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30 October 2020
Previously Convicted Former Physician Pleads Guilty to Wire Fraud, Health Care Fraud, and Aggravated Identity TheftRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, announced that SPYROS PANOS, a former orthopedic surgeon, who was previously convicted of health care fraud, pled guilty yesterday before U.S. District Judge Kenneth M. Karas to charges of wire fraud, health care fraud, and aggravated identity theft, in connection with a scheme in which he assumed the identity of a licensed orthopedic surgeon and obtained over $876,000 in payments for reviewing patient files in connection with healthcare appeals and Workers Compensation cases.
Acting U.S. Attorney Audrey Strauss said: “Spyros Panos, a former surgeon who surrendered his medical license after a prior conviction in this District for health care fraud, has admitted to committing health care fraud again, this time by impersonating a licensed doctor. Now, for a second time, Panos awaits sentencing for his criminal conduct.”
According to the allegations in the Indictment to which PANOS pled guilty, PANOS, an unlicensed physician, perpetrated a scheme to defraud medical peer review companies by impersonating a licensed orthopedic surgeon practicing in Westchester County (“Doctor-1”). Among other things, PANOS submitted Doctor-1’s credentials to peer review companies and conducted peer reviews using Doctor-1’s name and credentials. During the course of the scheme, PANOS defrauded the peer review companies of $876,389.97.
According to court documents, in advance of his November 2, 2020, trial, PANOS submitted proposed defense exhibits that included fraudulent emails and records.
PANOS, 52, of Hopewell Junction, New York, pled guilty to one count of wire fraud, which carries a maximum sentence of 20 years in prison, one count of health care fraud, which carries a maximum sentence of 10 years in prison, and one count of aggravated identity theft, which carries a mandatory minimum sentence of two years in prison. The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
PANOS is scheduled to be sentenced by Judge Karas on March 16, 2021, at 10:00 a.m.
In connection with his plea, PANOS agreed to forfeit $876,389.97, and to pay restitution in the same amount.
Ms. Strauss praised the outstanding investigative work of the U.S. Postal Inspection Service, the Office of the Inspector General of the U.S. Department of Health and Human Services, and the New York Inspector General for their assistance.
The case is being prosecuted by the Office’s White Plains Division. Assistant U.S. Attorneys Margery B. Feinzig and Lindsey Keenan are in charge of the prosecution.
Philadelphia Woman Who Stole over $2 Million in Tax Refunds and also Committed Real Estate Fraud Sentenced to 8 ½ YearsRead the Press Release
PHILADELPHIA - United States Attorney William M. McSwain announced that Vontia Jones, 39, of Philadelphia, PA, was sentenced to eight and a half years in prison, three years of supervised release, and ordered to pay $2,319,278 in restitution by United States District Judge Joel H. Slomsky for obtaining the personal identifying information of people and using that information to file more than 900 fraudulent tax returns with the IRS, netting her over $2,319,000 in fraudulent refunds. The defendant also engaged in real estate fraud by purporting to sell properties to buyers using fraudulent documents.
The defendant pleaded guilty in August 2019 to more than 30 fraud charges, including conspiracy to make false claims to the IRS; making, and aiding and abetting the making of false claims to the IRS; wire fraud; and aggravated identity theft. Jones operated a business that she identified by various names including “Jones Tax Service,” “Earned Income Credit Unit,” “EIC Unit,” and “Eelysium,” out of her home in the 1400 block of West Cayuga Street in Philadelphia for a period of roughly seven years. Together with her co-conspirators, Jones filed or directed others to file over 900 fraudulent tax returns claiming fictious self-employment income resulting in tax refund payouts by the IRS of more $2,319,000.
The conspirators solicited the personal information of individuals and their dependents under the guise of getting them “tax money,” even if they never worked. Jones designed flyers advertising her services that stated: “Don’t you deserve some income tax money too? $750 [per child] welfare social security unemployment disability even if you never had a job.” Each of the returns submitted to the IRS was submitted by the defendant or her conspirators as self-prepared, as if it had been done by the individual taxpayer whose information had been stolen.
In addition to the tax return scheme, Jones also organized and operated a scheme to file phony deeds for multiple residential properties in Philadelphia, purporting to transfer ownership of the houses in order to sell them for a profit. Th defendant would research homes on real estate websites, typically targeting those where the owner had died or moved away, and would charge several thousand dollars to sell someone else one of these houses that she “deeded up.”
“Jones’ greed impacted the lives of many hundreds of victims, and her shameful actions had severe consequences for these innocent people,” said U.S. Attorney McSwain. “Not only did she and her co-conspirators steal personal information in order steal tax return money from the government, but also she sold people’s houses right out from underneath them to other people who believed that they were buying property from her legitimately. For her actions, she will now spend the better part of a decade in prison.”
“The degree to which Vontia Jones and her co-conspirators went in order to perpetrate this scheme is astounding,” said IRS Criminal Investigation Special Agent in Charge Thomas Fattorusso. “Not only did Vontia Jones steal the identities of unwitting individuals, she also stole millions of dollars from the US government; and ultimately US taxpayers. Today, she stands a convicted felon who will spend years in federal prison.”
The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service, and is being prosecuted by Assistant United States Attorney Anthony J. Wzorek.
Philadelphia Man Convicted of Narcotics, Firearms Charges at TrialRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Sunny Sok, 30, of Philadelphia, PA, was convicted at trial of firearms and narcotics offenses arising from his illegal possession of a firearm and more than 50 grams of methamphetamine.
In June 2019, Sok was charged by Indictment with possession with intent to distribute more than 50 grams of methamphetamine, possession of a firearm during a drug trafficking crime, and being a felon in possession of a firearm. In April 2019, the defendant was stopped by a Philadelphia Police officer for a traffic violation. The officer then learned that the vehicle’s registration was expired and that there was an open arrest warrant out for the vehicle’s owner for probation violations. After discovering this information, the officer asked the defendant to exit the car. When Sok opened the door, the officer observed drug paraphernalia inside. Upon a further search of the vehicle, the officer recovered 50 grams of methamphetamine, over 300 pills of counterfeit oxycodone, a digital scale, and a loaded gun.
“The crime of being a felon in possession of a firearm is a serious offense, especially when the firearm is used in furtherance of drug dealing. This trial victory is an important step in the direction of making Philadelphia safer, when the City is currently suffering from an epidemic of violent crime and insidious drug dealing,” said U.S. Attorney McSwain. “My Office is determined to get dangerous, repeat offenders off the streets and behind bars.”
“This case is a good example of our law enforcement partners working with ATF’s crime gun intelligence to remove repeat offenders from the streets of our communities,” said Matthew Varisco, Special Agent in Charge of ATF’s Philadelphia Field Division. “A federal jury has convicted this defendant of federal crimes, so he is no longer in a position to endanger anyone else.”
The case was investigated by the City of Philadelphia Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives, and is being prosecuted by Assistant United States Attorney Anita Eve.
Philadelphia Man Admits Role in Fentanyl Distribution ConspiracyRead the Press Release
CAMDEN, N.J. – A Philadelphia man today admitted his role in a fentanyl distribution conspiracy, U.S. Attorney Craig Carpenito announced.
Jonathan Rivera Pagan, 37, pleaded guilty by videoconference before U.S. District Judge Noel L. Hillman to an information charging him with conspiring to distribute and possess with intent to distribute 400 grams or more of fentanyl.
According to documents filed in this case and statements made in court:
In early 2020, Rivera Pagan and his conspirator, Ronal Alberto Hernandez Pinales, met and communicated about fentanyl trafficking and firearms. On March 2, 2020, Rivera Pagan and Hernandez Pinales arranged to deliver fentanyl to another individual.
On March 2, 2020, Rivera Pagan and Hernandez Pinales drove separately to the parking lot of a building in Gloucester County to conduct the planned fentanyl transaction. Shortly thereafter, Rivera Pagan and Hernandez Pinales fled from the parking lot, after seeing what they believed to be law enforcement presence in the area. Rivera Pagan was later arrested in the parking lot of a nearby bar, and Hernandez Pinales was arrested near a highway. Law enforcement officers recovered approximate 900 grams of fentanyl from Hernandez Pinales’ car, as well as cellphones from Rivera Pagan and Hernandez Pinales that contained drug-related communications.
The charge to which Pagan pleaded guilty carries a mandatory minimum penalty of 10 years in prison, a maximum penalty of life in prison and a fine of up to $10 million. Sentencing is scheduled for March 5, 2021.
U.S. Attorney Carpenito credited special agents and task force officers with the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson in Newark, with the investigation leading to today’s plea. He also thanked the Gloucester County Prosecutors Office, the East Greenwich Police Department, and the N.J. State Police Canine Tactical Applications Group for their assistance.
The government is represented by Assistant U.S. Attorney Sara A. Aliabadi of the U.S. Attorney’s Office Criminal Division in Camden.
The count of conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl against Hernandez Pinales remains pending, and he is presumed innocent unless proven guilty.
Pharmacist Sentenced to Prison for Prescription Drug ConspiracyRead the Press Release
ALEXANDRIA, Va. – A licensed pharmacist who owned and operated CARE4U Pharmacy in Manassas was sentenced today to two years in prison and ordered to pay $53,100 in forfeiture for illegally distributing prescription drugs, including over 9,000 oxycodone pills, Adderall, and Xanax.
“Our office will continue to diligently prosecute those who abuse public trust and choose to put illegal profits over peoples’ lives, including pharmacists like George Stephen Appiah who decide to moonlight as a drug trafficker,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “In addition to seeking the appropriate prison sentence in these cases, our office will ensure that drug traffickers do not get to keep the ill-gotten gains they have made from poisoning the community.”
According to court documents, Appiah, 48, of Manassas, filled at least 128 fake or fraudulent prescriptions, including 85 prescriptions for oxycodone, brought to the pharmacy by his two co-conspirators (identified in court filings as CC-1 and CC-2). The forged prescriptions were written in the names of CC-1, CC-2, or any one of at least 37 other individuals. Appiah provided CC-1 and CC-2 the names and medical credentials of at least five unwitting doctors for use in forging the prescriptions, and provided templates of the doctors’ prescription pads, so that CC-1 and CC-2 could “Photoshop” the image and make the fake prescriptions look legitimate.
“The successful outcome of this investigation underlines the commitment of the FBI and its partners to combatting the opioid epidemic in our nation,” said James A. Dawson, Special Agent in Charge of the FBI Washington Field Office’s Criminal Division. “The public must have confidence in medical professionals who care for others, and the FBI will continue to investigate those who abandon their responsibilities and endanger others by engaging in criminal activity. The misuse of opioids can be deadly, and aggressively pursuing those who illegally distribute prescription drugs makes a positive and lasting impact on our communities.”
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; James A. Dawson, Special Agent in Charge of the FBI Washington Field Office’s Criminal Division; and Jarad L. Phelps, Chief of Prince William County Police, made the announcement after sentencing by Senior U.S. District Judge T.S. Ellis III.
Assistant U.S. Attorney Katherine E. Rumbaugh prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-111.
Pennsylvania Man Sentenced for Attempting to Transfer Obscene Material to a MinorRead the Press Release
BANGOR, Maine: A Pennsylvania man was sentenced in federal court in Bangor today for attempting to transfer obscene material to a minor, U.S. Attorney Halsey B. Frank announced.
U.S. District Judge John A. Woodcock, Jr. sentenced Aaron Dyer, 35, to 30 months in federal prison, followed by three years of supervised release. The defendant pleaded guilty on December 11, 2019.
According to court records, Dyer, using the multimedia messaging application Snapchat, sent images of his genitalia to the internet connected device of a 10-year-old girl living in Maine. Dyer requested in a message accompanying the images that the girl send back nude images of herself. The defendant admitted that he was aware that the intended recipient of his Snapchat message was 10 years old. The images were intercepted by the girl’s mother before they were viewed by the girl.
Immigration and Customs Enforcement’s Homeland Security Investigations and the Maine State Police investigated the case. 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 U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Owner of Minnesota and California Magazine Sales Companies Pleads Guilty to Conspiracy to Commit Mail FraudRead the Press Release
United States Attorney Erica H. MacDonald today announced the guilty plea of BRIAN JAMES WILLIAMS, 51, to one count of conspiracy to commit mail fraud. WILLIAMS, who was indicted on October 27, 2020, entered his guilty plea today before Chief Judge John R. Tunheim in U.S. District Court in Minneapolis, Minnesota. This was the first guilty plea following the October 27, 2020, indictment of 60 individuals for their involvement in fraudulent magazine sales.
According to the defendant’s guilty plea and documents filed with the court, WILLIAMS owned and operated several companies involved in fraudulent magazine sales, including Readers Club Home Office, Pacific Renewal Service, and Tropical Readers in St. Paul, Minnesota, and Pacific Beach Readers Club in San Diego, California. WILLIAMS’ companies operated telemarketing call centers in both St. Paul and San Diego at which telemarketers used deceptive sales scripts designed to defraud victim-consumers—many of whom were elderly or otherwise vulnerable—by tricking them into signing up for expensive magazine subscription packages. WILLIAMS conspired with and participated in this scheme with many others, including with company owners, lead brokers, and telemarketers located across the country. In total, WILLIAMS and his companies defrauded thousands of victims out of more than $29 million.
According to the defendant’s guilty plea and documents filed with the court, WILLIAMS agreed to pay $29,262,249 in restitution to victims of his fraud conspiracy. WILLIAMS faces a sentence of up to 30 years in prison.
This case is the result of an investigation conducted by the United States Postal Inspection Service and the Federal Bureau of Investigation. Additional assistance was provided by the Treasury Inspector General for Tax Administration (TIGTA) and the Minnesota Attorney General’s Office.
Assistant U.S. Attorneys Joseph H. Thompson, Harry M. Jacobs, and Melinda A. Williams are prosecuting the case.
Defendant Information:
BRIAN JAMES WILLIAMS, 51
Long Lake, Minn.
Convicted:
- Conspiracy to commit mail fraud, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Oklahoma City Man Sentenced to 132 Months in Federal Prison for Participation in Drug ConspiracyRead the Press Release
OKLAHOMA CITY – DANTE DE LA CRUZ-ALVAREZ, 28, of Oklahoma City, was sentenced today to serve 132 months in prison for distributing methamphetamine and conspiracy to possess with intent to distribute methamphetamine, announced U.S. Attorney Timothy J. Downing.
