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Thursday 1 October 2020
Peabody Construction Company Owner Indicted for Failing to Pay More than $1 Million in Payroll TaxesRead the Press Release
BOSTON – The owner of a now-defunct Peabody construction company was arrested yesterday in connection with a scheme to defraud the IRS of approximately $1 million in payroll taxes and to defraud his workers’ compensation insurance carrier by failing to disclose how many workers he employed.
Argyrios “Eric” Mavros, 56, was indicted on 10 counts of failure to collect or pay over taxes and one count of mail fraud. Mavros was released on conditions following an initial appearance in federal court in Boston.
According to the charging documents, Mavros, who owned Mavros Construction, Inc., cashed more than $3.3 million in customer checks at a Peabody check cashing business and used some of those funds to pay his employees in cash. Mavros failed to report these employees or their wages in quarterly corporate tax filings, in an effort to avoid paying Social Security and Medicare taxes on employee wages and withholding federal income taxes. Overall, Mavros failed to pay and withhold federal taxes on more than $2.5 million in wages, resulting in a tax loss of just over $1 million. Additionally, Mavros failed to report these employees to his workers’ compensation insurance carrier, thereby defrauding his insurer of premiums.
The charge of failure to collect and pay over taxes provides for a sentence of up to five years in prison, three years of supervised release and a fine of $10,000. The charge of mail fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. 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 Joleen Simpson, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston made the announcement. Valuable assistance was provided by the Insurance Fraud Bureau of Massachusetts. Assistant U.S. Attorney Kristen A. Kearney of Lelling’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Operations Manager Indicted in Scheme to Sell Counterfeit Clothing to the U.S. MilitaryRead the Press Release
PROVIDENCE – An operations manager of a North Dakota-based company that sells clothing and others items to the U.S. military, U.S. government, police, and others, has been indicted by a federal grand jury in Providence, RI, for his alleged role in a conspiracy that sold more than twenty million dollars-worth of counterfeit goods to military and government purchasers.
It is alleged that Terry Roe, 48, of Burlington, ND, conspired with at least one other individual, Ramin Kohanbash, 50, of Brooklyn, NY, to obtain counterfeit clothing, apparel, and gear. Kohanbash in turn worked with Bernard Klein, 39, also of Brooklyn, to arrange for these goods to be manufactured in China and Pakistan and imported into the United States. The indictment alleges that Roe, and others working at his direction through his position as an operations manager for the North Dakota company, then arranged for these counterfeit goods to be sold and delivered to the U.S. military, and other government and law enforcement agencies, including to the Rhode Island National Guard in East Greenwich, RI, as part of an investigatory controlled purchase. As alleged, Roe and others working at his direction falsely represented to the U.S. military and its suppliers that the counterfeit goods were manufactured in the United States as required.
Klein, a New York businessman, and Kohanbash, a New Jersey wholesaler, have both been separately charged, and previously admitted in U.S. District Court in Providence that they conspired with each other, and others, to arrange the mass production of goods in China and Pakistan that carried counterfeit markings and labels identical to genuine trademarks registered with the U.S. Patent and Trademark Office. Klein and Kohanbash instructed the Chinese on how to label and package the goods in order to avoid problems when shipments were inspected by U.S. Customs.
Among the counterfeit items produced in China and Pakistan and shipped to Kohanbash in the United States for distribution were counterfeit United Join Forces® Multicam® APEC parkas, counterfeit FREE® hoods, counterfeit Polartec® fleece shirts, and Gen III Level 7 parkas bearing counterfeit Primaloft® and ADS® hangtags. Some of the counterfeit items sold as part of the conspiracy lacked the required safety measures. Specifically, the counterfeit FREE® hoods were not actually fire resistant as indicated by the labels and hangtags. Additionally, the counterfeit Multicam® APEC parkas lacked the required NIR technology which would make the service member wearing the jacket difficult to detect by an enemy using night vision goggles.
A federal grand jury on Wednesday returned an indictment charging Roe with conspiracy to commit wire fraud and traffic in counterfeit goods, mail fraud, and trafficking in counterfeit goods.
The indictment of Roe is announced by United States Attorney Aaron L. Weisman; Leigh-Alistair Barzey, Special Agent-in-Charge of Defense Criminal Investigative Service, Northeast Field Office; Special Agent in Charge Joseph P. Dattoria, General Services Administration Office of Inspector General, New England Regional Investigations Office; Resident Agent in Charge Michael D. Conner, Boston Fraud Resident Agency, US Army Criminal Investigation Command, – Major Procurement Fraud Unit; Jason T. Hein, Special Agent in Charge, Air Force Office of Special Investigations, Office of Procurement Fraud Detachment 6, Joint Base Andrews, MD; Homeland Security Investigations Newark, NJ, Special Agent in Charge Jason J. Molina; and Troy Miller, Director of Customs and Border Protection, New York Field Office.
Ramin Kohanbash pled guilty on June 12, 2019, in U.S. District Court in Providence to charges of conspiracy to commit wire fraud and trafficking in counterfeit goods. He is scheduled to be sentenced on January 22, 2021.
Bernard Klein pleaded guilty on August 25, 2020, in U.S. District Court in Providence to conspiracy to commit mail fraud. He is scheduled to be sentenced on December 4, 2020.
A federal indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The cases are being prosecuted by Assistant U.S. Attorneys Sandra R. Hebert, Zachary A. Cunha, and Lee H. Vilker.
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Operation Wasted Daze: 49 Charged in $18 Million Pill Mill SchemeRead the Press Release
Forty nine defendants, including two doctors and five pharmacists, have been charged with participating in an $18 million pill mill scheme, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Following an exhaustive investigation by the DEA’s Fort Worth Tactical Diversion Squad, 40 of the 49 defendants were arrested last week in “Operation Wasted Daze.” All 49 have been charged with conspiracy to possess with intent to distribute controlled substances. The final arrested defendant made her initial appearance in court this afternoon.
“By funneling addictive opioids onto our streets, these medical professionals violated both the Hippocratic oath and federal law – causing harm rather than healing, hurt rather than hope,” said U.S. Attorney Erin Nealy Cox. “This 49-defendant case represents a significant step in the fight against drug diversion in North Texas, and we appreciate DEA’s commitment to ensuring that all pill mill doctors and conspirators are investigated and shut down.”
“Medical professionals hold the public’s trust to provide what is in the best interests of their patients,” said DEA Dallas Field Division Special Agent in Charge Eduardo A. Chávez. “When this is eroded by supplying diverted prescription drugs to the streets in Fort Worth, DEA Dallas will ensure they are held accountable to the fullest extent of the law.”
According to the criminal complaint, unsealed today, Dr. Caesar Mark Capistrano, 61, and Dr. Tameka Lachelle Noel, 36, allegedly wrote prescriptions for hydrocodone, oxycodone, alprazolam, carisoprodol, zolpidem, phentermine, and promethazine with codeine, knowing the drugs would be diverted to the streets for illicit use.
Dr. Capistrano and Dr. Noel, assisted by 48-year-old clinic manager Shirley Ann Williams, allegedly used a network of recruiters to enlist “patients” from the community and local homeless shelters. Recruiters paid each “patient” a small fee, usually $50 to $200 cash, to obtain controlled substance prescriptions from Dr. Capistrano and Dr. Noel. The recruiters – who paid the clinic based in part on the amount of drugs prescribed – then filled the prescriptions at various complicit pharmacies and diverted the drugs for resale on the streets.
At the clinic, many of the “patients” were seen not by the doctors, but by Ms. Williams, who possessed neither a medical license nor a DEA registration. After a perfunctory conversation with the “patient,” Ms. Williams allegedly coordinated with Dr. Capistrano and Dr. Noel to prescribe dangerous drugs without legitimate medical purpose. In order to make the prescriptions appear legitimate, the doctors occasionally included prescriptions for non-controlled substances, such as antibiotics and mineral ice.
Over a nine-year span, Dr. Capistrano issued prescriptions for more than 524,000 doses of hydrocodone, 430,000 doses of carisoprodol, 77,000 doses of alprazolam, and 2.07 million doses of promethazine with codeine. Over seven years, Dr. Noel issued prescriptions for more than 200,000 doses of hydrocodone, 55,000 doses of carisoprodol, 14,000 doses of alprazolam, and 450,000 doses of promethazine with codeine. Often, the doctors prescribed multiple medications simultaneously and at the highest dosages available.
Medical professionals charged in the scheme include:
- Caesar Mark Capistrano, medical doctor
- Tameka Lachelle Noel, medical doctor
- Ngozika Tracey Njoku, nurse practitioner
Clinic staff charged in the scheme include:
- Shirley Ann Williams, clinic office manager
- Latonya Ann Tucker, office staff
Recruiters charged in the scheme include:
- Ritchie Dale Milligan, Jr
- Wayne Benard Kincade
- Katie Lorane Parker
- Cynthia Denise Cooks
Pharmacists charged in the scheme include:
- Wilkinson Oloyede Thomas, Calvary Pharmacy
- Christopher Kalejaiye Ajayi, Remcare Pharmacy
- Bartholomew Anny Akubukwe, Beco Pharmacy
- Nedal Helmi Naser, Brandy Pharmacy
- Ethel Oyekunle-Bubu, Ethel’s Pharmacy
A criminal complaint is merely an allegation of criminal conduct, not evidence. Defendants are presumed innocent unless and until proven guilty in a court of law.
If convicted, each defendant faces up to 20 years in federal prison.
The DEA Dallas Field Division’s Fort Worth Office conducted the investigation, with the assistance of Homeland Security Investigations, IRS – Criminal Investigation, the U.S. Marshals Service, the U.S. Postal Inspection Service, the Parker County Sheriff’s Office, and the Fort Worth Police Department. The DEA’s Fort Worth Tactical Diversion Squad is comprised of DEA agents and task force officers from the Arlington Police Department, the Ellis County Sheriff’s Office, the North Richland Hills Police Department, the Benbrook Police Department, the Granbury Police Department, the Tarrant County Sheriff’s Office, and the Parker County Sheriff’s Office. Assistant U.S. Attorney Laura Montes is prosecuting the case.
Operation Legend: Case of the DayRead the Press Release
Each weekday, the Department of Justice will highlight a case that has resulted from Operation Legend. Today’s case is out of the Northern District of Ohio. Operation Legend launched in Cleveland on July 29, 2020, in response to the city facing increased homicide and non-fatal shooting rates.
A federal grand jury in Cleveland has returned a four-count indictment against a man on charges of drug trafficking and illegally possessing a firearm.
"This defendant is accused of illegally possessing an AR-15 rifle and large quantities of deadly narcotics," said U.S. Attorney Justin Herdman. "Additionally, this defendant has a record of previous drug trafficking and felony offenses. This case is a prime example of what we are seeking to accomplish under Operation Legend. Using federal resources and law enforcement partnerships, we are targeting drug traffickers, repeat offenders, violent criminals and those who illegally possess a firearm with intentions of causing havoc in our communities."
Edward T. Harris, 40, of Cleveland, was charged with two counts of possession with intent to distribute a controlled substance and one count of felon in possession of a firearm.
According to court documents, law enforcement agents working as part of Operation Legend executed a search warrant at Harris’ residence. During the search, agents seized 294 grams of a heroin and fentanyl mixture, 2.59 grams of crack cocaine, an AR-15 rifle and a 9mm semi-automatic pistol.
Harris is prohibited from possessing a firearm due to previous felony convictions.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Background on Operation Legend
Since its inception, Operation Legend has yielded more than 3,500 local, state, and federal arrests, with more than 800 defendants charged with federal crimes.President Trump promised to assist America’s cities that have been plagued by violence. In July, Attorney General William P. Barr announced the launch of Operation Legend, a sustained, systematic and coordinated law enforcement initiative across all federal law enforcement agencies working in conjunction with state and local law enforcement officials to fight violent crime in cities across America that were experiencing an uptick in violence. Operation Legend is named after four-year-old LeGend Taliferro, who was shot and killed on June 29th in Kansas City, Missouri, while asleep in his home.
Operation Legend was launched in Kansas City, Mo., on July 8, 2020, and expanded to Chicago and Albuquerque on July 22, 2020; to Cleveland, Detroit, and Milwaukee on July 29, 2020; to St. Louis and Memphis on Aug. 6, 2020; and to Indianapolis on Aug. 14, 2020. As part of Operation Legend, Attorney General Barr has directed federal agents from the FBI, U.S. Marshals Service, DEA and ATF to surge resources to these cities to help state and local officials fighting violent crime. The Department of Homeland Security is also contributing agents to these efforts in St. Louis.
Ohio Woman Pleads Guilty and Sentenced for Conspiracy to Commit Wire FraudRead the Press Release
NEW ORLEANS – United States Attorney Peter G. Strasser announced today that on September 30, 2020 HEATHER TOLSON (“TOLSON”), age 27, of Lorain, OH, pleaded guilty to Conspiracy to Commit Wire Fraud in violation of Title 18, United States Code, Section 371 and was sentenced by United States District Judge Sarah S. Vance.
As admitted by TOLSON in the Factual Basis, in the beginning of February 2017, co-defendant Jose Fernandez Morel (“Fernandez”) devised a scheme to defraud by fraudulently representing himself as an immigration attorney. Specifically, Fernandez and other coconspirators acting at his direction, created the fictitious law firm of “Micheal (sic) Browns Immigration Attorneys” with an address of 4207 Parliament Drive, Alexandria, LA 71303. Fernandez enlisted the assistance of co-defendants Esteban Ramirez, III (“Ramirez”) and TOLSON to receive funds from various individuals who were victims of Fernandez’s scheme. Ramirez and TOLSON agreed to wire via Western Union the fraudulently obtained funds they received to Fernandez in the Dominican Republic. Part of their agreement was that Fernandez would split these funds with Ramirez and TOLSON.
