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Friday 10 July 2020
Meriden Man Indicted on Narcotics and Firearms OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that a federal grand jury in New Haven has returned an indictment charging JONATHAN RIVERS, 38, of Meriden, with narcotics distribution and firearm possession offenses.
As alleged in court documents and statements made in court, on February 26, 2020, Meriden Police arrested Rivers after a search of a disabled vehicle on his property revealed more than 500 grams of cocaine, more than 28 grams of crack cocaine, more than 40 grams of fentanyl, a Highpoint Model HCP .40 caliber handgun, a Smith and Wesson Model 629-1 44 Magnum Revolver, a Romanian Model TTC 9mm handgun, and 18 rounds of .40 caliber ammunition. A quantity of crack cocaine was also found in a vehicle Rivers had driven earlier that day.
It is further alleged that Rivers’ criminal history includes state convictions for robbery, kidnapping and drug offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
The indictment, which was returned on July 8 and unsealed today following Rivers’ federal arrest, charges Rivers with two counts of possession with intent to distribute controlled substances, one count of possession of firearms by a convicted felon, and one count of possession of ammunition by a convicted felon. The most serious drug possession charge carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years, and the firearm offenses carry a maximum term of imprisonment of 10 years on each count.
Rivers appeared today before U.S. Magistrate Judge Sarah A. L. Merriam in New Haven and was released on a $250,000 bond with a condition that he be confined to his home.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Meriden Police Department. The case is being prosecuted by Assistant U.S. Attorneys Margaret Donovan, Pilar Gonzalez and Konstantin Lantsman.
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 neighborhoods safer for everyone.
Member of Navajo Nation charged with murder in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Blaine Morgan, 35, of Crownpoint, New Mexico, and an enrolled member of the Navajo Nation, appeared in federal court on July 9 for an arraignment on an indictment charging him with second-degree murder in Indian Country.
According to the indictment and other court records, Morgan attended a small gathering on Mar. 29 in a trailer within the boundaries of the Navajo Nation in Church Rock, New Mexico. Morgan began to argue with the victim and opted to “to take it outside” where where Morgan fought with the victim and stabbed the victim several times. The victim was later pronounced dead at Gallup Indian Medical Center.
The FBI arrested Morgan on July 6. He is in custody pending a detention hearing scheduled for July 13. Morgan faces up to life in prison if convicted.
Indictments are only allegations. A defendant is presumed innocent unless and until proven guilty.
The Gallup office of the FBI investigated this case with assistance from the Navajo Nation Police Department. Assistant U.S. Attorney Jennifer M. Rozzoni is prosecuting the case.
Member of the CBL/BFL Sentenced in RICO Conspiracy and Violent AssaultRead 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 Michael Walker, 29, of Buffalo, NY, who was convicted of racketeering conspiracy and assault with a dangerous weapon in aid of racketeering, was sentenced to 120 months imprisonment by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Paul C. Parisi, who is handling the case, stated that the defendant was a member of the CBL/BFL Gang, which stands for, among other things, “Cash Been Long” and “Brothers for Life.” The gang, which was involved in the illegal possession and distribution of narcotics, was formed around 2009 and operated primarily in the City of Buffalo at the Towne Gardens Housing Complex. The Towne Gardens served as a central hub for the gang with many members living within the housing complex, and many housing units used to store firearms and narcotics. Parking lots and business fronts adjacent to the Towne Gardens were utilized by members of the gang to distribute street level quantities of narcotics, including heroin, fentanyl, cocaine, crack cocaine, marijuana, and other drugs. The gang used violence, including murder and attempted murder, threats, and intimidation to defend their territory against rivals and anyone deemed to be a threat to the gang.
As part of his plea, defendant Walker admitted to the following:
• On June 19, 2019, the defendant was on Genesee Street, Cheektowaga, New York with co-defendant Kareem Pryor where they met up with Victim 1. The defendant accused Victim 1 of killing a CBL/BFL member and also of cooperating with law enforcement in the investigation of CBL/BFL. The defendant and co-defendant Pryor then both began punching Victim 1. The assault carried into the street and Victim 1 was forced to the ground where the defendant and co-defendant Pryor used their feet with shoes on them to stomp Victim 1’s upper body and head onto the pavement. The defendant and co-defendant Pryor then ran away. Victim 1 was treated at a hospital for a fractured shoulder bone and a concussion.
• On February 1, 2017, the defendant possessed over 600 grams of a mixture of butyryl fentanyl and three firearms.
• In March 2017, the defendant signed a false affidavit related to the possession of the drugs and guns from February 1, 2017.
• On May 13, 2013, the defendant was found in possession of 2.84 grams of cocaine base and marijuana.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia; the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; the New York State Police, under the direction of Major James Hall; the Erie County Sheriff’s Department, under the direction of Sheriff Timothy Howard; the Cheektowaga Police Department, under the direction of Chief Michael Sliwinski; Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; the Bureau of Alcohol Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division; the Lackawanna Police Department, under the direction of Acting Chief Mark Packard; and the Erie Crime Analysis Center. Additional assistance was provided by the Erie County District Attorney’s Office, under the direction of District Attorney John Flynn.
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Marijuana User Sentenced to Federal Prison for Possessing a FirearmRead the Press Release
A Cedar Rapids drug user who unlawfully possessed a loaded gun was sentenced today to one year in prison.
Malik Cain Richardson, Sr., age 24, from Cedar Rapids, Iowa, received the prison sentence after a January 24, 2020 guilty plea to possession of a firearm by a drug user.
Information disclosed at sentencing and in his plea agreement showed that on February 27, 2020, Richardson was pulled over by Cedar Rapids police officers. During the stop, Richardson admitted he had a firearm and gave it to police. Officers also discovered that Richardson’s front seat passenger had approximately 15 grams of marijuana hidden in her pants. The passenger told officers that Richardson handed it to her as they were getting pulled over. Richardson admitted that he had been a marijuana user since he was 13 or 14 years old. Officers located multiple photos and text messages on Richardson’s phone which show that Richardson also sold marijuana. In July 2019, officers searched Richardson’s home and located marijuana, items consistent with marijuana distribution, and a loaded firearm.
Richardson was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Richardson was sentenced to 12 months’ imprisonment. He was ordered to make payment of $100 to the special assessment fund. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorney Ashley Corkery and investigated by the Cedar Rapids Police Department, the Federal Bureau of Investigations, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted this case with support from its Project Guardian partners. For more information about Project Guardian, please see /media/1122011/dl?inline.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-89.
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Man pleads guilty to attempted sexual enticement of a 13-year-old girlRead the Press Release
HONOLULU, Hawaii – Zachariah Fredrickson, 32, of Kapolei, Hawaii, pleaded guilty today in federal court to one count of attempting to entice a minor to engage in unlawful sexual activity. He entered his plea pursuant to a binding Plea Agreement with the government, in which the parties jointly recommended a sentence to include 10 years in prison. Sentencing is scheduled for October 29, 2020, before U.S. District Judge Helen Gillmor.
U.S. Attorney Kenji M. Price for the District of Hawaii stated that according to court documents and information presented in court, on March 25, 2019, Fredrickson engaged in a series of online chats with an undercover agent posing as a 13-year-old girl. During their conversations, Fredrickson arranged to meet the girl in person with the intent to engage in sexual activity. Fredrickson then traveled to the agreed-upon location, and was later arrested.
“This investigation is yet another step forward in our journey to protect our children from those who seek to do them harm. My office will continue its quest to bring justice to those who attempt to sexually exploit our children,” stated U.S. Attorney Price.
"We must protect the children of Hawaii and our Nation. The FBI is committed to identify sexual predators and bring them to justice,” stated FBI Special Agent in Charge Eli S. Miranda.
The case was investigated by the FBI and the Hawaii Internet Crimes Against Children Task Force (ICAC), and it was prosecuted by Assistant U.S. Attorney Morgan Early.
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 U.S. Attorney’s 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.justice.gov/psc.
Man from Anaheim, California sentenced to 30 months in federal prison for ATM fraud schemeRead the Press Release
ALBUQUERQUE, N.M. – Ion Antonescu, 36, of Anaheim, California and Ramona Ghiocel, 37, of Bueno Park, California were sentenced in federal court in Albuquerque on July 9 for access device fraud offenses. Antonescu received a sentence of 30 months in prison and Ghiocel received a sentence of 24 months in prison.
Antonescu pleaded guilty to access device fraud on Jan. 13. Ghiocel pleaded guilty to conspiracy to commit access device fraud on the same date. According to their plea agreements and other public court records, Antonescu and Ghiocel participated in a conspiracy to commit access device fraud in New Mexico during a period of time including November 2018 to March 2019. They knew other members of the conspiracy installed skimming device on ATMs to steal credit and debit card information, created counterfeit access devices and used counterfeit and unauthorized access devices to obtain money. Antonescu provided transportation, lodging and other logistical support in furtherance of the conspiracy. Ghiocel rented an automobile using an alias and provided it to co-conspirators. Antonescu and Ghiocel also made false statements to federal agents to conceal and avoid responsibility for their crimes. The conspiracy involved theft of more than $170,000.
The FBI investigated this case. Assistant U.S. Attorney Paul Schied prosecuted the case
Individual Sentenced for Drug Trafficking at Villa Envangelina Public Housing Project in ManatíRead the Press Release
SAN JUAN, Puerto Rico – Today, U.S. District Court Judge Raúl M. Arias-Marxuach sentenced Juan Laureano-Miranda, a.k.a. “Juanchy” to 78 months imprisonment and 72 months of supervised release for his involvement in a drug trafficking conspiracy, announced United States Attorney W. Stephen Muldrow. Immigration and Customs Enforcement Homeland Security Investigations was in charge of the investigation, with the collaboration of and the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, the Puerto Rico Police Department, Arecibo Strike Force, and the Puerto Rico Bureau of Special Investigations.
On July 17, 2019, a federal grand jury in the District of Puerto Rico returned an indictment against 14 defendants for firearms and drug trafficking violations. Eleven other defendants already pleaded guilty and are awaiting sentencing, while two other defendants are pending trial.
On January 24, 2020, Laureano-Miranda had pled guilty to possessing firearms in furtherance of a drug trafficking crime and possessing with the intent to distribute crack cocaine. As noted above, the charged drug conspiracy included 14 defendants, who all possessed multiple firearms, in furtherance of the distribution of heroin, crack cocaine, cocaine, and marihuana at the Villa Evangelina Public Housing Project in Manatí, Puerto Rico. During their investigation, Homeland Security Investigations obtained surveillance video of the 14 defendants openly carrying multiple types of firearms, including high-capacity rifles and pistols, to take control over the public housing project and distribute narcotics in front of children and families. Assistant U.S. Attorney David T. Henek was in charge of the prosecution of the case and was assisted by Assistant U.S. Attorney Richard T. Passanisi.
This case is part of Project Safe Neighborhoods (PSN), a federal program designed to bring together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The PSN program was reinvigorated in 2017, as part of the Department’s renewed focus on targeting each community’s most violent criminals. All U.S. Attorney’s Offices work in partnership with federal, state, and local law enforcement, as well as the local civilian community, to develop effective, targeted strategies to reduce violent crime. This case is a product of that collaborative effort.
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IRS Criminal Investigation and the United States Attorney’s Office Remind Taxpayers of Upcoming Tax Filing Deadline; Urge Taxpayers to Remain Vigilant of ScamsRead the Press Release
The Internal Revenue Service Criminal Investigation division and the U.S. Attorney’s Office for the Northern District of Oklahoma today reminded taxpayers of the July 15 filing and payment deadline and warned against an increase in tax and COVID-19 scams.
Due to COVID-19, the original filing deadline and tax payment due date for 2019 was postponed from April 15 to July 15. Taxpayers filing Form 1040 series returns must file Form 4868 by July 15 to obtain the automatic extension to Oct. 15.
“Although the extension provides additional time to file the tax return – it is not an extension to pay any taxes due”, said Tamera Cantu, Special Agent in Charge of IRS-CI’s Dallas Field Office. “For people facing hardships who cannot pay in full, including those affected by COVID-19, the IRS has several options available to help. The IRS encourages taxpayers to visit IRS.gov as soon as possible to explore these options and avoid accruing interest and penalties after the July 15 deadline.”
As the filing deadline approaches, taxpayers should also beware of tax and COVID-19 related scams.
“With the impending personal income tax filing deadline, Oklahomans should be vigilant of fraudsters seeking to exploit unsuspecting, law abiding citizens,” said U.S. Attorney Trent Shores for the Northern District of Oklahoma. “The IRS will not initiate contact with taxpayers via phone, email, or social media to request personal or financial information.”
Taxpayers can report COVID-19 scams to the National Center for Disaster Fraud. Taxpayers can also report fraud or theft of their Economic Impact Payments to the Treasury Inspector General for Tax Administration (TIGTA). Unsolicited (phishing) e-mails that appear to be from the IRS should be forwarded to [email protected].
For the most up-to-date information about the tax filing deadline and IRS impersonation scams, taxpayers can visit IRS.gov.
IRS Criminal Investigation and United States Attorney Remind Taxpayers of Upcoming Tax Filing Deadline; Urge Taxpayers to Remain Vigilant of ScamsRead the Press Release
Contact: Special Agent Matthew Amsden
Public Information Officer
IRS Criminal Investigation
60 Quaker Lane, 4th Floor, Suite 68
Warwick, RI 02886
(401) 826-4726
NEW HAMPSHIRE — The Internal Revenue Service Criminal Investigation division and the U.S. Attorney’s Office for the District of New Hampshire reminded taxpayers of the July 15 filing and payment deadline and warned against an increase in tax and COVID-19 scams.
Due to COVID-19, the original filing deadline and tax payment due date for 2019 was postponed from April 15 to July 15. Taxpayers filing Form 1040 series returns must file Form 4868 by July 15 to obtain the automatic extension to Oct. 15.
“Although the extension provides additional time to file the tax return – it is not an extension to pay any taxes due”, said Kristina O’Connell, Special Agent in Charge of the IRS Criminal Investigation division in New England. “For people facing hardships who cannot pay in full, including those affected by COVID-19, the IRS has several options available to help. The IRS encourages taxpayers to visit IRS.gov as soon as possible to explore these options and avoid accruing interest and penalties after the July 15 deadline.”
As the filing deadline approaches, taxpayers should beware of tax and COVID-19 related scams. “Criminals use the tax filing deadline as an opportunity to steal personal and financial information”, said U.S. Attorney Scott W. Murray for the District of New Hampshire. “Taxpayers should remain vigilant and know that the IRS will not initiate contact with them via phone, email or social media to request personal or financial information.”
In the last few months, the IRS Criminal Investigation division (CI) has continued to see a tremendous increase in a variety of Economic Impact Payment scams and other financial schemes. CI continues to work with its law enforcement partners to put a stop to these schemes and bring criminals to justice.
Taxpayers can report COVID-19 scams to the National Center for Disaster Fraud. Taxpayers can also report fraud or theft of their Economic Impact Payments to the Treasury Inspector General for Tax Administration (TIGTA). Unsolicited (phishing) e-mails that appear to be from the IRS should be forwarded to [email protected].
