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18 September 2020
NDTX Round-Up: September 11-17Read the Press Release
SENTENCING – MARCUS CARL GRANT
On September 11, Marcus Carl Grant, 38, was sentenced to 87 months in federal prison for possession with intent to distribute a controlled substance and felon in possession of a firearm. During the execution of a search warrant of a known drug house, law enforcement located Grant along with two other individuals. Agents recovered controlled substances, loaded firearms, cash, digital scales, and narcotics bagged for individual sale. This case was investigated by the ATF and the Dallas Police Department. Assistant U.S. Attorney Melanie Smith is prosecuted this case.
SENTENCING – SERGIO REYES
On September 11, Sergio Reyes, 48, was sentencing to 9 years in federal prison for possession of a controlled substance, methamphetamine, with the intent to distribute. Reyes and a co-conspirator negotiated with a confidential source for a multi-kilogram methamphetamine purchase. Reyes agreed to sell six kilograms of methamphetamine packaged in gallon-sized zip-locked bags. Shortly after the sell, Reyes was placed under arrest by the Mesquite Police Department. This case was investigated by the DEA and the OCDETF North Texas Strike Force. Assistant U.S. Attorney Myria Boehm prosecuted this case.
GUILTY PLEA – DARNELL HARRIS GAUSE
On September 15, Darnell Harris Gause, 40, plead guilty to delay or destruction mail. While an employee of the United States Postal Service, Mr. Gause unlawfully delayed and detained items that were given to him to be mailed, namely, 10 checks. Mr. Gause faces up to five years in federal prison for his crimes. This case was investigated by the United States Postal Service – Office of Inspector General. Assistant U.S. Attorney Jennifer Bray is prosecuting this case.
GUILTY PLEA – ORALIA FIGUEROA
On September 15, Oralia Figueroa, 50, plead guilty to perpetration of a false and fraudulent federal income tax return. Figueroa engaged in a scheme to knowingly and willfully prepare fill false IRS tax returns. Figueroa unlawfully listed dependents on the Form 1040 when here clients were not eligible and fraudulently claimed thousands of dollars of unreimbursed employee expenses. The total tax loss attributed to her conduct is at least $120,200. Figueroa faces up to three years in federal prison for her crimes. This case was investigated by IRS-Criminal Investigations. Assistant U.S. Attorney Renee Hunter is prosecuting this case.
Mission Man Indicted for Failure to Register as Sex OffenderRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Sandy Mangelson, age 49, was indicted on September 1, 2020. He appeared before U.S. Magistrate Judge Mark A. Moreno on September 16, 2020, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Mangelson was convicted of Sexual Contact With a Child Under Sixteen in November 2005 and Gross Sexual Imposition (with a child) in 2007. As a result of the convictions, Mangelson is required to register as a sex offender. The Indictment alleges between December 5, 2019, and December 10, 2019, between December 20, 2019, and February 27, 2020, and between June 22, 2020, and June 25, 2020, Mangelson, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of conviction under Federal Law, failed to properly register as a sex offender and update his registration.
The charge is merely an accusation and Mangelson is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Michael J. Elmore is prosecuting the case.
Mangelson was remanded to the custody of the U.S. Marshals Service pending trial. Trial is currently set for November 17, 2020.
Manchester Man Sentenced to 80 Months in Prison for Child Exploitation OffenseRead the Press Release
John H. Durham. United States Attorney for the District of Connecticut, announced that LUQMAN GOTTI, formerly known as Timothy Pennington, 39, of Manchester, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 80 months of imprisonment, followed by 10 years of supervised release, for exchanging sexually explicit images with a teenage boy.
According to court documents and statements made in court, in June 2017, Gotti and a 13-year-old boy were communicating through the Kik messaging application. After the boy informed Gotti that he was 14 years old, Gotti asked the boy for pictures and sent the boy a sexually explicit image of himself, intending that the boy send Gotti a sexually explicit picture in return. The boy then sent sexually explicit pictures of himself to Gotti. Later in the conversation, Gotti told the boy “I already went to jail over a 14 year old not trying to go through that again.” Gotti then asked the boy for more sexually explicit pictures. In response, the boy sent Gotti another sexually explicit photograph and video of himself.
In 2000, Gotti was convicted in state court of second degree sexual assault of a 14-year-old girl. At the time of this offense, Gotti’s name was Timothy Pennington. He subsequently changed his name to Luqman Gotti.
Gotti has been detained since November 14, 2017, when he was arrested on related state charges. On December 20, 2018, he pleaded guilty in federal court to one count of accessing with intent to view child pornography.
This matter was investigated by the Federal Bureau of Investigation and the Manchester Police Department. The case was prosecuted by Assistant U.S. Attorney Neeraj N. Patel.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Man Sentenced for Misuse of Social Security NumberRead the Press Release
NEW ORLEANS – United States Attorney Peter G. Strasser announced that RAYMUNDO DE LA PAZ (DE LA PAZ), age 28, was sentenced on September 17, 2020 by United States District Court Judge Mary Ann Vial Lemmon, after previously pleading guilty to a one-count bill of information charging him with misuse of a Social Security Number, in violation of Title 18, United States Code, Section 408(a)(7)(B).
Judge Lemmon sentenced DE LA PAZ to probation for one year to include six months of home confinement and a $100 special assessment fee.
According to court documents, DE LA PAZ, a citizen of Mexico, presented a false Social Security card when attending a pre-employment safety class at the Gulf Coast Safety Council in St. Rose, Louisiana. DE LA PAZ falsely represented that a social security number was assigned to him when in fact; the social security number had been assigned by the Commissioner of Social Security to another individual.
U.S. Attorney Peter G. Strasser praised the work of the United States Border Patrol and the Office of Inspector General, Social Security Administration. Assistant United States Attorney Julia K. Evans is in charge of the prosecution.
Madison County Man Sentenced to 14 Years for Crack Cocaine Distribution in Crockett CountyRead the Press Release
Jackson, TN – Calvin Cole a/k/a “Fathead,” 46, of Jackson, TN, has been sentenced to 170 months in federal prison for conspiracy to distribute controlled substances. D. Michael Dunavant, U.S. Attorney announced the sentence today.
According to information presented in Court, in April 2017, agents with the 28th Judicial District Drug Task Force received a phone call from a concerned citizen that a heavyset male traveling to and from a residence on London Road in Alamo, Tennessee, was selling “dope” regularly.
Agents conducted surveillance and observed Cole on an almost daily basis arrive at a residence on London Road, driving different automobiles on different days and distributing crack cocaine throughout the day. Throughout the investigation, it was determined that multiple people would approach Cole and exchange money and crack cocaine.
In March of 2016 and April of 2016, agents with the Drug Task Force and the Tennessee Bureau of Investigation made five separate undercover drug transactions with Cole on separate dates utilizing multiple reliable confidential sources (CSs) to purchase crack cocaine. Agents continually monitored the CSs throughout the meeting with Cole; after each transaction, the CS would turn over the crack cocaine to agents. The substance was then forwarded to the DEA crime laboratory for analysis, which determined that the substance was crack cocaine.
The transactions also included a co-defendant, identified as Tony “Bone” Douglas. Douglas was seen on surveillance video assisting Cole with distributing crack cocaine. Douglas would arrive to the location site prior to Cole’s arrival, search the customers for wires, and then sell crack cocaine to the large number of customers. Douglas was previously sentenced to 120 months in federal prison for his involvement in the drug conspiracy. Other co-defendants, including Arvis "Shorty" Ball of Alamo, TN, and Bob
Terry of Bells, TN were part of the Calvin Cole Drug Trafficking Organization, and were indicted along with Cole and Douglas in February, 2018:
https://www.justice.gov/usao-wdtn/pr/four-suspects-arrested-west-tennessee-federal-drug-trafficking-and-money-laundering.
During the sentencing hearing, the government presented numerous photographs and one video of Cole distributing crack cocaine to multiple drug buyers. Based upon statements from the drug buyers who were identified from the surveillance video, each person described when they began purchasing crack cocaine from Cole and for how long. Cole was ultimately found responsible for distributing approximately 2.8 kilograms of crack cocaine in Crockett County.
On September 16, 2020, U.S. District Court Judge J. Daniel Breen sentenced Cole to 170 months in federal prison followed by five years supervised release. There is no parole in the federal system.
United States Attorney D. Michael Dunavant said: "Fathead Cole and his fellow drug dealers will no longer sell poison for profit with impunity. We will not tolerate illegal drug activity disrupting and destroying the daily lives of citizens in our small communities, and this lengthy sentence will rightly punish and incapacitate Cole for his harmful criminal conduct. This is a high impact case that will improve public safety and the quality of life in Crockett County and across West Tennessee."
The 28th Judicial District Drug Task Force, the Tennessee Bureau of Investigation (TBI), Jackson-Madison County Metro Narcotics Unit, Drug Enforcement Administration (DEA), Crockett County Sheriff’s Department, Gibson County Sheriff’s Department, Madison County Sheriff’s Department, Jackson Police Department and Gibson County SWAT Team investigated this case.
Assistant U.S. Attorney Jerry Kitchen prosecuted this case on behalf of the government.
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Louisville Man Convicted of Methamphetamine Trafficking and Firearm OffensesRead the Press Release
COVINGTON, Ky. - A Louisville man was convicted Thursday, by a federal jury sitting in Covington, of conspiracy to distribute methamphetamine and firearm offenses.
After three hours of deliberation, following a three-day trial, the jury convicted 31-year-old Quinn Turner of conspiracy to distribute over 50 grams of methamphetamine, possession of a firearm in furtherance of drug trafficking, and possession of a firearm by a convicted felon.
The evidence at trial established that Turner distributed multiple pounds of crystal methamphetamine, on an ongoing basis from June 1, 2018 through October 3, 2018, both directly and through associates. Evidence also established that he used firearms to assist in his offense. Turner was arrested in Boone County, Kentucky, on October 3, 2018, when he arrived at a store with a pound of pure crystal methamphetamine that he planned to distribute. He was also in possession of a firearm when arrested. Turner had been released from state prison in November 2017, after serving a 12-year sentence for armed bank robbery.
Tuner was charged in a superseding indictment, in September 2019.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky, and Keith W. Martin, Special Agent in Charge, DEA, Louisville Field Division, jointly announced the verdict.
The investigation was conducted by DEA and the Northern Kentucky Drug Strike Force. The United States was represented in the case by Assistant U.S. Attorneys Tony Bracke and Kyle Winslow.
Turner will appear for sentencing on a date to be determined by the court. For the methamphetamine charges, he faces a minimum of 10 years in prison and a maximum of life. For the firearm offenses, he faces a minimum of five years, consecutive to any other sentence. However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal sentencing statutes before imposing a sentence.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, U.S. Attorney Robert Duncan Jr., coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
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. Click here for more information about Project Guardian.
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Lake City Meth Distributor Sentenced to 15 YearsRead the Press Release
Jacksonville, FL – U.S. District Judge Marcia M. Howard has sentenced Benjamin Hank Ratliff (37, Lake City) to 15 years in federal prison for conspiracy to distribute 50 grams or more of methamphetamine. The court also ordered Ratliff to forfeit a 2011 Lexus, which he had used to facilitate the offense.
Ratliff had pleaded guilty on June 9, 2020.
According to court documents, between September 2017 and October 2018, Ratliff, along with his co-defendants, conspired to distribute methamphetamine in Lake City. Ratliff hid methamphetamine near stop signs or at different locations on side roads. His distributors and/or customers then retrieved the drugs and left money, in exchange, at the same location – sometimes hidden in a shoe or diaper. As part of their investigation, agents seized 429.823 grams of actual methamphetamine attributable to Ratliff.
This case was investigated by the Drug Enforcement Administration, the Columbia County Sheriff’s Office, and the Lake City Police Department. It was prosecuted by Assistant United States Attorney Beatriz Gonzalez.
Justice Department Requires Divestiture in Order for Anheuser-Busch to Acquire Craft Brew AllianceRead the Press Release
The Department of Justice announced today that it is requiring Anheuser-Busch InBev SA/NV (ABI), its wholly-owned subsidiary Anheuser-Busch Companies LLC (AB Companies), and Craft Brew Alliance Inc. (CBA) to divest CBA’s entire Kona brand business in the state of Hawaii and to license to the acquirer the Kona brand in Hawaii in order for AB Companies, a minority shareholder in CBA, to proceed with its proposed acquisition of the remaining shares of CBA. The department has approved PV Brewing Partners, LLC as the acquirer. The proposed settlement will maintain competition in the beer industry in Hawaii benefitting consumers.
The Justice Department’s Antitrust Division filed a civil antitrust lawsuit today in the U.S. District Court for the Eastern District of Missouri to block the $220 million proposed transaction. At the same time, the department filed a proposed settlement that, if approved by the court, would resolve the competitive harm alleged in the lawsuit.
According to the department’s complaint, AB Companies’ acquisition of CBA likely would substantially lessen head-to-head competition in Hawaii between ABI brands, such as Stella Artois and Michelob Ultra, and CBA’s Kona brand. If the transaction was allowed to proceed, ABI and CBA would have a combined share of approximately 41 percent in the moderately concentrated Hawaii beer market. The merger would also likely harm future competition between ABI and CBA as, absent the merger, the companies would continue to invest and compete against each other for premium beer sales in the state. By eliminating CBA’s Kona brand as a competitive restraint, ABI would also likely have greater ability to facilitate price coordination, resulting in higher prices for beer sold in Hawaii, amplifying competitive concerns.
“This merger, as originally structured, would have significantly increased market concentration in Hawaii and eliminated the growing competition between ABI and CBA brands,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “Today’s settlement with its divestitures will ensure that consumers continue to benefit from this competition today and into the future.”
Under the terms of the proposed settlement, ABI and CBA must divest CBA’s entire Kona Hawaii business — Kona Brewery LLC — to PV Brewing Partners or to an alternative purchaser approved by the United States. Specifically, the settlement requires the sale of the Kona brewing facilities in Hawaii, including a new 100,000-barrel capacity brewery currently under construction; the granting of a perpetual, exclusive license of the Kona brand for the brewing, distribution, and sale of Kona beer in Hawaii as well as other assets, rights, and interests necessary to ensure that PV Brewing Partners, LLC, is able to compete in the Hawaii beer market using the Kona brand.
ABI is a corporation organized and existing under the laws of Belgium, with its headquarters in Leuven, Belgium. ABI is already a minority shareholder in CBA. ABI proposes to acquire 100 percent ownership of CBA through AB Companies, a Delaware limited liability company that currently holds a minority ownership stake in CBA. ABI owns numerous major beer brands sold in the United States, including in Hawaii. These brands include Bud Light, Budweiser, Busch Light, Natural Light, Michelob Ultra, Stella Artois, and Golden Road.
CBA is a corporation organized and existing under the laws of Washington, with its headquarters in Portland, Oregon. CBA owns several beer brands sold in the United States, including Widmer Brothers, Omission, Redhook, and Kona, a brand that originated in Hawaii and is especially popular in that state.
PV Brewing Partners LLC, is a Delaware limited liability company with its headquarters in Overland Park, Kansas. The entity was formed by VantEdge Partners LP, a private equity company based in metropolitan Kansas City.
As required by the Tunney Act, the proposed settlement, along with a competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement during a 60-day comment period to Robert A. Lepore, Chief, Transportation, Energy, and Agriculture Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street N.W., Suite 8000, Washington, D.C., 20530. At the conclusion of the 60-day comment period, the U.S. District Court for the Eastern District of Missouri may enter the final judgment upon finding it is in the public interest.
