, 63, called a Virginia Beach church with a predominantly African American congregation, made racially derogatory remarks, and threatened to set the church on fire. The threatening call was placed on June 7, several days after one of the church’s leaders took part in a public prayer vigil and peaceful demonstration for George Floyd.
“John Malcolm Bareswill reacted to a prayer vigil and rally held in memory of George Floyd by threatening to burn down an African American church,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Answering the exercise of constitutional freedoms with threats of violence—especially threats that tap into a long and shameful history of racially-motivated violence against houses of worship—requires swift and certain justice. Bareswill’s threat terrified the adult Sunday school teachers who heard it and affected the entire church community. While this sentence cannot undo that harm, it sends an important message: Our community will not tolerate attempts to silence free speech or interfere with the free exercise of religion.”
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Karl Schumann, Acting Special Agent in Charge of the FBI’s Norfolk Field Office; Paul Neudigate, Chief of the Virginia Beach Police Department; and David Hutcheson, Chief of the Virginia Beach Fire Department, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson.
Assistant U.S. Attorney Andrew Bosse prosecuted the case. Trial Attorney Kathryn Gilbert of the Justice Department’s Civil Rights Division provided significant assistance on the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:20-cr-61.
Man Sentenced for Possessing Heroin and Fentanyl in ChesapeakeRead the Press Release
NEWPORT NEWS, Va. – A New York City man was sentenced today to six and a half years in prison for possessing with intent to distribute a kilogram of heroin and a kilogram of fentanyl.
According to court documents, Jabulani Maitland, 36, travelled from New York in February 2020 and checked into a hotel in Chesapeake. Agents from Homeland Security Investigations received information that Maitland was in possession of a large quantity of drugs. Using this information, Maitland was approached by agents and questioned about drugs. Ultimately, Maitland agreed to allow agents to search his hotel room, and agents located a kilogram of heroin and a kilogram of fentanyl which were intended for further distribution in the Tidewater region.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C., made the announcement after sentencing by U.S. District Judge Raymond A. Jackson.
Assistant U.S. Attorney Eric M. Hurt prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:20-cr-24.
Major COVID-19 fraud investigation results in charges in Augusta areaRead the Press Release
<p><b>AUGUSTA, GA:</b> Six individuals have been indicted on felony charges and nearly $400,000 seized in the Southern District of Georgia relating to the alleged submission of fraudulent loan applications for pandemic disaster relief funds.</p>
<p>In response to the devastating negative economic impacts of the COVID-19 pandemic, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was passed into law in March 2020. The CARES Act authorized the Small Business Administration (SBA) to provide and/or guarantee loans specifically designed to keep small businesses afloat during the unprecedented financial challenges brought on by the pandemic. Charges in the Augusta area announced today allege that individuals exploited these programs for their own financial gain and sought relief payments through a series of false and fraudulent representations regarding their businesses’ existence, gross revenue, and number of employees in order to receive Economic Injury Disaster Loans (EIDL) and/or Paycheck Protection Program (PPP) loans, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia.</p>
<p>According to the indictments, these individuals made false representations to the SBA and/or financial institutions about small businesses each purportedly owned in the Augusta area. The indictments allege that each of the defendants fraudulently obtained relief funds earmarked for small businesses that were suffering the negative economic impacts of the pandemic:</p>
<ul>
<li><b>Whitney Adwan Mack</b>, 33, of Louisville, Ga., the alleged owner of four different businesses, is charged with wire fraud and misuse of a social security number for making false representations to the SBA regarding her businesses’ gross revenue, number of employees, and using a Social Security number that did not belong to her.</li>
<li><b>Jada S. Nelson</b>, 20, and <b>Sonya Barnes,</b> 41, both of Augusta, are charged with wire fraud and aiding and abetting for making false representations to the SBA regarding their businesses’ existence, gross revenue, and number of employees.</li>
<li><b>Rose Mary Coleman</b>, 57, of Augusta, is charged with wire fraud for making false representations to the SBA regarding her business’s gross revenue and number of employees.</li>
<li><b>Orell Plummer</b>, 41, of Augusta, is charged with wire fraud for making false representations to the SBA regarding the gross revenue and number of employees in his business.</li>
<li><b>Darryl T. Williams, Sr.</b>, 52, of Augusta, is charged with wire fraud for making false representations to the SBA and to a financial lender regarding the gross revenue and number of employees of his businesses.</li>
</ul><p>In addition, in a separate matter, the United States has filed a forfeiture complaint to recover $383,456.21 in funds that have been seized and are alleged to be the fruits of fraudulent SBA loan submissions.</p>
<p>“In the midst of the pandemic, millions of Americans were suffering devastating economic situations,” said United States Attorney Bobby L. Christine. “It’s unconscionable that some would seek to profit off of that devastation by creating fake businesses and fabricating financial information. This office will continue to devote significant resources to stopping those pandemic-profiteering fraudsters.”</p>
<p> </p>
<p>“This nation’s citizens and businesses are counting on the U.S. Secret Service and its federal law enforcement, as well as the Georgia Bureau of Investigation, to safeguard it and maintain the public trust,” said Resident Agent in Charge Glen M. Kessler of the Secret Service Savannah Office. “These criminal cases brought today should serve as a strong deterrent to those considering exploiting the COVID-19 pandemic to enrich themselves through fraud. These defendants took money that was earmarked for legitimate businesses that could have greatly benefitted from the funds supplied by the U.S. government but instead were used to enrich themselves. Tackling the threat of cyber-enabled COVID-19 scams requires an immediate response to safeguard our nation during these unprecedented times.”</p>
<p>“The pandemic has been a burden on so many Georgians,” said Vic Reynolds, Director of the Georgia Bureau of Investigation. “Defrauding the government of funds earmarked for hardworking business owners is inexcusable. The GBI is committed to working with our partners to investigate these crimes.”</p>
<p>Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.</p>
<p>These cases are being investigated by the U.S. Secret Service, the Treasury Inspector General for Tax Administration, the Social Security Administration, the Small Business Administration Office of Inspector General, and the Georgia Bureau of Investigation. These cases are being prosecuted by Assistant U.S. Attorneys Patrick J. Schwedler, J. Thomas Clarkson, Jonathan A. Porter, and Jennifer A. Stanley, and the seizure and forfeiture action was brought by Assistant U.S. Attorney and Asset Recovery Unit Chief Xavier A. Cunningham.</p>
Madison Man Sentenced to 3 Years for Drug & Gun OffensesRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Demarious Gray, 29, Madison, Wisconsin pleaded guilty and was sentenced November 9, 2020, by Chief U.S. District Judge James D. Peterson to three years in prison for possessing heroin and cocaine with the intent to distribute, and possessing a firearm in furtherance of that drug trafficking crime.
In 2013, Gray was convicted in state court of an armed robbery in Wisconsin where he stole approximately $5,000 from a young woman at gunpoint and then threatened to kill her if she called the police. He was given an eight-year prison sentence that was stayed for a term of probation. In 2015, his probation was revoked after Gray was found with a gun and convicted of being a felon in possession of a firearm.