For the most up-to-date information about the tax filing deadline and IRS impersonation scams, taxpayers can visit IRS.gov.
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Hartford Man Admits Selling Fentanyl and CrackRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that JOSHUA JENKINS, 27, of Hartford, pleaded guilty yesterday before U.S. District Jeffrey A. Meyer to distributing fentanyl and crack cocaine.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the court proceeding occurred via videoconference.
According to court documents and statements made in court, in July 2019, after a spate of gun violence in Hartford, the FBI’s Northern Connecticut Gang Task Force, DEA, Hartford Police Department and other law enforcement agencies initiated an investigation targeting gang-related drug distribution and associated violence in north Hartford. Between July and September 2019, investigators made three controlled purchases of fentanyl, followed by three controlled purchases of fentanyl and crack, from Jenkins.
Jenkins was arrested on September 13, 2019.
Jenkins pleaded guilty to one count of possession with intent to distribute, and distribution of fentanyl and cocaine base (“crack”), an offense that carries a maximum term of imprisonment of 20 years. Judge Meyer scheduled sentencing for October 2, 2020.
Jenkins is released on a $100,000 bond pending sentencing.
The FBI’s Northern Connecticut Gang Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.
This case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone.
Hammond Man Sentenced to 51 Months in PrisonRead the Press Release
HAMMOND- Isaiah Chase, 29, of Hammond, Indiana, was sentenced before District Court Judge James T. Moody following his plea of guilty to possession of a firearm as a felon. Chase also admitted to violations of his federal supervised release, announced U.S. Attorney Thomas L. Kirsch II.
Chase received a sentence of 51 months in prison for possession of a firearm to be followed by 2 years of supervised release.
According to documents filed in this case, on July 5, 2018, the Lake County Police Department performed a traffic stop on Chase’s vehicle in Gary, Indiana for excessive speeding and reckless lane changes. Following Chase’s arrest, officers searched the car before impounding it and found a Taurus pistol hidden between the center console and the passenger seat. Chase’s possession of this firearm also violated of the terms of his federal supervised release for a 2011 felony conviction for using a firearm in furtherance of a crime of violence and a drug trafficking crime.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the Lake County Police Department and was prosecuted by Assistant United States Attorney Thomas M. McGrath.
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Greenbrier County Man Pleads Guilty to Attempted Sex Trafficking of a MinorRead the Press Release
BECKLEY, W.Va. – A Rainelle man pled guilty today to a sex offense involving a minor, announced United States Attorney Mike Stuart. Michael Darnell Ramsey, 47, pled guilty to attempted sex trafficking of a minor.
“These are heinous crimes,” said United States Attorney Mike Stuart. “We are working closely with our law enforcement partners to hold offenders accountable and bring justice to victims. If you are preying on West Virginia’s most vulnerable – we’re coming for you.”
Ramsey admitted that he was communicating via Snapchat with a person he believed to be a 14-year-old minor that he had previously met in person. During these conversations, Ramsey offered to pay the 14-year-old $200 to engage in two sexual acts. On April 3, 2020, Ramsey traveled to a meeting location in Greenbrier County to meet the minor to engage in the commercial sex acts, at which time he was placed under arrest.
Ramsey faces at least 10 years and up to life in prison when sentenced on October 23, 2020. He also will be required to register as a sex offender following his release from prison.
The West Virginia State Police, the Greenbrier County Sheriff’s Department and the Federal Bureau of Investigation’s West Virginia Child Exploitation and Human Trafficking Task Force conducted the investigation. United States District Judge Frank W. Volk presided over the hearing. Assistant United States Attorney Jennifer Rada Herrald is handling the prosecution.
The case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Four East Central Illinois Men Charged with Trafficking Child PornographyRead the Press Release
Springfield, Ill. – A federal grand jury this week returned indictments that charge four men, in separate, unrelated cases with trafficking child pornography. The defendants include two registered sex offenders from Decatur and two men from Rantoul, Ill.:
- Christopher L. Bailey, 39, of the 500 block of Center St., Decatur, Ill., a registered sex offender, is charged with distribution (two counts) and possession (one count) of child pornography.
- Tyler D. Jeffrey, 27, of the 2100 block of Roosevelt Ave., Decatur, Ill., a registered sex offender, is charged with one count of transportation of child pornography.
- William K. Armstrong, 25, of the 1100 block of Falcon Dr., Rantoul, Ill. Armstrong, charged with one count each of transportation and possession of child pornography, was previously arrested and charged on June 12, 2020, by criminal complaint. The complaint alleges that Armstrong possessed approximately 30 video files of minors, including toddler-aged children and prepubescent minors, engaged in sexual activity with others.
- Dwayne White, 55, of the 1300 block of Briarcliffe Dr., Rantoul, Ill. White, indicted on two counts of distribution and one count of possession of child pornography, was arrested and charged in a criminal complaint on June 19, 2020. The complaint alleged that White possessed images of prepubescent minors, aged seven to 10-years old.
The defendants remain in the custody of the U.S. Marshals Service at this time. Bailey and Jeffrey were both initially charged by the Macon County State’s Attorney, and made their respective initial appearances on July 9, before U.S. Magistrate Eric I. Long. Judge Long scheduled detention hearings for Bailey and Jeffrey on July 13. Initial trial dates were scheduled for Bailey and Jeffrey on Sept. 8, 2020, before Senior U.S. District Judge Michael M. Mihm. Armstrong and White are scheduled for arraignment on July 22, 2020, before Magistrate Judge Long.
Assistant U.S. Attorney Elly M. Peirson is representing the government in the case prosecutions. The charges result from investigations by U.S. Immigration and Customs Enforcement Homeland Security Investigations, the Decatur Police Department; Urbana Police Department; Champaign County Sheriff’s Office; and, the Illinois Internet Crimes Against Children Task Force.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
If convicted, the statutory penalty for transportation / distribution of child pornography is five to 20 years in prison. For possession of child pornography, the penalty is up to 10 years in prison.
The cases were brought as part of Project Safe Childhood, a nationwide initiative to combat child sexual exploitation and abuse launched in May 2006 by the Department of Justice. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Former employee of medical packaging company pleads guilty to disrupting PPE shipments by damaging a computerRead the Press Release
ATLANTA - Christopher Dobbins has pleaded guilty to the charge of reckless damage to a protected computer for deleting and modifying his former employer’s electronic shipping and other business records. Dobbins’s former employer is a medical packaging company that ships, among other things, personal protective equipment (“PPE”) to healthcare providers. Dobbins’s conduct delayed the shipment of PPE during the COVID-19 pandemic.
“Preventing scarce medical supplies from being delivered to healthcare workers and hospitals that need them is illegal,” said U.S. Attorney Byung J. “BJay” Pak. “Thanks to the cooperation of the victim company and the hard work of our law enforcement partners, we were able to bring this investigation to a swift conclusion and obtain a conviction for this egregious act.”
“Thanks to the quick reaction of the medical packaging company in contacting the FBI, we were able to react quickly and arrest this disgruntled employee,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “During this world wide epidemic it is imperative that we make sure crucial medical supplies are not disrupted or diverted from the front lines of medical care.”
According to U.S. Attorney Pak, the charges and other information presented in court: In early March 2020, Dobbins was terminated from his employment at a medical device packaging company. While employed at the company, Dobbins had administrator access to the computer systems containing the company’s shipping information. When his employment was terminated, he also lost his access to the company’s computer systems.
On March 26, Dobbins received his final paycheck from the company. Three days later, on March 29, 2020, he used a fake user account that he had previously created while still employed at the company to log into the company’s computer systems. He then conducted a computer intrusion that disrupted and delayed the medical device packaging company’s shipments of PPEs.
While logged in through the fake user account, Dobbins created a second fake user account and then used that second account to edit approximately 115,581 records and delete approximately 2,371 records. After taking these actions, Dobbins deactivated both fake user accounts and logged out of the system. The edits and deletions to the company’s records disrupted the company’s shipping processes, causing delays in the delivery of much-needed PPEs to healthcare providers.
Sentencing for Christopher Dobbins, 40, of Duluth, Georgia, is scheduled for October 16, 2020, at 10:00 a.m., before Chief U.S. District Judge Thomas W. Thrash.
The Federal Bureau of Investigation is investigating this case.
Assistant U.S. Attorney Samir Kaushal is prosecuting the case.
This case is part of Georgia’s Coronavirus (COVID-19) Fraud Task Force, aimed at better protecting the citizens of Georgia from criminal fraud arising from the pandemic. Formed by Georgia’s leading state and federal prosecutors, the task force serves to open channels of communication between partner agencies and more rapidly share information about COVID-19 fraud, while ensuring each fraud complaint is reported to the appropriate prosecuting agency. The task force member agencies include the Office of the Governor of Georgia, the Office of the Attorney General of Georgia, the U.S. Attorney’s Office for the Northern District of Georgia, the U.S. Attorney’s Office for the Middle District of Georgia and the U.S. Attorney’s Office for the Southern District of Georgia. Georgia’s three U.S. Attorneys, the Attorney General of Georgia, and the Executive Counsel for the Governor’s Office serve on the task force. If you think you are a victim of a scam or attempted fraud involving COVID-19, contact the National Center for Disaster Fraud Hotline at 866-720-5721 or via email at www.justice.gov/DisasterComplaintForm.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former Navy Depot Supervisor Indicted for Abusive Sexual Contact and Physical AssaultRead the Press Release
HARRISBURG - The U.S. Attorney’s Office for the Middle District of Pennsylvania announced that Jared Bishop Heisey, age 30, of Etters, Pennsylvania, was indicted on July 1, 2020, for abusive sexual contact without consent and simple assault.
According to United States Attorney David J. Freed, the indictment alleges that Heisey, former supervisor at the Distribution Defense Logistics Agency on Naval Services Activity in Mechanicsburg, engaged in unwanted sexual contact in July, August, and November 2019, of an employee of the United States Government while she was engaged in the performance of her official duties.
The case was investigated by Naval Criminal Investigative Services and is being prosecuted by Assistant U.S. Attorney Jaime Keating.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for each Sexual Abuse charge is two years of imprisonment, a term of supervised release following imprisonment, and a fine. The maximum penalty under federal law the Simple Assault charge is one year of imprisonment and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant
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Former NFL Player Pleads Guilty to Fraud Involving WMATARead the Press Release
ALEXANDRIA, Va. – A former National Football League (NFL) player pleaded guilty today to orchestrating a conspiracy to defraud the Washington Metropolitan Area Transit Authority (WMATA) of over $300,000.
Brian Carpenter, 59, of Centreville, played for the Washington Redskins, New York Giants, and Buffalo Bills in the early 1980s. According to court documents, Carpenter was the owner and operator of a Leesburg company called the Flintstone Group which facilitated the sale and distribution of janitorial products, including products that were specifically labeled and created from his time in the NFL, including an enzyme solvent named “Blitz” and degreaser citrus solvent called “DG-28.”
Carpenter established a relationship with at least two employees of WMATA who were assigned WMATA-issued credit cards as part of their roles as assistant superintendents for WMATA’s maintenance and custodial services division. Carpenter devised a scheme whereby the WMATA employees permitted him to charge their credit cards for supplies that were never in fact delivered. In these instances, Carpenter would retain a substantial portion of the amount charged from the sales for his own personal benefit and the employees received cash payments in exchange for permitting Carpenter to charge their cards. To make it appear that Carpenter ran a wholly legitimate business and to circumvent WMATA’s internal credit card controls, he used at least 10 different companies to process transactions from the credit cards, most of whom were not in the janitorial supply business and had never met the WMATA employees whose cards they charged. Carpenter then provided the WMATA employees with fake and fraudulent invoices representing that WMATA paid for and received all of the products it ordered.
When WMATA-Office of Inspector General began investigating the case, Carpenter provided investigators with altered invoices to make it appear that he had ordered or substituted all of the products that were charged to WMATA. In total, WMATA spent at least $310,000 on products that were never delivered.
Carpenter pleaded guilty to conspiracy to commit wire fraud and faces a maximum penalty of 20 years in prison when sentenced on December 15. 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.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; James A. Dawson, Special Agent in Charge, Criminal Division, FBI Washington Field Office; and Geoffrey Cherrington, Inspector General for the Washington Metropolitan Area Transit Authority, made the announcement after Senior U.S. District Judge Liam O’Grady accepted the plea. Assistant U.S. Attorneys Jamar K. Walker and Heidi B. Gesch are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-362.
Former MS-13 Gang Leader in Queens Indicted for Murder in-Aid-of RacketeeringRead the Press Release
An indictment was unsealed today in federal court in Brooklyn charging Marcelo Esquivel with murder in-aid-of racketeering and causing death through the use of a firearm in connection with the fatal shooting of Daniel Licona-Gonzalez on July 2, 2012. At the time of the murder, Esquivel was the leader of the Centrales Locos Salvatruchas clique of La Mara Salvatrucha, also known as the MS-13, a transnational criminal organization, in Jamaica, Queens. Esquivel was arrested yesterday and will be arraigned this afternoon via teleconference before United States Magistrate Judge Roanne L. Mann.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), Peter C. Fitzhugh, Special Agent-in-Charge, Homeland Security Investigations, New York Field Office (HSI), and Dermot F. Shea, Commissioner, New York City Police Department (NYPD), announced the charges.
“As alleged, Esquivel ordered the murder of another human being in furtherance of the vicious code of the MS-13 gang, and the life of an 18-year-old man was ended by co-conspirators carrying out the defendant’s death wish,” stated United States Attorney Donoghue. “The Eastern District will continue to do everything possible to crush the MS-13 and Esquivel’s arrest sends a powerful message that the passage of time will not deter this Office and our law enforcement partners from investigating, prosecuting and holding accountable anyone who commits violent crimes on behalf of the gang.”
“A man standing in the street was shot in the head, and later died because two members of MS-13 sought out a twisted type of gravitas in their violent gang,” stated FBI Assistant Director-in-Charge Sweeney. “The men rode a bicycle to carry out their orders allegedly given by Mr. Esquivel, an oddly childlike behavior with deadly consequences. Our FBI New York Metro Safe Streets Task Force is determined to pursue the leaders of this despicable gang, regardless of how much time has passed since their crimes took place.”
“As an MS-13 gang leader, Esquivel allegedly used his authority to order a hit on a rival gang member. Using the gun allegedly provided by Esquivel, two MS-13 gang members took the life of another human being,” stated HSI Special Agent-in-Charge Fitzhugh. “A human life is a human life, regardless of gang affiliation, and gang on gang violence will not be tolerated. HSI will continue to collaborate with the FBI and NYPD to take murderers off the street and try to bring some solace to the victims’ families.”
“Our NYPD investigators, with our state and federal partners, as shown in this case will relentlessly seek justice against gangs no matter when or where their brutal violence is carried out,” stated NYPD Commissioner Shea.
