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7 October 2020
California man sentenced for illegal firearm possessionRead the Press Release
GREAT FALLS — A California man today was sentenced to 30 months in prison after he admitted to illegally possessing a firearm, U.S. Attorney Kurt Alme said.
Darryl Jason Dempsey, 30, of Vacaville, CA, pleaded guilty in June to prohibited person in possession of a firearm.
Chief U.S. District Judge Brian M. Morris presided.
In court documents filed in the case, the prosecution said on June 7, 2019, law enforcement officers came into contact with Dempsey north of Outlook, about one mile south of the Canadian border. Dempsey told officers that his truck was stuck nearby and provided a description of the truck. Dempsey provided a false name and did not have any identification documents. He also had a large amount of cash on his person. Officers took Dempsey to the Border Patrol Station to be identified.
Officers located the truck, and a canine alerted to the presence of drugs. Officers impounded the truck and searched it. Underneath the backseat compartment, an officer found a loaded 9mm semi-automatic pistol. At the time of the offense, Dempsey was on probation in California for a felony conviction and was prohibited from possessing firearms.
Assistant U.S. Attorney Cassady Adams prosecuted the case, which was investigated by Homeland Security Investigations, the U.S. Border Patrol, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Sheridan County Sheriff's Office.
This case is part of Project Guardian, a Department of Justice initiative launched in the fall of 2019 to reduce gun violence and enforce federal firearms laws. Through Project Guardian, the U.S. Attorney’s Office in the District of Montana is working to enhance coordination of its federal, state, tribal and local law enforcement partners in investigating and prosecuting gun crimes. In addition, Project Guardian supports information sharing and taking action when individuals are denied a firearm purchase by the National Instant Criminal Background Check System for mental health reasons or because they are a prohibited person.
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CEO of Financial Firm Pleads Guilty to Running Multi-Million Dollar Securities and Tax Fraud Scheme, and Operating an Unlicensed Money Services BusinessRead the Press Release
A California-based man pleaded guilty today to conspiring with others to defraud shareholders of publicly traded companies, transmitting millions of dollars through the operation of an unlicensed money-services business in California, and falsifying multiple years of federal tax returns.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Robert S. Brewer for the Southern District of California, Special Agent in Charge Ryan L. Korner of IRS Criminal Investigation’s (IRS-CI) Los Angeles Field Office and Special Agent in Charge Cardell Morant of U.S. Immigration and Customs Enforcement’s Homeland Security Investigation (HSI) made the announcement.
David Nava, 62, of La Jolla, California, pleaded guilty to one count of conspiracy to commit securities fraud, one count of operating an unlicensed money transmitting business (MTB), and one count of tax fraud before U.S. Magistrate Judge Karen S. Crawford of the Southern District of California. Sentencing is set for Jan. 8, 2021.
According to the plea agreement filed in court, Nava was at all relevant times the CEO of the Surf Financial Group LLC (Surf Financial), a financial-services firm based in La Jolla, California. In 1994, federal securities regulators permanently banned and censured Nava from participating in the securities industry. Despite the two-decades’ old ban, Nava admitted in the plea agreement that he and other co-conspirators, including a licensed attorney, converted the debt of various publicly traded companies under materially false and fraudulent pretenses into unrestricted stock and then sold the stock for profit. Nava further admitted that he and his co-conspirators carried out their fraudulent scheme by entering into agreements in which Nava sold shares of various entities’ stock in public-market exchanges, only after fraudulently claiming an exemption from the U.S. Securities and Exchange Commission’s (SEC) registration requirements for selling securities in the public marketplace.
In the plea agreement, Nava admitted that he directed at least one attorney, as well other co-conspirators, to prepare fraudulent attorney opinion letters that were used to remove restrictions on various publicly traded companies’ stocks so that they could be freely traded on the open market. These fraudulent attorney opinion letters permitted Nava and his co-conspirators to sell their shares of stock at times of their choosing and unlawfully to circumvent the SEC’s regulations governing the offer and sale of securities.
To conceal his involvement in the scheme, Nava admitted he used various nominees to ensure that, as Nava described it, he was a “ghost” in the transactions. Brokerage firms relied on the purported truth and accuracy of the attorney opinion letters in evaluating whether to clear the sale of shares of the restricted stocks on public markets. After the stocks were cleared for sale as a result of the false attorney opinion letters, Nava and his co-conspirators sold millions of shares of these stocks to the investing public. Nava further admitted that, after selling these shares and securities, he transferred the proceeds derived from the securities-fraud scheme into bank accounts under his direct control.
Nava also admitted that, from approximately 2017 to 2018, he owned and operated an unlicensed MTB as a means to transmit financial proceeds from foreign locations, including Hong Kong and the Bahamas, all of which disguised the source, origin and control of such financial proceeds. As Nava further admitted, in 2017, Nava entered into a business partnership with at least one co-conspirator who resided in Mexico and delivered dairy products for a living. To conceal Nava’s control over the MTB, Nava directed the Mexican resident to fraudulently open a deposit account in his name at a financial institution in San Diego, and to transmit funds as a nominee and as directed by Nava. According to the plea agreement, Nava’s unlicensed MTB transacted millions of dollars in international wire transfers with entities purportedly involved in investment-banking services and which sold futures and securities. Nava failed to register his MTB with the U.S. Treasury Department’s Financial Crimes Enforcement Network, or FinCEN, as required under federal law.
As stated in the plea agreement, Nava also falsified his tax returns for years 2014, 2015 and 2016. He admitted that he falsely and fraudulently underreported Surf Financial’s profits, and he did so for the purpose of underreporting Nava’s true income and tax liability.
This case was investigated by IRS- CI and HSI. Trial Attorney Kevin Lowell of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Daniel Silva of the U.S. Attorney’s Office for the Southern District of California are prosecuting the case.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Boise Man Sentenced to 13 Years for Drug TraffickingRead the Press Release
BOISE – Kimber Jac Marston, 44, of Boise, was sentenced in U.S. District Court to 13 years in federal prison for possession with intent to distribute more than 50 grams of methamphetamine, U.S. Attorney Bart M. Davis announced today. U.S. District Judge B. Lynn Winmill also ordered Marston to pay a $1,000 fine and serve five years of supervised release following his prison sentence. Marston pleaded guilty to the charge on July 14, 2020.
According to court records, while on parole for a state drug conviction, Marston’s residence was searched by Idaho Department of Correction probation and parole officers. During the search, Marston was found in possession of 323 grams of methamphetamine that he admitted he intended to distribute to others. A digital scale and plastic packaging materials commonly used to weigh and package methamphetamine for distribution was also found in Marston’s possession. Marston’s criminal history includes five felony drug convictions.
This case was investigated by the Boise Police Department and Idaho Department of Correction.
This case was prosecuted by the Special Assistant U.S. Attorney hired by the Ada County
Prosecuting Attorney’s Office and the Idaho High Intensity Drug Trafficking Area Board. The Idaho High Intensity Drug Trafficking Board is a collaboration of local law enforcement drug task forces and prosecuting agencies dedicated to addressing regional drug trafficking organizations that operate in Ada, Canyon, and Malheur County.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Bergen County Postal Employee Arrested for Bank Fraud and Mail TheftRead the Press Release
NEWARK, N.J. – A U.S. Postal Service (USPS) employee was arrested today for stealing mail and committing bank fraud, including stealing checks sent through the mail and fraudulently depositing those checks without authorization, U.S. Attorney Craig Carpenito announced.
Juan Torres, 27, of Hackensack, New Jersey, is charged by complaint with one count of bank fraud and one count of mail theft. He is scheduled to appear/appeared this afternoon via videoconference before U.S. Magistrate Judge Cathy L. Waldor.
According to documents filed in this case and statements made in court:
From November 2019 to Jan. 11, 2020, certain checks addressed to third-party victims and mailed to addresses on postal routes in Hackensack, Leonia, and Maywood, New Jersey, were stolen on or about the same dates that Torres was delivering mail on those routes and subsequently were fraudulently deposited by Torres, in New Jersey and elsewhere, into a bank account that he controlled.
The bank fraud charge is punishable by a maximum potential penalty of 30 years in prison and a fine of up to $1 million. The mail theft charge is punishable by a maximum potential penalty of five years in prison and a maximum $250,000 fine.
U.S. Attorney Carpenito credited special agents with the U.S. Postal Service – Office of Inspector General, under the direction of Special Agent in Charge Matthew Modafferi, Northeast Area Field Office, and postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge James Buthorn, with the investigation leading to today’s arrest. He also thanked special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez, and the Office of the Treasury Inspector General for Tax Administration (TIGTA), under the direction of Special Agent in Charge Andrew McKay, for their assistance.
The government is represented by Assistant U.S. Attorney Elaine K. Lou of the Special Prosecutions Division in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Bergen County Man Charged with Conspiring to Steal More Than $7.8 Million Worth of HIV Medication from Veterans Affairs Medical CenterRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man was charged for his role in stealing prescription HIV medication from the pharmacy of the East Orange VA Medical Center, U.S. Attorney Craig Carpenito announced today.
Wagner Checonolasco, a/k/a “Wanny,” 33, of Lyndhurst, New Jersey was charged by criminal complaint with conspiracy to steal government property, specifically HIV medication. Checonolasco had his initial appearance by videoconference before U.S. Magistrate Judge Cathy L. Waldor and was released on $250,000 unsecured appearance bond.
According to documents filed in this case and statements made in court:
From January 2018 through November 2019, Checonolasco conspired with another person to steal prescription HIV medication from the Veterans Affairs Medical Center (VAMC) in East Orange, New Jersey. The conspirator, who was employed as a pharmacy procurement technician at the VAMC pharmacy, placed large orders for HIV medication, purportedly on behalf of VAMC. After the medication was delivered, the conspirator stole it. Checonolasco and the conspirator met, frequently at the conspirator’s residence, so that Checonolasco could purchase the stolen HIV medication, which he then sold. Checonolasco and the conspirator conspired to steal $7.85 million worth of HIV medications.
The charge of conspiracy to steal government property is punishable by a potential penalty of five years in prison and fine of a $250,000, or twice the gross gain or loss from the offense, whichever is greater.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, and the U.S. Department of Veterans Affairs, Office of Inspector General, Northeast Field Office, under the direction of Special Agent in Charge Christopher F. Algieri, with the ongoing investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Nicole F. Mastropieri of the Health Care Fraud Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Armed heroin trafficker in Yellowstone County sentenced to seven years in prisonRead the Press Release
BILLINGS — A Whitefish man who admitted dealing heroin and having firearms for protection in Yellowstone County today was sentenced to seven years in prison and three years of supervised release, U.S. Attorney Kurt Alme said.
Joshua John Welliver, 32, pleaded guilty in January to possession with intent to distribute heroin, possession of a firearm in furtherance of a drug trafficking crime and prohibited person in possession of a firearm.
U.S. District Judge Dana L. Christensen presided.
The prosecution said in court documents that Montana Department of Family Services caseworkers were at Welliver's residence in November 2019 in Yellowstone County when he became upset and started causing a disturbance. Welliver ran into his garage and began throwing around items. Yellowstone County Sheriff's deputies and Probation and Parole officers responded. Welliver admitted he had drugs and paraphernalia in the residence and that he had a firearm on his person when DFS workers arrived and had hidden it. Welliver showed officers where he had hidden the gun, a 9mm pistol, in the garage. Officers then found 65 grams of heroin hidden in a concealment container insider of Welliver's truck. Officers also located a bolt-action rifle inside a shed on the property.
Welliver admitted to officers he was a heroin dealer and said he had the guns to protect himself because people try to rob dealers if they have a lot of drugs. He also admitted he got the guns by trading heroin for them.
Welliver was prohibited from possessing firearms because of a felony conviction in Flathead County.
Assistant U.S. Attorney Tom Godfrey prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case is part of Project Guardian, a Department of Justice initiative launched in the fall of 2019 to reduce gun violence and enforce federal firearms laws. Through Project Guardian, the U.S. Attorney’s Office in the District of Montana is working to enhance coordination of its federal, state, tribal and local law enforcement partners in investigating and prosecuting gun crimes. In addition, Project Guardian supports information sharing and taking action when individuals are denied a firearm purchase by the National Instant Criminal Background Check System for mental health reasons or because they are a prohibited person.
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Armed Drug Dealer Sentenced to Prison after Vehicular PursuitRead the Press Release
RICHMOND, Va. – A previously convicted felon was sentenced today to over 12 years in prison for his possession of a firearm and possession of distribution amounts of cocaine hydrochloride and cocaine base following a vehicular pursuit in the City of Richmond.