On October 9, 2017, Gray came into contact with law enforcement while driving and was found to be in possession of crack cocaine, heroin, and a .40 caliber Glock handgun. He subsequently was indicted by a federal grand jury. During the plea hearing on Monday, Gray admitted that he intended to sell the drugs and that the handgun was used to assist in his drug trafficking.
At sentencing, Judge Peterson noted that this was a very serious offense, that the heroin was laced with Fentanyl, and that Gray was armed with handgun and had a lot of ammunition in the car. The judge commented that videos found on Gray’s cell phone appeared to be him showing off with the gun. Judge Peterson said that after Gray’s brother was shot and killed in 2017, Gray should have known better but that his response was to become a part of the problem. In arriving at a three-year consecutive sentence in the federal case, the court considered that Gray had already served three years in prison on a state revocation.
The charges against Gray were the result of an investigation conducted by Wisconsin Department of Justice Division of Criminal Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution of the case has been handled by Assistant U.S. Attorney Corey Stephan.
This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition and violent and drug crimes that involve the use of firearms.
Macomb Township Resident Charged in COVID-19 Bank Fraud SchemeRead the Press Release
A Macomb Township resident was charged in a Criminal Information for his alleged role in a scheme to fraudulently obtain approximately $931,000 from the Paycheck Protection Program, United States Attorney Matthew Schneider announced today.
Joining Schneider in the announcement were Special Agent in Charge John Crawford of the Federal Deposit Insurance Corporation Office of Inspector General, Special Agent in Charge Douglas Zlotto of the United States Secret Service, and Special Agent in Charge Sharon Johnson of the United States Small Business Administration Office of Inspector General.
The Information charges Michael Bischoff, 60, of Macomb Township, Michigan, with one count of Bank Fraud.
According to the Information, Bischoff owned a number of pizza restaurants in Macomb County, Michigan, which operated through various corporate entities Bischoff controlled (the Bischoff entities). The Information alleges that Bischoff applied for at least nine loans on behalf of the Bischoff entities under the Paycheck Protection Program (PPP). The PPP is a program overseen by the Small Business Administration designed to provide forgivable loans to small businesses affected by the coronavirus pandemic. Applicants for PPP loans apply directly to banks or financial institutions participating in the program; in those applications, applicants make affirmative certifications about, among other things, their average monthly payroll expenses and number of employees. Applicants also certify their intent to spend PPP proceeds on permissible business expenses, such as payroll costs, rent, utilities, and interest on mortgages. PPP loans may be entirely forgiven if the recipient spends the loan proceeds on these permissible expenses within a designated period of time after receiving the proceeds.
The Information alleges that at least nine of Bischoff’s PPP applications contained false and fraudulent representations to the participating lenders. All of the applications included false representations about the amount of payroll and number of employees working at the Bischoff entities. A number of the applications also included false documentation, purportedly from the IRS, to support the misrepresentations about payroll expenses at those entities. In other applications, Bischoff is alleged to have fraudulently used another person’s personal identifying information to secure approval for the loans.
In all, the Information alleges that, in his false and fraudulent loan applications, Bischoff sought approximately $931,772 in proceeds from the PPP. Bischoff is alleged to have actually received approximately $593,590 from PPP lenders as a result of his fraudulent loan applications.
An Information is only a charge and is not evidence of guilt.
The case is being prosecuted by Assistant United States Attorney John K. Neal of the Eastern District of Michigan, Trial Attorney Philip B. Trout of the U.S. Department of Justice’s Criminal Division, Fraud Section, and Trial Attorney Chad M. Davis of the U.S. Department of Justice’s Criminal Division, Money Laundering and Asset Recovery Section. The investigation is being conducted jointly by the Federal Deposit Insurance Corporation Office of Inspector General, the United States Secret Service and the Small Business Administration Office of Inspector General.
Lewis County Man Arrested on Child Pornography ChargesRead the Press Release
SYRACUSE, NEW YORK – Randell Adsit, age 49, of Martinsburg, New York, was arrested yesterday and charged with distributing child pornography, announced Acting United States Attorney Antoinette T. Bacon, Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), and New York State Police Superintendent Keith Corlett.
According to the complaint, Adsit, who was convicted in 2008 of possessing a sexual performance by a child less than 16 years old, used multiple usernames on a social media application to trade child pornography with other people over the internet. Due to his prior conviction, Adsit is required to register as a sex offender, and would also be required to do so if convicted of the charge alleged in the complaint.
The charge filed against Adsit carries a mandatory minimum sentence of 15 years and a maximum of 40 years in prison, a post-release term of supervision of between five years and life, and a fine of up to $250,000. 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.
Adsit made his initial appearance yesterday before Magistrate Judge Thérèse Wiley Dancks and was detained pending further proceedings.
The charge in the complaint is merely an accusation. The defendant is presumed innocent unless and until proven guilty.
This case was investigated by the FBI Syracuse Mid-State Child Exploitation Task Force. This task force is comprised of FBI Special Agents and Investigators of the New York State Police, Bureau of Criminal Investigation (BCI), and is being prosecuted by Assistant U.S. Attorney Michael D. Gadarian as a part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Lassen County Man Charged with Possession with Intent to Distribute Methamphetamine and Being a Felon in Possession of a FirearmRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a four-count indictment today against Joshua Paul Doyle, 38, of Susanville, charging him with two counts of possession with intent to distribute methamphetamine and two counts of being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
According to court documents, Doyle was arrested twice in the span of six months during traffic stops, each time found to be in possession of methamphetamine for distribution and firearms. Doyle has been convicted previously of crimes punishable by more than a year in prison and is therefore prohibited under federal law from possessing firearms.
On May 12, when a law enforcement officer executed a traffic stop in Susanville on a vehicle for having no front license plate, the officer identified the driver as Doyle. During a pat-down search, deputies found methamphetamine in his pockets. In the search of Doyle’s vehicle that followed, deputies found a loaded handgun in the center console, as well as another loaded handgun and nearly a pound of methamphetamine in a backpack in the back seat. Doyle was arrested and later released on bail pending trail.
On Sept. 30, Doyle was again stopped in Susanville when a records check of the car’s license plate indicated it had been reported stolen. During a search of the car, officers found brass knuckles, roughly 5 ounces (150 grams) of methamphetamine, and a loaded handgun in the center console.
This case is the product of an investigation by the Federal Bureau of Investigation, the Lassen County Sheriff’s Office, the Lassen County District Attorney's Office, and the Susanville Police Department. Assistant U.S. Attorney James Conolly is prosecuting the case.
If convicted, Doyle faces a maximum statutory penalty of 40 years in prison and a $5 million fine for each of the narcotics charges, each of which also have a statutory minimum sentence of five years. He faces a maximum statutory penalty of 10 years in prison and a $250,000 fine for each of the felon in possession charges. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see www.justice.gov/projectguardian.