As set forth in court filings, on July 2, 2012, Esquivel directed two MS-13 members to murder a member of the rival Latin Kings gang and provided them with a gun. Coconspirator-1 was a new member of the gang and hoped to earn respect within the gang by carrying out an act of violence. Coconspirator-1 and Coconspirator-2 then set out on a bicycle to find a Latin King to murder. Coconspirator-2 rode the bicycle and Coconspirator-1 stood on the bicycle’s back pegs. They went to a location that they understood was Latin Kings’ territory to find their target. In the vicinity of Lowe Court and 149th Street in Jamaica, they saw a group of men that they believed were Latin Kings. One of the Coconspirators yelled, “La Mara,” a reference to his gang, and shot Licona-Gonzalez in the head. The victim died the following day.
Today’s charges are the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of the MS-13. The MS-13’s leadership is based in El Salvador and Honduras, but the gang has thousands of members across the United States, comprised primarily of immigrants from Central America. Since 2003, hundreds of MS-13 members, including dozens of clique leaders, have been convicted on federal felony charges in the Eastern District of New York. A majority of those MS-13 members have been convicted on federal racketeering charges for participating in murders, attempted murders and assaults. Since 2010, this Office has obtained indictments charging MS-13 members with carrying out more than 45 murders in the district and has convicted dozens of MS-13 leaders and members in connection with those murders. These prosecutions are the product of investigations led by our law enforcement partners.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
If convicted, Esquivel faces a mandatory sentence of life imprisonment and is eligible for the death penalty.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorney Nadia E. Moore is in charge of the prosecution.
The Defendant:
MARCELO ESQUIVEL (also known as “Profugo” and “Baby”)
Age: 31
Jamaica, New YorkE.D.N.Y. Docket No.: 20-CR-250 (MJB)
Former Department of Defense Contracting Officer and Maryland Woman Charged with Defrauding GovernmentRead the Press Release
BOSTON – An Uxbridge man and Maryland woman were charged with conspiring to defraud the government of thousands of dollars from 2014 to 2018.
Thomas Bouchard, 57, of Uxbridge, Mass., was arrested yesterday, and Chantelle Boyd, 50, of Woodsboro, Md., was arrested on Monday, July 6, 2020, and charged with one count of conspiracy and 10 counts of theft of government funds. Boyd was also charged with false declarations before the grand jury.
As alleged in the indictment, Bouchard was the Contracting Officer in charge of the U.S. Army Natick Contracting Division, a full service contracting organization for the Department of Defense. In 2014, Bouchard allegedly used his long-standing relationship with Evolution Enterprise, Inc., a government contractor, to have Boyd hired for a “no show” job as an assistant that specifically supported Bouchard. Boyd’s position cost the Department of Defense more than $490,000 during her time at Evolution from 2014 to 2018, during which she performed little if any useful function.
The indictment alleges that Bouchard and Boyd took numerous government-funded trips, ranging in duration from two to 15 days, under the guise that they were work related. This included 31 trips to Orlando, Fla., among other locations such as Clearwater Beach, Fla., and Stafford, Va., during which Boyd performed little if any work. For many of the trips, Bouchard and Boyd stayed in the same hotel room and spent time at the pool and Disney parks – all during business hours. It is alleged that in order to conceal the personal nature of the trips, Bouchard altered and created false travel expenses for Boyd, which Bouchard approved to reimburse Boyd for out-of-pocket expenses.
In addition, Boyd is charged with making false statements to the grand jury in May 2018 in relation to these trips.
The conspiracy charge provides a sentence of up to five years in prison, three years of supervised release and a fine of 250,000. Each charge of theft of government funds provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. The charge of lying to a grand jury provides a sentence of up to five years in prison, three years of supervised release and a fine of 250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Luis A. Hernandez, Special Agent in Charge of the General Services Administration Office of Inspector General; Leigh-Alistair Barzey, Special Agent in Charge of the Defense Criminal Investigative Service; and Michael Connor, Resident Agent in Charge of the Army Criminal Investigations Command, Major Procurement Fraud Unit made the announcement. Assistant U.S. Attorney Evan Gotlob of Lelling’s Criminal Division is prosecuting the case.
The details contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Custom Carbon Processing official sentenced to prison, fined for violating Clean Air Act for actions leading to explosion of Wibaux oil processing plantRead the Press Release
BILLINGS – The former president of Custom Carbon Processing, Inc. was sentenced today to 18 months in prison, three years of supervised release and fined $50,000 for his actions related to an explosion that injured three workers at the company’s oil processing plant in Wibaux, U.S. Attorney Kurt Alme said.
A jury in September found Peter Margiotta, 63, of Edmonton, Alberta, Canada, guilty of all three counts in an indictment, including conspiracy, Clean Air Act—general duty and Clean Air Act-knowing endangerment.
U.S. District Judge Susan P. Watters presided. Judge Watters took restitution under advisement and will issue a ruling later. Margiotta was released pending assignment to a federal prison.
“By failing to comply with the law in the construction and operation of a plant that handled hazardous materials, Mr. Margiotta endangered his employees, three of whom were injured in the explosion. Companies doing business in Montana must follow environmental regulations," U.S. Attorney Alme said.
“By knowingly operating an oil processing facility without appropriate safeguards, the defendant endangered workers and the public,” said Bert Marsden, Resident Agent in Charge of the Environmental Protection Agency’s criminal enforcement program. “Today’s sentencing reflects the egregious nature of the defendant’s actions.”
“Employees expect that their employers prioritize their safety by ensuring adherence to Federal safety regulations. In hazardous material transportation and processing, this expectation is paramount,” stated Cissy McCune, Regional Special Agent-in-Charge, U.S. Department of Transportation Office of Inspector General. “Our work with the U.S. Attorney’s Office and agents from the U.S. Environmental Protection Agency, which resulted in the sentencing of Mr. Margiotta, is a testament to our commitment to protecting the safety of our nation’s transportation workforce.”
“The hard work and dedication of our federal partners to bring justice for victims and hold Mr. Margiotta accountable for his unacceptable actions is to be commended,” said Rita Lucero, Acting Regional Administrator for OSHA’s Denver Region. “OSHA will continue to collaborate with federal agencies to hold employers accountable if they violate federal workplace safety and health laws that place their employees at risk of serious physical harm and death.”
During a five-day jury trial, the prosecution presented the following evidence:
Margiotta was president and CEO of Custom Carbon Processing, a Wyoming company that constructed the Michels Disposal Well and Oil Reclamation Facility in Wibaux in 2012. The construction was done in ways that allowed extremely hazardous hydrocarbon vapors and air pollutants to be released into the air.
On July 4, 2012, Margiotta directed the opening of the plant before implementing appropriate electrical wiring, ventilation and other safety measures. On that date, the project manager emailed Margiotta: “The control panels must be moved asap with the explosion proof wiring. We also run the risk of killing someone, not only our operators but also customers.”
Margiotta also directed employees to accept shipments of highly volatile and flammable “natural gas condensate” or “drip gas” into the operations in a purported effort to help thin and process the slop oil at the plant.
Margiotta disregarded repeated warnings from the plant’s foreman that the natural gas condensate was not effective in thinning the slop oil and instead was creating a dangerous situation because of its highly volatile and flammable nature.
On Dec. 29, 2012, the plant accepted a delivery of natural gas condensate. During the offloading of the material, hazardous and flammable vapors from the condensate filled the plant building and spread out the open bay doors where the truck delivering the condensate was located. The vapors reached an ignition source, triggering an explosion that injured three employees and extensively damaged the plant, the truck and trailer involved in the delivery.
This Clean Air Act prosecution was of national significance not only for the extent of the harm caused, but also because it is the first trial conviction under 42 U.S.C. Sec. 7413(c)(5), which imposes increased penalties for anyone who knowingly releases hazardous air pollutants knowing that, at the time of the release, they have put someone in imminent danger of death or serious bodily injury. It is also the first conviction under 42 U.S.C. Sec. 7412(r)(1), which places a general duty on owners/operators of facilities handling extremely hazardous substances to prevent and mitigate the consequences of accidental releases of those substances.
Assistant U.S. Attorney Bryan Dake and Special Assistant U.S. Attorney Eric Nelson prosecuted the case, which was investigated by the Environmental Protection Agency, the U.S. Department of Transportation Office of Inspector General and the Occupational Safety and Health Administration.
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Former CEO of Tennessee Pain Management Company Sentenced for Role in Multi-Million Dollar Medicare Kickback SchemeRead the Press Release
NASHVILLE, Tenn. – July 10, 2020 - A Tennessee healthcare executive was sentenced to 42 months in prison yesterday for his role in an approximately $4 million kickback scheme.
U.S. Attorney Don Cochran, Acting Assistant Attorney General Brian Rabbitt of the Justice Department’s Criminal Division, Special Agent in Charge Derrick Jackson of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Atlanta Region, Special Agent in Charge John F. Khin of the U.S. Department of Defense Criminal Investigative Service’s (DCIS) Southeast Field Office, and Director David Rausch of the Tennessee Bureau of Investigation (TBI) made the announcement.
John Davis, 42, of Franklin, Tennessee, the former CEO of Comprehensive Pain Specialists (CPS) of Gallatin, Tennessee, was sentenced by U.S. District Judge William Campbell, Jr., of the Middle District of Tennessee. Judge Campbell also ordered Davis to forfeit $770,036.00. Davis was convicted of one count of conspiracy to defraud the United States and violate the Anti-Kickback Statute as well as seven counts of violating the Anti-Kickback Statute in April 2019 after a seven-day trial.
According to evidence presented at trial, Davis abused his position as CEO of CPS to arrange for referrals of Medicare Durable Medical Equipment (DME) orders to his co-conspirator, Brenda Montgomery and her company, CCC Medical. Evidence showed that Davis operated a shell company called ProMed Solutions (ProMed), which he had registered in the name of his wife. Davis received over $770,000 in illegal kickbacks disguised as payments to his wife and ProMed. Together, Davis and Montgomery pocketed over $2.9 million dollars in improper reimbursements from Medicare. Davis used company funds from CPS to pay bonuses to providers who ordered DME for Medicare beneficiaries and referred those orders to CCC Medical. Davis received 60% of the Medicare profit from these referrals, while the company he ran lost the opportunity to bill for these services.
Evidence at trial also showed that in April and May of 2015, Davis became concerned about the size of the kickback payments that he was receiving from CCC Medical. To address this concern, Davis and Montgomery engaged in a sham sale of ProMed, which had no assets, no employees, no equipment, no office space, and no customers other than CPS. Evidence further showed that Davis and Montgomery set the price for the sham sale based upon the average monthly kickbacks that Davis had been paid for the previous 8 months. When CPS referrals slowed, Davis agreed to reduce the purported “purchase price” to $150,000. When Davis received the last check for the sham sale, he began cutting off referrals to CCC Medical.
Montgomery pleaded guilty on January 7, 2019, to one count of conspiracy to defraud the United States and violate the Anti-Kickback Statute, and seven counts of violations of the Anti-Kickback Statute. She is currently serving a 42-month prison sentence.
This case was investigated by HHS-OIG, with the support of the Defense Criminal Investigative Service, the Internal Revenue Service – Criminal Investigation, and the Tennessee Bureau of Investigation Medicaid Fraud Control Unit, and was brought as part of the Medicare Fraud Strike Force. Assistant U.S. Attorney Taylor J. Phillips and Trial Attorney Anthony Burba of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for approximately $19 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
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Florida Man Charged with COVID Relief Fraud and Health Care FraudRead the Press Release
A Florida man was arrested today on allegations that he fraudulently sought several Paycheck Protection Program (PPP) loans, and that he participated in a scheme to defraud Medicare of at least $5.6 million. It is further alleged that a portion of the PPP loan proceeds were potentially used in furtherance of the Medicare fraud scheme.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, Omar Perez Aybar of the U.S. Department of Health and Human Services-Office of the Inspector General (HHS-OIG), and Special Agent in Charge Kevin Kupperbusch of the Small Business Administration’s Office of the Inspector General (SBA-OIG) made the announcement.
Carlos Belone, 37, of Coconut Creek, Florida, was charged by criminal complaint, unsealed today upon his arrest, in the Southern District of Florida with wire fraud; conspiracy to commit health care fraud; payment of health care kickbacks; and making false statements to a financial institution. He made his initial appearance before U.S. Magistrate Judge Lurana S. Snow.
The complaint alleges that Belone submitted several fraudulent PPP loan applications to federally insured financial institutions, other SBA-approved lenders, and the SBA in the name of R&S Pharmacy Inc. (R&S Pharmacy), a durable medical equipment company that allegedly submitted false and fraudulent claims to Medicare for orthotic braces that were medically unnecessary, ineligible for Medicare reimbursement and/or not provided as represented. Belone was an owner of R&S Pharmacy. Patients interviewed as part of the investigation stated that they did not want or need orthotic braces; had not authorized their Medicare number to be used to submit claims for orthotic braces; and/or that they did not receive orthotic braces as represented by R&S Pharmacy in the claims that Belone and his co-conspirators submitted to Medicare.
The complaint alleges that, to support the fraudulent PPP loan applications, Belone submitted fake tax documents and doctored profit and loss statements for R&S Pharmacy. The complaint additionally alleges that Belone succeeded in fraudulently obtaining over $22,000 in PPP loan proceeds, and shortly thereafter, made payments, or caused payments to be made, to a company suspected of furthering the Medicare fraud scheme, and directed approximately $12,000 of the PPP loan money to a personal account under his control.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted March 29. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by SBA-OIG, the FBI’s Miami Field Office, and HHS-OIG. The Department of Justice also thanks the U.S. Attorney’s Office for the Southern District of Florida, the Florida Department of Revenue, IRS-Criminal Investigation, and the U.S. Department of Labor’s Office of Inspector General for assistance they provided. Trial Attorney Sara Clingan of the Criminal Division’s Fraud Section is prosecuting the case.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
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.
Five Defendants Indicted in Federal Drug Investigation Centered on North Side of ChicagoRead the Press Release
CHICAGO — Five individuals have been indicted on drug charges as part of a federal investigation into cocaine trafficking on Chicago’s North Side.
During the multi-year investigation, law enforcement seized more than 365 grams of suspected crack or powder cocaine, and six grams of fentanyl. Much of the alleged drug trafficking occurred in the West Ridge neighborhood on the North Side of Chicago.
An indictment returned Thursday in U.S. District Court in Chicago charges five defendants with conspiracy and other federal drug offenses: JOSHUA MOORE, also known as “Big Moe” and “Big Guy,” 41; JOHN HEARD, also known as “Bird,” 30; EARNEST GREENE, also known as “Ernie,” 20; JOSE FONTANEZ, also known as “Joey Crack,” 38; and ANTONIO MAXEY, also known as “Tone,” 32; all of Chicago. Greene currently remains at large, while the other defendants are either in law enforcement custody or have been released on court-supervised bond.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago office of the FBI; and David Brown, Superintendent of the Chicago Police Department. Assistant U.S. Attorneys Shawn McCarthy and Katie M. Durick represent the government.
According to the indictment and a criminal complaint previously filed in the case, Moore operated a drug trafficking organization near the intersection of Devon and Western Avenues in Chicago. Moore’s operation also utilized a drug stash house in the 7000 block of North Rockwell Street in Chicago, directly across the street from Indian Boundary Park, the charges allege.
