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Thursday 24 September 2020
Jackson County Man Sentenced to 5 Years in Prison for Dealing in Firearms Without a LicenseRead the Press Release
Gulfport, Miss. – Waso Nam Flanagan, 53, of Jackson County, was sentenced today by U.S. District Judge Sul Ozerden to 60 months in prison, followed by 3 years of supervised release, for dealing in firearms without a license, announced U.S. Attorney Mike Hurst, and Special Agent-in-Charge Kurt Thielhorn with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Flanagan was also ordered to pay $3100 fine and special assessment as well as $220 in restitution.
Flanagan pled guilty before Judge Ozerden on June 15, 2020.
On September 27, 2019, Jackson County Sheriff’s Office investigators arrested Flanagan on an outstanding felony warrant for possession of stolen firearms. Flanagan was on bond for an aggravated assault charge at the time. When investigators found and arrested Flanagan, they also found baggies of marijuana and methamphetamine.
The ATF adopted the case for federal prosecution and determined that Flanagan, who was a regular user of narcotics, had been selling firearms and drugs. Flanagan used multiple pawn shops in Jackson and Harrison counties to pawn or sell firearms he bought “off of the street,” and the ATF learned that two of the firearms he purchased on the street, and then sold, had been stolen.
ATF examined firearms pawned by Flanagan to local area pawn shops. When Flanagan pawned firearms, he did not go back to redeem the pawns and was effectively selling the firearms. ATF also obtained transaction documents and, determined that the firearms had traveled in interstate commerce, and were in good condition. The ATF also researched official records and confirmed that Flanagan had never had a license to deal in firearms.
U.S. Attorney Hurst praised the cooperation of the ATF and the Jackson County Sheriff’s Department. Assistant United States Attorney Stan Harris was the prosecutor for the case.
Inland Empire Man Who Teaches at San Bernardino Middle School Arrested on Federal Child Pornography ChargesRead the Press Release
RIVERSIDE, California – A Fontana man is expected to make his initial court appearance late this afternoon after being charged today with federal child pornography offenses for allegedly uploading explicit images to the internet.
Josue Gamaliel Vidal Quintanilla, 28, who teaches mathematics at Shandin Hills Middle School in San Bernardino, was arrested Wednesday morning by authorities during the execution of a search warrant at his residence.
According to a federal criminal complaint filed today, Vidal was arrested after he admitted using various online platforms to send, receive and possess child pornography. Evidence obtained by agents with Homeland Security Investigations (HSI) and officers with the Fontana Police Department’s Internet Crimes Against Children Task Force indicates that Vidal used Kik Messenger and Snapchat for the past year to transmit child pornography.
Vidal also admitted he posed as a minor boy on the internet and solicited “many” minors – some as young as 10 years old – to engage in sexually explicit behavior in online meetings that took place as recently as Tuesday night, according to the affidavit in support of the complaint.
“A preliminary search of Vidal’s Toshiba laptop revealed approximately 20 image files depicting the sexual exploitation of children, as well as multiple video files with titles indicative of child pornography,” according to the affidavit by an HSI special agent. “Similarly, I conducted a preliminary review of online accounts that Vidal consented for me to search, and I found communications that Vidal engaged in where he sent and received child pornography images and videos as well as sent hyperlinks to downloadable child pornography videos.”
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The criminal complaint charges Vidal with one count of transportation of child pornography and one count of possession of child pornography. If convicted of these two charges, Vidal would face a statutory maximum sentence of 40 years in federal prison. Additionally, the transportation count carries a mandatory minimum penalty of five years in federal prison.
The ongoing investigation in this case is being conducted by HSI and the Fontana Police Department. The San Bernardino County Sheriff’s Department provided substantial assistance in this investigation.
This case is being prosecuted by Assistant United States Attorney Sonah Lee of the Riverside Branch Office.
Indianapolis Man, Woman Sentenced to 13 Years in Federal Prison for Armed Robbery of Galesburg, Ill., PharmacyRead the Press Release
ROCK ISLAND, Ill. – Chief U.S. District Judge Sara Darrow has sentenced Gates L. Sisk, 20, and Davia A. Barbee, 20, both of Indianapolis, to 13 years in prison for the Sept. 10, 2018, armed robbery of Walgreens Pharmacy in Galesburg, Ill. Both Sisk and Barbee were sentenced on Sept. 23, 2020. Both have remained in law enforcement custody since they were arrested hours after the robbery on Sept. 10, 2018.
Sisk and Barbee each pleaded guilty in February 2020, to all three counts as charged in the indictment, including obstructing commerce by robbery, brandishing a firearm in furtherance of a violent crime, and possession with intent to distribute narcotics.
According to court documents and testimony, Sisk and Barbee were accompanied by another individual when they entered the Walgreens at 844 Fremont St., Galesburg, Ill., at approximately 4:20 a.m., on Sept. 10, 2018. The defendants displayed and pointed apparent guns at the pharmacy employees as they bound the employees with zip ties. The defendants demanded narcotics and threatened to kill the employees if they did not cooperate. The defendants took large quantities of Adderall, hydrocodone, oxycodone, and methylphenidate, a generic form of Ritalin, to sell.
Police officers with the Galesburg Police Department arrested Sisk and Barbee shortly after the robbery as they fled on foot after crashing their getaway car. Police recovered a Bersa .40 caliber semiautomatic handgun used in the robbery from the car and more than 12,000 pills from the car as well as bottles that were thrown from the car as the defendants fled from police.
At sentencing, a DEA investigator testified that various individuals in the Indianapolis area had been carrying out armed pharmacy robberies since 2017 in various locations, including much of the Eastern and Midwestern U.S. Both Sisk and Barbee are from Indianapolis, as is the third suspect in the Galesburg robbery, identified in court as Prentice Davis. According to the agent’s testimony, Sisk has been linked to two other similar robberies in Alton, Ill., and Appleton, Wis. Barbee has been linked to a similar robbery in Kansas City, Mo. Davis is currently serving a 10-year-sentence in the Missouri Department of Corrections for a pharmacy robbery in Missouri.
The Galesburg Police Department and the Drug Enforcement Administration investigated the case. Assistant U.S. Attorneys Donald B. Allegro and Jennifer L. Mathew represented the government in the prosecution.
Illegal Possession of Drugs and Firearms Sends Three Men to Federal PrisonRead the Press Release
ALEXANDRIA/LAFAYETTE/SHREVEPORT, La. – Acting United States Attorney Alexander C. Van Hook announced that three convicted felons have been sentenced in United States District Court for illegal possession of firearms.
Breaux Bridge Man with Lengthy Criminal History Sentenced for Illegally Possessing Firearm
Nacorvrick Green a/k/a “G-Nate,” 41, of Breaux Bridge, Louisiana, was sentenced today by U.S. District Judge Dee D. Drell to 180 months (15 years) in prison, followed by 3 years of supervised release, for being a convicted felon in possession of a firearm. Green previously pled guilty to the charge on December 2, 2019.
Lafayette Police Department officers conducted a traffic stop of a vehicle Green was driving on June 13, 2018. Officers found a loaded semi-automatic pistol in the vehicle and arrested Green, who is a convicted felon. Prior to his arrest, Green had seven felony convictions for drug trafficking. Under federal law, it is it is illegal for anyone who has been convicted of a felony to be in possession of a firearm or ammunition.
The ATF, Lafayette Police Department and Lafayette Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorneys Daniel J. Vermaelen and Jamilla A. Bynog prosecuted the case.
Shreveport Man Sentenced for Drug and Firearms Crimes
Jerrick Stephenson, 28, of Shreveport, Louisiana, was sentenced today by U.S. District Judge S. Maurice Hicks, Jr. to 78 months (6 years, 6 months) in prison, followed by 3 years of supervised release, for possession with intent to distribute marijuana and possession of a firearm in furtherance of a drug trafficking crime. Stephenson pled guilty to the charge on September 6, 2019.
Stephenson was stopped by Shreveport Police Department officers for a traffic infraction on July 28, 2018. Stephenson attempted to flee on foot from law enforcement officers but was apprehended a short distance away and arrested. Officers found a pistol and two loaded magazines under the driver’s seat of the vehicle he was operating. Also inside the vehicle were 130 grams of marijuana and a digital scale with marijuana residue. Stephenson was previously convicted of possession of controlled dangerous substances in 2014 and knew that he was prohibited from possessing a firearm or ammunition because of his prior felony conviction.
The ATF and the Shreveport Police Department conducted the investigation. Assistant U.S. Attorney Cadesby B. Cooper prosecuted the case.
Alexandria Man Sentenced on Federal Firearms Charges
Malcolm Xavier Williams, 29, of Alexandria, Louisiana, was sentenced today by U.S. District Judge Dee D. Drell to 15 months in prison, followed by 2 years of supervised release, for possession of a firearm by a convicted felon. Williams was also ordered to pay a $7,000 fine. He pled guilty to the charge on March 5, 2020.
On February 21, 2019, Alexandria Police Department officers responded to a call on Aguillard Lane in Alexandria. Upon their arrival, officers found Williams, who had outstanding active warrants, and placed him under arrest. During a search incident to the arrest, officers found the key to a vehicle that was parked and running nearby in Williams’ pocket. Inside that vehicle, officers found a loaded black handgun on the driver’s side floorboard. Before his arrest on February 21, 2019, Williams, a convicted felon, was prohibited from possessing firearms because of a prior conviction for illegally carrying a weapon in 2017. At the time of arrest, Williams knew his status as a convicted felon.
The ATF and the Alexandria Police Department conducted the investigation. Assistant U.S. Attorney J. Aaron Crawford prosecuted the case.
Each of these cases was brought as part of Project Guardian and Project Safe Neighborhoods (PSN), programs that have been historically successful in bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
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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.
Husband and wife plead guilty to naturalization fraud and conspiring to illegally import and distribute male enhancement products and counterfeit goods from ChinaRead the Press Release
ROME, GA– Irfanali Momin and Shiba I. Momin a/k/a Saguftabanu Momin, husband and wife, have each pleaded guilty to naturalization fraud, and conspiring to illegally import misbranded drug products from China, receive misbranded drugs that had moved in interstate commerce, and to trafficking of counterfeit goods.
“These defendants profited by taking a shortcut—one that could have had devastating consequences for individuals who purchased these products,” said U.S. Attorney Byung J. “BJay” Pak. “By illegally importing and distributing products containing drugs that can only be obtained in the United States with a prescription written by a licensed, medical professional, the Momins put profit over public safety.”
“The health and safety of American consumers are placed at risk when they are unknowingly exposed to undeclared active pharmaceutical ingredients in misbranded drugs that are falsely labeled as dietary supplements,” said Special Agent in Charge Justin C. Fielder, FDA Office of Criminal Investigations Miami Field Office. “FDA remains committed to pursuing those who endanger the U.S. public health by importing and distributing fraudulent and potentially dangerous products.”
“Whether it is lying to illegally gain citizenship or illegally importing and selling misbranded pharmaceuticals, Homeland Security Investigations will aggressively pursue those that seek to profit from those fraudulent and dangerous activities,” said acting Special Agent in Charge Robert Hammer, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “The Momins will now face the consequences for their actions thanks to the diligent efforts of all our partners on the Atlanta Document and Benefit Fraud Task Force.”
“The arrest of this couple essentially stopped the flow of illegal products throughout the Southeast that were sold to hundreds of stores and ultimately customers whose health was threatened by using them,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI is committed to working with our federal partners to make sure our citizens are protected from those who would choose to do them harm.”
According to U.S. Attorney Pak, the charges and other information presented in court: Between August 2014 and November 2018, the Momins ordered and sold male enhancement products from China marketed under names such as “Black Ant King,” “Bull,” “Rhino 7,” “Super Hard,” “Jack Rabbit,” “Zhen Gongfu,” “Stree Overlord,” “Pro Power Max,” “Libigrow,” “Red Mamba,” “Rhino 69,” “Krazzy Rhino,” “Rhino 25,” Hard Steel,” and “Black Mamba.” These products contained sildenafil, the active pharmaceutical ingredient in Viagra, and/or tadalafil, the active pharmaceutical ingredient in Cialis. Both Viagra and Cialis can be obtained in the U.S. only with a prescription from a doctor.