On December 30, 2019, De La Cruz-Alvarez was arrested after a search of his vehicle at a traffic stop resulted in the seizure of 31 one-pound vacuum-sealed packages containing methamphetamine.
On January 21, 2020, a federal grand jury indicted De La Cruz-Alvarez for conspiracy and possession of methamphetamine with intent to distribute. On July 22, 2020, De La Cruz-Alvarez pleaded guilty to conspiracy to possess with intent to distribute and to distribute methamphetamine. Today, U.S. District Judge Bernard M. Jones sentenced De La Cruz-Alvarez to serve 132 months (11 years) in federal prison. At the end of his term, he must also serve five years of supervised release.
This case is the result of investigations by District 21 Drug Task Force, Oklahoma City Police Department, and the Drug Enforcement Administration. Assistant United States Attorney Matthew P. Anderson prosecuted the case.
Reference is made to court filings for further information. To download a photo of U.S. Attorney Downing, click here.
Nurse Admits Illegally Writing Prescriptions for Oxycodone and XanaxRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration for New England, announced that LISA M. ALEXANDER, 54, of Cheshire, waived her right to be indicted and pleaded guilty today before U.S. District Judge Janet C. Hall in New Haven to a charge stemming from her writing prescriptions for controlled substances outside the scope of professional practice and not for a legitimate medical purpose.
According to court documents and statements made in court, Alexander was a licensed Advanced Practice Registered Nurse (“APRN”) and held a DEA controlled substance registration that allowed her to prescribe Schedule II through V controlled substances. Between approximately April 2017 and February 2020, Alexander wrote illicit prescriptions to distribute and dispense more than 3,600 oxycodone pills, a Schedule II controlled substance, and nearly 3,000 alprazolam pills (which is sold and marketed under the trade name Xanax), a Schedule IV controlled substance, to multiple individuals. Alexander did not have a legitimate practitioner-patient relationship with these individuals, did not conduct medical examinations with these individuals, and did not confirm conditions that would medically require treatment using these controlled substances. Alexander also knew that at least some of these individuals were selling the pills instead of taking them.
In addition, Alexander knew that some of the individuals who received prescriptions from Alexander were on Medicare or Medicaid. Most of the illicit prescriptions that Alexander wrote were paid for by Medicaid or Medicare.
Alexander pleaded guilty to one count of unlawful distribution and dispensing of controlled substances by a practitioner, an offense that carries a maximum term of imprisonment of 20 years. Judge Hall scheduled sentencing for January 22, 2021.
Alexander is released pending sentencing.
This investigation is being conducted by HHS-OIG’s Office of Investigations and the DEA’s New Haven Tactical Diversion Squad, with the assistance of the Connecticut Department of Consumer Protection – Drug Control Division and the Manchester, Meriden and Cheshire Police Departments.
The case is being prosecuted by Assistant U.S. Attorney David T. Huang.
November 3, 2020 ElectionsRead the Press Release
NEW ORLEANS - United States Attorney Peter G. Strasser announced today that Assistant United States Attorney AUSA Irene Gonzalez will lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 3, 2020, general election. AUSA Irene Gonzalez has been appointed to serve as the District Election Officer (DEO) for the Eastern District of Louisiana, and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights concerns in consultation with Justice Department Headquarters in Washington.
United States Attorney Strasser said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud. The Department of Justice will always act appropriately to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open through Election Day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or illiteracy).
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights concerns during the voting period that ends on November 3, 2020, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Strasser stated that AUSA/DEO Gonzalez will be on duty in this District while the polls are open. The public, at the following telephone number (504) 680-3141 can reach her.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on Election Day. The local FBI field office can be reached by the public at (504) 816-3000.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by phone at 800-253-3931 or by complaint form at https://civilrights.justice.gov/ .
Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities. State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.
United States Attorney Strasser said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available to my Office, the FBI, or the Civil Rights Division.”
New York Man Charged with Filing False Tax Returns Seeking Multimillion-Dollar RefundsRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, and Jonathan D. Larsen, the Special Agent-in-Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced that JAMEEN WALKER was arrested yesterday in Manhattan, and charged with making a false claim, subscribing to false tax returns, and theft of government funds in connection with WALKER’s repeated filing of false tax returns claiming multimillion-dollar tax refunds based on fictitious income and withholdings. WALKER will be presented today before United States Magistrate Judge Ona Wang.
Acting U.S. Attorney Audrey Strauss said: “As alleged, Jameen Walker filed multiple false tax returns, both corporate and individual, ultimately defrauding the IRS out of nearly $7 million. Now he will have to answer for his alleged crimes.
IRS-CI Special Agent-in-Charge Larsen said: “Identifying refund fraud schemes is a priority for IRS-Criminal Investigation. I want honest taxpayers to know that we are committed to holding those accountable that choose to defraud the government. Mr. Walker’s allegedly false claims for millions of dollars in fraudulent refunds should be considered an attack on the tax system and the general public who believe in it and follow the rules, and we take these allegations very seriously.”
According to the allegations in the Indictment[1] unsealed today in Manhattan federal court:
Between 2016 and 2018, WALKER repeatedly filed tax returns with the Internal Revenue Service (the “IRS”) falsely claiming that a corporation he controlled had paid him millions of dollars and withheld millions of dollars in federal taxes. WALKER then fraudulently sought large federal tax refunds based on those claims.
In 2016, WALKER filed multiple Forms 1040 (“U.S. Individual Income Tax Return”) falsely claiming that Stallings Empire Corporation paid him $19.7 million, of which $14.6 million had been withheld. In fact, Stallings Empire Corporation did not withhold or pay any money in federal taxes on behalf of WALKER or any other employee. Nevertheless, based on the false claims in his Forms 1040, WALKER sought a federal tax refund of more than $6.8 million.
Though the IRS did not issue that refund, WALKER continued to file fraudulent returns. In 2018 and 2019, WALKER filed multiple false Forms 941 (“Employer’s Quarterly Federal Tax Return”) and 941-X (“Adjusted Employer’s Quarterly Federal Tax Return or Claim for Refund”) for Stallings Empire Corporation for tax year 2018. In each, WALKER falsely claimed that Stallings Empire Corporation had paid millions of dollars and withheld commensurately large amounts. In early 2019, WALKER filed a Form 1040 for tax year 2018, claiming more than $16 million in income, $12.2 million in withholdings, and seeking a multimillion-dollar refund. Based on this false tax return, the IRS ultimately issued a tax refund check to WALKER for more than $6.9 million. In August 2019, WALKER deposited that refund check at a bank in the Bronx, New York, and proceeded to withdraw and spend in excess of $85,000 before the bank restricted his account.
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WALKER, 46, of New York, New York, is charged with one count of making a false claim, which carries a maximum penalty of five years in prison, three counts of subscribing to a false tax return, each of which carries a maximum penalty of three years in prison, and one count of theft of government funds, which carries a maximum penalty of 10 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Ms. Strauss praised the outstanding investigative work of IRS-CI and the Special Agents of the U.S. Attorney’s Office for the Southern District of New York in this case.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Katherine Reilly and Dina McLeod are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
New Jersey Man Convicted of BriberyRead the Press Release
United States Attorney Ron Parsons announced that Anthony Bertino, age 59, of Atlantic City, New Jersey, was found guilty of Bribery Concerning Programs Receiving Federal Funds as a result of a federal jury trial in Aberdeen, South Dakota.
The charge carries a maximum penalty of 10 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Bertino was indicted by a federal grand jury on April 2, 2019.
The Sisseton-Wahpeton Oyate Tribe (SWO) operates the Dakota Nation Gaming Enterprise (DNGE), which oversees the tribally-run gaming establishments. Bertino was employed as the Corporate Marketing Officer for the DNGE. Bertino’s employment agreement included provisions stating that self-dealing is cause for termination, that he was not to engage in actions motivated by self-interest, and that he was not to work in any other capacity without first obtaining written consent from the DNGE.
In 2014, Bertino negotiated the DNGE’s purchase of equipment from a 66,000 square foot sprung casino facility in Indiana. On May 21, 2014, the DNGE Advisory Committee approved the purchase for $900,000. After the DNGE wired the money to the seller, Bertino received three kickbacks from the seller totaling $104,909.78.
The case was brought pursuant to The Guardians Project, a federal law enforcement initiative to coordinate efforts between participating agencies, to promote citizen disclosure of public corruption, fraud, and embezzlement involving federal program funds, contracts, and grants, and to hold accountable those who are responsible for adversely affecting those living in South Dakota’s Indian country communities. The Guardians Project is another step of federal law enforcement’s on-going efforts to increase engagement, coordination, and positive action on behalf of tribal communities. Led by the U.S. Attorney’s Office, the participating agencies include: Federal Bureau of Investigation; the Offices of Inspector General for the Departments of Interior, Health and Human Services, Social Security Administration, Agriculture, Transportation, Education, Justice, and Housing and Urban Development; Internal Revenue Service, Criminal Investigation Division; U.S. Postal Inspector Service; U.S. Postal Service, Office of Inspector General.
For additional information about The Guardians Project, please contact the U.S. Attorney’s Office at (605) 330-4400. To report a suspected crime, please contact law enforcement at the federal agency’s locally listed telephone number.
This case was investigated by the Federal Bureau of Investigation and the U.S. Attorney’s Office. Assistant U.S. Attorney Ann M. Hoffman prosecuted the case.
A presentence investigation was ordered and a sentencing date was set for May 10, 2021. The defendant was allowed to remain released on bond pending sentencing.
NDTX Round-Up: October 23-29Read the Press Release
SENTENCING – JOSHUSA DANIEL ZIVILI
On October 27, Joshua Daniel Zivili, 40, was sentenced to 235 months for interference with commerce by robbery and brandishing a firearm during a crime of violence. Zivili admitted to robbing eight retail or restaurants establishments in the Dallas area. Following a robbery of a fast-food restaurant, Zivili fled the scene in a vehicle engaging in a high-speed police chase. During the chase, the vehicle crashed, and law enforcement recovered the cash stolen from the restaurant and the firearm used to commit the robbery. This case was investigated by the Federal Bureau of Investigation and the Dallas Police Department. Assistant U.S. Attorney Gary Tromblay prosecuted this case.
SENTENCING – MICHAEL ASAGBA
On October 27, Michael Asagba, 22, was sentenced to 176 months in federal prison for three counts of interference with commerce by robbery and one count of brandishing a firearm in furtherance of a crime of violence. Over the course of four days in February 2018, Asagba robbed three convenience stores in located Mesquite. During the commission of the robberies, he carried a Ruger 9 mm firearm. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Shane Read prosecuted this case.
GUILTY PLEA – TRIVIKRAM REDDY
On October 27, Trivikram Reddy, 38, plead guilty to conspiracy to commit wire fraud. Reddy, a licensed nurse practitioner, devised a scheme to defraud Medicare, Blue Cross Blue Shield of Texas, Aetna, UnitedHealthcare, Humana, and Cigna. He made false billings using the provider numbers of six doctors. All the claims were false and at no time did the six doctors provide billable services to any of Reddy’s clinics. Reddy faces up to 20 years in federal prison for his crimes. This case was investigated by the Health and Human Services-Office of the Inspector General and the Federal Bureau of Investigation. Assistant U.S. Attorney Donna Strittmatter Max is prosecuting this case.
Muskogee Woman Sentenced to 60 Months Probation, $133,000 Restitution for Theft from Organization Receiving Federal FundsRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Brandi Ledawn Dunback, age 43, of Muskogee, Oklahoma was sentenced to 5 years’ probation and ordered to pay restitution in the amount of $133,167.91 for Theft From Organization Receiving Federal Program Funds, in violation of Title 18, United States Code, Section 666(a)(1)(A).
The Information alleged that from on or about July 9, 2015, until on or about November 9, 2018, in the Eastern District of Oklahoma, the defendant, being an agent, employee, and officer of Indian Capital Technology Center, an agency of a State government, which received in excess of $10,000 in federal benefits in each one year period from 2015 through 2018, stole, obtained by fraud, and without authority knowingly converted to the use of a person not the rightful owner, property of a value of $5,000 or more, owned by, under the care of, and under the control of Indian Capital Technology Center.
The charges arose from an investigation by the Muskogee Police Department and the United States Secret Service.
United States Attorney Brian J. Kuester said, “Theft from a government funded agency is theft from the American people. The thorough and professional investigation by the Muskogee Police Department and the United States Secret Service allowed members of this office to bring the defendant to justice. Her sentence will result in funds being returned to the Indian Capital Technology Center and used for the public good.”
“The United States Secret Service aggressively investigates allegations of fraud related to Federal Benefit Programs such as Small Business Relief and Unemployment Compensation as well as many others,” said Glenn Dennis, Special Agent in Charge of the Oklahoma City U.S. Secret Service Field Office. “When a person defrauds a benefit program they victimize us all as American tax payers and divert critical funds from those truly in need. The Secret Service Oklahoma City Field Office partnered with the Muskogee Police Department Investigators to successfully bring the defendant in this case to justice.”
The Honorable John F. Heil, III, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. First Assistant United States Attorney Christopher Wilson represented the United States.
Murder victim’s ex-wife pleads guilty to interstate stalking resulting in deathRead the Press Release
DAYTON – A 35-year-old Centerville woman pleaded guilty in federal court today to interstate stalking that resulted in her ex-husband’s death.
Tawnney Caldwell accepted responsibility for her role in the August 2017 murder of Robert Caldwell. Parties involved in Tawnney Caldwell’s case have recommended a sentence of 20 to 35 years in prison.
According to her plea agreement, around 6pm on August 15, 2017, Robert Caldwell and his three minor children left a counseling appointment in Riverside, Ohio. While crossing the parking lot, Robert Caldwell was shot multiple times by an assailant in front of his children and died at the scene. The assailant was later identified as co-defendant Sterling Roberts.
Tawnney Caldwell is the ex-wife of the murder victim and was the girlfriend of Sterling Roberts at the time of the incident.
She and the murder victim had an ongoing dispute regarding the custody of their children and Tawnney Caldwell had talked to Sterling Roberts on at least two occasions (while Roberts was incarcerated in Montgomery County) about killing Robert Caldwell.
Tawnney Caldwell collaborated with others, including Sterling Roberts; his brothers, Chance Deakin and Christopher Roberts; Chandra Harmon (Tawnney’s mother); and James Harmon (Tawnney’s step-father), to plan, execute and cover-up the violent crime resulting in the death of Robert Caldwell.