As part of his operation, Moore purchased wholesale quantities of cocaine and packaged it for distribution on the street, the charges state. He also allegedly “cooked” the powder cocaine into crack cocaine for street sale. Moore either sold narcotics directly to customers or supplied the drugs to his co-defendants to handle the sales, the charges state.
During the investigation, law enforcement made numerous undercover purchases of crack cocaine or powder cocaine from Moore’s organization, according to the charges.
The public is reminded that an indictment contains only accusations and is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
Five Charged as Part of Ongoing Investigation of Bridgeport Murder, Other Violent ActsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that an investigation of a Bridgeport murder in 2018 and other violent acts has resulted in federal charges against the following five individuals:
HENRY FLOY, a.k.a. “Mills,” 21, of Bridgeport
SHAKALE BRANTLEY, a.k.a. “Charlie Wilson,” “Kellz,” and “Man Man,” 20, of Bridgeport
ANTOINE SISTRUNK, 21, of Charlotte, North Carolina (formerly of Bridgeport)
TA’RON PHARR, a.k.a. “250,” 20, of Bridgeport
JAYLEN WILSON, a.k.a. “Jay-Dot,” 21, of Ansonia and DerbyAs alleged in court documents and statements made in court, in an effort to address escalating violence in Bridgeport, the FBI, ATF, DEA and Bridgeport Police are actively investigating members of the Original North End (“ONE”), a group based in the Trumbull Gardens area of Bridgeport whose members are involved in narcotics trafficking and numerous acts of violence, including murder. In the early morning hours of August 13, 2018, a man was shot and killed and a woman was shot and seriously wounded while both were seated in a car parked on Union Avenue in Bridgeport. Surveillance video showed that the shots were fired from a white Jeep Grand Cherokee that had pulled up next to the car and then fled the scene. Approximately three hours later, a white Jeep Grand Cherokee was found burning in Indian Wells State Park in Shelton. The vehicle had been reported stolen from Newburgh, New York, on August 9, 2018. A purse belonging to the Jeep’s owner, which was in the Jeep at the time of the theft, was subsequently recovered on Grandview Avenue in Bridgeport, and the owner’s debit card was unlawfully used or attempted to be used at retail locations in Trumbull and Bridgeport.
It is alleged that Floy, Brantley, Pharr and Wilson stole the Jeep and drove it back to Bridgeport. It is further alleged that ONE members murdered the male victim on August 13, 2018, and seriously wounded his female companion. After the murder, Floy, Brantley and Sistrunk attempted to destroy the Jeep and other evidence used in the murder in order to hinder the investigation and prosecution of the murder.
On March 18, 2020, a federal grand jury in Bridgeport returned an indictment charging Floy, Brantley and Sistrunk with one count of accessory after the fact to murder, in violation of the Violent Crimes in Aid of Racketeering (VICAR) statute. The defendants were subsequently arrested on this charge and the investigation continued.
The investigation revealed, as alleged, that Brantley and other ONE members planned and executed robberies of drug dealers. Specifically, in October 2018 in Bridgeport, and in November 2018 in Stratford, Brantley and others attacked and stole marijuana from a marijuana dealer. After Brantley was arrested in March 2020, and while he was incarcerated, Brantley attempted to solicit others to kill the victim of the marijuana robberies in order to prevent Brantley’s prosecution for those offenses.
On July 8, 2020, a grand jury in New Haven returned a superseding indictment adding Pharr and Wilson as defendants, and adding additional charges. Pharr and Wilson were arrested on state charges on July 7 and are currently detained.
The superseding indictment charges Floy, Brantley and Sistrunk with one count of accessory after the fact to VICAR murder, an offense that carries a maximum term of imprisonment of 15 years. In addition, Floy, Brantley, Pharr and Wilson are charged with one count of interstate transportation of stolen property, which carries a maximum term of imprisonment of 10 years.
The superseding indictment also charges Brantley with two counts of interference with commerce by robbery, one count of conspiracy to interfere with commerce by robbery, one count of solicitation of witness tampering, and one count of tampering with a witness by threat. Each of these charges carry a maximum term of imprisonment of 20 years.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This ongoing investigation is being conducted by the FBI’s Safe Streets and Violent Crimes Task Forces, ATF, DEA, Bridgeport Police Department, Connecticut State Police and the Bridgeport State’s Attorney’s Office, with the assistance of the Connecticut Forensic Science Laboratory and the Waterbury Police Department. The case is being prosecuted by Assistant U.S. Attorneys Peter D. Markle, Karen L. Peck, Rahul Kale and Jocelyn C. Kaoutzanis.
U.S. Attorney Durham noted that this prosecution is a part of the Justice’s Department’s Project Safe Neighborhoods (PSN) program and Project Longevity. PSN is a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone. Project Longevity is a comprehensive initiative to reduce gun violence in Connecticut’s major cities. Through Project Longevity, community members and law enforcement directly engage with members of groups that are prone to commit violence and deliver a community message against violence, a law enforcement message about the consequences of further violence and an offer of help for those who want it.
Firearms-related indictments continue Project Guardian's collaborative law enforcement initiativeRead the Press Release
SAVANNAH, GA: Ten defendants were indicted this week on felony charges, including federal firearms violations, under the umbrella of the Department of Justice’s Project Guardian.
In addition to firearms charges, many of the 10 indictments charge a range of federal crimes including drug trafficking, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. Most of the indictments target previously convicted felons, several of whom were on state parole or probation at the time of their indictment.
“As a key Department of Justice initiative, Project Guardian leverages the cooperative relationship between our office, the Bureau of Alcohol, Tobacco and Firearms, and state and local law enforcement agencies and prosecutors to protect our communities by identifying and removing gun criminals,” said U.S. Attorney Christine. “Together we will continue working to keep our communities safer by targeting repeat offenders who illegally possess and use firearms.”
Those named in the federal indictments include:
- John Wesley Boone, a/k/a “Boone,” a/k/a “J,” 33, of Brunswick, Ga., charged with Possession with Intent to Distribute Ecstasy and Crack Cocaine; Possession of a Firearm by a Convicted Felon; and Possession of a Firearm in Furtherance of a Drug Trafficking Offense.
- Joseph Jay Gartrell III, 36, of Augusta, charged with Possession with Intent to Distribute Methamphetamine; Possession of a Firearm by a Convicted Felon; and Possession of a Firearm in Furtherance of a Drug Trafficking Crime.
- Tron Smith, 33, of Savannah, charged with Possession with Intent to Distribute Cocaine and Marijuana; Possession of a Firearm by a Convicted Felon; and Possession of a Firearm in Furtherance of a Drug Trafficking Offense.
- Dominique Johnson, 32, of Augusta, charged with Possession of a Firearm by a Convicted Felon; and Possession of Cocaine and Marijuana.
- Courtney Spann, 28, of Statesboro, Ga., charged with Possession of Ammunition and Firearms by a Convicted Felon.
- Chance Derrell Christian, 41, of Kingstree, S.C., charged with Possession of a Firearm by a Convicted Felon.
- Samuel Powell III, 37, of Augusta, charged with Possession of a Firearm by a Convicted Felon.
- Arkeem Collins, 24, of Savannah, charged with Possession of a Firearm by a Convicted Felon.
- Clifford Stone, 28, of Wrens, Ga., charged with Possession of a Firearm by a Convicted Felon.
- Delvon Brown, 34, of Savannah, charged with Possession of a Firearm by a Convicted Felon.
Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.
“ATF will continue to focus its resources on this results-driven initiative to curb firearms-related violent crime in the Southern District of Georgia,” said Beau Kolodka, Assistant Special Agent in Charge of the Atlanta Field Division of the ATF.
The cases are investigated under Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws, and the Prosecutor to Prosecutor Program (P3), which provides collaboration between federal and state prosecutors to determine the most appropriate venue for prosecuting crimes.
In addition to the ATF, agencies involved in investigation of the cases include the Drug Enforcement Administration, the FBI, the Georgia Department of Community Supervision, the Georgia State Patrol, the Chatham-Savannah Counter Narcotics Team, the Richmond County Sheriff’s Office, the Jefferson County Sheriff’s Office, the Liberty County Sheriff’s Office, the Brunswick Police Department, the Savannah Police Department, the Hinesville Police Department, the Glynn County Police Department, and the Statesboro Police Department.
The cases are being investigated for the United States by Southern District U.S. Attorney’s Office Assistant U.S. Attorneys including Project Guardian Coordinator Henry W. Syms; Joshua Bearden; Jennifer Stanley; Jennifer Kirkland; John P. Harper III; and Special Assistant U.S. Attorneys Edwin Caban and Noah Abrams.
Felon Who Hid a Firearm in a Cop Car While Being Arrested Sentenced to Federal PrisonRead the Press Release
A man who hid a firearm in the back of a police car when he was arrested in 2019 was sentenced today to more than 4 years in federal prison.
Juwan Logan, age 43, from Waterloo, Iowa, received the prison term after a January 15, 2020 guilty plea to being a felon in possession of a firearm.
In a plea agreement, Logan admitted he was driving a motorcycle on October 17, 2019, when he was stopped for a number of traffic violations. When Logan was arrested for driving while barred, he was placed in the back of a police car. Although he was patted down, Logan was able to keep a small handgun hidden on his person. Prior to arriving at the Black Hawk County Jail, hid the handgun in the vehicle. Officers found it a short time later. Logan has prior convictions for domestic abuse and possession a firearm as a felon.
Logan was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Logan was sentenced to 57 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system. Logan is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see /media/1122011/dl?inline.
The case was prosecuted by Assistant United States Attorney Patrick J. Reinert and investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives in concert with the Waterloo, Iowa, Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-02074.
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Escape from Halfway House Results in Additional Time in Federal PrisonRead the Press Release
A Cedar Rapids man who escaped from a residential reentry center where he was ordered by a federal court was sentenced today to more than 2 years in federal prison.
Caleb Lee Olson, age 45, from Cedar Rapids, Iowa, received the prison term after a March 3, 2020 guilty plea to one count of escape from federal custody. In a plea agreement, Olson admitted he was originally sentenced to 151 months’ imprisonment for drug trafficking in U.S. District Court in Cedar Rapids on April 20, 2011, with a term of supervised release to follow. Olson had his supervised release revoked multiple times, most recently in February 2020, when he was sentenced to serve 36 months’ imprisonment. As a condition of Olson’s supervised release, he was required to reside in a residential reentry center. On July 22, 2019, Olson left the Gerald R. Hinzman Center in Cedar Rapids and never returned. Olson was later found in possession of methamphetamine and arrested in Denver, Colorado, on August 26, 2019.
Olson was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Olson was sentenced to 27 months’ imprisonment that must be served in addition to the 36-month sentence imposed for his supervised release violation. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system. Olson is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Patrick Reinert and was investigated by United States Marshals Service, the Northern Iowa Fugitive Task Force. Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 20-CR-00012.
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Department of Justice Awards $2.2 Million for Innovative Community Policing Projects - Louisiana State University Receives $88,229 Grant for School Safety ProjectRead the Press Release
The Department of Justice has awarded $2.2 million in grant funding to law enforcement agencies and stakeholders through the Department’s Office of Community Oriented Policing Services (COPS Office) Community Policing Development (CPD) Microgrants Program. COPS Office Director Phil Keith announced 29 awards with award amounts ranging from $15,090 to $100,000.
On July 7, 2020, the Department of Justice announced that Louisiana State University Police Department was one of the 29 law enforcement recipients selected to receive a Community Policing Development Microgrant Program grant. LSU will use the $88,229 grant to address the issue of school safety with its project, “Statewide Approach to Higher Education School Safety in Louisiana.” The project will focus on building a comprehensive approach to school safety across all public higher education institutions in Louisiana through workshops across the state.
U.S. Attorney Fremin stated, “With the rising rates of academic violence, it is vital for law enforcement and school institutions to work together in pursuing effective counter-measures against these risks. This funding is a critical step in aiding LSU as they develop, refine, and improve school security and I applaud them for their proactive measures.”
“This grant will aid LSU as they work with educational institutions and law enforcement agencies throughout the state to improve school safety,” said David C. Joseph, U.S. Attorney for the Western District of Louisiana. “I am thankful to the Department of Justice and COPS for providing these resources.”
“The announcement of Louisiana’s CPD Microgrants award highlights the commitment from the Department of Justice to afford our state the innovative programs they need to improve planning, information sharing and public higher education response capabilities, as well as to enhance public safety and combat crime.” said U.S. Attorney for the Eastern District of Louisiana, Peter G. Strasser.
“The CPD Microgrants Program is a critical resource to advance innovative community policing projects across the country,” said Director Keith. “These strategic investments from the COPS Office pay huge dividends to state and local law enforcement agencies and the communities that they serve.”
CPD Microgrants Program funds are used to develop the capacity of local, state, and tribal law enforcement agencies to implement community policing strategies. Applicants were invited to propose demonstration or pilot projects to be implemented in their agency that offer creative ideas to advance crime fighting, community engagement, problem solving, or organizational changes to support community policing in one of the following areas:
• Human Trafficking
• Meeting Rural Law Enforcement Challenges
• Officer Safety and Wellness
• Recruitment, Hiring, and Retention
• School Safety
• Staffing and Allocation Studies
• Victim-Centered Approaches
• Violent Crime
• Youth Engagement
Funding through this program is available for the first time since 2018, following the successful removal of a nationwide injunction. These awards are being announced at a critical time for our country, when community policing strategies are very much needed to improve police and community relations.
The complete list of awards can be found here. To learn more about CPD Microgrants, please visit https://cops.usdoj.gov/cpdmicrogrants. For additional information about the COPS Office, please visit www.cops.usdoj.gov.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Department of Justice Awards $2.2 Million for Innovative Community Policing ProjectsRead the Press Release
NEW ORLEANS – The Department of Justice has awarded $2.2 million in grant funding to law enforcement agencies and stakeholders through the Department’s Office of Community Oriented Policing Services (COPS Office) Community Policing Development (CPD) Microgrants Program. COPS Office Director Phil Keith announced 29 awards with award amounts ranging from $15,090 to $100,000.
On July 7, 2020, the Department of Justice announced that Louisiana State University Police Department was one of the 29 law enforcement recipients selected to receive a Community Policing Development Microgrant Program grant. LSU will use the $88,229 grant to address the issue of school safety with its project, “Statewide Approach to Higher Education School Safety in Louisiana.” The project will focus on building a comprehensive approach to school safety across all public higher education institutions in Louisiana through workshops across the state.
“This grant will aid LSU as they work with educational institutions and law enforcement agencies throughout the state to improve school safety,” said David C. Joseph, U.S. Attorney for the Western District of Louisiana. “I am thankful to the Department of Justice and COPS for providing these resources.”
U.S. Attorney Fremin stated, “With the rising rates of academic violence, it is vital for law enforcement and school institutions to work together in pursuing effective counter-measures against these risks. This funding is a critical step in aiding LSU as they develop, refine, and improve school security and I applaud them for their proactive measures.”