In order to evade import restrictions, the Momins’ China-based suppliers mislabeled the boxes containing the illegal pills to make it appear that the boxes contained items that can be legally imported into the U.S., such as beauty products, health products, and health supplies. The Momins admitted to selling between $550,000 and $1.5 million in illegal drug products over the course of the conspiracy. They also sold various counterfeit goods from their warehouse in Dalton, Georgia, including counterfeit designer watches, headphones, e-cigarette devices, and tobacco rolling papers.
Earlier, in October 2013, the Momins both applied to become naturalized U.S. citizens. On his application form, Irfanali Momin falsely stated that he had never been married before and did not disclose that he had in fact been married to two women at the same time. During an interview with USCIS in June 2014, Irfanali Momin made the same false declarations. Based upon his false statements, Irfanali Momin became a naturalized U.S. citizen on August 16, 2014. On her application form, Shiba I. Momin a/k/a Saguftabanu Momin, falsely stated that she did not go by any other names when in fact she knew that her actual name was Shiba I. Momin, but she was only passing as Saguftabanu Momin. The investigation had revealed that Shiba I. Momin had originally obtained a Georgia’s driver’s license in her real name only to later obtain a fraudulent license in the name Saguftabanu Momin—the name she used to apply for and fraudulently receive U.S. citizenship on August 1, 2014. If USCIS had been aware of these facts, it would have denied her citizenship.
Irfanali Momin, 48, and Shiba I. Momin a/k/a Saguftabanu Momin, 42, both of Dahlonega, Georgia, were convicted on September 23, 2020 after pleading guilty to a criminal information. Sentencing for the Momins is scheduled for January 7, 2021, at 11:00 a.m., before U.S. District Judge Steve C. Jones. The Momins were originally arrested on January 8, 2020 after a grand jury returned a multi-count Indictment against them. As a consequence of their guilty pleas to naturalization fraud, Judge Jones will sign an order following sentencing that revokes their U.S. citizenship.
This case is being investigated by the Food and Drug Administration, Office of Criminal Investigations, Homeland Security Investigations, and the Federal Bureau of Investigation
Assistant U.S. Attorney Alex R. Sistla is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Hot Springs Woman Sentenced to 14 Years in Federal Prison for Drug PossessionRead the Press Release
Fayetteville, Arkansas – David Clay Fowlkes, First Assistant United States Attorney for the Western District of Arkansas, announced that Michelle Friedman, age 38, was sentenced yesterday to 168 months in federal prison, followed by five years of supervised release for Possession with Intent to Distribute Methamphetamine. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, on or about January 3, 2020, agents with the Drug Enforcement Administration (DEA) learned that Friedman was purported to be selling methamphetamine from a hotel room in Fayetteville, Arkansas. These agents contacted Friedman's supervising parole officer and learned that Friedman had an active arrest warrant for absconding supervision, and had an active search waiver on file.
DEA agents and her Parole officer located Friedman in her hotel room and made contact with her. Friedman immediately advised officers that everything in the room belonged to her. During a search of the room, Officers located a box and a flashlight that contained methamphetamine, as well as a digital scale.
The DEA crime lab tested the seized methamphetamine and determined that it contained 627grams of methamphetamine.
A federal grand jury indicted Friedman in March 2020, and she entered a guilty plea in June 2020.
This case was investigated by the Drug Enforcement Administration (DEA) and Arkansas Probation and Parole. Assistant United States Attorney Hunter Bridges prosecuted the case for the United States.
Head of Financial Services Firm Charged in Manhattan Federal Court in Connection with Multimillion-Dollar Securities Fraud SchemeRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York (“SDNY”), and Philip R. Bartlett, Inspector-in-Charge of the United States Postal Inspection Service’s New York Division (“USPIS”), announced that CRAIG ZABALA, the chairman, chief executive officer, and president of Concorde Group Holdings Inc. (“Holdings”), was arrested this morning in New York on securities fraud and wire fraud charges stemming from a scheme to defraud investors in Holdings, a purported financial services firm. Among other illicit activity, ZABALA fraudulently induced at least 18 investors to invest at least approximately $4.4 million based on false and misleading statements, by failing to use investors’ funds as promised, including to build Holdings’ purported business by investing in and buying other financial services companies, and by converting investors’ money to his own use, including to repay other investors in a Ponzi-like fashion. ZABALA is expected to be presented this morning in Manhattan federal court before U.S. Magistrate Judge Sarah Netburn.
Acting U.S. Attorney Audrey Strauss said: “As alleged, Craig Zabala held a controlling interest in a purported financial services firm through which he defrauded investors of more than $4 million. Zabala allegedly lied to investors about how much money had been raised, how investors’ money would be used, who had invested, and how close the firm was to an initial public offering. As further alleged, Zabala appropriated most of the fraudulently obtained funds for his own use, or to pay off investors in Ponzi-like fashion.”
USPIS Inspector-in-Charge Philip R. Bartlett said: “It can always be said, greed has a way of overcoming honest business practices; and in this case Mr. Zabala allegedly exhibited an indifference to investing regulations and the truth when he lied to his investors to enhance his lifestyle and enrich himself. As alleged, this case has all the elements of a classic Ponzi scheme. Investors should remember where there is high reward, there is high risk. Always verify ‘once in a lifetime’ investment claims to ensure you won't be taken for a ride.”
According to the allegations in the Complaint unsealed today in Manhattan federal court:[1]
CRAIG ZABALA was the chairman, CEO, and president of various affiliated and intertwined purported financial services companies: Holdings, Concorde Group, Inc. (“Group”), Blackhawk Capital Group BDC, Inc. (“Blackhawk”), DBL Holdings, LLC, d/b/a “Drexel Burnham Lambert” (“DBL”), Concorde Investment Managers, LLC (“CIM”), and Concorde Europe, Ltd. (“Concorde Europe”). In or about August 2019, FINRA barred ZABALA from the broker-dealer industry, including because of his failure to cooperate with a FINRA investigation.
Holdings was a Delaware corporation formed in or about 2015, with an office in Jersey City, New Jersey, and a mailing address in New York, New York. Holdings purported to provide financial services, including merchant banking, investment banking, asset management, and securities brokerage services, to entrepreneurs, investors, and businesses in the middle market, meaning small to mid-sized companies with revenue and market capitalizations of less than $1 billion, in North America, Europe, and Asia. Holdings’ purported affiliates included Group, DBL, Blackhawk, CIM, and Concorde Europe. ZABALA was a majority owner of Holdings.
Group was a Delaware corporation formed in or about 1995, based in New York, New York, that purported to provide the same types of financial services as Holdings. Group’s purported affiliates included DBL, Blackhawk, CIM, and Concorde Europe. ZABALA was a majority owner of Group. Between in or about 2001 and in or about 2014, Group purportedly raised approximately $18 million from investors.
From at least in or about 2015 through in or about 2020, ZABALA and others perpetrated a scheme to defraud at least approximately 18 investors out of at least approximately $4.4 million in Holdings notes, warrants, and equity, almost all of whom invested in a private offering by Holdings of $25 million in senior secured notes with attached warrants paying 13 percent interest (the “Holdings Offering”).
ZABALA and others falsely represented that the proceeds from the offerings would be used to grow Holdings’ purported business by investing in and buying other financial services companies. In truth and in fact, and as ZABALA well knew, Holdings did not make any investments in or buy other companies.
ZABALA and others falsely represented to Holdings investors that Holdings had raised nearly $25 million in the Holdings Offering. In truth and in fact, and as ZABALA well knew, Holdings only raised a few million dollars.
ZABALA and others falsely represented to Holdings investors that the family office of a wealthy German family had invested millions of dollars in Holdings. In truth and in fact, and as ZABALA well knew, this family office never invested in, and never committed to invest in, Holdings.
ZABALA and others falsely represented to Holdings investors that Holdings would soon have an initial public offering (“IPO”), which would result in large profits to Holdings investors. In truth and in fact, and as ZABALA well knew, Holdings was not close to an IPO.
ZABALA converted at least approximately 70 percent of the approximately $4.4 million in Holdings investor funds in the form of cash withdrawals and other transfers to himself, payments to his girlfriend, payments of his personal credit card bills, and repayment of Group investors in a Ponzi-like fashion.
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ZABALA, 68, was arrested this morning at his home in New York, New York. ZABALA was charged with one count of securities fraud and one count of wire fraud, each of which carries a maximum sentence of 20 years in prison. He was also charged with one count of conspiracy to commit securities fraud and wire fraud, which carries a maximum sentence of five years in prison. The charges carry a maximum fine of $5 million, or twice the gross gain or loss from the offenses. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Ms. Strauss praised the outstanding work of the USPIS, and also thanked the SEC for its assistance and cooperation in this investigation.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorney Joshua A. Naftalis is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the texts of the Complaint and the descriptions of the Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.
Gulfport Man Sentenced to over 15 years in Prison for Possession with Intent to Distribute MethamphetamineRead the Press Release
Gulfport, Miss – Xzavier Earl Damon Wilson, 24, of Gulfport, was sentenced today by U.S. District Judge Louis Guirola, Jr., 188 months in prison, followed by 5 years of supervised release, for possession with intent to distribute methamphetamine, announced U.S. Attorney Mike Hurst and Kurt Theilhorn, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives. Wilson was also ordered to pay a $5,000 fine and forfeit two firearms.
The Harrison County Sheriff’s Department Narcotics Unit was investigating a heroin overdose and received information that Wilson was the source of supply. On September 30, 2019, during a traffic stop of Wilson, deputies found 55.15 grams of 100% pure Methamphetamine, a small amount of marijuana and a Schedule I controlled substance, synthetic cannabinoid. A search of a car belonging to Wilson produced 27.873 grams of Heroin and 375.9 grams of pure Methamphetamine.
Wilson was charged in a federal criminal indictment and pled guilty before Judge Guirola on June 25, 2020.
The Harrison County Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. It was prosecuted by Assistant United States Attorney Annette Williams.
Grand Jury indicts Chesterfield psychiatrist and business partner in health care fraud and money laundering schemeRead the Press Release
ST. LOUIS, MO – Dr. Franco Sicuro, of Chesterfield, Missouri, and Carlos Himpler, of Baton Rouge, Louisiana, were indicted on multiple charges of conspiracy and health care fraud charges. The indictment charges that as part of a fraud scheme Genotec DX and Midwest Toxicology Group, owned by Dr. Sicuro and Carlos Himpler, received over $15 million dollars for clinical laboratory tests that Genotec DX and Midwest Toxicology Group did not perform.
According to the indictment, Dr. Sicuro and Carlos Himpler falsely represented to Medicare, United Health Care, Aetna-Coventry, Anthem Blue Cross-Blue Shield, and Cigna that Genotec DX and Midwest Toxicology Group had performed quantitative urine drug tests and genetic tests, although neither laboratory had the equipment to perform the tests. To carry out the fraud scheme, Dr. Sicuro and Carlos Himpler paid other clinical laboratories about $125 to perform tests on a single urine specimen. Genotec DX and Midwest Toxicology Group then marked-up the same tests and billed insurance companies thousands of dollars for the same tests. In many instances, Genotec DX and Midwest Toxicology Group unbundled tests, which should have been billed as one test, billed the tests separately, and were paid $30,000 to $50,000 for a single urine drug test. To avoid detection, reimbursement claims were submitted on different days for the same patient and date of service but included different billing codes.
One business affected by the fraud scheme was UFCW Local #655, which paid Genotec DX $1,086,450.87 for urine drug tests for 7 union members between January and October 2015. UFCW Local #655 also paid Midwest Toxicology Group $150,596.74. Unknown to UFCW Local #655 and the public and private health care insurers, Midwest Toxicology Group was not certified by state or federal agencies to operate as a clinical laboratory and had no testing equipment.
Conspiracy to defraud carries a maximum penalty of five years imprisonment for each count and a fine of $250,000 or both. The health care fraud violations carry a maximum penalty of 10 years imprisonment for each count and a fine of $250,000 or both. Restitution to the victims is also mandatory.
The Federal Bureau of Investigation, U.S. Department of Health and Human Services, Office of the Inspector General investigated the case. Assistant United States Attorneys Dorothy McMurtry and Meredith Reiter are handling the case for the U.S. Attorney’s Office.