During the scheme, Fernandez fraudulently represented himself as an attorney named “Robert McCane” and Fernandez, Ramirez, and TOLSON represented themselves as employees with the “Micheal Browns Immigration Attorneys” law firm. Fernandez, Ramirez, and TOLSON represented to Individual A’s family members that “McCane” was an attorney associated with the “Micheal Browns Immigration Attorneys” law firm located in Alexandria, LA which also had offices in New York and Ohio. Fernandez, Ramirez, and TOLSON utilized various email accounts to communicate with Individual A’s family members in an effort to promote the scheme. For example, Fernandez, Ramirez, and TOLSON created a “Legal Services Agreement” that was emailed to Individual A’s family members which referenced a $4,980.00 fee and a $980.00 initial deposit for “attorney’s fees and cost incurred by clients.” Fernandez, Ramirez, and TOLSON obtained money from Individual A’s family members under the guise of collecting a retainer to provide legal services for Individual A and under the pretense of posting a bond to secure the release of Individual A from immigration custody.
TOLSON opened a bank account at a Chase Bank branch in Lorain, OH in order to receive fraudulently obtained payments from Individual A’s family members. Fernandez, Ramirez, and TOLSON utilized various Chase Bank locations in Lorain, OH and Western Union agent branches to conduct cash transactions to withdraw payments from Individual A’s family members. Further, Ramirez and TOLSON utilized Western Union locations to wire fraudulently obtained payments to Fernandez in the Dominican Republic. Fernandez, Ramirez, and TOLSON falsely represented themselves as employees of the U.S. Department of Homeland Security.
U.S. District Judge Sarah S. Vance sentenced TOLSON to three years of probation with eight months home confinement, ordered her to pay restitution in the amount of $8,280.00, and pay a mandatory $100.00 special assessment fee.
U.S. Attorney Peter G. Strasser praised the work of Homeland Security Investigations. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Supervisor of the Financial Crimes Unit.
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Ohio Man Stopped in Kansas with $1 Million Pleads Guilty to Federal Drug ChargeRead the Press Release
TOPEKA, KAN. – An Ohio man who was stopped in Kansas with more than $1 million in his vehicle pleaded guilty today to a federal drug trafficking charge, U.S. Attorney Stephen McAllister said.
Joseph Michael Martin, 41, Euclid, Ohio, pleaded guilty to one count of interstate travel in furtherance of drug trafficking. On Sept. 20, 2018, the Kansas Highway Patrol stopped Martin on I-70 in Ellsworth County for speeding. When troopers searched the 2016 GM pickup truck Martin was driving, they found $1,124,840 in bundles wrapped in red plastic. The bundles were concealed in metal pipes with welded caps that were in the bed of the truck.
Sentencing is set for Jan. 12. He could face up to five years in federal prison and a fine up to $250,000. McAllister commended the Kansas Highway Patrol, the Drug Enforcement Administration and Assistant U.S. Attorney Greg Hough for their work on the case.
Ohio Man Pleads Guilty to Violation of Clean Diamond Trade ActRead the Press Release
Tampa, Florida – Stanley Tipton (45, Ohio) has pleaded guilty to an Information charging him with a violation of the Clean Diamond Trade Act. Tipton faces a maximum penalty of 10 years in federal prison. His sentencing date has not yet been set.
The Clean Diamond Trade Act prohibits the import into and export from the United States of rough diamonds not regulated by the Kimberley Process Certification Scheme (KPCS), an international certification scheme for the regulation of trade in rough diamonds. One of the purposes of the KPCS is to protect the legitimate trade in rough diamonds and to prevent trade in so-called “blood diamonds,” which are diamonds produced and sold to fund rebel movements and terrorism worldwide and especially in several countries in Africa. The United States is a participating country adhering to the KPCS.
Member countries participating in the KPCS are required to use a document referred to as the Kimberley Process Certificate (KPC) in the import and export of rough diamonds, a certificate with a specified format that identifies individual shipments of rough diamonds and certifies them as being in compliance with the KPCS. The KPC is required to record the country of origin of the diamonds, the carat weight and mass of the diamonds, their value in U.S. dollars, the name of the diamond exporter or importer, and the governmental authority issuing.
According to the plea agreement and other facts presented at the plea hearing, in 2019, Tipton engaged in a series of discussions with an undercover Homeland Security Investigations special agent (UCA) to supply KPCs to the UCA, who was then posing as a broker interested in securing documents, to help smuggle up to 100 carats of diamonds into the United States. Tipton told the UCA that he had contacts in Tanzania and Namibia and could arrange for the purchase of KPCs to “legitimize” the smuggled diamonds. When informed that the UCA’s “people” desired a certificate from a particular country, such as Tanzania or Sierra Leone, Tipton assured the UCA that he could make that happen but would require additional money to “grease” people on the ground in Africa. Ultimately, Tipton provided the UCA with what appeared to be two KPCs that represented that the subject diamonds had been handled in accordance with the provisions of the KPCS for rough diamonds. One KPC bore the purported seal of the Guinean Ministry of Mines and Geology, the other KPC was purported to be from the Sierra Leone Ministry of Mineral Resources. However, both KPCs were false and fraudulent documents provided by Tipton to the UCA to assist in the importation scheme, in violation of the Clean Diamond Trade Act.
“This investigation and prosecution sets an international precedent regarding the Clean Diamond Trade Act,” said HSI Tampa acting Special Agent in Charge Kevin Sibley. “This case is the result of significant teamwork between HSI special agents and the Department of State, U.S. Customs and Border Protection, the Tampa International Airport Police and the Middle District of Florida United States Attorney Office.”
This case was investigated by Homeland Security Investigations, with the assistance of the U.S. Department of State, and the Department of Homeland Security - Bureau of Customs and Border Protection. It is being prosecuted by Assistant United States Attorney Jay L. Hoffer.
North Carolina Man Sentenced to 17 Years for Engaging in an Internet-Based Child Pornography ConspiracyRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Jarret Lea, 27, of Charlotte, North Carolina, was sentenced to 17 years in prison and 15 years of supervised release by Senior United States District Court Judge Harvey Bartle, III, for engaging in a conspiracy to advertise child pornography online. Lea was also ordered to pay a total of $33,221.45 in restitution to various victims. In April 2019, Lea pleaded guilty to one count of conspiracy to advertise child pornography.
Using Discord, an online communications application that allows users to share files and communicate via chat messages, Lea and his co-conspirators connected in private chat rooms to share child pornography and discuss how to exploit children to produce more child pornography. Using what they had learned in the chatroom, some of these men then entered legitimate live streaming websites and “groomed” children they found there into producing child pornography by performing sexual acts while being video recorded.
Judge Bartle has already imposed sentences in the following other related cases:
- Andrew Dowdle, 48, of Oswego, New York, was sentenced to 16 years in prison, followed by 15 years of supervised release. He pleaded guilty in April 2019.
- Carl Masters, 45, of Lawrence, Kansas, was sentenced to 27 years in prison, followed by lifetime supervised release. He pleaded guilty in April 2019.
- Ric Crossfield, 25, of Jamaica, New York, was sentenced to 14 years in prison, followed by 40 years of supervised release. He pleaded guilty in April 2019.
- Christian Brennan, 46, of Puyallup, Washington, was sentenced to 20 years in prison, followed by 10 years of supervised release. He pleaded guilty in April 2019.
- Sharif El-Battouty, 39, of Woodside, New York, was sentenced to 30 years in prison, followed by lifetime supervised release. He was found guilty at trial in May 2019.
- Timothy Friel, 40 of Penndel, Pennsylvania, was sentenced to 12 years in prison, followed by 15 years of supervised release. He pleaded guilty in August 2019.
- David Minnichelli, 30 of Califon, New Jersey, was sentenced to 15 years in prison, followed by lifetime supervised release. He pleaded guilty in October 2019.
- Marqueal Bonds, 22, of Chicago, Illinois, was sentenced to 22 years in prison, followed by lifetime supervised release. He pleaded guilty in March 2019.
“Jarret Lea and his co-conspirators caused irreparable harm to over 170 identified child victims,” said U.S. Attorney William McSwain. “These men shrouded their true identities in the anonymity of the internet and presented themselves as their victims’ peers in order to gain these children’s trust and exploit them sexually. The lengthy sentences handed out for this despicable behavior will not restore the innocence lost, but they do send a strong message that my Office will find and prosecute child predators, no matter where they lurk.”
“In order to ensure themselves a steady supply of new child pornography, Jarett Lea and these other predators conspired to befriend, manipulate, and sexually exploit scores of minors online,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “The defendants thought they could hide behind fake names and handles and continue their violations with impunity. The FBI is proud to have fully unmasked them, shut them down, and brought them to justice.”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and 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 www.projectsafechildhood.gov.
The case was investigated by the Federal Bureau of Investigation. The case was prosecuted by Assistant U. S. Attorneys Kevin Jayne (EDPA) and Seth Schlessinger (EDVA), and Trial Attorneys Kaylynn Foulon and Lauren Britsch, of the U.S. Department of Justice’s Child Exploitation and Obscenity Section.
New Haven Teen Who Obstructed Justice is SentencedRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that DIAVION HUTCHINGS, also known as “Avi,” 19, of New Haven, was sentenced today by U.S. District Judge Janet C. Hall in New Haven to two years of probation for obstructing justice.
According to court documents and statements made in court, in February 2019, the New Haven Police Department conducted a video-recorded interview with an individual who had just been arrested. During the interview, the individual provided information that led to the state arrest of Hutchings’ significant other (“L.W.”). A copy of the interview video was provided to L.W.’s lawyer.
In April 2019, a federal grand jury returned an indictment against the individual whose interview was video recorded.
On April 24, 2019, Hutchings viewed the interview video at the office of L.W.’s lawyer, and recorded at least 15 separate portions of the interview using her iPhone. Hutchings transmitted portions of the recordings that she made of the interview video to others via text message and through the use of Facebook Live. In those transmissions, Hutchings communicated threats of harm toward the individual who provided information about L.W.
Hutchings was arrested on a federal criminal complaint on June 3, 2019. On June 29, 2020, she pleaded guilty to one count of obstruction of justice.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and was prosecuted by Assistant U.S. Attorneys Maria del Pilar Gonzalez and Sarah P. Karwan.
Muckleshoot Tribe one of 15 recipients nationwide of grants aimed at combatting Elder Fraud and AbuseRead the Press Release
Seattle — U.S. Attorney Brian T. Moran today announced a nearly $500,000 Department of Justice grant to combat elder abuse and financial fraud targeted at seniors in a Western Washington Tribal community. The grant, awarded by the Department’s Office of Justice Programs (OJP), is part of over $9 million in funding to support these efforts throughout the United States. Elder abuse is an intentional or negligent act by any person that causes harm or a serious risk of harm to an older adult. Attorney General William P. Barr announced the awards on the 30th anniversary of the International Day of Older Persons.
“Predators who target older citizens for fraud, financial scams and physical abuse are particularly despicable, turning the golden years of our nation’s seniors into a period of poverty and suffering,” said Attorney General William P. Barr. “The Department of Justice is taking aggressive action, pursuing all legal avenues to bring these criminals to justice and supporting law enforcement officials and service providers as they ferret out scam artists, arrest abusers, and bring aid and relief to victims.”
Under the direction of Attorney General Barr, the Department of Justice is attacking elder fraud and abuse from all sides. A National Elder Justice Coordinator oversees the Department’s work to combat elder fraud, and each of the 94 U.S. Attorneys’ Offices has a prosecutor dedicated to addressing elder justice issues. This past March, the Attorney General announced the results of the largest elder fraud sweep ever conducted, with prosecutors charging more than 400 defendants and the charged elder fraud schemes causing alleged losses of over a billion dollars. Also in March, he launched a national initiative to pursue nursing homes that provide grossly substandard care and a National Elder Fraud Hotline managed by OJP’s Office for Victims of Crime.
“I’m pleased that the Muckleshoot Tribe will have these additional federal resources to protect their Elders from fraud and abuse,” said U.S. Attorney Moran. “They join Alaska Native organizations, Universities, and non-profits across the country in developing programs to protect older adults.”
“With lockdowns in place across the country, older adults are especially vulnerable to fraud, neglect and abuse, and criminals have not hesitated to take full advantage,” said OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan. “These grants, which build on previous Department of Justice investments, will help to turn the tide of deception and predation and restore victims to fiscal security and physical safety.”
The Muckleshoot Indian Tribe received funding in the amount of $499,848.
More information about OJP and its components can be found at www.ojp.gov.
Monroe County Man Charged with Attempted Online Enticement and Sex Trafficking of A ChildRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on September 29, 2020, Robert Duus, age 34, of Monroe County, Pennsylvania, was indicted by a federal grand jury for attempted online enticement of a minor and attempted sex trafficking of a child.
According to United States Attorney, David J. Freed, the indictment alleges that Duus attempted to use a facility of interstate commerce to entice a minor to engage in sexual activity. Additionally, the indictment alleges that Duus attempted to cause a child to engage in a commercial sex act.
The charges stem from an investigation by the Federal Bureau of Investigation (FBI) – Philadelphia Division and its state and local law enforcement partners in Monroe County, Pennsylvania. Assistant United States Attorney Jeffery St. John is prosecuting the case.
The maximum penalties under federal law for these offenses is life imprisonment, a mandatory minimum period of imprisonment of 15 years, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Missouri Couple Sentenced to over 13 Years Combined in Federal Prison for Bank RobberyRead the Press Release
Fort Smith, AR – David Clay Fowlkes, First Assistant United States Attorney for the Western District of Arkansas, announced today that David Ray Powers, age 29, of Marshfield, Missouri, was sentenced on September 30,2020, to 120 months in federal prison followed by three years of supervised release on one count each of Bank Robbery and Being a felon in Possession of a Firearm and Lori Jo Stilley, age 42, of Marshfield, Missouri, was sentenced on September 17, 2020, to 41 months in federal prison followed by three years of supervised release on one count of Bank Robbery. The Honorable P.K. Holmes III presided over the sentencing hearing in the United States District Court in Fort Smith.
