Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Tuesday 21 July 2020
2nd Duquesne Man Charged with Illegal Possession of a Firearm as a FelonRead the Press Release
PITTSBURGH, PA - A resident of Duquesne, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal firearms law, United States Attorney Scott W. Brady announced today.
The one-count Indictment named Aaron Pirl, age 22, as the sole defendant.
According to the Indictment, Pirl was found to be in possession of a firearm after having previously been convicted of a felony.
The law provides for a maximum total sentence of 10 years in prison, a fine of not more than $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Rebecca L. Silinski is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Monday 20 July 2020
Woodland Man Indicted for Fentanyl Overdose Death and Fentanyl Trafficking ConspiracyRead the Press Release
SACRAMENTO, Calif. — A Woodland resident has been charged by indictment with distribution of fentanyl resulting in an overdose death and with distributing fentanyl on two separate dates after the overdose death, U.S. Attorney McGregor W. Scott announced.
According to the indictment, Joshua Cabanillas, 20, distributed fentanyl that resulted in the overdose death of a person in Woodland in February 2020. Additionally, Sacramento residents Gregory Tabarez, 22, and Joseph Elijah Cuaron, 20, are charged by complaint with distributing fentanyl alongside Cabanillas.
The complaint alleges that Cabanillas was arrested on May 15, after meeting with Tabarez and Cuaron to distribute an additional 1,000 counterfeit blue “M30” pills containing fentanyl. The counterfeit pills are designed to look like authentic oxycodone hydrochloride 30 mg pills that could be obtained from a pharmacy. Unlike authentic pharmaceuticals, the counterfeit pills are pressed illicitly and actually contain fentanyl.
Today, the United States faces an unprecedented drug epidemic. The Centers for Disease Control estimates that more than 70,000 Americans died of drug overdoses in 2019. Many of these deaths are attributed to the increased abuse of potent and dangerous synthetic opioids like fentanyl. The Drug Enforcement Administration has reported that fentanyl-containing counterfeit pills continue to be associated with overdose deaths across the country.
This case is the product of an investigation by the Federal Bureau of Investigation; the Woodland Police Department; the Sacramento County Probation Department; the Sacramento County Sheriff's Department; the Sacramento Police Department; the Yolo County Sheriff’s Office, Coroner Section; the Yolo County District Attorney’s Office; the Yolo County Probation Department; Placer County Sheriff’s Office; the California Highway Patrol; the California Department of Corrections and Rehabilitation, Special Service Unit; and the California Department of Corrections and Rehabilitation, Division of Adult Parole Operations. Assistant U.S. Attorney Vincenza Rabenn is prosecuting the case.
Cabanillas, Tabarez and Cuaron are currently in custody. If convicted of the distribution of fentanyl resulting in death, Cabanillas faces a maximum statutory penalty mandatory minimum of 20 years in prison and a maximum of life in prison. If convicted of the conspiracy or distribution charges, Cabanillas, Tabarez and Cuaron face a maximum statutory penalty of 20 years in prison. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Visiting Stanford University Researcher Charged with VISA FraudRead the Press Release
SAN FRANCISCO – Song Chen has been charged in a criminal complaint with visa fraud in connection with a scheme to lie about her status as an active member of the People’s Republic of China’s military forces while in the United States conducting research at Stanford University, announced United States Attorney David L. Anderson and Federal Bureau of Investigation Special Agent in Charge John L. Bennett. Song made her initial federal court appearance before U.S. Magistrate Judge Sallie Kim this morning to face the charge.
The allegations describing the crime appear in an affidavit supporting the complaint filed on July 17, 2020. According to the affidavit, Song, 38, a Chinese national, entered the United States on December 23, 2018, using a J-1 non-immigrant visa. Song obtained the J-1 visa, a document “for individuals approved to participate in work-and study-based exchange visitor programs,” with an application she submitted in November 2018. In that application, Song stated that she had served in the Chinese military only from September 1, 2000, through June 30, 2011. She further stated that her employer was “Xi Diaoyutai Hospital” located at “No. 30 Fucheng Road, Beijing, 100142.” Song described herself in her visa application as a neurologist who was coming to the U.S. to conduct research at Stanford University related to brain disease.
The affidavit alleges that these were lies, and that Song was a member of the People’s Liberation Army (PLA), the Chinese military, when she entered and while she was in the United States, and that the hospital she listed on her visa as her employer was a cover for her true employer, the PLA. Specifically, the affidavit identifies four research articles that she co-authored. These articles were identified on a resume that Song submitted to Stanford. The versions of the articles available via open sources on the Internet show her as affiliated with institutions subordinate to the PLA Air Force. Specifically, the articles list Song as affiliated with the Air Force General Hospital in Beijing and the Fourth Military Medical University (FMMU), a PLA Air Force university in Xi’an. In addition, as of July 13, 2020, a Chinese health care website listed Song as an attending physician of the Department of Neurology of the PLA Air Force General Hospital, a hospital that shared an address with the “Xi Diaoyutai Hospital” listed on her visa application. The listing allegedly included a photograph of Song wearing what appears to be a military uniform. Further, an article published in 2015 identifies Song as the doctor at the PLA Air Force hospital who performed the autopsy on the former chief physician of the MRI Department at the hospital.
Finally, according to the affidavit, a search of Song’s external hard drive, recovered pursuant to a court-authorized search warrant, found that, on June 21, 2020, Song had deleted a folder titled, in Chinese, “2018 Visiting School Important Information.” The search recovered deleted documents from this folder. The affidavit alleges that one of the recovered documents was a letter from Song to the Chinese Consulate in New York, which explained that she was extending her time in the United States for another year, and wrote that her stated employer, Beijing Xi Diaoyutai Hospital, is a false front, and that, as a result, she had obtained approval for her extension from the PLA Air Force and FMMU. The letter further allegedly explained that, as these Chinese military approval documents were classified, she could not transmit them online.
Song was charged with obtaining a visa by material false statements, in violation of 18 U.S.C. § 1546(a).
The complaint merely alleges that a crime has been committed, and Song, like all defendants, is presumed innocent until proven guilty beyond a reasonable doubt.
If convicted, she faces a maximum statutory penalty of up to 10 years in prison and a fine of $250,000. In addition, the court may order additional terms of supervised release. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Song’s next appearance is scheduled for Tuesday, July 21, 2020, before Magistrate Judge Kim for further proceedings regarding detention.
The prosecution is being handled by the Office of the U.S. Attorney, Northern District of California’s Special Prosecutions Section and is the result of an investigation by the FBI.
Virginia Fraudster Pleads Guilty in U.S. District Court in Maryland to Federal Charges of Wire Fraud and Investment Adviser Fraud in Connection with a Scheme to Steal More Than $6 MillionRead the Press Release
Greenbelt, Maryland – Michael Barry Carter, age 47, of Potomac Falls, Virginia, pleaded guilty today to federal charges of wire fraud and investment adviser fraud, in connection with a scheme to steal more than $6 million.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office.
“For over 12 years, Michael Carter perpetrated a brazen scheme that defrauded victim account holders whose investments he was supposed to protect,” said U.S. Attorney Robert K. Hur. “When his fraud was discovered, Carter repaid some victims by taking money from other victim accounts. The U.S. Attorney’s Office will do everything we can to ensure that justice is served by holding accountable financial advisers who defraud investors of their life savings.”
According to his guilty plea, from August 7, 2006 to April 29, 2011, and again from November 16, 2011 to July 29, 2019, Carter was employed by a financial institution and worked primarily out of the financial institution’s Tysons Corner, Virginia location. In 2012, Carter was promoted to financial adviser in the wealth management section of the financial institution and was registered to sell securities and act as an investment adviser in Maryland and Virginia, among other locations. Carter managed and had authority over multiple investment accounts maintained by Victims 1 through 5 with the financial institution, which contained a mix of assets including securities and cash deposits. As a financial adviser, Carter was required to manage the victim accounts in the best interests of his clients, consistent with their investment objectives, and not for his personal benefit.
As detailed in the statement of facts, from at least October 2007 to at least July 2019, Carter made numerous unauthorized transactions from the victim accounts for his personal benefit, defrauding Victims 1 through 5 of at least $5 million. To effect the unauthorized wire transfers, Carter caused the submission of an internal bank authorization form that falsely stated that Carter had received verbal client instructions from each victim authorizing the transfer at a specific date and time. Carter caused the wire transfers to be sent to his personal accounts and used the money to pay for his lifestyle expenses, including Carter’s mortgage, credit card bills, and country club membership fees.
Carter’s fraud was first discovered when Victim 1 and her adult daughter attempted to obtain a bridge loan from the financial institution to cover relocation expenses to an assisted living facility in Florida until the sale of Victim 1’s home in Columbia, Maryland, was completed. When they applied for the loan, Victim 1 and her daughter discovered that an $800,000 loan had already been obtained in Victim 1’s name, without Victim 1’s knowledge or permission. The financial institution determined that the disbursement of the loan proceeds went to Carter’s personal bank account and that Carter used his personal e-mail address in furtherance of the fraud. The financial institution then learned that Carter had transferred approximately $5 million in unauthorized funds associated with clients of the financial institution.
On July 29, 2019, Carter was fired from the financial institution. On August 2, 2019, during a call with employees from the financial institution, Carter admitted that he had defrauded the five victims over a period of years, that he had forged clients’ signatures on bank authorization forms, that he had created false financial statements to disguise his theft, and in some cases had mailed those financial statements. With respect to Victim 1, Carter further admitted that he met with the victim at her home and answered Victim 1’s phone in order to authorize the transactions, unbeknownst to Victim 1. Carter did this in order to overcome the financial institution’s multi-factor verification system required to execute the transactions.
According to the plea agreement, during the course of the scheme Carter made at least 53 unauthorized transfers from his clients’ accounts to his own accounts. In addition, Carter admitted that he embezzled over $50,000 from a non-profit sports organization located in Loudoun County, Virginia. In all, Carter stole at least $6,149,162.77. Prior to his offenses being detected, Carter caused $1,794,052.38 to be returned to the victims. After learning that his fraud had been discovered, in October 2019, Carter also repaid the non-profit organization for its loss. Of the total amount repaid, $1,118,318.52 was repaid through transfers Carter made from other victim accounts.
The net proceeds obtained by Carter was at least $4,355,110.39. As part of his plea agreement, Carter will be required to pay a money judgment in that amount.
Carter faces a maximum sentence of 20 years in federal prison for wire fraud and a maximum sentence of five years in federal prison for investment adviser fraud. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. U.S. District Judge Paul W. Grimm has scheduled sentencing for November 9, 2020 at 1:00 p.m.
United States Attorney Robert K. Hur commended the FBI for their work in the investigation and recognized the Securities and Exchange Commission, which has filed a related civil proceeding. Mr. Hur thanked Assistant U.S. Attorneys Erin B. Pulice and Jennifer L. Wine, who are prosecuting the criminal case.
# # #
U.S. Attorney's Office in New Hampshire Launches Public Service Announcements to Combact Drug and Gun CrimeRead the Press Release
CONCORD – U.S. Attorney Scott W. Murray announced the launch of public service announcements primarily aimed at increasing awareness about drug trafficking and related gun crimes.
The opioid crisis has had a dramatic negative impact on New Hampshire. Several of the public service announcements solicit the public’s assistance in fighting back against drug traffickers. One unfortunate side effect of the opioid crisis is the increased number of incidents where individuals from New Hampshire have traded guns in order to obtain drugs. Drug traffickers actively solicit customers to obtain guns for them. Additionally, convicted felons, individuals convicted of domestic violence, and others who are prohibited from possessing guns often offer money or drugs to get New Hampshire residents to buy guns for them. All of this unlawful conduct presents a serious safety risk to the citizens of the Granite State. The U.S. Attorney’s Office has developed a variety of social media public service announcements in order to educate people about the consequences of these illegal activities.
“Drug trafficking and violent crime jeopardize the safety and security of the citizens of New Hampshire,” said U.S. Attorney Murray. “Armed drug dealers are a menace to everyone. Law enforcement officers are working to protect the community each day. With these public service announcements, we are seeking to raise awareness about these crimes and to solicit the public’s assistance in helping us to make the Granite State safer. A fully informed public is a powerful deterrent against the harm caused by drug traffickers.”
The public service announcements released by the U.S. Attorney’s Office include three 60- second videos and three 30-second videos, as well as three 15- second videos and five 6-second videos on various social media platforms. All of these announcements are available for download. These announcements serve several purposes, including:
• Increasing awareness about the dangers and consequences of exchanging guns for drugs;
• Educating and warning people about the criminal consequences of buying a gun for someone you don’t know or someone who cannot legally possess a gun;
• Addressing the opioid crisis in New Hampshire;
• Educating the public about the damage drug cartels are doing to New Hampshire;
• Sending a message to armed drug dealers that they are the number one prosecution priority for the U.S. Attorney.
Additionally, the audio messages and the messages on social media platforms aim to increase awareness of the dangers and consequences of exchanging guns for drugs and the criminal consequences of buying a gun for someone you don’t know or someone who cannot legally possess a gun.
For more information about the campaign and to see the public service announcements, please visit https://www.justice.gov/usao-nh/crimefreenh.