Fort Myers Business Owner Indicted for COVID Relief FraudRead the Press Release
Fort Myers, Florida – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Casey David Crowther (35, North Fort Myers) with one count of bank fraud, one count of making a false statement to a lending institution, and two counts of illegal monetary transactions. If convicted, Crowther faces a maximum penalty of 30 years in federal prison for the bank fraud count and the false statement count and up to 10 years in federal prison for each illegal monetary transaction count. The indictment also notifies Crowther that the United States intends to forfeit a 2020 40-foot catamaran and $2,098,700, which are alleged proceeds of the offense.
According to the indictment, beginning in or about April 2020, Crowther submitted a false and fraudulent Payroll Protection Program (PPP) loan application and revised PPP loan application to an insured financial institution on behalf of his company, Target Roofing and Sheet Metal, Inc. Specifically, Crowther falsely represented that the PPP funds would only be used for business-related purposes, and he falsely certified that the funds would be used to retain workers and maintain payroll or make mortgage payments, lease payments, and utility payments on behalf of Target Roofing. These materially false, fraudulent, and misleading representations caused the Small Business Administration (SBA) to approve the PPP application and issue $2,098,700 in PPP funds. Crowther then unlawfully used the funds to wire $689,417 for the purchase of a 2020 40-foot catamaran boat and $100,000 in connection with a $722,474 promissory note.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted March 2020. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if the business spends the proceeds on these expenses within a set time period and uses at least a certain percentage of the loan toward payroll expenses.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the United States Secret Service. It will be prosecuted by Assistant United States Attorney Trent Reichling.
Former bank employee arrested in embezzlement scam involving over $40,000Read the Press Release
HOUSTON – A 38-year-old Houston woman has been taken into custody on allegations of embezzling thousands from her previous employer, announced U.S. Attorney Ryan K. Patrick.
A federal grand jury returned a one-count indictment against Claudia Wells Sept. 17, charging her with embezzlement from a federally-insured credit union. She is expected to make her initial appearance before U.S. Magistrate Judge Christina Bryan at 2 p.m. today.
According to the indictment, from May 28, 2019 to June 6, 2019, Wells embezzled approximately $43,000 from an account at the credit union while she was employed there.
The FBI conducted the investigation. Assistant U.S. Attorney Belinda Beek is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Former Postal employee indicted for delay and destruction of MailRead the Press Release
HOUSTON – A 24-year-old Richmond resident has surrendered to federal authorities following the return of an indictment alleging she delayed and/or destroyed U.S. mail, announced U.S. Attorney Ryan Patrick.
A Houston federal grand jury returned the indictment Sept. 15 against Lovely Eliabe which was unsealed today. She is expected to make an initial appearance before U.S. Magistrate Christina Bryan at 2 p.m.
Eliabe was allegedly employed as a rural carrier associate at the U.S. Postal Service (USPS).
The indictment alleges she destroyed and delayed mail matter intended to be delivered through the USPS on June 26. As a USPS employee, Eliabe allegedly violated her obligation to deliver all of the mail matter entrusted to her.
She is no longer a USPS employee.
If convicted, she faces up to five years in federal prison and a possible $250,000 maximum fine.
USPS – Office of Inspector General conducted the investigation. Assistant U.S. Attorney Luis Batarse is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Former Cancer Center President Indicted for Participation in Long-Running Antitrust ConspiracyRead the Press Release
A federal grand jury returned an indictment against Dr. William Harwin, founder and former President of Florida Cancer Specialists & Research Institute LLC (FCS), for conspiring to allocate medical and radiation oncology treatments for patients in Southwest Florida, the Department of Justice announced today.
The indictment, filed in the U.S. District Court in Fort Myers, Florida, charges Harwin for participating in a criminal conspiracy with a competing oncology group in Collier, Lee, and Charlotte counties (Southwest Florida). Beginning as early as 1999 and continuing until at least 2016, Harwin and his co-conspirators entered into an illegal agreement to allocate medical oncology treatments, such as chemotherapy, to FCS and radiation oncology treatments to a competing oncology group. The conspiracy allowed FCS and the competing oncology group to operate with minimal competition in Southwest Florida and limited valuable integrated care options and choices for cancer patients.
“As the charge demonstrates, the division remains committed to holding culpable executives accountable for their crimes, especially when they impact vulnerable Americans, such as those in need of life-saving treatments,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “The Antitrust Division will continue to work to protect competition and integrity in the healthcare industry.”
“It is unconscionable for a doctor to prioritize profits over patient care," said Michael F. McPherson, Special Agent in Charge of the FBI Tampa Field Office. “The FBI will persist in exposing unscrupulous medical providers who deny the public access to a competitive healthcare marketplace.”
The indictment follows a felony charge filed against FCS in April 2020 for its role in the same conspiracy in which Harwin is alleged to have participated. The Antitrust Division and FCS resolved the charge with a deferred prosecution agreement, under which the company admitted to conspiring to allocate treatments for cancer patients and agreed to pay a $100 million criminal penalty. FCS also agreed to waive and refrain from enforcing any non-compete provisions with its current or former oncologists or other employees who, during the term of the deferred prosecution agreement, open or join an oncology practice in Southwest Florida.
An indictment merely alleges that a crime has been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
The charge in the indictment carries a maximum penalty of 10 years in prison and a $1 million fine for individuals. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by victims if either amount is greater than $1 million.
Today’s announcement is the result of an ongoing federal antitrust investigation into market allocation and other anticompetitive conduct in the oncology industry, which is being conducted by the Antitrust Division’s Washington Criminal II Section and the FBI’s Tampa Field Office – Fort Myers R.A. Anyone with information in connection with this investigation or anticompetitive conduct in the healthcare industry generally is urged to contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or visit https://www.justice.gov/atr/contact/newcase.html.
Felon Sentenced to Prison for Illegally Possessing a PistolRead the Press Release
PITTSBURGH, PA – A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to 46 months’ imprisonment with credit for time served on any federal detainer; and three years supervised release, on his conviction of violating federal firearms laws, United States Attorney Scott W. Brady announced today.
United States District Judge Cathy Bissoon imposed the sentence on Melvin Russaw, age 38.
According to information presented to the court, on or about June 6, 2017, Russaw was apprehended by law enforcement on state charges, after attempting to flee in his 2008 Gray Chevy Impala. Upon execution of a search warrant for the vehicle, which was registered to Russaw, investigators discovered a small panel wherein a Glock, model 21, .45 caliber pistol, bearing serial number HVH758, was hidden. Russaw, who has multiple prior felony state convictions, as well as a federal conviction, is prohibited from lawfully possessing a firearm.
Judge Bissoon ordered that the sentence imposed in this case run concurrently with the state sentence imposed on Mr. Russaw, at Docket Number 10326-2017, in the Court of Common Pleas Allegheny County, Criminal Division, on October 1, 2019.
Assistant United States Attorney Rebecca L. Silinski prosecuted this case on behalf of the government.
United States Attorney Brady commended the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pittsburgh Bureau of Police for the investigation leading to the successful prosecution of Russaw. This case was brought under Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Essex County Man Charged with Distribution and Possession of Child PornographyRead the Press Release
NEWARK, N.J. – An Essex County, Belleville, New Jersey, was arrested today for allegedly possessing images of child sexual abuse and distributing them on the internet, U.S. Attorney Craig Carpenito announced.
Mauricio Calderon, 49, of Belleville, New Jersey, is charged by complaint with one count of distribution of child pornography and one count of possession of child pornography. He is scheduled to make his initial appearance by videoconference today before U.S. Magistrate Judge Edward S. Kiel.
According to documents filed in this case and statements made in court:
Between March 2020 and April 10, 2020, Calderon used an internet-based application to distribute multiple graphic videos depicting the sexual abuse of minors. During the course of the investigation, Calderon publicly posted in a chatroom multiple videos depicting the sexual abuse of children, and also sent links that redirected to web-pages containing child pornography. Law enforcement discovered numerous videos and images of child sexual abuse on Calderon’s electronic devices when he was arrested at his home this morning.
The charge of distribution of child pornography carries a mandatory minimum penalty of five years in prison, a maximum penalty of 20 years in prison, and fine of $250,000. The charge of possession of child pornography carries a maximum penalty of 10 years in prison, and fine of $250,000.
U.S. Attorney Carpenito credited special agents with the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina, with the investigation leading to these charges.
The government is represented by Assistant U.S. Attorney Shawn Barnes of the U.S. Attorney’s Office Criminal Division in Newark.
The charges and allegations in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Elkins man admits to meth chargeRead the Press Release
ELKINS, WEST VIRGINIA – Nicholas Adam Owens, of Elkins, West Virginia, has admitted to a drug charge, U.S. Attorney Bill Powell announced.
Owens, 25, pled guilty to one count of “Possession with Intent to Distribute More Than Five Grams of Methamphetamine.” Owens admitted to having more than five grams of methamphetamine, also known as “crystal meth” or “ice,” in August 2019 in Randolph County.
Owens faces no less than five years and up to 40 years of incarceration and a fine of up to $5,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Elkins Police Department investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Dubuque Man Pleads Guilty to Distributing Heroin that Caused OverdoseRead the Press Release
A man who sold heroin that caused a near-fatal overdose pled guilty today in federal court in Cedar Rapids.
Michael Jerome Greenwood, age 26, from Dubuque, Iowa, was convicted of one count of distributing heroin near a playground.
In a plea agreement, Greenwood admitted that he sold heroin in Dubuque between 2016 and 2018. In August 2018, Greenwood sold $100 worth of heroin to two women. After using the heroin, one of the women lost consciousness and started having trouble breathing. The woman’s family members rushed her to the hospital, where she was revived with Narcan, saving her life. Greenwood also admitted in the plea agreement that he sometimes requested sexual favors from his customers in exchange for heroin.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Greenwood remains in custody of the United States Marshal pending sentencing. Greenwood faces a mandatory minimum sentence of 1 year imprisonment and a possible maximum sentence of 40 years’ imprisonment, a $2,000,000 fine, and a lifetime of supervised release following any imprisonment.
The case was investigated by the Dubuque Drug Task Force and is being prosecuted by Assistant United States Attorneys Elizabeth Dupuich, Dan Chatham, and Special Assistant United States Attorney Alexander Geocaris.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-1044-CJW.
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Dual Colombian-American Citizen Sentenced for Illegally Exporting Firearms from Florida to ColombiaRead the Press Release
Tampa, Florida – U.S. District Judge Steven Merryday today sentenced Jhon Marin-Moreno (39, Medellin, Colombia) to 48 months in federal prison for smuggling goods from the United States. In addition, he was ordered to pay a money judgment in the amount of $20,000.
Marin-Moreno had pleaded guilty in June 2020.
According to court documents, Marin-Moreno, a dual citizen of the United States and Colombia, arranged for individuals in Florida to acquire firearms for him, including numerous types of assault rifles. Marin-Moreno then illegally exported the firearms to Colombia concealed in packages containing household items. Marin-Moreno and his co-conspirators attempted to obliterate the serial numbers on the firearms so that they could not be traced. Some of the firearms were acquired to satisfy debts owed for drug purchases. Neither Marin-Moreno nor his co-conspirators applied for or obtained the necessary licenses for exporting defense articles as required by federal law.
On February 10, 2020, Marin-Moreno was detained while traveling through Panama and was immediately removed to the United States to face the charges in the indictment.
Marin-Moreno was previously convicted in the United States District Court for the Northern District of Georgia, in 2012, of conspiracy to make false statements and representations to a federally licensed firearms dealer, in connection with a separate scheme to acquire firearms unlawfully.
“This repeat criminal again thought he could thwart the laws of the United States by crossing international borders,” said HSI Tampa Acting Deputy Special Agent in Charge Micah McCombs. “Because of the unique international investigative authorities of HSI and our outstanding law enforcement partnerships with the Bureau of Alcohol, Tobacco, Firearms and Explosives, and Colombia’s Policía Fiscal y Aduanera (POLFA), a unit of the National Police of Colombia, he will now be held accountable for his crimes.”
This case was investigated by Homeland Security Investigations, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives and Colombia’s Policía Fiscal y Aduanera (POLFA), a unit of the National Police of Colombia. It was prosecuted by Assistant United States Attorney Patrick Scruggs.