According to court records, on January 30, 2020, Powers and Stilley traveled from Missouri to Boone County, Arkansas, for the purpose of robbing a bank. Stilley assisted in the plan to rob a bank by searching on her cellular phone for locations of banks to rob. Powers and Stilley viewed banks in order to determine if they could readily escape after a robbery. On January 30, 2020, they entered the Arvest Bank in Lead Hill, Arkansas, and stood in line waiting for a teller. Once called upon, Powers placed a hand written note on the teller’s desk that stated that this was a bank robbery and demanded money. The teller complied with the Powers demands. The Teller retrieved money from a drawer totaling $1,387.00. The Teller placed the money into a tan canvass bank bag and gave the money to Powers. Powers took the bank bag, the hand written note, and left the bank through the front door. After receiving a vehicle description, an Arkansas State Police Trooper located a vehicle that matched the description and initiated a traffic stop. After an interview, both Powers and Stilley were arrested. The Boone County Sheriff’s Office obtained a search warrant for the vehicle and searched it. Inside the vehicle was a purse containing $1,387.00 in U.S. currency. A loaded handgun was also located under the vehicle's front seat.
Powers plead guilty to an information in June of 2020 and Stilley plead guilty to an information in May of 2020.
The investigation was conducted by the FBI, the Arkansas State Police and the Boone County Sheriff’s Department. Assistant United States Attorney Claude Hawkins prosecuted the case for the United States.
Mexican National Pleads Guilty to Federal Drug and Immigration OffensesRead the Press Release
CHARLESTON, W.Va. – A Mexican man pled guilty to drug and immigration offenses today, announced United States Attorney Mike Stuart. Joel Gonzalez-Gomez, 31, of Chiapas, Mexico, pled guilty to conspiracy to distribute 50 grams or more of methamphetamine and illegal reentry of a removed alien. As a result of his guilty plea, Gonzalez-Gomez is subject to removal proceedings.
“This meth dealer with several pounds of the drug and three firearms is also an illegal alien with 5 prior removals,” said United States Attorney Mike Stuart. “Gonzalez-Gomez is a dangerous poison peddler – certainly not the kind of immigrant we welcome into our country. We embrace those who come into our country and abide by our laws, but those who don’t will face the consequences.”
On two occasions in October 2019, Gonzalez-Gomez sold methamphetamine to an informant working for the Metropolitan Drug Enforcement Network Team (MDENT). On November 20, 2019, MDENT, along with agents from the Drug Enforcement Administration (DEA) and the Department of Homeland Security (HSI), executed a search warrant at the residence of Gonzalez-Gomez in Rand. They recovered several pounds of methamphetamine and three firearms. Gonzalez-Gomez was arrested the same day at a residence in Cottageville, Jackson County, West Virginia. Gonzalez-Gomez admitted his drug trafficking activities as well as to having been deported once in 2013, twice in 2015, and once in both 2016 and 2018.
Gonzalez-Gomez faces 5 to 50 years in prison when he is sentenced on January 4, 2021.
MDENT, DEA, HSI, and the United States Postal Inspection Service (USPIS) conducted the investigation. United States District Judge Joseph R. Goodwin presided over the hearing. Assistant United States Attorney Joshua C. Hanks is handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:20-cr-00157.
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Maryland Woman Pleads Guilty to Committing Health Care FraudRead the Press Release
WASHINGTON – Janet Olatimbo Akindipe, 62, of Laurel, Maryland, pleaded guilty today in federal court to defrauding the D.C. Medicaid program out of more than a quarter million dollars.
The announcement was made by Acting U.S. Attorney Michael R. Sherwin; Robert E. Bornstein, Acting Special Agent in Charge, FBI Washington Field Office, Criminal Division; Maureen R. Dixon, Special Agent in Charge of the U.S. Department of Health and Human Services’ Office of Inspector General for the region that includes Washington, D.C.; and Daniel W. Lucas, Inspector General for the District of Columbia.
Akindipe pleaded guilty to health care fraud in U.S. District Court for the District of Columbia. The charge carries a statutory maximum of 10 years in prison and potential financial penalties. Under federal sentencing guidelines, Akindipe faces a likely recommended sentence of between 18 and 24 months in prison and a fine of up to $75,000. The Honorable Colleen Kollar-Kotelly took the plea and scheduled sentencing for January 22, 2021.
Akindipe has worked as a full-time employee for the U.S. Department of Health and Human Services since March 2013. At various times between November 2014 and June 2020, she also was employed by six different home health agencies to serve as a personal care aide for D.C. Medicaid beneficiaries. The home health agencies employed Akindipe to assist Medicaid beneficiaries in performing activities of daily living, such as getting in and out of bed, bathing, dressing, and eating. Akindipe was supposed to document the care she provided to the Medicaid beneficiaries on timesheets and then submit the timesheets to the home health agencies, which would in turn bill Medicaid for the services that she rendered.
Between January 2015 and June 2020, Akindipe caused the D.C. Medicaid Program to issue payments totaling $269,808 for services that she did not render. As part of her fraud scheme, she submitted false timesheets to different home health agencies purporting that she provided personal care aide services that she did not provide. She claimed she provided such services during times when she actually was working her shift at the National Institutes of Health. She claimed to work more than twenty hours in a given day on more than 300 occasions. She also claimed to provide personal care aide services in the District of Columbia on days when she was not even in the United States, but traveling abroad instead. Akindipe acknowledged paying kickbacks to Medicaid beneficiaries to get them to sign timesheets saying she provided services that she did not actually render.
The FBI, the Department of Health and Human Services’ Office of Inspector General, the District of Columbia’s Office of the Inspector General’s Medicaid Fraud Control Unit, and the U.S. Attorney’s Office are committed to investigating and prosecuting individuals who defraud the D.C. Medicaid program. Since October 2019, five former personal care aides have been sentenced in U.S. District Court for defrauding D.C. Medicaid. In June 2020, four additional individuals, including Akindipe, were charged in criminal complaints with health care fraud and health care false statements.
The government counts on the public for tips and assistance in helping stop health care fraud. If you have information about individuals committing health care fraud, please call the Department of Health and Human Services’ Office of Inspector General hotline at (800) HHS‑TIPS [(800) 447-8477].
Assistant U.S. Attorney Kondi Kleinman of the Fraud Section is prosecuting the case.
Marshall County man admits to drug distributionRead the Press Release
WHEELING, WEST VIRGINIA – David A. Hood, of Moundsville, West Virginia, has admitted to drug charges, U.S. Attorney Bill Powell announced.
Hood, 38, pled guilty today to two counts of “Distribution of Cocaine Base, AKA “Crack” and one count of “Distribution of Methamphetamine.” Hood admitted to selling “crack” cocaine and methamphetamine in Marshall County in July and August 2019.
Hood faces up to 20 years of incarceration and a fine of up to $1,000,000 each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Robert H McWilliams, Jr. is prosecuting the case on behalf of the government. The Marshall County Drug and Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge James P. Mazzone presided.
Manchester Man Sentenced to 57 Months for Drug TraffickingRead the Press Release
CONCORD – Eddil Ortez, 27, of Manchester, was sentenced to 57 months in federal prison for attempted possession of fentanyl and cocaine with intent to distribute, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, beginning around December of 2017, a drug organization in Lawrence, Massachusetts maintained a series of telephone numbers to receive orders and distribute controlled substances, primarily fentanyl and crack cocaine. In early 2019, law enforcement officers began conducting judicially-authorized interception of communications occurring over a phone number used by the organization.
On June 19, 2019, law enforcement officers executed search warrants at locations known to be used by the organization, arrested the person believed to have been operating the phone, and seized the phone. To further identify and arrest those who were distributing drugs, the officers, pretending to be members of the drug organization, used the seized phone to communicate with individuals who were obtaining drugs from the organization.
During the evening of June 20, 2019, messages were exchanged between the seized phone and a phone belonging to Ortez. Ortez attempted to order quantities of crack cocaine and fentanyl from the organization. Ortez was directed to a parking lot in Nashua. After he provided the description of his car and his clothing, he was told to leave the drug money in the center console of the car. Investigating officers observed the car identified by Ortez arrive at the agreed-upon time for the deal. Ortez then left the car and walked toward a retail store. The officers sent a message to Ortez saying “you are all set.” Ortez returned to the car and was arrested. Ortez was in possession of the telephone that was used to arrange the drug deal.
Ortez previously pleaded guilty on June 25, 2020.
“As a consequence of his drug trafficking activities, Mr. Ortez will be spending a substantial amount of time in federal prison,” said U.S. Attorney Murray. “People who persist in distributing fentanyl and cocaine in New Hampshire should expect to suffer a similar fate. In order to deter this conduct, we will continue seek prison terms against those who are proven to be engaged in the distribution of dangerous illegal drugs.”
“Opioid abuse is at epidemic levels in New Hampshire,” said DEA Special Agent in Charge Brian D. Boyle. “Let this sentence serve as an example to those who distribute fentanyl and crack cocaine to the citizens of the Granite State that DEA will aggressively pursue and hold you accountable. This investigation demonstrates the strength of collaborative law enforcement efforts and our strong partnership with the U.S. Attorney’s Office.”
This matter was investigated by the Drug Enforcement Administration, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the Massachusetts State Police, Methuen Police Department, Andover, Massachusetts Police Department, Essex County Sheriff’s Office, New Hampshire State Police, Manchester Police Department, Nashua Police Department, Salem Police Department, Rockingham County Sheriff’s Office, Hudson Police Department, and the Goffstown Police Department. The case was prosecuted by Assistant U.S. Attorney Seth Aframe.
This case was supported by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
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Manchester Dentist, Dental Clinics and Dental Imaging Facility Pay $300K to Settle False Claims AllegationsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that ABBAS MOHAMMADI, DDS, and his businesses, COLUMBIA DENTAL, P.C. and COLUMBIA ORAL MAXILLOFACIAL IMAGING, L.L.C., have entered into a civil settlement agreement with the federal and state governments and paid $300,000 to resolve allegations that they violated the federal and state False Claims Acts.
Mohammadi, a dentist and oral surgeon, is the owner of Columbia Dental, P.C. (“CDPC”), which operates 15 dental clinics throughout Connecticut, and Columbia Oral Maxillofacial Imaging Imaging, L.L.C. (“COMILLC”), a dental imaging facility in Manchester. Mohammadi and both corporations are enrolled as providers in the Connecticut Medical Assistance Program (“CMAP”), which includes the state’s Medicaid program. It is alleged that, from January 2012 through February 2016, Mohammadi, CDPC and COMILLC billed Medicaid for dental restoration services that were not provided or were not medically necessary. It is also alleged that, from January 2014 through November 2015, Mohammadi, CDPC and COMILLC billed Medicaid for x-ray services that were not provided by individuals who had been certified by the Dental Assisting National Board to take x-rays.
To resolve the allegations under the federal and state False Claims Acts, Mohammadi, CDPC and COMILLC paid $300,000 in order to reimburse the Medicaid program.
A complaint against Mohammadi, CDPC and COMILLC was filed in the U.S. District Court in Connecticut (U.S. ex rel. Mahoney v. Columbia Dental, P.C.. et al., No. 3:15-CV-918) under the qui tam, or whistleblower, provisions of the both the federal and state False Claims Acts, which allow private parties to bring suit on behalf of the government. The whistleblower provisions of both the federal and state False Claims Acts provide that the whistleblower is entitled to receive a percentage of the proceeds of any judgment or settlement recovered by the government. The relator (whistleblower), Ms. Brittany Ames Mahoney, a former employee at CDPC, will receive a share of the proceeds of the settlement in the amount of $45,000. The Court issued judgment in favor of the U.S. and the State of Connecticut against Mohammadi, CDPC and COMILLC in the amount of $300,000 pursuant to the terms of the settlement agreement.
This investigation was conducted by the U.S. Department of Health and Human Services, Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Anne F. Thidemann, and by Assistant Attorney General Joshua L. Jackson of the Connecticut Office of the Attorney General.
This matter is announced in coordination with a Department of Justice nationwide enforcement action involving more than 300 defendants in criminal and civil cases across 51 federal districts. The defendants, including more than 100 doctors, nurses and other licensed medical professionals, are alleged to have submitted more than $6 billion in false and fraudulent claims to federal health care programs and private insurers.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS or the Health Care Fraud Task Force at (203) 777-6311.
Man Sentenced to Prison for Armed Robbery of Two PharmaciesRead the Press Release
RICHMOND, Va. – A Henrico County man was sentenced today to 26 years in prison for the armed robbery of two pharmacies in 2019.
According to court documents, Rashard Fraierson, 42, and co-defendant Robert Graham, 41, of Henrico County, robbed the Powhatan Drug Pharmacy, and the Bremo Pharmacy, in Henrico, in order to steal narcotics, including Oxycodone, Oxycontin, and other substances.
In the first robbery, in July 2019, Graham placed a false 911 call regarding a threat of an armed person at a local high school. As law enforcement was diverted, which was Graham’s and Fraierson’s intention, Graham and Fraierson entered Powhatan Drug Pharmacy, brandished a firearm, forcibly tied up the pharmacist using zip-ties, and robbed the pharmacy of various narcotics. Before they fled, the two men stole more than $33,000 worth of drugs. The second robbery occurred in November 2019, when they used the same techniques to rob the Bremo Pharmacy, and stole more than $20,000 worth of drugs.
Fraierson had been previously convicted for three felony drug trafficking crimes in 2002, 2003, and 2015, involving cocaine and heroin.
Graham also pleaded guilty in the case and will be sentenced on October 9.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and David W. Archey, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after sentencing by U.S. District Judge M. Hannah Lauck. Assistant U.S. Attorney Stephen E. Anthony prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:20-cr-29.
Man Apprehended on a Dinghy North of St. John Sentenced for Transporting an Illegal Alien from TortolaRead the Press Release
St. Thomas, USVI – United States Attorney Gretchen C.F. Shappert for the District of the Virgin Islands announced today that Ahmaud Rodriguez, 25, was sentenced on his conviction of transporting an illegal alien.