According to court documents, in October 2019, Shamel McLaughlin, 35, of Richmond, engaged Richmond Police Department (RPD) officers in a high-speed vehicular pursuit in a residential neighborhood in the City of Richmond. Upon stopping his vehicle, RPD officers apprehended McLaughlin after a brief foot pursuit. A search of McLaughlin revealed a baggie with 3.45 grams of cocaine hydrochloride and 15 grams of marijuana. Following McLaughlin’s arrest, RPD officers discovered inside his vehicle a Smith and Wesson .38 caliber revolver, 17 rounds of .38 caliber ammunition, 2.49 grams of cocaine base, and small amounts of heroin and fentanyl
Based on his two prior drug distribution convictions, the Court sentenced McLaughlin as a career offender.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. Click here for more information about Project Guardian.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Ashan M. Benedict, Special Agent in Charge of the ATF’s Washington Field Division, made the announcement after sentencing by U.S. District Judge David J. Novak.
Assistant U.S. Attorney Erik S. Siebert prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:20-cr-16.
Alabama Man Sentenced to 16 Months for Veterans Affairs TheftRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that DANIEL VANSLYKE, age 34, of Slocomb, Alabama, was sentenced to 16 months of imprisonment by U.S. District Court Judge Jane Triche Milazzo in the Eastern District of Louisiana. VANSLYKE had previously pleaded guilty to one count of theft of government funds.
According to the factual basis and charging document, VANSLYKE previously resided in Franklinton, Louisiana with his father, a legitimate U.S. veteran. After his father died, VANSLYKE failed to advise the United States Department of Veterans Affairs (“VA”) of his passing and in fact gave information to the VA to indicate that his father was still alive and entitled to benefits. Thereafter, VANSLYKE knowingly stole benefits from the VA that did not belong to him.
In addition to incarceration, VANSLYKE was ordered to pay restitution to the government in the amount of $46,051.92 and $100 mandatory special assessment. He was also sentenced to 3 years of supervised release following incarceration.
U.S. Attorney Strasser praised the work of the Veterans Affairs Office of Inspector General for their investigation of the matter. Assistant U.S. Attorney Edward J. Rivera was in charge of the prosecution.
6 October 2020
Western Michigan Man Gets 36 Months for Credit Union and Bank RobberiesRead the Press Release
GRAND RAPIDS, MICHIGAN - U.S. Attorney Andrew Birge announced today that Gilbert Chrispin Noel Jr., 56, of Wayland, Michigan, was sentenced to serve a total of 36 months in the Federal Bureau of Prisons for two counts of credit union robbery and one count of bank robbery. U.S. District Judge Paul Maloney also imposed a period of supervised release of 3 years and ordered Noel to pay $22,489.00 in restitution.
Between February and November 2019, Noel robbed two credit unions and one bank in Western Michigan. On February 14, 2019, the defendant robbed the Lake Michigan Credit Union located at 2636 44th Street SW, Wyoming, Michigan. Four months later, on June 11, 2019, Noel robbed the Lake Michigan Credit Union located at 675 68th Street SW, Byron Township, Michigan. Five months after that, on November 26, 2019, Noel robbed the Chemical Bank located at 303 Arlington Street, Middleville, Michigan. Noel was arrested after an anonymous tipster called local police when they recognized Noel from the Chemical Bank surveillance photo that was released to news media following his third robbery. When confronted by police, Noel confessed to robbing the two credit unions and the bank in order to pay his mounting bills. At sentencing, Judge Maloney emphasized that these robberies were very serious crimes, which put many people at risk.
In announcing the sentence, U.S. Attorney Birge echoed the Court stating, “Credit union and bank robbery are serious offenses, often resulting in traumatic life-altering consequences for the victims. My office and our partners at the Wyoming Police Department, Barry County Sheriff’s Office, Kent County Sheriff’s Office, and at the FBI are committed to holding robbers accountable.”
This case was prosecuted by Assistant U.S. Attorney Erin Lane, and investigated by the Wyoming Police Department, Barry County Sheriff’s Office, Kent County Sheriff’s Office, and at the FBI.
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Waterloo Felon Sentenced to Federal Prison for Possessing a Loaded GunRead the Press Release
A Waterloo man who unlawfully possessed a loaded gun as a felon and an unlawful drug user was sentenced October 6, 2020, to 15 months in federal prison.
Garrett Tomlinson, age 20, from Waterloo, Iowa, received the prison term after a June 26, 2020 guilty plea to possession of a firearm by a prohibited person. Information disclosed at sentencing showed that, when officers arrived to the scene of a domestic disturbance, Tomlinson tried to run to the upstairs of his residence while carrying a backpack with a loaded gun inside of it. Statements at sentencing also showed that, in addition to possessing the gun unlawfully, Tomlinson also unlawfully sold drugs.
Tomlinson was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Tomlinson was sentenced to 15 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. Tomlinson is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see /media/1122011/dl?inline
The case was prosecuted by Assistant United States Attorney Jake Schunk and investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Waterloo Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-2010.
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U.S. Department of Justice Awards Grant to Vera House in SyracuseRead the Press Release
SYRACUSE, NEW YORK – A $500,000.00 U.S. Department of Justice grant has been awarded to Vera House, Inc., a not-for-profit agency working to end domestic and sexual violence and elder abuse in Central New York, announced Acting United States Attorney Antoinette T. Bacon. Under the grant, Vera House will establish its Expanding CORE (Community-Based Options to Respond to Elder Abuse) Program in three apartment buildings in Syracuse. According to Vera House, communities served by the Expanding CORE Program are low-income, racially and ethnically diverse, and represent a significant population of English as a Second Language speakers.
“We are pleased that this Department of Justice grant will support Vera House’s Elder Abuse programs in Central New York particularly because the isolation required by COVID-19 has left many older Americans more vulnerable to abuse, neglect, and exploitation. Our commitment to fighting elder abuse and supporting victims will never waver,” said Acting U.S. Attorney Antoinette Bacon.
Vera House Abuse in Later Life Project Coordinator Jenny Ackley said, “Our project planning team has been evaluating the use of restorative practices for cases of elder abuse for several years, and I’m thrilled that we were awarded this innovative grant to help reach additional older adults in our community. By embedding service staff within the residences of older adults, we hope to build rapport and establish trusted relationships with them and reach those who may be reluctant to use, or unable to access existing services. We are hopeful these services will restore safety and security to older victims of abuse.”
“Community partners like Vera House are vital to our work combatting elder abuse and exploitation, and we look forward to collaborating with them to provide support to victims and witnesses,” said Assistant U.S. Attorneys Shira Hoffman and Christopher Moran, who prosecute elder abuse cases for the United States Attorney’s Office.
The U.S. Department of Justice’s Office of Justice Programs awarded grants totaling $9.4 million to combat elder abuse and financial fraud targeted at seniors across the United States. Elder abuse is an intentional or negligent act by any person that causes harm or a serious risk of harm to an older adult. Attorney General William P. Barr announced the awards on October 1st the 30th anniversary of the International Day of Older Persons.
Approximately $7.9 million of the funds were awarded to jurisdiction and service providers in the United States under two of Office for Victims of Crime grant programs. OJP’s National Institute of Justice awarded the remaining $1.4 million for related research projects.
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.
U.S. Attorney Weisman Announces $6M to Assist Victims in Rhode IslandRead the Press Release
PROVIDENCE – U.S. Attorney Aaron L. Weisman today announced $5,996,014 in Department of Justice grants to assist victims in Rhode Island. The grants, awarded by the Department’s Office of Justice Programs, are part of almost 1.8 billion distributed to state victim assistance and compensation programs to fund thousands of local victim assistance programs across the country and to provide millions in compensation to victims of crime.
The Office for Victims of Crime, a component of the Department’s Office of Justice Programs, flagship formula grant program is supported by the Crime Victims Fund (the Fund), which was established under The Victims of Crime Act. The Fund supports a broad array of programs and services that focus on helping victims in the immediate aftermath of crime and continuing to support them as they rebuild their lives. In FY 2019 alone, VOCA grants served over seven million victims and paid more than $399 million in compensation claims.
“Advocates, service providers, and law enforcement agencies from around the country stand ready to help crime victims exercise their legal rights and reclaim their lives,” said Attorney General William P. Barr. “These new funding resources continue this administration’s unprecedented commitment to providing the support necessary for victims of crimes to be able to heal and recover.”
The awards made to organizations in the Rhode Island will support local direct victim service programs, including children’s advocacy centers, domestic violence shelters, rape crisis centers, human trafficking and elder abuse programs, civil legal services, crime victims’ rights enforcement, as well as victim assistance positions in prosecutors’ offices and law enforcement departments.
“Agencies across Rhode Island work tirelessly 365 days a year to assist and provide services to crime victims in so many ways,” noted United States Attorney Aaron L. Weisman. “The financial support provided by the Department of Justice is paramount to ensuring that these agencies have the financial resources they need to provide support to hundreds, if not thousands of Rhode Islanders each year.”
State victim compensation programs will receive over $133 million to supplement the state funds that offset victims’ financial burdens resulting from crime. This compensation is often extremely vital to victims who face enormous financial setbacks from medical fees, lost income, dependent care, funeral expenses and other costs.
“The services made available by this funding represent a lifeline for tens of thousands of survivors each month, many of whom otherwise would have no place to turn in a moment of profound crisis,” said Katharine T. Sullivan, Principal Deputy Assistant Attorney General of the Office of Justice Programs. “These awards will help service providers, as well as law enforcement agencies and prosecutors’ offices respond to the many emotional and material challenges that crime victims in our country face every day.”
The Fund is financed by fines and penalties paid by convicted federal offenders and does not include tax dollars. More information about OJP and its components can be found at www.ojp.gov.
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U.S. Attorney Robert J. Higdon, Jr Announces $3,471,000 to Assist Victims in North CarolinaRead the Press Release
RALEIGH, N.C. – U.S. Attorney Robert J. Higdon, Jr. today announced $3,471,000 in Department of Justice grants to assist victims in North Carolina. The grants, awarded by the Department’s Office of Justice Programs, are part of almost 1.8 billion distributed to state victim assistance and compensation programs to fund thousands of local victim assistance programs across the country and to provide millions in compensation to victims of crime.
The Office for Victims of Crime, a component of the Department’s Office of Justice Programs, flagship formula grant program is supported by the Crime Victims Fund (the Fund), which was established under The Victims of Crime Act. The Fund supports a broad array of programs and services that focus on helping victims in the immediate aftermath of crime and continuing to support them as they rebuild their lives. In FY 2019 alone, VOCA grants served over seven million victims and paid more than $399 million in compensation claims.
“Advocates, service providers, and law enforcement agencies from around the country stand ready to help crime victims exercise their legal rights and reclaim their lives,” said Attorney General William P. Barr. “These new funding resources continue this administration’s unprecedented commitment to providing the support necessary for victims of crimes to be able to heal and recover.”
The awards made to organizations in the North Carolina will support local direct victim service programs, including children’s advocacy centers, domestic violence shelters, rape crisis centers, human trafficking and elder abuse programs, civil legal services, crime victims’ rights enforcement, as well as victim assistance positions in prosecutors’ offices and law enforcement departments.
“Supporting and helping the victims of crime in North Carolina is our moral and legal obligation,” commented U.S. Attorney Higdon. “The Department of Justice is committed to assisting these who have been victimized among us. The grants will bring much needed resources to assist in this important mission as we work to help the victims of crime rebuild their lives and move beyond the effects of those crimes.”
State victim compensation programs will receive over $133 million to supplement the state funds that offset victims’ financial burdens resulting from crime. This compensation is often extremely vital to victims who face enormous financial setbacks from medical fees, lost income, dependent care, funeral expenses and other costs.
“The services made available by this funding represent a lifeline for tens of thousands of survivors each month, many of whom otherwise would have no place to turn in a moment of profound crisis,” said Katharine T. Sullivan, Principal Deputy Assistant Attorney General of the Office of Justice Programs. “These awards will help service providers, as well as law enforcement agencies and prosecutors’ offices respond to the many emotional and material challenges that crime victims in our country face every day.”
The Fund is financed by fines and penalties paid by convicted federal offenders and does not include tax dollars. More information about OJP and its components can be found at www.ojp.gov.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
U.S. Attorney Matt Martin Announces $5,169,303 to Improve Services for Crime VictimsRead the Press Release
GREENSBORO, NC. -- U.S. Attorney Matthew G.T. Martin today announced $5,169,303 in Department of Justice grants to improve services for crime victims in the Middle District of North Carolina. The grants, awarded by the Department’s Office of Justice Programs, are part of over $144 million distributed to enhance the district's response to victims of crime throughout the United States.
