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Thursday 9 July 2020
Elizabeth Man Sentenced for Possession of Material Depicting Exploitation of ChildrenRead the Press Release
PITTSBURGH, PA - A resident of Elizabeth, Pennsylvania, has been sentenced in federal court to 87 months in prison followed by 5 years of supervised release on his conviction of possession of material depicting the exploitation of children, United States Attorney Scott W. Brady announced today.
United States District Judge Cathy Bissoon imposed the sentence on Ernest Gill, 57, of Elizabeth, PA.
According to information presented to the court, on July 20, 2017, law enforcement executed a search warrant on Gill’s residence and recovered a Samsung cell phone, which contained a collection of child pornography. A subsequent search of Gill’s Dropbox and Yahoo accounts also revealed child pornography. In addition to possessing child pornography, the Court was informed that Gill distributed child pornography via Skype, Chatsetp, Dropbox and email.
Assistant United States Attorney Lee J. Karl prosecuted this case on behalf of the government.
United States Attorney Brady commended the Federal Bureau of Investigation, the Allegheny County District Attorney Investigations Unit, and the Allegheny County Police Department for the investigation leading to the successful prosecution of Gill.
Driver sentenced in deadly Robstown crashRead the Press Release
CORPUS CHRISTI, Texas - The lead defendant convicted for his role in the smuggling conspiracy that left six people dead in June 2019 has been ordered to federal prison, announced U.S. Attorney Ryan K. Patrick.
Mexican citizen Ivan Dario Puga-Moreno, 31, pleaded guilty Feb. 2 to conspiracy to transport undocumented aliens into the United States causing death or serious bodily injury.
Today, U.S. District Judge Nelva Gonzales Ramos upwardly departed from the U.S. Sentencing guidelines and ordered him to serve a total of 120 months in prison. Not a U.S. citizen, he is expected to face removal proceedings following the term of imprisonment. At the hearing, the court heard Puga-Moreno was the driver of the vehicle that caused the death of six and serious bodily injury of 10 more. After the crash, Puga-Moreno refused to call 911 for assistance. Instead, he fled the scene.
On June 5, 2019, authorities discovered a wrecked Chevrolet Suburban in a ditch in Robstown. Six people were found deceased at the scene with 10 more requiring hospitalization due to their significant injuries. Puga-Moreno had been attempting to smuggle a total of 18 undocumented immigrants with brush guide Agustin Gutierrez-Gonzalez who was from his hometown in Mexico. Further investigation revealed he had fled the scene of the accident with the assistance of Gutierrez-Gonzalez, 33, Elena Ruiz, 35, of Corpus Christi, and Mayra Chaver, 32, of Honduras.
At the time of his plea, Puga-Moreno admitted he was driving the vehicle and was evading police. He fled to Houston in an attempt to avoid arrest, but was subsequently apprehended June 6
Ruiz, Chaver and Gutierrez-Gonzalez also pleaded guilty, admitting they helped Puga-Moreno flee and evade arrest after the crash. They are set for sentencing at a later date.
Immigration and Customs Enforcement’s Homeland Security Investigations, Border Patrol, Corpus Christi Police Department and Nueces County Sherriff’s Office conducted the investigation.
Assistant U.S. Attorney Jeremy Carl Fugate is prosecuting the case.
Dominican National Pleads Guilty to Identity Theft ChargesRead the Press Release
BOSTON – A Dominican national pleaded guilty today in connection with using the identity of a U.S. citizen.
Roberto Melo Guerrero, 39, a Dominican national who formerly resided in Lawrence, pleaded guilty to one count of false representation of a Social Security number and one count of making a false statement relating to a health care benefit program. U.S. District Court Judge Denise J. Casper scheduled sentencing for Sept. 9, 2020. Melo Guerrero was arrested in December 2019 and has been detained since that time.
Melo Guerrero used the name and identifiers of a U.S. citizen for at least 15 years, including to obtain a Massachusetts driver’s license and to apply for MassHealth benefits. MassHealth then provided benefits valued at $18,505 to Melo Guerrero. In addition, on multiple occasions, Melo Guerrero was arrested and charged in Massachusetts with drug trafficking offenses under the name of this U.S. citizen.
The investigation was conducted by Homeland Security Investigation’s Document and Benefit Fraud Task Force (DBFTF), a specialized investigative group comprised of personnel from various state, local and federal agencies with expertise in detecting, deterring and disrupting organizations and individuals involved in various types of document, identity and benefit fraud schemes.
The charges of false representation of a Social Security number and false statement relating to a health care benefit program provide for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today. Valuable assistance was provided by the U.S. Department of State, Diplomatic Security Service; U.S. Department of Labor, Office of Inspector General; Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Office; U.S. Department of Health & Human Services, Office of Inspector General; Massachusetts State Police; HSI Attaché in the Dominican Republic; U.S. Postal Inspection Service; and U.S. Citizenship and Immigration Services. Assistant U.S. Attorney Bill Abely, Deputy Chief of Lelling’s Major Crimes Unit is prosecuting the case.
Developer Charged with Conspiracy to Defraud First NBC Bank over $6 MillionRead the Press Release
NEW ORLEANS – The United States Attorney’s Office announced that WARREN G. TREME (“TREME”), age 55, a resident of Metairie, Louisiana, was charged July 8, 2020 with conspiracy to defraud First NBC Bank, the New Orleans-based bank that failed in April 2017.
According to the Bill of Information, from in or around 2008 through April 2017, TREME had a banking relationship with First NBC Bank, individually and through various entities he controlled. TREME also co-owned several entities with Bank President A. Because of this conflict of interest, Bank President A should not have been involved with TREME’s loans. However, Bank President A exercised authority over TREME’s loans with Bank Officer B. Throughout his borrowing relationship at First NBC Bank, TREME lacked sufficient income and cash flow from his businesses to pay his loans and personal expenses. Bank President A and Bank Officer B disguised TREME’s true financial condition by making new loans to pay TREME’s existing loans.
The Bill of Information further describes a scheme by Bank President A and Bank Officer B to take $400,000 from TREME’s business partners as part of a settlement. Rather than using the $400,000 to pay down an outstanding loan debt owed by TREME and his business partners, Bank President A and Bank Officer B gave $300,000 to TREME. TREME spent the money on gambling, a trip to the Caribbean, and expenses related to a real estate development company TREME co-owned with Bank President A. During a subsequent Board meeting, Bank President A and Bank Officer B falsely stated that the $300,000 was used to pay down the outstanding loan debt owed by TREME and his business partners.
TREME is charged in the Bill of Information with one count of conspiracy to commit bank fraud, in violation of Title 18, United States Code, Sections 1344 and 1349. The maximum penalties that may be imposed upon conviction are thirty years in prison; a fine of $1,000,000, or the greater of twice the gain to TREME or twice the loss to any victim; up to five years of supervised release; and a $100 mandatory special assessment.
The United States Attorney’s Office stated that a Bill of Information is merely an accusation and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case is being investigated by the Federal Bureau of Investigation; the Federal Deposit Insurance Corporation, Office of Inspector General; and the Board of Governors of the Federal Reserve System, Consumer Financial Protection Bureau, Office of Inspector General. Assistant U.S. Attorneys Sharan E. Lieberman, Nicholas D. Moses, Matthew R. Payne, and J. Ryan McLaren are in charge of the prosecution.
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Detroit Man Pleads Guilty to Possessing Heroin with Intent to DistributeRead the Press Release
CHARLESTON, W.Va. – A Detroit man pled guilty to a federal drug charge, announced United States Attorney Mike Stuart. Darnell Smith, 26, pled guilty to possession with intent to distribute heroin.
“Another Detroit drug dealer at the center of violence in Charleston,” said United States Attorney Mike Stuart. “My office’s unprecedented efforts are making our streets and families safer. I hold out-of-state dealers like Smith accountable every single day.”
Smith admitted that on September 12, 2016, law enforcement officers found him in possession of 20 individually packaged bags of heroin when he entered a hospital after being shot in the head. Smith admitted that he intended to sell the drugs for money. He faces up to 20 years in prison when he is sentenced on October 3, 2020.
The case was investigated by the Charleston Police Department. Assistant United States Attorney Chris Arthur is handling the prosecution. United States District Judge Joseph R. Goodwin presided over the plea hearing.
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Detroit Man Pleads Guilty to Possessing Heroin and Oxycodone with Intent to DistributeRead the Press Release
CHARLESTON, W.Va. – A Detroit man pled guilty to a federal drug charge today, announced United States Attorney Mike Stuart. Carlton Carter, 27, pled guilty to possession with intent to distribute heroin and oxycodone.
“We are stopping the flow of drugs coming from out-of-state poison peddlers into our communities,” said United States Attorney Mike Stuart. “The Detroit drug dealers who come into my district are prosecuted vigorously and aggressively to the fullest extent of the law.”
Carter admitted that on July 10, 2019, law enforcement officers from the Metropolitan Drug Enforcement Network Team (MDENT) found him in possession of approximately 30 grams of heroin and 114 oxycodone 30 mg pills after they stopped a vehicle in which he was a passenger in Charleston. Carter admitted he possessed the drugs with intent to distribute them.
Carter faces up to 20 years in prison when he is sentenced on October 13, 2020.
MDENT conducted the investigation. United States District Judge Joseph R. Goodwin presided over the plea hearing. Assistant United States Attorney Negar M. Kordestani is handling the prosecution.
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DeCavalcante Associate Sentenced to 76 Months in Prison for Cocaine Distribution and Gun PossessionRead the Press Release
NEWARK, N.J. – An associate of the DeCavalcante crime family was sentenced today to 76 months in prison for possessing cocaine with the intent to distribute and possession of a firearm during the course of a drug crime, U.S. Attorney Craig Carpenito announced.
Mario Galli III, 28, of Toms River, New Jersey, previously pleaded guilty before Judge Anne E. Thompson in Trenton federal court to an information charging one count of possession with intent to distribute cocaine and one count of possession of a FEG 9mm Model PGK-9HP gun, loaded with 12 rounds of ammunition, by a convicted felon in furtherance of a drug trafficking crime. Judge Thompson imposed the sentence by videoconference today.
According to documents filed in this case and statements made in court:
Galli was previously convicted in 2016 for conspiracy to distribute in excess of 500 grams of cocaine and served 30 months in federal prison on that charge. He was placed on supervised release in 2019 and then arrested in Ocean County in September 2019. Investigators from the Ocean County Prosecutor’s Office executed search warrants on Galli’s residence and the residence of a conspirator, finding collectively 400 to 500 grams of cocaine, the weapon and ammunition.
In addition to the prison term, Judge Thompson sentenced Galli to three years of supervised release.
U.S. Attorney Carpenito credited special agents of the FBI’s Organized Crime Task Force under the direction of Acting Special Agent in Charge Joe Denahan in Newark; and investigators from the Ocean County Prosecutor’s Office, under the direction of Prosecutor Bradley D. Billhimer, with the investigation leading to today’s sentencing.
The government is represented by Senior Litigation Counsel V. Grady O’Malley of the U.S. Attorney=s Office’s Organized Crime/Gangs Unit in Newark.
Convicted Felon Sentenced to over 7 Years for Possession of Firearm During Domestic Violence Incident and Possession of Ammunition After Threatening and Evading Law EnforcementRead the Press Release
JACKSON, TN - Shannon Pettigrew, 35, has been sentenced to 92 months in federal prison for being a felon in possession of firearm and being a felon in possession of ammunition on two separate occasions. D. Michael Dunavant, U.S. Attorney announced the sentence today.
According to the information presented in court, on December 22, 2017, officers with the Benton County Sheriff's Office responded to a 911 call indicating a man was going to kill his girlfriend. At the house they found the defendant, his girlfriend and two children. Pettigrew had his girlfriend by the neck and refused commands. Just before the woman and children were released, the girlfriend yelled to officers to back up, because Pettigrew had a gun.
After the standoff, law enforcement recovered a 20 gauge sawed-off shotgun in the residence with a shell casing. The victim confirmed to law enforcement that she noticed the firearm in the house earlier that day and assumed the defendant went to get it because he was going to call the cops and "commit suicide by cop." A neighbor also told law enforcement that she heard a shot at Pettigrew’s house and saw him with an object believed to be a shotgun.
On October 5, 2018, officers with the 24th Judicial District Drug Task Force and the Benton County Sheriff's Office were conducting an undercover operation when Pettigrew drove by their unmarked car in a parking lot. One officer gestured and Pettigrew pulled out a black pistol and pointed it at the officers. Being familiar with the defendant’s previous felony convictions, the officers attempted to apprehend the defendant.
A car chase ensued with the defendant crashing his vehicle; officers saw something thrown from the vehicle. Officers recovered a box from a Phoenix Arms Black pistol with two rounds of .22 LR ammunition. They further searched the area along the roadway traveled during the chase, but were unable to locate the firearm. Officers did execute a search warrant for Pettigrew's phone and discovered a photo of a black .22 LR pistol matching the description of the firearm pointed at the officers.
Pettigrew has prior felony convictions for Grand Theft Auto, False Imprisonment, Escape, and Evading Arrest, and was on state probation and bond release status for new criminal offenses at the time of these federal firearms offenses. As a result of his prior felony conviction history, Pettigrew is prohibited by federal law from possessing firearms or ammunition.