According to court documents filed in the case, on December 7, 2019, Rodriguez agreed to transport an illegal alien from Tortola, BVI to St. Thomas, USVI for a cash payment. Around 4:30 a.m. on December 8th, Rodriguez arrived in a small dinghy vessel at a ferry dock in Tortola, BVI where he met his illegal passenger. Rodriguez collected his fee and made his way with the passenger into U.S. waters. Meanwhile, Customs and Border Patrol (CBP) agents patrolling the waters north of St. John observed a vessel on their radar at approximately 4:40 a.m. The vessel was operating without navigation lights and accordingly, agents stopped and boarded the boat to conduct an inspection.
Upon boarding, agents observed Rodriguez and a female passenger. The passenger acknowledged that she had flown from the Dominican Republic to Tortola, BVI where she met Rodriguez and boarded his boat for the trip to St. Thomas.
District Court Judge Robert A. Molloy sentenced Rodriguez to six months of imprisonment, substituted by six months of home detention and four years of probation.
This case was investigated by the Department of Homeland Security and prosecuted by the United States Attorney’s Office of the Virgin Islands.
Louisiana United States Attorneys Announce $26,541,823 in Awards to Address Local Criminal Justice Needs and Victims Rights Issues in LouisianaRead the Press Release
United States Attorney Brandon J. Fremin, Middle District of Louisiana, United States Attorney Peter G. Strasser, Eastern District of Louisiana, and Acting United States Attorney Alexander C. Van Hook, Western District of Louisiana, jointly announce that the State of Louisiana received a total of $26,541,823 in six United States Department of Justice grants to respond to critical issues in local law enforcement and victims’ rights and services.
Three grants were awarded to the Louisiana Commission on Law Enforcement (LCLE). The first award in the amount of $23,490,366 provides funds from the federal Crime Victims Fund to enhance crime victim services in the state. The second award of $1,414,000 provides funds from the Crime Victims Fund to enhance State Victim Compensation payments to eligible crime victims. And third, $190,769 was awarded to the Louisiana Statistical Analysis Center (SAC), which is the research division of the LCLE. LSAC has been tasked with assessing how law enforcement in the State of Louisiana is meeting the challenge of the present opioid crisis.
In addition, the Louisiana Commission on Law Enforcement and Administration of Criminal Justice has been awarded $770,806. The purpose of this program is to support state and local delinquency prevention and intervention efforts and juvenile justice system improvements. Supported activities and efforts may include planning and administration and development of more effective education, training, research, prevention, diversion, treatment, and rehabilitation programs in the area of juvenile delinquency and programs to enhance the effectiveness of the juvenile justice system.
As a final matter, the East Baton Rouge Sheriff’s Office was awarded $177,123 to fund a broad range of activities to prevent and control crime based on the parish’s specific needs and conditions, and the Louisiana Department of Public Safety and Corrections was awarded $498,759 to continue implementing the Adult Reentry and Employment Strategic Planning Program.
U.S. Attorney Fremin stated, “The federal grant money distributed to our state and local partners exemplifies the Department of Justice’s commitment to provide resources to address critical issues in local law enforcement and to vigorously support victims’ rights and services. Awards, such as these, promote the continuing success of our joint federal, state and local law enforcement efforts to ensure the safety of our community and to support those citizens who have been victimized.”
U.S. Attorney Strasser stated, “The announcement of Louisiana’s awards highlights the commitment from the Department of Justice to afford law enforcement the opportunity to implement innovative programs needed to respond to critical issues in local law enforcement, victims’ rights and services and juvenile justice system services and improvements.”
Acting U.S. Attorney Van Hook stated, “Every defendant that is convicted of a federal crime is ordered to pay an assessment which goes to the Crime Victims’ Fund. Federal grants such as these that have been awarded to the Louisiana Commission on Law Enforcement are an example of how those funds are passed on to local agencies and of how justice is serving victims of crime in the State of Louisiana. We will continue to pursue justice for the people in the Western District of Louisiana and throughout the state.”
Lexington Couple and their Semiconductor Company Indicted on Charges of Theft of Trade Secrets from Norwood Semiconductor CompanyRead the Press Release
BOSTON – A naturalized U.S. citizen living in Lexington, his wife, and a company they established were charged today in a 24-count superseding indictment in connection with the theft of hundreds of files containing proprietary information from Analog Devices, Inc. (ADI), a worldwide semiconductor company headquartered in Norwood.
Haoyang Yu, a/k/a “Jack Yu,” a/k/a “Harry Yu,” a/k/a “Jack Tricon,” 41, of Lexington, and his company, Tricon MMIC LLC (Tricon), were charged with three counts of possession and attempted possession of a trade secret; two counts of smuggling; two counts of transporting stolen goods; one count of visa fraud; and one count of procuring U.S. citizenship unlawfully. Yu and his wife, Yanzhi Chen, 22, also of Lexington, were also charged with three counts of wire fraud and aiding and abetting wire fraud. Yu was previously charged by indictment in June 2019 with stealing, copying, downloading, and possessing ADI’s trade secrets.
According to the superseding indictment, Yu was born in Harbin, China, and first came to the United States in 2002 through the student visa program. He became a lawful permanent resident in June 2009, and a naturalized U.S. citizen in March 2017. From July 2014 to July 2017, Yu was employed by ADI as a principal design engineer.
As alleged in the indictment, Yu worked for ADI designing and developing parts of monolithic microwave integrated circuits (MMICs), which are used in radio, cellular and satellite communications, as well as in defense and aerospace applications. As a result of his work, Yu had access to data and information relating to ADI’s present and future product designs, schematics, manufacturing files and testing procedures. It is alleged that, while working for ADI, Yu downloaded hundreds of highly confidential schematic design and modeling files that belonged to ADI, and uploaded many of these files to his personal Google drive account. The files YU stole from ADI were worth millions of dollars.
In March 2017, approximately five months before he resigned from ADI, Yu and his wife established Tricon, which, according to its website, “specializes in wide band MMIC amplifiers,” and serves customers in “defense and aerospace, test and instrumentation, [and] satellite communications.”
On July 31, 2017, Yu allegedly resigned from ADI and signed an agreement affirming that he had surrendered all proprietary information or data. Nevertheless, in December 2018 and again in June 2019, Yu allegedly had propriety ADI files in his possession both in his Google drive account and on his personal computers. Since creating Tricon in March 2017, Yu marketed and sold approximately 20 ADI designs as his own, and even used the same Taiwanese semiconductor fabrication plant as ADI to manufacture Tricon’s MMIC parts. The superseding indictment alleges that the defendants fraudulently obtained MMIC and other semiconductor parts from the Taiwanese semiconductor fabrication plant by providing the plant with ADI’s stolen designs and other proprietary information, and furthermore concealed the fact that the designs were stolen from ADI.
Yu and Tricon also allegedly smuggled export-controlled technology from the United States to Taiwan without obtaining the necessary export license from the U.S. Department of Commerce.
Finally, the superseding indictment alleges that Yu committed visa fraud and procured U.S. citizenship unlawfully by failing to disclose material facts and information concerning the theft of ADI’s trade secrets in his Application for Naturalization (Form N-400), which he submitted to the U.S Department of Homeland Security in or about February 2017.
The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. All other charges each provide for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew Lelling; William Higgins, Special Agent in Charge of the Department of Commerce, Office of Export Enforcement, Boston Field Office; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigation, Boston Field Office; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Michael Wiest, Special Agent in Charge of the Naval Criminal Investigative Service, Northeast Field Office made the announcement today. U.S. Customs and Border Protection, Coast Guard Investigative Service, Defense Criminal Investigative Service, the Massachusetts State Police, the Lexington Police Department and the Hingham Police Department also provided assistance with the investigation. Assistant U.S. Attorneys Amanda Beck and Jason A. Casey of Lelling’s National Security Unit and B. Stephanie Siegmann, Chief of Lelling’s National Security Unit, are prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
UPDATE: In April 2022, Haoyang Yu, was acquitted by a federal jury of 18 counts of the charges alleged in the indictment. Criminal charges against the remaining defendant, Yanzhi Chen, were dismissed in June 2022.
Lehigh County Man Charged with Attempted Online Enticement and Sex Trafficking of A ChildRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on September 29, 2020, Philip Schmaldinst, age 44, of Lehigh County, Pennsylvania, was indicted by a federal grand jury for attempted online enticement of a minor and attempted sex trafficking of a child.
According to United States Attorney, David J. Freed, the indictment alleges that Schmaldinst attempted to use a facility of interstate commerce to entice a minor to engage in sexual activity. Additionally, the indictment alleges that Schmaldinst attempted to cause a child to engage in a commercial sex act.
The charges stem from an investigation by the Federal Bureau of Investigation (FBI) – Philadelphia Division and its state and local law enforcement partners in Monroe County, Pennsylvania. Assistant United States Attorney Jeffery St. John is prosecuting the case.
The maximum penalties under federal law for these offenses is life imprisonment, a mandatory minimum period of imprisonment of 15 years, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Kansas Man Indicted for Threatening Communications to Kentucky Attorney GeneralRead the Press Release
FRANKFORT, Ky. - Wesley Forrest Clay, 29, of Olathe, Kan., was indicted on Thursday in the Eastern District of Kentucky, for federal charges of sending threatening communications in interstate commerce.
The indictment follows a criminal complaint which was filed last week in the Eastern District of Kentucky. The criminal complaint alleged that, on September 23, 2020, Clay called the Kentucky Attorney General’s telephone line in Frankfort that was dedicated to the Breonna Taylor investigation. On the call he stated his name, telephone number, and then said among other things, “You will die if you do not give Breonna Taylor justice. That is a threat. Try me.”
“Sending threatening communications in interstate commerce, over the telephone or via the internet, is grave conduct and can lead to potential federal prosecution,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “Law enforcement simply must treat these matters very seriously.”
“Threatening harm to our elected officials is a far cry from protected-speech and subjects people to vigorous investigation and potential federal prosecution,” said Russell Coleman, United States Attorney for the Western District of Kentucky. “As we are constantly reminded there are no longer geographic lines between law enforcement agencies and districts as we work collaborate to mitigate the threat to Kentuckians.”
“Sending threatening communications not only takes an emotional toll on the victim, but it also unnecessarily drains law enforcement resources. Threats are not jokes. You will be charged and arrested with a federal crime,” said James Robert Brown, Jr., Special Agent in Charge, FBI, Louisville Field Office.” FBI Louisville will continue to work closely with our partners across the country to ensure elected officials can perform the duties of their office safely.”
The investigation preceding the charge was conducted by the Federal Bureau of Investigation, Louisville Field Office, with assistance from the Kansas City Field Office.
Clay’s next scheduled appearance is on October 8, 2020 at 11 a.m. in Lexington, Ky.. If convicted, Clay faces up to 5 years in prison. However, any sentence following conviction would be imposed by the court after consideration of the United States Sentencing Guidelines and the federal statute governing the imposition of sentences.
Any charge is an accusation only. A defendant is presumed innocent and is entitled to a fair trial at which government must prove guilt beyond a reasonable doubt.
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Justice Department Issues Favorable Business Review Letter to ISDA for Proposed Amendments to Address Interest Rate BenchmarksRead the Press Release
The Department of Justice’s Antitrust Division announced today that it has completed its review of the proposal by the International Swaps and Derivatives Association Inc. (ISDA) to amend its standardized model documentation for derivatives to account for the potential discontinuation of certain interbank offered rates (collectively referred to as “IBORs”). The department has concluded, based on the representations in ISDA’s letter request, including its description of certain safeguards, that ISDA’s proposed amendments to its standardized documentation are unlikely to harm competition. Therefore, the department does not presently intend to challenge ISDA’s proposed amendments to its standardized documentation for derivatives.
“ISDA’s process, including its cooperation with government regulators and its consultation-driven process for obtaining feedback from industry participants, has had the effect of clarifying the practical issues involved in planning for when LIBOR and other IBORs are no longer available and preparing for a smooth transition away from IBORs to other reference rates,” said Assistant Attorney General Makan Delrahim. “ISDA has put in place safeguards to avoid harm to competition, such as making the selection of the fallback rates voluntary, which allows contracting parties the flexibility to designate alternative competitive rates they may think are more appropriate.”
According to the department’s business review letter, ISDA’s model documents are widely used by financial institutions to engage in swaps, forwards, and other types of derivatives contracts such as interest rate and credit default swaps. These derivatives contracts incorporate various interbank offered rates (IBORS), including the London Inter-Bank Offered Rate (LIBOR). Derivatives allow financial institutions to hedge risks they incur when lending or borrowing money.
The department’s business review letter recognizes that ISDA’s proposed amendments to its standardized documents for derivatives contracts are part of a larger effort to use alternative reference rates in financial instruments in the place of IBORs. This is in part because investigations by U.S. and regulators from other jurisdictions uncovered explicit manipulation of the submissions from certain banks to administrators of LIBOR and other interest rate benchmarks. In addition, the United Kingdom’s Financial Conduct Authority, LIBOR’s regulator, has publicly stated that firms cannot rely on LIBOR being published after 2021. To account for this eventuality, ISDA worked with regulators and industry participants to propose amendments to ISDA’s standardized documentation to incorporate fallback rates and calculation methods so that market participants can, if they so choose, refer to different rates in future derivatives contracts and efficiently amend existing contracts to incorporate the different rates.
Under the department’s business review procedure, an organization may submit a proposed action to the Antitrust Division and receive a statement as to whether the department currently intends to challenge the action under the antitrust laws based on the information provided. The department’s conclusions in this business review apply only to ISDA’s Proposed Supplement and Proposed Protocol modifying its standardized documentation. This business review is not applicable to any other agreements, supplements, proposals, or initiatives relating to ISDA’s work. The department reserves the right to challenge the proposed action under the antitrust laws if the actual operation of the proposed conduct proves to be anticompetitive in purpose or effect.
Copies of the business review request and the department’s response are available on the Antitrust Division’s website at https://www.justice.gov/atr/business-review-letters-and-request-letters, as well as in a file maintained by the Antitrust Documents Group of the Antitrust Division. After a 30-day waiting period, any documents supporting the business review will be added to the file, unless a basis for their exclusion for reasons of confidentiality has been established under the business review procedure. Supporting documents in the file will be maintained for a period of one year, and copies will be available upon request to the FOIA/Privacy Act Unit, Antitrust Documents Group at [email protected].