###
U.S. Attorney's Office Partners with the FBI and AARP in North Carolina to Host Facebook Live Seminar About Online Romance Scams Targeting Older AdultsRead the Press Release
CHARLOTTE, N.C. – The U.S. Attorney’s Office for the Western District of North Carolina, in partnership with the FBI and the AARP in North Carolina, hosted a virtual informational seminar via Facebook Live today, to discuss the rise of online romance
scams targeting older adults and to offer tips on how to avoid becoming a victim of fraud, announced U.S. Attorney Andrew Murray.
Due to the COVID-19 pandemic, older adults are increasingly turning to the internet to obtain information, stay in touch with loved ones, connect with friends on social media, and form new romantic relationships. Scammers are taking advantage of older Americans’ increased online presence to perpetuate romance scams and steal elder victims’ money and identities, and, even worse, turn older adults into unwitting “money mules.” A money mule is a person that uses an existing or new bank account to conduct wire transfers or other types of financial transactions at the request of a scammer. Typically, the funds the money mules receive and engage in transactions with are proceeds of fraudulent schemes and, in many instances, the account holders are not aware they are being exploited as money mules to carry out financial fraud.
During today’s livestream presentation, Assistant U.S. Attorney and Elder Fraud Coordinator for the Western District Maria Vento, and Supervisory Special Agent for the FBI Brian Cyprian provided an overview of romance scams, money mule schemes and identity theft, and shared useful tips on how to spot those types of scams and how to avoid becoming a victim of fraud. Here are some of the tips shared with the audience:
- Be mindful of what information you post and make public online, as scammers can use details shared on social media and dating sites to better understand and target you.
- If someone contacts you and wants to start a romantic relationship with you, research the person’s photo and profile using online searches to see if the image, name, or details have been used elsewhere.
- Go slowly and ask lots of questions.
- Beware if the individual seems too perfect or quickly asks you to leave a dating service or social media site to communicate directly on your own phone or through a third party app.
- Beware if the individual attempts to isolate you from friends and family or requests inappropriate photos or financial information that could later be used to extort you.
- Beware if the individual promises to meet in person, but always comes up with excuses as to why he or she can’t.
- Never send money to anyone you have only communicated with online or by phone.
- If an online prospect claims to be a United States citizen living or working in another country and asks you for help or money, refer him or her to the local U.S. Embassy or Consulate. If you want to send money, consider using a U.S. Department of State Office of Overseas Citizens Services (OCS) Trust.
- Do not use your personal bank account to transfer money or conduct financial transactions at the direction of someone you met online.
- Do not give out personal information via the phone, mail, or internet/email unless you initiated the contact and are certain you are dealing with a trusted organization or individual.
- Verify requests for personal information from any business or financial institution by contacting them using the main contact information on their official website.
- Do not open, respond to, or click on links contained within unsolicited emails.
- Use strong and different passwords to secure banking accounts, credit accounts, etc., and change passwords and check accounts routinely.
- Limit personal information shared publicly on social networking sites. Never post your full name, Social Security number, address, phone number, or account numbers in publicly accessible sites.
- Regularly obtain and check your credit reports from the three credit bureaus to ensure you recognize all accounts.
- Tell someone you trust if you have become a victim.
- If you suspect fraud or have fallen victim to an online scam report the fraud to the authorities and the dating website.
- Keep in mind that if you send money once, you’ll be a target for life.
- Remember, it’s not rude to say, “NO,” if someone approaches you online.
- A good rule of thumb is, if it’s too good to be true, it’s likely a scam.
To report suspicious activity or if you’ve fallen victim to a scam, please call the Department of Justice’s National Elder Fraud Hotline at 1-833-FRAUD-11 (1-833-372-8311), or online at www.IC3.gov.
For more information about the U.S. Attorney’s Office Elder Justice Initiative, please visit: https://www.justice.gov/usao-wdnc/elder-justice-initiative.
A recording of the seminar can be viewed at https://www.facebook.com/AARPNC/videos/vb.86880509778/291438361931498/?type=2&theater.
Two Individuals Indicted in July Federal Grand JuryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office announced today the results of the July 2020 Federal Grand Jury.
“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.”
BILLY RAY FLYNN, age 65, of Stilwell, Oklahoma
a/k/a Billy Ray AbbottAggravated Sexual Abuse In Indian Country
IncestThe Indictment alleges that from on or about January 31, 2020, in the Eastern District of Oklahoma, in Indian Country, the defendant, BILLY RAY FLYNN a/k/a Billy Ray Abbott, an Indian, did knowingly cause J.F. to engage in a sexual act as defined in Title 18, United States Code, Section 2246, to wit, penetration, however slight, of the vulva of J.F. by the penis, by the use of force against J.F., in violation of Title 18, United States Code, Sections 1153, 2241(a)(1) and 2246, punishable by not more than life imprisonment, a fine up to $250,000.00, or both.
The Indictment further alleges that from on or about January 31, 2020, in the Eastern District of Oklahoma, in Indian Country, the defendant, BILLY RAY FLYNN a/k/a Billy Ray Abbott, an Indian, did fornicate with J.F., a person within the degrees of consanguinity within which marriages are by the laws of Oklahoma declared incestuous and void, in violation of Title 18, United States Code, Sections 1153 and 13; Title 21, Oklahoma Statutes, Section 885, punishable by not more than 10 years imprisonment, a fine up to $250,000.00, or both.
The charges arose from an investigation by the Cherokee Nation Marshal Service and the Federal Bureau of Investigation.
Special Assistant United States Attorney Courtney Jordan
DARIN DAWAYNE TATE, age 42, of Broken Bow, Oklahoma
Felon In Possession Of Ammunition
The Indictment alleges that on or about March 4, 2020, in the Eastern District of Oklahoma the defendant, DARIN DAWAYNE TATE, having previously been convicted of a crime punishable by imprisonment for a term exceeding one year, and knowing of such conviction, did knowingly possess in and affecting commerce, ammunition which had been shipped and transported in interstate and foreign commerce, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), punishable by not more than 10 years imprisonment, a fine up to $250,000.00, or both.
The charges arose from an investigation by the Idabel Police Department and the Drug Enforcement Administration.
Assistant United States Attorney Ryan Heatherman
Three Alabama U.S. Attorneys Warn of Misleading Information and Fake Documents Regarding Face Mask ExemptionsRead the Press Release
Montgomery, Alabama – The three United States Attorneys in Alabama join together to warn citizens that cards and other documents bearing the Department of Justice seal and claiming that individuals are exempt from face mask requirements are fraudulent.
Inaccurate flyers or other postings have been circulating on the web and via social media channels regarding the use of face masks and the Americans with Disabilities Act (ADA) due to the COVID-19 pandemic. Many of these notices include the use of the Department of Justice seal and the Civil Rights Division’s ADA Information Line phone number.
As stated in a previous alert, the Department of Justice did not issue and does not endorse them in any way. The public should not rely on the information contained in these postings.
The ADA does not provide a blanket exemption to people with disabilities from complying with legitimate safety requirements necessary for safe operations. The public can visit ADA.gov or call the ADA Information Line at 800-514-0301 (voice) and 800-514-0383 (TTY) for more information.
The Department of Justice Will Host a Virtual Press Conference Announcing Criminal Charges in a National Security Cyber MatterRead the Press Release
WASHINGTON -- Assistant Attorney General for National Security John C. Demers, FBI Deputy Director David L. Bowdich, U.S. Attorney William D. Hyslop for the Eastern District of Washington, and Special Agent in Charge Ray P. Duda of the FBI Seattle Field Office will participate in a press conference announcing charges in a national security cyber matter.
Following the press conference, reporters may stay on the line for a background briefing on the indictment with a DOJ prosecutor.
WHEN: Tuesday, July 21, 2020, at 11:30 a.m. EST
WHERE: JUSTICE.GOV/LIVE
POOL CAMERA: CNN will be the POOL camera for the event.
NOTE: Members of the news media who wish to only listen/watch to the press conference are encouraged to view it online at www.justice.gov/live. News media who wish to participate in the questions and answers session in this virtual press conference must RSVP to www.justice.gov/mediarsvp with the email address of the person(s) attending the event. Participant dial-in information will only be provided to members of the news media that properly RSVP.
Any inquiries regarding logistics should be directed to [email protected].Tax Evasion Charge Added in Case of Southern California Man Accused of Health Care FraudRead the Press Release
PORTLAND, Ore.—U.S. Attorney Billy J. Williams announced today that Matthew Hogan Peters, 36, of Dana Point, California, has been charged by superseding information with healthcare fraud and tax evasion.
Peters, who owned and operated local compounding pharmacies, was previously indicted by a federal grand jury on December 19, 2019, on charges that he submitted dozens of fraudulent patient attestations in support of reimbursement claims to CVS Caremark, a national pharmacy benefit manager.
“Seeking to defraud pharmaceutical insurance providers is a crime that impacts all Americans in the form of increased health care costs. Mr. Peters added to Americans’ shared losses resulting from his crimes by further depriving the U.S. of millions in personal income taxes owed,” said U.S. Attorney Williams. “These charges demonstrate our commitment to stopping health care fraud in any form and preventing anyone from cheating the IRS.”
“When people infect our health care system with fraudulent schemes as Peters has done, everyone pays. The greed and the self-dealing of scams like this one impact not only the insurance companies and federal health programs like Medicare and Medicaid, but all Americans who depend on affordable health care options to take care of their families,” said Renn Cannon, Special Agent in Charge of the FBI in Oregon.
“Mr. Peters made calculated decisions to divert health care fraud proceeds with the intent of evading his more than $5 million dollar tax liability. His actions hurt all Americans who pay their fair share of taxes,” said IRS-Criminal Investigation Special Agent in Charge Justin Campbell.
The new charges, filed today, accuse Peters of willfully evading the payment of approximately $5.49 million in federal income taxes from 2014 through 2017. Peters is accused of diverting millions of dollars in corporate revenue for various personal uses, including funding real estate projects in Belize and purchasing homes in Incline Village, Nevada, and San Carlos and Laguna Beach, California.
Peters owned and operated Professional Center 205 Pharmacy and Portland Professional Pharmacy, compounding pharmacies located in Southeast Portland. The pharmacies filled prescriptions for, among other things, compounded pain creams, a lucrative line of products. Private and federal healthcare insurance programs reimburse compounding pharmacies for such creams at rates far higher than comparable over-the-counter or bulk-manufactured medications.
CVS Caremark administered prescription drug benefits for many patients the pharmacies served. From April 1, 2014, through May 15, 2015, Peters sought reimbursements of more than $3.4 million from CVS Caremark, which in turn paid him nearly $1.69 million. In mid-2015, CVS Caremark audited Professional Center Pharmacy’s claims for reimbursement and identified approximately 185 claims that lacked records proving customers’ receipt of medications.
Facing possible suspension from CVS Caremark’s network, Peters submitted documentation to explain the discrepancies identified in the audit. This documentation included 41 written attestations, each purporting to bear the electronic signature of an individual patient, confirming that the patient received the prescription in question. Peters is alleged to have created each of their electronic signatures himself.
Peters will remain on pre-trial release pending a four-day jury trial scheduled to begin on September 8, 2020.
This case was investigated by the FBI, IRS Criminal Investigation, the Offices of Inspectors General for the United States Postal Service and the Departments of Labor and Health and Human Services, the United States Postal Inspection Service, and the Defense Criminal Investigative Service. It is being prosecuted by Ryan W. Bounds and Seth D. Uram, Assistant U.S. Attorneys, and Elizabeth Ballard Colgrove, Special Assistant U.S. Attorney, for the District of Oregon.
A criminal information is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
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.
Statement by Attorney General William P. Barr on the Killing of Judge Salas’ Son and the Shooting of Her HusbandRead the Press Release
Attorney General William P. Barr has issued the following statement:
“On behalf of the entire Justice Department, I send my deepest condolences to Judge Salas and her family on the death of their son and wish her husband a swift and complete recovery. This kind of lawless, evil action carried out against a member of the federal judiciary will not be tolerated, and I have ordered the full resources of the FBI and U.S. Marshals Service to investigate the matter.”
Statement of Acting U.S. Attorney Audrey Strauss on the Resentencing of Sheldon SilverRead the Press Release
“Twice convicted by unanimous juries for abusing his powerful state office to enrich himself, Sheldon Silver will now finally report to prison to begin serving a sentence that can begin to repair the harm his conduct caused to the people of this District and to their trust in local government. I commend the career prosecutors and agents who have seen this case through two trials and two appeals, ensuring that Silver’s crimes did not go unpunished and proving once again that this Office and our law enforcement partners will never stop pursuing corruption, without fear or favor, at all levels of government.”
Statement from U.S. Attorney’s OfficeRead the Press Release
NEWARK, N.J. – The FBI has identified Roy Den Hollander as the primary subject in the attack that occurred at the home of the Honorable Esther Salas on July 19, 2020. Den Hollander is now deceased. The investigation remains ongoing. Individuals who believe they have information relevant to the investigation should contact FBI-Newark at 973-792-3000, press option 2.
