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Tuesday 1 September 2020
Brazilian National Charged with Paying Bribes in Exchange for ContractsRead the Press Release
BOSTON – A Brazilian national was arrested today and charged in connection with paying bribes to receive contracts for work at a collegiate institution in New York.
Willian Borges, 28, who resides in Fort Lauderdale, Fla., was charged in an indictment unsealed today on one count of conspiracy and three counts of bribery concerning programs receiving federal funds. Borges will make an initial appearance tomorrow in U.S District Court for the Southern District of Florida.
According to the indictment, Borges was a principal of DWD Builders, a general contracting firm, from 2018 to 2019. Floyd Young held positions involving facility maintenance at a New York collegiate institution. It is alleged that Young steered contracts for construction, repair, maintenance, and other work for the collegiate institution to favored contractors, including Borges, who paid him bribes, typically in the amount of 15% of the contract. Borges allegedly paid bribes to Young in cash during face-to-face meetings. In addition, as Borges received payment for work done at the collegiate institution, he paid Young bribes on a periodic basis. Borges also allegedly inflated the amount of the invoices submitted to the collegiate institution in order to be repaid the cost of the bribe payment made to Young. On occasion, Young and Borges arranged for no-work invoices to be submitted to the collegiate institution and then split the payment.
Young pleaded guilty yesterday to conspiracy to receive bribes by agent of organization receiving federal funds, and is scheduled to be sentenced on Feb. 1, 2020.
Borges faces a maximum of five years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss for Conspiracy. For each of the counts charging him with Receiving Bribes, Borges faces a maximum of 10 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. Assistant U.S. Attorney Alex J. Grant of Lelling’s Springfield Branch Office is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Berea Man Pleads Guilty to Producing Child PornographyRead the Press Release
LEXINGTON, Ky. — A Berea, Ky., man, Larry Dale Foley, Jr., 48, pleaded guilty in federal court on Tuesday, before Chief U.S. District Judge Danny Reeves, to employing, using, persuading, inducing, enticing, and coercing a minor to engage in sexually explicit conduct for the purpose of producing child pornography.
According to Foley’s plea agreement and other court records, a tip submitted to the National Center for Missing and Exploited Children, from Tumblr, showed that a blog that Foley owned had distributed 46 images and two videos of child pornography. On January 6, 2020, law enforcement searched Foley’s residence and seized electronic devices that contained child pornography. Foley was arrested and has been held in federal custody since that time.
The devices seized were processed and showed that Foley had produced child pornography of himself and a female minor, in the form of videos and still images. In his guilty plea agreement, Foley admitted to knowing that the images and videos he created with the minor victim were produced using materials that were shared via computer and cell phone.
Foley was indicted in February 2020.
“Make no mistake, the production of child pornography is a violent crime, subjecting the victim to physical and emotional abuse when it is made and then continuing that abuse each and every time it is shared,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “Protecting vulnerable victims from this type of unspeakable harm is of the highest priorities for law enforcement. I commend the outstanding investigative efforts of the FBI and the Berea Police Department that resulted in the defendant’s conviction.”
“The impact on children of being abused and exploited is life-long,” said James Robert Brown Jr., Special Agent in Charge, FBI, Louisville Field Office. “Those who prey on the vulnerability of children should know that the FBI and our law enforcement partners will never stop working to put them behind bars.”
U.S. Attorney Duncan, SAC Brown; and Chief Eric Scott, Berea Police Department, jointly announced the guilty plea.
The investigation was conducted by the FBI and the Berea Police Department. The United States was represented by Assistant U.S. Attorney David Marye.
Foley is scheduled to be sentenced in December 2020. He faces a minimum of 15 years and a maximum of 30 years in prison. However, any sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Auto Dealership Owner and Finance Manager Plead Guilty in Fraud CaseRead the Press Release
ERIE, Pa. - A resident of Harborcreek, Pennsylvania and a resident of Fairview, Pennsylvania pleaded guilty in federal court to a charge of fraud conspiracy, United States Attorney Scott W. Brady announced today.
Andrew Gabler, 51, of Harborcreek, Pennsylvania and Chad Bednarski, 49, of Fairview, Pennsylvania pleaded guilty to one count before United States District Judge Susan Paradise Baxter.
In connection with the guilty plea, the court was advised that Andrew Gabler, as the owner of Lakeside Auto Sales and Lakeside Chevrolet, and Chad Bednarski, as the finance manager of Lakeside Chevrolet, engaged in the following illegal activity between January 2015 and January 2019:
- Gabler falsely indicated that customers made down payments and falsified and inflated the income of customers when submitting auto loan applications to financial institutions on behalf of customers;
- Gabler caused extended warranties to be sold to customers buying vehicles at Lakeside Auto Sales and Lakeside Chevrolet and deliberately failed to remit the paperwork and payments to the extended warranty company;
- Gabler and Bednarski falsely reported vehicle sales to General Motors for vehicles that had not been sold in order to obtain expiring incentive rebates, and;
- Gabler and Bednarski deliberately did not inform S&T Bank when Lakeside Auto Sales and Lakeside Chevrolet sold a vehicle that the dealerships had purchased utilizing S&T Bank’s floor plan financing in order to delay and attempt to avoid the dealerships’ required payment to S&T Bank for the sold vehicles which had been purchased using S&T Bank’s floor plan financing.
Judge Baxter scheduled sentencing for January 6, 2021 at 10:00 a.m. for Gabler and 1:30 p.m. for Bednarski. The law provides for a total sentence of 30 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Gabler and Bednarski on bond.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation that led to the prosecution of Gabler and Bednarski.
Attorney General Barr Joins President Trump in Announcing $41 Million in Funding to Address Public Safety in WisconsinRead the Press Release
Attorney General William P. Barr joined President Trump today in a visit to Kenosha, Wisconsin, where the President announced $41 million in grant awards to the state of Wisconsin and local jurisdictions within the state to address a surge in community violence and ongoing civil unrest. Awards will support community-based crime-fighting initiatives, local victim service programs, and the hiring and training of law enforcement officers and prosecutors.
“Thanks to the efforts of federal law enforcement and the National Guard, working closely with our state and local partners, the streets of Kenosha have been restored from violent agitators who have abused their First Amendment rights to frighten citizens and fan the flames of disorder,” said Attorney General Barr. “As President Trump made abundantly clear today, this lawless behavior will not be allowed to stand and the federal government will provide the necessary resources to help state and local police officers who have worked hard to maintain peace and keep violence at bay. Today’s grant money will help to bolster community-based crime-fighting initiatives and provide much needed support to victims affected by the recent violence.”
President Trump and Attorney General Barr toured the city, meeting with local officials and community members to express their concern for those affected by the unrest. The President issued a stern warning to lawbreakers, saying that there would be no tolerance for violence and anarchy in this or any other city.
The grants announced today, from the Department’s Office of Justice Programs and Office of Community Oriented Policing Services, will support proven violence reduction efforts like Project Safe Neighborhoods, which enables federal, state and local agencies to coordinate enforcement activities in collaboration with community organizations. Grants will also help to hire police officers and prosecutors while allowing them to focus resources on the extraordinary public safety challenges their communities are facing. Funds will also support local organizations that provide services and support to victims affected by the recent violence and unrest.
Antitrust Division Seeks Public Comments on Updating Bank Merger Review AnalysisRead the Press Release
The Department of Justice’s Antitrust Division announced today that it is seeking public comments into whether the division should revise the 1995 Bank Merger Competitive Review guidelines (“Banking Guidelines”) to reflect emerging trends in the banking and financial services sector and modernize its approach to bank merger review under the antitrust laws. Today’s announcement is part-and-parcel of the division’s broader efforts and increased focus on protecting competition in the financial markets and follows the recent remarks and announcement by Assistant Attorney General for the Antitrust Division Makan Delrahim, concerning the realignment of commodities at the division.
“Innovative emerging technologies are disrupting traditional banking models and introducing new competitive elements to the financial sector,” said Assistant Attorney General Makan Delrahim. “As part of the division’s increased attention to modernizing our competitive analysis of financial services markets, we are examining whether the 1995 Banking Guidelines need updating to reflect our evolving economy.”
The federal antitrust laws generally apply to financial institutions in the same way as to other economic sectors. Special procedures, however, apply to the competitive review of bank mergers. The relevant bank regulatory agency must approve any bank merger application following a concurrent competitive review conducted by the division. Historically, the initial review of the large number of bank merger applications received annually by the division is done through a review process based on the Banking Guidelines using market shares, market concentration thresholds, and other market facts and conditions. The purpose of this process is to identify proposed mergers that do not have significantly adverse effects on competition and to allow them to proceed quickly. If a bank merger application raises potential competitive concerns, the division may open an investigation. In investigating the competitive effects of bank transactions, the Division applies the same federal antitrust laws and antitrust analysis that it applies to other industries, including the analytical framework set forth in the Department of Justice’s Horizontal Merger Guidelines. As set forth in the Federal Reserve and the division’s 2014 Frequently Asked Questions, the division’s review of bank mergers is “independent” from review by the Federal Reserve (and other bank regulators) and “a transaction that meets the Federal Reserve’s HHI delegation threshold still may raise concern in the division’s review.”
Although the division and the Federal Trade Commission revised their Horizontal Merger Guidelines in 2010, the Banking Guidelines have remained virtually unchanged since 1995.
PUBLIC COMMENTS
As part of its review, the division invites interested persons, including banks, other financial institutions, and industry stakeholders, to provide the division with information or comments relevant to whether the division should revise the Banking Guidelines or change the way it analyzes bank mergers to reflect modern trends in financial services and banking competition. In particular, the division seeks public comments on the issues found in the Antitrust Division Banking Guidelines Review - Public Comments Topics & Issues Guide. The division has and will continue to consult with the Federal Reserve and other banking agencies and will review and consider public comments before deciding on the most appropriate course of action.
Antitrust Division Banking Guidelines Review – Public Comments Topics & Issues Guide
Comments on the Banking Guidelines can be emailed to [email protected] and must be received no later than October 16, 2020.*
* The original version of this release stated the public comment period ended on October 1, 2020. The original 30 day comment period is now extended to 45 days.
Agents Seize $27 Million in U.S. Currency Inside Boxes Bound for St. ThomasRead the Press Release
SAN JUAN, Puerto Rico – On August 29, 2020, as a result of a joint investigation between U.S. Customs and Border Protection (CBP), the Drug Enforcement Administration (DEA), Homeland Security Investigations (HSI), the Puerto Rico Police Department, and the United States Attorney’s Office for the District of Puerto Rico, CBP officers seized undeclared currency totaling at least 27 million dollars. The currency was found inside boxes bound for St. Thomas, U.S. Virgin Islands.
CBP officers at Pier 10 in San Juan conducted an outbound cargo inspection on board the Motor Vessel (MV) Norma H II Voyage 818. During that inspection, a CBP K-9 alerted on pallets containing home moving boxes destined for St. Thomas. CBP officers opened one of the boxes and discovered U.S. currency wrapped in vacuum-sealed packages. Further inspection of the pallets revealed a total of 34 cargo boxes containing additional undeclared currency. CBP seized the currency pursuant to bulk cash smuggling laws and based on the failure to declare the currency.
This is an ongoing collaborative investigation conducted by CBP, the DEA Caribbean Field Division, HSI San Juan, the Puerto Rico Police Bureau and the United States Attorney’s Office for the District of Puerto Rico.
“This seizure is a clear indication of the success of our joint investigative efforts,” said W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico. “Puerto Rico’s geographical location, along with its status as a territory of the United States, makes it an ideal target for Transnational Criminal Organizations seeking to import narcotics into the Continental United States and facilitate the repatriation of their drug proceeds. To eradicate this threat, we will continue to aggressively attack their drug smuggling and money laundering operations – depriving them of their illegal merchandise, their profits, and a safe haven.”
“This is without a doubt a historic money seizure in the Caribbean Region. Most likely more than one Transnational Criminal Organization is involved and seriously bleeding at this very moment. We will not let our guard down, and we will continue our joint efforts between Federal and state agencies without rest. Inter-agency efforts have been excellent and we’ll continue to achieve great results,” stated DEA Caribbean Division Special Agent in Charge A.J. Collazo.
“Legal currency can be transported if properly declared under U.S. law. Transnational Criminal Organizations seek to conceal proceeds and move it as part of their criminal activities,” indicated Gregory Álvarez, CBP Director of Field Operations in Puerto Rico and the U.S. Virgin Islands. “We remain committed to working with other federal and local law enforcement partners to detect and deter smuggling attempts throughout the Caribbean.”
“In recent years, the smuggling of bulk currency has become a preferred method for drug trafficking organizations and other criminal enterprises to move illicit proceeds across our borders,” said Iván J. Arvelo, special agent in charge for HSI San Juan and the U.S. Virgin Islands. “This seizure is proof that HSI remains vigilant and that, along with our partners in the Caribbean Corridor Strike Force, we will continue using our robust investigative authorities to identify, investigate, and apprehend those involved in bulk cash smuggling,” added Arvelo.
In addition to the law enforcement partners described above, these successful efforts, including the drug and money seizures described below, would not be possible without the full support of the United States Coast Guard, Coast Guard Investigative Service (CGIS), the Federal Bureau of Investigation (FBI), CBP’s Caribbean Air and Marine Branch, Puerto Rico’s Joint Forces of Rapid Action (FURA), the United States Marshals Service (USMS), and JIATF-South.
RECENT MARITIME DRUG SEIZURES
August 27, 2020 590 kilos 4 defendants near Añasco, PR
August 24, 2020 225 kilos 3 defendants near Aruba
July 22, 2020 387 kilos 3 defendants near Añasco, PR
July 17, 2020 41 kilos 5 defendants near Añasco, PR
June 30, 2020 393 kilos 5 defendants Mona Passage
June 9, 2020 150 kilos 2 defendants Isla Saona, DR
OTHER RECENT MONEY SEIZURES
August 11, 2020 $ 150,000 CCSF/AirTAT LMMIA, PR
August 3, 2020 $ 298,010 DEA/DNCD/CCSF Samana, DR
June 29, 2020 $ 2,241,610 CCSF St. Thomas
June 10, 2020 $ 2,254,378 DEA/CBP Vieques, PR
The Caribbean Corridor Strike Force (CCSF) is a multi-agency OCDETF Strike Force operating in the District of Puerto Rico. CCSF signatory agencies include the DEA, HSI, FBI, CGIS, USMS, and the U.S. Attorney’s Office. Assistant U.S. Attorney Max Pérez Bouret is the Chief of the Transnational Organized Crime (TOC) Section and Assistant U.S. Attorney Vanessa Bonhomme is the Deputy Chief of the TOC Section and the Lead CCSF Prosecutor.