Jury convicts fentanyl dealer of distribution causing deathRead the Press Release
ST. LOUIS, MO – On September 17, 2020, at the conclusion of a four-day jury trial, Travis Broeker, 36, of St. Louis County, was found guilty of the crimes of distribution of fentanyl resulting in death and conspiracy to distribute fentanyl. United States District Judge Henry E. Autrey has set sentencing for January 6, 2021 at 11:30 a.m.
The evidence at trial established that on February 28, 2018, at approximately 7:06 p.m., Broeker met the victim on a parking lot of a convenience store and sold him six fentanyl capsules. The victim returned to his residence in 2800 block of Telegraph, ingested fentanyl, and overdosed. The victim’s roommate called 911 at 7:27 p.m. The victim was successfully treated with NARCAN, and released from the hospital late in the evening of February 28. While the victim was in the hospital, his roommate confiscated his remaining fentanyl and his cell phone for the victim’s safety.
The victim returned home around midnight where he and his roommate spoke with each other before the roommate went to sleep. During the early morning hours of March 1, the victim’s roommate found him unresponsive, in a fetal position. The same paramedics who treated him the previous night responded a second time, and determined that he was “beyond help.” The victim was pronounced dead at 6:08 a.m., on March 1.
St. Louis County Police investigators obtained the victim’s remaining fentanyl and cell phone from his roommate. The police used an undercover detective purporting to be the victim’s friend to contact Broeker, who agreed to distribute additional fentanyl to the victim and the undercover detective. Broeker enlisted co-defendant Pamela Barton to deliver 20 capsules of fentanyl to the undercover detective. Barton unwittingly contacted the police to make the fentanyl delivery and was arrested. Investigators later arrested Broeker, who admitted distributing fentanyl to the victim.
On January 15, 2020, Judge Autrey sentenced Barton to 60 months in prison for conspiracy to distribute fentanyl.
Distribution of fentanyl resulting in death is punishable by a mandatory minimum of 20 years imprisonment up to life. Conspiracy to distribute fentanyl is punishable by up to 20 years imprisonment, and the range of punishment for both offenses includes a fine of up to $1,000,000.
The St. Louis County Police Department investigated this case. Assistant United States Attorney Nauman Wadalawala prosecuted this case for the United States.
Jury Convicts Orlando Man of Possessing Cocaine with Intent to DistributeRead the Press Release
Orlando, Florida – A federal jury has found Tony Deshane Brown, a/k/a Antowayne Hill, a/k/a Antowayne Pollard (50, Orlando), guilty of possession with the intent to distribute cocaine. He faces up to 20 years in federal prison. His sentencing hearing is scheduled for December 16, 2020.
Brown originally had been indicted on June 8, 2016. A superseding indictment was issued on March 11, 2020.
According to testimony and evidence presented at trial, Brown fled from an Orlando duplex, with baggies of cocaine packaged for sale, as agents and officers were preparing to execute an unrelated search warrant next door. Brown encountered officers at the rear of his residence where he had hoped to hide the cocaine. There, officers discovered 18 baggies of cocaine in a prescription bag that Brown had been carrying.
This case was investigated by Homeland Security Investigations, with assistance from the Orange County Sheriff’s Office, the Orlando Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney E. Jackson Boggs, Jr.
Judge Sentences Convicted Felon to 7 Years for Possessing a Firearm in Scuffle with PoliceRead the Press Release
Memphis, TN – Jeremy Pruitt, 33, has been sentenced to 92 months in federal prison for being a convicted felon in possession of a firearm. D. Michael Dunavant, U.S. Attorney announced the sentence today.
According to the information presented in Court, on May 8, 2018, Memphis Police officers pulled over a vehicle on Depass Street because the people inside were not wearing their seatbelts. The driver side rear passenger, Jeremy Pruitt, got out of the car and would not obey officer commands. The officer saw a firearm in Pruitt's hand as he exited the vehicle. As Pruitt ran from law enforcement, he stumbled. A scuffle ensued and Pruitt attempted to take the officer’s drawn service firearm. Pruitt broke away and began to raise his hand to shoot the officer. As a result, Pruitt was shot in the hand. The officer’s Body Worn Camera (BWC) captured the entire scene.
Memphis Police officers continued their search and located Pruitt at a residence on Salem Avenue. Law enforcement knocked on the door, an occupant answered the door and told police that he had the person they were looking for. Pruitt was sitting on the couch near the front door. This was recorded on the BWC. After officers took Pruitt into custody, they began to search for his firearm. The loaded firearm was found on the fence line in the yard behind the residence on Salem. This was also recorded by the officer’s BWC. As a result of his prior felony conviction, Pruitt is prohibited by federal law from possession of firearms or ammunition.
Pruitt admitted to law enforcement to possessing the firearm, and on December 19, 2019, Pruitt pled guilty in U.S. District Court to possessing the firearm.
On September 17, 2020, U.S. District Court Judge Mark S. Norris sentenced Pruitt to 92 months in federal prison followed by two years supervised release. There is no parole in the federal system.
U.S. Attorney D. Michael Dunavant said, "Convicted felons who possess firearms are an inherent danger to both the community and law enforcement, as seen in this case. This sentence is just punishment for such a brazen attack on police, and will incapacitate Pruitt from committing additional gun violence for a significant period of time, making us all safer."
The Memphis Police Department investigated this case.
Assistant U.S. Attorney P. Neal Oldham prosecuted this case on behalf of the government.
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Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on Sept. 15 was:
Jordan Paul Owens, 20, of Evergreen, on charges of false statement in firearms transaction. If convicted of the most serious crime, Owens faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Owens was released pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the Case. Pacer case reference. 20-29.
William Allen Rorvik, 39, of Missoula, on charges of prohibited person in possession of a firearm. If convicted of the most serious crime, Rorvik faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Rorvik was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives, Montana Highway Patrol, and Montana Department of Corrections Probation and Parole investigated the case. Pacer case reference. 20-23.
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on Sept. 15 was:
Dakoda Blu Wade Iron Shirt, 27, of Browning, on charges of possession with intent to distribute methamphetamine and distribution of meth. If convicted of the most serious crime, Iron Shirt faces a minimum mandatory five years to 40 years in prison, a $5 million fine and four years of supervised release. Iron Shirt was detained pending further proceedings. The Drug Enforcement Administration, FBI and Big Sky Safe Trails Task Force investigated the case. Pacer case reference. 20-68.
Taylor Gardipee Walker, 22, of Harlem, on charges of involuntary manslaughter. If convicted of the most serious crime, Walker faces a maximum eight years in prison, a $250,000 fine and three years of supervised release. Walker was released pending further proceedings. The FBI and Fort Belknap Law Enforcement investigated the case. Pacer case reference. 20-54.
Brian John Loven, 41, of Missoula, on charges of aiming a laser pointer at an aircraft. If convicted of the most serious crime, Loven faces a maximum five years in prison, a $250,000 fine and three years of supervised release. Loven was released pending further proceedings. The FBI and Great Falls Police Department investigated the case. Pacer case reference. 20-33.
Kathleen Elizabeth Francis, 53, of Lewistown; Amber Rachelle Carr, 35, of Lewistown; and Shirley Ann Adcock, 73, of Bakersfield, CA, on charges of conspiracy to possess with intent to distribute and distribution of meth and possession with intent to distribute meth. If convicted of the most serious crime, the defendants face a minimum mandatory five years to 40 years in prison, a $5 million fine and four years of supervised release. All defendants were released pending further proceedings. The Drug Enforcement Administration investigated the case. Pacer case reference. 20-53.
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Sept. 14 was:
Eric Richard Morrow, 36, of Jordan, on charges of mail fraud and aggravated identity theft. If convicted of the most serious crime, Morrow faces a maximum 20 years in prison, a $250,000 fine and three years of supervised release. Morrow was detained pending further proceedings. The U.S. Postal Service investigated the case. Pacer case reference. 20-97.
Appearing on Sept. 15 was:
Melvin Louis Weasel Boy, 46, Billings, on charges of possession with intent to distribute controlled substances. If convicted of the most serious crime, Weasel Boy faces a minimum mandatory five years to 40 years in prison, a $5 million fine and at least four years of supervised release. Weasel Boy was released pending further proceedings. The Drug Enforcement Administration investigated the case. Pacer case reference. 20-62.
Appearing on Sept. 17 was:
Dale Lee Musgrave, 50, of Pompeys Pillar, on charges of conspiracy to possess with intent to distribute cocaine, possession with intent to distribute cocaine, conspiracy to submit false statements in mine records, false statements in mine records and false statement. If convicted of the most serious crime, Musgrave faces a maximum 20 years in prison, a $1 million fine and three years of supervised release. The Eastern Montana High Intensity Drug Trafficking Area Task Force investigated the case. Pacer case reference. 19-159.
Robert James Miller, 49, of Billings, and Isabellita Anne Isis, 43, of Billings, on charges of conspiracy to possess with intent to distribute meth and possession with intent to distribute meth. If convicted of the most serious crime, the defendants face a minimum mandatory 10 years to life in prison, a $10 million fine and at least five years of supervised release. The defendants were released pending further proceedings. The FBI Western Transnational Organized Crime Task Force and Eastern Montana High Intensity Drug Trafficking Area Task Force investigated the case. Pacer case reference. 20-96.
Leland Thomas Ash Jr., 26, of Billings, on charges of prohibited person in possession of a firearm. If convicted of the most serious crime, Ash faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Ash was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Pacer case reference. 20-87.
Gregory William Knows His Gun, 37, of Billings, on charges of prohibited person in possession of a firearm. If convicted of the most serious crime, Knows His Gun faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Knows His Gun was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Pacer case reference. 20-93.
Marvin Charles Hurd, 27, of Billings, on charges of possession with intent to distribute meth. If convicted of the most serious crime, Hurd faces a maximum 20 years in prison, a $1 million fine and three years of supervised release. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Pacer case reference. 20-94.
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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In Another INTERPOL Operation Blackwrist Success, Tyler Jury Finds Longview Sex Offender Guilty of Possession of Child PornographyRead the Press Release
TYLER, Texas – U.S. Attorney Stephen J. Cox announced that a Longview sex offender who was identified in the course of a joint international investigation has been found guilty of possession of child pornography in the Eastern District of Texas.
Charles Orange, 55, of Longview, Texas, was indicted by a federal grand jury on Feb. 20, 2019, and charged with possession of child pornography. Orange was tried and found guilty by a jury. At sentencing, Orange faces between 10 years and 20 years in federal prison.
“Congratulations to the team who brought Charles Orange to a well-deserved appointment with justice,” said U.S. Attorney Stephen J. Cox. “The jury’s guilty verdict sends a clear message that child exploitation of any kind will not be tolerated. On behalf of the Eastern District of Texas, I wish to express our gratitude to INTERPOL, Thailand’s DSI, Australia’s AFP, and our other law enforcement partners from around the world for their tireless efforts and shared commitment to save the lives of children and bring sexual predators to justice,” added U.S. Attorney Cox. “This investigation exemplifies the important work that can be accomplished through close coordination and cooperation with our international partners.”
“Child predators often believe they can conceal their identities by hiding behind their computer screens in furtherance of their efforts to exploit those most vulnerable," said Ryan L. Spradlin, special agent in charge of HSI Dallas. "This is a deplorable crime, and those who commit it have no place in our society. HSI will continue to work tirelessly with our international and domestic partners to pursue those who seek to sexually exploit children no matter where they are.”
According to information presented at trial, the investigation of Charles Orange originated as a lead from Operation Blackwrist. Named after a bracelet worn by one of the victims, Operation Blackwrist was launched by the International Criminal Police Organization (INTERPOL) in 2017 following the discovery of material depicting the abuse of 11 boys, all under 13 years old. The material—first identified on the dark web—originated from a subscription-based website with nearly 63,000 users worldwide. For years, the site had published new material weekly, with the abuser taking great care to avoid detection, often masking the children and leaving very few visual or audio clues. Officers relied on the physical traits of the children to track their ongoing abuse and reached out to the global police community for help.
In June 2017, Thailand’s Department of Special Investigations (DSI) took on the case, working in close collaboration with INTERPOL’s Liaison Bureau in Bangkok. Investigators around the world also joined the effort to identify the 11 boys and find site administrators. HSI identified the website IP address and worked on establishing potential links to the United States.
Bulgaria’s Cybercrime Department at the General Directorate Combating Organized Crime, supported by Europol, took down the website’s servers. The Department of Internal Affairs in New Zealand deconflicted intelligence and compiled information packages on website users for INTERPOL member countries. The US National Center for Missing and Exploited Children cross-checked e-mail addresses and provided additional intelligence. The Australian Federal Police (AFP) and South Australian Police came on board when an IP address pointed to a location in Adelaide.
In November 2017, the first victims were identified, leading to simultaneous arrests in Thailand and Australia two months later. The website’s main administrator, based in Thailand, was identified as Montri Salangam. He was the man seen abusing the 11 boys, one of whom was his nephew. The children had been lured to Salangam’s home with meals, internet access and football games. A second administrator, Ruecha Tokputza, was based in Australia. Police found thousands of images taken in both Thailand and Australia on his seized devices, some of which featured Tokputza as the main abuser. The youngest identified during the South Australian court proceedings was just 15 months old.
In June 2018, Thai courts sentenced Salangam to 146 years in prison on charges of child rape, human trafficking, and possession and distribution of child sexual abuse material. A second man, an elementary school teacher close to Tokputza, received 36 years in prison on the same charges. On May 17, 2019, an Australian judge sentenced Tokputza to 40 years and three months in prison, the longest sentence ever imposed in Australia for child sex offenses. The judge referred to Tokputza as “every child’s worst nightmare” and “every parent’s horror.”
INTERPOL Secretary General Jürgen Stock welcomed the successful prosecutions and applauded the massive international effort required.
“Operation Blackwrist sends a clear message to those abusing children, producing child sexual exploitation material and sharing the images online: We see you, and you will be brought to justice. Every child abuse image is evidence of a crime and INTERPOL will always provide its full support to officers on the ground to help identify and rescue victims around the world.”
“These efforts have already resulted in numerous arrests in the United States to include individuals occupying positions of public trust. We are proud to be a part of these international efforts,” said HSI Bangkok Regional Attaché Eric McLoughlin.
The website and its administrators sparked a series of investigations around the world, leading to further arrests in Thailand, Australia, and the United States. Police in nearly 60 countries examined referrals compiled by New Zealand.
HSI Bangkok and HSI Indianapolis partnered with INTERPOL and DSI, as well as other law enforcement agencies, to pursue any investigative leads with a potential nexus to the United States. On January 16, 2018, HSI Bangkok assisted Thai authorities with the execution of search and arrest warrants in furtherance of this operation. One arrest was executed, and five victims were rescued at the time of the operation.
Following this operation, HSI Bangkok worked with the HSI Cyber Crimes Center (C3) to ensure actionable leads were provided to HSI domestic offices for further investigation. HSI Indianapolis, HSI Buffalo, HSI Ft. Lauderdale, HSI Norfolk, HSI Tyler, and C3 provided significant support for the operation.
To date, the operation has led to the rescue of 50 children, as well as the arrest and prosecution of child sex offenders in Thailand, Australia, and the United States.
Agents with HSI Tyler, acting upon information provided in the Operation Blackwrist lead, executed a search warrant on Dec. 20, 2018 at Charles Orange’s residence in Longview, Texas. A device containing child pornography was found next to Orange’s bed. According to the testimony of a forensic analyst, child pornography contained on the device had been accessed and downloaded as recently as the night before the execution of the search warrant. Additionally, analysts testified that Orange’s email address, Internet history, and Internet Protocol (IP) address connected him to the child exploitation website identified in Operation Blackwrist. Orange, a sex offender, was previously convicted in 2008 of Indecency with a Child.
This case is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
The investigation leading to the charges was conducted by agents from the U.S. Immigration and Customs Enforcement, Homeland Security Investigations, and the Longview Police Department with support from HSI C3. Assistant U.S. Attorneys Nathaniel C. Kummerfeld and Marisa Miller prosecuted this case.