On July 8, 2020, U.S. District Court Judge J. Daniel Breen sentenced Pettigrew to 92 months in federal prison followed by 3 years supervised release. There is no parole in the federal system.
U.S. Attorney D. Michael Dunavant said, "Violent crime committed by felons with firearms affects and endangers all communities in West Tennessee, both urban and rural. Pettigrew’s brazen and disturbing conduct terrorized his domestic violence victims and endangered law enforcement officers. Now he will have plenty of time in federal prison to suffer with the consequences of his recidivist criminal conduct, and the citizens of Benton County and West Tennessee will be safer for it."
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); Benton County Sheriff’s Department; and the 24th Judicial District Drug Task Force.
Assistant U.S. Attorney Hillary Lawler Parham prosecuted this case on behalf of the government.
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Charleston Man Pleads Guilty to Methamphetamine and Firearm ChargesRead the Press Release
CHARLESTON, W.Va. – A Charleston man pled guilty today to federal charges related to the trafficking of methamphetamine and the possession of a firearm, announced United States Attorney Mike Stuart. Rahmell Rashaad Thomas, 31, pled guilty to distribution of methamphetamine, possession with intent to distribute methamphetamine, and being a felon in possession of a firearm.
“Convicted felon. Gun. Trafficking a significant amount of meth in the Charleston area,” said United States Attorney Mike Stuart. “With each and every case like this we prosecute, we make our communities safer. And, trust me, our communities are far, far safer than the day I took the oath of office.”
Thomas admitted that he sold approximately four ounces of methamphetamine to a confidential informant from his residence in Charleston on March 5, 2020. Shortly after that transaction, law enforcement officers obtained a search warrant for the same residence and conducted a search. Approximately 341 additional grams of methamphetamine were located inside along with a Lorcin .380 semi-automatic pistol and United States currency. Thomas later admitted to possessing those items and to selling methamphetamine in the Charleston area for at least three months prior to his arrest. Thomas further admitted that he would obtain methamphetamine in one pound increments from a source in Morgantown which he would then bring back to Charleston to sell. At the time of this incident, Thomas was a convicted felon due to a conviction for attempted assault in the second degree in New York.
Thomas faces up to 50 years in prison when sentenced on November 10, 2020.
The Charleston Police Department, along with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the United States Marshals Service, conducted the investigation. United States District Judge Irene C. Berger presided over the hearing. Assistant United States Attorney Jeremy B. Wolfe is handling the prosecution.
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Bureau of Prisons Correctional Officer Indicted for Sexually Assaulting an InmateRead the Press Release
TALLAHASSEE, FLORIDA – A federal grand jury in Tallahassee returned an indictment on July 7, 2020, charging Phillip Golightly, 38, of Quincy, Florida, with two counts of Sexual Abuse of a Ward. Golightly, a U.S. Bureau of Prisons Correctional Officer at Federal Correctional Institution Marianna, is charged with sexually assaulting an inmate while on temporary duty at Federal Correctional Institution Tallahassee. The indictment was announced by Lawrence Keefe, United States Attorney for the Northern District of Florida.
The indictment alleges that in November 2019, while on-duty as a Correctional Officer, Golightly sexually assaulted a female inmate at Federal Correctional Institution Tallahassee, while the inmate was under Golightly’s custodial, supervisory, and disciplinary authority.
The jury trial for Golightly is scheduled for August 24, 2020, at 8:15 a.m. before the Honorable Chief U.S. District Judge Mark E. Walker at the United States Courthouse in Tallahassee. If convicted, Golightly faces a maximum sentence of 15 years in federal prison per count.
Assistant United States Attorney Lazaro P. Fields is prosecuting the case, which resulted from an investigation by the Department of Justice Office of Inspector General.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the U.S. Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Press Release - GolightlyBosnian National Sentenced for Providing Material Support to TerroristsRead the Press Release
St. Louis, MO – Nihad Rosic, aka Yahya Abuayesha Mudzahid, 32, of Utica, New York, appeared today before U.S. District Judge Catherine D. Perry. Rosic was sentenced to 96 months in prison for conspiring to provide material support to terrorists and providing material support to terrorists. Rosic was remanded to the custody of the U.S. Marshal to begin his sentence immediately.
According to court documents, Nihad Rosic, Armin Harcevic, Ramiz Zijad Hodzic, his wife Sedina Unkic Hodzic, Jasminka Ramic and Mediha Medy Salkicevic conspired with others to support the activities of Abdullah Ramo Pazara and others, including a conspiracy to commit outside the United States an act that would constitute the offense of murder or maiming if committed in the special maritime and territorial jurisdiction of the United States. Rosic intended to and did provide support and resources to Pazara, knowing that he and his co-conspirators would use the support and resources in furtherance of their combat against Syrian government forces and others. Rosic’s support consisted of money, which was used by his co-conspirators to purchase supplies such as U.S. military uniforms, rifle scopes, combat boots, tactical gear, clothing, firearms accessories, range finders, and other supplies useful to fighters engaged in combat in Syria and elsewhere.
Co-defendant Sedina Unkic Hodzic is awaiting sentencing; Armin Harcevic was sentenced to 66 months in prison; Ramiz Zijad Hodzic was sentenced to 96 months in prison; Jasminka Ramic was sentenced to 36 months in prison and Mediha Medy Salkicevic was sentenced to 78 months in prison.
This case was investigated by the St. Louis FBI’s Joint Terrorism Task Force, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), U.S. Postal Inspection Service, St. Louis Metropolitan and St. Louis County Police Departments. The case is being prosecuted by Assistant U.S. Attorneys Matthew Drake, Howard Marcus and Kenneth Tihen of the Eastern District of Missouri and Trial Attorneys Dave Smith and Danielle Rosborough of the Department of Justice’s Counterterrorism Section.
American Contractor Charged as Part of Theft Ring Responsible for Stealing Government Equipment from U.S. Military Base in AfghanistanRead the Press Release
A three-count indictment was returned today in the Eastern District of Virginia, charging an American military contractor for her alleged role in a theft ring on a military installation in Kandahar, Afghanistan.
Acting Assistant Attorney General Brian C. Rabbit of the Justice Department’s Criminal Division, U.S. Attorney G. Zachary Terwilliger of the Eastern District of Virginia, and Special Inspector General for Afghanistan Reconstruction (SIGAR) John F. Sopko made the announcement.
The indictment charges Varita V. Quincy of Snellville, Georgia, with one count of conspiracy to defraud the United States and to commit theft of property of a value to the United States; one count of theft of property of value to the United States, and one count of making false official statements.
According to the indictment, between late 2014 and mid-2015, Quincy, Larry J. Green of Chesapeake, Virginia, and others conspired to steal equipment and military material while working for a government contractor operating on Kandahar Airfield, in Kandahar, Afghanistan. Kandahar Airfield was used by U.S. military forces to support missions throughout Afghanistan. As alleged in the indictment, co-conspirator Green identified items of value he wanted to steal, such as vehicles, generators, refrigerators, and other equipment. He then negotiated the sale of those items with persons outside of the installation.
Green pleaded guilty Wednesday to participating in this theft ring. As a critical part of the conspiracy, Quincy created fictitious documents that allowed unknown and unvetted persons to access the installation and to remove the stolen items from the installation, thereby defeating vital security protocols and placing civilian and military personnel at risk. Quincy shared in the profits of the stolen items.
SIGAR investigated the case with help from Army Criminal Investigation Command (CID) and the 939th Military Police Detachment of the Indiana Army National Guard. Trial Attorneys Sasha N. Rutizer of the Criminal Division’s Human Rights and Special Prosecutions Section, Rosaleen O’Gara of the Criminal Division’s Public Integrity Section, and Assistant U.S. Attorney Joseph Kosky of the Eastern District of Virginia are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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.
Aggravated Assault on Menominee Indian Reservation Leads to Prison SentenceRead the Press Release
Matthew D. Krueger, U.S. Attorney for the Eastern District of Wisconsin, announced that a man received a sentence related to his involvement in an October 2019 aggravated assault on the Menominee Indian Reservation. Frank J. Sackatook III (age: 38), formerly of Neopit, will serve 90 months in prison, followed by 36 months on supervised release. Senior United States District Judge William C. Griesbach imposed the sentence on July 9, 2020 in United States District Court in Green Bay. Sackatook pleaded guilty on February 4, 2020, to Assault Resulting in Serious Bodily Injury in violation of Title 18, United States Code, Sections 113(a)(6) and 1153(a).
According to court records, an investigation revealed that on or about October 17, 2019, Sackatook struck a woman with his fists and repeatedly kicked her in the head with steel-toed boots, causing her to sustain bleeding on the brain requiring multiple hospitalizations, surgical intervention, and lasting effects. The incident occurred on the side of a road inside the Menominee Indian Reservation.
In sentencing Sackatook, Judge Griesbach noted the “brutality” of the crime and pointed out that the assault was unprovoked. Judge Griesbach also remarked upon Sackatook’s prior history of violence and the need to deter others from similar conduct.
The Menominee Tribal Police Department and Federal Bureau of Investigation investigated the case, which Assistant United States Attorney Andrew J. Maier prosecuted.
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Activity in the United States Attorney's OfficeRead the Press Release
Federal District Court Judge Alan B. Johnson sentenced WAYNE EMERSON NIXON, 42, of Pinedale, Wyoming on July 7, 2020 for distribution of child pornography. Nixon was arrested in Pinedale, Wyoming. He received sixty months of imprisonment, to be followed by eighty-four months of supervised release, and ordered to pay a $100.00 fine, restitution in the amount of $5,000.00. The Wyoming Division of Criminal Investigation investigated this case.
This case is part of Project Safe Childhood (PSC), a nationwide initiative to combat the growing epidemic of child sexual exploitation an abuse launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims.
Federal District Court Judge Alan B. Johnson sentenced IVAN ARMANDO GARCIA, 23, of Los Angeles, California on July 1, 2020 for possession with intent to distribute heroin. Garcia was arrested in Sweetwater County, Wyoming. He received one hundred twenty months of imprisonment, to be followed by sixty months of supervised release, and ordered to pay restitution in the amount of $300.00. The Sweetwater County Sheriff’s Office and the DEA investigated this case.
"Operation Wu Block" Defendant Pleads GuiltyRead the Press Release
ATHENS, Ga. – A defendant charged in an ongoing, large-scale drug trafficking investigation dubbed “Operation Wu Block,” has pleaded guilty for her crime, said Charlie Peeler, the U.S. Attorney for the Middle District of Georgia.
Latasha Bishop, 33, of Athens-Clarke County, pleaded guilty to one count distribution of methamphetamine before U.S. District Judge C. Ashley Royal on Wednesday, July 8. Bishop faces a maximum 20 years in prison, a $1,000,000 fine and four years supervised release. Her sentencing date has not been scheduled. A total of 68 individuals were charged with related drug and gun crimes as a result of “Operation Wu Block.” To date, 45 have pleaded guilty and have been sentenced or are awaiting sentencing. There is no parole in the federal system. Lazaro Hernandez, 28, of Cobb County, remains at-large, charged with conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine and possession with intent to distribute heroin.
“We are moving swiftly to crack down on criminals involved in pushing methamphetamine into our communities across the Middle District of Georgia,” said U.S. Attorney Charlie Peeler. “I want to commend the excellent work of all the agencies involved in this massive OCDETF investigation. Meth suppliers and sellers will face federal prosecution, and the possibility of up to life in prison without parole, for choosing to traffic meth.”
“Street drug gangs infest our communities with more than illicit drugs like ‘Meth,’ as was the case in this investigation. They also spread gun violence and death. Operation Wu Block united federal, state and local law enforcement authorities in an effort to dismantle and destroy violent drug organizations that plagued a number of communities in middle Georgia. This case exemplifies how success can be achieved when law enforcement confront, engage and remove violent drug traffickers,” DEA Atlanta Field Division Special Agent in Charge Robert J. Murphy.
"This investigation resulted in the removal of drugs, guns, money and over 60 defendants from our streets, which had an immediate impact on our communities," said Chris Hacker, Special Agent in Charge of FBI Atlanta. "Bishop is another of those defendants who is now being held accountable for endangering the people who live in those communities."
“Operation Wu Block” is a multi-year Organized Crime Drug Enforcement Task Force (OCDETF) investigation conducted by the Drug Enforcement Administration (DEA) Macon Resident Office, FBI Middle Georgia Safe Streets Gang Task Force, Athens-Clarke County Police Department, Clarke County Sheriff’s Office, Hart County Sheriff’s Office, Madison County Sheriff’s Office, Oconee County Sheriff’s Office, Oglethorpe County Sheriff’s Office, Georgia Department of Corrections and Northeast Regional Drug Task Force in partnership with the U.S. Attorney’s Office for the Middle District of Georgia.