Las Vegas tax preparer pleads guilty to false returnsRead the Press Release
ALBUQUERQUE, N.M. – Carlos Perea, 44, of Las Vegas, New Mexico, pleaded guilty in federal court in Albuquerque today to two counts of aiding and abetting the preparation of false income tax returns.
Perea owned and operated Perea Fast Tax in Las Vegas where he prepared income tax returns for clients and filed them with the IRS electronically and by mail. In the plea agreement, Perea admitted to reporting false information to decrease tax liabilities and increase refunds. Among the deceptive practices employed by Perea were deducting bogus business expenses, falsely reporting head of household status to increase the standard deduction and improperly claiming dependents to increase exemptions.
He faces up to three years in prison on each count.
The IRS investigated this case. Assistant U.S. Attorney Benjamin Christenson is prosecuting the case.
Justice Department’s Procurement Collusion Strike Force Announces Eleven New National PartnersRead the Press Release
The Justice Department announced today that the Procurement Collusion Strike Force (PCSF) is adding 11 new national partners to the Strike Force, for a total of 29 agencies and offices committed on the national level to combatting collusion, antitrust crimes and related fraudulent schemes, which undermine competition in government procurement, grant and program funding.
Of the new partners, nine are U.S. Attorneys’ Offices, with complementary enforcement priorities in U.S. cities with diverse government spending profiles:
- David L. Anderson, Northern District of California
- Robert K. Hur, District of Maryland
- Erica H. MacDonald, District of Minnesota
- Michael Hurst, Jr., Southern District of Mississippi
- Seth D. DuCharme, Eastern District of New York
- Matthew G.T. Martin, Middle District of North Carolina
- Stephen Muldrow, District of Puerto Rico
- Stephen J. Cox, Eastern District of Texas
- Ryan Patrick, Southern District of Texas
The PCSF is also welcoming as national partners the United States Air Force Office of Special Investigations and Department of Homeland Security, Office of Inspector General, two critically important law enforcement partners with proven track records of working with the PCSF as well as the Antitrust Division.
“I am excited to welcome these new partners to the PCSF effort,” Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division said announcing the new partners in Washington, D.C. “By growing our national footprint, and folding in additional subject-matter experts, the PCSF is poised for even more success in its next year.”
“DHS OIG is pleased to join our law enforcement partners on the PCSF,” said Inspector General Joseph V. Cuffari of the Department of Homeland Security. “We look forward to working with the Strike Force to combat antitrust crimes and related schemes on behalf of American taxpayers.”
“OSI, led by our Office of Procurement Fraud Investigations team, is pleased to be a full national partner in the PCSF effort,” said Brigadier General Terry L. Bullard, Commander, Air Force OSI. “We are committed to the principles of the PCSF in ensuring we educate and inform our stakeholders to deter bad actors, and in investigating crimes when they do occur. We look forward to furthering this project together with the Department of Justice and sister agencies.”
In remarks delivered to the American Bar Association, Antitrust Section’s Fall Forum, Assistant Attorney General Delrahim also provided recap of the PCSF’s first year of accomplishments, which are detailed in a recent post to the department’s “Justice Blog.”
The PCSF has a publicly available website at www.Justice.gov/Procurement-Collusion-Strike-Force, where members of the public can review information about the federal antitrust laws and training programs, and report suspected criminal activity affecting public procurement. Individuals and companies are encouraged to contact the PCSF if they have information concerning anticompetitive conduct involving federal taxpayer dollars by emailing [email protected] or filling out the PCSF anonymous complaint form, located on the PCSF website.
Federal, state, and local agencies can also contact the PCSF at [email protected] for any training needs or to report suspected antitrust violations.
Justice Department Settles with Transportation and Logistics Company to Resolve Immigration-Related Discrimination ClaimsRead the Press Release
The Justice Department announced today that it reached a settlement with IAS Logistics DFW LLC, d/b/a Pinnacle Logistics (Pinnacle Logistics), a transportation and logistics company headquartered in Fort Worth, Texas.
The settlement resolves claims that Pinnacle Logistics discriminated against an asylee worker based on his citizenship status by rejecting the worker’s valid work authorization documents and terminating him when he could not satisfy the company’s request for specific and unnecessary immigration documents.
“Employers must not interfere with a worker’s lawful right to present acceptable work authorization documents to prove authorization to work in the United States,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “We applaud Pinnacle Logistics’ decision to work with the Department of Justice and to change its practices to comply with the Immigration and Nationality Act’s non-discrimination protections.”
Based on its investigation, the department concluded that Pinnacle Logistics asked the asylee worker to present an additional, DHS-issued document because of his status as a non-U.S. citizen, even though he had already presented sufficient documentation establishing his work authorization. When the worker could not produce the document Pinnacle Logistics requested, despite being work-authorized, the company terminated him.
The Immigration and Nationality Act’s (INA) anti-discrimination provision prohibits employers from requesting more or different documents than necessary to prove work authorization based on employees’ citizenship, immigration status or national origin. Instead, in the INA, Congress determined that all work-authorized individuals, regardless of citizenship status, may choose which valid, legally acceptable documents to present to demonstrate their ability to work in the United States. The INA does, however, permit employers to reject non-genuine looking documents.
Under the terms of the settlement agreement, Pinnacle Logistics will pay a civil penalty to the United States and back pay to the affected worker, will train its employees about the requirements of the INA’s anti-discrimination provision and proper E-Verify procedures, and will be subject to department reporting requirements over the term of the agreement.
The division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits, among other things, citizenship status and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; retaliation and intimidation.
Learn more about IER’s work and how to get assistance through this brief video. For more information about protections against employment discrimination under immigration laws, call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar; email [email protected]; or visit IER’s English and Spanish websites. Subscribe to GovDelivery to receive updates from IER.
The Civil Rights Division wants to hear about civil rights violations. Members of the public can report possible civil rights violations through the Civil Rights Division’s reporting portal.
Applicants or employees who believe they were subjected to discrimination based on their citizenship, immigration status, or national origin in hiring, firing, or recruitment or referral for a fee; or discrimination in the employment eligibility verification process (Form I-9 and E-Verify) based on their citizenship, immigration status, or national origin; or retaliation can file a charge or contact IER’s worker hotline for assistance.
The Civil Rights Division’s Protecting U.S. Workers Initiative, started in 2017 in the Immigrant and Employee Rights Section (IER), targets, investigates, and (where appropriate) brings enforcement actions against employers that intentionally discriminate against U.S. workers due to citizenship-status discrimination based on a preference for temporary visa workers. IER has reached numerous settlements under the Protecting U.S. Workers Initiative, and employers have distributed or agreed to pay a combined total of more than $1.2 million in back pay to affected U.S. workers and civil penalties to the United States. These settlements involve employers that discriminated in their use of the H-1B, H-2A, and H-2B visa programs.
Justice Department Issues Guidance on the Use of Arbitration and Launches Small Business Help CenterRead the Press Release
The Antitrust Division of the Department of Justice announced the publication of two new resources on its website today.