Illegal Alien Convicted of Making False Statements During Purchase of FirearmRead the Press Release
Orlando, Florida –A federal jury has found Wilmer Eduardo Mejia-Palacios (36, Orlando) guilty of four counts of making a false statement to a federally licensed firearms dealer. Mejia-Palacios faces up to five years in federal prison on each count. His sentencing hearing is scheduled for December 16, 2020.
Mejia-Palacios had been indicted on February 12, 2020. A superseding indictment was returned on September 2, 2020.
According to testimony and evidence presented at trial, Mejia-Palacios attempted to purchase firearms in Orlando on four separate occasions. In connection with those attempted purchases, Mejia-Palacios completed firearms transaction record: ATF 4473, claiming that he was a United States citizen. Those claims were false. The Florida Department of Law Enforcement Firearm Purchase Program referred the case to agents at Homeland Security Investigations.
This case was investigated by Homeland Security Investigations, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Terry B. Livanos.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Hartford Man Sentenced to 57 Months in Federal Prison for Distributing PCPRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JORGE OQUENDO, also known as “G,” 35, of Hartford, was sentenced today by U.S. District Judge Janet C. Hall in Hartford to 57 months of imprisonment, followed by three years of supervised release, for distributing PCP.
According to court documents and statements made in court, in May 2019, the FBI’s Northern Connecticut Gang Task Force and Hartford Police Department received information that Oquendo was distributing a large quantity of packaged and liquid PCP from his Wilson Street residence. Investigators subsequently made a controlled purchase of PCP from Oquendo at his residence.
On May 22, 2019, investigators attempted to arrest Oquendo after he drove to a parking lot on Prospect Avenue in West Hartford. When multiple law enforcement vehicles closed in on Oquendo, he quickly accelerated, struck and damaged one police vehicle, drove across the parking lot, and then smashed his car into a second law enforcement vehicle that was blocking the exit to Prospect Avenue. A task force officer who occupied the second police vehicle was injured in the crash and briefly lost consciousness. Oquendo was apprehended and placed under arrest shortly thereafter.
At the time his arrest. Oquendo possessed a clear plastic bag containing smaller zip lock bags, each containing a black leaf substance soaked in PCP. A subsequent search of Oquendo’s residence revealed approximately 50 grams of black leaves soaked in PCP, more than seven grams of liquid PCP, items used to process and package narcotics for street sale, and approximately $14,000 in cash.
Oquendo’s criminal history includes convictions for firearm and assault offenses.
Oquendo has been detained since his federal arrest on May 31, 2019. On June 12, 2020, he pleaded guilty to one count of possession with intent to distribute phencyclidine (PCP).
The FBI’s Northern Connecticut Gang Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. This case was prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Grand jury indicts two Jefferson County Chiropractors and eight others for fraud schemeRead the Press Release
ST. LOUIS, MO – Dr. Thomas Hobbs and Dr. Vivian Carbone-Hobbs of Jefferson County were indicted with two members of their office staff, a former union representative of Anheuser-Busch In Bev, and five patients with conspiring to fraudulently obtain disability benefits from the Social Security Administration and disability insurance payments from providers of long-term and short-term disability insurance. The indictment charges Dr. Hobbs, Dr. Carbone-Hobbs, Clarissa Pogue, Christina Barrera, James Ralston, Elizabeth Guetersloh, Glenda Johnson, Sheila Huffman, Shannon Nenninger, and Gary Walesky with various violations including: conspiracy to defraud; health care fraud; and, theft of government funds.
According to the indictment, the defendants exaggerated the patients’ medical conditions and ability to care for themselves in order to qualify for the government disability benefits and the private insurance disability payments. The chiropractors also required their patients to undergo excessive medical treatments and diagnostic evaluations beyond what was medically necessary to pad their medical records. Beginning as early as 2011, AB In-Bev employees sought the chiropractors’ assistance because it permitted them to fraudulently obtain Social Security disability insurance benefit payments, a long-term disability insurance payment of $100,000.00 from Prudential Insurance Companies, and long-term and short-term disability benefits through Met-Life. In exchange, his patients paid him as much as $3,000.00 for each of the types of disability payments they were seeking in addition to insurance payments he collected from Blue Cross Blue Shield and United Health Care and payment for unreimbursed services from the patients.
The losses resulting from the false and fraudulent statements to the Social Security Administration and the private insurance disability providers exceeded $12,000,000.
Conspiracy to defraud carries a maximum penalty of five years imprisonment for each count and a fine of $250,000 or both. The health care fraud violations and the theft of government fund violations carry a maximum penalty of 10 years imprisonment for each count and a fine of $250,000 or both. Restitution to the victims is also mandatory.
In a separate indictment, the federal grand jury also charged Dr. Thomas Hobbs with being a convicted felon in possession of a firearm. That violation carries a maximum penalty of 10 years imprisonment and a fine of $250,000 or both.
Charges set forth in the indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The cases were investigated by the Social Security Administration – Office of Inspector General and the Federal Bureau of Investigation. Dorothy McMurtry and Tracy Berry are handling the cases for the U.S. Attorney’s Office.
Because the Social Security Administration provides benefits through the Disability Insurance Benefit Program to more than 8.4 million individuals a year at a monthly rate of more than $10.4 million, the Social Security Administration accepts reports of those suspected of committing fraud against the program through the Social Security Administration (SSA) Office of Inspector General Hotline at: 1-800-269-0271 or https://oig.ssa.gov/report/.
Grand jury indicts St. Louis County woman who made false claims to MedicaidRead the Press Release
ST. LOUIS, MO – On September 17, 2020, a federal grand jury indicted Yvonne Woods on three counts of making false, fictitious or fraudulent claims. The 50 year old is a resident of St. Louis County.
According to the indictment, between January 2014 and May 2019, Woods claimed to be homebound and in need of receiving home health care benefits funded by the Missouri Medicaid program.
The indictment states that Woods arranged to receive and continue to receive home health care from the program through a local home health care company. As part of the arrangement, Woods underwent training and signed timesheets on a regular basis.
Initially, Woods received some health care services from an attendant. However, in October 2014, the attendant obtained a full-time job with another employer and stopped provided services to Woods. Later, Woods set-up a bank account using the attendant’s name with the defendant’s contact information. Woods submitted false timesheets on a weekly basis, and received the payments. When Medicaid paid the claims, without knowing the false and fraudulent nature, Woods obtained and spent the money from the account using the attendant’s name. Woods used the money to pay for utilities, a cell phone bill, food, and other expenses.
“Medicaid funds are vital to providing beneficiaries with critical health and human services. Therefore, these funds must be carefully guarded,” said Curt L. Muller, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Siphoning money from this program is a disservice to Missouri beneficiaries and the taxpayers who fund such programs.”
For each count, Woods faces a maximum punishment five years of imprisonment and a fine of up to $250,000. Woods is presumed innocent until proven guilty.
The MO Healthnet program, with assistance from the Medicaid Fraud Control Unit of the Missouri Attorney General’s Office, the U.S. Department of Health and Human Services, Office of Inspector General, and Federal Bureau of Investigation investigated this case.
Grand Jury indicts St. Louis man for several armed robberiesRead the Press Release
ST. LOUIS, MO - St. Louis – On September 17, 2020, a federal grand jury indicted Louquincy Carr for four counts of armed business robbery, four counts of brandishing a firearm in connection with those robberies, and one count of being a felon in possession of a firearm. The 35-year-old St. Louis resident was previously charged by a federal complaint regarding one of these robberies.
According to the criminal complaint, on July 24, 2020, Carr entered a T-Mobile store located on South Grand Boulevard in St. Louis. Carr looked at some display phones before approaching the counter. At the counter, an employee showed Carr what appeared to be an iPhone in its box. Then, Carr pointed a silver handgun at the employee and demanded money from the register while also placing the boxed phone into his pants pocket. The employee complied and gave Carr the money. Thereafter, Carr forced the employee into the back office at gunpoint. Carr then fled the store on foot.
According to Court documents, digital surveillance video captured the following image documenting the robbery.
According to court documents, on August 4, 2020, Carr entered the same T-Mobile store and looked around for a short time. He approached an employee, produced a silver handgun and demanded money from the register. The employee compiled and removed money from the cash drawer. After taking money and the wallet, Carr led two employees and two customers into a back room at gunpoint.
According to Court documents, digital surveillance video captured the following image documenting the robbery.
According to Court documents, on August 14, Carr entered a Boost Mobile store, located at 3706 South Grand Boulevard and approached the employee at the register. After the employee and Carr had a conversation, Carr produced a silver handgun and demanded money. The employee complied and removed money from the register. After taking the money from the first employee, Carr turned to a second employee and demanded money from the second employee. Carr then ordered the two employees to a back office, at gunpoint. Once in the back office, asked where the “good phones” were and forced an employee, at gunpoint, to put multiple phones into a bag Carr had with him. After the bag was filled, Carr ordered the two employees into the bathroom and ran out the back door.
According to Court documents, digital surveillance video captured the following image documenting the robbery.
According to Court documents, on August 25, 2020, a male entered a Wingstop Restaurant, located at 3626 South Grand Boulevard, in St. Louis. Carr entered the restaurant and walked near the counter. Carr waited for a short period of time, walked behind the counter, removed a silver handgun from his pocket and pointed it employees. Carr ordered an employee to open the register and remove the money. The employee complied and handed the money from the register to Carr. Carrt then ordered an employee to open the safe. The employee complied and handed Carr money from the safe. Carr took the money and ordered all store employees into a back room of the restaurant. Once all employees were in the back room, Carr ordered two employees to open the back door at which time the male fled from the restaurant.
According to Court documents, digital surveillance video captured the following image documenting the robbery.
According to court documents, forensic evidence led to the identification of Carr. Court documents further reflect that on September 10, 2020, Carr was taken into custody by law enforcement and search warrants were executed at two different residences at which the Carr is known to stay. Located during the execution of the search warrant was a silver handgun that appeared to be consistent with the gun the Carr used during the charged robbery.
This investigation is part of Operation LeGend, which is a federal partnership with local law enforcement to address the increase in homicides and violent crime in St. Louis in 2020.
The Federal Bureau of Investigation and St. Louis Metropolitan Police Department investigated the case. The case was handled by Special Assistant United States Attorney (SAUSA) Jen Szczucinski as part of the Safer Streets Initiative. The initiative was launched by Attorney General Schmitt and U.S. Attorney Jeff Jensen in January of 2019 as an unprecedented state and federal partnership to prosecute violent crime in St. Louis.
Charges set forth in the indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Georgia Woman Who Allegedly Preyed on Vulnerable South Florida Seniors to Steal More than $1 Million Charged in Federal Court West Palm BeachRead the Press Release
Miami, Fl. -- South Florida federal prosecutors have charged a 41-year-old Georgia woman with fraud and identity theft crimes for allegedly leading a scam that tricked over 250 elderly South Floridians into turning over their credit cards, debit cards, and related personal identification numbers. According to the charges, defendant and her co-conspirators used the cards and PINs to steal over $1 million.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Brian Swain, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, and Sheriff Ric Bradshaw, Palm Beach County Sheriff’s Office (PBSO), made the announcement.
According to the allegations in the criminal complaint affidavit, over approximately four years starting in 2016, Edtronda Simon, of Fayette County, Georgia, ran an elder fraud scheme that generally operated as follows: Simon would cold-call elderly victims in South Florida, pretend to be from the fraud department of each senior’s bank, and convince the seniors that their accounts had been compromised, which was false. Once a senior seemed convinced, Simon would offer to send a “bank representative” to the elderly victim’s home to exchange any compromised credit or debit card with a new one, says the complaint. Usually with Simon still on the call trying to persuade the senior to verify a PIN number, a co-conspirator would arrive at the victim’s home, take the victim’s credit or debit card, and promise to return with a new one (which, of course, never happened), according to the complaint affidavit. The co-conspirators allegedly would use the seniors’ credit cards, debit cards, and PINs to withdraw cash from ATMs, purchase money orders, and otherwise drain money from the accounts as quickly as possible – before real bank fraud representatives caught on to the illegal activity.
The complaint charges that through this scheme, Simon and her co-conspirators duped over 250 seniors from Broward, Palm Beach, St. Lucie, Indian River and other South Florida counties into turning over debit cards, credit cards, and related information. They defrauded banks of over $1 million, says the complaint affidavit.
In a separate case filed earlier this year in the Southern District of Florida (case no. 20-cr-80037), prosecutors charged six of Simon’s co-conspirators for their involvement in this elder fraud scheme: Shaumbrica Stubbs, Luclesse Vernesse, Samuel Charles, Ian Felder, Diedre Dixon, and Shaquille Robinson, all Florida residents. Stubbs and Charles have pleaded guilty.
Simon had her initial appearance on September 17, 2020, before a federal magistrate judge in Georgia, where law enforcement officers arrested her. Other proceedings will take place in federal court in West Palm Beach, Florida, where the U.S. Attorney’s Office filed the charges of access device fraud, bank fraud, and aggravated identity theft against Simon.
“Elder fraud targets some of the most vulnerable members of our community,” said U.S. Attorney Ariana Fajardo Orshan. “People who steal from seniors while pretending to help them are the worst kind of criminal because they exploit human trust. We will vigorously prosecute such cases in order to protect the integrity of our financial systems, and to prevent financial and emotional losses to those who can least afford them.”
USSS Miami and PBSO are handling the investigation, along with federal task force officers from the Coral Springs Police Department, Pembroke Pines Police Department, and Plantation Police Department. Assistant U.S. Attorney Susan Rhee Osborne of the Southern District of Florida is prosecuting the case. Assistant U.S. Attorneys Chris Huber, Russell Phillips, Jolee Porter, and Alex Sistla of the Northern District of Georgia provided substantial assistance.
U.S. Attorney Fajardo Orshan explained that this was a team effort not just for law enforcement, but for prosecutors as well. “We could not have located and arrested Edtronda Simon without the exceptional assistance from the U.S. Attorney’s Office for the Northern District of Georgia,” she said.
Combatting elder abuse and financial fraud targeted at seniors is a key priority of the Department of Justice. The mission of the Department’s Elder Justice Initiative is to support and coordinate the Department’s enforcement and programmatic efforts to combat elder abuse, neglect and financial fraud and scams that target our nation’s seniors. To learn more visit https://www.justice.gov/elderjustice. The public is encouraged to report victimization and suspected fraud schemes by calling the National Elder Fraud Hotline at 1-833-FRAUD 11 (1-833- 372-8311).
A federal criminal complaint is merely an accusation. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Related court documents and information appear on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 20-mj-8241.
Attachments:
Complaint against Simon Charges against co-conspiratorsForty Two Individuals Indicted in August & September Grand JuriesRead the Press Release
MUSKOGEE, OKLAHOMA – United States Attorney Brian J. Kuester today announced the results of the August & September 2020 Federal Grand Juries. The combined grand juries returned 32 unsealed and 4 sealed indictments on crimes ranging from kidnapping, federal firearms offenses, robbery, drug trafficking/distribution, child exploitation, aggravated sexual assaults in Indian country, and murder in Indian country.
The following named individuals have been charged with a federal crime or crimes by the return of an indictment by the Grand Jury. A grand jury Indictment does not constitute evidence of guilt. A grand jury Indictment is a method of bringing formal charges against the defendant. A defendant is presumed innocent of the charges and may not be found guilty unless evidence establishes guilt beyond a reasonable doubt. United States Sentencing Guidelines may be considered, upon conviction, by the sentencing court. Federal prison sentences are non-parolable.