“The Department of Justice is steadfast in its commitment to protecting public safety and bringing justice to those who have been victimized,” said Attorney General William P. Barr. “The investments we are making today will support service providers as they work to secure the legal rights of victims and put survivors of criminal acts on the road to recovery.”
The awards made to organizations in the Middle District of North Carolina will advance the use of technology, improve community preparedness and law enforcement training and provide emergency and transitional shelter to assist victims of crime. Programs will also support victims of child abuse and fund research projects related to perpetrators and victims of elder abuse. Approximately $64.3 million was awarded under Office for Victims of Crime grant programs; over $54.1 million was awarded under Office of Juvenile Justice and Delinquency Prevention programs; over $19.9 million was awarded under Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking grant programs; and nearly $5.7 million was awarded under two National Institute of Justice grant programs.
“Protecting victims is at the core of our mission. It is why many of us enter law enforcement,” said U.S. Attorney Martin. “These grants will fund programming to assist victims in the Middle District, and research that will positively impact victim services on a national scale.”
“As lockdowns and lawlessness fuel crime in America’s homes and communities, more people are vulnerable to victimization and those who have been victimized face new hurdles,” said OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan. “The Office of Justice Programs is committed to giving our victim service partners the tools they need to better serve their clients and protect victims’ rights.”
The following organizations in the Middle District received funding:
• Research Triangle Institute -- $1,499,583 (Advancing the Use of Technology to Assist Victims of Crime program)
• Research Triangle Institute -- $1,199,707 (Addressing Female Genital Mutilation and Cutting program)
• City of Salisbury -- $270,000 (Law Enforcement-Based Victim Specialist program)
• Kellin Foundation -- $699,994 (Enhancing Community Responses to America's Drug Crisis: Serving Our Youngest Crime Victim’s program)
• Research Triangle Institute -- $804,300 (Research and Evaluation of Victims of Crime program)
• Research Triangle Institute -- $695,719 (Research and Evaluation of Victims of Crime program)
More information about OJP and its components can be found at www.ojp.gov.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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U.S. Attorney Maria Chapa Lopez Announces over $1 Million to Improve Services for Crime Victims in Middle District of FloridaRead the Press Release
Tampa, FL – U.S. Attorney Maria Chapa Lopez today announced $1,095,330 in Department of Justice grants to improve services for crime victims in the Middle District of Florida. The grants, awarded by the Department’s Office of Justice Programs, are part of over $144 million distributed to enhance the district's response to victims of crime throughout the United States.
“The Department of Justice is steadfast in its commitment to protecting public safety and bringing justice to those who have been victimized,” said Attorney General William P. Barr. “The investments we are making today will support service providers as they work to secure the legal rights of victims and put survivors of criminal acts on the road to recovery.”
“Prosecuting crimes is but one aspect of delivering justice,” said U.S. Attorney Maria Chapa Lopez. “Whenever and wherever possible, we must assist victims in the recovery and restoration process of their lives. The grant awards made today will assist our communities in rendering justice complete.”
The awards made to organizations in the Middle District of Florida will advance the use of technology, improve community preparedness and law enforcement training and provide emergency and transitional shelter to assist victims of crime. Programs will also support victims of child abuse and fund research projects related to perpetrators and victims of elder abuse. Approximately $64.3 million was awarded under Office for Victims of Crime grant programs; over $54.1 million was awarded under Office of Juvenile Justice and Delinquency Prevention programs; over $19.9 million was awarded under Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking grant programs; and nearly $5.7 million was awarded under two National Institute of Justice grant programs.
“As lockdowns and lawlessness fuel crime in America’s homes and communities, more people are vulnerable to victimization and those who have been victimized face new hurdles,” said OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan. “The Office of Justice Programs is committed to giving our victim service partners the tools they need to better serve their clients and protect victims’ rights.”
The following organizations received funding:
- City of St. Petersburg ($390,832)
- Hillsborough County ($704,498)
More information about OJP and its components can be found at www.ojp.gov.
U.S. Attorney Duncan Announces Grant Funds to Improve Services for Crime Victims in Eastern District of KentuckyRead the Press Release
LEXINGTON, Ky. – U.S. Attorney Robert M. Duncan, Jr., announced on Tuesday $1,892,160 in Department of Justice grants to improve services for crime victims in the Eastern District of Kentucky. The grants, awarded by the Department’s Office of Justice Programs, are part of over $144 million distributed to enhance the response to victims of crime throughout the United States.
“The Department of Justice is steadfast in its commitment to protecting public safety and bringing justice to those who have been victimized,” said Attorney General William P. Barr. “The investments we are making today will support service providers as they work to secure the legal rights of victims and put survivors of criminal acts on the road to recovery.”
The awards made to organizations in the Eastern District of Kentucky will advance the use of technology, improve community preparedness and law enforcement training and provide emergency and transitional shelter to assist victims of crime. Programs will also support victims of child abuse and fund research projects related to perpetrators and victims of elder abuse. Approximately $64.3 million was awarded under Office for Victims of Crime grant programs; over $54.1 million was awarded under Office of Juvenile Justice and Delinquency Prevention programs; over $19.9 million was awarded under Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking grant programs; and nearly $5.7 million was awarded under two National Institute of Justice grant programs.
“Protecting the public and pursuing justice on behalf of crime victims are core priorities for our Office and for the Department of Justice,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “The grant funds awarded by DOJ’s Office of Justice Programs will be used to help crime victims in the Eastern District of Kentucky.”
“As lockdowns and lawlessness fuel crime in America’s homes and communities, more people are vulnerable to victimization and those who have been victimized face new hurdles,” said OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan. “The Office of Justice Programs is committed to giving our victim service partners the tools they need to better serve their clients and protect victims’ rights.”
The following organizations received funding:
- Kentucky Justice and Public Safety Cabinet- $400,000
- Mountain Comprehensive Care Center - $700,000
- Volunteers of America Mid-States- $700,000
More information about OJP and its components can be found at www.ojp.gov.
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U.S. Attorney DeVillers appoints district election officersRead the Press Release
COLUMBUS, Ohio – United States Attorney David M. DeVillers announced today that he has designated Election Officers in each of the district’s three offices to serve as points of contact for the upcoming general elections.
DeVillers appointed:
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- Assistant United States Attorney Jessica W. Knight district wide,
- Assistant United States Attorney Peter K. Glenn-Applegate in Columbus,
- Deputy Criminal Chief Emily N. Glatfelter in Cincinnati, and
- Deputy Criminal Chief Dominick S. Gerace in Dayton.
As District Election Officers, they are responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with the Justice Department in Washington.
“The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur,” said U.S. Attorney DeVillers. “We seek to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open.”
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them.
DeVillers added, “Voting is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice.”
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by phone at 800-253-3931 or by complaint form at https://civilrights.justice.gov/ .
Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities. State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.
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U.S. Attorney Announces More than $1.5 Million in Grants to Assist Victims in Southern District of CaliforniaRead the Press Release
Assistant U. S. Attorney Cindy Cipriani (619) 546-9608
NEWS RELEASE SUMMARY – October 6, 2020
SAN DIEGO – U.S. Attorney Robert Brewer today announced $1,549,980 in Department of Justice grants to assist victims in the Southern District of California. The grants, awarded by the Department’s Office of Justice Programs, are part of almost $1.8 billion distributed to state victim assistance and compensation programs to fund thousands of local victim assistance programs across the country and to provide millions in compensation to victims of crime.
The Office for Victims of Crime, a component of the Department’s Office of Justice Programs, flagship formula grant program is supported by the Crime Victims Fund (the Fund), which was established under The Victims of Crime Act. The Fund supports a broad array of programs and services that focus on helping victims in the immediate aftermath of crime and continuing to support them as they rebuild their lives. In FY 2019 alone, VOCA grants served over seven million victims and paid more than $399 million in compensation claims.
“Advocates, service providers, and law enforcement agencies from around the country stand ready to help crime victims exercise their legal rights and reclaim their lives,” said Attorney General William P. Barr. “These new funding resources continue this administration’s unprecedented commitment to providing the support necessary for victims of crimes to be able to heal and recover.”
The awards made to organizations in the Southern District of California and around the country will support local direct victim service programs, including children’s advocacy centers, domestic violence shelters, rape crisis centers, human trafficking and elder abuse programs, civil legal services, crime victims’ rights enforcement, as well as victim assistance positions in prosecutors’ offices and law enforcement departments.
“Helping crime victims achieve justice and obtain support is our top concern, and these grants are an important part of that equation,” said U.S. Attorney Robert Brewer. “This money has the potential to change many lives for the better.”
In the Southern District of California, which includes San Diego and Imperial counties, grants were awarded to Rady Children’s Hospital San Diego, $1,250,000; and to Nile Sisters Development Initiative, which serves refugee and immigrant communities, $299,980.
State victim compensation programs will receive over $133 million to supplement the state funds that offset victims’ financial burdens resulting from crime. This compensation is often extremely vital to victims who face enormous financial setbacks from medical fees, lost income, dependent care, funeral expenses and other costs.
“The services made available by this funding represent a lifeline for tens of thousands of survivors each month, many of whom otherwise would have no place to turn in a moment of profound crisis,” said Katharine T. Sullivan, Principal Deputy Assistant Attorney General of the Office of Justice Programs. “These awards will help service providers, as well as law enforcement agencies and prosecutors’ offices respond to the many emotional and material challenges that crime victims in our country face every day.”
The Fund is financed by fines and penalties paid by convicted federal offenders and does not include tax dollars. More information about OJP and its components can be found at www.ojp.gov.
U.S Attorney's Office, FBI Establish Election Fraud and Voting Rights Abuse HotlinesRead the Press Release
PROVIDENCE - United States Attorney Aaron L. Weisman announced today that Assistant United States Attorney (AUSA) Terrence P. Donnelly will lead the efforts of the United States Attorney’s Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 3, 2020, general election. AUSA Donnelly has been appointed to serve as the District Election Officer (DEO) for the District of Rhode Island, and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
The Department of Justice has an important role in deterring election fraud and discrimination at the polls and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on Election Day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or illiteracy).
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 3, 2020, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Weisman stated that AUSA/DEO Donnelly will be on duty in this District while the polls are open. AUSA Donnelly can be reached by the public at (401) 709-5068.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on Election Day. The local FBI field office can be reached by the public at (401) 272-8310.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php
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Two Men Sentenced for Meth Trafficking ConspiracyRead the Press Release
United States Attorney Ron Parsons announced that an Eagan, Minnesota, man and a Sioux Falls, South Dakota, man, both convicted of Conspiracy to Distribute a Controlled Substance, have been sentenced to federal prison terms by U.S. District Judge Karen E. Schreier.
Jason Allen Herr, age 42, from Sioux Falls, was sentenced to 262 months in federal prison, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
William John Hall, Jr., age 39, from Eagan, was sentenced to 97 months in federal prison, followed by 4 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Hall and Herr were indicted by a federal grand jury on August 6, 2019. Herr pleaded guilty on October 31, 2019, and Hall pleaded guilty on July 13, 2020. Herr was sentenced on January 13, 2020, and Hall was sentenced on October 5, 2020.
The convictions stemmed from incidents beginning on an unknown date and continuing until about July 31, 2019, when both Hall and Herr knowingly and intentionally conspired with each other and others and obtained 500 grams or more of methamphetamine and resold it to others in the District of South Dakota. Methamphetamine is a Scheduled II controlled substance.
This case was investigated by the Drug Enforcement Administration, the Sioux Falls Drug Task Force, and the Nobles County Sheriff’s Office. Assistant U.S. Attorney Jennifer D. Mammenga prosecuted the case.
Herr was immediately turned over to the custody of the U.S. Marshals Service following his sentencing. Hall is to self-surrender on or before October 19, 2020.
Two Members of “Original Block Hustlaz” Gang in North Philadelphia Sentenced for Drug Trafficking OffensesRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Richard Chase Hoover, 34, of Las Vegas, NV and Amir Boyer, 29, of Philadelphia, PA were sentenced by United States District Judge Michael M. Baylson to 15 years and 10 years in prison, respectively, to be followed by five years of supervised release, for their participation in a long-term drug trafficking conspiracy in Philadelphia from at least March 2017 through June 2018.
