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2 October 2020
Three Defendants Charged in Multi-Million Dollar Medicare Fraud SchemeRead the Press Release
BOSTON – Three individuals were charged today in connection with a multi-million dollar Medicare fraud scheme, bringing the total number of defendants to six.
Nathan LaParl, 34, of Boca Raton, Fla., and Talia Alexandre, 30, of Palm Springs, Fla., were each charged by Information with one count of receiving kickbacks in connection with a federal health care program. LaParl and Stefanie Hirsch, 51, of Los Angeles, Calif., were also charged by Information with violating the HIPAA statute.
According to charging documents, LaParl and Alexandre sold Medicare patients’ personal and medical data to Juan Camilo Perez Buitrago. LaParl and Alexandre worked with foreign call centers to contact Medicare patients to ask if they were interested in durable medical equipment (DME) such as arm, back, knee and shoulder braces “at little to no cost.” The call centers collected demographic and insurance information from Medicare patients, which LaParl and Alexandre sold to Perez. Together, LaParl and Alexandre received more than $1.6 million from Perez for the patient data. Perez Buitrago used that patient data to submit more than $109 million in false and fraudulent claims, submitting claims for DME that was not prescribed, not necessary, and, in many instances, never requested or received.
To perpetuate the scheme, LaParl checked Medicare patients’ insurance eligibility by improperly accessing a patient eligibility tool provided by Hirsch. Hirsch owned EI Medical, Inc., a Medicare-enrolled wheelchair and scooter repair company that qualified for access to a health care clearinghouse that contains Medicare patients’ personal, medical and insurance information. Hirsch improperly gave LaParl access to that clearinghouse and charged him about $0.25 per patient eligibility check. Using Hirsch’s credentials, LaParl accessed the personal and medical data of more than 350,000 patients.
Perez was charged in July 2020 and is scheduled to plead guilty on Oct.5, 2020. Two other defendants, Jessica Jones and Elizabeth Putulin, were charged on Sept. 29, 2020 and have agreed to plead guilty.
United States Attorney Andrew E. Lelling; Johnnie Sharp Jr., Special Agent in Charge of the Federal Bureau of Investigation, Birmingham Field Division; Phillip Coyne, Special Agent in Charge of the Department of Health and Human Services, Office of the Inspector General, Boston Division; and Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service made the announcement today. Assistant U.S. Attorney Elysa Q. Wan of Lelling’s Health Care Fraud Unit is prosecuting the case.
Third Jacksonville Woman Pleads Guilty in Scheme to Defraud Retail MerchantsRead the Press Release
Jacksonville, Florida – Sierra Marvette Townsend (33, Jacksonville) has pleaded guilty to conspiracy to commit wire fraud. She faces a maximum penalty of 20 years in federal prison and payment of restitution to her victims. A sentencing date has not yet been set.
According to court documents, Townsend and others traveled to north Florida, Georgia, and South Carolina to commit fraud involving HomeGoods, TJ Maxx, and Marshalls. Over the course of multiple years, Townsend used five different identities when making fraudulent returns at these stores. These fraudulent returns resulted in the stores issuing gift cards to Townsend and others worth thousands of dollars. After obtaining the store gift cards, Townsend and others typically sold or pawned them.
On February 18, 2020, co-defendant Katrina Monique Morris (39, Jacksonville) pleaded guilty to conspiracy to commit wire fraud. On July 30, 2020, co-defendant Lashundra Monyett Gibbs (38, Jacksonville) pleaded guilty to conspiracy to commit wire fraud. Morris and Gibbs are both scheduled to be sentenced on December 2, 2020.
This case was investigated by the United States Secret Service - Jacksonville Field Office, with assistance from the Altamonte Springs Police Department. It is being prosecuted by Assistant United States Attorney Kevin C. Frein.
The Department of Justice Files Statement of Interest in Capitol Hill Baptist Church's Effort to Practice Its Faith During COVID-19Read the Press Release
WASHINGTON - The Department of Justice today filed a statement of interest in federal district court in Washington, D.C., arguing the Constitution and federal law require the District of Columbia to accommodate Capitol Hill Baptist Church’s effort to hold worship services outdoors, at least to the same extent the District of Columbia allows other forms of outdoor First Amendment activity, such as peaceful protests.
The statement of interest was filed in Capitol Hill Baptist Church v. Bowser, a case challenging the District of Columbia’s refusal to allow outdoor worship because of the city’s COVID-19 restrictions. The suit challenges the permit denial under the Free Speech and Free Exercise Clause of the First Amendment, and the Religious Freedom Restoration Act (RFRA). The suit alleges that while places of worship are limited to 100 people at outdoor worship services, these limits do not apply to, among other things, outdoor protests and rallies accommodating thousands.
“The right to free exercise of religion and the right to protest are both enshrined in the First Amendment of the Constitution. We are a nation dedicated to freedom of conscience and freedom of expression. The District of Columbia has, unfortunately, neglected these rights,” said Eric Dreiband, Assistant Attorney General for the Civil Rights Division. “The Department of Justice is committed to defending both of these fundamental freedoms and in supporting all Americans' rights to worship as they choose.”
“One of the most foundational rights protected by the Bill of Rights is the free exercise of religion,” said Acting U.S. Attorney Michael Sherwin for the District of Columbia. “The Department of Justice is committed to upholding all the civil rights protected under the First Amendment, be it peaceable assembly in protest or practicing faith.”
Capitol Hill Baptist Church is a church of more than 850 members with a strong religious conviction that it should meet in person as a complete body for worship each Sunday. It therefore sought a permit to hold worship outdoors in excess of the 100-person limit, which the city denied.
The United States’ brief explains there is no Constitutional or statutory basis for allowing protests and rallies attended by thousands of people, but silencing religious worship. The brief also explains the city bears a high burden of proof to justify its actions under the First Amendment and RFRA because its actions impose a “substantial burden” on religious exercise, as the church has shown here.
The statement of interest is part of Attorney General William P. Barr's initiative, announced April 27, directing Assistant Attorney General for Civil Rights, Eric Dreiband, and the U.S. Attorney for the Eastern District of Michigan, Matthew Schneider, to review governmental policies around the country to ensure that civil liberties are protected during the COVID-19 pandemic.
Texas man sentenced to prison for trafficking marijuana, cocaine and possessing firearmsRead the Press Release
MISSOULA — A Texas resident to admitted to drug trafficking and firearms crimes after a traffic stop near Bozeman led to a trooper finding marijuana, cocaine and guns in his vehicle was sentenced today to five and one half years in prison and three years of supervised release, U.S. Attorney Kurt Alme said.
Anthony Jacob Lugo, 32, of Halingen, Texas, pleaded guilty in January to possession with intent to distribute marijuana and cocaine and possession of a firearm in furtherance of a drug trafficking crime.
U.S. District Judge Dana L. Christensen presided. Lugo was detained.
In court records filed in the case, the prosecution said a Montana Highway Patrol trooper pulled over Lugo's pickup truck on Interstate 90 near Bozeman on Aug. 28, 2017. The trooper detected a strong odor of raw marijuana coming from the cab. When the trooper had Lugo step out of the vehicle, he saw a pistol in a holster on the driver's seat. A K9 drug dog indicated on the truck, which was seized pending a search warrant.
During a search of the truck, law enforcement found jars of marijuana and cocaine, a drug ledger, a loaded .45-caliber pistol and a short-barreled rifle. Lugo admitted to owning the firearms.
Assistant U.S. Attorney Tim Racicot and former Assistant U.S. Attorney Tom Bartleson prosecuted the case, which was investigated by Missouri River Drug Task Force and the Montana Highway Patrol.
This case is part of Project Guardian, the U.S. Department of Justice’s recent initiative to reduce gun violence and enforce federal firearms laws, and Project Safe Neighborhoods, the USDOJ’s initiative to reduce violent crime. According to the FBI’s Uniform Crime Reports, violent crime in Montana increased by 36% from 2013 through 2018. Through these initiatives, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Tazewell Man to Serve 36 Months in Prison for His Role in Money Laundering ConspiracyRead the Press Release
ABINGDON, Va. – John Howard “Junior” Boothe, Jr., the owner of C & A Trucking, was sentenced in U.S. District Court in Abingdon to 36 months in federal prison after having previously pled guilty to conspiring to commit money laundering. Acting United States Attorney Daniel P. Bubar made the announcement today.
According to evidence presented at court hearings, Boothe, 53, of Tazewell, Va., was part of a conspiracy involving Larry Wayne Price, Jr., in which Boothe laundered over $6 million of Price’s fraudulently obtained proceeds through his company. Boothe submitted false invoices as part of the scheme. Larry Wayne Price, Jr., has pled guilty in United States District Court in Montana and is awaiting sentencing.
The investigation of the case was conducted by the Internal Revenue Service - Criminal Investigation, Federal Bureau of Investigation, Tazewell County Sheriff’s Office, and Russell County Sheriff’s Office. Assistant United States Attorney Randy Ramseyer prosecuted the case for the United States.
Statement from Assistant Attorney General Eric Dreiband and Michigan U.S. Attorneys on Michigan Supreme Court Ruling Striking Down Governor Whitmer’s Pandemic-Related OrdersRead the Press Release
Assistant Attorney General for Civil Rights Eric Dreiband, U.S. Attorney Matthew Schneider for the Eastern District of Michigan, and U.S. Attorney Andrew Birge for the Western District of Michigan issued the following statements:
“Today’s decision by the Michigan Supreme Court is a victory for all Michiganders and the rule of law,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The United States Constitution guarantees a republican form of government to every state in our free country. The Constitution does not permit any public official unlawfully to restrict our liberty. All public officials must respect the right of the people to govern themselves at all times, especially during a crisis.”
“On June 23, we wrote to Governor Whitmer and urged her to work cooperatively with the Michigan Legislature to reopen Michigan safely and address the multitude of concerns that Michiganders have had about the restrictions on their liberties,” said United States Attorney Matthew Schneider. “The best solutions for preserving our liberties and keeping us safe involve listening to the people of Michigan, and this decision by the Michigan Supreme Court upholding the rule of law now allows that to happen.”
“While the Governor has had the public’s health interests at heart, this decision underscores the importance of a legislature to the legitimacy of restrictions on liberty,” said United States Attorney Andrew Birge. “I urge the Governor and Michigan legislators to work together going forward in responding to this pandemic so that we stay safe and free.”
Background
On June 23, 2020, Assistant Attorney General Dreiband, U.S. Attorney Schneider, and Birge wrote to Governor Whitmer to express their concerns about the Governor’s restrictions on the civil rights and liberties of the People of Michigan as part of her response to the COVID-19 pandemic: “We write in the spirit of constructive cooperation to suggest greater cooperation with the Michigan legislature. Michiganders have raised numerous good-faith concerns about the orders you have issued—about whether they are authorized under state law, infringe on constitutional rights, or draw arbitrary and irrational distinctions among authorized and unauthorized economic activities. Working with the state legislature to reopen Michigan safely will relieve the public of concerns about the EMA and ensure greater representation of the people in matters that have serious consequences for their liberty. Such cooperation may also help identify any potential constitutional concerns with existing and any future orders. Further, and perhaps most importantly, working with the state legislature will affirm that Michigan and its public officials remain committed to the ‘Republican Form of Government’ mandated by the United States Constitution. U.S. Const., Art. IV, §4.”
On May 29, 2020, the Department of Justice filed a statement of interest in a Michigan federal court in support of a lawsuit filed by seven businesses challenging the restrictions imposed by Governor Gretchen Whitmer in response to the COVID-19 pandemic. That statement of interest explained that the governor’s COVID-19 orders, however well-intentioned, raised constitutional concerns by imposing what appeared to be arbitrary and unreasonable limits on how and ultimately whether certain businesses could operate in Michigan relative to other similarly situated businesses. The statement of interest also explained that the federal Constitution provides for a cohesive national economy for all 50 states and all Americans and that the governor’s COVID-19 orders may be unduly interfering with interstate commerce.
Matthew Schneider, U.S. Attorney for the Eastern District of Michigan, and Assistant Attorney General Dreiband, are overseeing the Justice Department’s effort to monitor state and local policies relating to the COVID-19 pandemic.
The federal case is Signature Sotheby’s International Realty, Inc., et al. v. Whitmer, No. 1:20-00360 and additional information about the department’s May 29 statement of interest can be found here: https://www.justice.gov/opa/pr/department-justice-files-statement-interest-support-businesses-suffering-arbitrary-and
South Carolina Man Sentenced to 36 Months for Mail Fraud Conspiracy, Theft from Employee Benefit Plans, and Unlawful Storage of Hazardous WasteRead the Press Release
LEXINGTON, Ky. - A South Carolina man, Aaron Micah Jamison, 45, who formerly resided in Lexington, was sentenced in federal court on Thursday, September 24, to 36 months in prison, by Chief U.S. District Judge Danny Reeves, for theft from an employee benefits plan, conspiracy to commit mail fraud, and unlawful storage of hazardous waste.
According to his plea agreement, Jamison was the CEO of Micah Group, LLC, which offered construction and remediation services to the energy and environmental sectors. Jamison admitted that from March 4, 2016 to October 30, 2016, he knowingly failed to remit employees’ 401(k) contributions that had been withheld from their paychecks, totaling over $30,000.00, and diverted them for his personal use and the use of his businesses. Jamison also admitted that from April 2, 2017 through April 28, 2017, he failed to remit withheld pre-tax health contributions of the Micah Group’s employees to its health insurer, totaling $4,843.73.