Santa Clara Man Charged with Running Bogus Artificial Intelligence Investment Fraud SchemeRead the Press Release
SAN FRANCISCO – A criminal complaint was unsealed today in federal court alleging that Shaukat Shamim fraudulently obtained millions of dollars in venture capital funding for an artificial intelligence company by making false and misleading statements about the company’s technology and its revenue, announced United States Attorney David L. Anderson and Federal Bureau Investigation Special Agent in Charge John L. Bennett. Shamim is charged in the complaint with one count of securities fraud and one count of wire fraud.
“Silicon Valley is a global leader when it comes to ingenuity and entrepreneurship. Fraud is neither ingenuity nor entrepreneurship. We are committed to protecting the Valley’s innovation leaders from fraudulent investment schemes,” said U.S. Attorney David L. Anderson.
“The FBI will not allow deceit, corporate greed, and federal criminal activity to run rampant in Silicon Valley," said FBI Special Agent in Charge John F. Bennett. "This scheme allegedly falsified revenue and faked clients to swindle investors of over $17 million."
According to the complaint, beginning in 2013, Shamim, 49, of Santa Clara, is alleged to have raised over $17 million in funds for his startup company, Youplus. To woo investors, Shamim lied about the number of clients who had purchased Youplus’ software, and about Youplus’ revenue. In particular, Shamim is alleged to have provided investors with a fake bank statement in August of 2019 showing that Youplus had over $600,000 in revenue from 35 different client companies, including Coca-Cola, Kraft, and Netflix, when the true bank statement showed only one client, providing $65,000 in revenue. The complaint also alleges that Shamim used investor funds on personal expenses, including purchases at luxury clothing, eyewear, and duty-free stores.
Shamim also allegedly claimed that Youplus had developed proprietary artificial intelligence software that could interpret video reviews posted by customers of particular products, enabling the companies behind those products to analyze how their brands were trending online. Shamim allegedly pitched Youplus’s software as the “world’s first Video Opinion Search engine,” telling investors that “similar to how Google is indexing the textual web by looking inside and indexing keywords, Youplus is using computer vision, audio, and text analysis to look inside videos” to understand market trends. According to the complaint, though, Youplus had not developed AI that could perform these functions. Instead, a review of the software and the company suggested that Youplus was paying workers through its corporate offices in India to watch videos and record their impressions. In other words, the market analysis Youplus was producing was the result of human intelligence, rather than AI software.
Shamim was served with a summons today in Santa Clara, ordering him to appear in federal court on Tuesday, July 21, 2020, in San Francisco.
A complaint merely alleges that crimes have been committed, and Shamim is presumed innocent until proven guilty beyond a reasonable doubt. If convicted of wire fraud under 18 U.S.C. § 1343 (wire fraud), Shamim faces a maximum sentence of 20 years’ imprisonment, a fine of $250,000, and restitution if appropriate. If convicted of securities fraud under 15 U.S.C. § 78j(b) and 78ff, and 17 C.F.R. § 240.10b-5, Shamim faces a maximum sentence of 20 years’ imprisonment, a fine of $5,000,000, and restitution if appropriate. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The case is being prosecuted by the Corporate Fraud Strike Force of the U.S. Attorney’s Office. The prosecution is the result of an investigation by the Federal Bureau of Investigation. The United States Attorney’s Office and the Federal Bureau of Investigation also thank the San Francisco Regional Office of the Securities and Exchange Commission, which conducted a parallel investigation that was also announced today.
Rochester Man Sentenced to 262 Months in Prison for Methamphetamine DistributionRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of DWIGHT FREDERICK BARNES, 50, to 262 months in prison for distributing methamphetamine. On February 7, 2020, following a seven-day jury trial, BARNES was convicted by a federal jury on one count of conspiracy to distribute methamphetamine. BARNES was sentenced today before Judge Nancy E. Brasel in U.S. District Court in St. Paul, Minnesota.
As proven at trial, between May 12, 2017, and October 20, 2017, BARNES received at least four packages, sent from the west coast, containing methamphetamine, which he sold in Rochester, Minnesota. On October 20, 2017, the Rochester Police Department seized a fifth package sent by BARNES that contained two pounds of methamphetamine.
This case was the result of an investigation conducted by the Rochester Police Department, the Drug Enforcement Administration, the United States Postal Inspection Service, and the FBI.
Assistant United States Attorney LeeAnn K. Bell prosecuted the case.
Defendant Information:
DWIGHT FREDERICK BARNES, 50
Rochester, Minn.
Convicted:
- Conspiracy to distribute methamphetamine, 1 count
Sentenced:
- 262 months in prison
- 10 years of supervised release
###
Additional news available on our website.
Follow us on Twitter and Facebook.
United States Attorney’s Office, District of Minnesota: (612) 664-5600
Rapid City Woman Sentenced on Firearm ChargeRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, woman convicted of Possession of a Firearm by a Prohibited Person was sentenced on July 20, 2020, by Chief Judge Roberto A. Lange, U.S. District Court.
Journey Austin, age 24, was sentenced to 14 months in federal prison, followed by 3 years of supervised release, forfeiture of firearms and ammunition, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Austin was indicted by a federal grand jury on March 9, 2020. She pled guilty on May 6, 2020.
The conviction stemmed from an incident that occurred on November 12, 2019. Following a routine traffic stop, law enforcement found and seized firearms and ammunition from the car. Austin admitted being a user of and addicted to a controlled substance, methamphetamine, making it illegal for her to possess firearms. Austin’s DNA was located on the magazine of one of the firearms. Austin will forfeit ownership of the firearms and ammunition seized in this case to the United States.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Michael Elmore prosecuted the case.
Austin was immediately turned over to the custody of the U.S. Marshals Service.
Presidential Task Force on Missing and Murdered American Indians and Alaska Natives Announces Virtual ConsultationsRead the Press Release
The Presidential Task Force on Missing and Murdered American Indians and Alaska Natives announced 12 Tribal consultations to occur virtually across the United States in the coming months.
American Indians and Alaska Natives experience disproportionately high rates of violence. President Trump has called the crisis of missing and murdered Native Americans “sobering and heartbreaking.”
The Presidential Task Force on Missing and Murdered American Indians and Alaska Natives, also known as Operation Lady Justice, announces the upcoming series of Tribal consultations under Executive Order 13898. The Executive Order requires the Task Force to “conduct appropriate consultations with Tribal governments on the scope and nature of the issues regarding missing and murdered American Indians and Alaska Natives.” While the Task Force had plans in place for a robust schedule of consultations and listening sessions in various locations in Indian country and elsewhere beginning in March, postponement of those sessions was required by the current public health crisis. Therefore, the Task Force has established a series of Tribal consultations to be held virtually. The sessions are regional, based on Bureau of Indian Affairs regions. The schedule, link to register, Dear Tribal Leader letter and framing paper are available on the Operation Lady Justice website, which can be found at OperationLadyJustice.usdoj.gov.
Confirmed Dates and TimesAugust 17th, 1:30 p.m. – 5:00 p.m. Eastern
- BIA Eastern Region – Virtual Consultation via WebEx.
August 19th, 1:30 p.m. – 5:00 p.m. Eastern
- BIA Midwest Region – Virtual Consultation via WebEx.
August 21st, 1:30 p.m. – 5:00 p.m. Eastern
- BIA Southern Plains and Eastern Oklahoma Regions – Virtual Consultation via WebEx.
August 25th, 1:30 p.m. – 5:00 p.m. Eastern
- BIA Great Plains and Rocky Mountain Regions – Virtual Consultation via WebEx.
August 27th, 1:30 p.m. – 5:00 p.m. Eastern
- BIA Southwest Region – Virtual Consultation via WebEx.
August 31st, 1:30 p.m. – 5:00 p.m. Eastern
- BIA Northwest Region – Virtual Consultation via WebEx.
September 2nd, 1:30 p.m. – 5:00 p.m. Eastern
- BIA Western and Navajo Regions – Virtual Consultation via WebEx.
September 4th, 1:30 p.m. – 5:00 p.m. Eastern
- BIA Pacific Region First session – Virtual Consultation via WebEx.
September 8th, 1:30 p.m. – 5:00 p.m. Eastern
- BIA Pacific Region Second Session – Virtual Consultation via WebEx.
September 10th, 1:30 p.m. – 5:00 p.m. Eastern
- BIA Alaska Region First Session – Virtual Consultation via WebEx.
September 14th, 1:30 p.m. – 5:00 p.m. Eastern
- BIA Alaska Region Second Session – Virtual Consultation via WebEx.
September 17th, 1:30 p.m. – 5:00 p.m. Eastern
- Final session for any leader who could not make their scheduled Regional Session via WebEx.
The members of the Task Force are:
- Katharine (Katie) Sullivan, Principal Deputy Assistant Attorney General, Office of Justice Programs, designee for the Attorney General;
- Tara Sweeney, Assistant Secretary for Indian Affairs, designee for the Secretary of the Interior;
- Terry Wade, Executive Assistant Director, Criminal, Cyber, Response, and Services Branch, Federal Bureau of Investigation;
- Laura Rogers, Acting Director, Office on Violence Against Women;
- Charles (Charlie) Addington, Deputy Bureau Director, Bureau of Indian Affairs, Office of Justice Services;
- Trent Shores, U.S. Attorney for the Northern District of Oklahoma and Chair of the Native American Issues Subcommittee of the Attorney General’s Advisory Committee; and
- Jean (Jeannie) Hovland, Deputy Assistant Secretary for Native American Affairs and Commissioner, Administration for Native Americans, Department of Health and Human Services.
Marcia Good of the Department of Justice serves as the Executive Director of the Task Force. The Task Force will present a progress report to the President by Nov. 26, 2020, and a final report detailing its activities and accomplishments by Nov. 26, 2021.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of the Department of Justice at www.Justice.gov/Celebrating150Years. 2020 also marks 171st anniversary of the Department of the Interior. Learn more about the history of DOI at www.doi.gov/history/.
Pittsburgh Resident Pleads Guilty to Narcotics Trafficking for DS44 Neighborhood GangRead the Press Release
PITTSBURGH, PA - A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to a charge of narcotics trafficking in connection with a large-scale investigation conducted by the Greater Pittsburgh Safe Streets Task Force, United States Attorney Scott W. Brady announced today.
Ronika Somerville, 23, pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute heroin and fentanyl before United States District Judge William S. Stickman IV. The defendant acknowledged her responsibility for the distribution of six grams of a mixture of heroin and fentanyl. Ms. Somerville was one of 37 defendants charged in the original Indictment and is one of 22 defendants charged in the Superseding Indictment.
In connection with the guilty plea, the court was advised that in 2017, the Greater Pittsburgh Safe Streets Task Force, led by the Federal Bureau of Investigation, initiated an investigation primarily targeting the Darccide/Smash 44, or DS44, neighborhood gang, and drug-trafficking activity in and around the South Side area of Pittsburgh. As part of this large-scale narcotics and firearms investigation, the United States received authorization to conduct a federal wire investigation, which continued through June of 2019. Intercepted communications revealed that Ronika Somerville was involved in the distribution of heroin and fentanyl. Specifically, Ms. Somerville conducted narcotics transactions on behalf of her brother and codefendant, Ronald Williams, by obtaining the drugs from stash locations and physically distributing heroin and fentanyl to customers.
Judge Stickman scheduled sentencing for December 1, 2020, at 10:30 am. The law provides for a total sentence of 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Ms. Somerville remains on bond pending sentencing.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Bureau of Alcohol Tobacco Firearms and Explosives, Allegheny County Adult Probation, Allegheny County Police Department, Allegheny County Sheriff’s Office, Pennsylvania Attorney General’s Office Bureau of Narcotics, Pittsburgh Bureau of Police, and the Wilkinsburg Police Department. Other assisting agencies include the Green Tree Police Department, New York City Police Department, Mount Oliver Police Department, Pennsylvania State Police, Yonkers Police Department, United States Marshals Fugitive Task Force, and the United States Postal Inspection Service.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Pierre Man Sentenced on Firearm ChargeRead the Press Release
United States Attorney Ron Parsons announced that a Pierre, South Dakota, man convicted of Prohibited Person in Possession of a Firearm was sentenced on July 20, 2020, by Chief Judge Roberto A. Lange, U.S. District Court.
Kyle Bordeaux, age 27, was sentenced to time served, totaling 144 days in federal prison, 2 years of supervised release, a special assessment to the Federal Crime Victims Fund in the amount of $100, and ordered to forfeit a .45 AUTO caliber, semi-automatic pistol.
Bordeaux was indicted by a federal grand jury on February 11, 2020. He pled guilty on May 5, 2020.
The conviction stemmed from an incident that occurred on March 16, 2019, in Hughes County, where Bordeaux knowingly being an unlawful user of and addicted to a controlled substance, knowingly possessed a .45 AUTO caliber, semi-automatic pistol.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force, the Pierre Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Obion County Resident Sentenced to Federal Prison for Drug DistributionRead the Press Release
Jackson, TN – Nakeia Shakiece Smith, 27, has been sentenced to federal prison for 18 months for possession with intent to distribute methamphetamine, cocaine base and cocaine. D. Michael Dunavant, U.S. Attorney announced the sentence today.