JIMCY MCGIRTAggravated Sexual Abuse In Indian Country (Three Counts)
McGirt, 71, of Wagoner County, is charged with 3 counts of sexual abuse of a minor. Allegations are, in 1996, McGirt knowingly engaged in sexual acts with a child under the age of 12.
The Federal Bureau of Investigation is the primary investigative agency.
MICHAEL WAYNE MILLER
Felony Child Abuse In Indian Country (Two Counts)
Miller, 41, of Muskogee, is charged with willfully striking and injuring a child under the age of eighteen in January 2019.
The Federal Bureau of Investigation is the primary investigative agency.
BRANDON EDWARD BRIDGES
Child Neglect In Indian Country
Bridges, 24, of Muskogee, is charged with neglecting the health, safety and welfare of children under his supervision and exposing them to the use and possession of illegal drugs and illegal activities.
The Federal Bureau of Investigation is the primary investigative agency.
JAYCE MICHAEL MOSQUITO
Aggravated Sexual Abuse In Indian Country
Mosquito, 33, of Okmulgee, is charged with sexual abuse of a minor in Indian Country, alleging in June, 2018, Mosquito knowingly engaged in sexual activity with a child under the age of 12.
The Federal Bureau of Investigation is the primary investigative agency.
CALEB TRENT HODGINS
TYLER SHANE GRANDSTAFF
TYLER ROSS DEERINWATERMurder In Indian Country
Use, Brandish, Discharge, And Carry A Firearm During And In Relation To A Crime of Violence
Assault With Intent To Commit Murder In Indian Country (Three Counts)Hodgins, 25, of Holdenville; Grandstaff, 29, of Seminole, and Deerinwater, 29, of Holdenville, are charged with brandishing and using a Smith & Wesson .40 caliber pistol to kill Jonathon Merriman on or about June 24, 2018.
The Federal Bureau of Investigation is the primary investigative agency.
NATHAN JOE CHECOTAH
Assault Of An Intimate Partner And Dating Partner In Indian Country
Assault With A Dangerous Weapon With Intent To Commit Bodily Harm In Indian CountryChecotah, 26, of Okmulgee, is alleged to have assaulted his dating partner by suffocating and strangling her.
The Federal Bureau of Investigation and Sapulpa Police Department are the investigative agencies.
JOSHUA RYAN GANN
Murder In Indian Country
Gann, 29, of Wetumka, is charged with the premeditated murder of his grandfather, Gregory Lee Fish, with a sword.
The Federal Bureau of Investigation is the primary investigative agency.
KYLE ELLIOTT LEITKA
Abusive Sexual Contact In Indian Country
Leitka, 31, of Weleetka, is charged with having sexual contact with the victim without permission.
The Federal Bureau of Investigation is the primary investigative agency.
KYLE JOSEPH VANNORTWICK
Murder In Indian Country
Vannortwick, 35, of Muskogee, is charged with the premeditated murder of his identical twin brother, Adam Vannortwick, with a knife.
The Federal Bureau of Investigation is the primary investigative agency.
MARK KEVIN DODSON
SETH HENRY THOMASArson In Indian Country
Dodson, 51, of Okemah and Thomas, 22, of Okemah, are charged with conspiring and maliciously setting fire to a dwelling in Indian country, on or about September 15, 2019.
The Federal Bureau of Investigation is the primary investigative agency.
TOMMY RYAN GOUGE
Murder In Indian Country
Gouge, 41, of Clearview, is charged with the premeditated murder of his wife, Stephanie Michelle Gouge, on February 14, 2020, with an edged weapon.
The Federal Bureau of Investigation is the primary investigative agency.
JEREMY SANUEL HOOTEN
Assault With A Dangerous Weapon In Indian Country
Assault Resulting In Serious Bodily Injury In Indian Country
Robbery In Indian Country
Use, Carry, And Brandishing A Firearm During And In Relation To A Crime Of Violence
First Degree Burglary In Indian CountryHooten, 19, of Eufaula, is charged with breaking and entering into a home and, restraining, violently assaulting, and robbing an elderly victim at gun point. In the commission of the robbery, the victim sustained lacerations to the head.
The Federal Bureau of Investigation is the primary investigative agency.
AUSTIN DEAN MCMAHAN
Murder In Indian Country (Two Counts)
McMahan, 21, of Okmulgee, is charged with the premeditated murder of Mandy Hart (his girlfriend) and Ronald Chandler by shooting them both with a firearm.
The Federal Bureau of Investigation is the primary investigative agency.
GAGE HAYDEN ROSS
Assault With Intent To Commit Murder In Indian Country
Assault With A Dangerous Weapon With Intent To Do Bodily Harm In Indian Country
Assault Resulting In Serious Bodily Injury In Indian Country
Use, Carry And Discharge Of A Firearm During And In Relation To A Crime Of ViolenceRoss, 22, of Oktaha, is charged with shooting a victim in the back with a firearm with intent to kill.
The Federal Bureau of Investigation is the primary investigative agency.
MATTHEW ROY LAWSON
Sexual Exploitation Of A Child / Use Of A Child To Produce A Visual Depiction
Possession Of Certain Material Involving The Sexual Exploitation Of A MinorLawson, 33, of Springdale Arkansas, is charged with willfully trying to persuade a person under the age of 12 years old to engage in sexually explicit conduct and using a child to produce visual depictions of a sexual nature.
The Federal Bureau of Investigation is the primary investigative agency.
DIAMOND LEVI BRITT
Murder In Indian Country
Britt, 25, of Henryetta, is charged with the premeditated murder of his father, Gary Britt, on or about September 16, 2019, with a sword.
The Federal Bureau of Investigation is the primary investigative agency.
MARTHA CHRISTINE SIMPSON
JABAICA LEE TECUMSEH
TOMMY GLEN TECUMSEHMurder In Indian Country
Simpson, 44, of Broken Arrow; J. Tecumseh, 40, of Okmulgee, and T. Tecumseh, 33, of Okmulgee, are all charged with the premeditated stabbing murder of Robert Trevor Richardson.
The Federal Bureau of Investigation is the primary investigative agency.
CAMERON AUSTIN BURGESS
Assault Resulting In Substantial Bodily Injury To A Spouse, Intimate Partner, Or Dating Partner In Indian Country
Assault Resulting In Serious Bodily Injury In Indian Country
Use, Carry, And Discharge Of A Firearm During And In Relation To A Crime Of ViolenceBurgess, 22, of Morris, is charged with assaulting his partner with a firearm, causing substantial bodily injury by gunshot wound.
The Federal Bureau of Investigation is the primary investigative agency.
PATRICK DWAYNE MURPHY
Murder In Indian Country
Murder In Indian Country In Perpetration Of Kidnapping
Kidnapping Resulting In DeathMurphy, 51, of Vernon, is charged with the kidnapping and premeditated murder of George Jacobs, on August 28, 1999, with a knife.
The Federal Bureau of Investigation is the primary investigative agency.
SOLOMON LAMONT HORSECHIEF
Aggravated Sexual Abuse In Indian Country (Four Counts)
Horsechief, 35, of Muskogee, is charged with four counts of sexual abuse of a person under the age of 16 years old and administering intoxicants to said minor.
The Federal Bureau of Investigation is the primary investigative agency.
DENNIS DEWAYNE CANTRELL
Possession With Intent To Distribute Heroin
Possession With Intent To Distribute Methamphetamine
Possession Of Firearm In Furtherance Of A Drug Trafficking Crime
Felon In Possession Of A FirearmCantrell, 29, of McAlester, is charged with possession of heroin and methamphetamine with intent to distribute. Cantrell is further charged as a felon in possession of a firearm in furtherance of drug trafficking crime.
The Drug Enforcement Administration is the primary investigative agency.
MIKE AVERY THOMPSON, JR.
Assault With A Dangerous Weapon With Intent To Commit Bodily Harm In Indian Country
Assault Resulting In Serious Bodily Injury In Indian CountryThompson, 30, of Okemah, is charged with the stabbing, resulting in serious bodily harm, of a male in Indian Country.
The Federal Bureau of Investigation is the primary investigative agency.
NELSON ONARO, D.O.
Unlawful Distribution And Dispensing Of Controlled Substances (Twenty Four Counts)
Onaro, a 67 year-old Doctor of Osteopathic Medicine out of McAlester, is charged with illegally dispensing and distributing controlled substances from approximately May 23, 2019, to on or about November 26, 2019.
The Drug Enforcement Administration is the primary investigative agency.
COLTON DELAIN EDWARDS
JOBE ANTHONY TERRONEZ
PHILLIP LEMONT JONES, JR.
JAKEYVIOUS DUNE LEE KEY
JAYSEA MARKARA WILLIAMSAssault With Intent To Commit Murder In Indian Country (Two Counts)
Attempted Robbery In Indian Country (Two Counts)
First Degree Burglary In Indian Country (Two Counts)
Assault With A Dangerous Weapon, With Intent To Do Bodily Harm In Indian Country (Two Counts)
Use, Carry, And Discharge Of A Firearm During And In Relation To A Crime Of Violence
Firearms ConspiracyEdwards, 19, Terronez, 19, Jones Jr., 19, Key, 19, and Williams, 19, all of Haskell, allegedly used firearms to attempt to shoot, assault, and ultimately murder victims during the commission of a burglary and attempted robbery.
The Federal Bureau of Investigation is the primary investigative agency.
JOHNATHAN ZAMUDIO
Murder In Indian Country
Zamudio, 33, of Muskogee, is charged with the premeditated stabbing murder of Keith Dean Boswell, while in a physical altercation with the victim outside of a Family Dollar store in the city of Muskogee.
The Federal Bureau of Investigation is the primary investigative agency.
JOSHUA RYAN GREEN
Murder In Indian Country (Two Counts)
Arson In Indian CountryGreen, 30, of Okemah, is charged with the premeditated murder of his former girlfriend’s mother and brother with a firearm. Green is also charged with maliciously setting a fire to the incident residence.
The Federal Bureau of Investigation is the primary investigative agency.
DORION LAROY MARTIN
Assault With Intent To Commit Murder In Indian Country
Assault With A Dangerous Weapon With Intent To Commit Bodily Harm In Indian Country (Two Counts)
Assault Resulting In Serious Bodily Injury In Indian Country
Use, Carry And Discharge Of A Firearm During And In Relation To A Crime Of Violence
Felon In Possession Of FirearmMartin, 28, of Muskogee, allegedly used a firearm to attempt to shoot, assault, and ultimately murder victims by causing serious bodily injury during an altercation. Martin is further charged as a felon in possession of a firearm in relation to a crime of violence.
The Federal Bureau of Investigation is the primary investigative agency.
KYLE JOE MAXWELL
Robbery In Indian Country
Maxwell, 26, of Weleetka, allegedly robbed a convenience store at gunpoint in Okfuskee County on November 8, 2017.
The Federal Bureau of Investigation is the primary investigative agency.
MATTHEW WEST NIX
Involuntary Manslaughter In Indian Country
Nix, 33, of Morris, is charged with involuntary manslaughter after causing a car accident, resulting in the death of a woman, while driving impaired.
The Federal Bureau of Investigation is the primary investigative agency.
STEPHEN JACK NELSON
Assault With A Dangerous Weapon With Intent To Commit Bodily Harm In Indian Country
Nelson, 32, of McAlester, is charged with discharging a firearm with intent to cause bodily harm during a verbal altercation.
The Federal Bureau of Investigation is the primary investigative agency.
RAITHIELE ROBINSON
SKY ANGEL WRIGHTMurder In Indian Country In Perpetration Of Robbery
Attempted Robbery
ConspiracyRobinson, 46, of Broken Arrow and Wright, 25, of Broken Arrow, allegedly caused the unlawful killing of the victim, Mikael Parker, during the commission of the robbery.
The Federal Bureau of Investigation is the primary investigative agency.
DAVID NEIL DUNN
Assault Resulting In Serious Bodily Injury In Indian Country
Use, Carry, And Discharge Of A Firearm During And In Relation To A Crime Of ViolenceDunn, 20, of Muskogee, is charged with brandishing and discharging a shortened .22 caliber rifle that resulted in a female victim sustaining gunshot wounds on October 9, 2019.
The Federal Bureau of Investigation is the primary investigative agency.
Former Savannah finance company employee sentenced to federal prison for bank fraudRead the Press Release
SAVANNAH, GA: A former employee of a Savannah finance company was sentenced to federal prison for committing bank fraud.
Dean Emerson Flake, 58, of Brooklet, Ga., was sentenced to 20 months in federal prison followed by 13 months of home confinement by U.S. District Court Judge William T. Moore after pleading guilty to one count of Bank Fraud, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. After completion of his prison term, Flake will be required to serve three years of supervised release.
“Stealing from your own long-time employer displays callous disregard for those who have placed employees in positions of trust,” said U.S. Attorney Christine. “Dean Flake squandered his opportunity to earn an honest living when he bit the hand that generously fed him, and thus will now dine in a prison cafeteria.”
According to court documents and testimony, Flake was employed for nearly 35 years as an Accounts Payable Processor at a finance company in Chatham County. In 2019, he began forging signatures on checks drawn on the company’s checking account and depositing them in his own account.
By the time his scheme was detected, Flake had stolen more than $1.6 million from his employer. The government identified, seized and forfeited $975,138.79 from the scheme, and after his arrest Flake admitted to stealing the money to feed a gambling addiction.
The case was investigated by the U.S. Secret Service, and prosecuted for the United States by Assistant U.S. Attorney Xavier A. Cunningham, Section Chief of the Asset Recovery Unit of the U.S. Attorney’s Office.
Former Marine and Current Illinois State Trooper Charged in Conspiracy to Steal, Sell, and Ship Government PropertyRead the Press Release
RALEIGH, N.C. – A Yorkville, IL man was arrested on charges of conspiracy, theft of government property, and interstate transportation of stolen goods.
According to court documents, Rafael Montalvo, 31, is a former Individual Material Readiness List (IMRL) Manager aboard Marine Corps Air Station Cherry Point, NC, and a current Illinois State Trooper and member of the Illinois National Guard. He conspired with others in and outside the State of North Carolina to steal government-owned avionics and electronic testing equipment from multiple Marine Aviation Squadrons, and ship the stolen goods interstate to buyers located in other states. The conspiracy, alleged to have occurred between March 2018 and the present, is described as having used IMRL managers with access to the avionics equipment to steal from the military installations, and then either ship directly to Montalvo or to persons whom Montalvo directed. Montalvo received payment from the buyer, and paid those who reportedly stole the equipment for him.
Montalvo is charged with violations of 18 U.S.C. § 641, theft of government property, 18 U.S.C. § 2314, interstate transportation of stolen goods, and 18 U.S.C. § 371, conspiracy to undertake those crimes. He faces a maximum penalty of 300 months in prison if convicted.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement. The Naval Criminal Investigative Service, with assistance from the Defense Criminal Investigative Service, is investigating the case.
A copy of this press release is located on our website.
A criminal complaint is merely an accusation. The defendant is presumed innocent until proven guilty.
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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.
Former Holyoke Teacher Sentenced for Possession of Child PornographyRead the Press Release
BOSTON – A former Holyoke kindergarten teacher was sentenced today in federal court in Worcester for possession of child pornography.
Gregory Lisby, 40, of Worcester, was sentenced by U.S. District Court Judge Timothy S. Hillman to six years in prison and five years of supervised release. In February 2020, Lisby pleaded guilty to one count of possession of child pornography. Lisby was arrested and charged on Sept. 13, 2019, and resigned the day before from his position as a kindergarten teacher for the Holyoke Public Schools.
Law enforcement discovered an image depicting child pornography that had been uploaded to a Microsoft OneDrive account that belonged to Lisby. Approximately 180 images and 15 videos of child pornography were identified on the OneDrive. On Sept. 11, 2019, a search was executed at Lisby’s home where Lisby’s iPad and cellphone were recovered. On those devices, investigators found login credentials for the OneDrive account used to store the child pornography.