The Micah Group also performed abandonment of ground water monitoring wells at numerous sites around the state of Kentucky, including gas stations, convenience stores, and other private property, and sought payment for such work from the Kentucky Energy and Environment Cabinet. On multiple occasions, Jamison admitted to signing documents falsely representing that the wells had been properly abandoned in order to bring income to the Micah Group and to ensure that him and other employees were paid. At sentencing, the court determined that between 2013 and 2017, the false representations made by Jamison and his co-conspirators caused approximately $640,000 in loss to the state.
Finally, Jamison admitted to unlawfully storing hazardous waste at Micah Group’s premises at various points in time between January 2016 and December 2017.
Jamison pleaded guilty in January 2020.
“The defendant stole from his employees and lied to state authorities to further his own interests,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “His conduct not only financially harmed his employees, and caused the state to spend money to clean up his mess, but he also potentially put the public at risk by failing to properly monitor ground water wells and store hazardous materials. I commend the cooperation and work of the investigative agencies involved, as their efforts helped hold the defendant accountable for his actions.”
"The defendant was paid to transport hazardous waste as defined under the Resource Conservation and Recovery Act (RCRA). Mr. Jamison chose to illegally store the hazardous waste and place the public, and environment at risk” said Special Agent in Charge Charles Carfagno of the EPA’s Criminal Investigation Division in Atlanta, GA.
"Criminal acts like this directly impact participants in employee benefit plans by compromising their hard-earned benefits and eroding confidence in those chosen to manage their trust. The U.S. Department of Labor’s Employee Benefits Security Administration is committed to ensuring the integrity of employee benefit programs,” said Employee Benefits Security Administration Regional Director Joe Rivers, in Cincinnati, Ohio.
Under federal law, Jamison must serve 85 percent of his prison sentence. Upon his release, he will be under the supervision of the U.S. Probation Office for 3 years. In addition, Jamison was ordered to pay $640,638.31 in restitution.
U.S. Attorney Duncan, SAC Carfagno, and Director Rivers made the announcement.
The investigation was pursued by the United States Secret Service, Environmental Protection Agency-Criminal Investigation Division and Office of Inspector General, and the United States Department of Labor with assistance by the Kentucky Energy and Environment Cabinet. The United States was represented by Assistant U.S. Attorneys Emily Greenfield and Kate Anderson.
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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South Bend, Indiana Man Sentenced to 7 Years in PrisonRead the Press Release
SOUTH BEND –On October 1, 2020, Cody Miller, 28, of South Bend, Indiana was sentenced by United States District Court Judge Damon R. Leichty upon his plea of guilty of possession with intent to distribute more than 50 grams of methamphetamine, announced U.S. Attorney Kirsch.
Mr. Miller was sentenced to 84 months in prison followed by 4 years of supervised release.
According to documents filed in this case, on July 24, 2019, agents executed a federal search warrant on Mr. Miller’s residence where he possessed approximately 160 grams of methamphetamine that he intended to sell.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Drug Enforcement Administration with the assistance of the Indiana State Police, Mishawaka Police Department, and Elkhart County Intelligence and Covert Enforcement. The case was handled by Assistant U.S. Attorney Joel Gabrielse.
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Significant prison sentence wraps up prosecutions in massive south Georgia drug trafficking schemeRead the Press Release
BRUNSWICK, GA: A convicted drug trafficker was sentenced to more than 15 years in federal prison Friday, wrapping up a federal prosecution that indicted 36 defendants in a major coast-to-coast narcotics distribution network.
Lashadre Smith, a/k/a “Shafa,” a/k/a “Shaffa Billythekid Smith,” 30, of Waycross, Ga., was sentenced to 190 months in prison by U.S. District Court Judge Lisa Godbey Wood after pleading guilty to Conspiracy to Possess with Intent to Distribute 50 Grams or More of Methamphetamine, and Possession of a Firearm in Furtherance of a Drug Trafficking Crime, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. Smith also must serve five years of supervised release after completion of his prison terms. There is no parole in the federal system.
The final defendant, Phillip Johnson, a/k/a “Gunplay,” 29, of Waycross, awaits sentencing after pleading guilty to Conspiracy to Possess with Intent to Distribute Five Grams or More of Methamphetamine. The remaining defendants in the investigation previously pled guilty and were sentenced to prison terms of up to 268 months.
“Not only did this wide-ranging investigation and prosecution shut down major meth distributors in the Waycross area and beyond, it also has removed from the streets three dozen criminals and gang members with a sickening total of nearly 70 felony convictions on their substantial records,” said U.S. Attorney Christine. “The many law enforcement agencies who risk their lives to protect our communities from such career criminals deserve our gratitude and unwavering support.”
The defendants, identified during a year-long undercover investigation, were named in two separate federal indictments in August 2017, alleging a conspiracy that spread from Georgia, to Florida, and to California to import methamphetamine and other drugs into the south Georgia area. Led by the FBI, the joint federal and local investigation into violent gang and drug trafficking activities in Ware, Pierce and Glynn counties led to the seizure of kilos of methamphetamine along with quantities of cocaine and marijuana, thousands of dollars in cash and multiple firearms.
“After nearly a year-long investigation and two years of court procedures we can assure citizens of Waycross and south Georgia counties, they are much safer because these criminals and their drugs are off their streets,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The success could not have been achieved without our federal, state and local partners who are part of the FBI’s Coastal Georgia Safe Streets Violent Gang Task Force.”
Also involved in the investigation were the Waycross Police Department and the Ware County Sheriff’s Office, with assistance from the Glynn County Police Department, the Brunswick Police Department, the Blackshear Police Department, the U. S. Marshals Service, the U.S. Probation Office and the Georgia Department of Community Supervision.
The cases were prosecuted for the United States by Assistant U.S. Attorney Jennifer Kirkland and Assistant U.S. Attorney and Organized Crime Drug Task Force (OCDETF) Coordinator Marcela C. Mateo.
Serial sex offender sentenced to 25 years for operating a child pornography chat groupRead the Press Release
GAINESVILLE, Ga. - Terence Dewayne Dixon has been sentenced for running an online chat group that he named “House of 1000 Littles.” The chat group was dedicated to sharing child pornography and discussing child molestation. At the time, Dixon had already been convicted in 2001 of the aggravated sexual assault of a nine-year-old child.
“Dixon disseminated horrific images of child pornography to members of his online chat group,” said U.S. Attorney Byung J. “BJay” Pak. “He also encouraged others to share child pornography that fueled a demand for the violent exploitation of children. This lengthy prison sentence serves as some recompense for the irreparable harm he caused to so many children and their families.”
“The monsters that visited this site and found pleasure in exploiting innocent children now have one less place to sow their evil seeds and one less organizer to help them do it. Dixon’s sentencing is warning to those who revel in and peddle this filth,“ said acting Special Agent in Charge Robert Hammer, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “HSI Atlanta and its state and local partners are hunting down these criminals that look to steal the innocence of our youth.”
“For this defendant to take the images of innocent children and pass them around in order to exploit them and use them to arouse in a sexual nature is absolutely despicable. The GBI is committed to working with our partners to stop this criminal behavior and protect our young ones,” said Vic Reynolds, Director, Georgia Bureau of Investigation.
According to U.S. Attorney Pak, the charges and other information presented in court: As early as November 2017, Terence Dixon created an online chat group and named it “House of 1000 Littles.” Members of Dixon’s group discussed how they were sexually aroused by children and sent one another links to child pornography files on a daily basis until October 2018.
On a single day in January 2018, for example, Dixon shared 21 links containing child pornography with the group. On another date, in February 2018, he bragged that his shared link contained 5,000 videos of child pornography. Investigators identified the majority of his chat group living all across the United States, including in the states of California, Georgia, Illinois, Louisiana, Michigan, New York, Ohio, and Tennessee.
Terence Dewayne Dixon, also known as “Devilman Crybaby”, 38, of Houston, Texas, has been sentenced to 25 years in prison to be followed by a lifetime of supervised release. He was ordered to pay $12,000 in restitution. He must also register as a sex offender upon release. Dixon was convicted of conspiracy to advertise child pornography on July 23, 2020, after he pleaded guilty.
This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and Georgia Bureau of Investigation.
Assistant U.S. Attorney Jennifer Keen prosecuted the case.
This case was brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Saratoga County Man Charged with Possession of Child PornographyRead the Press Release
ALBANY, NEW YORK – Daniel Porrazzo, a/k/a “lickndipinu,” age 51, of Stillwater, New York, was arraigned today on an indictment charging him with possession of child pornography.
The announcement was made by Acting United States Attorney Antoinette T. Bacon and Kevin Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
According to the indictment, on or about June 2, 2016, Porrazzo possessed multiple images of child pornography on two laptop computers. The child pornography included depictions of the sexual abuse of children under age 12. The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
If convicted, Porrazzo faces a maximum term of imprisonment of 20 years, a mandatory term of supervised release of 5 years and up to life, 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. Porazzo would also have to register as a sex offender.
Porrazzo is detained pending a detention hearing scheduled before United States Magistrate Judge Christian F. Hummel on Monday, October 5, 2020.
This case is being investigated by HSI and is being prosecuted by Assistant U.S. Attorney Joshua R. Rosenthal.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s’ offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
San Mateo Resident Charged with Receipt of Child PornographyRead the Press Release
SAN FRANCISCO – Adrian Kyle Benjamin made an initial appearance today in federal court on a criminal complaint for receipt of child pornography, announced David L. Anderson and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. Benjamin made his initial appearance in federal court today before U.S. Magistrate Judge Kandis A. Westmore.
According to the complaint filed September 30, 2020, and unsealed today, between July 2018 and December 2019, Benjamin, 24, of San Mateo, solicited and received sexually explicit videos constituting child pornography from at least three female minor victims between the ages of 14 and 15. In March 2020, FBI executed a search warrant at Benjamin’s residence and found sexually explicit videos of each of the three minor victims saved on Benjamin’s hard drive in folders labeled with each victim’s name. Benjamin was aware of the minor victims’ ages and engaged in enticement and grooming techniques to solicit child pornography from at least one of the victims.
The charges contained in the criminal complaint are mere allegations. As in any criminal case, the defendant is presumed innocent unless and until proven guilty in a court of law. Benjamin is charged with receipt of child pornography, in violation of 18 U.S.C. § 2252(a)(2). If convicted of the charge, Benjamin faces a maximum statutory sentence of 20 years in prison, a lifetime of supervised release, and a $250,000 fine. The charge also carries a mandatory minimum sentence of five years in prison and five years of supervised release.
Benjamin’s next court appearance is scheduled for October 8, 2020, at 10:30, before U.S. Magistrate Judge Nathanael Cousins, for a detention hearing.
Assistant U.S. Attorneys Molly K. Priedeman and Mohit Gourisaria are prosecuting the case with the assistance of Alexa Leisure. The prosecution is the result of an investigation by the FBI.
San Diego Laboratory Phamatech Agrees to Pay $3 Million to Settle Fraudulent Medicare Billing CaseRead the Press Release
Assistant U. S. Attorney Paul Starita (619) 546-7701
NEWS RELEASE SUMMARY – September --, 2020
San Diego – San Diego-based Phamatech, Inc. and its CEO and founder, Tuan Pham, have agreed to pay $3,043,484 to resolve allegations that they violated the False Claims Act by submitting false claims to Medicare for laboratory drug-testing services. Phamatech is a medical technology company that manufactures diagnostic devices and provides laboratory testing including for drugs and alcohol.
The United States alleged that Phamatech improperly paid a medical clinic to induce it to refer orders for laboratory drug-testing to Phamatech and consequently received government reimbursement for those tests in violation of the federal Anti-Kickback Statute and the False Claims Act. Specifically, the United States alleged that Phamatech paid kickbacks to Imperial Valley Wellness (“IVW”), a medical practice group, to induce IVW to order laboratory testing for its patients enrolled in Medicare. For about two years, Phamatech allegedly paid IVW a per-specimen fee in exchange for IVW’s referral of urine samples from Medicare beneficiaries. The government further alleged that many of the samples that IVW referred to Phamatech for testing under this arrangement were not medically necessary and therefore not lawfully eligible for Medicare reimbursement.
“We are committed to protecting the integrity of the Medicare program and ensuring accountability under the False Claims Act. This settlement meets these goals,” said U.S. Attorney Robert Brewer. Brewer praised Assistant U.S. Attorney Paul Starita and federal agents from FBI and Health and Human Services, Office of Inspector General, for their excellent work on this case.
“Paying to secure business increases costs—ultimately, leaving taxpayers to pick up the bill,” said Timothy B. DeFrancesca, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “With our law enforcement partners, we will continue pursuing potential threats to our health programs.”
“The FBI is committed to rooting out fraud within the healthcare industry and works with the U.S. Attorney’s Office and law enforcement partners to find a just result in each case,” said FBI SAC Suzanne Turner. “We urge anyone with information about suspected healthcare fraud to contact their local FBI Field Office.”
The False Claims Act allegations being resolved were originally brought in a lawsuit filed by a former employee of Phamatech, John Polanco, under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private citizens with knowledge of fraud against the government to bring suit on behalf of the government and to share in any recovery. Mr. Polanco will receive $517,392 from the settlement proceeds.