According to information presented in court, on April 17, 2019, the Fulton County, Kentucky Sheriff’s Office conducted a traffic stop for a window tint violation on the defendant’s vehicle and discovered a large amount of money and five cell phones. Smith admitted that she was delivering narcotics for her boyfriend Jamal Rollins, in Union City, Tennessee.
When law enforcement from Kentucky and Obion County arrived at her residence in Obion County, the defendant was advised of her Miranda rights, and agreed to speak with law enforcement. While searching the residence, deputies found a Sentry safe in Smith’s bedroom which contained cocaine, crack cocaine, methamphetamine, digital scales, seven amphetamine pills, and a Smith & Wesson .45 caliber handgun.
Again, Smith admitted to distributing narcotics for her boyfriend Rollins while he was in jail during the past several weeks. Rollins would tell her where to pick up bottles filled with narcotics; Smith would then deliver the drugs to several individuals in the Union City, Tennessee area.
The Tennessee Bureau of Investigation forensic laboratory tested the narcotics confiscated from Smith and determined that she possessed 44.19 grams of cocaine, 6.21 grams of crack cocaine, and 1.45 grams of methamphetamine.
U.S. Attorney D. Michael Dunavant said, "The U.S. Attorney’s Office is a full-service federal prosecution office, and we have the ability and intention to charge any violations of federal law, no matter where they occur in the Western District of Tennessee. This case demonstrates our focus on the priority area of interstate narcotics distribution that impacts public safety in our rural communities, and we appreciate the partnerships with our local law enforcement agencies in Obion County."
On December 11, 2019, the defendant pled guilty to one count of possessing with the intent to distribute methamphetamine, cocaine base, and cocaine.
On June 16, 2020, U.S. Senior District Court Judge J. Daniel Breen sentenced the defendant to 18 months in prison, followed by 3 years of supervised release. There is no parole in the federal system.
This case was investigated by the Obion County, Tennessee Sheriff’s Department and the Fulton County, Kentucky Sheriff’s Office.
Assistant U.S. Attorney Josh Morrow prosecuted this case on behalf of the government.
###
Nora Springs Man Sentenced to 40 Years in Federal Prison for Child Sexual Exploitation OffensesRead the Press Release
A man who sexually exploited two children and possessed child pornography was sentenced today to 40 years in federal prison.
Aaron Olson, age 36, of Nora Springs, Iowa, received the sentence after a December 6, 2019 guilty plea to two counts of possession of child pornography, including depictions involving prepubescent children. In a plea agreement, Olson agreed to be sentenced to 40 years’ imprisonment. Evidence at the sentencing hearing established that Olson produced child pornography images of two children.
Olson was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Olson was sentenced to 480 months’ imprisonment. Olson must also serve a five-year term of supervised release. He must comply with all sex offender registration and public notification requirements.
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Iowa Division of Criminal Investigation and the Nora Springs Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is CR 19-2029.
Follow us on Twitter @USAO_NDIA.
Native Mob Gang Member Charged with Illegally Possessing A FirearmRead the Press Release
United States Attorney Erica H. MacDonald today announced a criminal complaint charging CHARLES THOMAS ORTLEY, 30, with one count of possession of a firearm by a felon. ORTLEY made his initial appearance today before Magistrate Judge Katherine M. Menendez in U.S. District Court in Minneapolis, Minnesota.
According to the allegations in the criminal complaint and law enforcement affidavit, on April 21, 2020, the Minnesota State Patrol (MSP) conducted a traffic stop of a Chevrolet Suburban for speeding. ORTLEY was identified as the front seat passenger. During a search of the vehicle, officers found a bag that contained a Sig Sauer P224 .40 caliber handgun, two small notebooks, a digital scale, and three Native Mob related medallions. One of the notebooks contained online account user name and passwords in the name of “ortleycharles.” Officers also recovered from the glovebox approximately 45 separate bindles of heroin. Because ORTLEY has prior felony convictions in Hennepin County, he is prohibited under federal law from possessing firearms at any time.
On June, 30, 2020, ORTLEY was charged by the Hennepin County Attorney’s Office with one count of illegal possession of a firearm and one count of second-degree assault in connection with a shooting that occurred on June 25, 2020, in south Minneapolis.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Minneapolis Police Department, the Minnesota State Patrol, and the White Earth Police Department. This case was brought as part of the Twin Cities Violent Crime Task Force, a multi-agency effort that brings together additional federal and state resources to assist local law enforcement to investigate, arrest, and prosecute individuals responsible for gun violence in the Twin Cities. For more information about the Twin Cities Violent Crime Task Force, please visit https://www.justice.gov/usao-mn/pr/united-states-attorney-announces-new-twin-cities-violent-crime-task-force.
Assistant U.S. Attorney Bradley M. Endicott is prosecuting the case.
The charges contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defendant Information:
CHARLES THOMAS ORTLEY, 30
Minneapolis, Minn.
Charges:
- Felon in possession of a firearm, 1 count
###
Additional news available on our website.
Follow us on Twitter and Facebook.
United States Attorney’s Office, District of Minnesota: (612) 664-5600
Missouri Man Sentenced to 84 Months after Pleading Guilty to Child Pornography ChargesRead the Press Release
Montgomery, Alabama – On Tuesday, July 14, 2020, Christopher Dean Miers, a 33-year-old former United States Marine Corps recruiter from Missouri, was sentenced to 84 months in prison after pleading guilty to child pornography charges, announced United States Attorney Louis V. Franklin, Sr. Miers was also ordered to serve five years of supervised release after he completes his prison sentence. There is no parole in the federal system.
According to court documents, from about February 2019, until April 2019, while living on Fort Rucker, Miers was utilizing the internet to access peer-to-peer file sharing networks in order to receive and distribute child pornography. On May 1, 2019, law enforcement obtained a search warrant and found illegal content on his computer, including at least 197 images and 248 videos depicting child porn. Among them were pictures of prepubescent children, as well as sadistic and masochistic images.
On January 15, 2020, Miers was indicted by a federal grand jury for distribution, receipt, and possession of child pornography. He was arrested the following day and has remained in custody since. He pleaded guilty to all three charges on March 23, 2020.
The United States Army Criminal Investigation Command (CID) Major Cybercrime Unit (MCU) investigated this case, with assistance from the Naval Criminal Investigative Service (NCIS). Assistant United States Attorney Hollie Reed prosecuted the case.
Minnesota Man Sentenced for Delivering Methamphetamine to WausauRead the Press Release
Madison, Wis. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Dao Thao, 40, Saint Paul, Minnesota, was sentenced on July 17 by Chief U.S. District Judge James D. Peterson to five years in federal prison for distributing methamphetamine. Thao pleaded guilty to this charge on March 2, 2020.
Thao possessed methamphetamine with intent to deliver to a local drug trafficker in Wausau, Wisconsin on June 19, 2019. On that date Thao possessed over 114 grams of almost pure methamphetamine. Telephone records confirmed that Thao delivered at least the same amount on one other occasion in the weeks leading up to his arrest. Telephone records also confirmed that Thao had been distributing various drugs for the year prior to his arrest in this case.
While records indicate Thao had been engaging in this behavior for at least a year, Judge Peterson considered Thao’s limited criminal history in arriving at an appropriate sentence.
The charge against Dao Thao was the result of an investigation conducted by the Federal Bureau of Investigation; Central Wisconsin Narcotics Task Force; Marathon County Sheriff’s Office; Wisconsin Department of Justice Division of Criminal Investigation; Wausau Police Department; Lincoln County Sheriff’s Office; National Guard Counterdrug Program; Wisconsin State Patrol; and Everest Metro Police Department. The prosecution of the case has been handled by Assistant U.S. Attorney Diane Schlipper.
Miami Beach Man Who Stole Millions from Miccosukee Tribe’s Casino and Woman Who Helped Him Launder It Sentenced to Federal Prison TermsRead the Press Release
Miami, Fl. - Today, U.S. District Judge Darrin P. Gayles, sentenced 44-year-old Lester Lavin to 51 months in federal prison for his role in a computer fraud scheme that he and his co-workers created and used to steal over $5 million from their casino employer, Miccosukee Indian Gaming. Judge Gayles also sentenced Lavin’s girlfriend, Anisleydi Vergel Hermida, 31, of Miami Beach, to six months’ imprisonment for helping Lavin launder his cut of the stolen money.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, FBI, Miami Field Office, and Roland D. Pandolfi, Chief of Police, Miccosukee Police Department, made the announcement.
Lavin worked for Miccosukee Indian Gaming, at its casino, for 12 years -- from 2003 to 2015. For the first six years, Lavin worked as a video technician at the casino, servicing the casino’s electronic gaming machines such as video slot machines. In 2009, Miccosukee Indian Gaming promoted Lavin to Video Supervisor. Two years into his new job, in 2011, Lavin began conspiring with his own supervisor, Michel Aleu, two of his video technicians, Yohander Jorrin Melhen, and Leonardo Betancourt, and others, to steal money from the casino. To accomplish their theft, Lavin and his co-conspirators tampered with the gaming machines’ computers, causing the machines to generate credit vouchers or tickets falsely showing that they had won money. Other members of the conspiracy, who did not work at the casino, would then exchange the credit vouchers for cash at ATMs located on the casino floor and at floor cashiers. Lavin and his co-conspirators perpetrated their fraud and embezzlement scheme for more than four years. From January 2011 through May 2015, they stole about $5.3 million from the Miccosukee Indian Gaming casino.
Among other things, Lavin used his share of the stolen money to purchase a condominium in Miami Beach, to pay down various debts, including mortgages on properties in Miami-Dade County, and to purchase Florida Prepaid College Plans for two of his children. Lavin laundered at least $654,150 of fraud proceeds, on his own, and with help from others, including his co-defendant, Vergel Hermida. Lavin and Vergel Hermida lived together in the Miami Beach condominium that Lavin purchased with fraud money.
On December 19, 2019, Lavin pleaded guilty to three counts in the indictment charging him with conspiracy to steal funds in excess of $1,000 from Miccosukee Indian Gaming, conspiracy to commit computer fraud, and conspiracy to commit money laundering. On January 9, 2020, Vergel Hermida pleaded guilty to conspiracy to commit money laundering. As part of their pleas, Lavin and Vergel Hermida agreed to forfeit Lavin’s Miami Beach condominium, another residential property in Miami, and the Florida Prepaid College Plans.
Six other defendants have pleaded guilty, and are awaiting sentencing later this month and in August 2020. Michel Aleu, Yohander Jorrin Melhen, and Leonardo Betancourt, all former employees and licensees of Miccosukee Indian Gaming, pleaded guilty to conspiracy to steal funds in excess of $1,000 from Miccosukee Indian Gaming, conspiracy to commit computer fraud, and conspiracy to commit money laundering offenses. Their respective spouses and co-defendants, Maria Del Pilar Aleu, Milagros Marile Acosta Torres, and Yusmary Shirley Duran pleaded guilty to conspiracy to commit money laundering offenses.
U.S. Attorney Fajardo-Orshan commended the investigative efforts of the FBI and the Miccosukee Police Department. Assistant U.S. Attorney Dwayne E. Williams prosecuted this case. Assistant U.S. Attorney Nicole Grosnoff is handling asset forfeiture.
You may find a copy of this press release on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls.
You may find related court documents and information on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov, under Case No. 19-20435-Cr-Gayles.
Long Island Felon Sentenced to Nearly 9 Years in Prison for Possessing a Loaded Firearm in Furtherance of Drug TraffickingRead the Press Release
ALBANY, NEW YORK – Hassan Raheem, age 43, of Uniondale, New York, was sentenced today to 106 months in prison for possessing and intending to distribute crack cocaine, and possessing a loaded firearm in furtherance of a drug trafficking crime.
The announcement was made by United States Attorney Grant C. Jaquith and John B. Devito, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
United States Senior District Judge Frederick J. Scullin, Jr. also ordered that Raheem serve a 3-year term of supervised release following his release from prison.
As part of his December 3, 2019 guilty plea, Raheem, who has 6 prior felony convictions, admitted that on July 26, 2016, he possessed a loaded .22 caliber semiautomatic pistol and 17 grams of crack cocaine packaged for distribution at a motel in Colonie, New York. He further admitted that he intended to sell the crack cocaine, and that he possessed the pistol in order to guard against the potential theft of his drugs and drug proceeds.
This case was investigated by ATF and the Colonie Police Department, and was prosecuted by Assistant U.S. Attorney Emmet O’Hanlon
Lebanese National Sentenced to 42 Months in Prison for Illegally Exporting Drone Parts and TechnologyRead the Press Release
Assistant Attorney General for National Security John C. Demers and U.S. Attorney Erica H. MacDonald for the District of Minnesota today announced the sentencing of Usama Darwich Hamade, 55, to 42 months in prison, for conspiring to illegally export goods and technology in violation of the International Emergency Economic Powers Act (IEEPA), the Export Administration Regulations, the Arms Export Control Act, and the International Traffic in Arms Regulations. The sentence was handed down by Chief Judge John R. Tunheim in U.S. District Court in Minneapolis, Minn.