United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. The Worcester, Holyoke, Northboro and Southboro Police Departments and the Massachusetts State Police provided assistance with the investigation. Assistant U.S. Attorney Kristen Noto of Lelling’s Worcester Branch Office prosecuted 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/.
Former High School Classmates Charged in 34 Count Indictment for Defrauding Corporation of $7.2 MillionRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that a pair of former high school classmates have been indicted for allegedly defrauding a multinational energy development corporation of approximately $7.2 million.
Forrest Wright, 40, and Nathan Keays, 40, both of Anchorage, have been named in a 34 count indictment charging them with wire fraud, conspiracy to commit wire fraud and money laundering.
From January 2012 to December 2019, Wright was employed by a multinational energy development corporation as a Senior Drilling and Wells Planner, responsible for ordering materials and labor for the drilling and wells program. Wright had authority to approve orders up to $1 million and was trusted to endorse and recommend vendor suppliers for approval. Keays is employed as a police officer with Anchorage Police Department and owns a personal business, Eco Edge Armoring, LLC (Eco Edge).
The indictment alleges beginning in February 2019, Wright devised a scheme to defraud his employer, a multinational energy development corporation, of monies. In furtherance of the scheme and using his trusted position within the company, Wright authored emails containing technical data and industry specific content in order to present Eco Edge as a legitimate oil and gas business with the purpose of obtaining an approved vendor status with his employer. Wright sent the emails from his personal email account to Keays with instructions to send the emails to Wright’s business email account. Wright then used the correspondence as a basis to obtain approved vendor status for Eco Edge. Once Eco Edge received an approved vendor status, Keays submitted fraudulent invoices in the amount of $3,251,383 for materials that did not exist and labor that was not performed. Wright used his trusted position within the company to instruct other employees to approve payment of the invoices, falsely representing the materials were accounted for and that work had been performed. Electronic payments in the amount of $3,087,720 were made from the victim business to Eco Edge’s business banking account. Keays then paid a kickback to Spectrum Consulting Business, a business wholly owned by Wright. Wright and Keays used the proceeds of the scheme on personal expenses, real estate and supporting their ongoing purported business operations.
The indictment further alleges that also beginning in February 2019 and continuing through December 2019, Wright, independent of Keays, devised another similar scheme by manufacturing and representing a business, “DB Oilfied Support Services” (DB Oilfield) as a legitimate oil and gas company, with the purpose of obtaining an approved vendor status with his employer. Wright furthered the perception of a legitimate oil and gas industry business by hiring a contractor to create a website for the business and creating a business email account for DB Oilfield. Wright then recommended DB Oilfield be approved as a vendor by his employer. Once DB Oilfield was approved as a vendor, Wright then authored and sent emails from the DB Oilfield email account to his official business email account, and used the correspondences to justify contract awards to DB Oilfield. Wright then caused fraudulent invoices in excess of $4.1 million for materials that did not exist to be submitted to Victim Business. Wright used his trusted position within the company to instruct other employees to approve payment of the invoices, falsely representing the materials were accounted for when the materials did not exist. Electronic payments in the amount of $4,148,000 were made from the victim business to the DB Oilfield business banking account. Wright then caused monies from the DB Oilfield business banking account to be deposited into the Spectrum Consulting Services business banking account. Wright purportedly used the proceeds on personal expenses and real estate property.
If convicted, Wright and Keays each face up to 20 years in prison and a maximum fine of $250,000. Under federal sentencing statutes, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
The Federal Bureau of Investigation (FBI) conducted the investigation leading to the indictment in this case. This case is being prosecuted by Assistant U.S. Attorney Charisse Arce.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Former Clovis Pastor Pleads Guilty to Real Estate Development Fraud SchemeRead the Press Release
FRESNO, Calif. — Sherman Smith, 74, of Monterey, pleaded guilty today to wire fraud, U.S. Attorney McGregor W. Scott announced.
According to court documents, Smith was the executive pastor of a church in Clovis. Smith induced investors, including church congregants, to give money to the church by representing that the money would be used to finance a real estate development project for the benefit of the church. Smith made appeals from the pulpit, via email, and in person for monies to pay off the church’s mortgage and fund an income-generating development.
Smith collected cash, checks, and rolled-over retirement accounts to fund the church’s project, but he did not disclose to investors that he used the money for personal expenses, to operate a publishing business, and to invest in foreign ventures. Smith defrauded investors of more than $2 million.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Laura D. Withers is prosecuting the case.
Smith is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on Dec. 11. Smith faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Falmouth Man Charged with Fraud, Theft and Impersonating a Federal OfficerRead the Press Release
PORTLAND, Maine: A federal grand jury indicted a Falmouth man for federal program fraud, wire fraud, false personation and theft of government benefits, U.S. Attorney Halsey B. Frank announced today.
According to the indictment and a criminal complaint, between 2014 and 2017, Joshua Cory Frances, 43: (a) impersonated a Department of Homeland Security law enforcement official; (b) obtained by fraud, over $700,000 worth of excess equipment from the Department of Defense; (c) converted to his own use, a 44-foot sailing vessel named COURAGEOUS, and a 27‑foot Boston Whaler power boat and two Mercury Marine 150-horsepower outboard engines; (d) embezzled almost $21,000 from his employer to transport the boats and engines to Maine; (e) evaded more than $3,000 in state excise taxes on personally owned vehicles; and (f) stole $9,630 in Supplemental Nutrition Assistance Program benefits to which he was not entitled.
The U.S. Department of Homeland Security, Office of Inspector General; the Defense Criminal Investigative Service; the Office of the Maine Attorney General; the Maine Department of the Secretary of State, Bureau of Motor Vehicles; and the Maine Department of Health and Human Services investigated the case, with assistance provided by the FBI and the Falmouth and Brunswick Police Departments.
Criminal complaints and indictments are merely accusations and a defendant is presumed innocent unless proven guilty in a court of law beyond a reasonable doubt.
Dominican Man Sentenced to 132 Months for Fentanyl TraffickingRead the Press Release
CONCORD - Jorge Rodriguez, 23, a citizen of the Dominican Republic most recently residing in Lawrence, Massachusetts, was sentenced on Thursday to 132 months in federal prison for fentanyl trafficking, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, a drug trafficking organization, which was led by Sergio Martinez, employed Rodriguez and others to sell fentanyl to customers from various New England states, including New Hampshire. On each date that Rodriguez worked, the Martinez organization provided him with at least one 200-gram bag of fentanyl and expected him to sell it and return approximately $6,000 in proceeds.
Rodriguez previously pleaded guilty on February 28, 2019. He faces likely deportation to the Dominican Republic after serving his sentence.
“This defendant worked for a drug trafficking enterprise that obtained fentanyl from a Mexican supplier in order to sell the drug to Granite Staters,” said U.S. Attorney Murray. “These activities contributed to an opioid crisis that has had a devastating impact on the people of New Hampshire. In order to fight back, we are working with our law enforcement partners each day to stop the flow of fentanyl and prosecute dealers. The 132-month prison sentence imposed in this case should serve as a warning to those who choose to trade in this deadly drug.”
“The state of New Hampshire is faced with an opioid crisis unlike ever before,” said DEA Special Agent in Charge Brian D. Boyle. “Fentanyl is causing great damage to our communities and DEA’s top priority is to aggressively pursue anyone who destroys lives by distributing this poison for profit.”
The case was a collaborative investigation that involved the DEA; the New Hampshire State Police; the Hillsborough County Sheriff’s Office; the Nashua Police Department; the Massachusetts State Police; the Massachusetts Attorney General’s Office; the New Hampshire Attorney General’s Office; the Essex County District Attorney’s Office; the Internal Revenue Service; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; United States Customs and Border Protection Boston Field Office; the United States Marshals Service; the United States Department of State’s Diplomatic Security Service; the Manchester Police Department; the Lisbon Police Department; the Littleton Police Department; the Seabrook Police Department; the Haverhill (MA) Police Department; the Methuen (MA) Police Department; the Lowell (MA) Police Department; and the Maine State Police.
The case was prosecuted by Assistant United States Attorneys Georgiana L. MacDonald and Seth R. Aframe.
Agencies participating in this investigation are part of the Organized Crime Drug Enforcement Task Force (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.
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Denver Convicted Felon Sentenced to 40 Months in Prison for Illegally Possessing FirearmRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that Andre Daniel Gilmore of Denver was sentenced on September 16, 2020, to serve 40 months in prison for being a felon in possession of a firearm, to run concurrent to his 16 year state prison sentence for attempted murder in Denver County. The Denver Field Division of the ATF joined in this announcement.
According to the stipulated facts contained in Gilmore’s plea agreement, on May 12, 2017, a Denver Police officer was patrolling along the Speer Boulevard corridor in Denver because of recent property crimes. At approximately 2:40 a.m., the officer observed a male, later identified as Gilmore, on a bicycle, possibly casing buildings. The officer approached Gilmore and took him into custody after Gilmore lied about his name. When additional officers arrived Gilmore gave his real name and stated he had a gun. The officers recovered a loaded 9mm pistol. A records check on the firearm determined it was stolen. At the time of his arrest, Gilmore was free on bond from the attempted murder case in Denver County.
Gilmore is prohibited from possessing firearms because he was previously convicted of a felony. In 2014, Gilmore pleaded guilty and was sentenced to serve 28 months in prison for being a felon in possession of a firearm. In 2004, he was convicted of robbery.
“This office has taken a hard line on felons who illegally possess firearms,” said U.S. Attorney Jason Dunn. “In Colorado, federal sentences for felon in possession are much tougher than at the state level, and I have told local law enforcement that we will gladly take these cases for prosecution to help them rid their communities of the worst and most violent actors.”
“The defendant violated Federal firearms law in addition to disrupting the safety of the public,” said ATF Denver Field Division Special Agent in Charge David Booth. “ATF and our law enforcement partners will tirelessly pursue those that bring violent crime into our communities with every tool at our disposal.”
Gilmore was prosecuted by Assistant U.S. Attorney Jason St. Julien. The sentence was pronounced by U.S. District Court Judge William J. Martinez. The case was investigated by the Denver Field Division of the ATF and the Denver Police Department.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Colorado. Related court documents can be found on PACER. The defendant’s case number is 17-cr-327.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Davidson Duo Sentenced in Counterfeit Currency CaseRead the Press Release
GREENSBORO, N.C. - Two Davidson County residents were sentenced today in federal court for their roles in conspiring to defraud the United States, in violation of Title 18, United States Code, Section 371, announced United States Attorney Matthew G.T. Martin of the Middle District of North Carolina.
JAMES DAVID SHORES, age 37, and JESSICA ROSE ALFORD, age 22, were sentenced by United States District Court Judge Catherine C. Eagles in Greensboro. According to court documents, SHORES and ALFORD conspired to produce and pass counterfeit United States currency. The two used the counterfeit currency to purchase items from retail stores, such as Lowe’s Home Improvement and Home Depot, throughout the state of North Carolina.
SHORES was sentenced to 60 months in prison and three years of supervised release. The Court also ordered SHORES to pay $241,160 in restitution. The Court sentenced ALFORD to 27 months in prison along with three years of supervised release. ALFORD, who joined the conspiracy after SHORES, was also ordered to pay $212,880 in restitution.
U.S. Attorney Martin and Special Agent in Charge of the Charlotte Field Office, Reginald Dematteis II of the United States Secret Service thanked special agents of United States Secret Service, who conducted the investigation, and Assistant U.S. Attorney Tanner Kroeger, who prosecuted the case.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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DOJ requires divestiture in order for Anheuser-Busch to acquire Craft Brew AllianceRead the Press Release
WASHINGTON – The Department of Justice announced today that it is requiring Anheuser-Busch InBev SA/NV (ABI), its wholly-owned subsidiary Anheuser-Busch Companies LLC (AB Companies), and Craft Brew Alliance Inc. (CBA) to divest CBA’s entire Kona brand business in the state of Hawaii and to license to the acquirer the Kona brand in Hawaii in order for AB Companies, a minority shareholder in CBA, to proceed with its proposed acquisition of the remaining shares of CBA. The department has approved PV Brewing Partners, LLC as the acquirer. The proposed settlement will maintain competition in the beer industry in Hawaii benefitting consumers.
The Justice Department’s Antitrust Division filed a civil antitrust lawsuit today in the U.S. District Court for the Eastern District of Missouri to block the $220 million proposed transaction. At the same time, the department filed a proposed settlement that, if approved by the court, would resolve the competitive harm alleged in the lawsuit.
According to the department’s complaint, AB Companies’ acquisition of CBA likely would substantially lessen head-to-head competition in Hawaii between ABI brands, such as Stella Artois and Michelob Ultra, and CBA’s Kona brand. If the transaction was allowed to proceed, ABI and CBA would have a combined share of approximately 41 percent in the moderately concentrated Hawaii beer market. The merger would also likely harm future competition between ABI and CBA as, absent the merger, the companies would continue to invest and compete against each other for premium beer sales in the state. By eliminating CBA’s Kona brand as a competitive restraint, ABI would also likely have greater ability to facilitate price coordination, resulting in higher prices for beer sold in Hawaii, amplifying competitive concerns.
“This merger, as originally structured, would have significantly increased market concentration in Hawaii and eliminated the growing competition between ABI and CBA brands,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “Today’s settlement with its divestitures will ensure that consumers continue to benefit from this competition today and into the future.”
Under the terms of the proposed settlement, ABI and CBA must divest CBA’s entire Kona Hawaii business — Kona Brewery LLC — to PV Brewing Partners or to an alternative purchaser approved by the United States. Specifically, the settlement requires the sale of the Kona brewing facilities in Hawaii, including a new 100,000-barrel capacity brewery currently under construction; the granting of a perpetual, exclusive license of the Kona brand for the brewing, distribution, and sale of Kona beer in Hawaii as well as other assets, rights, and interests necessary to ensure that PV Brewing Partners, LLC, is able to compete in the Hawaii beer market using the Kona brand.
ABI is a corporation organized and existing under the laws of Belgium, with its headquarters in Leuven, Belgium. ABI is already a minority shareholder in CBA. ABI proposes to acquire 100 percent ownership of CBA through AB Companies, a Delaware limited liability company that currently holds a minority ownership stake in CBA. ABI owns numerous major beer brands sold in the United States, including in Hawaii. These brands include Bud Light, Budweiser, Busch Light, Natural Light, Michelob Ultra, Stella Artois, and Golden Road.
CBA is a corporation organized and existing under the laws of Washington, with its headquarters in Portland, Oregon. CBA owns several beer brands sold in the United States, including Widmer Brothers, Omission, Redhook, and Kona, a brand that originated in Hawaii and is especially popular in that state.
PV Brewing Partners LLC, is a Delaware limited liability company with its headquarters in Overland Park, Kansas. The entity was formed by VantEdge Partners LP, a private equity company based in metropolitan Kansas City.
As required by the Tunney Act, the proposed settlement, along with a competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement during a 60-day comment period to Robert A. Lepore, Chief, Transportation, Energy, and Agriculture Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street N.W., Suite 8000, Washington, D.C., 20530. At the conclusion of the 60-day comment period, the U.S. District Court for the Eastern District of Missouri may enter the final judgment upon finding it is in the public interest.
Chester County Doctor Agrees to Pay over $1.2 Million to Settle Allegations of Fraudulent Billing and Unlawful Opioid DistributionRead the Press Release
PHILADELPHIA— United States Attorney William M. McSwain announced that Thomas J. Whalen, D.O., 65, of Berwyn, PA, has agreed to pay the United States $1,257,499.00 to resolve allegations under the False Claims Act that he submitted or caused the submission of false claims to federal health care plans for FDA-approved versions of Remicade, Orencia, Prolia/Xgeva, Synvisc/Synvisc One, and Boniva when he had, in fact, administered non-FDA-approved, foreign versions of these medications.