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Acting Assistant Attorney General Ethan P. Davis Announces Departure from Civil DivisionRead the Press Release
Acting Assistant Attorney General Ethan P. Davis of the Department of Justice’s Civil Division announced his departure from the Department today, effective Sept. 7, 2020. Assistant Attorney General Jeffrey Bossert Clark of the Environment and Natural Resources Division will replace Mr. Davis.
“I want to thank Ethan for stepping up and leading the Civil Division these last few months,” said Attorney General William P. Barr. “Ethan is an outstanding lawyer – his work has been integral to the Civil Division’s successes over the past few years and I know his talents and leadership will be sorely missed. I also want to thank Jeff Clark, who has done a fantastic job leading the Department’s Environment and Natural Resources Division, for stepping in to lead the Civil Division after Ethan’s departure.”
“I am honored and humbled to have served alongside the dedicated lawyers and staff in the Civil Division,” said Acting Assistant Attorney General Ethan P. Davis. “Many of the most talented people in the federal government work in the Civil Division, and I am grateful to Attorney General Barr for giving me the opportunity to serve.”
Mr. Davis joined the Civil Division in 2017 as the Deputy Assistant Attorney General for the Consumer Protection Branch, where he oversaw civil and criminal enforcement actions designed to combat the opioid crisis and fraud on elderly Americans. Mr. Davis also served on the Deputy Attorney General’s Corporate Enforcement Working Group, which developed and implemented several significant policy reforms. After a year clerking for Justice Neil Gorsuch on the Supreme Court, he returned to the Justice Department as the Civil Division’s Principal Deputy Assistant Attorney General, and later the Acting Assistant Attorney General. In those roles, he supervised the Division’s civil defensive work, as well as implementation of the Division’s corporate enforcement policies, including the voluntary disclosure, cooperation, and remediation policies.
Under Acting Assistant Attorney General Davis’s leadership, the Civil Division has used every enforcement tool available to prevent wrongdoers from exploiting the COVID-19 crisis. In particular, Mr. Davis focused on the use of the False Claims Act (FCA) to address fraud and other illegal activity related to the COVID-19 stimulus programs, including the Paycheck Protection Program, the Main Street Credit Facility, and the provider relief fund. Mr. Davis also prioritized enforcement of the Food, Drug, and Cosmetic Act (FDCA) against fraudulent COVID-19 tests, treatments, purported cures, and other products. For example, in August 2020, the Civil Division, working with agency partners and the U.S. Attorney’s Office for the Middle District of Florida, obtained a Temporary Restraining Order against a defendant that operated hundreds of websites that fraudulently purported to sell products that became scarce during the pandemic, including hand sanitizer and disinfectant wipes.
During Mr. Davis’s tenure, the Civil Division also fought the opioid epidemic through actions under the FCA, the FDCA, and the Controlled Substances Act. The Civil Division pursued criminal and civil investigations into pharmaceutical companies, pharmacies, health care providers, and other entities for alleged unlawful activity related to the opioid crisis. In one matter, for example, the Civil Division and the U.S. Attorney’s Office for the District of Vermont reached a $145 million resolution with an electronic health records company for soliciting and receiving kickbacks from a major opioid company.
Additionally, under Mr. Davis’s leadership, the Civil Division also took aggressive steps to combat fraud on elderly Americans. The Civil Division prioritized using the FCA to pursue nursing homes that provide substandard care to residents, as well as other statutes against individuals and companies that use fraudulent robocalls to prey on American seniors. In August 2020, for example, the Civil Division and the U.S. Attorney’s Office for the Eastern District of New York successfully secured a permanent injunction barring two individuals and two companies that transmitted massive volumes of fraudulent robocalls from conveying any telephone calls into the U.S. telephone system.
Monday 31 August 2020
Wichita Man Sentenced to 8+ Years for Meth TraffickingRead the Press Release
WICHITA, KAN. - A Wichita man was sentenced today to 100 months in federal prison for methamphetamine trafficking, U.S. Attorney Stephen McAllister said.
Myron L. Hite II, 43, Wichita, Kan., pleaded guilty to one count of possession with intent to distribute methamphetamine. In his plea, he admitted that when the Kansas Bureau of Investigation served a search warrant at his home in Wichita, they found more than half a pound of methamphetamine. They also found more than $14,000 in cash and two loaded firearms.
McAllister commended the KBI and Assistant U.S. Attorney Mona Furst for their work on the case.
Violent criminal sentenced to federal prison for multiple armed robberies, carjacking and home invasionRead the Press Release
SAVANNAH, GA: A Savannah man will spend 25 years in federal prison after sentencing for the violent robberies of two convenience stores, an armed home invasion, and car theft in 2018.
Brian Alexander Brooks, 23, of Savannah, was sentenced in U.S. District Court by Judge Lisa Godbey Wood to 300 months in prison for Interference with Commerce by Robbery; Using, Carrying and Discharging a Firearm During a Violent Crime; and Carjacking, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. Brooks was order to pay $15,000 in restitution, and after completion of his prison sentence, he must serve five years of supervised release. There is no parole in the federal system.
“Brian Brooks is a violent, serial criminal who robbed and threatened innocent victims at gunpoint, stole a car, ran from police and fired shots to avoid apprehension,” said U.S. Attorney Christine. “Hard prison time will protect the community from further victimization by this violent predator.”
As spelled out in court proceedings and filings, the progressively escalating series of crimes for which Brooks is being incarcerated include:
- The July 12, 2018 robbery at gunpoint of the Murphy Express convenience store on Abercorn Street, in which Brooks pointed a pistol at the lone female clerk while demanding and receiving cash before fleeing;
- The July 15, 2018 robbery of the Parker’s convenience store on Abercorn Street, during which Brooks fired one round from a semi-automatic pistol into the ceiling to threaten the female clerk for taking too long in collecting cash from the register; and,
- A July 31, 2018 home invasion in Georgetown in which Brooks awakened and robbed a sleeping woman at gunpoint, then stole her car and led police on a chase through an apartment complex before crashing into a canal and firing shots during his escape from the vehicle. Brooks fled on foot but was apprehended days later with the assistance of the U.S. Marshal’s Service.
As a previously convicted felon, Brooks is prohibited from possessing a firearm.
“The only thing to be thankful for after Brooks’ reign of terror in July 2018 is that no one was killed, even though he showed a disregard for human life,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Once again it was our partnerships with federal and local law enforcement agencies that helped take this threat off our streets.”
The case was investigated by the FBI’s Southeast Georgia Violent Crimes Task Force, with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Drug Enforcement Administration, the U.S. Marshal’s Service, the Savannah Police Department, and the Chatham County Police Department, and prosecuted for the United States by the U.S. Attorney’s Office for the Southern District of Georgia.
United States Agrees with Power and Light Company to Resolve Alleged Violations of the Clean Air ActRead the Press Release
The United States announced today that Indianapolis Power & Light Company (IPL) has agreed to resolve alleged violations of the Clean Air Act and Indiana law by undertaking measures to improve its environmental compliance at the Petersburg Generating Station, in Pike County, Indiana. The State of Indiana is also a party to today’s agreement.
The settlement agreement resolves the claims under the Clean Air Act and related Indiana laws that the United States and Indiana have alleged against IPL in the complaint filed today in federal district court for the Southern District of Indiana.
The agreement, which is memorialized in a consent decree lodged today in the district court, requires IPL to reduce its plant’s emissions of nitrogen oxides (NOx), sulfur dioxide (SO2), particulate matter (PM) and sulfuric acid mist (H2SO4). IPL will install a pollution control device known as a Selective Non-Catalytic Reduction System (SNCR) on one of the plant’s coal-fired units, upgrade its sulfuric acid mitigation system, and continually operate all of its pollution control equipment to meet levels that will achieve reductions in NOx, SO2, PM and H2SO4 emissions.
The agreement recognizes that IPL may permanently retire two of its Petersburg units earlier than it had planned. Retirement of those units would result in emission reductions significantly greater than any reductions achieved by installing and operating the SNCR. Thus, IPL may forego installing that control device if it in fact retires the two units prior to July 1, 2023, the deadline under the consent decree by which IPL must install the SNCR.
Further, IPL will pay a total civil penalty of $1.525 million, of which $925,000 will go to the United States and $600,000 to the State of Indiana.
“The citizens of Indiana will breathe cleaner air, thanks to IPL’s agreement to significantly decrease its excess emissions,” said Principal Deputy Assistant Attorney General Jonathan D. Brightbill for the Justice Department’s Environment and Natural Resources Division. “We are pleased that our Indiana State counterparts have worked closely with our federal team to achieve this favorable result for the environment.”
“Working together with our state partners, EPA is helping to make the air cleaner in Indiana,” said EPA Region 5 Administrator Kurt Thiede. “This agreement will significantly reduce excess emissions of harmful air pollutants to protect public health and our environment.”
“Clean air is vital to Hoosiers’ long-term health, and IPL’s commitment to reducing the emissions from its Petersburg Generating Station is an environmentally conscious step in the right direction,” said Curtis Hill, Attorney General of Indiana.
Under the agreement, IPL will also undertake a project costing $5 million to mitigate the harm to the environment caused by the plant’s excess emissions over the years. IPL will submit a proposal to EPA and the State to construct and operate a system that will provide a new, non-emitting source of power at an on-site location known as the auxiliary electrical unit. The new source of power is expected to reduce emissions of SO2, NOx and PM from that unit.
In addition, at the request of Indiana, IPL will expend $325,000 to undertake a state-only environmentally beneficial project designed to restore and preserve some ecologically significant parcels of land near the plant.
Today’s settlement is subject to a 30-day public comment period following notification in the Federal Register and to final approval by the court. To view the consent decree or to submit a comment, visit the Department’s website at: www.justice.gov/enrd/Consent_Decrees.html.
For more information on this settlement: https://www.epa.gov/enforcement/indianapolis-power-light-settlement-information-sheet.
USVI Law Enforcement Agents and Members of the U.S. Attorney’s Office National OCDETF Award for Operation PY Beto Kilo and Drug Interdiction EffortsRead the Press Release
St. Thomas, USVI – United States Attorney Gretchen C.F. Shappert announced today that federal and local Virgin Islands law enforcement officers, together with members of the Virgin Islands U.S. Attorney’s Office, have been selected as the recipients of a national award for an outstanding Organized Crime Drug Enforcement Task Force (OCDETF) investigation, Operation PY Beto Kilo. “This National OCDETF Award is an acknowledgement of the tremendous work of law enforcement and the U.S. Attorney’s Office to dismantle and disrupt transnational drug organizations. Together, we are apprehending the major drug dealers, the money-launderers, and the gun smugglers who threaten our way of life in the Territory. This success is just the start. Law enforcement is on the march. We will continue to arrest and prosecute narco-traffickers and seize their ill-gotten gains.” Shappert said. Law enforcement agency award recipients include: the Drug Enforcement Administration (DEA), U.S. Marshals Service (USMS), Homeland Security Investigations (HSI), U.S. Customs and Border Protection (CBP), U.S. Coast Guard (USGC), Transportation Security Administration (TSA), Bureau of Alcohol, Tobacco, Firearms and Explosive (ATF), U.S. Air Force (USAF), Virgin Islands National Guard (VING), Virgin Islands Police Department (VIPD), and the Virgin Islands U.S. Attorney’s Office (VI-USAO).
The Py Beto Kilo investigation focused on a sophisticated and structured drug trafficking organization that transported cocaine from Columbia through Venezuela on fishing vessels across the Caribbean Sea to an area 60 to 80 miles south of St. Croix. The drug trafficking organization, led by Jose Hodge in St. Croix, Omy Gutierrez-Calderon in Puerto Rico, and Sergio Quinones-Davila in Florida, operated with a high level of sophistication utilizing Venezuelan fishing fleets with established transportation routes to conduct mid-sea transfer. The organization sent decoy vessels ahead of the cocaine vessels. The cocaine vessels were equipped with a mechanism to sink the cocaine if a vessel were detected by law enforcement. Members of the organization communicated at sea using satellite telephones, Blackberries and Pin to Pin messaging. This mode of operation allowed the organization to engage in large-scale drug trafficking undetected for a number of years. Transporters from St. Croix and Puerto Rico, traveled in go-fast boats and met vessels at pre-determined GPS coordinates to conduct mid-sea transfers of cocaine. Members of the organization then transported the drugs to St. Croix and later transshipped them to Puerto Rico. A small quantity of drugs were distributed on St. Croix.
The investigation, led by Drug Enforcement Administration (DEA) on St. Croix, with assistance from other law enforcement agencies, identified 17 members of the organization: two (2) in South America, three (3) in St. Croix, ten (10) in Puerto Rico, and two (2) in Florida. The investigation also revealed that the organization smuggled approximately 50 to 100 kilograms of cocaine per shipment every few months. The cocaine sold for about $14,000 per kilogram on St. Croix, and $24,000 per kilogram on Puerto Rico. During the course of the investigation, approximately $1,500,000.00, 300 kilograms of cocaine and several firearms were seized from this organization.
In 2016, the United States Attorney’s Office secured an indictment charging fifteen (15) members of the organization with drug trafficking offenses. Six members were convicted on guilty pleas, charges were dismissed against two (2) defendants, and the remaining six members went to a trial in the spring of 2017. The original trial lasted eight (8) weeks and ended in a hung jury due to suspected jury tampering. All six remaining defendants were convicted after a second trial in the spring and summer of 2018 that also lasted eight weeks.
U.S Attorney Shappert noted that the OCDETF Program was established in 1982 to mount a comprehensive attack and reduce the supply of illegal drugs in the United States and to diminish the violence and other criminal activity associated with the drug trade. It is the centerpiece of the United States Attorney General’s strategy to reduce the availability of illicit narcotics. “OCDETF operates nationwide and combines the resources and the expertise of federal agencies, working in conjunction with their local partners, to target drug trafficking, gun smuggling, and money laundering organizations,” she said. “OCDETF agents, task force officers, and prosecutors handle complex investigations and prosecutions of the highest-level drug traffickers, money launderers, and other priority transnational criminal organizations that threaten the United States. OCDETF facilitates joint operations by focusing its partner agencies on priority targets, by managing and coordinating multi-agency efforts, and by leveraging intelligence information derived from numerous sources.” The OCDETF awards recognize outstanding investigations from each of the OCDETF partner agencies.