“Operation Wu Block” resulted in the seizure of more than 58 kilograms of methamphetamine, more than two kilograms of heroin, 31 firearms and $56,000. 19 federal indictments charging a total of 68 defendants were returned by federal grand juries in the Middle District of Georgia. The charges range from conspiracy to possess with intent to distribute methamphetamine with a maximum sentence of life in prison; conspiracy with intent to distribute heroin with a maximum sentence of 40 years imprisonment; possession with intent to distribute methamphetamine or heroin with sentences ranging from a maximum twenty years to life in prison; distribution of methamphetamine or heroin with sentences ranging from twenty years to life in prison, depending on the amount of controlled substances charged; and, possession of a firearm in relation to drug trafficking with a maximum sentence of life in prison. An indictment is only an allegation of criminal conduct, and the defendants are presumed innocent until and unless proven guilty in a court of law beyond a reasonable doubt. The defendants, along with their current case status, are as follows (last name, first name):
- Arguelles, Joey, 24, Hart County (pleaded guilty, awaiting sentencing)
- Baza, Frankie, 32, Gwinnett County
- Bellew, Jason Monroe, 35, Elbert County (sentenced)
- Bennett, Byron, 41, Athens-Clarke County (awaiting sentencing)
- Bentley, Peggy, 48, Oconee County (pleaded guilty, awaiting sentencing)
- Bishop, Latasha, 33, Athens-Clarke County (pleaded guilty, awaiting sentencing)
- Booker, Chuckferrio, 30, Athens-Clarke County (sentenced)
- Bray, Benjamin, 23, Madison County (sentenced)
- Carter, Haley, 21, Athens-Clarke County
- Casey, Jason, 38, Oconee County (sentenced)
- Clouse, Justin, 38, Athens-Clarke County (pleaded guilty, awaiting sentencing)
- Coker, Joshua Wayne, 38, Hart County (sentenced)
- Coker, Larry Thomas, 34, Oconee County (pleaded guilty, awaiting sentencing)
- Cook, Steven Mark, 32, Athens-Clarke County
- Cruz Sanchez, Mishel, 29, Gwinnett County
- Davis, Ashley, 26, Madison County (pleaded guilty, awaiting sentencing)
- Duarte, Jasmin, 26, Oconee County (sentenced)
- Eddy, Crystal, 38, Athens-Clarke County (pleaded guilty, awaiting sentencing)
- Elliott, Jeri Renee, 49, Athens-Clarke County (sentenced)
- Espino, Juan, 45, Oconee County (sentenced)
- Fain, Angela, 48, Franklin County (pleaded guilty, awaiting sentencing)
- Fain, William, 55, Franklin County (sentenced)
- Fowler, Thomas Joey, Hart County
- Gee, Jennifer, 33, Athens-Clarke County (pleaded guilty, awaiting sentencing)
- Gowen, Howard Burnham, 50, Athens-Clarke County (pleaded guilty, awaiting sentencing)
- Green, Jonathan, 34, Athens-Clarke County (sentenced)
- Gresham, Cierra, 23, Athens-Clarke County
- Hancock, Maurice, 46, Barrow County (pleaded guilty, awaiting sentencing)
- Hernandez, Lazaro, 28, Cobb County (fugitive)
- Hicks, Bruce, 39, Madison County (sentenced)
- Houseman Kristy Lynn, 40, Athens-Clarke County
- Howard, William Mathew, 45, Arlington, Virginia (sentenced)
- Huckeba, Russel, 40, Gwinnett County (pleaded guilty, awaiting sentencing)
- Jarrett, Kenneth Lee, 59, Pickens County
- Kelley, Ronald, 49, Madison County (pleaded guilty, awaiting sentencing)
- Kraps, Jessica, 35, Athens-Clarke County (sentenced)
- Leonard, Amy Laura, 51, Johnson City, Tennessee (pleaded guilty, awaiting sentencing)
- Maddox, Dwayne, 34, Athens-Clarke County
- Manley, Ashley Michelle, 25, Athens-Clarke County (sentenced)
- Mata-Bustos, Esmeralda, 38, Gwinnett County (sentenced)
- McCullough, Daniel Keith, 27, Hart County (pleaded guilty, awaiting sentencing)
- Melton, Kyle, 34, Athens-Clarke County
- Moon, Andrew, 31, Athens-Clarke County
- Moore, Chandler, 35, Bristol, Tennessee (pleaded guilty, awaiting sentencing)
- Moore, Rodney Lewis, 33, Athens-Clarke County (pleaded guilty, awaiting sentencing)
- Moore, Scott, 39, Hart County (pleaded guilty, awaiting sentencing)
- Morris, Mechelle, 44, Oglethorpe County (pleaded guilty, awaiting sentencing)
- Mull, Madlyn Vista, 21, Hart County
- Mulligan, Gregory, 29, Athens-Clarke County (pleaded guilty, awaiting sentencing)
- Mutch, Michelle, 27, Athens-Clarke County (sentenced)
- Newsome, Greyson, 31, Athens-Clarke County (sentenced)
- Paige, Audrey Lynn, 30, Athens-Clarke County
- Ramos, Cindy Isamara, 28, Cobb County
- Shaver, Mathew, 43, Oglethorpe County (sentenced)
- Silverio, Mario Alberto, 40, Cobb County
- Smith, Shana Leeanne, 31, Oconee County (pleaded guilty, awaiting sentencing)
- Sterling, Kenneth, 50, Athens-Clarke County
- Sutton, Pamela Lynn, 38, Athens-Clarke County (sentenced)
- Turbeville, Steven, 38, Barrow County (pleaded guilty, awaiting sentencing)
- Turrubiartes Amaro, Ricardo, 22, Gwinnett County
- Wampler, Cecil, 35, Bristol, Tennessee (sentenced)
- Wheeler, Travis, 36, Athens-Clarke County
- Wolford, April, 29, Athens-Clarke County (pleaded guilty, awaiting sentencing)
- Wolford, Garrett, 33, Athens-Clarke County (sentenced)
- Woodrum, Darien, 27, Athens-Clarke County
- Young, James Andrew, 26, Oglethorpe County
- Young, Ricky Keith, 32, Walton County
- Zavala, David, 28, Gordon County
“Operation Wu Block,” an OCDETF-led investigation, is part of the larger “Operation Crystal Shield,” a national DEA operation first announced on February 20, 2020 during a press conference in Atlanta. The investigation is focused on eight main methamphetamine trafficking transportation hubs across the nation, including Atlanta. Both are on-going operations. Assistant U.S. Attorney Tamara Jarrett is prosecuting cases arising from this investigation for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Wednesday 8 July 2020
Wilkes-Barre Woman Sentenced to 66 Months’ Imprisonment for Drug Trafficking and Firearms OffensesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Na’Deardra Mayhams, age 28, of Wilkes-Barre, Pennsylvania, was sentenced on July 7, 2020 to 66 months’ imprisonment and three years of supervised release by United States District Court Judge Malachy E. Mannion, for heroin and crack cocaine trafficking and firearms offenses.
According to United States Attorney David J. Freed, between February 2016 and May 2016, Mayhams was a member of a drug ring that distributed heroin and crack cocaine in the Wilkes-Barre area. Mayhams personally sold narcotics to a confidential informant, and a search of her residence recovered heroin, crack cocaine, and a firearm. A search warrant of the residence of Mayhams’s codefendants recovered a second firearm registered in her name. Mayhams pleaded guilty to trafficking five grams of crack cocaine and 40 grams of heroin, the latter of which is the equivalent of approximately 1,600 potentially fatal doses of heroin, and for possessing firearms in furtherance of her drug dealing activities.
Four other members of the drug ring previously were sentenced:
- Davon Beckford, of Wilkes-Barre, was sentenced to time served of approximately 13 months of imprisonment and three years of supervised release. After violating the terms of his supervised release, Beckford was sentenced to an additional 6 months’ imprisonment.
- Jaquan Henderson, of Wilkes-Barre, was sentenced to 96 months’ imprisonment and three years of supervised release.
- Stephanie Walter, of Sugar Notch, Pennsylvania, was sentenced to two years of probation.
- Al Dunlap, of Wilkes-Barre, was sentenced to 108 months’ imprisonment and three years of supervised release.
A sixth defendant, Truman Jones, was convicted at trial in December 2019 and awaits sentencing.
The matter was investigated by the Bureau of Alcohol Tobacco, Firearms and Explosives, the Wilkes-Barre Police Department, the Luzerne County Drug Task Force, and the Pennsylvania State Police. Assistant United States Attorneys Phillip J. Caraballo and Jenny Roberts prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case also is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
This case further was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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White Earth Man Indicted for Robbery, Violent AssaultRead the Press Release
United States Attorney Erica H. MacDonald today announced a federal indictment charging CURTIS WAYNE BELLAND, 32, with robbery and assault on the White Earth Indian Reservation. BELLAND was arraigned today before Magistrate Judge Jon T. Huseby in U.S. District Court in Bemidji, Minnesota.
According to the allegations in the indictment, on December 15, 2019, on the White Earth Indian Reservation, BELLAND robbed and assaulted a victim with a hammer resulting in serious bodily injury.
This case is the result of an investigation conducted by the White Earth Police Department, the Becker County Sheriff’s Office, the Minnesota Bureau of Criminal Apprehension, and the FBI Headwaters Safe Trails Task Force, with assistance from the Becker County Attorney’s Office.
Assistant U.S. Attorney Emily A. Polachek is prosecuting the case.
Defendant Information:
CURTIS WAYNE BELLAND, 32
White Earth, Minn.
Charges:
- Robbery, 1 count
- Assault with a dangerous weapon, 1 count
- Assault resulting in serious bodily injury, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Weatherford Man Sentenced to 78 Months in Federal Prison for Abusive Sexual Contact of a Child in Indian CountryRead the Press Release
OKLAHOMA CITY – Earlier today, WILLIAM ART GUOLADDLE, SR., 64, of Weatherford, Oklahoma, was ordered to serve 78 months in federal prison, to be followed by 10 years of supervised release, for abusive sexual contact of a child in Indian Country, announced Timothy J. Downing, United States Attorney for the Western District of Oklahoma.
A federal grand jury indicted Mr. Guoladdle on August 7, 2019, on two counts of aggravated sexual abuse and one count of abusive sexual contact of a child under seven years of age, occurring on Kiowa Tribe land in Comanche County. He pleaded guilty to abusive sexual contact of a child on June 20, 2019, before U.S. District Judge David Russell. At the plea hearing, the defendant admitted to touching the victim’s buttocks through her clothing in a sexual way. At the sentencing hearing today, the Court noted it had considered that the victim’s age and that the victim would have to live with the effects of the defendant’s conduct for the rest of the victim’s life. The Court ordered Mr. Guoladdle to serve 78 months in federal prison, to be followed by 10 years of supervised release.
This case is the result of an investigation by Bureau of Indian Affairs, Office of Justice Services and Lawton Police Department. Assistant U.S. Attorney Jessica L. Cárdenas prosecuted the case.
This case is also part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section of the Department of Justice, 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.
Reference is made to public filings for further information.
United States Attorney Announces New Twin Cities Violent Crime Task ForceRead the Press Release
United States Attorney Erica H. MacDonald today announced the formation of a new Twin Cities Violent Crime Task Force (Task Force) in response to the extraordinary spike in gun violence and violent crime across the Twin Cities. The Task Force brings together additional federal and state resources to assist local law enforcement to investigate, arrest, and prosecute individuals responsible for gun violence in our communities.
The Task Force will serve as a coordination hub for intelligence and law enforcement operations focused on violent crime in the Twin Cities. Law enforcement partners will utilize the Task Force to maximize intelligence gathering and information sharing capabilities to ensure swift and precise identification of those individuals who are perpetrating violence.
“This increase in violence, particularly the shootings, is unacceptable and it must end – that is why I am launching a new Twin Cities Violent Crime Task Force to help turn the tide,” said U.S. Attorney Erica MacDonald. “The goal of this Task Force is not to flood our communities with law enforcement, but rather to leverage law enforcement’s collective resources to allow for focused and effective enforcement actions. Bringing safety and security back to our cities requires collaboration, and we need law enforcement, city leaders and community members all working together toward the common goal of bringing an end to this violence.”
The Task Force operates from a multi-agency command center and is comprised of federal agents and analysts from the FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives, United States Secret Service, United States Marshals Service, Drug Enforcement Administration, the Minnesota Bureau of Criminal Apprehension, police officers from the Minneapolis and St. Paul Police Departments and deputies from the Hennepin, Ramsey and Dakota counties Sheriff’s Offices, as well as federal and state prosecutors.
The public may report tips by calling 1-800-CALLFBI (800-225-5324) or submit pictures and/or videos at www.fbi.gov/violence.
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
U.S. Attorney and IRS Urge Taxpayers to be on Lookout for ScamsRead the Press Release
Tax Payment and Filing Deadline July 15, 2020
DES MOINES, Iowa – United States Attorney Marc Krickbaum and Acting Special Agent in Charge Adam Steiner, IRS Criminal Investigation, St. Louis Field Office, are reminding taxpayers that the tax filing and payment deadline is July 15, 2020, and to continue to be on the lookout for scam artists.
USA Krickbaum and Steiner made the announcement today to urge people to owe taxes, even if they have a filing extension, to carefully review their situation and pay what they can by July 15 to avoid penalties and interest. Due to COVID-19, the original filing date and tax payment due date for 2019 was postponed from April 15 to July 15. For people facing hardships, including those affected by COVID-19, who cannot pay in full, the IRS has several options available on IRS.gov/payments.
“Taxpayers who are unable to pay their taxes in full should act as quickly as possible since interest and penalties can quickly accumulate when more time passes,” warned Steiner. “You must pay the taxes you owe by July 15.”