First, the division issued updated and supplemental guidance on the use of arbitration, which includes case selection criteria to help identify Antitrust Division cases that would benefit from the application of arbitration. This guidance reflects the Antitrust Division’s experience using arbitration to resolve a civil antitrust lawsuit challenging Novelis’s proposed merger with Aleris Corporation. The updated document also contains guidance regarding the arbitration agreement, the decision whether to file a complaint in federal district court before the matter is referred to arbitration, arbitrator selection, arbitrator compensation and cost shifting, and the training of Antitrust Division staff on the use of arbitration.
Second, the division launched a new web resource to provide targeted antitrust information and guidance to small business owners. The new “Antitrust and Your Small Business” section of the division’s website contains user-friendly guidance and links to DOJ materials on antitrust “hot topics” relevant to small businesses, including tips on identifying potential anticompetitive conduct that harms small businesses, tips on avoiding and reporting criminal antitrust violations, requirements for applying to the criminal leniency program, tips on avoiding antitrust issues related to hiring and management, materials on COVID-19 and disaster relief, guidance on information sharing and trade associations, and more.
“Earlier this year, the Division prevailed in the first-of-its-kind arbitration of a merger challenge. The new guidance crystallizes our learning from that case and outlines how that learning may be applied to future matters,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “Additionally, I am gratified that we are addressing the needs of small businesses in a targeted way. As we have repeatedly said, the antitrust laws are not solely applicable to the biggest businesses, but are meant to protect consumers, workers, and small businesses as well. Given these unprecedented times and the increased visibility of antitrust in the business community, the Antitrust Division hopes these resource pages will help small business owners better understand what the antitrust laws are, examples of conduct they prohibit, and ways to report potential violations.”
The arbitration guidance is available on the Antitrust Division’s website (/media/1104421/dl?inline) and will be published in the Federal Register.
The Antitrust Issues and Your Small Business resource pages can be accessed at www.justice.gov/atr/antitrust-issues-and-your-small-business.
Justice Department Files Race Discrimination Lawsuit Against Pearl, Mississippi Property Owners and Rental AgentRead the Press Release
The Department of Justice announced today that it has filed a lawsuit alleging that the owners, operators and rental agent of several apartment complexes in Pearl, Mississippi, violated the Fair Housing Act by discriminating against African Americans based on their race.
The department’s complaint seeks relief against three owners and operators of the properties — SSM Properties LLC; Steven Maulding; and Sheila Maulding — as well as James Roe, who acted as a rental agent for the apartment complexes on behalf of the other defendants. The lawsuit is based on the results of testing conducted by the Louisiana Fair Housing Action Center and a Charge of Discrimination issued by the Department of Housing and Urban Development (“HUD”). Testing is a simulation of a housing transaction that compares responses given by housing providers to different types of home-seekers to determine whether or not illegal discrimination is occurring.
The department’s complaint, filed in the U.S. District Court for the Southern District of Mississippi, alleges that Roe discriminated against prospective renters on the basis of race by treating African Americans who inquired about available apartments differently and less favorably than similarly-situated white persons. The properties are:
- Oak Manor Apartments, located at 2592 Old Country Club Road, Pearl, Miss.;
- Pearl Manor Apartments, located at 200 George Wallace Drive, Pearl, Miss.; and
- 468 Place Townhomes, located at 2932-34 State Highway 468, Pearl, Miss.
“More than a half century ago, Congress enacted the Fair Housing Act to prohibit landlords and others from denying people the opportunity to live where they want because of their race, color, or other protected characteristics,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “Some misguided people unfortunately continue to defy this law by segregating and excluding people because of their skin color. This uncivilized and cruel discrimination hurts people; it must end, now, and the Department of Justice is determined to put a stop to it. All Americans should be free to live anywhere in the United States without regard to the color of their skin. No one’s housing choices should be limited because of race or color or by more subtle differences in the way home-seekers are treated when they ask about available properties. This department is committed to ensuring equal housing opportunities, regardless of race, including by using fair-housing testing to uncover hidden discrimination that might otherwise go undetected.”
“Treating people differently in housing based on the color of their skin is not only morally and ethically reprehensible and incompatible with American principles, but against federal law,” said U.S. Attorney Mike Hurst of the Southern District of Mississippi. “We in the Department of Justice will always strive to ensure that justice is done and that people are treated equitably and fairly, especially when seeking and trying to access such an essential cornerstone of a free society as housing. This lawsuit is just one more step up the long staircase of liberty and justice for all.”
“A person’s race should not be a factor when searching for a place to call home,” said Anna María Farías, HUD’s Assistant Secretary for Fair Housing and Equal Opportunity. “HUD applauds today’s action and remains committed to working with the Justice Department to take appropriate action whenever the nation’s fair housing laws are violated.”
According to the department’s complaint, Roe encouraged white testers to rent at Pearl Manor Apartments but discouraged African-American testers from renting there, telling one African-American tester that if he rented to her at this complex, the residents would think he had “let the zoo out.” In addition, Roe told African-American testers about fewer rental units than white testers, allowed white testers to view certain apartments while not offering or allowing African-American testers the same opportunity, and imposed more stringent financial and employment criteria and inquiries on African-American testers than on white testers. The lawsuit alleges that SSM Properties and Steven and Sheila Maulding are legally responsible for Roe’s alleged discrimination because he worked as their rental agent.
Today’s lawsuit seeks monetary damages to compensate victims, civil penalties against the defendants to vindicate the public interest, and a court order barring future discrimination.
Individuals who believe they or someone they know may have been discriminated against at any of these properties should contact the department toll-free at 1-833-591-0291 or by email at [email protected]. Individuals who have information about this or another matter involving alleged discrimination may submit a report online at civilrights.justice.gov.
The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. More information about the Civil Rights Division and the civil rights laws it enforces is available at www.justice.gov/crt. The complaint contains allegations of unlawful conduct. The allegations in the complaint must be proven in court.
Jury Convicts Hampton Roads Tax Preparer of FraudRead the Press Release
NORFOLK, Va. – A federal jury convicted a Norfolk woman today on 5 counts of wire fraud and 33 counts of aiding and assisting in the preparation of false and fraudulent income tax returns.
According to court records and evidence presented at trial, Nikia Tull, 43, served as the co-owner and operator of YT Phoenix Enterprises, Inc., aka Phoenix Financial Tax Service, a tax preparation service. Between 2014 and 2018, Tull willfully aided and assisted in, and counseled and advised the preparation and presentation to the IRS of 33 federal income tax returns containing numerous false and fraudulent items. In 2019, Tull continued her fraud by submitting forged and fraudulently altered bank statements to FORA Financial LLC, a private lending company located in New York, in support of loan applications for thousands of dollars.
Tull is scheduled to be sentenced on April 12, 2021.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Kelly R. Jackson, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after Senior U.S. District Judge Robert G. Doumar accepted the verdict.
Assistant U.S. Attorneys Daniel P. Shean and Joseph L. Kosky are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:20-cr-9.