Court documents indicate Roberts pretended to be a customer in need of stonework and messaged Robert Caldwell to lure him into meeting in Jamestown, Ohio in early August 2017. Roberts, armed with a gun, allegedly ambushed Robert Caldwell, who fled and called 911. Robert Caldwell eventually escaped that encounter and reported it to the Greene County Sheriff’s Office.
According to Tawnney Caldwell’s plea, between the time of the attempted homicide and the eventual murder of Robert Caldwell, Roberts fled to a relative’s home in Tennessee. Tawnney Caldwell traveled interstate and brought him back to Ohio, stopping in Kentucky to illegally purchase Roberts an AK-47 rifle.
According to Tawnney Caldwell’s plea, the two planned the details of the victim’s murder together at Tawnney Caldwell’s residence and were in contact via cell phone multiple times before and after the murder.
Sterling Roberts is scheduled for jury trial in U.S. District Court on Nov. 30.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Riverside Police Chief Frank Robinson and Sugarcreek Township Police Chief Michael Brown announced the plea entered into today before Senior U.S. District Judge Thomas M. Rose. Assistant United States Attorney Amy M. Smith and Assistant Deputy Criminal Chief Laura Clemmens are representing the United States in this case.
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Monticello Felon Sentenced to 42 Months for Possession of AmmunitionRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Justin Wenger, 38, Monticello, Wisconsin pleaded guilty and was sentenced today by Chief U.S. District Judge James Peterson to 42 months in prison, to be followed by two years of supervised release, for possession of ammunition as a convicted felon.
In 2014, Wenger was convicted of the felony crimes of burglary and theft of firearms when he and two others stole a significant amount of money and several firearms during a 2012 burglary. He was sentenced to five years in prison to be followed by supervised release and probation.
On January 16, 2020, Wenger stole a box of .223 ammunition from a store in Monroe, Wisconsin. The ammunition was for an AR15 rifle that he had just purchased for his son. While investigating this theft, investigators searched Wenger’s residence and discovered not only the .223 ammunition and AR15, but seven firearms under Wenger’s bed and approximately 50 firearms in a safe. Wenger said that the AR15 rifle belonged to his son, and the rest of the firearms belonged to his brother and father who were storing them at his house.
At sentencing, Judge Peterson noted that Wenger had simply disregarded his prohibition on possessing firearms and ammunition. Judge Peterson said that Wenger posed a danger to society due to his poor decision making. Judge Peterson ordered the federal sentence to run consecutive to a two-year prison term that Wenger was serving based on revocation of his state supervision for his 2014 conviction.
The charge against Wenger was the result of an investigation conducted by the Monroe and Monticello Police Departments, Green County Sheriff’s Office, and Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution of the case has been handled by Assistant U.S. Attorney Corey Stephan.
The charge against Wenger was brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition, and violent crimes and drug crimes that involve the use of firearms.
Methamphetamine trafficker from Mexico sentenced to eight years in prisonRead the Press Release
MISSOULA — A Sinaloa, Mexico drug trafficker who brought pounds of methamphetamine, along with heroin and oxycodone pills containing fentanyl, to Montana for distribution was sentenced on Oct. 29 to eight years in prison and five years of supervised release, U.S. Attorney Kurt Alme said today.
Ricardo Ramos Medina, 34, pleaded guilty on June 25 to conspiracy to possess with intent to distribute controlled substances.
U.S. District Judge Dana L. Christensen presided.
The prosecution said in court documents that law enforcement learned Medina was distributing large amounts of meth in and around Montana and directed others to wire money back to Mexico. The conspiracy ran from about January 2019 to March 2020. Investigators conducted undercover buys from Medina, including purchases of meth, heroin and counterfeit oxycodone pills containing fentanyl.
In March, Medina was attempting to collect drug debts owed to him from various drug traffickers in the Butte area. Medina “fronted” the meth to co-conspirators, and he returned to Montana to collect the money from them. On March 18, law enforcement officers stopped Medina and found he was in possession of two pounds of meth.
In a sentencing memo, the prosecution said Medina was responsible for 16 pounds of meth, which is the equivalent of about 57,984 doses.
Assistant U.S. Attorney Ryan Weldon prosecuted the case, which was investigated by the Drug Enforcement Administration, the U.S. Postal Service, Homeland Security Investigations, Montana Division of Criminal Investigation and Butte-Silver Bow Police.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. According to the FBI’s Uniform Crime Reports, violent crime in Montana increased by 36% from 2013 to 2018. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Memphis Physicians Agree to Pay More Than $340,000 for Alleged OverbillingRead the Press Release
WASHINGTON – Doctor Shoaib Qureshi, Doctor Imran Mirza, Memphis Primary Care Specialists, Lunceford Family Health Center, and Getwell Family Medicine agreed to pay $341,690 to resolve allegations that they violated the False Claims Act by knowingly charging Medicare for services rendered by nurse practitioners at the higher reimbursement rate for physician services, the Justice Department announced today.
Doctor Qureshi and Doctor Mirza are family medicine physicians who practice in and around Memphis, Tennessee. Doctor Qureshi owns and operates Memphis Primary Care Specialists and Lunceford Family Health Center; Doctor Mirza owns and operates Getwell Family Medicine.
“Healthcare providers who overcharge Medicare contribute to the soaring cost of health care,” said Acting Assistant Attorney General Jeffrey Bossert Clark for the Department of Justice’s Civil Division. “The department will continue to investigate and hold accountable those who seek to enrich themselves at the expense of federal health care programs and the American taxpayers.”
"Falsely billing Medicare for services by absent physicians encourages fraud, waste, and abuse of taxpayer funds and can ultimately harm patients," said D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee. "Settlements like this achieve provider accountability, protect public funds, and safeguard the beneficiaries of federal health care programs."
“Medicare is a system based on trust and depends on the integrity of health care providers,” said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. “Physicians have a duty to ensure claims are accurate in order to prevent the program from over-paying for the services rendered to patients.”
Medicare pays a higher rate for physician services than for non-physician services. Medicare will pay the higher physician rate for services rendered by non-physician providers if the services are “incident to” the services of a physician. Such “incident to” services, however, must be provided under the direct supervision of a physician. The United States alleged that, from 2015 to 2018, Doctor Qureshi, Doctor Mirza, and their clinics billed Medicare as though the physicians had provided the services in question, when in fact nurse practitioners had treated the patients without the supervision required by Medicare’s “incident to” rules. Indeed, the government alleged that the services were rendered when the physicians were out of the office, including times when they were traveling out of state or abroad.
The settlement resolves allegations filed in a lawsuit by Michael Grace under the qui tam provisions of the False Claims Act, which permit private individuals to sue for false claims on behalf of the government and to share in any recovery. The civil lawsuit is docketed in the Western District of Tennessee and is captioned United States; the States of California, Colorado, Connecticut, Florida, Georgia, Illinois, Indiana, Louisiana, Maryland, Michigan, Nevada, New Jersey, New Mexico, New York, North Carolina, Oklahoma, Tennessee, and Texas; the Commonwealths of Massachusetts and Virginia; and the City of Chicago ex rel. Grace v. Tenet HealthCare Corp., St. Francis Hospital-Memphis, Desert Regional Medical Center, Apollo MD, Shoaib Qureshi, MD; and Imran Mirza, MD, Case No. 2:20-CV-2209. As part of this settlement, Grace will receive $58,087 as his share of the government’s recovery.
The resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
This matter was investigated by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Western District of Tennessee, and the Office of Inspector General for the U.S. Department of Health and Human Services.
The claims resolved by this settlement are allegations only and there has been no determination of liability.
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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.
Memphis Physicians Agree to Pay More Than $340,000 for Alleged OverbillingRead the Press Release
Doctor Shoaib Qureshi, Doctor Imran Mirza, Memphis Primary Care Specialists, Lunceford Family Health Center, and Getwell Family Medicine agreed to pay $341,690 to resolve allegations that they violated the False Claims Act by knowingly charging Medicare for services rendered by nurse practitioners at the higher reimbursement rate for physician services, the Justice Department announced today.
Doctor Qureshi and Doctor Mirza are family medicine physicians who practice in and around Memphis, Tennessee. Doctor Qureshi owns and operates Memphis Primary Care Specialists and Lunceford Family Health Center; Doctor Mirza owns and operates Getwell Family Medicine.
“Healthcare providers who overcharge Medicare contribute to the soaring cost of health care,” said Acting Assistant Attorney General Jeffrey Bossert Clark for the Department of Justice’s Civil Division. “The department will continue to investigate and hold accountable those who seek to enrich themselves at the expense of federal health care programs and the American taxpayers.”
"Falsely billing Medicare for services by absent physicians encourages fraud, waste, and abuse of taxpayer funds and can ultimately harm patients," said D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee. "Settlements like this achieve provider accountability, protect public funds, and safeguard the beneficiaries of federal health care programs."
“Medicare is a system based on trust and depends on the integrity of health care providers,” said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. “Physicians have a duty to ensure claims are accurate in order to prevent the program from over-paying for the services rendered to patients.”
Medicare pays a higher rate for physician services than for non-physician services. Medicare will pay the higher physician rate for services rendered by non-physician providers if the services are “incident to” the services of a physician. Such “incident to” services, however, must be provided under the direct supervision of a physician. The United States alleged that, from 2015 to 2018, Doctor Qureshi, Doctor Mirza, and their clinics billed Medicare as though the physicians had provided the services in question, when in fact nurse practitioners had treated the patients without the supervision required by Medicare’s “incident to” rules. Indeed, the government alleged that the services were rendered when the physicians were out of the office, including times when they were traveling out of state or abroad.
The settlement resolves allegations filed in a lawsuit by Michael Grace under the qui tam provisions of the False Claims Act, which permit private individuals to sue for false claims on behalf of the government and to share in any recovery. The civil lawsuit is docketed in the Western District of Tennessee and is captioned United States; the States of California, Colorado, Connecticut, Florida, Georgia, Illinois, Indiana, Louisiana, Maryland, Michigan, Nevada, New Jersey, New Mexico, New York, North Carolina, Oklahoma, Tennessee, and Texas; the Commonwealths of Massachusetts and Virginia; and the City of Chicago ex rel. Grace v. Tenet HealthCare Corp., St. Francis Hospital-Memphis, Desert Regional Medical Center, Apollo MD, Shoaib Qureshi, MD; and Imran Mirza, MD, Case No. 2:20-CV-2209. As part of this settlement, Grace will receive $58,087 as his share of the government’s recovery.
The resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
This matter was investigated by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Western District of Tennessee, and the Office of Inspector General for the U.S. Department of Health and Human Services.
The claims resolved by this settlement are allegations only and there has been no determination of liability.
Maple Heights mail carrier arrested and charged with delay of mailRead the Press Release
A Maple Heights mail carrier was arrested this morning and charged on a federal criminal complaint in the Northern District of Ohio. U.S. Attorney Justin Herdman and U.S. Postal Service Office of Inspector General Special Agent in Charge Kenneth Cleevely announced that De’Andrian L. Rice, age 27, of Maple Heights, was charged with delay or destruction of mail or newspapers. Rice is in custody and will have her initial appearance in front of Magistrate Judge Jonathan D. Greenberg this afternoon.
“Americans depend upon the reliability and security of the U.S. mail, especially during this election season,” said U.S Attorney Justin Herdman. “Actions by mail carriers and postal employees that violate this trust will result in federal prosecution.”
“The vast majority of the 630,000 postal employees are hard-working, trustworthy individuals who work around the clock to deliver the nation’s mail,” said U.S. Postal Service Office of Inspector General Special Agent in Charge Kenneth Cleevely. “However, when one of them chooses to violate that trust, special agents with the USPS OIG will investigate and pursue criminal charges and the employee’s removal. To report postal crimes, contact www.uspsoig.gov or 888-USPSOIG.”
According to the criminal complaint, the defendant is a mail carrier for the United States Postal Service and has worked in the cities of Cleveland and Bedford. On October 19, 2020, special agents with the United States Postal Service Office of the Inspector General (USPS OIG) were advised of an off duty arrest of the defendant in the city of Bedford. During a search of the defendant’s vehicle, police located mail not addressed to the defendant in the trunk of the vehicle.
The USPS OIG responded to retrieve and inventory the discovered mail. Located and counted among the recovered mail were: one (1) Ohio Secretary of State, Absentee Ballot Application; eighty-eight (88) pre-sorted standard mail from the City of Cleveland Water Department; (32) Dolly Parton book club books (bound and sealed in cellophane); twenty (20) partisan political advertisements; fifteen (15) pieces of Voter Participation Center mail; fourteen (14) General Election mailers from the Cuyahoga County Board of Elections and more, according to the complaint.
In total, 335 pieces of mail were recovered from the defendant’s vehicle. This mail was intended for delivery to addresses in the city of Cleveland and Bedford. The Absentee Ballot Application was returned to the affected customer and the remainder of the mail was returned to the mail stream.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by special agents with the United States Postal Service -- Office of the Inspector General. This case is being prosecuted by Assistant U.S. Attorney Megan R. Miller.
Managing partner of Chicago travel agency pleads guilty to computer password traffickingRead the Press Release
ATLANTA - Gennady Podolsky, a dual Ukrainian and American citizen, and managing partner of Vega International Travel Services, Inc., has pleaded guilty to trafficking in computer passwords.
“Companies or individuals who use travel agents trust them to work in their best interests,” said U.S. Attorney Byung J. “BJay” Pak. “Podolsky violated that trust when he trafficked in passwords associated with Delta Air Lines SkyBonus accounts without authorization, fraudulently accruing Delta SkyBonus points for the purchase of eCert tickets. Corrupt individuals who engage in fraudulent activity will be caught and prosecuted.”
“There are victims when someone fraudulently accumulates frequent flyer miles in the travel industry. Large corporations, like Delta Air Lines, lose significant profits,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “This case is an example of how the FBI will do everything in its power to protect companies and arrest anyone who conducts such corrupt behavior.”
According to U.S. Attorney Pak, the charges and other information presented in court: Vega International Travel Services, Inc. (“Vega Travel”) was a small, full service travel agency located in Chicago, Illinois. Vega Travel's services included booking air travel for its clients, many of whom were living abroad. Podolsky was Vega Travel’s managing partner and lead travel agent.