The investigation was conducted by the U.S. Attorney’s Office for the Southern District of California, the Department of Health and Human Services Office of Inspector General, and the Federal Bureau of Investigation. This case is captioned United States, et al., ex rel. John Polanco v. Phamatech, Inc. and Tuan Pham, 16CV1835-L-NLS, and the matter was handled by Assistant U.S. Attorney Paul Starita of the Affirmative Civil Enforcement Unit of the U.S. Attorney’s Office. The claims resolved by the settlement are allegations only, and there has been no determination of liability.
DEFENDANTS
Phamatech, Inc. San Diego, CA
Tuan Pham San Diego, CA
AGENCIES
Federal Bureau of Investigation
Health and Human Services, Office of Inspector General
Statement from Assistant Attorney General Eric Dreiband and Michigan U.s. Attorneys on Michigan Supreme Court Ruling Striking Down Governor Whitmer’s Pandemic-Related OrdersRead the Press Release
WASHINGTON - Assistant Attorney General for Civil Rights Eric Dreiband, U.S. Attorney Matthew Schneider for the Eastern District of Michigan, and U.S. Attorney Andrew Birge for the Western District of Michigan issued the following statements:
“Today’s decision by the Michigan Supreme Court is a victory for all Michiganders and the rule of law,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The United States Constitution guarantees a republican form of government to every state in our free country. The Constitution does not permit any public official unlawfully to restrict our liberty. All public officials must respect the right of the people to govern themselves at all times, especially during a crisis.”
“On June 23, we wrote to Governor Whitmer and urged her to work cooperatively with the Michigan Legislature to reopen Michigan safely and address the multitude of concerns that Michiganders have had about the restrictions on their liberties,” said United States Attorney Matthew Schneider. “The best solutions for preserving our liberties and keeping us safe involve listening to the people of Michigan, and this decision by the Michigan Supreme Court upholding the rule of law now allows that to happen.”
“While the Governor has had the public’s health interests at heart, this decision underscores the importance of a legislature to the legitimacy of restrictions on liberty,” said United States Attorney Andrew Birge. “I urge the Governor and Michigan legislators to work together going forward in responding to this pandemic so that we stay safe and free.”
Background
On June 23, 2020, Assistant Attorney General Dreiband, U.S. Attorney Schneider, and Birge wrote to Governor Whitmer to express their concerns about the Governor’s restrictions on the civil rights and liberties of the People of Michigan as part of her response to the COVID-19 pandemic: “We write in the spirit of constructive cooperation to suggest greater cooperation with the Michigan legislature. Michiganders have raised numerous good-faith concerns about the orders you have issued—about whether they are authorized under state law, infringe on constitutional rights, or draw arbitrary and irrational distinctions among authorized and unauthorized economic activities. Working with the state legislature to reopen Michigan safely will relieve the public of concerns about the EMA and ensure greater representation of the people in matters that have serious consequences for their liberty. Such cooperation may also help identify any potential constitutional concerns with existing and any future orders. Further, and perhaps most importantly, working with the state legislature will affirm that Michigan and its public officials remain committed to the ‘Republican Form of Government’ mandated by the United States Constitution. U.S. Const., Art. IV, §4.”
On May 29, 2020, the Department of Justice filed a statement of interest in a Michigan federal court in support of a lawsuit filed by seven businesses challenging the restrictions imposed by Governor Gretchen Whitmer in response to the COVID-19 pandemic. That statement of interest explained that the governor’s COVID-19 orders, however well-intentioned, raised constitutional concerns by imposing what appeared to be arbitrary and unreasonable limits on how and ultimately whether certain businesses could operate in Michigan relative to other similarly situated businesses. The statement of interest also explained that the federal Constitution provides for a cohesive national economy for all 50 states and all Americans and that the governor’s COVID-19 orders may be unduly interfering with interstate commerce.
Matthew Schneider, U.S. Attorney for the Eastern District of Michigan, and Assistant Attorney General Dreiband, are overseeing the Justice Department’s effort to monitor state and local policies relating to the COVID-19 pandemic.
The federal case is Signature Sotheby’s International Realty, Inc., et al. v. Whitmer, No. 1:20-00360 and additional information about the department’s May 29 statement of interest can be found here: https://www.justice.gov/opa/pr/department-justice-files-statement-interest-support-businesses-suffering-arbitrary-and
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Richland Business Owner Sentenced to More Than 28 Years in Federal Prison for Falsifying Human Clinical Research TrialsRead the Press Release
Richland – William D. Hyslop, United States Attorney for the Eastern District of Washington, announced that Sami Anwar, age 41, of Richland, Washington, was sentenced today by Senior District Judge Edward F. Shea to a 340-month term of imprisonment for falsifying human clinical research trials in connection with a fraud scheme directed by Mr. Anwar.
After a three-week jury trial in Richland in November 2019 before Judge Shea, a federal jury found Mr. Anwar guilty of 47 counts of wire fraud, mail fraud, conspiracy, fraudulently obtaining controlled substances, and furnishing false material information to the Drug Enforcement Administration.
According to court documents and evidence presented during the trial and at sentencing, between 2013 and 2018 Sami Anwar directed and carried out a conspiracy to have his companies fraudulently pose as legitimate human clinical research trial sites and provide of false clinical research trial data regarding drug safety and drug efficacy to dozens of drug companies and, through them, the Food and Drug Administration (FDA). The false clinical research data that Sami Anwar injected into the public health system included safety data on dozens of different drugs and medicines designed to treat a wide variety of diseases and conditions including, but not limited to, heart disease, diabetes, asthma, pediatric illnesses, adolescent smoking, cirrhosis, scabies, depression, and opioid addiction to name just a few, according the evidence presented at trial. The evidence at trial indicated that Sami Anwar and his companies received over $5.6 million dollars from the fraud.
United States Attorney Hyslop said, “Every day, Americans rely on the data from clinical research trials to keep us safe from deadly diseases and dangerous side effects. The ongoing COVID-19 pandemic, and the vital ongoing clinical trials currently being conducted with regard to therapeutic treatments and vaccines, remind us every day how critical clinical research trials are and how important it is that that they be conducted honestly and reliably. Injecting fraudulent and corrupt data into the system is an egregious breach of the trust and faith that we all place in those who perform these vitally important trials.” Hyslop continued, “Based on the evidence presented at sentencing, and the jury’s unanimous verdict at trial, Mr. Anwar profited from his blatant disregard for patient safety by running his fraudulent enterprise through fear and intimidation.”
According to court documents and the evidence presented at trial and at sentencing, Sami Anwar, who is not a licensed medical doctor, would pose as a doctor and forge the signatures of the doctors he employed. In addition, over a dozen former employees of Sami Anwar testified that he directly instructed them to assist him in committing the fraud including falsifying medical records and data to admit dozens of ineligible research subjects; falsifying research data including electrocardiograms and vital signs, obtaining blood specimens from Sami Anwar’s employees or stealing them from unwitting medical patients of his medical center, disposing of study medications by shooting them down the drain and then falsely recording them as having been properly injected as required, dangerously hoarding opioids intended to be dispensed to study subjects, and fabricating required subject diary entries.
According to the evidence presented at trial and at sentencing, Sami Anwar not only directed the fraud but engaged in threats, retaliation, and intimidation in order to hide his crimes from drug companies, the FDA, which regulates human clinical trials in the United States, and law enforcement. According to evidence presented at trial and at sentencing, numerous former employees of Sami Anwar testified that Anwar filed false police reports, made false allegations to the Washington State Department of Health, the FDA, threatened them at their homes, at their places of work, slashed their tires, and stalked them in order to prevent them from cooperating with the authorities.
In sentencing Mr. Anwar above the recommended sentencing guideline range, Judge Shea remarked that “the extent of the fraud is astounding” and noted that Mr. Anwar’s conduct “endangered countless lives.” Judge Shea further stated that Mr. Anwar’s “greed knew no limit” and that he was “a vengeful human being who sought to punish anyone who threatened [his] scheme.”
Mr. Anwar and his companies were also ordered to pay $1,890,550.10 in restitution to the victims of the fraud, to forfeit $5,648,786.69 as proceeds of the fraud, and to pay special penalty assessments of $24,300. Mr. Anwar was also sentenced to three years of supervised release following completion of his custodial sentence, with special conditions to protect his victims and former employees.
Mr. Hyslop further stated “I wish to especially commend the excellent work done by the investigative personnel with the Seattle and Spokane resident offices of the Drug Enforcement Administration’s Diversion Group. Their exceptional investigative work made this result possible. We will continue to work with our law enforcement partners to ensure that those who continue to abuse this trust and undermine our health care system are brought to justice.”
“Justifiably, Sami Anwar will be sitting behind bars for a very long time, thinking about his despicable actions that betrayed the American public and all the healthcare heroes who conduct lifesaving clinical trials every day,” stated Acting Special Agent in Charge Cam Strahm. “I commend the hard work of the DEA Diversion Investigators who stopped Anwar from further injecting fraudulent data into the public health system. This investigative action in Eastern Washington is part of a strategy in addressing illicit opioid access and diversion, currently endangering our communities.”
This case was investigated by the Drug Enforcement Administration, Diversion Group’s Seattle Field Division and Spokane District Office. The case was prosecuted by Dan Fruchter, Tyler H.L. Tornabene, and Brian Donovan, Assistant United States Attorneys for the Eastern District of Washington. The case caption is No. 4:18-cr-5064-EFS (E.D. Wash.).
Registered Nurse Pleads Guilty to Drug DiversionRead the Press Release
BOSTON – A Dighton registered nurse pleaded guilty today in federal court in Boston to drug tampering.
Marietta Strickland, 61, pleaded guilty to one count of tampering with a consumer product, specifically the Schedule II controlled substance oxycodone, which is used for pain relief. U.S. District Court Judge Indira Talwani scheduled sentencing for Jan. 19, 2021. Strickland was charged by Information in June 2020.
While working as a registered nurse at Dighton Care and Rehabilitation Center, Strickland tampered with three blister card packages of oxycodone prescribed to an 89-year-old hospice patient who suffered from Alzheimer’s disease, severe dementia and breast cancer. To avoid detection, Strickland replaced the stolen oxycodone pills with other prescription drugs disguised to look like oxycodone. As a result of Strickland’s tampering, the victim was deprived of her prescribed oxycodone for a month and ingested at least 77 unnecessary prescription tablets.
The charging statute provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Jeffrey Ebersole, Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations; Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General; and Acting Commissioner Margaret Cooke, of the Massachusetts Department of Public Health made the announcement today. Assistant U.S. Attorney Elysa Wan of Lelling’s Health Care Fraud Unit is prosecuting the case.
Ponte Vedra Man Pleads Guilty to Multiple Counts of Wire Fraud for Investment SchemeRead the Press Release
Jacksonville, Florida – Robert H. Hendricks (64, Ponte Vedra) has pleaded guilty to four counts of wire fraud. He faces a maximum penalty of 20 years in federal prison for each count. Hendricks has agreed to pay at least $2,682,924.34 in restitution to his victims. A sentencing date has not yet been set.
According to the
plea agreement , Hendricks was a licensed real estate broker in the Middle District of Florida. Hendricks told two of his victims, a husband and wife, who were his longtime friends, that he had been successful with commercial property development and needed money for another commercial property deal in central Florida. In October 2014, the husband paid Hendricks $300,000 as an investment into two commercial property ventures. Hendricks never used the funds for an investment. Instead, he used the funds for his personal benefit.On March 21, 2016, Hendricks received a wire transfer of $200,000 from another victim, who was also a friend. He told the victim that Wawa, a chain of convenience stores and gas stations, was establishing locations in Jacksonville and offered the victim a deal for four to five stores. The victim believed that three of the five locations were completed based, in part, on a contract from Hendricks that referenced a Wawa store at the St. Johns Town Center (SJTC), and other representations made by Hendricks. However, the store at the SJTC had already been built at the time of the investment. Hendricks was not involved in that Wawa project or any other Wawa deal involving the SJTC.
On April 18, 2016, Hendricks received a wire transfer of $490,000 from a lender for a property he had obtained from a longtime friend through misrepresentations. The victim agreed to temporarily transfer the property to Hendricks to enable him to pay for cleanup and obtain special insurance, but Hendricks did not need to pay for any cleanup and no special insurance was required. Instead, once the property was placed in Hendricks’s name, he obtained a $500,000 mortgage for his benefit, which he failed to repay and the property was awarded to the lender at auction.
On February 13, 2017, Hendricks received a wire transfer of $388,962.17 from a victim for a commercial property venture. Hendricks falsely claimed he had an interest in an LLC that owned a Home Depot and the victim could invest in it. However, the LLC was merely an LLC incorporated by Hendricks to further his fraudulent Home Depot investment scheme, and he did not own an interest in the LLC that owned the Home Depot.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Ashley Washington.
Plattsburgh Man Charged with Role in International KidnappingRead the Press Release
PLATTSBURGH, NEW YORK – Graigory Brown, age 50, of Plattsburgh, was charged yesterday with conspiring to kidnap an elderly couple from Moira, New York, and transport them across the border to Canada. The husband and wife were kidnapped on September 27, and safely rescued two days later in Canada.
The announcement was made by 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 New York State Police Superintendent Keith M. Corlett.
Brown appeared today before United States Magistrate Judge Gary L. Favro, and was ordered detained pending a detention hearing on October 6, 2020.