Dos Hombres Acusados en el Tribunal Federal del Distrito Sur de Florida de Secuestrar y Torturar Inmigrantes CubanosRead the Press Release
Miami, Fl. – Dos hombres hicieron su comparecencia inicial en el Distrito Sur de Florida por cargos de tráfico de inmigrantes, los cuales implican secuestro y tortura de Cubanos y extorsión de dinero a los familiares de las víctimas.
Ariana Fajardo Orshan, Fiscal Federal del Distrito Sur de Florida, George L. Piro, Agente Especial a Cargo, Oficina Federal de Investigaciones (FBI, por sus siglas en Inglés), Sucursal de Miami, y Anthony Salisbury, Agente Especial a Cargo, Agencia de Inmigración y Control de Aduanas de los Estados Unidos, Agencia de Investigaciones de Seguridad Nacional (ICE-HSI, por sus siglas en Inglés), Sucursal de Miami, hicieron el anuncio.
La declaración jurada de la denuncia criminal presentada en el Distrito Sur de Florida contra Reynaldo Marquez Crespo, 41, y Jancer Sergio Ramos Valdés, 33, alega lo siguiente: Los acusados hicieron creer a sus víctimas que iban a hacerlos entrar clandestinamente a los Estados Unidos provenientes de Cuba. En lugar de eso, Crespo, Valdés, y sus cómplices transportaron a las víctimas en bote a Mérida, México, los encerraron en una casa, y los mantuvieron cautivos para exigir rescate. Crespo, Valdés, y otros ordenaron a cada víctima a dar los datos de algún familiar que pudiera pagar un rescate de $10,000. Los hombres contactaron a los familiares de las víctimas, algunos de los cuales estaban localizados en Miami, y amenazaron con torturar, privar de comida, y matar a las víctimas si los familiares se rehusaban a pagar. Si uno de los familiares de las víctimas podía pagar el rescate, Crespo, Valdés, y los otros liberaban a la víctima y la mandaban en bus a la frontera entre México y los Estados Unidos con instrucciones para buscar asilo político. Cuando los familiares no podían pagar el rescate, los inmigrantes eran golpeados, amenazados con cuchillos y pistolas, y electrocutados con pistolas paralizantes hasta que las autoridades Mexicanas los rescataron, conforme con la declaración jurada de la denuncia criminal.
Valdés fue arrestado en Connecticut, donde un juez magistrado federal ordenó su detención en espera del juicio. Crespo fue arrestado en Texas. Los dos acusados fueron trasladados a Miami para enfrentar sus cargos. Esta semana, los acusados hicieron su comparecencia inicial en el Distrito Sur de Florida ante el Juez Magistrado Federal Jonathan Goodman. La audiencia de detención preventiva de Crespo ha sido fijada el 28 de Septiembre de 2020 a la 1:00 p.m., en el tribunal federal magistrado de Miami.
Estos cargos son el resultado del continuo esfuerzo de la Operación “Grupo Operativo Sisyphus”, una asociación de múltiples agencias establecida por el Grupo Operativo de Control del Delito de Drogas (OCDETF, por sus siglas en Inglés) Programa de Prioridad del Delito Transnacional Organizado. La Operación “Grupo Operativo Sisyphus” fue formada para combatir crímenes organizados en el Caribe, la cual incluye a la Oficina del Fiscal Federal del Distrito Sur de Florida, a la Sucursal de Miami de la Oficina Federal de Investigaciones (FBI) y a la Sucursal de Miami de la agencia de Investigaciones de Seguridad Nacional (HSI). En los últimos años, la Operación “Grupo Operativo Sisyphus” se ha enfocado en organizaciones que utilizan coerción para obligar a inmigrantes y a sus familias a pagar sumas de rescate por la liberación de sus seres queridos.
La Operación Sisyphus es parte de una investigación del Grupo Operativo de Control del Delito de Drogas (OCDETF). La misión principal del programa OCDETF es identificar, interrumpir, y desmantelar a los narcotraficantes de alto nivel, lavadores de dinero, y otras organizaciones de criminales transnacionales de prioridad que amenazan a los ciudadanos de los Estados Unidos utilizando un enfoque guiado por fiscales, conducido con inteligencia, y constituido de múltiples agencias para combatir el crímen transnacional organizado. El programa OCDETF facilita operaciones conjuntas y complejas enfocando a sus agencias asociadas en sus objetivos prioritarios, manejando y coordinando el esfuerzo de múltiples agencias, y potenciando inteligencia a través de múltiples plataformas de investigación.
FBI Miami y HSI Miami investigaron este caso. La abogada fiscal Quinshawna Landon es la abogada acusadora en el caso. Las abogadas fiscales Adrienne Rosen y Annika Miranda están encargadas del decomiso de los bienes.
Si usted cree que es una víctima de coerción o extorsión de inmigrantes o conoce a alguien que lo es, le sugerimos llamar al 1-800-CALLFBI (225-5324). Usted también puede llamar al 1-866-347-2423 o visitar https://www.ice.gov/tipline. Se ofrece ayuda en Inglés, Español, y en otros idiomas.
Una denuncia criminal contiene alegaciones. Todo acusado es considerado inocente hasta que se demuestre su culpabilidad.
Usted puede encontrar información y documentos legales relacionados a este comunicado de prensa en la página web del Tribunal Federal del Distrito Sur de Florida, www.flsd.uscourts.gov o en http://pacer.flsd.uscourts.gov, bajo los números de casos 20-mj-3346 y 20-mj-3347.
Dominican National Sentenced for Fentanyl DistributionRead the Press Release
BOSTON – A Dominican national was sentenced yesterday in federal court in Boston for fentanyl distribution.
Santiago Rubel Guerrero Tejeda, 23, was sentenced by U.S. District Court Judge Indira Talwani to 18 months in prison and four years of supervised release. In May 2020, Guerrero Tejeda pleaded guilty to one count of distribution of 40 grams or more of fentanyl.
Guerrero Tejeda sold 157.9 grams of a mixture containing fentanyl to an undercover officer in September 2019.
He was arrested and charged by complaint in September 2019 as part of a coordinated law enforcement operation in and around the Merrimack Valley known as “Devil’s Highway.” The operation targeted the distribution of opioids, including fentanyl and heroin, and resulted in charges against a total of 40 people for federal drug offenses, with at least a dozen more individuals facing state charges.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Essex County District Attorney Jonathan W. Blodgett made the announcement. Valuable assistance was provided by the Massachusetts State Police, the Lawrence Police Department and the North Andover Police Department. Assistant United States Attorney Annapurna Balakrishna of Lelling’s office prosecuted the case.
Doctor Pleads Guilty in Manhattan Federal Court to Illegal Distribution of Oxycodone PillsRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, announced that RUVIM KRUPKIN, a New York state-licensed doctor, pled guilty today to conspiring to illegally distribute large quantities of oxycodone from a medical office in Brooklyn, New York. As part of his guilty plea, KRUPKIN also agreed to forfeit $124,000 in proceeds obtained through his illicit distribution of oxycodone. KRUPKIN pled guilty before United States District Judge Analisa Torres in Manhattan federal court.
Acting U.S. Attorney Audrey Strauss said: “As he admitted in court today, Ruvim Krupkin, for more than a decade, wrote thousands of medically unnecessary prescriptions for oxycodone, enriching himself at the expense of others, while the country suffered from a devastating opioid epidemic. He now awaits sentencing for his crime.”
According to the allegations contained in the Indictment and statements made during court proceedings:
KRUPKIN, a licensed internal medicine doctor with specialties in oncology and hematology, practiced at a medical office in Brooklyn. From 2006 to July 2017, KRUPKIN prescribed over four million oxycodone pills to individuals he knew had no legitimate medical need for the pills. KRUPKIN charged each patient $200 in cash for each visit, payable directly to him.
As a hematologist, KRUPKIN treated patients who had, or claimed to have, sickle cell anemia – a medical condition that can cause pain for which oxycodone, in conjunction with other treatments, may be legitimately prescribed. However, KRUPKIN wrote thousands of prescriptions for large quantities of oxycodone to patients, knowing that they in fact had no legitimate medical need for the prescriptions. KRUPKIN generally performed little to no physical examination on these patients; indeed, the medical notes for each patient were largely the same from one visit to the next.
In addition, KRUPKIN typically issued patients prescriptions for a large dose of oxycodone – typically 180 80-milligram pills, until approximately 2010, when the formula for oxycodone changed, reducing the street value of the 80-milligram pills. At that time, KRUPKIN began prescribing 180 or 240 30-milligram pills. KRUPKIN’s patients filled their prescriptions at pharmacies throughout New York, and in certain cases, sold the oxycodone pills they received to drug dealers, who in turn re-sold the pills at high value on the street. KRUPKIN knew that certain of his patients were diverting the oxycodone pills he was prescribing, but he nonetheless continued writing prescriptions of oxycodone for such individuals.
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KRUPKIN, 69, of Summit, New Jersey, pled guilty to one count of participating in a conspiracy to distribute narcotics, which carries a maximum sentence of 20 years in prison. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentence for the defendant will be determined by the judge.
KRUPKIN is scheduled to be sentenced by Judge Torres on January 26, 2021, at 11:00 a.m.
Ms. Strauss praised the outstanding investigative work of the FBI-NYPD Health Care Fraud Task Force. Ms. Strauss also thanked the New York City Human Resources Administration for its work on the investigation.
This case is being handled by the Office’s Narcotics Unit. Assistant United States Attorneys Tara M. La Morte and Alexandra N. Rothman are in charge of the prosecution.
Destrehan Man Charged with Wire FraudRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Peter G. Strasser announced that JOSEPH MEISCH, 45, of Destrehan, Louisiana, was charged on September 23, 2020 in a bill of information with one count of violating 18 U.S.C. § 1343, wire fraud.
According to the bill of information, MEISCH, while employed as the business manager of St. Patrick’s Church in New Orleans, defrauded the Church of approximately $329,856.20. Specifically, MEISCH used credit cards belonging to the Church to purchase personal items and transferred Church funds into his personal accounts.
If convicted, MEISCH faces a maximum penalty of twenty (20) years incarceration, a $250,000 fine, a three (3) year term of supervised release, and a mandatory special assessment of $100.00.
An information is merely an accusation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt.
U.S. Attorney Strasser praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Tracey Knight is in charge of the prosecution.
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DS-44 Drug Gang Leader Pleads Guilty: Christopher Highsmith Faces 15 Years to Life at SentencingRead the Press Release
PITTSBURGH, PA –A former resident of Pittsburgh, Pennsylvania pleaded guilty in federal court to charges related to drug trafficking in connection with a large-scale investigation conducted by the Greater Pittsburgh Safe Streets Task Force, United States Attorney Scott W. Brady announced today.
Christopher Highsmith, 28, pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute more than 400 grams of a mixture containing heroin and fentanyl, before United States District Judge William S. Stickman IV. Mr. Highsmith is one of 40 defendants charged in the Indictment and Superseding Indictment returned in the case.
In connection with the guilty plea, the court was advised that in 2017, the Greater Pittsburgh Safe Streets Task Force initiated an investigation primarily targeting the Darccide/Smash 44, or DS44, neighborhood gang, and its drug-trafficking activity, in and around the South Side area of Pittsburgh. As part of this large-scale narcotics and firearms investigation, in February of 2019, the United States received authorization to conduct a federal wire investigation, which continued through June of 2019. In addition to communications about drug trafficking between Highsmith, the leader of the organization, and many of his coconspirators, agents made numerous seizures of fentanyl, heroin, and other drugs from members of the organization, as well as maintained critical physical surveillance of Highsmith’s drug-trafficking activities.
The court was further advised that Mr. Highsmith was involved in the acquisition and distribution of heroin and fentanyl, to both other distributors and end users. Highsmith personally engaged in the distribution activity, as well as directed lower-level members of DS44 to make drug deliveries, to collect payment, and to maintain records of drug proceeds.
Judge Stickman scheduled sentencing for February 8, 2021, at 10:30 a.m. The law provides for a total sentence of not less than 15 years or more than life in prison, a fine of up to $20,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of each defendant. Highsmith
remains in custody pending sentencing.