Judge sentences armed St. Louis drug dealer for possessing and intending to distribute cocaine, heroin and fentanylRead the Press Release
ST. LOUIS, MO – United States District Judge Catherine D. Perry sentenced Melvin A. Willis to 120 months in prison today. The 50-year-old St. Louis, Missouri resident pleaded guilty to three counts of possession with intent to distribute a controlled substance.
On July 12, 2018, members of the St. Louis County Multi-Jurisdictional Drug Task Force arrested Willis on an outstanding warrant. Willis had, in his pocket, a bag with several individually wrapped chunks of crack cocaine, a phone and $1,672 in cash.
That same day, officers conducted a search warrant at a home in the city of St. Louis that Willis shared with his girlfriend. In the master bedroom, officers found a plastic bag with several clear capsules containing a brown powder along with a plastic bag containing a black tar substance, a bag with an off-white powdery substance, Xanax, 9mm ammunition, a loaded 9mm High Point Rifle and a magazine loaded with five rounds ammunition.
In a second bedroom, officers found a Ruger, a semi-auto-automatic rifle, a plastic back with multiple empty clear capsule and a black grinder with a powder residue. In the kitchen, officers found a shoebox with a .22 caliber Sierra Six shot revolver with 41 live rounds of ammunition.
Willis possessed 6.92 grams of a substance containing fentanyl and heroin, .12 grams of heroin and .77 grams of marijuana.
The St. Louis County Multi-Jurisdictional Drug Task Force and FBI investigated this case. Assistant United States Attorney Paul D’Agrosa is handling the case.
#####
Jointly Prosecuted Case Across North and South Carolina Results in Man’s Conviction for Abusive Sexual Contact Aboard an AirplaneRead the Press Release
Columbia, South Carolina --- A federal jury sitting in Asheville, North Carolina, has convicted Siva K. Durbesula, 28, of India, of abusive sexual contact aboard an airplane, in a jointly prosecuted case that began in the District of South Carolina and culminated in the Western District of North Carolina, announced Peter M. McCoy, Jr., U.S. Attorney for the District of South Carolina, and R. Andrew Murray, U.S. Attorney for the Western District of North Carolina.
“Every person deserves to feel safe when they travel, and that someone would violate that safety through sexual assault is reprehensible. Those who engage in this type of behavior will be prosecuted,” said U.S. Attorney McCoy. “I applaud the courage of the witnesses in the case to step forward. I also appreciate the great work by U.S. Attorney Murray and his team to ensure the defendant’s conviction.”
According to filed court documents, witness testimony, and evidence presented at trial, Durbesula was a passenger aboard Spirit Airlines Flight NK843 from Chicago O’Hare to Myrtle Beach International Airport on June 23, 2019, when he sexually assaulted the 22-year-old woman seated next to him. Specifically, the victim testified that Durbesula repeatedly pulled her toward him and rubbed her breast. After the flight crew separated Durbesula from his victim, he asked to return to his former seat so he could speak to her again. Witnesses to the events aboard the airplane included the lead flight attendant and an unaccompanied minor sitting next to the victim.
The jury also heard from a previous victim of Durbesula. She testified that on March 21, 2019, aboard a subway train in New York City, Durbesula sat immediately next to her although there were empty seats throughout the train car. The previous victim, who was pregnant at the time, testified that shortly after he sat down, Durbesula began groping her breast. She was able to record cell phone video of Durbesula exiting the train after the assault, which was admitted at trial.
The case was a particularly challenging logistical feat, especially in light of the COVID-19 pandemic. Originally indicted in the District of South Carolina, the case was transferred to the Western District of North Carolina for trial after Durbesula agreed that the plane travelled over North Carolina and venue was appropriate in that state. Witnesses in the case came from North Carolina, South Carolina, Wisconsin, Illinois, Florida, and Arkansas to testify.
Durbesula is currently in custody. At sentencing, the charge carries a maximum sentence of two years in federal prison, and Durbesula faces deportation.
In making today’s announcement U.S. Attorneys McCoy and Murray thanked the Horry County Police Department, Federal Bureau of Investigation (FBI), and Homeland Security Investigations (HSI) for their work in investigating the case.
Assistant U.S. Attorneys Don Gast, of the U.S. Attorney’s Office for the Western District of North Carolina in Asheville, and Derek A. Shoemake, of the U.S. Attorney’s Office for the District of South Carolina in Florence, are prosecuting the case. Victim-Witness Coordinators Lynne Crout, with the Western District of North Carolina, and Clarissa Whaley, with the District of South Carolina, provided assistance for the two victims and witnesses across six states.
#####
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.
Inmate at USP Lee Indicted for 2018 Murder of CellmateRead the Press Release
ABINGDON, Virginia - A federal grand jury sitting in U.S. District Court in Abingdon has indicted Samuel Silva, an inmate a United States Penitentiary, Lee County and charged him with the premeditated murder of his cellmate in September 2018, Acting United States Attorney Daniel P. Bubar and David W. Archey, Special Agent in Charge of the FBI’s Richmond Division announced today.
Silva, 45, is charged with one count of willfully, deliberately, maliciously, and with premeditation killing Abraham Aldana, Silva’s cellmate at the time, in September 2018, by stabbing him.
The investigation of the case was conducted by the Federal Bureau of Investigation. Acting United States Attorney Daniel P. Bubar and Assistant United States Attorneys Zachary T. Lee, Daniel J. Murphy, and Aaron Stewart, a Trial Attorney with the Department of Justice’s Capital Case Unit are prosecuting the case for the United States.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty in a court of law.
Indivior Solutions Sentenced as Part of $2 Billion Resolution of False Safety Claims Concerning SuboxoneRead the Press Release
ABINGDON, Virginia - Indivior Solutions was sentenced to pay $289 million in criminal penalties in connection with a previous guilty plea related to the marketing of the opioid-addiction-treatment drug Suboxone, the Department of Justice announced today.
U.S. District Judge James P. Jones of the Western District of Virginia entered the sentence against Indivior Solutions pursuant to a plea agreement. Together with Indivior’s civil penalties, it will pay $600 million to resolve its civil and criminal liability. Altogether, the investigation and prosecution of Indivior Solutions and its parent companies, Indivior Inc. and Indivior plc, and two former Indivior executives (its CEO and Medical Director) and a resolution with Indivior’s former parent, Reckitt Benckiser Group plc, resulted in recoveries of more than $2 billion.
Suboxone, which contains the powerful opioid buprenorphine, is a drug product approved for use by recovering opioid addicts to avoid or reduce withdrawal symptoms while they undergo treatment for opioid-use disorder. In connection with its guilty plea, Indivior Solutions admitted to making false statements to the Massachusetts Medicaid program (MassHealth) related to the relative safety of Suboxone Film, a version of Suboxone, around children.
“Combating the opioid epidemic is a top priority for the Department of Justice,” said Acting Assistant Attorney General Jeffrey Bossert Clark of the Justice Department’s Civil Division. “We will hold drug manufacturers accountable when they make misrepresentations that could affect consumers’ access to opioid addiction treatments.”