In November 2019, both defendants pleaded guilty to multiple counts in a Second Superseding Indictment, which charged nine defendants with various drug trafficking crimes. These nine defendants are members of a violent drug trafficking organization (also purporting to be rap artists) known as the Original Block Hustlaz or “OBH”. The 16-count Second Superseding Indictment alleged that the defendants conspired to distribute and did distribute cocaine, crack, methamphetamine, and heroin from various locations that they controlled, particularly in and around North Philadelphia.
In September 2017, officers and detectives from the Philadelphia Police Department executed a search warrant at 3234 North Sydenham Street, which was a property used by members of OBH to store and sell drugs. During the execution of the search warrant, numerous drugs were seized, including approximately 62 grams of cocaine base (“crack”), 229 grams of heroin, and 48 grams of a methamphetamine mixture. The officers also seized $8,101 from the residence.
In May 2018, FBI agents observed Hoover enter an apartment on Columbus Boulevard in Philadelphia, soon after he returned from a trip to Los Angeles. Pursuant to a federal search warrant, the FBI followed Hoover into the apartment and found 10 kilograms of cocaine, nearly 6 pounds of pure methamphetamine, and $20,000 in cash. Then, in October 2018, Amir Boyer was arrested at the property on North Sydenham Street, where he had been living with his girlfriend and two children. During the execution of the arrest, officers seized approximately 20 pounds of marijuana and a firearm loaded with eight live rounds.
“Hoover and Boyer were members of a crew that trafficked in poison that it transported across the country and pushed here on our streets in Philadelphia,” said U.S. Attorney McSwain. “They also used violence to maintain their hold on their drug territory, in order to keep the cash rolling in, while pretending to do legitimate business as musicians as part of their cover. Now OBH has been decimated, hopefully never to return.”
“The O.B.H. gang steadily poisoned the parts of Philadelphia they controlled, dealing drugs and dishing out violence,” said Michael J. Driscoll, Special Agent in Charge of the FBI's Philadelphia Division. “The money they made from dealing cocaine, crack, meth, and heroin fueled this violence. The FBI will continue putting drug traffickers firmly out of business and behind bars, as we fight violent crime and work to make this city safer.”
“Hoover and Boyer headed a poly-drug distribution organization that distributed significant amounts of illicit drugs such as cocaine, crack, methamphetamine, heroin, and marijuana,” said Jonathan A. Wilson, Special Agent in Charge of the Drug Enforcement Administration's (DEA) Philadelphia Field Division. “Their drug-trafficking activities negatively impacted countless lives in and around North Philadelphia.”
This case is part of the FBI’s Violent Gang Safe Streets Task Force, a program through which federal, state, and local law enforcement agencies collaboratively address the violent crime plaguing communities. It was investigated by the Federal Bureau of Investigation, the Drug Enforcement Administration, and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorneys Everett Witherell and Timothy M. Stengel.
Two Former New Jersey Public Education Employees Sentenced in Connection with Health Care Fraud Conspiracy Targeting State Health Benefits ProgramsRead the Press Release
CAMDEN, N.J. – Two former New Jersey state public education system employees were sentenced today to prison terms for defrauding New Jersey state health benefits programs by submitting fraudulent claims for medically unnecessary compounded prescriptions, U.S. Attorney Craig Carpenito announced.
Richard McAllister, 45, a former schoolteacher, and James Wildman, 46, a former maintenance worker for the public school system, both of Marmora, New Jersey, were sentenced to 37 months and 46 months in prison, respectively. Both McAllister and Wildman previously pleaded guilty before U.S. District Judge Robert B. Kugler to separate criminal informations charging them with conspiring to commit health care fraud. Judge Kugler imposed the sentences today in Camden federal court.
According to documents filed in this case and statements made in court:
Compounded medications are specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Although compounded drugs are not approved by the Food and Drug Administration (FDA), they are properly prescribed when a physician determines that an FDA-approved medication does not meet the health needs of a particular patient, such as if a patient is allergic to a dye or other ingredient.
In 2015 and 2016, McAllister and Wildman served as recruiters in the conspiracy and persuaded individuals in New Jersey to obtain very expensive and medically unnecessary compounded medications from a Louisiana pharmacy, Central Rexall Drugs Inc. (Central Rexall). The chief executive officer of Central Rexall, Hayley Taff, pleaded guilty on Aug. 12, 2020, to health care fraud conspiracy, and Central Rexall executives Christopher Kyle Johnston, Trent Brockmeier, and Christopher Casseri were indicted on Sept. 16, 2020 for conspiracy to commit health care and wire fraud, conspiracy to commit identity theft, and money laundering charges.
The members of the conspiracy, including McAllister and Wildman, learned that certain compound medication prescriptions – including pain, scar, antifungal, and libido creams, as well as vitamin combinations – were reimbursed for up to thousands of dollars for a one-month supply. The conspirators also learned that some New Jersey state and local government and education employees, including teachers, firefighters, and state troopers, had insurance coverage for these particular compound medications. An entity referred to in the information as the “Pharmacy Benefits Administrator” provided pharmacy benefit management services for the State Health Benefits Program, which covers qualified state and local government employees, retirees, and eligible dependents, and the School Employees’ Health Benefits Program, which covers qualified local education employees, retirees, and eligible dependents.
McAllister, Wildman, and their conspirators recruited public employees and other individuals covered by the Pharmacy Benefits Administrator to fraudulently obtain compounded medications from Central Rexall without regard as to their medical necessity. Given that McAllister and Wildman were employees of the State’s public education system, they had access to and recruited others in the public education system to participate in the scheme. The prescriptions were faxed to Central Rexall, which filled the prescriptions and billed the Pharmacy Benefits Administrator. In return for the obtaining the prescriptions, the pharmacy paid certain conspirators a percentage of each prescription filled and paid by the Pharmacy Benefits Administrator, which was then distributed to McAllister, Wildman, and other members of the conspiracy.
The conspiracy resulted in over $50 million in fraudulent insurance claims for compounded medications that were not medically necessary, including over $3.4 million for prescriptions submitted by McAllister and his cohorts and over $4.8 million for prescriptions submitted by Wildman and his cohorts. McAllister received over $450,000 and Wildman received over $650,000 in illicit profits from the scheme.
In addition to the prison terms, Judge Kugler sentenced McAllister to three years of supervised release and ordered him to pay $3.4 million in restitution and to forfeit $456,806. Judge Kugler also sentenced Wildman to three years of supervised release and ordered him to pay $4.86 million in restitution and to forfeit $657,040.
U.S. Attorney Carpenito credited agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; IRS – Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez in Newark, and the U.S. Department of Labor, Office of Inspector General, New York Region, under the direction of Special Agent in Charge Michael C. Mikulka. He also thanked the Division of Pensions and Financial Transactions in the State Attorney General’s Office, under the direction of Attorney General Gurbir S. Grewal and Division Chief Aimee Nason, for its assistance in the investigation.
The government is represented by Assistant U.S. Attorneys R. David Walk Jr. and Christina O. Hud of the U.S. Attorney’s Office in Camden.
Three Operation Wu Block Methamphetamine Dealers SentencedRead the Press Release
ATHENS, Ga – Three defendants guilty of distributing methamphetamine in the northeast Georgia region, arrested during the on-going large-scale “Operation Wu Block” investigation, were sentenced to federal prison today, said Charlie Peeler, the U.S. Attorney for the Middle District of Georgia.
U.S. District Judge C. Ashley Royal sentenced three Operation Wu Block defendants this morning, all guilty of one count possession with intent to distribute methamphetamine: April Wolford, 29, of Athens-Clarke County was sentenced to serve 84 months in prison followed by three years of supervised release; Daniel Keith McCullough, 27, of Hart County, Georgia, was sentenced to serve 57 months in prison followed by three years of supervised release; and, Austin Nathaniel Pineda, 23, of Stone Mountain, Georgia, was sentenced to 30 months in prison followed by four years of supervised release. There is no parole in the federal system.
“A strong northeast Georgia law enforcement network is unified in our goal to rid our streets of methamphetamine, and remove criminals caught pushing this deadly, highly addictive illegal drug from our communities,” said U.S. Attorney Charlie Peeler. “The work to eliminate methamphetamine distribution across the Middle District of Georgia is on-going and non-stop. I want to thank all of our law enforcement partners for the tremendous bravery they demonstrate daily in their work to rid our communities of methamphetamine.”
“These defendant’s methamphetamine trafficking activities posed a significant threat to the quality of life in northeast Georgia,” said the Special Agent in Charge of the DEA Atlanta Field Division Robert J. Murphy. “All participating agencies played a crucial role in the eradication of this criminal network and the dismantling of this once-thriving organization makes our community safer.”
Operation Wu Block is a multi-year Organized Crime Drug Enforcement Task Force (OCDETF) investigation conducted by the Drug Enforcement Administration (DEA) Macon Resident Office, FBI Middle Georgia Safe Streets Gang Task Force, Athens-Clarke County Police Department, Clarke County Sheriff’s Office, Hart County Sheriff’s Office, Madison County Sheriff’s Office, Oconee County Sheriff’s Office, Oglethorpe County Sheriff’s Office, Georgia Department of Corrections and Northeast Regional Drug Task Force in partnership with the U.S. Attorney’s Office for the Middle District of Georgia. Operation Wu Block has resulted in the seizure of more than 58 kilograms of methamphetamine, more than two kilograms of heroin, 31 firearms and $56,000. To date, federal grand juries in the Middle District of Georgia have returned indictments charging a total of 82 defendants, up from the original 68 reported at the announcement of this ongoing operation in May. Operation Wu Block is part of the larger “Operation Crystal Shield,” a national DEA operation first announced in February during a press conference in Atlanta. The investigation is focused on eight main methamphetamine trafficking transportation hubs across the nation, including Atlanta. Both are on-going operations.
Assistant U.S. Attorney Tamara Jarrett is prosecuting cases arising from this investigation for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Three 110 Gang Members Sentenced to Federal PrisonRead the Press Release
SYRACUSE, NEW YORK – Daquan Dowdell, age 29, Terry Linen, age 28, and Deshawnte Waller, age 43, all of Syracuse, were sentenced to serve, collectively, decades in federal prison for violating the Racketeering Influenced Corrupt Organizations Act (RICO), announced Acting United States Attorney Antoinette T. Bacon, Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), and Syracuse Police Chief Kenton Buckner.
Daquan Dowdell was sentenced on Friday, October 2, 2020, to serve 120 months in federal prison to be followed by three years supervised release. In imposing sentence, Senior United State District Judge Frederick J. Scullin, Jr., found that Dowdell was personally involved in drug trafficking and gun possession, and at least one shooting, on behalf of the gang.
Terry Linen was sentenced yesterday to serve 110 months in federal prison to be followed by three years supervised release. The Court found that Linen was involved in drug trafficking and gun possession and that he was responsible for another shooting in connection with the gang.
Deshawnte Waller was sentenced yesterday to serve 80 months in federal prison, to be followed by three years supervised release. The Court found that Waller was involved in drug trafficking and the use of fraudulent credit cards on behalf of the gang.
Previously sentenced 110 Gang RICO defendants:
- Anthony Hopper was sentenced to 385 months in prison; 3-year term of supervised release
- Damani Prince was sentenced to 78 months in prison; 3-year term of supervised release
- Rashawn Wynn was sentenced to 92 months in prison; 3-year term of supervised release
- Davon Sullivan was sentenced to 68 months in prison; 3-year term of supervised release
- Qualik Vaughn was sentenced to 68 months in prison; 3-year term of supervised release
- Jason Lebron was sentenced to 92 months in prison, 3-year term of supervised release
- Javon Peterson was sentenced to 98 months in prison, 3-year term of supervised release.
This case was investigated by the Federal Bureau of Investigation (FBI), the Syracuse Police Department, and the Gang Violence Task Force, which consists of members of the Syracuse Police, the FBI, the U.S. Drug Enforcement Administration (DEA), the U.S. Marshals Service, the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the New York State Police, the New York State Department of Corrections, the New York State Attorney General, and the Onondaga County District Attorney’s Office. This case was prosecuted by Assistant U.S. Attorneys Nicolas Commandeur and Kristen Grabowski
This case was brought as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Sun Prairie Felon Sentenced to Prison for Possessing FirearmRead the Press Release
MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Rojae A. Crosse, 23, Sun Prairie, Wisconsin, was sentenced today by Chief U.S. District Judge James D. Peterson to 5 months in prison for possessing a firearm as a felon. When imposing the sentence, Judge Peterson considered that Crosse has been in custody for the past 10 months on state charges and unable to bond out because of the pending federal charges. Crosse pleaded guilty to this federal offense on July 17, 2020.