The OCDETF program provides federal resources to federal and other partner law enforcement agencies to mitigate financial obstacles hindering criminal investigations. These criminal investigations are conducted by multi-agencies in a collaborated effort. OCDETF’s provide assets needed to conduct thousands of criminal investigations, which traverse the United States, the territories, and in some instances span to criminal organizations operating in foreign countries.
In OCDETF’s coordinated attack against drug trafficking and money laundering organizations, OCDETF formulated the Consolidated Priority Organization Target (CPOT) list. The CPOT list is a multi-agency target list of “command and control” elements of the most prolific international drug trafficking and money laundering organizations. Through the combined efforts of law enforcement agencies operating under the OCDETF umbrella, CPOTs are targeted with the goal of disrupting or dismantling their operations.
OCDETF’s mission is straightforward: to arrest drug traffickers, dismantle and disrupt drug trafficking and money laundering organizations, reduce the illegal drug supply, seize assets, and bring criminals to the United States justice system or other competent jurisdictions.
U.S. DOJ’s Office on Violence Against Women Awards Center for Community Solutions $800,000 to Assist San Diego Domestic Violence VictimsRead the Press Release
NEWS RELEASE SUMMARY – August 31, 2020
SAN DIEGO – U.S. Attorney Robert Brewer announced today that the U.S. Department of Justice Office on Violence Against Women (OVW) has awarded $800,000 in grant funding to the Center for Community Solutions (CCS), which has three San Diego locations (in Mission Bay, Escondido and El Cajon) that provide legal services to survivors of sexual assault, stalking, domestic violence and dating violence.
“Addressing the many needs of women who are threatened by or subjected to violence is a top priority for the Department of Justice,” said U.S. Attorney Robert Brewer. “This award will help to ensure that all victims are able to access the assistance and support they need to seek the recourse and protection afforded by our legal system.”
The Legal Assistance for Victims Grant (LAV) Program, which is authorized by 34 U.S.C. § 20121, is designed to increase the availability of civil and criminal legal assistance programs for adult and youth victims of domestic violence, dating violence, sexual assault, and stalking who are seeking relief in legal matters relating to or arising out of that abuse or violence, at minimum or no cost to the victims. Eligible applicants are private nonprofit entities, Indian tribal governments and tribal organizations, territorial organizations, and publicly funded organizations not acting in a governmental capacity, such as law schools.
The $800,000 award to CCS will fund provision of comprehensive bilingual legal services to survivors of sexual assault, stalking, domestic violence, and dating violence. Funding from this award will enable the collaborative to support additional attorneys, provide legal assistance in nine areas of law, and serve additional clients. Founded in 1969, CCS served more than 17,000 adults and children last year to heal and prevent relationship and sexual violence. CCS operates the only rape crisis center in the city of San Diego along with a countywide 24-hour bilingual crisis helpline. The nonprofit agency also provides emergency domestic violence shelters, hospital and court accompaniment, as well as legal and counseling services for those affected by domestic violence, sexual assault and stalking. Individuals in need of help can reach CCS through its 24-hour, confidential hotline: 1-888-385-4657. In addition to providing services, CCS collaborates with community partners to offer prevention programs that promote healthy relationships and peaceful communities.
OVW currently administers 19 grant programs authorized by the Violence Against Women Act (VAWA) of 1994 and subsequent legislation. These grant programs are designed to develop the nation’s capacity to reduce domestic violence, dating violence, sexual assault, and stalking by strengthening services to victims and holding offenders accountable.
Two North Carolina Tax Preparers Indicted for False ReturnsRead the Press Release
WASHINGTON – A federal grand jury in Greensboro, North Carolina, returned an indictment today charging two tax preparers with conspiring to defraud the United States and assisting in the preparation of false client tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Matthew G.T. Martin for the Middle District of North Carolina.
According to the indictment, Karen Marie Jones owned Jones and Stone Taxes, a tax preparation business in Durham, North Carolina. From 2012 through 2017, Jones and Audrey Renatta Odom allegedly conspired to falsify clients’ tax returns by fabricating education expenses that clients did not incur, in an effort to increase refunds to be paid by the IRS. Jones, Odom, and others allegedly charged some clients up to $3,000 for preparing their return.
If convicted, Jones and Odom each face a maximum sentence of five years in prison for conspiracy and three years in prison on each count of aiding and assisting in the preparation of a false tax return. The defendants also face a period of supervised release, restitution, and monetary penalties.
An indictment or information merely alleges that crimes have been committed. The defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Martin commended special agents of IRS-Criminal Investigation who conducted the investigation, and Assistant Chief Todd Ellinwood and Trial Attorney Kavitha Bondada of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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Two North Carolina Tax Preparers Indicted for False ReturnsRead the Press Release
A federal grand jury in Greensboro, North Carolina, returned an indictment today charging two tax preparers with conspiring to defraud the United States and assisting in the preparation of false client tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Matthew G.T. Martin for the Middle District of North Carolina.
According to the indictment, Karen Marie Jones owned Jones and Stone Taxes, a tax preparation business in Durham, North Carolina. From 2012 through 2017, Jones and Audrey Renatta Odom allegedly conspired to falsify clients’ tax returns by fabricating education expenses that clients did not incur, in an effort to increase refunds to be paid by the IRS. Jones, Odom, and others allegedly charged some clients up to $3,000 for preparing their return.
If convicted, Jones and Odom each face a maximum sentence of five years in prison for conspiracy and three years in prison on each count of aiding and assisting in the preparation of a false tax return. The defendants also face a period of supervised release, restitution, and monetary penalties.
An indictment or information merely alleges that crimes have been committed. The defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Martin commended special agents of IRS-Criminal Investigation who conducted the investigation, and Assistant Chief Todd Ellinwood and Trial Attorney Kavitha Bondada of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Troy Man Pleads Guilty to Distributing Crack CocaineRead the Press Release
ALBANY, NEW YORK – Selvin Joiner, age 29, of Troy, New York, pled guilty today to distributing crack cocaine.
The announcement was made by United States Attorney Grant C. Jaquith and Ray Donovan, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Field Division.
Joiner admitted that on June 28, 2020, he sold approximately 26 grams of cocaine base (a/k/a crack cocaine) to a buyer in Troy.
Joiner faces up to 20 years in prison, a term of post-imprisonment supervised release of at least 3 years, and a fine of up to $1 million, when he is sentenced by Senior United States District Judge Fredrick J. Scullin, Jr. on December 9, 2020. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the DEA and its Capital District Drug Enforcement Task Force, and is being prosecuted by Assistant U.S. Attorney Alicia Giglio Suarez.
Statement from the U.S. Attorney's Office for the District of Columbia in Response to Mayor Muriel Bowser's Press Conference TodayRead the Press Release
WASHINGTON – Over the past year, the United States Attorney’s Office for the District of Columbia has charged more than 9,500 cases, which include more than 2,500 felony cases. Specifically, with regard to the spike in protest-related violence throughout the District this summer, the Office aggressively charged 121 criminal cases from May 28, 2020 to August 1, 2020. These cases included assault and battery on local police officers and federal agents, arson cases, and the destruction of both private and government property. Most recently, over this past weekend alone, the Office brought criminal charges against five individuals linked to protest-related violence – two of those cases involved assaults on police officers.
Mayor Muriel Bowser’s public statement today related to the United States Attorney’s Office reluctant to prosecute “68 outstanding arrest warrants” is patently false and serves no purpose other than to pass blame and foster innuendo. Since the protests began, this Office has never turned down a single case for prosecution in which there was sufficient evidence to support probable cause.
The Office remains committed to keeping the community safe, but also holds true to the rule of law and constitutional protections for all citizens.
Six Indicted in Money Laundering Schemes Tied to Nigerian ScamsRead the Press Release
PROVIDENCE – A federal grand jury in Providence has returned a superseding indictment charging six individuals with allegedly laundering millions of dollars gained through multi-faceted fraud schemes run out of Nigeria, primarily targeting elderly U.S. citizens.
It is alleged that dozens of victims were befriended by scammers feigning romantic intentions through online social media platforms and dating sites. Scammers used the relationships and trust they built to convince victims to provide them with money to assist with business ventures or debt.
Other victims were allegedly convinced by Nigerian scammers that they had won a sweepstakes, but that upfront cash payments were required to release the funds to the winner. Yet other victims were allegedly scammed by paying rent to individuals who purported to own property they in fact did not own or control. In addition, other victims were scammed into paying fraudulent shipping costs for items sold online.
“Elder fraud is an international crime that finds its victims wherever they live. Federal, state, and local law enforcement has made it a priority to do whatever it takes to track down and hold accountable fraudsters, particularly those who target our vulnerable populations, no matter where they are,” said United States Attorney Aaron L. Weisman. “As in this investigation, often times victims first reach out to their local police departments to report they have been swindled. Led by the FBI and US Postal Inspection Service, nearly two-dozen law enforcement agencies worked together to identify this group of fraudsters and to hold them responsible for their selfish, reprehensible actions preying on one of our most vulnerable population.”
“These individuals are accused of conspiring to scam dozens of unsuspecting victims all over the country, including right here in the Ocean State, out of millions of dollars, using a variety of fraudulent schemes that we traced right back to Nigeria,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “Every day, the FBI and our law enforcement partners are working hard to put these fraudsters out of business. This case should serve as a reminder to view every contact with a stranger with skepticism and don’t trust anyone calling, texting or emailing with a deal that sounds too good to be true.”
An FBI investigation, with substantial assistance from U.S. Postal Inspection Service, and the Tallmadge, Ohio, and Moscow, Idaho, Police Departments, determined that victims were instructed by scammers in Nigeria to wire cash to bank accounts or to mail payments in the form of cash or money orders to various mailing addresses controlled by scammers in Rhode Island. It is alleged that to conceal the source and location of the funds, members of the conspiracy moved the money through multiple banks and businesses in Rhode Island and Idaho, and elsewhere. Much of the proceeds were eventually sent on to Nigeria. Members of the conspiracy also used ill-gotten cash to purchase vehicles that were shipped to Nigeria.
The grand jury returned a superseding indictment on Friday charging Adetunji Abudu, 34, and Olabode Shaba, 33, of North Providence; Dotun Olawale Alonge, 44, and Oladipupu Shodipo, 41, of Providence; Samson Ikotun, 33, of East Providence; and Oluwaseyi Akintola, 35, of Moscow, Idaho with money laundering conspiracy and money laundering.
Oladipupu Shodipo was arrested this morning and appeared before U.S. District Court in Providence. He was released on unsecured bond.
Samson Ikotun, previously charged with conspiracy and money laundering, is detained in federal custody while awaiting trial. He is scheduled to be arraigned on the superseding indictment on September 9, 2020.
Olabode Shaba, previously charged with conspiracy and money laundering, is currently on home detention awaiting trial. He is scheduled to be arraigned on the superseding indictment on September 2, 2020.
Arrest warrants have been issued for Abudu, Alonge, and Akintola.
The ongoing investigation and return of a superseding indictment in this matter are announced by United States Attorney Aaron Weisman, Special Agent in Charge of the FBI Boston Division Joseph R. Bonavolonta, Inspector in Charge of the U.S. Postal Inspection Service Joseph W. Cronin, Tallmadge, Ohio, Police Chief Ronald Williams, and Moscow, Idaho, Police Chief James Fry.
A federal indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The cases are being prosecuted by Assistant U.S. Attorney John P. McAdams.
United States Attorney Aaron Weisman and FBI Boston Division Special Agent in Charge Joseph R. Bonavolonta thank United States Customs and Border Patrol; United States Secret Service; Rhode Island State Police; Providence, North Providence, East Providence, and Johnston, RI, Police Departments; Seekonk, Newton, Norfolk, and Hull, MA, Police Departments; New York State Police; Murphysboro, IL, Police Department; Greybull, WY, Police Department; Grand Island, NE, Police Department; Boca Raton, FL, Police Department; Lake County, FL, Sheriff’s Office; Brecknock Township, PA, Police Department; East Ridge, TN, Police Department; and San Angelo, TX, Police Department for their assistance in this investigation.
Combatting elder abuse and financial fraud targeted at seniors is a key priority of the Department of Justice. If you are a victim or know a victim of elder fraud, you can call 1-877-FTC-HELP or go to ftc.gov/complaint. For downloadable Elder Abuse Prevention resources and for information about community outreach programs in Rhode Island, visit the United States Attorney’s Office’s Elder Justice Initiative web page at https://www.justice.gov/usao-ri/elder-justice
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Schenectady Man Pleads Guilty to Crack Cocaine DistributionRead the Press Release
ALBANY, NEW YORK – Robert J. Chaires, age 40, of Schenectady, New York, pled guilty today to twice distributing crack cocaine in 2017.
The announcement was made by United States Attorney Grant C. Jaquith and Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
Chaires admitted that on January 20, 2017 and again on March 2, 2017, he sold more than 28 grams of cocaine base (a/k/a crack cocaine) to a buyer in Schenectady.
Chaires faces at least 10 years and up to life in prison when he is sentenced by Senior United States District Judge Frederick J. Scullin, Jr. on December 8, 2020. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the FBI and its Capital District Safe Streets Gang Task Force, which includes FBI Special Agents and members of federal, state and local law enforcement agencies, including the Schenectady Police Department, and is being prosecuted by Assistant U.S. Attorney Michael Barnett.
Saratoga County Drug Dealer Sentenced to 20 Years for Fentanyl Overdose DeathRead the Press Release
ALBANY, NEW YORK – Steven M. Boice, age 30, was sentenced today to 20 years in prison for distributing furanyl fentanyl that caused an overdose death in Saratoga County in February 2017.
The announcement was made by United States Attorney Grant C. Jaquith; Special Agent in Charge Ray Donovan, New York Division, U.S. Drug Enforcement Administration (DEA); and Saratoga Springs Police Department Chief Shane Crooks.
In pleading guilty in November 2019, Boice admitted that he sold controlled substances, including furanyl fentanyl, from his residence in Saratoga Springs, New York.
Early on February 3, 2017, he sold approximately 50 small envelopes, each containing furanyl fentanyl, to B.L., a Saratoga County man who overdosed and died that same day. Boice has also admitted that when B.L. arrived at his house on February 3, B.L. seemed incoherent, but Boice sold him drugs anyway. B.L. ingested some of the fentanyl while at Boice’s residence and fell down while leaving. Boice and his roommate put B.L. on their back porch in the cold air and sat with him for approximately 45 minutes, slapping him to keep him awake. B.L. “snapped back into it,” according to Boice, and left Boice’s residence. B.L. died at home later on February 3 after ingesting more fentanyl sold to him by Boice. (The roommate died months later, also due to a drug overdose.)