Assistant United States Attorneys Carolyn J. Bloch and Brendan McKenna are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Bureau of Alcohol Tobacco Firearms and Explosives, Allegheny County Adult Probation, Allegheny County Police Department, Allegheny County Sheriff’s Office, Pennsylvania Attorney General’s Office Bureau of Narcotics, Pittsburgh Bureau of Police, and the Wilkinsburg Police Department. Other assisting agencies include the Green Tree Police Department, New York City Police Department, Mount Oliver Police Department, Pennsylvania State Police, Yonkers Police Department, United States Marshals Fugitive Task Force, and the United States Postal Inspection Service.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Crofton Man Sentenced to More Than One Year in Federal Prison for Intentionally Damaging the Computers of His Former EmployerRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake today sentenced Shannon Stafford, age 50, of Crofton, Maryland, to a year and a day in federal prison, followed by three years of supervised release, for illegally accessing and damaging the computer network of his former employer. Judge Blake also entered an order requiring Stafford to pay restitution in the amount of $193,258.10 to his former employer.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Attorney General Brian Rabbitt of the Department of Justice Criminal Division; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; and Deputy Inspector General Richard K. Delmar of the Department of the Treasury, Office of Inspector General.
According to court documents and evidence presented at his four-day trial, from January 5, 2004 through August 6, 2015, Stafford was employed in the information technology (IT) department at Business A, a global company with thousands of employees and offices around the world, including in Maryland and Washington, D.C. Stafford was employed in the Washington office and provided IT technical support to employees based at, or visiting, the Washington, McLean, Virginia, and Baltimore offices. As part of his duties, Stafford had access to the system login credentials of other employees and was authorized to use them in the course of performing his technical support duties. Stafford was also responsible for disabling company users’ network access credentials at the end of their employment. In 2014, Business A provided Stafford with a laptop to use for his work.
Witnesses testified that in 2014, Stafford was promoted to the managerial role of technical site lead for the Washington office. In March 2015, Stafford was demoted back to an IT support role, due to performance issues in his management position. Stafford’s performance issues continued and he was fired on August 6, 2015. Stafford did not return the laptop he was previously provided by Business A.
The evidence proved that on the evening of August 6, 2015, Stafford repeatedly attempted to remotely access Business A’s computer networks from his residence, using the company laptop. Stafford unsuccessfully attempted to access the company’s network approximately 10 times, using his own credentials and the credentials of a former co-worker, whom he had previously assisted. In the early morning hours of August 8, 2015, Stafford successfully used the co-worker’s credentials and the company laptop to access, without authorization, the computer in the Washington office that had been located under his desk. Stafford used the Washington IT computer to execute demands to delete all of the file storage drives used by the Washington office, then changed the password to access the storage management system. The deletion of the files caused a severe disruption to the company’s operations and the loss of some customer and user data. Changing the password hindered the company’s efforts to determine what happened and restore access to its remaining files. As a result of the deletion of the network file storage drives, Washington users were unable to access their stored files for approximately three days, until the data could be restored from backups. Customer and user data that was not included in the most recent backup prior to Stafford’s deletion of the files was permanently lost.
On August 11, 2015, Stafford unsuccessfully attempted to remotely access the company’s computer network from his home approximately 13 times, using credentials that were not his. On August 13, 2015, a company representative spoke to Stafford and demanded that he cease and desist his attempts to unlawfully access Business A’s computer systems. The evidence showed that despite Business A’s demand, between August 21 and September 9, 2015, Stafford attempted to access the company’s network from his home approximately 17 times, using credentials that were not his. On September 14, 2015, Stafford used the credentials of another former co-worker to access a network file storage system computer that he had been responsible for maintaining in the IT department of the company’s Baltimore office, intending to cause the same type of damage he did when he deleted the Washington office’s stored files. However, Stafford’s attempt failed because Business A had changed the password after Stafford’s attack on the Washington files.
The actual loss to Business A resulting from Stafford’s damage and attempted damage to their computer systems, including the cost of restoring the deleted systems, investigating what happened, and responding to the intrusion is at least $38,270. In addition, Business A incurred legal fees totaling $133,950.60 and a fee of $21,037.50 for a forensic investigation.
United States Attorney Robert K. Hur praised the FBI and Treasury OIG for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Zachary A. Myers and Trial Attorney S. Riane Harper of DOJ’s Computer Crime and Intellectual Property Section, who prosecuted the case.
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Covington County Felon Sentenced to 16 Months in Prison Under Project EJECT for Illegally Possessing a FirearmRead the Press Release
Hattiesburg, Miss. – Alexander Knight, 32, of Seminary, was sentenced today by Senior U.S. District Court Judge Keith Starrett to 16 months in prison, a $3000 fine, and three years of supervised release for being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Michelle A. Sutphin with the Federal Bureau of Investigation in Mississippi.
On November 19, 2019, during the execution of an arrest warrant for Knight, Covington County Sheriff’s deputies and members of the U.S. Marshal’s Gulf Coast Regional Fugitive Task Force found a firearm on Knight’s person. Following his arrest, but before the execution of the warrant associated with his federal indictment, Knight also managed to escape the Covington County Jail with two other inmates. He remained at large for more than two weeks before being recaptured and transferred into federal custody.
Knight was originally indicted for this offense on January 29, 2020. He pled guilty on June 10, 2020.
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 Covington County Sheriff’s Department and the Federal Bureau of Investigation investigated the case. The case was prosecuted by Assistant United States Attorney Andrew W. Eichner.
Convicted Felon from Dyersville, Iowa, Sentenced to over Five Years in Federal Prison for Unlawfully Possessing a GunRead the Press Release
A multiple-time convicted felon who unlawfully possessed guns was sentenced today to more than five years in federal prison.
Allen Osterkamp, age 29, from Dyersville, Iowa, received the prison term after a March 5, 2020, guilty plea to being a prohibited person in possession of a firearm.
At the guilty plea, Osterkamp admitted he unlawfully possessed a stolen gun in March 2017. At the sentencing hearing, Osterkamp admitted he actually possessed more than eight guns around March 2017. Osterkamp had previously been convicted of multiple felony offenses, including possessing a precursor with intent to manufacture meth, operating a motor vehicle without consent, and multiple convictions for theft. Osterkamp also had two prior convictions for domestic abuse.
Osterkamp was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Osterkamp was sentenced to 70 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see /media/1122011/dl?inline.
Osterkamp is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and investigated by the Jones County Sheriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-65.
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Colorado Springs Gang Member Sentenced to 5 Years in Federal Prison for Bank Robbery and Attempted Bank RobberyRead the Press Release
DENVER – United States Attorney Jason R. Dunn today announced that Elijah Nathanial Salazar, age 22, of Colorado Springs, and a Rolling 60s gang member, was sentenced to serve 60 months (5 years) in federal prison followed by 3 years on supervised release for possession of a firearm during and in relation to a crime of violence. The Denver Division of the FBI joined in this announcement.
According to facts contained in the plea agreement, on the morning of March 14, 2018, Salazar walked into the ENT Federal Credit Union on Jet Drive in Colorado Springs. Salazar confronted a bank teller saying he had a weapon and demanding cash. The teller handed Salazar cash. Salazar then quickly left the premises. The teller later told officers that the robber appeared to have a substantial amount of makeup on his face in order to alter his appearance.
During a March 23, 2018 robbery of the ANB Bank on Briargate Boulevard in Colorado Springs, a 16-year-old male, who was being initiated into the gang, approached a teller demanding money. The suspect wore makeup in an attempt to make his complexion lighter. The 16-year-old fled with cash the teller provided him. Immediately after the robbery, bank officials locked the doors, keeping witnesses inside.
The bank manager became suspicious that one individual inside the bank, later identified as Salazar, had tried to distract her during the robbery, thus acting in concert with the robber. She instructed Salazar to be seated in the lobby and to wait for the police. When contacted by law enforcement, Salazar also had makeup on. After being searched, he was arrested for possessing cocaine. Further investigation revealed that Salazar had accompanied the 16-year-old during the robbery and that Salazar’s role was to make sure the minor robbed the bank.
“If there was ever a crime that fit the expression ‘crime doesn’t pay’, bank robbery is it: robbers get very little cash, almost always get caught, and are sentenced to substantial federal prison time as a result,” said U.S. Attorney Jason Dunn. “Unfortunately, this defendant is learning that lesson the hard way. Hopefully the next would-be-robber sees this result and thinks twice.”
“Elijah Nathanial Salazar will now face the consequences of his actions with a lengthy prison sentence,” said FBI Denver Special Agent in Charge Michael Schneider. “We will continue to investigate violent offenders who target commercial institutions for robbery. FBI Denver and our Southern Colorado Safe Streets Task Force are grateful for the hard work and efforts of the Colorado Springs Police Department, El Paso County Sheriff’s Office, as well as that of the United States Attorney’s Office throughout this investigation.”
Salazar was prosecuted by Assistant U.S. Attorney Kurt Bohn. The sentence was pronounced by U.S. District Court Judge William J. Martinez on September 23, 2020. The case was investigated by the Denver Division of the FBI, the Colorado Springs Police Department and the El Paso County Sheriff’s Office.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Colorado. Related court documents can be found on PACER. The defendant’s case number is 18-cr-360.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Claiborne Parish Constable Indicted for Selling and Misbranding Illegal SupplementsRead the Press Release
SHREVEPORT, La. – Acting United States Attorney Alexander C. Van Hook announced that a federal grand jury has returned an indictment charging William Earl Maddox, 72, of Haynesville, Louisiana, with selling and misbranding illegal supplements online and in stores. Maddox has been charged with two counts of mail fraud, three counts of misbranding of a drug with intent to defraud or deceive, and seven counts of wire fraud.
According to the indictment, from around January 1, 2015 and continuing until about December 31, 2018, Maddox, the elected Constable in Claiborne Parish, Louisiana, sold supplements in capsules in stores and on eBay and websites that he operated, advertising them to be all-natural herbal supplements to treat impotence.
The indictment alleges that Maddox obtained green capsules in unlabeled blister packs in the mail from foreign countries, including China, which contained sildenafil, the active ingredient in the prescription drug Viagra; tadalafil, the active ingredient in the prescription drug Cialis; and testosterone propinionate, an anabolic steroid and a Schedule III controlled dangerous substance. It is alleged that Maddox had the capsules repackaged and advertised them to contain all natural ingredients but the labeling did not reveal that the capsules contained sildenafil, tadalifil, or testosterone propinionate.
The indictment further alleges that when customers purchased these products, payment was made to the PayPal business account for Middle Marketing, LLC, which was Maddox’s company. Maddox would then ship the capsules to customers via the United States Postal Service and transfer the funds generated from the sale of the products from the PayPal account to his Middle Marketing bank account.
If convicted, the defendant faces up to 20 years in prison, a $250,000 fine, or both, on the mail and wire fraud counts and up to 3 years in prison, a $250,000 fine, or both, on the misbranding of a drug with intent to defraud or deceive counts in the indictment.
The U.S. Food and Drug Administration conducted the investigation. Assistant U.S. Attorneys Jessica D. Cassidy and Earl M. Campbell are prosecuting the case.
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
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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.
Cedar Rapids Woman Who Lied to the Grand Jury Sentenced to Federal PrisonRead the Press Release
A woman who lied to a federal grand jury about her boyfriend’s drug use was sentenced to federal prison on September 16, 2020.
Paula Lynn Cole, age 31, from Cedar Rapids, Iowa, received the prison term after a March 2, 2020 guilty plea to one count of making a false declaration before a grand jury.
In a plea agreement, Cole admitted that she testified before a federal grand jury in September 2018 regarding an investigation of her boyfriend for a firearms charge. During her grand jury testimony, Cole testified that she did not know whether her boyfriend was a marijuana user and that there was nothing that ever indicated to her that he used marijuana. Cole admitted in her plea agreement that her grand jury testimony was false and that she knew that her boyfriend was a marijuana user because she had previously seen him use marijuana.
Cole was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Cole was sentenced to eight months’ imprisonment, four months of which will be served in prison, and four months of which will be served in home detention. She must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Cole was released on the bond previously set and is to surrender to the Bureau of Prisons on a date yet to be set.
The case was investigated by the Federal Bureau of Investigation and Cedar Rapids Police Department, and prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR‑00107‑CJW‑MAR.
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Carroll Man Pleads Guilty to Receipt of Child PornographyRead the Press Release
A man who received child pornography pled guilty today, in federal court in Sioux City.