On April 29, 2019, law enforcement officers were trying to locate a vehicle that they believed was involved in an armed robbery. They saw the vehicle at a Mobil gas station in Sun Prairie and one squad car pulled in front of it as another squad car pulled in behind it. Crosse got out of the vehicle and as the officers parked, he started running, and officers chased him. During the chase, officers saw Crosse take off a leather jacket and drop it on the ground. Officers found a firearm in the inside pocket of the jacket. Crosse was previously convicted of a felony and as a result, it was illegal for him to have a gun.
The charge against Crosse was the result of an investigation conducted by the Madison Police Department, Sun Prairie Police Department, and Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution of the case has been handled by Assistant U.S. Attorneys Elizabeth Altman and Timothy M. O’Shea.
Suffolk County Attorney Pleads Guilty to Conspiracy to Commit Mail and Wire FraudRead the Press Release
Earlier today, in federal court in Central Islip, New York, Vincent J. Trimarco, Jr., an attorney licensed to practice in the state of New York since 1997, pleaded guilty to conspiracy to commit mail and wire fraud in connection with a scheme to defraud the beneficiary of an estate from her inheritance from a wrongful death suit. Today’s plea took place before United States District Judge Joan M. Azrack. When sentenced, Trimarco faces up to 20 years in prison, as well as forfeiture, restitution and a fine of up to $250,000 or twice the gross gain or loss as a result of his crime, whichever is greater. As a part of his plea agreement with the government, Trimarco agreed to pay more than $1 million in restitution.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, announced the guilty plea.
“Trimarco defrauded a young girl of her inheritance violating the law as well as the trust placed in him as an attorney,” stated Acting United States Attorney Seth DuCharme. “Protecting the public from those who, for personal gain, abuse that trust and betray the oath they have sworn to uphold is a priority of this Office.” Mr. DuCharme thanked the Federal Bureau of Investigation, New York Field Office, for its investigative work on the case.
As set forth in court filings and today’s proceeding, from April 2012 through August 2017, Trimarco and a co-conspirator executed a scheme to defraud a minor, who was the co-conspirator’s grandchild, of settlement proceeds stemming from a wrongful death action. Using the settlement proceeds, Trimarco and the co-conspirator purchased luxury vehicles, including a Ferrari F430 Spider for $200,000 and a Jaguar XKR convertible for $57,000, as well as numerous properties in Suffolk County for over $600,000, and invested approximately $800,000 in the Emporium, a nightclub and music venue in Patchogue, New York, in which Trimarco was, at times, a part owner. Despite orders from the Suffolk County Surrogate’s Court in April 2012, June 2012 and August 2012 restraining the disbursement of the settlement proceeds and ultimately directing the return of the settlement proceeds, Trimarco and his co-conspirator sold the assets obtained with the settlement funds but failed to return the proceeds to the rightful heir.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Catherine M. Mirabile and Michael J. Bushwack are in charge of the prosecution, with the assistance of Assistant United States Attorney Madeline O’Connor of the Office’s Civil Division, which is responsible for the forfeiture of assets.
The Defendant:
VINCENT J. TRIMARCO, JR.
Age: 51
Smithtown, NYE.D.N.Y. Docket No. 17-CR-583 (S-1) (JMA)
Six Individuals Indicted in Conspiracy to Use Stolen Identities to Fraudulently Purchase VehiclesRead the Press Release
BOSTON – Six individuals were indicted today by a federal grand jury in Boston in connection with a scheme to use the stolen identities of United States citizens from Puerto Rico to fraudulently purchase vehicles and other merchandise and apply for and utilize bank accounts and credit cards. Two other defendants were indicted for related conduct last week.
The defendants were charged in a 42-count indictment with conspiracy to commit wire fraud, wire fraud, aggravated identity theft and false representation of a Social Security number. The defendants were previously charged by complaint.
According to charging documents, between October 2017 and January 2019, the defendants visited Massachusetts car dealerships to purchase late-model vehicles and applied for 100% financing. In support of their applications, the defendants provided stolen biographical information of real United States citizens, fraudulent Puerto Rico driver’s licenses and Social Security cards in those identities, as proof of identification. The group allegedly used the stolen identities to illegally open bank accounts and credit cards and purchase vehicles, many of which were exported out of the United States.
The following individuals were indicted today:
- Ricardo Acevedo, 32, of Manchester, N.H., allegedly used stolen identities to obtain car loans and purchase three cars worth $90,582, collectively;
- Joshua Cruz, 32, of Manchester, N.H., allegedly used stolen identities to obtain car loans and purchase vehicles worth more than $170,288, collectively;
- Jose Irizarry, 44, of Union City, N.J., allegedly used stolen identities to obtain car loans and purchase three cars worth $140,124, collectively;
- Arialka Moya, 31, of Lowell, Mass., allegedly used a stolen identity to obtain a car loan to purchase one car worth $60,982;
- Alvin Rivera, 37, of Haverhill, Mass., allegedly supplied co-defendants with stolen personal identifying information of United States citizens, providing detailed instructions as to how to perpetrate the scheme to defraud and coordinating payments to co-conspirators; and
- Wanda Sanchez, 36, of Lawrence, Mass., allegedly used a stolen identity to obtain a car loan to purchase one car worth $50,962.
Two additional individuals, Neida Lopez, 43, of Methuen, Mass., and Iyaury Rodriguez, 39, of Reading, Penn., were indicted on Sept. 29, 2020. Specifically, in March 2020, Lopez allegedly used the stolen identity of a United States citizen from Puerto Rico to obtain a credit card and accrued $21,931 in charges on that card, including charges at various retailers in Massachusetts. In April 2020, working with co-conspirators, she allegedly used the credit card to purchase a specialty printer ribbon that can be used to print identification cards.
On three dates in June and September of 2018, Rodriguez allegedly used stolen identities to obtain financing and purchase three vehicles worth at least $98,432. He allegedly visited Massachusetts car dealerships to purchase late-model vehicles and applied for 100% financing. As proof of identification, he provided stolen biographical information of real United States citizens, as well as fraudulent Puerto Rico driver’s licenses and Social Security cards in those identities.
In a coordinated multi-jurisdictional effort, individuals allegedly involved in this scheme or related schemes were also charged in the District of New Jersey, the State of New Jersey, the Northern District of Ohio and the Eastern District of Pennsylvania.
The investigation was conducted by Homeland Security’s Investigation’s Document and Benefit Fraud Task Force (DBFTF), a specialized field investigative group comprised of personnel from various local, state, and federal agencies with expertise in detecting, deterring, and disrupting organizations and individuals involved in various types of document, identity, and benefit fraud schemes. The DBFTF has been investigating this scheme since January 2019.
The charges of wire fraud and conspiracy to commit wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss from the offense. The charge of aggravated identity theft carries a mandatory two-year sentence that must run consecutively to any other sentence imposed, up to one year of supervised release and a fine of up to $250,000. The charge of false representation of a Social Security number provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Brockton Police Chief Emanuel Gomes made the announcement today. Assistance was provided by the Lowell, Lawrence, Methuen, Haverhill, Woburn and Dartmouth Police Departments. Assistant U.S. Attorneys Elianna Nuzum and Adam Deitch of Lelling’s Major Crimes Unit are prosecuting the case.
The details contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Sioux Falls Man Sentenced to 25 Years for ProductionRead the Press Release
United States Attorney Ron Parsons announced that a Sioux Falls, South Dakota, man convicted of Production of Child Pornography was sentenced on October 5, 2020, by U.S. District Judge Karen E. Schreier.
David Jon Kindle, age 40, was sentenced to 300 months in federal prison, five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Kindle was indicted by a federal grand jury on October 8, 2019. He pleaded guilty on July 13, 2020.
The conviction stemmed from an incident on or about between November 22, 2018, and November 28, 2018, when Kindle texted a 15-year-old girl. Kindle knew the girl's mother and texted the juvenile over 2,000 times. He eventually coerced the girl into sending him nude photos of herself.
Kindle’s lengthy prior criminal history prompted U.S. Attorney Ron Parsons to comment that: “Thanks to the combined efforts and teamwork of the Sioux Falls Police Department and the Federal Bureau of Investigation, another child predator has been taken off the streets.”
“Adults who use their access to children for their own sexual gratification are both a danger and a disgrace," said Michael Paul, special agent in charge of the FBI's Minneapolis Field Office. "The FBI and our law enforcement partners will never stop working to put predators who harm children behind bars. These are incredibly disturbing cases to investigate, but each time we're able to step in and protect a child victim from further sexual abuse, it's a good day," Paul added.
This case was investigated by the Sioux Falls Police Department and the Federal Bureau of Investigation. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Kindle was immediately turned over to the custody of the U.S. Marshals Service.
Schenectady Man Charged with Possession of a Molotov CocktailRead the Press Release
ALBANY, NEW YORK – Joel Malek, age 42, of Schenectady, New York, was arrested today and charged with possession of an improvised incendiary device, commonly known as a “Molotov cocktail,” on June 5, 2020.
The announcement was made by Acting United States Attorney Antoinette T. Bacon; John B. DeVito, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); and Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
Malek was indicted for possessing a Molotov cocktail as an unregistered destructive device, on June 5. The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
If convicted, Malek faces up to 10 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of up to 3 years. 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.
Malek was arraigned today before United States Magistrate Judge Christian F. Hummel, who ordered Malek detained pending a detention hearing scheduled for Thursday.
This case is being investigated by ATF and the FBI, with assistance from the Schenectady Fire Department and Schenectady Police Department, and is being prosecuted by Assistant U.S. Attorneys Richard Belliss and Alexander P. Wentworth-Ping.
San Diego Finance Manager Sentenced to Prison for Stealing over $725,000 from EmployerRead the Press Release
Special Assistant U.S. Attorney Lisa J. Sanniti (619) 546-8811
NEWS RELEASE SUMMARY – October 6, 2020
SAN DIEGO – Antonia Barber, the former operations manager for Carlsbad-based contractors’ insurance company Target Financial and Insurance Services, was sentenced in federal court yesterday to 21 months in prison for stealing $726,060.75 from the company.
Sentencing documents reflect that Barber held a sensitive position at Target Financial, where she was permitted to approve reimbursement requests from employees, issue reimbursement checks, pay vendors, and report to the owner as to the financial condition of the company. In 2008, Barber began writing hundreds of checks to a family member for bogus “Records Management” services that were never provided. Barber’s conduct escalated to writing herself checks for nonexistent “expense reimbursement,” totaling over $600,000.
Barber went so far as to report to the owner that the company was struggling financially, causing the owner to infuse money into the company to keep people employed and the business afloat. Barber’s scheme went on for seven years until the owner caught on to her theft, and reported it to law enforcement.
“This defendant abused her position of trust to steal hundreds of thousands of dollars,” said U.S. Attorney Robert Brewer. “This sentence is a reminder that there will be a price to pay for employees who use company coffers as a personal bank account.” Brewer praised prosecutor Lisa Sanniti and agents from the U.S. Secret Service for their hard work in this case.
DEFENDANT Case No. 18-CR-4028-W
ANTONIA BARBER Age 52 San Diego, CA
aka “Antonia M. Barber”
aka “Antonia Marie Barber”
aka “Antonia Marie Martinez”
SUMMARY OF CHARGES
Wire Fraud – Title 18, U.S.C., Section 1343
Maximum penalty: Twenty years in custody and a $250,000 fine
AGENCY
United States Secret Service
Rural Decorah Drug User Sentenced to Prison Term for Unlawfully Possessing AmmunitionRead the Press Release
A drug user from rural Decorah, Iowa, who unlawfully possessed ammunition was sentenced in federal court on October 5, 2020.
In a plea agreement and at the sentencing hearing, William Fredric Harrison, Jr., age 60, admitted that, on November 23, 2018, he purchased an assault rifle and 200 rounds of ammunition in Onalaska, Wisconsin. The Federal Bureau of Investigation’s National Instant Criminal Background Check System delayed the sale. Harrison was only able to take the ammunition home to Iowa on that day. On November 24, 2018, Harrison made multiple telephone calls from his rural Decorah residence to the emergency room at a Decorah hospital. In one of the calls, Harrison expressed frustration with one of the doctors at the hospital and stated, “I want to come down there and make all of you feel the terror that I am feeling. All of you will be dead.” The calls triggered a two-day lockdown of the hospital.