Delta Air Lines is a major United States airline headquartered in Atlanta, Georgia. Delta utilizes computer servers for electronic ticket management and email messaging. Delta also operates a frequent-flyer program for individuals called SkyMiles, and a similar program for businesses called SkyBonus, that allows individuals and businesses to earn points for free travel and other valuable perks.
Enrolled businesses can earn points under the SkyBonus program at the same time traveling passengers earn points under the SkyMiles program. Enrolled businesses receive a unique user ID and password, and can redeem accrued Sky Bonus points for flight reward certificates, ticket upgrades, and other benefits. The reward certificates for free air travel are requested through the SkyBonus website. Delta issues the certificates, known as “Delta eCerts,” via email to the recipient's email address. To redeem an eCert for free travel, the reward recipient enters an eCert number during the booking process and selects an eligible flight.
Podolsky created a bogus account under the name of "RGI International" in order to fraudulently accrue SkyBonus points. Podolsky also caused others to use aliases in their communications with Delta. Podolsky further transferred the password for RGI International’s bogus SkyBonus account to a Vega International Travel Service, Inc. employee, in order for the employee to unlawfully access Delta's SkyBonus computer system and book Vega's customers for air travel on Delta.
In so doing, Podolsky caused the Sky Bonus account number for "RGI International" to be associated with those customers' tickets, even though those customers were not employees of any entity called RGI International. By unlawfully transferring the password to RGI International's bogus account, Podolsy ensured the account fraudulently accrued Delta SkyBonus points for the purchase of eCert tickets.
Sentencing for Gennady Podolsky, 44, of Chicago, Illinois is scheduled for January 27, 2021, at 11:00 a.m. before U.S. District Judge Steve C. Jones. As part of the plea agreement, Podolsky has agreed to pay $1,000,000 as restitution to Delta Air Lines prior to sentencing and has further agreed not to engage in any business with Delta Air Lines or any company associated with Delta Air Lines at any time in the future.
This case is being investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorneys Bernita Malloy, John S. Ghose and Glenn D. Baker are 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.
Luzerne County Man Sentenced to 262 Months’ Imprisonment for Drug TraffickingRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Gimy Rodriguez, a/k/a “Carvo,” age 28, of Hazleton, Pennsylvania, was sentenced on October 29, 2020, to 262 months’ imprisonment followed by five years of supervised release by United States District Judge Robert D. Mariani, for drug trafficking.
According to United States Attorney David J. Freed, Rodriguez pled guilty in September 2019, to engaging in a conspiracy and other charges involving the distribution of heroin, fentanyl, and methamphetamine throughout Luzerne County. Rodriguez was the leader of multiple co-conspirators and maintained hubs of operation in both Hazleton and Wilkes-Barre.
Rodriguez’s co-conspirators were sentenced to:
- Andrew J. Danko was sentenced to 68 months’ imprisonment;
- Angela Haggerty was sentenced to 37 months’ imprisonment; and
- Hector Delacruz was sentenced to 51 months’ imprisonment.
The case was investigated by the DEA and the Pennsylvania State Police. Assistant United States Attorney Michelle Olshefski prosecuted the case.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state, and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Los Angeles Man Sentenced to 162 Months for Cocaine and Money Laundering ConspiracyRead the Press Release
LEXINGTON, Ky. – A Los Angeles, CA. man, Adalberto Pineda Santos, 50, was sentenced in federal court last Friday to 162 months in prison, before U.S. District Judge Claria Horn Boom, for conspiracy to distribute five kilograms or more of cocaine and conspiracy to launder money.
According to his plea agreement, Santos admitted that he conspired with others to distribute more than five kilograms of cocaine in Fayette County. Santos admitted that he would fly into the United States from Mexico to oversee the collection of money from the sale of cocaine and to distribute loads of cocaine at the direction of other co-conspirators. In the plea agreement, Santos admitted that couriers were used to transport drugs into Fayette County for distribution and to transport drugs out of Fayette County to locations in Colorado. In total, Santos admitted that the total amount of drugs attributable to him is 5 to 15 kilograms of cocaine.
Santos pleaded guilty in March 2020.
Under federal law, Santos must serve 85 percent of his prison sentence. Upon his release, he will be under the supervision of the U.S. Probation Office for five years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; J.T. Scott, Special Agent in Charge, DEA Louisville Field Division; and Bryant Jackson, Special Agent in Charge, Internal Revenue Service – Criminal Investigation, jointly announced the guilty plea.
The investigation was conducted by DEA and IRS. The United States was represented by Assistant U.S. Attorney Todd Bradbury.
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.
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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Last of Three Convicted, and Two Sentenced, in International Money Laundering and Romance Fraud SchemeRead the Press Release
LEXINGTON, Ky. – Two defendants were sentenced in federal court today, for their roles in an international money laundering conspiracy; a third was convicted last Friday, by a federal jury in Lexington, for his role in the scheme.
Last week, after an hour of deliberations, following a three-day trial, a federal jury convicted 34 year old Baaki Abdul Majeed of wire fraud conspiracy, money laundering conspiracy, and five counts of transactional money laundering.
According to testimony at trial, Majeed conspired with Kahad Wuupini, 35, and Thomas Inkoom, 42, in a money laundering conspiracy. Evidence revealed that the conspirators agreed to aid in and launder $757,000 in funds, which were defrauded from a victim of an online romance fraud scheme. After receiving cashier’s checks, personal checks, and cash from the victim, Majeed and his co-conspirators laundered the money from Washington and New Jersey, back to Ghana, by purchasing cars that were shipped to Ghana, obtaining cashier’s checks, and wiring funds to each other or other individuals in the United States and Ghana. The purpose of these transactions was to conceal and disguise the proceeds of their online romance fraud.
Majeed, Wuupini, and Inkoom were indicted in August 2019.
Wuupini and Inkoom pleaded guilty to the money laundering conspiracy in March 2020 and were sentenced today, by Chief U.S. District Judge Danny C. Reeves. Wuupini was sentenced to 79 months in prison and Inkoom was sentenced to 19 months. Under federal law, both must serve 85 percent of their prison sentences and will be under the supervision of the U.S. Probation Office for 3 years, following their release. Wuupini was ordered to pay $757,000 and Inkoom was ordered to pay $100,000 in restitution.
“The scheme, using fraud and deceit, preyed upon the victim’s hopes and took advantage of her kindness, ultimately stealing over $750,000 of her money,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “Unfortunately, internet-based romance scams are becoming more and more prevalent. It is important for people to be cautious about sending money to someone they have only met online. If something seems too good to be true, it often is. I commend the hard work of FBI personnel and members of my Office, to hold the defendants accountable for their crimes, and to bring a measure of justice to the victim.”
“Romance scammers use promises of love and romance to entice victims online often persuading them to send money, personal and financial information, and items of value to the perpetrator,” said James Robert Brown, Jr., Special Agent in Charge, FBI, Louisville Field Office. “The defendants in this case not only deceived a vulnerable individual, but then proceeded to engage in multiple money laundering schemes in order to conceal their original scam. The FBI will not stand for fraudsters who seek to gain financially by preying upon the “heartstrings” of Americans.”
United States Attorney Duncan and SAC Brown jointly announced the conviction.
The investigation was conducted by the FBI. The United States was represented in the case by Assistant U.S. Attorney Kate Smith.
Majeed will appear for sentencing on January 29, 2021. He faces a maximum of 20 years in prison. However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal sentencing statutes before imposing a sentence.
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Last Defendant in Gangster Disciple RICO Conspiracy Pleads GuiltyRead the Press Release
Memphis, TN – Tarius Montez Taylor, a/k/a "T," 30, has pleaded guilty to conspiracy to participate in a racketeering enterprise. D. Michael Dunavant, U.S. Attorney announced the guilty plea today.
This guilty plea was the last conviction in a large RICO conspiracy case known as "Operation .38 Special", which was originally indicted in May, 2016, charging a total of 16 members of the Gangster Disciples criminal enterprise with racketeering. With the addition of this guilty plea, all 16 of the gang members have now been found guilty for their roles in the conspiracy.
According to the superseding indictment, Taylor held the rank of blackout squad/security team member. The superseding indictment further stated that the defendants named in the RICO conspiracy committed attempted murders; robberies; assaults; distribution of large quantities of cocaine, crack and marijuana; firearms trafficking; kidnappings; intimidations of witnesses and victims; extortion; obstruction of justice; and other offenses in furtherance of the Gangster Disciples criminal enterprise and to promote and enhance the members’ position within the gang. This prosecution significantly damaged the national Gangster Disciples organization, eliminating some of its most powerful leaders, removing the gang from its key territory, and dismantling an important part of its organization here in West Tennessee.
The leadership of the Gangster Disciples (GD) criminal enterprise is organized into different positions, including national board members; governors of governors who controlled multiple states or geographic regions; and governors, assistant governors, chief enforcers, chiefs of security, and security team members for each state or region within the state where the Gangster Disciples were active. They also have coordinators and leaders within each local group. To enforce discipline among Gangster Disciples and adherence to the criminal organization’s rules and structure, members and associates are routinely fined, beaten and even murdered for failing to follow the gang’s rules.
Other leaders and members of the Gangster Disciples have previously been sentenced for their roles in the RICO conspiracy:
• Byron Montrail Purdy, a/k/a "Lil B" or "Ghetto," 38, of Jackson, Tennessee, the GD Governor of Tennessee who received a sentence of 360 months;
• Derrick Kennedy Crumpton, a/k/a "38," 35, of Memphis, Tennessee, the GD Assistant Governor of Tennessee who was sentenced to 324 months;
• Henry Cooper, a/k/a "Big Hen," 37, of Memphis, Tennessee, the GD Chief Regional Enforcer who received a sentence of 360 months;
• Demarcus Crawford, a/k/a "Trip", 35 of Jackson, Tennessee, the Chief of Security of the State of Tennessee who was sentenced to 300 months;
• Tommy Earl Champion, Jr., a/k/a "Duct Tape," 29, of Jackson Tennessee, a GD Black Out Squad member who was sentenced to 360 months;
• Daniel Lee Cole, a/k/a "D-Money," 38, a GD Assistant Governor in Jackson, Tennessee who received a sentence of 292 months; and
• Gerald Hampton, a/k/a, "G-30", 33 of Jackson, Tennessee, a GD Blackout Squad member who was sentenced to 240 months consecutive to a 13 year state sentence.
The defendant is scheduled to be sentenced by U.S. District Court Judge John T. Fowlkes Jr. on January 28, 2021. There is no parole in the federal system.
United States Attorney D. Michael Dunavant said: "Operation .38 Special demonstrates our ability and resolve to aggressively prosecute and hold accountable those who engage in organized criminal enterprises and gang conspiracies in furtherance of racketeering and violence. This successful federal prosecution has completely disrupted, dismantled, and devastated the leadership of the Gangster Disciples street gang here in West Tennessee, and ‘T’ is now teed up for a long prison sentence as well. The message from this case is clear: No matter what your role is in the conspiracy, or what your position, title, or gang nickname is, if you are a member of a criminal gang, your days are numbered and there will be a reckoning."
This prosecution was brought as part of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program. OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations, and to diminish the violence and other criminal activity associated with the drug trade. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, money laundering, and violent organizations.
The Federal Bureau of Investigation (FBI); the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); Drug Enforcement Administration (DEA); Tennessee Bureau of Investigation (TBI); JPD Gang Enforcement Team; Memphis Police Department; Shelby County Sheriff’s Office; 28th Judicial District West Tennessee Drug Task Force; 26th, 25th, and 30th Judicial District Attorney’s General’s Offices; Sheriff’s Offices for Tipton, DeSoto, Madison, and Fayette Counties; and the Police Departments of Bartlett, Germantown and Columbia investigated this case.
Assistant U.S. Attorney Beth Boswell of the Western District of Tennessee and Trial Attorney Shauna Hale of the Criminal Division Organized Crime and Gang Section are prosecuting this case on behalf of the government.
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KC Brother, Sister Charged in Armed Robberies, Kidnapping of Pizza Delivery DriversRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Missouri, brother and sister were charged in federal court today with the armed robberies of two pizza delivery drivers, after a third suspect was killed during a shootout with police officers.
Samuel M. David, 18, and his sister Rochelle E. David, 22, were charged in a six-count criminal complaint filed in the U.S. District Court in Kansas City, Mo. Samuel and Rochelle David remain in federal custody pending a detention hearing.
Today’s criminal complaint charges each of the defendants together in one count of armed robbery, one count of using a firearm during a crime of violence, one count of kidnapping and one count of carjacking. Samuel David is also charged with one count of armed robbery and one count of using a firearm during a crime of violence.
According to an affidavit filed in support of the criminal complaint, Samuel David participated in the robbery of two pizza delivery drivers at gunpoint. The second robbery, in which the affidavit says Rochelle David was involved, led to the carjacking and kidnapping of the victim driver. A third suspect in the robberies was fatally shot by police officers during a traffic stop.
The first robbery occurred on Oct. 18, 2020, when an employee of Domino’s Pizza was robbed at gunpoint by two men outside an apartment building at 4124 N.E. Davidson Road in Kansas City. One of the men pointed a handgun at the victim and the other man struck the victim twice in the face with a closed fist. They took cash and pizza from the victim, then went into the apartment building.
The second robbery occurred on Oct. 19, 2020, when an employee of Pizza Hut was robbed at gunpoint outside an apartment building at 4114 E.E. Davidson Road in Kansas City. The victim told investigators that one of the men had a teardrop tattoo under his right eye. The thieves demanded more money and ordered the victim to get into the driver’s seat of his/her vehicle. The two thieves then got into the front and rear passenger seats and demanded he victim drive them to a nearby gas station where there was an ATM. When they were unable to get cash from the ATM, one of the robbers stabbed the victim in his/her hand, causing it to bleed. They demanded the victim take them to his/her residence, where he/she lived with his/her parents, to get more cash. When they arrived at the victim’s residence, one of the men stayed with the parents who were in the living room and the other thief went with the victim to his/her room. The thief took a small safe from the victim, pushed or struck the victim, then both men left the residence.
On Oct. 23, 2020, police officers were conducting surveillance in the area where the armed robberies occurred in an effort to locate Rochelle David, who lived in the apartment building where the second robbery occurred, in connection with a homicide investigation. She was seen leaving the apartment building in a vehicle with Samuel David and Ennice Ross. Officers conducted a traffic stop of the vehicle in the area of Admiral and Tracy. During the stop, Ross fired upon officers, resulting in his death. Ross, who had a teardrop tattoo on his face, fit the description of one of the robbery suspects.