In addition, the civil settlement resolves admissions that Whalen knowingly and intentionally prescribed controlled substances outside the usual course of professional practice and without a legitimate medical purpose, in violation of the Controlled Substances Act. Whalen permanently surrendered his controlled substance registrations with the DEA, surrendered his medical license, and will be excluded from participation in federal programs.
Whalen owned and operated Rheumatology Consultants, P.C., doing business as Whalen Rheumatology Group, with locations in Havertown, PA, Exton, PA, and Wilmington, DE. As part of his practice, Whalen used medications administrated by injection and infusion to treat his patients. These medications, including Remicade Synvisc, Synvisc-One, Orencia, Prolia/Xgeva, and Boniva, are made of living cells and are expensive. Rather than purchase FDA-approved versions of these medicines from authorized distributors, Whalen devised a scheme to purchase much cheaper foreign, non-FDA-approved versions of these medications. Unbeknownst to his patients, Whalen injected or infused them with the non-FDA-approved medications and then billed health care programs as if he had used the approved medications and pocketed approximately $1.1 million in illicit gains.
Whalen also prescribed oxycodone to patients abusing illicit drugs. Whalen admitted to unlawful distribution of a controlled substance to two of his patients to whom he prescribed oxycodone, despite receiving multiple urine drug screening results for each that revealed the patients simultaneously abused cocaine and heroin.
In December 2019, Whalen also pleaded guilty before United States District Court Judge Timothy J. Savage to related criminal charges of one count of health care fraud, one count of importation contrary to law, and two counts of distributing and dispensing oxycodone outside the course of professional practice and not for a legitimate medical purpose. He was sentenced this week to one day incarceration, followed by 12 months home confinement, three years supervised release and a $25,000 fine.
“Whalen prioritized lining his own pockets over his patient’s safety,” said U.S. Attorney McSwain. “By duping his patients and health care programs alike, he stole more than $1.1 million. On top of that, he also unlawfully distributed oxycodone to patients he knew were using cocaine and heroin. These are egregious, inexcusable violations of the trust that was placed in him as a medical professional.”
Regarding the resolution of the civil suit allegations, U.S. Attorney McSwain also stated: “This settlement illustrates my Office’s dedication to ensuring that physicians who engage in submission of false claims and the illegal distribution of opioids and other controlled substances are held accountable with all of our civil enforcement tools, as well as our criminal tools. My Office’s Health Care Fraud Strike Force, Civil Division, and Forfeiture staff continue to aggressively investigate doctors who violate their duties, so that we can deter and punish illegal opioid prescribing and health care fraud.”
“Dr. Whalen administered non-FDA approved drugs, which placed patients’ health at risk” said Special Agent in Charge Maureen Dixon of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Philadelphia Office. “Such medications are not paid for by Medicare due to the risk they may pose to patient health. HHS-OIG, along with our law enforcement partners, will continue to protect the public and root out dangerous and costly fraud schemes.”
“Dr. Whalen dispensed oxycodone, a highly addictive controlled substance medication, to individuals who he knew were already abusing cocaine and heroin. He did so without first establishing a professional doctor-patient relationship with these individuals and dispensed the oxycodone to them without any legitimate medical purpose. Instead of using his professional standing to help these individuals addicted to illicit street drugs, Dr. Whalen used his medical license to harm them in the name of making money, ” said Jonathan A. Wilson, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “Whalen’s crimes enabled his patients’ substance use disorder rather than treating it appropriately.”
“The opioid epidemic that continues to spread across our nation is fueled by the illegal procurement and distribution of drugs such as OxyContin,” said Norbert E. Vint, Deputy Inspector General Performing the Duties of the Inspector General, OPM OIG. “Dr. Whalen’s scheme not only defrauded the federal health insurance carriers, but also put patients at grave risk through his unlawful distribution of controlled substances for no legitimate medical purpose. This guilty plea and settlement sends a clear message to those engaged in fraudulent conduct contributing to the opioid crisis that we will hold providers accountable. I applaud the hard work of our investigative staff and our law enforcement partners.”
“U.S. consumers rely on FDA oversight to ensure that the drugs they receive are safe and effective. Rogue health care professionals who obtain foreign unapproved medicines and then dispense and administer those drugs to their patients, put the health of those patients at significant risk,” said Special Agent in Charge Mark S. McCormack, FDA Office of Criminal Investigations Metro Washington Field Office. “We will continue to pursue and bring to justice those who choose to put the public’s health at such risk.”
The U.S. Department of Health and Human Services, Office of Inspector General; the Drug Enforcement Administration; Homeland Security Investigations; the Food and Drug Administration, Office of Criminal Investigations; the Office of Personnel Management, Office of Inspector General; and the Federal Bureau of Investigation all investigated the case. Trial Attorney Debra Jaroslawicz with the Criminal Division’s Fraud Section and Assistant United States Attorney Paul J. Koob prosecuted the criminal case. Assistant United States Attorney and Deputy Chief Charlene Keller Fullmer handled the civil case.
Cedar Rapids Man who Unlawfully Possessed Handgun During Violent Melee Sentenced to Federal PrisonRead the Press Release
A Cedar Rapids man who was involved in a melee at a friend’s house, and later found with guns and knives, was sentenced today to two years in prison.
Andrew Monroe, age 28, from Cedar Rapids, Iowa, received the prison term after a guilty plea to possession of a firearm as a drug user. On August 29, 2019, police responded to a call to a home in Marion, Iowa. The police discovered that there had been a violent melee at the house. The melee ultimately resulted in the hospitalization of multiple individuals with life-threatening stab wounds. Monroe admitted to being present and police found him with a pistol while under the influence of marijuana.
Monroe was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Monroe was sentenced to 24 months’ imprisonment and fined $100. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background
Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see /media/1122011/dl?inline.
Monroe is set to surrender to the United States Marshal on October 13, 2020 at 10:00 a.m. and will be 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 Liz Dupuich and investigated by Marion Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-05-CJW.
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Carroll County Man Convicted of Possession and Distribution of Child PornographyRead the Press Release
Jackson, TN – After a 3-day jury trial with proper COVID-19 health and safety protocols,William Farrell Russell, 47, has been found guilty of possession and distribution of child pornography depicting the sexual abuse of children under twelve years of age. D. Michael Dunavant, U.S. Attorney announced the guilty verdict today.
According to information presented in Court, investigators with the Faulkner County, Arkansas, Sheriff’s Department learned that a user of the Kik instant messaging service was distributing child pornography under the screen name "funfortaboo." The investigators assumed undercover identities and began communicating with funfortaboo in late June 2016. Between July 1 and July 7, 2016, funfortaboo distributed to the undercover investigators images of child sexual abuse. The Faulkner County, Arkansas investigators and members of the FBI Project Safe Childhood Task Force for the Western District of Tennessee, identified "funfortaboo" as William Farrell Russell, who was then living in Cedar Grove, TN.
On July 28, 2016, members of the FBI Project Safe Childhood Task Force executed a search warrant at Russell's Cedar Grove home, and recovered the cellular telephone that Russell had used to distribute the child sexual abuse materials. On that telephone, Russell possessed hundreds of images and videos of child sexual abuse, including the images that he had distributed to the undercover officers under the screen name funfortaboo.
That same day, July 28, 2016, Russell waived his Miranda rights and admitted to using the cellular telephone to communicate with and send photographs to the undercover officers.
A sentencing hearing is scheduled for January 5, 2021, before Chief U.S. District Court Judge S. Thomas Anderson. Russell faces up to 20 years in federal prison for each count of the indictment, and a $250,000 fine. There is no parole in the federal system.
U.S. Attorney D. Michael Dunavant said, "Child pornography is an abhorrent offense that scars the children affected forever. And it doesn’t take an economist to know that demand drives supply. By repeatedly distributing hundreds of images and videos of young children being sexually abused, Russell contributed to their past victimization. And by fueling the demand for child pornography, his conduct likely also contributed to the future harm done to children in the name of profit. This office will always aggressively prosecute and seek significant and mandatory sentences for such depraved and predatory behavior in order to protect children and hold offenders accountable."
The FBI Project Safe Childhood Task Force and Faulkner County, Arkansas Sheriff’s Office investigated this case.
Assistant U.S. Attorneys Gregory Allen and Lauren Delery are prosecuting this case on behalf of the government.
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Boston Man Sentenced for Life Insurance Fraud SchemeRead the Press Release
BOSTON – A Boston man was sentenced yesterday in federal court in Boston for a scheme to defraud numerous life insurance companies.
Kellerman Jason Zheng, 33, was sentenced by U.S. District Judge Nathaniel M. Gorton to 15 months in prison and three years of supervised release. Zheng was also ordered to pay $49,084. In February 2020, Zheng pleaded guilty to mail and wire fraud.
Between December 2016 and March 2018, Zheng took out at least 24 life insurance policies in his brother’s name. These policies, which carried total coverage limits in excess of $11.5 million, listed Zheng and his parents as the beneficiaries. Zheng’s brother however, had died months earlier during a visit to China in April 2015. As part of the scheme, Zheng also took steps to make it appear as though his brother was still alive by opening and using bank accounts in his brother’s name and renewing his brother’s Massachusetts driver’s license.
Later, Zheng obtained a false Chinese death certificate for his brother indicating that his brother had died in August 2018, and used it to submit over $5 million in life insurance claims. Zheng admitted that his brother died prior to the inception of the insurance policies during meetings with an undercover agent who was posing as a claims manager willing to assist in the fraud scheme.
United States Attorney Andrew E. Lelling; Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service; and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Office made the announcement today. Valuable assistance was provided by the Iowa Insurance Division. Assistant U.S. Attorney Jordi de Llano, Deputy Chief of Lelling’s Securities, Financial & Cyber Fraud Unit, prosecuted the case.
Boca Raton Doctor Pleads Guilty to $20 Million Health Care Fraud SchemeRead the Press Release
Tampa, Florida – Dr. Richard Davidson (41, Boca Raton) has pleaded guilty to conspiracy to commit health care fraud. He faces a maximum penalty of 10 years in federal prison. Davidson has also agreed to forfeit $2,472,087 to the United States, which represents the proceeds he obtained through the commission of the offense. A sentencing date has not yet been set.
According to the plea agreement, in 2018, Davidson and his conspirators established a conglomerate of durable medical equipment (“DME”) supply companies. During the creation of the companies, they lied to Medicare to secure billing privileges. The scheme involved placing the companies in the names of straw owners. By concealing their true ownership, the conspirators secretly gained control of multiple companies, which Medicare prohibits. This enabled the conspirators to submit high volumes of illegal DME claims while attempting to evade law enforcement scrutiny. In one year, through the conglomerate, Davidson and his conspirators submitted more than $20 million in illegal DME claims, resulting in more than $10 million in payments from Medicare and the Civilian Health and Medical Program of the Department of Veterans Affairs (“CHAMPVA”).
To attain such high volumes of claims, the conspirators used bribes and kickbacks. Specifically, Davidson and his conspirators illegally purchased thousands of signed doctors’ orders for DME braces from so-called “marketers.” The marketers, for their part, had generated the signed doctors’ orders under the guise of “telemedicine,” but no telemedicine had actually occurred. Instead, the “marketers” had bribed doctors to sign the DME brace orders that supported the illegal claims. Davidson and his conspirators paid millions to secure the illegal DME claims for submission to Medicare and CHAMPVA.
This case was investigated by the U.S. Department of Health and Human Services – Office of Inspector General, the Federal Bureau of Investigation, the Department of Veterans Affairs – Office of Inspector General, and the Internal Revenue Service – Criminal Investigation, Tampa Field Office. It is being prosecuted by Assistant United States Attorney Kristen A. Fiore.
Baldwinsville Woman Arrested, Charged with Threatening to Murder A New York CongressmanRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Bethann Marie Wallace, 48, of Baldwinsville, NY, was arrested and charged by criminal complaint with interstate communication of a threat. The charge carries a maximum penalty of five years in prison, a $250,000 fine, or both.
According to Assistant U.S. Attorney Sean C. Eldridge of the U.S. Attorney’s Office for the Western District of New York in Rochester, the criminal complaint alleges that on July 10, 2020, the Washington D.C. office of New York Congressman John Katko received a threatening voice mail that included a threat to kill the Congressman.
Congressman Katko’s office reported the voicemail to the United States Capitol Police, Threat Assessment Section, which began an investigation in coordination with the Federal Bureau of Investigation. The telephone number that the call originated from traced back to the defendant.
As a result of the threat, security surrounding Congressman Katko was increased. Since Congressman Katko formerly served as an Assistant U.S. Attorney in the Northern District of New York, that Office was recused, and the case is being prosecuted by the United States Attorney’s Office for the Western District of New York.
Wallace made an initial appearance before U.S. Magistrate Judge Therese Wiley Dancks, and is being held pending a detention hearing on September 21, 2020, at 2:30 p.m.
The criminal complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Thomas F. Relford, Special Agent-in-Charge, Albany Field Division; the New York State Police, under the direction of Acting Major Barry Chase; and the United States Capitol Police, under the direction of Chief Steven A. Sund.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.# # # #
Anchorage Man Sentenced for Gun Violence on School GroundsRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced today that an Anchorage man has been sentenced to federal prison for charges relating to gun violence within an Anchorage school zone.
John-Rexie Lagman, 23, of Anchorage was sentenced on Thursday, September 17, 2020 by Chief U.S. District Judge Timothy M. Burgess to 30 months in federal prison followed by 2 years of supervised release for possessing a firearm within a designated school zone.
On July 2, 2019, two teenagers involved in a social medial dispute planned to fight at Williwaw Elementary School, recruiting friends to join them. The dispute turned violent when one teen began stabbing others, including Lagman, with a screwdriver. In response, Lagman pulled out a Springfield XD .40-caliber handgun and shot the teen twice as he was running away. The teen survived the shooting but suffered life-threatening injuries.
At the sentencing hearing, Judge Burgess remarked that Lagman’s conduct “defied any sort of reasonable reaction or behavior” and noted the sentence should “send a message to the community about gun violence.”
U.S. Attorney Bryan Schroder stated, “The United States Attorney’s Office, along with our law enforcement partners, are committed to enforcing the laws that protect children from gun violence at and around schools.”
This case was part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please visit https://www.justice.gov/ag/about-project-guardian
The Anchorage Police Department (APD) and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) conducted the investigation leading to the successful prosecution of this case. This case was prosecuted by Assistant U.S. Attorney Jennifer Ivers. The United States Attorney’s Office has prosecuted this case with support from the Anchorage Municipality. Assistant U.S. Attorney Jennifer Ivers initiated the case when she was a municipal prosecutor assigned to the U.S. Attorney’s Office to combat violent crime and promote public safety within the Municipality of Anchorage.
17 September 2020
Woman guilty of filing false amended tax returnRead the Press Release
HOUSTON - A local resident has admitted she defrauded the IRS of more than $1.5 million, announced U.S. Attorney Ryan K. Patrick along with Special Agent in Charge D. Richard Goss of IRS - Criminal Investigation (CI).
According to the plea agreement filed in the record of the case, Lee Williams pleaded guilty today to filing a false amended joint 2016 U.S. individual income tax return which resulted in an intended tax loss of approximately $800,000.
As part of the agreement, she further acknowledged the relevant conduct for sentencing purposes is over $1.5 million. She has agreed to pay restitution in the amount of $1,975,734.58.
U.S. District Judge Lynn N. Hughes accepted the plea today and set sentencing for Dec. 21. At that time, Williams faces up to three years in federal prison and a possible $250,000 maximum fine.