Justice Department Awards over $9 Million to Combat Elder Fraud and AbuseRead the Press Release
The Department of Justice today awarded grants totaling $9.4 million to combat elder abuse and financial fraud targeted at seniors across the United States. Elder abuse is an intentional or negligent act by any person that causes harm or a serious risk of harm to an older adult. Attorney General William P. Barr announced the awards on the 30th anniversary of the International Day of Older Persons.
“Predators who target older citizens for fraud, financial scams and physical abuse are particularly despicable, turning the golden years of our nation’s seniors into a period of poverty and suffering,” said Attorney General William P. Barr. “The Department of Justice is taking aggressive action, pursuing all legal avenues to bring these criminals to justice and supporting law enforcement officials and service providers as they ferret out scam artists, arrest abusers, and bring aid and relief to victims.”
Approximately $7.9 million of the funds were awarded to jurisdiction and service providers in the United States under two of Office of Justice Programs' (OJP) Office for Victims of Crime (OVC) grant programs. OJP’s National Institute of Justice (NIJ) awarded the remaining $1.4 million for related research projects.
“With lockdowns in place across the country, older adults are especially vulnerable to fraud, neglect and abuse, and criminals have not hesitated to take full advantage,” said OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan. “These grants, which build on previous Department of Justice investments, will help to turn the tide of deception and predation and restore victims to fiscal security and physical safety.”
Under the direction of Attorney General Barr, the Department of Justice is attacking elder fraud and abuse from all sides. A National Elder Justice Coordinator oversees the department’s work to combat elder fraud, and each of the 94 U.S. Attorneys’ Offices has a prosecutor dedicated to addressing elder justice issues. This past March, the Attorney General announced the results of the largest elder fraud sweep ever conducted, with prosecutors charging more than 400 defendants and the charged elder fraud schemes causing alleged losses of over a billion dollars. Also in March, he launched a national initiative to pursue nursing homes that provide grossly substandard care and a National Elder Fraud Hotline managed by OVC.
FY 2020 grants awarded by OVC and NIJ further the department's mission and priorities by funding direct victim services and research projects that enhance the field's response to victims of elder abuse and financial exploitation. Specific programs being funded include the following:
- OVC’s Enhancing Services for Older Victims of Abuse and Financial Exploitation program awards nearly $6 million to 12 organizations to support communities in providing services to older victims of abuse and exploitation using trauma-informed approaches that protect the safety and confidentiality of victims.
- OVC’s Training for Law Enforcement to Improve Identification of and Response to Elder Fraud Victims program (previously announced) awarded over $1.9 million to provide training and technical assistance to enhance law enforcement's ability to identify elder fraud victims, connect those victims with available services, and bring the fraudsters to justice.
- NIJ’s Research on the Abuse, Neglect, and Exploitation of Elderly Individuals program awarded over $1.4 million to two recipients to fund research projects to, respectively, better differentiate physical abuse of elderly individuals from accidental injury and to improve the reporting of elder abuse.
For a complete list of individual grant programs, award amounts, and jurisdictions that will receive funding, visit: https://www.ojp.gov/sites/g/files/xyckuh241/files/media/document/elderabusefactsheet.pdf. More information about OJP and its components can be found at www.ojp.gov.
Jacksonville Man Sentenced to More Than 12 Years in Federal Prison for Selling CocaineRead the Press Release
Jacksonville, Florida – U.S. District Judge Brian J. Davis today sentenced Darryle Lavance Evans (47, Jacksonville) to 12 years and 7 months in federal prison for distributing cocaine. At the time Evans committed this offense, he was on federal supervised release resulting from a previous federal drug trafficking conviction. At today’s hearing, Judge Davis also revoked Evans’s federal supervised release, and sentenced him to 5 years in federal prison, to run concurrent with the other sentence.
Evans had pleaded guilty on July 16, 2019.
According to court documents, in 2010, Evans was sentenced to 10 years in federal prison for distributing cocaine base, followed by a five-year term of supervised release. Evans was released from federal prison in April 2018, and, on November 8, 2018, he sold cocaine to a confidential informant working for the FBI. The informant and the person Evans identified as his supplier for the cocaine were also both on federal supervised release for drug offenses. Because of Evans’s extensive criminal history, he was designated as a Career Offender at sentencing.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Laura Cofer Taylor.
Indictment Charges 8 Hartford County Residents for Roles in Northeast Burglary SpreeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, and David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that, on September 15, 2020, a federal grand jury in Hartford returned a six-count indictment charging the following individuals with offenses related to their involvement in an extensive commercial burglary spree:
PAIGE JAMES, also known as “Ishaya James,” 27, of Hartford
JAHLIIL PARROTT, also known as “Stretch,” 23, of Windsor
ANDRES BARCLETT, also known as “Coolie,” 26, of Hartford
AYSIA RYAN, 21, of Windsor
WILLIAM TISDOL, 20, of Hartford
JORDAN BRAITHWAITE, 23, of New Britain
JEZENIA MILLER, 21, of Hartford
TASHANIQUE BLIZZARD, 25, of HartfordThe indictment stems from “Operation American Steal,” a long-term multi-agency investigation into numerous “grab and go” thefts from various retail fashion stores in Connecticut and nearby states. A “grab-and-go” scheme is a type of theft where one or more perpetrators enter a retail store, grab as many items of clothing or other goods as they can carry, leave the store without paying for the merchandise, and depart in a waiting getaway vehicle.
The indictment alleges that the eight defendants were part of a network of individuals who burglarized Polo Ralph Lauren, T.J. Maxx, Balenciaga, Burberry, Macy’s, Marshalls, Dick’s Sporting Goods, Tommy Hilfiger and other stores in Connecticut, Massachusetts, New Hampshire, Vermont, and New York. They then transported the stolen merchandise to Connecticut and sold the items on the internet or the street.
The indictment charges each of the defendants with one count of conspiracy to transport and possess stolen property, an offense that carries a maximum term of imprisonment of five years. In addition, James, Parrott, Barclett, Braithwaite and Blizzard are each charged with one or more counts of interstate transportation of stolen property, an offense that carries a maximum term of imprisonment of 10 years on each count.
Blizzard, Braithwaite, Miller and Tisdol have been arrested, and James, Parrott, Barclett, and Ryan are being sought by law enforcement.
Citizens with knowledge of the whereabouts of James, Parrott, Barclett and Ryan, or with information that may be helpful the investigation of this matter, are encouraged to call the FBI at 203-996-4132 or 860-993-5499.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation and the Hartford, New Canaan, Wrentham (Mass.), Auburn (Mass.) and Nassau County (N.Y.) Police Departments. The case is being prosecuted by Assistant U.S. Attorneys Margaret Donovan and Brendan Keefe.
Illegal Immigrant Formerly Living in Abbeville Sentenced for Distributing Heroin and CocaineRead the Press Release
LAFAYETTE, La. – Acting United States Attorney Alexander C. Van Hook announced that Jesus Silverio Cervantes, 36, an illegal immigrant from Mexico who formerly lived in Abbeville, Louisiana, has been sentenced. United States District Judge Dee Drell sentenced Cervantes to 120 months (10 years) in prison followed by 5 years of supervised release for possession of heroin with intent to distribute.
Jesus Silverio Cervantes was indicted on May 12, 2011 and charged with conspiracy to possess with intent to distribute cocaine and heroin. According to documents introduced in court, Cervantes and other co-conspirators operated a cocaine and heroin drug trafficking organization from a residence in Abbeville, Louisiana from on or about January 1, 2008 until March 1, 2011. Cervantes and other co-conspirators and members of the drug trafficking organization received not less than five kilograms of cocaine and not less than one kilogram of heroin at this residence for distribution in the Western District of Louisiana and elsewhere, including the greater Baton Rouge, Louisiana area. Before Cervantes was arraigned on these charges he disappeared and remained a fugitive until August 16, 2018, when he was arrested by law enforcement officers in Tacoma, Washington. Cervantes pled guilty to the charge on January 27, 2020.
In addition, as a result of being convicted on the charges above, Cervantes was in violation of his probation from a previous conviction in the Western District of Louisiana for being an illegal alien in possession of a firearm (2007). For this violation, Cervantes was sentenced to an additional 6 months in prison. This sentence will run consecutive to the sentence imposed for possession of heroin with intent to distribute.
The DEA and Department of Homeland Security - Bureau of Immigration and Customs Enforcement investigated the case. Assistant U.S. Attorney J. Luke Walker prosecuted the case.
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Hudson County Man Sentenced to One Year in Prison for Role in Car Accident/Insurance Fraud SchemeRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, man was sentenced today to 12 months and one day in prison for his role in an automobile accident scheme in which health care practitioners fabricated or exaggerated accident victims’ injuries to support fraudulent insurance claims to Personal Injury Protection (PIP) insurance plans for medically unnecessary services, U.S. Attorney Craig Carpenito announced.
Luis G. Aguirre, 57, previously pleaded guilty before U.S. District Judge Stanley R. Chesler in Newark federal court to an information charging him with one count of conspiracy to commit health care fraud. Judge Chesler imposed the sentence today by videoconference.
According to documents filed in the case and statements made in court:
Aguirre helped to orchestrate an automobile accident scheme in Bergen County, New Jersey, by acting as a “runner” who identified and recruited accident victims to the scheme. Aguirre subsequently introduced the victims to various chiropractors, medical imaging centers, and others, who billed PIP insurance plans for medically unnecessary services.
Aguirre and an employee from an auto body shop in West New York, New Jersey, (Individual-1) identified and recruited individuals who had been in car accidents, finding them through word of mouth in the community and through relationships with health care providers in northern New Jersey. Aguirre paid Individual-1 for each accident victim that Individual-1 helped identify and recruit to the scheme. Individual-1, in turn, paid accident victims for participating in the scheme. Aguirre also ensured that the victims had filed police reports to support subsequent insurance claims.
Aguirre then directed the accident victims to visit specific health care providers to obtain medically unnecessary medical exams and services, such as X-rays and MRIs, for fake or exaggerated injuries that they supposedly suffered during the automobile accidents.
Aguirre was paid approximately $500 in cash by the health care providers for each individual accident victim that he delivered. Aguirre thereby caused health care providers to submit insurance claims to PIP insurance plans on behalf of the accident victims.
For example, on Sept. 25, 2018, an individual from North Bergen, New Jersey, (Individual-3) was involved in an automobile accident in Elizabeth, New Jersey. Based on a police report of the incident, the accident was minor: Individual-3 was rear-ended by another car when both were stopped at a red light. According to the police report, Individual-3 refused medical treatment at the scene, stating that Individual-3 would seek separate medical attention. At the time of the accident, Individual-3 had an automobile insurance policy through Auto Insurer-1, which included PIP coverage.
Aguirre learned from Individual-1 that Individual-3 was willing to participate in the scheme in exchange for cash payment. On Oct. 12, 2018, Aguirre directed Individual-3 to visit the proprietor (Individual-2) of an MRI Center in Rochelle Park, New Jersey, where Individual-3 underwent a series of medically unnecessary X-rays. On Oct. 16, 2018, the MRI Center billed Individual-3’s PIP insurance policy.
Aguirre’s participation in the conspiracy caused an estimated loss to PIP insurance plans of over $250,000, while the total loss caused by the conspiracy exceeded $3.5 million.
In addition to the prison term, Judge Chesler sentenced Aguirre to three years of supervised release and ordered him to pay restitution of $53, 710.
U.S. Attorney Carpenito credited special agents of the Department of Labor – Office of Inspector General, under the direction of Special Agent in Charge Michael C. Mikulka; and special agents of the FBI, under the direction Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the Health Care Fraud Unit at the U.S. Attorney’s Office in Newark.
Hattiesburg Man Pleads Guilty under Project EJECT to Violent Robbery of BusinessRead the Press Release
Hattiesburg, Miss. – Kedrick Lee, 23, of Hattiesburg, pled guilty today before Senior U.S. District Judge Keith Starrett to violently robbing a business in Hattiesburg, announced U.S. Attorney Mike Hurst and Special Agent in Charge Kurt Thielhorn with the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On March 31, 2019, Lee and a criminal associate, D’Andre Garry, robbed a Family Dollar store located in Hattiesburg, Mississippi. As Lee held the cashier at gunpoint, his co-defendant emptied the cash register. The robbery was captured by store surveillance and Garry was quickly apprehended by Hattiesburg Police Department officers.
Lee will be sentenced by Judge Starrett on January 12, 2021, at 9:45 a.m. He faces a maximum penalty of 20 years in prison and a $250,000 fine. Co-defendant Garry pled guilty on January 9, 2020, and was sentenced on August 18, 2020, to 50 months in federal prison followed by 3 years of supervised release
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and Hattiesburg Police Department investigated the case. The case is being prosecuted by Assistant United States Attorney Andrew W. Eichner.
Greece Man Sentenced for Threatening to Kill Senator Charles Schumer and Congressman Adam SchiffRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Salvatore Lippa II, 57, of Greece, NY, who was convicted of two counts of threatening a United States official, was sentenced to serve six months in prison by Chief U.S. District Judge Frank P. Geraci, Jr.
According to Assistant U.S. Attorney Sean C. Eldridge, who handled the case, on January 23, 2020, the defendant called the Washington D.C. office of Congressman Adam Schiff at approximately 8:20 p.m. and left a threatening voicemail message. Lippa threatened to assault and murder Congressman Schiff. Part of the message stated, “I dare you to come to New York, because I will put a bullet in your (expletive) forehead.” The defendant admitted that he made the threatening call because he was upset about impeachment proceedings against President Trump.
On February 4, 2020, Lippa made a similar call to the Albany, New York office of Senator Charles Schumer. The defendant once again left a voicemail message threatening to assault and murder Senator Schumer. The defendant stated: “let me tell you something, somebody wants to assassinate you, I'm going to be the driver.” Lippa admitted that at the time of that call, the Senate was set to vote on the Articles of Impeachment against President Donald Trump brought by the House of Representatives on the next day, February 5, 2020.