According to the complaint, on September 27, 2020, Brown and his co-conspirators forcibly entered the victims’ Franklin County home and kidnapped them. The victims were driven to Snye, Quebec, where they were put in a boat, taken to mainland Canada, and then transported to Quebec’s eastern townships where they were held for several days. While the victims were in Canada, Brown’s co-conspirators communicated ransom demands to one of the victims’ children. Officers from the Surete du Quebec rescued the victims from a house in Magog, Quebec, on September 29, 2020. Four of Brown’s alleged co-conspirators have been charged in Canada with crimes related to the kidnapping.
The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
Acting United States Attorney Antoinette T. Bacon stated: “According to the complaint, Brown and his co-conspirators put an elderly couple through a terrifying ordeal. I would like to thank our law enforcement partners, including the FBI, New York State Police, Surete du Quebec, and Akwesasne Mohawk Police, for bringing them home safely. We will continue to work together on both sides of the border to secure justice in this case and hold accountable all those involved in this horrific crime.”
FBI Special Agent in Charge Thomas F. Relford stated: “Mr. Brown’s alleged actions put an innocent couple in harm’s way during a truly terrifying situation. Through swift coordination with our law enforcement partners at NYS Police, Suerte du Quebec, and the Akwesasne Mohawk Police, we were able to bring the victims home safely and ensure justice will be served for those responsible for this despicable act.”
State Police Superintendent Keith M. Corlett stated: “I commend the work of our own members and our law enforcement partners for moving quickly to rescue the victims and track down those responsible for this disturbing crime. We will continue our close collaboration on this case, and we will not rest until all of those involved have been brought to justice.”
The charge filed against Brown carries a maximum sentence of life in prison, a fine of up to $250,000, and a 5-year term of supervised release. 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, New York State Police, Suerte du Quebec, Akwesasne Mohawk Police, Royal Canadian Mounted Police, Homeland Security Investigations, the Drug Enforcement Administration, and the Office of Franklin County District Attorney Craig Carriero. and is being prosecuted by Assistant U.S. Attorneys Douglas G. Collyer and Katherine Kopita.
Pennsylvania Man Sentenced in Drug Distribution CaseRead the Press Release
BOISE - Richard E. Wajda, of Gettysburg, Pennsylvania, was sentenced on October 1, 2020, to 24 months in prison for distribution of a controlled substance on October 1, 2020, U.S. Attorney Bart M. Davis announced today. Chief U.S. District Judge David C. Nye also ordered Wajda to serve one year of supervised release following his release from prison and pay a $4,000 fine and forfeit $6,000. Wajda pleaded guilty to the charge on July 7, 2020.
According to court records, On March 2, 2017, the defendant traveled to Idaho to visit. On or between March 2 and March 7, 2017, the defendant sold approximately 85 fentanyl 100 micrograms per hour patches, and 420 alprazolam 2 milligram tablets to a Boise resident for approximately $6,000. Fentanyl is a Schedule II controlled substance and alprazolam is a Schedule IV controlled substance. The defendant left Idaho on March 7, 2017. On or between March 8 and March 10, 2017, the person to whom the defendant sold the drugs died as a result of alprazolam and fentanyl intoxication.
The case was investigated by the Drug Enforcement Administration and the Ada County Sheriff’s Office.
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Pain Management Companies Agree to Pay $1 Million to Resolve Allegations They Violated the False Claims Act and Anti-Kickback StatuteRead the Press Release
United States Attorney Matthew D. Krueger announced today that Advanced Pain Management (“APM”) has agreed to pay $1 million to settle claims asserting violations of the False Claims Act by paying kickbacks and by performing medically unnecessary laboratory tests. APM is a collection of companies including Advanced Pain Management Holdings, Inc. (“APMH”), its wholly-owned subsidiaries APM Wisconsin MSO and Advanced Pain Management LLC, and Advanced Pain Management S.C. (“APM SC”).
The United States alleged that APMH improperly gifted shares of incentive stock to non-employee APM SC physicians who performed pain management procedures at APMH’s ambulatory surgical centers. The incentive stock was to be redeemed upon a sale of APMH and was dependent on the profitability of APMH, which was determined largely by referrals from the non-employee physicians. The incentive stock was allegedly given as a reward for past and anticipated referrals to APMH’s ambulatory service centers.
The United States further contended that APMH paid non-employee physicians to serve as medical directors in a manner that was tied to the volume of procedures at APMH’s ambulatory surgery centers. There were no written agreements documenting the services the medical directors were to provide, and the medical directors were not required to record or report any medical director functions.
The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by federally funded programs. The Anti-Kickback Statute is intended to ensure that a physician’s medical judgment is not compromised by improper financial incentives and is instead based on the best interests of the patient.
The United States also alleged that APM performed confirmatory urine drug tests that were medically unnecessary. For certain claims, providers allegedly failed to customize orders for confirmatory urine drug tests based on each patient’s individualized risk assessment and circumstances, resulting in a higher level of testing than supported by the medical record. APM disclosed these improper urine drug test claims to the Department of Health and Human Services.
“Healthcare providers must make recommendations about their patients’ health without respect to their own financial interests,” said Acting Assistant Attorney General Ethan P. Davis for the Department of Justice’s Civil Division. “We will continue to do our part to protect federal health care program beneficiaries and the American taxpayers from the corrupting influence of kickbacks designed to undermine the impartiality and integrity of physician decisionmaking.”
“The financial arrangements pursued by APMH wrongly gave physicians an incentive to make medical decisions based on their own financial interests, rather than their patients’ interests,” said U.S. Attorney Krueger. “Medicare and Medicaid only pay for procedures and tests that are medically necessary and untainted by kickbacks. This settlement reflects our office’s continuing efforts to combat violations of the False Claims Act and improper arrangements under the Anti-Kickback Statute.”
“It is imperative that the public has faith and trust that the decisions made by medical providers are based upon the best interests of their patients” said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General – Chicago Region. “The specter of a payment of a kickback in any form or fashion diminishes that faith and trust and can lead to the improper payment and wasting of limited taxpayer dollars. The OIG will continue to work with our investigative partners to ensure the continued integrity of federally funded health care programs.”
The government’s lawsuit resulted from a whistleblower complaint filed under the qui tam provisions of the False Claims Act. Accordingly, the whistleblower will receive a share of the settlement. The lawsuit is captioned United States, et al. ex rel. Hedstrom v. Advanced Pain Mgmt., et al., Case No. 13-C-556, and is pending in the District Court for the Eastern District of Wisconsin.
APM’s settlement with the United States is based on ability to pay, and is part of a broader settlement that also resolves various state law claims.
Assistant United States Attorney Lisa Yun represented the government in this matter, with assistance from the Justice Department’s Civil Division, the U.S. Department of Health and Human Services Office of Inspector General, and the FBI. The settlement agreement states allegations only; APM does not admit liability for the allegations.
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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Owner of Medical Laboratory Sentenced to Prison for Filing False Tax ReturnsRead the Press Release
A Shreveport, Louisiana, business owner was sentenced to 40 months in prison on Sept. 30, 2020, for filing false tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and Acting U.S. Attorney for the Western District of Louisiana Alexander C. Van Hook.
According to documents and information provided to the court, Robert C. Poimboeuf was a part owner of D&G Holdings LLC, a medical laboratory in the Shreveport area. From 2011 through 2015, Poimboeuf filed false tax returns that underreported gross receipts earned from his business. Poimboeuf concealed from his tax return preparers at least two bank accounts reflecting income earned, and falsely characterized business receipts as non-taxable loans. As a result of these actions, Poimboeuf caused a tax loss of more than $1.9 million to the IRS.
In addition to the term of imprisonment, U.S. District Judge Maurice Hicks Jr., ordered Poimboeuf to serve 1 year of supervised release and to pay restitution to the IRS in the amount of $1,904,477.
Principal Deputy Assistant Attorney General Zuckerman and Acting U.S. Attorney Van Hook thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorney Kevin Schneider of the Tax Division, who assisted Acting U.S. Attorney Van Hook in the prosecution of the case.
Operation Legend: Case of the DayRead the Press Release
Each weekday, the Department of Justice will highlight a case that has resulted from Operation Legend. Today’s case is out of the District of New Mexico. Operation Legend launched in Albuquerque on July 22, 2020, in response to the city facing increased homicide and non-fatal shooting rates.
An Albuquerque man was charged on Sept. 29, 2020, in federal court for possessing fentanyl, heroin, and more than a kilo of methamphetamine, as well as four firearms.
Toby Randall Walker, 36, was charged with possession with intent to distribute 500 grams and more of a mixture and substance containing methamphetamine, possession with intent to distribute 40 grams and more of fentanyl, possession with intent to distribute heroin and possession of a firearm in furtherance of drug trafficking.
According to the charging documents, on Sept. 29, agents from the Drug Enforcement Administration encountered Walker and located 1,490 grams of methamphetamine, 53.7 grams of fentanyl and 67 grams of heroin in his vehicle. Agents also located four firearms.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Background on Operation Legend
Since its inception, Operation Legend has yielded more than 3,500 local, state, and federal arrests, with more than 800 defendants charged with federal crimes.
President Trump promised to assist America’s cities that have been plagued by violence. In July, Attorney General William P. Barr announced the launch of Operation Legend, a sustained, systematic and coordinated law enforcement initiative across all federal law enforcement agencies working in conjunction with state and local law enforcement officials to fight violent crime in cities across America that were experiencing an uptick in violence. Operation Legend is named after four-year-old LeGend Taliferro, who was shot and killed on June 29th in Kansas City, Missouri, while asleep in his home.
Operation Legend was launched in Kansas City, Mo., on July 8, 2020, and expanded to Chicago and Albuquerque on July 22, 2020; to Cleveland, Detroit, and Milwaukee on July 29, 2020; to St. Louis and Memphis on Aug. 6, 2020; and to Indianapolis on Aug. 14, 2020. As part of Operation Legend, Attorney General Barr has directed federal agents from the FBI, U.S. Marshals Service, DEA and ATF to surge resources to these cities to help state and local officials fighting violent crime. The Department of Homeland Security is also contributing agents to these efforts in St. Louis.
Ohio woman admits to role in drug conspiracyRead the Press Release
WHEELING, WEST VIRGINIA – Marisa Page, of Columbus, Ohio has admitted to her role in a drug conspiracy that spanned several states, U.S. Attorney Bill Powell announced.
Page, 28, pled guilty to one count of “Conspiracy to Distribute and to Possess with the Intent to Distribute Controlled Substances.” Page admitted to working with others to traffic methamphetamine, cocaine and heroin in Wetzel County, Ohio, Georgia, as well as into the southern district of West Virginia.
Page faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Robert H. McWilliams, Jr. is prosecuting the case on behalf of the government. The Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the West Virginia State Police, the Wetzel County Sheriff’s Office, the Marshall County Sheriff’s Office, and the New Martinsville Police Department investigated.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
U.S. Magistrate Judge James P. Mazzone presided.
New York Physical Therapy Providers Settle Civil Healthcare Fraud AllegationsRead the Press Release
Williamsburg Physical Therapy, P.C. and Euro Physical Therapy, P.C. have agreed to pay the United States and the State of New York $4 million to resolve civil allegations that they falsely billed Medicare, Medicaid, the Federal Employees’ Compensation Act Program (FECA) and the Federal Employees’ Health Benefits Program (FEHBP) for physical therapy services from 2008 to 2018. The settlement also resolves claims against the owners of the two physical therapy practices, Alex Klurfeld and Diana Klurfeld, and First Plus Services, Inc., a management company associated with the practices.
Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York; Matthew Modafferi, Special Agent-in-Charge, United States Postal Service, Office of the Inspector General (USPIS-OIG); Michael Mikulka, Special Agent-in-Charge, U.S. Department of Labor, Office of Inspector General, New York Regional Office (DOL-OIG); and Norbert E. Vint, Deputy Inspector General Performing the Duties of the Inspector General, Office of Personnel Management (OPM OIG), announced the settlement. Mr. DuCharme thanked the Office of the Inspector General for Health and Human Services and Office of the New York State Attorney General for their assistance in the investigation.
Williamsburg Physical Therapy and Euro Physical Therapy are New York professional corporations owned and operated by Alex Klurfeld, a physical therapist, and Diana Klurfeld, his wife, that provide physical therapy to the public, including to Medicare, FECA, FEHBP, and Medicaid beneficiaries in the New York City. Williamsburg Physical Therapy and Euro Physical Therapy have operated under those names and others at the following addresses:
* 240 South 3rd Street, Brooklyn
* 182 Havermayer Street, Brooklyn
* 705 Manhattan Avenue, Brooklyn
* 37-49 91st Street, Queens
* 452 Fort Washington Avenue, Manhattan
* 601 West 182nd Street, Manhattan
* 3224 Grand Concourse, Bronx
First Plus Service, Inc. is a New York corporation owned and operated by Diana Klurfeld that conducts administrative services for Williamsburg Physical Therapy and Euro Physical Therapy, including medical billing and payroll.
The settlement resolves allegations that the defendants submitted false claims to federal healthcare programs for physical therapy services provided or supervised by someone other than the licensed physical therapist identified on the claim, including unlicensed aides. The settlement also resolves claims that the defendants wrongfully backdated services after treatment authorizations had expired.