“The announcement of Louisiana’s CPD Microgrants award highlights the commitment from the Department of Justice to afford our state the innovative programs they need to improve planning, information sharing and public higher education response capabilities, as well as to enhance public safety and combat crime,” said U.S. Attorney for the Eastern District of Louisiana, Peter G. Strasser.
“The CPD Microgrants Program is a critical resource to advance innovative community policing projects across the country,” said Director Keith. “These strategic investments from the COPS Office pay huge dividends to state and local law enforcement agencies and the communities that they serve.”
CPD Microgrants Program funds are used to develop the capacity of local, state, and tribal law enforcement agencies to implement community-policing strategies. Applicants were invited to propose demonstration or pilot projects to be implemented in their agency that offer creative ideas to advance crime fighting, community engagement, problem solving, or organizational changes to support community policing in one of the following areas:
- Human Trafficking
- Meeting Rural Law Enforcement Challenges
- Officer Safety and Wellness
- Recruitment, Hiring, and Retention
- School Safety
- Staffing and Allocation Studies
- Victim-Centered Approaches
- Violent Crime
- Youth Engagement
Funding through this program is available for the first time since 2018, following the successful removal of a nationwide injunction. These awards are being announced at a critical time for our country, when community-policing strategies are very much needed to improve police and community relations.
The complete list of awards can be found here. To learn more about CPD Microgrants, please visit https://cops.usdoj.gov/cpdmicrogrants. For additional information about the COPS Office, please visit www.cops.usdoj.gov.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Department of Justice Awards $2.2 Million for Innovative Community Policing ProjectsRead the Press Release
SHREVEPORT/LAFAYETTE/ALEXANDRIA/LAKE CHARLES/MONROE, La. – The Department of Justice has awarded $2.2 million in grant funding to law enforcement agencies and stakeholders through the Department’s Office of Community Oriented Policing Services (COPS Office) Community Policing Development (CPD) Microgrants Program. COPS Office Director Phil Keith announced 29 awards with award amounts ranging from $15,090 to $100,000.
On July 7, 2020, the Department of Justice announced that Louisiana State University Police Department was one of the 29 law enforcement recipients selected to receive a Community Policing Development Microgrant Program grant. LSU will use the $88,229 grant to address the issue of school safety with its project, “Statewide Approach to Higher Education School Safety in Louisiana.” The project will focus on building a comprehensive approach to school safety across all public higher education institutions in Louisiana through workshops across the state.
“This grant will aid LSU as they work with educational institutions and law enforcement agencies throughout the state to improve school safety,” said David C. Joseph, U.S. Attorney for the Western District of Louisiana. “I am thankful to the Department of Justice and COPS for providing these resources.”
U.S. Attorney Fremin stated, “With the rising rates of academic violence, it is vital for law enforcement and school institutions to work together in pursuing effective counter-measures against these risks. This funding is a critical step in aiding LSU as they develop, refine, and improve school security and I applaud them for their proactive measures.”
“The announcement of Louisiana’s CPD Microgrants award highlights the commitment from the Department of Justice to afford our state the innovative programs they need to improve planning, information sharing and public higher education response capabilities, as well as to enhance public safety and combat crime.” said U.S. Attorney for the Eastern District of Louisiana, Peter G. Strasser.
“The CPD Microgrants Program is a critical resource to advance innovative community policing projects across the country,” said Director Keith. “These strategic investments from the COPS Office pay huge dividends to state and local law enforcement agencies and the communities that they serve.”
CPD Microgrants Program funds are used to develop the capacity of local, state, and tribal law enforcement agencies to implement community policing strategies. Applicants were invited to propose demonstration or pilot projects to be implemented in their agency that offer creative ideas to advance crime fighting, community engagement, problem solving, or organizational changes to support community policing in one of the following areas:
- Human Trafficking
- Meeting Rural Law Enforcement Challenges
- Officer Safety and Wellness
- Recruitment, Hiring, and Retention
- School Safety
- Staffing and Allocation Studies
- Victim-Centered Approaches
- Violent Crime
- Youth Engagement
Funding through this program is available for the first time since 2018, following the successful removal of a nationwide injunction. These awards are being announced at a critical time for our country, when community policing strategies are very much needed to improve police and community relations.
The complete list of awards can be found here. To learn more about CPD Microgrants, please visit https://cops.usdoj.gov/cpdmicrogrants. For additional information about the COPS Office, please visit www.cops.usdoj.gov.
# # #
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Department of Justice Antitrust Division to Host Workshop on Competition in the Licensing of Public Performance Rights in the Music IndustryRead the Press Release
The Department of Justice will hold a virtual public workshop on July 28th and 29th, 2020, to discuss competition in the licensing of public performance rights in the music industry. The workshop will provide a further venue for industry stakeholders to weigh in on the American Society of Composers, Authors, and Publishers (ASCAP) and Broadcast Music, Inc. (BMI) consent decrees and their implications for antitrust law enforcement and policy as we enter the third decade of the 21st Century and as music distribution continues to evolve through technological innovation.
A series of panels will discuss competition issues relating to the various types of public performance licenses currently offered in the marketplace, competition between performing rights organizations (PROs), such as ASCAP, BMI and GMR, and the licensing of music to end-users. Panelists will discuss whether or not certain terms of the ASCAP and BMI consent decrees should be modified, and whether the decrees are inhibiting innovative business models that may hurt consumers or artists. These panels will include executives PROs, songwriters, music publishers, music licenses, legal and economic experts, and other industry stakeholders.
The Department of Justice invited public comments from the public on these topics on June 5, 2019 and the comments can be found here. Interested parties may submit any further non-duplicative comments online now through July 22, 2020, at [email protected].
The workshop is free and open to the public and will be webcast from approximately 12:30 pm – 4 pm Eastern Time each day. A recording of the workshop will be available on the Division’s website. Registration information, an agenda, instructions on accessing the webcast, and a list of speakers will be available in the near future on the event webpage. Members of the press should email [email protected] to register.
Reasonable accommodations for people with disabilities are available upon request. If you need such an accommodation, please contact the Antitrust Division at [email protected]. Such requests should include a detailed description of the accommodations needed and a way to contact you if we need more information.
Darknet Vendor and Pharmacist Plead Guilty to Firebomb Attack PlotRead the Press Release
ALEXANDRIA, Va. – A Maryland Darknet vendor and a Nebraska pharmacist pleaded guilty today to charges related to a conspiracy to use explosives to firebomb and destroy a competitor pharmacy.
According to court documents, from August 2019 through April 2020, Hyrum T. Wilson, 41, of Auburn, Nebraska, illegally mailed over 19,000 dosage units of prescription medications, including opioids, from his pharmacy in Nebraska to the Maryland residence of co-conspirator William Anderson Burgamy IV, 32, of Hanover. Burgamy illegally sold prescription drugs through his Darknet vendor account to customers nationwide, including here in the Eastern District of Virginia, and claimed at one point that he made nearly $1 million total. Burgamy and Wilson laundered the proceeds of their scheme using Bitcoin cryptocurrency payments, wire transfers, and bundles of cash sent through the mail.
“Burgamy and Wilson carefully plotted a violent attack operation involving explosives, firearms, the Darknet, prescription opioid trafficking, cryptocurrency, and sophisticated money laundering,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Those potentially deadly plans were successfully thwarted during the early stages of the pandemic. This case highlights elements of EDVA’s national security, narcotics, cyber, financial, and violent crime work, all of which can only be performed with the tenacity and skilled investigative efforts demonstrated by our law enforcement partners.”
Given the profitability of the Darknet scheme, Wilson repeatedly hit limits, set by his distributor, on the amount of prescription drugs that he could obtain and provide to Burgamy. Consequently, Burgamy and Wilson developed an attack plot known as “Operation Firewood” to break into, steal the opiate supply of, and firebomb a competing pharmacy located in Auburn by using explosives. The goal of the attack plot was to destroy Wilson’s local competition, which Burgamy and Wilson believed would increase the volume of prescription drugs that Wilson’s pharmacy could obtain, thereby allowing Burgamy and Wilson’s drug trafficking operation to continue and expand.
“This investigation, conducted by the Hi-Tech Opioid Task Force and our partners, demonstrates the dedication and expertise of law enforcement to disrupt and dismantle violent attacks and illegal drug trafficking,” said James A. Dawson, Special Agent in Charge of the FBI Washington Field Office's Criminal Division. “Burgamy and Wilson put thousands of illegal opioids in the hands of people across the country and their brazen and violent plot could have had deadly consequences. The selling of illicit drugs on the Darknet will not be tolerated. No matter where these criminals try to hide, the FBI will work to bring them to justice and protect our communities.”
According to court documents, Burgamy told Wilson that he would never surrender to law enforcement, that if anyone showed up during the attack, he would “blast [his] [expletive] way out,” and that he would shoot bullets at anyone who attempted to confront or apprehend him, including the owner of the victim pharmacy. Prior to Burgamy’s arrest in April 2020, which uncovered and thwarted the firebombing plot, Burgamy and Wilson fully intended on the attack occurring after COVID-19 restrictions were lifted.
“The opioid epidemic that has resulted in overdoses and deaths is a national public health crisis,” said Mark S. McCormack, Special Agent in Charge of the FDA Office of Criminal Investigations, Metro Washington Field Office. “Criminals who contribute to that crisis through their illegal actions such as illicit opioid distribution, whether online, on the Darknet, or through conventional drug distribution methods, will be brought to justice. The FDA is fully committed to dismantling illegal prescription drug distribution networks that misuse the internet at the expense of public health and safety.”
Wilson created a “getaway” map and escape routes for Burgamy to use to help him evade law enforcement detection after the firebombing. Wilson instructed Burgamy to make the firebombing appear as though it was committed by a fictitious “pissed off husband” who learned about a fabricated affair involving the husband’s wife and a pharmacist from the victim pharmacy.
Burgamy assured Wilson that if anything happened to him, he would take care of Wilson’s “family and bills,” and Wilson agreed to safeguard Burgamy’s life insurance information in the event Burgamy was killed during the attack. Burgamy and Wilson also agreed that Burgamy and another individual would carry multiple firearms during the attack and use explosives, specifically Molotov cocktails enhanced with Styrofoam as a thickening agent, to burn the victim pharmacy down. Law enforcement located eight unsecured fully loaded firearms in Burgamy’s residence, including AR-15 assault rifles and numerous high capacity magazines.
Burgamy and Wilson each pleaded guilty to conspiracy to use explosives, conspiracy to distribute controlled substances, and money laundering. Burgamy, who also pleaded guilty to a firearms offense, and Wilson both face a maximum penalty of 20 years in prison on each count when sentenced on November 20. 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.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; James A. Dawson, Special Agent in Charge of the FBI's Washington Field Office Criminal Division; Peter R. Rendina, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; Mark S. McCormack, Special Agent in Charge, FDA Office of Criminal Investigations, Metro Washington Field Office; and Jesse R. Fong, Special Agent in Charge for the DEA’s Washington Field Division, made the announcement after Senior U.S. District Judge T.S. Ellis III accepted the pleas. Assistant U.S. Attorney Raj Parekh is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-150 and Case No. 1:20-cr-151.
Convicted Felon, Caught with a Gun in Athens, Pleads GuiltyRead the Press Release
ATHENS, Ga. – A convicted felon caught with a stolen gun after authorities were tipped off about him being armed and selling drugs in Athens has pleaded guilty for his crime, said Charlie Peeler, the U.S. Attorney for the Middle District of Georgia.
John Willie Clarke, 34, of Athens, pleaded guilty to one count possession of a stolen firearm before U.S. District Judge C. Ashley Royal on Wednesday, July 8. Clarke faces a maximum sentence of ten years imprisonment, a maximum fine of $250,000 and three years supervised release. A sentencing date has not been scheduled. There is no parole in the federal system.
On December 3, 2019, the Athens-Clarke County Police Department received information that Clarke was located at the Bulldog Inn and was wanted on a probation warrant. The tipster stated that Clarke was armed with a large gun and sold narcotics, and also provided a description of the vehicle Clarke was traveling in as well as the tag information. Police learned that Clarke, who was a convicted felon, had left the Inn and was enroute to the Circle K convenience store on US Highway 29 North. There, police approached the described vehicle and observed Clarke in the front passenger seat with a gun magazine in his lap, loaded with 25 rounds of 9 mm ammunition. He was taken into custody on outstanding warrants. Inside the vehicle, police discovered a loaded 9 mm semi-automatic pistol and a stolen .380 semi-automatic pistol that Clarke admitted was purchased illegally. Plastic baggies and a methamphetamine pipe were also found inside the vehicle.
“We are working closely with our law enforcement partners across the Middle District of Georgia to identify and federally prosecute criminals caught with illegal firearms. Convicted felons with guns will be prosecuted, they will face prison time and there is no parole in the federal system,” said U.S. Attorney Charlie Peeler. “I want to thank the Athens-Clarke County Drug Task Force and the Athens-Clarke County Police Department for their work investigating this case, and their dedication to keeping citizens safe.”
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The 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/archives/projectguardian.
The case was investigated by the Athens-Clarke County Drug Task Force and Athens-Clarke County Police Department. Assistant U.S. Attorney Kimberly Easterling is prosecuting cases arising from this investigation for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Convicted Felon Sentenced to Federal Prison for Possession of a Firearm During Domestic Violence IncidentRead the Press Release
MEMPHIS, TN – Jeremy Nicks, 35, has been sentenced to 46 months in federal prison for being a convicted felon in possession of a firearm. D. Michael Dunavant, U.S. Attorney announced the sentence today.
According to the information presented in court, on April 26, 2018, Jeremy Nicks picked up his girlfriend from work. As she got into the car, Nicks pointed a gun at the victim and threatened to kill her while driving throughout various locations in Memphis. The victim reported the incident to the Memphis Police Department the next day.
On April 27, 2018, the victim notified law enforcement that Nicks was at her residence. When law enforcement responded to the domestic disturbance call, the victim informed officers that the defendant kept the gun under the hood of the Ford Escape. Nicks was immediately placed under arrest. The victim gave a signed statement, and the police obtained a search warrant for Nicks's vehicle. A Harrington and Richardson .32 caliber revolver, loaded with four live rounds, was recovered under the hood of the car.
Nicks has one prior 2007 federal felony robbery conviction and three prior domestic violence misdemeanor convictions. As a result of his prior felony conviction history, Nicks is prohibited by federal law from possessing firearms or ammunition.
On December 18, 2019, Nicks pled guilty to one count of being a convicted felon in possession of a firearm. On July 10, 2020, U.S. District Court Judge Thomas L. Parker sentenced Nicks to 46 months imprisonment followed by 3 years supervised release. There is no parole in the federal system.
U.S. Attorney D. Michael Dunavant said: "Reducing violent crimes committed with firearms is the top priority of this office and the Department of Justice. Prohibited persons in possession of firearms, such as convicted felons and persons with histories of domestic violence present a known and immediate risk of violence to their families and the community at large. This is exactly the type of dangerous offender that the PSN Task Force is designed to target, and I commend their work in holding Nicks responsible and removing him from our streets."
This case was investigated by the Memphis Police Department and the Project Safe Neighborhoods Task Force. This case is part of the Project Safe Neighborhoods (PSN) initiative, 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. In 2017, PSN was reinvigorated 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.