Indivior Solutions, a subsidiary of Indivior Inc., pleaded guilty on July 24, 2020, to a one-count felony criminal information charging false statements relating to health care matters. Indivior Inc. agreed to terms complementing the Indivior Solutions guilty plea and agreed to implement prospective measures that include permanently disbanding Indivior Inc.’s Suboxone sales force and taking steps to prevent promoting Suboxone to health care providers at a high risk of inappropriate prescribing.
On June 30, 2020, Indivior’s former CEO, Shaun Thaxter, pleaded guilty to a one-count misdemeanor information related to Indivior’s false and misleading representations to MassHealth. On October 22, 2020, the court sentenced Thaxter to a six-month term of incarceration and $600,000 in criminal fines and forfeiture.
On August 26, 2020, Indivior’s former medical director, Tim Baxter, pleaded guilty to a one-count misdemeanor information related to Indivior’s false and misleading representations to MassHealth. Baxter’s sentencing hearing is scheduled for December 17, 2020, before Judge Jones in Abingdon, Virginia.
“When a drug manufacturer claims to be part of the solution to the national opioid epidemic, we expect it to make honest representations to government officials, physicians and patients, who have to make crucial treatment decisions,” said Acting United States Attorney Daniel P. Bubar of the Western District of Virginia. “Instead, Indivior made false statements about Suboxone’s safety to increase its sales. I’m proud of the close relationship we have with our federal and state partners that led to today’s important result.”
In its guilty plea, Indivior Solutions, which employed marketing and sales personnel for the Indivior group of companies, admitted that in October 2012 it sought to convince MassHealth to expand Medicaid coverage of Suboxone Film in Massachusetts and sent MassHealth a misleading chart and false data indicating that Suboxone Film had the lowest rate of accidental pediatric exposure (i.e., children taking medication by accident) of all buprenorphine drugs in Massachusetts, when in fact it did not. Indivior Solutions further admitted that sending the false and misleading information occurred in the context of marketing and promotional efforts directed at MassHealth, which were overseen by top executives. MassHealth announced it would provide access to Suboxone Film for patients with children under the age of six shortly after Indivior provided the false and misleading information to agency officials.
“Opioid manufacturers and distributors must be held accountable for their illegal actions in the course of this national crisis that continues to devastate families and communities across the Commonwealth,” said Attorney General Herring. “I want to thank my Medicaid Fraud Unit for their hard work on this important case and I also want to thank our local, state, and federal partners for their help and collaboration. No dollar amount or criminal punishment alone will fix this epidemic, but my team and I remain dedicated to holding these pharmaceutical companies accountable for illegal conduct related to the sales of opioids.”
“The purposefully false assurances of Indivior Solutions leading to potential misuse of potent substances such as Suboxone have only added to the opioid epidemic plaguing our nation,” said Elton Malone, Assistant Inspector General for Investigations with the Office of Inspector General of the U.S. Department of Health and Human Services. “This sentencing, along with law enforcement’s continued focus on this public health crisis, should serve as a warning that large companies cannot rely on their corporate veils to protect them from prosecution.”
“The U.S. Postal Service spends billions of dollars per year in workers compensation-related costs, most of which are legitimate, said Kenneth Cleevely, Special Agent in Charge of the Eastern Field Office for the U.S. Postal Service Office of Inspector General.. “However, when medical providers or companies choose to flout the rules and profit illegally, special agents with the USPS OIG will work with our law enforcement partners to hold them responsible.”
“Pharmaceutical companies that falsely promote their drugs, intended to treat opioid addiction, as superior to other alternatives only worsens the opioid crisis that has touched far too many lives in the U.S. Such actions potentially narrow access to treatment for those who need it,” said Judy McMeekin, Pharm.D., Associate Commissioner for Regulatory Affairs, U.S. Food and Drug Administration. “We will continue to investigate and bring to justice those who devise and participate in these schemes to the detriment of the public health.”
“Suboxone is a vital treatment for patients recovering from opioid addiction, and Indivior thwarted lower-cost generic alternatives to maintain its lucrative monopoly of the drug,” said Gail Levine, a Deputy Director of the FTC’s Bureau of Competition. “Working closely with the DOJ, the FTC was able to secure compensation for patients harmed by Indivior’s anticompetitive scheme and ensure that the company does not engage in similar conduct in the future.”
The criminal case against Indivior was prosecuted by Randy Ramseyer of the U.S. Attorney’s Office for the Western District of Virginia; Albert P. Mayer and Carol Wallack of the Department of Justice Civil Division’s Commercial Litigation Branch; Charles J. Biro and Matthew J. Lash of the Department of Justice Civil Division’s Consumer Protection Branch; Kristin L. Gray, Joseph S. Hall and Janine M. Myatt of the Virginia Medicaid Fraud Control Unit of the Office of the Attorney General; and Garth W. Huston of the Federal Trade Commission. This matter was investigated by the Virginia Attorney General’s Medicaid Fraud Control Unit; FDA’s Office of Criminal Investigation; the United States Postal Service Office of Inspector General; and the Department of Health and Human Services Office of Inspector General.
The joint effort advances the goals of the Department’s Prescription Interdiction & Litigation (PIL) Task Force to deploy all available criminal, civil, and regulatory tools to hold opioid manufacturers accountable for unlawful practices and to ensure that prescription opioid products are marketed truthfully.
For more information about the U.S. Attorney’s Office for the Western District of Virginia, visit its website at https://www.justice.gov/usao-wdva. Additional information about the Consumer Protection Branch and the Civil Fraud Section and their enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch and http://www. justice.gov/civil/fraud-section. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services Office of Inspector General at 800-HHS-TIPS (800-447-8477). To report fraud or other criminal activity involving the Postal Service, contact USPS OIG special agents at www.uspsoig.gov or 888-USPS-OIG.
Indivior Solutions Sentenced to Pay $289 Million in Criminal Penalties for Unlawful Marketing of Opioid DrugRead the Press Release
Indivior Solutions was sentenced to pay $289 million in criminal penalties in connection with a previous guilty plea related to the marketing of the opioid-addiction-treatment drug Suboxone, the Department of Justice announced today.
U.S. District Judge James P. Jones of the Western District of Virginia entered the sentence against Indivior Solutions pursuant to a plea agreement. Altogether, Indivior Solutions will pay $600 million to resolve its civil and criminal liability in this matter. In total, the payments made by Indivior Solutions and its parent companies, Indivior Inc. and Indivior plc, along with payments made under a 2019 resolution with Indivior’s former parent, Reckitt Benckiser Group plc, and criminal penalties paid pursuant to plea agreements with two former Indivior executives will exceed $2 billion. That amount represents the second-largest monetary resolution obtained by the Department of Justice in a case involving an opioid drug.
Suboxone, which contains the powerful opioid buprenorphine, is a drug product approved for use by recovering opioid addicts to avoid or reduce withdrawal symptoms while they undergo treatment for opioid-use disorder. In connection with its guilty plea, Indivior Solutions admitted to making false statements to the Massachusetts Medicaid program (MassHealth) related to the relative safety of Suboxone Film, a version of Suboxone, around children.