“Physical therapy performed by persons who are neither licensed nor supervised by licensed therapists may jeopardize patient health. The knowing submission of claims for payment for such services to federally-funded health programs also defrauds taxpayers. This settlement reaffirms this Office’s commitment to rooting out health care fraud and practices that may cause harm to patients,” stated Acting U.S. Attorney DuCharme.
“This settlement sends a clear message that the government is dedicated to protecting the rights of patients and ridding corruption from federal benefit programs. The U.S. Postal Service Office of Inspector General would like to thank our law enforcement partners for their commitment and efforts in this investigation. The USPS OIG will continue to vigorously investigate those who engage in activities to defraud federal benefit programs and the U.S. Postal Service,” stated USPIS-OIG Special Agent-in-Charge Modafferi.
“Ensuring the integrity of the Department’s Workers Compensation Programs is an important part of the mission of the Office of Inspector General. We will continue to work with our law enforcement partners to vigorously pursue those that engage in fraud involving programs administered by the U.S. Department of Labor,” stated DOL-OIG Special Agent-in-Charge Mikulka.
“The OPM OIG is committed to holding providers accountable for fraudulent claims,” stated OPM Deputy Inspector General Vint. “This settlement is a result of the hard work of our investigative staff and our partners at the Department of Justice.”
The allegations were brought to the government’s attention through the filing of a complaint pursuant to the qui tam provisions of the False Claims Act. Under the Act, private citizens can bring suit on behalf of the United States and share in any recovery. The claims resolved by the settlement are allegations only; there has been no determination of liability.
The United States’ case was handled by Assistant United States Attorney Lisa Kutlin of the Office’s Civil Division, with assistance from Affirmative Civil Enforcement Auditor Michael Gambrell.
E.D.N.Y. Docket No.: 16-CV-4819 (WFK)
New Haven Woman Admits Lying to Federal Grand Jury about Knowledge of Kidnapping and Triple HomicideRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that LAQUASIA SAMMS, also known as “Quasia,” 26, of New Haven, pleaded guilty yesterday before U.S. District Judge Kari A. Dooley in Bridgeport to making false statements before a federal grand jury in connection with an investigation into the kidnapping and murder of two individuals, and the related murder of a third individual, in November 2015.
According to court documents and statements made in court, on November 16, 2015, Samms was present when an illegal firearm transaction was occurring in her apartment on Shelton Avenue in New Haven. Damian Connor and Tamar Lawrence were also present in the apartment. When an individual left the apartment with firearms that he had not paid for, the individual whose firearms were taken held Connor and Lawrence against their will. Connor and Lawrence were robbed of money and valuables, and then forced to travel in Connor’s car to Hamden where Connor said he could get more money. They were followed in another vehicle by Devante Williams and another individual. After the vehicles arrived at 676 Mix Avenue in Hamden, Connor and Lawrence were shot and killed. Williams was shot and killed a short time later in the area of Sherman Court in New Haven.
During the kidnapping, and after the three victims were murdered, Samms sent several text messages to another individual about what was happening and her reaction to the events.
On March 19, 2019, Samms appeared before a grand jury in New Haven. During her testimony, Samms repeatedly claimed that she did not remember sending any text messages related to the gun transaction, the kidnapping, or the murder of the three individuals.
In pleading guilty, Samms admitted that she sent the text messages, and that she withheld other information that was sought by the federal grand jury.
Judge Dooley scheduled sentencing for December 28, 2020, at which time Samms faces a maximum term of imprisonment of five years.
On December 9, 2019, the grand jury returned an indictment charging Edward Michael Parks, also known as “Lee” and “Trouble,” 34, of Raleigh, North Carolina, with kidnapping and murdering the two individuals in Hamden, and killing the third victim in New Haven to stop him from advising law enforcement what had occurred. Parks is awaiting trial, and U.S. Attorney Durham stressed that an indictment is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the Federal Bureau of Investigation, the Hamden Police Department and New Haven Police Department.
The case is being prosecuted by Assistant U.S. Attorneys Anthony E. Kaplan, Peter D. Markle and Jocelyn C. Kaoutzanis, and Assistant State’s Attorney Seth Garbarsky, who has been cross-designated as a Special Assistant U.S. Attorney in this matter.
NDTX Round-Up: September 25 – October 1Read the Press Release
SENTENCING – JERARDO ALVAREZ
On September 29, Jerardo Alvarez, 35, was sentenced was sentenced to 5 years in federal prison for aiding and abetting foreign travel in aid of racketeering. Customs and Border Protection officers in Laredo identified a shipment of 200 kilograms of methamphetamine headed to a Dallas, Texas address from Mexico. DEA undercover agents coordinated delivery of the methamphetamine with a Mexico-based drug dealer. The Mexican drug dealer directed the undercover agents to contact Alvarez. Upon transfer, Alvarez signed the delivery manifest acknowledging receipt of the 48 buckets of the methamphetamine and was taken into custody by law enforcement. This case was investigated by the Drug Enforcement Administration. Assistant U.S. Attorney Suzanna Etessam prosecuted the case.
GUILTY PLEA – LEONARD TANNIEHILL
On September 29, Leonard Tanniehill, 20, plead guilty to interference with commerce by robbery. Tanniehill and coconspirators robbed two gas stations located in Irving and Dallas. While robbing the station in Irving, Tanniehill was a passenger in the “getaway” vehicle. He also disguised his identity before entering and robbing a gas station in Dallas. Tanniehill split the proceeds from the two robberies along with other coconspirtions. Tanniehill faces up to 20 years in federal prison for his crimes. This case was investigated by the FBI and the Dallas Police Department. Assistant U.S. Attorney Damien Diggs is prosecuting this case.
GUILTY PLEA – MIGUEL ANGEL SAUSTEGUI-PEREZ
On September 29, Miguel Angel Saustegui-Perez, 30, plead guilty to possession with intent to distribute a controlled substance. Saustegui-Perez visited a Dallas apartment to collect methamphetamine for further distribution. He was arrested while exiting the apartment. Law enforcement executed a search warrant on the apartment and recovered recovered 19 clear gallon sized zip-lock bags containing methamphetamine, $72,122, and a drug ledger. Saustegui-Perez faces up to 40 years in federal prison for his crimes. This case was investigated by the Drug Enforcement Administration. Assistant U.S. Attorney Kull is prosecuting this case.
SENTENCING – DEANNA JEFFERSON SMITH
On September 30, Deanna Jefferson Smith, 52, was sentenced to two years’ probation with the condition that she cannot practice law while on probation for theft in connection to health care. Deanna Jefferson Smith, a former municipal judge with the City of Dallas, met and became with Alicia Belfrey-Farley, a federal employee with the Bureau of Prisons. Belfrey-Farley listed Jefferson Smith’s children as Belfrey-Farley’s dependents on her health insurance policy through the Federal Employee Health Benefits Program. Belfrey-Farley also listed also listed Jefferson Smith as a dependent on the SF 2809 Health Benefits Election Form. The total billed cost of the services received by Jefferson Smith's children was approximately $28,000 and Blue Cross Blue Shield paid the providers at least $12,316.00 for the services. This case was investigated by the Department of Justice’s Inspector General. Assistant U.S. Attorney John De La Garza prosecuted this case.
SENTENCING – IAN MOHN
On October 1, Ian Mohn, 27, was sentenced to 15 months in federal prison for making false statements to a federal agent. Mohn reported knowledge of human trafficking in Wisconsin during an interview conducted with the FBI. Agents in Lubbock and Milwaukee spent hours vetting Mohn’s story and requesting additional information which he could not provide. In a second interview with FBI agents, Mohn spent over four hours providing details of the false human trafficking story to law enforcement. At the end of the interview, Mohn admitted that the entire story was fraudulent. This case was investigated by the FBI. Assistant U.S. Attorney Callie Woolam prosecuted this case.
GUILTY PLEA – BRODERICK WALKER
On October 1, Broderick Walker, 40, plead guilty to conspiracy to commit money laundering. Walker engaged in schemes to defraud the IRS by obtaining stolen tax refunds that had been produced through electronic filings of false and fraudulent U.S Individual Income Tax Returns. Walker used stolen PII belonging to deceased individuals. He admitted that the unlawful financial transactions totaled $27,457.07 Walker faces up to 5 years in federal prison for his crimes. This case was investigated by the IRS – Criminal Investigation. Assistant U.S. Attorney Gregory Martin is prosecuting this case.
Mifflin County Man Charged with Drug TraffickingRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on September 30, 2020, Gerald McFadden, age 36, of Lewistown, Pennsylvania, was indicted by a federal grand jury on drug trafficking offenses.
According to United States Attorney David J. Freed, the indictment charges McFadden with conspiracy to distribute and possess with intent to distribute crack cocaine and heroin between August 17, 2019 and October 17, 2019, in Mifflin County. The indictment also charges McFadden with 15 separate instances of possession with intent to distribute crack cocaine and heroin, and one count of possession with the intent to distribute more than 28 grams of crack cocaine.
This case was investigated by the FBI, the Pennsylvania State Police, and the Mifflin County Drug Task Force. Assistant U.S. Attorney Christian T. Haugsby is prosecuting the case.
Indictments are only allegations. All persons charged by indictment 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.
Based upon the weight of the drugs involved in the alleged conspiracy, the maximum penalties that may be imposed upon conviction are 40 years’ imprisonment and a $5 million fine. A sentence for these drug trafficking offenses also includes a period of supervised release following imprisonment. Under the Federal Sentencing Guidelines, the Judge is required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Meridian Man Sentenced to 10 Years in Prison Under Project EJECT for Illegally Possessing Firearms in Furtherance of a Drug Trafficking CrimeRead the Press Release
Jackson, Miss. – Roderick Dunshaw Tingle, 38, of Meridian, Mississippi, was sentenced yesterday by U.S. District Judge Carlton W. Reeves to 10 years in federal prison, followed by 5 years of supervised release, for possessing firearms in furtherance of a drug trafficking crime, announced U.S. Attorney Mike Hurst and Kurt Thielhorn, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives. Tingle was also ordered to pay a $1,000.00 fine.
On March 22, 2019, Meridian Police Department officers responded to a residential burglary alarm at a house on 23rd Avenue in Meridian, Mississippi. Officers found that a window in the back door had been broken and the back door was open. When the officers entered the house to see if anyone was inside, they found marijuana on the kitchen counter along with baggies and scales. A search warrant was obtained for the home and three pounds of marijuana was found along with six firearms. The firearms consisted of four pistols and two assault-style rifles.
Various pieces of identifying evidence, such as family pictures and birth certificates, lead officers to believe that the house was occupied by Roderick Dunshaw Tingle. Various neighbors gave statements indicating they believed that drug sales might be occurring at the house, due to the large number of cars stopping by very frequently. A neighbor also identified Tingle as the resident of the house. When interviewed by law enforcement officers, Tingle denied that the guns or the marijuana belonged to him. Tingle gave a name and telephone number for a person he said owned the guns. A records check showed that account for that phone number was in the name of Roderick D. Tingle.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Meridian Police Department. It is being prosecuted by Assistant United States Attorney Charles W. Kirkham.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) and Project Guardian. EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime through prosecution, prevention, re-entry and awareness. EJECT stands for “Empower Justice Expel Crime Together.” PSN is bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
Massachusetts Man Sentenced to 41 Months for Drug Trafficking ConvictionRead the Press Release
ALBANY, NEW YORK – Alexander Yaksic, age 28, of Everett, Massachusetts, was sentenced today to serve 41 months in federal prison for participating in a conspiracy to distribute MDMA, also known by its street name ecstasy.
The announcement was made by Acting United States Attorney Antoinette T. Bacon and Kevin Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
United States District Judge Mae A. D’Agostino also sentenced Yaksic to serve a 3-year term of supervised release following his release from prison.
Yaksic pled guilty on October 22, 2019. At that time, he admitted that he used the Internet’s “dark web” to import at least 30 kilograms of MDMA from overseas suppliers and then distributed that MDMA to customers throughout the United States. “Dark web” generally refers to web sites not accessible through ordinary web browsers and search engines, and which individuals can access through an anonymizing browser, without having to provide their computer identifying information.
This case was investigated by HSI, and prosecuted by Assistant U.S. Attorneys Wayne A. Myers and Shira Hoffman.
Marlborough Man Charged with Child Exploitation OffensesRead the Press Release
BOSTON – A Marlborough man was arrested on charges of child exploitation.
Philip Raymond, 63, was indicted on 13 counts of sexual exploitation of minors, and attempt. Raymond was arrested last night and will make an initial appearance in federal court in Boston today.
The indictment alleges that between 2004 and 2012, Raymond produced or attempted to produce child pornography involving 13 different minors.
The charging statute provides for a minimum mandatory sentence of 15 years and up to 30 years in prison per count, at least five years and up to life of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigation, Boston Field Office; Middlesex District Attorney Marian Ryan; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Marlborough Police Chief Joseph Perkins made the announcement today. Assistant U.S. Attorney Anne Paruti, Lelling’s Project Safe Childhood Coordinator and a member of the Major Crimes Unit, is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The details contained in the charging document are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Market owners who redeemed more than $10M in food stamp, WIC benefits plead guilty to fraud conspiracyRead the Press Release
COLUMBUS, Ohio – Hassan and Abdurahim Nuriso, owners of the Somali specialty market Towfiq Market on Sullivant Avenue, pleaded guilty in U.S. District Court today to conspiring to commit food stamp and WIC fraud. The brothers redeemed more than $10 million in SNAP and WIC benefits at their store between 2010 and 2019.