United States Attorney Grant C. Jaquith stated: “Steven Boice did not care whether his customers lived or died. Today’s sentence holds him responsible for the avoidable and senseless death of a young man, and the daily pain and suffering of that man’s wife and parents. Heroin and fentanyl dealers should take notice that they are accountable for the overdoses of their customers, and that a 20-year prison term could be in their future.”
DEA Special Agent in Charge Ray Donovan stated: “Too many lives were changed because of a drug transaction in Saratoga Springs. This investigation traced a drug overdose to a local drug trafficker whose actions caused a man’s death, a family’s loss, and a 20-year prison sentence. This case also emphasizes the consequences of drug trafficking and reminds traffickers that law enforcement won’t rest until those responsible are brought to justice.”
Saratoga Springs Police Chief Shane Crooks stated: “Today, thanks to the hard work of all agencies involved, Steven Boice was held accountable for his actions. While this does not remove the pain that the family of B.L. has gone through, I can only hope that it will help bring them some closure.”
On February 10, 2017 – a week after B.L.’s death – law enforcement executed a search warrant on Boice’s residence in downtown Saratoga Springs, and found furanyl fentanyl packaged for sale and 2 firearms. Boice admitted to possessing a total of 363 green-colored envelopes containing furanyl fentanyl.
Boice also admitted to possessing 2 firearms to protect his drugs and drug proceeds. When law enforcement entered his house on February 10, 2017, Boice had a loaded Mossberg Maverick shotgun, leaning against a wall of his bedroom and directly next to the door, and a loaded DPMS Panther Arms .223-5.56 mm semi-automatic rifle, under his bed.
Senior United States District Judge Gary L. Sharpe also imposed a 3-year term of supervised release, to begin after Boice’s release from prison.
This case was investigated by the DEA and its Capital District Drug Enforcement Task Force; the Saratoga Springs Police Department; and the New York State Police. The Saratoga County District Attorney’s Office assisted in the investigation.
This case was prosecuted by Assistant U.S. Attorney Michael Barnett.
San Jose Man Sentenced to Ten Years in Prison for Possession of Child PornographyRead the Press Release
SAN JOSE – James Gould, Jr. was sentenced today to 10 years in prison, and ordered to pay $12,000 in restitution for possession of child pornography, announced United States Attorney David L. Anderson and Federal Bureau of Investigation Special Agent in Charge John F. Bennett.
Gould pleaded guilty on February 3, 2020, to Possession of Child Pornography. According to the plea agreement, Gould admitted that on June 15, 2019, while on supervised release from a prior child pornography conviction, a probation officer conducted a random inspection of Gould’s cell phone, revealing that it had child pornography images on it. As a result, a search was conducted of Gould’s residence, located in San Jose, California. In his bedroom were 26 electronic devices capable of accessing the internet or processing or storing data, which Gould was prohibited from possessing as part of his supervised release conditions. As part of his plea agreement, Gould further admitted that on one of his devices he possessed 556 child pornography images and 169 child pornography videos. The images and videos that Gould possessed depicted infants and toddlers engaged in sexually explicit conduct, including sadistic or masochistic conduct and sexual abuse or exploitation of an infant or toddler.
Gould, 32, of San Jose, was charged by an Information filed on January 30, 2020. He was charged with Possession of Child Pornography.
The sentence was handed down by The Honorable Edward J. Davila, U.S. District Court Judge, following a guilty plea on one count of Possession of Child Pornography in violation of 18 U.S.C. § 2252(a)(4)(B). Judge Davila also sentenced the defendant to an 8 year period of supervised release. The defendant has been in continuous custody since his initial appearance on the related supervised release violation (CR 12-00464 EJD) on June 27, 2019.
Chinhayi Cadet is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Jessica Leung. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
Randolph County woman indicted on methamphetamine, fentanyl, and firearms chargesRead the Press Release
ELKINS, WEST VIRGINIA – Patricia Ann Mahoney, of Elkins, West Virginia, is facing drug and firearms charges, U.S. Attorney Bill Powell announced.
Mahoney, 50, was indicted on four counts of “Distribution of Methamphetamine,” one count of “Distribution of Fentanyl,” one count of “ Distribution of More Than Five Grams of Methamphetamine,” and one count of “Possession of a Firearm in Furtherance of a Drug Crime.” Mahoney is accused of selling methamphetamine and fentanyl in April 2019 and February 2020 in Randolph County. She is also accused of having a .22 caliber pistol with her during a drug sale in February 2020.
Mahoney faces up to 20 years of incarceration and a fine of up to $1,000,000 for each of the distribution charges. She faces at least five years and up to 40 years of incarceration and a fine of up to $5 million for the distribution of more than five grams of meth charge. Mahoney faces at least five years of incarceration and a fine of up to $250,000 for the possession of a firearm in furtherance of a drug crime charge. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Mountain Region Drug & Violent Crimes Task Force investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Randolph County woman indicted on methamphetamine and firearms chargesRead the Press Release
ELKINS, WEST VIRGINIA – Tara Lynn Leary, of Valley Head, West Virginia, is facing drug and firearms charges, U.S. Attorney Bill Powell announced.
Leary, 30, was indicted on one count of “Conspiracy to Distribute More Than Fifty Grams of Methamphetamine,” one count of “Possession with Intent to Distribute More Than Fifty Grams of Methamphetamine,” one count of “ Distribution of More Than Five Grams of Methamphetamine,” and one count of “Possession of a Firearm in Furtherance of a Drug Crime.” Leary is accused of distributing more than 50 grams of methamphetamine from August 2019 to March 2020 in Randolph County. She is also accused of having a .380 caliber postil with her during one drug trafficking crime in January 2020.
Leary faces not less than 10 years and up to life incarceration and a fine of up to $10,000,000 for each of the conspiracy and possession of meth charges. She faces at least five years and up to 40 years of incarceration and a fine of up to $5 million for the distribution of more than five grams of meth charge. Leary faces at least five years of incarceration and a fine of up to $250,000 for the possession of a firearm charge. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Mountain Region Drug & Violent Crimes Task Force investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Randolph County residents indicted on methamphetamine and heroin chargesRead the Press Release
ELKINS, WEST VIRGINIA – Jesse David Tolson and Melissa Ann Slayton, both of Elkins, West Virginia, are facing drug charges, U.S. Attorney Bill Powell announced.
Tolson, 34, and Slayton, 35, were each indicted on one count of “Conspiracy to Distribute More Than 50 Grams of Methamphetamine.” Tolson was also indicted on two counts of “Possession with Intent to Distribute More Than Fifty Grams of Methamphetamine” and one count of “Possession with Intent to Distribute Heroin.” Slayton is also facing one count of “Possession with Intent to Distribute More Than Five Grams of Methamphetamine.”
The two are accused of having more than 50 grams of methamphetamine in November and December 2019 in Randolph County. Tolson is also accused of having heroin in November 2019 in Randolph County.
Tolson faces at least 10 years and up to life incarceration and a fine of up to $10 million for each of the methamphetamine charges. He faces up to 20 years of incarceration and a fine of up to $1,000,000 for the heroin charge. Slayton faces at least 10 years and up to life incarceration and a fine of up to $10 million for the conspiracy charge. She faces at least five years and up to 40 years of incarceration for the possession charge. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Mountain Region Drug & Violent Crimes Task Force investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Randolph County man indicted on methamphetamine and firearms chargesRead the Press Release
ELKINS, WEST VIRGINIA – Joshua Derek Raines, of Elkins, West Virginia, is facing drug and firearms charges, U.S. Attorney Bill Powell announced.
Raines, 37, was indicted on one count of “Conspiracy to Distribute at Least Fifty Grams of Methamphetamine,” one count of “Possession with Intent to Distribute at Least Fifty Grams of Methamphetamine,” and one count of “Possession of a Firearm in Furtherance of a Drug Crime.” Raines is accused of having at least 50 grams of methamphetamine in August 2019 in Randolph County. He is also accused of having a .40 caliber pistol during a drug trafficking crime in August 2019.
Raines faces not less than 10 years and up to life incarceration and a fine of up to $10,000,000 for each of the conspiracy and possession of meth charges. Raines faces at least five years of incarceration and a fine of up to $250,000 for the possession of a firearm charge. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Mountain Region Drug & Violent Crimes Task Force investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Randolph County man indicted on methamphetamine and firearms chargesRead the Press Release
ELKINS, WEST VIRGINIA – Casey Warren Lang, of Huttonsville, West Virginia, is facing drug and firearms charges, U.S. Attorney Bill Powell announced.
Lang, 29, was indicted on one count of “Possession with Intent to Distribute at Least Fifty Grams of Methamphetamine,” and one count of “Unlawful Possession of Firearm.” Lang, a person prohibited from having firearms because of a prior conviction, is accused of having at least 50 grams of methamphetamine and 13 firearms in June 2019 in Randolph County.
Lang faces not less than 10 years and up to life incarceration and a fine of up to $10,000,000 for the meth charge. He faces up to 10 years of incarceration and a fine of up to $250,000 for the firearms charge. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Mountain Region Drug & Violent Crimes Task Force, and the Randolph County Sheriff’s Office investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Raleigh County Man Sentenced for Sex Offense Involving MinorRead the Press Release
BECKLEY, W.Va. – A Raleigh County man was sentenced to federal prison for a sex crime involving a minor, announced United States Attorney Mike Stuart. Gary Wayne Lilly, 40, of Josephine, was sentenced to 46 months in prison for traveling in interstate commerce with the intent to engage in illicit sexual activity with a minor. Upon release from prison, Lilly will serve a term of supervised release of 10 years and will be required to register as a sex offender.
“The depravity of these types of cases is difficult to fathom,” said United States Attorney Mike Stuart. “But make no mistake, my office protects children. It is my top priority to hold these predators accountable.”
Lilly previously admitted that beginning in late May 2019 he communicated via a social messaging application and telephone with a minor he believed to be a 13-year-old girl in Bluefield. During the conversations, Lilly discussed meeting the minor female to engage in oral sex and sexual intercourse. On June 1, 2019, Lilly traveled from Josephine to Bluefield, Virginia, to meet the purported 13-year-old minor. Lilly stopped in Princeton on his way to Bluefield, Virginia in order to purchase condoms.
The investigation was conducted by the FBI Violent Crimes Against Children Task Force and the Mercer County Sheriff’s Office. United States District Judge Frank Volk imposed the sentence. Assistant United States Attorney Jennifer Rada Herrald handled the prosecution.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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. 5:19-cr-00161.
Follow us on Twitter: SDWVNews and USAttyStuart
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Plainview Man Charged with Assisting a Meth Trafficker’s Prison EscapeRead the Press Release
A Plainview man was charged today with assisting a meth trafficker’s prison escape, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Juan Anthony Cordero, 25, was arrested by United States Marshals Service’s North Texas Fugitive Task Force (NTFTF) on Saturday. He made his initial appearance in court today.
According to a criminal complaint unsealed today, Mr. Cordero spoke with Mark Lucio, a prisoner in federal custody at the Bailey County Jail to allegedly plan and assist with his escape. Mr. Lucio was in federal custody following his June 3rd guilty plea for possession to distribute methamphetamine and possession of firearms in furtherance of a drug trafficking crime.
On August 28, Mr. Cordero was seen on a video call with Mr. Lucio allegedly discussing the details of a prison escape that was to occur the next day. Mr. Cordero and Mr. Lucio allegedly discussed the time for the escape and the vehicle Mr. Cordero would be driving.
On the morning of August 29, Mr. Lucio called Mr. Cordero minutes before the planned prison escape was to take place to advise Mr. Cordero with last minute instructions. Mr. Lucio made his escape through a sally port door at the Bailey County Jail and ran to Mr. Cordero’s car and they fled the area together.
Shortly after the escape, the Hale County Sheriff’s Office was notified by the NTFTF to be on the lookout for Cordero’s vehicle. Deputies with the Hale County Sheriff’s Office located Cordero’s car at a residence in Plainview, Texas. NTFTF members, along with deputies with the Hale County Sheriff’s Office and the Texas Department of Public Safety made contact with Mr. Cordero at the residence.
Following an interview with NTFTF officers, Mr. Cordero admitted to helping Mr. Lucio escape from the Bailey County Jail. Mr. Cordero allegedly said that he also gave Mr. Lucio a 9mm pistol and he dropped Mr. Lucio off at a residence in Abernathy, Texas. NTFTF members found Mr. Lucio at that residence and took him into custody without incident.
A criminal complaint is formal accusations of criminal conduct, not evidence. The defendant is presumed innocent unless and until proven guilty in a court of law.
If convicted of the charged offense, Mr. Cordero faces up to 5 years in federal prison.
The United States Marshal Service, Texas Department of Public Safety, Bailey County Sheriff’s Office, and Hale County Sheriff’s Office are investigating this case. Assistant U.S. Attorney Jeffrey Haag is prosecuting this case.
Pendleton County man indicted on methamphetamine and firearms chargesRead the Press Release
ELKINS, WEST VIRGINIA – Cody Alan Grapes, of Riverton, West Virginia, is facing drug and firearms charges, U.S. Attorney Bill Powell announced.
Grapes, 31, was indicted on one count of “Possession with Intent to Distribute Methamphetamine,” one count of “Unlawful Possession of a Firearm,” and one count of “Possession of a Firearm in Furtherance of a Drug Crime.” Grapes, who was previously convicted of a felony and prohibited from having a gun, is accused of having methamphetamine and a 5.56 mm rifle n November 2019 in Grant County.
Grapes faces up to 20 years of incarceration and a fine of up to $1,000,000 for the drug charge. He faces up to 10 years of incarceration and a fine of up to $250,000 for the unlawful possession charge. Grapes faces at least five years of incarceration and a fine of up to $250,000 for the possession of a firearm in furtherance of a drug crime charge. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Potomac Highlands Drug & Violent Crimes Task Force, a HIDTA-funded initiative, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Pair allegedly involved in deadly police chase indicted on federal drug, gun chargesRead the Press Release
CINCINNATI – A federal grand jury has charged the two individuals allegedly involved in an Aug. 7 chase through Cincinnati that resulted in the deaths of two bystanders in Newport, Ky. The indictment was returned Aug. 26 and unsealed today.
Mason Meyer, 28, and Kirsten Johnson, 22, both of Cincinnati, are charged federally with possessing with intent to distribute methamphetamine and possessing firearms in furtherance of a drug trafficking crime.