According to the defendant’s guilty plea and documents filed in court, from 2009 through 2011, Hamade conspired with others to export U.S. origin goods and technology including inertial measurement units suitable for use in uncrewed aerial vehicles, or “UAVs,” digital compasses suitable for UAV use, a jet engine, piston engines, and recording binoculars, without obtaining the required export licenses from the U.S. Department of Commerce and the U.S. Department of State, in violation of IEEPA, the Export Administration Regulations, the Arms Export Control Act, and the International Traffic in Arms Regulations. According to evidence presented by the government, the ultimate beneficiary of Hamade’s actions was the designated foreign terrorist organization Hizballah.
This case is the result of an investigation conducted by the FBI, the U.S. Department of Commerce Office of Export Enforcement, and Homeland Security Investigations.
This case is being prosecuted by Assistant U.S. Attorneys John Docherty and David MacLaughlin and Trial Attorney David Recker of the National Security Division.
Lebanese National Sentenced to 42 Months in Prison for Illegally Exporting Drone Parts and TechnologyRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of USAMA DARWICH HAMADE, 55, to 42 months in prison for conspiring to illegally export goods and technology in violation of the International Emergency Economic Powers Act (“IEEPA”), the Export Administration Regulations, the Arms Export Control Act, and the International Traffic in Arms Regulations. The sentence was handed down by Chief Judge John R. Tunheim in U.S. District Court in Minneapolis, Minn.
According to the defendant’s guilty plea and documents filed in court, from 2009 through 2011, HAMADE conspired with others to export U.S. origin goods and technology, including inertial measurement units suitable for use in uncrewed aerial vehicles, or “UAVs,” digital compasses suitable for UAV use, a jet engine, piston engines, and recording binoculars, without obtaining the required export licenses from the U.S. Department of Commerce and the U.S. Department of State, in violation of IEEPA, the Export Administration Regulations, the Arms Export Control Act, and the International Traffic in Arms Regulations. According to evidence presented by the government, the ultimate beneficiary of HAMADE’s actions was the designated foreign terrorist organization Hizballah.
This case was the result of an investigation conducted by the FBI, the U.S. Department of Commerce Office of Export Enforcement, and Homeland Security Investigations.
This case was prosecuted by Assistant United States Attorneys John Docherty and David J. MacLaughlin and Trial Attorney David Recker of the National Security Division.
Defendant Information:
USAMA DARWICH HAMADE, 55
Citizen of Lebanon and South Africa
Convicted:
- Illegal export conspiracy, 1 count
Sentenced:
- 42 months in prison
- Immediate deportation to follow
###
Additional news available on our website.
Follow us on Twitter and Facebook.
United States Attorney’s Office, District of Minnesota: (612) 664-5600
Latin Dragon Nation Member Sentenced to 17 Years in PrisonRead the Press Release
HAMMOND- Luis Colunga, 27, of Hobart, Indiana, was sentenced, on July 17, 2020, by U.S. District Court Judge Philip P. Simon to 204 months in prison following his guilty plea to conspiracy to participate in racketeering activity as a member of the Latin Dragons Nation street gang, announced U.S. Attorney Kirsch.
“A 17 year sentence should send a strong message that gang activity and associated criminal acts will not be tolerated,” said U.S. Attorney Thomas L. Kirsch II. “Gang members should know that my office will continue to investigate and prosecute criminal gang activity as a cohesive law enforcement partnership.”
According to documents in the case, the Latin Dragons Nation is a criminal street gang that originated in Chicago and spread to other areas, including the Northern District of Indiana. Members and associates of the Latin Dragons Nation allegedly engage in acts of violence, including murder, attempted murder, witness tampering, and assault, to protect the gang’s territory. The Latin Dragon Nation members have been charged with crimes involving in excess of 50 victims, including 15 murder victims.
Luis Colunga has been a member of the Latin Dragons Nation street gang since approximately 2006. As a member of the Latin Dragons, Colunga was involved in shootings of suspected rival gang members and participated in trafficking firearms and drugs. In this case, a total of 19 members and associates have been charged with racketeering conspiracy for their participation in Latin Dragon Nation activity. Of those, 13 defendants have pled guilty to the conspiracy with 10 defendants awaiting sentencing.
This case is the result of the investigative efforts of the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Chicago Police Department Criminal Enterprise Unit; the Cook County Sheriff’s Office; the Bartlett Police Department; the Hammond Police Department; the East Chicago Police Department; the Merrillville Police Department; the Hobart Police Department; the Lake County Sheriff’s Department; and the Calumet City Police Department, with assistance from the Lake County, Indiana Prosecutor’s Office, the Cook County, Illinois State’s Attorney’s Office, the Indiana Department of Corrections, and the Illinois Department of Corrections. This case is being prosecuted by Assistant U.S. Attorneys Joseph A. Cooley and Kevin F. Wolff and Special Assistant U.S. Attorney Michael J. Toth, with assistance from the Criminal Division’s Organized Crime and Gang Section Trial Attorney Hans Miller.
###
Last of 15 Defendants Convicted and Sentenced for Prescott-Area Heroin SalesRead the Press Release
PHOENIX, Ariz. – Last week, Jaime Rene Calderon, 28, of Prescott, Arizona, was sentenced by United States District Judge Steven P. Logan to three concurrent terms of 150 months in federal prison, followed by three years of supervised release. In December 2019, a federal jury found Calderon guilty of three counts of aiding and abetting the sale of heroin on three separate occasions.
“The nationwide epidemic of opioid overdoses impacts small and large communities alike,” said United States Attorney Michael Bailey. “Collaborative investigations like Operation Blackwater that bring together state and federal agencies will make Prescott and Prescott Valley a safer place for everyone.”
The Department of Public Safety (DPS), with assistance from the Federal Bureau of Investigation (FBI), conducted “Operation Blackwater” over approximately two years. The operation focused on eliminating the heroin trade in the Prescott and Prescott Valley areas and in particular, to dismantling the criminal activities of the local Creekside Chicanos gang. Evidence at trial proved that Calderon, while incarcerated at the Arizona Department of Corrections, Rehabilitation and Reentry in 2017 for an unrelated offense, recruited two associates outside the prison to sell heroin for profit. Calderon was the last of 15 defendants to be convicted and sentenced for heroin possession with the intent to distribute in connection with the investigation.
“We are grateful for the unwavering collaboration with our federal partners throughout Arizona,” said Heston Silbert, Director of the Arizona Department of Public Safety. “We successfully leveraged each other’s investigative resources and effectively displaced a dangerous criminal organization.”
In addition to Calderon, the following individuals were previously convicted of Possession with Intent to Distribute Heroin and sentenced as follows:
- Adrian Anderson, 38: Sentenced by U.S. District Judge Susan M. Brnovich to 30 months in prison followed by four years of supervised release; September 9, 2019; CR-18-8125-PCT-SMB
- Erbey Balderaz, III, 34: Sentenced by U.S. District Judge John J. Tuchi to 31 months in prison followed by three years of supervised release; May 14, 2018; CR-17-8232-PCT-JJT
- Angela Blackwater, 46: Sentenced by U.S. District Judge John J. Tuchi to time served followed by three years of supervised release; April 30, 2018; CR-17-8225-001-PCT-JJT
- Alisia Gamez, 26: Sentenced by U.S. District Judge John J. Tuchi to 15 months in prison followed by three years of supervised release; May 14, 2018; CR-17-8225-002-PCT-JJT
- Nicholas Cowan, 33: Sentenced by U.S. District Judge Douglas L. Rayes to18 months in prison followed by three years of supervised release; April 2, 2018; CR-17-8228-PCT-DLR
- John Delgado, 33: Sentenced to U.S. District Judge G. Murray Snow to 46 months in prison followed by three years of supervised release; October 29, 2018; CR-17-8223-PCT-GMS
- Andre Enciso, 37: Sentenced by U.S. District Judge John J. Tuchi to 12 months and one day in prison followed by three years of supervised release; March 19, 2018; CR-17-1258-PHX-JJT
- Lisa Gazzam, 40: Sentenced by U.S. District Judge Susan M. Brnovich to 30 months in prison followed by three years of supervised release; April 29, 2019; CR-18-578-PHX-SMB
- Veronica James, 39: Sentenced by U.S. District Judge Douglas L. Rayes to 12 months and one day in prison followed by three years of supervised release; September 10, 2018; CR-17-8229-PCT-DLR
- Craig Livermore, 35: Sentenced by U.S. District Judge David G. Campbell to three years of probation; January 11, 2019; CR-17-8224-PCT-DGC
- Bryant Montoya, 26: Sentenced by U.S. District Judge Diane J. Humetewa to 66 months in prison followed by three years of supervised release; June 4, 2018; CR-17-8231-001-PCT-DJH
- Marcos Ochoa, 24: Sentenced by U.S. District Judge Diane J. Humetewa to 36 months in prison followed by three years of supervised release; August 22, 2018; CR-17-8226-PCT-DJH
- Yeni Guevara Solis, 28: Sentenced by U.S. District Judge Diane J. Humetewa to 24 months in prison followed by three years of supervised release; May 14, 2018; CR-17-8231-002-PCT-DJH
- Evangeline Wilson, 32: Sentenced by U.S. District Judge David G. Campbell to18 months in prison followed by three years of supervised release; May 21, 2018; CR-17-8230-PCT-DGC
"We are thankful for the impact this collaborative, long-term investigation has made in the Prescott community," said Sean Kaul, Special Agent in Charge of the FBI Phoenix Division. "Working together, we were able to get dangerous drugs and dangerous individuals off the streets. The FBI is proud to work with our state, local, and federal partners and will continue to do so to protect the communities we serve in the fight against drugs."
Arizona DPS (Prescott) and the FBI conducted the investigation into these matters. Assistant U.S. Attorney Christina Covault, District of Arizona, Phoenix handled the prosecutions with assistance from Assistant U.S. Attorney Jason Crowley on the Calderon case.
CASE NUMBER: CR-18-8126-PCT-SPL
RELEASE NUMBER: 2020-063_Calderon# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.- Adrian Anderson, 38: Sentenced by U.S. District Judge Susan M. Brnovich to 30 months in prison followed by four years of supervised release; September 9, 2019; CR-18-8125-PCT-SMB
Kanawha County Man Pleads Guilty to Federal Drug ChargeRead the Press Release
CHARLESTON, W.Va. – A Kanawha County man has pled guilty to a federal drug crime, according to United States Attorney Mike Stuart. Stephen Hayden, 51, pled guilty to cultivation of marijuana.
“This man seems to have had quite a green thumb and a big basement. He should have cultivated something legal like tomatoes or corn,” said United States Attorney Mike Stuart. “Tomatoes and corn are far easier and you can grow them outside and actually sell them. They are good for you too. Marijuana is and remains illegal under federal law. In my district, we prosecute cases involving all illegal drugs including marijuana.”
Hayden admitted that on April 9, 2018, law enforcement smelled the odor of marijuana coming from his residence. Based on the odor, the West Virginia State Police obtained a search warrant. In Hayden’s basement, officers discovered a room that contained fertilizer, grow lights, fans and other cultivation equipment. There were approximately 289 marijuana plants, in various stages of growth, with harvested marijuana hanging and drying in a closet.
Hayden faces up to five years in prison when he is sentenced on October 13, 2020.
The West Virginia State Police conducted the investigation. Senior United States District Judge David A. Faber presided over the hearing. Assistant United States Attorney L. Alexander Hamner is handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:20-cr-0055.
Follow us on Twitter: SDWVNews and USAttyStuart
###
KC Man Charged with Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Missouri, man was charged in federal court today with illegally possessing firearms, the first arrest under Operation LeGend, a federal partnership with local law enforcement agencies to address violent crime.
“Illegal drugs and illegal guns are a lethal combination,” Garrison said. “A fugitive from justice, driving a stolen vehicle and carrying stolen firearms, is a violent crime waiting to happen. Federal and local law enforcement worked together to bring him to justice and protect our community from further violence.”
Monty W. Ray, 20, was charged with being an unlawful drug user in possession of firearms in a criminal complaint filed in the U.S. District Court in Kansas City, Mo. He remains in federal custody pending a detention hearing.
According to an affidavit filed in support of the federal criminal complaint, law enforcement officers saw Ray driving a vehicle that had been reported stolen in the area of 107th Street and Blue Ridge Boulevard in Kansas City, Mo., on July 17, 2020. Officers stopped Ray, who had active warrants for assaulting a law enforcement officer and fleeing (for an incident in which Ray ran over an officer’s foot and rammed his own vehicle into a patrol vehicle before escaping from officers in a pursuit that reached speeds of 110 miles per hour) as well as a probation violation. Ray fled from the vehicle on foot but was apprehended by officers.
Officers saw a loaded Glock 9mm semi-automatic handgun lying in plain view on the driver’s seat, the affidavit says. A loaded Sig Sauer 9mm semi-automatic handgun was found in the center console cup holder. Both firearms had been reported stolen. Officers searched the vehicle and found five rounds of 9mm ammunition and one .223-caliber round in the glove box of the vehicle. They also found a spent 9mm shell casing on the driver’s side floorboard of the vehicle.