A federal grand jury charged the pair in February 2020.
As part of the conspiracy, brothers Hassan, 40, and Abdurahim Nuriso, 47, converted illegally obtained food stamp benefits, WIC coupons and WIC electronic benefits into money, in order to use the money for other purposes.
The defendants allowed SNAP and WIC beneficiaries to purchase items that were not redeemable through the food stamp or WIC programs.
In total, Hassan and Abdurahim Nuriso redeemed in excess of $8 million of SNAP benefits and nearly $2.1 million in WIC benefits at Towfiq Market between 2010 and November 2019.
As part of their pleas, the Nurisos will forfeit nearly $245,000. Approximately $18,650 in cash was seized during a federal search and seizure warrant at one of the Nuriso brother’s homes in Grove City in November 2018. More than $10,000 was seized during during the execution of a federal search and seizure warrant at Towfiq Market.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI),Cincinnati Division; and Anthony V. Mohatt, Special Agent in Charge, U.S. Department of Agriculture, Office of Inspector General, announced the pleas entered into today before Chief U.S. District Judge Algenon L. Marbley. Assistant United States Attorney Brenda S. Shoemaker is representing the United States in this case.
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Man from Iyanbito, New Mexico, pleads guilty to assaulting a federal officerRead the Press Release
ALBUQUERQUE, N.M. – Jarvis Myiah Delgarito, 21, of Iyanbito, New Mexico, and an enrolled member of the Navajo Nation, pleaded guilty in federal court on Sept. 29 to an information charging him with assault upon a federal officer.
According to court records, Delgarito admitted that late in the evening of Feb. 12, he was arrested on the charge of driving while intoxicated and taken to the Isleta Police Department booking room for processing. While there, he became upset and head-butted a Special Law Enforcement Commissioned officer. He also kicked the officer’s calf several times. As a result of the altercation, the officer suffered bruising on her face, scratches on her hands and a contusion on her head. The attack took place within the exterior boundaries of the Pueblo of Isleta in Bernalillo County.
Delgarito is in custody pending sentencing, which has yet to be scheduled. He faces a maximum of eight years in prison.
The Isleta Pueblo Police Department investigated this case. Assistant U.S. Attorney Jennifer Rozzoni is prosecuting the case.
Mail and Identity Thief Sent Back to Federal Prison After Escaping from Waterloo Halfway HouseRead the Press Release
A Cedar Rapids man who was previously convicted of mail and identity theft and who signed out of a Waterloo halfway house for work and never returned was sentenced October 1, 2020, to nearly two years in federal prison.
Darrell Clark Turner, age 53, from Cedar Rapids, Iowa, received the prison term after his guilty plea to one count of escape from custody.
In a plea agreement, Turner admitted that, in October 2017, he was sentenced to 38 months’ imprisonment and three years of supervised release after pleading guilty in federal court to possessing stolen mail matter and aggravated identity theft. Turner was released from prison in June 2019. After Turner violated his supervised release conditions, a federal judge ordered Turner to reside in a Waterloo halfway house. On February 25, 2019, while a resident of the halfway house, Turner signed out for work but was a “no call, no show” for work. He never returned to the halfway house. The United States Marshal’s Service arrested Turner on March 10, 2020.
Turner was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Turner was sentenced to 23 months of imprisonment. Turner must also serve a new three-year term of supervised release after the prison term. There is no parole in the federal system.
Turner has an extensive criminal history, including more than 35 convictions. Turner committed more than ten of those crimes while under court-ordered supervision for other crimes. This is Turner’s third escape conviction.
Turner is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Tim Vavricek and investigated by the United States Marshal’s Service.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file numbers are 20-CR-2019 and 17-CR-17.
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Milwaukee Man Sentenced to 14½ Years in Federal Prison for Arson and Armed RobberyRead the Press Release
Matthew D. Krueger, U.S. Attorney for the Eastern District of Wisconsin, announced that on October 1, 2020, United States District Judge J.P. Stadtmueller sentenced Edward B. Burgess (28) of Milwaukee, Wisconsin, to 174 months in prison for Arson and Hobbs Act Armed Robbery. Burgess pled guilty to one count of Arson, in violation of Title 18, United States Code, Section 844(i), on August 28, 2019. Burgess pled guilty to one count of Hobbs Act Robbery, in violation of Title 18, United States Code, Section 1951(a), and one count of brandishing a firearm during and in relation to a crime of violence, in violation of Title 18, United States Code, Section 924(c), on October 18, 2019.
According to court records, on December 7, 2018, after a domestic violence incident, Burgess set fire to a rental unit he lived in with his girlfriend and the mother of his children. Luckily, nobody was home at the time of the fire, but the residence was completely destroyed. Four months later, in April 2019, Burgess brandished a firearm during a robbery of a Metro PCS store in the city of Milwaukee.
At sentencing, Judge Stadtmueller noted that the violence exhibited by Burgess was “unacceptable.” He stated that the crimes carried a significant risk of death and that they were among the “most serious” crimes that are brought before the Court. Judge Stadtmueller further noted that the extremely violent nature of Burgess’s crimes warranted a significant period of incarceration.
“Burgess’s violent disregard for others means he will spend over a decade in federal prison. This case underscores the Justice Department’s commitment to combat the extreme levels of violent crime that plague Milwaukee,” said U.S. Attorney Krueger.
“Arson is a violent and serious crime and we appreciate the investigative partnership with the Milwaukee Police Department in investigating this case as well as the United States Attorney’s office for their diligence in prosecuting this individual,” remarked ATF Special Agent in Charge Kristen de Tineo of the Chicago Field Division.”
The arson case was investigated by the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives. The armed robbery case was investigated by the FBI's Milwaukee Area Violent Crimes Task Force, the Milwaukee County District Attorney’s Investigators, and the Milwaukee Police Department. It was prosecuted by Assistant United States Attorney Julie F. Stewart, Farris Martini, and Benjamin Taibleson.
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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Lubbock Man Allegedly Plotting Mass Shooting Pleads Guilty to Making False Statements to Firearms DealerRead the Press Release
A Lubbock man who allegedly plotted a mass shooting pleaded guilty today to making false statements to a federally-licensed firearms dealer, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
William Patrick Williams, 20, was charged via criminal complaint in August 2019 with making a false statements during the purchase of a firearm. He pleaded guilty today before U.S. Magistrate Judge D. Gordon Bryant, Jr., in Lubbock.
According to the criminal complaint, Mr. Williams told his grandmother he had recently purchased an AK-47 rifle and planned to “shoot up” a local hotel and then commit suicide by cop. Sensing he was both homicidal and suicidal, she convinced him to allow her to bring him to a local hospital instead.
Mr. Williams gave officers consent to search the room he had rented at the hotel, where officers found an AK-47 rifle, seventeen magazines loaded with ammunition, multiple knives, a black trench coat, black tactical pants, a black t-shirt that read “Let ‘Em Come,” and black tactical gloves with the fingers cut off. Mr. Williams told officers he had laid out his weapons on the bed so that law enforcement could take custody of them.
ATF received the firearms transaction form (Form 4473) that Williams had completed when purchasing the AK-47. On the form, Mr. Williams listed an address where he no longer resided.
According to court documents, agents discovered that Mr. Williams was actually living with a roommate at a different residence and had been residing there for a month or longer at the time he completed the Form 4473. Mr. Williams admitted to misrepresenting his current address on the firearms transaction form.
“This defendant subverted important firearms laws to obtain a weapon with the intention of producing mass fatalities,” said U.S. Attorney Erin Nealy Cox. “Thanks to the efforts of the defendant’s family members and law enforcement, this tragedy has been averted. If you suspect a friend or loved one is planning violence against themselves or others, do not hesitate to seek help immediately by calling law enforcement.”
“Federal firearms laws are designed to keep weapons from those that shouldn’t have them. This case shows that public cooperation with law enforcement is essential in preventing horrific acts of violence. ATF will continue to work tirelessly with its’ partners to keep firearms out of the hands of those that aim to cause harm”, said ATF Special Agent in Charge Jeffrey C. Boshek II.
“The FBI and our partners at the ATF and Lubbock Police Department were able to respond quickly and stop Mr. Williams from harming anyone or himself,” said Matthew DeSarno, Special Agent in Charge of the Dallas Field Office. “We will continue working with our law enforcement partners to protect the communities we serve.”
Mr. Williams faces up to five years in federal prison for his crime. A sentencing date has not been set.
The Lubbock Police Department, the Bureau of Alcohol, Tobacco, Firearms & Explosives, and the Federal Bureau of Investigation conducted the investigation. Assistant U.S. Attorneys Jeffrey Haag, NDTX’s West Texas Branch Chief, and Stephen Rancourt are prosecuting the case.
Louisiana United States Attorneys Announce $26,541,823 in Awards to Address Local Criminal Justice Needs and Victim Rights Issues in LouisianaRead the Press Release
NEW ORLEANS, LA – United States Attorney Peter G. Strasser, United States Attorney Brandon J. Fremin, Middle District of Louisiana, and Acting United States Attorney Alexander C. Van Hook, Western District of Louisiana, jointly announce that the State of Louisiana received a total of $26,541,823 in six United States Department of Justice grants to respond to critical issues in local law enforcement and victims’ rights and services.
Three grants were awarded to the Louisiana Commission on Law Enforcement (LCLE). The first award in the amount of $23,490,366 provides funds from the federal Crime Victims Fund to enhance crime victim services in the state. The second award of $1,414,000 provides funds from the Crime Victims Fund to enhance State Victim Compensation payments to eligible crime victims. And third, $190,769 was awarded to the Louisiana Statistical Analysis Center (SAC), which is the research division of the LCLE. LSAC has been tasked with assessing how law enforcement in the State of Louisiana is meeting the challenge of the present opioid crisis.
In addition, the Louisiana Commission on Law Enforcement and Administration of Criminal Justice has been awarded $770,806. The purpose of this program is to support state and local delinquency prevention and intervention efforts and juvenile justice system improvements. Supported activities and efforts may include planning and administration and development of more effective education, training, research, prevention, diversion, treatment, and rehabilitation programs in the area of juvenile delinquency and programs to enhance the effectiveness of the juvenile justice system.
As a final matter, the East Baton Rouge Sheriff’s Office was awarded $177,123 to fund a broad range of activities to prevent and control crime based on the parish’s specific needs and conditions, and the Louisiana Department of Public Safety and Corrections was awarded $498,759 to continue implementing the Adult Reentry and Employment Strategic Planning Program.
U.S. Attorney Fremin stated, “The federal grant money distributed to our state and local partners exemplifies the Department of Justice’s commitment to provide resources to address critical issues in local law enforcement and to vigorously support victims’ rights and services. Awards, such as these, promote the continuing success of our joint federal, state and local law enforcement efforts to ensure the safety of our community and to support those citizens who have been victimized.”
U.S. Attorney Strasser stated, “The announcement of Louisiana’s awards highlights the commitment from the Department of Justice to afford law enforcement the opportunity to implement innovative programs needed to respond to critical issues in local law enforcement, victims’ rights and services and juvenile justice system services and improvements.”
Acting U.S. Attorney Van Hook stated, “Every defendant that is convicted of a federal crime is ordered to pay an assessment which goes to the Crime Victims’ Fund. Federal grants such as these that have been awarded to the Louisiana Commission on Law Enforcement are an example of how those funds are passed on to local agencies and of how justice is serving victims of crime in the State of Louisiana. We will continue to pursue justice for the people in the Western District of Louisiana and throughout the state.”
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Los Angeles Woman Sentenced to 168 Months for Drug Trafficking and Money LaunderingRead the Press Release
LEXINGTON, Ky. - A Los Angeles woman, Katherine E. Matthews, 41, was sentenced in federal court on Friday, to 168 months in prison, by U.S. District Judge Karen Caldwell, for conspiring to distribute cocaine and marijuana, along with conspiring to commit money laundering offenses.
According to testimony at trial, Matthews partnered with Robert W. Carlson to move cocaine, belonging to the Sinaloa Cartel, from California to Eastern cities including Lexington, Louisville, New York, Charlotte, Atlanta, and Miami, using private planes. Over the course of the conspiracy, Matthews moved thousands of kilograms of cocaine to these cities. She also brought millions of dollars from the Eastern cities back to California, to be handed over to the cartel.
Matthews was convicted in April 2020. Her charges stemmed from a larger investigation into drug trafficking and money laundering activities that was precipitated by a drug seizure from a private plane that arrived, from Van Nuys Airport in Southern California, at Bluegrass Airport in Lexington, in April 2017.
Before Matthews’s trial, several other defendants involved in the conspiracy pleaded guilty. Carlson pleaded guilty to conspiring to distribute five kilograms or more of cocaine in February 2018. In his plea agreement, Carlson admitted to conspiring with Isaac Basilio Rosas, Cedric Allen Oronce Fajardo, and others to transport and distribute drugs found on the plane that landed in Lexington in April 2017. Carlson also admitted to planning and organizing that trip. Carlson was sentenced to 200 months in prison and five years of supervised release in October 2019. Basilio Rosas pleaded guilty to conspiring to distribute five kilograms or more of cocaine in January 2018. He was sentenced to 108 months in prison in May 2018. Oronce Fajardo pleaded guilty to conspiring to distribute five kilograms or more of cocaine in July 2017. He was sentenced to 48 months’ imprisonment in June 2020.