In addition, USA Krickbaum and Steiner remind taxpayers that scammers are hard at work looking for ways to steal your personal information and money. Stay alert to these scams. The IRS will not contact you by phone, email, or social media to ask for personal information. This is a scam.
“The U.S. Attorney’s Office and IRS Criminal Investigation will investigate and prosecute criminals who use taxpayer’s personal information to commit crimes,” stated USA Krickbaum. “Individuals who perpetrate tax scams and prey on the most vulnerable of taxpayers will be held responsible.”
For official information, go directly and solely to IRS.gov.
U.S. Attorney Warns Public About Fake Mask “Exemption” DocumentsRead the Press Release
RALEIGH, N.C. – United States Attorney Robert J. Higdon, Jr. advised the public today that cards and other documents bearing the U.S. Department of Justice seal and claiming that individuals are exempt from mask requirements are fraudulent.
There have been reports of individuals in North Carolina and other parts of the country creating cards or other documents claiming that the bearer of the card is exempt from mask requirements. Some versions of these cards threaten businesses or organizations with fines if they take steps to require patrons to wear masks. In an effort to make the cards or documents appear legitimate, fraudsters may include the U.S. Department of Justice’s seal or include other threatening language. The Department of Justice is also aware of efforts by some to sell these fake cards to members of the public.
The public should take note that the Department did not issue these documents, and the Department does not endorse them. Furthermore, the Department has not granted permission for the use of its seal for this purpose, and misusing the Department seal is a federal crime.
"During this pandemic, false information—and fake cards like these—do a grave disservice to us all as we try to understand and follow the public-health measures our governments have ordered,” said U.S. Attorney Higdon. “The public should be aware that these cards are fake and rest assured that we will investigate those who are knowingly creating or peddling these fraudulent cards to the unsuspecting public.”
A copy of this press release is located on our website.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
U.S. Attorney Hosts Online Roundtable on Sexual Harassment in HousingRead the Press Release
Portland, Maine: The U.S. Attorney’s Office for the District of Maine and the Justice Department’s Civil Rights Division hosted an online roundtable today for community organizations to discuss the problem of sexual harassment in housing, U.S. Attorney Halsey B. Frank announced.
The event included representatives from local law enforcement agencies, legal aid offices, fair housing organizations, shelters and transitional housing providers, and other organizations that often work with vulnerable populations who are most likely to become victims of sexual harassment in housing.
“Sexual harassment in housing is often underreported, but it is an egregious violation of a person’s right to fair housing,” U.S. Attorney Frank said. “Landlords or superintendents using the power they have over tenants to extort sexual acts, or even commit assaults, is intolerable, particularly in the midst of the COVID-19 pandemic. Our office is dedicated to uncovering such violations where they exist and vigorously enforcing the law.”
The Department of Justice, through the U.S. Attorneys’ offices and the Civil Rights Division, enforces the federal Fair Housing Act, which prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. Sexual harassment is a form of sex discrimination prohibited by the Act.
The Justice Department’s Sexual Harassment in Housing Initiative is an effort to combat sexual harassment in housing led by the Civil Rights Division of the Department of Justice, in coordination with U.S. Attorneys’ offices across the country. The goal of the Initiative is to address sexual harassment by landlords, property managers, maintenance workers, loan officers, or other people who have control over housing.
Since the launch of the initiative in 2017, the Justice Department has filed 15 lawsuits alleging a pattern or practice of sexual harassment in housing and recovered millions of dollars in damages for harassment victims. The Justice Department’s investigations frequently uncover sexual harassment that has been ongoing for years or decades. Some victims do not know that being sexually harassed by a person in control of their housing can violate federal law.
The Department encourages anyone who has experienced sexual harassment in housing, or knows someone who has, to contact the Division by calling (844) 380-6178 or emailing [email protected].
Individuals who believe they may have been victims of discrimination may also file a complaint with the U.S. Attorney’s Office by emailing [email protected] or by calling (207) 780-3257 and asking for Civil Chief John G. Osborn or Assistant U.S. Attorney Ashley E. Eiler.
U.S. Army Soldier Sentenced to Life in Prison for Aggravated Sexual AssaultRead the Press Release
A U.S. Army soldier was sentenced today to life in prison for aggravated sexual assault of a minor, Acting Assistant Attorney General Brian Rabbitt of the Justice Department’s Criminal Division and U.S. Attorney Robert J. Higdon Jr. of the Eastern District of North Carolina announced.
Daniel Kemp Sr., 51, of Cameron, North Carolina, pleaded guilty on Dec. 11, 2019, to one count of aggravated sexual assault of a minor before U.S. District Court Chief Judge Terrence W. Boyle of the Eastern District of North Carolina, who sentenced Kemp Sr. earlier today and remanded him to the custody of the U.S. Marshals Service.
According to facts presented in the guilty plea hearings, Kemp Sr. was employed by the U.S. Army as an active duty member when he forcibly raped a minor victim. After an investigation into the sexual assault was underway, his wife, Shanynn Kemp, intentionally harassed and dissuaded a witness from disclosing to law enforcement information about the sexual offense.
The investigation of the case was conducted by U.S. Army Criminal Investigation Command and the FBI. This case is being prosecuted by Trial Attorney Kaylynn Foulon of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Charity Wilson of the U.S. Attorney’s Office in the Eastern District of North Carolina.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and 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 http://www.justice.gov/psc.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
U.S. Army Soldier Sentenced to Life in Prison for Aggravated Sexual AssaultRead the Press Release
A U.S. Army soldier was sentenced today to life in prison for aggravated sexual assault of a minor, Acting Assistant Attorney General Brian Rabbitt of the Justice Department’s Criminal Division and U.S. Attorney Robert J. Higdon Jr. of the Eastern District of North Carolina announced.
Daniel Kemp Sr., 51, of Cameron, North Carolina, pleaded guilty on Dec. 11, 2019, to one count of aggravated sexual assault of a minor before U.S. District Court Chief Judge Terrence W. Boyle of the Eastern District of North Carolina, who sentenced Kemp Sr. earlier today and remanded him to the custody of the U.S. Marshals Service.
According to facts presented in the guilty plea hearings, Kemp Sr. was employed by the U.S. Army as an active duty member when he forcibly raped a minor victim. After an investigation into the sexual assault was underway, his wife, Shanynn Kemp, intentionally harassed and dissuaded a witness from disclosing to law enforcement information about the sexual offense.
The investigation of the case was conducted by U.S. Army Criminal Investigation Command and the FBI. This case is being prosecuted by Trial Attorney Kaylynn Foulon of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Charity Wilson of the U.S. Attorney’s Office in the Eastern District of North Carolina.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and 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 http://www.justice.gov/psc.
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.
Two Utahns Charged with Covid-Relief Fraud After Failing to Disclose Applicant Was Under Federal IndictmentRead the Press Release
SALT LAKE CITY – A federal complaint unsealed last week charges the owner of a Utah trucking company with submitting a fraudulent loan application to get a Paycheck Protection Program (PPP) loan of $210,000 through the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Hubert Ivan Ugarte, 52, of Draper, with the assistance of Lisa Bradshaw Rowberry, 49, of Provo, Utah, submitted a loan application to the Small Business Administration (SBA) to obtain the PPP loan, according to the complaint.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to millions of Americans suffering from the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $249 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized more than $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 1 percent. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal on the PPP loan to be entirely forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses a certain amount of the PPP loan proceeds on payroll expenses.
According to the complaint, Ugarte, with Rowberry’s assistance, answered “no” to questions on the application asking whether he was under formal criminal charges in any jurisdiction. His answer was false because he was under federal indictment in Utah when he answered the question, the complaint alleges.
On Oct. 24, 2019, a federal grand jury in Utah returned an indictment charging Ugarte and others following a multi-year wire fraud and bribery scheme investigation in which it is alleged Ugarte bribed employees at the Salt Lake City Hub of FedEx ground to obtain preferential treatment for his trucking companies. Ugarte faces four counts of wire fraud and six counts of money laundering in the pending case.
In filling out PPP loan application documents, Ugarte also circled “no” when asked if he had ever been placed on pretrial diversion. In fact, according to the complaint, he entered into a two-year pretrial diversion in 1988 to resolve a felony drug possession charge.
Before Ugarte and Rowberry completed the Borrower Certification for the PPP loan and submitted it to the SBA, Ugarte specifically agreed that at least 75 percent of the $210,000 loan would be used for payroll costs.
According to the complaint, the original PPP loan application was rejected or declined by two banks after they had discovered Ugarte was under federal indictment. The complaint alleges Rowberry told an individual she was going to go with a friend she knew in the banking industry to re-apply for the PPP loan. On May 14, 2020, Ugarte received $210,000 from Transportation Alliance Bank.
Instead of using at least 75 percent of the loan to pay payroll costs, including bounced payroll checks, Ugarte’s business account shows an automatic withdrawal to Kenworth Sales in the amount of $126,965.27 just four days after the loan was received. The complaint alleges Ugarte’s company owed approximately $66,000 a month in lease or purchase payments to Kenworth for 13 tractors. Records show Kenworth received the money for truck payments and small amount for various truck parts. The complaint alleges Ugarte used 60 percent of the loan to pay the past due truck payments – leaving 40 percent for payroll costs.
Ugarte and Rowberry are charged with conspiracy, removal of property to prevent seizure, loan application fraud, wire fraud, and money laundering in the complaint. The conspiracy and removal of property to prevent seizure counts each carry potential 5 years sentences. Money laundering has a potential 10 year sentence and wire fraud is up to 20 years. The loan application fraud count is up to 30 years in prison and a $1 million fine.
The removal of property to prevent seizure count in the complaint alleges Ugarte received a payment of $60,957.82 for a wrecked tractor in Nevada after Rowberry submitted an insurance claim. The check should have been turned over to the FBI subject to a seizure warrant in his FedEx fraud case. Rather than turn the money over to the FBI, the complaint alleges Rowberry deposited it into one of Ugarte’s accounts.
Rowberry had an initial appearance last week in federal court and has been released on conditions of pretrial release. A preliminary hearing for her is set for July 28, 2020, at 3 p.m. before Magistrate Judge Daphne A. Oberg. An initial appearance for Ugarte, who is in custody, is set for Tuesday (July 14, 2020) at 9 a.m. before Magistrate Oberg.
Complaints are not findings of guilt. Individuals charged in complaints are presumed innocent unless or until proven guilty beyond a reasonable doubt in court.
Assistant U.S. Attorneys in the Utah U.S. Attorney’s Office are prosecuting the case. FBI special agents are investigating the matter.
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.
Two Men Sentenced to Federal Prison for Trafficking Cocaine from Philadelphia to PittsburghRead the Press Release
PITTSBURGH – Two men – one from New Jersey and the other from Florida - have been sentenced in federal court on their convictions for violating federal drug laws related to their trafficking of kilograms of cocaine from Philadelphia to Pittsburgh, United States Attorney Scott W. Brady announced today.
Senior United States District Judge Donetta W. Ambrose imposed a sentence of 10 years’ imprisonment on Danny Jackson, 33, of Pine Hill, NJ, and a sentence of five years’ imprisonment on Moussa Jabateh, 32, a citizen of Liberia who was residing in Miami, FL. Senior Judge Ambrose also ordered Jabateh’s removal from the United States to Liberia following the completion of his sentence.
According to information presented to the court, from October 2017 through July 2018, Jackson, Jabateh, and their co-conspirators conspired to distribute between 50 to 150 kilograms of cocaine in the Western District of Pennsylvania. Jabateh obtained the supply of cocaine, and Jackson physically transported kilograms of cocaine via bus from Philadelphia to Pittsburgh roughly twice a month for the nine-month period. In connection with this investigation, the United States seized nearly $8,000,000 in cash and other assets; 42 kilograms of cocaine; 12 kilograms of fentanyl; three kilograms of heroin; and 121 grams of oxycodone.
Prior to imposing sentence, Senior Judge Ambrose stated that the sentences for each defendant were sufficient but not greater than necessary to achieve the goals of sentencing.
Assistant United States Attorneys Tonya Sulia Goodman and Mark V. Gurzo prosecuted these cases on behalf of the government.
United States Attorney Brady commended the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, and the Federal Bureau of Investigation Greater Pittsburgh Safe Streets Task Force, which includes the Pittsburgh Bureau of Police, the Allegheny County Sheriff’s Office, the Pennsylvania Attorney General’s Office, the Wilkinsburg Police Department, and the Allegheny County Adult Probation Office, for the investigation leading to the successful prosecutions of Jackson and Jabateh.
Two Individuals Plead Guilty to Roles in $4 Million Warranty SchemeRead the Press Release
CHARLESTON, W.Va. – Frank Russo, 69, of North Carolina, entered a guilty plea to wire fraud for his role in a scheme to defraud Toyota of more than $4 million, announced United States Attorney Mike Stuart. Previously, Kevin Fluharty, 59, of West Virginia, entered a guilty plea in the same case to mail fraud concerning the same scheme to defraud. Russo and Fluharty face up to 20 years in prison and will be required to pay restitution to Toyota. Russo’s sentencing is scheduled for October 1, 2020. Fluharty’s sentencing will be held on August 24, 2020.
“What a tangled web of deception these two men wove – from fraudulently using driver’s licenses to falsifying vehicle ownership information – and seeking more than $4 million for their deception,” said United States Attorney Mike Stuart. “Crime may pay until you get caught.”