Assistant U.S. Attorney Wendy K. Cornejo prosecuted this case on behalf of the government.
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Compounding Pharmacy Mogul Pleads Guilty to Conspiracy to Commit Health Care Fraud and Conspiracy to Commit Money LaunderingRead the Press Release
WASHINGTON – A Mississippi businessman pleaded guilty Thursday for his role in a multi-million dollar scheme to defraud TRICARE, the health care benefit program serving U.S. military, veterans, and their respective family members, as well as private health care benefit programs, by paying kickbacks to practitioners and distributors for the prescribing and referring of fraudulent prescriptions for not medically necessary compounded medications that were ultimately dispensed by his pharmacies, as well as for his role in a scheme to launder the proceeds of the fraud scheme.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Mike Hurst of the Southern District of Mississippi, Special Agent in Charge Michelle Sutphin of the FBI’s Jackson Field Office, Acting Special Agent in Charge Andrew M. Thornton of IRS Criminal Investigation’s (IRS-CI) New Orleans Field Office, Special Agent in Charge Cynthia Bruce of the Defense Criminal Investigative Service’s (DCIS) Southeast Field Office, and Interim Director Steven Maxwell of the Mississippi Bureau of Narcotics (MBN), made the announcement.
Wade Ashley Walters, 53, of Hattiesburg, Mississippi, a co-owner of numerous compounding pharmacies and pharmaceutical distributors, pleaded guilty to one count of conspiracy to commit health care fraud and conspiracy to commit money laundering before U.S. District Judge Keith Starrett of the Southern District of Mississippi. Defendant was remanded into custody following the plea hearing. Sentencing has been scheduled for Oct. 28, 2020, before Judge Starrett.
As part of his guilty plea, Walters admitted that, between 2012 and 2016, he orchestrated a scheme to defraud TRICARE and other health care benefit programs by distributing compounded medications that were not medically necessary. As part of the scheme, Walters among other things, adjusted prescription formulas to ensure the highest reimbursement without regard to efficacy; solicited recruiters to procure prescriptions for high-margin compounded medications and paid those recruiters commissions based on the percentage of the reimbursements paid by pharmacy benefit managers and health care benefit programs, including commissions on claims reimbursed by TRICARE; solicited (and at times paying kickbacks to) practitioners to authorize prescriptions for high-margin compounded medications; routinely and systematically waived and/or reduced copayments to be paid by beneficiaries and members, including utilizing a purported copayment assistance program to falsely make it appears as if the pharmacies were collecting copayments. Walters and his numerous co-conspirators effectuated a scheme to defraud health care benefit programs, including the TRICARE program, in the amount of $287,659,569, with losses to a government health care program exceeding $20,000,000. Walters obtained over $40,000,000 in proceeds derived directly or indirectly from the fraud.
Walters also admitted that he and others laundered the proceeds by engaging in monetary transactions in amounts of over $10,000 in proceeds from the fraud scheme, including transactions relating to his participation in a sham intellectual property scheme.
The FBI, IRS-CI, DCIS, FBI, and MBN investigated the case with assistance from the U.S. Postal Service Office of Inspector General (OIG), Office of Personnel Management OIG and the Mississippi Attorney General's Office. Trial Attorneys Dustin M. Davis, Sara E. Porter, and Katherine E. Payerle of the Criminal Division’s Fraud Section, Trial Attorney Stephanie Williamson of the Criminal Division’s Money Laundering and Asset Recovery Section, and Assistant United States Attorney Kathlyn R. Van Buskirk of the Southern District of Mississippi are prosecuting the case.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Compounding Pharmacy Mogul Pleads Guilty to Conspiracy to Commit Health Care Fraud and Conspiracy to Commit Money LaunderingRead the Press Release
A Mississippi businessman pleaded guilty Thursday for his role in a multi-million dollar scheme to defraud TRICARE, the health care benefit program serving U.S. military, veterans, and their respective family members, as well as private health care benefit programs, by paying kickbacks to practitioners and distributors for the prescribing and referring of fraudulent prescriptions for not medically necessary compounded medications that were ultimately dispensed by his pharmacies, as well as for his role in a scheme to launder the proceeds of the fraud scheme.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Mike Hurst of the Southern District of Mississippi, Special Agent in Charge Michelle Sutphin of the FBI’s Jackson Field Office, Acting Special Agent in Charge Andrew M. Thornton of IRS Criminal Investigation’s (IRS-CI) New Orleans Field Office, Special Agent in Charge Cynthia Bruce of the Defense Criminal Investigative Service’s (DCIS) Southeast Field Office, and Interim Director Steven Maxwell of the Mississippi Bureau of Narcotics (MBN), made the announcement.
Wade Ashley Walters, 53, of Hattiesburg, Mississippi, a co-owner of numerous compounding pharmacies and pharmaceutical distributors, pleaded guilty to one count of conspiracy to commit health care fraud and conspiracy to commit money laundering before U.S. District Judge Keith Starrett of the Southern District of Mississippi. Defendant was remanded into custody following the plea hearing. Sentencing has been scheduled for Oct. 28, 2020, before Judge Starrett.
As part of his guilty plea, Walters admitted that, between 2012 and 2016, he orchestrated a scheme to defraud TRICARE and other health care benefit programs by distributing compounded medications that were not medically necessary. As part of the scheme, Walters among other things, adjusted prescription formulas to ensure the highest reimbursement without regard to efficacy; solicited recruiters to procure prescriptions for high-margin compounded medications and paid those recruiters commissions based on the percentage of the reimbursements paid by pharmacy benefit managers and health care benefit programs, including commissions on claims reimbursed by TRICARE; solicited (and at times paying kickbacks to) practitioners to authorize prescriptions for high-margin compounded medications; routinely and systematically waived and/or reduced copayments to be paid by beneficiaries and members, including utilizing a purported copayment assistance program to falsely make it appears as if the pharmacies were collecting copayments. Walters and his numerous co-conspirators effectuated a scheme to defraud health care benefit programs, including the TRICARE program, in the amount of $287,659,569, with losses to a government health care program exceeding $20,000,000. Walters obtained over $40,000,000 in proceeds derived directly or indirectly from the fraud.
Walters also admitted that he and others laundered the proceeds by engaging in monetary transactions in amounts of over $10,000 in proceeds from the fraud scheme, including transactions relating to his participation in a sham intellectual property scheme.
The FBI, IRS-CI, DCIS, FBI, and MBN investigated the case with assistance from the U.S. Postal Service Office of Inspector General (OIG), Office of Personnel Management OIG and the Mississippi Attorney General's Office. Trial Attorneys Dustin M. Davis, Sara E. Porter, and Katherine E. Payerle of the Criminal Division’s Fraud Section, Trial Attorney Stephanie Williamson of the Criminal Division’s Money Laundering and Asset Recovery Section, and Assistant United States Attorney Kathlyn R. Van Buskirk of the Southern District of Mississippi are prosecuting the case.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Clearfield County Felon Charged with Illegally Possessing a Shotgun and AmmunitionRead the Press Release
JOHNSTOWN, Pa. – A resident of Coalport, Pa., was indicted by a federal grand jury in Johnstown on a charge of violating federal firearms laws, United States Attorney Scott W. Brady announced today.
The one-count Indictment named Kenneth J. Selvage, 59, as the sole defendant.
According to the Indictment presented to the court, from on or about January 24, 2020 to on or about January 25, 2020, Selvage was found in possession of a Mossberg .20 gauge shotgun and ten shells of ammunition. On June 16, 1999, Selvage was convicted in the Court of Common Pleas of Cambria County, Pennsylvania, of Escape, which is a crime punishable by imprisonment for a term exceeding one year. Federal law prohibits persons who have been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing firearms.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Arnold P. Bernard, Jr., is prosecuting this case on behalf of the government.
The Pennsylvania State Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation that led to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Clarence Center Man Sentenced for Tax EvasionRead 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 Mark E. Wolanyk, 62, of Clarence Center, NY, who was convicted of tax evasion, was sentenced to 12 months of home confinement, 3 years of supervised release and ordered to pay $243,387 in restitution to the IRS by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney John D. Fabian, who is handling the case, stated that in October 2010, the defendant and his minor son opened an account at First Niagara Bank in the name of the minor son, with Wolanyk listed as a custodian on the account. From October 2010 through December 2013, the defendant made deposits into the First Niagara account, including business deposits, totaling approximately $258,911.49. Between January 2011 and December 2013, Wolanyk made cash withdrawals from the First Niagara account totaling approximately $260,875.
In September 20, 2011, during the course of IRS efforts to collect taxes owed by the defendant, Wolanyk submitted what is known as a Collection Information Statement for Wage Earner and Self-Employed Individuals to the IRS. However, the defendant failed to list the First Niagara account in a designated area for listing bank accounts.
In January, April, and December of 2013, the defendant was issued five checks totaling $60,000 as compensation for services rendered in connection with a real estate transaction. All five checks were deposited into the First Niagara account.
In October 15, 2014, Wolanyk filed a false Form 1040 U.S. Individual Income Tax Return for 2013 claiming $77,477 in gross income and $56,491.58 in total income. The defendant knew his taxable income for the calendar year was greater than the amount reported on the tax return. On February 24, 2014, the defendant had previously filed a Form 1040 U.S. Individual Income Tax Return for 2013 claiming -$1,500 total income. Neither return reported the five checks totaling $60,000 deposited into the First Niagara Account.
The total tax loss associated with the defendant’s conduct is $243,386.
The sentencing is the result of an investigation by the Internal Revenue Service, Criminal Investigations Division, under the direction of Jonathan D. Larsen, Special Agent-in-Charge, New York Field Office.
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California Couple in College Admissions Case Agrees to Plead GuiltyRead the Press Release
BOSTON – A California couple has agreed to plead guilty to conspiracy charges in connection with securing the fraudulent admission of their daughter to the University of Southern California as a purported athletic recruit.
Diane Blake, 55, and Todd Blake, 54, both of Ross, Calif., will plead guilty before U.S. District Court Judge Nathaniel M. Gorton on a date to be specified by the Court. Diane Blake will plead guilty to one count of conspiracy to commit wire and mail fraud and honest services wire and mail fraud. Todd Blake will plead guilty to one count of conspiracy to commit wire and mail fraud and honest services wire and mail fraud and one count of conspiracy to commit money laundering.
Under the terms of Diane Blake’s plea agreement, the parties have agreed to a sentence, subject to the Court’s approval, of six weeks in prison, a $125,000 fine and two years of supervised release with 100 hours of community service. Under the terms of Todd Blake’s plea agreement, the parties have agreed to a sentence, subject to the Court’s approval, of four months in prison, a $125,000 fine and two years of supervised release with 100 hours of community service.
Diane and Todd Blake are the 27th and 28th parents to plead guilty in the college admissions case.
Case information, including the status of each defendant, charging documents and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
The charge of conspiracy to commit mail and wire fraud and honest services mail and wire fraud provides for a sentence of up 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of conspiracy to commit money laundering provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $500,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Assistant U.S. Attorneys Eric S. Rosen, Justin D. O’Connell, Leslie A. Wright, Kristen A. Kearney, Karin M. Bell and Stephen E. Frank of Lelling’s Criminal Division are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Boyle County Man Sentenced to 120 Months for Drug Trafficking and Possession of Firearm by Convicted FelonRead the Press Release
FRANKFORT, Ky. - Richard Simpson, 33, of Danville, Kentucky, was sentenced to 120 months in federal prison on Friday, before U.S. District Judge Gregory Van Tatenhove, after previously admitting that he distributed heroin and was illegally in possession of a firearm as a convicted felon.
Simpson admitted that, on August 19, 2018, he was in his vehicle at a motel parking lot, when law enforcement officers arrested him on an outstanding warrant for a parole violation. Upon Simpson’s arrest, officers found him in possession of 3.5 grams of heroin and $5,150 in cash, along with a .45 caliber pistol. Simpson further admitted that inside his motel room he had additional heroin, methamphetamine, and another firearm. During a search of the room, officers located 13.066 grams of heroin, 19 grams of methamphetamine, and a .22 caliber pistol. Simpson admitted to possessing the heroin and methamphetamine with intent to distribute, and to unlawfully possessing firearms.
Simpson pleaded guilty in February 2020.
Simpson has previously been convicted of five felony offenses: Possession of a Controlled Substance First Degree, in 2018; Trafficking in a Controlled Substance First Degree (two counts), in 2013; Burglary Third Degree and Criminal Mischief, in 2006; and Possession of a Controlled Substance First Degree, in 2006.
Under federal law, Simpson must serve 85 percent of his prison sentence; and upon his release from prison, he will be under the supervision of the U.S. Probation Office for six years.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Shawn Morrow, Special Agent in Charge for ATF; and Sheriff Derek Robbins, Boyle County Sherriff’s Department, jointly announced the sentence.
The investigation was conducted by the ATF and the Boyle County Sheriff’s Department. The United States was represented by Assistant U.S. Attorney Francisco Villalobos II.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, U.S. Attorney Robert Duncan Jr., coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. Click here for more information about Project Guardian.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Bay Area Physician Agrees to Pay $400,000 to Settle Allegations of False Medicare ChargesRead the Press Release
A settlement agreement was finalized today in federal court in which a Bay Area physician, Dr. Parvez Fatteh, agreed to pay $400,000 to resolve allegations that he violated the False Claims Act by charging the Medicare Program for physical and occupational therapy services rendered by unlicensed persons, announced United States Attorney David L. Anderson, Steven J. Ryan, Special Agent in Charge, Office of Inspector General for the U.S. Department of Health and Human Services, and John L. Bennett, Special Agent In Charge of the Federal Bureau of Investigation.
Medicare pays for physical and occupational therapy rendered by individuals who are licensed to practice therapy under State law. According to the settlement agreement, Dr. Fatteh owned and operated San Francisco Pain Management and Physical Therapy (dba Total Health Plus), a clinic located in San Francisco, California, that provided physical and occupational therapy and chiropractor services. The agreement indicates that from 2012 to 2015, Dr. Fatteh billed Medicare for physical and occupational therapy rendered by individuals who allegedly were not licensed therapists under California law.
“Patients are entitled to receive care from licensed providers. When Medicare pays for patient services, it expects that the treating providers are properly licensed as required by the State. Billing Medicare to pay for services rendered by unlicensed providers is fraud upon Medicare and upon the American taxpayers,” said U.S. Attorney David L. Anderson.
“Patients expect their providers be properly credentialed, having proven to the State they have the skills needed to provide high quality care,” said Steven J. Ryan, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Along with our law enforcement partners we will continue working to protect government health plan beneficiaries and taxpayers supporting their care.”
“Healthcare fraud is not a victimless crime. Medical professionals who fraudulently bill our government’s healthcare programs are stealing from taxpayers and robbing vulnerable patients of necessary medical care,” said FBI Special Agent in Charge Bennett. "The FBI and our law enforcement partners will continue to thoroughly investigate white collar crimes such as fraud in our healthcare system.”