Two other defendants, Robert Earl Wallace and Kendra Michelle Caprice Tally also pleaded guilty for their roles in the drug conspiracy. In February 2020, Wallace pleaded guilty to conspiring to distribute cocaine. Wallace, a private pilot, admitted in his plea agreement that he flew as many as ten trips for Carlson and his associates, where drugs and/or drug proceeds were moved to locations across the country. Wallace admitted that he did at least one of those trips after he learned the trips’ purpose and that that trip involved moving at least 80 kilograms of cocaine. Wallace was sentenced to 60 months of imprisonment on October 2, 2020, and he also received five years of supervised release.
Tally, who was a passenger on a flight that landed in Lexington in April 2017, with cocaine and methamphetamine on the plane, pleaded guilty in February 2020 to the felony offense of lying to federal agents. She admitted in her plea agreement that she knew that there were controlled substances on the flight, but falsely told Homeland Security agents that she did not know the plane was carrying controlled substances. Tally was sentenced to a three-year term of probation.
Under federal law, Matthews must serve 85 percent of her prison sentence. Upon her release, she will be under the supervision of the U.S. Probation Office for eight years.
Robert M. Duncan, Jr., U.S. Attorney for the Eastern District of Kentucky ; Steven L. Igyarto, Resident Agent in Charge, Department of Homeland Security, Homeland Security Investigations; and Rodney L. Brewer, Commissioner of the Kentucky State Police, jointly made the announcement.
The Department of Homeland Security and the Kentucky State Police conducted the investigation, with assistance from the Federal Aviation Administration. The United States was represented in this case by Assistant U.S. Attorneys Dmitry Slavin, Roger West, and Will Moynahan.
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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KC Man Sentenced to 17 Years for Illegal Firearm After Firing Shots Toward I-70Read the Press Release
KANSAS CITY, Mo. – A Kansas City, Missouri, man was sentenced in federal court today for illegally possessing a firearm after firing a stolen pistol into the air toward traffic on Interstate 70 near the sports complex.
Adrian Milligan, 44, was sentenced by U.S. District Judge Brian C. Wimes to 17 years in federal prison without parole.
On Sept. 18, 2019, Milligan pleaded guilty to being a felon in possession of a firearm. He admitted that he was in possession of a Kahr 9mm semi-automatic pistol on April 13, 2018.
Kansas City police officers were dispatched to Arrowhead Inn, 6006 E. 31st Street, at 3:18 a.m. on April 13, 2018. A 911 call reported two men and a woman shooting a pistol in the air in the parking lot. Milligan was shooting in the direction of the nearby Interstate 70, which placed motorists in danger as well as motel guests, employees, and other individuals in the area. When officers arrived, they contacted three individuals, including Milligan. Milligan had the pistol, which had been reported stolen, in his left pant pocket. He also had three 9mm rounds of ammunition in his pocket.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Milligan has prior felony convictions for being a felon in possession of a firearm, assault on a law enforcement officer, possession of a controlled substance, possession with intent to distribute, unlawful use of a weapon, distributing a controlled substance near a school, and two prior felony convictions for trafficking.
This case was prosecuted by Assistant U.S. Attorney Mathew Moeder. It was investigated by the Kansas City, Mo., Police Department.
Project Safe Neighborhoods
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Missouri. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone. Project Safe Neighborhoods is an evidence-based program that identifies the most pressing violent crime problems in the community and develops comprehensive solutions to address them. As part of this strategy, Project Safe Neighborhoods focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.Justice Department Awards over $295.8 Million to Improve Public Safety, Serve Crime Victims in American Indian and Alaska Native CommunitiesRead the Press Release
SAN FRANCISCO – The Department of Justice announced today that it has awarded over $295.8 million in grants to improve public safety, serve victims of crime, combat violence against women and support youth programs in American Indian and Alaska Native communities.
“American Indian and Alaska Native communities experience rates of violent crime and domestic abuse that are among the highest in the nation,” said Attorney General William P. Barr. “The awards announced today underscore the Department of Justice’s deep commitment to improving public safety in tribal communities throughout the United States. This administration will continue to work closely with our tribal partners to guarantee that they have the resources they need to combat violence and bring criminals to justice.”
Ten tribes in the Northern District of California were awarded eighteen grants totaling $10,592,453 in funding, representing more than twice the funding awarded in ten grants to six tribes in 2019. The grants are as follows:
Tribe
Grant and Source
Amount
Big Valley Rancheria Band of Pomo Indians
Violence Against Women Tribal Governments Program (OVW)
$748,399
Cahto Tribe of Laytonville Rancheria
Violence Against Women Tribal Governments Program (OVW)
$488,136
Coyote Valley Band of Pomo Indians
Justice Systems and Alcohol and Substance Abuse (BJA)
$900,000
Tribal Victim Services Set-Aside Formula Program Award (OVC)
$417,336
Hoopa Valley Tribe
Public Safety and Community Policing (COPS)
$477,995
Tribal Youth Program (OJJDP)
$416,030
Tribal Victim Services Set-Aside Formula Program Award (OVC)
$694,698
Yurok Tribe
Public Safety and Community Policing (COPS)
$653,751
Violence Against Women Tribal Governments Program (OVW)
$900,000
Juvenile Healing to Wellness Courts (OJJDP)
$400,000
Tribal Victim Services Set-Aside Formula Program Award (OVC)
$694,698
Tolowa Dee-ni’ Nation
Justice Systems and Alcohol and Substance Abuse (BJA)
$362,554
Violence Against Women Tribal Governments Program (OVW)
$900,000
Tribal Victim Services Set-Aside Formula Program Award (OVC)
$503,691
Wiyot Tribe
Tribal Victim Services Set-Aside Formula Program Award (OVC)
$505,795
Scotts Valley Band of Pomo Indians
Tribal Victim Services Set-Aside Formula Program Award (OVC)
$417,336
Karuk Tribe
Tribal Victim Services Set-Aside Formula Program Award (OVC)
$694,698
Bear River Band of the Rohnerville Rancheria
Tribal Victim Services Set-Aside Formula Program Award (OVC)
$417,336
Total:
$10,592,453
Nationwide, these grants were awarded to American Indian tribes, Alaska Native villages, and other tribal designees through the Coordinated Tribal Assistance Solicitation (CTAS). The CTAS is a streamlined application for tribal-specific grant programs. Of the $103 million awarded via CTAS, $41.5 million comes from the Office of Justice Programs, $39.1 million from the Office on Violence Against Women, and $22.5 million from the Office of Community Oriented Policing Services. More than $3.4 million in additional funds from OJP’s Bureau of Justice Assistance to provide training and technical assistance to CTAS awardees, and almost $1.9 million was awarded to 17 tribal communities to address the public safety challenges posed by the outbreak of COVID-19.
The Department also announced awards and other programming totaling $113 million in a set-aside program to serve victims of crime. The awards are intended to help tribes develop, expand, and improve services to victims by supporting programming and technical assistance.
CTAS funding helps tribes develop and strengthen their justice systems’ response to crime, while expanding services to meet their communities’ public safety needs. The awards cover 10 purpose areas: public safety and community policing, justice systems planning, alcohol and substance abuse, corrections and correctional alternatives, children’s justice act partnerships, services for victims of crime, violence against women, juvenile justice, violent crime reduction, and tribal youth programs.
The Department also provided more than $31 million to support a wide range of efforts to address crimes of domestic violence, dating violence, sexual assault, stalking and human trafficking, $7 million to help tribes to comply with federal law on sex offender registration and notification, $16.1 million in separate funding to assist tribal youth, and more than $2.2 million to develop a workforce of direct victim service providers in hard-to-staff positions and locations.
Today’s announcement is part of the Justice Department’s ongoing initiative to increase engagement, coordination, and action on public safety in American Indian and Alaska Native communities.
Jury finds Mission Man Guilty of Illegally Possessing Firearm and AmmunitionRead the Press Release
United States Attorney Ron Parsons announced that David D. Larvie, Jr., age 38, of Mission, South Dakota, was found guilty of Felon in Possession of a Firearm and Ammunition as a result of a federal jury trial in Pierre, South Dakota.
The charge carries a maximum penalty of 10 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Larvie was indicted by a federal grand jury on November 13, 2019. The charge stems from an incident that occurred on October 25, 2019, in Mission. On that evening, law enforcement responded to a report that a shot had been fired from a vehicle driven by Larvie in the South Antelope Community, near Mission. Law enforcement subsequently located the suspect vehicle in Mission, and arrested Larvie. Larvie had a plastic bag containing .22 caliber ammunition in his pants pocket and a search of the vehicle revealed a .22 caliber revolver.
Larvie has three prior felony convictions. He was convicted of Third Degree Burglary and Failure to Appear in U.S. District Court in 2003. He was convicted of Use of a Firearm During and in Relation to a Crime of Violence in U.S. District Court in 2008. As a result of these convictions, it is illegal for Larvie to possess firearms or ammunition. Larvie will forfeit ownership of the firearm and ammunition to the United States.
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 its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
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: https://www.justice.gov/projectguardian.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
A presentence investigation was ordered and a sentencing date was set for December 14, 2020. Larvie was remanded to the custody of the U.S. Marshals Service pending sentencing.
Judge sentences Lincoln County man for possession with intent to distribute methamphetamine and being a felon in possession of a firearmRead the Press Release
ST. LOUIS, MO – United States District Judge Henry E. Autrey sentenced Jason Shook to 84 months in prison. The 42-year-old Hawk Point, Missouri resident previously pleaded guilty to two counts of possession of methamphetamine with intent to distribute, and one count of being a felon in possession of a firearm.
According to the Plea Agreement, on February 25, 2019, St. Peters, Missouri Police Officers arrested Shook and recovered four handguns and an amount of methamphetamine from Shook’s car. Shook admitted that he had obtained the firearms and illegal drugs from an individual who went by the name “Bear” several days earlier. Shook further admitted that he intended to sell the methamphetamine, and that he had been selling methamphetamine for “Bear” for approximately six months.
Further, on April 11, 2019, St. Peters, Missouri Police Officers again arrested Shook, and recovered a distribution amount of methamphetamine from his car.
Shook had previously been convicted of a felony crime punishable by a term of imprisonment exceeding one year.
The St. Peters, Missouri Police Department investigated the case. Assistant United States Attorney Geoffrey Ogden is handling the case for the United States Attorney’s Office.
Judge convicts Manhattan man of false statement in firearms purchaseRead the Press Release
MISSOULA – A federal judge convicted a Manhattan man of providing false information on a form when trying to buy a firearm, U.S. Attorney Kurt Alme said today.
U.S. District Judge Dana L. Christensen, on Oct. 1, found Joshua Rodney Meech, 29, guilty of false statement during a firearms transactions. The one-day bench trial was held on Sept. 28. Sentencing was set for Jan. 21, 2021. Meech was detained.
Meech faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release.
"Keeping firearms out of the hands of persons with protective orders is essential to keeping intimate partners and children safe, particularly during this pandemic when domestic violence is up. Persons who provide false information on firearms purchase forms will be prosecuted to the full extent of the law. I want to thank Assistant U.S. Attorney Cyndee Peterson and the Bureau of Alcohol, Tobacco, Firearms and Explosives for investigating and prosecuting this case," U.S. Attorney Alme said.
The prosecution presented evidence at trial that Meech attempted to buy a 9mm semi-automatic pistol from Bob Ward & Sons, Inc., in Bozeman on April 4. In court records filed in the case, the prosecution said Meech, while shopping for firearms at the store, completed a Firearms Transaction Report, known at ATF Form 4473, signed and dated the form and provided it to an employee for a background check. A few days later, Bob Ward's was notified that Meech's request had been denied.
Meech had checked a box on the form that he was not subject to a court order restraining him from harassing, stalking, or threatening his child, and intimate partner or the child of such a partner. On Jan. 10, the District Court in Gallatin County issued a temporary restraining order against Meech directing him not to commit any acts of violence or harass, threaten, abuse or stalk the petitioner, now his ex-wife, and three minor children. The parties agreed to a Stipulated Order of Protection, which was signed by Meech and his attorney, on Feb. 26. The Stipulated Order was to remain in effect until the parties mutually agreed to dissolve it or upon further order of the court. The Stipulated Order included the statement, "Federal law provides penalties for possessing, transporting, shipping or receiving any firearm or ammunition."
The Stipulated Order was terminated on May 20 by a motion from the petitioner.
Assistant U.S. Attorney Cyndee Peterson is prosecuting 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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Honduran Man Sentenced After Pleading Guilty to Being an Illegal Alien in Possession of a Firearm, Illegal Re-entry and Possession with Intent to Distribute CocaineRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Peter G. Strasser announced that on October 1, 2020, JOSE HUMBERTO DELSIB-MARTINEZ (hereinafter “DELSIB”), age 40, a native of Honduras, was sentenced to 21 months in federal prison after pleading guilty in December 2019 to a three-count superseding bill of information, which charged him with being an illegal alien in possession of a firearm, in violation of Title 18, United States Code, Section 922(g)(5)(A), illegal reentry of a removed alien, in violation of Title 8, United States Code, Section 1326(a), and possession with the intent to distribute a quantity of cocaine hydrochloride, in violation of Title 21, United States Code, Section 841(a)(1).