Russo was employed as service manager by a Toyota dealership in Kanawha County and Fluharty was a notary public. Russo and Fluharty admitted they were participants in a fraudulent scheme whereby a Kentucky used car dealership, Big Blue Motor Sales, bought trucks at wholesale prices at auction, obtained hundreds of copies of Kentucky and West Virginia residents’ driver’s licenses, fraudulently titled the trucks in the name of those residents, and induced the car company to repurchase the trucks at 150% of value.
The scheme relied on Russo to ensure that vehicles brought to the Toyota dealership qualified for the extended warranty extension program and relied on Fluharty to notarize documentation used in the repurchase transactions. Russo admitted that he sent false ownership information to Toyota by electronic wire in furtherance of the scheme. Fluharty admitted that he falsely notarized documents knowing that those documents would be sent through the mail to Toyota. Russo and Fluharty admitted that they received bribes or kickbacks from Big Blue Motor Sales for their participation in the scheme.
The United States Postal Inspection Service, the Federal Bureau of Investigation, the West Virginia State Police and the West Virginia Office of the Insurance Commissioner conducted the investigation. United States District Judge Joseph R. Goodwin presided over both hearings. Former Assistant United States Attorney Stefan Hasselblad and Assistant United States Attorneys Andrew J. Tessman and Steven I. Loew are handling the prosecution.
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Two Indicted in Federal Court for Burglary of Firearms DealerRead the Press Release
WILMINGTON, Del. – On July 7, 2020, a federal grand jury indicted Nahsiem McIntosh, 21 years old, and Derris Lloyd, 35, both of Wilmington, Delaware, for offenses related to the May 31, 2020, burglary of the American Sportsman, a federal firearms dealer in Newark, Delaware.
According to the Indictment, 35 firearms were stolen. McIntosh and Lloyd are charged with: (1) theft of firearms from a federal firearms licensee and aiding and abetting the theft; (2) possession of a firearm by a prohibited person; and (3) possession of a stolen firearm. McIntosh is charged with possessing one of the stolen firearms on June 1, 2020; Lloyd is charged with possession of one of the stolen firearms on June 18, 2020.
If convicted of all crimes charged, the defendants face a maximum penalty of 30 years in prison. 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.
The Indictment is a part of an ongoing investigation by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). The ATF was assisted by the Delaware State Police, FBI, U.S. Marshals Service, Wilmington Police Department, New Castle County Police Department and Delaware State Probation and Parole.
David C. Weiss, U.S. Attorney for the District of Delaware, and Timothy Jones, ATF Baltimore Special Agent in Charge, made the announcement. Assistant U.S. Attorneys Christopher L. de Barrena-Sarobe and Maureen McCartney are prosecuting the case.
One unaccounted firearm in our community is too many. 35 guns on the street is unacceptable. We again ask for the public’s assistance in providing any information about the theft of these firearms or the suspects appearing in the attached photos. A $5,000 reward for information leading to the arrest of these individuals still stands. Please call 888-ATF-TIPS (888-283-8477) or send an email to [email protected] if you have information.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 1:20-cr-040.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Tulsa Couple Face Charges Related to the Forced Labor of a MinorRead the Press Release
A federal grand jury today returned an indictment charging a Tulsa couple with the forced labor and involuntary servitude of a minor victim, announced U.S. Attorney Trent Shores.
Ronald Alexander Paz-Rodriguez (also known as Ronald Rodriguez-Paz), 36, and Eva Estrada Juarez, 29, are charged with obtaining forced labor; benefiting from forced labor; involuntary servitude; and trafficking with respect to peonage, slavery, involuntary servitude, and forced labor.
“Labor trafficking is modern day slavery. It happens to adults. It happens to children. And it happens here in Oklahoma,” said U.S. Attorney Trent Shores. “Thankfully, we have dedicated Tulsa police officers and special agents with Homeland Security Investigations to investigate allegations involving the forcing of a minor child into involuntary servitude. Moving forward, the United States Attorney’s Office will present our case in federal district court where the evidence will be considered by a judge and jury.”
Starting in January 2019, Paz-Rodriguez and Juarez, are alleged to have arranged for the transport of the minor victim to Tulsa for the purpose of forced labor. From July 1 to Dec. 13, 2019, the couple allegedly obtained labor and services from the minor by threatening the victim and by use of force, physical restraint, serious harm, and abuse of the law and legal processes. The minor believed if she did not perform these services she would suffer serious physical harm.
The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
If convicted, the defendants face a maximum penalty of 20 years in federal prison, a fine not to exceed $250,000, and not more than 5 years of supervised release. They also face the possible forfeiture of any proceeds or property that was obtained as a result of the forced labor.
The Tulsa Police Department and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations are conducting the investigation. Assistant U.S. Attorneys Christopher J. Nassar and Ryan Heatherman are prosecuting the case.
Tampa Man Sentenced to More Than 11 Years in Prison for Sex Trafficking of MinorsRead the Press Release
Tampa, Florida – U.S. District Judge Susan Bucklew today sentenced Luis Berrios-Trinidad (30, Tampa) to 11 years and 3 months in federal prison for sex trafficking of minors. The court also ordered Berrios-Trinidad to forfeit a Glock 19 9mm handgun and cellular phone, both of which were used during the commission of the offenses.
Berrios-Trinidad had pleaded guilty on January 30, 2020.
According to court documents, in May 2019, Berrios-Trinidad began communicating with undercover law enforcement agents regarding the commercial sex trafficking of underage females. Berrios-Trinidad represented that he had access to girls ranging in age from 14-17 years old, and that the price per girl was between $160-180 an hour.
On June 6, 2019, Berrios-Trinidad arranged to bring two underage females to a hotel for a “sex party” with adult men. On that evening, he arrived with two girls, ages 14 and 17. Once inside the hotel room, Berrios-Trinidad was arrested and the victims were rescued.
“Two young girls were saved from a life of human trafficking with this investigation,” said HSI Tampa Assistant Special Agent in Charge Michael Cochran. “HSI agents will continue to uncover, dismantle and disrupt human trafficking, around the globe, and right here in our own communities.”
This case was investigated by Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Candace Garcia Rich.
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 United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Staten Island Business Owner Arrested for Violating the Defense Production Act and Defrauding CustomersRead the Press Release
A criminal complaint was unsealed today in federal court in Brooklyn charging Kevin Jay Lipsitz with violations of the Defense Production Act and wire fraud. Lipsitz allegedly sold personal protective equipment (PPE) and other health and medical materials, some of which were designated as scarce due to the COVID-19 pandemic, at prices far exceeding prevailing market prices. Lipsitz also allegedly lied to customers about his inventory of such scarce materials and his ability to timely ship those items to customers. Lipsitz is the Chief Executive Officer and apparent sole owner of SuperGoodDeals.com Inc. (SGD), a New York corporation located in Staten Island.
Lipsitz was arrested today and is scheduled to make his initial appearance via teleconference this afternoon before United States Magistrate Judge Roanne L. Mann. In a separate action, the Federal Trade Commission has filed civil charges against Lipsitz.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Craig Carpenito, head of the Department of Justice’s nationwide COVID-19 Hoarding and Price Gouging Task Force, 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 (HSI), and Philip R. Bartlett, Inspector-in-Charge, United States Postal Inspection Service, New York Division (USPIS), announced the arrest and charges.
According to court filings, between February 2020 and April 2020, Lipsitz and SGD accumulated a large stockpile of PPE and other medical products, including facemasks and N-95 and KN-95 filtering face-piece respirators. Lipsitz then sold the items at markups ranging from 150 percent to over 500 percent above his purchase price. To induce customers to purchase his products, Lipsitz misrepresented SGD’s inventory and ability to quickly fill and ship orders. On the SGD website, Lipsitz promised customers that they could “pay today” and their orders would ship “tomorrow.” Lipsitz would issue same day shipping confirmations which included tracking numbers. Nevertheless, Lipsitz did not deliver the PPE in the promised timeframe, often shipping the merchandise weeks after orders were placed and after customers lodged complaints or tried to cancel their orders.
“The defendant allegedly took advantage of the pandemic and the public’s urgent need for life-saving PPE to enrich himself illegally,” stated United States Attorney Donoghue. “Our Office and the Department’s COVID-19 Hoarding and Price Gouging Task Force will continue working tirelessly to put an end to such conduct.” Mr. Donoghue expressed his grateful appreciation to the United States Attorney’s Office in New Jersey, and the Federal Trade Commission for their assistance in the case.
“We’re continuing to work diligently across the country to find those people who would turn a deadly health crisis into an opportunity to make illicit profits,” stated Carpenito. “As alleged in the complaint, this defendant not only overcharged for desperately needed personal protective equipment, he lied to his customers about how fast he could ship their orders, taking their money up front and leaving them with nothing to show for it. This is precisely the type of conduct the Task Force will continue to aggressively investigate and prosecute.”
“Long before the citizens of New York City fully anticipated the impact of the COVID pandemic, Lipsitz was busy stockpiling essential PPE that would soon become a scarce commodity. At a time when these items were needed for a critical health crisis, he then illegally marked up the price—in some cases by a 500% margin—for the benefit of himself and himself alone. When this country faces a crisis, we are supposed to stand together as a community and push through it, not turn our backs, gouge fellow citizens, and try to profit from it. The alleged behavior is a disgrace,” stated FBI Assistant Director-in-Charge Sweeney.
“Price gouging PPE to make a profit during a global pandemic is just part of Lipsitz’ alleged crimes. He is also alleged to have taken advantage of customers through false promises and fraud,” stated HSI Special Agent-in-Charge Fitzhugh. “HSI New York, working with the FBI and DOJ’s COVID-19 Hoarding and Price Gouging Task Force, will continue to arrest those whose criminal acts hurt a community in need.”
“At a time when life-saving PPE was needed to fight COVID-19, the defendant chose personal greed over the life and safety of first responders and the heroes in the medical community. Price gauging, hoarding, and lying to consumers will always be uncovered by law enforcement; and those participating in such schemes will be brought to justice,” stated USPIS Inspector-in-Charge Bartlett.
The charges in the complaint are allegations, and the defendant is presumed innocent unless and until proven guilty.
Attorney General William P. Barr created the COVID-19 Hoarding and Price Gouging Task Force, led by Craig Carpenito, United States Attorney for District of New Jersey, who is coordinating efforts with the Antitrust Division and U.S. Attorneys across the country wherever illegal activity involving PPE occurs. The Secretary of Health and Human Services has issued a Notice designating categories of health and medical supplies that must not be hoarded or sold for exorbitant prices.
Please report COVID-19 fraud, hoarding or price-gouging to the National Center for Disaster Fraud’s National Hotline at (866) 720-5721, or e-mail: [email protected].
The government’s case is being handled by the Office’s Business & Securities Fraud and General Crimes Sections. Assistant United States Attorneys Julia Nestor and Andrew Wang are in charge of the prosecution.
The Defendant:
KEVIN JAY LIPSITZ
Age: 61
Staten Island, New YorkE.D.N.Y. Docket No. 20-MJ-509
South Bend Man Sentenced to over 21 Years in PrisonRead the Press Release
SOUTH BEND – Jerry Harris, age 39, of South Bend, Indiana, was sentenced by United States District Court Chief Judge Jon E. DeGuilio after being found guilty of conspiracy to distribute heroin, announced United States Attorney Thomas L. Kirsch II.
Mr. Harris was sentenced to 262 months in prison followed by 10 years of supervised release.
According to evidence presented at trial, Jerry Harris conspired with at least 10 other persons to sell heroin in South Bend. The conspirators used shared cellphones that customers called to arrange to purchase heroin. Undercover law enforcement officers purchased heroin from members of the conspiracy on numerous occasions during a months-long investigation in 2017. Phone records show that the shared cellphones had over 80,000 contacts during the time of the conspiracy. The investigation included search warrants on five houses and cars. Harris directed the sales conducted by those who sold heroin to the undercover officers. Harris was the second-highest ranking member of this organization and functioned as the “right-hand man” to his trial co-defendant David Gibson. Both were convicted at trial in September 2019 and Mr. Gibson was sentenced to 20 years in prison in January 2020.
“I am pleased with the hard work of the committed prosecutors and law enforcement officers that brought this case to a successful resolution,” said U.S. Attorney Thomas L. Kirsch II. “This cooperative effort shows that to make our communities safer, we will aggressively investigate, prosecute and hold accountable those who flood our streets with illegal drugs.”
This case was investigated by the Drug Enforcement Administration and the St. Joseph County Drug Investigations Unit, with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives and other law enforcement agencies. The case was prosecuted by Assistant U.S. Attorneys Molly Donnelly and Joel Gabrielse.
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Shelbyville Man Sentenced for Wage and Hour OffensesRead the Press Release
FRANKFORT, Ky. – A Shelbyville man, Fei Zhou Tang, 51, was sentenced on Wednesday to three years of probation, with six months on home detention, by U.S. District Court Judge Gregory F. Van Tatenhove, following his guilty plea for committing wage and hour offenses.
According to his plea agreement, Tang admitted that he knowingly made false statements on the Employer’s Quarterly Wage and Tax Report, by omitting the names of undocumented workers on multiple quarterly unemployment forms and by failing to pay overtime wages to workers who had worked more than forty hours in a week. Fei Zhou Tang failed to pay a total of $229,207.26 in required overtime and minimum wages to six employees.