Meyer is also charged with illegally possessing a firearm as a convicted felon. In Campbell County, Ky., Meyer is charged with two counts of murder, endangerment, and fleeing and evading.
According to court documents, officials with the ATF, Cincinnati Police and the Northern Kentucky Drug Strike Force were surveilling Meyer in Cincinnati on Aug. 7 when Meyer drove away.
Cincinnati Police officers attempted to stop Meyer when he fled, causing a police chase through Cincinnati and into Covington and Newport, Ky.
Local court documents detail that Meyer’s vehicle struck and killed a couple dining on the patio of Press on Monmouth in Newport, Ky. Two other pedestrians were struck and suffered minor injuries.
At the time of the chase, the federal indictment alleges Meyer and Johnson possessed 50 grams or more of methamphetamine, two loaded handguns and a loaded rifle.
The methamphetamine charge in this case is punishable by five to 40 years in prison. Possessing firearms in furtherance of a drug trafficking crime is punishable by a minimum of five years in prison. Possessing a firearm as a convicted felon carries a potential maximum punishment of 10 years in prison.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Roland Herndon, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); Cincinnati Police Chief Eliot K. Isaac and agencies with the Northern Kentucky Drug Strike Force announced the charges. Assistant United States Attorneys Timothy D. Oakley and Jennifer K. Weinhold are representing the United States in this case.
An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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Owner of Japanese Fishing Vessel Charged with Unlawful Trafficking of Shark FinsRead the Press Release
Hamada Suisan Co. Ltd., the owner of a Japanese-flagged fishing vessel, was charged in federal court with aiding and abetting the attempted export of shark fins out of Hawaii in violation of the Lacey Act, the Department of Justice announced today.
The charge arose from the November 2018 discovery of approximately 962 shark fins, weighing approximately 190 pounds, from the checked luggage of fisherman working aboard the Japanese-flagged fishing vessel, M.V. Kyoshin Maru No. 20 (Kyoshin Maru). The Kyoshin Maru had engaged in longline tuna fishing in the southern Pacific Ocean for approximately one year prior, utilizing a crew of officers who were Japanese nationals and fishermen who were Indonesian nationals. In the course of the voyage, crew members harvested fins from approximately 300 sharks.
On or about Nov. 6, 2018, the Kyoshin Maru traveled near Hawaii, and its Indonesian crew members legally entered the United States in order to board return flights departing from Honolulu International Airport. During routine screening, Transportation Security Administration officers discovered the shark fins in 10 of the fishermen’s checked luggage. The U.S. Fish and Wildlife Service seized the shark fins, which it later determined were worth as much as $57,850 on the black market.
Some of the shark fins were from oceanic whitetip sharks, which are listed as threatened species under the Endangered Species Act and are protected under the Convention on International Trade in Endangered Species (CITES), an international convention with over 180 parties, including the United States, Japan, and Indonesia. According to the National Oceanic and Atmospheric Administration, the oceanic whitetip shark has declined by approximately 80-95 percent across the Pacific Ocean since the mid-1990s. Other fins were from silky sharks and bigeye thresher sharks, which are also protected under the CITES Convention.
“Shark finning is a cruel practice, prohibited by federal law, numerous states, including Hawaii, and multilateral bodies to which both the United States and Japan belong,” said Assistant Attorney General Jeffrey B. Clark for the Environment and Natural Resources Division. “The charge filed today reflects the United States’ serious commitment to enforcing these bans and ending this practice.”
“Shark finning is inhumane, intolerable, and takes a very real toll on our precious ocean ecosystem," said U.S. Attorney Kenji M. Price for the District of Hawaii. “My office is committed to combatting this cruel practice by prosecuting to the fullest extent of the law anyone found to be trafficking in these types of shark fins.”
The charge filed today accuses Hamada Suisan Co. Ltd., of unlawfully trafficking shark fins. U.S. laws prohibit, within U.S. jurisdiction: the removal of any fins of any shark at sea; the possession of such fins aboard a fishing vessel that are not attached to the corresponding carcass, and; the transfer or landing of any such detached fin. Some of these laws implement U.S. obligations under international conventions. In addition, the laws of the State of Hawaii make it unlawful for any person to possess, sell, offer for sale, trade, or distribute shark fins. Due in part to the over-harvest of sharks, some species of shark — including three species found among the fins at issue in this case — are protected under the CITES Convention.
The charge in the Information is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case is being investigated by the U.S. Fish and Wildlife Service, Office of Law Enforcement, with assistance from: the National Oceanic and Atmospheric Administration, Office of Law Enforcement; Homeland Security Investigations; U.S. Customs and Border Protection; the U.S. Postal Inspection Service, and; the U.S. Coast Guard. It is being prosecuted by Assistant U.S. Attorney Marc A. Wallenstein, U.S. Attorney’s Office for the District of Hawaii, and Senior Counsel for Wildlife Programs Elinor Colbourn, Environmental Crimes Section, and the U.S. Department of Justice. The prosecution team is coordinating with the U.S. Department of State on this matter.
Owner of Japanese Fishing Vessel Charged with Unlawful Trafficking of Shark FinsRead the Press Release
HONOLULU – Hamada Suisan Co. Ltd., the owner of a Japanese-flagged fishing vessel, was charged in federal court today with aiding and abetting the attempted export of shark fins out of Hawaii in violation of the Lacey Act.
The charge arose from the November 2018 discovery of approximately 962 shark fins weighing approximately 190 pounds from the checked luggage of fisherman working aboard the Japanese-flagged fishing vessel, M.V. Kyoshin Maru No. 20 (“Kyoshin Maru”). The Kyoshin Maru had engaged in longline tuna fishing in the southern Pacific Ocean for approximately one year prior, utilizing a crew of officers who were Japanese nationals and fishermen who were Indonesian nationals. In the course of the voyage, crew members harvested fins from approximately 300 sharks.
On or about November 6, 2018, the Kyoshin Maru traveled near Hawaii, and its Indonesian crew members legally entered the United States in order to board return flights departing from Honolulu International Airport. During routine screening, Transportation Security Administration officers discovered the shark fins in 10 of the fishermen’s checked luggage. The U.S. Fish and Wildlife Service seized the shark fins, which it later determined were worth as much as $57,850 on the black market.
Some of the shark fins were from oceanic whitetip sharks, which are listed as threatened species under the Endangered Species Act and are protected under the Convention on International Trade in Endangered Species (CITES), an international convention with over 180 parties, including the United States, Japan and Indonesia. According to the National Oceanic and Atmospheric Administration, the oceanic white tip shark has declined by approximately 80-95% across the Pacific Ocean since the mid-1990s. Other fins were from silky sharks and bigeye thresher sharks, which are also protected under the CITES Convention.
The charge filed today accuses Hamada Suisan Co. Ltd., of unlawfully trafficking shark fins. The charge in the Information is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
In announcing the charge, U.S. Attorney for the District of Hawaii, Kenji M. Price stated: “Shark finning is inhumane, intolerable, and takes a very real toll on our precious ocean ecosystem. My office is committed to combatting this cruel practice by prosecuting to the fullest extent of the law anyone found to be trafficking in these types of shark fins.”
“Shark finning is a cruel practice, prohibited by federal law, numerous states, including Hawaii, and multilateral bodies to which both the United States and Japan belong,” said Assistant Attorney General Jeffrey B. Clark for the Environment and Natural Resources Division. “The charge filed today reflects the United States’ serious commitment to enforcing these bans and ending this practice.”
United States laws prohibit, within U.S. jurisdiction: the removal of any fins of any shark at sea; the possession of such fins aboard a fishing vessel that are not attached to the corresponding carcass; and the transfer or landing of any such detached fin. Some of these laws implement U.S. obligations under international conventions. In addition, the laws of the State of Hawaii make it unlawful for any person to possess, sell, offer for sale, trade, or distribute shark fins. Due in part to the over-harvest of sharks, some species of shark—including three species found among the fins at issue in this case—are protected under the CITES Convention.
This case is being investigated by the U.S. Fish and Wildlife Service, Office of Law Enforcement, with assistance from: the National Oceanic and Atmospheric Administration, Office of Law Enforcement; Homeland Security Investigations; U.S. Customs and Border Protection; the U.S. Postal Inspection Service; and the U.S. Coast Guard. It is being prosecuted by Assistant U.S. Attorney Marc A. Wallenstein, U.S. Attorney’s Office for the District of Hawaii, and Senior Counsel for Wildlife Programs Elinor Colbourn, Environmental Crimes Section, and the U.S. Department of Justice. The prosecution team is coordinating with the U.S. Department of State on this matter.
Opioid Manufacturer Indivior’s Former Global Medical Director Pleads Guilty in Connection with Drug Safety ClaimsRead the Press Release
ABINGDON, VIRGINIA – Timothy Baxter, the former global medical director of Indivior, pleaded guilty today in U.S. District Court in Abingdon to a one-count misdemeanor information charging him with causing the introduction into interstate commerce of the opioid drug Suboxone Film, which was misbranded in violation of the Federal Food, Drug, and Cosmetic Act. Indivior’s former chief executive officer, Shaun Thaxter, recently pleaded guilty to a similar charge.
Baxter was the top medical executive of Indivior (formerly known as Reckitt Benckiser Pharmaceuticals) from 2000 until he left the company in May 2016. Indivior and one of its subsidiaries have agreed to pay $600 million to resolve their criminal and civil liability, with the subsidiary pleading guilty to making false statements relating to health care matters. Indivior’s former parent company, Reckitt Benckiser Group, previously paid $1.4 billion to resolve its liability.
Suboxone Film is a drug approved for use by recovering opioid addicts to avoid or reduce withdrawal symptoms while they undergo drug-addiction treatment. Suboxone and its active ingredient, buprenorphine, are powerful and addictive opioids.
According to court documents, Baxter admitted that an Indivior employee he supervised sent inaccurate drug-safety information to the Massachusetts Medicaid agency, MassHealth, in 2012. More specifically:
- Baxter was familiar with the issue of unintended pediatric exposure – meaning children taking drugs by accident – and worked on it over several years.
- In 2012, Indivior had a contractor collect data on unintended pediatric exposure to buprenorphine drugs, with Baxter approving the project.
- In October 2012, an Indivior medical affairs manager who Baxter supervised met with MassHealth, and urged it to expand its coverage of Suboxone Film. In connection with the meeting, the medical affairs manager asked Indivior’s contractor for data on unintended pediatric exposure for data on Massachusetts. The contractor sent the data to the medical affairs manager. The data showed that other buprenorphine drugs – not Suboxone Film – had the lowest rate of unintended pediatric exposure in Massachusetts. But the medical affairs manager changed the data to make it appear that Suboxone Film had the lowest rate of unintended pediatric exposure in Massachusetts, and emailed the altered, inaccurate data to MassHealth. The medical affairs manager forwarded the email to Baxter, stating, “I hope this helps us get some movement” on expanding MassHealth coverage of Suboxone Film.
- Then in November 2012, the medical affairs manager emailed MassHealth an incomplete graph that intentionally omitted more data on unintended pediatric exposure that was arguably unfavorable to Suboxone Film. Baxter did not receive the email; but in another context, Baxter approved of using a similarly incomplete graph.
- Then, the following quarter, the medical affairs manager received still more data showing that other buprenorphine drugs had lower rates of unintended pediatric exposure than Suboxone Film in Massachusetts. The medical affairs manager withheld the data from MassHealth, and later stated in a speech at an Indivior corporate conference that her rationale was “don’t ask, don’t tell.”
- In December 2012, MassHealth announced that it would expand coverage of Suboxone Film for patients with children under the age of six.
- With Baxter’s approval, Indivior sent a correction letter to MassHealth in December 2015. By that time, the company had come under government investigation.
“Pharmaceutical company executives have a responsibility to ensure that their products are truthfully marketed, especially when those products are addictive opioids,” said Deputy Assistant Attorney General Daniel J. Feith of the Civil Division’s Consumer Protection Branch. “The Department of Justice will vigilantly protect public health by investigating and pursuing conduct associated with false and misleading drug claims.”
“Health care providers and insurers rely on pharmaceutical manufacturers for honesty and accuracy when they provide information, which is particularly crucial when a company markets a powerful opioid,” First Assistant Daniel Bubar said today. “Timothy Baxter failed to ensure Indivior provided accurate information to a major insurance provider. This is especially troubling, given Baxter’s long-time role as global medical director for the company. I am again proud of the extensive efforts of the investigative team, which shows we will not tolerate companies or executives who break the law by placing profits over honesty.”
“The opioid crisis has devastated families and communities across Virginia and around the country,” said Virginia Attorney General Mark Herring. “Opioid manufacturers and their executive leadership capitalized off of the opioid epidemic to sell more product, putting profits over safety. I am proud of the work my Medicaid Fraud Control Unit has done on these important cases and I want to thank our local, state and federal partners for their continued partnership.”
“Opioid addiction and abuse is a serious public health crisis and addressing it is one the FDA’s highest priorities. Providing misleading information about drugs used to treat opioid addiction could ultimately exacerbate the problem by making these treatments more difficult to obtain,” said Catherine Hermsen, Assistant Commissioner of the FDA’s Office of Criminal Investigations. “We will continue to work with the Department of Justice to investigate and hold accountable those who devise and participate in fraud schemes to the detriment of the public health.”
“The multiple Indivior prosecutions illustrate the hard work and dedication of investigators who focused on the case,” said Elton Malone, Assistant Inspector General for Investigations with the Office of Inspector General of the U.S. Department of Health and Human Services. “This resolution is emblematic of law enforcement’s continued focus on this opioid epidemic, and serves as a warning to those who would flout the law.”
“The Postal Service spends billions of dollars per year on health care related costs for its employees. It is the responsibility of special agents with the USPS OIG to ensure those dollars are paid to providers that follow the rules and regulations, and don’t try to cheat the government,” said U.S. Postal Service Office of Inspector General (USPS OIG) Special Agent in Charge Kenneth Cleevely, Eastern Area Field Office. “When we discover someone is trying to obtain money they are not entitled to, we will aggressively pursue them in coordination with our law enforcement partners, and seek their criminal prosecution when appropriate. This case should serve notice to other pharmaceutical providers that we are watching you, and we will find you if you try to cheat.”