Kyler Colten Cook, age 29, from Carroll, IA, pled guilty to receipt of child pornography.
In a plea agreement, Cook admitted that between February 8, 2019 and December 3, 2019, he knowingly received visual depictions of minors engaged in sexually explicit conduct.
While released pending trial, Cook was caught sending graphic texts and visual images to a female and was then detained in federal custody pending trial.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Cook remains in custody of the United States Marshal pending sentencing. Cook faces a minimum sentence of 5 years’ imprisonment and a possible maximum sentence of 20 years’ imprisonment, a $250,000 fine, and at least 5 years up to life of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Ron Timmons and was investigated by the Iowa Division of Criminal Investigation.
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.”
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-3023.
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Blacksburg Doctor to Serve 90 Months in Prison on Health Care Fraud, Distribution of Controlled Substances, Obstruction of Justice ChargesRead the Press Release
ROANOKE, Va. – Frank Purpera Jr., the former owner of the Virginia Vein Institute, was sentenced today in U.S. District Court in Roanoke to 90 months in federal prison after being convicted by a jury in January 2020 of illegally distributing controlled substances, health care fraud, conspiracy to commit health care fraud, and obstruction of justice. Acting United States Attorney Daniel P. Bubar, Virginia Attorney General Mark Herring and Maureen R. Dixon, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services made the announcement today.
Purpera, 45, of Blacksburg, Va., was convicted in January on 56 counts of illegal distribution of a controlled substance, two counts of obstruction of justice, one count of health care fraud, and one count of conspiracy to commit health care fraud.
“Dr. Purpera violated the trust placed in him when he illegally prescribed powerful narcotics and defrauded important health care programs depriving Virginians of necessary funding,” Acting United States Attorney Bubar said today. “Today’s significant sentence is the product of years of work by an incredible group of our state and federal partners—the Virginia Attorney General’s Office, Department of Health and Human Services-Office of the Inspector General, Drug Enforcement Administration, and the Federal Bureau of Investigation.”
“Doctors and other healthcare providers who defraud our healthcare system and use their position to illegally distribute controlled substances not only waste taxpayer money but also put their communities in danger,” said Attorney General Herring. “I want to thank both our state and federal partners for their hard work on this case and continued collaboration on similar important cases.”
“Dr. Purpera placed his interests above those of the taxpayers and the patients he served. In the process, he compromised his integrity and violated the Hippocratic Oath,” said Maureen R. Dixon, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “We will continue to work with our state and federal law enforcement partners to protect our health programs and bring criminals to justice.”
Evidence presented at trial established that Purpera, for a period of approximately five years, wrote numerous prescriptions for Percocet, and Adderall, both Schedule II controlled substances, in the name of his wife, who had a different last name, on multiple occasions. The prescriptions were not for legitimate medical purposes and were outside the scope of Purpera’s medical practice.
In addition, the defendant falsified his medical records and sent millions of dollars in fraudulent bills to Medicare, Virginia Medicaid, and Anthem Insurance. The court ordered Purpera to pay over $2.3 million in restitution.
After a search warrant was executed at the Virginia Vein Institution in September 2016, Purpera told his employees to say, “I don’t recall” when questioned by federal investigators. To reiterate this point, Purpera showed an employee a video clip from the popular movie, “The Wolf of Wall Street,” in which numerous employees, when interviewed by federal law enforcement, say “I don’t recall, I don’t recall.”
The investigation of the case was conducted by the Department of Health and Human Services-Office of the Inspector General, the Drug Enforcement Administration, the Virginia Attorney General’s Medicaid Fraud Control Unit, the Federal Bureau of Investigation, and an Investigator with the United States Attorney’s Office. Assistant United States Attorneys Jonathan Jones and Randy Ramseyer, and Nicole Terry, a Special Assistant United States Attorney and an Assistant Attorney General assigned to the Virginia Attorney General’s Medicaid Fraud Control Unit, prosecuted the case for the United States.
Baltimore Man Pleads Guilty to Drug Distribution and Admits It Resulted in the Death of A VictimRead the Press Release
Baltimore, Maryland – Shannon Dorrell Marshall, age 43, of Baltimore, Maryland, pleaded guilty today to two counts of distribution of controlled substances, specifically a fentanyl analogue and heroin. Marshall admitted that a victim died as a result of his drug distribution. Fentanyl analogues are chemical compounds designed to have effects similar to fentanyl and can be just as deadly.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration, Baltimore District Office; Harford County Sheriff Jeffrey R. Gahler; Colonel Woodrow W. Jones III, Superintendent of the Maryland State Police; Chief Henry Trabert of the Aberdeen Police Department; Chief Charles Moore of the Bel Air Police Department; Chief Teresa Walter of the Havre de Grace Police Department; and Harford County State’s Attorney Albert Peisinger.
According to his guilty plea, on May 11, 2017, Harford County Sheriff’s Office detectives went to a home in Abingdon, Maryland, where a victim had been reported dead. An autopsy determined that the victim died of 4-Fluoroisobutyryl fentanyl and carfentanil intoxication. Detectives seized the victim’s phone and recovered messages from the victim arranging to purchase drugs from an individual known as “Cake,” and learned that Marshall was the source of the drugs sold to the victim. Further review of the phone revealed that the victim had been purchasing gel caps of heroin from “Cake” since October 2016.
As detailed in the plea agreement, on June 15, 2017, detectives conducted surveillance of Marshall and observed him engage in a hand-to-hand drug transaction. When detectives exited their vehicles to approach Marshall, he fled. Detectives were able to stop the person who had just purchased drugs from Marshall. The drugs were determined to be three gel caps of heroin and crack cocaine. On June 21, 2017, Harford County Task Force detectives executed a search warrant at Marshall’s residence and seized a bag containing 2.8 grams of cocaine. Marshall was arrested and agreed to waive his rights and speak to detectives, subsequently admitting to selling drugs to the overdose victim, as well as to the individual on June 15, 2020.
Marshall and the government have agreed that, if the Court accepts the plea agreement, Marshall will be sentenced to between 13 years and 15 years in federal prison. U.S. District Judge Ellen L. Hollander has scheduled sentencing for December 22, 2020 at 10 am.
United States Attorney Robert K. Hur commended the DEA, the Harford County Sheriff’s Office and the other members of Harford County Task Force, comprised of members of the Harford County Sheriff's Office, Maryland State Police, Aberdeen Police Department, Bel Air Police Department, Havre de Grace Police Department, and the Harford County States Attorney’s Office, for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Christopher J. Romano and Kim Y. Oldham, who are prosecuting the case.
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Arrested in Vacaville, Hayward Man Indicted for Being a Felon in Possession of FirearmsRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an indictment today against Elisio Munoz, 40, of Hayward, charging him with being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.
According to court documents, on Aug. 2, Munoz was arrested by police and found to be in possession of firearms. Munoz possessed the guns after previously being convicted of multiple felonies, including: vehicle theft, felon in possession of a firearm, possession of a controlled substance for sale, possession of a controlled substance, and reckless evading of a peace officer.
This case is the product of an investigation by the Vacaville Police Department and the Solano County District Attorney’s Office. Assistant U.S. Attorney Jason Hitt is prosecuting the case.
If convicted, Munoz faces 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 defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Albany Felon Pleads Guilty to Unlawful Firearm PossessionRead the Press Release
ALBANY, NEW YORK – Zaiqua Acosta, age 21, of Albany, pled guilty today to being a felon in unlawful possession of a firearm.
The announcement was made by Acting United States Attorney Antoinette T. Bacon and John B. DeVito, Special Agent in Charge of the New York Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
As part of his plea, Acosta admitted that, on May 5, 2020, in Albany, he possessed a Smith & Wesson .40 caliber pistol, loaded with nine rounds of .40 caliber ammunition. Law enforcement officers recovered the loaded pistol from Acosta’s front waistband on May 5. Acosta has been in custody since June 26, 2020.
Acosta is prohibited from possessing the firearm as a result of a May 6, 2016 conviction in Albany County Court for Criminal Possession of Stolen Property-Fourth Degree, a Class E Felony.
As a result of this conviction, Acosta faces up to 10 years in prison when he is sentenced by Senior United States District Judge Lawrence E. Kahn on January 21, 2021. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by the ATF and Albany Police Department, and is being prosecuted by Assistant U.S. Attorney Rachel Williams.
Albany County Man Arrested, Charged with Attempted Enticement of A MinorRead 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 Vernon Schermerhorn III, 51, of Coeymans Hollow, NY, was arrested and charged by criminal complaint with attempted enticement of a minor. The charge carries a mandatory minimum penalty of 15 years in prison, and a maximum of 30 years.
Assistant U.S. Attorney Kyle P. Rossi, who is handling the case, stated that according to the complaint, in September 2019, the defendant engaged in conversation on a teen chat website with a person he believed to be a 13 year old girl. The person was actually an undercover FBI Special Agent. As the conversation continued, the chat turned sexual in nature. “Brandon2901,” later identified as Schermerhorn, stated, “i am married but would like see u if u wanted and (expletive).” The Agent responded with, “that wud be cool.” While discussing what they would do together, the Agent said, “I don’t wanna get preggo!!” Schermerhorn responded, “its ok if u even did i got plan b pills or abortion i got a friend thats a doc.” The defendant also stated, “i got allot of cop friends to so we are cool.” Schermerhorn also asked the Agent multiple times to send naked photos.Subsequent investigation determined that the defendant is a registered sex offender, who was convicted in 2003 in New York State Court of disseminating indecent material to a minor via computer for sexual contact. Schermerhorn was sentenced to 10 years’ probation.
The complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia, and the New York State Police, under the direction of Acting Major Barry Chase.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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ATM Skimming Group Arrested on Federal ChargesRead the Press Release
Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces the unsealing of an indictment charging Adrian Kiraly, a/k/a “Bighi,”Andrei Andrei, a/k/a “Tony,” Bogdan Ardei, Nelu Onica, Vergiu Corneliu Galbenu, a/k/a “Cornel,” Ovidiu Meczak, a/k/a “Ovi,” Nedal Al-Khomos, Ovidiu Gabriel Musteata, and Doru Maris with conspiracy to commit access device fraud. If convicted, each faces a maximum penalty of seven years and six months. The indictment also notifies the defendants that the United States is seeking a money judgment in the amount of $112,780, the proceeds of the offense.
According to the indictment, between March 2019 and June 2020, the defendants stole debit/credit card information and funds from victims by placing skimmers on ATMs. After they removed the skimmers, the defendants downloaded the stolen account numbers and PIN numbers and re-encoded that data onto blank cards, thereby creating counterfeit or unauthorized debit or credit cards. The conspirators installed skimming devices and/or conducted these “cash out” operations in Florida, Louisiana, Georgia, Mississippi, and New York.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by Federal Bureau of Investigation, with assistance from the United States Secret Service. It will be prosecuted by Assistant United States Attorney Julie Hackenberry.
Wednesday 23 September 2020
Wichita Man Sentenced to 10 Years for Two Armed RobberiesRead the Press Release
WICHITA, KAN. – A Wichita man was sentenced today to 10 years in federal prison for committing two armed robberies at local hotels, U.S. Attorney Stephen McAllister said.
Darrell E. Black, 27, Wichita, Kan., pleaded guilty to two counts of commercial robbery. In his plea, he admitted that on May 27, 2017, he robbed the Extended Stay America at 9450 E. Corporate Hills, and on May 29, 2017, he robbed the Days Inn and Suites at 7321 E. Kellogg, both in Wichita.
In both robberies, he held a clerk at gunpoint while demanding money from the hotel cash drawer.
McAllister commended the Wichita Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Lanny Welch for their work on the case.
West Virginia Man Indicted on Child Exploitation ChargesRead the Press Release
BIRMINGHAM, Ala. - A federal grand jury today indicted a West Virginia man on multiple charges of child exploitation announced, U.S. Attorney Prim F. Escalona and U.S. Immigration and Customs Enforcement Homeland Security Investigations Special Agent in Charge Robert Hammer.
A four-count indictment filed in U.S. District Court charges ANDREW DAVIS, 37, with traveling to engage in sexual conduct with a minor as well as child pornography and obscene material charges. Davis is charged with one-count of travelling from West Virginia to Madison County, Alabama with the intent to engage in illicit sexual conduct, and one-count of production of child pornography between November 2019 and January 2020. Davis is also charged with one-count of possessing child pornography in January 2020, and one-count of transferring obscene material to a minor between December 2019 and January 2020.