The settlement resolves claims against Dr. Fatteh in a lawsuit brought by Hercules Malabanan, a former employee of San Francisco Pain and Physical Therapy, under the qui tam or whistleblower provisions of the False Claims Act, 31 U.S.C. §§ 3729-33. (United States of America, State of California, ex rel. Malabanan v. San Francisco Pain Management and Physical Therapy (D.B.A. Total Care Plus), et al., 14-CV-05165 LB) The False Claims Act permits private individuals known as relators to bring lawsuits on behalf of the United States, and to share in any recovery. The relator will receive fifteen percent of the settlement announced today. The amount of the settlement was determined based on analysis of Dr. Fatteh’s ability to pay after review of his financial condition.
The claims resolved by this settlement are allegations only and there has been no determination of liability.
Gioconda Molinari is the Assistant U.S. Attorney who handled the matter with assistance from Paralegal Tiffani Chiu. The settlement is the result of an investigation by the U.S. Attorney’s Office for the Northern District of California, and the U.S. Department of Health and Human Services Office of Inspector General, along with the Federal Bureau of Investigation.
Baltimore County Man Sentenced to 10 Years in Federal Prison for Possession with Intent to Distribute FentanylRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III has sentenced Devon Denzel Thompson, age 26, of Woodlawn, Maryland, to 10 years in prison, followed by five years of supervised release, for possession with intent to distribute three kilograms of fentanyl. Judge Russell also ordered Thompson to forfeit drug proceeds of $14,144 in cash and a .380-caliber firearm and ammunition recovered during a search of his home. The sentence was imposed on July 9, 2020.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Timothy Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Chief Melissa R. Hyatt of the Baltimore County Police Department.
“Law enforcement partners are working together to arrest and prosecute those who peddle deadly fentanyl on our streets and in our neighborhoods,” said U.S. Attorney Robert K. Hur. “Drug traffickers are on notice that dealing in fentanyl increases their odds of federal prosecution. Devon Thompson added a gun to that equation and will now serve 10 years in federal prison, where there is no parole—ever. Please, put down the gun and save a life—maybe even your own.”
According to his plea agreement, on March 16, 2018, Thompson fled from a traffic stop, followed by Baltimore County Police Department officers, who observed Thompson throwing items out of the window. Ultimately, Thompson was stopped and arrested. Law enforcement recovered drug paraphernalia, including a digital scale and a baggie containing over 40 grams of fentanyl.
Based on those recoveries, law enforcement officers obtained a warrant to search Thompson’s residence. During the search, law enforcement recovered three kilograms of fentanyl and over $10,000 from Thompson’s bedroom. Officers also recovered a .380-caliber handgun and rounds of live ammunition from other areas of the house. Thompson admitted that the drugs and gun were his and that he possessed the gun in connection with his drug distribution.
United States Attorney Robert K. Hur commended the ATF and the Baltimore County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Christopher M. Rigali and Lauren E. Perry, who prosecuted the case.
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Attorney General William P. Barr Announces the Designation of Seth D. DuCharme as Acting United States Attorney for the Eastern District of New YorkRead the Press Release
WASHINGTON – Attorney General William P. Barr announced today the designation of Seth D. DuCharme as Acting U.S. Attorney for the Eastern District of New York, pursuant to 5 U.S.C. § 3345(a)(3), effective July 10, 2020.
“Seth has served the Department with distinction during his time at Main Justice,” stated Attorney General Barr. “He is a talented and experienced prosecutor who manages with a steady hand. His experience in prosecuting violent crime, terrorism, and public corruption, will serve him well in his return to New York to lead the office. The Deputy Attorney General and I look forward to working with him in his new role.”
“I am deeply honored to return to my home in the Eastern District of New York to serve as the Acting United States Attorney,” stated Mr. DuCharme. “Applying all of my experience over the many years living here and working alongside some of the most outstanding people in the Department of Justice, I am firmly committed to serving our community and our country to the highest standards and in the finest tradition of this Office. I wish my predecessor, Rich Donoghue, great success as he heads to Washington, D.C., to help lead the Department.”
Mr. DuCharme will serve as chief federal law enforcement officer for a district comprising Brooklyn, Queens and Staten Island in New York City, and Nassau and Suffolk Counties on Long Island. The district serves over eight million residents. Its Criminal Division has approximately 115 Assistant U.S. Attorneys, and its Civil Division has approximately 60 Assistant U.S. Attorneys.
Mr. DuCharme most recently served in Main Justice as the Principal Associate Deputy Attorney General. From March 2019 to December 2019, Mr. DuCharme served as a Counselor to Attorney General Barr. He worked with the Deputy Attorney General and the Attorney General to supervise and coordinate the work of all of the Department’s components, including all 93 United States Attorney’s Offices. Additionally, he helped to coordinate national initiatives against fraud, opioid trafficking, transnational organized crime, international terrorism and other national security priorities.
Prior to his work at Main Justice, Mr. DuCharme served as the Chief of the Criminal Division in the U.S. Attorney’s Office for the Eastern District of New York, where he supervised the investigations and prosecutions by the Office across a wide range of practice areas, including corporate and securities fraud, terrorism, cybercrime, public corruption, international narcotics trafficking, civil rights violations, and violent and organized crime.
Mr. DuCharme first joined the U.S. Attorney’s Office for the Eastern District of New York in March 2008 and has served in the General Crimes, Violent Crimes and Terrorism, and National Security and Cybercrime Sections. He also has served as the Office’s National Security Cyber Specialist and representative on the Anti-Terrorism Advisory Council.
Mr. DuCharme is a 2003 graduate of Fordham University School of Law, where he was selected as a Stein Scholar and as an editor on the Fordham Law Review. He graduated cum laude, Order of the Coif. Mr. DuCharme received his B.A. from Hamilton College in 1992, with Honors in English literature.
Before attending law school, Mr. DuCharme served as a Deputy U.S. Marshal in Brooklyn from 1996 to 2000.
For more information about the U.S. Attorney’s Office for the Eastern District of New York, please visit https://www.justice.gov/usao-edny.
First Assistant United States Attorney Mark J. Lesko will remain in that role.
Attorney General William P. Barr Announces the Appointment of Richard P. Donoghue as Principal Associate Deputy Attorney General; Designation of Seth D. DuCharme as Acting U.S. Attorney for the Eastern District of New YorkRead the Press Release
Today, Attorney General William P. Barr announced the appointment of U.S. Attorney Richard Donoghue as Principal Associate Deputy Attorney General. Current Principal Associate Deputy Attorney General Seth D. DuCharme has been designated as Acting U.S. Attorney for the Eastern District of New York (E.D.N.Y.), pursuant to 5 U.S.C. § 3345(a)(3). The U.S. Attorney for the Eastern District of New York is the chief federal law enforcement officer for a district comprising Brooklyn, Queens, and Staten Island in New York City, and Nassau and Suffolk Counties on Long Island, with over six million residents.
“Rich has served with distinction and integrity for many years in the Eastern District of New York, earning a well-deserved reputation throughout New York City and Long Island as an outstanding prosecutor with second-to-none judgment,” said Attorney General William P. Barr. “Throughout his time as an Assistant U.S. Attorney, Chief of the Criminal Division for E.D.N.Y., and U.S. Attorney, Rich’s intellect, decisiveness, management style, and dedication to the job has led to him successfully prosecuting many high-profile violent-crime cases (including against MS-13 and other violent gangs), drug trafficking offenses, and white-collar crimes. His experience will be a huge asset to the Office of the Deputy Attorney General, and we look forward to working with him here at Main Justice.”
Since January 2018, Richard has served as U.S. Attorney for the Eastern District of New York. During his tenure, he oversaw a number of high-profile cases of national significance. Under his leadership, his office successfully prosecuted MS-13 racketeering cases and secured convictions against Sinaloa Cartel leader Joaquin (El Chapo) Guzman, Keith Raniere, and high-ranking members of NXIVM, an organization that was engaged in sex trafficking and forced labor. Additionally, Richard has overseen the ongoing prosecutions of Chinese telecommunications company Huawei and several subsidiaries on racketeering charges and Huawei CFO Wanzhou Meng on fraud charges.
Previously, from 2000 to 2011, Richard served as an AUSA in the Eastern District of New York, including serving as Chief of the Criminal Division and Chief of the Long Island Criminal Division. While at the office, he received the New York City Bar Association’s Henry L. Stimson Medal in 2007 and the Eastern District Association’s 2009 Charles E. Rose Award. Prior to that, he served on active duty in the U.S. Army JAG Corps, where he held positions including Military Magistrate Judge, Prosecutor, Defense Counsel, and Contract Litigator. He also served as a paratrooper in the 82nd Airborne Division.
Richard received his B.A., cum laude, from Hofstra University and his J.D. from St. John’s University School of Law.
Seth DuCharme is a veteran of the U.S. Attorney’s Office for the Eastern District of New York and returns to E.D.N.Y. after serving in senior positions at Main Justice. In addition to being Principal Associate Deputy Attorney General, from March 2019 to December 2019, Seth served as a Counselor to the Attorney General. In those positions, he worked with the Attorney General and the Deputy Attorney General to supervise and coordinate the work of all of the Department’s components, including all 93 United States Attorney’s Offices. Additionally, he helped to coordinate national initiatives against transnational organized crime and violent gang elements and worked closely with the Department’s components on countering international terrorism and other national security threats.
“Seth has served the Department with distinction during his time at Main Justice,” said Attorney General William P. Barr. “He is a talented and experienced prosecutor who manages with a steady hand. His experience in prosecuting violent crime, terrorism, and public corruption, will serve him well in his return to New York to lead the office. The Deputy Attorney General and I look forward to working with him in his new role.”
Prior to his work at Main Justice, Seth was the Chief of the Criminal Division for E.D.N.Y., where he supervised investigations and prosecutions by the office across a wide range of practice areas, including corporate and securities fraud, terrorism, cybercrime, public corruption, international narcotics trafficking, civil rights violations, and violent and organized crime. He first joined E.D.N.Y. in March 2008 and served in the General Crimes, Violent Crimes and Terrorism, and National Security and Cybercrime Sections. He also served as the Office’s National Security Cyber Specialist and its representative on the Anti-Terrorism Advisory Council.
Seth is a 2003 graduate of Fordham University School of Law, where he was selected as a Stein Scholar and also as an editor on the Fordham Law Review. He graduated cum laude, Order of the Coif. Seth received his B.A. from Hamilton College in 1992, with Honors in English literature.
For more information about the U.S. Attorney’s Office for the Eastern District of New York, please visit https://www.justice.gov/usao-edny.
Asheville Man Is Sentenced to 17.5 Years for Orchestrating $22 Million Ponzi SchemeRead the Press Release
CHARLOTTE, N.C. – Hal H. Brown Jr., 70, of Asheville, N.C., was sentenced to 210 months in prison and three years of supervised release for orchestrating a $22 million Ponzi scheme, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Kenneth D. Bell also ordered Brown to pay more than $17 million as restitution.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, joins U.S. Attorney Murray in making today’s announcement.
According to filed court documents and yesterday’s sentencing hearing, from at least 2007 through September 2019, Brown fraudulently obtained more than $22.5 million from at least 60 victims, some of whom were at, or near, retirement age, by engaging in a sophisticated Ponzi scheme through his company Oodles Inc. and its various affiliates (collectively “OODLES”). Court records show that Brown was the architect and primary, if not sole, operator of the fraud, and he used his religious reputation and his respected status in the local community to con his investor-victims into trusting him with their money.
According to court documents, Brown defrauded family, friends, neighbors, and fellow church members, who invested anywhere from a few thousand to a few million dollars in OODLES. To induce victims to invest their money, Brown falsely represented that OODLES owned hundreds of millions of dollars in intellectual property, namely family entertainment shows and movies with a religious theme. As part of the scheme, Brown repeatedly lied to victims about the imminent sale of those intellectual properties to various well-known media companies. To perpetuate the fraud, Brown developed marketing material seeking investments or loans for OODLES that claimed large returns on funds invested or lent to the company.
As Brown previously admitted in court, to convince victims the scheme was legitimate and to appease investors who sought an explanation about delays in payouts, Brown provided victims with a number of fraudulent and misleading statements and fictitious information, including fake bank statements and falsified company agreements, among others. He also impersonated employees of well-known media companies and at least one law-firm to add the appearance of legitimacy to his scheme.
According to court documents and today’s sentencing hearing, Brown led an affluent lifestyle, and used a substantial part of victim money on personal expenses unrelated to purported OODLES transactions. He also used funds contributed by new investors to make payments to existing investors, commonly referred to as “Ponzi” payments.
At the sentencing hearing, the Court heard evidence, including statements from some of Brown’s victims, about the tremendous damage wrought by Brown’s fraudulent scheme. This included causing some of his victims serious substantial economic and psychological damage, robbing some of his victims’ nest eggs set aside for education and retirement, and forcing some of his victims out of retirement and back into the workforce.
On January 21, 2020, Brown pleaded guilty to securities fraud and transactional money laundering. In handing down Brown’s enhanced sentence today, the Court considered Brown’s lack of remorse and accountability and the need to protect the public from further crimes by Brown, after evidence presented at the sentencing hearing revealed that, up until very recently, Brown continued to proclaim his innocence in a video he had sent to numerous individuals with whom he had worked decades ago in a volunteer organization to solicit letters of support for his good character. Based on the false information Brown presented in his video, some of the email recipients did write letters of support for Brown, which were filed with the Court. The Court also received evidence of a recent email sent on Brown’s behalf repeating Brown’s lies about his innocence and soliciting loans to help Brown pay expenses, which Brown would purportedly repay with interest in the near future.
In imposing the lengthy sentence, Judge Bell noted that while most Ponzi schemes are horrendous, Brown’s conduct represented some of the worst fraud committed in the worst way and harming some of the most vulnerable victims. Brown was remanded into custody at the conclusion of the sentencing hearing to begin serving his sentence immediately.
In making today’s announcement U.S. Attorney Murray thanked the FBI’s Hickory Residence Agency office, which handled the investigation.
Assistant U.S. Attorneys Daniel Ryan and Mark Odulio of the U.S. Attorney’s Office in Charlotte are prosecuting the case.
In March 2019, Andrew Murray, U.S. Attorney for the Western District of North Carolina, announced the Office’s Elder Justice Initiative, which aims to combat elder financial exploitation by expanding efforts to investigate and prosecute financial scams that target seniors; educate older adults on how to identify scams and avoid becoming victims of financial fraud; and promote greater coordination with law enforcement partners. For more information please visit: /usao-wdnc/elder-justice-initiative.
Antitrust Division Applauds New International Leniency GuidelinesRead the Press Release
The Antitrust Division helped lead the International Competition Network (ICN) initiative on cross-border leniency cooperation to fight international price fixing cartels. The ICN released the “Guidance on Enhancing Cross-Border Leniency Cooperation,” a year-long effort undertaken by the ICN’s Cartel Working Group. The guidance document is designed to assist competition agencies around the globe in engaging and cooperating with their international counterparts when dealing with leniency applicants and other cooperating companies in cross-border investigations.