When Samuel David was taken into custody following the traffic stop, the affidavit says, investigators learned his telephone number was the same number used to order pizza in both of the armed robberies. Investigators also discovered a series of text messages between Rochelle and Samuel David allegedly related to the second robbery.
The charges contained in this complaint are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Byron H. Black. It was investigated by the Kansas City, Mo., Police Department and the Federal Bureau of Investigation.
Justice Department Releases Information on Election Day Efforts to Protect the Right to Vote and Prosecute Ballot FraudRead the Press Release
Continuing a longstanding Justice Department tradition, Attorney General William P. Barr issued the following statement: “Americans have the opportunity once again to help shape the future of this nation by exercising their right to vote. It is a right that forms the foundation of our democratic system of government, and is precious to all Americans. The Department of Justice will work tirelessly alongside other federal, state, and local agencies to protect that right as it is administered by state and local jurisdictions across the nation.”
In anticipation of the upcoming general elections, the Department of Justice today provided information about its particular efforts, through the Criminal Division, Civil Rights Division, and National Security Division, to ensure that all qualified voters have the opportunity to cast their ballots and have their votes counted free of discrimination, intimidation, or fraud in the election process.
Criminal Division and the Department’s 94 U.S. Attorney’s Offices:
The department’s Criminal Division oversees the enforcement of federal laws that criminalize certain forms of election fraud and vindicate the integrity of the federal election process.
The Criminal Division’s Public Integrity Section and the department’s 94 U.S. Attorney’s Offices are responsible for enforcing the federal criminal laws that prohibit various forms of election fraud, such as destruction of ballots, vote-buying, multiple voting, submission of fraudulent ballots or registrations, and alteration of votes, and malfeasance by postal or election officials and employees. The Criminal Division is also responsible for enforcing federal criminal law prohibiting voter intimidation for reasons other than race, color, national origin, or religion (as noted below, voter intimidation that has a basis in race, color, national origin, or religion is addressed by the Civil Rights Division).
The U.S. Attorney’s Offices around the country designate Assistant U.S. Attorneys who serve as District Election Officers (DEOs) in the respective Districts. DEOs are responsible for overseeing potential election-crime matters in their Districts, and for coordinating with the department’s election-crime experts in Washington, D.C.
From now through Nov. 3, 2020, the U.S. Attorney’s Offices will work with specially trained FBI personnel in each district to ensure that complaints from the public involving possible election fraud are handled appropriately. Specifically:
•In consultation with federal prosecutors at the Public Integrity Section in Washington, D.C., the District Election Officers in U.S. Attorney’s Offices, FBI officials at headquarters in Washington, D.C., and FBI special agents serving as Election Crime Coordinators in the FBI’s 56 field offices will be on duty while polls are open to receive complaints from the public.
•Election-crime complaints should be directed to the local U.S. Attorney’s Offices or the local FBI office. A list of U.S. Attorney’s Offices and their telephone numbers can be found at http://www.justice.gov/usao/districts/. A list of FBI offices and accompanying telephone numbers can be found at www.fbi.gov/contact-us.
•Public Integrity Section prosecutors are available to consult and coordinate with the U.S. Attorney’s Offices and the FBI regarding the handling of election-crime allegations.
All complaints related to violence, threats of violence, or intimidation at a polling place should be reported first to local police authorities by calling 911; after alerting local law enforcement to such emergencies by calling 911, the public should contact the department.
In Rhode Island, United States Attorney Aaron L. Weisman announced that Assistant United States Attorney (AUSA) Terrence P. Donnelly will lead the efforts of the United States Attorney’s Office. AUSA Donnelly has been appointed to serve as the District Election Officer (DEO) for the District of Rhode Island, and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington. AUSA Donnelly can be reached by the public on Election Day at (401) 709-5068.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on Election Day. The local FBI field office can be reached by the public at (401) 272-8310.
Civil Rights Division:
The department's Civil Rights Division is responsible for ensuring compliance with the civil provisions of federal statutes that protect the right to vote, and with the criminal provisions of federal statutes prohibiting discriminatory interference with that right.
The Civil Rights Division’s Voting Section enforces the civil provisions of a wide range of federal statutes that protect the right to vote including: the Voting Rights Act; the Uniformed and Overseas Citizens Absentee Voting Act; the National Voter Registration Act; the Help America Vote Act; and the Civil Rights Acts. Among other things, collectively, these laws:
•Prohibit election practices that have either a discriminatory purpose or a discriminatory result on account of race, color, or language minority status;
•Prohibit intimidation of voters;
•Provide that voters who need assistance in voting because of disability or illiteracy can obtain assistance from a person of their choice (other than agents of their employer or union);
•Provide for accessible voting systems for voters with disabilities;
•Provide for provisional ballots for voters who assert they are registered and eligible, but whose names do not appear on poll books;
•Provide for absentee voting for absent uniformed service members, their family members, and U.S. citizens living abroad; and
•Provide for covered States to offer citizens the opportunity to register to vote through offices that provide driver licenses, public assistance, and disability services, as well as through the mail; and to take steps regarding maintaining voter registration lists.
The Civil Rights Division’s Disability Rights Section enforces the Americans with Disabilities Act (ADA) that prohibits discrimination in voting based on disability.
The Civil Rights Division’s Criminal Section enforces federal criminal statutes that prohibit voter intimidation and vote suppression based on race, color, national origin, or religion.
On Election Day, Nov. 3, 2020, the Civil Rights Division will implement a comprehensive program to help ensure the right to vote that will include the following:
•The Civil Rights Division will conduct monitoring in the field under the federal voting rights statutes.
•Civil Rights Division attorneys in the Voting, Disability Rights, and Criminal Sections in Washington, D.C., will be ready to receive complaints of potential violations relating to any of the statutes the Civil Rights Division enforces. Attorneys in the division will coordinate within the Department of Justice and will take appropriate action concerning these complaints before, during, and after Election Day.
•Individuals with complaints related to possible violations of the federal voting rights laws can call the department’s toll-free telephone line at 800-253-3931, and also can submit complaints through a link on the department’s website, at https://civilrights.justice.gov/.
•Individuals with questions or complaints related to the ADA may call the Justice Department’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD), or submit a complaint through a link on the department’s ADA website, at ada.gov.
•Once again, complaints related to violence, threats of violence, or intimidation at a polling place should always be reported immediately to local authorities by calling 911. They should also be reported to the department after local authorities are contacted.
National Security Division:
The department's National Security Division supervises the investigation and prosecution of cases affecting or relating to national security, including any cases involving foreign interference in elections or violent extremist threats to elections. In this context:
•The National Security Division’s Counterintelligence and Export Control Section oversees matters involving a range of malign influence activities that foreign governments may attempt, including computer hacking of election or campaign infrastructure; covert information operations (e.g., to promulgate disinformation through social media); covert efforts to support or denigrate political candidates or organizations; and other covert influence operations that might violate various criminal statutes.
•The National Security Division’s Counterterrorism Section oversees matters involving international and domestic terrorism and supports law enforcement in preventing any acts of terrorism that impact Americans, including any violent extremism that might threaten election security.
As in past elections, on Nov. 3, 2020, the National Security Division will work closely with counterparts at the FBI and our U.S. Attorney’s Offices to protect our nation’s elections from any national security threats. In particular, attorneys from both sections will be partnered with FBI Headquarters components to provide support to U.S. Attorney’s Offices and FBI Field Offices to counter any such threats. Again, complaints related to violence, threats of violence, or intimidation at a polling place should always be reported immediately to local authorities by calling 911 and, after local authorities are contacted, then should also be reported to the department.
Both protecting the right to vote and combating election fraud are essential to maintaining the confidence of all Americans in our democratic system of government. The department encourages anyone with information suggesting voting rights concerns or ballot fraud to contact the appropriate authorities, and notes in particular that the Department of Homeland Security plays its own important role in safeguarding critical election infrastructure from cyber and other threats.
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Judge sentences St. Louis man for being a felon in possession of a firearmRead the Press Release
ST. LOUIS, MO – United States District Audrey G. Fleissig sentenced Byron Hubbard to 60 months in prison. The 30-year-old St. Louis, Missouri resident pleaded guilty to being a felon in possession of a firearm.
On March 12, 2018, a St. Louis County Police officer noticed a vehicle stalled in the 10000 block of Count Drive with Hubbard seated in the driver’s seat. The officer conducted a check of the license plates and learned they were not registered to the vehicle. The officer turned on the patrol car’s lights and sirens.
Hubbard quickly drove away, stopped and tried to get out of the vehicle. The officer ordered Hubbard to stay in the vehicle. The officer noticed Hubbard acting nervous and trying to avoid attention. The officer also smelled an odor consistent with the smell of marijuana and then asked Hubbard to leave the vehicle to allow a vehicle search. Hubbard verbally objected so the officer told him he was going to be detained. Hubbard then tried to drive away.
In response, the office reached through the driver’s door and put the vehicle in park. Hubbard resisted stating he would not leave the vehicle. Another officer opened the passenger’s side door and noticed a handgun sticking out of Hubbard’s pant pocket. The officer pulled the loaded 9mm semi-automatic from Hubbard’s pocket and rendered it safe. After the firearm was recovered, the officer searched Hubbard and found 49 capsules containing a mixture of heroin and fentanyl. A computer check revealed Hubbard is a convicted felon.
The St. Louis County Police Department investigated the case. Assistant United States Attorney Sara Koppenaal handled the case.
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Judge sentences St. Louis man for being a felon in possession of a firearmRead the Press Release
ST. LOUIS, MO – United States District Judge Henry E. Autrey sentenced Shaun Williams to 37 months in prison. The 37-year-old St. Louis, Missouri resident pleaded guilty to being a felon in possession of a firearm.
On September 8, 2019, Williams was approached by St. Louis County Police after officers saw him getting out of a vehicle reported stolen in St. Louis City. Williams, after being told he was being detained in reference to the stolen vehicle, ran from officers. Additional officers responded to search the area and found Williams in the backyard of a vacant home. Officers found a loaded Hi Point Model 995 rifle-style firearm in the backseat of the stolen car Williams had been driving. Williams admitted he ran from officers due to his knowledge of the firearm in the car.
The St. Louis County Police Department investigated the case.
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Judge sentences Jefferson County woman for production of child pornography chargesRead the Press Release
ST. LOUIS, MO – United States District Judge Rodney Sippel sentenced Heather McDorman to 288 months (24 years) in prison today. The 32-year-old Barnhart, Missouri resident pleaded guilty to five counts of producing child pornography and two counts of attempting to produce child pornography.
According to court documents, between February 1, 2018 and March 12, 2018, McDorman, at the direction of her boyfriend and co-defendant Zachary Hamby, attempted to take pornographic photographs of children in restrooms at South County Mall, Walmart, other area malls, park bathrooms and a church bathroom. McDorman, at the direction of co-defendant Hamby, also sexually abused a child and photographed and livestreamed some of the abuse so that Hamby could view it. The abuse was produced using an IPhone and then mailed, shipped or transported in interstate and foreign commerce.
The St. Louis County Police Department and the Federal Bureau of Investigation investigated the case. Assistant United States Attorney Colleen Lang handled the case.
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Heroin Trafficker Sentenced to 6 Years in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that BRIAN HANNA, also known as “Zo,” 52, of Brooklyn, New York, was sentenced today by U.S. District Judge Janet C. Hall in New Haven to 72 months of imprisonment, followed by four years of supervised release, for trafficking heroin.
According to court documents and statements made in court, this matter stems from a joint investigation headed by the DEA New Haven Task Force and the Waterbury and Naugatuck Police Departments into a heroin and cocaine trafficking operation headed by Keith Jordan of Waterbury. The investigation, which included the use of court-authorized wiretaps, physical surveillance and controlled purchases of narcotics, revealed that Jordan was receiving large quantities of heroin from various suppliers, including Hanna, and selling to drug to other distributors and street-level customers. Jordan also purchased and distributed cocaine.
On March 13, 2019, a grand jury in Hartford returned an indictment charging Hanna, Jordan, and 27 other individuals with various offenses related to the distribution of heroin, fentanyl, cocaine and crack cocaine.
On March 21, 2019, in association with the arrest of several of Hanna’s codefendants, investigators seized approximately 3,000 bags of heroin, 400 grams of cocaine, 350 grams of fentanyl/heroin mixed, 400 grams of heroin, 10 grams of crack, 20 pounds of marijuana, fentanyl patches, a one-kilogram press, four handguns, approximately $120,000 in cash and four vehicles.
Hanna was arrested in Texas on April 19, 2019. On November 7, 2019, he pleaded guilty to one count of conspiracy to distribute, and to possess with intent to distribute, 100 grams or more of heroin.
Hanna, who is released on a $200,000 bond, is required to report to prison on December 16, 2020.
Jordan pleaded guilty to related charges and awaits sentencing.
This investigation has been conducted by the Drug Enforcement Administration New Haven Task Force, Waterbury Police Department and Naugatuck Police Department, with the critical assistance of the U.S. Secret Service, New York Field Office. The DEA New Haven Task Force includes participants from the U.S. Marshals Service, Internal Revenue Service – Criminal Investigation Division, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia, Meriden, Derby, Middletown, Naugatuck and Waterbury Police Departments.
The case is being prosecuted by Assistant U.S. Attorneys S. Dave Vatti and Nathaniel J. Gentile.
Harrison Arkansas Man Charged in Connection to Setting A Wildland Fire in Buffalo National RiverRead the Press Release
Fort Smith, Arkansas – David Clay Fowlkes, First Assistant United States Attorney for the Western District of Arkansas, announced that Jacob Walls, age 28, of Harrison, Arkansas, has been arrested and charged in connection to a wildland fire set in February 2019 within the Buffalo National River.
In February 2019, National Park Service (NPS) Firefighters and US Park Rangers were dispatched to the report of a wildland fire, in Newton County, near Pruitt. The indictment alleges that Walls willfully and without authority and consent of the United States set fire to National Park Service land. The fire was contained by NPS Firefighters to prevent its spread onto private lands. Walls was indicted by a Federal Grand Jury in March and a trial date has been set for December 7, 2020. The Honorable Mark E. Ford, United States Magistrate Judge, presided over the arraignment in the United States District Court in Fort Smith.