The sentencing is the result of an investigation by the United States Capitol Police, under the direction of Chief Steven A. Sund, with assistance from the Greece Police Department, under the direction of Chief Patrick D. Phelan, and the United States Marshals Service, under the direction of Marshal Charles Salina.
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Franklin County Man Charged with Child Exploitation OffensesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on September 30, 2020, Damion Phillip Gress, age 24, of Franklin County, was indicted by a federal grand jury for offenses involving the exploitation of minors.
According to United States Attorney David J. Freed, the indictment alleges that Gress persuaded and used a minor to produce images of child pornography between August 2015 and October 2016 with respect to two separate victims. Gress is also alleged to have received images of child pornography during that time period and to have possessed images of child pornography on August 12, 2019. The four-count indictment also includes a notice of the Government’s intent to forfeit all images of child pornography and the electronic devices associated with those images.
This case was investigated by the Federal Bureau of Investigations and the Pennsylvania State Police. Assistant United States Attorney James T. Clancy is prosecuting the case.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines. The maximum penalty for use of a minor to produce child pornography is 30 years’ imprisonment and a $250,000 fine. That charge carries a mandatory minimum term of imprisonment of 15 years and a term of supervised release after imprisonment. Receipt of child pornography carries a maximum term of imprisonment of 20 years, a five-year mandatory minimum prison sentence, a $250,000 fine and a period of supervised release after imprisonment. Possession of child pornography carries a maximum 10-year prison term, a $250,000 fine and a period of supervised release after imprisonment. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
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Frankfort Woman Sentenced to 60 Months for Money Laundering and Filing False Tax ReturnRead the Press Release
FRANKFORT, KY- A Frankfort woman, Lesley Wade, age, was sentenced in federal court on Friday to 60 months in prison, by U.S. District Judge Gregory Van Tatenhove, for money laundering and filing a materially false tax return.
Wade was a long time employee of the Franklin County Board of Education (FCBOE), most recently serving as the FCBOE’s Financial Director. In Wade’s guilty plea agreement, she admitted that, starting in February 2011 and continuing through about June 25, 2019, she wrote unauthorized checks of FCBOE money to herself, then falsified the necessary FCBOE records and invoices to cover up her crimes.
Wade also served as Treasurer of Leestown Gospel Church in Frankfort, where she essentially had plenary control over its financial management, with little oversight or internal controls. Wade also admitted to periodically using her control over the Church’s finances to launder money she had stolen from the FCBOE, using the Church’s account before writing checks to herself, attempting to avoid detection and making the checks appear legitimate.
Her theft of funds, which took place over a term of years, resulted in the FCBOE losing a total of $1,624,593. Further hiding her theft of funds, Wade also admitted that she willfully filed false individual income tax returns, for the years 2011-2018, by intentionally failing to report the income from her fraudulent scheme. The total amount of tax loss is $315,677.
Wade pleaded guilty in May 2020.
“The defendant’s conduct is truly outrageous - she harmed the citizens of Franklin County and abused her position of trust by stealing money from Board of Education and then used her church’s bank account to launder some of the stolen money,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “We remain committed to working with our federal, state, and local partners to investigate and prosecute embezzlement, including cases involving public employees, and violations of the tax laws.”
"Placed in a position of trust, the defendant methodically stole money from the public and then attempted to cover it up by laundering money through her church,” said Robert James Brown, Jr., Special Agent in Charge, FBI, Louisville Field Office. “The FBI will not stand for officials who steal from the taxpayers they serve and, along with our partners, will continue the significant work of rooting out corruption and fraud.”
“Income derived from any source, including embezzled funds, is subject to income tax,” stated Bryant Jackson, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “IRS Criminal Investigation is committed to holding accountable individuals who steal and fail to comply with the tax laws.”
Under federal law, Wade must serve 85 percent of her prison sentence. Upon her release, he will be under the supervision of the U.S. Probation Office for three years.
U.S. Attorney Duncan; SAC Brown, and SAC Jackson; jointly announced the sentencing.
The investigation was conducted by the FBI and IRS. The United States was represented by Special Assistant U.S. Attorney James Chapman.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Four Sacramento Residents Indicted for Conspiracy to Sell Meth and Heroin in Sacramento and Solano CountiesRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a 10-count indictment today against Michael Garcia, 32; Nancy Garcia, 31; Gonzalo Garcia, 55; and Tylor Combs, 40, all of Sacramento, charging them with narcotics and firearms offenses, U.S. Attorney McGregor W. Scott announced.
According to court documents, while serving a sentence for narcotics offenses at the Tulare County Jail, Michael Garcia conspired with his wife Nancy Garcia and his father Gonzalo Garcia to sell methamphetamine and heroin in Sacramento and Solano counties.
Once out of custody, Michael Garcia continued the conspiracy to sell narcotics. In addition, Michael Garcia set up a deal with Combs to sell firearms to another person. Both men were present at this deal, which involved ten firearms, including an unserialized machine gun. As a previously convicted felons, both Michael Garcia and Combs are prohibited from possessing a firearm. Combs is charged with two counts of being a felon in possession of a firearm and one count of possession with intent to sell heroin and methamphetamine.
This case is the product of an investigation by the FBI’s Solano County Violent Crimes Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the U.S. Attorney’s Office for the District of Arizona. Assistant U.S. Attorney Adrian T. Kinsella is prosecuting the case.
If convicted of the narcotics offenses, each defendant faces a maximum statutory penalty of life in prison and a $10 million fine. If convicted of the firearms offenses, Michael Garcia and Tylor Combs each face a maximum statutory penalty of 10 years in prison and a $250,000 fine. 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 defendants are 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.
Founders and Executives of Off-Shore Cryptocurrency Derivatives Exchange Charged with Violation of the Bank Secrecy ActRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the indictment of Arthur Hayes, Benjamin Delo, Samuel Reed, and Gregory Dwyer, charging the four with violating the Bank Secrecy Act and conspiring to violate the Bank Secrecy Act, by willfully failing to establish, implement, and maintain an adequate anti-money laundering (“AML”) program at the Bitcoin Mercantile Exchange or “BitMEX.” The case is assigned to United States District Judge John G. Koeltl. REED was arrested in Massachusetts this morning, and will be presented in federal court there. HAYES, DELO, and DWYER remain at large.
Acting Manhattan U.S. Attorney Audrey Strauss said: “With the opportunities and advantages of operating a financial institution in the United States comes the obligation for those businesses to do their part to help in driving out crime and corruption. As alleged, these defendants flouted that obligation and undertook to operate a purportedly ‘off-shore’ crypto exchange while willfully failing to implement and maintain even basic anti-money laundering policies. In so doing, they allegedly allowed BitMEX to operate as a platform in the shadows of the financial markets. Today’s indictment is another push by this Office and our partners at the FBI to bring platforms for money laundering into the light.”
FBI Assistant Director William F. Sweeney Jr. said: “As we allege here today, the four defendants, through their company’s BitMEX crypto-currency trading platform, willfully violated the Bank Secrecy Act by evading U.S. anti-money laundering requirements. One defendant went as far as to brag the company incorporated in a jurisdiction outside the U.S. because bribing regulators in that jurisdiction cost just ‘a coconut.’ Thanks to the diligent work of our agents, analysts, and partners with the CFTC, they will soon learn the price of their alleged crimes will not be paid with tropical fruit, but rather could result in fines, restitution, and federal prison time."
According to the allegations in the Indictment[1]:
HAYES, DELO, and REED founded BitMEX in or about 2014, and DWYER became BitMEX’s first employee in 2015 and later its head of business development. BitMEX, which has long serviced and solicited business from U.S. traders, was required to register with the Commodity Futures Trading Commission (“CFTC”) and to establish and maintain an adequate AML program. AML programs ensure that financial institutions, such as BitMEX, are not used for illicit purposes, including money laundering.
Despite those obligations, HAYES, DELO, REED, and DWYER knew by no later than in or about September 2015 that, because BitMEX served U.S. customers, it was required to implement an AML program that included a “know your customer” or “KYC” component, but chose to flout those requirements. Indeed, each of the defendants knew of customers residing in the United States who continued to access BitMEX’s trading platform through at least in or about 2018, and that BitMEX policies nominally in place to prevent such trading were toothless or easily overridden to serve BitMEX’s bottom line goal of obtaining revenue through the U.S. market without regard to U.S. regulation. While knowing of BitMEX’s obligation to implement AML and KYC programs because BitMEX was serving U.S. customers, HAYES, DELO, REED, and DWYER took affirmative steps purportedly designed to exempt BitMEX from the application of U.S. laws such as AML and KYC requirements. For example, the defendants caused BitMEX and its parent corporations formally to incorporate in the Seychelles, a jurisdiction they believed had less stringent regulation and from which they could still serve U.S. customers without performing AML and KYC. Indeed, in or about July 2019, HAYES bragged that the Seychelles was a more friendly jurisdiction for BitMEX because it cost less to bribe Seychellois authorities – just “a coconut” – than it would cost to bribe regulators in the United States and elsewhere.
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HAYES, 34, of Buffalo, New York and Hong Kong, DELO, 36, of the United Kingdom and Hong Kong, REED, 31, of Massachusetts, and DWYER, 37, of Australia and Bermuda, are each charged with one count of violating the Bank Secrecy Act, and one count of conspiring to violate the Bank Secrecy Act, each of which carries a maximum penalty of five years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Ms. Strauss praised the outstanding investigative work of the FBI’s New York Money Laundering Investigation Squad, and the assistance of the FBI’s Boston, Milwaukee, and Minneapolis Field Offices. Ms. Strauss also thanked the attorneys and investigators at the CFTC for offering their expertise in the development of this investigation.
The prosecution is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant U.S. Attorneys Jessica Greenwood and Samuel Raymond are in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Fort Bragg Marriage Fraud Arranger and Ring of 10 Participants Charged with Marriage Fraud, Visa Fraud, Obstruction, Harboring Aliens, Unlawful Disposition of U.S. Property, and ConspiracyRead the Press Release
United States Attorney Robert J. Higdon, Jr. announced the unsealing of a Second Superseding Indictment charging the following: Ebenezer Yeboah Asane (“Asane”) 37, of Fayetteville, North Carolina; James Earnest Ekow Arthur, 32, of El Paso, Texas; Ernest Atta Gyasi, 43, of Bronx, New York; Samuel Manu Agyapong (“Agyapong”), 33, of Fayetteville, North Carolina; Barbara Oppong, 41, of Bronx, New York; William Steven Ballard, 23, of Fayetteville, North Carolina; Solace Kwakye, 30, of Bronx, New York; Yemisi Mary Opaso, 27, of Hanover, Maryland; Christopher Matthew Urquia, 23, of Fort Bragg, North Carolina; Kevyn Jakob Ward, 22, of Fayetteville, North Carolina; and Effua Agyare-Darko, 43, of Ardsley, New York. The charge includes 29 counts, consisting of Marriage Fraud, Transporting and Harboring Aliens, Visa Fraud, Obstruction, Unlawful Disposition of U.S. Property, False Statements in Immigration matters, and Conspiracy to Marriage Fraud.
The indictment charges that Asane, a former soldier, operating from Fort Bragg and his home in Fayetteville, planned and organized the sham marriages of foreign nationals to U.S. Army soldiers based at Fort Bragg. The purpose of the conspiracy was for the foreign-born nationals to evade U.S. immigration laws and obtain lawful permanent residence status and for the soldiers to receive Basic Allowance for Housing (BAH) to live off post, as opposed to the barracks.
The indictment further charges that various defendants conspired with Asane to recruit other soldiers into the fraudulent scheme, to orchestrate photographs to give the appearance the marriages were legitimate, and to submit false statements to the U.S. Citizenship and Immigration Service in support of the sham marriages.
The indictment further charges Agyapong, a Sergeant at Fort Bragg, with obstructing an official proceeding by attempting to destroy evidence and influencing the testimony of a witness.
If convicted, the maximum punishment for committing Marriage Fraud, in violation of Title 8, United States Code, Section 1325(c), Conspiracy to Commit Marriage Fraud, in violation of Title 18, United States Code, Section 371, and False Statements, in violation of Title 18, United States Code, Section 1015(a) is not more than 5 years in prison. The maximum punishment for Harboring Aliens, in violation of Title 8, United States Code, Section 1324(a) and Unlawful Disposition of U.S. Property, in violation of Title 18, United States Code, Section 641 is 10 years in prison. The maximum punishment for Obstructing an Official Proceeding, a violation of Title 18, United States Code, Section 1512, is not more than 20 years imprisonment. The maximum punishment for Visa Fraud, a violation of Title 18, United States Code, Section 1546(a), is not more than 25 years imprisonment.
The investigation of this case continues, and is being conducted by the Department of Homeland Security – Document and Benefit Fraud Task Force and the U.S. Army Criminal Investigation Division. Assistant United States Attorney Gabriel Diaz represents the United States.
A copy of this press release is located on our website.
An indictment is merely an accusation. The defendants are presumed innocent until proven guilty.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Former Key Worldwide Employee Pleads Guilty in College Admissions CaseRead the Press Release
BOSTON – A former employee of William “Rick” Singer’s “The Key” for-profit business pleaded guilty today in connection with her involvement in a scheme to use bribery and fraud to facilitate the admission of applicants to colleges nationwide.
Mikaela Sanford, 34, of Folsom, Calif., pleaded guilty to one count of conspiracy to commit racketeering. U.S. District Court Judge Indira Talwani scheduled sentencing for Jan. 15, 2021. According to the terms of the plea agreement, the government will recommend a sentence at the low end of the sentencing guidelines, one year of supervised release, a fine, forfeiture in the amount of $67,062 and restitution.
Sanford, who was employed by “The Key,” took online classes for students so that the students could submit the grades Sanford earned in their names as part of their application packages to colleges and universities. In other instances, Sanford helped fabricate athletic “profiles” and other documents to bolster students’ college applications by making the students appear to be highly successful high school athletes when, in fact, they were not.