“Cooperation with our international partners has been a key priority of the Division and I am proud of our continued leadership in developing consensus with ICN members around this important initiative. I applaud the hard work of all of the members of the ICN Cartel Working Group who made this guidance document possible,” said Makan Delrahim, Assistant Attorney General for Antitrust.
The Antitrust Division worked with a team of antitrust agencies from around the world to develop the guidance, including the Australian Competition and Consumer Commission, Canada’s Competition Bureau, Chile’s Fiscalía Nacional Económica, Brazil’s Conselho Administrativo de Defesa Econômica, the European Commission’s Directorate-General for Competition, Hong Kong’s Competition Commission, New Zealand’s Commerce Commission, and the co-chairs of the ICN Cartel Working Group’s Subgroup 1, Turkey’s Rekabet Kurumu and Hungary’s Gazdasági Versenyhivatal.
The Antitrust Division’s efforts were led by Deputy for Criminal Enforcement, Richard Powers, and Deputy for International and Policy, Rene Augustine, and members of the International Section, including International Section Chief, Lynda Marshall, Assistant Chief Michelle Rindone, and other key staff of the Division. The Guidance on Enhancing Cross-Border Leniency Cooperation is now available on the ICN’s website. The project complements existing ICN work product on leniency, including a 2017-2018 fact-finding survey and a 2019 report entitled Good Practices for Incentivising Leniency Applications.
Anchorage Man Charged with Federal Child Pornography CrimesRead the Press Release
Anchorage, Alaska – U.S. Attorney Bryan Schroder announced that Douglass Gordon Doggett, 43, of Anchorage, has been charged with sexual exploitation of children, distribution of child pornography, receipt of child pornography, possession of child pornography, and illegal possession of a firearm as a convicted felon.
The criminal complaint alleges that, from November 2019 to May 2020, Doggett created numerous recordings of himself engaging in sexual activity with a 16-year-old girl. According to the complaint, in May 2019 Doggett and the victim began exchanging messages on Snapchat. The Snapchat activity continued until May 2020, and included the exchange of numerous videos and images depicting Doggett engaging in sexual activity with the minor.
The complaint further alleges that in May 2020, Doggett sent the victim a video of himself shooting an AR-15 at a target course. Doggett was taken into custody on July 7, 2020 and admitted to creating and exchanging the recordings recovered by law enforcement and to possessing the firearm. Doggett has multiple prior felony convictions, including a federal firearm conviction in 2010, which prohibited him from possessing firearms under federal law.
If the public has any further information regarding Doggett’s activities, please contact Anchorage FBI at (907) 276-4441.
If convicted, Doggett faces a mandatory minimum of 15 years, with a maximum of up to 30 years in federal prison, for the most serious charges alleged. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The FBI’s Child Exploitation Task Force conducted the investigation leading to the charges in this case, with the assistance of the Anchorage Police Department (APD). This case is being prosecuted by Assistant U.S. Attorney James Klugman of the U.S. Attorney’s Office for the District of Alaska.
The investigation is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices, Project Safe Childhood combines federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Altercation in North Seattle leads to federal gun chargeRead the Press Release
Seattle - A repeat offender who got into a fight with a man in North Seattle made his initial appearance today on a federal charge of being a felon in possession of a firearm, announced U.S. Attorney Brian T. Moran. CHRISTOPHER TOLLIVER, 46, was transferred to federal custody today following his arrest by Seattle Police on April 7, 2020.
According to a criminal complaint filed in the case, Seattle Police were called to the scene of a fight in the 9700 block of Woodlawn Avenue North. Witnesses reported seeing two men in an argument, with one holding a baseball bat. Police located the person with the bat, who said items had been stolen from his car the night before, and he identified TOLLIVER as the person who had stolen them. The man had confronted TOLLIVER about the theft and had carried the bat because he believed TOLLIVER carried a shotgun.
TOLLIVER had left the area on a scooter, but was quickly located by police. Nearby they found various bags matching the description of the bags that witnesses had seen in TOLLIVER’s possession at the scene of the altercation, including a backpack with a loaded, sawed-off shotgun inside.
TOLLIVER has multiple prior felony convictions from King County Superior Court, including a 2001 Manslaughter conviction, a 2011 drug conviction, and a 1995 conviction for assault with a deadly weapon. TOLLIVER is therefore prohibited from possessing firearms.
Being a felon in possession of a firearm is punishable by up to ten years in prison.
The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence and enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes. Project Guardian ensures that federal resources are directed at the criminals posing the greatest threat to our communities. More information about Project Guardian is here.
The case is being investigated by the Seattle Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). The case is being prosecuted by Assistant United States Attorney Tobias Tobler.
tolliver_complaint.pdf
Thursday 9 July 2020
Whitesville Man Sentenced to More Than 12 Years in Federal Prison for Second Child Pornography Offense and Firearm ChargeRead the Press Release
CHARLESTON, W.Va. – A Whitesville man was sentenced to federal prison for his second child pornography offense and possessing a firearm despite being a convicted felon, announced United States Attorney Mike Stuart. Daniel Runion was sentenced to 12 and a half years in prison for possession of child pornography and being a felon in possession of a firearm. The court also ordered Runion to pay $10,000 to an identified child victim in the child pornography case. Runion also was placed on 20 years of supervised release because he committed these new offenses while on supervised release stemming from a 2012 conviction of receipt of child pornography.
“Some people are just lifetime criminals. This case is sickening. Even after serving time, and while on supervised release, Mr. Runion continued in his terrible ways,” said United States Attorney Mike Stuart. “Cases like this are painful, but my office prosecutes those who exploit children.”
Runion previously admitted that he possessed child pornography on his smartphone while in Marmet. The image showed a minor female performing oral sex on an adult male. In connection with that activity, Runion also admitted that he sent a video of child pornography over Facebook to another user of the social media website.
Runion also previously admitted that despite being a convicted felon, he possessed a Smith and Wesson .38 caliber Special Airweight Revolver, which he kept in his Whitesville residence. Runion committed both new offenses within a year of being released from prison after serving a 97-month sentence and was serving a 15-year term of supervised release.
The West Virginia State Police and Homeland Security Investigations (HSI) conducted the investigation. Senior United States District Judge John T. Copenhaver, Jr. imposed the sentence. Assistant United States Attorney Kristin F. Scott handled the prosecution.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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U.S. Attorney Joins District Attorneys to Use Technology to Help Victims of Child Exploitation and Domestic ViolenceRead the Press Release
SACRAMENTO, Calif. — The District Attorneys of Alameda, Sacramento, and San Diego counties together with the U.S. Attorney’s Office for the Eastern District of California launched an online outreach campaign to help victims of domestic violence and child exploitation and abuse during the COVID-19 pandemic.
The outreach campaign was created to combat unintended consequence of COVID-19 public health measures — an alarming rise in domestic violence with victims trapped at home with their abusers, and in child exploitation as more children are pushed online for longer periods of time with school and summer camp closures. The National Center of Missing and Exploited Children (NCMEC) runs the CyberTipline, a centralized, national reporting system for the online exploitation of children. In March 2019, NCMEC received 983,734 reports and in April 2019, NCMEC received approximately 1 million reports through its CyberTipline. In March 2020, NCMEC received over 2 million reports, 4.2 million reports in April 2020.
“Our shared goal in this campaign is to help children who are being exploited by online predators, and other child abuse and domestic violence victims who are isolated and at risk during this pandemic by using one of the only available means to reach them — technology,” said U.S. Attorney Scott. “Every time one of our posts is seen or shared, it’s a chance to save a life.”
The public awareness messages are visible on Facebook and other social media platforms with a new post made each day for two weeks, with the ad campaign continuing to run through July. The posts provide information for victims with resources, such as 24-hour hotlines and other services vital to reporting abuse. The posts also provide tips for concerned friends, relatives, and educators on how they can help victims of abuse. This outreach campaign has reached more than 142,000 people, and will continue to reach more people throughout July.
A Facebook Live panel on July 10 featuring U.S. Attorney Scott and the District Attorneys of Alameda, Sacramento, and San Diego counties will discuss the current challenges facing victims and survivors of domestic violence and child abuse, and will be moderated by Childhelp, a nonprofit organization aiding victims of child abuse.
Two Pennsylvania-Based Doctors and Five Others Charged in Genetic Testing Kickback and Bribery SchemesRead the Press Release
NEWARK, N.J. – Seven people have been charged for their roles in conspiracies to pay and receive kickbacks in exchange for ordering genetic tests, U.S. Attorney Craig Carpenito announced today.
Three complaints were unsealed today charging the following individuals with conspiring to violate the Federal Anti-Kickback Statute: Lee Besen, 64, of Waverly, Pennsylvania, is charged in two separate complaints, one with Kimberly Schmidt, 45, of Moscow, Pennsylvania, and the other with Terri Haines, of Kennett Square, Pennsylvania. The third complaint charges Yitzachok “Barry” Kurtzer, 60, and Robin Kurtzer, 59, both of Monsey, New York; Amber Harris, 28, of Scranton, Pennsylvania; and Shanelyn Kennedy, 25, of Scranton, Pennsylvania. All of the defendants except Robin Kurtzer made their initial appearances by videoconference before U.S. Magistrate Judge Leda D. Wettre. Robin Kurtzer will surrender at a later date.
“As alleged in the criminal complaints, these defendants engaged in a long-running and complex scheme to rip off Medicare to the tune of millions of dollars,” U.S. Attorney Carpenito said. “They turned patients into human ATMs, generating cash payments for medical testing and other procedures. Those who offer or receive bribes and kickbacks for patient care will be prosecuted by this Office and swiftly brought to justice.”
“Health Care fraud costs our country billions each year, which is not just absorbed, it is passed down to the consumer,” Acting Special Agent in Charge Joe Denahan of the Newark FBI Field Office said. “Today’s arrest is a direct result of the commitment by our federal and state partners to aggressively pursue and charge those who willingly defraud our citizens of valuable resources that are in high demand. We will remain vigilant to assure that unscrupulous individuals are brought to justice.”
“Our medical system is built on trust,” Michael Montanez, Special Agent in Charge, IRS - Criminal Investigation, Newark Field Office, said. “When doctors take bribes and kickbacks that trust is broken. The allegations in the criminal complaints portray doctors who ordered genetic tests for the sole purpose of cheating Medicare and putting cash in their own pockets.”
“Scams, such as the alleged, are hardly victimless,” Maureen R. Dixon, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services, Philadelphia Regional Office, said. “These types of fraudulent activities come at a significant cost to the taxpayer and patients who were the target of these procedures. We will continue working with our law enforcement partners to stop kickbacks that threaten the integrity of government health programs.”
According to documents filed in this case and statements made in court:
Besen and Kurtzer were both primary care physicians with separate offices in the Scranton area. From at least 2018, Besen and Kurtzer each began accepting monthly cash kickbacks and bribes in exchange for collecting DNA samples from Medicare patients and sending them for genetic tests to clinical laboratories in New Jersey and Pennsylvania. The cash kickbacks ranged from $500 to $5,000 and Besen and Kurtzer typically accepted the cash in their respective offices, at times behind locked doors. At one point, Kurtzer and his wife, Robin, complained that they were not getting paid enough and renegotiated a higher kickback and bribery fee.
When Besen and Kurtzer did not receive their kickback and bribe payments, the volume of genetic tests they ordered dipped. But, when they accepted those payments, that volume typically increased because, as Besen said in a recorded conversation, “Greenbacks speak.”
Besen and Kurtzer were also recorded receiving and discussing many of their kickback and bribe payments. After Kurtzer accepted a $5,000 cash kickback, he counted the money and said, “Perfect. Didn’t short me.” Besen discussed the kickback and bribe payments as “vigs” – slang for fees collected by bookies.
Besen frequently sought ways to make more money. At one point, he proposed adding to the scheme by collecting “CGx” cancer screening tests from Medicare patients, sending the tests to a new lab, and then splitting lucrative sales commissions that the lab paid out – ranging up to $2,500 per test. Although Besen had not previously ordered CGx tests for any of his patients, once he realized there was money to be made, he said in a recording that his office was “totally open now for CGx.” He was also recorded saying that he hoped the money he made from CGx tests would help him “retire early.” Kurtzer and his staff similarly started ordering CGx tests in order to make more money off of kickbacks and bribes.
Even as the ongoing COVID-19 pandemic substantially reduced their in-patient visits, Besen and Kurtzer continued with their schemes. They worked with their staffs to generate more genetic tests from Medicare patients. Kurtzer went from receiving hand-delivered cash kickbacks and bribes to accepting his payments by wire and through a cell phone money-transfer app. Besen was recorded opining that it was “nuts” for Kurtzer to create that kind of paper trail. Instead, Besen accepted his kickback and bribe payment in cash, in a fast food parking lot. Leading up to that payoff, Besen was recorded making veiled threats and referencing the mafia, while also expressing concern about being caught on camera accepting kickbacks and bribes. Despite such concerns, he followed through with the meeting because, as he was recorded saying, he wanted to collect “greenbacks” for his “pool house.”
Neither doctor acted alone while perpetrating their bribery and kickback schemes. Besen enlisted Schmidt, his employee, who helped him with the scheme by preparing paperwork for the genetic tests. Schmidt also accepted kickbacks and bribes that were calculated based on the volume of genetic tests that Besen generated.
Kurtzer included his wife and his employees Harris and Kennedy, in the scheme. Robin Kurtzer helped negotiate the terms of the kickback and bribery payments, while Harris and Kennedy helped collect the DNA swabs in exchange for also receiving kickbacks and bribes.
As a result of these schemes, Medicare was billed over $1 million for genetic tests generated from Besen’s medical practice, and over $1.3 million for tests generated from Kurtzer’s practice.
Separately, Besen and Haines entered into a different kickback and bribery scheme involving “health fairs.” Haines was not a health care provider, but made a living soliciting and collecting CGx genetic screening tests from Medicare patients at health fairs, and then sending those tests to a lab in exchange for commissions. She was not authorized to order those CGx tests without a doctor’s sign-off. As a result, Haines paid Besen a kickback and bribe to use his name and medical credentials to order CGx tests for the Medicare patients she met at fairs, even though Besen never actually attended any of the health fairs and never met the patients for whom the genetic tests were ordered. Medicare was billed $1,936,795 for genetic tests that resulted from this scheme.
Conspiracy to violate the federal anti-kickback statute is punishable by a maximum of five years in prison and a fine of $250,000, or twice the gross gain or loss derived from the offense, whichever is greater.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Acting Special Agent in Charge Denahan in Newark; IRS-Criminal Investigation, under the direction of Special Agent in Charge Montanez in Newark; and U.S. Department of Health and Human Services, Office of Inspector General, Philadelphia Regional Office, under the direction of Special Agent in Charge Dixon, with the investigation leading to the charges. He also thanked the FBI Scranton Field Office, FBI Philadelphia Division and the Pennsylvania Attorney General’s Office for their assistance.
The government is represented by Assistant U.S. Attorney Joshua L. Haber of the Health Care Fraud Unit in the Criminal Division, Newark.
The charges and allegations in the complaints are merely accusations, and the defendants are presumed innocent unless and until proven guilty.