Ray admitted to officers that he is an habitual user of marijuana, according to the affidavit, and that he has been smoking marijuana daily since he was 12 years old. He also admitted to using methamphetamine, most recently on the day before his arrest.
The charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Robert M. Smith. It was investigated by the Independence, Mo., Police Department and the U.S. Marshals Service.
Operation LeGend
Operation LeGend is a federal partnership with local law enforcement to address the increase in homicides and violent crime in Kansas City, Mo., in 2020. The operation honors the memory of four-year-old LeGend Taliferro, one of the youngest fatalities during a record-breaking year of homicides and shootings. Additional federal agents were assigned to the operation from the FBI, Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the U.S. Marshals Service.Huntington Man Pleads Guilty to Methamphetamine ChargeRead the Press Release
HUNTINGTON, W.Va. – A Huntington man has pled guilty to a federal drug crime, announced United States Attorney Mike Stuart. Joshua David Ramey, 29, pled guilty to possession with intent to distribute methamphetamine.
“Things just kept getting worse for Ramey – he ran out of gas, had no vehicle registration, no valid driver’s license…then officers discovered a trunk full of methamphetamine and a firearm. Reminds me of a blues song… ‘If it wasn’t for bad luck I wouldn’t have no luck at all,’” said United States Attorney Mike Stuart. “Living on the wrong side of the law eventually catches up with you. Not bad luck just bad decisions.”
Ramey admitted that on March 13, 2018, near mile marker 34 of I-64 westbound, he had been driving a vehicle which had run out of gas. A deputy with the Putnam County Sheriff’s Department stopped with the disabled vehicle and waited for a Courtesy Patrol to arrive for filling up the gas tank. Subsequent investigation determined that the vehicle had no registration and neither occupant of the vehicle, including Ramey who was the driver, had a valid driver’s license. A search of the vehicle’s trunk revealed a white shopping bag that contained four separate plastic baggies containing an approximate combined weight of 471.5 grams of methamphetamine, worth approximately $36,000 in street value. Also recovered from the trunk was a Mossburg .410 shotgun which belonged to Ramey.
Ramey faces up to 20 years in prison when sentenced on October 19, 2020.
The Putnam County Sheriff’s Department conducted the investigation. United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorneys Ryan A. Keefe and Monica D. Coleman are handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:18-cr-00181.
Follow us on Twitter: SDWVNews and USAttyStuart
###
Holyoke Man Sentenced for Selling CocaineRead the Press Release
BOSTON – A Holyoke man was sentenced on Friday, July 17, in federal court in Springfield for drug possession and distribution charges.
Roberto Santiago, 45, was sentenced by U.S. District Court Judge Mark G. Mastroianni to 10 months in prison and three years of supervised release. Santiago sold cocaine on Sept. 30, 2019 in Holyoke. The arrest was the result of a multi-agency investigation into heroin trafficking in Holyoke dubbed “Operation Open Air.”
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Holyoke Police Chief Manny Febo made the announcement today. Assistant U.S. Attorney Neil L. Desroches of Lelling’s Springfield Branch Office prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions 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.
Hartford Man Sentenced to Federal Prison for Illegal Gun PossessionRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that NOEL PEREZ, 23, of Hartford, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 24 months of imprisonment, followed by three years of supervised release, for illegally possession of a firearm.
According to court documents and statements made in court, on May 29, 2018, Hartford Police stopped a vehicle Perez was driving on Wadsworth Street. A search of the vehicle revealed a loaded Sig Sauer P2022 .40 caliber handgun, which had a laser sight attached to its barrel.
Perez’s criminal history includes felony convictions in state court for assault, burglary and larceny offenses.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
On December 4, 2018, Perez pleaded guilty in federal court to one count of possession of a firearm by a convicted felon. On November 20, 2019, while he was released on bond, Perez was arrested by Hartford Police. According the police report, when Perez was apprehended, a search of his person revealed wax paper sleeves containing a white powder substance that field-tested positive for heroin, and $892 in cash. In addition, a gun was discovered in the driveway where he and two associates stood before they ran from police. Perez’s bond was revoked on December 3, 2019.
This investigation was conducted by the Hartford Police Department and the Federal Bureau of Investigation’s Violent Crime Task Force. The case was prosecuted by Assistant U.S. Attorney Anastasia E. King.
This prosecution is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
Former Newark High School Faculty Member Charged with Multiple Counts of Child Pornography; Investigators Seeking Help from the PublicRead 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 Matthew Holland, 28 of Newark, NY, was arrested and charged by criminal complaint with production, receipt, and possession of child pornography, and online enticement of a minor. The charges carry a minimum penalty of 15 years in prison, a maximum penalty of life, and a $250,000 fine.
According to the complaint, on March 9, 2020, investigators with the Loudoun County Sheriff’s Office in Leesburg Virginia, received a report that Snapchat user “Tjohnson755” had engaged in sexually explicit conversations with a 14 year old minor. The complaint states that “Tjohnson755,” later identified as Matthew Holland, coerced the minor into sending him nude photographs. When the minor indicated that she did not wish to continue communicating, the defendant threatened to disseminate the minor’s photographs over the internet. Using this and other threats, Holland coerced the minor to continue to send him sexually explicit photographs and videos.
Loudoun County Sheriff’s Office detectives executed a search warrant on Holland’s “Tjohnson755” Snapchat account, and using IP information, located the defendant’s residence in Newark, NY. While analyzing the Snapchat account, investigators identified dozens of similar conversations with other suspected minors.
On March 9, 2020, with assistance from the Newark Police Department, and the Wayne County, NY, Sheriff’s Office, Loudoun County investigators executed a search warrant at Holland’s residence. A preliminary forensic analysis of computers and other digital items seized revealed hundreds of images and videos of child pornography, including child pornography depicting prepubescent minors, and child pornography that Holland produced from known and unknown minors using his “Tjohnson755” Snapchat account. During the execution of the search warrant, Holland indicated to investigators that he operated Illumination Images on W. Union Street in Newark, NY, where he had hidden cameras in the dressing room, in order to record customers, including minors, in various stages of undress.
Following the execution of search warrant, Holland was arrested and extradited to Leesburg, VA, to face a state charges in that jurisdiction. The defendant made an initial appearance on the federal charges in United States District Court, Eastern District of Virginia, and is being held without bail, until he is transported to the Western District of New York, where the prosecution will be handled by Assistant U.S. Attorney Kyle P. Rossi.
According to the complaint, Holland recently resigned as a faculty member at Newark High School. The defendant was also previously employed at the YMCA in Canandaigua, NY, and is believed to have surreptitiously recorded individuals at that location.
Anyone with information concerning Matthew Holland, Illumination Images, or Snapchat User “Tjohnson755,” is asked to contact Homeland Security Investigations at (716) 464-6070 or via email at [email protected].“As an educator and photographer, the defendant not only had access to children but occupied a position of trust with respect to them,” stated U.S. Attorney Kennedy. “However, as reflected in the allegations set forth in the criminal complaint, his cruel and unrelenting betrayal of that trust is every parent’s nightmare. This case serves as a sobering reminder that we must remain vigilant in our effort to educate our children to the dangers they face and to pay attention to their online activities. Too often children lack the real world experience needed to discern the dangers lurking in the virtual world.”
“The allegation of child exploitation by a trusted member of our community is reprehensible and demands swift action,” said Kevin Kelly, Homeland Security Investigations Buffalo Special Agent-in-Charge. “HSI is urging those with any information about the defendant to come forward to ensure justice for those that may have been victimized.”
The criminal complaint is the result of an investigation by the Loudoun County, VA, Sheriff’s Office, under the direction of Sheriff Michael L. Chapman; the Newark, NY Police Department, under the direction of Chief Mark Thoms; the Wayne County Sheriff’s Office, under the direction of Sheriff Berry Virts; the Canandaigua, NY Police Department, under the direction of Chief Stephen Hedworth; and Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
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.
# # # #
Former Managers and Employees of Connecticut Insurance Firm Charged in $17 Million Scheme to Defraud Client Healthcare ExpensesRead the Press Release
Audrey Strauss, the Acting United States Attorney for the Southern District of New York, and Philip R. Bartlett, Inspector in Charge of the New York Field Office of the United States Postal Inspection Service (“USPIS”), announced the arrests of ANTHONY RICCARDI, PATRICIA RICCARDI, ERIN VERESPY, and VANESSA BATTLE, former managers and employees of Employee Benefit Solutions LLC (“EBS”), for defrauding clients by misappropriating over $17 million in client funds intended for employee healthcare claims. ANTHONY RICCARDI, PATRICIA RICCARDI, and ERIN VERESPY appeared before Chief U.S. Magistrate Judge Paul E. Davison in White Plains federal court last week, and VANESSA BATTLE appeared before Judge Davison this morning.
Acting U.S. Attorney Audrey Strauss said: “As alleged in the criminal complaint, the defendants abused their positions as administrators of client healthcare plans for years by creating false and inflated invoices and then misappropriating millions of dollars for their own uses. As further alleged, the defendants sought to conceal this fraud by creating false bank statements and checks. Our Office will continue to work with our law enforcement partners to expose and prosecute egregious fraud schemes.”
Inspector in Charge Philip R. Bartlett said: “The magnitude and the level of the alleged dishonesty by these individuals is truly unfathomable. The defendants allegedly enriched themselves with money transferred to EBS intended for the payment of medical expenses. Once Postal Inspectors caught this case they swiftly uncovered the theft scheme and brought those allegedly responsible to justice for their criminal behavior.”
According to the allegations in the Complaint unsealed today[1]:
ANTHONY RICCARDI, PATRICIA RICCARDI, ERIN VERESPY, and VANESSA BATTLE are managers and employees of EBS, a company based in Wilton, Connecticut, that offered a variety of healthcare insurance-related services to clients. EBS, among other things, provided third party healthcare claims administration (“TPA”) services to clients that elected to “self-fund” (or self-insure) their employee healthcare plans. As a TPA, EBS would purportedly administer, process, and pay healthcare claims for its clients’ employees in exchange for an administrative fee.
Between at least 2015 and continuing through 2019, EBS represented an automobile dealership chain (“Company-1”) headquartered in Westchester County, New York. During this time period, EBS served as a TPA for Company-1’s self-funded employee healthcare program and purported to process and pay claims to medical providers that treated Company-1’s employees. To do this, EBS generated bimonthly “check register” invoices for Company-1 that listed all employee healthcare expenses from healthcare providers during that two-week period. EBS also administered a bank account on Company-1’s behalf for the express purpose of paying Company-1 healthcare claims. Company-1 would fund each check register by paying the invoiced amount, expecting that EBS would promptly pay the claims to the healthcare providers. During this time period, Company-1 transferred approximately $26 million to EBS for the payment of healthcare claims.
In reality, a significant amount of purported checks listed on the EBS “check register” invoices were never actually deposited by the healthcare providers. Instead, approximately $17.87 million in Company-1 healthcare payments were misappropriated, with the overwhelming majority simply transferred by EBS into its own operating account, where they were used for non-healthcare expenses by the defendants. For example, a review of bank records indicates that Company-1 healthcare funds were used by ANTHONY RICCARDI and PATRICIA RICCARDI to pay their home mortgage expenses, as well as a personal credit card account with expenses relating to boating and golf.
EBS, through the defendants, made decisions of what few Company-1 healthcare claims they did pay based on which healthcare providers were likely to complain if they did not receive payment, or if the claims were connected to Company-1 executives. PATRICIA RICCARDI and VERESPY, for example, discussed the timing of payments for Company-1 “VIPs” as well as a “Not VIP” claim that was nonetheless the subject of complaining phone calls.
The “check registers” sent to Company-1 also contained millions of dollars in fraudulent or inflated healthcare claims that were eventually paid by Company-1. Such efforts were directed by ANTHONY RICCARDI and assisted by BATTLE, who among other things, manually entered a majority of claims relating to a specific pharmacy network that were billed to Company-1, despite approximately $3 million of those claims being fictitious. Furthermore, on at least one occasion, BATTLE sent an auditor for Company-1’s insurance underwriter a series of pharmacy network claims that were billed to Company-1 despite being significantly inflated from the pharmacy network’s records.
The defendants also took steps to conceal their fraud from Company-1 by creating and sending manipulated and fabricated bank statements and checks to create the appearance that healthcare claims were being paid by EBS, when in reality they were not. In approximately January 2019, for example, ANTHONY RICCARDI sent multiple bank statements to Company-1 that purported to show healthcare claims being paid out from the account EBS created on Company-1’s behalf. Such bank statements were significantly altered from the actual bank statements and hid, for example, the millions of dollars that EBS transferred from the Company-1 account into the EBS operating account. BATTLE sent similar copies of the altered bank statements to an auditor for Company-1’s insurance underwriter. VERESPY and ANTHONY RICCARDI also exchanged emails showing the creation of altered bank statements on behalf of another client in or about 2018. Furthermore, on at least one occasion, ANTHONY RICCARDI sent Company-1 an image of an altered check to create the appearance that EBS was handling a delayed healthcare payment. In so doing, ANTHONY RICCARDI also emailed PATRICIA RICCARDI and BATTLE to ask whether they needed to “make more . . . checks.”