According to documents filed in open court and signed by DELSIB at the time of his guilty plea, members of the Kenner Police Department Narcotics Section were conducting surveillance in connection with a drug trafficking complaint within the city of Kenner in the Eastern District of Louisiana. During surveillance, detectives observed DELSIB, the target of the investigation, travelling in his vehicle eastbound in the 600 block of 27th Street. Since the vehicle was observed to have illegally tinted windows, a traffic stop was conducted. DELSIB was advised of the ongoing narcotics investigation. The Kenner Police Detective spoke Spanish and was able to converse with DELSIB in that language. Thereafter DELSIB waived his rights and provided consent to search his vehicle. During the search, detectives located a clear plastic bag containing fourteen individually wrapped baggies of a white powder substance wedged between the driver’s side floor board and center console. A sample of the white powder substance chemically field tested positive for the presence of cocaine, 8.1 grams. The powder- totaling 8.1 grams, was later tested in a laboratory and found to be cocaine hydrochloride.
DELSIB agreed to cooperate with the investigation and subsequently provided consent to search his residence, located at 2755 Albany St., Apartment D, Kenner, La. During a search of DELSIB’S bedroom, he directed detectives to a silver 9mm handgun which was later identified as a Lorcin Engineering Model L-9 bearing serial number L-121517, which had been shipped in interstate commerce, a large clear plastic bag containing a white powder substance, and a black digital scale. All items were located within a large wooden floor speaker box. A sample of that white powder substance chemically field tested positive for the presence of cocaine, 18 grams. The substance was later tested in a laboratory and found to be cocaine hydrochloride.
DELSIB provided detectives with a voluntary statement advising that all seized items belonged solely to him and he sold cocaine as a way to make extra money. He said that he used the black digital scale to weigh narcotics prior to sale and he used his vehicle as an aid in transport of the illegal narcotics.
DELSIB faced a maximum statutory term of imprisonment of 10 years, a fine of $250,000, and three years of supervised release on all counts. His guideline sentence of twenty one months included a three year term of supervised release. He will be turned over to federal immigration agents for deportation back to Honduras after he serves his prison term. He has been incarcerated since his arrest in February 2019.
U.S. Attorney Strasser praised the work of the United States Immigration and Customs Enforcement, the Kenner Police Department, and the Jefferson Parish District Attorney’s Office in investigating this matter. Assistant United States Attorney Carter K.D. Guice, Jr. is in charge of the prosecution.
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Hailey Man Sentenced to 3 Years for Possession of Child PornographyRead the Press Release
BOISE – Noah Fischman, 20, of Hailey, Idaho, was sentenced in U.S. District Court to 36 months in federal prison for possession of child pornography, U.S. Attorney Bart M. Davis announced today. Chief U.S. District Judge David C. Nye also sentenced Fischman to 15 years of supervised release following his prison sentence. Fischman pleaded guilty to the charge on July 7, 2020.
According to court records, the investigation began after Chat Step and Skype reported that child pornography had been uploaded to various online accounts between June 5, 2016 and November 3, 2018. The reports were assigned to the Idaho Internet Crimes Against Children (ICAC) Task Force for investigation. ICAC learned that the IP address used to upload child pornography to the online accounts was tied to Fischman’s residence in Hailey. ICAC obtained a search warrant for Fischmans’s residence and then seized his computer after executing the search warrant. A forensic examination of the computer revealed approximately 4,900 files of child pornography. Fischman admitted to accessing child pornography and to saving child pornography to his computer. Fischman also admitted to receiving child pornography from other users on Chat Step and Skype.
Judge Nye also ordered Fischman to pay restitution of $60,000 to victims in the images he possessed and to pay a special assessment of $5,100. As a result of his conviction, Fischman will be required to register as a sex offender.
This case was investigated by the Idaho ICAC Task Force with assistance from United States Postal Inspection Service and Hailey Police Department, and was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. As part of Project Safe Childhood, the U.S. Attorney’s Office for the District of Idaho and the Idaho Attorney General’s Office partner to marshal federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
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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.
Fresno Man Charged with Offenses Involving the Sexual Exploitation of MinorsRead the Press Release
FRESNO, Calif. – A federal grand jury has returned a two-count indictment against Todd Eric Mumma, 57, of Fresno, charging him with actual and attempted sexual exploitation of a minor and receipt of child pornography, U.S. Attorney McGregor W. Scott announced today.
According to court documents, Mumma used hidden digital video recording devices in a residence to create sexually explicit images of a minor. He edited recordings on a computer and then transferred selected images onto a cellphone where the images were stored in a password‑protected application. Forensic review of devices seized with a search warrant revealed images of minors engaged in sexually explicit conduct that had been downloaded onto a computer.
The investigation was conducted by the Central Valley Internet Crimes Against Children (ICAC) Task Force, specifically Homeland Security Investigations (HSI) and the Fresno County Sheriff’s Office. Assistant U.S. Attorney David L. Gappa is prosecuting the case.
If convicted, Mumma faces a minimum statutory penalty of 15 years in prison and a maximum of 30 years in prison for the count of sexual exploitation of a minor and a minimum of five years in prison and a maximum of 20 years in prison for the receipt of child pornography and a fine of up to $250,000 for both counts. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
Freight Company Executive Charged with EmbezzlementRead the Press Release
NEWARK, N.J. – The former program manager of an international freight forwarding company has been arrested on charges that he embezzled over $550,000 from the company, United States Attorney Craig Carpenito announced today.
Morten Nielsen, 36, a Danish national residing in Jersey City, New Jersey, is charged by complaint with two counts of wire fraud. He appeared before U.S. Magistrate Judge Joseph A. Dickson by videoconference yesterday.
According to documents filed in this case and statements made in court:
As program manager for the international freight forwarding company, Nielsen was responsible for the company’s contract relating to the Egyptian Foreign Military Sales program (EFMP), a program between the government of Egypt and the U.S. Department of Defense (DoD) that facilitates the sale and repair of military equipment from the DoD to Egypt. Nielsen was responsible for ensuring all safeguards and logistics for the transportation of certain classified material between the United States and Egypt and for submitting all paperwork and billing invoices on behalf of the company to the Egyptian government. Once approved, those invoices were forwarded to the DoD for payment to the company.
Nielsen allegedly sent fraudulent invoices on behalf of his employer to the Egyptian government that included charges for services performed by a sham company he created. The sham company did not perform any services for his employer. Once the fraudulent invoices were approved by Egypt and paid by the DoD, Nielsen caused his employer to pay the sham company he created over $550,000 over a two-year period.
Each count of wire fraud carries a maximum penalty of 20 years in prison and a fine of $250,000.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr.; special agents of the DoD – Office of Inspector General, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Leigh-Alistair Barzey; and the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Margaret Mahoney, of the Government Frauds Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Former Sullivan County Sheriff’s Deputy Sentenced to One Year in Federal Prison for EmbezzlementRead the Press Release
SCRANTON -The United States Attorney’s Office for the Middle District of Pennsylvania announced that Mary Handzus, age 64, of Laporte, Pennsylvania, was sentenced on October 1, 2020 to 12 months and a day followed by two years on supervised release by United States District Court Judge Matthew W. Brann, for theft from the Sullivan County Sheriff’s Office.
According to United States Attorney David J. Freed, between 2012 and 2019, Handzus was employed as the Administrative Deputy by the Sullivan County Sheriff’s Office and stole $198,566 from the Sheriff’s Office account.
Judge Brann also ordered Handzus to pay restitution in the amount of $250,755, for the money she stole and the forensic audit conducted following the discovery of the theft.
The case was investigated by the Federal Bureau of Investigation (FBI) and the Pennsylvania State Police. Assistant U.S. Attorney Jenny P. Roberts prosecuted the case.
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Former Scranton Mayor Sentenced to Seven Years’ Imprisonment on Public Corruption ChargesRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that the former mayor for the City of Scranton, William L. Courtright, age 63, of Scranton, Pennsylvania, was sentenced to seven years’ imprisonment by United States District Court Judge Malachy E. Mannion, on public corruption charges.
According to United States Attorney David J. Freed, Courtright previously pleaded guilty on July 2, 2020, to charges involving criminal conspiracy, bribery and extortion in July 2019. Courtright had been the subject of a multi-year year undercover investigation headed by the FBI. The undercover investigation captured the former mayor accepting cash payments from vendors doing business with the city.
In addition to the prison term, Judge Mannion also ordered Courtright to pay a $25,000 fine, and be supervised by a probation officer for three years following his release from prison.
“In this County, in this Commonwealth, in this Country – our elected officials work for us,” said U.S. Attorney Freed. “Not the other way around. Using public office for personal financial gain is a crime, plain and simple. We are pleased with Judge Mannion’s sentence. Elected officials should remain on notice that we will continue to work together with our state and local partners to investigate and prosecute public corruption cases at all levels. There is no such thing as a little bit of corruption. Corruption, not matter the scope is insidious. I want to commend the painstaking work of our partners at the FBI who have never wavered in their commitment to the citizens of this district. We are also grateful for the valuable assistance of IRS-Criminal Investigations and the Pennsylvania State Police. We will not rest in the fight against corruption.”
“Instead of working honestly on behalf of his constituents, William Courtright traded on his office, embracing a corrupt pay-to-play culture,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “With every bribe pocketed and favor accepted, he sold out the city of Scranton a little more. The damage he’s done to the public trust is profound and for that he must be held accountable. Cases like this only fuel the FBI's commitment to tackling public corruption.”
In addition to the prison term, Judge Mannion also ordered Courtright to pay a $25,000 fine, and be supervised by a probation officer for three years following his release from prison.
The FBI was assisted during the investigation by the Pennsylvania State Police and the Internal Revenue Service Criminal Investigation. Assistant United States Attorneys Michael Consiglio and Michelle Olshefski prosecuted the case.
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Former Milford Teacher Indicted on Possession of Child Pornography ChargeRead the Press Release
BOSTON – A former Milford second grade teacher was indicted yesterday by a federal grand jury for possession of child pornography.
Vincent Kiejzo, 33, was indicted on one count of possession of child pornography. Kiejzo was previously charged by criminal complaint and arrested on Sept. 9, 2020.
According to the charging documents, Kiejzo possessed approximately 6,000 images of apparent child pornography stored within a thumb drive, including images that involved a prepubescent minor or a minor who had not attained 12 years of age.
Members of the public who have questions, concerns or information regarding this case should call 617-748-3274.
The charging statute provides for a sentence of up to 20 years in prison, five years and up to life of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston made the announcement. The Milford Police Department assisted with the investigation. Assistant U.S. Attorney Kristen Noto of Lelling’s Worcester Office is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Information Technology Employee of Hospital Sentenced to 30 Months in Prison for Computer IntrusionRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, announced that RICHARD LIRIANO was sentenced yesterday to 30 months in prison for engaging in a scheme to use malicious software programs, including a program known as a “keylogger,” on dozens of his coworkers’ computers at a New York City-area hospital, secretly obtaining user names and passwords to his victims’ personal email and other accounts, and using that unauthorized access to steal private and confidential files. Using his victims’ stolen credentials, LIRIANO repeatedly compromised their password-protected online accounts, and accessed their sensitive personal photographs, videos, and other private documents. LIRIANO’s sentence was imposed by United States District Judge Lewis A. Kaplan.
Acting U.S. Attorney Audrey Strauss said: “For approximately five years, Richard Liriano used his computer skills and abused the trust placed in him as an information technology professional at a New York hospital to spy on his coworkers and steal personal information from them. Liriano’s disturbing crimes not only grossly violated the privacy of his coworkers but jeopardized the integrity of computers housing vital healthcare and patient information, costing his former employer hundreds of thousands of dollars to remediate. He will now be held accountable.”
According to the allegations in the Information to which LIRIANO pled guilty, a prior Indictment filed against LIRIANO, as well as statements made during the sentencing and other proceedings in the case:
From at least in or about 2013, up to and including at least in or about 2018, LIRIANO misused administrative access provided to him as an information technology employee at a New York City-area hospital (“Hospital-1”), to log in to employee accounts, and copy other employees’ personal documents, including tax records and personal photographs, onto his own workspace computer for his own personal use.
To further his efforts to steal personal information from Hospital-1’s employees, LIRIANO, used various malicious programs that he installed on Hospital-1’s computer systems without authorization, to steal the user names and passwords of his primarily female co-workers. One of these programs is known as a keylogger, which surreptitiously recorded and sent victim employees’ keystrokes to LIRIANO, such as the usernames and passwords those employees entered to access their personal web-based email accounts. Through the course of this conduct, LIRANO stole usernames and passwords for at least approximately 70 email accounts belonging to Hospital-1 employees or persons associated with those employees (the “Compromised Accounts”).
LIRIANO then used those stolen usernames and passwords to log into the Compromised Accounts and obtain unauthorized access to other password-protected email, social media, photographs, and online accounts to which the Compromised Accounts were registered. Among other things, LIRIANO conducted searches for sexually explicit photographs and videos in the Compromised Accounts.
LIRIANO’s computer intrusions into Hospital-1’s computer networks caused over $350,000 in losses to Hospital-1, which include the expenses that Hospital-1 incurred to remediate the damage that LIRIANO caused to its computer networks.
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In addition to the prison term, LIRIANO, 34, of the Bronx, New York, was sentenced to three years of supervised release. LIRIANO was also ordered to pay restitution of $351,850.25.
Ms. Strauss praised the investigative work of the Federal Bureau of Investigation and thanked the New York City Police Department for its assistance.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Vladislav Vainberg is in charge of the prosecution.