The case against Baxter is being prosecuted by attorneys from the U.S. Attorney’s Office for the Western District of Virginia, Virginia Attorney General’s Office, and the Department of Justice Civil Division’s Commercial Litigation Branch and Consumer Protection Branch, including Albert P. Mayer, Randy Ramseyer, Kristin L. Gray, Joseph S. Hall, Janine M. Myatt, Garth W. Huston, Carol Wallack, Jill P. Furman, Charles J. Biro, and Matthew J. Lash. The investigation of Baxter was handled by the FDA’s Office of Criminal Investigations; the Virginia Medicaid Fraud Control Unit; the United States Postal Service- Office of Inspector General; and the U.S. Department of Health and Human Services - Office of Inspector General. Assistance was provided by representatives of the FDA’s Office of Chief Counsel.
- Baxter was familiar with the issue of unintended pediatric exposure – meaning children taking drugs by accident – and worked on it over several years.
Operation Shutdown Corner Update: Beckley Woman Sentenced to More than 12 Years for Federal Drug CrimeRead the Press Release
BECKLEY, W.Va. – A Beckley woman was sentenced to federal prison for her participation in a drug trafficking organization (DTO) operating between California and Raleigh County, announced United States Attorney Mike Stuart. Stephanie McClung, 48, of Beckley, was sentenced to 151 months in prison, to be followed by a five-year term of supervised release, for conspiring to distribute 50 grams or more of a substance containing methamphetamine.
“Operation Shutdown Corner took down 17 drug traffickers and was operating from California to West Virginia,” said United States Attorney Mike Stuart. “151 months in prison for her work with a drug trafficking organization. My question is, ‘Was it worth it?’ Great work by the Beckley/Raleigh County Drug and Violent Crimes Task Force and our partners at the federal, state and local levels.”
At her plea hearing in January, McClung admitted that between June 2018 and September 17, 2019, she worked with other members of a DTO operating in Raleigh County to distribute methamphetamine. McClung admitted that during this time period she was supplied with distribution amounts of controlled substances from various members of the DTO. She also admitted to selling the controlled substances, which included methamphetamine and heroin, to individuals that she now understands were working with law enforcement as confidential informants. She further admitted to allowing another member of the DTO to have controlled substances delivered to her address. She admitted to allowing this on at least two separate occasions. On one occasion, approximately one pound of methamphetamine was delivered and on a second occasion a quantity of heroin was delivered to her address.
The investigation was conducted by the Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the United States Postal Inspection Service (USPIS), the Beckley/Raleigh County Drug and Violent Crimes Task Force, the Raleigh County Sheriff’s Office, the Beckley Police Department and the West Virginia State Police.
United States District Judge Frank W. Volk imposed the sentence. Assistant United States Attorney Timothy D. Boggess 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. 5:19-cr-00237.
Follow us on Twitter: SDWVNews and USAttyStuart
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Operation Legend: Case of the DayRead the Press Release
Each weekday, the Department of Justice will highlight a case that has resulted from Operation Legend. Today’s case is out of the Western District of Missouri – the district where the Department of Justice launched Operation Legend, in honor of four-year-old LeGend Taliferro who was shot while he slept in his home in Kansas City, Missouri. Since its inception, Operation Legend has yielded close to 1,500 federal, state, and local arrests.
United States vs. Michael D. Moore and Jamahl D. Jones
“Operation Legend is successfully taking armed, violent criminals like these off the street to make our neighborhoods safer,” U.S. Attorney Tim Garrison said. “It is also important to note that these successes are only possible in great part to the collaborative partnership between federal, state and local law enforcement agencies in support of this initiative.”
Michael D. Moore, 30, and Jamahl D. Jones, 33, each were charged with being a felon in possession of a firearm in a two-count criminal complaint filed in the U.S. District Court in Kansas City, Mo. Both were arrested on Monday, Aug. 17, following a brief standoff and foot chase. Officers who had been surveilling Moore followed him into a parking lot in order to arrest him on an outstanding felony arrest warrant for robbery and armed criminal action. As officers drove into the parking lot with their red and blue lights flashing, Moore got out of the BMW SUV, took cover behind the vehicle, and drew a Smith and Wesson 9mm handgun from his waistband. Moore pointed his firearm directly at police officers as he attempted to take a position of cover behind his vehicle. Moore fled as additional police cars entered the parking lot, throwing away his handgun. Moore then laid on the ground about 15 feet away from the firearm, and was taken into custody. Officers recovered the firearm, which was loaded with 16 live rounds in the 16-round high-capacity magazine and one live round in the chamber. Officers identified the firearm as having been reported stolen.
Jones, who was standing beside the vehicle as officers approached, was also detained. Officers found marijuana in Jones’s front shorts pocket. Inside the vehicle, officers found a Sadarius 9mm semi-automatic handgun, which contained a magazine and 16 live rounds of ammunition with a live round in the chamber. Officers also found a box that contained 18 live rounds of 9mm ammunition, a 9mm handgun magazine, and a small safe that contained a 9mm handgun magazine and approximately 123 grams of marijuana.
According to an affidavit filed in support of the criminal complaint, Moore was involved in two armed robberies that led to the issuance of the arrest warrant and surveillance.
The victim of an armed robbery on July 1, 2020, told police officers that Moore, his brother-in-law, is an organizer for the “Honk for Peace” group that typically assembles at local intersections. Moore invited the victim to join one assembly. When the victim arrived with another person as a passenger in his vehicle, he contacted Moore, who directed him to drive across the street to meet him. After parking his vehicle, the victim told officers, two unknown men approached the passenger side door and Moore got into the rear passenger seat. Moore allegedly put a Taurus .40-caliber handgun against the left side of the victim’s head and ordered him to “give me everything.” One of the other men leaned inside the window and began going into the passenger’s pockets as Moore did the same. Moore removed $407 from the victim’s pants pocket, the affidavit says, and grabbed a pink backpack that contained a .40-caliber handgun.
On July 21, 2020, Moore allegedly approached another victim who was putting oil in his car outside a gas station in Kansas City, Mo. Moore allegedly approached him with a gun and ordered him to “empty your pockets.” Moore and another man stole approximately $140 and fled the scene.
Moore was later identified through surveillance photos at the gas station, the affidavit says.
On July 29, 2020, police officers stopped a BMW SUV that also was captured in the gas station surveillance photos. Jones, the only occupant of the vehicle, was arrested. Officers found a Masterpiece Arms 9mm pistol with a high-capacity extended magazine inside the vehicle, as well as 146 grams of marijuana packaged in multiple individual baggies in the driver’s side floorboard.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Moore has a prior felony conviction for robbery. Jones has two prior felony convictions for burglary, and prior felony convictions for theft, tampering with an airplane/motor boat, possession of a controlled substance, and tampering with a motor vehicle.
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 Matthew Moeder. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Background on Operation Legend
President Trump promised to assist America’s cities that have been plagued by violence. In July, Attorney General William P. Barr announced the launch of Operation Legend, a sustained, systematic and coordinated law enforcement initiative across all federal law enforcement agencies working in conjunction with state and local law enforcement officials to fight violent crime in cities across America that were experiencing an uptick in violence. Operation Legend is named after four-year-old LeGend Taliferro, who was shot and killed on June 29th in Kansas City, Missouri while he slept in his home. Kansas City, Mo., has experienced a 40 percent increase in homicides from last year.
Since Operation Legend’s launch in Kansas City, Mo., on July 8, 2020, it has expanded to Chicago and Albuquerque on July 22, 2020, to Cleveland, Detroit, and Milwaukee on July 29, 2020, to St. Louis and Memphis on Aug. 6, 2020, and to Indianapolis on Aug. 14, 2020. As part of Operation Legend, Attorney General Barr has directed federal agents from the FBI, U.S. Marshal Service, DEA and ATF to surge resources these cities to help state and local officials fighting violent crime. Since its inception, Operation Legend has yielded close to 1500 local, state, and federal arrests.
Operation Legend Results in Drug and Gun Charges Against Milwaukee ManRead the Press Release
Matthew D. Krueger, United States Attorney for the Eastern District of Wisconsin, announced that on August 25, 2020, a federal grand jury indictment was issued against Jeffrey R. Jones (age: 35) of Milwaukee, Wisconsin.
The indictment alleges that Jones distributed heroin, fentanyl, and methamphetamine, and that he possessed methamphetamine with the intent to distribute it, all in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(A), 841(b)(1)(B), and 841(b)(1)(C). If convicted of these charges, Jones faces a mandatory ten years of imprisonment and up to a lifetime of imprisonment. He is additionally charged with being a felon in possession of eight firearms and possessing fivefirearms in furtherance of a drug trafficking crime, contrary to Title 18, United States Code, Sections 922(g)(1) and 924(c)(1)(A). He faces up to ten years of imprisonment for possessing a firearm as a felon, and a mandatory five years of imprisonment up to a lifetime of imprisonment for possessing a firearm in furtherance of drug distribution.
The case was brought under Operation Legend, a Department of Justice initiative to fight violent crime in Milwaukee and other cities that have experienced an increase in crime rates. Operation Legend has directed significant additional federal funding and agents from the FBI, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the U.S. Marshals Service to the Milwaukee area to work with state and local officers to combat violent crime.
This case was investigated by the Milwaukee Police Department in conjunction with the Federal Bureau of Investigation, as part of the Safe Streets Task Force. It will be prosecuted by Assistant United States Attorney Elizabeth M. Monfils.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
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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North Carolina Man Pleads Guilty to COVID-19 Relief Fraud SchemesRead the Press Release
WASHINGTON – A North Carolina man pleaded guilty today to perpetrating three schemes between March and July 2020 connected to the COVID-19 pandemic, through which he defrauded consumers and the federal government’s relief programs.
Brandon Lewis, 34, of Greensboro, North Carolina, pleaded guilty to a criminal information charging two counts of wire fraud and one count of making false statements to the Small Business Administration (SBA) before U.S. District Judge Catherine C. Eagles of the Middle District of North Carolina. Sentencing has been scheduled for Nov. 30, 2020 before Judge Eagles.
“Brandon Lewis today admitted to a wide range of brazen schemes specifically designed to profit illegally from the COVID-19 pandemic by defrauding scores of frightened consumers and small business owners desperate for a financial lifeline,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “The department and our law enforcement partners will continue to aggressively pursue and hold accountable those who seek to illegally exploit the ongoing national emergency for their own personal benefit at the expense of hardworking Americans and businesses.”
“In the midst of a pandemic and as the economy suffered, this defendant lined his pockets by cheating online customers, small businesses, and, ultimately, all taxpayers. Stealing from people seeking basic health and cleaning supplies while under stay at home orders, and from entrepreneurs struggling to keep their businesses afloat, may be the nadir of fraudulent conduct,” said U.S. Attorney Matthew G.T. Martin of the Middle District of North Carolina. “I commend the excellent coordinated efforts of IRS Criminal Investigation, U.S. Postal Inspection Service, the Small Business Administration Inspector General, and the Treasury Inspector General. We will aggressively investigate and prosecute anyone who tries to profit by preying on people during this pandemic.”
“This is another example of greed controlling one’s actions. In a time of crisis and vulnerability in our country, Mr. Lewis promised assistance and help, but delivered more heartache and anxiety,” said Special Agent in Charge Matthew D. Line of the IRS-Criminal Investigation (IRS-CI). “I am proud of the way IRS-Criminal Investigation and our law enforcement partners quickly responded to these selfish criminal acts. We are committed to rooting out those seeking to defraud the hard-working citizens of this country during this pandemic.”
“The U.S. Postal Inspection Service will remain vigilant in bringing to justice anyone that seeks to defraud individuals during this pandemic,” said Inspector in Charge Tommy D. Coke of the U.S. Postal Inspection Service (USPIS) Atlanta Division. “These schemes highlights the importance of collaboration with our law enforcement partners to investigate and stop those seeking to take advantage of innocent victims.”
“It is unacceptable to defraud small businesses that are struggling during these unprecedented times,” said Special Agent in Charge Kevin Kupperbusch of the SBA's Office of Inspector General (OIG)’s Eastern Region. “Our office will relentlessly pursue fraudsters that use SBA’s programs for greed and personal gain. I want to thank the Justice Department and our law enforcement partners for their dedication and pursuit of justice.”
“In the midst of this pandemic, anyone who attempts to engage in illegal activity will be aggressively pursued,” said J. Russell George, Treasury Inspector General for Tax Administration (TIGTA). “Our mission at TIGTA is to protect the integrity of the nation’s system of tax administration. We will continue to work with the IRS Criminal Investigation Division, the Small Business Administration Office of Inspector General, the Postal Inspection Service, the Department of Justice, and other law enforcement partners in this effort.”
As part of his guilty plea, Lewis admitted that he created the so-called “COVID-19 Relief Fund,” which he purportedly managed and oversaw as president and founder of Lewis Revenue Group LLC. Lewis promised desperate small business owners “guaranteed funds” of between $12,500 and $15,000 in exchange for an upfront “reservation” fee of between $995 and $1,200. Lewis falsely claimed that “the fund has up to $250 million available for small businesses” and provided a link for applicants to “purchase a reservation now.”
Lewis also created the so-called “American Relief Fund,” offering $5,000 grants to “every American affected by COVID-19.” Lewis promoted these “relief funds” through sophisticated marketing and social media campaigns, even using the official trademarks and logos of purported corporate sponsors without their permission. In reality, Lewis never had or distributed any funds through the “COVID-19 Relief Fund” or “American Relief Fund.” Between April and May 2020, Lewis defrauded small business owners of more than $100,000 through this scheme.
Lewis also admitted that, in mid-March 2020 as COVID-19-related stay-at-home orders across the United States began, he set up a website called “www.homekitchengoods.com,” for the online store, “Home Kitchen Goods,” where he claimed to sell pandemic-critical goods such as hand sanitizer, disinfectant wipes, paper towels, and toilet paper. In fact, however, during the five days between March 20 and March 24, 2020, Lewis received over 8,500 orders totaling more than $400,000, but never had or delivered any of the promised goods.
Lewis further admitted that, between April 1 and June 19, 2020, he lied to the SBA by fraudulently applying for and obtaining multiple loans and advances under the SBA’s EIDL program. Specifically, Lewis purchased more than 35 “aged, off-the-shelf” corporations, and then submitted approximately 68 fraudulent loan applications and non-refundable grant “advances” of up to $10,000 through the SBA-EIDL program.
This case was investigated by the USPIS, IRS-CI, SBA-OIG, and TIGTA. Trial Attorney David A. Stier of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Meredith C. Ruggles are prosecuting the case.