Fei Zhou Tang was initially indicted in July 2018. He pleaded guilty on October 31, 2019.
In addition to his prison sentence, Tang was also ordered to pay restitution to the employees, in the amount of $225,582.26; ordered to forfeit $170,500.00, in lieu of forfeiture of various real properties and vehicles, and ordered to pay $20,000.00 to the United States Department of Labor, Wage and Hour Division.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Jason Crosby, U.S. Department of State, Diplomatic Security Service, Supervisory Special Agent, Criminal Division Chief; Karen Garnett-Civils, District Director, Department of Labor Wage and Hour Division; Rafiq Ahmad, Special Agent in Charge, DOL Office of Inspector General; Rod Owens, Special Agent in Charge, Social Security Administration, Office of Inspector General; and Kentucky Attorney General Daniel Cameron jointly announced the sentence.
The investigation was conducted by the Department of State, Department of Labor, Social Security Administration, Office of Inspector General, and the Kentucky Office of the Attorney General. The United States was represented by Assistant U.S. Attorneys Hydee Hawkins, David Marye, and Dmitriy Slavin.
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Richboro Man Sentenced to Fifteen Years for Manufacturing Child Pornography and Enticement of a MinorRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced that Michael Shore, 35, of Richboro, Pennsylvania, was sentenced to 180 months in prison, lifetime supervised release, a prohibition on contact with any of his victims or their families, and a lifetime restriction on his Internet usage by United States District Court Judge Timothy R. Savage for manufacturing child pornography involving multiple victims, as well as enticing a minor to engage in illicit sexual conduct. His sentence also requires him to register as a sex offender under Megan’s Law for the rest of his life.
In October 2017, Shore was convicted of manufacturing child pornography and exploitation of four minor victims on multiple occasions over a span of almost two years. At least two of his victims he met at Comic-Con, which is an annual entertainment and comic book convention held in San Diego, where he worked with his family. His victims included a 12-year old girl in the 6th grade, two teenaged girls, and one child who is on the autism spectrum. Shore corresponded with these girls online at all times of the day and night, and coerced them to self-produce sexually explicit images and send them to him. For one child, he then distributed her images out over the Internet – showing her face and naked body - in an effort to engage in sexual activity with yet another person online. After communicating at length with one of his victims, Shore traveled from Pennsylvania to Florida and engaged in sexual intercourse with her on multiple occasions.
The Federal Bureau of Investigation was called in by local authorities after the 12-year old victim’s mother alerted police. A search warrant was executed on Shore’s home, and federal agents recovered more than 2,500 images of child pornography that Shore had downloaded and saved from the Internet over an eight year period. Shore confessed to the FBI on the day they searched his home, and later pleaded guilty to a 10-count federal indictment charging him with manufacturing, distributing, and possessing child pornography, as well as enticing a minor to engage in illicit sexual conduct.
“Michael Shore is a serial sexual predator who took advantage of some of the most vulnerable among us – young children, one of whom has autism. This criminal behavior is reprehensible,” said U.S. Attorney McSwain. “Further, at least one of these children will continue to be victimized for years to come because Shore shared explicit images of her on the Internet with others. Fortunately, he will now sit behind bars where he belongs for many years, unable to victimize anyone else in the meantime.”
“Child exploitation is among the most heinous crimes we investigate,” said Michael J. Driscoll, special agent in charge of the Philadelphia Division. “Shore robbed these young girls of their innocence and childhood. Although today’s sentence cannot repair the damage Shore caused, it sends the message to other predators that the FBI remains committed to hunting them down and holding them accountable.”
This case is part of Project Safe Childhood (PSC), a program bringing together all levels of law enforcement and the communities they serve to reduce the sexual exploitation and abuse of children. The case was investigated by the Federal Bureau of Investigation and the Saint Mary’s County Sheriff’s Office in Maryland. It is being prosecuted by Assistant United States Attorney Michelle Rotella.
Retired police officer sentenced to 10 years for his attempted unlawful sexual enticement of a 13-year-old boyRead the Press Release
HONOLULU, Hawaii – James Dean Kalani Goeas, 63, of Waipahu, Hawaii, was sentenced today in federal court by United States District Judge Jill Otake to 120 months of imprisonment, and 15 years of supervised released for knowingly attempting to entice an individual who had not attained the age of 18 years to engage in unlawful sexual activity.
U.S. Attorney Kenji M. Price for the District of Hawaii stated that according to court documents and information presented in court, on March 23, 2019 and March 24, 2019, Goeas engaged in a series of online chats and telephonic text sessions with an undercover agent acting in the role of a 13-year-old male. During their conversations, Goeas arranged to meet the underage male at Maukalani Park with the intent to engage in sexual activity. When Goeas arrived at Maukalani Park on March 24, agents arrested him. At the time of Goeas’s arrest, agents located both condoms and lubricating gel in his vehicle. During a post-arrest statement, Goeas admitted to past unlawful sexual contact with minor males.
“While online platforms and cellphones enhance our ability to connect with friends and loved ones, unfortunately, child sex predators use them to try to sexually exploit children. My Office will continue to partner with the FBI to fight child sex exploitation, and through our enforcement efforts, remind child sex offenders that we will find a suitable home for them in federal prison,” stated U.S. Attorney Price.
"The FBI takes a proactive approach to identify and hold accountable individuals who seek to sexually exploit children. We remain vigilant and are committed to ensure that the children of Hawaii and across the United States are protected from these predators. Today's sentencing reaffirms the FBI's commitment to removing sexual predators from children’s lives and doing it through the justice system," stated FBI Special Agent in Charge Eli S. Miranda.
The case was investigated by the FBI and it was prosecuted by Assistant U.S. Attorney Ken Sorenson.
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.
Readout of Roundtable Events with Attorney General Barr and Senator Tim Scott in Columbia, South CarolinaRead the Press Release
On Wednesday, July 8th Senator Tim Scott hosted Attorney General William Barr in Columbia, South Carolina for two closed-press roundtable events with faith and community leaders and members of law enforcement to discuss restoring relationships between law enforcement and African American communities in South Carolina and across the country.
At Bethel A.M.E Church, Attorney General Barr and Senator Scott met with a group of faith and community leaders across ideological and political spectrums. Attorney General Barr praised Senator Scott for his work on the Justice Act and the opportunity for the Justice Department to partner with him and his staff on this effort. The Attorney General continued by underscoring the commitment by the Justice Department to rebuilding trust between law enforcement and the communities they police and upholding the rule of law for safer and better communities.
At a second event in downtown Columbia, Attorney General Barr and Senator Scott and met with members of local, state and federal law enforcement. Attorney General Barr stated the critical importance of their work, acknowledging the challenges they face and his commitment to necessary reforms. He continued to affirm his support for the law enforcement officers doing their jobs bravely and righteously to keep their communities safe from harm.
“There is no tougher job in America than being a police officer. We need these institutions to provide peace and security in society to allow our lives to flourish,” said Attorney General Barr. “At the same time, whenever you have that kind of institution, you have the possibility of abuse. We need to support the police so that they’re out there protecting the community, but at the same time we have to be sure that there aren’t these abuses. It’s striking a balance.”
“I’d like to thank Attorney General Barr for making the trip to South Carolina. We certainly had a great conversation with a lot of leaders, and I look forward to continuing the conversations…I’m hopeful that the next couple of weeks may produce the results that we’re looking for,” said Senator Tim Scott.
Attorney General Barr and Senator Scott address members of the press at Bethel A.M.E churchPrescott Man Sentenced to 10 Years in Federal Prison for Drug TraffickingRead the Press Release
El Dorado, Arkansas – David Clay Fowlkes, Acting United States Attorney for the Western District of Arkansas, announced that Larry Peters Jr., 37, of Prescott, Arkansas, was sentenced yesterday to 120 months in federal prison, followed by 5 years of supervised release, for conspiring to distribute 50 grams or more of methamphetamine. The Honorable Chief Judge Susan O. Hickey presided over the sentencing hearing, in the United States District Court’s Texarkana Division.
According to court records, the South Central Drug Task Force and the Federal Bureau of Investigation (FBI) made a controlled purchase of methamphetamine from Peters in Prescott, Arkansas, in January 2019. The substances purchased from Peters were submitted to the Arkansas State Crime Laboratory, which found them to contain 159.71 grams (approximately 5.6 ounces) of pure methamphetamine.
Peters was indicted by a federal grand jury in May of 2019, and entered a guilty plea in October of 2019.
This case was investigated by the FBI and the South Central Drug Task Force. Assistant United States Attorney Graham Jones prosecuted the case for the Western District of Arkansas.
Parker Man Indicted for Three Murders That Occurred Within the External Boundaries of the Yakama NationRead the Press Release
Spokane, Washington – William D. Hyslop, United States Attorney for the Eastern District of Washington, announced that a Federal grand jury returned an Indictment charging Clifton Frank Peter with two counts of first degree murder, one count of second degree murder, and two counts of discharging a firearm during a crime of violence. Peter was arrested today and his initial appearance before U.S. Magistrate Mary K. Dimke in Federal Court in Yakima, Washington is scheduled for tomorrow.
According to allegations in the Indictment, Peter shot and killed three people within the external boundaries of the Yakama Nation. As to each count of first degree murder, if convicted, Peter faces a mandatory minimum sentence of life imprisonment, up to a $250,000 fine and restitution obligations. As to the second degree murder count, if convicted, Peter faces a maximum penalty of up to life imprisonment, up to a $250,000 fine, up to five years supervised release and restitution obligations. As to the two counts of discharge of a firearm during a crime of violence, if convicted, each carries a penalty of ten years to life imprisonment, to run consecutive to any other sentence, up to five years of supervised release and up to a $250,000 fine.
William D. Hyslop said, “The United States Attorney’s Office for the Eastern District of Washington is committed to pursuing those involved in violent crimes within the external boundaries of the Yakama Nation. The charges contained in the Indictment are merely allegations. Peter is presumed innocent, as is any defendant in a criminal case, until proven guilty beyond a reasonable doubt in a court of law.”
FBI Special Agent in Charge Raymond Duda said, "There is no logical explanation that can be offered regarding the horrific acts allegedly perpetrated by Mr. Peter. The professionalism displayed by the investigators of this case should be commended and will hopefully result in justice for the victim's families."
The charges contained in the Indictment are the result of an investigation by the Federal Bureau of Investigation, the Yakama Nation Police Department, the Yakima County Sheriff’s Office, and the Washington State Patrol. The case is being prosecuted by Richard Burson and Tom Hanlon, Assistant United States Attorneys for the Eastern District of Washington.
Clifton Frank Peter IndictmentOperation Kick Boxer Continues to Have Local Impact with Arrest and Charges Against Indiana Man Who Travelled to Wisconsin for Sex with a 15-Year-OldRead the Press Release
United States Attorney Matthew D. Krueger of the Eastern District of Wisconsin, announced that Ronald P. Ortega (age: 47) of Dyer, Indiana, was charged via a criminal complaint following his July 6, 2020, arrest by local and federal authorities.
Ortega’s arrest coincided with Monday’s announcement of Operation Kick Boxer, a collaborative effort involving the Milwaukee Division of the Federal Bureau of Investigation (FBI), the U.S. Attorney's Office for the Eastern District of Wisconsin, and the Winnebago County Sheriff's Office. (https://www.fbi.gov/contact-us/field-offices/milwaukee/news/press-releases/international-operation-targeting-individuals-sexually-abusing-children-and-distributing-child-sexual-abuse-materials).
According to the complaint and supporting affidavit, Ortega began exchanging instant messages with “Lisa,” whom he believed to be the mother of a 15-year-old girl living in Oshkosh, Wisconsin. The complaint also alleges that Ortega expressed repeated interest in engaging in sexual activity with the 15-year-old and looked forward to “taking her virginity.” According to the complaint, Ortega also sent pornographic images of children to “Lisa” and expressed an interest in digitally recording the sexual intercourse between himself and her child.
“Lisa” was, in fact, a law enforcement agent working as a part of Operation Kick Boxer. Ortega was arrested after leaving the hotel room he had procured in preparation for meeting the child.
Ortega faces charges of using a computer to attempt to persuade, induce, or entice a minor to engage in unlawful sexual activity, in violation of Title 18, United States Code, Section 2422(b), and attempted production of child pornography, in violation of Title 18, United States Code, Section 2251(a).
He faces a mandatory minimum sentence of 15 years and up to a lifetime of imprisonment if convicted of those charges. He was ordered detained pending trial.
A criminal complaint is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006, by the U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood, marshals, federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Omaha Man Sentenced to 90 Months for Distributing Child PornographyRead the Press Release
United States Attorney Joe Kelly announced that Joseph A. Porter, age 35, of Omaha, Nebraska, was sentenced today by United States District Judge Robert F. Rossiter, Jr. to 90 months’ imprisonment for receipt and distribution of child pornography. There is no parole in the federal system. After his release from prison, Porter will begin a 10-year term of supervised release and will be required to register as a sex offender. Judge Rossiter ordered Porter to pay restitution in the amount of $12,000.
On April 20, 2018, an FBI agent was conducting an investigation of individuals using Kik, an online website, to share child pornography. The agent received a private message from Porter using an alias and this identified him as a person of interest.