The case was investigated by the National Park Service (NPS), Investigative Services Branch, the US Park Rangers at Buffalo National River, the Newton County Sheriff’s Department and the 14th Arkansas Judicial District Prosecutor's Office. Assistant United States Attorney Claude Hawkins is prosecuting the case for the United States.
An indictment is an allegation and Wells is presumed innocent until convicted. Wells faces up to five years in prison and fines up to $250,000.00 if convicted.
Guyanese National Pleads Guilty to Illegal Re-Entry into the United StatesRead the Press Release
St. Thomas, USVI – United States Attorney Gretchen C.F. Shappert announced today that Warren Michael Whyte, a citizen of Guyana, appeared before United States Magistrate Judge Ruth Miller in the District Court and entered a guilty plea to the charge of illegal re-entry of removed alien. He faces up to ten years in federal prison.
According to Court documents, on March 14, 2020, an Immigration Customs Enforcement (ICE) Deportation Officer received information from a credible source of information (SOI) that an individual who was previously deported from the United States was working in the Smith Bay area in St. Thomas, V.I. at an auto repair shop called "Auto World". Criminal and immigration records checks were completed and revealed that on June 18, 2002, Warren Whyte was ordered removed from the United States by the Immigration & Naturalization Service to his native country of Guyana as an aggravated felon due to his prior felony conviction.
Court records show that on March 17, 2020, at approximately 7:00 a.m., an ICE officer observed an individual who appeared to be the person identified in the picture as Warren Whyte. Officer Williams conducted a vehicle stop on VI Route 40 of the vehicle the individual was driving. During the encounter, Whyte freely admitted that his name was Warren Whyte. He was taken into custody and transported to ICE office where his fingerprints revealed a positive match to his prior record of deportation.
This case was investigated by the U. S. Immigration and Customs Enforcement, and is being prosecuted by Assistant United States Attorney Juan A. Albino.
Fort Thomas Man Sentenced to 90 Months for Distribution of Child PornographyRead the Press Release
COVINGTON, Ky. - A Ft. Thomas, Kentucky man, James Hamilton, 52, was sentenced to 90 months on Friday, by U.S. District Judge David Bunning, for distribution of child pornography.
According to his plea agreement, between January 31, 2018 and March 1, 2018, an investigator with the Kentucky Internet Crimes Against Children (ICAC) task force traced a computer, which had connected to Bit Torrent and downloaded files depicting minors engaged in sexually explicit conduct, to a computer in Hamilton’s possession. After a search warrant was obtained, Hamilton’s laptop was seized by law enforcement, who later found the suspected files, along with over 600 images depicting minors engaged in sexually explicit conduct.
Hamilton pleaded guilty in June 2020.
Under federal law, Hamilton must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for 10 years, following his release.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Jerry C. Templet Jr., Special Agent in Charge, Department of Homeland Security Homeland Security Investigations; and Chief Craig Sorrell, Campbell County Police Department, jointly announce the sentence.
The investigation was conducted by HIS and the Campbell County Police Department. The United States was represented in the case by Assistant U.S. Attorney Wade Napier.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Former U.S. Navy Chief Petty Officer Sentenced for Bribery Conspiracy with Foreign Defense ContractorRead the Press Release
NEWS RELEASE SUMMARY – October 30, 2020
SAN DIEGO – Former U.S. Navy Chief Petty Officer Brooks Alonzo Parks was sentenced today to 27 months in prison and $25,405.76 in restitution for federal bribery conspiracy charges by U.S. District Judge Janis L. Sammartino.
Parks is the latest U.S. Navy official to be sentenced in the wide-ranging corruption and fraud investigation involving foreign defense contractor Leonard Glenn Francis and his Singapore-based company, Glenn Defense Marine Asia (GDMA).
"Parks traded on his important position of trust, selling his loyalty to a foreign defense contractor," said U.S. Attorney Robert S. Brewer. "Today’s sentence reinforces our commitment to promote respect for the law and to advocate for just punishment." U.S. Attorney Brewer commended the work of Assistant U.S. Attorney Mark Pletcher and the stellar team of law enforcement agents who dedicated countless hours to the successful investigation and prosecution of the GDMA corruption scheme.
"Brooks Parks’ sentencing is another unfortunate but fitting outcome because he willingly chose to put himself and his greed before the needs of the U.S. Navy," said Bryan D. Denny, Special Agent in Charge of the Defense Criminal Investigative Service (DCIS), Western Field Office. "Mr. Parks succumbed to and personally benefited from the corrupt temptations provided to him by the disgraced Department of Defense contractor Glenn Defense Marine Asia, Ltd. and its chief executive officer Leonard Francis. His actions were and remain inconsistent with the core values of the Navy and as this investigation demonstrates, the DCIS will work diligently with its law enforcement partners to protect those core values and associated taxpayers’ dollars the Department of Defense and the military services so immeasurably value."
"Ret. Chief Petty Officer Parks, who previously held a position of trust and responsibility within the Navy, betrayed his former service and deserves to be held accountable for illicitly seeking to receive gifts and other items of value in exchange for using his influence to benefit GDMA," said Special Agent in Charge Eric Maddox of the NCIS Economic Crimes Field Office. "NCIS and our law enforcement partners remain dedicated to rooting out corruption and fraud that threatens the integrity of the Navy’s acquisition process and wastes taxpayer money."
Parks, 48, of Upper Marlboro, Maryland, earlier this year pleaded guilty to one count of conspiracy to commit bribery, admitting that he conspired with Francis and others to receive things of value, including luxury hotel and travel expenses in exchange for taking official acts for the benefit of GDMA and violating his official duties to the United States Navy.
Francis pleaded guilty in 2015 to bribery and fraud charges, admitting that he presided over a massive, decade-long conspiracy involving scores of U.S. Navy officials, tens of millions of dollars in fraud and millions of dollars in bribes - from cash, prostitutes and luxury travel accommodations to Cuban cigars, Kobe beef and Spanish suckling pigs.
According to admissions made as part of his guilty plea, from December 2005 to February 2009, Parks, a Petty Officer First Class, served as the Logistics Lead Petty Officer ("LPO") on the staff of Commander, U.S. Navy Seventh Fleet, embarked on the USS Blue Ridge, the command ship for the Seventh Fleet. Parks was actively involved in managing the Seventh Fleet’s logistics support budget, signing and processing invoices, and performing other supervisory logistics functions for the Seventh Fleet.
Parks admitted that from March 2006 through March 2010, Francis paid for lavish hotel accommodations for Parks and his friends throughout Asia, as the USS Blue Ridge came into port. Parks had expensive taste and wasn’t restrained in demanding ever more luxuriant accommodations from GDMA. In one instance, Parks demanded the $4,800 per night Ritz Carlton Suite in Singapore, though he was ultimately provided
Executive Club Rooms at the Singapore Hilton at a cost of $3,400 for himself and his friends. In another instance related to a port visit in Hong Kong, Parks demanded "3 suites at a 5-star hotel," for himself. He specified, "I’m wanting a Presidential KING Suite (5 Star))." As Parks put it, "the Glen [GDMA] bug had bit the sh** out of me!!!" He assured Francis, "You know I’ve got your back like you’ve got mine."
In return for these bribes, Parks approved and expedited GDMA invoices and payment requests, provided substantial bidding and pricing information to GDMA as part of GDMA’s effort to crush its competitor in the Philippines, and provided limited ship port visit scheduling information.
So far, 34 defendants have been charged and 23 have pleaded guilty as part of this investigation, many admitting they accepted luxury travel and accommodations, meals or services of prostitutes from Francis in exchange for helping GDMA win and maintain contracts and overbill the Navy by millions of dollars.
DEFENDANT Case Number: 18-CR-3657-JLS
Brooks Alonzo Parks Age: 48 Upper Marlboro, Maryland
SUMMARY OF CHARGES
Conspiracy to Commit Bribery, in violation of 18 U.S.C. § 371
Maximum Penalty: Five years in prison, a $250,000 fine
INVESTIGATING AGENCIES
Defense Criminal Investigative Service
Naval Criminal Investigative Service
Defense Contract Audit Agency
Flandreau Man Charged with Sexual Abuse of a MinorRead the Press Release
United States Attorney Ron Parsons announced that a Flandreau, South Dakota, man has been indicted by a federal grand jury for Sexual Abuse of a Minor.
Stephon Ross, age 28, appeared before U.S. Magistrate Judge Daneta Wollmann and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is 15 years in a federal prison, and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Ross knowingly engaging in a sexual act with a minor female, who had not attained the age of 16 and was at least four years younger than Ross.
The charge is merely an accusation and Ross is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Megan Poppen is prosecuting the case.
Ross was released on bond pending trial. A trial date has been set for January 5, 2021.
Fayette County Woman Pleads Guilty to Drug CrimeRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart announced today that Trina Tellez-Mullins, 36, of Oak Hill, pled guilty to a single count indictment charging her with possession with intent to distribute 50 grams or more of methamphetamine.
“433 grams of meth,” said United States Attorney Mike Stuart. “Drug dealers utilize planes, trains, automobiles and the U.S. mail to bring dangerous and deadly drugs into our communities. Regardless of the method of transportation, our law enforcement partners are highly successful at interdicting these drug shipments before they ever hit our streets.”
Tellez-Mullins admitted that on September 28, 2017, she possessed approximately 433.1 grams of methamphetamine at the Greyhound station in Beckley which she intended to distribute. Law enforcement had interdicted the drug package that was en route from California via Greyhound bus to Tellez-Mullins in Beckley. Federal agents arranged a controlled delivery and arrested Tellez-Mullins at the Beckley bus station when she accepted the package of methamphetamine.
Tellez-Mullins faces a mandatory minimum sentence of 10 years to life in prison when she is sentenced on February 18, 2021.
The Drug Enforcement Administration (DEA) conducted the investigation. United States District Judge Frank W. Volk presided over the hearing. Assistant United States Attorney Nick Miller is handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:20-cr-00119.
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Eufaula Man Pleads Guilty to Robbery, Burglary in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Jeremy Sanuel Hooten, a/k/a Jeremy Samuel Hooten, age 19, of Eufaula, Oklahoma entered a guilty plea to Robbery In Indian Country, in violation of Title 18, United States Code, Sections 2111, 2, 1151 and 1153, punishable by not more than 15 years imprisonment, a fine up to $250,000.00, or both; and to First Degree Burglary In Indian Country, in violation of Title 18, United States Code, Sections 2, 1151 and 1153(b) and Title 21 Oklahoma Statutes, Section 1431, punishable by not less than 7 years and not more than 20 years imprisonment, a fine up to $250,000.00, or both.
The Indictment alleged that on or about April 7, 2020, within the Eastern District of Oklahoma, in Indian Country, the defendant, an Indian, by force, violence, and intimidation, did take and attempt to take items of value from N.M.’s person and presence.
The Indictment further alleged that on or about April 7, 2020, within the Eastern District of Oklahoma, in Indian Country, the defendant, an Indian, by breaking and entering into the dwelling house occupied by and in the possession of N.M., in which there was at the time and place a human being present, to wit: N.M. and T.A., by forcibly bursting and entering into the home through the front door, without the consent of said occupant, and with the intent to commit a crime therein, while being aided by one confederate then actually present.
The charges arose from an investigation by the Federal Bureau of Investigation.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Special Assistant United States Attorney Cory Ortega represented the United States at the plea hearing.
El Salvador National Sentenced to 72 Months for Methamphetamine Distribution, Illegal Reentry of Previously Removed AlienRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Pablo Geovanni Aguirre-Rodriguez, age 37, of El Salvador was sentenced to 72 months’ imprisonment, and 4 years of supervised release for Possession With Intent To Distribute Methamphetamine and Illegal Reentry Of Previously Removed Alien. The charges arose from an investigation by the Wagoner County Sheriff’s Office and the Department of Homeland Security - Homeland Security Investigations.
The Indictment alleged that on or about December 19, 2019, in the Eastern District of Oklahoma, the defendant knowingly and intentionally possessed with intent to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance. The Indictment also alleged the defendant, an alien, was found in the United States after having been removed therefrom on or about April 10, 2013 at or near Phoenix, Arizona, and not having obtained the express consent of the Secretary of Homeland Security to reapply for admission to the United States.
United States Attorney Brian J. Kuester said, “The defendant, while in this country unlawfully, was in the business of dealing methamphetamine. Because of the diligent efforts of the Wagoner County Sheriff’s Office and Homeland Security Investigations, his business here has ended. Each time a drug dealer is brought to justice, communities become safer.”
“The public safety risk that drug traffickers pose to our communities and their consumers is dire. Ending the livelihood of these self-serving traffickers is a top priority for Homeland Security Investigations and our law enforcement partners worldwide,” said Ryan L. Spradlin, Special Agent in Charge of HSI’s Dallas Field Office. “We will attack these criminal organizations at their core to end the mayhem they cause.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Ryan Conway represented the United States.
Drug Ring Leader Darnell “Bam Bam” Seagers Sentenced to Twenty Years in Federal Prison on Drug and Gun ChargesRead the Press Release
Charleston, South Carolina --- United States Attorney Peter M. McCoy, Jr., announced today that Darnell Seagers, also known as “Bam Bam,” 30, of Charleston, was sentenced to 20 years in federal prison after a jury convicted him of multiple counts of being a felon in possession of firearms, conspiracy to distribute crack cocaine, possession with intent to distribute cocaine, crack cocaine, and methamphetamine, and possession of a firearm in furtherance of drug trafficking crimes.
“With this lengthy sentence, a violent criminal is off the streets, a drug trafficking organization has been hobbled, and the local community is safer,” said U.S. Attorney McCoy. “The Defendant’s conduct here was especially egregious. He continued his violence well after his arrest by using bribery, threats, and violence to try and derail his case. He was thwarted in these efforts and ultimately convicted thanks to the steadfast work of our federal, state, and local partners.”
“The successful results of this investigation highlight not only the criminal acts violent offenders like Darnell Seagers are willing to commit in furtherance of their drug trafficking organizations, but the relentless commitment of law enforcement to ensure these bad actors are brought to justice,” said Vincent C. Pallozzi, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) Charlotte Field Division. “ATF values its partnership with the Charleston Police Department and will continue to work vigorously with all of our law enforcement partners to protect the citizens of South Carolina.”
“We will continue the all-important work of strategic partnering with our law enforcement partners to better serve the citizens of Charleston,” said Charleston Police Chief Luther Reynolds. “Cooperation must be the focal point of our effort and cooperative investigation resources must be pooled in more and more cases. Through combined efforts, such as this, career criminals that prey upon our citizens are removed from society making our city safer.”