“Combating the opioid epidemic is a top priority for the Department of Justice,” said Acting Assistant Attorney General Jeffrey Bossert Clark of the Justice Department’s Civil Division. “We will hold drug manufacturers accountable when they make misrepresentations that could affect consumers’ access to opioid addiction treatments.”
Indivior Solutions, a subsidiary of Indivior Inc., pleaded guilty on July 24, 2020, to a one-count felony criminal information charging false statements relating to health care matters. Indivior Inc. agreed to terms complementing the Indivior Solutions guilty plea and agreed to implement prospective measures that include permanently disbanding Indivior Inc.’s Suboxone sales force and taking steps to prevent promoting Suboxone to health care providers at a high risk of inappropriate prescribing.
On June 30, 2020, Indivior’s former CEO, Shaun Thaxter, pleaded guilty to a one-count misdemeanor information related to Indivior’s false and misleading representations to MassHealth. On Oct. 22, 2020, the court sentenced Thaxter to a six-month term of incarceration and $600,000 in criminal fines and forfeiture.
On Aug. 26, 2020, Indivior’s former medical director, Tim Baxter, pleaded guilty to a one-count misdemeanor information related to Indivior’s false and misleading representations to MassHealth. Baxter’s sentencing hearing is scheduled for Dec. 17, 2020, before Judge Jones in Abingdon, Virginia.
“When a drug manufacturer claims to be part of the solution to the national opioid epidemic, we expect it to make honest representations to government officials, physicians and patients, who have to make crucial treatment decisions,” said Acting U.S. Attorney Daniel P. Bubar of the Western District of Virginia. “Instead, Indivior made false statements about Suboxone’s safety to increase its sales. I’m proud of the close relationship we have with our federal and state partners that led to today’s important result.”
“Pharmaceutical companies that falsely promote their drugs, intended to treat opioid addiction, as superior to other alternatives only worsens the opioid crisis that has touched far too many lives in the U.S. Such actions potentially narrow access to treatment for those who need it,” said Judy McMeekin, Pharm.D., Associate Commissioner for Regulatory Affairs, U.S. Food and Drug Administration. “We will continue to investigate and bring to justice those who devise and participate in these schemes to the detriment of the public health.”
In its guilty plea, Indivior Solutions, which employed marketing and sales personnel for the Indivior group of companies, admitted that in October 2012 it sought to convince MassHealth to expand Medicaid coverage of Suboxone Film in Massachusetts and sent MassHealth a misleading chart and false data indicating that Suboxone Film had the lowest rate of accidental pediatric exposure (i.e., children taking medication by accident) of all buprenorphine drugs in Massachusetts, when in fact it did not. Indivior Solutions further admitted that sending the false and misleading information occurred in the context of marketing and promotional efforts directed at MassHealth, which were overseen by top executives. MassHealth announced it would provide access to Suboxone Film for patients with children under the age of six shortly after Indivior provided the false and misleading information to agency officials.
The criminal case against Indivior was prosecuted by Randy Ramseyer of the U.S. Attorney’s Office for the Western District of Virginia; Albert P. Mayer and Carol Wallack of the Department of Justice Civil Division’s Commercial Litigation Branch; Charles J. Biro and Matthew J. Lash of the Department of Justice Civil Division’s Consumer Protection Branch; Kristin L. Gray, Joseph S. Hall and Janine M. Myatt of the Virginia Medicaid Fraud Control Unit of the Office of the Attorney General; and Garth W. Huston of the Federal Trade Commission. This matter was investigated by the Virginia Attorney General’s Medicaid Fraud Control Unit; FDA’s Office of Criminal Investigation; the United States Postal Service Office of Inspector General; and the Department of Health and Human Services Office of Inspector General.
The joint effort advances the goals of the department’s Prescription Interdiction & Litigation (PIL) Task Force to deploy all available criminal, civil, and regulatory tools to hold opioid manufacturers accountable for unlawful practices and to ensure that prescription opioid products are marketed truthfully.
For more information about the U.S. Attorney’s Office for the Western District of Virginia, visit its website at https://www.justice.gov/usao-wdva. Additional information about the Consumer Protection Branch and the Civil Fraud Section and their enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch and http://www. justice.gov/civil/fraud-section. 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).
Huntingdon Man Sentenced to 5 Years in Federal Prison for Unlawfully Possessing FirearmsRead the Press Release
Jackson, TN – Jamieson Maurice Esquivel, 27, of Huntingdon, TN has been sentenced to 60 months in federal prison for being a felon in possession of a firearm. D. Michael Dunavant, U.S. Attorney, announced the sentence today.
According to information presented in court, on September 30, 2017, officers with the Huntingdon Police Department attempted to serve an arrest warrant on Esquivel’s father, James H. Brown, Jr., at a residence in Huntingdon, TN. The officers subsequently obtained a search warrant for that residence, and during the search they discovered two firearms -- a Smith & Wesson Model M&P 9C 9mm pistol and a Rohm Model RG10 .22 caliber revolver. Further investigation revealed that both guns belonged to Esquivel.
Esquivel has an extensive criminal history, including prior felony convictions for Robbery in Madison County in 2012, and Sale of a Schedule II controlled substance in Carroll County in 2012. Esquivel was still on probation in both cases at the time he committed the present offense on September 30, 2017. As a result of his prior felony convictions, he is prohibited by federal law from possessing firearms or ammunition.
On June 16, 2020, the defendant pled guilty to being a convicted felon in possession of a firearm.
On November 10, 2020, U.S. District Court Chief Judge S. Thomas Anderson sentenced Esquivel to 60 months in federal prison followed by three years of supervised release. Chief Judge Anderson also ordered that the federal sentence run consecutive to the state sentence that Esquivel is currently serving for violating his probation in his prior Carroll County felony drug case, which is not scheduled to expire until August 2026. There is no parole in the federal system.
U.S. Attorney D. Michael Dunavant said: "As a prior convicted felon, Esquivel has already disrespected the law and shown a manifest disregard for the rights of others. As a result, his possession of firearms continues to threaten the security of his fellow citizens. This sentence accomplishes what his prior state sentences and probation could not – just punishment and incapacitation that will protect public safety."
The Huntingdon Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) investigated this case.
Assistant U.S. Attorney Josh Morrow prosecuted this case on behalf of the government.
###
Hendersonville Emergency Medical Doctor Sentenced to Prison for Unlawfully Distributing Controlled SubstancesRead the Press Release
NASHVILLE, Tenn. – November 12, 2020 – A Hendersonville, Tennessee emergency medical doctor was sentenced today to two years in prison, followed by three years of supervised release, for his role in unlawfully distributing controlled substances.
U.S. Attorney Don Cochran of the Middle District of Tennessee, Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, and Special Agent in Charge J. Todd Scott of the Drug Enforcement Administration’s (DEA) Louisville Division made the announcement.
Lawrence J. Valdez, M.D., 51, was sentenced after pleading guilty in November 2019 to one count of unlawful distribution of controlled substances. U.S. District Judge Eli J. Richardson of the Middle District of Tennessee imposed the sentence.