On May 10, 2018, the FBI executed a federal search warrant of Porter’s residence in Omaha. The FBI seized numerous digital devices. Porter gave a voluntary statement to law enforcement in which he admitted to using Kik. A forensic review of Porter’s Kik account and digital devices revealed at least seventy-four (74) graphic files of minors engaged in sexually explicit conduct. At least twenty-eight (28) video files were identified as minors engaged in sexually explicit conduct. The forensic review of Porter’s Kik account and digital devices further revealed that between on or about January 1, 2018, through May 9, 2018, Porter, using the internet, distributed and received images and videos of minors engaged in sexually explicit conduct. Most of the images comprising his collection consisted of children under the age of 12 engaged in sexually explicit conduct.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States 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.projectsafechildhood.gov.
This case was investigated by the Omaha FBI's Child Exploitation and Human Trafficking Task Force
Oklahoma City Hospital, Management Company, and Physician Group to Pay $72.3 Million to Settle Federal and State False Claims Act Allegations Arising from Improper Payments to Referring PhysiciansRead the Press Release
OKLAHOMA CITY - Oklahoma Center for Orthopaedic and Multi-Specialty Surgery (OCOM), a specialty hospital in Oklahoma City, Oklahoma, its part-owner and management company, USP OKC, Inc. and USP OKC Manager, Inc. (collectively USP), Southwest Orthopaedic Specialists, PLLC (SOS), an Oklahoma City-based physician group, and two SOS physicians, will pay $72.3 million to resolve allegations under the False Claims Act and the Oklahoma Medicaid False Claims Act of improper relationships between OCOM and SOS, resulting in the submission of false claims to the Medicare, Medicaid and TRICARE programs, the Justice Department announced today.
The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid, and other federally funded programs. The Physician Self-Referral Law, commonly known as the Stark Law, prohibits a hospital from billing Medicare for certain services referred by physicians with whom the hospital has an improper financial arrangement, including the payment of compensation that exceeds the fair market value of the services actually provided by the physician and the provision of free or below-market rent and office staff. Both the Anti-Kickback Statute and the Stark Law are intended to ensure that physicians’ medical judgments are not compromised by improper financial incentives and instead are based on the best interests of their patients.
"Offering illegal financial incentives to physicians in return for patient referrals undermines the integrity of our health care system," said Acting Assistant Attorney General Ethan P. Davis of the Department of Justice Civil Division. "Patients deserve the independent and objective judgment of their health care professionals."
"It is critical that we protect the integrity of federal health care benefit programs," said U.S. Attorney Timothy J. Downing for the Western District of Oklahoma. "Patients deserve care based on good medicine and informed choice, not the corrupting influence of money and other benefits. No matter how complex and intertwined modern healthcare economics become, we are committed to ensuring that untainted care is always provided."
"The Defense Criminal Investigative Service is committed to ensuring that TRICARE, the U.S. military healthcare program, continues to provide safe and superior medical care to America's Warfighters," said Michael C. Mentavlos, Special Agent in Charge, Defense Criminal Investigative Service - Southwest Field Office. "Kickback schemes such as those resolved today, undermine our healthcare system, compromise medical decisions, and waste precious taxpayer dollars needed to provide critical care for our Warfighters, their family members, and military retirees."
"Kickback schemes like this drain valuable resources from the federal and state healthcare systems, which go to our most vulnerable," said Oklahoma Attorney General Mike Hunter. "This settlement is substantial and will hopefully send a clear, concise message to those who want to defraud the system – that we will not tolerate these illegal acts in our state. I am pleased we were able to work with our federal partners to achieve this successful outcome."
The settlement resolves allegations that between 2006 and 2018, OCOM and USP provided improper remuneration to SOS and certain of its physicians in exchange for patient referrals to OCOM in the form of (i) free or below-fair market value office space, employees, and supplies, (ii) compensation in excess of fair market value for the services provided by SOS and certain of its physicians, (iii) equity buyback provisions and payments for certain SOS physicians that exceeded fair market value, and (iv) preferential investment opportunities in connection with the provision of anesthesia services at OCOM. The alleged conduct resulted in the submission of claims for services provided to these illegally referred patients, in violation of the False Claims Act and the Oklahoma Medicaid False Claims Act. The settlement also resolves issues arising out of USP’s preferential offering of investment opportunities to physicians at four surgery facilities in Texas. As a result of this settlement, USP will pay $60.86 million to the United States, $5 million to the State of Oklahoma, and $206,000 to the State of Texas. SOS and two of its physicians, Anthony L. Cruse, D.O. and R.J. Langerman, Jr., D.O., will pay $5.7 million to the United States, and $495,619 to the State of Oklahoma.
Contemporaneous with the civil settlement, OCOM and SOS each entered into five-year Corporate Integrity Agreements (CIAs) with the U.S. Department of Health and Human Services – Office of Inspector General (HHS-OIG). The CIAs require, among other things, that OCOM and SOS each maintain a compliance program and hire an Independent Review Organization to review arrangements entered into by or on behalf of their respective entities. They also increase individual accountability by requiring compliance-related certifications from their key executives.
"Patients rightly expect providers to deliver the best treatment without thought of financial gain," said Miranda L Bennett, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services (HHS). "Working with our Federal and State law enforcement partners we will continue protecting government health program beneficiaries and taxpayers."
The allegations resolved by the settlement were brought in a lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the United States for false claims and to receive a share of any recovery. The whistleblower also alleged claims under the Oklahoma Medicaid False Claims Act. The qui tam case is captioned United States ex rel. Allison v. Southwest orthopaedic Specialists, PLLC, et al., No. CIV-16-569 (W.D. Okla.). The whistleblower share to be awarded in the case has not yet been determined.
These matters were investigated by the U.S. Attorney’s Office for the Western District of Oklahoma, the Civil Division’s Commercial Litigation Branch, and the State of Oklahoma Attorney General’s Office. Investigative assistance was provided by the Office of Inspector General of the Department of Health and Human Services, the Centers for Medicare and Medicaid Services, and the Department of Defense’s Defense Criminal Investigative Service.
The United States’ investigation and resolution of this matter illustrates its emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Oklahoma City Hospital, Management Company, and Physician Group to Pay $72.3 Million to Settle Federal and State False Claims Act Allegations Arising from Improper Payments to Referring PhysiciansRead the Press Release
Oklahoma Center for Orthopaedic and Multi-Specialty Surgery (OCOM), a specialty hospital in Oklahoma City, Oklahoma, its part-owner and management company, USP OKC, Inc. and USP OKC Manager, Inc. (collectively USP), Southwest Orthopaedic Specialists, PLLC (SOS), an Oklahoma City-based physician group, and two SOS physicians, will pay $72.3 million to resolve allegations under the False Claims Act and the Oklahoma Medicaid False Claims Act of improper relationships between OCOM and SOS, resulting in the submission of false claims to the Medicare, Medicaid and TRICARE programs, the Justice Department announced today.
The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid, and other federally funded programs. The Physician Self-Referral Law, commonly known as the Stark Law, prohibits a hospital from billing Medicare for certain services referred by physicians with whom the hospital has an improper financial arrangement, including the payment of compensation that exceeds the fair market value of the services actually provided by the physician and the provision of free or below-market rent and office staff. Both the Anti-Kickback Statute and the Stark Law are intended to ensure that physicians’ medical judgments are not compromised by improper financial incentives and instead are based on the best interests of their patients.
"Offering illegal financial incentives to physicians in return for patient referrals undermines the integrity of our health care system," said Acting Assistant Attorney General Ethan P. Davis of the Department of Justice Civil Division. "Patients deserve the independent and objective judgment of their health care professionals."
"It is critical that we protect the integrity of federal health care benefit programs," said U.S. Attorney Timothy J. Downing for the Western District of Oklahoma. "Patients deserve care based on good medicine and informed choice, not the corrupting influence of money and other benefits. No matter how complex and intertwined modern healthcare economics become, we are committed to ensuring that untainted care is always provided."
"The Defense Criminal Investigative Service is committed to ensuring that TRICARE, the U.S. military healthcare program, continues to provide safe and superior medical care to America's Warfighters," said Michael C. Mentavlos, Special Agent in Charge, Defense Criminal Investigative Service - Southwest Field Office. "Kickback schemes such as those resolved today, undermine our healthcare system, compromise medical decisions, and waste precious taxpayer dollars needed to provide critical care for our Warfighters, their family members, and military retirees."
"Kickback schemes like this drain valuable resources from the federal and state healthcare systems, which go to our most vulnerable," said Oklahoma Attorney General Mike Hunter. "This settlement is substantial and will hopefully send a clear, concise message to those who want to defraud the system – that we will not tolerate these illegal acts in our state. I am pleased we were able to work with our federal partners to achieve this successful outcome."
The settlement resolves allegations that between 2006 and 2018, OCOM and USP provided improper remuneration to SOS and certain of its physicians in exchange for patient referrals to OCOM in the form of (i) free or below-fair market value office space, employees, and supplies, (ii) compensation in excess of fair market value for the services provided by SOS and certain of its physicians, (iii) equity buyback provisions and payments for certain SOS physicians that exceeded fair market value, and (iv) preferential investment opportunities in connection with the provision of anesthesia services at OCOM. The alleged conduct resulted in the submission of claims for services provided to these illegally referred patients, in violation of the False Claims Act and the Oklahoma Medicaid False Claims Act. The settlement also resolves issues arising out of USP’s preferential offering of investment opportunities to physicians at four surgery facilities in Texas. As a result of this settlement, USP will pay $60.86 million to the United States, $5 million to the State of Oklahoma, and $206,000 to the State of Texas. SOS and two of its physicians, Anthony L. Cruse, D.O. and R.J. Langerman, Jr., D.O., will pay $5.7 million to the United States, and $495,619 to the State of Oklahoma.
Contemporaneous with the civil settlement, OCOM and SOS each entered into five-year Corporate Integrity Agreements (CIAs) with the U.S. Department of Health and Human Services – Office of Inspector General (HHS-OIG). The CIAs require, among other things, that OCOM and SOS each maintain a compliance program and hire an Independent Review Organization to review arrangements entered into by or on behalf of their respective entities. They also increase individual accountability by requiring compliance-related certifications from their key executives.
"Patients rightly expect providers to deliver the best treatment without thought of financial gain," said Miranda L Bennett, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services (HHS). "Working with our Federal and State law enforcement partners we will continue protecting government health program beneficiaries and taxpayers."
The allegations resolved by the settlement were brought in a lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the United States for false claims and to receive a share of any recovery. The whistleblower also alleged claims under the Oklahoma Medicaid False Claims Act. The qui tam case is captioned United States ex rel. Allison v. Southwest orthopaedic Specialists, PLLC, et al., No. CIV-16-569 (W.D. Okla.). The whistleblower share to be awarded in the case has not yet been determined.
These matters were investigated by the U.S. Attorney’s Office for the Western District of Oklahoma, the Civil Division’s Commercial Litigation Branch, and the State of Oklahoma Attorney General’s Office. Investigative assistance was provided by the Office of Inspector General of the Department of Health and Human Services, the Centers for Medicare and Medicaid Services, and the Department of Defense’s Defense Criminal Investigative Service.
The United States’ investigation and resolution of this matter illustrates its emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
An earlier version of this press release incorrectly stated that the settlement was $77.2 million. The correct amount is $72.3 million.
Nashua Man Pleads Guilty to Drug TraffickingRead the Press Release
CONCORD – James Henry, 51, of Nashua, pleaded guilty in federal court to attempted possession of a controlled substance with intent to distribute, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, beginning in or before December of 2017, a drug distribution organization operating in Lawrence, Massachusetts, maintained a series of telephone numbers that were used to receive orders for illegal drugs and facilitate transactions involving those substances. The organization primarily supplied fentanyl in “finger” units of ten grams each, and powder cocaine and cocaine base (“crack”) in either 3.5-gram (eighth-ounce) units or 28-gram (full ounce) units. To distribute its product throughout the northern New England region, the organization relied on a network of sub-distributors from New Hampshire and elsewhere, who would travel to Lawrence to pick up their orders and then redistribute the fentanyl, cocaine, and crack throughout northern New England.
On June 19, 2019, the United States Drug Enforcement Administration arrested individuals involved in running the organization. During the arrests, the DEA seized the telephone used by the organization to arrange drug transactions with its customers. After that, DEA agents used the organization telephone to assume the identity of the organization dispatcher and set up purported drug transactions with the customers who contacted the organization telephone about buying controlled substances from the organization.
On June 25, 2019, Henry contacted the telephone and sought to order quantities of fentanyl and crack. He also provided the type and description of his vehicle. The DEA directed Henry to a parking lot in Nashua. Henry was told that after he arrived, he was to leave the money in the center console and take a walk. Officers then observed Henry’s vehicle arrive and saw Henry leave the vehicle before walking away.
After a few minutes, the DEA texted Henry and told him to return to his vehicle. When Henry did so, officers placed him under arrest and seized the telephone with which they had communicated. Following the arrest, Henry admitted that he had traveled to Nashua to buy “dope and crack.”
Henry is scheduled to be sentenced on October 14, 2020.
“Stopping interstate drug trafficking is a top priority for the U.S. Attorney’s Office,” said U.S. Attorney Murray. “In order to protect public health and safety, we will continue to work closely with our law enforcement partners to identify and prosecute those who are responsible for distributing illegal drugs in the Granite State.”