On November 26, 2018, Harrison filled out an application in the Iowa District Court for Allamakee County seeking the return of three firearms and ammunition that law enforcement officers had seized from his residence in 2016 arising out of an incident in which Harrison was later convicted of assaulting his wife. On November 29, 2018, law enforcement officers executed a search warrant at Harrison’s home and located the 200 rounds of ammunition that Harrison had purchased in Wisconsin. Officers also found marijuana paraphernalia.
Harrison was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Harrison was sentenced to over ten months of imprisonment. The district court also ordered Harrison pay $10,000 for his court-appointed attorney. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. As a result of this federal conviction, Harrison is prohibited from possessing firearms and ammunition.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see /media/1122011/dl?inline.
The case was prosecuted by Assistant United States Attorney Tim Vavricek and investigated by the Winneshiek County Sheriff’s Office and the Decorah Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-1048.
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Rapper scammers admit faking association with musical group in conspiracy to cheat hotels, bank, limo serviceRead the Press Release
AUGUSTA, GA: Two men have admitted guilt in a scheme in which they fraudulently claimed to be part of a famed musical group to steal from hotels and a limousine company.
Aaron Barnes-Burpo, 29, of Crestview, Fla., and Walker Washington, 52, of Augusta, each pled guilty in U.S. District Court before Judge Dudley H. Bowen to Conspiracy to Commit Wire Fraud, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. The charge carries a penalty of up to 20 years in prison, followed by up to five years of supervised release. There is no parole in the federal system.
“These men play-acted as bigshots so they could rip off hospitality providers for luxury treatment, but their scam fell apart thanks to an alert Augusta hotel clerk,” said U.S. Attorney Christine. “It didn’t take Nick Cannon to figure out the defendants were lip-synching, and they’ll be disappointed to learn that their future accommodations in federal prison won’t be as swanky as those hotels.”
In court documents and testimony, Barnes-Burpo and Washington admitted that they portrayed themselves as affiliated with the Roc Nation production company and the hip-hop group Wu-Tang Clan, and used those fictitious representations along with fraudulent and stolen credit cards to rent luxury limousines and defraud hotels of thousands of dollars in goods and services in cities including Augusta, Atlanta, and Florence, Ala.
The scam unraveled when staff at the Fairfield Inn and Suites in Augusta became suspicious and alerted authorities.
“Facing up to 20 years in federal prison, these two defendants might question whether their short-lived scheme to live like rap stars was worth it,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “As this case demonstrates, law enforcement and the community will not tolerate anyone who fraudulently steals or takes anything that they do not earn or deserve.”
The case is being investigated by the FBI and other state and local authorities, and prosecuted for the United States by Assistant U.S. Attorney Patricia G. Rhodes.
Previously Convicted Felon Sentenced to Prison for Possessing FirearmsRead the Press Release
RICHMOND, Va. – A Richmond man was sentenced today to four years in prison for possession of a firearm after being convicted of multiple felonies.
According to court documents, Antonio Smith, 53, was observed by Richmond Police with two firearms after several previous convictions for felonies. In September 2019, Richmond Police were called to the scene of a domestic assault, and observed Smith on the front porch of the residence. Smith then quickly ran inside, only to emerge from the back door of the residence a few seconds later. Police asked Smith to stop, but he continued around the building and ran up to an occupied vehicle that was parked on the street. At that time, the police officer observed Smith toss two firearms into the vehicle. Smith was arrested at the scene and the firearms were recovered. At sentencing, Smith received an enhancement for reckless endangerment to the occupants of the vehicle.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. Click here for more information about Project Guardian.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Ashan M. Benedict, Special Agent in Charge of the ATF’s Washington Field Division; and William C. Smith, Chief of Richmond Police, made the announcement after sentencing by U.S. District Judge David J. Novak. Assistant U.S. Attorney Peter S. Duffey and Special Assistant U.S. Attorney Holli R. Wood, prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:20-cr-14.
Portland Resident Charged with Arson After Lighting Fires at the Justice Center During a ProtestRead the Press Release
PORTLAND, Ore.—U.S. Attorney Billy J. Williams announced today that a Portland, Oregon, resident has been charged with setting fire to the plywood and awnings on the Justice Center building that houses the Multnomah County Detention Center (MCDC) and Portland Police Bureau’s (PPB) headquarters and Central Precinct.
Cyan Waters Bass, 21, has been charged by criminal complaint with arson.
According to court documents, during protest events on the evening of September 23, 2020, law enforcement officers conducting surveillance for unlawful activity during protests observed an individual, later identified as Cyan Waters Bass, walking near the Justice Center. Bass was observed dressed in a black jacket, dark pants, with a black cloth face covering, carrying a black backpack with a black baseball cap attached to it. During the evening, officers saw Bass holding a crowbar and using a slingshot or wrist-rocket to shoot projectiles through the windows of the PPB Central Precinct portion of the building. Officers later collected a white marble from within the Central Precinct. Officers observed Bass as he used a container to squirt a liquid on the plywood covering windows on a section of the north side of the building several times and lit it on fire. Officers observed the fire catch and spread to an awning on the building. Bass was later observed walking on the east side of the building near the entrance to PPB’s Central Precinct where Bass again squirted a liquid on the plywood that covered sections of the building. Bass then lit the plywood on fire that quickly spread to the awning above which scorched the plywood and concrete and damaged the awning.
Officers maintained observation of Bass until he was located and arrested the same evening. Bass was found in possession of white marbles in his pocket and a clear bottle with an unknown liquid, a black crowbar, a black slingshot, two lighters and a black baseball cap.
The Justice Center is owned by both Multnomah County and the City of Portland. The Justice Center houses the Multnomah County Detention Center which during this time had 268 persons being held. This building also houses the headquarters of the Portland Police Bureau and Central Precinct. Both of these jurisdictions receive federal funding including related to this location which on this date was housing 25 federal inmates held in custody on exclusively federal matters.
Cyan Waters Bass made an initial appearance on the complaint in federal court today before a U.S. Magistrate Judge Stacie F. Beckerman. Bass pleaded not guilty and was ordered released pending an arraignment on Thursday December 3 following a grand jury proceeding.
The Portland Police Bureau and ATF investigated this case. It is being prosecuted by Parakram Singh, Assistant U.S. Attorney for the District of Oregon.
A criminal complaint is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Physical Therapist Sentenced to 2 Years in Prison for Participating in $30 Million Scheme to Defraud Medicare and MedicaidRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, announced that physical therapist HATEM BEHIRY was sentenced today by U.S. District Judge Lorna G. Schofield to 24 months in prison for his participation in a $30 million scheme to defraud Medicare and the New York State Medicaid Program (“Medicaid”). Between 2007 and late 2012, on a regular basis, BEHIRY falsely pretended to provide physical therapy services to patients, and falsified medical records in a fraudulent scheme to bill Medicare and Medicaid for non-existent services. BEHIRY and a co-defendant physician, Paul J. Mathieu, were convicted in May 2019, following a six-week trial, on charges of health care fraud, wire fraud, mail fraud, conspiracy to commit those offenses, and conspiracy to make false statements in connection with a federal health care program.
Acting U.S. Attorney Audrey Strauss said: “At a time when our medical system may be more important than ever, today’s sentence sends an unambiguous message that those who cheat Medicare and Medicaid will be held accountable. Corrupt health care professionals who defraud Medicare and Medicaid betray their medical training, their professions, their patients, and the taxpayers. These taxpayer-funded programs are designed to provide essential medical services to the elderly and the needy, not to enrich corrupt therapists and other fraudsters.”
According to the evidence presented at trial and other public documents:
Between 2007 and 2013, Aleksandr Burman – who is currently serving a 10-year prison term for his participation in this scheme – owned and operated six medical clinics in Brooklyn (the “Clinics”) that fraudulently billed Medicare and Medicaid approximately $30 million for medical services and supplies that were not provided, were provided without regard to medical necessity, or were otherwise fraudulently billed. As part of this scheme, three medical doctors – Mathieu, Mustak Y. Vaid, and Ewald J. Antone, all of whom have been convicted and sentenced in this case – falsely posed as the owners of the Clinics. The doctors did so by, among other things, signing various fraudulent documents that falsely represented to banks, Medicare, Medicaid, and others that they were the owners of the clinics.
Mathieu, Vaid, and Antoine also came weekly to the clinics, where they signed stacks of false and fraudulent medical charts and billing documents for patients that they had not seen, and issued referrals for unnecessary testing, occupational therapy, and physical therapy.
BEHIRY participated in the scheme almost from its inception, in 2007, until late 2012. BEHIRY regularly signed medical records to be used in fraudulent billing, in which he falsely claimed to have provided physical therapy services that he did not in fact provide. Generally, BEHIRY provided no physical therapy services at all to patients, engaging instead in brief pro forma conversations with the patients, and then completing paperwork that was used to bill Medicare and Medicaid for roughly an hour of physical therapy services. Typically, patients were told that they had to remain in the clinic for nearly an hour – which they often did by simply watching television in a waiting room for much of that time, and sometimes receiving massages or making unsupervised use of exercise machines (activities that are not billable to Medicare or Medicaid as physical therapy).
In addition, BEHIRY oversaw a group of other physical therapists, whom he arranged to bring to the Clinics to bill fraudulently for physical therapy services that were not in fact provided.
All told, Medicare and Medicaid paid more than $5 million for purported physical therapy services billed under BEHIRY’s name. As part of the scheme, more than $800,000 was transferred from the Clinics to BEHIRY’s own company.
BEHIRY is the eleventh defendant to be sentenced in this and Burman’s related case. Mathieu, who was convicted at trial with BEHIRY, was sentenced on December 11, 2019, to four years in prison. The other defendants, each of whom pled guilty, include: Aleksandr Burman, who was sentenced in a related case on May 8, 2017, to 10 years in prison; Marina Burman, the former wife of Aleksandr Burman and the owner of a related medical supply company, sentenced on May 17, 2018, to three years in prison; Mustak Y. Vaid, a physician sentenced on August 1, 2018, to 18 months in prison; Ewald J. Antoine, a physician sentenced on August 21, 2018, to a year and a day in prison; Asher Oleg Kataev, a Burman business partner, sentenced on May 31, 2018, to three years in prison; Alla Tsirlin, a Clinic office manager, sentenced on June 5, 2018, to a year and a day in prison; and Edward Miselevich and Ivan Voychak, Burman partners who jointly ran a related ambulette company, sentenced on June 12 and July 19, 2018, to three years in prison each.
* * *
In addition to the prison term, BEHIRY, 52, of Brooklyn, New York, was sentenced to three years of supervised release. Judge Schofield also ordered BEHIRY to pay restitution of $5,757,661 and forfeiture of $808.975.
Ms. Strauss praised the outstanding investigative work of the Federal Bureau of Investigation, the Office of the Inspector General of the U.S. Department of Health and Human Services, and the New York State Office of the Medicaid Inspector General (“OMIG”).
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys David Raymond Lewis, Stephen J. Ritchin, and Timothy V. Capozzi are in charge of the prosecution.
Owner of a Plumbing Company in Tucson Sentenced to Prison for Providing False Statements to the Social Security AdministrationRead the Press Release
TUCSON, Ariz. – On October 6, 2020, Kevin Cummings, 51, of Tucson, Arizona, was sentenced by U.S. District Judge Rosemary Marquez to six months in prison. The court also ordered Cummings to pay $305,371.20 in restitution to the Social Security Administration (SSA) and a $200,000 fine. Cummings must surrender to serve his prison sentence on January 7, 2021. Cummings previously pleaded guilty to Providing a False Statement Related to Social Security.
“Yet another example of someone trying to defraud the system, this time stealing benefits intended for the disabled,” said United States Attorney Michael Bailey. “Thanks to our partners at the Social Security Office for putting the time and resources into investigating this matter.”
In his plea agreement, Cummings, admitted that in February 2003 he began to collect disability benefits from the SSA. In 2006, the SSA discovered that Cummings received employee wages during 2005 and 2006 while he also collected disability. When the SSA inquired about the wages, Cummings admitted that he caused one of his employees, on multiple occasions, to make false representations concerning his employment status with his plumbing companies. Cummings also admitted that he concealed from the SSA that he was working, while continuing to collect disability benefits from 2005 through January 2014. Cummings’ dishonesty resulted in a loss to the SSA totaling approximately $305,371.20.
“My office will continue to hold accountable those who defraud the Social Security Administration,” said Gail S. Ennis, Inspector General of Social Security. “I want to thank the U.S. Attorney’s Office for its support of our investigation and its efforts to bring this individual to justice and recover these funds for SSA.”