ANTHONY RICCARDI, 42, PATRICIA RICCARDI, 53, and VANESSA BATTLE, 65, each of New Canaan, Connecticut, and ERIN VERESPY, 49, of Trumbull, Connecticut, are each charged with one count of conspiracy to commit wire fraud and one count of wire fraud, each of which carries a maximum sentence of 20 years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Ms. Strauss praised the outstanding investigative work of the U.S. Postal Inspection Service and the Special Agents of the United States Attorney’s Office. Ms. Strauss also thanked the U.S. Department of Labor, Employee Benefits Security Administration; U.S. Department of Labor, Office of Inspector General; and the United States Secret Service, which are assisting in the investigation, as well as the U.S. Attorney’s Office for the District of Connecticut.
The prosecution is being handled by the Office’s White Plains Division. Assistant United States Attorney Nicholas S. Bradley is in charge of the prosecution.
The charges in the Complaint are merely accusations and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Former Controller Sentenced for Embezzlement SchemeRead the Press Release
GREENEVILLE, Tenn. – On July 17, 2020, Shain A. Chappell, 49, formerly of Johnson City, was sentenced by the Honorable Clifton L. Corker, in the United States District Court for the Eastern District of Tennessee at Greeneville.
As part of the plea agreement, Chappell pleaded guilty to an information in December 2019. The information charged Chappell with one count of wire fraud and one count of making a false tax return in the United States. Chappell was sentenced to 40 months in prison, followed by three years’ supervised release. Chappell will be required to make restitution of over $1 million to the victim and over $350,000 to the United States.
In October 2015, Greentech Environmental, LLC hired Chappell as its controller. During his time at Greentech, Chappell developed a scheme that used his position as controller to deceive Greentech into paying for Chappell’s personal credit card purchases, subsequently hiding the thefts by showing the payments as purchases of inventory in Greentech’s books and records. By July 2017, less than two years after his hiring, Chappell had embezzled over $1 million from his former employer, using the embezzled funds to pay for lavish lifestyle expenditures.
In addition to stealing from Greentech, Chappell filed false tax returns for 2017 and 2018 that failed to include as income the money he stole from his employer, resulting in additional income tax owed of over $350,000.
The criminal indictment was the result of an investigation by the Federal Bureau of Investigation and IRS Criminal Investigations. This investigation was co-led by FBI Special Agent Reanna E. O’Hare and IRS CI Special Agent Jimmy Cline.
Assistant U.S. Attorney Mac D. Heavener, III represented the United States.
###
Former Bossier Parish Community College Comptroller Pleads Guilty to Stealing More Than $250,000Read the Press Release
SHREVEPORT, La. – United States Attorney David C. Joseph announced that Carol Bates, the former comptroller for Bossier Parish Community College (BPCC), pled guilty today before Chief U.S. District Judge S. Maurice Hicks Jr., to one count of conspiracy to commit wire fraud.
Bates admitted at the plea hearing that from 2013 to 2016, she used her position as comptroller of BPCC to access an internal BPCC computer database and make false entries falsely showing individuals were due refunds by the school. These individuals were not qualified to receive the funds, and, in most cases, they were not even attending BPCC during the semesters they received the money. As a part of the scheme, Bates and her sister, Audrey Williams, recruited Faith Alexander and Marquise Perry, along with seven other individuals to receive fraudulent refunds from BPCC. Once the individual received the funds, they were instructed to deliver between one-half and two-thirds of the money to Carol Bates or her sister, Audrey Williams.
In total, Bates caused 45 fraudulent refunds totaling $259,591.87 to be issued. Alexander received eight refunds totaling $45,482.65 from 2014 through 2016. Perry received seven refunds totaling $49,524.65 from 2015 through 2016. The remaining 30 refunds were issued to seven other individuals who, after receiving the money, transferred two-thirds or half of it to Bates.
On September 25, 2019, Bates, 49, along with her co-defendants, Faith Alexander, 28, Marquise Perry, 35, and Audrey Williams, 56, all of Shreveport, was charged with one count of conspiracy to commit wire fraud. In addition to the conspiracy to commit wire fraud, Bates was charged with 12 counts of wire fraud and Perry was charged with three counts of wire fraud.
Faith Alexander pled guilty on February 19, 2020, to one count of conspiracy to commit wire fraud; Perry pled guilty on December 9, 2019, to one count of wire fraud; and Williams entered a not guilty plea on October 23, 2019.
Bates faces up to 20 years in prison, a $250,000 fine, and up to one year of supervised release. Sentencing will be set at a later date. Alexander and Perry also face up to 20 years in prison, a $250,000 fine, and up to one year of supervised release when they are sentenced on September 2, 2020.
The U.S. Department of Education, Office of Inspector General, and the Louisiana Office of State Inspector General conducted the investigation. Assistant U.S. Attorney Seth D. Reeg is prosecuting the case.
# # #
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Former Acting Administrator of the Drug Enforcement Administration Uttam Dhillon New Interpol Washington DirectorRead the Press Release
Attorney General William P. Barr announced today Uttam Dhillon will become INTERPOL Washington Director after Wayne Salzgaber returns to the U.S. Department of Homeland Security following his over two-year detail serving as INTERPOL Washington Director, effective August 1. INTERPOL Washington, the U.S. National Central Bureau, is a component of the U.S. Department of Justice and is co-managed by the U.S. Department of Homeland Security.
“I want to thank Director Wayne Salzgaber for his service to the Department of Justice as the Deputy Director and Director of INTERPOL Washington, while on detail to us from the Department of Homeland Security (DHS),” said Attorney General Barr. “Director Salzgaber has done an excellent job leading one of the Department’s most significant crime fighting agencies these past five years, achieving many successes on high-profile cases while advancing the rule of law and combatting transnational crime and terrorism. I greatly appreciate Director Salzgaber’s service to the Department and our nation, and I wish him well as he returns to DHS. I am pleased to appoint Uttam Dhillon as the next INTERPOL Washington Director.”
Salzgaber, an over 30-year veteran of DHS, began his appointment as Director of INTERPOL Washington in June 2018 after serving in the positions of Deputy Director and Acting Director since 2015. As Director, Mr. Salzgaber has been instrumental in advancing many of our nation’s international information sharing strategies by using the INTERPOL platform as the central component to facilitate and enhance the sharing of crucial U.S. criminal intelligence and investigative information on wanted fugitives, transnational criminals and terrorists. Wayne was recognized, in 2018, as a recipient of the Deputy Attorney General’s Award for Outstanding Leadership for his dedication and ability to influence global partnerships in support of U.S. strategies.
As INTERPOL Washington Director, Mr. Dhillon will act on behalf of the Attorney General as the official U.S. representative to INTERPOL, the world’s largest International Criminal Police Organization, and its 194 member countries, leading the U.S. Government’s efforts to share and exchange international criminal investigate, border security and humanitarian assistance information across the INTERPOL communications platform, and be responsible for all personnel and assets dedicated to INTERPOL Washington’s mission of supporting domestic and international law enforcement and border security operations around the globe.
Mr. Dhillon is a dedicated public servant who has served in the Department of Justice, the White House, DHS, Congress, and as a career federal prosecutor. Dhillon was appointed Acting Administrator of the U.S. Drug Enforcement Administration (DEA), on July 2, 2018, and for nearly two years led a workforce of over 15,000 and oversaw a budget of $3.2 billion. He was responsible for DEA’s enforcement, intelligence, administrative, and regulatory activities worldwide. He previously served on the Board of Directors for the International Association of Chiefs of Police (IACP), and is co-chair of the IACP Narcotics and Dangerous Drugs Committee. Prior to joining the DEA, he served as Deputy Counsel and Deputy Assistant to the President of the United States.
In 2006, Mr. Dhillon was confirmed by the U.S. Senate as the Director of the Office of Counternarcotics Enforcement at DHS. Prior to DHS, Mr. Dhillon served as an Associate Deputy Attorney General in the Justice Department. Earlier in his career, Mr. Dhillon served as an Assistant U.S. Attorney in the Central District of California for six and one-half years. He also has significant experience in the Legislative Branch, holding several senior roles, including Chief Oversight Counsel for the House Financial Services Committee, Chief Counsel and Deputy Staff Director for the House Select Committee on Homeland Security, and Senior Investigative Counsel for the House Committee on Oversight and Government Reform.
Mr. Dhillon graduated from the University of California, Berkeley School of Law. He earned a Master of Arts degree in psychology from the University of California, San Diego and a Bachelor of Arts degree in psychology from California State University, Sacramento. He is a member of the District of Columbia Bar.
Michael A. Hughes will continue serving as Deputy Director of INTERPOL Washington.
For more information about INTERPOL Washington, please visit https://www.justice.gov/interpol-washington.
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.
Florida Man Sentenced for Making Death Threats on Facebook PostsRead the Press Release
Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell today sentenced Chase A. Davis (20, Alva) to six months in federal prison for making a threat over the internet to kill an individual. The court also sentenced Davis to serve 400 hours of community service, to pay $1,440 in restitution to the American Family Association, and to serve a three-year term of supervised release.
Davis had pleaded guilty on November 27, 2019.
According to court documents, on May 22, 2019, Davis transmitted two threats over the internet from Pompano Beach, Florida to Tupelo, Mississippi, to the American Family Association’s Facebook page. The posts contained the following language:
“i am coming to tupelo unexpected with a group of people and we are going to kill every single person who runs your group,” and
“you are the most disgusting people in america. i have put together a group to have you pieces of [expletive] obliterated into dust. yes, i literally mean killing all of you. you people are nothing but disgusting, worn out, and old excuses of human life.”
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Jeffrey F. Michelland.
Federal Jury Convicts Boone, N.C. Man of Child PornographyRead the Press Release
CHARLOTTE, N.C. – A federal jury in Charlotte has convicted William Jon Patric Ebert, 60, of Boone, N.C. of child pornography charges, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Frank D. Whitney presided over the trial. The jury returned the guilty verdict on Friday, July 17, 2020, following a two-day trial.
According to filed court documents and evidence presented at trial, Ebert sexually abused a minor for more than six years. The sexual abuse took place in Ohio and in North Carolina. Evidence presented at trial established that Ebert also used the minor to produce child pornography photographs of the minor, and that he stored those photographs on his computer and other devices he owned. On September 22, 2016, law enforcement officials executed a search warrant at Ebert’s residence in Boone and seized several devices and computers. A forensic analysis of Ebert’s hard drive revealed that it contained sexually explicit images of the minor victim.
The jury convicted Ebert of using a minor to produce child pornography photographs of the minor. The jury also convicted Ebert of possessing those photographs. He was found not guilty of transporting a minor with intent to engage in sexual criminal activity. Ebert is currently in federal custody. A sentencing date has not been set.
The production of child pornography charge carries a mandatory minimum sentence of 15 years and a maximum sentence of 30 years in prison. The possession of child pornography charge carries a maximum sentence of 10 years in prison. Both charges carry a maximum fine of $250,000.
In making today’s announcement U.S. Attorney Murray thanked the North Carolina State Bureau of Investigation and the Avon Police Department in Ohio for their investigation of this case.
Assistant United States Attorneys Kimlani Ford and Eric Lindahl are prosecuting the case for the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Federal Grand Jury Indicts Three Men for Their Roles in Violent Robberies of Two Local Credit UnionsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that a federal grand jury has returned an indictment charging Adrian D. Applewhite, a/k/a Boons, 32, of Cheektowaga, NY; along with Ronald L. Morris, a/k/a Cracks, 45, and Carl I. Wilson, Jr., a/k/a Baby C, 35, both of Buffalo, NY, with aggravated bank robbery, brandishing a firearm, entering a bank with intent to commit a larceny, and bank larceny. In addition, defendant Morris is charged with being a felon in possession of a firearm and ammunition. The charges carry a maximum penalty of life in prison and a $250,000 fine.
Assistant U.S. Attorney Joshua A. Violanti, who is handling the case, stated that according to the indictment and a previously filed complaint, on July 25, 2019, defendants Applewhite and Morris entered the Southtowns Community Federal Credit Union (SC FCU) on South Park Avenue in Lackawanna, and conducted a bank robbery with pepper spray and a pistol. The two suspects traversed the teller's counter, sprayed the tellers with pepper spray, and went directly to the unlocked safe, removing $290,500.00 in United States currency. The defendants placed the currency in a dark colored duffle bag then fled on foot.
On November 7, 2019, the three defendants are accused of entering the Clarence Community and School Federal Credit Union (CCS FCU), on Sheridan Drive in Clarence and conducted a take-over style bank robbery. Armed with pistols, and donning masks and florescent green work gloves, at least two of the defendants holding hand guns ordered all the employees to the ground and demanded money. Two of the defendants went back behind the teller line and went through teller's drawers. The third robber went to the vault. The defendants stole a total of $148,793.90.
Defendant Morris was previously convicted of three felonies, two in New York State Court in 1993 and 2002, and one in Erie County Court in 1996. As a result, he is legally prohibited from possessing a firearm and ammunition.