This matter was investigated by the DEA, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the Massachusetts State Police, Methuen Police Department, Andover, Massachusetts Police Department, Essex County Sheriff’s Office, New Hampshire State Police, Manchester Police Department, Nashua Police Department, Salem Police Department, Rockingham County Sheriff’s Office, Hudson Police Department, and the Goffstown Police Department. The case was prosecuted by Assistant U.S. Attorney Seth Aframe.
This case was supported by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
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Molotov Cocktail Thrower Sentenced to 10 Years in Prison After Setting Neighbor’s House on FireRead the Press Release
A Fort Worth man who set fire to his neighbor’s house using a homemade Molotov cocktail has been sentenced to 10 years in federal prison, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Mearvin Eugene Hamilton, 53, was charged via criminal complaint with possession of an unregistered destructive device, a Molotov cocktail, in August 2019, and indicted on the same charge in January 2020. He pleaded guilty in February 2020 and was sentenced Monday by U.S. District Judge Reed C. O’Connor, who made an upward departure from the sentencing guidelines due to the circumstances of the offense.
In plea papers, Mr. Hamilton admitted he had constructed an incendiary device by filling a 12-ounce beer bottle with an ignitable liquid and attaching a cloth wick. He acknowledged the homemade Molotov cocktail was a destructive device not registered in the National Firearms Registration and Transfer Record.
According to information provided to the Court, the investigation began on July 12, 2019 when a passerby told police he’d witnessed a man throw a lit incendiary device at a home in Fort Worth, setting the home ablaze. Four people inside – two adults and two children – escaped without physical injury.
Fort Worth Fire Department Arson and ATF investigators responded to the scene and spotted Mr. Hamilton sitting on the porch of the home next door, next to containers of gasoline and lighter fluid. Mr. Hamilton – who claimed he feared the individuals next door were trying to kill him – later waived his Miranda rights and admitted to investigators that he “started throwing bottles of gas as the house” in order to “set it on fire.”
The Bureau of Alcohol, Tobacco, Firearms & Explosives’ Dallas Field Division conducted the investigation with the assistance of the Fort Worth Fire Department’s Arson Investigations Unit and the Fort Worth Police Department. Assistant U.S. Attorneys Rob Boudreau and Frank Gatto prosecuted the case.
Memphis Man Sentenced to over 17 Years in Federal Prison for Cocaine Trafficking Organization Covering Multiple StatesRead the Press Release
Gulfport, Miss. – Fortrell Latrae Sain, 38, of Memphis, Tennessee, was sentenced today by Senior U.S. District Judge Louis Guirola, Jr. to 210 months in federal prison, followed by five years of supervised release, for conspiracy to possess with intent to distribute 5 kilograms or more of cocaine, announced United States Attorney Mike Hurst and Special Agent in Charge Jere T. Miles with Homeland Security Investigations in New Orleans. Sain was also ordered to pay a $10,000 fine.
In late 2018, HSI agents began investigating a drug trafficking organization with connections to Memphis, Tennessee, and Indianapolis, Indiana. Through their investigation, agents determined that Sain acted as the middle man in the cocaine conspiracy that involved co-defendants, Ray Parham and Riondal Taylor. During trial, it was revealed that Sain played an intricate role in aiding the drug trafficking organization by making connections for their supply of cocaine. Throughout the conspiracy, Sain communicated with Parham and another individual with the goal of securing a purchase of 25 kilograms of cocaine.
On February 21, 2020, Sain was found guilty by a jury following a trial in U.S. District Court in Gulfport.
Parham and Taylor pled guilty for their roles in the conspiracy on November 8, 2019. Parham was sentenced by Judge Guirola on March 4, 2020 to serve 72 months in federal prison followed by 5 years supervised release. Taylor will be sentenced by Judge Guirola on August 4, 2020 at 1:30 p.m.
The case was investigated by Homeland Security Investigations. It was prosecuted by Assistant United States Attorneys Shundral H. Cole and Kathlyn Van Buskirk.
Member of the CBL/BFL Pleads Guilty to 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 Kareem Pryor, 30, of Buffalo, pleaded guilty to assault with a dangerous weapon in aid of racketeering, and possession of methamphetamine with intent to distribute, and faces a maximum penalty of up to 40 years in prison.
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 Pryor admitted that on June 19, 2019, he met up with Victim 1 on Genesee Street in Cheektowaga, while a co-defendant waited down the street. The co-defendant accused Victim 1 of killing a CBL/BFL member. The defendant and co-defendant then both began punching Victim 1 and stomping Victim 1’s upper body and head onto the pavement. Pryor and the co-defendant then ran away. As a result of the assault by Pryor and his codefendant, Victim 1 was treated at a hospital for a fractured shoulder bone and concussion. As part of his plea, Pryor also admitted that on September 12, 2019, he possessed over 20 grams of methamphetamine pills in his apartment with the intent to distribute them.
The plea 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.
Sentencing is scheduled for November 11, 2020, before Judge Vilardo.
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Manager of Senior Apartment Complex Sentenced for Using Power of Attorney to Steal from Elderly and Disabled WidowRead the Press Release
The manager of a Dubuque senior apartment complex, who used a power of attorney to defraud an elderly and disabled nursing home resident was sentenced July 7, 2020, to five years’ probation. Janice Kay Schultz, age 59, from Dubuque, Iowa, received the prison term after a February 3, 2020 guilty plea to one count of wire fraud.
In a plea agreement, Schultz admitted that she met her victim at the senior apartment complex in Dubuque that Schultz managed. The victim lived alone and had no family. In December 2010, the victim was admitted to a Dubuque nursing home after suffering a stroke and a fall. Afterwards, her physical and cognitive abilities abruptly declined such that she could no longer live at the apartment complex. In April 2011, the victim signed a power of attorney form that purported to give Schultz full authority to manage the victim’s financial affairs. However, the power of attorney expressly stated that defendant was not permitted to make any gifts to herself.
From April 2011 through January 2015, Schultz used the power of attorney to steal nearly $60,000 from the victim. Schultz used this money to buy Green Bay Packer football tickets and pay for other personal expenses. Schultz purchased $24,000 in gift certificates, which she then used for a major home improvement project. At one point, the victim no longer had the necessary funds to support her stay in the nursing home. The Iowa Medicaid program began paying for the victim’s care at the nursing home. Schultz told Iowa Medicaid that the victim had not sold or given away anything of value in the months preceding her application for benefits.
Schultz was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Schultz was sentenced to five years’ probation and fined $2,000. She was ordered to make $59,963 in restitution to the victim’s estate and to repay $5,000 in court-appointed attorney fees.
The prosecution of Schultz is part of the Department of Justice’s Elder Abuse Initiative. In March 2016, the United States Attorney’s Office for the Northern District of Iowa was selected as one of ten districts nationwide to launch regional Elder Justice Task Forces. The Elder Justice Task Forces reflect the department’s larger strategy and commitment to protecting our nation’s seniors, spearheaded by the department’s Elder Justice Initiative. The Elder Justice Initiative coordinates and supports the Department’s law enforcement efforts and policy activities on elder justice issues. It plays an integral role in the department’s investigative and enforcement efforts against nursing homes and other long-term care entities that deliver grossly substandard care to Medicare and Medicaid beneficiaries. The United States Attorney’s Office for the Northern District of Iowa has rededicated its efforts and resources to investigate and hold accountable those who have been involved in activities incompatible with ensuring that the state’s more vulnerable citizens are treated with dignity and respect.
The charges also were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
The case was prosecuted by Assistant United States Attorney Tim Vavricek and investigated by the Dubuque Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-cr-1003.
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Man pleads guilty to sexual exploitation of toddlerRead the Press Release
CINCINNATI – Thomas Winkelbach, 79, of Cincinnati, pleaded guilty today to one count of sexual exploitation of a minor for taking sexually explicit photos of the victim.
According to court documents, Winkelbach used a digital camera to take sexually explicit pictures of his victim touching Winkelbach’s penis and other pictures of Winkelbach masturbating in front of the victim. The crime occurred in 2014 or 2015, but the exact date is unknown. The victim was between one- and two-years old.
Investigators say in court documents, that Winkelbach has been searching for, downloading and trading child pornography on the internet for years. Between all of his digital media seized by investigators in October 2019, Winkelbach possessed thousands of images of child pornography.
Sexual exploitation of children is punishable by at least 15 years and up to 30 years in prison. The court will determine an appropriate sentence based on federal sentencing guidelines, the defendant’s acceptance of responsibility and other factors. The plea agreement also calls for Winkelbach to pay restitution to the victim’s family and forfeit all images as well as ten cameras, three cell phones, eight computing devices and storage media used to store and share the images.
Winkelbach remains in custody until sentencing.
The Hamilton County Sheriff’s Office and Cincinnati Police Department’s Regional Electronics Computer Investigations (RECI) Task Force investigated this case.
David M. DeVillers, United States Attorney for the Southern District of Ohio; Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Hamilton County Sheriff Jim Neil; and Cincinnati Police Chief Eliot K. Isaac announced the plea entered before U.S. District Judge Michael Barrett. Assistant United States Attorney Kyle J. Healey is representing the United States in this case.
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Lockport Man Pleads Guilty to Possession of Cocaine with the Intent to Distribute ItRead 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 Gilberto Marchese, 38 of Lockport, NY, pleaded guilty before U.S. District Judge Richard J. Arcara to possession with intent to distribute cocaine. The charge carries a maximum penalty of 20 years imprisonment and a fine of $1,000,000.
Assistant U.S. Attorney Justin G. Bish, who is handling the case, stated that between December 2015, and March 27, 2019, the defendant unlawfully possessed with intent to distribute cocaine. On March 27, 2019, law enforcement conducted a search warrant at the defendant’s residence at 150 Grand Street, Lockport, New York, and recovered approximately 29.10 grams of cocaine, a grinder with suspected marijuana residue, and two digital scales. As part of his plea, the defendant admitted that the aggregate amount of cocaine he distributed over this time-period exceeded 500 grams.
The plea is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the Niagara County Drug Task Force, under the direction of Niagara County Acting Sheriff Michael Filicetti; and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan.
Sentencing is scheduled for October 15, 2020, at 12:30 p.m. before Judge Arcara.
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Lawrenceburg Man Sentenced to 120 Months for Crimes Related to Thwarted School Shooting PlotRead the Press Release
LEXINGTON, Ky. – Dylan Lee Jarrell, of Lawrenceburg, was sentenced Wednesday to 120 months in federal prison, by United States District Judge Gregory F. Van Tatenhove, for making threats to and intimidating two individuals over social media, illegally possessing a firearm in furtherance of one of those threats, and lying to an FBI agent during an investigation.
In May 2018, Jarrell used an anonymous Reddit account to make a series of posts suggesting he was planning a school shooting. The FBI visited Jarrell’s home and questioned him and others about these posts. Jarrell lied about his internet activities in response to those questions. Then, over the next few months, Jarrell purchased an AR-15 rifle, a bump stock, high capacity magazines, ammunition, and body armor, each of which he intended to use in a planned attack on Shelby County High School. Jarrell also considered an alternate plan to murder an individual identified as D.B. On September 24, 2018, Jarrell used Instagram to send a series of private direct messages to D.B., including a threat to attack D.B. with the AR-15 rifle he possessed at the time. Lastly, on October 17, 2018, Jarrell sent a series of racially motivated harassing messages to a Facebook account used by a second individual, K.B.
Federal and state law enforcement confronted Jarrell on October 18, 2018 and searched his mobile phone, among other things and places. That search revealed evidence of Jarrell’s plans to attack Shelby County High School. Jarrell was taken into state custody and admitted planning to attack the high school and D.B., and to purchasing the AR-15 rifle as part of his plans. Jarrell was charged by federal criminal complaint on October 26, 2018 and indicted by federal grand jury on May 2, 2019. He entered guilty pleas to several federal crimes on November 22, 2019.
“Halted by the work of dedicated law enforcement professionals who confronted and stopped him, Dylan Jarrell was intent on committing horrific acts of violence on innocent people,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky. “The investigation conducted by KSP and FBI personnel almost certainly saved lives. The seriousness of Jarrell’s crimes and the danger he presented to the public certainly justify the sentence he received.”
“Hiding behind anonymous social media accounts to intimidate and threaten others is a prevalent issue in today’s world,” said Special Agent in Charge Robert Brown, FBI Louisville Field Office. “After Jarrell lied to federal agents and continued making threats online to both individuals and a school, FBI and KSP investigators successfully intercepted him before a potential mass casualty took place. As this case illustrates, the FBI and our law enforcement partners take online threats seriously and will work together to bring these perpetrators to justice before they harm any citizens of the Commonwealth.”
“Nothing is more paramount to our agency than the safety of Kentucky’s children,” said Rodney Brewer, Commissioner of Kentucky State Police. “We hope this sends a strong message to anyone who would contemplate a harmful act in one of our schools."
Under federal law, Jarrell must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the United States Probation Office for five years.
U.S. Attorney Duncan, James Robert Brown, Jr., Special Agent in Charge, Federal Bureau of Investigation, and Commissioner Brewer jointly announced the sentence.
The FBI and the Kentucky State Police conducted the investigation. The United States was represented by Assistant United States Attorney Andrew T. Boone.
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