The Social Security Office of Inspector General, under the supervision of Special Agent-in-Charge Robb Stickley, San Francisco Field Division, conducted the investigation in this case. The United States Attorney’s Office, District of Arizona, Tucson, handled the prosecution.
Cummings Plea AgreementCASE NUMBER: CR-17-00518-TUC-RM (JR)
RELEASE NUMBER: 2020-082_Cummings# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Owner of McKeesport Asian Grocery Pleads Guilty to Food Stamp Fraud and Money Laundering ConspiracyRead the Press Release
PITTSBURGH - A resident of Glassport, PA pleaded guilty in federal court to charges of Conspiracy, Food Stamp Fraud, and Money Laundering Conspiracy, United States Attorney Scott W. Brady announced today.
Sin Y Sit, age 46, pleaded guilty to three counts before United States District Judge William S. Stickman.
In connection with the guilty plea, the court was advised that beginning in and around March 2014, and continuing thereafter until May 2017, the defendant engaged in acts of food stamp fraud and money laundering conspiracy. Sin Y Sit and his wife Qiao Jiang owned and operated Mei A. Asian Grocery in McKeesport, PA. Sit and Jiang allowed customers to unlawfully exchange food stamp credits under the USDA’s S.N.A.P. program for cash (the defendants paid out fifty cents on a dollar) and other ineligible grocery items, such as tobacco. The amount of fraud during the term of the conspiracy is between $250,000 and $550,000. The defendant also engaged in financial transactions involving cash withdrawals of money which had been transferred into the store’s business account by the USDA to reimburse the defendant and his store for the food stamp credits which had been scanned by the defendant and his customers at the store during the fraudulent transactions. The cash withdrawn by the defendant was then used by the defendant at his store to pay more customers in the unlawful use of the food stamp credits.
Judge Stickman scheduled sentencing for February 17, 2021. The law provides for a total sentence of 45 years in prison, a fine of $750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shaun E. Sweeney is prosecuting this case on behalf of the government.
The U.S. Department of Agriculture Office of Inspector General, Department of Homeland Security Homeland Security Investigations, and Internal Revenue Service Criminal Investigation conducted the investigation that led to the prosecution of Sin Y Sit.
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 Eastern District of Michigan. Operation Legend launched in Detroit on July 29, 2020, in response to the city facing increased homicide and non-fatal shooting rates.
A Detroit man was charged in federal court with drug trafficking and illegally possessing a firearm.
“Operation Legend is taking dangerous, armed drug dealers off of our streets and putting them where they belong, which is in federal prison and far away from the peaceful citizens of Michigan,” said U.S. Attorney Matthew Schneider for the Eastern District of Michigan.
Eric Walker, 44, of Detroit, was charged with possession with intent to distribute heroin, cocaine, fentanyl, marijuana, and oxycodone, as well as being a felon in possession of a firearm.
According to court documents, law enforcement agents working as part of Operation Legend received tips that Walker had allegedly been selling cocaine, heroin, pharmaceutical pills, and marijuana. Surveillance was set up at the location where Walker was allegedly dealing the drugs and officers observed several drug transactions take place. Officers then executed a search warrant, where they located a black Delta Rex 9mm Handgun loaded with 13 live rounds; approximately 136 grams of suspected cocaine, approximately 23.5 grams of suspected heroin, 672 grams of suspected marijuana, approximately 4.5 amphetamine pills, and approximately 93 pills of suspected oxycodone; multiple phones/electronic devices; packaging materials and scales. Preliminary lab results indicated the heroin was laced with fentanyl and the suspected cocaine is crack cocaine.
Walker is prohibited from possessing a firearm due to previous felony convictions, including second degree murder and assault with intent to murder.
The details contained in the charging document are all allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Background on Operation Legend
Since its inception, Operation Legend has yielded more than 3,500 local, state, and federal arrests, with more than 800 defendants charged with federal crimes.
President Trump promised to assist America’s cities that have been plagued by violence. In July, Attorney General William P. Barr announced the launch of Operation Legend, a sustained, systematic and coordinated law enforcement initiative across all federal law enforcement agencies working in conjunction with state and local law enforcement officials to fight violent crime in cities across America that were experiencing an uptick in violence. Operation Legend is named after four-year-old LeGend Taliferro, who was shot and killed on June 29th in Kansas City, Missouri, while asleep in his home.
Operation Legend was launched in Kansas City, Mo., on July 8, 2020, and expanded to Chicago and Albuquerque on July 22, 2020; to Cleveland, Detroit, and Milwaukee on July 29, 2020; to St. Louis and Memphis on Aug. 6, 2020; and to Indianapolis on Aug. 14, 2020. As part of Operation Legend, Attorney General Barr has directed federal agents from the FBI, U.S. Marshals Service, DEA and ATF to surge resources to these cities to help state and local officials fighting violent crime. The Department of Homeland Security is also contributing agents to these efforts in St. Louis.
Onondaga County Man Detained on False Statement ChargesRead the Press Release
SYRACUSE, NEW YORK – Chasib Hafedh Saadoon Al Fawadi, age 35, of Syracuse, appeared yesterday in federal court on an indictment charging him with making false statements in connection with his application to obtain a green card.
The announcement was made by Acting United States Attorney Antoinette T. Bacon and Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
Al Fawadi appeared before United States Magistrate Judge Andrew T. Baxter, who ordered him detained pending a detention hearing on October 8, 2020.
According to the indictment, Al Fawadi, an Iraqi citizen, made false statements in connection with his application to become a lawful permanent resident. Specifically, the indictment alleges that he made false statements (1) on his United States Citizenship and Immigration Services (USCIS) Form I-485 for permanent residence; (2) to an official of the USCIS, a component of the Department of Homeland Security, during an interview conducted on April 9, 2019, in connection with his application for permanent residence; and (3) to another USCIS official on October 30, 2019.
As detailed in the indictment, Al Fawadi falsely answered questions where honest answers would have revealed that (1) he had been a member of and affiliated with Asa’ib Ahl al-Haq, an Iranian-backed Shiite militia and paramilitary organization and group whose members routinely used weapons against others and threatened to do so; (2) he had also assisted and provided material support to Asa’ib Ahl al-Haq knowing that it had engaged in and conspired to engage in sabotage, kidnapping, political assassination, hijacking, and other forms of terrorist activity; (3) he had received military, paramilitary and weapons training; and (4) he had traveled to Iran and Syria. By instead providing false answers, Al Fawadi attempted to conceal all of this information from the USCIS.
According to the indictment, on March 17, 2015, while in Turkey, Al Fawadi applied for classification as a refugee and to be admitted to the United States along with his family in large part on his claim that, while in Iraq, he was persecuted and threatened by Asa’ib Ahl al-Haq because he had refused to assist in the kidnappings of Sunni Muslims.
The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
If convicted, Al Fawadi faces up to 5 years in prison on each false statement charge, up to 3 years of post-imprisonment supervised release, and a maximum $250,000 fine. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the FBI and Homeland Security Investigations, with assistance from the Onondaga County District Attorney’s Office, and is being prosecuted by Assistant U.S. Attorney Steven D. Clymer.
Norwich Man Sentenced to More Than 5 Years in Federal Prison for Firearm OffenseRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that DANIEL FRANCOIS, also known as “Bear,” 30, of Norwich, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 65 months of imprisonment, followed by three years of supervised release, for illegally possessing firearms.
According to court documents and statements made in court, on May 20, 2019, Francois was arrested after he provided quantities of crack cocaine and marijuana to an undercover ATF special agent in exchange for two Davis model P-380 .380 caliber pistols. A subsequent search of Francois’ person and vehicle also revealed approximately 20 grams of heroin.
Francois’ criminal history includes state felony convictions for robbery and drug offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Francois has been detained since his arrest. On December 2, 2019, he pleaded guilty to one count of possession of a firearm by a previously convicted felon.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Ledyard and Norwich Police Departments, with the assistance of Connecticut State Parole. The case was prosecuted by Assistant U.S. Attorney Margaret M. Donovan.
This prosecution has been brought though Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
New Jersey Man Sentenced for Wire Fraud against Tribal CasinoRead the Press Release
United States Attorney Ron Parsons announced that a Mays Landing, New Jersey, man charged with Wire Fraud pled guilty and was sentenced on October 2, 2020, by District Judge Charles B. Kornmann.
Mark A. Johnson, d/b/a Atlantic Power & Equipment, L.L.C., age 60, was sentenced to 41 months in federal prison, followed by 3 years of supervised release, restitution to Dakota Nations Gaming Enterprise in the amount of $149,600, and $100 to the Federal Crime Victims Fund.
Johnson was indicted by a federal grand jury on March 5, 2019.
The conviction stemmed from an incident between on or about March 2014 and July 2014.
In approximately February 2014, the Sisseton Wahpeton Oyate (SWO) Tribal Council authorized the Dakota Magic Casino to purchase lawn maintenance equipment. The Dakota Nation Gaming Enterprise (DNGE) oversees gaming operations occurring on the SWO Reservation, including operations at the Dakota Magic Casino.
On or about March 25, 2014, Johnson submitted a proposal to the DNGE to provide refurbished lawn maintenance equipment. Johnson falsely and fraudulently represented that the equipment would be delivered to the Dakota Magic Casino four to six weeks after the date of order. The DNGE agreed to purchase the refurbished lawn maintenance equipment from Johnson.
On or about March 28, 2014, Dakota Magic Casino prepared and mailed a check for $149,600 payable to Atlantic Power & Equipment, LLC as full payment for the refurbished lawn maintenance equipment. Johnson received and deposited the check and used the funds for his own purposes. This transaction involved an interstate wire transmission on or about March 31, 2014, from Dacotah Bank in South Dakota to Wells Fargo Bank in New Jersey, through the Endpoint Exchange in Oklahoma. The equipment was never delivered to the Dakota Magic Casino, nor did Johnson refund the money to the Dakota Magic Casino.
The investigation was conducted by the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney Ann M. Hoffman.
Johnson was remanded to the custody of the U.S. Marshals Service.
Morris County Woman Sentenced to 18 Months in Prison for Conspiring to Illegally Export Aircraft Components to IranRead the Press Release
NEWARK, N.J. – A Morris County, New Jersey, woman was sentenced today to 18 months in prison for her role in a scheme to illegally smuggle millions of dollars’ worth of aircraft parts from the United States to Iran, U.S. Attorney Craig Carpenito announced.
Joyce Eliabachus, a/k/a “Joyce Marie Gundran Manangan,” 53, of Morristown, New Jersey, previously pleaded guilty before U.S. District Judge Madeline Cox Arleo to an information charging her with one count of conspiracy to violate the International Emergency Economic Powers Act (IEEPA) in connection with her role in an international procurement network that smuggled over $2 million worth of aircraft components to Iran. Judge Arleo imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Eliabachus, Peyman Amiri Larijani, 34 – a citizen and resident of Iran – and others were part of an international procurement network that surreptitiously acquired large quantities of aircraft components from United States-based manufacturers and vendors and unlawfully exported them to entities in Iran using freight-forwarding companies in the United Arab Emirates (UAE) and Turkey. Larijani is charged by complaint with one count each of conspiracy to violate Iranian Transactions and Sanctions Regulations (ITSR), conspiracy to commit money laundering, and conspiracy to smuggle goods from the United States. Larijani was also charged in U.S. District Court for the District of Columbia in two separate indictments unsealed June 4, 2019.
Eliabachus was the principal officer and operator of Edsun Equipments LLC, a purported New Jersey-based aviation parts trading company run out of her Morristown residence. Larijani was the owner of an Iran-based procurement firm and served as operations and sales manager of a network of supply and engineering companies in Tehran, Iran, and Istanbul, Turkey.
From May 2015 through October 2017, Eliabachus, Larijani, and their conspirators facilitated at least 49 shipments containing 23,554 license-controlled aircraft parts from the United States to Iran, all of which were exported without the required licenses.
Eliabachus conspired with Larijani, whose international network helped initiate the purchase of United States-origin aircraft components on behalf of Larijani’s clients in Iran. The network’s client list included Iranian airline companies, several of which have been officially designated by the United States as a threat to national security, foreign policy, or economic interests. One company, Mahan Air Co., has been subject to sanctions by the United States for providing financial, material and technological support to the Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF), and allegedly ferrying arms and reinforcements to designated terrorist groups such as Hezbollah and Hamas.
Eliabachus used her company to finalize the purchase and acquisition of the requested components from the various United States-based distributors. She repackaged and shipped the components to shipping companies in the UAE and Turkey, where Larijani and other Iranian conspirators directed the components to locations in Iran.