Sanford is the 42nd defendant to plead guilty in this case.
Case information, including the status of each defendant, charging documents and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
The charge of racketeering conspiracy provides for a sentence of up to 20 years in prison, three years of supervised release, a fine of $250,000 or twice the gross gain or loss, whichever is greater and restitution. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Joleen Simpson, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Mark Deckett, Resident Agent in Charge of the Department of Education, Office of Inspector General made the announcement today. Assistant U.S. Attorneys Eric S. Rosen, Justin D. O’Connell, Leslie A. Wright, Kristen A. Kearney, Stephen E. Frank and Karin M. Bell of Lelling’s Criminal Division are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Chicago Police Officer Sentenced to 13 Years in Prison for Participating in Robbery and Extortion CrewRead the Press Release
CHICAGO — A federal judge today sentenced a former Chicago Police sergeant to 13 years in prison for participating in a robbery and extortion crew.
In the 1990s, EDDIE C. HICKS and three others participated in a robbery ring that targeted suspected drug dealers under the guise of police investigations. The four-person crew staged phony drug raids and automobile stops of suspected dealers, threatened them with arrest, then kept the drugs, cash, or weapons they discovered.
All four were arrested and charged in federal court. Hicks fled Chicago in June 2003 while free on bond and awaiting trial. He remained a fugitive until his arrest in Detroit, Mich., in September 2017.
A jury last year convicted Hicks, also known as “David Rose,” 71, on all eight counts against him, including conspiracy to commit racketeering; drug conspiracy; possession of a controlled substance with intent to distribute; carrying a firearm in furtherance of a drug trafficking offense; theft of government funds; and failure to appear for a judicial proceeding. U.S. District Judge Joan Humphrey Lefkow imposed the 13-year sentence after a hearing in federal court in Chicago.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. Valuable assistance was provided by the U.S. Attorney’s Office for the Eastern District of Michigan; U.S. Marshals Service; Detroit, Mich., Police Department; Chicago Police Department; Cook County Sheriff’s Police Department; Bolingbrook Police Department; and Alsip Police Department. The government is represented by Assistant U.S. Attorneys Morris Pasqual and Grayson Walker.
Hicks served as a Chicago Police officer from 1970 to 2000, ultimately attaining the rank of sergeant. Evidence at trial revealed that from the early 1990s to 2001, Hicks and his robbery crew stole thousands of dollars in cash, multi-kilogram quantities of cocaine, hundreds of pounds of marijuana, and several firearms.
The three other crew members were also convicted. They were previously sentenced to prison terms: LARRY HARGROVE, a former Chicago Police sergeant, was sentenced to 13 years; MATTHEW L. MORAN, a former employee of the Illinois Department of Professional Regulation, was sentenced to seven years and ten months; and LAWRENCE W. KNITTER, a former civilian CPD electrical mechanic, was sentenced to nine years and four months.
Fayetteville Man Sentenced to 16 Years for Receipt and Possession of Child PornographyRead the Press Release
SYRACUSE, NEW YORK - Alan Longmore, age 68, of Fayetteville, New York, was sentenced today to serve 195 months (16 years and 3 months) in federal prison for receipt and possession of child pornography, announced Acting United States Attorney Antoinette T. Bacon and Kevin Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
As part of his previous guilty plea, Longmore admitted he received images and videos of child pornography through a peer-to-peer file-sharing program. A forensic review of his laptop computer revealed it contained numerous child pornography video files. Longmore admitted to engaging in this conduct for several years. In addition to these video and image files, the defendant also admitted to secretly recording and subsequently possessing video files depicting two minors engaged in sexually explicit conduct.
United States District Judge David N. Hurd also imposed a lifetime term of supervised release, which will start after Longmore is released from prison, and ordered Longmore to pay a $200 special assessment. As a result of his conviction, Longmore will be required to register as a sex offender upon his release from prison.
Longmore’s case was investigated by U.S. Homeland Security Investigations (HSI)-Syracuse Office, with assistance from the New York State Police Computer Crimes Unit, and the Town of Manlius Police Department.
The case was prosecuted by Assistant U.S. Attorney Geoffrey J. L. Brown as 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), and is designed to marshal 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.
Easton Man Charged with Attempted Online Enticement and Sex Trafficking of A ChildRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on September 29, 2020, Lorenz Quiambao, age 39, of Easton, Pennsylvania, was indicted by a federal grand jury for attempted online enticement of a minor and attempted sex trafficking of a child.
According to United States Attorney David J. Freed, the indictment alleges that Quiambao attempted to use a facility of interstate commerce to entice a minor to engage in sexual activity. Additionally, the indictment alleges that Quiambao attempted to cause a child to engage in a commercial sex act.
The charges stem from an investigation by the Federal Bureau of Investigation (FBI) – Philadelphia Division and its state and local law enforcement partners in Monroe County, Pennsylvania. Assistant United States Attorney Jeffery St. John is prosecuting the case.
The maximum penalties under federal law for these offenses is life imprisonment, a mandatory minimum period of imprisonment of 15 years, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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East Tennessee Woman Sentenced to Federal Prison for Forging PrescriptionsRead the Press Release
Memphis, TN – Erin Pealor, 36, of Maryville, TN, has been sentenced to 36 months in federal prison for attempting to acquire or obtain a controlled substance by misrepresentation, fraud, forgery, deception, or subterfuge. D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee and Brian Rabbitt, Acting Assistant Attorney General Justice Department’s Criminal Division, announced the sentence today.
According to information presented in court, beginning in November 2017 and continuing through February 2018, the defendant knowingly and intentionally attempted to obtain Schedule II controlled substances, namely methylphenidate and amphetamine, by fraud, forgery, deception, and subterfuge by filling out prescriptions with false and fraudulent patient names and forging the signature of a local physician. Pealor then attempted to fill those false and fraudulent prescriptions for controlled substances at various pharmacies.
U.S. Attorney D. Michael Dunavant said, "Opioid misuse and abuse is an insidious epidemic, and unfortunately, causes individuals to engage in criminal behavior that contributes to the problem. Just as this office will hold medical professionals accountable for over-prescribing opioids, we will also pursue federal charges against any person who exploits the medical profession for their own selfish desire to obtain highly addictive prescription drugs by dishonest methods."
In addition to the conduct charged in the September 2019 indictment in the Western District of Tennessee, Pealor admitted to the following facts related to conduct in the Eastern District of Tennessee:
On February 18, 2019, law enforcement made contact with Pealor in a parking lot at a CVS Pharmacy in Maryville, Tennessee. Law enforcement advised Pealor of her Miranda rights and she consented to have law enforcement search her vehicle. Law enforcement found four fake Arkansas drivers' licenses, a bottle of methylphenidate (Ritalin) 20mg in the name of a minor, an empty pill bottle in the name of another minor, CVS Pharmacy sales receipts, prescriptions in the names of two other doctors along with two ledgers that contained children's names, dates of birth, addresses and pharmacy names, and an iPhone.
Evidence revealed Pealor was the manager of Youth Opportunity Services and had been knowingly stealing personal identifying information belonging to children in the Department of Children's Services database and using that information to write and pass fraudulent prescriptions at numerous pharmacies in Blount and Knox counties. No one authorized the prescriptions, and Pealor's use of the children’s identities was unauthorized. Ms. Pealor forged prescriptions in the name of two doctors who did not authorize Pealor to place their names and signatures on the prescriptions. Some of those false and fraudulent prescriptions were found in her vehicle, but prior to being taken into custody, Pealor had successfully made unauthorized use of the identities of dozens of children in order to obtain Ritalin by means of forged prescriptions.
Through this scheme, Ms. Pealor obtained an estimated 5,000 pills. She also stole the TennCare numbers for these children and used the children's TennCare benefits to pay for the prescriptions. Accordingly, she was knowingly using, without lawful authority, the identities of both children and physicians in order to commit the offense of health care fraud in violation of Title 18, United States Code Section 1347 and making false statements in connection with a health care matter in violation of Title 18, United States Code, Section 1035.
Pealor was among several defendants charged in the Second Appalachian Region Prescription Opioid (ARPO) Strike Force Takedown in September, 2019:
https://www.justice.gov/usao-wdtn/pr/second-appalachian-region-prescription-opioid-strikeforce-takedown-results-chargesOn September 29, 2020, U.S. District Court Judge Thomas L. Parker sentenced Pealor to 36 months in federal prison followed by one year supervised release. There is no parole in the federal system.
The Appalachian Region Prescription Opioid (ARPO) Strike Force, Drug Enforcement Administration (DEA), and the State of Tennessee Office of Inspector General (OIG) investigated this case. Since its inception in October 2018, the ARPO Strike Force, which operates in 10 federal judicial districts, has charged more than 300 individuals with schemes involving more than 6 billion dollars in alleged healthcare fraud, and millions of prescription opioids.
Assistant U.S. Attorney Mark Erskine and Trial Attorney Emily Petro of the DOJ Fraud Section prosecuted this case on behalf of the government.
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EOIR Launches Resources to Increase Information and RepresentationRead the Press Release
FALLS CHURCH, VA – The Executive Office for Immigration Review (EOIR) today
announced the launch of two new public resources that increase access to information about
immigration law and EOIR proceedings. The Immigration Court Online Resource (ICOR) and
the Pro Bono Portal also provide information about representation before EOIR’s immigration
courts and Board of Immigration Appeals that benefits both aliens in proceedings and those
representing such respondents.“EOIR is committed to providing helpful and accurate information to all parties before our
immigration courts and the Board of Immigration Appeals,” said EOIR Director James McHenry. “ICOR expands our Immigration Court Helpdesk program, providing useful information to parties regarding immigration proceedings. Further, the Pro Bono Portal makes information about free legal representation more accessible to attorneys and aliens.”ICOR is a web-based tool that provides respondents, appellants, and representatives, and other
interested parties, with a centralized location for resources pertaining to immigration proceedings before EOIR. As an expansion of the Immigration Court Helpdesk program available in five immigration courts, ICOR provides similar information – every day and at all hours – to anyone with access to the Internet. This information helps users better prepare for immigration proceedings, legal representation in such proceedings, and practice before EOIR’s adjudicators. ICOR also includes a tool that respondents can use to access general information about the forms of relief from removal or protection for which they may be able to apply. This mobile-friendly web resource is available in English and Spanish.The Pro Bono Portal allows non-profit organizations, referral services, and private attorneys to initiate, manage, and renew their applications to be included on the EOIR List of Pro Bono Legal Service Providers. Individuals and entities can still apply by mailing a completed EOIR-56 form to the list administrator at EOIR Headquarters, but the Portal will provide a more convenient and efficient application process.
Drug Trafficking Co-Conspirator Sentenced after Engaging in ShootoutRead the Press Release
NORFOLK, Va. – A Portsmouth man was sentenced today to 10 years in prison for discharging a firearm in relation to a drug-trafficking crime.
According to court documents, Keith Earl Redman, 25, was a member of a Portsmouth-based cocaine and crack-trafficking conspiracy led by Charles Boomer, 44, of Portsmouth. This conspiracy was responsible for distributing wholesale amounts of cocaine and crack throughout Hampton Roads. Redman was the armed security for Boomer’s drug premises. Boomer was recently sentenced to 16 years in federal prison for his role in the conspiracy.
In September 2018, Redman engaged in a shootout with at least two masked gunmen trying to rob one of those drug premises. The residence was located across the street from a Portsmouth elementary school. Redman shot both gunmen in the legs and thwarted the robbery while sustaining minor injuries. Police officers arrived at the scene and stopped Boomer, Redman, and another co-conspirator as they were trying to flee in Redman’s girlfriend’s car.
During the police encounter, the officers saw that the co-conspirators were sitting on multiple bags of cocaine, crack cocaine, and marijuana, thousands of dollars in cash, and the handgun Redman had used to shoot at the masked gunmen. The officers recovered even more drugs and drug-manufacturing materials, as well as dozens of spent shell casings, from inside and in front of the residence.
The case was investigated as part of the Organized Crime Drug Enforcement Task Forces (OCDETF), Operation Promotional Deceit. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Scott C. Burke, Acting Chief of Portsmouth Police; and Jesse R. Fong, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorney William B. Jackson 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. 2:20-cr-30.
Dominican National Sentenced for Drug Trafficking ConspiracyRead the Press Release
BOSTON – A Dominican national who previously resided in Boston was sentenced today in federal court for conspiracy to distribute fentanyl, oxycodone and cocaine.
Yonatan Lara, 35, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 21 months in prison and three years of supervised release. Lara will be deported upon completion of his sentence. In June 2020, Lara pleaded guilty to conspiracy to distribute 100 grams or more of heroin, 400 grams or more of fentanyl, cocaine, cocaine base, oxycodone and marijuana. Lara has been in custody since he was arrested on May 30, 2019.
In 2018, a federal and state investigation into the members of a drug trafficking organization in and around the Boston area revealed that Jose Perez Felix, a/k/a “Eugenio Piedraita-Rivera,” a/k/a “Roberto Patricio Ramirez,” a/k/a “Grande,” allegedly distributed large quantities of narcotics, including heroin, fentanyl and cocaine from a base of operations in Boston. Lara and, allegedly, Perez Felix used a 2008 black Subaru Outback, registered to Lara, to distribute narcotics. Federal agents observed Lara and, allegedly, Perez Felix take “meaningless” rides in the Subaru – essentially driving the car around the block or a short distance as a means of shielding their transactions from law enforcement – and saw Lara use the Subaru to distribute narcotics to street-level dealers and users. Agents intercepted Lara and, allegedly, Perez Felix discussing the acquisition and distribution of oxycodone pills. Over the course of the investigation, agents seized oxycodone and fentanyl pills from Lara after two street-level sales.
Perez Felix has pleaded not guilty.