Each count of production of child pornography and travel with intent to engage in illicit sexual conduct carries a maximum penalty of 30 years in prison.
Each count of possession of child pornography and transfer of obscene material to a minor carries a maximum penalty of 10 years in prison.
Homeland Security Investigations in Huntsville investigated the case, along with Huntsville Police Department, and the Madison County Sheriff’s Office. Assistant U.S. Attorney R. Leann White is prosecuting the case.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Wake County Man Sentenced to Ten Years in Federal PrisonRead the Press Release
GREENSBORO, N.C. - A Cary man was sentenced today in federal court in Greensboro for distributing heroin to a Durham resident who later died of an overdose, announced United States Attorney Matthew G.T. Martin of the Middle District of North Carolina.
The Honorable William L. Osteen, Jr., sentenced Kane Conrad GRAVES, 30, of Cary, North Carolina, to a 120 month term of imprisonment on charges of distributing heroin. In addition, GRAVES was ordered to serve three years of supervised release after completing his sentence. GRAVES pleaded guilty in June 2020.
According to court documents, in August 2017, an overdose victim was found deceased in a Durham apartment. An autopsy was later performed and the Medical Examiner determined that the victim died of “acute heroin and alcohol intoxication.” Investigators reviewed surveillance footage from the apartment complex which showed the victim letting a male, later identified as GRAVES, into the building. Investigators also obtained text messages from the victim’s cell phone, which indicated the victim sent a Facebook message seeking “pills.” GRAVES responded that he could ask around for pills but he currently had “dog food on deck.” (“Dog food” is a street name for heroin). The text messages between the two continued up to the point that GRAVES arrived at the apartment. The text messages further show that victim arranged and paid for an Uber driver to pick up GRAVES in Apex and transport him to Durham.
GRAVES was later interviewed and admitted that the victim did contact him a few months before her death for the purpose of obtaining controlled substances. He further admitted to taking an Uber from Cary to the victim’s apartment on the night of the death, but claimed he did not bring any drugs.
U.S. Attorney Martin commends the work of the Durham County Sheriff’s Office and the Federal Bureau of Investigation, which investigated the case, Assistant Attorney General Benjamin Zellinger of the North Carolina Attorney General’s Office, and Assistant United States Attorney Michael A. DeFranco.
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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Violent Drug Trafficker Sentenced to 11 Years in Federal PrisonRead the Press Release
Spokane – William D. Hyslop, United States Attorney for the Eastern District of Washington, announced that Jesus Valencia-Morfin, age 31, of Yakima, Washington, was sentenced today after having pleaded guilty on February 19, 2020, to Possession with Intent to Distribute 500 Grams or More of Methamphetamine. Senior District Court Judge Wm. Fremming Nielsen sentenced Valencia-Morfin to an 11-year term of imprisonment, to be followed by a 5-year term of court supervision after he is released from federal prison.
According to information disclosed during court proceedings, Valencia-Morfin was identified through a long-term joint investigation led by the Bureau of Alcohol, Tobacco, Firearms & Explosives (“ATF”) and the United States Drug Enforcement Administration (“DEA”) into drug and firearms trafficking in the Grant County, Washington, and surrounding areas. Through the investigation, which included a court-authorized wire-tap, Valencia-Morfin was identified as a drug trafficker who primarily worked as a transporter of multiple kilogram-quantities of methamphetamine to various customers throughout Eastern Washington.
In July 2019, search warrants were executed at multiple locations, including Valencia-Morfin’s residence in the Yakima, Washington area. During that search, multiple firearms were located in Valencia-Morfin’s bedroom, as well as a ballistic vest and user-amounts of methamphetamine. Approximately 6 pounds of methamphetamine was located in the trunk of the vehicle Valencia-Morfin owned and utilized to transport controlled substances.
One of the firearms, a Smith & Wesson SDS Model SD9VE 9mm semi-automatic handgun, seized from Valenica-Morfin’s residence was identified through ATF’s National Integrated Ballistics Network (“NIBIN”) as being the firearm utilized to shoot two victims on December 24, 2018, in Yakima County. One of the victims was hospitalized as a result of that shooting. Valencia-Morfin was also charged by the State of Washington for the conduct arising from the shootings and, as part of a global resolution with the federal drug trafficking case, pled guilty in Yakima County Superior Court (Case Number 2010032739) to two counts of Assault 2 with a Deadly Weapon Enhancement.
United States Attorney Hyslop said “This case highlights the use of an important and invaluable technology -- NIBIN. Through NIBIN, law enforcement can now link seemingly random cases to one firearm and bring the individual who used that firearm to justice. The United States Attorney’s Office for the Eastern District of Washington and our federal, state, local and Tribal law enforcement partners will use every tool at our disposal to investigate and prosecute dangerous armed criminals.”
“The sentence handed down to Mr. Valencia-Morfin is a reflection of his blatant disregard for the rule of law,” said ATF Seattle Special Agent in Charge Jonathan T. McPherson. “Sentences such as this one removes a dangerous offender from our streets and will hopefully serve as a deterrent to others.”
This case was made possible by investigative leads generated from the ATF’s National Integrated Ballistic Information Network (“NIBIN”). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
This case was prosecuted under the Project Safe Neighborhoods (PSN) program. PSN is a federal, state, and local law enforcement collaboration to identify, investigate, and prosecute individuals responsible for violent crimes in our neighborhoods. The U.S. Attorney’s Office is partnering with federal, state, local, and tribal law enforcement to specifically identify the criminals responsible for violent crime in the Eastern District of Washington and pursue criminal prosecution.
This case is also part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. The OCDETF program provides supplemental federal funding to the federal and state agencies involved in the investigation of drug-related crimes. This OCDETF investigation is being conducted by the DEA and ATF.
This case was investigated by the Spokane District Office of the Drug Enforcement Administration, the Spokane Office of the Bureau of Alcohol, Tobacco, Firearms & Explosives, the Moses Lake Police Department, the Grant County Sheriff’s Office, the Ephrata Police Department, Yakima County Sheriff’s Office, the Union Gap Police Department, the Grandview Police Department, the Sunnyside Police Department, the Washington State Patrol, and the Northwest High Intensity Drug Trafficking Area. This case was prosecuted by Caitlin Baunsgard, an Assistant United States Attorney for the Eastern District of Washington.
Venice Man Sentenced to 13 Years in Federal Prison for Selling Fentanyl that Caused Victim’s Fatal Drug OverdoseRead the Press Release
LOS ANGELES – An admitted drug dealer was sentenced today to 156 months in federal prison for selling a fatal dose of the powerful opioid fentanyl to a 19-year-old man who had been residing at a sober living home.
Julian Miles Mayers-Johnson, 33, of Venice, was sentenced by United States District Judge Otis D. Wright II. Mayers-Johnson pleaded guilty in October 2019 to one count of possession with intent to distribute fentanyl.
On October 19, 2018, outside a McDonald’s restaurant in Venice, Mayers-Johnson sold one-half gram of fentanyl to the victim, who was residing at a sober living home in the Beverlywood neighborhood of Los Angeles. The victim suffered a fatal drug overdose the following day after ingesting the fentanyl that Mayers-Johnson supplied.
A search of the victim’s cell phone resulted in law enforcement determining that Mayers-Johnson sold the fatal dose of fentanyl to the victim.
In April 2019, Mayers-Johnson was arrested on a federal criminal complaint in this matter and has remained in federal custody since then.
“Less than two months after (the victim’s) death, (Mayers-Johnson) was still dealing drugs, including fentanyl,” prosecutors wrote in their sentencing memorandum. “(Mayers-Johnson’s) criminal history demonstrates his unwillingness to conform his behavior to the laws of his community – even after causing someone’s death.”
This matter was investigated by the Drug Enforcement Administration and the High Intensity Drug Trafficking Area (HIDTA) Opioid Response Team, which is tasked with investigating suspected opioid-related overdose deaths in Los Angeles County.
This case was prosecuted by Assistant United States Attorneys J. Jamari Buxton of the Public Corruption and Civil Rights Section, and Ali Moghaddas of the General Crimes Section.
United States Attorney's Office District of Arizona August 2020 Immigration and Border Crimes ReportRead the Press Release
I. Illegal Reentry After Deportation (8 U.S.C. 1326)
301 individuals were charged in August with illegal reentry
A. 196 of those 301 individuals had previously been convicted of non-immigration criminal offenses in the U.S.
Of the 196 individuals with non-immigration criminal records:
1. 29 had violent crime convictions, including:
2 individuals had homicide convictions
4 individuals had sex offense convictions
9 individuals had domestic violence convictions2. 14 had property crime convictions
3. 44 had DUI convictions
4. 99 had drug crime convictions
B. 153 of those 196 individuals had been deported three or more times
II. Alien Smuggling (8 U.S.C. 1324)
24 individuals were charged in August with alien smuggling
III. Illegal Entry (Criminal Consequence Initiative) (8 U.S.C. 1325)
0 individuals were charged in August with illegal entry on the CCI calendar
Criminal conviction information is based on preliminary criminal history reports provided by the arresting agency.
These numbers represent United States Attorney's Office prosecutions only. These numbers do not include individuals apprehended by immigration enforcement officials and subjected solely to administrative process.
*The Department of Homeland Security instituted a policy in late March of expeditiously returning aliens who illegally enter the United States rather than detaining them. The decreased number of individuals presented to this Office for prosecution coincides with the implementation of that policy and other COVID-19 related border restrictions.
RELEASE NUMBER: 2020-074_August Immigration and Border Crimes Report
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.United States Attorney Lawrence Keefe Announces Almost $500,000 in Housing Assistance Grants for Victims of Human TraffickingRead the Press Release
TALLAHASSEE, FLORIDA – Lawrence Keefe, United States Attorney for the Northern District of Florida, announced that the Florida Center for Children and Youth, of Tallahassee, Florida, received $499,353 from the Department of Justice Office for Victims of Crime (OVC) Housing Assistance Grants for Victims of Human Trafficking Program. Nationally, the Department of Justice awarded nearly $101 million in funding to combat human trafficking and provide vital services to trafficking victims throughout the United States.
“I am pleased that the Florida Center for Children and Youth will be able to use this funding to provide housing assistance to victims of human trafficking,” said U.S. Attorney Keefe. “The U.S. Attorney’s Office is committed to working closely with our law enforcement partners to combat these horrendous crimes in Northern Florida, but victims’ struggles do not end when they break free of the criminals who exploit them. With the assistance of these grants, communities throughout our District can continue to provide them with the critical support that they need.”
The Department of Justice announced Monday that the Office for Victims of Crime (OVC) awarded over $97.4 million to state, local and tribal jurisdictions, service providers and task forces all over the country, while the department’s Office of Justice Program’s National Institute of Justice awarded the remaining $3.5 million to support research and evaluation on human trafficking.
The Housing Assistance Grants for Victims of Human Trafficking Program provides six to 24 months of transitional or short-term housing assistance for trafficking victims, including rental, utilities or related expenses, such as security deposits and relocation costs. The grants also provide funding to help victims locate permanent housing, secure employment and receive occupational training and counseling.
“Human trafficking is a massive global enterprise with roots in cities and communities here in America and across the world,” said OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan. “The Office of Justice Programs is using all the resources at its disposal to help our state, local and tribal partners uncover and eradicate trafficking operations and help victims open the door to a new life.”
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/ovchumantraffickingfactsheet.pdf
More information about OJP and its components can be found at www.ojp.gov.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
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.
Press Release - Human Trafficking Grant AnnouncementUlster County Dentist Arrested for Illegally Dispensing OxycodoneRead the Press Release
ALBANY, NEW YORK – Vivian Letizia, age 62, of Stone Ridge, New York, was arrested yesterday on a criminal complaint charging her with illegally dispensing controlled substances outside the course of professional practice and for no legitimate medical purpose.
The announcement was made by Acting United States Attorney Antoinette T. Bacon; Special Agent in Charge Ray Donovan, U.S. Drug Enforcement Administration (DEA), New York Division; and Joshua Vinciguerra, Director of the New York State Department of Health, Bureau of Narcotic Enforcement (BNE).