If you believe you are a victim in this case please contact the Fraud Section’s Victim Witness Unit toll-free at (888) 549-3945 or email us at [email protected]. You may also may visit https://www.justice.gov/criminal-vns/case/brandon-lewis for additional information and updates as the case progresses.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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North Carolina Man Pleads Guilty to COVID-19 Relief Fraud SchemesRead the Press Release
A North Carolina man pleaded guilty today to perpetrating three schemes between March and July 2020 connected to the COVID-19 pandemic, through which he defrauded consumers and the federal government’s relief programs.
Brandon Lewis, 34, of Greensboro, North Carolina, pleaded guilty to a criminal information charging two counts of wire fraud and one count of making false statements to the Small Business Administration (SBA) before U.S. District Judge Catherine C. Eagles of the Middle District of North Carolina. Sentencing has been scheduled for Nov. 30, 2020 before Judge Eagles.
“Brandon Lewis today admitted to a wide range of brazen schemes specifically designed to profit illegally from the COVID-19 pandemic by defrauding scores of frightened consumers and small business owners desperate for a financial lifeline,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “The department and our law enforcement partners will continue to aggressively pursue and hold accountable those who seek to illegally exploit the ongoing national emergency for their own personal benefit at the expense of hardworking Americans and businesses.”
“In the midst of a pandemic and as the economy suffered, this defendant lined his pockets by cheating online customers, small businesses, and, ultimately, all taxpayers. Stealing from people seeking basic health and cleaning supplies while under stay at home orders, and from entrepreneurs struggling to keep their businesses afloat, may be the nadir of fraudulent conduct,” said U.S. Attorney Matthew G.T. Martin of the Middle District of North Carolina. “I commend the excellent coordinated efforts of IRS Criminal Investigation, U.S. Postal Inspection Service, the Small Business Administration Inspector General, and the Treasury Inspector General. We will aggressively investigate and prosecute anyone who tries to profit by preying on people during this pandemic.”
“This is another example of greed controlling one’s actions. In a time of crisis and vulnerability in our country, Mr. Lewis promised assistance and help, but delivered more heartache and anxiety,” said Special Agent in Charge Matthew D. Line of the IRS-Criminal Investigation (IRS-CI). “I am proud of the way IRS-Criminal Investigation and our law enforcement partners quickly responded to these selfish criminal acts. We are committed to rooting out those seeking to defraud the hard-working citizens of this country during this pandemic.”
“The U.S. Postal Inspection Service will remain vigilant in bringing to justice anyone that seeks to defraud individuals during this pandemic,” said Inspector in Charge Tommy D. Coke of the U.S. Postal Inspection Service (USPIS) Atlanta Division. “These schemes highlights the importance of collaboration with our law enforcement partners to investigate and stop those seeking to take advantage of innocent victims.”
“It is unacceptable to defraud small businesses that are struggling during these unprecedented times,” said Special Agent in Charge Kevin Kupperbusch of the SBA's Office of Inspector General (OIG)’s Eastern Region. “Our office will relentlessly pursue fraudsters that use SBA’s programs for greed and personal gain. I want to thank the Justice Department and our law enforcement partners for their dedication and pursuit of justice.”
“In the midst of this pandemic, anyone who attempts to engage in illegal activity will be aggressively pursued,” said J. Russell George, Treasury Inspector General for Tax Administration (TIGTA). “Our mission at TIGTA is to protect the integrity of the nation’s system of tax administration. We will continue to work with the IRS Criminal Investigation Division, the Small Business Administration Office of Inspector General, the Postal Inspection Service, the Department of Justice, and other law enforcement partners in this effort.”
As part of his guilty plea, Lewis admitted that he created the so-called “COVID-19 Relief Fund,” which he purportedly managed and oversaw as president and founder of Lewis Revenue Group LLC. Lewis promised desperate small business owners “guaranteed funds” of between $12,500 and $15,000 in exchange for an upfront “reservation” fee of between $995 and $1,200. Lewis falsely claimed that “the fund has up to $250 million available for small businesses” and provided a link for applicants to “purchase a reservation now.”
Lewis also created the so-called “American Relief Fund,” offering $5,000 grants to “every American affected by COVID-19.” Lewis promoted these “relief funds” through sophisticated marketing and social media campaigns, even using the official trademarks and logos of purported corporate sponsors without their permission. In reality, Lewis never had or distributed any funds through the “COVID-19 Relief Fund” or “American Relief Fund.” Between April and May 2020, Lewis defrauded small business owners of more than $100,000 through this scheme.
Lewis also admitted that, in mid-March 2020 as COVID-19-related stay-at-home orders across the United States began, he set up a website called “www.homekitchengoods.com,” for the online store, “Home Kitchen Goods,” where he claimed to sell pandemic-critical goods such as hand sanitizer, disinfectant wipes, paper towels, and toilet paper. In fact, however, during the five days between March 20 and March 24, 2020, Lewis received over 8,500 orders totaling more than $400,000, but never had or delivered any of the promised goods.
Lewis further admitted that, between April 1 and June 19, 2020, he lied to the SBA by fraudulently applying for and obtaining multiple loans and advances under the SBA’s EIDL program. Specifically, Lewis purchased more than 35 “aged, off-the-shelf” corporations, and then submitted approximately 68 fraudulent loan applications and non-refundable grant “advances” of up to $10,000 through the SBA-EIDL program.
This case was investigated by the USPIS, IRS-CI, SBA-OIG, and TIGTA. Trial Attorney David A. Stier of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Meredith C. Ruggles are prosecuting the case.
If you believe you are a victim in this case please contact the Fraud Section’s Victim Witness Unit toll-free at (888) 549-3945 or email us at [email protected]. You may also may visit https://www.justice.gov/criminal-vns/case/brandon-lewis for additional information and updates as the case progresses.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
New Oxford Veterinarian Pleads Guilty to Defrauding the U.S. Department of AgricultureRead the Press Release
HARRISBURG – The U.S. Attorney’s Office for the Middle District of Pennsylvania announced that Dr. Donald Yorlets, age 66, of New Oxford, Pennsylvania, pleaded guilty today before U.S. District Court Judge Jennifer P. Wilson to defrauding the U.S. Department of Agriculture between 2016 and 2019 by submitting false blood samples for bovine disease testing and by issuing false Certificates of Veterinary Inspection for the animals. Yorlets has been a Pennsylvania licensed veterinarian since 1981.
According to U.S. Attorney David J. Freed, federal law requires that each cow transported in interstate or international commerce be first tested for various bovine diseases, such as Bovine Tuberculosis, Brucellosis, Bovine Leucosis and Bovine Viral Diarrhea. Bovine Tuberculosis and Brucellosis are communicable diseases that can be transmitted to humans under certain circumstances. Bovine Tuberculosis is screened for by what is known as a Caudal Fold skin test. The test must be administered by a USDA accredited veterinarian and involves the injection of a tuberculin substance under the skin and checking it for a reaction 72 hours later. Testing for Brucellosis, Bovine Leucosis and Bovine Viral Diarrhea requires the drawing of blood and the submission of samples to an accredited laboratory for analysis.
Animals transported in international commerce can only be exported with an International Certificate of Veterinarian Inspection (ICVI). To lawfully issue an ICVI, a USDA accredited veterinarian must verify that each animal has been physically examined, tested for disease, vaccinated and medically treated as required by the USDA prior to shipment.
During the guilty plea hearing Yorlets admitted that he conspired with two unnamed exporters to avoid the disease testing requirements by falsely representing he tested every cow for Bovine Tuberculosis when, in fact, he did not. Yorlets also admitted he submitted hundreds of non-authentic, bovine blood samples to a PA Department of Agriculture testing laboratory in Harrisburg for testing and by issuing false Certificates of Veterinary Inspection for the untested animals. The false blood test results and Certificates enabled the sellers to quickly export hundreds of untested cows to Mexico, Canada, Qatar, and Puerto Rico.
The investigation began in 2017 when the Pennsylvania Veterinary Laboratory (PVL) in Harrisburg became suspicious that dozens of blood specimens submitted by Dr. Yorlets were not authentic. To confirm their suspicions the PVL sent 804 blood samples submitted by Dr. Yorlets to the USDA’s National Veterinary Services Laboratory (NVSL) in Iowa for Antibody Profile testing.
Each animal has a unique Antibody Profile in its blood. If all of the Yorlets’ blood specimens were genuine, Antibody Profile testing should have shown that all 804 blood samples had a unique Antibody Profile. However, the NVSL’s testing only found 70 unique Antibody Profiles in the 804 samples. The results confirmed that Dr. Yorlets’ repeatedly submitted the same blood samples for different animals and issued false Certificates of Veterinary Inspection for hundreds of cows that were never tested. This allowed the sellers to export the animals quickly and reduce expenses incurred in keeping the animals on domestic feeder lots.
Dr. Yorlets’ stipulated the loss sustained by the USDA for the out of pocket laboratory expenses was $38,005, and has agreed to make full restitution in that amount. No date has been scheduled for Yorlets’ sentencing pending preparation of a pre-sentence report.
The case was investigated by the USDA’s Office of Inspector General and the Department of Homeland Security. Assistant United States Attorney Kim Douglas Daniel is prosecuting the case.
The maximum penalty for this offense is five years imprisonment and a $250,000 fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines, and could include a term of supervisory release following imprisonment, and a fine.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Navajo Man from Smith Lake, New Mexico faces federal assault charges for allegedly beating his brother with a baseball batRead the Press Release
ALBUQUERQUE, N.M. – Mark Anthony Hill, 32, an enrolled member of the Navajo Nation residing in of Smith Lake, New Mexico, appeared in federal court in Albuquerque today on a criminal complaint charging him with assault with a dangerous weapon and assault resulting in serious bodily injury in Indian Country. A U.S. magistrate judge ordered him held in custody pending trial.
According to the complaint, Hill committed the alleged assault on Aug. 23 in McKinley County, New Mexico. Hill allegedly got into an argument with his brother while drinking alcohol. Hill allegedly struck the victim with his fists and knocked him to the ground. Hill then allegedly retrieved a baseball bat and struck the victim in the head and torso causing serious injuries, including fractures to the victim’s skull and jaw, a dislocated shoulder and a torn left ear.
The Navajo Nation Department of Criminal Investigations arrested Hill on Aug. 26. If convicted, Hill faces up to ten years in prison on each assault charge. A criminal complaint is only an accusation. A defendant is presumed innocent unless and until proven guilty.
The Crownpoint District of the Navajo Nation Police Department investigated the case. Assistant U.S. Attorney Thomas J. Aliberti is prosecuting the case.
Nashua Man Sentenced to 24 Months for Fentanyl TraffickingRead the Press Release
CONCORD - Martin Sheehan, 28, of Nashua, was sentenced to 24 months in federal prison for fentanyl trafficking, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, in October of 2018, Sheehan sold fentanyl on two occasions to a cooperating individual at locations in Nashua. In February of 2019, law enforcement officers arrested Sheehan at a motel. Officers recovered over 13 grams of fentanyl, which Sheehan admitted belonged to him.
Sheehan previously pleaded guilty on May 13, 2020.
“Fentanyl has caused substantial damage throughout New Hampshire,” said U.S. Attorney Murray. “Through Operation S.O.S., we are fighting back against the drug dealers who peddle fentanyl and other opioids. We will continue to work closely with Nashua Police Department and all of our law enforcement partners to identify, prosecute, and incarcerate the drug traffickers who have threatened public health and safety by selling these deadly drugs.”
This matter was investigated by the Nashua Police Department. The case was prosecuted by Assistant U.S. Attorney Joachim H. Barth.
This case is part of Operation Synthetic Opioid Surge (S.O.S.). In July of 2018, Attorney General Jeff Sessions announced the creation of S.O.S., which is being implemented in the District of New Hampshire and nine other federal districts. The goal of S.O.S. is to combat the large number of overdoses and deaths associated with fentanyl and other synthetic opioids. In New Hampshire, the U.S. Attorney’s Office is focusing its efforts on prosecuting synthetic opioid trafficking cases arising in Hillsborough County, which includes Manchester and Nashua.
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Montecito Man Sentenced to 3 Years in Federal Prison for Facebook, Twitter IPO Fraud that Caused $3.4 Million in Losses to InvestorsRead the Press Release
LOS ANGELES – A Santa Barbara County man was sentenced today to 36 months in federal prison for orchestrating a years-long scheme that defrauded investors out of more than $3.4 million with false promises to use their money to purchase shares of Facebook and Twitter prior to the companies’ initial public offerings.
Efstratios “Elias” Argyropoulos, 73, of Montecito, was sentenced by United States District Judge George H. Wu, who also ordered him to pay $3,416,628 in restitution to his victims. Argyropoulos pleaded guilty in June 2019 to one count of wire fraud.
From October 2010 to October 2015, Argyropoulos was the president and sole shareholder of Prima Ventures Corp., a Santa Barbara-based financial services firm. Argyropoulos represented to investors that he had access to “amazing” investment opportunities that would provide a high rate of return on any money invested.
During the course of the scheme, Argyropoulos misled investors by telling them that he would pool their money to purchase pre-IPO shares of companies such as Facebook and Twitter. He also falsely told investors he had access to good investment opportunities in companies such as Alibaba, Etsy, and E-Waste.
Argyropoulos further told investors that he and Prima Ventures were licensed brokers, when, in truth, neither he nor Prima Ventures was licensed by the Securities and Exchange Commission or any other regulatory authority to sell securities.
Instead of purchasing the stocks, Argyropoulos diverted the investor funds for other uses, such as day-trading in stocks unrelated to the promised investments, and personal expenses such as gambling, cars, insurance bills, travel, and his legal expenses arising out of an investigation into his activities conducted by the SEC.
Some of Argyropoulos’s victims met him at church gatherings, where he forged relationships with them and then used these relationships to recruit other unsuspecting investors, such as the victims’ work colleagues.
Argyropoulos also admitted to willfully violating a January 2015 court order in a lawsuit brought by the SEC, which was based on the fraudulent Facebook and Twitter scheme. The injunction prohibited Argyropoulos from selling fraudulent investments and acting as an unlicensed broker.
In total, Argyropoulos cheated 130 victims out of more than $3.4 million.
The FBI investigated this matter. The SEC provided substantial assistance.
This case was prosecuted by Assistant United States Attorney Scott Paetty of the Major Frauds Section.
Mission Man Charged with Assaulting a Federal OfficerRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Assaulting, Resisting, and Impeding a Federal Officer.
Dayton Thin Elk, a/k/a Dayton Haukaas, age 24, was indicted on July 16, 2020. He appeared before U.S. Magistrate Judge Mark A. Moreno on August 28, 2020, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on April 27, 2020, in Todd County, South Dakota, Thin Elk did forcibly assault, oppose, impede, intimidate, and interfere with multiple law enforcement officers who were employed by the Rosebud Sioux Tribe.