United States Attorney Andrew E. Lelling; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Brockton Police Chief Emanuel Gomes; Boston Police Commissioner William Gross; John Gibbons, U.S. Marshal for the District of Massachusetts; and Plymouth County District Attorney Timothy Cruz made the announcement today. Assistant U.S. Attorneys Christopher Pohl and Alathea Porter of Lelling’s Narcotics and Money Laundering Unit are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Dinwiddie Methamphetamine Dealer Pleads Guilty to DistributionRead the Press Release
RICHMOND, Va. – A Dinwiddie man pleaded guilty today to possession with the intent to distribute over 50 grams of methamphetamine.
According to court documents, in October 2019, Eric Darnell Royal, Jr., 23, traveled by himself to the Chula Gas Mart, located in Amelia. Upon arrival, Royal possessed a red bag around his waist that contained illegal narcotics and possessed a firearm inside his vehicle. Shortly after arriving, two individuals approached Royal, assaulted him, and ripped the red bag from his waist. A struggle ensued in the parking lot between Royal and the two men causing multiple plastic baggies to fall from the red bag onto the ground. Following the fight, Royal picked up the red bag and left the gas station. Law enforcement later recovered, on the ground in the parking lot, two clear plastic baggies with 342 purple oval unmarked tablets determined to be 76.49 grams of methamphetamine and 58.99 grams of marijuana.
An off-duty law enforcement officer who witnessed the fight followed Royal to a residence in Amelia County. The off-duty officer called Amelia County Sheriff Deputies for backup. Once arriving to the scene, the Amelia Deputies looked into Royal’s vehicle and in plain view observed a firearm and a red bag on the driver’s seat. After conferring with investigators who responded to the Chula Gas Mart scene about the fight and a potential shooting, the deputies applied for and obtained a state search warrant for Royal’s vehicle. Inside the vehicle, the officers recovered a Glock 9mm, Model 34, semi-automatic pistol, loaded with 17 rounds, a Glock 30 round magazine (empty), a red zippered bag containing: green leafy material, $200 in United States currency, and plastic baggies with 15.89 grams of methamphetamine purple powder, a variety of unspent ammunition, digital scales, a Glock 9mm magazine, and a Taurus magazine.
In August, federal agents arrested Royal at his place of business, located in Chester. After determining that Royal’s vehicle was on the premises, federal agents observed in plain view a plastic vacuum sealed bag on the front seat with a substance consistent with marijuana residue inside. Federal agents applied for and obtained a federal search warrant for Royal’s vehicle. A search of the vehicle revealed: a loaded Sig Sauer, Model P229, .40 caliber, semi-automatic pistol; a vacuum-sealed bag with marijuana residue; a digital scale; and marijuana.
Royal pleaded guilty to possession with the intent to distribute 50 grams or more of methamphetamine. He faces a mandatory minimum penalty of five years in prison when sentenced on Feb. 2, 2021. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Ashan M. Benedict, Special Agent in Charge of the ATF’s Washington Field Division, made the announcement after U.S. District Judge M. Hannah Lauck accepted the plea. Assistant U.S. Attorney Erik S. Siebert is 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. 3:20-cr-84.
Detroit Man Sentenced to Prison for Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – A Detroit man was sentenced for a federal drug crime, announced United States Attorney Mike Stuart. Darnell Smith, 26, was sentenced to 18 months in prison for possession with intent to distribute heroin.
“This Detroit drug dealer had a bad day,” said United States Attorney Mike Stuart. “After being shot, he was in possession of 20 individually packaged bags of heroin when he entered the hospital for treatment. Now, he’s headed to federal prison. We hope out-of-state drug dealers figure out that bad days come as a result of bringing their drug business into West Virginia.”
Smith previously pled guilty admitting that on September 12, 2016, law enforcement officers found him in possession of 20 individually packaged bags of heroin when he entered a hospital for treatment after being shot in the head. Smith admitted that he intended to sell the drugs for money.
The case was investigated by the Charleston Police Department. Assistant United States Attorneys Chris Arthur and Erik Goes handled the prosecution. United States District Judge Joseph R. Goodwin imposed the sentence.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:18-cr-00165.
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Department of Justice Invests More than $295.8 Million in Grants to Improve Public Safety, Serve Crime Victims in American Indian and Alaska Native CommunitiesRead the Press Release
WASHINGTON – The Department of Justice announced yesterday that it has awarded more than $295.8 million to improve public safety, serve victims of crime and support youth programs in American Indian and Alaska Native communities.
Attorney General William P. Barr stated yesterday: “American Indian and Alaska Native communities experience rates of violent crime and domestic abuse that are among the highest in the nation. The awards announced today underscore the Department of Justice’s deep commitment to improving public safety in tribal communities throughout the United States. This administration will continue to work closely with our tribal partners to guarantee that they have the resources they need to combat violence and bring criminals to justice.”
The announcement included grants of more than $1.4 million to the Saint Regis Mohawk Tribe and $1.1 million to the Oneida Indian Nation, both situated within the Northern District of New York. The grants will be used to support law enforcement and tribal justice practices, expand victim services, and sustain crime prevention and intervention efforts.
Separately, the Office on Violence Against Women awarded the Saint Regis Mohawk Tribe $100,000 to help victims of domestic violence and decrease incidents of domestic violence during the COVID-19 pandemic. The Three Sisters Program, a secure shelter that provides services to victims of abuse, domestic violence and sexual assault, will administer the award.
Acting United States Attorney Antoinette T. Bacon stated: “These grants help support important justice and police programs, maintain vital services to victims of crime, and help protect those most vulnerable from domestic violence, sexual assault and gender-based violence. We look forward to continuing to work with our law enforcement partners in the Saint Regis Mohawk Tribe and the Oneida Indian Nation to promote public safety.”
Nationwide, more than $103 million was awarded under the Justice Department’s Coordinated Tribal Assistance Solicitation (CTAS) to enhance law enforcement and tribal justice practices, expand victim services, and sustain crime prevention and intervention efforts. Of that amount, the Department’s Office of Justice Programs (OJP) awarded $41.5 million, the Office on Violence Against Women awarded $39.1 million, and the Office of Community Oriented Policing Services awarded $22.5 million.
The Department also announced awards totaling $113 million to 133 applicants under the Tribal Victim Services Set-Aside Program. This program is designed to help tribes develop, expand and improve services to victims of crime and promote other public safety initiatives.
In addition to the CTAS and Tribal Victim Services Set-Aside awards, the Office on Violence Against Women made additional tribal awards of more than $31 million to support a wide range of efforts to address the crimes of domestic violence, dating violence, sexual assault, stalking and human trafficking.
A full listing of all the announced CTAS awards is available here.
A full listing of all Tribal Victim Services Set-Aside Program awards is available here.
For more information on the Office of Justice Programs, please visit: https://www.ojp.gov/. For more information on the Office on Violence Against Women, please visit: https://www.justice.gov/ovw. For more information on the COPS Office, please visit: https://cops.usdoj.gov/.
Department of Justice Applauds President Trump’s Authorization of the Antitrust Criminal Penalty Enhancement and Reform Permanent Extension ActRead the Press Release
On October 1, President Donald J. Trump signed into law a continuing resolution that contains the Antitrust Criminal Penalty Enhancement and Reform Permanent Extension Act (the “Act”). The Act reauthorizes the Antitrust Criminal Penalty Enhancement and Reform Act (ACPERA) and repeals the sunset provision therein.
“We thank President Trump and both the Senate and the House of Representatives for their bipartisan action and recognition of ACPERA’s importance in the fight to safeguard our free markets and protect American consumers from collusion,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “The division wholeheartedly agrees with Congress’s findings that ‘[c]onspiracies among competitors to fix prices, rig bids, and allocate markets are categorically and irredeemably anticompetitive and contravene the competition policy of the United States.’”
Congress enacted ACPERA in 2004 in part to provide greater incentives for corporations to self-report and cooperate pursuant to the Antitrust Division’s Corporate Leniency Policy. Since 2004, ACPERA’s provisions have substantially strengthened the Antitrust Division’s ability to detect and prosecute anticompetitive cartel activity through the Leniency Program.
From Fiscal Year 2010 to 2019, the Antitrust Division’s criminal prosecutions have resulted in over $9 billion in criminal fines and penalties, along with jail terms for more than 250 individuals. Since the fall of 2019 alone, the division obtained four criminal fines and penalties at or above the Sherman Act’s $100 million statutory maximum, and prosecuted antitrust violations affecting generic drugs, cancer patients, grocery store staples, and financial markets.
ACPERA will continue to mitigate a successful leniency applicant’s civil damages exposure from treble damages to actual damages if the company provides civil plaintiffs with timely and satisfactory cooperation. While treble damages liability can be an important deterrent for engaging in anti-competitive behavior, civil exposure also can deter self-reporting of criminal wrongdoing. Therefore, the Department of Justice supported the reauthorization of ACPERA and the repeal of its sunset provision.
Connecticut Licensed Alcohol and Drug Counselor Pays $230K to Settle False Claims AllegationsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that HECTOR B. CHUKWUEMEKA OKWUOSA, LADC, and his business, MY FATHER MY SON REHABILITATION AND COUNSELING CENTER LLC, have entered into a civil settlement agreement with the federal and state governments and paid $230,000 to resolve allegations that they violated the federal and state False Claims Acts.
Okwuosa is a state Licensed Alcohol and Drug Counselor and the owner of My Father My Son, a now dissolved private behavioral health practice that provided in-home mental health and substance abuse counseling in the greater New Haven, Hartford and Bridgeport communities. Okwuosa is enrolled as a Licensed Behavioral Health Clinician in Independent Practice in the Connecticut Medical Assistance Program (“CMAP”), which includes the state’s Medicaid program. It is alleged that, on numerous occasions, Okwuosa and My Father My Son billed Medicaid for behavioral health services as if a licensed individual had provided the services when in fact an unlicensed individual rendered the services.
To resolve the allegations under the federal and state False Claims Acts, Okwuosa and My Father My Son paid $230,000 in order to reimburse the Medicaid program for conduct occurring from March 1, 2017 to May 5, 2018.
Under the False Claims Act, the government can recover up to three times its actual damages, plus penalties of $11,665 to $23,331 for each false claim.
This case stems from a larger investigation into fraudulent activity in the area of behavioral health services, which has been jointly conducted by the Office of the Inspector General of the U.S. Department of Health and Human Services, the Medicaid Fraud Control Unit of the Chief State’s Attorney’s Office and the Connecticut Office of the Attorney General, with support from the Connecticut Department of Social Services.
This case was handled by Assistant U.S. Attorney Anne Thidemann, and Assistant Attorney General Joshua L. Jackson of the Connecticut Office of the Attorney General.
This matter is announced in coordination with a Department of Justice nationwide enforcement action involving more than 300 defendants in criminal and civil cases across 51 federal districts. The defendants, including more than 100 doctors, nurses and other licensed medical professionals, are alleged to have submitted more than $6 billion in false and fraudulent claims to federal health care programs and private insurers.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS or the Health Care Fraud Task Force at (203) 777-6311.
Cleveland business owner sentenced to 15 months for bribing city demolition employeeRead the Press Release
U.S. Attorney Justin Herdman announced today that Eric Witherspoon, 56, of Warrensville Heights, was sentenced by U.S. District Court Judge Christopher A. Boyko to 15 months in prison and ordered to pay a $5,000 fine after Witherspoon pleaded guilty to bribery in federally funded programs.
“Public contracts should go to the most qualified, not the best connected,” said U.S. Attorney Justin Herdman. “Public officials, contractors, or anyone else who misuses or improperly handless public funds can expect to find themselves in a similar position, that is to say, facing federal prison time.”
“This sentencing represents our continuing resolve to root out fraud and corruption in all forms, particularly when the programs involved should have been used to help our neediest families,” said HUD OIG Special Agent in Charge Brad Geary. “It is our continuing core mission to work with our law enforcement partners and the United States Attorney’s Office to protect the integrity of our housing programs and to take strong action against those who seek to illegally benefit from them.”
According to court documents, Witherspoon owned and operated an asbestos removal and demolition businesses in Cleveland. Witherspoon submitted bids to the city of Cleveland in an attempt to obtain contracts for abatement and demolition work on behalf of the city.
Rufus Taylor, who has also pleaded guilty to receiving bribes, was Cleveland’s Chief of the Demolition Bureau. Taylor’s responsibilities included locating contractors for and assigning emergency demolition jobs. In addition, he advised other city officials on which contractors should be solicited for bids and conducting inspections, which had to be completed before a contractor could be paid.
Witherspoon pleaded guilty to participating in a bribery scheme in 2013 and 2014. This included the two of them meeting at restaurants, job sites and in parked cars. Witherspoon paid cash to Taylor, and, in return, Taylor provided confidential information and advice about potential board-up and demolition jobs in the city of Cleveland.
Taylor also provided assistance to Witherspoon in assuring the jobs he worked on would be inspected quickly.
In one instance, the two men met in November of 2013 to discuss a demolition job on Parkwood Drive. Witherspoon promised to pay Taylor in exchange for Taylor getting Witherspoon on the bid list. Witherspoon was awarded the contract and, in return, paid Taylor $3,000.00.
According to Court records, on the evening of February 9, 2017, the two men were recorded meeting in a parked vehicle to discuss their mutually beneficial relationship. They discussed their arrangement, whereby Taylor would receive a bribe payment from Witherspoon once Witherspoon received payment for a job that Taylor helped him obtain.
Later on in that conversation, the two discussed another instance in which Witherspoon had given Taylor $300.00, with Witherspoon acknowledging that Taylor “didn’t even ask [him] for that” bribe. After acknowledging that Witherspoon had paid Taylor $300.00 without Taylor even asking, Taylor noted that the payment was Witherspoon’s “appreciation” for Taylor, and Taylor had not complained about how much he received. Taylor noted that he had never complained about what “you put in my hand,” and Witherspoon acknowledged that was true.
Rufus Taylor pleaded guilty to extortion and bribery in a federally funded program on September 4, 2018. Taylor will be sentenced before Judge Christopher A. Boyko.
This case was investigated by agents with the Cleveland Division of FBI, Housing and Urban Development-OIG, and Internal Revenue Service – Criminal Investigations and was prosecuted by Assistant U.S. Attorneys Chelsea S. Rice and Elliot Morrison.