She was permitted to remain on bond pending that hearing.
IRS-CI conducted the investigation. Assistant U.S. Attorney Charles J. Escher is prosecuting the case.
Wayne County man pleads guilty to a firearm charge and attempted witness tamperingRead the Press Release
ST. LOUIS, MO – United States District Judge Stephen R. Clark accepted a plea, today, from Donald W. Sanders. The 62-year-old Williamsville resident pleaded guilty to one felony count of Possession of a Firearm by a Convicted Felon and one felony count of Attempting to Intimidate or Threaten a Government Witness.
According to court records, on January 14, 2019, Sanders was inside a white Ford pick-up truck driven by another person. Officers tried to stop the truck, but the driver drove away. Eventually, the truck crashed and officers arrested Sanders and the driver. Officers found four firearms in the truck and recovered another rifle thrown from the truck during the chase. Officers later found a handgun in a motel room in Poplar Bluff shared by Sanders and the driver. It was determined; all of the firearms were stolen from residences in Butler County, Missouri.
On February 9, 2019, while incarcerated in the Butler County Jail, Sanders had a recorded conversation with a visitor. During the conversation, Sanders learned a female acquaintance was a possible witness against him for the firearm charge. Sanders expressed a concern the charge might be charged in federal court. Sanders made a statement to the visitor that the visitor should tell the woman, “Black River is very cold right now.” Sanders later admitted his statement was an attempt to persuade the woman not to testify as to the facts in the firearm charge.
Sanders has prior convictions for Escape from Custody in the Circuit Court of Wayne County, MO and the United States District Court for the Eastern District of Missouri. He is prohibited from possessing firearms.
The Butler County Sheriff’s Office investigated the case. Assistant United States Attorney Julie Hunter prosecuted the case for the U.S. Attorney’s Office.
Waterbury Man Sentenced to 66 Months in Federal Prison for Trafficking NarcoticsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that Pedro Santos, 47, of Waterbury, was sentenced today by U.S. District Judge Janet C. Hall in New Haven to 66 months of imprisonment, followed by four years of supervised release, for trafficking heroin and cocaine.
According to court documents and statements made in court, this matter stems from a joint investigation headed by the DEA New Haven Task Force and the Waterbury and Naugatuck Police Departments into a heroin and cocaine trafficking operation headed by Keith Jordan of Waterbury. The investigation, which included the use of court-authorized wiretaps, physical surveillance and controlled purchases of narcotics, revealed that Jordan was receiving large quantities of heroin from various suppliers, including Santos, and selling to drug to other distributors and street-level customers. Jordan also purchased and distributed cocaine.
In November and December 2018, investigators intercepted hundreds of calls on Santos’ phone that were pertinent to drug trafficking. The intercepts revealed that Santos was receiving narcotics from co-conspirators and supplying heroin and cocaine to a network of street-level drug distributors.
On March 13, 2019, a grand jury in Hartford returned an indictment charging Santos, Jordan and 27 other individuals with various offenses related to the distribution of heroin, fentanyl, cocaine and crack cocaine.
Several of Santos’ codefendants were arrested on March 20, 2019. In association with the arrests, investigators seized approximately 3,000 bags of heroin, 400 grams of cocaine, 350 grams of fentanyl/heroin mixed, 400 grams of heroin, 10 grams of crack, 20 pounds of marijuana, fentanyl patches, a one-kilogram press, four handguns, approximately $120,000 in cash and four vehicles.
Santos evaded capture until August 8, 2019, when he was apprehended in Holyoke, Massachusetts. He has been detained since his arrest.
On January 23, 2020, Santos pleaded guilty to one count of conspiracy to distribute, and to possess with intent to distribute, 100 grams or more of heroin.
Jordan pleaded guilty and awaits sentencing.
This investigation has been conducted by the Drug Enforcement Administration New Haven Task Force, Waterbury Police Department and Naugatuck Police Department, with the critical assistance of the U.S. Secret Service, New York Field Office. The DEA New Haven Task Force includes participants from the U.S. Marshals Service, Internal Revenue Service – Criminal Investigation Division, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia, Meriden, Derby, Middletown, Naugatuck and Waterbury Police Departments.
The case is being prosecuted by Assistant U.S. Attorneys S. Dave Vatti and Nathaniel J. Gentile.
Waterbury Man Sentenced to 46 Months in Federal Prison for Counterfeit Check Bank Fraud SchemeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JONELL BONILLA, 26, of Waterbury, was sentenced today by U.S. District Judge Vanessa L. Bryant to 46 months of imprisonment, followed by four years of supervised release, for operating a counterfeit check bank fraud scheme.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the court proceeding occurred via videoconference.
According to court documents and statements made in court, between approximately December 2017 and January 2019, Bonilla and others obtained access to bank accounts by recruiting individuals through social media and persuading the individuals to share their account information, including debit cards and associated PIN numbers. The account holders were paid for providing access to their bank accounts. Bonilla and his co-conspirators misrepresented to the account holders that U.S. Postal Service money orders or authentic checks would be deposited into their accounts. After Bonilla and his co-conspirators had access to the accounts, they deposited counterfeit checks into those accounts and then withdrew money from the accounts before the banks discovered the checks to be counterfeit.
Bonilla and his co-conspirators attempted to steal more than $500,000 through this scheme, and were successful in defrauding at least 12 banks of approximately $319,000.
Judge Bryant ordered Bonilla to pay restitution of $254,499.90.
Bonilla has been detained since his arrest on January 9, 2019. On October 2, 2019, he pleaded guilty to one count of conspiracy to commit bank fraud and one count of bank fraud.
Three of Bonilla’s co-conspirators have pleaded guilty and await sentencing.
This matter is being investigated by the U.S. Postal Inspection Service and the U.S. Secret Service. The case is being prosecuted by Assistant U.S. Attorney John T. Pierpont, Jr.
Ulster County Man Sentenced to 100 Months for Distributing Child PornographyRead the Press Release
ALBANY, NEW YORK – Corey Baker, age 25, of Clintondale, New York, was sentenced yesterday to 100 months in prison for distributing child pornography.
The announcement was made by Acting United States Attorney Antoinette T. Bacon and Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
Baker pled guilty on January 15, 2020. As part of his guilty plea, Baker admitted that, between June 2017 and August 2018, he used a cell phone and laptop, equipped with various Internet-based instant messaging and file-sharing applications, to trade child pornography with others. He also admitted to using a peer-to-peer file-sharing application on the laptop to search for and download child pornography. Baker’s phone and laptop computer contained approximately 671 video files and 115 image files depicting the sexual exploitation of children.
Senior United States District Judge Thomas J. McAvoy also sentenced Baker to a 15-year term of supervised release, to begin following his term of imprisonment, and ordered him to pay $6,000 in restitution to the victims depicted in the materials he possessed. Baker will also be required to register as a sex offender upon his release from prison
This case was investigated by the FBI, with assistance from the New York State Police, and was prosecuted by Assistant U.S. Attorney Emmet O’Hanlon.
This case was 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, please visit https://www.justice.gov/psc.
Ulster County Man Charged with COVID-19 Relief FraudRead the Press Release
ALBANY, NEW YORK – Jean R. Lavanture, a/k/a Rudy Lavanture, age 47, of Saugerties, New York, was arrested today on a bank fraud complaint alleging that he fraudulently obtained nearly $5 million in government-backed loans meant for businesses struggling with the financial effects of the coronavirus pandemic. FBI agents arrested Lavanture this morning at a 8.54-acre New Jersey estate that he is alleged to have bought with the fraudulently obtained funds.
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); Jonathan D. Larsen, Special Agent in Charge, New York Field Office, Internal Revenue Service (IRS)-Criminal Investigation; and Kevin Kupperbusch, Special Agent in Charge of the Eastern Region of the Office of Inspector General for the Small Business Administration (SBA-OIG).
Acting United States Attorney Antoinette T. Bacon stated: “According to the complaint, Jean Lavanture stole millions of dollars from important government programs created to help struggling communities during the pandemic. We are on the lookout for fraud, and we will use all available tools to prosecute those who lie, cheat, and steal from programs that America’s businesses and their employees so desperately need.” Coronavirus Fraud Coordinator Joshua R. Rosenthal added, “The U.S. Attorney’s Office and our law enforcement partners will continue to aggressively pursue fraudsters seeking to illegally exploit the ongoing coronavirus emergency.”
FBI Special Agent in Charge Thomas F. Relford stated: “The allegations against Mr. Lavanture are appalling. Small businesses have suffered devastating losses during the coronavirus pandemic and the FBI will not tolerate anyone who steals the funding designed to be a lifeline for those businesses. The FBI, along with our federal partners, will remain vigilant in making sure programs like the PPP are used as intended.”
A criminal complaint alleges that between June 16, 2020 and July 22, 2020, Lavanture received approximately $4,906,281 in Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loans (EIDL), which were issued by two banks and the SBA to five Saugerties-based companies he controlled. In the loan applications, Lavanture falsely represented that each company had employees, substantial revenues, and a payroll, and he submitted fraudulent tax documents in support of his lies. In fact, according to the complaint, none of these companies has ever reported employees to the New York State Department of Labor, nor reported income to the IRS for 2017 through 2019.
The complaint also alleges that Lavanture has improperly used loaned funds to make property purchases and pay personal expenses, further demonstrating his fraudulent intent. Lavanture has withdrawn approximately $439,503.25 of the loaned funds in cash, and drew on loaned funds when he purchased a motel in Rockaway Beach, Missouri, and transferred $952,000 in connection with the purchase of a 8.54-acre estate in Byram Township, New Jersey, that includes an 18-room Tuscan-style mansion.
The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
IRS-CI Special Agent in Charge Jonathan D. Larsen stated: “This case is an example of greed and selfishness during a time when our country is united in crisis. IRS-CI and our law enforcement partners are committed to identifying individuals like Mr. Lavanture, who would deprive struggling small businesses from much-needed economic relief for their own gain, and then quickly taking action to bring them to justice.”
SBA-OIG Special Agent in Charge Kevin Kupperbusch stated: “Greed has no place in SBA’s programs that are intended to provide assistance to the nation’s small businesses struggling with the pandemic challenges. Our Office will remain relentless in the pursuit of fraudsters who seek to exploit SBA’s vital economic programs. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and commitment to seeing justice served.”
Lavanture was scheduled to make an initial appearance later this afternoon before a United States Magistrate Judge in Newark, New Jersey.
If convicted of bank fraud, Lavanture faces up to 30 years in prison, up to 5 years of post-imprisonment supervised release, and a maximum fine of the greater of $1 million or twice his gross pecuniary gain or his victims’ gross pecuniary loss. 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.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted in March 2020 and designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects of the COVID-19 pandemic. The CARES Act authorized forgivable loans to small businesses for job/employee retention and certain other expenses, through the PPP. PPP loan proceeds must be used by the borrowing business only on certain, permissible expenses – specifically, payroll costs, interest on mortgages, rent, and utilities. PPP loans are issued by banks and guaranteed by the SBA.
The CARES Act also authorized EIDLs to be granted to small businesses and non-profit organizations experiencing substantial financial disruption due to the COVID-19 pandemic. These low-interest loans are designed to provide temporary relief to organizations suffering a temporary loss of revenue. EIDLs are to be used to cover an array of expenses, such as rent, utilities, and fixed debt payments. The SBA pays EIDLs directly.
This case is being investigated by the FBI, IRS-Criminal Investigation, and SBA-OIG, and is being prosecuted by Assistant U.S. Attorneys Michael Barnett and Joshua R. Rosenthal.
US Attorney Kirsch Reminds Parents About Online Predators with Recent IndictmentsRead the Press Release
HAMMOND – United States Attorney Thomas L. Kirsch II announces three separate Indictments involving three defendants who were charged with a variety of crimes against children.
“My Office will continue to work with our investigative partners to investigate and prosecute those who commit crimes against children,” said United States Attorney Kirsch. “Victims of these horrific crimes lose their innocence through no fault of their own, and we take these matters very seriously.”
Today’s indictments include:
- Tyrone Johnson, age 32, of Merrillville, Indiana was charged with production of child pornography and possession of child pornography. It is alleged that after the victim disclosed that Johnson had been raping her, Johnson asked another individual to pick up his cellular telephone from property in the jail and destroy it. Instead, the person discovered a video on the phone of Johnson raping the girl and sent the video to another individual who alerted police. This case was investigated by Homeland Security Investigations with assistance from the LaSalle, Illinois Police Department and the Lake County, Indiana Sherriff’s Office.
- Troy Kidwell, age 38, of Portage, Indiana was charged with attempted enticement of a minor and receiving sexual abuse images of a child. It is alleged that Mr. Kidwell arranged, using a facility of interstate commerce, to meet up with a 10 year-old girl. Additionally, sexually explicit images of another minor under the age of 16 were found on his cellular telephone. This case was investigated by the Federal Bureau of Investigation with assistance from the Porter County, Indiana Sherriff’s Office.
- Stephen Coleman, age 29, of Gary, Indiana was charged with four separate production of child pornography charges based on images he allegedly took of 4 different prepubescent minor boys. He was also charged with possession of child pornography. This case was investigated by the Federal Bureau of Investigation with assistance from the Gary, Indiana Police Department, the Michigan City, Indiana Police Department and the Portage, Indiana, Police Department.
The United States Attorney’s Office emphasizes that these Indictments are merely allegations and that all persons are presumed innocent until, and unless proven guilty in court.
If convicted, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
All the above cases are being prosecuted by Assistant U.S. Attorney Jill Koster.
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U.S. Attorney: $500,000 Grant to YWCA to Help Protect WomenRead the Press Release
TOPEKA, KAN. – A $500,000 federal grant to YWCA of Northeast Kansas will help the agency serve victims of domestic violence and sexual assault, U.S. Attorney Stephen McAllister said today.
“Our goal is to reduce violence against women and strengthen services to victims of domestic violence, dating violence, sexual assault and stalking,” McAllister said. “Statistics show that a shocking number of women and girls are the victims of domestic violence and sexual assault. The Department of Justice strongly supports partners such as the YWCA Northwest Kansas and Jana’s Campaign in their important efforts to combat such violence and assist survivors.”
The grant comes from the Department of Justice’s Office of Violence Against Women (OVW) through its Rural Sexual Assault, Domestic Violence, Dating Violence and Stalking Program. The OVW issued a grant notification this week saying YWCA of Northeast Kansas and its partner Jana’s Campaign will use this award to enhance and expand access to direct advocacy services to victims and survivors in Brown, Jackson and Wabaunsee counties.
Other goals include increasing awareness and understanding of domestic violence, sexual assault dating violence and stalking for youth through outreach and training in schools, youth programs and community meetings on healthy relationships and stalking. Grant funds will be used to support three full-time and one part-time staff position, provide crisis counseling and individual counseling and support groups, assistance with Protections from Abuse and Protection from Stalking Orders, provide case management, advocacy with medical, court and social service systems and provide school- and youth-based prevention programs. The timing for performance of this award is 36 months.
For more information about this grant, contact the Office on Violence Against Women at 202/307-6026 and ask for the Outreach and Communications Division.
U.S. Attorney John C. Anderson Announces $450,000 Award to Laguna PuebloRead the Press Release
ALBUQUERQUE, N.M. –John C. Anderson, U.S. Attorney for the District of New Mexico, announced that the Laguna Pueblo will receive a $450,000 grant through the Office of Violence Against Women (OVW) to hire or retain a tribal prosecutor designated as a Special Assistant United States Attorney (SAUSA).
“This is an exciting opportunity to implement a creative approach to addressing domestic violence in tribal communities,” said Anderson. “Domestic violence is unbound by demographics and affects families and communities across New Mexico and the United States. I’m pleased to partner with the Office of Violence Against Women and the Laguna Pueblo in this initiative to facilitate prosecution of domestic violence and other crimes with special consideration for jurisdictional areas in Indian country.”