Valdez admitted that in February 2017 he knowingly distributed oxymorphone, a Schedule II controlled substance, to a patient without a legitimate medical purpose and outside the usual course of professional practice. He further admitted to distributing Schedule II opioids to four different patients without a legitimate medical purpose and outside the course of professional practice on 16 other occasions between June 2016 and February 2017, and in exchange for sexual intercourse and other sexual acts with those patients.
The DEA, the District Attorney General’s Office for the 18th Judicial District and the 18th Judicial District Drug Task Force investigated the case. Assistant Chief Kilby Macfadden and Trial Attorney William M. Grady of the Criminal Division’s Fraud Section are prosecuting the case
The Fraud Section leads the Appalachian Regional Prescription Opioid (ARPO) Strike Force. Since its inception in October 2018, the ARPO Strike Force, which operates in 10 districts, has charged more than 70 defendants who are collectively responsible for distributing more than 50 million pills. Thus far there have been 32 guilty pleas as a result of ARPO Strike Force’s efforts. The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for approximately $19 billion. In addition, the Health and Human Services (HHS) Centers for Medicare & Medicaid Services, working in conjunction with the HHS-Office of Inspector General, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website for more information.
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.
# # # # #
Harrison County residents indicted on methamphetamine chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Two Harrison County residents are facing methamphetamine charges after a grand jury in Clarksburg indicted them on November 3, 2020, U.S. Attorney Bill Powell announced.
Larry Thomas Gregory, II, 43, and Angela Nicole Chapman, 33, both of Shinnston, West Virginia, are each charged with one count of “Conspiracy to Possess with the Intent to Distribute and Distribute 500 grams or more of Methamphetamine,” one count of “Possession with Intent to Distribute 500 grams or more of Methamphetamine ,” one count of “Possession with Intent to Distribute 50 grams or more of Methamphetamine,” and one count of “Maintaining a Drug-Involved Premises.”
The two are accused of working together to distribute more than 500 grams of methamphetamine from September 2019 to February 2020, sometimes from their residence on Morris Street in Shinnston, in Harrison County.
Gregory and Chapman each face at least 10 years and up to life incarceration and a fine of up to $10,000,000 for each of the 500 grams or more of methamphetamine charges. Gregory and Chapman face not less than five and up to 40 years of incarceration and a fine of up to $5,000,000 for the 50 grams of methamphetamine charge. They each also face up to 20 years of incarceration and a fine of up to $1,000,000 drug premises charge. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Brandon S. Flower is prosecuting the case on behalf of the government. The Greater Harrison Drug Task Force, a HIDTA-funded initiative; the U.S. Postal Inspection Service; and the Shinnston Police Department investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Grand jury indicts another individual for conspiracy to commit murder-for-hire and murder-for-hire schemeRead the Press Release
ST. LOUIS, MO – A federal grand jury returned a superseding indictment against James Timothy Norman, Terica Taneisha Ellis, Waiel Rebhi Yaghnam and Travell Anthony Hill. Norman, Ellis and Hill are charged with conspiracy to commit murder-for-hire and murder-for hire resulting in the death of Andre Montgomery. Norman and Yaghnam are charged with conspiracy to commit wire and mail fraud and Yaghnam is charged with five counts of aggravated identity theft all in connection with Montgomery’s murder-for-hire.
According to the indictment and other court documents, James Timothy Norman conspired with Terica Ellis, Travell Anthony Hill and others to use a facility of interstate commerce, namely, a cellular telephone, to commit a murder-for-hire in exchange for United States currency, in violation of Title 18, United States Code, Section 1958. In 2014, Norman obtained a total of $450,000 in life insurance proceeds on his 20-year-old nephew, Andre Montgomery, on which Norman was the sole beneficiary.
In the days leading up to Montgomery’s murder, Ellis, an exotic dancer residing in Memphis, Tennessee, communicated with Montgomery and informed him she was planning to be in St. Louis. On March 13, 2016, the day before Montgomery’s murder, Norman flew to St. Louis, Missouri from his home in Los Angeles, California. On March 14, 2016, Ellis and Norman communicated using temporary phones activated that day. Ellis also used the temporary phone to communicate with Montgomery and learn his physical location for the purpose of luring Montgomery outside. Immediately after learning Montgomery’s location, Ellis relayed the address to Norman and Hill. On March 14, 2016, at approximately 8:02 p.m., Montgomery was killed by gunfire at 3964 Natural Bridge Avenue in the City of St. Louis. Ellis’s phone location information places her in the vicinity of the murder at time of the homicide. Immediately following Montgomery’s murder, Ellis placed a call to Norman and then began travelling to Memphis, Tennessee. In the days after the murder, Ellis deposited over $9,000 in cash into various bank accounts. On March 16, 2016, Hill received a cash payment of $5,000 at the direction of Norman. That same day Hill engaged in recorded phone conversation with an individual in jail and discussed Montgomery’s murder and his payment. On March 18, 2016, Norman contacted the life insurance company in an attempt to collect on the life insurance policy he had obtained on his nephew.
The indictment alleges prior to Montgomery’s murder, Norman conspired with Yaghnam, his insurance agent, to fraudulently obtain a life insurance policy on Montgomery. Beginning in October of 2014, Norman and Yaghnam submitted five separate life insurance applications, all containing numerous false statements regarding Montgomery’s income, net worth, medical history, employment and family background. In the life insurance policy that ultimately issued, Norman obtained a $200,000 policy, as well as a $200,000 accidental death rider that would pay out in the event that Montgomery died of something other than natural causes, and a $50,000 10 year-term rider that would pay out if Montgomery died within 10 years of the policy’s issuance in 2014.
“This murder-for-hire cold case from 2016 demonstrates once again the power of law enforcement partnership and persistence,” said Special Agent in Charge Richard Quinn of the FBI St. Louis Division. “By combining resources and expertise, the FBI and St. Louis Metropolitan Police Department overcame numerous challenges to uncover the details of this plot.”
The arrests of Norman, Ellis and Hill are part of Operation LeGend which is a federal partnership with local law enforcement to address the increase in homicides and violent crime in St. Louis in 2020. The operation honors the memory of four-year-old LeGend Taliferro, one of the youngest fatalities during a record-breaking year of homicides and shootings. Additional federal agents were assigned to the operation from the Department of Homeland Security, FBI, Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the U.S. Marshals Service.
The St. Louis Metropolitan Police Department Homicide Section and Federal Bureau of Investigation are investigating these current charges.
If convicted of the conspiracy to commit murder-for-hire or murder-for-hire resulting in death, the penalty is life imprisonment or death and a fine of $250,000. Conspiracy to commit wire and mail fraud carries a maximum penalty of 20 years in prison and a fine of $250,000. Aggravated identity theft carries a minimum sentence of imprisonment of two years. In determining the actual sentence, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
As is always the case, the charge in an indictment is merely an accusation, and the defendants are presumed innocent unless and until proven guilty.
###