Evidence presented at the trial showed that Seagers was the leader of a drug trafficking organization operating out of multiple apartments in the Gadsden Green public housing facility in downtown Charleston. Over the course of six months beginning in May of 2018, agents from ATF and officers from the Charleston Police Department used a confidential informant to make and record drug transactions with Seagers and other members of the drug trafficking organization.
During this time, Seagers was arrested on an outstanding warrant for armed robbery by the United States Marshal’s Fugitive Task Force. When deputy marshals arrested Seagers at his wife’s home in Goose Creek, they discovered a loaded stolen handgun and thousands of dollars of cash. Evidence presented at trial showed that shortly after obtaining a bond from the state court on the armed robbery charge, Seagers went right back to selling drugs in Gadsden Green.
In October of 2018, ATF and the Charleston Police Department concluded their investigation and took down the drug trafficking organization. Agents and officers accompanied by a Charleston Police Department SWAT team arrested Seagers and executed a search warrant on the apartment where he was dealing drugs. Law enforcement officers discovered four firearms, a large quantity of crack cocaine, powder cocaine, marijuana, and pills containing methamphetamine. Four other members of the drug trafficking organization were also arrested and have plead guilty to various federal drug charges.
In the months leading up to his trial, Seagers attempted to interfere with the Government’s case in several ways. Evidence presented to the Court showed that Seagers attempted to bribe one of the Government’s key witnesses not to appear at trial, and Seagers threatened a member of the witness’s family. Additional testimony also showed that Seagers offered to pay a fellow inmate who was scheduled to be released on bond to kill a witness and a codefendant in the case. Despite these efforts, Seagers was convicted on all counts.
United States District Judge Richard M. Gergel sentenced Seagers to 240 months in federal prison each, to be followed by a four-year term of court-ordered supervision. There is no parole in the federal system.
The case was investigated by the ATF, Charleston Police Department, and United States Marshals. Assistant United States Attorneys Chris Schoen and Charlie Bourne of the Charleston office prosecuted the case.
This case was prosecuted as part of the joint federal, state, and local 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.
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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.
Collin County Man and Woman Sentenced for Heroin Overdose DeathRead the Press Release
PLANO, Texas – A Collin County couple have been sentenced for their involvement in a heroin overdose death in the Eastern District of Texas announced U.S. Attorney Stephen J. Cox today.
Conner Richard Schaeffer, 28, and Megan Deshane Daniel, 26, both of Frisco, pleaded guilty earlier this year to conspiracy to distribute and possess with intent to distribute heroin. Schaeffer was sentenced to 240 months in federal prison by U.S. District Judge Sean Jordan on Oct. 29, 2020. Daniel was also sentenced on Oct. 29, 2020 to 180 months in federal prison.
According to information presented in court, beginning in August 2018, Schaeffer and Daniel conspired to distribute heroin in the Collin County area, and their conspiracy resulted in the death of an individual on Oct. 28, 2018, at a McKinney hospital.
The investigation established that “E.C.” and the overdose victim, “P.C.,” had visited Daniel and her boyfriend Schaeffer at a residence in Frisco, Texas. At the time, Daniel and Schaeffer were engaged in a conspiracy to distribute heroin and other narcotics from the residence. At the home, Daniel injected both P.C. and E.C. with heroin at their request and in the presence of Schaeffer. According to witnesses, P.C. immediately began showing signs of distress consistent with an overdose. Instead of calling 911, the parties took P.C. to the hospital on their own. At the hospital, staff performed CPR on P.C., but their efforts to revive P.C. were unsuccessful and P.C. was pronounced dead shortly thereafter. Further evidence showed that Schaeffer and Daniel had attempted to hide their role in P.C.’s death by deleting text messages and by urging E.C. not to tell the truth about what happened.
This case was investigated by the Frisco Police Department, McKinney Police Department, and the Collin County Medical Examiner’s Office and prosecuted by Assistant U.S. Attorney Matthew T. Johnson.
Clark Summit Man Sentenced for Violations of Clean Water Act and Tampering with Government WitnessRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that David D. Klepadlo, age 65, of Clark Summit, Pennsylvania, was sentenced on October 28, 2020, by United States District Court Judge Malachy E. Mannion to three years of supervised release, including one year of home detention, for violation of the Clean Water Act and tampering with a government witness.
According to United States Attorney David J. Freed, Klepadlo pled guilty to falsifying required Pennsylvania Department of Environmental Protection (PADEP) and the U.S. Environmental Protections Agency (EPA) documents over a period of several years. Klepadlo also pleaded guilty to tampering with a government witness at the onset of the criminal investigation by encouraging that witness to either not cooperate at all or lie to the FBI.
David D. Klepadlo & Associates, Inc. (Klepadlo’s company) also pled guilty to falsifying PADEP and EPA docs and was sentenced to five years of probation and a $10,000 fine.
Klepadlo was certified by the Commonwealth of Pennsylvania as a waste water treatment plant operator. Klepadlo and his company contracted with local municipalities to operate and manage the municipalities’ waste water treatment plants in accordance with regulations and limitations in permits issued by the Pennsylvania Department of Environmental Protection (PADEP) and the U.S. Environmental Protections Agency (EPA).
The permits required that the permittee at all times maintain in good working order, and properly operate all facilities and systems installed and used to achieve compliance with the terms and conditions of the permits. For approximately two years, beginning in May 2012 and continuing through June 2014, Klepadlo and his company failed to properly operate and maintain the facilities (Greenfield Township Sewer Authority, Lackawanna County, and the Benton/Nicholson Sewer Authority, both Lackawanna and Wyoming Counties) and systems of treatment and control, in accordance with terms and conditions of the permits.
Klepadlo knowingly failed to take daily and weekly samples and measurements required for the purpose of monitoring pollutants discharged into waterways of the United States; knowingly created false test results and falsely reported those results in discharge monitoring reports submitted monthly to the PADEP and the EPA. Klepadlo also admitted to attempting to persuade a government witness to fabricate a false explanation for the Clean Water Act violations for the purpose of influencing testimony of a witness in an official proceeding involving the testing and registering requirements of the permits.
Waste water from the Greenfield publicly-owned treatment plan is discharged into a tributary of Dundaff Creek, which flows into Tunkhannock Creek, which flows into the Susquehanna River. Waste water from the Benton/Nicholson facility flows into a tributary of South Branch Tunkhannock Creek, which also flows into the Susquehanna River.
The charges were the result of a jointly conducted investigation by the Environmental Protection Agency, the Pennsylvania Department of Environmental Protection, and the Federal Bureau of Investigations. Assistant United States Attorney Michelle Olshefski and Special Assistant Martin Harrell prosecuted the case.
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Cedar Rapids Man Indicted for Unlawful Possession of an AR-15 Assault Rifle at Iowa City ProtestRead the Press Release
DAVENPORT, Iowa- United States Attorney Marc Krickbaum announced on October 30, 2020, Brandon Tumause Owen, age 20, of Cedar Rapids, was indicted by a federal grand jury for one count of Unlawful Drug User in Possession of a Firearm, in violation of Title 18 U.S.C. Sections 922(g)(3) and 924(a), after he brandished an AR-15 assault rifle during a June protest in Iowa City. According to public records, Owen was stopped on June 7, 2020, by Iowa City Police for a traffic offense. An impaired driving investigation was performed and indicated Owen was under the influence of marijuana. An AR-15 rifle was located inside Owen’s vehicle. Under federal law, it is illegal for an unlawful drug user to possess firearms.
“Our Constitution protects everyone’s right to peacefully protest against injustice,” said United States Attorney Marc Krickbaum. It does not protect anyone’s right to illegally carry and publically brandish an AR-15. We will prosecute those – including protestors – who commit federal gun crimes.”
After the indictment of Owen, FBI Omaha’s Special Agent in Charge Eugene Kowel said, “The FBI holds sacred the rights of individuals to peacefully exercise their First Amendment freedoms. When someone threatens the safety of peaceful protestors, we will step in to protect them.”
The public is reminded that charges contain only accusations and are not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
These cases are part of Project Guardian (PG) and Project Safe Neighborhoods (PSN), programs bringing together all levels of law enforcement and the communities they serve to reduce gun crime and make our neighborhoods safer for everyone.
This matter is being investigated by the Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, Iowa City Police Department, and the Iowa Department of Public Safety. The case is being prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Caldwell Man Sentenced to Prison on Federal Gun ChargesRead the Press Release
BOISE – Frank Ocegueda-Munoz, 23, of Caldwell, was sentenced to 71 months in federal prison for two counts of unlawful possession of a firearm, U.S. Attorney Bart M. Davis announced today. A federal grand jury indicted Ocegueda-Munoz on January 14, 2020.
According to court records, Nampa police officers encountered Ocegueda-Munoz, a passenger, during a traffic stop on February 18, 2019. He possessed a loaded 12-gauge shotgun between his feet and legs. Ocegueda-Munoz is prohibited from possessing firearms due to a prior felony drug conviction. Officers arrested Ocegueda-Munoz and took him to jail, where they found almost six grams of methamphetamine on his person. Ocegueda-Munoz subsequently posted bail and was released from state custody.
The following month, on March 16, 2019, Caldwell police officers stopped Ocegueda-Munoz for a traffic violation. Ocegueda-Munoz initially complied with officers. However, Ocegueda-Munoz sped away from the scene before the traffic stop concluded. As he sped away, an officer was injured in his attempt to avoid being struck by the vehicle. Ocegueda-Munoz later crashed his vehicle and fled on foot. Officers eventually located Ocegueda-Munoz, at which point he resisted arrest. A search of the abandoned vehicle revealed another 12-gauge shotgun, a digital scale, and small plastic baggies. It was later determined that this shotgun was stolen during a burglary.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Nampa Police Department, and Caldwell Police Department.
This case was part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case 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 visit: www.justice.gov/projectguardian.
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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.
CEO, CFO, President, and Owner of Sober Homes Network “Serenity Ranch Recovery” Sentenced Following Conviction at TrialRead the Press Release
Miami, Fl. -- Today, a federal district judge in Ft. Lauderdale sentenced defendant Sebastian Ahmed, 42, of Delray Beach, Florida, to a term of 210 months’ imprisonment and restitution in the amount of $ 4,231,288 following his conviction after a six-week jury trial of conspiracy to commit health care fraud and wire fraud, five counts of health care fraud, conspiracy to commit money laundering, and eleven counts of money laundering.
Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation, and Omar Perez Aybar, Special Agent in Charge, U.S. Department of Health and Human Services-Office of Inspector General made the announcement.
As part of the scheme, the conspirators exploited vulnerable drug addicts, the majority of whom were 18 to 26 years ago; falsified paperwork; and entered into various kickback arrangements, all in order to receive millions of dollars of falsely and fraudulently obtained funds for their own personal use and benefit. As demonstrated by the trial record, of all the conspirators, no one profited more than Sebastian Ahmed, who netted more than $2.8 million in less than three years.
The government established at trial that Sebastian Ahmed was the CEO, president and CFO of the two substance abuse treatment centers: Jacob’s Well and Medí MD; and the medical health clinic, Arnica Health, all of which he operated under the umbrella of Serenity Treatment Center, Serenity Living, and “Serenity Ranch Recovery” in Davie, Florida. Ahmed operated the three clinics from in or around June 2016 through May 2019. He employed his brother, Ali a/k/a “Al” Ahmed as the COO. Testimony revealed that Al Ahmed had previously declared bankruptcy having been found liable in a civil suit brought by his former employer, Kaplan University, for stealing confidential lead information from Kaplan.
The government emphasized at trial that defendant (1) engaged in illegal billing to private insurance plans through Jacob’s Well prior to the clinic being certified by DCF in February 9, 2017; (2) provided unlawful inducements to the approximately 500 patients consisting of free airline travel, housing, vapes, manicures, cash, and failure to collect patient responsibilities for co-pays and deductibles; and (3) billed for medically unnecessary therapeutic services consisting of therapy and urine analyses, the former having not been provided but billed by defendant’s substance abuse clinics. The patients were also permitted to reside in co-ed housing in which destructive sexual relationships, not conducive to real addiction treatment, formed – sometimes between the staff and patients, according to the testimony and evidence.
According to court documents and evidence presented at trial, the patients consisted of young adults in their twenties who primarily were addicted to opioids and other drugs of abuse. Many of the patients were permitted to remain on their parents’ private insurance plans up to age 26.
The patients resided in a series of so-called sober homes maintained by defendant in Davie, Southwest Ranches, Hollywood and Pompano. None of these homes were certified by DCF as approved community housing for persons engaged in a substance abuse treatment program.
Former Serenity employees including co-defendants Mauren Morel and Hector Alvarez, both Clinical Social Workers in the State of Florida, testified that they prepared fake progress notes to support fraudulent billing for daily group therapy sessions that patients did not attend. They testified that they did so at the defendant’s direction, and that claims were even submitted for dates when patients were not physically present.
Government expert witness Dr. Kelly Clark was a board certified addiction medicine specialist and clinical psychiatrist. She focused her career on issues of addictive disease. She testified that the manner in which Serenity’s medical providers prescribed buprenorphine and benzodiazepines to a drug abusing population was medically inappropriate and potentially dangerous. Patient-witnesses and the parent of a former patient likewise testified that Serenity caused their addictions to intensify rather than improve, and that multiple patients suffered overdoses and relapses that went unaddressed by the staff at Serenity. Indeed, the record showed that Sebastian Ahmed failed to report a single overdose incident to DCF as required by law, and that multiple patients were cycled back and forth between detox centers and Serenity without apparent improvement in their condition. Evidence that Serenity permitted and even procured addictive drugs for its patients was presented at trial, and medical records introduced as trial exhibits revealed that the doctors did not check the expensive urine screens that were being ordered until well after patients’ discharge. These urine screens revealed repeat positives for, among other drugs, methamphetamine, heroin, cocaine, and prescription narcotics.
From June 2016 through May 2019, the government attributed approximately $38 million in fraudulent billing submitted by defendant’s clinics which resulted in the reimbursement of over $6 million in payments.