The charges are merely accusations and Thin Elk is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Thin Elk was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Miami Man Who Allegedly Cyberstalked at Least 10 Victims, Repeatedly Threatening to Kill One of Them, Charged in Federal CourtRead the Press Release
Miami, Fl. -- South Florida federal prosecutors have charged 28-year-old Brandon Kevin Campbell with cyberstalking after he allegedly made repeated threats by telephone call and text message to injure or kill his victims, including a former girlfriend.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, FBI, Miami Field Office, made the announcement.
From April 1, 2019 through mid-May 2020, Campbell allegedly called his former girlfriend’s cellular telephone over 850 times, her workplace approximately 2,000 times, and her sister’s workplace approximately 1,700 times. At the start of many of these calls, Campbell used a telephone number blocking technique (*67) to try to conceal his identity, according to the complaint.
During telephone calls and in text messages, Campbell allegedly threatened his former girlfriend with statements such as: “Ima kill you you f***ing smut,” “I can’t wait till you die,” “I can’t wait to watch your soul leave your body,” and “Before your bday on my momma ima watch the blood leave your body, b***h.” The criminal complaint alleges that Campbell also harassed and threatened persons close to his former girlfriend, including her sister, her friend, and her co-workers. In one text message to the sister, Campbell allegedly wrote: “I’m at your house I swear to god ima kill [your sister] …Watch she dead.” During a telephone conversation with a friend of his former girlfriend, Campbell allegedly threatened the following: “Police cannot save you. Promise. You going to die. Promise.” Finally, during phone calls to his former girlfriend’s workplace, Campbell threatened to show up, shoot everyone inside, then kill himself, according to the criminal complaint. The FBI learned about the threats and began investigating Campbell after receiving a tip through the FBI’s National Threat Operations Center.
Campbell appeared today in Miami federal court before U.S. Magistrate Judge Lauren Fleischer Louis, who detained him pending trial. Campbell faces up to five years in federal prison.
FBI Miami investigated this case. Assistant U.S. Attorney Yara Klukas is prosecuting it.
You may find related court documents and information 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, under case no. 20-mj-03509.
Members of Fraudulent Prescription Ring Sentenced to Federal Prison TermsRead the Press Release
Tampa, Florida – U.S. District Judge Charlene Honeywell has sentenced Patrice Jackson (37, Bradenton) to 5 years and 10 months in federal prison for conspiracy to distribute controlled substances. Jackson, one of four members of a fraudulent opiate prescription drug conspiracy, pleaded guilty on October 23, 2019.
According to court documents, between August 2015 and August 2016, Jackson and her co-conspirators agreed to dispense and distribute prescription opiates through a forged-prescription scheme. Lucretia Mullan and another staff member at a local pain management clinic, forged prescriptions and sold them to Jackson, who then took them to nearby HP pharmacy in Pinellas Park. For a fee, the pharmacy technician at HP, Jessica Evans, assisted the HP pharmacist, Hong Truong, in dispensing the prescription opiates to Jackson. Jackson then sold the opiates to others, mostly in the Sarasota area. In all, the conspirators were responsible for obtaining at least 54 fraudulent prescriptions or 8,500 opiate tablets.
Co-conspirators Lucretia Mullan and Jessica Evans were previously sentenced to 20 months’ and 25 months’ imprisonment, respectively, for their roles in the scheme. Hong Truong’s sentencing hearing is scheduled for September 23, 2020.
This case was investigated by the Drug Enforcement Administration and the Opioid Fraud and Abuse Detection Unit. The Opioid Fraud and Abuse Detection Unit was created by the Department of Justice to help combat the devastating opioid crisis. The Opioid Fraud and Abuse Detection Unit focuses specifically on opioid-related health care fraud, using data to identify and prosecute individuals contributing to the prescription opioid epidemic. These cases are being prosecuted by Assistant United States Attorneys Greg Pizzo and Kelley Howard-Allen.
Maysville Man Pleads Guilty to Attempted Enticement of MinorRead the Press Release
COVINGTON, Ky. - A Maysville, Ky., man, William Scott Smith, 39, pleaded guilty on Monday, before U.S. District Judge David Bunning, to attempted enticement of a minor.
According to his plea agreement, on September 9, 2019, law enforcement received information that Smith was attempting to solicit a minor female victim for sex. The following day, law enforcement created a fake Facebook profile, for a 14-year-old female, and sent Scott a friend request. Scott accepted the friend request and initiated a conversation with an undercover officer who was posing as the minor. Scott engaged in a graphic conversation with the minor, inquiring about her age and sexual experience. Scott then arranged to meet the minor at a public library to have sex. When he arrived for the meeting, he was arrested.
Scott was indicted in February 2020.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; James Robert Brown, Jr., Special Agent in Charge, FBI, Louisville Field Office; and Chief Jared Muse, Maysville Police Department, jointly announced the guilty plea.
The investigation was conducted by the FBI and Maysville Police Department. The United States was represented by Assistant U.S. Attorneys Elaine Leonhard and Jennifer Weinhold.
Scott is scheduled to be sentenced on December 8, 2020. He faces a minimum of 10 years and a maximum of life in prison. However, any sentence will be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Massage Parlor Owner Pleads Guilty to Federal Prostitution ChargeRead the Press Release
KANSAS CITY, KAN. - An Overland Park woman who owned massage parlors in Olathe and Leawood pleaded guilty today to a federal interstate prostitution charge.
Chunqui Wu, 62, Overland Park, Kan., pleaded guilty to one count of transportation with intent to engage in illicit sexual conduct. An indictment alleges Wu operated three massage parlors: Alpha Massage at 116 S. Clairborne, #A, in Olathe, Kan.; A Plus Massage at 527 N. Mur-Len Road, in Olathe, Kan.; and King Spa at 13104 State Line Road in Leawood, Kan.
Wu’s plea agreement says investigators worked with an undercover confidential source who contacted Wu and asked for a job working in Wu’s massage parlors. Wu made statements indicating she allowed her employees to perform sexual services for tips. Other investigators working undercover confirmed that employees in Wu’s massage parlors were offering sexual services to customers.
Wu was arrested when she went to the Kansas City International airport in Kansas City, Mo., to meet the undercover confidential source and transport her back to Kansas to work in one of Wu’s massage parlors.
Sentencing is set for Nov. 16. Wu could face up to 10 years in federal prison. McAllister commended the Olathe Police Department, the Leawood Police Department, the FBI and Assistant U.S. Attorney Kim Flannigan for their work on the case.
Marion County Armed Career Criminal Sentenced to More Than 17 Years in Federal PrisonRead the Press Release
Ocala, Florida – Senior United States District Judge John Antoon II has sentenced Charlie Lee Wright, Jr. (52, Summerfield) to 17 years and 7 months in federal prison for possessing a firearm as a convicted felon. A federal jury had found Wright guilty in December 2019. Because of Wright’s extensive criminal record, he qualified as an Armed Career Criminal and was subject to a 15-year mandatory minimum sentence. In addition, five firearms—three rifles and two handguns—were also administratively forfeited.
According to court records, on January 16, 2019, the Marion County Sheriff’s Office executed a search warrant at Wright’s home pursuant to an investigation into missing jewelry. During the search, detectives located numerous firearms and hundreds of rounds of ammunition inside the home and in a car registered in Wright’s name. Wright subsequently admitted to federal investigators that he had handled at least two of the recovered firearms.
According to evidence presented during the trial, Wright has 28 prior felony convictions in Florida. As a convicted felon, he is prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the Marion County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Manchester Man Pleads Guilty to Methamphetamine TraffickingRead the Press Release
CONCORD - Christopher Gelinas, 24, of Manchester, pleaded guilty in federal court to distributing methamphetamine, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, Gelinas sold highly-pure methamphetamine to an individual who was cooperating with law enforcement officers on two occasions. On October 23, 2019, a cooperating individual bought methamphetamine from Gelinas at a residence in Concord. On November 18, 2019, a cooperating individual purchased methamphetamine from Gelinas in Boscawen.
Gelinas is scheduled to be sentenced on December 10, 2020.
“Highly-pure methamphetamine is now appearing in New Hampshire with alarming frequency,” said U.S. Attorney Murray. “Even as we continue to combat the opioid crisis, methamphetamine poses an additional serious threat to public health and safety. Accordingly, we will continue to work closely with our law enforcement partners to identify and prosecute the traffickers who are responsible for selling this highly dangerous drug in the Granite State.”
This matter was investigated by the Drug Enforcement Administration with assistance from the New Hampshire State Police and the Concord Police Department. The case is being prosecuted by Assistant U.S. Attorney John S. Davis.
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Manager of Medical Clinics in Brooklyn and Queens Sentenced to 13 Years in Prison for Multimillion-Dollar Money Laundering and Health Care Kickback SchemeRead the Press Release
WASHINGTON – Earlier today, in federal court in Brooklyn, Aleksandr Pikus was sentenced by United States District Judge Ann M. Donnelly to 13 years’ imprisonment for his role in a massive healthcare kickback and money laundering conspiracy. Pikus was also ordered by the Court to pay restitution in the amount of $23 million to Medicare, $16 million to Medicaid, $433,297 to the Internal Revenue Service and forfeit $2,614,233.79. Pikus was convicted by a federal jury in November 2019 of one count of conspiracy to commit money laundering, two counts of money laundering, one count of conspiracy to pay and receive health care kickbacks and one count of conspiracy to defraud the United States by obstructing the IRS.
Seth D. DuCharme, acting United States Attorney for the Eastern District of New York, Brian C. Rabbitt, Acting Assistant Attorney General of the Justice Department’s Criminal Division, Scott J. Lampert, Special Agent-in-Charge, U.S. Department of Health and Human Services, Office of Inspector General, New York Region (HHS-OIG), and Jonathan D. Larsen, Acting Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, New York (IRS-CI), announced the sentence.
“The defendant’s key role in an elaborate scheme to steal and conceal tens of millions of dollars from the Medicare and Medicaid programs, was staggering in scope and deserving of the significant punishment he received today,” stated Acting U.S. Attorney DuCharme. “This Office takes very seriously its obligation to protect government funds that provide vital medical coverage counted upon by individuals and families who qualify because of their low income, disability or advanced years.”
“For nearly a decade, Aleksandr Pikus stole millions of dollars from the federal Medicare and Medicaid programs in a major healthcare kickback, money laundering and tax fraud scheme,” stated Acting Assistant Attorney General Rabbitt. “This significant sentence holds Pikus accountable for his leadership role in this scheme and reflects the Department’s commitment to protecting our valuable federal healthcare programs and their beneficiaries from this kind of fraud.”
“Pikus was the kingpin running a massive money laundering and kickback health care fraud syndicate,” stated HHS-OIG Special Agent-in-Charge Lampert. “Now, like others who plot to steal from government health programs, he is paying a heavy price for his crimes. Along with our law enforcement partners, we will continue to root out individuals who steal vital taxpayer-provided health funds.”
“The defendant’s greed and desire for money drove him to perpetrate crimes against our healthcare system and prey upon the vulnerable in our society,” stated IRS-CI Special Agent-in-Charge Larsen. “Justice has been served and IRS-CI will continue to work alongside our counterparts to uncover these schemes to hold these criminals accountable for their actions.”
The evidence at trial established that over the course of nearly a decade, Pikus and his co-conspirators perpetrated a scheme through a series of medical clinics in Brooklyn and Queens that employed doctors, physical and occupational therapists and other medical professionals who were enrolled in the Medicare and Medicaid programs. In return for illegal kickbacks, Pikus referred beneficiaries to these health care providers, who submitted claims to the Medicare and Medicaid programs. Pikus and his co-conspirators then laundered a substantial portion of the proceeds of these claims through companies he controlled, including by cashing checks at several New York City check-cashing businesses. Pikus then failed to report that cash income to the IRS. Instead, Pikus used the cash to enrich himself and others and to pay kickbacks to patient recruiters, who, in turn, paid beneficiaries to receive treatment at the medical clinics. The evidence further established that Pikus and his co-conspirators used sham shell companies and fake invoices to conceal their illegal activities.
Pikus used violent threats to protect his scheme. For example, he threatened a co-conspirator who was thinking about leaving the scheme by saying: “[Y]ou know, you[’re] already with us so the only way out is feet first through the door,” meaning “like in a body bag.” When a therapist left the Pikus Clinics, the defendant told a co-conspirator “I’m hearing that he might be trying to take patients from our clinics to that other clinic. . . tell him he better stop unless he likes his legs to be broken.”
More than 25 other individuals have pleaded guilty to or been convicted of participating in the scheme, including physicians, physical and occupational therapists, ambulette drivers and the owners of several of the shell companies used to launder the stolen money.
This case was investigated by the HHS-OIG and IRS-CI, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the United States Attorney’s Office for the Eastern District of New York. Assistant Chief A. Brendan Stewart and Trial Attorneys Sarah Wilson Rocha and Andrew Estes of the Fraud Section are prosecuting the case with Assistant U.S. Attorney Claire S. Kedeshian of the Eastern District of New York’s Civil Division, which is handling forfeiture matters.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for approximately $19 billion. In addition, the U.S. Department of Health and Human Services Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Defendant:
ALEKSANDR PIKUS
Age: 45
Brooklyn, New YorkE.D.N.Y. Docket No.: 16-CR-329 (AMD)
Man Pleads Guilty to Federal Drug ChargeRead the Press Release
HUNTINGTON, W.Va. – Luis Eduardo Martinez-Torres, 23, from Mexico, pled guilty today to aiding and abetting possession with intent to distribute heroin and methamphetamine.
“Heroin and meth. A deadly duo. Too many victims. Far too many, all as a result of making an easy buck and greed. We are taking our streets back from the drug dealers who have sought to destroy them for their own financial gain,” said United States Attorney Mike Stuart.
Officers executed a search warrant on June 5, 2019 in Huntington. Martinez-Torres and other individuals were in the home at the time of the search warrant. Officers found methamphetamine and heroin in the home. Martinez-Torres admitted that he aided and abetted other individuals in possessing with the intent to distribute 340 grams of methamphetamine and 453 grams of heroin in Huntington.
Martinez-Torres faces up to 20 years in prison when he is sentenced on December 7, 2020.
The investigation was conducted by the Drug Enforcement Administration (DEA), the Violent Crime and Drug Task Force West and the Wayne County Sheriff’s Department.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Stephanie S. Taylor 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. 3:19-cr-00281.
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