Through this special initiative, OVW and the Bureau of Justice Assistance (BJA) are partnering with United States Attorneys’ Offices (USAOs) and the Executive Office of United States Attorneys (EOUSA) to support tribes and USAOs in their investigation and prosecution of Indian country criminal cases. Tribes will receive funds to work with their USAO partner (and other tribes in their federal judicial district, as appropriate) to hire or retain a mutually agreed upon tribal prosecutor to be designated as SAUSA. The Tribe and the USAO will appoint the Tribal SAUSA to a three-year fellowship position divided between the USAO and the tribal prosecutor’s office, and the SAUSA will be trained as a federal prosecutor.
The cross-designated prosecutor will maintain an active caseload, while also helping to promote higher-quality investigations and better inter-governmental communication. The SAUSA must focus at least 50 percent of their full-time position on prosecuting cases involving domestic violence, dating violence, sexual assault, and stalking. The remaining 50 percent of the SAUSA’s position can be dedicated to the same or any other types of criminal cases that the tribe and USAO agree are a priority for this position.
October is Domestic Violence Awareness Month. For more information from the Department of Justice relating to domestic violence, visit:
https://www.justice.gov/ovw/domestic-violence
For more information about this grant, contact the Outreach and Communications Division Office at OVW at (202) 307-6026.
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U.S. Attorney J. Douglas Overbey Announces $79,180 Department of Justice Grant Award to Tennessee Bureau of InvestigationRead the Press Release
KNOXVILLE, Tenn. – United States Attorney J. Douglas Overbey of the Eastern District of Tennessee announced today that Tennessee Bureau of Investigation has been awarded $79,180 in Department of Justice grants for State Justice Statistics Program for Statistical Analysis Centers.
The State Justice Statistics (SJS) Program is designed to maintain and enhance each state's capacity to address criminal justice issues through collection and analysis of data. The SJS Program provides support to each state to coordinate and conduct statistical activities within the state Office of Justice Programs.
“Successful strategies to target, reduce and prevent crime through statistical data are extremely resource intensive. Crime statistics can be a tool in helping criminal justice professionals anticipate increased risk of crime. This grant will help address crime at various levels. The responsibility for fighting crime and violence belongs to agencies at every level, and statistical analysis, when properly and professionally done, enhances our ability to deploy our collective resources wisely and effectively,” said U.S. Attorney Overbey.
The Tennessee Statistical Analysis Center (SAC) located within the Tennessee Bureau of Investigation (TBI), was established by Executive Order and mandated by legislation to act as a clearinghouse for statewide criminal justice statistics and to operate the statewide Uniform Crime Reporting Program. The broad goals of the SAC are: 1) act as a central coordination point for federal support, with technical assistance available to help criminal justice agencies in the statistical analysis process; 2) coordinate the flow and exchange of information statistics for all criminal justice agencies in the state; 3) locate, utilize, and coordinate resource personnel to provide expertise to criminal justice agencies on developments in criminal justice statistics and to assist these agencies in the development of public policy; and, 4) continue to design, create, and coordinate the development and management of databases for statistical information for both state and local criminal justice agencies and policymakers to improve the decision making process. The SAC continues to operate under the supervision of a Director with assistance from eight support specialists from TBI’s Criminal Justice Information Services (CJIS) Support Center.
Under this award, the Tennessee Statistical Analysis Center (SAC) will conduct activities under the following Core Capacity area: Increasing access to statistical data. The SAC is proposing an 18-month project to improve the quality and timeliness of reports, improve.
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U.S. Attorney Announces the Dismantling of Two Methamphetamine Trafficking Organizations Operating in Northwestern PennsylvaniaRead the Press Release
ERIE, Pa. – United States Attorney Scott W. Brady announced today the unsealing of two indictments returned by a federal grand jury in Erie, Pennsylvania, charging the leaders and members of separate drug trafficking organizations - one based in Erie and the other in Warren and Crawford Counties – with conspiring to distribute methamphetamine.
“We are going right to the source to stop these drug trafficking networks in their tracks and prevent them from putting methamphetamine and other dangerous drugs on the streets of our communities,” said U.S. Attorney Brady. “Working with our state and local partners, we will take the fight to these drug dealers, to dismantle their operations in Erie, Titusville, Akron, Ohio or back to Mexico.”
The first indictment charges 15 Pennsylvania residents and an Ohio man with violating federal drug and firearms laws.
The nine-count Indictment, returned on September 8, 2020 and unsealed today, named as defendants:
- Carina Elizabeth Tucker, 31, Titusville, Pennsylvania;
- Gale Arthur Flick, Jr., 47, Garland, PA;
- Anthony James Stufflebeam, 33, currently incarcerated at SCI Albion;
- Charles John Vanderhoff, 36, Akron, Ohio;
- Stephanie Ann Bryan, 29, Butler, PA;
- Sarah Umanita Bloom, 29, currently incarcerated at SCI Muncy;
- Rusty Jay Bingman, 45, Titusville, PA;
- Scott Christopher Schreckengost, 42, Spartansburg, Pennsylvania;
- Kimberly Ann Gesin, 43, Titusville, Pennsylvania;
- Cody Tobias Greeley, 24, Tidioute, PA;
- Tedra Mae McGarvie, 40, address unknown;
- Trevor Allen McGarvie, 23, currently incarcerated at SCI Mercer;
- Nicholas James Barnes, 27, address unknown;
- Brandi Marie Hanna, 31, address unknown;
- Kevin Wayne Huet; 31, Grand Valley, Pennsylvania; and
- Kevin John Frederick, 43, Townville, PA.
According to the Indictment presented to the court, from in and around June 2018, to on or about February 28, 2020, the defendants conspired to possess with intent to distribute and distributed five hundred grams or more of a mixture or substance containing a detectable amount of methamphetamine as they participated in a methamphetamine distribution network that trafficked methamphetamine from Akron, Ohio and Erie, Pennsylvania into Crawford, Venango and Warren Counties. The Indictment alleges that Carina Elizabeth Tucker, Gale Arthur Flick, Jr., Anthony James Stufflebeam and Rusty Jay Bingman maintained premises for the purpose of manufacturing, repackaging and distributing the methamphetamine. Gale Arthur Flick, Jr. and Kevin Wayne Huet are also charged with possessing firearms during and in relation to drug trafficking activities, and Trevor Allen McGarvie is accused of possessing a firearm with an obliterated serial number. In addition, the Indictment alleges that Carina Elizabeth Tucker, Gale Arthur Flick, Jr. and Anthony James Stufflebeam unlawfully distributed methamphetamine on specific charged dates and that on or about September 20, 2019, Carina Elizabeth Tucker knowingly, intentionally and unlawfully possessed with intent to distribute fifty grams or more of a mixture or substance containing a detectable amount of methamphetamine.
The law provides for a maximum total sentence of life imprisonment, a fine of $10,000,000, or both for defendants Charles John Vanderhoff, Stephanie Ann Bryan, Sarah Umanita Bloom, Scott Christopher Schreckengost, Kimberly Ann Gesin, Cody Tobias Greeley, Tedra Mae McGarvie, Nicholas James Barnes, Brandi Marie Hanna and Kevin John Frederick; a maximum total sentence of life imprisonment, a fine of $16,500,000, or both for Carina Elizabeth Tucker; a maximum total sentence of life imprisonment, a fine of $11,750,000, or both for Gale Arthur Flick, Jr.,; a maximum total sentence of life imprisonment, a fine of $11,500,000, or both for Anthony James Stufflebeam; a maximum total sentence of life imprisonment, a fine of $10,500,000, or both for Rusty Jay Bingman; and a maximum total sentence of life imprisonment, a fine of $10,250,000, or both for Trevor Allen McGarvie and Kevin Wayne Huet. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendants.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Pennsylvania State Police - Troop E, Vice Unit, the Titusville Police Department, the Warren County Drug Task Force, the Warren County Sherriff’s Office and the Crawford County Sherriff’s Office conducted the investigation leading to the Indictment in this case.
The second Indictment charges four residents of Erie, Pennsylvania, with violating federal drug laws.
The one-count Indictment, returned on August 11 and unsealed today, named as defendants:- Manuel Lucero, 53 and Leann Marie Winebrenner, 44, both of Erie, Pennsylvania; and
- Jody Ann Joint, 30, and Robert Fulton, 29, both of Erie, Pennsylvania, as defendants.
According to the Indictment presented to the court, from in and around November 2019, to in and around March 2020, the defendants conspired to possess with intent to distribute and distributed five hundred grams or more of a mixture or substance containing a detectable amount of methamphetamine.
The law provides for a maximum total sentence of life imprisonment, a fine of $10,000,000, or both for each defendant. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendants.
The Drug Enforcement Administration, Erie County Drug Task Force, Erie County Detectives, Pennsylvania State Police Northwest Strike Force, United States Postal Inspection Service, and the City of Erie Police Department conducted the investigation leading to the Indictment in this case.
Assistant United States Attorney Paul S. Sellers is prosecuting these cases on behalf of the government.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Two Individuals Charged with Possession with Intent to Distribute FentanylRead the Press Release
PITTSBURGH, PA – A Philadelphia woman and Dominican Republican man have been charged federally with possession with intent to distribute fentanyl, United States Attorney Scott Brady announced today.
Yarelis Mary Garcia Corretjer, 23, of Philadelphia, Pennsylvania, and Reyelin Manuel Abreu Vasquez, 23, of the Dominican Republic are charged by complaint with knowingly and intentionally possessing with intent to distribute, fentanyl, a Schedule II controlled substance, on September 16, 2020. Garcia Corretjer and Abreu Vasquez were taken into custody Wednesday evening and made their appearance in United States District Court in Pittsburgh today.
According to the complaint, on September 16, 2020, at approximately 2:30 PM, Troopers with the Pennsylvania State Police (PSP) Safe Highways Initiative through Effective Law Enforcement and Detection (SHIELD) Unit, seized from the vehicle, occupied by Garcia Corretjer and Abreu Vasquez, approximately 400 bricks of suspected fentanyl. The suspected fentanyl field-tested positive for the controlled substance. Abreau Vasquez informed law enforcement that he was illegally in the United States and had crossed the Mexican border approximately four years ago.
The count charged in the criminal complaint carries a minimum potential penalty of ten years in prison, and a maximum potential penalty of life in prison as well as a fine not to exceed $10,000,000.
The Department of Homeland Security Investigations (HSI) and the Pennsylvania State Police conducted the investigation leading to the charges in this case.
Assistant United States Attorney Rebecca L. Silinski is prosecuting this case for the government.
The details contained in the criminal complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Three Executives of Louisiana Compounding Pharmacy Charged with Defrauding State Health Benefits Programs and Identity TheftRead the Press Release
CAMDEN, N.J. – Three former executives of a Louisiana compounding pharmacy are charged in a 24-count indictment with using the pharmacy to defraud New Jersey and military health benefits programs, U.S. Attorney Craig Carpenito announced today.
Christopher Kyle Johnston, 41, of Mandeville, Louisiana; Trent Brockmeier, 58, of Pigeon Forge, Tennessee; and Christopher Casseri, 52, of Baton Rouge, Louisiana, were charged with conspiracy to commit health care fraud and wire fraud and a second conspiracy to commit identity theft by using individuals’ personal identifying information without their consent. Casseri was also charged with repeatedly lying to federal agents when interviewed. Johnston and Brockmeier face additional charges of conspiring to commit money laundering and substantive counts of money laundering for transactions involving more than $43 million in illicit profits they realized from the scheme.
The defendants are expected to appear today before U.S. Magistrate Judge Ann Marie Donio by videoconference. The case is assigned to U.S. District Judge Robert B. Kugler in Camden.
According to the indictment:
Central Rexall Drugs was a retail pharmacy in Louisiana that prepared compounded medications, which are specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. In 2013, Johnston and Brockmeier entered into an agreement with Central Rexall’s chief executive officer, Hayley Taff – who pleaded guilty on Aug. 12, 2020, to conspiracy to commit health care fraud – to take over the management of the pharmacy and expand the compounding business in exchange for 90 percent of the profits. Brockmeier became chief operating officer of Central Rexall and Johnston became general counsel. They hired Casseri as vice president of sales to manage Central Rexall’s outside sales force.
Johnston, Brockmeier, and Casseri learned that certain insurance plans administered by an entity referred to in the indictment as the “Pharmacy Benefits Administrator” would reimburse thousands of dollars for a one-month supply of certain compounded medications – including pain, scar, and antifungal creams, as well as vitamin combinations. The health plans for New Jersey state and local government and education employees, including teachers, firefighters, municipal police officers, and state troopers, had this insurance coverage, as did TRICARE, which insures current and former members of the armed forces and their families.
The three conspirators designed compounded medications and manipulated the ingredients in the medications in order to obtain high insurance reimbursements rather than serve the medical needs of patients. To determine which ingredients and combinations resulted in the highest insurance reimbursements, Johnston, Brockmeier, and Casseri had Central Rexall employees send the Pharmacy Benefits Administrator false prescription claims to test out different combinations of ingredients, but the prescriptions did not exist. By trial and error use of these false claims, Johnston, Brockmeier, and Casseri designed compounded medications with combinations of ingredients that were chosen solely based on the amount of money that insurance would pay rather than on the medications’ ability to serve the medical needs of patients. At their direction, Central Rexall sent compounded medications to patients based solely on financial gain, without any research or testing showing that the combination of ingredients was effective.
When the Pharmacy Benefits Administrator stopped covering one combination, the conspirators would develop a compounded medication with a different combination of ingredients based solely on the insurance reimbursement and without considering the medical necessity or effectiveness of the new combination. Central Rexall then would send that new compounded medication to patients, even though the new combination of ingredients was not medically equivalent to the combination originally prescribed for the patients and without telling the patients or their doctor about the differences.
The outside sales force retained and directed by Johnston, Brockmeier, and Casseri used various methods to get doctors to prescribe these medications and patients to accept them, including having prescriptions signed without the patient seeing a doctor or knowing about the medications, having medications or refills ordered with the patients’ knowledge, and paying patients to accept the medications and paying doctors to prescribe them.
Johnston, Brockmeier, and Casseri and their conspirators caused over $50 million in fraudulent insurance claims for compounded medications that were not medically necessary. Johnston received over $34 million and Brockmeier received over $5 million in illicit profits, and Casseri received $200,000 in bonuses.
The indictment also charges Johnston, Brockmeier, and Casseri with a second scheme to commit identity theft. The conspirators took the patients’ names, dates of birth, and identifying information (including insurance information) without their consent from pre-existing Central Rexall prescriptions and used the information to make the false test claims to the Pharmacy Benefits Administrator.
The health care fraud and wire fraud conspiracy count carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense. The false statement count and the conspiracy to commit identity theft count each carry a maximum penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. The money laundering charges carry a maximum term of imprisonment of 10 years and a fine of $250,000 or twice the gross gain or loss from the offense or not more than twice the amount of the criminally derived property involved in the transactions.
U.S. Attorney Carpenito credited special agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; IRS – Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez in Newark: the U.S. Department of Labor, Office of Inspector General, New York Region, under the direction of Special Agent in Charge Michael C. Mikulka; and the Defense Criminal Investigative Service, under the direction of Special Agent in Charge Cyndy Bruce, Southeast Field Office, with the investigation leading to the indictment. He also thanked the Division of Pensions and Financial Transactions in the State Attorney General’s Office, under the direction of Attorney General Gurbir S. Grewal and Division Chief Aimee Nason, for its assistance in the investigation.
The government is represented by Assistant U.S. Attorneys R. David Walk, Jr. and Christina O. Hud of the U.S. Attorney’s Office in Camden.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.