In order to obscure the extent of the network’s procurement activities, Eliabachus routinely falsified the true destination and end-user of the aircraft components she acquired. She also falsified the true value of the components being exported in order to avoid filing export control forms, which further obscured the network’s illegal activities from law enforcement.
The funds for the illicit transactions were obtained from the Iranian purchasers, funneled through Turkish bank accounts held in the names of shell companies controlled by the Iranian conspirators. The money was ultimately transferred into one of Edsun Equipments’ accounts in the United States. The network’s creation and use of multiple bank accounts and shell companies abroad was intended to conceal the true sources of funds in Iran, as well as the identities of the Iranian entities who were receiving U.S. aircraft components.
In addition to the prison term, Judge Arleo sentenced Eliabachus to one year of supervised release.
U.S. Attorney Carpenito credited special agents of Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina in Newark, and the U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement, under the direction of Special Agent in Charge Jonathan Carson in New York, with the investigation.
The government is represented by Assistant U.S. Attorneys Dean C. Sovolos of the U.S. Attorney’s Office National Security Unit, and Sarah Devlin, Chief of the office’s Asset Recovery and Money Laundering Unit, with assistance from Trial Attorney David Recker of the National Security Division’s Counterintelligence and Export Control Section.
The charges still pending against Larijani are only allegations, and he is presumed innocent unless and until proven guilty.
Monroe Lab Owner Indicted for Paying Bribes and Kickbacks Resulting in Improper Billings to Medicare of Approximately $117 MillionRead the Press Release
MONROE, La. – George M. “Trey” Fluitt, III, 53, of Monroe, made his initial appearance in United States District Court today, Acting United States Attorney Alexander C. Van Hook announced. Fluitt, the owner and operator of Specialty Drug Testing, LLC (“Specialty”) in Monroe, was indicted by a federal grand jury for paying bribes and kickbacks in violation of the Anti-Kickback Statute, resulting in improper billings to Medicare of approximately $117 million.
Fluitt was charged with one count of conspiracy to defraud the United States and to pay and receive health care kickbacks. In addition, the indictment charges Fluitt with two counts of offering and payment of kickbacks and bribes in connection with a federal health care program, specifically Medicare.
According to the indictment, Fluitt and Specialty conspired with other unnamed co-conspirators and companies to unlawfully enrich themselves and others by soliciting and paying kickbacks and bribes in return for patient DNA specimens and physicians’ orders for cancer genetic tests and pharmacogentic testing. The indictment alleges that Fluitt and two other co-conspirators created and transmitted invoices and spreadsheets reflecting the kickback and bribe payments owed by Specialty, and used email and other forms of communication to inform each other of Medicare reimbursements, the payment of kickbacks and bribes, and other matters related to the scheme to defraud. It is further alleged in the indictment that as a result of these false and fraudulent claims, Medicare paid to Specialty at least the approximate amount of $28,726,229.
If convicted, the defendant faces up to five years in prison for each count of conspiracy to defraud health care program. Fluitt also faces 10 years in prison for illegal kickbacks. The defendant faces up to 5 years of supervised release, a $250,000 fine, forfeiture and restitution.
The U.S. Department of Health and Human Services, Office of Inspector General, conducted the investigation. U.S. Department of Justice, Criminal Division, Trial Attorneys Gary A. Winters, Justin M. Woodard, and Assistant U.S. Attorney Seth D. Reeg are prosecuting the case.
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Milford Man Pleads Guilty to Bank RobberyRead the Press Release
CONCORD - Seamus Murphy, 38, formerly of Milford, pleaded guilty in federal court to bank robbery, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on January 8, 2020, Murphy entered the People’s United Bank in Derry and gave a note to the teller, indicating he had a gun and demanding money. The teller gave him $712 from the drawer. Police arrived on scene and saw Murphy running toward a nearby fast food store where they encountered him and recovered the $712. Murphy was on federal supervised release at the time of the robbery.
Murphy is scheduled to be sentenced on January 14, 2021.
“Bank robberies endanger bank employees and the general public,” said U.S. Attorney Murray. “These violent crimes will not be tolerated. We will work closely with our federal, state, and local law enforcement partners to keep the Granite State safe by investigating and prosecuting those who commit bank robberies and other violent offenses.”
This matter was investigated by the Federal Bureau of Investigation with assistance from the Derry Police Department. The case is being prosecuted by Assistant U.S. Attorney Georgiana L. MacDonald.
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Michigan City Man Convicted Following 2-Day Jury TrialRead the Press Release
SOUTH BEND – Rapheal Seay, age 30, of Michigan City, Indiana was convicted of being a felon in possession of a firearm, announced U.S. Attorney Kirsch.
U.S. District Court Judge Jon E. DeGuilio presided over this 2-day trial.
According to evidence presented at trial, in December of 2019 Mr. Seay was driving in Michigan City with a loaded 9 millimeter firearm that had an extended magazine. Police officers pulled his car over and recovered the firearm. During a later interview, Mr. Seay told investigators that he had the gun for protection and had bought it in South Bend a month previously. At the time of the offense, Mr. Seay was on federal supervised release for being a felon in possession of a firearm.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the Michigan City Police Department and LaPorte County Drug Task Force. The case was prosecuted by Assistant United States Attorneys Molly E. Donnelly and Jerome W. McKeever.
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Mexican Meth Courier Arrested in Merced County Pleads GuiltyRead the Press Release
FRESNO, Calif. — Alejandro Lopez, 50, a citizen of Mexico, pleaded guilty today to possessing methamphetamine with intent to distribute, U.S. Attorney McGregor W. Scott announced.
According to court documents, Lopez was stopped for a traffic violation in Merced County as he was driving northbound on Highway 99. Following the stop, law enforcement officers discovered approximately 32 pounds of methamphetamine in a spare tire of the vehicle that Lopez had been driving.
This case is the product of an investigation by Homeland Security Investigations and California Highway Patrol. Assistant U.S. Attorney Karen A. Escobar is prosecuting the case.
Lopez is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on Jan. 11, 2021. Lopez faces a maximum statutory penalty of life in prison, a mandatory minimum prison term of 10 years, and a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Member of Navajo Nation charged with second degree murder in Indian country and obstruction of justiceRead the Press Release
ALBUQUERQUE, N.M. – Anthony Frazier, Jr., 28, of Ramah, New Mexico, and an enrolled member of the Navajo Nation, appeared in federal court in Las Cruces, New Mexico, on Oct. 2 for an initial appearance on an indictment charging him with second-degree murder in Indian Country and obstruction of justice.
According to the indictment, on March 27, 2018, Frazier allegedly killed a man and tampered with evidence at the man’s residence to impede a potential federal grand jury investigation following law enforcement’s investigation into the murder. The events allegedly took place within the exterior boundaries of the Ramah Navajo Reservation.
Frazier was arrested on unrelated state charges in California and transported back to the District of New Mexico. He is currently in custody pending trial. Frazier faces up to life in prison if convicted of the charged offenses.
Indictments are only allegations. A defendant is presumed innocent unless and until proven guilty.
The Gallup office of the FBI investigated this case with assistance from the Ramah Navajo Police Department. Assistant U.S. Attorney David P. Cowen is prosecuting the case.
Media AdvisoryRead the Press Release
Methamphetamine remains a dangerous drug that adversely affects the health and safety of our communities. Methamphetamine trafficking also often involves the use of firearms and violence. The United States Attorney’s Office is committed to prosecuting those who profit from trafficking and selling this poison. Two ongoing cases in federal district court in Sioux City demonstrate both the dangers methamphetamine represent and the importance of prosecuting these dangerous drug traffickers.
On October 8, 2020, Monee Yodprasit will be sentenced in federal district court in Sioux City, Iowa, following his conviction for conspiracy to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, and possession of a firearm by a convicted felon. In addition, another defendant, Liborio Martinez-Rubio, is pending sentencing after pleading guilty to conspiracy to distribute 50 grams or more of methamphetamine and possession of firearms in furtherance of a drug trafficking crime.
On October 8, 2020, at 4:00 p.m., representatives of the United States Attorney’s Office, the United States Drug Enforcement Agency, the United States Postal Inspection Service, and the Sioux City Police Department will hold a press conference in front of the Sioux City Police Department, 601 Douglas St., in Sioux City, Iowa, to discuss the cases.
Event Details
When: October 8, 2020
Where: Sioux City Police Department, 601 Douglas St.
Time: 4:00 p.m.
Press releases and interview opportunities will be available.
To RSVP, please email Timothy Duax at [email protected] or call 712-202-1712.
Follow us on Twitter @USAO_NDIA.
McKeesport Felon Charged with Illegal Gun PossessionRead the Press Release
PITTSBURGH - A resident of McKeesport, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal firearms laws, United States Attorney Scott W. Brady announced today.
The one-count Indictment named Spayne Swindle, Jr., age 26, as the sole defendant.
According to the Indictment, on October 2, 2020, Swindle possessed a firearm, specifically a Glock 20, 10 mm semi-automatic handgun, knowing he had previously been convicted of Distribution of Cocaine within 1,000 Feet of a Protected Location, in the United States District Court for the Northern District of West Virginia, on January 8, 2014. Federal law prohibits felons from possessing firearms.
The law provides for a maximum total sentence of not more than 10 years in prison, a fine of $250,000 or both. However, if it is determined that the defendant has three previous convictions for a violent felony or a serious drug offense, or both, then the term of imprisonment is not less than 15 years to a maximum of life imprisonment. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The Allegheny County Police conducted the investigation leading to the Indictment in this case.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian enhances coordination of federal, state, and local authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the Pennsylvania Instant Criminal Background Check System (PICS), to include taking appropriate actions when a prospective purchaser is denied for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Luzerne County Men Charged with Fentanyl Trafficking That Resulted in DeathRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that charges were unsealed yesterday for five Luzerne County men, for various fentanyl, cocaine, and tramadol trafficking offenses, including fentanyl dealing that resulted in death. The defendants are:
- Edwin Tejeda, age 30, of Wilkes-Barre, Pennsylvania and the Dominican Republic;
- Jose Raymer Tejeda, age 36, of Wilkes-Barre, Pennsylvania;
- Emilio Tejeda, age 32, of Wilkes-Barre, Pennsylvania;
- James Garris, Jr., age 51, of Wilkes-Barre, Pennsylvania; and
- James Tindol, Jr., age 37, of Nanticoke, Pennsylvania.
Brothers Edwin, Jose Raymer, and Emilio Tejeda were indicted by a federal grand jury on June 30, 2020, with conspiring to traffic cocaine and 400 grams or more of fentanyl, between January 2016 and February 2020. According to United States Attorney David J. Freed, the indictment alleges that Edwin Tejeda and Jose Raymer Tejeda are charged with causing the death of A.V. as a result of that conspiracy. The three also are charged varyingly with 19 counts of trafficking fentanyl and tramadol during the course of the conspiracy, and with maintaining a drug premises. The indictment also seeks forfeiture of two Wilkes-Barre properties, two firearms and ammunition, and over $25,000 seized by law enforcement. The defendants all await trial. The indictment remained under seal until Edwin Tejeda was apprehended while traveling to the United States from the Dominican Republic.
James Garris, Jr., was charged in an information on June 3, 2020, with delivering fentanyl that resulted in death. Garris pleaded guilty to that charge on July 7, 2020, and awaits sentencing. James Tindol, Jr. also was charged in an information on March 4, 2020, with delivering fentanyl that resulted in death.
In a related case, on June 30, 2020, Kearon Brinson, age 40, of West Nanticoke, Pennsylvania, and Lamont Hubbard, age 49, of Plymouth, Pennsylvania, were indicted by a federal grand jury on drug trafficking and ammunition charges. According to United States Attorney Freed, the indictment alleges that Brinson and Hubbard conspired to traffic in excess of 40 grams of fentanyl between January 2019 and February 2020. Brinson was charged with possessing with the intent to distribute crack cocaine on February 24, 2020. Brinson and Hubbard both were charged with possessing with the intent to distribute fentanyl on February 24, 2020. Hubbard also was charged with possessing ammunition as a convicted felon. The indictment also seeks forfeiture of assorted ammunition and over $3,500 seized by law enforcement during the investigation. Both defendants await trial.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Luzerne Country Drug Task Force, and the Kingston Police Department. Assistant U.S. Attorney Phillip J. Caraballo is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
This case further was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for the drug delivery resulting in death charges are a minimum 20 years and maximum life term of imprisonment. Other drug charges against the defendants carry five and ten-year mandatory minimums. 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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