“The tremendous work done by federal, state, and local law enforcement in this case, led to the apprehension of three violent bank robbers who sought to retain their anonymity—and their criminality—behind a cloud of pepper spray, masks, and illegal guns,” stated U.S. Attorney Kennedy. “Despite a barrage of recent criticism, the conduct by law enforcement in this investigation demonstrates the selfless and invaluable role that our partners in law enforcement play in unmasking, disarming, and apprehending dangerous individuals, who disregard the law, place their own interests above all others, and in the process, endanger the safety and well-being of ordinary citizens everywhere.”
The defendants were arraigned before U.S. Magistrate Judge Jeremiah J. McCarthy and detained.
The indictment is the result of an investigation by the New York State Police, under the direction of Major James Hall; the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia; the Lackawanna Police Department, under the direction of Chief Mark Packard; and the Erie County District Attorney’s Office, under the direction of District Attorney John Flynn.
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.
# # # #
Federal Corrections Officer Indicted for Accepting BribesRead the Press Release
Jackson, Miss. – Wesley Hughes, 28, of Greenwood, Mississippi, was indicted by a Federal Grand Jury on July 14, 2020 and charged with accepting bribes, announced United States Attorney Mike Hurst, James F. Boyersmith, Special Agent in Charge, U.S. Department of Justice Office of the Inspector General (“DOJ-OIG”) Miami Field Office, and Michelle A. Sutphin, Special Agent in Charge of the Federal Bureau of Investigation (“FBI”) in Mississippi.
According to the indictment, Hughes, who was employed as a Federal Corrections Officer, accepted money from an individual in return for providing contraband to a federal inmate at the Yazoo City Federal Correctional Complex.
Hughes will have his initial court appearance before United States Magistrate Judge Linda R. Anderson in Jackson today at 1:00 p.m.
If convicted, Hughes faces a maximum penalty of 15 years in federal prison and a $250,000 fine.
The case was investigated by the DOJ-OIG and the FBI Jackson Division. The Federal Bureau of Prisons also assisted with the investigation. The case is being prosecuted by Assistant United States Attorney Dave Fulcher.
The public is reminded that an indictment is merely a charge and should not be considered as evidence of guilt. Every defendant is presumed innocent until proven guilty in a court of law.
Detroit Man Pleads Guilty to Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – A Detroit, Michigan man pled guilty to a drug crime, announced United States Attorney Mike Stuart. William Anthony Sparks, 32, pled guilty to possession with intent to distribute a quantity of heroin.
“Detroit drug dealers keep coming into our district, and we keep catching and prosecuting them,” said United States Attorney Mike Stuart. “To all you out of state drug dealers, I’ll give you few tips. Stay out of my district. Stop selling drugs. And stay out of prison. Pretty easy.”
Sparks admitted that on April 25, 2019, Jackson County Sheriff’s Office deputies stopped a car in which he was a passenger and recovered over 40 grams of a controlled substance he possessed with intent to distribute.
Sparks faces up to 20 years in prison when sentenced on October 13, 2020.
The Drug Enforcement Administration (DEA) and the Jackson County Sheriff’s Office conducted the investigation. Senior United States District Judge David A. Faber presided over the hearing. Former Assistant United States Attorney Drew Inman and Assistant United States Attorney Negar M. Kordestani are handling the prosecution.
Follow us on Twitter: SDWVNews and USAttyStuart
###
Defense Contractor to Pay Nearly $1 Million to the United States to Resolve Allegation of Overbilling on NSA ContractRead the Press Release
Baltimore, Maryland – iNovex Information Systems, Incorporated (“iNovex”), located in Annapolis, Maryland, has agreed to pay the United States $962,747.42 to resolve federal False Claims Act allegations that iNovex knowingly billed the National Security Agency (“NSA”), a component of the Department of Defense, for work performed by certain iNovex employees who did not meet all of the specialized qualifications required under their contract with NSA.
The civil settlement was announced by United States Attorney for the District of Maryland Robert K. Hur; Assistant Inspector for Investigations G. Shawn Tate of the NSA Office of Inspector General; and Special Agent in Charge Robert E. Craig, Jr. of the Defense Criminal Investigative Service - Mid-Atlantic Field Office.
“Defense contractors are required to bill for costs actually incurred, and to be truthful in the claims they submit to federal agencies,” said U.S. Attorney Robert K. Hur. “The U.S. Attorney’s Office and our partners are committed to protecting taxpayer dollars and ensuring integrity and compliance with federal agency standards. This agreement settles the allegations that iNovex billed the federal government for work performed by employees who did not meet the qualifications required under their contract.”
iNovex provides advanced information technology (“IT”) consulting, engineering, development, and integration services to both the public and private sectors. In March 2012, iNovex was awarded an NSA contract (“the contract”). Given the complexity of the work that was to be performed under the contract, the NSA specifically included as a term of the contract the requirement that iNovex provide personnel possessing the training, qualifications, and clearances to accomplish all tasks identified in the contract. To assure that iNovex understood the skills its employees were required to have to perform the services under the contract, NSA included an appendix to the contract that expressly referenced and attached a set of labor categories prescribing the experience, educational qualifications, and specialized certifications needed for the classes of personnel billed under the corresponding labor category, including the hourly rate that would be paid by the NSA.
According to the civil settlement agreement, the settlement resolves the allegation that between November 9, 2012 and April 14, 2016, iNovex knowingly billed the NSA, and the NSA paid, for work performed by iNovex employees who were identified by iNovex, on the invoices it presented to the NSA, as System Administrator-IV (“SA-IV”) and System Administrator-III (“SA-III”) positions, despite the fact that those employees did not timely obtain a specific certification required for payment of the rates corresponding to those two labor categories.
The claim resolved by this settlement is an allegation. The settlement is not an admission of liability by iNovex, nor a concession by the United States that its claim is not well founded.
United States Attorney Robert K. Hur commended the NSA’s Office of the Inspector General and the Defense Contract Audit Agency for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorney Tarra DeShields who handled this case.
# # #
Davenport Man Sentenced to 10 Years in Federal Prison for Gun ChargeRead the Press Release
DAVENPORT, Iowa—On July 20, 2020, United States District Court Chief Judge John A. Jarvey sentenced Isaiah Henderson, age 27, of Davenport, to 10 years in prison, the statutory maximum, after he was found guilty of felon in possession of a firearm, announced United States Attorney Marc Krickbaum. Henderson was ordered to serve a period of supervised release of three years to follow his prison terms and pay a $100 special assessment payable to the Crime Victims’ Fund. There is no parole in the federal system.
In February 2020, a jury found Henderson guilty of the charge. On October 21, 2018, a Davenport police officer observed a disturbance in the parking lot of the Kwik Shop located at Locust and Marquette Streets. A witness reported to the officer that Henderson had threatened her with a firearm. Officers immediately made contact with Henderson and subsequently located a loaded firearm, which he had attempted to hide inside of the Kwik Shop. Henderson has a history of assaults, distributing drugs, eluding, and interfering with officers. Henderson was on parole through the State of Iowa for approximately one month at the time he committed this offense.
This case is part of Project Guardian (PG) and Project Safe Neighborhoods (PSN), programs designed to bring together law enforcement and reduce gun violence to make our communities safer for everyone. This case was investigated by the Davenport Police Department and prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
DOJ settles False Claims Act allegations against drug testing lab with operations in Tacoma and DenverRead the Press Release
Seattle ‑ The U.S. Department of Justice and Sterling Healthcare Opco, LLC d/b/a/Cordant Health Solutions (Cordant), today settled a civil suit alleging Cordant illegally paid kickbacks to generate urine testing business from government insured consumers. Cordant has agreed to pay various government healthcare programs $11,942,913 to settle the allegations. Twenty percent of the settlement will go to the relator who first filed a qui tam case regarding the conduct in 2015, alerting the government to the misconduct.
According to the settlement, Cordant paid millions of dollars in remuneration to Northwest Physicians Laboratories, LLC (“NWPL”), and Genesis Marketing Group (“Genesis”) in exchange for referrals of urine drug tests paid for by federal healthcare programs in violation of the Anti-Kickback Statute and the False Claims Act. The kickbacks were paid to NWPL for claims that were filed between January 1, 2013, and July 31, 2015, and to Genesis from August 7, 2013, through March 31, 2015.
“This is the largest civil settlement in the illegal kickback scheme involving Northwest Physicians Laboratories,” said First Assistant United States Attorney Tessa G. Gorman. “The False Claims Act and Anti-Kickback Statute work together to make sure medical providers don’t cut side deals that line their pockets, but fail to provide value for taxpayers.”
The settlement specifically applies to two Cordant operated labs: Regional Toxicology Services LLC d/b/a Sterling Reference Laboratory in Tacoma and Rocky Mountain Tox LLC d/b/a Forensic Laboratories in Denver.
In December 2019, NWPL and three executives were indicted for conspiracy to pay and solicit kickbacks in their dealings with various urine testing labs. Trial in the criminal case is set for February 1, 2021.
Payments to local laboratories in exchange for referrals of government insured health care, such as Medicare and TRICARE, violates the Anti-Kickback Statute. Paying remuneration to medical providers or provider-owned laboratories in exchange for referrals encourages providers to order medically unnecessary services. The False Claims Act and the Anti-Kickback Statute function, in part, to discourage such behavior.
“The questionable business practices and unnecessary medical testing revealed in this matter only served to improve financial gain and not the patients' well-being,” said Bryan D. Denny, Special Agent in Charge of the Defense Criminal Investigative Service, Western Field Office. “This settlement outcome is but one example of DCIS's on-going commitment to working with its law enforcement partners to protect the integrity of federal healthcare programs, especially the Department of Defense's TRICARE program.”
“The government alleged that the Cordant organization paid millions of dollars to buy referrals at the expense of the nation’s taxpayers. By working with our law enforcement partners, we are able to root out kickback schemes that defraud the government,” said Steven J. Ryan, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “We will remain vigilant in guarding the integrity of our healthcare programs.”
As part of the settlement, Cordant does not admit any wrongdoing. Cordant agrees to cooperate fully in the government investigation. Cordant also entered into a Corporate Integrity Agreement (CIA) with the Office of Inspector General (OIG). The CIA promotes compliance with the statutes, regulations, program requirements, and written directives of Medicare and all other federal health care programs. Among other things, the CIA requires that for the next five years Cordant must retain an Independent Review Organization to monitor its arrangements with other individuals and entities, and it requires that Cordant routinely report to the OIG.
In addition to the U.S. Attorney’s Office, this matter was investigated by the Department of Health and Human Services Office of the Inspector General (HHS-OIG), the Defense Health Agency of the U.S. Department of Defense, and the FBI. Assistant United States Attorney Kayla Stahman negotiated the settlement for the U.S. Attorney’s Office.
Cross Lanes Man Pleads Guilty to Two Federal Drug Trafficking CrimesRead the Press Release
CHARLESTON, W.Va. – A Cross Lanes man pled guilty to two federal drug trafficking crimes, announced United States Attorney Mike Stuart. Joseph Lee Harper, 35, pled guilty to possession with the intent to distribute fentanyl and distribution of fentanyl.
“The lives of many West Virginians have been lost to fentanyl overdose,” said United States Attorney Mike Stuart. “By getting fentanyl dealers and their poisons off the street, many lives are saved and the harm done to our communities is greatly reduced.”
Harper admitted that on June 10, 2019, he sold over four grams of fentanyl to a confidential informant in return for $700. The sale occurred at the Speedway in Cross Lanes. Harper also admitted that on June 12, 2019, he had approximately 26 grams of fentanyl concealed behind an air duct in his Cross Lanes residence. Officers executing a search warrant located the fentanyl when they searched Harper’s residence. Inside Harper’s residence, officers also located the United States currency tied to the earlier controlled drug sale conducted by Harper.
Harper faces up to 20 years in prison when sentenced on October 13, 2020.
The Metropolitan Drug Enforcement Network Team (MDENT) conducted the investigation. Senior United States District Judge David A. Faber presided over the hearing. Assistant United States Attorney Kristin F. Scott is handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:19-cr-00300.
Follow us on Twitter: SDWVNews and USAttyStuart
###
Council Bluffs Man Sentenced to Prison for Possession of Child PornographyRead the Press Release
COUNCIL BLUFFS, Iowa - United States Attorney Marc Krickbaum announced on Wednesday, July 15, 2020, Tate Pilger, age 19, of Council Bluffs was sentenced by United States District Court Judge Rebecca Goodgame Ebinger to 84 months in prison for possession of child pornography. Pilger was ordered to pay $1,500 in restitution and $100 special assessment to the Crime Victims’ Fund. Pilger will serve ten years of supervised release at the conclusion of his prison term.
The charges were the result of an investigation initiated by Facebook who submitted information to the National Center for Missing and Exploited Children that a user of their service uploaded suspected images of child pornography via Facebook Messenger. This cyber tip was forwarded to the Iowa Internet Crimes Against Children Task Force and local law enforcement who executed two search warrants at Council Bluffs homes linked to Pilger. Law enforcement located a computer, cell phones, and flash drives which were taken as evidence and analyzed. The forensic analysis revealed Pilger possessed numerous images and videos of child pornography.
This investigation was conducted by the Council Bluffs Police Department and prosecuted by the United States Attorney’s Office for the Southern District of Iowa.