A criminal complaint alleges that Letizia, a dentist, wrote prescriptions for oxycodone for four individuals and filled those prescriptions herself at pharmacies in Ulster County, and also ordered oxycodone to her dental practice, all exclusively for her own personal consumption.
The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
Letizia appeared yesterday in Albany before United States Magistrate Judge Daniel J. Stewart, and was released with conditions.
If convicted, Letizia faces up to 20 years in prison, at least 3 years of post-imprisonment supervised release, and a maximum $1 million fine. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the DEA Albany District Office’s Tactical Diversion Squad, and the New York State BNE, and is being prosecuted by Assistant U.S. Attorney Ashlyn Miranda.
Assistant U.S. Attorney Christopher Moran, of the U.S. Attorney’s Office, Civil Division, is assisting in the investigation.
U.S. Attorney’s Office Settles Lawsuit with Chicago Auto Dealership over Alleged Pollution in Chicago RiverRead the Press Release
CHICAGO — The U.S. Attorney’s Office for the Northern District of Illinois announced today that it reached a settlement with a Chicago auto dealership to resolve claims that it discharged pollutants into the Chicago River and created a hazardous obstruction to navigation.
The U.S. Attorney’s Office filed a lawsuit last year in U.S. District Court in Chicago on behalf of the U.S. Army Corps of Engineers, alleging that JOSEPH J. PERILLO and PERILLO BMW INC. violated the Rivers and Harbors Act and the Clean Water Act by unlawfully placing an obstruction in the North Branch of the Chicago River. The suit claimed that Perillo and his company allowed a steel river wall to collapse into the river in October 2018 and subsequently cut off the wall at the water level, leading to a discharge of pollutants into the river and creating a hazardous obstruction to navigation.
Under the terms of a consent decree, Perillo and his company denied liability but agreed to pay a civil penalty of $80,000 to the U.S. government. In addition, Perillo and his company agreed to remove the collapsed wall from the river and construct a safe replacement. The wall is located on land they own at the descending bank of the river, in the 1300 block of North Branch Street on Goose Island in Chicago.
The consent decree was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois. The investigation was led by the U.S. Army Corps of Engineers, with collaboration from the U.S. Coast Guard Marine Safety Unit Chicago; U.S. Coast Guard Investigative Service; U.S. Environmental Protection Agency; Illinois Department of Natural Resources; City of Chicago Transportation Department; City of Chicago Public Health Department; Chicago Police Department; and the North Cook County Soil and Water Conservation District.
The Corps of Engineers’ Regulatory Program is committed to protecting the nation’s aquatic resources and navigation capacity, while allowing reasonable development through fair and balanced decisions. Part of this mission includes bringing enforcement actions when regulated actions are taken without a permit, as occurred in this case. Alleged violators are given an opportunity to remedy these violations, and if that is not successful, the Corps of Engineers can bring an action to force restoration of the site and possible civil monetary and/or criminal penalties.
To learn more about the Corps’ Chicago District Regulatory Mission, log on to http://www.lrc.usace.army.mil/Missions/Regulatory.aspx.
Tyndall Man Sentenced for Firearm Charge and Failure to Register as Sex OffenderRead the Press Release
United States Attorney Ron Parsons announced that a Tyndall, South Dakota, man convicted of Felon in Possession of a Firearm and Failure to Register as a Sex Offender and was sentenced on September 21, 2020, by Chief Judge Roberto A. Lange, U.S. District Court.
Jose Eduardo Rodriguez, age 44, was sentenced to 52 months in federal prison for each charge, followed by 3 years of supervised release for the firearm charge and 5 years of supervised release for the failure to register as a sex offender charge, to run concurrently, forfeiture of the firearm and all ammunition found in his possession, and a special assessment to the Federal Crime Victims Fund in the amount of $200.
Rodriguez was indicted on both charges by a federal grand jury on February 11, 2020. He pled guilty to both charges on June 30, 2020.
The convictions stem from an incident that occurred on December 26, 2019, during a traffic stop, Rodriguez was found with an unregistered firearm and multiple rounds of ammunition. Rodriguez, knowingly possessed a firearm made from a rifle, with a barrel of less than sixteen inches in length, which was not registered to him in the National Firearms Registration and Transfer Record. Further, Rodriguez was convicted of Fourth Degree Rape in July 1998. As a result of his conviction, he is required to register as a sex offender. Between August 18, 2019, and December 26, 2019, the date of the traffic stop, Rodriguez had failed to properly register as a sex offender and update his registration.
The firearm charge is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
The firearm charge is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
These cases were investigated by the Murdo Police Department, the Lyman County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the U.S. Marshals Service. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Rodriguez was immediately turned over to the custody of the U.S. Marshals Service.
Two Charged with Arson During Civil Unrest in MadisonRead the Press Release
MADISON, WIS. – United States Attorney Scott C. Blader announced today that two individuals have been charged with attempting to damage and destroy by means of fire two commercial buildings during the civil unrest that occurred in Madison, Wisconsin on August 25, 2020. Anessa Fierro, 27, and Willie Johnson, 45, both of Madison, are charged in two-count complaints filed in U.S. District Court this week.
The complaints allege that Fierro and Johnson broke glass windows and doors in two commercial buildings, poured liquid from a gasoline container into the buildings, and attempted to ignite the fluid. The complaint alleges that Fierro and Johnson successfully started a fire at one building and were attempting to ignite the liquid poured into the second building when Madison police officers arrived on scene. According to the complaint, the second building contained residential apartments, some of which were occupied at the time of the attempted arson. Fierro and Johnson were identified through video surveillance recovered as part of the investigation.
Fierro and Johnson were arrested in Madison today by ATF agents and Madison police officers. Their initial appearances in U.S. District Court in Madison have not been scheduled.
“Arson is not protest, it is a crime that places the entire community at extreme risk,” said U.S. Attorney Blader. “Those who attempt to terrorize the community through such violent crimes will be vigorously prosecuted by the United States Department of Justice.”
“Arson is a phenomenally violent crime,” said ATF Special Agent in Charge Terry Henderson, of the St. Paul Field Division. “A fire can ravage buildings in mere minutes, putting every occupant or passerby at risk of serious injury or death. Arsonists must be held accountable for their actions.”
If convicted, Fierro and Johnson face a mandatory minimum penalty of five years and a maximum of 20 years in federal prison on each count. The charges against them are the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Madison Police Department. Assistant U.S. Attorney Chadwick M. Elgersma is handling the prosecution.
You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Two Box Elder Men Indicted on Multiple Fraud ChargesRead the Press Release
United States Attorney Ron Parsons announced that two Box Elder, South Dakota, men has been indicted by a federal grand jury for Conspiracy to Commit Wire Fraud, Wire Fraud, and Unauthorized Access to a Protected Computer to Defraud.
Jacob Sheldon LaFlash, age 25, and Bryan Bernhold, age 25, were indicted on January 22, 2020. LaFlash appeared before U.S. Magistrate Judge Daneta L. Wollman on January 24, 2020, and pled not guilty to the Indictment. Bernhold appeared before U.S. Magistrate Judge Daneta L. Wollman on September 18, 2020, and also pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and up to $900 to the Federal Crime Victims Fund. Restitution may also be ordered.
Count 1 of the Indictment alleges that beginning on or about October 5, 2017, through on or about May 1, 2018, both LaFlash and Bernhold knowingly and intentionally conspired with each other, to commit wire fraud.
Counts 2 through 8 allege individual counts of wire fraud, and Count 9 alleges unauthorized access to a computer for the purpose of fraud.
The charges are merely accusations and LaFlash and Bernhold are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Department of Homeland Security. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
LaFlash and Bernhold were released on bond pending trial. LaFlash’s trial date has been set for May 31, 2021.
Troutville Man Pleads Guilty to Selling Stolen Night Vision Goggle ComponentsRead the Press Release
ROANOKE, Va. – Steven Rosine, a former employee at a production facility in Roanoke, Virginia that manufactures night vision devices used by the U.S. military, pleaded guilty yesterday in U.S. District Court in Roanoke to stealing night vision devices and other component parts, and selling them over the internet. Acting United States Attorney Daniel P. Bubar and Special Agent in Charge Raymond Villanueva for the Homeland Security Investigations (HSI) Washington, D.C. field office, made the announcement today.
“This defendant used his position with a trusted government contractor to steal critical defense products and parts to sell for his own profit,” Acting United States Attorney Daniel P. Bubar said today. “I am grateful for the hard work of Homeland Security Investigations, the Roanoke County Police and our prosecution team for investigating Rosine’s thefts and bringing him to justice today.”
“Rosine chose to steal regulated defense materials used to make military equipment and sell it out on the open market to make himself a profit without regard for who may end up receiving the materials on the other end or for what purpose they may be used,” said Special Agent in Charge Raymond Villanueva for the Homeland Security Investigations (HSI) Washington, D.C. field office. “Homeland Security Investigations is dedicated to protecting our national security by investigating those who seek to divert sensitive materials for personal gain.”
Rosine, 47, waived his right to be indicted and pleaded guilty yesterday to a one count Information charging him with interstate transportation of stolen property. At sentencing, Rosine faces a maximum statutory penalty of up to 10 years in prison and/or a fine of up to $250,000.
According to court documents, from 1996 to 2019, Rosine was employed as a production engineer at Harris Corporation’s night vision manufacturing facility in Roanoke, Va. During his employment Rosine had access to night vision devices and various components used in device manufacturing.
Between approximately 2010 and 2014, Rosine stole approximately 66 pounds of a soft metal, indium, a crucial element used in the night vision manufacturing process. He sold the stolen indium on the Internet to a company in California for his own personal financial gain, yielding a profit of $51,622.
Beginning in 2012 and continuing through 2018, Rosine stole various image intensifier tubes, night vision systems, and component parts from Harris Corporation. Rosine listed these items for sale on an Internet website. Rosine maintained a dedicated PayPal account, into which he deposited more than $119,000 in proceeds from his illicit sale of night vision devices.
A majority of the night vision devices sold by Rosine are classified as third generation image intensifier tubes and were manufactured using classified production data. They are categorized by the Department of State, Directorate of Defense Trade Controls (DDTC) as “Defense Articles,” which are subject to control under the International Trafficking in Arms Regulations (ITAR) and the jurisdiction of the Department of State.
The investigation of the case was conducted by Homeland Security Investigation and the Roanoke County Police Department. Assistant United States Attorney Kristin B. Johnson prosecuted the case for the United States, in coordination with William Mackie, Counterintelligence & Export Control Section, National Security Division, U.S. Department of Justice.
Trio Charged with Sex Trafficking of a MinorRead the Press Release
Three defendants made initial appearances in federal court Tuesday after being charged with the sex trafficking of children, announced U.S. Attorney Trent Shores.
Dominique Laron Morgan, 25, of Tulsa; Rontaysha Leann Cox, 26, of Wichita, Kansas; and Treveon Marquise Cato, 22, of Tulsa, were charged in an August indictment, which was unsealed yesterday after their initial appearances.
The trio allegedly recruited, enticed, harbored, and advertised a minor to participate in sexual activity, profiting from her exploitation. Advertisements for the teenager were discovered on a website promoting prostitution and soliciting sex acts in exchange for money.
“The targeted trafficking and exploitation of minors is despicable. I am dismayed that our community continues to see child sex trafficking ventures in operation, and I am sickened that there is a customer-base for such a venture to even exist. We must target the supply and demand,” said U.S. Attorney Trent Shores. “My office will do everything we can to protect our children from harm and exploitation. We will do so in partnership with agencies like the Tulsa Police Department and Homeland Security Investigations, who are indispensable in these types of investigations.”
Two of the defendants face additional charges. Morgan is further charged with possession of marijuana with intent to distribute, possession of a firearm in furtherance of a drug trafficking crime, felon in possession of a firearm and ammunition, and coercion and enticement of a minor to engage in sexual activity. Cox is also charged with coercion and enticement of a minor to engage in sexual activity and possession of material involving the sexual exploitation of minors.
The Tulsa Police Department Vice-Human Trafficking Unit, Immigration and Customs Enforcement’s Homeland Security Investigations, and the Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigative agencies. Assistant U.S. Attorney Edward Snow is prosecuting the case.