Co-conspirators and former co-defendants Ali a/k/a Al Ahmed, the defendant’s brother; and Hector Alvarez and Mauren Morel, the clinical directors at two of the facilities, were also charged and pled guilty in connection with the fraud. Ali a/k/a Al Ahmed, who served as a Chief Operating Officer and co-owner of the facilities, was sentenced to ten years’ imprisonment. Hector Alvarez and Mauren Morel, both of whom testified at trial against Sebastian Ahmed, each received sentences of 32 months’ imprisonment. These three former co-defendants were sentenced by United States District Judge Federico A. Moreno prior to the trial.
Ms. Fajardo Orshan commended the investigative efforts of FBI and HHS-OIG. Support for the investigation was also provided by the Drug Enforcement Administration, Davie Police Department, Broward Sheriff’s Office, Palm Beach Sober Homes Task Force, and the Florida Department of Children and Families. The case is being prosecuted by Assistant U.S. Attorneys Christopher J. Clark and Lisa H. Miller. Assistant U.S. Attorneys Nicole Grosnoff and Peter Laserna are handling the asset forfeiture component of the case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
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Alleged Murderer Charged with Possession of a SilencerRead the Press Release
A Rowlett man who allegedly gunned down his ex-girlfriend in the midst of a bitter custody dispute has been charged with possessing an unlicensed firearm silencer, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Andrew Charles Beard, 33, was charged via criminal complaint. He was arrested Thursday afternoon and made his initial appearance before Magistrate Judge Renee Toliver Friday morning.
“Given the brutality of his alleged crimes, it’s unthinkable that Mr. Beard bonded out of county jail,” said U.S. Attorney Erin Nealy Cox. “I am proud that our federal law enforcement partners acted quickly so that we could file federal charges. It is our fervent hope that justice will be swift, and that Mr. Beard will be kept behind bars — state or federal — before he can inflict more harm.”
“ATF is steadfast in its pursuit of domestic abusers in possession of firearms illegally. Mr. Beard will now face the full force of the United States Justice Department and all of its law enforcement partners,” said ATF Special Agent in Charge of the Dallas Field Division Jeffrey C. Boshek II.
According to the complaint, Mr. Beard allegedly attacked his ex-girlfriend, Alyssa Burkett, outside her office on Oct. 2. Ms. Burkett, who was found with multiple stab wound to her torso and a possible gunshot wound to the head, died at the scene.
A coworker, identified in the complaint by the initials “M.J.,” told officers she’d observed a black-clad man climb out of a truck and take aim at the victim.
Ms. Burkett’s friends and family informed officers that she and Mr. Beard were involved in an acrimonious dispute over the custody of their child. Two days prior to the shooting, records show, a judge awarded custody of the child to Ms. Burkett.
Ms. Burkett’s mother, “T.C.,” and her boyfriend, “B.E.,” told officers that Ms. Burkett feared Mr. Beard would kill her. B.E. said Mr. Beard was “overly obsessed” with the victim and their child. Her coworker, “M.J.,” reiterated the same concern, adding that Ms. Burkett was worried she was being tracked by Mr. Beard, who always seemed to know her location.
After the murder, investigators recovered a black Spy Bot box and tracking device underneath Ms. Burkett’s vehicle. They found a similar tracking device on her boyfriend’s vehicle.
During a search of Mr. Beard’s residence, investigators found a matching Spy Bot battery and a third tracking device in the upstairs loft. They also uncovered a .22 caliber revolver and a homemade gun silencer zipped into a baggie inside a toolbox in the garage. (Detectives believed the silencer was homemade because the threaded portion that would attach to the barrel and the muzzle end of the silencer were off center.)
An ATF analysis revealed that the metal cylinder, which included an expansion chamber, met the federal definition of a firearm silencer.
A search of the National Firearms Registration and Transfer Record (NFRTR) did not pull up any silencers registered to Mr. Beard, and the homemade silencer recovered from Mr. Beard’s home lacked the serial number required for registration.
Federal law prohibits possession of an unregistered silencer, defined as any device designed to silence, muffle, or diminish the report of a potable firearm.
A criminal complaint is merely an allegation of wrongdoing, not evidence. Like all defendants, Mr. Beard is presumed innocent until proven guilty in a court of law.
If convicted, he faces up to 10 years in federal prison.
Following his ex-girlfriend’s death, Mr. Beard was charged by the state with murder. Last week, he was released from Dallas County Jail on $1 million bond. He was taken into federal custody on Thursday afternoon, and prosecutors will seek federal detention.
The Bureau of Alcohol, Tobacco, Firearms, & Explosives’ Dallas Field Division, the Federal Bureau of Investigation’s Dallas Field Office, and the Carrollton Police Department conducted the investigation. Assistant U.S. Attorneys Gary Tromblay and Keith Robinson are prosecuting the case.
The case was brought under Project Guardian, the Justice Department’s signature initiative to reduce gun violence using federal firearm laws.
29 October 2020
Wood County Woman Sentenced to Five Years in Federal Prison for Distribution of FentanylRead the Press Release
CHARLESTON, W.Va. – United States Attorney Mike Stuart announced today that Brooke Alexandria Kimble, 22, of Parkersburg, was sentenced to five years in federal prison for distribution of fentanyl. The five-year sentence was a significant upward departure from the U.S. Sentencing Guideline Range.
“We’re pleased with the upward departure from the sentencing guidelines,” said United States Attorney Mike Stuart. “Fentanyl kills – it’s the leading cause of overdose deaths in West Virginia. Too many families and too many kids have paid too high a price for making a terrible mistake. Excellent work by the Parkersburg Police Department and the Parkersburg Task Force.”
Kimble previously pled guilty and admitted that on January 7 and 8, 2019, while at her apartment on Avery Street in Parkersburg, Kimble sold what she believed to be heroin to a police informant. Laboratory analysis later determined the substance was fentanyl.
In imposing the sentence, United States District Judge Joseph R. Goodwin found that Kimble also had sold fentanyl on January 5, 2019 resulting in the fatal overdose of a Parkersburg man residing on Myrtle Street. Goodwin said that by continuing to sell fentanyl even after learning of the man’s death, Kimble lacked empathy for those suffering from addiction and acted in reckless disregard for human life.
The Parkersburg Police Department and the Parkersburg Narcotics Task Force conducted the investigation. Assistant United States Attorney Josh Hanks handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:19-cr-00178.
Follow us on Twitter: SDWVNews and USAttyStuart
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Windsor Man Sentenced to 41 Months in Federal Prison for Selling Heroin and Fentanyl to Overdose VictimRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that TIMOTHY CHARLEMAGNE, also known as “Red,” 44, of Windsor, was sentenced today by U.S. District Judge Janet C. Hall to 41 months of imprisonment, followed by three years of supervised release, for distributing heroin and fentanyl to an overdose victim.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the sentencing occurred via videoconference.
According to court documents and statements made in court, on April 11, 2015, members of the Enfield Police Department and medical personnel responded to an untimely death at a residence in Enfield. The victim was located in a bedroom of the residence. Investigators seized 30 empty wax folds from the bedroom where the victim was found, and the victim’s cell phone.
Analysis of the victim’s cellphone and witness interviews confirmed that the victim purchased heroin combined with fentanyl from Charlemagne shortly before the victim died.
Charlemagne was arrested on December 20, 2017. On August 30, 2018, he pleaded guilty to one count of possession with intent to distribution, and distribution of, controlled substances.
This matter was investigated by the Drug Enforcement Administration, Enfield Police Department, Windsor Police Department, Hartford Police Department and Connecticut’s Office of Adult Probation. The case was prosecuted by Assistant U.S. Attorney Jocelyn Courtney Kaoutzanis.
Wheeling man admits to selling methamphetamineRead the Press Release
WHEELING, WEST VIRGINIA – Johnnie Lee Harris, of Wheeling, West Virginia, has admitted to a drug charge, U.S. Attorney Bill Powell announced.
Harris, also known as “Jay,” 40, pled guilty to one count of “Aiding and Abetting the Distribution of Methamphetamine within 1000 Feet of Protected Location.” Harris admitted to selling methamphetamine near River Towers in Wheeling in September 2019.
Harris faces at least one and up to 40 years of incarceration and a fine of up to $2,000,000. 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 Shawn M. Adkins is prosecuting the case on behalf of the government. The Ohio Valley Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge James P. Mazzone presided.
West Michigan Urogynecologist Sentenced to Prison for Healthcare Fraud and Adulteration of Medical DevicesRead the Press Release
Roger D. Beyer, M.D., Sentenced Today and Agrees to Pay Share of Civil Settlement Totaling $1.26 Million to Resolve False Claims Act Allegations
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew B. Birge announced today that U.S. District Judge Janet T. Neff sentenced Roger D. Beyer, M.D., to 57 months of incarceration for his involvement in a conspiracy to commit healthcare fraud and 12 months of incarceration to run concurrently for the adulteration of medical devices. Judge Neff also ordered $5,000 in fines in conjunction with the charges as well as three years of supervised release to follow imprisonment for the health care fraud conspiracy charge and one year of supervised release for the adulteration charge. Dr. Beyer owned and operated the now-shuttered Urological Solutions of Michigan (“USM”), a mobile medical practice providing urological services to patients in their homes and assisted living facilities in the greater Traverse City, Grand Rapids, and Kalamazoo areas, and Women’s Health Care Specialists (WHCS), a gynecology practice located in Kalamazoo.
Judge Neff found that Dr. Beyer engaged in several fraud schemes committed by USM and WHCS, resulting in approximately $883,000 in false claims submitted by the practices and paid by Medicare. These schemes included billing pelvic muscle rehabilitation (“PMR) therapy using improper—and more lucrative—diagnostic codes, billing for evaluation and management (“E&M”) services that did not occur, and billing for the services of an unlicensed nurse assistant.
Dr. Beyer was also sentenced for the adulteration of medical devices at USM and WHCS. During the fraud investigation, investigators discovered that USM and WHCS reused a single-user rectal pressure sensor on multiple patients as part of the PMR therapy, covering the device with the finger of a surgical glove. WHCS staff also reused a single-use anorectal manometry catheter on multiple patients as part of an initial diagnostic study with patients with potential fecal incontinence, covering the device with a condom. The reuse of these medical devices was in contravention with the devices’ instructions for use and inconsistent with the device clearances by the Food & Drug Administration (“FDA”). The Federal Food, Drug & Cosmetic Act prohibits the adulteration of medical devices, which includes holding devices under “insanitary conditions” whereby they may have been contaminated with filth or rendered injurious to health.
Judge Neff enhanced Dr. Beyer’s sentencing guidelines based on the fact that an administrative law judge in 2011 ruled that USM should not bill Medicare for the PMR therapy using the diagnostic codes. Despite this explicit judicial order, Dr. Beyer and his practices continued to bill for the PMR therapy using the diagnostic codes, but submitting the billing under USM’s nurse practitioners to “fly under the radar.” Judge Neff also applied an enhancement for the reckless risk of bodily injury to patients related to the reuse of medical devices.
In issuing Dr. Beyer’s sentence, Judge Neff found that Dr. Beyer’s offense was a “significant fraud on a very valuable federal program.” Judge Neff observed that the size of the Medicare program “make it a great target for fraud . . . [but] cheating the government is really cheating all of us and particularly those who need the assistance of the arm of government.” Judge Neff pointed out that while Dr. Beyer pleaded guilty “there was a gross minimization of culpability.” Judge Neff concluded that a significant term of imprisonment was necessary to promote “punishment and respect for the law” and that a sentence of less than incarceration would not sufficiently deter others from similar conduct.
Dr. Beyer’s sentence follows the June 2020 sentencing of Mark Sabor, USM’s practice manager who pleaded guilty to conspiracy to commit healthcare fraud and was sentenced to two years in prison. The investigation also resulted in the conviction of Dr. Beyer’s wife, Susan Wright, a nurse practitioner and attorney, who pleaded guilty to failing to report ongoing fraud at Dr. Beyer’s practice to law enforcement and also the adulteration of medical devices. In September, Judge Neff sentenced Ms. Wright to three years of probation and over 3,000 hours of community service.
As part of a parallel investigation, each defendant also agreed to pay a civil settlement under the False Claims Act to resolve allegations of the submission of false claims for reimbursement to Medicare as part of the numerous alleged healthcare fraud schemes at Dr. Beyer’s practices. Ms. Wright paid $500,000; Mr. Sabor paid $150,000; and Dr. Beyer and his practices agreed to pay $610,000 within five days of sentencing.
“Dr. Beyer and the other defendants engaged in a course of fraudulent conduct for many years, despite multiple warnings—including a decision by an administrative law judge—to do things the right way,” stated U.S. Attorney Birge. “But their greed-fueled misconduct didn’t just hurt the Medicare program. Instead, by reusing single-use and single-user medical equipment in these procedures on multiple patients, they recklessly risked the lives and health of their patients. The outcome of this case demonstrates that medical professionals in our district cannot flaunt Medicare billing rules or adulterate medical devices without consequence.”
“U.S. consumers rely on FDA oversight to ensure that medical devices are safe and effective,” said Lynda M. Burdelik, Special Agent in Charge of FDA’s Office of Criminal Investigations, Chicago Field Office. “When healthcare providers disregard safety information, including single-use and single-user designations, they put patients’ health at risk. We will continue to investigate and bring to justice providers that jeopardize the public health.”
“The defendants’ involvement in healthcare fraud schemes for medical services not rendered and upcoding services provided was motivated by greed,” said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General – Chicago Region (“HHS-OIG”). “Their conduct demonstrates an aggravated indifference for the law and a disregard for the safety and well-being of vulnerable citizens given that the defendants carried on these schemes after being corrected by Medicare’s contractor and an administrative law judge and given the reuse of adulterated medical equipment on Medicare patients. HHS-OIG will continue to work with our prosecutorial and law enforcement partners to ensure that those who commit these criminal acts are held accountable.”
Dr. Beyer and Susan Wright broke laws designed to protect Medicare and regulations designed to protect patient safety. Their behavior was in direct conflict with the oath they took to ‘do no harm,’” said Federal Bureau of Investigation (“FBI”) Acting Special Agent in Charge David G. Nanz. “The FBI in Michigan will continue to investigate the type of cases in which medical professionals put profits over patient safety and waste taxpayer dollars by defrauding publicly-funded medical care.”
This case was the result of a joint investigation by HHS-OIG, FDA’s Office of Criminal Investigations, and the FBI, in coordination with the U.S. Attorney’s Office for the Western District of Michigan. Assistant U.S. Attorney Raymond E. Beckering III prosecuted the criminal case, and Assistant U.S. Attorney Andrew J. Hull represented the United States in the civil case.
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